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within their borders would have a number of advantages. Making awards in parallel with state governments would:

  • a) Increase Certification: First, parallel awards would increase the certification impact of the ATP award in the local community by raising the firm's profile at the state level. This certification effect can serve to attract private investors by reducing uncertainty concerning the quality and potential commercial applications of the firm's technology. 45
  • b) Leverage Program Funding: Second, parallel awards might enable the Advanced Technology Program to reduce the size of its base award to individual small business applicants, thereby significantly expanding the reach of the program at no additional cost. In cases where the award size remains constant, the leverage of the award would be significantly and immediately increased by the addition of state funds. Cooperation with state programs would have the additional benefit of aligning the ATP's resources with state efforts, particularly in existing or nascent technological clusters, thereby improving the opportunities for the program and the awardees to reach critical mass.
  • c) Expand “Best Practice” Selection: The ATP has exceptional expertise in the review of technically-sound, commercially-feasible proposals by small independent companies and joint ventures operating with the advantages of large companies (noted above). Care would be required to ensure that an alignment of awards does not compromise the ATP's rigorous selection process. At the same time, ATP cooperation with state agencies would have the advantage of leveraging the ATP's expertise in selection and assessment, contributing to the quality of the state selection process, and the reach of the NIST-based ATP while preserving the current quality of the ATP selection and assessment program.

The Steering Committee *

Schachtel and Maryann P. Feldman, Reinforcing Interactions Between the Advanced Technology Program and State Technology Programs, Volume 1: A Guide to State Business Assistance Programs for New Technology Creation and Commercialization, NIST GCR 00-78, April 2000.

45 Feldman and Kelley, The Case for Government R&D Additionality, op. cit., conclude that “winning an ATP award significantly increases the firm's success in attracting additional funds from other sources for R&D activities.” Their findings “provide strong evidence that the ATP award confers a halo effect on winners that makes them more likely to attract other funding when compared to non-winners of the same size…with projects of similar business and technical quality.”

* For the Committee membership, see the front matter.

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