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Cover for NIST GCR02-841A

Understanding Private-Sector Decision Making for Early-Stage
Technology Development
A “Between Invention and Innovation Project” Report

Philip E. Auerswald
School of Public Policy
George Mason University
Lewis M. Branscomb
Kennedy School of Government
Harvard University
Nicholas Demos
Booz Allen Hamilton (formerly)
PharmaBio Strategy Consulting (presently)
Brian K. Min
University of California—Los Angeles

September 2005

Click here to view Adobe PDF version of report.

CONTENTS

ABOUT THE ATP ECONOMIC ASSESSMENT OFFICE (Inside Front Cover)

ACKNOWLEDGEMENTS

ABOUT THE AUTHORS

EXECUTIVE SUMMARY

I. INTRODUCTION

  • Motivation for the Study
  • Corporate Innovations and the Definition of Early-Stage Technology Development

II. HISTORICAL BACKGROUND

  • Industry R&D: Historical Context and Recent Trends

III. PROJECT SCOPE AND METHODOLOGY

  • Methodology
  • Limitations of Data and Methods

IV. FINDINGS: CORPORATE ESTD INVESTMENTS AND ACTIVITIES

  • Estimates of Corporate ESTD Investments
  • Key Trends Shaping Corporate R&D and ESTD Investments
    1. R&D Process Evolution: Increasing Complexity of Technology Development
    2. Pressure for Measurable Results and Financial Returns
    3. Industry and Company Lifecycle Influences
  • Select Industry Analysis: Details from the Interviews
    • Computer Software
    • Telecommunications
    • Chemicals
    • Electronic Component Manufacturing
    • Automotive Industries
    • Biopharmaceuticals

V. EMERGING CORPORATE STRATEGIES AND RESPONSES

  • Portfolio Management Models
  • Alliances, Acquisitions, and Venture Funds
  • Outsourcing of Early-Stage R&D: ESTD Engines for Hire

VI. CONCLUSIONS

APPENDIX: INDUSTRY CLASSIFICATION OF INTERVIEWED COMPANIES

REFERENCES

ABOUT THE ADVANCED TECHNOLOGY PROGRAM (Inside Back Cover)

ILLUSTRATIONS
Figure 1. Paths from a Creative Commercial Idea to an Innovation
Figure 2. Four Transitions to Innovation; Three Require ESTD
Figure 3. Early-Stage Technology Development (ESTD) Along the Path from Invention to Innovation
Figure 4. Estimated ESTD Spending by U.S. Corporations

TABLES
Table 1. R&D Expenditures and Sales: Companies and Industry Totals in 2000
Table 2. Estimated ESTD Spending by U.S. Corporations in 2000
Table 3. Breakdown of R&D Dollars by Interviewed Software Companies
Table 4. Breakdown of R&D Dollars by Interviewed Telecommunications Companies
Table 5. Breakdown of R&D Dollars by Interviewed Chemical Companies
Table 6. Breakdown of R&D Dollars by Interviewed Electronics Companies
Table 7. Breakdown of R&D Dollars by Interviewed Automotive Companies
Table 8. Breakdown of R&D Dollars by Interviewed Biopharmaceutical Companies

Date created: October 7, 2005
Last updated: October 12, 2005

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