The role of incentives in the deployment of technologies from cooperative R&D

Abstract

Over 1,400 cooperative research and development agreements (CRADAs) were in place across the U.S. Department of Energy (DOE) laboratory system in May 1995—indicating that a broad sampling of industry endorses the objectives of the National Competitiveness Technology Transfer Act of 1989. The law enables DOE's contractor-operated facilities, such as Oak Ridge National Laboratory (ORNL), to collaborate with companies, industrial consortia, universities, and even state and local governments.

Positive impacts cited by industrial CRADA participants thus far include the improvement of existing products and manufacturing processes, the reduction of investment risks associated with cutting-edge research, and an increased awareness of important technical trends. However, such industrial benefits are often hard to measure; that represents a potential problem for federally funded R&D institutions, where metrics associated with tangible economic impacts are assuming greater prominence.

Future political support for public/private partnerships may depend on steep growth in quantitative measures of economic value, based on the sale of patented products and services. Boosting such sales in a significant way, could, in turn, depend on the consistent application of incentive-based approaches that motivate individuals and organizations to aggressively pursue technology-based commercialization goals.

In Oak Ridge, Tennessee, where Lockheed Martin Energy Systems manages ORNL and other DOE research and production facilities, broadly defined incentives have played a key role in facilitating the sale of licensed products and services. Cumulative sales totaled $102,000,000 in April 1995, with several innovations just beginning to enter the marketplace after years of engineering and product development. The same factors that impact technology deployment in these “stand-alone” licenses will play a key role in the deployment of inventions arising from CRADAs.