The NSF Engineering Research Centers and the University–Industry Research Revolution: A Brief History Featuring an Interview with Erich Bloch

The NSF engineering research centers (ERC) program served notice of a sea change in university research funding and institutional designs, representing a transition from department-based, principle investigator-oriented university science to a new center-based model encouraging universities to work with industry and to work beyond the strictures of academic disciplines. In our view, the past three decades of U.S. science and technology policy have not seen an institutional change of greater importance. This paper begins with a brief history of the ERC program, including discussion of the program’s origins, goals and research foci, growth, and influence as a model for other science center programs in the U.S. and abroad. Our “primary data” include an interview with Erich Bloch, former NSF director who was one of the chief architects and advocates for the ERC program. Because of the historical importance of this interview, we present the entire interview with the original material largely unaltered. We conclude with discussion of the managerial challenges that ERCs face within the context of traditional university structures.     

The Interenterprise Arrears Crisis in Russia

Two American economists discuss in considerable detail the critical problem of interenterprise arrears (overdue payments for goods and services) in Russia that undermines the transition to a market economy and privatization. The study is based on interviews involving directors of 32 industrial enterprises, managers of commercial banks, and Central Bank officials in Moscow, Novosibirsk and Sochi from May to mid-November 1992. In addition to analyzing the causes of the mounting accumulation of debt and highlighting the financial problems of enterprises coping with the crisis, the authors examine the anatomy of present-day banking and extension of credit to finance production in the former USSR. Journal of Economic Literature, Classification Numbers: P21, Ol7, G20.     

Roadblock to Economic Reform: Inter-Enterprise Debt and the Transition to Markets

Two American specialists on Soviet and East European economies examine the relationship between inter-enterprise payments for goods and services and economic reform in Russia. Based on extensive interviews with Russian governmental officials and enterprise directors, as well as unpublished documents, the authors trace and discuss the unsuccessful policies of the government and Central Bank of Russia to eliminate arrears during 1992-93. They also explain why financial underdevelopment poses a serious obstacle to economic reform, and why an effort to sharply tighten credit in 1993-94 could lead to cascading enterprise failures. The analysis includes references to the change after October 1993. Journal of Economic Literature Classification Numbers: P21, O17, G20.