Plethora of Papers Published on Public Program

Several papers and report have been released recently on the Advanced Technology Program (ATP); five were published on line last week alone. Below are descriptions of selected papers and links to download full copies. Additional titles are available on the ATP web site: http://www.atp.nist.gov/atp/pubs.htm

Capital Formation and Investment in Venture Markets: Implications for the Advanced Technology Program

The Advanced Technology Program (ATP) of the National Institutes of Standards and Technology commissioned a report by Paul Gompers and Josh Lerner of the Harvard Business School to look at the special problems of entrepreneurial firms that are highly dependent on external sources of funding R&D. The authors focused on venture capital, an important source of equity financing for small technology firms. Utilizing two large-sample research studies, they identified strengths and weakness of venture capital as a financing mechanism. Gompers and Lerner found that while regulatory changes by the government affect the overall supply of venture capital, government’s real impact was more noticeable through changes in public policy that significantly increased the demand for venture capital. Most important were decreases in the capital gains tax rate, which expanded the pool of individuals willing to pursue entrepreneurial careers. The authors then raise the question as to the effectiveness of public efforts to directly supply capital to small firms.

The authors also found that venture capital is most often concentrated or limited geographically and technologically (biomedical or information technology). A recommendation is made for ATP to focus its direct investments in those industries with potentially high social return that have received less attention from private venture capital investors.

The second part of the report presents case studies of seven ATP-funded projects and the authors insights and recommendations for ATP based on analysis of the experiences and results of those seven projects.

After consideration of the research conducted on U.S. venture capital, the authors make five recommendations for the ATP program to consider. The report closes with ATP comments on the recommendations.

A copy of the report can be downloaded from: http://www.atp.nist.gov/atp/pubs.htm

Reinforcing Interactions Between the Advanced Technology Program and State Technology Programs

Written by Marsha Schachtel and Maryann Feldman of Johns Hopkins University, the report is subtitled: Volume 1: A Guide to State Business Assistance Programs for New Technology Creation and Commercialization. The 86-page guide is designed primarily for ATP applicants and award recipients, but also may be of benefit for state and federal technology program officials and policymakers. Sorting state technology-based economic development programs along a specific classification scheme is always challenging. The authors categorize state programs along a matrix model of product commercialization. Three separate chapters are dedicated to characterizing the types of state assistance offered to address the technical, market and business challenges of the three phases of technological innovation: concept, development, and commercialization. Examples are provided of state assistance that address each phase's challenges. The authors also discuss briefly how the various technical, market, and business challenges affect or influence ATP applicants and recipients.

Of particular interest to the state and federal S&T community will be the 21 page appendix listing website and telephone contact information for selected state business assistance programs. Current as of September 1999, the appendix also provides information concerning the program name or function, administering office or agency, and the type of assistance offered (within the report's classification scheme).

Copies can be downloaded from: http://www.atp.nist.gov/atp/pubs.htm