What is the federal government`s role in sponsoring energy R and D?

Book · Tue Dec 31 04:00:00 EST 1996

OSTI ID:474401

Garland, R W ^[1]; Eisenhauer, J ^[2]

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1. Dept. of Energy, Washington, DC (United States). Office of Science Policy
2. Energetics Corp., Columbia, MD (United States)

The merits of spending federal tax money on R and D stem from three important concepts. First, the competitive environment for industrial profits as shortened the horizon for industrial R and D. Wall Street drives private companies to improve the short-term bottom-line, and therefore companies cannot afford to invest large amounts of capital into ventures that will not bear fruit within 2--3 years. Second, many R and D projects are of such a large scale that most private sector companies cannot afford to launch such ventures. Third, many of the ideas that are well suited for basic research involve the development of building-block technologies that are not appropriate for individual companies (i.e. the sponsoring firm cannot garner the benefits of their R and D while excluding competitors). Many of these building-block technologies provide equal benefit to the competition, as well as, the performer of the R and D. Private sector companies cannot afford to make large investments in developing a technology that provides no competitive advantage for their firm. These three lines of thought will be explained using current industrial strategic objectives, historical industrial R and D investment patterns, and policy analysis from publications currently in the public domain.

• OSTI ID: 474401
• Report Number(s): CONF-960805--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMMERCIALIZATION
ENERGY POLICY
FINANCIAL DATA
GOVERNMENT POLICIES
RESEARCH PROGRAMS