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In response to the foreign challenge in the global marketplace, the United States Congress has explored ways to stimulate technological advancement in the private sector. The government has supported various efforts to promote cooperative research and development activities among industry, universities, and the federal R&D establishment designed to increase the competitiveness of American industry and to encourage the generation of new products, processes, and services. Among the issues before Congress are whether joint ventures contribute to industrial competitiveness and what role, if any, the government has in facilitating such arrangements.

This report summarizes the debate over government policy on industrial competitiveness and technological advancement and its connection to the U.S. economy. It also discusses congress' approach in the previous years on this topic, and the policy changes that have been implemented in recent years.

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