SURVEY OF
ATP APPLICANTS 2000
3. ATP Funds High Risk and Long Term R&D
Projects
Innovative
early-stage Research and Development (R&D) usually carries high technical
risk, with a long time horizon to potential commercial benefit. Companies
often cannot fund early-stage R&D on their own or through traditional
sources of external funding. Through its cost-shared funding, the Advanced
Technology Program (ATP) helps companies pursue high-risk longterm R&D.
Evidence from
the Survey of ATP Applicants 2000 shows that ATP is successful
in directing funding awards to R&D projects that have higher technical
risk and longer time horizons than "typical" R&D projects.
A measure
of technical risk is the probability that a project will
not fully achieve its technical goals. Respondents were
asked to estimate this probability, both for their proposed
ATP project and a "typical" R&D project
in their company. |
ATP awarded
projects have greater technical risk than nonawarded projects or "typical" R&D
projects 
- Among ATP awardees,
the average estimate for the probability of not fully achieving technical
goals is 0.45. Among nonawardees, the average estimated probability
is only 0.31. (See Figure 1.)
- ATP awardees report
a greater contrast between their proposed and typical R&D projects,
compared to nonawardees.
FIGURE
1. Technical Risk - Proposed ATP Projects and Typical Company R&D
Projects
Notes:
Technical risk is the probability, between 0 to 1, that a project
will not fully achieve technical goals.
Data shown are mean levels of technical risk as estimated by survey respondents.
[Descriptive link for Figure 1]
A measure
of time horizon is the expected number of years from
start of project to first impact on company revenues.
Respondents were asked to estimate the time to first
revenue impact, for both their proposed ATP project and
a "typical" R&D project at their company. |
 ATP
awarded projects have longer time horizons than nonawarded projects
or "typical" R&D projects
- Comparing the distribution
of time horizons for proposed ATP projects between awardees and nonawardees
shows that awardees expect a longer time to first revenue impact.
(See Figure 2.)
- About half (54%) of
ATP awardees expect a revenue time horizon of 4 years or more on
their proposed ATP project, compared to one-third (33%) of nonawardees.
- ATP awardees and nonawardees
have similar time horizons for "typical" R&D projects
at their companies. (See Figure 3.)
FIGURE
2. Time Horizon for Proposed ATP Project
(Time to
first revenue impact)
[Descriptive link for Figure 2]
FIGURE 3. Time Horizon for Typical Company R&D
Project
(Time
to first revenue impact)
[Descriptive link for Figure
2]
Return to Table
of Contents or go to Factsheet 4.
Date created:
June 24, 2003
Last updated:
August 2, 2005
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