The state of research at Cornell remains vibrant and vital. This report deals with an issue of significant national importance: the role of the research university in the nation?s economic health. The report recommends actions that should be taken by U.S. industry and federal agencies, but much of the fundamental remediation needs to occur in our K-12 schools and universities. Our scientific workforce and teaching corps are woefully inadequate, and our university base for performing basic research is underfunded. Many thoughtful economists estimate that about half of U.S. economic growth since World War II has been the result of technological innovation following research. Without a significant renaissance in our own national ability to innovate, the United States is likely to fall further behind other nations. At Cornell we intend to make significant contributions to the solution of one of the most difficult national problems, which has special national urgency: the development of new energy sources. We have initiated a broad range of new programs, ranging from the development of biofuels to fundamental studies of catalysis at surfaces of fuel cells. The nascent studies in energy research can be found in most of our colleges. With a unique range of research--in agriculture; ultrahigh technology; medicine; and humanistic, social, and economic studies--across 16 colleges and divisions, Cornell will continue to make distinctive, tangible contributions of far-reaching national importance.