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Clinton to Tap Technology’s Power

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Michael Schrage is a writer, consultant and research associate at the Massachusetts Institute of Technology. He writes this column independently for The Times

Arkansas may be better known for chicken processing than data processing, but there’s no question that President-elect Bill Clinton wants to bring an Information Age sensibility to the White House.

Reinforced by his running mate, Al Gore, who has been designated as the new Administration’s “technology czar,” expect Clinton to set an agenda that swiftly reshapes the federal innovation infrastructure.

If Clinton the President bears any resemblance to Clinton the candidate, here are a few specific initiatives that you may see during Clinton’s first 100 days in office.

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* Expect the Clinton Administration to quickly propose a big reduction in the capital gains tax to encourage venture capital investment and new business. Clinton wants to show that he understands the importance of capital formation, but that any capital gains reduction should be targeted toward new investment. A venture capital gains reduction could give a quick boost to the unhappy regional economies of California, Massachusetts and Texas.

* Don’t be surprised if Clinton retains current National Institutes of Health Director Bernadine P. Healey. She’s been a good manager, she’s a woman, and her moderate Republicanism gives Clinton an opportunity to demonstrate bipartisanship.

What’s more, the NIH needs some continuity as it begins to come to grips with Healey’s strategic plan for the agency. The $9-billion-a-year agency is striving to balance its public health mission with its efforts to boost U.S. competitiveness in the global biomedical marketplace. However, expect the new Administration to quickly rescind the current order that forbids fetal tissue transplant research.

* Expect Clinton to expand the mission of the Defense Advanced Research Projects Agency to include funding for non-defense technology. The Pentagon agency, which has funded breakthrough research in computing and new materials, will be asked to make venture capital-like investments in the commercial sector. This new “dual use” technology initiative could mean a doubling of DARPA’s budget in three years. And don’t be surprised if former DARPA Director Craig Fields--fired by the Bush Administration for trying to push the agency in a new direction--is offered his old job back.

Indeed, expect the themes of “dual-use” technologies and “defense conversion” to dominate the debate surrounding the post-Cold War Pentagon. The new Administration will try to position economic development via Pentagon investment as a national security issue.

* A dark-horse candidate for White House science adviser: former National Science Foundation Director Erich Bloch. Prickly and outspoken, Bloch has enormous credibility in the “competitiveness” community and the research Establishment. Bloch is the senior fellow at the bipartisan Council on Competitiveness (not to be confused with the White House Council on Competitiveness, headed by Vice President Dan Quayle), which has issued many reports on technology policy.

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In fact, if you want to know how a Clinton Administration plans to reorganize Lawrence Livermore, Los Alamos and other national laboratories, read the council’s newly issued report. Among the think-tank Establishment, the Council on Competitiveness is arguably the biggest winner with the change in Administration.

It’s quite possible that the next Secretary of Commerce will come from the council’s ranks. Former Hewlett-Packard Chief Executive John Young founded the council. He is a lifelong Republican who endorsed Clinton.

* As technology czar, expect Vice President-elect Gore to energetically push for the proposed “supercomputer superhighways” as a new digital infrastructure for the nation’s telecommunications networks. Gore supports the idea that American industry needs high-capacity networks to meet future communication needs.

Of course, “The Ozone Man” can be expected to bring his environmental concerns to the nation’s research and development agenda. Don’t be surprised if Gore convenes a “summit” with Detroit’s auto makers to discuss how the federal government can help GM, Ford and Chrysler dramatically boost their automobile mileage.

* This Administration will also boost AIDS research funding--but probably by less than many activists expect. However, Clinton and Gore will be much more outspoken about the importance of managing biomedical innovation to cope with AIDS. In this White House, AIDS research will not be a taboo subject.

While Clinton and Gore do not represent the second coming of Gary Hart and the other Atari Democrats who joined Congress in the mid-1980s, there should be no question that this Administration will promote the use of science and technology as tools for promoting economic growth. The first 100 days should confirm just how energetic the Clinton White House wants to be.

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