Congressional Research Service
on Technology Transfer

The Congressional Research Service (CRS) is a division of the Library of Congress dedicated to providing non-partisan research to Members of Congress, Congressional committees and staff.

A July 2007 CRS Report for Congress on “Technology Transfer: Use of Federally Funded Research and Development” includes these insights:

The federal government spends approximately one third of its annual research and development budget for intramural R&D to meet mission requirements in over 700 government laboratories (including Federal Funded Research and Development Centers).  The technology and expertise generated by this endeavor may have application beyond the immediate goals or intent of federally funded R&D.  These applications can result from technology transfer, a process by which technology developed in one organization, in one area, or for one purpose is applied in another organization, in another area, or for another purpose.  It is a way for the results of the federal R&D enterprise to be used to meet other national needs, including the economic growth that flows from new commercialization in the private sector; the government’s requirements for products and processes to operate effectively and efficiently; and the demand for increased goods and services at the state and local level.

The federal interest in the transfer of technology from government laboratories to the private sector is based on several factors.  The government requires certain goods and services to operate.  Much of the research it funds is directed at developing the knowledge and expertise necessary to formulate these products and processes.  However, the government has neither the mandate not the capability to commercialize the results of the federal R&D effort.  Technology transfer is a mechanism to get federally generated technology and technical know-how to the business community where it can be developed, commercialized, and made available for use by the public sector.

Federal involvement in technology transfer also arises from an interest in promoting the economic growth that is vital to the nation’s welfare and security.  It is through further development, refinement, and marketing that the results of research become diffused throughout the economy and can generate growth.  It is widely accepted that technological progress is responsible for up to one-half the growth of the U.S. economy and is the principal driving force in long-term economic growth and increases our standard of living.  Economic benefits of a technology or technique accrue when a product, process, or service is brought to the marketplace where it can be sold or used to increase productivity.  When technology transfer is successful, new and different products or processes become available to meet or induce market demand.  Transfer from the federal laboratories can result in substantial increases in employment and income generated at the firm level.