Technology Program's Eligibility Determination

Pursuant to a congressional request, GAO reviewed the National Institute of Standards and Technology's (NIST) process for determining foreign companies' eligibility to participate in the Advanced Technology Program (ATP), focusing on its eligibility determination for a foreign-owned, U.S.-incorporated joint venture. GAO noted that NIST: (1) eligibility assessment is based on information in the applicant's proposal that establishes the project's economic benefits and an analysis of the investment opportunities afforded U.S. companies by the parent company's country of origin; (2) reviews organizations that manage similar research and development programs in the foreign country to determine whether the country provides effective protection of U.S.-owned intellectual property rights; and (3) concluded that the joint venture met the eligibility requirements for ATP funding, since there were no trade restrictions with the country of incorporation, the United States would benefit from increased global competitiveness, and there was potential for producing and commercializing the product in the United States.