Methods for Assessing the Economic Impacts of Government R&D
Posted: 24 Nov 2009
Date Written: 2003
Abstract
Analyses of the actual or potential economic impactsof government R&D programs have used a number of distinctly differentmethodologies, which has led to considerable confusion and controversy. Inaddition, particular methodologies have been applied with different levels ofexpertise, resulting in widely divergent impact assessments for similar typesof R&D projects. With increased emphasis on government efficiency, the current state ofmethodology for strategic planning and retrospective impact analyses isunacceptable. NIST has over the past decade conducted 30 retrospectivemicroeconomic impact studies of its infratechnology (laboratory) researchprograms. Additional microeconomic studies have been conducted of technology focusareas in its Advanced Technology Program (ATP) and of the aggregate impacts ofits Manufacturing Extension Partnership (MEP) Program. In addition, NIST hasundertaken prospective (strategic planning) economic studies of technologyinfrastructure needs in a number of divergent and important industries. From these studies have evolved methodologies for conducting microeconomicanalyses of government technology research and transfer programs. The majorsteps in conducting economic impact studies are identifying and qualifyingtopics for study, designing an analytical framework and data collection plan,conducting the empirical phase of the study, writing a final report, andsummaries of that report, and disseminating the results to government policymakers, industry stakeholders, and other interested parties. Execution of these steps is not straightforward. No consensus exists withrespect to scope and depth of industry coverage, development of an analyticalframework (including choice of metrics and impact measures), and design of datacollection strategies. Even when an acceptable methodology is chosen andeffectively executed, the results are frequently not understood by policymakers. NIST has therefore developed a methodology over the past decade thataddresses the technology-based economic activity being studied, is appropriatefor the nature of the government program or project responding to anunderinvestment phenomenon, and provides an analysis understandable by industryand government stakeholders. Based on the NIST experience, this report describes methodologiesappropriate for economic impact assessments of Government R&D programs andgives numerous examples of their application to specific studies. Guidelinesfor interpretation of both qualitative and quantitative results are provided.(Publication abstract)
Keywords: Economic analysis, Product lifecycles, Public policies, Federal laboratories, Policy analysis, Evaluation methods, Economic impact, Federal R&D, Technology transfer, Technology assessment, Strategic planning
Suggested Citation: Suggested Citation