The most common and flexible way for federal labs to work with the public sector, and vice versa, is through collaborative R&D agreements. The Cooperative Research and Development Agreement (CRADA) is one of the most significant mechanisms for T2, and through them a federal lab can commit resources such as personnel, facilities, equipment, intellectual property, or other resources—but not funds—to any interested nonfederal party. A CRADA serves as a contract of sorts, whereby both parties should have the same expectations and understanding about the outcome of the agreement. 

The collaborative R&D efforts set forth through a CRADA result in more favorable long-term outcomes than any other T2 mechanism. They also allow for an intimate working relationship between government and industry researchers so a better understanding of commercial needs can help focus federal laboratories’ science and technology initiatives. 

Gaining access to cutting-edge federal facilities and equipment obtained through facility usage agreements has enabled anyone from academic researchers to large corporate entities to perform world-class R&D that is not readily available in the private sector. The government allows the technical community, universities, industry, and other federal labs and centers to conduct specific research at federal facilities. The research allowed may be proprietary or nonproprietary in nature, and any intellectual property provisions from either the lab or the private partner must be detailed in the facility usage agreement.

Another option for transferring federal technologies is through licensing. Licensing is the transfer of less-than-ownership rights to another party so the other party can use the intellectual property or technology for their own use and/or further development. The licensing of government-owned patents is one tool used to promote the utilization and commercialization of inventions that are developed in federal labs through agency-supported R&D. The government may grant licenses to the private sector, or industry, to use federally funded inventions, and industry may grant licenses to the government. Patent license agreements may also be incorporated within CRADAs and handled according to CRADA guidelines.