Description

American society is becoming increasingly reliant on the use of electronic information technology, principally computer and communication systems. Economists and social scientists point out that information is a basic resource for society and an important factor of production for the economy. Information technology provides business, governments, and citizens with the basic tools necessary to communicate and use information. Furthermore, the information industry, itself, including both those that produce electronic hardware and those that offer information services, is an increasingly important part of U.S. industrial strength. Because of this reliance on information technology, public attention has been drawn to the process of innovation in that field, developing new technological products and bringing them to the marketplace. Since research and development (R&D) is generally considered to be a key element driving innovation (although not the only one), Congress is concerned with the general health of R&D in information technologies. Concerns include the effects that changes in the structure of the U.S. telecommunications industry are having on industrial R&D, and the implications of new foreign programs intended to challenge traditional U.S. market leadership in some areas of computers and communications.