1. Overview of the U.S. Advanced Technology Program

Created in 1988 and made operational in 1990, (1) ATP invests directly in the growth of the nation's economy by cost sharing with industry in the development of high-risk enabling technologies. Once developed, these technologies are expected to form the basis for new and improved products, manufacturing processes, and services. The goal of ATP's cost-shared investment is to help U.S. companies accelerate the creation and commercialization of highly innovative technologies with strong potential for generating broad-based economic benefits for the nation. These benefits are expected to extend significantly beyond the direct benefits to companies receiving awards.

ATP multiyear awards are made to individual companies and to joint research and development (R&D) ventures through a highly competitive, merit-based, peer-reviewed selection process.

Project Selection Criteria

ATP relies on U.S. companies to conceive and propose technology development projects, carry out the research of funded projects, and share in the costs. Companies seeking financial assistance from ATP for research projects likely to score well against ATP's published selection criteria are urged to write and submit proposals. The two main selection criteria (2) are scientific and technological merit, and potential for broad-based economic benefits to the United States.

ATP emphasizes integrated planning across all aspects of a project by encouraging participants to form a team that includes project staff who will carry out the development of the technology and others who will be responsible for the eventual commercialization of the proposed technology. Applicants are asked to provide a detailed research plan and a plan for commercialization of developed technologies. Although funding is only provided for research activities, ATP requires a preliminary plan for downstream activities such as marketing, production, and distribution for at least one potential application of each technology proposed to be developed during the project. ATP encourages applicants to work with customers or end-users as early as possible. If companies successfully complete their research projects, they-or their strategic partners or licensees-are expected to undertake subsequent commercialization activities with private sector or other sources of funds and to promote the diffusion of the technologies for broader benefits to the U.S. economy.

Eligibility Rules

Proposals are accepted only in response to competitions announced in the Federal Register. Competitions are open to proposals in all areas of technology.

U.S.-owned companies are eligible to receive ATP funding. Companies incorporated (or organized) in the United States with a parent company incorporated in another country (i.e., companies that are majority-owned or majority-controlled by individuals who are not citizens of the United States) are also eligible to receive ATP funding, provided additional requirements are met. Foreign-owned companies or organizations that are located abroad are not eligible to receive ATP funding as direct participants, but may receive ATP funding as subcontractors on a case-by-case basis. U.S.-owned companies incorporated outside the United States are generally not eligible to receive ATP funding as direct participants, except on a case-by-case basis.

Small and medium companies applying as single-company applicants are eligible to receive up to $2 million in ATP support for direct project costs over three years. They are responsible for covering all of their indirect/overhead costs. Large companies applying as single-company applicants (currently, businesses with revenues greater than $3.043 billion) must cover a minimum of 60% of the yearly total project costs (direct plus indirect costs) and can receive ATP support over three years for direct project costs up to $2 million.

With a congressional appropriation of $10 million, ATP held its first competition in 1990 and selected 11 projects for awards. Since 1990, ATP has received 6,054 applications submitted to 43 competitions and selected 709 projects for awards; 71% were single company awards (502 out of 709) and 29% were joint venture awards (207 out of 709). ATP has awarded $2.114 billion in funding, and industry has provided $1.987 billion in cost-shared funds. There are more than 1,433 participants involved in the 709 projects, including firms of all sizes, universities, and other research organizations-not counting an equal number of subcontractors and informal partners and collaborators.

Nearly two out of three awards have gone to individual small businesses or to joint ventures led by a small business, located across 42 states. Nearly half of all small businesses participating in ATP projects had fewer than 20 employees. Over 160 universities and academic institutions are involved in over half of the ATP projects to date, either as subcontractors to private companies or as members of industry-led joint ventures. Almost 85% of ATP award recipients are engaged in collaborations with other companies, universities, federal laboratories, and nonprofit organizations.

ATP-funded organizations carry out research in many technology areas. Of the 709 projects funded to date:

• 25% involve electronics/computer hardware/communications;
• 23% involve information technology;
• 21% involve advanced materials and chemicals;
• 20% involve biotechnology; and
• 11% involve manufacturing (discrete).

Note that these categories are not mutually exclusive. For example, an ATP project might involve manufacturing of advanced materials or chemicals. Also note that these categories only capture broad areas of research; the breadth of technologies covered in advanced materials and chemicals projects, for example, include separations/membranes, materials processing, nanotechnology, material interfaces, combinatorial methods, metabolic engineering/catalysts, and chemical processing sensors.

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1.  Congress created the Advanced Technology Program in the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418), codified in Title 15 of the United States Code, Section 278n (15 U.S.C. 278n), and amended in the American Technology Preeminence Act of 1991 (P.L. 102-245). The U.S. Department of Commerce's National Institute of Standards and Technology was charged with administering the program. The ATP Statute, the program's authorizing legislation, is available in Appendix A of this report.

2.  See the latest ATP Proposal Preparation Kit (February 2004) for more details on each of the selection criteria (www.atp.nist.gov).

Return to Table of Contents or go to Chapter 2.

Date created:  January 1998
Last updated: August 3, 2005

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