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Delivering Societal Benefits : Outcomes from the U.S. Advanced Technology Program

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  1. Delivering Societal Benefits: Outcomes from the U.S. Advanced Technology Program Stephanie Shipp DirectorEconomic Assessment Office, ATP301 975-8978sshipp@nist.gov | www.atp.nist.govIndiana UniversityApril 22, 2003 National Institute of Standards and Technology • Technology Administration • U.S. Department of Commerce

  2. Legislative Goals “…assisting United States businesses in creating and applying the generic technology and research results to --- (1) commercialize significant new scientific discoveries and technologies rapidly; and (2) refine manufacturing technologies” - Omnibus Trade and Competitiveness Act of 1988, Public Law 100-418

  3. Outside Assessments “The Committee finds that the Advanced Technology Program is an effective federal partnership…its cost-shared, industry-driven approach to funding promising new technological opportunities has shown considerable success in…improving the efficiency and competitiveness of U.S. manufacturing” • National Research Council • Board on Science, Technology, and Economic Policy • In “The Advanced Technology Program: Assessing Outcomes”

  4. ATP Mission … To accelerate the development of innovative technologies for broad national benefit through partnerships with the private sector.

  5. Key Features of the ATP • Emphasis on innovation for broad national economic benefit • Industry leadership in planning and implementing projects • Project selection based on technical and economic merit • Demonstrated need for ATP funding • Requirement that projects have well-defined goals/sunset provisions • Project selection rigorously competitive, based on peer review • Program evaluation from the outset

  6. Addressing a National Problem or Need Evidence • Federal funding plays a critical role in crossing the Valley of Death • ATP represents a more important element in bridging this gap than may have been appreciated • VC, State Government and Universities only contribute between 8 and 16% toward early stage technology development • ATP and SBIR account for between 21 and 25% Lewis M. Branscomb Aetna Professor of Public Policy And Corporate Management, emeritus Kennedy School of Government, Harvard University Philip E. Auerswald Assistant Director, Science, Technology, and Public Policy Program Kennedy School of Government, Harvard University

  7. Estimated distribution of funding sources for early-stage technology development, based on restrictive and inclusive criteria Note: The proportional distribution across the main funding sources for early-stage technology development is similar regardless of the use of restrictive or inclusive definitional criteria.

  8. Since 1990 … • Since 1990, 6,924 proposals submitted to 44 competitions, requesting $14,708 M from ATP • 768 projects awarded with 1,511 participants and an equal number of subcontractors • 218 joint ventures and 550 single companies • $4,371 M of high-risk research funded • ATP share = $2,269 M • Industry share = $2,102 M • Small businesses are thriving • 66% of projects led by small businesses • Over 170universities participate • Over 30national laboratories participate • Over 1,171 patents

  9. Summary of Crosscutting FindingsATP Evaluation Toolkit Project • Considerable evidence that ATP is achieving its objectives: • Increased rates of innovation • Broadly enabling technology platforms • Commercialization by U.S. companies • Improved competitiveness of U.S. industries • Broadly distributed economic benefits from large spillovers • Increased collaborations • Strong small business participation • ATP a strong causal factor—leveraging, not substituting

  10. Two Major Criteria • Scientific and Technological Merit • Technical Rationale - high technical risk & feasibility - technological innovation • R&D Plan • Potential for Broad-Based EconomicBenefits • National Economic Benefits • Need for ATP Funding • Pathway to Economic Benefits

  11. ATP Projects Produce Large Benefits • Benefits: Net Social Benefits on 8 ATP projects: $16 Billion • Tissue engineering: 10.9 B • Component Based Software 0.80 B • Refrigeration 0.45 B • Mammography 0.30 B • 2mm Auto Body Consortium 0.40 B • Data Storage 3.0 B • Printed Wiring Board 0.4 B • Flow Control Machining 0.14 B

  12. ATP Measures Against Mission EVALUATION Inputs Outputs Outcomes Impacts • ATP funding • Industry cost-share • R&D partnering • Risky, innovative technologies • S&T knowledge • Acceleration • Commercial activity • Broad national economic benefits FEEDBACK

  13. 1000 900 800 747 800 700 600 500 400 300 195 200 100 0 Technical Publications Patents Technologies Commercialized ATP Project Outcomes Identify goals that reflect program’s purpose • 300 projects completed • 50% have technologies under commercialization

  14. ATP Project Outcomes • ATP accelerates technology development. • 86% of project participants report that they are ahead in their R&D cycle as a result of ATP funding • Over half said that they are ahead by 1 to 3 years • ATP fosters collaboration. • 85% of projects engaged in collaborations with other companies, universities and federal labs

  15. ATP FirmsCommercialize Technology • Technologies under commercialization--More than 195 technologies under commercialization • By end of ATP, 1 out of 4 of projects commercialize an early application • By 2-3 years after ATP, 1 out of 2 projects commercialize an early application • Most technologies begin commercialization within 2-3 years after ATP

  16. ATP FirmsCommercialize Technology • Different ATP-funded technologies have different commercialization timelines • Information Technology applications earn revenues very quickly; 1 out of 3 begin during ATP • Materials/Chemistry and Manufacturing applications are the slowest to commercialize • Biotechnologies have some early applications but also late ones Powell, 2002, NISTIR forthcoming

  17. ATP Projects Lead to Spillover Benefits • Spillover benefits accrue to customers of ATP-funded technology • 8 out of 10 companies report that use of ATP technology reduces the customer’s costs of production • 1 out of 2 report ‘very significant’ reduction of the customer’s production costs

  18. Example: Component-Based Software Technology • Component-Based Software is a software production paradigm that focuses on building large software systems from readily available components • Projected benefits from cluster of ATP projects • $1.5 billion on combined public and private investment of $93 million • $10 in benefits for every ATP $1 spent

  19. Example: Low-Cost ManufacturingTechnology for Amorphous Silicon Detectors • Digital mammography and radiography systems are innovative technology solutions to the diagnostic and productivity limitations of conventional X-ray • The new process, expected to be implemented by 2004, will reduce fabrication costs by approximately 25% without compromising performance: • Less complex fabrication with fewer mask steps: • 7 vs. 11 • Fewer total process steps: 200 vs. 300

  20. Low-Cost Manufacturing Process Technology forAmorphous Silicon Detectors:Applications in Digital Mammography and Radiography Benefits: • Broad societal benefits of digital mammography to medical facility users and patients are much greater than the benefits to the companies that produce them • Societal benefits include: • Increased throughput, reduced patient examination time, and reduced waiting time • Lower false positive rates, and therefore fewer unnecessary biopsies • Lower call-back rates for mammogram under- and over exposure, and therefore avoidance of unnecessary procedures • Reduced radiation exposure • Simplified record retrieval and record management of past mammograms • Assistance in use of computer-aided detection (CAD) for improved cancer detection • Reduced health disparities across population groups with greater use of telemammography and teleradiology networks

  21. Example: Low-Cost ManufacturingTechnology for Amorphous Silicon Detectors Benefits: • Additional digital mammography and radiography systems are expected to be sold • More patients will likely experience the benefits of digital mammography and radiography • More health-care facilities will likely experience improved productivity and patient throughput • $125 to 193 in benefits for every ATP $1 spent

  22. Ongoing Projects in Photonics • Optoelectronics and Lasers • Sensors, Metrology & Inspection • Data Storage • Displays & Imaging • Lighting & Illumination • Bio-photonics • Nanotechnology and Materials

  23. In Summary … ATP • Focuses on the civilian sector • Funds enabling technologies with high spillover potential • Focuses on overcoming difficult research challenges • Encourages company-university-laboratory collaboration–capitalize on R&D investments • Requires commercialization plans and implementation to ensure societal outcomes • Measures against mission in their evaluation work