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continue its efforts to open foreign markets to U.S. trade and investment through international negotiation and more effective use of existing trade laws. Barriers to Insufficient evidence exists to substantiate U.S. investment in the R&D systems of the concern over possible negative effects of other nations impose real costs on U.S. citforeign participation in U.S. research and izens and raise questions about the fairdevelopment (R&D), a committee of the ness and value of foreign involvement in National Academy of Engineering has conthe United States. As a result, some have cluded in a report, Foreign Participation in called for unilateral measures that force a U.S. Research and Development: Asset or level playing field. However, such meaLiability7. The committee recommended that sures tend to discourage positive foreign Congress should avoid restricting foreign investment and undercut long-standing access to the nation's R&D efforts except U.S. efforts to remove trade barriers when such participation poses a dear threat through negotiation, said the committee. to national security. Restrictions discourage The committee also recommended that foreign direct investment in the United federal agencies be given more latitude to States and encourage similar discriminatory benefit from the R&D capabilities of U.S.treatment of U.S. firms abroad. based, foreign-owned firms. Foreign parBy a number of measures, foreign partici- ticipation in publicly funded R&D is regupation in privately and publicly funded lated by confusing and at times contradicU.S. R&D is on the rise. During the 1980s, tory intergovernmental agreements and the share of foreign ownership of U.S. man- by U.S. agency directives and guidelines. ufacturing assets nearly tripled, from 7.2% These impede agencies in fulfilling their to 19.2%. Between 1982 and 1993, spending missions and diminish the contributions by foreign-owned firms in the United States of federal R&D programs to the U.S. econjumped from 9.3% to 15.5% of all privately omy, the committee said. Laws and funded U.S. R&D. Foreign firms' involve- guidelines that regulate the R&D interacment in publicly funded research is much tion of federal agencies and laboratories smaller, accounting for less than 2% of total with U.S.-based companies should be recsponsored research at U.S. universities and onciled so that agencies can take full federal laboratories. In 1991, however, 37% advantage of R&D opportunities. of all doctoral students and more than 50% Copies of Foreign Participation in U.S. of all postdoctoral candidates enrolled in Research and Development: Asset or Liability? U.S. science and engineering programs are available from the National Academy were not U.S. citizens. Press, 2101 Constitution Avenue, N.W., Direct investment in the United States Washington, DC 20418; 202-334-3313 or 1by foreign companies has driven their 800-624-6242. participation in privately funded U.S. R&D, the report said. Between 1982 and Privacy, Health Issues Should 1992, the amount of foreign direct investment in th
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