Industrial Innovation Announcement of Establishment of an Interagency Committee.

The President announced today that he has established an interagency committee to conduct a comprehensive review of issues and problems related to industrial innovation. Substantial public involvement—including industry, small business, labor, and consumers—is planned.

Innovation provides a basis for the Nation's economic growth. It is closely related to productivity and to the competitiveness of U.S. products in domestic and world markets. Efforts to enhance innovation in industry may lead to an improved economic climate in the United States.

In recent years, private sector research and development has concentrated on low-risk, short-term projects directed at improving existing products. Emphasis on the longer term research that could lead to new products and processes has decreased.

Although the development of new products or processes is primarily the responsibility of the private sector in the United States, Federal policies have a profound impact on the innovation process. In light of the central role of innovation in economic development, Federal policies on the economy, taxes, regulations, procurement, and foreign relations which affect innovation will be carefully examined in the study.

The review will be accomplished under the procedures established by the Domestic Policy Review system and is to make its recommendations within 14 months. The interagency committee will be chaired by the Secretary of Commerce. Other members include the Secretaries of Defense, Treasury, HEW, and Energy, the Attorney General, the Administrator of the National Aeronautics and Space Administration, the Administrator of the Environmental Protection Agency, the Director of the National Science Foundation, the Director of OMB, the Chairman of the Council of Economic Advisers, the Assistant to the President for National Security Affairs, the Special Representative for Trade Negotiations, and the Science and Technology Adviser to the President.