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Survey
of Advanced Technology Program
1990-1992 Awardees:
Company Opinion About
the ATP and its Early Effects
January 30, 1996
Prepared
by: Silber & Associates
Dr. Bohne Silber
13067 Twelve Hills Road
Clarksville, MD 21029-1144
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Chapter
Three
Business
Goals and Plans to Commercialize
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Seventy-five
companies (62%) out of 121 participants anticipate commercializing
an outcome of their ATP work (see Figure 8 below). Another 8% are
unsure of their organization's plans. Thirty percent indicated either
that they don't intend to pursue commercialization because they
are focusing only on R & D issues or some narrow piece of the ATP
project, or that it is too early to anticipate whether or not they
will commericialize because their research goals haven't yet been
realized.
Figure 8.
Will your organization be directly involved in commercializing
any product,
process or service resulting from the ATP project? |
| YES |
62% |
| NO |
30% |
| NOT SURE |
8% |
The companies
with intentions to commercialize were interviewed using the "long
form," described on page 8 in Chapter 1, which included business
questions. This chapter is a discussion of the findings from those
interviews. ("Long" interviews were completed with 74 participants,
not 75, to avoid over-representing one particular joint venture
with multiple commercializers.)
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PROGRESS
TOWARD
COMMERCIALIZATION
Eight
out of ten of the 74 participants--100% of 1990 commercializing
participants, 79% from 1991, and 67% from 1992--reported that their
companies have taken some steps toward marketing products, processes,
or services that are ultimately expected from the ATP project. Table
7, which begins on page 63, reports specific steps they've embarked
on toward commercialization. Most companies have developed a lab
prototype and negotiated with business partners but have not yet
developed a production prototype, determined production rates, or
completed product or process development.
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A third
of the companies expect
to earn revenue before the end of
1995 from ATP-related
technology. Nineteen reported
current revenue.
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More than half
of 1990 participants, 30% of 1991 participants, and 25% from 1992
expect to earn revenue before the end of 1995 from technology related
to their ATP project, and some have already seen it happen. This
finding is presented in Figure 9 on the following page.
Most of the
nineteen companies who are currently generating revenue as a direct
or indirect result of the ATP award say they've experienced a return
on investment sooner than they would have without the support of
ATP--by at least three years, according to three of the 19; two
to three years, according to eight; and one year, according to six.
Figure 9.
Percent of Participants Expecting to
Earn Revenue by the End of 1995 From ATP-Related Efforts |
| 1990 |
1991 |
1992 |
| 53.8% |
30.3% |
25.0% |
Eventually
the commercializing companies plan to sell products and services
based on their technologies developed under the ATP award to a variety
of markets and industries, ranging from agricultural establishments
to chemical companies and educational institutions. As shown in
the figure on the following page, the direct customers they named
most often are the medical, electronics, information systems/communications,
computer, automotive, and aerospace industries.
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Commercializing
companies plan
to sell products and services
based on their ATP-funded
technologies to a variety of
markets and industries.
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Figure 10.
Anticipated Markets for ATP Technologies |
| Medical |
Electronics |
Info.
Sys.
communications |
Computer |
Automotive |
Aerospace |
| 26% |
23% |
20% |
16% |
14% |
10% |
|
|
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Table 7. Progress Toward Commercialization |
|
Total Group |
1992
Participants |
1991
Participants |
1990
Participants |
|
Held Licensing Negotiations? |
| Respondents |
[n=42] |
[n=9] |
[n=20] |
[n=13] |
| Yes |
50.0% |
77.8% |
35.0% |
53.8% |
| In
progress |
2.4% |
0.0% |
5.0% |
0.0% |
| No |
47.6% |
22.2% |
60.0% |
46.2% |
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Held Negotiations with Potential Alliance Partners? |
| Respondents |
[n=52] |
[n=14] |
[n=26] |
[n=12] |
| Yes |
71.2% |
78.6% |
73.1% |
58.3% |
| In
progress |
1.9% |
0.0% |
3.8% |
0.0% |
| No |
26.9% |
21.4% |
23.1% |
41.7% |
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Completed Product or Process Definition? |
| Respondents |
[n=57] |
[n=16] |
[n=28] |
[n=13] |
| Yes |
57.9% |
50.0% |
57.1% |
69.2% |
| In
progress |
24.6% |
43.8% |
14.3% |
23.1% |
| No |
17.5% |
6.3% |
28.6% |
7.7% |
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Completed Concept Testing with Customers? |
| Respondents |
[n=55] |
[n=15] |
[n=28] |
[n=12] |
| Yes |
45.5% |
33.3% |
46.4% |
58.3% |
| In
progress |
29.1% |
40.0% |
21.4% |
33.3% |
| No |
25.5% |
26.7% |
32.1% |
8.3% |
|
Completed Product or Process Development? |
| Respondents |
[n=56] |
[n=16] |
[n=27] |
[n=13] |
| Yes |
30.4% |
18.8% |
22.2% |
61.5% |
| In
progress |
37.5% |
62.5% |
29.6% |
23.1% |
| No |
32.1% |
18.8% |
48.1% |
15.4% |
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Developed a Lab Prototype? |
| Respondents |
[n=56] |
[n=16] |
[n=28] |
[n=12] |
| Yes |
78.6% |
81.3% |
78.6% |
75.0% |
| In
progress |
12.5% |
12.5% |
10.7% |
16.7% |
| No |
8.9% |
6.3% |
10.7% |
8.3% |
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Developed a Production Prototype? |
| Respondents |
[n=51] |
[n=14] |
[n=25] |
[n=12] |
| Yes |
37.3% |
28.6% |
32.0% |
58.3% |
| In
progress |
13.7% |
21.4% |
16.0% |
0.0% |
| No |
37.3% |
50.0% |
52.0% |
41.7% |
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Set Up a Pilot Production or Commercial Demo? |
| Respondents |
[n=52] |
[n=14] |
[n=26] |
[n=12] |
| Yes |
46.2% |
35.7% |
46.2% |
58.3% |
| In
progress |
11.5% |
21.4% |
7.7% |
8.3% |
| No |
42.3% |
42.9% |
46.2% |
33.3% |
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Determined Production Rates? |
| Respondents |
[n=45] |
[n=14] |
[n=20] |
[n=11] |
| Yes |
33.3% |
35.7% |
25.0% |
45.5% |
| In
progress |
8.9% |
14.3% |
10.0% |
0.0% |
| No |
57.8% |
50.0% |
65.0% |
54.5% |
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Conducted a Sales and Revenue Forecast? |
| Respondents |
[n=48] |
[n=14] |
[n=23] |
[n=11] |
| Yes |
52.1% |
42.9% |
56.5% |
54.5% |
| In
progress |
6.3% |
7.1% |
4.4% |
9.1% |
| No |
41.7% |
50.0% |
39.1% |
36.4% |
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STRATEGIES
FOR
COMMERCIALIZATION
With
respect to marketable results of their ATP project, 99% of commercializers
intend to market domestically, and 96% also plan to market abroad.
All commercializers said their product will be created in the U.S.,
and 22% anticipate also utilizing off-shore facilities.
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The
strategy names most
frequently is to produce the
product or service in-house for
sale.
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During the
interview, participants were presented with a list of potential
strategies for commercializing their technology and, for each one,
asked to describe how, if at all, it figures in their plans--as
a primary course of action? a secondary one? one under consideration?
The strategy named most frequently, as depicted in Table 8, is to
produce the product or service in-house for sale, named by 87.3%,
followed by adopting a process for in-house use (68.3%).
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Table 8.
Strategies for Commercialization |
|
Total Group |
1992
Participants |
1991
Participants |
1990
Participants |
|||||
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Licensing to Others |
| Respondents |
[n=63] |
[n=19] |
[n=30] |
[n=14] |
| Principal
Strategy |
25.4% |
5.3% |
36.7% |
28.6% |
| Secondary
Strategy |
27.0% |
26.3% |
30.0% |
21.4% |
| Strategy
Under Consideration |
19.0% |
26.3% |
13.3% |
21.4% |
| Not
a likely Strategy |
28.6% |
42.1% |
20.0% |
28.6% |
|||||
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Producing Product or Service In-House for Sale |
| Respondents |
[n=63] |
[n=19] |
[n=32] |
[n=12] |
| Principal
Strategy |
87.3% |
94.7% |
81.3% |
91.7% |
| Secondary
Strategy |
6.3% |
5.3% |
9.4% |
0.0% |
| Strategy
Under Consideration |
3.2% |
0.0% |
3.1% |
8.3% |
| Not
a likely Strategy |
3.2% |
0.0% |
6.3% |
0.0% |
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Adopting Process for In-House Use |
| Respondents |
[n=41] |
[n=12] |
[n=19] |
[n=10] |
| Principal
Strategy |
68.3% |
58.3% |
68.4% |
80.0% |
| Secondary
Strategy |
12.2% |
16.7% |
15.8% |
0.0% |
| Strategy
Under Consideration |
4.9% |
8.3% |
5.3% |
0.0% |
| Not
a likely Strategy |
14.6% |
16.7% |
10.5% |
20.0% |
|||||
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Forming Alliances with Suppliers |
| Respondents |
[n=51] |
[n=16] |
[n=21] |
[n=13] |
| Principal
Strategy |
44.0% |
31.3% |
57.1% |
38.5% |
| Secondary
Strategy |
30.0% |
25.0% |
28.6% |
38.5% |
| Strategy
Under Consideration |
16.0% |
31.3% |
9.5% |
7.7% |
| Not
a likely Strategy |
10.0% |
12.5% |
4.8% |
15.4% |
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Forming Joint Production Alliances |
| Respondents |
[n=62] |
[n=17] |
[n=32] |
[n=13] |
| Principal
Strategy |
24.2% |
29.4% |
25.0% |
15.4% |
| Secondary
Strategy |
24.2% |
17.6% |
34.4% |
7.7% |
| Strategy
Under Consideration |
19.4% |
11.8% |
15.6% |
38.5% |
| Not
a likely Strategy |
32.3% |
41.2% |
25.0% |
38.5% |
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Forming Alliances with Distributors |
| Respondents |
[n=56] |
[n=18] |
[n=24] |
[n=13] |
| Principal
Strategy |
34.0% |
33.3% |
33.3% |
30.8% |
| Secondary
Strategy |
13.2% |
5.6% |
20.8% |
7.7% |
| Strategy
Under Consideration |
11.3% |
11.1% |
16.7% |
46.2% |
| Not
a likely Strategy |
41.5% |
50.0% |
29.2% |
15.4% |
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Forming Alliances with Customers |
| Respondents |
[n=58] |
[n=19] |
[n=26] |
[n=13] |
| Principal
Strategy |
43.1% |
36.8% |
42.3% |
53.8% |
| Secondary
Strategy |
22.4% |
15.8% |
26.9% |
23.1% |
| Strategy
Under Consideration |
17.2% |
15.8% |
19.2% |
15.4% |
| Not
a likely Strategy |
17.2% |
31.6% |
11.5% |
7.7% |
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Forming Spin-Off Companies |
| Respondents |
[n=59] |
[n=18] |
[n=28] |
[n=13] |
| Principal
Strategy |
8.5% |
5.6% |
10.7% |
7.7% |
| Secondary
Strategy |
13.6% |
5.6% |
21.4% |
7.7% |
| Strategy
Under Consideration |
18.6% |
33.3% |
14.3% |
7.7% |
| Not
a likely Strategy |
59.3% |
55.6% |
53.6% |
76.9% |
Date created: January
30, 1996
Last updated:
April 12, 2005
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