37. Most of these patents have been awarded since 1998, although the patent applications were submitted several years before the awards.

38. In the late 1990s, end-user organizations also began applying for—and receiving—patents covering methods of doing business. Considerable controversy has arisen around this subject. The Computer Science and Telecommunications Board is developing a prospectus for a study of this issue. For additional background on the patenting of business practices, see CSTB (2000), especially pp. 192-198.

39. Anoop Gupta, a Stanford University professor on leave at Microsoft at the time, characterized this distinction to the committee on February 10, 1998, as follows: “The difference between black and white magic is really in its symbolism and intent.” Symbolism and intent seem to determine the perceptions of whether something is research or not. Whether knowledge is created is often overlooked. From this “intent-based” perspective, the work of start-ups is not research, whereas from the perspective of producing knowledge, it certainly is.

40. These data are from a PricewaterhouseCoopers MoneyTree survey.

41. Preliminary statistics from PricewaterhouseCoopers indicated that for the second quarter of 1999, 63 percent of VC investments went to firms in the communications, software and information, and computers and peripherals industries.

42. Data from VentureOne Corporation, as reported in Streitfeld (1999).

43. The definitions of seed, start-up, and expansion financing used here are derived from OECD (1999).

44. The apparent disparities between the research funding numbers reported by universities and by federal agencies are due largely to differences in the ways the surveys are administered to collect these data.

45. The federal government has attempted to stimulate collaboration between industry and academia as a means of improving the competitiveness of U.S. companies and of better exploiting the results of federally sponsored research. For example, NSF established the ongoing Engineering Research Centers program in the 1980s to foster partnerships among government, industry, and universities in research and engineering. This program is more fully described in Chapter 4 of this report.

46. Two Focus Centers had been established as of May 2000. The first is led by researchers at the University of California at Berkeley; the second, by researchers at the Georgia Institute of Technology. Each involves researchers from a number of other universities. Additional information on the program is available in SIA (2000).

47. Congressional hearings that predated the 1995 commercialization of the NSFnet featured debates over “experimental” versus “production” networks.

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