128 • Impacts of Applied Genetics — Micro-Organisms, Plants, and Animals 
Issue and Options — Biotechnology 
ISSUE; How can the Federal Govern- 
ment promote advances in bio- 
technology and genetic engi- 
neering? 
The United States is a leader in applying ge- 
netic engineering and biotechnology to indus- 
try. One reason is the long-standing commit- 
ment by the Federal Government to the funding 
of basic biological research; several decades of 
support for some of the most esoteric basic re- 
search has unexpectedly provided the founda- 
tion for a highly useful technology. A second is 
the availability of venture capital, which has al- 
lowed the formation of small innovative compa- 
nies that can build on the basic research. 
The argument for Government promotion of 
biotechnology and genetic engineering is that 
Federal help is needed in those high priority 
areas not being developed by industry. 
The argument against such assistance is that 
industry will develop everything of commercial 
value without Federal help. 
A look at what industry is now attempting in- 
dicates that sufficient investment capital is 
available to pursue specific manufacturing ob- 
jectives, such as for interferon and ethanol, but 
that some high-risk areas that might be of in- 
terest to society, such as pollution control, may 
need promotion by the Government. Other 
areas, such as continued basic biological re- 
search, might not be profitable soon enough to 
attract industry’s investment. Specialized educa- 
tion and training are areas in which the Govern- 
ment has already played a major role, although 
industry has both supported university training 
and conducted its own inhouse training. 
OPTIONS: 
A. Congress could allocate funds specifically for 
genetic engineering and biotechnology R&cD in 
the budget of appropriate agencies, such as 
the National Science Foundation (NSF), the 
U.S. Department of Agriculture (USD A), the 
Department of Flealth and Human Services 
(DHHS), the Department of Energy (DOE), the 
Department of Commerce (DOC), and the De- 
partment of Defense (DOD). 
Congress has a long history of recognizing 
areas of R&D that need priority treatment in 
the allocation of funds. Biotechnology has not 
been one of these. Even though agencies like 
NSF receive congressional funding, its Alter- 
native Biological Sources of Materials program 
is one of the few applied programs that is not 
congressionally mandated. As a result, the fiscal 
year 1980 budget saw a reduction in the alloca- 
tion of funds, from $4.1 million in 1979 to $2.9 
million. A congressionally mandated program, 
analogous to the successful NSF F^irthcjuake 
Hazard Mitigation program, could he written 
into law. Other programs, such as the com- 
petitive grants program at USD A (or the Office 
of Basic Biological Research at DOE), are also 
modestly funded. 
Increasing the amount of money in an ag(Mi- 
cy’s biotechnology program could bring criti- 
cism from other jirograms within each agcMicy if 
their levels of funding are not increased com- 
mensurately. The Competiti\e Gi’ants Fi’ogram 
at USDA has similar problems; those who are 
most critical of it argue that it should not take 
funds from traditional programs. Ne\'ertheless, 
Congress could promote two typers of [)rograms: 
those with long-range payoffs (basic; i'(?s('archl, 
and those which industi'v is not willing to un- 
dertake hut that might he in tlu; national in- 
terest. 
B. Congress could establish a separate Institute 
of Biotechnology as a funding agency. 
The merits of a sepai'atc; institution lie in the 
possibility of coordinating a wide* range of ef- 
forts, all related to hiotechnolog\'. .Among pre.s- 
ent organizations, biotechnology and ap|)lic*d ge- 
netics cut across several institutes and di\ isions 
within them. McKlically oricMiled r(*seareh falls 
primarily under the domain of the Natiotial In- 
stitutes of Health (NIH). Id’, A is concerned with 
the prevention of pollution; w bile NSt s etiort m 
biotechnology has hecMi icstiicted to modest 
support scattered thi’ough several divisions 
