Leadership in innovation is essential to U.S. prosperity and security. In a global, knowledge-driven economy, technological innovationthe transformation of newknowledge into products, processes, and services of value to societyis critical tocompetitiveness, long-term productivity growth, and an improved quality of life. Preeminence in technological innovation depends on a wide array of factors, oneof which is leadership in engineering research, education, and practice. A threedecade-long decline in the share of federal investment in research and developmentdevoted to engineering and a perceived erosion of basic, long-term engineeringresearch capability in U.S. industry and federal laboratories have raised serious questionsabout the long-term health of engineering research in the United States. Thisbook illustrates the critical role of engineering research in maintaining U.S. technologicalleadership; documents major challenges and opportunities facing the U.S. engineering research enterprise; and offers specific recommendations for leaders infederal and state government, industry, and universities to help strengthen U.S. engineering research in the face of intensifying global competition.