This knowledge is not easily transferred among or within organizations without significant effort. In many instances, transferring a technology requires transferring the individuals in whom the knowledge resides. Moreover, the successful transfer of technological or scientific information often requires a sustained interaction between the individuals or organizations responsible for the research, on the one hand, and those responsible for its commercialization, on the other. The flow of information is by no means a one-way flow, and successful technology transfer often assumes the characteristics of a contact sport.

Among the processes of technology creation, commercialization, and adoption, the commercialization and adoption stages are the most fruitful sources of economic benefits. Realizing economic returns from scientific and engineering advances requires their incorporation into new or existing products or processes. As noted, U.S. performance in technology creation remains very strong, as indicated by a number of indices. In many sectors, U.S. firms and industries continue to exhibit significant strengths in technology commercialization, as well.¹⁶ This does not mean, however, that we should not attempt to find methods of improving U.S. performance in technology commercialization, especially where private markets fail to provide for investment in pre-commercial R&D (defined in the box that follows). We believe that the historic focus of federal science and technology policy on basic research, as opposed to pre-commercial R&D or adoption, may contribute to an erosion in the ability of some important U.S. industries to commercialize and adopt new technology.¹⁷ Concern over U.S. performance in adoption and commercialization has been expressed in a series of reports issued by other expert committees in recent years, some of which are referenced in this report (Chapter 2).

The United States continues to lead the world in basic research.¹⁸ In comparison to other major industrialized nations, the United States has spent more as a percentage of GNP on basic research over the past several decades. Real growth in expenditures from 1986 to 1989, the most recent period for which data exist, was 3 percent per year. The United States invests approximately half of that funding in the world's most dynamic and productive system of university research. The United States will have to continue to develop programs to attract more individuals into careers in science and engineering, attempting to draw women and minorities into this system. There has already been some progress in this area. Women scientists and engineers, for example, now represent more than 13 percent of the total science and engineering work force, up from 11 percent in 1980. A