national institute of standards and technology technology administration u.s. department of commerce...

National Institute of Standards and Technology • Technology Administration • U.S. Department of Commerce

Rosalie Ruegg, DirectorEconomic Assessment Office

Advanced Technology ProgramTel: 301-975-6135 [email protected]

““Delivering Public Benefit Delivering Public Benefit With Private Sector Efficiency With Private Sector Efficiency

Through the ATP”Through the ATP”

NAS/NRC/STEP Workshop onAssessing the ATPWashington, D.C.

April 25, 2000

• A Decade of . . . Innovation Program Assessment Benefits to the Nation


A Decade of InnovationA Decade of Innovation

468 projects co-funded

1,067 participants and 1,027 subcontractors– > 50% of projects led by small businesses– More than 145 Universities participating– Nearly 20 national laboratories participating

$3 billion of advanced technology development funded– ATP Share = $1.496 billion– Industry Share = $1.499 billion


Direct & Indirect Paths to Direct & Indirect Paths to ImpactsImpacts

• Productivity Gains• New Business Opportunities• Employment Benefits• Higher Standard of Living• Quality of Life Gains

New/ImprovedProducts and

Services


““Direct Path” BenefitsDirect Path” BenefitsPrivate and Social Returns to R&DPrivate and Social Returns to R&D

Source: Jaffe 1996, Modified by Ruegg.

• Pure Market Spillover

Firm 1R&D

NewKnowledge

Held byFirm 1

BetterProducts

LowerCosts

ProductMarketCompe-

tition

Firm 1Profits

CustomerBenefit

privatereturn

socialreturn

Economic Benefit

spillovergap


““Direct Direct && Indirect Path” Benefits Indirect Path” BenefitsPrivate and Social Returns to R&DPrivate and Social Returns to R&D


(Rev

erse

Eng

inee

ring)

• Patents• Publications• Other

NewKnowledgeReleasedBy Firm 1

OtherFirms’

Knowledge

BetterProducts;

LowerCosts

OtherProductMarkets

OtherFirms’Profit

CustomerBase

spillovergap

socialreturn

privatereturn

Firm 1Profits

Firm 1R&D

NewKnowledge

Held byFirm 1

BetterProducts

LowerCosts

ProductMarketCompe-

titionCustomer

Benefit

• Pure Market Spillover Economic Benefit• Plus Pure Knowledge Spillover


““Direct Direct && Indirect Path” Benefits Indirect Path” BenefitsPrivate and Social Returns to R&DPrivate and Social Returns to R&D


OtherFirms’Profit

CustomerBase

spillovergap

socialreturn

privatereturn

Firm 1R&D

NewKnowledge

Held byFirm 1

BetterProducts

LowerCosts

ProductMarketCompe-

tition

OtherFirms’

Knowledge

BetterProducts;

LowerCosts

OtherProductMarkets

• Patents• Publications• Other

(Rev

erse

Eng

inee

ring)

NewKnowledgeReleasedBy Firm 1

• Pure Market Spillover• Plus Pure Knowledge Spillover

Firm 1Profits

CustomerBenefit

Economic Benefit

OtherFirms’Profit

• Plus Interaction of the Two


Illinois Superconductor Corp, (ISC)Mt. Prospect, ILplus subcontractors and research partners

Startup funded by ATP in 1990 8 employees at project start ATP funding = $1.98 Million Company funding = $1.56 Million Project duration = 3/1/93 – 2/29/96 Successful IPO Built production plant Producing products based on ATP work 75 employees in 1997

Illinois Superconductor Corp, (ISC)Mt. Prospect, ILplus subcontractors and research partners

Startup funded by ATP in 1990 8 employees at project start ATP funding = $1.98 Million Company funding = $1.56 Million Project duration = 3/1/93 – 2/29/96 Successful IPO Built production plant Producing products based on ATP work 75 employees in 1997

““Direct Path” Benefits:Direct Path” Benefits:ExampleExample

ImpactFor a given area of cell phone reception, a 40% reduction in number of tower sites required.

Source: Status Report, Vol. I

Hi-Temp SuperconductingThick-film Materials

• Improved signal trans- mission capability

Extended/improvedcellphone service


““Indirect Path” Example: Indirect Path” Example: ISCISC

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2 0 0 0


““Direct Path” Benefits:Direct Path” Benefits:ExampleExample

Aastrom Biosciences, Inc. Startup funded by ATP in 1991 ATP funding = $1.2 Million Company funding = $1.5 million Subsequent private investment for clinical trials and commercialization

Aastrom Biosciences, Inc. Startup funded by ATP in 1991 ATP funding = $1.2 Million Company funding = $1.5 million Subsequent private investment for clinical trials and commercialization

Stem Cell Expansion Technology

• New approach to Bone Marrow Transplant for Cancer Treatment

Other uses; e.g., immunotheraphy tissue repair

Impacts (estimated vs. best alternatives) Peripheral Blood Progenitor Cell (ATP)

Conventional Collection CPSDonor Visits 8 21 2Procedures Hours 16 39 1-3Needle Sticks 100-140 22 4-10Treatment Cost (1996 $) $10K-15K $12K-$20K <$12kMedical Staff Advantages Easier to do

Requires less trainingPatient Benefits Less pain

Fewer side effects Better treatment outcomeSource: RTI, 1998.

National Institute of Standards and Technology • Technology Administration • U.S. Department of Commerce1 9 9 7

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2 0 0 0

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B io sc ien ce s

““Indirect Path” Example: Indirect Path” Example: Aastrom BiosciencesAastrom Biosciences


““Indirect Path” Example: Indirect Path” Example: ArmstrongArmstrong

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In d u s trie s

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““Indirect Path” Example: Indirect Path” Example: MFCMFC

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6 0 1 5 3 2 4A d v a n ced

Vis io n

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6 0 0 5 2 6 2L u cen t

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5 9 9 0 9 9 9L G

E lec tro n ic s

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E n e rg y L ab

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5 9 5 3 0 8 5S h arp

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5 9 9 9 2 3 7C an o n

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5 7 8 1 2 5 4L G

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5 8 1 2 2 2 8N E C

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5 7 4 8 2 6 8K a ise rA & E

5 6 7 0 7 9 5S o n y

5 6 9 5 6 8 0C o n so rtio n .....

5 6 5 4 8 11K o p in

5 7 5 7 4 4 5K o p in

5 5 8 5 6 9 5A d ria nK ita i

5 6 6 9 8 0 2A d v a n ced

W irin g

5 5 7 6 8 5 9T h o m so n L C D

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

1 9 9 4

2 0 0 0

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5 9 2 9 5 0 1H y u n d a i

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P rac tic a l

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R es. In s t.

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P h ilip s

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5 7 9 6 4 6 6S am su n g

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ATP’s Multi-ComponentATP’s Multi-Component Assessment Measures Assessment Measures

“Direct” and “Indirect” Effects “Direct” and “Indirect” Effects


Who Does the Studies?Who Does the Studies?

EAO StaffEAO Staff

• Designs

• Conducts

• Manages

Evaluation Studies

• Designs

• Conducts

• Manages

Evaluation StudiesConsulting Universities,

Institutions, and Individualswith Expertise

Consulting Universities,Institutions, and Individuals

with Expertise

National Bureau ofEconomic Research (NBER)

National Bureau ofEconomic Research (NBER)

University Centers withRelevant Specialties

University Centers withRelevant Specialties

Withhelp from others

Withhelp from others


Early Program ResultsEarly Program Results• Leap-frog technologies developed

37% of applications represent “new-to-the-world” solutions 63% of applications represent dramatic cost reductions or

performance improvements• Rich technology platforms developed with multiple uses

Many prize-winning technologies 4.5 applications per project

• Emphasis on collaborations among companies, universities, and non-profit organizations• 157 Joint Ventures• Most “single applicants” have alliances and subcontractors• Many benefits and few costs of collaborating reported

• High Risk R&D Accelerated 86% ahead in R&D cycle

• Estimated public benefits from several projects alone exceed total ATP costs


Performance Data for First 50 Performance Data for First 50 ATP Projects CompletedATP Projects Completed

Strong

Medium

Low or Uncertain

Outlook (approximate)

Completed AllResearch Goals

72%

PublishedTechnical Results

52%

Awarded Patents*

54%

Technology RecognizedBy Outside Award

16%

Technology Incorporated inProduct(s) on the Market

60%

Products on the MarketOr Expected Shortly

80%

Knowledge or ProductOutputs

90%

Both Knowledge andProduct Outputs

52%


Terminated ProjectsTerminated Projects (40 of 468, as of April 2000) (40 of 468, as of April 2000)

44%

10%

13%

20%

5%

8%

JV members could not reach agreement; project not started

Financial distress

Company or Joint Venture asked project

to be stopped due to change in strategic

goals, structures, markets, or other

elements

Lack of technical progress

Early success

Project no longer met ATP criteria


Contact InformationContact Information

To Get on the ATP Mailing List:

www.atp.nist.govwww.atp.nist.gov

Call toll-free: 800-ATP-FUND (800-287-3863)

Fax your name and address to: (301) 926-9524

Send an e-mail message to: [email protected]


Key Features of the ATPKey Features of the ATP

• Emphasis on innovation for broad national economic benefit

• Industry leadership in planning and implementing projects

• Project selection based on technical and economic merit

• Project selection rigorously competitive, based on peer review

• Focus on the civilian sector

• Focus on enabling technologies with high spillover potential

• Focus on overcoming difficult research challenges


Key Features of the ATP Key Features of the ATP (cont’d)(cont’d)

• Encouragement of company-university-laboratory collaboration• Positioned after basic science and before product

development• Requirement that projects have well-defined goals/sunset

provisions• Demonstrated need for ATP funding• Coordination with other public and private funding sources• U.S. companies planning and organizing for technology

applications• Program evaluation from the outset


ATP’s “Business Reporting ATP’s “Business Reporting System” Tracks ProgressSystem” Tracks Progress

(During Project and Post-Project)(During Project and Post-Project)

• Project goals/Expected commercial advantage• Strategies for commercialization• Collaborative activities and experiences• Effect of ATP on project timing/scale/scope/ risk

level/ability to do long-term R&D/private investment dollars ($)

• Commercialization progress• Knowledge dissemination• ID of customers and competitors• International standing

national institute of standards and technology technology administration u.s. department of commerce...

Documents

pure knowledge spillover

pure market spillover

pure knowledge spillover

profits firm

rd new knowledge

social returns

national laboratories

rd source