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Partnerships: cooperative arrangements engaging companies, universities, and government agencies and laboratories in varying combinations to pool resources in pursuit of a shared R&D objective. ¹

I. Introduction

  A. Innovation Through Research and Development Partnerships

Achievement of national goals such as economic growth, public safety, national security, and environmental sustainability will require continued aggressive exploitation and application of scientific and technological advances that arise through federal research and development (R&D) expenditures. However, the conversion of research successes into viable commercial products and services can often be impeded by the absence of market forces sufficient to stimulate private sector investment in development and production. This is particularly true when benefits may not be realized for years, when technological uncertainties are present, or when the marketplace is fragmented. Increasing attention is now being given to explicit collaborations between governmental agencies (federal and non-federal) and the private sector, which may overcome the obstacles imposed by the failure of market mechanisms.

A wide variety of mechanisms enable public agencies to work cooperatively, or in partnership, with the private and non-profit sectors in order to bring research and development to fruition through introduction and application of successful innovations. This report addresses one type of these cooperative efforts: public/private partnerships that focus on transportation and that involve the federal government. It categorizes these relationships and examines the challenges that can arise when trying to relate the interests of different organizations and stakeholders, particularly in the context of limited or diminishing governmental resources. This report also examines the potential of several transportation-related projects associated with the National Science and Technology Council, and provides guidelines for future partnership endeavors. The objective is to identify key lessons that may be successfully applied to future partnerships in the transportation R&D enterprise.

This report is based on an extensive literature review and a series of informal interviews on the topic. The bibliography references journals, texts, and cases that form the basis of the analysis. Additional comments from practitioners and researchers in the field came from recent symposia and conferences related to the topic. ²

  B. The Evolving Role of Research "Partners"

Prior to World War II, the Federal government's R&D commitment was expressed primarily through the funding of land grant colleges (which began through the Morrill Act of 1862). During the post war period, the federal research budget grew in several ways. It grew vertically to support a greater volume of academic research programs and associate staff (faculty and graduate students). Fueled by a major boost in military spending, the federal research budget also grew horizontally to include new types of research programs, such as federal laboratories devoted to defense technology, transportation, energy, agriculture, and health care.

The end of the Cold War and the emergence of the American research enterprise as a preeminent world class model led to a major shift in research and development. Policy makers, legislators, and citizens began to ask what should be done and who should pay. The private sector proved somewhat reluctant to become involved in basic types of research that resulted in uncertain payback as compared to time, resource, and financial investments. Meanwhile, the federal government began refocusing away from large military-based research endeavors as part of an overall downsizing of federal resources. ³

A recent report by the Council on Competitiveness ("Competing Through Innovation: A Report of the National Innovation Summit") highlights five strategic areas that influence the continued prosperity of the R&D system. Figure One summarizes the influence of these areas. One of the main areas of interest is "Market Vitality" that seeks to expand university/industry/government collaborations in order to speed the commercialization of new ideas.

As Figure Two highlights, science and technology research drives technology deployment and product development. Market demands dictate the areas in which development and commercialization of new technology can benefit the public good, resulting in new or enhanced products and services. However, the transition from research to commercial products is often impeded by factors such as fragmented markets, uncertainties as to product feasibility, and investor risk aversion. When the innovation is primarily directed toward a public good, such as safety, market forces may be insufficient to motivate development and implementation. Public/private partnerships (as defined at the beginning of this section) offer a means for overcoming these impediments.