Where Industry and Security Intersect
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The U.S. Department of Commerce, Bureau of Industry and Security1, Office of Strategic Industries and Economic Security produced this assessment for the U.S. Department of Education’s National Institute on Disability and Rehabilitation Research2 (NIDRR) and the Federal Laboratory Consortium for Technology Transfer3 (FLC). The study was undertaken as a result of a February 1998 request from Katherine D. Seelman, Ph.D., then the director of NIDRR at the U.S. Department of Education and C. Dan Brand, then Chairman of the FLC.
The Assistive Technology (AT) industry designs, manufactures, and markets devices used to increase, maintain, or improve functional capabilities of individuals with disabilities. Products that are AT devices encompass a range of technologies and engineering disciplines. AT devices include simple tools such as canes, walkers, conventional wheelchairs and hearing aids.
Increasingly, however, AT devices are becoming more complex, requiring manufacturers to integrate a variety of engineering and manufacturing processes and components. Examples include: computer-controlled wheelchairs with multi-plane occupant positioning; voice recognition software; refreshable braille displays for computers; advanced hearing aids; functionally adaptive prosthetics (some using advanced materials); remotely controlled door-openers; speech synthesizers; direction finders; communications devices; and an array of other items. Some of these products have utilized technologies derived from defense research.
Relatively little detailed economic data exists on the assistive technology industry in the United States, an activity that cuts across dozens of manufacturing sectors. BIS, with the assistance of other agencies, designed a survey to better assess the scope and overall health of the U.S. AT industry; to identify challenges and obstacles confronting AT manufacturers; and to determine what opportunities exist for strengthening the domestic industry.
BIS developed a survey and mailing list of domestic businesses engaged in the design, test, research, development, manufacture and distribution of AT products. The purpose of the data collection effort was to gather sufficient information to begin to: (1) comprehend the composition of the industry; (2) gauge its strength and competitiveness in world markets; and (3) understand the technology needs of individual firms and identify federal institutions (defense and non-defense) and organizations that could assist U.S. companies.
For the purpose of this assessment, BIS defined the Assistive Technology industry to include manufacturing, assembly, research and development, sales, distribution, product testing and consulting. Businesses engaged only in distribution were excluded. The survey was mailed in March 1999.
The survey captured a range of business information including the identification of products and markets, trends in revenues, sources of funding (both public and private) and employment concerns. In addition, the survey asked AT companies for their views on how the industry has been affected by federal and state regulations governing AT products; and by federal and state practices allotting resources for needy people with disabilities to procure AT devices and services.
The industry survey was the primary source of information for this study. Survey data were supplemented by limited literature searches as well as direct contacts and interviews with AT industry executives and other industry professionals. BIS also met with representatives of the Centers for Medicare and Medicaid Services, the agency within the Department of Health and Human Services responsible for managing Medicaid and Medicare. Finally, BIS participated in a number of industry trade shows.
BIS sent the survey to about 1,600 U.S. firms and initially received only 232 responses bearing useable data. Out-of-date or otherwise incorrect addresses accounted for a large number of non-respondents; other firms abandoned the market, or were exempt from completing the survey. BIS obtained a total of 359 responses after contacting additional businesses.
Survey participants did not always answer every question. In calculating statistical percentages and averages of aggregated industry data, BIS corrected for non-responses and questionable zero responses. Because there is little financial and statistical information on the AT industry with which to benchmark BIS’ survey results, readers of this report should consider the findings to be indicators of performance and trends.
1 On April 18, 2002, the Bureau of Export Administration changed its name to the Bureau of Industry and Security.
2 NIDRR’s statutory charge is to support research to maximize the self-sufficiency of individuals with disabilities of all ages. The agency funds projects to reduce barriers that individuals with disabilities face in education, housing, transportation, employment, rehabilitation, and recreation. For more information about the research funded by NIDRR, see Appendix D.
3 The Federal Laboratory Consortium represents more than 700 U.S. Government research laboratories from 16 federal departments and agencies. The FLC helps American companies to become aware of -- and to utilize -- unique inventions, research facilities, and engineering capabilities residing in federal laboratories.