Commerce Secretary Announces
Changes to
Strengthen Advanced Technology Program
| FOR
IMMEDIATE RELEASE: |
G
97-33 |
| July
10, 1997 |
|
Contact:
Michael Baum
(301) 975-2762
media@nist.gov |
COMMERCE
SECRETARY ANNOUNCES CHANGES TO STRENGTHEN ADVANCED TECHNOLOGY PROGRAM
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U.S. Secretary of
Commerce William M. Daley today announced
a series of policy changes and initiatives to further strengthen the department's
Advanced Technology Program, which already
has produced some early gains for U.S. business. They include: an increase
of the emphasis on support for joint research projects involving a mix
of companies, universities and other organizations; a stronger emphasis
on the program's support for small and mid-sized firms; and an increase
in the cost- share requirements for large company single applicants participating
in the program. The changes also would bring closer ties with state-run
technology programs and strengthen linkages with the venture capital community
to ensure that ATP will not fund projects that could be funded privately.
"We have listened to advice and suggestions from a broad spectrum of interested
parties ranging from Members of Congress to individual firms," Secretary
Daley said. "The changes and initiatives we are announcing today will
improve the ATP and broaden its impact on the economy while ensuring that
the fundamental strengths of the ATP remain unchanged." The changes are
the result of a study
of the ATP initiated by Secretary Daley in March. Conducted by the
department's Technology Administration, the study solicited comments on
the program from the public (through a notice in the Federal Register)
and by a mailing to approximately 3,500 interested parties, including
Members of Congress, state technology or economic development officials,
approximately 3,000 ATP unsuccessful applicants and awardees, approximately
150 trade associations and professional societies, and selected small
businesses in high-technology fields. More than 80 organizations, including
associations, states, universities, companies and Members of Congress,
submitted comments. The principal changes are summarized in the Executive
Summary of the Technology Administration's report to Secretary Daley.
Among the key changes are commitments to:
- modify project
evaluation criteria to put more emphasis on joint ventures and consortia
with a broad range of participants and less on individual applications
from large companies;
- change the cost-share
ratio for large companies applying as single applicants in future competitions
to a minimum of 60 percent, providing a further incentive for large
companies to participate in joint ventures;
- build strong links
with the private-sector venture capital community to both ensure that
ATP will not fund projects that could be funded by the private sector
and to encourage commercialization of ATP-developed technologies; and
- encourage state
participation through state-sponsored business and technology support
programs, both in organizing and facilitating joint research projects
and in supporting post-ATP-project development and commercialization
of new technologies.
In most cases, the changes
can be implemented by the Technology Administration's National Institute
of Standards and Technology, which manages the ATP. A few will require Congressional
action to change the law that governs the ATP. The ATP, established by Congress
in 1988 and operated from fiscal year 1990 to fiscal year 1993 as an experimental
effort, is designed to help industry pursue risky, enabling technologies
that have the potential for a broad-based pay-off for the nation's economy.
ATP projects focus on enabling technologies that will create opportunities
for new, world-class products, services and industrial processes, benefiting
not just the ATP participants but other companies and industries, and ultimately
consumers and taxpayers. The ATP's cost-shared funding--with more than
$1 billion in private-sector investment since 1991--enables industry to
pursue promising technologies that otherwise would be ignored or developed
too slowly to compete in rapidly changing world markets. Measuring the impact
of ATP projects is a lengthy process. ATP projects (cost-sharing the pre-product
development of a technology) typically run from two to five years, the commercialization
phase (supported solely by the private sector) could add several more years,
and the full economic impact may not be realized for some years after commercial
introduction. However, using a variety of analysis tools, including third-party
surveys and statistical analyses, the ATP has documented several important
near-term results of the program, including:
- The majority of
companies receiving ATP awards would not have been able to pursue the
technology at all without the ATP, and the balance would have been able
to proceed only at a significantly smaller scale. The bottom line: U.S.
industry today has important new technical capabilities that would not
exist without the ATP.
- R&D on the high-risk,
high-payoff technologies fostered by the ATP has been significantly
accelerated, according to award winners, a large majority estimating
that the award has put them ahead by two years or more. In today's marketplace,
where product cycles are shorter, a lead time of only a few months can
mean the difference between success and failure in time-critical markets.
- U.S. firms have
found new commercial opportunities--and some early growth--based on
these new technical capabilities.
- A new element
in the R&D culture of U.S. business is emerging one that emphasizes
more high-risk, high-payoff, enabling R&D and greater use of cooperative
research ventures and industrial alliances, and that views government
and industry as partners rather than opponents.
Go to Secretary's
Review of ATP
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