VI. ECONOMIC CONTRIBUTIONS AND OTHER BENEFITS TO THE NATION'S ECONOMIC INFRASTRUCTURE

Commerce programs support the Nation's economic infrastructure in a large number of specific ways. Key ways in which that support is exhibited are described here, within the context of the Theme I goals.

A. Implement the President's National Export Strategy in conjunction with the Trade Promotion Coordinating Committee,

B. Enforce U.S. trade laws and agreements to promote free and fair trade, and

C. Strengthen and institutionalize trade advocacy efforts, placing special emphasis on the "Big Emerging Markets" and major projects.

By assisting U.S. business and industry in developing and increasing their exporting capabilities and practices, ITA directly supports the Nation's economic infrastructure. ITA plays a central role in formulating and executing the principal components of the Administration's trade agenda, through trade initiatives for American businesses and communities to strengthen our economy and improve our competitiveness and an aggressive approach to opening markets abroad. With the economic information it produces and its high-profile advocacy efforts and business development missions, ITA's activities demonstrate that increased exports equal increased economic growth, opportunities, and jobs; and that, in today's environment of global competition, government can partner effectively with the private sector to boost opportunities for U.S. businesses abroad.

ITA also strives to increase the competitiveness of U.S. business in the world economy by fighting unfair foreign trade barriers and negotiating and implementing both multilateral and bilateral trade agreements. Additionally, ITA is the U.S. government's focal point for increasing market access for non-agricultural U.S.exports. ITA units promote and support exports in the global marketplace by uncovering market access problems, working directly with individual U.S. companies suffering market access difficulties and devising strategies for U.S. government efforts to implement the strategies.

D. Restructure export controls for the twenty-first century.

BXA is ensuring that export controls do not place U.S. firms at a competitive disadvantage in world markets by eliminating outdated controls and streamlining the process for obtaining export licenses for products that remain under control. For example, BXA has released more than $32 billion worth of exports from validated licensing requirements in recent years. Through BXA's leadership the U.S. will be able to increase the sales of products of high technology when sufficient licensing policy and enforcement mechanisms exist to safeguard them from unauthorized end users and end uses.

E. Maintain a fully effective law enforcement program to protect U.S. national security, foreign policy, nonproliferation of dual-use commodities, counter-terrorism, nonproliferation of chemical and biological weapons, and public safety interests.

BXA's export enforcement arm furthers the Administration's nonproliferation of dual use commodities, counter-terrorism, foreign policy, nonproliferation of chemical and biological weapons, and public safety interests. By enforcing controls on those goods and technologies that contribute to the proliferation of weapons of mass destruction and the efforts of terrorists, BXA can facilitate safe and responsible export growth for our economy. BXA will investigate violations of the implementing legislation and regulations and impose civil sanctions for those violations.

F. Facilitate transition of defense industries.

BXA has taken a leadership role in facilitating the conversion and diversification of U.S. defense industries to commercial production, identifying market opportunities for U.S. defense manufacturers in foreign markets, and intervening at senior levels to help U.S. firms to obtain contracts through Defense Trade Advocacy.

G. Strengthen the public's understanding of the U.S. economy and its competitive position by improving Gross Domestic Product (GDP) and other national, regional, and international economic accounts data.

GDP and other national, regional, and international economic accounts data produced by BEA contribute significantly to the public's understanding of the U.S. economy and its competitive position, and hence are critical to supporting the economic infrastructure. They are the yardsticks of economic performance that are of vital interest to every American who runs a business, invests and creates wealth, saves for retirement, or takes out a mortgage on a house. BEA's statistics are used in formulating and evaluating national economic policy, in Federal budget planning and formulation, and in the allocation formulae for over $100 billion in Federal funds annually. They are used by State and local governments for a variety of planning and analytical activities, such as deciding on where to locate new construction projects or determining the local impact of closing a military base or building a new plant. Their use for these purposes and as barometers of U.S. economic conditions influence countless decisions by businesses and private citizens alike.

H. Improve national and local census and survey data through better business practices and public cooperation.

The Bureau of the Census compiles and publishes economic, social, and demographic data on a wide range of topics, such as manufacturing, population, housing, agriculture, and foreign trade. This crucial data provides invaluable insight into the Nation's economic infrastructure. National Statistical Profile data are used by agencies allocating Federal funds to state and local programs, show long-term economic trends, and define Congressional representation. National Performance Indicators are monthly to annual statistics driving today's markets and their analysis of the population.

I. Stimulate the creation of private sector jobs through the growth of industry and the retention or expansion of existing businesses in economically distressed areas,

J. Help distressed communities build their capacity to stimulate, maintain, or expand economic growth, and

K. Provide new knowledge, analysis, and technical information which serve both to assess economic development problems and to mobilize non-Federal resources for their solutions at the local level.

EDA provides grants to communities for public infrastructure, economic adjustment assistance, planning, research and technical assistance, and evaluation, which are critical to a distressed community's capacity to establish a sound economic infrastructure. EDA also provides assistance to communities for the conversion of military bases and defense contractor facilities to civilian uses.

EDA's Economic Adjustment grants help economically-distressed communities by encouraging private investment, facilitating economic recovery from natural disasters, assisting communities adversely affected by Department of Defense downsizing, defense contract cutbacks and Department of Energy realignments.

EDA's Local Technical Assistance grants help communities conduct feasibility and industry studies. National Technical Assistance and Research studies examine the causes of economic distress and propose solutions to counteract and prevent such problems.

L. Improve opportunities for minority-owned businesses in major growth industries according to geographic demands, and

M. Improve the opportunity for minority-owned businesses to pursue financing.

MBDA is mandated to coordinate Federal efforts to develop and strengthen new and existing minority businesses.

Since the global marketplace has become so diverse, the contributions of minority businesses have become increasingly essential. Improving opportunities for minority businesses allows these businesses to help keep America's competitive edge in world markets and provide for the general economy, particularly in minority communities. Every component of the U.S. economy must be effective if our Nation is to thrive in the global marketplace.

Since 1982, MBDA has coordinated and participated with the Small Business Administration in Minority Enterprise Development (MED) Week event. MED Week honors the accomplishments of minority entrepreneurs and the corporate and government groups that support them. MED Week promotes business growth through networking opportunities such as information gathering and interaction with governmental and private sector officials for market development, joint ventures, mentorship, and capital opportunities.

N. Provide technical leadership for the nation's measurement and standards infrastructure, and assuring the availability of needed measurement capabilities.

The Technology Administration works with U.S. industry to maximize technology's contribution to the Nation's economic infrastructure. It seeks to encourage the development of the technological foundation required to support U.S. industry into the 21st Century.

NIST laboratories provide industry and the science and technology community with the "common language" needed in every stage of technical activity. In furthering the technical aims and capabilities of U.S. industry, the NIST laboratory program serves as a source of expertise, developing highly leveraged measurement capabilities and other infrastructural technologies that are beyond the reach of individual companies, needed widely by industry, and likely to have economic impact.

Large and small firms tap the laboratories' technical expertise in many ways. NIST delivers Standard Reference Materials, organized collections of thoroughly evaluated data, and calibration services to businesses, government, and academic organizations. NIST accredits public and private sector testing and measurement laboratories, and participates in (and provides technical support to) more than 800 national and international standards committees. Studies of the economic impact of NIST laboratory services and research projects show that significant benefits flow back to U.S. society and economy. In the studies completed to date, the median rate of return is 147%, which compares favorably with rates reported in other studies of public investments in technology and on private-sector R&D.

O. Support a nationwide system of manufacturing extension services that will improve the global competitiveness of small manufacturers.

The Manufacturing Extension Partnership (MEP) is a network of manufacturing extension centers located throughout the country. MEP works with local organizations to either establish a new program or expand existing services for smaller manufacturers. The 381,000 small and mid-sized manufacturers in the U.S. account for more than half the total value of U.S. production and employ nearly 12 million people. The MEP provides these manufacturers with access to a wealth of national tools, techniques, and other resources through nearly 700 partnerships with federal agencies, national associations, and other organizations.

Surveys of client firms indicate that MEP centers are fostering significant improvement in client performance, yielding company-estimated benefits that greatly exceed the federal investment in MEP. The Census Bureau now administers a rigorous survey protocol of MEP clients, asking them to report cumulative impacts actually realized as a direct result of MEP services. Impacts are expressed as the difference between what has happened and what would otherwise have occurred in the absence of those services. Preliminary results, which are updated regularly, show significant impacts through job creation and retention, increases in sales, and savings from both lower inventories and reductions in labor an material costs.

P. Assist U.S. businesses in continuously improving their productivity and efficiency utilizing Malcolm Baldrige National Quality Award framework core values, criteria, and assessment methods.

A commitment to quality is no longer an option for American business. It has become a necessity for doing business in today's customer-oriented competitive world market. The Malcolm Baldrige National Quality Award, developed and managed by NIST with the cooperation and financial support of the private sector, was established not only to recognize individual companies for their quality achievements, but also to promote quality awareness and to provide information on successful quality strategies. The Council on Competitiveness has stated that "more than any other program, the Baldrige Quality Award is responsible for making quality a national priority and disseminating best practice across the United States." The Council continues "the Baldrige National Quality Award and its state and local offshoots have been key to the effort to strengthen U.S. competitiveness. The annual government investment...is leveraged by over $100 million of private sector contributions. The impact of the Baldrige Award on the competitiveness of U.S. industry and the dividends it pays to the U.S. economy far exceed [the] investments."

Q. Stimulate U.S. economic growth by developing high-risk and enabling technologies through industry-driven cost-shared partnerships.

The NIST ATP program is a unique partnership between government and private industry to accelerate the development of high-risk technologies that promise significant commercial pay-offs, an enhanced quality of life, and widespread benefits for the Nation's economic infrastructure. Since its inception, the ATP has made economic evaluation of the outcomes of ATP projects a central element of its operations. ATP projects are expected to make significant contributions to scientific and technical knowledge, produce new technologies that will be developed and introduced into the marketplace by the awardees, and yield substantial benefits to the economy and American citizens beyond those accruing directly to the award recipients.

Several studies have documented important near-term results of the ATP, including: the pursuit of challenging research projects that would have been delayed or scaled down without the ATP; new commercial opportunities and some early growth based on the new technical capabilities; and, greater use of cooperative research ventures and industrial alliances which can facilitate the rapid diffusion of results of ATP projects throughout an industry. NIST has put into place systematic mechanisms to gather data and provide the analysis as the long-term effects unfold.

R. Coordinate and lead inter-agency efforts to enhance industry competitiveness in partnership with industry, academia and the states.

The competitiveness of U.S. industry is enhanced by Federal partnerships which target U.S. strengths and weaknesses in order to best leverage the billions of dollars that the U.S. invests annually in R&D and technology programs. Government-industry partnerships like the new generation vehicle program leverage Federal dollars to encourage civilian utilization of government laboratories, support expanded exports and job-creation, and allow technology development to be separated from product development, enabling U.S. firms to be more competitive in the long-run.

S. Help protect, promote, and expand intellectual property rights systems throughout the U.S. and abroad.

Intellectual property protection is critical to the U.S. economy and to America's operating in the global economy. By protecting intellectual endeavors and encouraging intellectual progress, the PTO seeks to preserve our Nation's technological edge, which is a key to our current and future competitiveness. Innovation is a national resource that contributes to the Nation's economic base and provides a catalyst for economic prosperity through the accumulation of scientific knowledge and the introduction of new products and services. By ensuring adequate protection for innovations through patents, trademarks and copyrights, the U.S. encourages businesses to risk investment for research, development, and marketing. Consumers benefit from the availability of new/improved products, jobs, and wealth.

The PTO is working to update and make more efficient the U.S. system for protecting patentable innovations to meet the needs of the fast-moving electronic age and to seek agreements with other governments to protect patentable innovations and marks worldwide. This includes the PTO's leadership role in refocusing the World Intellectual Property Organization's programs to take full advantage of modern information technologies to improve patent protection throughout the world; negotiations on the Trademark Law Treaty, the Patent Law Treaty, the Trademark Mailbox proposal; and efforts related to the President's Framework for Global Electronic Commerce, such as developing acceptable legal and procedural regimes for settlement of trademark domain name disputes.

T. Support the development of a National Information Infrastructure (NII) that will be accessible to all Americans.

The information superhighway is a key component of the Nation's economic infrastructure, and through the Telecommunications and Information Infrastructure Assistance Program (TIIAP), NTIA provides matching grant funds to ensure that local communities and non-profit institutions can offer all Americans the benefits of advanced telecommunications technologies. NTIA's National Information Infrastructure (NII) program holds tremendous potential for applications ranging from information dissemination and virtual conferences to gain public input, to common databases available to Federal, State, and local government agencies. NTIA's leadership actions are stimulating private sector interest and investment in the Nation's information infrastructure.

V. Set policies for efficiently and effectively managing the Federal use of the radio spectrum, and prepare for international radio spectrum-setting conferences of the International Telecommunications Union (ITU).

NTIA provides efficient allocation of radio frequency spectrum to the public and private sectors to assure essential services such as air traffic control, defense communications, and law enforcement. In managing the Federal government spectrum, NTIA recently made 235 Mhz of spectrum available to the private sector, which will spur innovation and development of new telecommunications services, and bring billions of dollars into the U.S. treasury. NTIA is a key source of support in the development and deployment of new technologies such as personal communications and millimeter-wave systems.

W. Provide leadership in developing telecommunications policy initiatives in emerging areas of national priority.

The Commerce Department has the lead responsibilities in national telecommunications initiatives, such as the Global Electronic Commerce program. Electronic commerce over the Internet is making profound changes in the global trade of goods and services. Policies must be developed to promote non-regulatory, market-oriented approaches to global electronic commerce to ensure widespread competition and increased consumer choice.

X. Promote safe navigation by revolutionizing U.S. marine and air navigation, mapping, and surveying; assist commercial shipping in moving increased cargoes safely and efficiently; and provide a precise satellite-derived reference system as the basis for the nation's geographical positioning needs.

Modern navigation systems are required for safe and economically viable maritime and air transport. The digital "revolution" in mapping, charting and surveying requires the National Spatial Reference System. In the last 50 years, ship length, width, and draft have doubled, seagoing commerce has tripled, and 50% of that tonnage is oil or other hazardous material, leading to increased risk in the Nation's ports. Yet, one-third of maritime accidents could be avoided by the use of electronic charts, a loss saving of $3.6 million each day. The cost-effectiveness of electronic charts is 6 times better for that for double hull vessels.

A 1% improvement in the overall efficiency of America's maritime transportation system would translate into more than $2 billion in savings across our economy within a decade. For example, using real-time current and water level information, revenue increased $20,000 per shipload of grain exported from Portland, and coal exports from Philadelphia tripled. Ships might avoid delays costing $3,000 per hour and reap as much as $24,000 in revenues for each inch of increased draft.

These modern navigational systems allow the Nation to take full benefit from the hundreds of millions of dollars spent annually on dredging and hundreds of millions expected to be spent for vessel traffic systems for major ports. Of equal economic significance, implementation of the National Spatial Reference System provides the required framework for national expenditure for spatial data collection. The marine and air transportation industry, the survey community, engineers and scientists working in the coastal zone, and the general public would all derive benefit from application of the new technologies, products, and services by NOAA under this program.

NOAA's National Ocean Service (NOS) manages ocean and coastal resources and improves quality, quantity, geographic distribution, and timeliness of ocean observations, resulting in aeronautical and nautical charts and supporting documents which are compiled and sold to the public and other Federal agencies. Modern navigational systems are required for safe and economically viable maritime and air transport, critical methods of moving goods produced across the Nation and around the world.

Y. Provide significantly improved short-term warning and forecast products and services that enhance public safety and the economic productivity of the nation by enhancing the ability to observe, understand, and model the environment, and effectively disseminating products and services to users.

Our environment has profound effects on our Nation's human welfare and economic well-being. Eighty-five percent of all Presidentially-declared disasters result from severe weather events that produce considerable loss of life and annual private, public, and industrial property damage, estimated in billions of dollars. NOAA has a unique opportunity to improve our Nation's total environment prediction and warning capabilities.

Advanced short-term warnings and forecasts will result in decreasing our Nation's vulnerability to environmental disturbances which will save hundreds of lives, avert thousands of injuries, and save billions for the economy. The enhanced observations, coupled with the development of advanced models and satellite continuity, will result in earlier, more accurate warnings. Increases in economic efficiency provided by more accurate outlooks of future environmental conditions will provide critical planning information. The sophisticated environmental technologies developed for monitoring these conditions feed into new growth industries and help maintain the Nation's status as a global technology leader.

NOAA's NWS provides weather and flood warnings and forecasts to the general public and other users. NOAA has a unique opportunity to improve our Nation's total environment prediction and warning capabilities for the safety of life and property.

Weather forecasts are essential to the Federal Aviation Administration and commercial aircraft operations. NOAA/NWS and the private weather service industry established a public/private partnership statement delineating the NWS and private sector roles in delivering weather services to the public. This balance is a fundamental strength of the partnership, and has enabled the private meteorological sector to grow to an over $200 million industry.

Oceanic and Atmospheric Research (OAR) provides the research and technology development necessary to improve NOAA weather services, solar-terrestrial forecasts and marine services, and the scientific basis for national policy decisions in climate change, air quality, and stratospheric ozone depletion. OAR also promotes economic growth through efforts in marine biotechnology and development of environmental observing technologies.

NOAA's National Environmental Satellite, Data, and Information Service (NESDIS) covers procurement and operation of the polar and geostationary environmental observing satellites that provide meteorological data to the National Weather Service for use in developing warnings and forecasts. NESDIS also provides for the future operation of the LANDSAT 7 remote sensing satellite, whose data assist scientists in studying climate and global change.

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