The role of the National Bureau of standards in supporting industrial innovation

Abstract

The role of the US National Bureau of Standards (NBS) is analyzed within the context of the innovation process and the various rationales for government support of this process. Industry is found to systematically underinvest in evaluated data and such nonproprietary technologies as measurement and test methods. Underinvestment by industry in measurement-related data and technologies results from both the nonproprietary character of these infratechnologies and from the existence of economics of scale and scope in the research required to produce them. Efficiency gains therefore exist from provision of these infratechnologies by a single government laboratory. Role criteria are synthesized, based on the nature of underinvestment phenomena, for a government laboratory conducting and transferring measurement-related data and technologies across a wide range of economic sectors. Industry impact studies of the NBS economic roles indicate aggregate rates of return at least as high as the average return for private sector innovations. Data and measurement technologies are found to leverage private sector activity at all stages of the technological change process: research and development production, and market development. Projections of future trends in the NBS economic role and the NBS strategic planning approach is presented.