Mr. RITTER. Thank you so much, Mr. Chairman, and thank you for joining us here in the Lehigh Valley to see what has happened in the forefront, as we call it, the "cutting edge," in science and technology, and using science and technology for America's future.

I can tell you that Lehigh Valley unemployment is down to about 42 percent from well above 10 and in the double digit range just a few years ago. That is better than the national average. Over 1,500 Lehigh Valley companies, mostly small and medium-sized companies, have created thousands of new jobs in the last 5 years. The President of United States said that we-the residents of the Lehigh Valley-are, and I quote, "building a new economy that is providing jobs and making the country competitive again."

Yet, for all our progress, we know from losses in some of our large industries that we are in an economic Olympics, a race for our technological lives, where science and technology can make or break our performance. Our global competitors are trying to beat us to the punch every way they can, but we are facing up to that challenge.

We are here today to explore a key reason for America's and the Lehigh Valley's successes, and a key feature of our future: commitment to science and technology. We are going to explore the meaning of science and technology to our workplaces, to making our jobs more productive and more profitable and making our products and services more attractive to markets all over America and the world.

The wealth produced by our science and technology enterprise not only drives job creation but makes possible our standard of living, our educational system and our ability to provide for the health and well-being of our citizens. From health care and social security for senior citizens, to program Head Start for our children, new discoveries in science and technology and their application in our economy are the main reason we can pay for those important programs. Indeed, science and technology are the seed corn for the bountiful harvest of modern society.

The Lehigh Valley is taking advanced technology to heart; our citizens are among the Nation's leaders in the development and use of new science and technology. And you will be hearing from some of them today.

Our subcommittee has gathered local and national experts to talk about where some of the most spectacular advances are being made: in superconductivity, photonics, manufacturing sciences, and quality. I call all this the "cutting edge" because these fields are like a blade cutting through the unknown and the unimagined and leading us into the future. Right now, enterprising people are making breakthroughs that promise to change the way we work and live. It is very exciting.

Superconductivity: the very word is energizing. Imagine perpetual motion of electricity. That is what scientists are creating with the new superconducting materials. Perhaps we can build ultra-fast trains that will speed along at 300 mph on cushions of air, crisscrossing the country. Perhaps we will see computers that provide much more information, much faster than ever before, to cure the incurable; or perhaps we will see electrical motors or power transmission lines that will save billions of dollars in wasted energy

every year, and that in turn lowers our monthly electricity bills. Frankly, we cannot begin to imagine the possibilities if this scientific advance becomes commercial reality.

Photonics is the leap beyond electronics. Imagine light beams replacing all the wires in your house, creating a "smart" home. That is the promise of photonics. It is the study of sending signals and messages with light particles or light waves instead of electricity. Perhaps we will build an optical computer that is 1,000 times faster than the fastest computer we have ever built. Think of such a tool to solve the unsolvable. Right now we're seeing more and more of our nation's phone calls on tiny glass fibers, and we can use those same fibers to bring affordable picture phones or radically improved TV into our homes.

Imagine the factory of the future, where man and his machine work together in a way that is not only efficient but enjoyable. That is the goal of research and development in advanced manufacturing sciences. But the advances in equipment will not by themselves make our companies competitive. We also need a revolution in the way that people work with machines and the way they work together and the way companies work with their employees. That human resources revolution may be the most exciting one of all. Managers and workers committing themselves to total quality, to constantly improving the way that products and services are produced and delivered, leads to dramatic results. By committing to quality, we can improve productivity, enhance work life, and keep our jobs here in America.

Right here in the Lehigh Valley we are engaged in a bold experiment to accelerate the spread of quality principles, called Quality Valley, USA. You will be hearing from witnesses from two companies-one here in the Valley, and one from another state-which have made substantial gains by committing themselves to quality. To best address the nation's future, teamwork and cooperation between our private sector, government and our educational institutions are essential. Today we will hear from Federal agencies such as the super high-tech Defense Advanced Research Projects Agency [DARPA], the National Science Foundation [NSF], and the National Bureau of Standards,1 which are major players in the national and global R&D arena. They are doing work that is vital to our success in these cutting-edge fields. We will also be hearing from witnesses from industry and universities, who will tell us what is being done now, and what needs to be done to keep America on top.

Finally, I would like to thank the distinguished chairman of the Science, Space, and Technology Committee, my colleague and good friend, neighboring New Jersey Congressman Bob Roe, for convening this hearing. There is no one in Congress who is a more forceful advocate for the strengthening of America's science and technology programs than you, Mr. Chairman; and I salute you for recognizing that the Lehigh Valley of Pennsylvania has much to offer in these cutting edge fields.

1 The National Bureau of Standards was renamed the National Institutes of Standards and Technology in Public Law 100-418, the Omnibus Trade and Competitiveness Act of 1988.

I would also like to welcome and thank all of our witnesses, our guests from afar and our local stars of science. I would also like to thank all of you for attending from the Valley who took time out from your schedules to attend this hearing.

Last but not least, I would like to thank the Bethlehem Steel Company for providing us with this excellent auditorium. Ladies and gentlemen, it is symbolic of the change sweeping American industry that we are here in a steel company auditorium discussing subjects like superconductivity, photonics and robotics-but then again, steel today must be high-tech if it is to survive and prosper. With that, I would like to introduce Dr. William Jolley of the Bethlehem Steel Company, who has some opening remarks. Thank you, Bill.

[The prepared statement of Mr. Ritter follows:]

OPENING STATEMENT OF HON. DON RITTER, A REPRESENTATIVE FROM THE STATE OF

PENNSYLVANIA

Lehigh Valley unemployment is down to about 42 percent from double digits just a few years ago. That's better than the national average. Over 1,500 Lehigh Valley companies, mostly small and medium-sized companies, have created thousands of new jobs in the last 5 years.

The President of the United States said that we-the residents of the Lehigh Valley-are, and I quote, "building a new economy that is providing jobs and making the country competitive again."

Yet, for all our progress, we all know from losses in some of our large industries that we're in an economic Olympics, a race for our technological lives where science and technology can make or break our performance. Our global competitors are trying to beat us to the punch every way they can, but we're facing up to that challenge.

We're here today to explore a key reason for America's and the Lehigh Valley's successes, and a key feature of our future: commitment to science and technology. We're here to explore the meaning of science and technology to our workplaces, to making our jobs more productive and more profitable and to making our products and services more attractive to markets all over America and the world.

The wealth produced by our science and technology enterprise not only drives job creation but makes possible our standard of living, our educational system and our ability to provide for the health and well being of our citizens. From health care and social security for senior citizens to program Head Start for our children, new discoveries in science and technology and their application in our economy are the main reason we can pay for those important programs. Indeed, science and technology are the seed corn for the bountiful harvest of modern society.

The Lehigh Valley is taking advanced technology to heart; our citizens are among the nation's leaders in the development and use of new science and technology. You'll be hearing from some of them today.

Our Subcommittee has gathered local and national experts to talk about where some of the most spectacular advances are being made: in superconductivity, photonics, manufacturing sciences, and quality. I call it the "cutting edge" because these fields are like a blade cutting through the unknown and the unimagined and leading us into the future. Right now, enterprising people are making breakthroughs that promise to change the way we work and live. It's all very exciting! Superconductivity; the very word is energizing. Imagine perpetual motion of electricity. That's what scientists are creating with the new superconducting materials. Perhaps we will build ultra-fast trains that will speed along at 300 mph on cushions of air, criss-crossing the country. Perhaps we'll see computers that provide much more information, much faster than ever before, helping to cure the incurable; or perhaps we'll see electrical motors or power transmission lines that will save billions of dollars in wasted energy every year, lowering our monthly electric bills. Frankly, we can't begin to imagine the possibilities if this scientific advance becomes commercial reality.

Photonics: the leap beyond electronics. Imagine light beams replacing all of the wires in your house, creating a "smart" home. That's the promise of photonics, the study of sending signals and messages with light particles of light waves instead of electricity. Perhaps we'll build an optical computer that's 1,000 times faster than

the fastest computer ever built. Think of such a tool to solve the unsolvable. Right now we're sending more and more of the nation's phone calls on tiny glass fibers, and we can use those same fibers to bring affordable picture telephones or radically improved TV into our households.

Imagine the factory of the future, where man and his machine work together in a way that's not only efficient but enjoyable. That's the goal of research in advanced manufacturing sciences. But the advances in equipment will not by themselves make our companies competitive. We also need a revolution in the way that people work with machines and the way companies work with their employees. That human resources revolution may be the most exciting one of all.

Managers and workers committing themselves to total quality, to constantly improving the way that products and services are produced and delivered, leads to dramatic results; by committing to Quality, we can improve productivity, enhance work life, and keep jobs here in America.

Right here in the Lehigh Valley we are engaged in a bold experiment to accelerate the spread of quality principles called Quality Valley, USA. You'll be hearing today from witnesses from two companies-one here in the Valley, and one from another state-which have made substantial gains by committing themselves to quality.

To best address the nation's future, teamwork and cooperation between the private sector, government and our educational institutions are essential. Today we'll hear from federal agencies such as the super high-tech Defense Advanced Research Projects Agency (DARPA), the National Science Foundation (NSF), and the National Bureau of Standards, which are major players in the national and global R&D arena. They're doing work that's vital to our success in cutting-edge fields., We'll also be hearing from witnesses from industry and universities who'll tell us what's being done now, and what needs to be done to keep America on top.

Finally, I'd like to thank the distinguished chairman of the Science, Space, and Technology Committee, my colleague and good friend, neighboring New Jersey Congressman Bob Roe, for convening this hearing. There's no one in Congress who's a more forceful advocate for strengthening America's science and technology programs than you, Mr. Chairman, I salute you for recognizing that the Lehigh Valley of Pennsylvania has much to offer in these "cutting edge" fields.

I would also like to welcome and thank all of our witnesses, our guests from afar and our local stars of science. I'd also like to thank all of you attending from the Valley who took time out from your busy schedules to attend this hearing.

Last but not least, I'd like to thank the Bethlehem Steel Company for providing us with this excellent auditorium. It is symbolic of the change sweeping American industry that we're here in a steel company auditorium discussing subjects like superconductivity, photonics and robotics but then again, steel today must be high tech if it is to survive and prosper.

With that, I would like to introduce Dr. William Jolley of the Bethlehem Steel Company, who has some opening remarks.

STATEMENT OF DR. WILLIAM JOLLEY, GENERAL MANAGER, TECHNOLOGY AND QUALITY ASSURANCE, BETHLEHEM STEEL

CORP.

Dr. JOLLEY. Mr. Chairman, Congressman Ritter, and panel members, welcome to Bethlehem and, in particular, Bethlehem Steel Corporation. As Don mentioned, my name is Bill Bill Jolley, and I am the general manager of technology and quality assurance at Bethlehem Steel. It is appropriate to hold this hearing on science and technology at Bethlehem Steel, since our company, like many other manufacturing organizations, has been significantly impacted by the rapid advancements in technology achieved by our overseas competitors.

Many people refer to steel and other basic manufacturing industries as "Rust Belt" industries, implying that we are an old industry using yesterday's technology. This is far from the truth. Although we may be an old industry, historically we have been on the cutting edge of technology and, over the years, we have continued to install many technological improvements. Today, we are not

a low-tech industry. You only have to see a modern continuous caster or hot strip mill with their computerized process controls to realize that technical sophistication is inherent in such operations. In the 1950's and 1960's, the United States was the world leader in developing and adopting new technologies in the manufacturing industries. However, in the 1970's and 1980's, this progress slowed because of capital shortages as imports increased and consumption leveled off. The steel industry's lack of profitability and its need to drastically cut costs in recent years has aggravated this problem through reductions in research staffs. Consequently, in order to increase our competitiveness, we are now in the unenviable position of having to depend mainly on technology developed overseas. Also, there are fewer scientifically-trained people available to adopt this new technology. It would be difficult to remedy this problem by simply hiring researchers from universities. Fewer and fewer American students have been inclined to obtain advanced degrees in the engineering and scientific disciplines. Furthermore, our industry has reduced its research grants to universities, and the obvious result has been to discourage what few graduate students there are from working in steel-related industries.

In summary, in an industry which is technologically sophisticated, we have a significantly diminished effort in new technology development, and have a very limited ability to recruit the people required to reverse this situation. I am sure this also applies to many other basic manufacturing industries in the United States.

To some extent, recent congressional developments such as the "Steel Initiative," the Report of the Technology Policy Task Force of Chairman Roe's Committee on Science, Space, and Technology, and Congressman's Ritter's program on quality improvements in industry and education are all beginning to address these problems.

The "Steel Initiative" provides welcome funds for steel R&D and, as a member of the AISI Committee on Technology, I have recently been involved in approving the AISI Direct Steelmaking Proposal which we plan to present to the Department of Energy for "Steel Initiative" funds later this year. Also, Bethlehem has just submitted a proposal for funding from the DOE's Clean Coal Program.

The Technology Policy Task Force has, among many other things, recognized the need for more qualified engineering graduates in the United States-something we can relate to as we try to replenish our technical resources.

Don Ritter's quality program is emphasizing at the government level the contribution that quality makes to our industrial competitiveness, both directly and through our education system.

We hope that these types of initiatives will continue, and we in the industry are prepared to give you all the support we can. Once again, welcome to Bethlehem and good luck in your discussions and deliberations today. Thank you.

[The prepared statement of Dr. Jolley follows:]