Public/Private Partnerships
Engines for Innovation in Transportation
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"Science and technology have clearly been among the principal determinants of change and agents of progress. Not surprisingly, therefore, participation in the front ranks of research and innovation has been and will continue to be essential for our national capacity to capture the gains of scientific and technological advances." 2
I. Partnerships: Types and Challenges 3
A. Introduction
The importance of harnessing the best and most promising scientific and technological advances to improve the national economy, security, and quality of life has been understood for many years. For a number of reasons, this ability will be of even greater importance in the next century. As a recent study by the Council on Competitiveness found: "[E]very company ranks the capacity to innovate--the transformation of knowledge and ideas into new products, processes, and services--as a top priority. Innovative capacity plays a dominant, and probably decisive, role in determining who will prosper in the global arena."4
Secretary of Transportation Slater acknowledges the profound impact of these technologies on our transportation system. On remarks to the President's Committee of Advisors on Science and Technology,5 he referred to several key elements in this technological revolution in transportation:
"Transportation is going digital, with microchips regulating engines, new technologies controlling car and truck braking, and electronic tuning ensuring a cleaner burning engine.
Advances in materials technology are also beginning to have an impact. Vehicle components, materials and systems are far safer than a decade ago. . . . Highway and airport pavements are more durable, cheaper, and easier to maintain.
Transportation technology is also getting smarter. Communications and information and navigation systems integrated into passenger cars are enabling smarter and safer personal driving. Aircraft continue to become quieter, more efficient, and environmentally friendly. Electronic applications and tracking systems have revolutionized the freight industry."6
A key issue is how the U.S. should tailor its science and technology strategy in the field of transportation to maximize its contribution to our own economy, security, and quality of life. A considerable literature has arisen debating the necessary factors and pre-conditions for successfully identifying and applying innovations. For example, the Council on Competitiveness report Going Global: The New Shape of American Innovation, studied innovations in five key economic sectors, four of which have direct relevance to transportation. These are: Information Technology, Advanced Materials, Express Package Transportation and Logistics, Automotive, and Health Care. From these case studies, the report concluded that the following are essential enablers of innovation:
- A well-educated population with trained and talented scientists and engineers;
- Sufficient investment in both fundamental and cutting-edge research to generate new ideas and knowledge;
- Strong partnerships between government agencies, universities, and private companies which can accelerate the development, diffusion and implementation of these new ideas and knowledge; (emphasis added)
- Maintenance of a strong base of high value-added manufacturing to encourage the applications of new technologies;
- A legal and regulatory framework that encourages innovations; and
- Sufficient investment capital to finance these activities before profits become apparent.
In the case of the automotive industry, for example, technological leadership is critical to success in the highly competitive global vehicle market. In recent years, the U.S. edge in technology has been eroding as other nations have focused their policies on enhancing their technology resources. Thus, in order to remain competitive, the report recommends that the U.S. take such steps as:
- Increasing public funding for medium- to longer-term research;
- Expanding Research and Development (R&D) tax credits;
- Increasing the number of U.S. engineers;
- Promoting government-university-industry research partnerships; and
- Adopting incentives for consumers to purchase vehicles with new technologies (such as alternate fuels or improved mileage) embedded in them.7
The Department of Transportation has also been active in the area of public/private partnerships. Under the auspices of the National Science and Technology Council (NSTC), the Committee (later Subcommittee) on Transportation Research and Development issued the Transportation Science and Technology Strategy in September 1997 and the National Transportation Science and Technology Strategy in April 1999. These documents define a four-tiered approach to defining and managing the Federal government's transportation research and development efforts. These four tiers are: (1) an ongoing strategic planning and assessment process to establish a consensus on research priorities; (2) thirteen identified public-private partnerships in key technology areas (see Figure 1);8 (3) seven defined enabling research topics that will provide the basis for future transportation technology breakthroughs (see Figure 1);9 and (4) a broad-based education and training program for both the managers/operators and users of transportation systems. Together, these four elements create a coordinated and unified approach that solicits and encourages participation by the transportation community in its broadest context -- federal, state, regional, local and tribal agencies; educational, academic and research institutions; and private sector companies involved directly in, or supporting, transportation and logistics activities.
Figure 1: Private-Public Strategic Partnerships and Enabling Research Areas
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