From Lab to Market: Commercialization of Public Sector Technology

325 Pages·1994·11.55 MB·English

by  Raymond Radosevich

From Lab to Market
Commercialization of Public Sector
Technology
From Lab Market
to
Commercialization of Public Sector
Technology
Edited by
Suleiman K. Kassicieh
and
H. Raymond Radosevich
AndersonSchool 01Management
University 01NewMexico
Albuquerque,New Mexico
Springer Science+Business Media, LLC
Ltbrary of Congress Cataloglng-ln-Publ1eatlon Data
Teehnology Commerelallzatlon Conferenee (1993, Sante Fe, N.M.l
From lab to market , eommerelallzatlon of publle sector teehnology
edlted by Sulelman K. Kassleleh and H. Raymond RadasevIeh.
p. em.
"Proeeedings of the Teehnology Commerelallzatlon Conferenee, held
March 1993, In Sante Fe, NewMexleo."
Ineludes blbllographleal referenees and Index.
1. Teehnology transfer--Eeonomie aspeets--United States
-Congresses. 2. Teehnology and state--Unlted States--Congresses.
3. Government busIness enterprlses--Unlted States--Congresses.
I. Kassleleh, Suletman K. 11. Radosevleh,H. Raymond. 111. Tltle.
IV. Tltle, Commerelallzatlon of publle seetor teehnology.
HC110.T4T396 1993
338.973'06--de20 94-14316
CIP
Proceedingsof the TechnologyCommercializationConference,held March 1993, inSantaFe,New
Mexico
ISBN 978-1-4899-1145-2 ISBN 978-1-4899-1143-8 (eBook)
DOI 10.1007/978-1-4899-1143-8
©1994SpringerScienee+BusinessMediaNewYork
OriginallypublishedbyPlenumPress,NewYorkin1994.
Sollcoverreprintofthehardcover Istedition1994
All rights reserved
No partofthisbookmay be reproduced,storedinaretrieval system, ortransmitted in any formorby
anyrneans,electronic, mechanical, photocopying,microfilming, recording,orotherwise, without written
permission from the Publisher
PREFACE
The topic of thisbook, thecommercialization ofpublic-sectortechnology,continues to
growinimportanceintheUnitedStatesandsirnilarsocieties.Theissuesinvolved arerelevant
tomany roles including thoseofpolicymakers,managers,patent attorneys, licensing agents,
and technical staff members ofpublic technology sources.Institutions increasinglyinvolved
intheprocess include federal andothergovernmentallaboratoriesandtheir related agencies,
public universities and their state governments, public and private transfer agents and, of
course, alltheprivate recipients ofpublictechnology.
Scarcely a day goes by without a significant event related to technology transfer and
commercialization. The popular business press is regularly carrying articles addressing the
issues,explaining newinitiativesanddescribingeventsofnotablesuccessorfailure.[l] Asan
example of current important events,theTechnology Reinvestment Project (TRP) isforrnu
latingitsinitiatives totransferpublictechnologyandpromotetechnology-basedpubliclprivate
partnershipsasacollaboration betweentheAdvancedResearchProjectsAgency(ARPA), the
National Institute of Standards and Technology (NIST), the National Science Foundation
(NSF) the National Aeronautics and Space Administration (NASA), and the Department of
Energy,Defense Programs (DOE/DP).
Many analysts ofJapan'seconornicgrowth haveattributed asignificantportion of it to
thecooperationbetween public institutions andprivatesectors,especially micro-electronics,
telecommunications,robotics andadvancedmanufacturing.Thus, mostpopuIarprescriptions
forU.S.econornicgrowthbasedontheJapanesephenomenonrecommend thatpublicsources
of technology learn tocooperate inmuch moreeffective fashion with the key industries that
candrive theU.S.economy.Insome,government agenciesarethemselvesmajor markets, as
their captive laboratories try to develop advanced technoIogies to solve their problems. For
example, estimates of the expenditures to be made by the Department of Energy and the
Department of Defense forenvironmental remediation of their facilities have reached com
bined levels over one-halftrillion dollars projected for the next several decades. DOD, and
especially DOE,laboratories arecurrentlyspendinghugesumstodevelopadvanced technolo
gies in waste management and remediation. Being both technology sources and potentially
lucrative markets,theseagencieshaveunprecedentedopportunities toworkwiththeindustrial
firmswhichwilleventually becomethecontractorsfortheremediationefforts.Technicalskills
acquired in serving these agencies should maketheseAmerican firms the world's leaders in
international waste management markets,ifeffectivetechnology transferandcommercializa
tioncan beaccomplished.
Notalltechnology transfereventshavebeenharmoniousandproductive, norshouldthey
beexpected tobe so.Forexample,accusationsofapparentconflictsofinterest, unfair access
to licensing opportunities, and ineptitude accompany effortstoimprove the process. At least
one government official has been fired because of accusations of overzealous support of
v
vi Preface
entrepreneurial spin-offactivities fromone govemment laboratory.[2] However, the success
ofexperimentaleffortstoimproveandincreasetheincidenceoftechnologycommercialization
issoimportanttotheeconomichealthofournationthatwemustnotbedeterredbyoccasional
failures, butrather leam fromtheexperiences.
To theextent thattheprocess ofcommercializing public-sector technology isincreased
and improved significantly, a number ofpressing problems areaddressed.The international
competitivenessofU.S.industrycanbeenhancedwithpublic-sector technologyaccording to
the intent of theNational Competitiveness Technology TransferActof 1989.With forecasts
of shrinking budgets for federal laboratories (especially those that are defense related),
incremental funding from intellectual property licenses andother commercialization mecha
nisms will beeagerly sought bythese technology sources. Rewards forcooperationwill also
be available inthe form of new marketsand abetterbottom line for theprivate participants,
asthe processes ofpublic-sectortechnology commercialization become moreeffective.
Most of the papers in this book were presented at a conference held in Santa Fe, New
Mexico, during March, 1993.Paperswereinvitedbytheeditors ofthisvolume from leading
practitioners,academics andpolicymakers.Theexchangeofviewsduringtheconferencewas
then reflected in modifications totheoriginal papers.Thus, these papers reflect the state-of
the-art intheory andpractice asperceived byadiverse groupofexperts.
Although the primary focus is federal technology transfer and commercialization, the
principles espoused arejust as relevant to universities and other public technology sources.
Indeed, several papers presentexamples fromtheseother sources.
Each section ofthebook isdesigned to:
a. raiseimportantissuesandfactorsaffectingthesuccessorfailureofmoving technolo
gies from the research stage to commercialization across disparate organizational
boundaries,
b. explain current systems and roles involved in technology commercialization and
indicate the changes necessary in the systems to enhance the success of endeavors
from theinception oftheresearchideatoitsimplementation inaproduction setting
c. suggestmodelsbywhichproblemscanbeovercometoachievebetterwaysofsolving
thecomplex setofissuesthathavebeenidentifiedand
d. provide examples of successful and failed attempts at commercialization with the
underlying factors ultimately providing prescriptions forsuccessful implementation
oftechnology transfer andcommercialization inavarietyofinstitutional settings.
The book isdesigned tobeused bytheprofessional who isinterested inknowing more
aboutthetechnologycommercializationprocessandhowtoincreasesuccessrates.Italsomay
beused asareadings book forasenior-levelorgraduate-level course intechnology commer
cializationor technology transfer. In addition, itmayserve theresearcher who islooking for
acurrentcompendiumtoestablishthestate-of-the-artoftechnologytransferandcommerciali
zation roles, mechanisms, processes andefforts.
The introductory section, "Public-Sector Technology Commercialization: Problems,
Practices and Prescriptions," includes articles explaining the major issues facing the United
States in moving technology from the research environment of public-sector laboratories
through the commercialization process in the private sector.This section deals with current
factors that make decision-making in technology transfer an issue of public policy with
substantial socioeconomicconsequences forthecountry.This sectionalsoincludes adescrip
tion of the programs and mechanisms used at different laboratories and their effects on
technologycommercialization.
Preface vii
The second seetion of thisbook,"Participant Roles inPublic-Sector Technology Com
mercialization," examines the roles of various types of institutions and individuals in the
processof technologycommercialization.Eacharticledescribesthe rolesof key players and
thecurrentstatusandpractices oftheroleperformers,andalsoofferssuggestionsforchanging
thoseroles.The rolesdescribed includeresearchers,intermediariesandagents,entrepreneurs,
consortia, and other strategic alliances between technology sources andusers.
The third section, "Public Sector Technology Commercialization: Mechanisms and
Processes,"examines thetechniques,systemsandmechanismsthatcanbeusedtoimprovethe
effectivenessofthetechnologytransferandcommercializationprocess.Improvingtheprocess
involves experimentation with a variety of techniques and mechanisms with some under
standing ofthecontextinwhicheachislikelytobesuccessful.Advancesareneededinsystems
that increase the efficacy of both technology-push and technology-pull mechanisms. The
articles inthissection describe techniquesformatehing technical solutionswith market needs
aswellasforenhancingthevalueoftechnology indifferent organizational settings.
The last section, "Prescriptive ParadigmsinPublic-Sector Technology Commercializa
tion," provides some case examples and conclusions as to the kinds of change that will be
necessarytoreachthegoalsofmultiplepartiesinvolvedintheprocess.Thesuggestionspertain
to laboratory spin-offs, consortia, extant businesses and high-growth ventures in existing
organizations.
Asalways,aneffort suchasthedevelopmentofthisbookdepends upon thecooperation
andsupportofmanyinstitutionsandindividuals.Theauthorswishtoexpresstheirappreciation
tothe authorsof the papers and the participantswho were soactively involved inthe panels
and discussions during the conference. We also would like to thank the sponsors of the
conferencefortheir generoussupport.Thesponsorsincluded:
• The AndersonSchoolsofManagement,UniversityofNew Mexico
• SandiaNational Laboratories
• LosAlamos National Laboratory
• PhillipsLaboratory
•The RGK Foundation andthe InstituteforConstructiveCapitalism,The Universityof
Texas-Austin
•The Economic DevelopmentDepartment,StateofNewMexico,and
• The Offices ofV.S.SenatorsJeff Bingaman andPeteDomenici
In addition to these institutions, several individuals deserve special thanks for their
involvement in the conference and the preparation of this book. Especially notable was the
workofMs.PeggyMerrellfromtheAndersonSchoolswhoperformedinvaluableediting.Ms.
Roberta Murray performed exemplary word processing efforts on numerous drafts. The
primary administrator of theconference was Ms.DorisRhodes from the Anderson Schools.
Without her help, the conference would have been much less successful. Members of the
conferencecommitteewho represented thefederallaboratorieswereextremely helpful inthe
programdesignandintherecruitmentofparticipants.TheseindividualswereMr.Mark Allen
(Sandia National Laboratories), Ms. Sue Fenimore (Los Alamos National Laboratory), and
Mr. PatRodriquez(PhillipsLaboratory).
REFERENCES
1.As we write this preface, the current issue of Business Week contains an article which thoughtfully
summarizesseveraloftheissuesinandbarrierstheprocessofpublic-sectortechnologycommercialization
viii Preface
(Cares,J.,Hof,R.D.,& Atchison,S.D.,[1993,June 7).Firefightoverthe weaponslabs.BusinessWeek
104-106).
2. Barber,J.,(1990,June).DOEofficial'sroleinlicenseexamined.McGraw-Hill'sTechTransferReport4.
CONTENTS
I. TheImportanceofPublic-SectorTechnologyCommercialization
Introduction 3
The KingSolomonRole inPublic-SectorTechnologyCommercialization 9
RaymondRadosevichandSuleiman Kassicieh
TechnologyTransferinaTime ofTransition 29
Beverly1.Berger
Doing TechnologyTransferinFederalLaboratories ............................ 61
Robert K.Carr
AcceleratingTechnologyDevelopmentforEconomic Competitiveness 89
KayAdams
Current Practices,Coming Changes 97
NormanPeterson
The Role oftheReseareher 103
Lee W. Rivers
The ImpactofFederal TechnologyTransferontheCommercialization Process 109
RogerA.Lewis
The Impact oftheFederal TechnologyTransferontheCommercializationProcess
ConflictofInterest ................................................ 115
AlbertSopp
11.ParticipantRolesin Public-SectorTechnologyCommercialization
Introduction 125
TechnologyNeeds: The Art andCraft ofIdentifying,Articulating,and
Communicating 137
Louis G.Tomatzky and BeverlyOstrowiecki
ix
x Contents
Technology Needs:CommercializingIt"Backwards" 147
LannyHerron
Commentson, and Enhancementsto,Technology Needs:TheArtAndCraft0/
Identifying, Articulating, and Communicating (LouisG.Tornatzkayand
BeverlyOstrosiecki) 151
BarryJ.Lerner
TheRole ofthe Firm'sIntemalTechnicalEntrepreneursin Commercializing
Technologyfrom FederalLaboratories 155
EliezerGeislerand AlbertH. Rubenstein
Commenton The Role oftheFirm'sInternal Technical Entrepreneursin
Commercializing TechnologyFrom TheFederal Laboratories 167
RobertH.Keeley
TheOtherRoles ofthe Inventorin MIT'sTechnologyTransferProcess 173
ChristinaJansen
GuerrillaTechnologyTransfer:TheRole ofthe Researeher ...................... 179
GlennC. Bacon
TechnologyTransferfrom FederalLabs:The Role ofIntermediaries .............. . 183
LawrenceK.Anderson
III. MechanismsandProcesses
Introduction 197
CreatingCommercialValue:The UntappedFederalResource-Technical
Know-How , , 209
F.TimothyJanis
Buildingthe Knowledge Asset 221
TinaMcKinley
TheCommercializationofPublicSectorTechnology: How toForm, Manage, and
EvaluateEffectiveStrategieAlliances ............................ ..... 225
James Botkin
FormingEffectivePartnershipsto CommercializePublicSectorTechnology 233
JanaB.Matthews
PartnershipsAre aPeopleBusiness ......................................... 239
BruceWinchell
SomeObservations on Industry-LaboratoryAlliances 243
Joseph W. Ray
TargetedTechnologyCommercializationthroughValue-AddedFacilitators ......... 247
KevinBarquinero