NISTIR-6098
Development, Commercialization, and Diffusion of Enabling Technologies
Progress Report for Projects
Funded 1993-1995
EXECUTIVE SUMMARY
This report provides a
statistical overview of progress reported by hundreds of companies and
other organizations funded by the ATP during the period from 1993 through
1995. The report annotates the statistics with comments from project
participants. The information is based entirely on Business Reporting
System (BRS) reports to the ATP filed by 480 individual organizations
through December 31, 1996. While not all the companies and projects are
progressing at the same rate, or have achieved the same level of progress,
the statistical analysis presented here provides an overview of the degree
of progress towards research and commercialization goals of a large group
of ATP award recipients. It provides a snapshot at a point in time; plans
for commercialization and technology diffusion are being further detailed
and implemented by the companies continuously.
Progress reports from individual
firms, and aggregate summary statistics of progress for the group of
projects provide evidence of (a) opportunities for economic spillovers
and broad national economic benefit; (b) acceleration of the R&D
process and reduction in time-to-market in highly competitive markets;
(c) stimulation of collaboration and collaboration effects; (d) increased
private sector investment in high risk technology development; and (e)
progress towards ultimate commercialization of ATP-funded technologies
through new products, processes, and services.
Opportunities for
economic spillovers and national economic benefit:
Participants in 210 projects
have identified more than 1,000 different applications (or uses) of the
technologies under development, providing evidence that the technologies
funded by ATP are highly enabling. New applications are being identified
continuously.
Companies have provided
commercialization plans for nearly 800 applications spanning the spectrum
of industries, providing evidence that they are seriously pursuing commercialization
of the technologies developed in their ATP projects.
Most of the technologies
under development offer substantial performance and productivity improvements
over existing capabilities.
Most of the technologies
under development feed into the early stages of the production chain,
creating a greater opportunity for intermediate producers and downstream
customers in multiple application areas to benefit from market spillovers.
Patent and copyright activities
planned and underway offer potential for dissemination of knowledge through
patent disclosure and for additional commercialization opportunities
by others through licensing arrangements. Licensing to others is a primary
or secondary strategy for commercializing 43 percent of the planned applications.
More than 100 new patents have been filed, and 11 have been issued.
Conference activity and
publication of papers have been particularly vigorous in some projects.
Overall, an average of approximately two conference papers were presented
and 0.6 professional journal articles published per project during the
period covered. These disseminated results of ATP-funded projects become
available to scientists and engineers employed in other firms or universities.
Acceleration
of the R&D process and reduction of time-to-market in
highly competitive markets:
Eighty-six percent of
organizations indicate they are already ahead in their R&D cycle
as a result of ATP funding; of these, 39 percent believe they would not
have started the project at all without ATP funding; the remainder typically
would have proceeded at a significantly slower rate without ATP funding.
Acceleration by two years
or more is anticipated for 62 percent of planned commercial applications.
Speed-to-market is considered "critical" or "important" for
98 percent of the commercial applications. The window of opportunity
for successful entry into the marketplace is perceived by the companies
as two years or less after the ATP funding period for 75 percent of currently
identified applications.
Stimulation of Collaborations
and Collaboration Effects:
For the projects that
have completed at least one year, 78 percent of the organizations reporting
indicated that collaboration was helping to achieve the ATP project goals.
For these:
- Eighty-five percent
indicated that the ATP was responsible to a moderate or great extent
for their collaborations.
- With respect
to the benefits of collaboration, the number one effect, reported
by 99 percent of the organizations, was that it helped stimulate
creative thinking.
- Other
important effects reported included helping them save
time, helping them obtain R&D expertise and identify
customer needs, and encouraging them to undertake future
collaborations.
- As
might be expected, collaboration can
cause higher project management costs,
but in fact only about half reported
that they incurred significant or moderate
project coordination costs as a result
of collaborating.
- Other
costs
of collaborating
were
reported
by a
minority
of companies:
significant
delays
in beginning
the R&D
due to
collaboration
were
reported
by 20
percent,
and six
percent
anticipated
time
delays
in market
entry
as a
result
of collaboration
difficulties.
- Overall,
benefits
of
collaborating
are
reported
by
a
far
larger
percentage
of
the
group
than
costs,
suggesting
that
collaboration
is
having
a
largely
positive
influence
in
technology
development.
(Seventy-eight
percent
indicate
collaboration
helped
the
project.
Of
this
group,
nearly
all
indicate
significant
or
moderate
benefits
from
one
or
more
collaboration
effects,
compared
with
50
percent
who
indicated
moderate
or
significant
increase
in
project
coordination
and
management
costs.)
In addition to R&D
collaboration, ATP-funded companies are planning and pursuing alliances
to commercialize their technologies, with small companies particularly
focused on this strategy. Seventy-six strategic alliances have been formed,
and 15 license agreements have been signed for the purpose of commercializing
technologies developed in ATP projects.
Increased investment
in high risk technology development:
Seventy percent of organizations
report that their ATP-funded project encompasses a broader scope and/or
higher level of technical risk as a result of the ATP. Fifty-seven percent
report that ATP funding has increased their interest in performing long-term
research. (These effects are in addition to the accelerated pace mentioned
earlier.)
Industry has increased
its investment in the ATP-funded technology development areas, beyond
what would have occurred in the absence of the ATP awards, by an estimated
$200 million; i.e., across the group of projects, companies have expanded
the scale of their R&D efforts in the ATP-funded areas by the amount
of ATP funding received plus an additional $200 million. This represents
an estimated 59 percent increase in industry funding over what industry
would have invested without the ATP awards.
An additional $150 million
of new funding from other sources has been attracted to support the ATP-funded
technology development or the commercialization of products embodying
ATP-funded technology.
Expectations that large
improvements in performance or large reductions in production costs will
result from the ATP-funded projects are evidence that industry is pursuing "discontinuous" or "breakthrough" innovations,
and suggestive of relatively risky R&D. For 29 percent of applications,
performance improvements of 100-500 percent or more are anticipated.
Cost reductions of 25 percent or more are anticipated for 28 percent
of applications.
Another indication of
the "breakthrough" nature of an innovation is that it enables "new-to-the-world" products
or services. Thirty-five percent of applications are considered by the
project participants to be "new-to-the-world" solutions to a market need
or problem with the potential to create totally new markets. Many companies
plan to utilize their ATP-funded technology in a mix of "new-to-the-world" products
and cost reduction and performance improvements in other products, processes,
or services.
Progress
towards commercialization of ATP-funded technologies:
Progress is being made
towards developing new capabilities and achieving cost savings through
new and improved processes.
- Forty percent of
the companies, representing 52 percent of the projects, report they
are now able to make a new or improved product, even though the product
may not yet be ready for the marketplace.
- Twenty-eight percent
of companies, representing 39 percent of the projects, report
they have adopted process improvements resulting from their ATP
technology.
Companies are engaging
in commercialization planning activities, at their own expense, needed
to enter the marketplace in a timely manner, once the technology is ready.
(ATP funds R&D only.)
- Companies in 77 percent
of the projects have completed product/process definition for at
least one application; companies in 56 percent of the projects have
completed concept testing for at least one application of their technology;
and concept testing has been conducted for one-third of all applications
being planned by the ATP-funded companies.
- Companies in
71 percent of the projects have conducted other market analysis
activities; for example, sales forecasting or related product
development or testing.
- Companies
in 25 percent of the projects have moved to new quarters
to expand production capacity; companies in 19 percent
of projects have purchased or leased new plant and equipment
to expand production capacity.
- Forty-one
percent of projects have completed a
production prototype for at least one
application, and 35 percent of projects
have completed pilot production or a
commercial demonstration.
- Actual
production
of products
is already
underway
for 12
percent
of the
projects,
and four
percent
of the
planned
commercial
applications.
- About
10
percent
of
companies,
representing
15
percent
of
projects,
indicate
they
have
earned
early
revenues,
amounting
to
more
than
$20
million,
for
example,
from
sales
of
samples
and
prototypes.
The
first
licensing
revenues
have
been
realized.
- The
large
revenue
flows
lie
in
the
future.
Revenue
is
expected
for
only
about
one-fourth
of
applications
("spin-offs")
before
the
end
of
ATP
funding
and
not
until
four
or
more
years
after
the
ATP
funding
ends
for
nearly
10
percent
of
applications
and
10
percent
of
projects.
Revenue
is
expected
for
most
within
four
years
after
the
ATP
funding
ends.
Taken as a whole, the results
of this report confirm the results of earlier studies and increase the
robustness of statistical evidence that the ATP is making solid progress
towards achieving its mission of economic growth through technological
advancement. With the BRS in place, the ATP is positioned to capture
developments and report on the evolution of ATP-funded technologies towards
commercialization and the generation of national economic benefits.
 Return
to Table of Contents
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to Chapter 1: THE ATP'S BUSINESS REPORTING
SYSTEM:
A TOOL FOR ECONOMIC EVALUATION
Date created: November
1998
Last updated:
August 3, 2005
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