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CHIPS Articles: Unleashing American innovation for U.S. economic prosperity and national security

Unleashing American innovation for U.S. economic prosperity and national security
NIST Releases “Green Paper” on Impact of Federally Funded R&D
By CHIPS Magazine - April 26, 2019
The U.S. Department of Commerce’s National Institute of Standards and Technology announced 15 key findings from a final version of a new “green paper” on maximizing U.S. innovation from government-funded research.

Incorporating extensive feedback from industry, academic and government stakeholders, the NIST report describes options for enhancing how federally funded inventions move from the laboratory to the marketplace by:

  • streamlining federal regulations,
  • enabling greater flexibility for public-private partnerships,
  • increasing engagement with private-sector investors,
  • building a more entrepreneurial workforce, and
  • improving support for innovation by clarifying the intended purpose of “march-in rights.”

March-in rights described under Bayh-Doyle allow the government, in certain limited circumstances, to force the party with title to a government-funded intellectual property to grant a license to another entity. To date, the government has never exercised these rights. The green paper discusses ways that march-in rights could be clarified, and federal technology transfer policies and practices improved to enhance innovation effectiveness.

NIST said in a release the green paper serves as a discussion document that informs, but does not prescribe, policy decisions by the federal government. No findings in this final green paper would require legislative changes to the Bayh-Dole Act. The Bayh-Dole Act of 1980 was revolutionary legislation for U.S. innovation, and the findings of the green paper underscore the importance of preserving its essential premises. However, federal technology transfer laws, including Bayh-Dole, Stevenson-Wydler and the Federal Technology Transfer Act, were largely written prior to the internet and the emergence of the digital economy.

“The United States has the best universities, research institutes and federal labs in the world, and we need modern approaches that work at the speed of business to get the most from their R&D outcomes,” Secretary of Commerce Wilbur Ross said in a statement.

The compilation of the paper is a result of NIST’s Return on Investment Initiative for Unleashing American Innovation. NIST co-leads the effort with OSTP through the President’s Management Agenda and its Lab-to-Market Cross Agency Priority (CAP) goal, which identifies top-priority investment opportunities from across the federal government. This national goal aims to dramatically increase returns from the more than $150 billion per year of U.S. federal investment in research and development.

“The accelerating pace of technology innovation and intense competition in the global marketplace demand new solutions,” said Under Secretary of Commerce for Standards and Technology and NIST Director Walter G. Copan. “Removing roadblocks, enabling entrepreneurs, attracting private investment and getting inventions from the laboratory into the marketplace faster are essential to unleash American innovation and to strengthen U.S. economic competitiveness and national security.”

NIST relied on extensive input from the private and public sectors, close coordination with OSTP and engagement with federal interagency working groups to produce its findings. Several hundred experts and organizations representing thousands of companies, universities and institutions provided thoughtful comments at forums held across the nation and organized by NIST and the U.S. Patent and Trademark Office. A Request for Information published in the Federal Register in May 2018 and comments on the December 2018 draft green paper also informed the final ROI Initiative Green Paper, NIST Special Publication 1234.

Stakeholder feedback for the new NIST document indicated the federal government could streamline processes and agency authorities to structure agreements that offer greater flexibility and make it easier and more attractive for the private sector and academia to partner with the government. Some stakeholders also identified areas where changes in how the government protects and reports intellectual property, technologies and capabilities could make it easier for the private sector and academia to identify promising partnership and commercial opportunities, NIST reported.

“The U.S. must continue to lead the world in technology, and that means maximizing both the taxpayers’ investment into American R&D and the potential of our nation’s brightest minds across academia, industry and?government,” said Deputy Assistant to the President for Technology Policy Michael Kratsios, of the White House Office of Science and Technology Policy (OSTP). “We must ensure the next great inventions are not stifled in regulatory limbo forever, but rather they are brought into the marketplace safely and efficiently for the benefit of the American people.”

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