Delivering Societal Benefits: Outcomes from the U.S. Advanced Technology Program Stephanie Shipp Director Economic Assessment Office, ATP 301 975-8978

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

ProgramProgram

Stephanie ShippStephanie Shipp Director Director

Economic Assessment Office, ATPEconomic Assessment Office, ATP301 975-8978301 975-8978

[email protected] | [email protected] | www.atp.nist.gov

Indiana UniversityIndiana UniversityApril 22, 2003April 22, 2003

National Institute of Standards and Technology • Technology Administration • U.S. Department of Commerce


Legislative GoalsLegislative 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


Outside AssessmentsOutside 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”


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

ATP Mission …ATP Mission …


Key Features of the ATPKey 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


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%

Addressing a National Problem or Need

Lewis M. BranscombAetna Professor of Public PolicyAnd Corporate Management, emeritusKennedy School of Government, Harvard University

Philip E. AuerswaldAssistant Director, Science,Technology, and Public Policy ProgramKennedy School of Government, Harvard University


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.


Since 1990 … 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 170 universities participate• Over 30 national laboratories participate• Over 1,171 patents


Summary of Crosscutting FindingsSummary of Crosscutting FindingsATP Evaluation Toolkit ProjectATP 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


Two Major CriteriaTwo Major Criteria

Scientific and Technological Merit Technical Rationale

- high technical risk & feasibility

- technological innovation

R&D Plan

Potential for Broad-Based Economic Benefits National Economic Benefits Need for ATP Funding Pathway to Economic Benefits


ATP Projects Produce Large BenefitsATP 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


ATP Measures Against MissionATP Measures Against Mission

InputsInputs OutputsOutputs OutcomesOutcomes ImpactsImpacts

FEEDBACK

EVALUATION

ATP funding Industry

cost-share

R&D partnering

Risky, innovative technologies

S&T knowledge

Acceleration Commercial

activity

Broad national economic benefits


747

195

800

0100200300400500600700800900

1000

TechnicalPublications

Patents TechnologiesCommercialized

Identify goals that reflect program’s purpose

ATP Project OutcomesATP Project Outcomes

300 projects completed 50% have technologies under commercialization


ATP Project OutcomesATP 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


ATP FirmsATP FirmsCommercialize TechnologyCommercialize Technology

Technologies under commercialization--More than 195 technologies under commercializationBy end of ATP, 1 out of 4 of projects

commercialize an early applicationBy 2-3 years after ATP, 1 out of 2 projects

commercialize an early application Most technologies begin commercialization

within 2-3 years after ATP


ATP FirmsATP FirmsCommercialize TechnologyCommercialize 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


ATP Projects Lead to Spillover Benefits 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


Example: Component-Based Software Example: Component-Based Software Technology 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


Example: Low-Cost ManufacturingExample: Low-Cost ManufacturingTechnology for Amorphous Silicon Technology for Amorphous Silicon DetectorsDetectors 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


Low-Cost Manufacturing Process Technology forLow-Cost Manufacturing Process Technology forAmorphous Silicon Detectors:Amorphous Silicon Detectors:Applications in Digital Mammography and RadiographyApplications 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


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

Example: Low-Cost ManufacturingExample: Low-Cost ManufacturingTechnology for Amorphous Silicon DetectorsTechnology for Amorphous Silicon Detectors


Ongoing Projects in PhotonicsOngoing Projects in Photonics

Optoelectronics and Lasers

Sensors, Metrology & Inspection

Data Storage

Displays & Imaging

Lighting & Illumination

Bio-photonics

Nanotechnology and Materials


In Summary … ATPIn 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

Documents

Delivering Societal Benefits: Outcomes from the U.S. Advanced Technology Program Stephanie Shipp Director Economic Assessment Office, ATP 301 975-8978