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INDUSTRY PROBE WORKING GROUP DISCUSSION

COMBINATORIAL APPROACHES TO CHEMISTRY RESEARCH. INDUSTRY PROBE WORKING GROUP DISCUSSION. John D. Hewes, Ph.D. Office of Chemical and Biomedical Technologies Advanced Technology Program National Institute of Standards and Technology Gaithersburg, MD March 24, 1998. Purpose.

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INDUSTRY PROBE WORKING GROUP DISCUSSION

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  1. COMBINATORIAL APPROACHES TO CHEMISTRY RESEARCH INDUSTRY PROBE WORKING GROUP DISCUSSION John D. Hewes, Ph.D. Office of Chemical and Biomedical Technologies Advanced Technology Program National Institute of Standards and Technology Gaithersburg, MD March 24, 1998

  2. Purpose To collect data and stimulate input on industry need for an ATP Focused Program in combinatorial/high through-put approaches to R&D in chemicals and materials.

  3. Agenda

  4. Code of Conduct • No proprietary information • No info on current open competitions • US industry vs. company: take a long-term view • All ideas valid--no critiques • No speeches, please • One meeting • Stay focused……stay on time • Use parking lot, talk off-line

  5. Who: Brief personal biography What: Thumbnail sketch of company Why: Expectation of meeting Expectations

  6. Roles Lead: J. Hewes Process/Policy Monitor: L. Schilling Scribe: J. Hewes Timekeeper: S. Schiller Recorder: D. King

  7. Idea submission flowchart

  8. Idea submission Convergence • Where does industry want to go ? • When does industry want to arrive ? Capital Payback • Why does industry need ATP ? • What is the economic/national benefit ? High Risk/Reward • What is the killer application ? • Is there a narrow window of opportunity ? • Why ATP and not other Federal agencies ?

  9. Adjacent Markets Upgrades Service Product Information Processes Services Product Possible ATP Approaches Fund single application area with technology diffusion from emergence of individual components. Fund methodology development program directed toward emerging platform

  10. Competitive position - Domestic and ROW Program Recommendation Why ATP ? - What is the nature of the market failure? - Why is timing critical? - What is the size of the technical problem being addressed Major technical barriers - Potential innovative approaches or solutions - Technical risk Impact: - Contribution to US economic competitiveness or growth What is the opportunity - Why is this an important problem? - What is the market? Industry structure: Discuss the industry structure and appropriate value chain(s). A new paradigm for developing focused programs at ATP

  11. SYNERGIESS + Strong Neutral Negative TECHNOLOGIES MARKET @ 2005 ($B) MARKETS SYNERGIES + Strong Neutral Negative Timing: 5 = Pacing 3 = Key 1 = Base Market vs Technology Matrix • Define potential markets • Define enabling technologies • Associate markets and technologies • Develop market synergies • Develop technology synergies • Excel file from ATP web site

  12. Focused Program Selection Criteria What is ATP Looking For? Linda Beth Schilling, Director Chemical & Biomedical Technology Office Advanced Technology Program National Institute of Standards and Technology Technology Administration U.S. Department of Commerce

  13. STRATEGY: CatalyzeFuture Investment Post Project Spending Profile ATP Project Spending Profile $M

  14. Focused Program Selection Strategy • Where does industry need to go? • When does industry need to arrive? • Why does industry need ATP? • Why should the nation care?

  15. Program ... N Program A Program B ATP Program Definition Process Program Ideas from U.S. Industry Program Program Program Idea 1 Idea 2 Idea 3 Program Program Program Idea 4 Idea 5 Idea . . . ATP Selection Criteria • U.S. Economic Benefit • Technical Strength • Industry Commitment • Pivotal Role for ATP { • Filter • Focus • Integrate

  16. Focused ProgramSelection Criteria • Potential U.S. Economic Benefit • Credibility of proposed pathways to economic growth • Sectors affected and extent of change • Probability of subsequent commercialization • Technical Strength • Strong Industry Commitment • Pivotal Role for ATP

  17. Potential U.S. Economic BenefitCredibility of Proposed Pathwayto Economic Growth Implement with Workforce R&D Strategy U.S. Economic Growth Private Plus Spillover Benefits Resource Allocation Plan Business Strategy

  18. Market Knowledge Network Spillovers Spillovers Spillovers + + Potential U.S. Economic BenefitCredibility of proposed pathwaysto economic growth

  19. Potential U.S. Economic BenefitSectors affected and extent of change • Size of sector • Degree of change • Opportunities for economic spillovers

  20. Potential U.S. Economic BenefitSectors affected and extent of change • Probable effects of the Focused Program • Would it happen at all without ATP? • Will it accelerate R&D and commercialization? • Will it increase/broaden opportunities for new products and processes? • Are collaboration efficiencies/synergisms likely? • Other

  21. Potential U.S. Economic BenefitSectors affected and extent of change • Opportunities for economic spillovers • Enabling technologies • Impacts upstream and/or downstream • New industry creation and/or leap-forward in existing industry • Competitive structure

  22. NEW + OLD = NEW + OLD Enabling Technologiescan generate "Large Spillovers" • Pathbreaking Technologies -- open up new possibilities/revolutionary • Infrastructural Technologies -- support R&D, production, and the business or entire industries • Multi-use Technologies -- have many distinct applications

  23. Potential U.S. Economic BenefitProbability of subsequent commercialization • Commitment from industry to make it happen • Critical non-technical barriers (e.g., regulatory issues) are addressed • Strong differential advantage of technology • Global market perspective--threats and opportunities

  24. Characterize “The Challenge” What is high risk? Is it ripe for investment? Is cross project synergy needed? Are good ideas ready? Link Challenge to “The Change” Is it a step change? Is it new underpinnings? Is it a new industry? Technical Strength What is the core technical challenge... which can change industry.

  25. High Technical Risk • Technical challenges which display significant recognized uncertainty of success • Success will dramatically change the future direction of technology and its market impact • Risk may be high in developing single innovations, or integrating technologies or BOTH

  26. Strong Industry Commitment Industry Segment A Industry Segment C $ $ $ $ Industry Segment B Industry Segment D ATP Program • Breadth of interest? • Depth of interest? • Ready to partner? • Adequate vertical and horizontal linkages? • Willing to cost share?

  27. Pivotal Role for ATP What is the Challenge Play? • What part of the problem fits ATP? • What is the High Payoff? • Why not industry alone? • Is there a window of opportunity?

  28. Pivotal Role for ATP What is the Investment Play? • Where is other Federal money being invested? • Where is industry money being invested? • Why a Focused Program vs General Competition? • Will the ATP investment make serious impact?

  29. Program Scope Economic Impact Technology • What’s in? • What’s out? • Does this fit the investment? • What might proposals look like? ATP Role Commitment

  30. What We Do • Buy down R&D risk • Expand R&D scope to accomplish enabling things

  31. Programs vs. Projects Focused Program • Major research effort • High payoff to U.S. economy • Ideas from industry and others • 1-3 solicitations as warranted • Planned with industry • Non-proprietary ideas • No funds transferred Advanced Technology Program Program A Program B Program n Program Competition A1 Program Competition A2 Program Competition An General Competitions Funded Project • Specific research project • Proposed in response to solicitation • $1-3 million per year • $2-10 million over 1-5 years • Proprietary information • Formal cooperative agreement required Funded Projects Funded Projects

  32. Project Proposal Eligibility • Single Company Proposals • No more than 3 years • Up to $2M total NIST funds • NIST pays only direct costs • Large companies cost share at least 60% of project cost • No direct funding to universities, government labs or non-profit independent research organizations • Joint Venture Proposals • No more than 5 years • No limit on award amount • NIST share less than 50% • Must involve two or more for-profit companies, both doing research, and both contributing to the cost share • JV admin. may be industry or independent research organization

  33. Criteria for ATPProject Selection THE ECONOMIC/BUSINESS PLAN • Potential broad-based economic benefits (20%) • Adequacy of plans for eventual commercialization (20%) • Level of commitment and organizational structure (20%) • Experience and qualifications (5%) THE TECHNICAL PLAN • Scientific and technical merit (30%) • quality & innovation • technical risk and feasibility • coherency of technical plan and objectives • team approach • technology impact • Experience and qualifications (5%)

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