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As can be seen, the 'Group of Seven' nations devote a considerable measure of the R&D efforts and resources to advancing transportation technologies. Much of this activity is channeled into motor vehicle and aerospace research, both for economic competitiveness and national security reasons. (See Appendix A for a breakdown of revenues and R&D spending by major international transportation firms.)

Due to the high technology content and national security implications, aerospace tends to spend a higher proportion of revenues on R&D, and receives a higher proportion of governmental funds for this purpose. On the other hand, the sheer volume of R&D in the motor vehicle industry dominates all transportation R&D activity. When combined, the major vehicle manufacturers have spent over $40 billion annually on R&D in recent years (see Table A-1).

In addition to transportation, however, other key technology areas also receive considerable governmental support and national attention in these and other industrial and industrializing nations. The reasons for the selection of these technology fields are similar to those that sway transportation research decisions as well – international economic competitiveness and national security.

Several recent reports in the U.S. have drawn considerable national and public policy attention to these technology areas, and have sparked an ongoing debate on the best means for selecting and supporting R&D projects. Among these important reports are: the biennial National Critical Technologies Reports from the Office of Science and Technology Policy (OSTP) (1991, 1993, 1995); the U.S. Department of Commerce’s Council on Competitiveness, Endless Frontier, Limited Resources: U.S. Policy for Competitiveness (1996); and the RAND Critical Technologies Institute’s Critical Technologies in a Global Context: A Review of National Reports (May 1997).

The reason for this intense interest in the subject is stated clearly in the executive summary of the 1995 National Critical Technologies Report:

"The development and use of technologies remains a driving force in U.S. economic prosperity and national security. Maintaining the strengths and competitiveness of the U.S. technological enterprise, therefore, continues to be vital. In the current climate of intensifying global competition, rapid technological change, and geopolitical uncertainties, the need for identifying critical technologies for concentration of effort becomes even greater." (p. v).

The report, submitted to the President by OSTP and the National Critical Technologies Review group, identified seven key technology categories, each of which in turn contained several technology areas. These are shown in Table 8.

All of these technology groups either directly or indirectly benefit transportation. Even the ‘Human Factors’ area under ‘Living Systems’ receives considerable transportation R&D funding. The 1995 report judged the U.S. to be at least tied or ahead of Japan and Europe in each of these technology areas. However, it did note that our relative standing was declining in many of these areas, including: aerodynamics, avionics and controls, propulsion and power, materials, structures, communications, and computing systems. These are some of the key technologies to assure a competitive transportation industry. In addition, Japan and Europe were judged to be leading in several specific transportation-related areas, such as high-speed rail and magnetic levitation, and highway infrastructure. ²³

Table 8

National Critical Technology Areas

Technology Category