Second, the report introduces a novel distinction between "investment efficiency" and "process efficiency," and recommends that these aspects be evaluated in different ways. Assessments of investment efficiency should examine whether an agency's R&D portfolio, including the budget, is relevant, of high quality, matches the agency’s strategic plan, and is adjusted as new knowledge and priorities emerge. These evaluations require panels of experts, which should comprise both scientists and other stakeholders. In contrast, evaluations of process efficiency should focus on "inputs" (the people, funds, and facilities dedicated to research) and "outputs" (the services, grants, publications, monitoring, and new techniques produced by research), as well as their timelines. Of nine measures currently used by R&D agencies, common examples are the number of grants awarded or publications produced annually, which could be assessed against appropriate benchmarks.

Third, the committee clarified the roles of outputs and outcomes. EPA's difficulties in answering PART's questions about efficiency have grown out of OMB's insistence that the agency find ways to measure the efficiency of its research based on outcomes, rather than outputs. Measuring research efficiency based on what the committee describes as "ultimate outcomes" -- for example, whether a program eventually results in cleaner air or fewer deaths -- is neither achievable nor valid, because such outcomes occur far in the future and are highly dependent upon actions taken by many other people who may or may not use the research findings. The committee's review of practices across government R&D agencies revealed that no agency has found a way to demonstrate efficiency based on ultimate outcomes.

The report does endorse evaluating efficiency based on "intermediate outcomes" -- for example, assessing whether a program has improved the body of knowledge for decision-making, or disseminated newly developed tools and models. These assessments would be conducted most effectively using expert review panels and not just formulas.

Finally, the committee recommended that the efficiency of EPA's research programs be evaluated according to the same standards used at other agencies. OMB has rejected some methods for measuring research efficiency when proposed by EPA, but accepted them when proposed by other agencies. OMB should train and oversee its budget examiners to make sure they implement the PART questionnaire consistently and equitably across agencies.

The study was sponsored by the U.S. Environmental Protection Agency. The National Academy of Sciences, National Academy of Engineering, Institute of Medicine, and National Research Council make up the National Academies. They are private, nonprofit institutions that provide science, technology, and health policy advice under a congressional charter. The Research Council is the principal operating agency of the National Academy of Sciences and the National Academy of Engineering. A committee roster follows.

Copies of EVALUATING RESEARCH EFFICIENCY IN THE U.S. ENVIRONMENTAL PROTECTION AGENCY will be available from the National Academies Press; tel. 202-334-3313 or 1-800-624-6242 or on the Internet at HTTP://WWW.NAP.EDU. Reporters may obtain a copy from the Office of News and Public Information (contacts listed above).

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