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NISTIR 7280 - Identifying Technology Flows
and Spillovers Through
NAICS Coding of
ATP Project Participants
APPENDIX A: Factors Affecting
Market and Knowledge
Spillovers
The following factors are summarized from Jaffe (1996).
Factors making market spillovers larger or more likely:
- Market in which innovation will be used or sold is highly competitive
- Lead time and learning curves are not likely to give innovator strong market
advantages
- Technology is infrastructural, i.e., other researchers are a significant component
of the market for the new technology
- Output is product innovation that would be difficult to patent or copyright
- Co-specialized assets are important in the relevant markets, and project proponents do not have important assets
- Regulatory approvals are needed
- Sales/service is important
- Reputation/market presence is important
- Licensing of the technology to others is likely to be important
- Multi-use innovation, where many uses are likely to be commercialized by others
- Process technology, proponents are small (or not) producers in relevant markets
- Capital needs for ultimate commercialization are beyond proponents' reach
Factors making market spillovers smaller or less likely:
- Proponents have market power in the relevant markets
- Lead time and learning curves can be expected to convey significant advantages on the innovator if the project is successful
- Output is product innovation that can be protected by patent or copyright
- Proponents have important co-specialized assets
- Technical success will lead to a large negative profit impact on another firm or firms whose technology will thereby be made obsolete
Factors making knowledge spillovers larger or more likely:
- Multi-use technology
- Proof of concept that would point the way for other researchers to try related ideas in other applications
- Key component that will facilitate redesign and improvement of multiple distinct systems using that component
- "Path-breaking" technology: success will open an entirely new line of technological development with apparently significant economic benefits
- Subsequent technical developments require expertise in applications technologies in which proponents do not have relevant expertise (applies to both multi-
use and path-breaking technologies
- Useful knowledge would be gained even if project fails to achieve its technical objectives
Factors making knowledge spillovers less likely:
- Output is process innovation that can be kept secret, and project proponents can use it in their own production process
- Project proponents have special technical expertise that would position them to be the most likely developers of many of the follow-on technologies
Factors making interacting knowledge and market spillovers likely:
- Output is "infratechnology:" technology has attributes of a standard and thereby
generates network spillovers
- Output is a product that would be sold to other researchers
- Output is product innovation that would be difficult to patent or copyright
Return to Table of Contents or go to next section.
Date created: May 25, 2006
Last updated:
June 7, 2006
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