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--> Industry-Laboratory Partnerships A Review of the Sandia Science and Technology Park Initiative Charles W. Wessner, Editor NATIONAL ACADEMY PRESS Washington, D.C.
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--> NATIONAL ACADEMY PRESS 2101 Constitution Ave., N.W. Washington, D.C. 20418 The National Academy of Sciences is a private, nonprofit society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by Congress in 1863, the Academy has a mandate that requires it to advise the federal government on science and technical matters. Dr. Bruce Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. William A. Wulf is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I. Shine is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Bruce Alberts and Dr. William A. Wulf are chairman and vice chairman, respectively, of the National Research Council. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provide support for the project. Limited copies are available from: Board on Science, Technology, and Economic Policy National Research Council 1055 Thomas Jefferson, N.W. Washington, D.C. 20007 Additional copies are available for sale from: National Academy Press Box 285 2101 Constitution Ave., N.W. Washington, D.C. 20055 800-624-6242 202-334-2200 202-334-3313 (in the Washington Metropolitan Area) International Standard Book Number 0-309-06199-7 Copyright 1999 by the National Academy of Sciences. All rights reserved. Printed in the United States of America
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--> For the National Research Council (NRC), this project was overseen by the Board on Science, Technology and Economic Policy (STEP), a standing board of the NRC established by the National Academies of Sciences and Engineering and the Institute of Medicine in 1991. The mandate of the STEP Board is to integrate understanding of scientific, technological, and economic elements in the formulation of national policies to promote the economic well-being of the United States. A distinctive characteristic of STEP's approach is its frequent interactions with public and private sector decision markers. STEP bridges the disciplines of business management, engineering, economics, and the social sciences to bring diverse expertise to bear on pressing public policy questions. The members of the STEP Board* and the NRC staff are listed below: Dale Jorgenson, Chair Frederic Eaton Abbe Professor of Economics Harvard University Cambridge, Massachusetts M. Kathy Behrens Managing Partner Robertson Stephens Investment Management San Francisco, California James F. Gibbons Professor of Engineering Stanford University Stanford, California George N. Hatsopoulos President, Chief Executive Officer Thermo Electron Corporation Waltham, Massachusetts Ralph Landau Consulting Professor of Economics Stanford University Stanford, California James T. Lynn Adviser Lazard Freres Bethesda, Maryland Burton John McMurtry General Partner Technology Venture Investors Menlo Park, California William J. Spencer, Vice-Chair Chairman, SEMATECH Austin, Texas Ruben Mettler Chairman and Chief Executive Officer (ret.) TRW, Inc. Los Angeles, California Mark B. Myers Senior Vice President Xerox Corporation Stamford, Connecticut James M. Poterba Professor of Economics Massachusetts Institute of Technology Cambridge, Massachusetts A. Michael Spence Dean, Graduate School of Business Stanford University Standford, California Joseph E. Stiglitz Senior Vice-President for Development Economics The World Bank Washington, D.C. Alan Wm. Wolff Managing Partner Dewey Ballantine Washington, D.C. * As of April, 1998
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--> Staff Stephen A. Merrill Executive Director Charles W. Wessner Program Director John B. Horrigan Consultant John C. Oldfield Program Associate Ryan L. Catteau Program Associate Craig M. Schultz Program Associate
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--> NATIONAL RESEARCH COUNCIL BOARD ON SCIENCE, TECHNOLOGY, AND ECONOMIC POLICY Sponsors The National Research Council gratefully acknowledges the support of the following sponsors: U.S. Department of Defense U.S. Department of Energy National Cancer Institute National Institute of Standards and Technology Sandia National Laboratories National Aeronautics and Space Administration National Science Foundation Electric Power Research Institute Merck and Company Milliken Industries Motorola Nortel Procter and Gamble Silicon Valley Group Incorporated Advanced Micro Devices Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of the project sponsors.
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--> STEERING COMMITTEE FOR GOVERNMENT-INDUSTRY PARTNERSHIPS FOR THE DEVELOPMENT OF NEW TECHNOLOGIES Gordon Moore, Chair Chairman Emeritus Intel Corporation M. Kathy Behrens Robertson Stephen Venture Capital and STEP Board Gordon Binder Chief Executive Officer Amgen, Inc. Michael Borrus Co-Director Berkeley Roundtable on International Economics Iain Cockburn Professor of Commerce and Business Administration University of British Columbia Kenneth Flamm Dean Rusk Chair in International Affairs LBJ School of Public Affairs University of Texas at Austin James F. Gibbons Professor of Engineering Stanford University and STEP Board W. Clark McFadden Partner Dewey Ballantine William J. Spencer, Vice-Chair Chairman, SEMATECH and STEP Board Burton John McMurtry General Partner Technology Ventures and STEP Board Mark B. Myers Senior Vice President Xerox Corporation and STEP Board Richard Nelson George Blumenthal Professor Columbia University Charles Trimble Vice Chairman Trimble Navigation John P. Walker Chairman and Chief Executive Officer Axys Pharmaceuticals, Inc. Patrick Windham Adjunct Professor Stanford University Consultant Science and Technology Policy Project Staff Charles W. Wessner Study Director John B. Horrigan Consultant Ryan L. Catteau Program Associate Craig M. Schultz Program Associate
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--> The Board on Science, Technology and Economic Policy would like to express its appreciation to the participants in this symposium for generously making available their time and expertise. In particular, the Board would like to recognize Dr. Dan L. Hartley, Vice President for Laboratory Development at Sandia, for requesting this review of the Sandia S&T Park proposal. The Board would also like to recognize the key contributions of Dr. John Horrigan and John Oldfield in organizing this symposium as well as Craig Schultz and Ryan Catteau for their invaluable assistance. Lastly, the Board would like to express its appreciation to Dr. Charles Wessner for his initiative in holding this symposium, amidst several others, in order to advance our understanding of this important aspect of government-industry partnerships.
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--> CONTENTS Foreword 1 Executive Summary 3 I. Preface 9 II. Introduction 21 III. Proceedings Welcome Charles W. Wessner, National Research Council 29 Opening Remarks Robert Simon, Office of Senator Jeff Bingaman 31 Panel I: S&T Parks: An Overview of Recent Experience Moderator: Henry Kelly, Office of Science and Technology Policy, The White House 34 The Research Triangle Experience Michael Luger, University of North Carolina 35
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--> The Austin Experience Jurgen Schmandt, University of Texas, Austin 39 Discussant Irwin Feller, Pennsylvania State University 41 Panel II: Technology Transfer and the National Laboratories Moderator: Thomas Mays, Morrison & Foerster 46 Origins of the Park Concept Albert Narath, Lockheed Martin 47 The Sandia S&T Park Proposal Dan Hartley, Sandia National Laboratories 48 Discussants: Kenneth Flamm, The Brookings Institution Kenneth M. Brown, National Science Foundation 50 Panel III: Institutional Design Moderator: Ernest Moniz, Under Secretary, Department of Energy 55 The Conditions for Success Edward Malecki, University of Florida 56 Government, University, and Industry Linkages Adriaan M. de Graaf, National Science Foundation Charles Wellborn, University of New Mexico 59 Industry Views Papken Der Torossian, Silicon Valley Group, Inc. William James, Procter and Gamble 63 Discussant: Joel Yudken, AFL-CIO 66
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--> Panel IV: Operational Challenges: Opportunities and Contributions: Funding and Governance, Cost-sharing and Cost Recovery, Intellectual Property, Facilities Access Moderator: W. Clark McFadden, Dewey Ballantine Michael Borrus, BRIE, University of California, Berkeley John Jennings, Office of Senator Jeff Bingaman James Turner, House Science Committee 68 Discussion 74 Summary 78 IV. Annexes A. White Paper on Sandia National Laboratories and the Sandia Science and Technology Park Sandia National Laboratories 83 B. Overheads on the Research Triangle Experience Michael Luger 92 C. Participants List 102 D. Bibliography 107
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