public/private partnerships: promoting the development and … · 2016. 3. 29. · • 185 joint...

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

Public/Private Partnerships:Promoting the Development and Diffusion ofAdvanced Technologies through the U.S. ATP

Marc G. Stanley, Acting DirectorAdvanced Technology Program

National Institute of Standards and TechnologyTechnology Administration

U.S. Department of Commerce(301) 975-4644

[email protected]

December 2001


NIST Mission

Strengthen the U.S.

economy and improve

the quality of life by

working with industry to

develop and apply

technology,

measurements, and

standards.

Gaithersburg, MD

Rockville, MD

Boulder, CO


ATP is part of NIST

� 3,300 employees

� $720 million annual budget

� 1,200 industrial partners

� 2,000 field agents

� 1,550 guest researchers

� $1.5 billion co-funding ofindustry R&D

� National measurementstandards

Helping America Measure Up

ATP Mission

To accelerate thedevelopment of

innovativetechnologies for broad

national benefitthrough partnerships

with the private sector.

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Is there a Need for ATP?

“(E)arly stage help by the government indeveloping platform technologies andfinancing scientific discoveries isdirected exactly at the areas whereinstitutional venture capitalists cannotand will not go.”

David Morgenthaler, FounderNational Venture Capital Association


Is there a Need for GovernmentInvolvement?

“We (government) should invest ingroundbreaking sort of majortechnological thrusts that will changethe way we do business between 5-10years from now, but not 20-30 yearsfrom now.”

Howard Frank, DeanRobert H. Smith School of BusinessUniversity of Maryland


Technology Policy FrameworkATPCRADAsSBIR

Capital FormationR&D Tax CreditsRisk Reduction

Venture CapitalAngels

The ValleyOf

Death

Ava

ilabi

lity

of C

apita

l

Basic Research Development &Scale-up

CommercialOperation


Key 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

• Demonstrated need for ATP funding

• Requirement that projects have well-defined goals/sunsetprovisions

• Project selection rigorously competitive, based on peer review

• Program evaluation from the outset


Key Features of the ATP(cont’d)

• Focus on the civilian sector

• Focus on enabling technologies with high spillover potential

• Focus on overcoming difficult research challenges

• Encouragement of company-university-laboratorycollaboration

• Positioned after basic science and before productdevelopment

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

applications


Exciting New Technologies …

Innovations for broad national economic benefit


Technologies throughout theU.S. …

Utah

IowaMaryland

Delaware

Cerametec, Inc.

Engineering Animation, Inc.

Elsicon, Inc.

Immersion Medical

New York

Plug Power

Texas

BP Amoco Corporation


A Decade of Innovation

• Since 1990, 4,696 proposals submitted to 42 competitions,requesting $10.1 B from ATP

• 581 projects awarded with 1,250 participants and an equalnumber of subcontractors

• 185 joint ventures and 396 single companies

• $3.6 billion of high-risk research funded– ATP share = $1.8 billion– Industry share = $1.8 billion

• Small businesses are thriving– 61% of projects led by small businesses

• Over 150 universities participate• Over 25 national laboratories participate


Distribution of Company SizeLead Companies

581 ATP Awards*Large19%

Medium14%

Small61%

Other6%

*42 Competitions (1990 - September 2001 )


Today’s Investments …Electronics and Photonics($419 M)� Microelectronics� Optoelectronics� Optics Technologies� Power Technologies� Wireless Electronics� Organic Electronics

Biotechnology($343 M)

� DNA Diagnostic Technologies� Tissue Engineering� Drug Discovery and Delivery Methods� Proteomics� Medical Devices & Imaging� Microfluidics� Aquaculture

Chemistry andMaterials ($401 M)

� Chemical Processing� Sensors� Metabolic Engineering/Catalysis� Combinatorial Methods� Separations/Membranes� Materials Processing� Advanced Materials� Nanotechnology� Material Interfaces

Manufacturing ($218 M)

InformationTechnology ($423 M)� Advanced Learning Systems� Software Development� Human Computer Interface� Healthcare Informatics� Dependable Computing Systems� Supply Chain Integration� Bioinformatics� IT Security


ATP Awards to Date by Technology Area

Forty Two Competitions (1990-2001)

Technical DisciplinesAdvanced Materials/ Chemistry 22%

Biotechnology 19%

Electronics/ Photonics 23%

Info Tech 24%

Manufacturing 12%

Technical Disciplines As a Percent of $1,804 M Awarded

Advanced Materials/ Chemistry $401 M

Biotechnology $343 M

Electronics/ Photonics $419 M

Info Tech $423 M

Manufacturing $218 M

Total Investment


Participation in the ATP581 ATP Awards*

SingleCompanies

68%

JointVentures

32%

*42 Competitions (1990 - September 2001 )


� For-profit company� 3-year time limit� $2M award cap� Company pays indirect costs� Large companies cost share at

least 60% of total project cost

� At least 2 for-profit companies� 5-year time limit� No limit on award amount (other

than availability of funds)� Industry share >50% total cost

As a Single Company:

Two Ways to Apply …

� ATP encourages teaming arrangements� Most projects involve alliances

As a Joint Venture:

ResearchLab

With Subcontractors

Consortium

Company

University

ResearchLab

University

+

Formal AlliancesAlone With Subcontractors

University

ResearchLab

Company

Company

Company

Company

Company

Company


Two Major Criteria

• Scientific and Technological Merit (50%)– Technical Rationale

• technological innovation• high technical risk & feasibility

– R&D Plan

• Potential for Broad-Based Economic Benefits (50%)– National Economic Benefits– Need for ATP Funding– Pathway to Economic Benefits


ProjectSelection

Process

CooperativeAgreement

SCREENING

CLASSIFICATION

Gate 2:FULL ECONOMIC/BUSINESSPROPOSAL + BUDGET INFO

Gate 3: SEMIFINALISTSIDENTIFIED•

Oral review

Gate 4: AWARD

PROPOSALS

Gate 1: FULL TECHNICAL PLAN + PRELIMINARY ECON/BUS PLANECONOMIC/BUSINESS MERIT

• Technical Rationale– technological innovation– high technical risk & feasibility

• R&D Plan

TECHNOLOGICAL MERIT• National Economic Benefits• Need for ATP Funding• Pathway to Economic Benefits

DEBRIEFING


ATP’s Multi-Component Assessment Measures

“Direct” and “Indirect” Effects


Independent Assessments:National Research Council

• Findings from 2001 NRCReport The AdvancedTechnology Program:Assessing Outcomes– Meeting legislative goals– Supporting enabling

technologies– An exceptional assessment

effort


Independent Assessments:National Research Council

• Recommendations from 2001 NRC ReportThe Advanced Technology Program:Assessing Outcomes– Enhance current efforts to integrate assessment

results into the decision process– Increase the Nation’s return on the Operation of the

Program• Maximize return• Stability for R&D funding

– Continue focus on small business– Retain JVs and large company involvement– Concentrate significant proportion of awards in

selected thematic areas


Timeline of ATP’s Expected Impacts

� Partnerships(knowledge sharing)

� Increased R&Dspending

� Acceleration of R&D� Technical

accomplishment(milestones, papers,patents)

� Commercializationalliances

� Attraction of capital� New products and

processes� Employment growth

� Substantial productrevenues

� Positive cash flow� Inter- and intra-industry

diffusion� Inter-industry employment

effects� Increased national output� Positive public ROI


Return on InvestmentTypes of Measures

• Private return– return to ATP project participants on their own

investment

• Public return– return to nation on ATP investment

• Social return– return to ATP project participants and nation on total

ATP and private investment


Has ATP Met Its Mission?

• Test 1: Total Benefits– Has the portfolio of ATP-funded projects

overall produced large net benefits?

• Test 2: Benefits Beyond Awardees– Has a substantial share of the net national

benefits accrued to citizens and organizationsbeyond the ATP-award recipients?

• Test 3: Timing of Benefits– Did ATP make a substantial positive

difference in the timing of the benefits?


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

44%

10%

13%

20%

5%

8%

JV members could notreach agreement;project not started

Financial distress

Company or JointVenture asked project

to be stopped due tochange in strategic

goals, structures,markets, or other

elements

Lack of technicalprogress

Early success

Project no longer met ATP criteria


How we may continue to worktogether …

• International seminars to disseminateknowledge

• Participation of U.S. subsidiaries inATP-funded projects


• Call toll-free: 800-ATP-Fund (800-287-3863)

• Fax your name and address to: 301-926-9524

• Send e-mail to: [email protected]

• Visit ATP’s website: www.atp.nist.gov

For Info on ATP and to JoinOur Mailing List . . .

public/private partnerships: promoting the development and … · 2016. 3. 29. · • 185 joint...

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