Small business participation in the advanced technology program research alliances

Richard N Spivack

doi:10.1186/2192-5372-2-19

Abstract

This study uses a database of small businesses that participated in the US Department of Commerce's Advanced Technology Program (ATP) to observe the role of research alliances in undertaking high-risk technology research and development. The initial hypothesis is that small businesses benefit from membership in research alliances. This study examines two forms of research alliances: single applicants with subcontractor(s) and membership in a joint venture. The basis for the analysis includes data collected during the term of the project. Using data collected at project end provides a limited view of success as commercial achievements may come much later, and small businesses may derive advantages from participating in alliances not captured in the variables used. In light of this, the findings point to successful participation in ATP for small businesses as being dependent upon the type of organizational structure chosen as well as the role played by the small business in the research alliance. For example, assuming the role of the joint venture lead contributed to more successful technical and business outcomes.

Highlights

Small businesses play a significant role in technology research and development (R&D), often being referred to as ‘engines of innovation’ in scientific research.a One assumption is that large businesses often are too unwieldy or too risk averse to delve into the area of ‘high-risk’ technology R&D that small businesses undertake (Branscomb and Auerswald 2002), but technology R&D requires a mix of small, medium, and large companies, each offering their unique strengths as well as perspectives (Dyer et al 2006).The Advanced Technology Program (ATP) was a federal science and technology program with a mission to accelerate the development of long-term, high-risk technologies leading to broad national benefits through partnerships with the private sector.b Small companies have played a vital role in this program
The intent of this study was to examine the hypothesis that small businesses participating in the ATP would be more successful in technology R&D both in terms of technical and commercial success if they are a member of a research alliance
The two types of research alliances examined in this study include membership in a joint venture and a single applicant with subcontractor(s)

Summary

Introduction

Small businesses play a significant role in technology research and development (R&D), often being referred to as ‘engines of innovation’ in scientific research.a One assumption is that large businesses often are too unwieldy or too risk averse to delve into the area of ‘high-risk’ technology R&D that small businesses undertake (Branscomb and Auerswald 2002), but technology R&D requires a mix of small, medium, and large companies, each offering their unique strengths as well as perspectives (Dyer et al 2006). Small business success in ATP-funded projects is observed across various structures in which a small company was participating in an ATP project These structures include participation as a single company with no contractors involved (single applicant, SA), as a single company collaborating with subcontractor(s) (single applicant with subcontrator, SAS), as a joint venture leader (JVL) organization, or as a non-lead member of a joint venture (JV member). Success indicators are characterized in two categories: (1) knowledge creation and dissemination and (2) commercialization Examining these variables in relationship to the organizational structure may yield results that have implications for organizational decisions for small businesses when undertaking the types of technology R&D required of participants in the ATP and possibly for technology R&D in general. The success of small businesses when universities participate in research alliances is examined

Background

Findings

Conclusions