Measuring Performance

The Advanced Technology Program, which is run by the National Institute of Standards and Technology, seeks to provide support on a cost-sharing basis for industrial research and development projects--projects that have a significant potential for stimulating economic growth and improving the competitiveness of U.S. industry. Federal funding for the program has soared, from $68 million in fiscal year 1993 to $341 million in fiscal year 1995. Recent budget proposals, however, have sought to eliminate funding for the program in fiscal year 1996. GAO's survey of program applicants found that the program funds both projects that would have been funded in its absence and projects that would not have been funded. In addition, the program achieves other goals, such as aiding the formation of joint ventures and helping companies achieve research milestones faster. These results should be considered together when assessing the program's impact.

GAO found that, based on a survey of 123 ATP applicants that submitted highly rated bids between 1990 and 1993: (1) 89 applicants received ATP funding, while 34 did not; (2) about half of the applicants that did not receive ATP funding continued their projects using other funding sources, but generally met their project goals later than scheduled; (3) applicants that received ATP funding were evenly divided on whether they would have pursued their projects without ATP funding; (4) 63 percent of the applicants did not request funding from other sources before applying to ATP, but those that did were often told by prospective funding sources that their projects were too risky or precompetitive; and (5) ATP satisfied its goal of aiding in the formation of joint ventures, as 26 of 34 joint venture applicants reported joining forces solely to pursue ATP projects.