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ZachGraves,DirectorofTechnologyandInnovationPolicy,theRStreetInstituteTestimonybeforetheU.S.HouseofRepresentatives,

CommitteeonAppropriations,LegislativeBranchSubcommitteeApril17,2018

DearChairmanYoder,RankingMemberRyanandMembersoftheCommittee:

Thankyouforconsideringmytestimony.MynameisZachGraves,andIamtheDirectorofTechnologyandInnovationPolicyattheRStreetInstitute,afree-marketthinktankheadquarteredhereinWashington.AtRStreet,myteam’sworkfocusesonissuessuchasautonomousvehicles,artificial

intelligence,cybersecurityandtelecommunications.Ouraim,aswesay,isto“makethefuturehappensooner.”Toaccomplishthis,wehopetoencouragepoliciesthatmaximizethebenefitsofnewinnovationswhileanticipatingandmitigatingtheirrisksandexternalities.

Incomingheretoday,I’mhopingtostartadiscussionabouthowCongressequipsitselfwiththeexpertadviceandresourcesnecessarytounderstandandtacklethegrowingnumberofinnovationpolicy

challengesthatfaceourcountry.Inthepastseveraldecades,we’veseenastoundingtechnologicaladvancesthathavepropelledglobal

improvementstothehumanconditionandgroundedAmerica’sleadershipintheworld’seconomy.Wehave,forexample,madeInternetaccessanddigitalcommerceubiquitous,developednewvaccinesand

medicalinnovationsandexpandedaccesstosmartphonestothepointthattheyareevenbecomingcommoninthedevelopingworld.1

TheseadvancesweremadepossiblebecauseofAmericaningenuity,andbecauseAmericatookaforward-lookingapproachtoestablish(andwhenappropriate,toforbearfromcreating)legalframeworksandregulatorypoliciesthatallowedemergingtechnologiestomatureandflourish.2

Becauseofthis,Americantechnologycompaniesdominatetherosterofmostvaluablefirmsintheworld,employmillionsofU.S.workers3andaccountforasignificantportionoftheGDP.4

1JacobPoushter,“SmartphoneOwnershipandInternetUsageContinuestoClimbinEmergingEconomies,”PewResearchCenter,Feb.22,2016.http://www.pewglobal.org/2016/02/22/smartphone-ownership-and-internet-usage-continues-to-climb-in-emerging-economies.2Forexample,policiessuchasSection230oftheCommunicationsDecencyAct,theElectronicCommunicationsPrivacyAct,theInternetTaxFreedomActandtheClintonadministration’sFrameworkforGlobalEconomicCommerce.3Applealoneisresponsibleforcreating2,000,000U.S.jobs.See,e.g.,“TwoMillionU.S.JobsandCounting,”Apple,2018.https://www.apple.com/job-creation.4Forinstance,aPwCreportestimatedthatin2015,theconsumertechnologysectordirectlyaccountedfor5.2%ofGDP–whichroseto10.3%countingindirectandinducedeconomicactivity.See“U.S.ContributionoftheConsumerTechnologySector,”PricewaterhouseCoopers,LLP,August2016.

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However,thebreadthandscopeofnewtechnicalchallengesisincreasingfasterthanever–withissues

suchassecuringtheInternetofThings,evaluatingrenewedcallsforextraordinaryaccesstoencryptedcommunications,understandingthelaboreffectsofautomation,haltingthespreadofantibioticresistantdiseases,regulatingdriverlesscars,orthinkingthroughtheimplicationsofmachinelearning—

tonameonlyafew.Unfortunately,however,Congress’internalcapacitytotackletheassociatedtechnicalcomplexitieshasnotkeptpace.

Earlierthisyear,Ico-authoredawhitepaperwithRStreetVicePresidentofPolicyKevinKosarontheOfficeofTechnologyAssessment.5Asyoumayrecall,theOTAwasanexpertlegislativesupportagencythatexistedinsidethelegislativebranchfrom1972to1995.AlthoughtheCongressionalResearch

Service(alsosometimesreferredtoas“Congress’thinktank”)hasmanyvirtues,ithasaverydifferentmissionfromthatoftheformerOTA.UnlikeCRS’focusonproducingdigestiblesummariesofexistingresearchandgivingresponsiveadvicetoCongress,theOTAfocusedonproducingrobustoriginal

researchreportsauthoredbyteamsofhighly-credentialedscientistsandengineers.6Indevelopingthesereports,italsoconductedformalconsultationswithoutsidestakeholdersinindustryandacademia–similartohowtheGovernmentAccountabilityOfficecurrentlyfunctions.

Inthisway,theOTAplayedanimportantroleinshapinghowtheUnitedStates(andothercountries)approachedtechnologyissues.However,fallingvictimtoapoliticallandscapethatdemandeda

symbolicsacrifice,itwasdefundedin1995.Thislandscapeemergedfromthe“ContractwithAmerica,”aplatformfromthe1994congressionalcampaignthathelpedpropelRepublicanstoalong-sought

majorityinbothchambersofthe104thCongress.Thisplatformgaverisetoapoliticallyusefulbutflawedpolicyidea:namely,thatof“CuttingCongressFirst.”Thiswasultimatelyachievedwithdeepcutstocongressionalstaffingaswellaslegislativesupportagencies–includingtheOTA’sentire$22million

budget.7Whilethegoalofcuttingwastefulgovernmentspendingisanadmirableone,abolishingtheOTAmerely

underminedCongress’abilitytodoitsjobinexchangefornegligiblesavings.Afterall,itsbudgetwasonlyatinyportionofthelegislativebranchbudget,whichitselfisatinyfractionoftheoverall$4trillionfederalbudget.Incontemplatinganysavings,onemustalsoconsiderthetrillion-dollarstakesinvolved

http://www.cta.tech/cta/media/ResearchImages/U-S-Economic-Contribution-of-the-Consumer-Technology-Sector-2016.pdf.5ZachGravesandKevinKosar,“BringintheNerds:RevivingtheOfficeofTechnologyAssessment,”RStreetPolicyStudyNo.128,January2018.http://www.rstreet.org/policy-study/bring-in-the-nerds-reviving-the-office-of-technology-assessment.6See,e.g.,RichardRowberg,“HowDidtheReportsofOTA,theCongressionalResearchService,andtheNationalAcademiesDiffer?”,LegBranch.com,Nov.14,2016.http://www.legbranch.com/theblog/2016/11/14/how-did-the-reports-of-ota-the-congressional-research-service-and-the-national-academies-differ.7$22millionin1995isabout$35millionin2017dollars.

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insettingtechnologypolicyandthehighcostsofgettingitwrong.Whenitexisted,theOTAalsohelpedCongressmakecost-savingdecisionswellinexcessofitsownbudget.8

Manyconservativestoday–suchasSenatorMikeLee,RepresentativeJebHensarling,andRStreet’sownGovernanceProject–haveshownarenewedinterestinstrengtheningtheFirstBranchand

restoringitsproperconstitutionalroleandcapabilities.9Aspartofthiseffort,itisofkeyimportancethatCongressmusthaveitsownresourcestoascertainfacts.Otherwise,itislefttotakethewordofexecutiveagencies,interestgroupsandlobbyists.Thiscircumstanceisunfavorabletothehealthofour

democracy.ThisunderstandinghashelpedinformRStreet’sinterestinrevivingtheCongress’stechnology

assessmentarm,whetherintheformoftheOTAoradifferentlystructuredentity.Indeed,theOTA’sauthorizingstatuteremainsineffect,anditsfundinglieswithinthejurisdictionofthissubcommittee.Itcould,therefore,berevived—practicallyspeaking—simplybyincludingfundingforapilotinthenext

legislativeappropriationsbill.However,Iamnotcallingforthistohappennow.Ithasbeennearly25yearssincetheagencyexisted

andthusbeforejumpingin,appropriateconsiderationmustbegiventowhatasuccessfultechnologyassessmentofficewouldlookliketoday–andadmittedly,thismaybequitedifferentfromwhatitlookedlikein1995.Aswediscussinourpaper,therearealsogeneralpointsuponwhichtheOTA’s

structuremightbecriticized.Additionally,thereareanumberoflogisticalconsiderationsthatneedtobeaddressed.

Thus,inordertoresolvethesequestionsandopenfurtherdiscussion,Irespectfullyurgethesubcommitteetorequestastudyonwhatwouldbenecessarytoreestablishanindependenttechnology

assessmentfunctioninsidethelegislativebranch.Suchastudycouldbedonebythissubcommittee,throughanadhocgroupoflegislativebranchandtechnicalexperts,orthroughanoutsideorganizationsuchastheAdministrativeConferenceoftheUnitedStates,theAmericanAssociationforthe

AdvancementofScienceortheNationalAcademyofPublicAdministration.Thestudycouldanswerkeyquestionsaboutreestablishingacongressionaltechnologyassessment

function,suchas:

1. Whatistheappropriatescopeoftheoffice?Howshoulditprioritizeeconomics,engineering,

thehardsciencesandotheracademicdisciplines?

8Forexample,theOTA’srecommendationshelpedmodernizetheSocialSecurityAdministration’sITprocurements,whichsavedtaxpayers$368million.Additionally,itscriticismoftheSyntheticFuelsCorporationcontributedtobillionsintaxpayersavings.See,e.g.,M.GrangerMorganandJonM.Peha,ScienceandTechnologyAdviceforCongress(Routledge,2003),p.69.9“ArticleIProject,”OfficeofSenatorMikeLee,2016.https://www.lee.senate.gov/public/index.cfm/article1project.

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2. Whatistheappropriatetimeframetogeneratereports?Howrobustshouldtheybe?3. Whattypeofin-houseexpertiseshouldtheofficehave?Shouldreportsbedrivenbyin-houseor

outsideexperts?4. Howshoulditbalancedeeporiginalanalysiswithrespondingtoinquiriesorothertimely

requests?

5. Howshoulditprioritizemakingitsresourcesavailabletorank-and-filememberoffices,inadditiontocommitteestaff,chairmenandrankingmembers?

6. Howcanitbestructuredtoavoidpoliticizationorbias,ortheperceptionthereof?

7. Howandtowhatextentshoulditengagewithoutsidestakeholdersinacademia,civilsocietyandindustry?

8. Shoulditbestructuredasanindependentlegislativebranchagencyorhousedwithinanother

entityliketheLibraryofCongress?Or,shoulditmerelyexpandtheGAO’scurrenttechnologyassessmentfunctions?10

9. Wheremightitbephysicallylocatedtoallowconvenientaccessforcongressionalstaff?

10. Whataretheminimumviablebudget,personnel,officeandequipmentrequirementsforapilot?

Insummary,a21st-centuryCongressneedsa21st-centuryunderstandingoftheworldanditspolicychallenges.Givenlimitedresourcesandafast-pacedcongressionalcalendar,congressionalofficesaren’tabletomeetthesechallengesalone.Withyourhelp,wecanbeginadiscussionabouthowour

institutionscanmodernizeandadapttothedemandsofourchangingtimes.

Thankyoufortheopportunitytosharethesethoughtswithyou.

10Since2008,theGAOhashadasmalltechnologyassessmentdivision.