lished, the emergence of new audiovisual materials and computer data banks, the mobility and specialized needs of constituents, and the rising cost of personal services and materials has come the realization that there is a limit to self-sufficiency. Not even the largest libraries can afford the cost of acquiring all of the books and other relevant information needed by their constituents.

(5) Special libraries with information resources for work-related needs exist throughout the United States, but at present they serve only a limited clientele.

(6) Greater collaboration should be developed between libraries and the commercial and other private sector distributors of the newer information services when the results are in the public interest. In general, users are unaware of the many specialized information services and computer information retrieval systems available for their

use.

(7) Funding for most library and information services at every level-local, state, multistate, and Federal-is inadequate. A major change in the Federal investment in library and information services is needed to ensure systematic development through funding formulas and arrangements that are mutually reinforcing at every level.

(8) New Federal and state legislation is needed which will give local libraries the incentive actively to join larger systems of service outside their immediate jurisdictions. Without incentive and assistance, it is unlikely that local jurisdictions will allocate funds to provide extra-jurisdictional services through state, regional or national networks.

Not all library problems are included in the above list, but it does reflect some of the major deficiencies which need correc

tion.

Some Concerns of the

Private Sector

The term "private sector" as used here includes libraries and other organizations outside of government which are not tax supported. Libraries in the private sector were discussed in Chapter II. This Chapter concentrates on organizations in the for-profit and not-for-profit parts of the private sector which are engaged in the production, processing, and distribution of information. Some of these are commercial companies, while others are not-for-profit scientific and professional societies.

Publishing and abstracting and indexing organizations have long produced, marketed, and sold printed materials and bibliographic access tools to individuals, libraries, and other institutions. These organizations continue to perform vital functions in information transfer. However, with new developments in computers, telecommunications, and image technology, and with the growing importance of nonprint materials, many new for-profit companies have also begun to contribute to the flow of information goods and services. This loose grouping of publishing and information companies has come to be known as the “information industry." While many of its current services are relatively experimental, there is an indication that the information industry will exert increased influence on the nation's information services in the years ahead.

The increased pace of technological change, the growth in media, the computer, and advancements in communications and micrographics have all combined to produce vast amounts of information at an unprecedented rate; information is required by more people and groups than ever before. Some of this information is available from public sources; other information is not. However, the information itself knows no jurisdictional boundaries and to the user, information is information. He or she is hardly concerned with the distinction between a public or a private source. The Commission con

siders it crucial that information activities in the public and private sectors operate in harmony with one another and in consonance with the national interest. Precedent already exists for incorporating private sector resources and services into the functional information structure of the country. For example, the National Library of Medicine has developed a nationwide biomedical information network which not only includes, but is also dependent upon, the private sector for its successful implementation.

Commercial firms engaged in information activities operate independently of each other, in accordance with the custom in the for-profit sector of the economy and in keeping with the requirements of Federal antitrust regulations. Thus, the opportunity for coordinated development, such as is apparent in library consortia and networking activities, is not readily available in this part of the private sector. Some degree of coordination does exist through trade and professional associations.

The principal problems of publishers and information companies and other information organizations were presented to the Commission in a series of discussions and seminars held with representative groups of the for-profit and not-for-profit part of the private sector. The economic interdependence of those who create and publish knowledge and those who receive and use it became obvious very quickly, and the Commission is aware that, in fashioning a new National Program, it must remain sensitive to this interface.

The Commission also recognizes that a program as broad as the National Program cannot, and indeed should not, be developed and operated entirely out of Federal tax monies, and that many information services addressed to specific disciplines and to specialized user clienteles should continue to be paid for chiefly by those who benefit from them, rather than by the taxpayer at large. The initiatives taken in the private sector to develop and operate new user-supported services are a valuable contribution to the National Program, which of necessity must focus the major part of its attention on broader user clienteles and less specialized information services.

Three areas are of major concern to much of the for-profit part of the private sector:

Economic Viability

In the for-profit part of the private sector, the creation of published materials and related services are regulated by supply and demand. Profit motivates the producer to keep his manufacturing costs down, to seek ways of expanding his sales, and, at the same time, to continually probe the marketplace for new products and services that are needed. Ultimately, the ability to operate profitably depends on user satisfaction and consequent demands. If an enterprise is able to operate profitably, then it can reinvest capital and accept new risks.

In the not-for-profit part of the private sector, economic viability is equally important. The societies and professional organizations involved serve disciplines and other areas whose vital needs continue to increase. However, unlike for-profit companies, these services cannot seek profit to provide reserves for progress and must strive, through quality products, for a close balance between costs and revenues.

The late 1960's saw a rapid growth in the number of library consortia, a primary motive being to share resources as a means of saving money, expanding user services, or both. In the 1970's, library systems and networks are being planned and implemented that take advantage of opportunities provided by new technology. The private sector recognizes the need for and value of better articulated library systems, but is concerned about the potential threat of some library systems and networks to its own economic well-being.

Publishing and information services maintain that sharing resources through networks implies a net loss in their potential sales. Librarians, on the other hand, disagree with this thesis, insisting that the same volume of material will always be needed to satisfy local needs, and that networks will lead to greater information use and, hence, to increased sales.

The producers of creative works and related information and the libraries and their users, who are the consumers of this information, cannot exist without each other. A vigorous national library system is dependent upon a vigorous private sector to help support and sustain it. The Commission recognizes that sound economic growth in the private sector is essential to the development of the National Program. Precautions should therefore, be taken to protect and safeguard

Relationship to the Federal Government

The Federal Government is the largest single producer and disseminator of information in the United States. Each year the Federal agencies spend billions of dollars on projects most, if not all, of which lead to new information of benefit to the American public. At present, this information is channeled to the public through the Government Printing Office, the depository system, the National Technical Information Service, and through a variety of separate formal and informal arrangements made by the agencies. Most of this information appears in print but, in recent years, it has begun appearing in computer tape format as well.

In addition to its role as printer and distributor, the Federal Government also operates information services intended to support the mission-oriented agencies and, in some instances, to serve the needs of the general public. Not all Federal activities of this kind are administered by Federal employees. Some agencies contract with private firms to publish and market their works; some agencies hire commercial firms to operate their information centers; still others encourage the private sector to repackage and/or distribute their information products so as to widen the range of utilization.

The diversity of government policies causes confusion and, in some cases, alarm in the private sector. The question is whether the Federal Government or the private sector should publish and disseminate information produced with public funds. The private sector sees a positive impact on the national economy and on the general tax base, if its components are permitted to compete for the publication of products and services derived from Federal agency programs. It further maintains that publication by the private sector could save the government substantial printing and distribution costs and provide products of better quality that can be marketed effectively. On the other hand, the Federal Government has a public responsibility, and many agencies have statutory missions, to publish and disseminate information produced with public funds for public benefit and with assured continuity.