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Performance of 50 Completed ATP Projects, Status Report Number 2 NAT L INST. OF STAND & TECH CED TECHNOLOGY PROGRAM 1 1 1 1 I I I I I 1 Iv:, PUBLICATIONS ' 635 r r Performance of• 50 Completed ATP Projects STATUS REPORT - NUMBER 2 NIST SP 950-2 Nisr National Institute of Standards and Technology Technology Administration, U.S. Department of Commerce NIST CENTENNIAL Gaithersburg, Maryland ADKANCEO TBeHNOLOGV PKOeKAU Performance of 50 Completed ATP Projects STATUS REPORT - NUMBER 2 NiST SP 950-2 U.S. DEPARTMENT OF COMMERCE Donald L. Evans, Secretary TECHNOLOGY ADMINISTRATION Phillip J. Bond, Under Secretary for Technology NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY Arden L. Bement, Jr., Director Nisr National Institute of Standards and Technology Technology Administration, U.S. Department of Commerce Gcithersburg, Maryland NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY Advanced Technology Program, Economic Assessment Office NIST Special Publication 950-2 U.S. Government Printing Office Washington, D.C. December 2001 Book design and graphics by Linda S. Sherman Design, Inc., Montgomery Village, Maryland ii Table of Contents ACKNOWLEDGMENTS v EXECUTIVE SUMMARY vii INTRODUCTION xiii CHAPTER 1: OVERVIEW OF COMPLETED PROJECTS 1 Part 1: Project Characteristics 3 Part 2: Gains in Technical Knowledge 7 Part 3: Dissemination of Knowledge 9 Part 4: Commercialization of the New Technology 17 Part 5: Overall Project Performance ; 19 CHAPTER 2: ADVANCED MATERIALS AND CHEMICALS 27 AUiedSignal Inc 29 BioTraces, Inc. 33 Geltech Incorporated 37 IBM Corporation 41 IBM Corporation 45 Michigan Molecular Institute (MMI) 49 Westinghouse and SOS Tool 53 CHAPTER 3: BIOTECHNOLOGY 57 Aastrom Biosciences, Inc. 59 Amersham Pharmacia Biotech (formerly U.S. Biochemical Corporation) 65 Aphios Corporation (formerly BioEng, Inc.) 71 Integra LifeSciences 73 Molecular Simulations, Inc. (formerly Biosym Technologies, Inc.) 77 Thermo Trilogy Corporation (original awardee: AgriDyne Technologies, Inc.) 81 Tissue Engineering, Inc. (TE) 85 CHAPTER 4: ELECTRONICS/COMPUTER HARDWARE/COMMUNICATIONS 89 Accuwave Corporation 91 American Display Consortium 95 AstroPower, Inc • 101 Calimetrics, Inc 107 Cree Research, Inc Ill Cynosure, Inc 115 Diamond Semiconductor Group, LLC (DSG) 119 ETOM Technologies, Inc. (formerly Optex Communications, Inc.) 123 FSI International, Inc 127 Hampshire Instruments, Inc. (Joint Venture) 131 iii Light Age, Inc 133 Lucent Technologies Inc. (formerly AT&T) 137 Multi-Film Venture (Joint Venture, formerly the American Scaled-Electronics Corporation) 141 National Center for Manufacturing Sciences (NCMS) 145 NetOptix Corp. (formerly Galileo Corporation) 151 Nonvolatile Electronics, Inc. (NVE) 155 Spire Corporation 159 Thomas Electronics, Inc 163 Vitesse Semiconductor Corporation 167 CHAPTER 5: INFORMATION TECHNOLOGY 171 Communication Intelligence Corporation (CIC) 173 Communication Intelligence Corporation (CIC) 177 Engineering Animation, Inc. (EAI) 181 Mathematical Technologies Inc. (MTI) 187 Torrent Systems, Inc. (formerly Applied Parallel Technologies, Inc.) 191 Union Switch and Signal, Inc 195 CHAPTER 6: MANUFACTURING 199 American Superconductor Corporation (ASC) 201 Armstrong World Industries, Inc 207 Auto Body Consortium (Joint Venture, formerly 2mm Auto Body Consortium) 211 E.I. du Pont de Nemours and Company 215 HelpMate Robotics, Inc. (formerly Transitions Research Corporation) 219 Illinois Superconductor Corporation (ISC) 223 Microelectronics Center of North Carolina (MCNC) 227 Perceptron, Inc 233 PreAmp Consortium (Joint Venture) 237 Sage and 3M Corporation 241 Saginaw Machine Systems, Inc 247 CHAPTER 7: APPENDICES 251 Appendix A: Development of New Knowledge and Early Commercial Products and Processes 253 Appendix B: Terminated Projects 259 Appendix C: Project Performance Rating System Status Reports - First 50 Completed Projects 267 iv Acknowledgments _*.irst, and foremost, the contributors to this report acknowledge the many researchers at compa- nies, universities, and other institutions who achieved the technical progress related in this report, and the managers and investors who supported and directed the work. Without their visionary insight, creativity, hard work, and commitment to the innovation process, there would be little to discuss here. Second, the contributors acknowledge the assistance provided by ATP program managers who assisted the case writers in understanding the projects and the technologies. They provided an invaluable link to the projects and research community. Finally, the project manager, Darin Boville, acknowledges the collective and individual contribu- tions to this report by the senior author and case writers. Appreciation is extended to Rosalie Ruegg of TIA Consulting, in her role as senior author, for compiling and analyzing aggregate statistics, developing composite performance metrics for all the projects, preparing the overview chapter and appendices, editing the new cases, and helping to redesign the report and adding new features. Kathleen McTigue, the project coordinator, oversaw the entire publication effort, reviewed various drafts, and provided editorial and stylistic input. William Long of Business Performance Associates, the author of the first published status report containing 38 cases which were rolled into this volume, is due thanks. Chris Hansen, Benjamin Fletcher, Kathleen McTigue, Josh Rosenberg, Karen Seeh, Mariah Tanner, Jonathan Tucker, and Michael Walsh — all present or former members of ATP's staff — are deserving of credit for adding a dozen new cases to the report. Linda Sherman and her staff at Linda Sherman Design, Inc., are thanked for their work on the design and layout. ATP and NIST staff who reviewed the draft report are also acknowledged, particularly Stephanie Shipp, Director of the Economic Assessment Office, Jeanne Powell, and Connie Chang. Finally, appreciation is extended to the reader who takes the time to learn more about the projects and the program. This report is one of several resulting from ATP's ongoing evaluation effort to provide information to the public on the projects it has funded. Other studies are available at ATP's website (www.atp.nist.gov). We welcome your questions and comments. Darin Boville Project Manager Economic Assessment Office ACKNOWLEDGMENTS Executive Summary jL wJLore efficient use of energy, more efficient medical treatments that cost less and cause less pain, the capacity to process growing volumes of data, better vehicles, and improved position in the highly competitive international electronics market—these are among the many significant achievements of projects supported by the Advanced Technology Program (ATP) over its first decade. Results from the first 50 completed projects are strong for ATP, with estimated benefits far outweighing the entire cost of ATP to date. The First 50 Projects with ATP and industry sharing total research costs Policymakers, program administrators, business managers, roughly equally. and others in this country and abroad have eagerly awaited a comprehensive look at results from ATP-funded research ATP's IVIission and Operations projects. This report provides at least partial answers by The National Institute of Standards and Technology (NIST), a part of the Department of Commerce's assessing the first 50 completed projects—approximately 10 percent of the projects funded by the ATP from 1990 Technology Administration, administers ATP. The ATP through 2000. The performance metrics show how each and industry share research costs for projects characterized of the 50 projects performed in terms of new technical by ambitious scientific and technological goals, and by a knowledge created and disseminated, direct commercializa- strong potential to improve the competitiveness of U.S. tion of new technologies, and overall project effectiveness. businesses and offer substantial economic return to the United States. The ATP seeks to accelerate the develop- Project Characteristics ment and application of enabling technologies whose The majority of the first 50 completed projects are single- benefits will extend well beyond the direct benefits to applicant projects led by small businesses. Although only the ATP award recipients. The focus is on collaborative, 16 percent are joint ventures, 84 percent involved collabo- multidisciplinary research and on civilian technologies rative relationships. Nearly half had close R&D ties with that appear likely to be commercialized in the marketplace universities, and more than half formed collaborative with private sector funding once the high technical risks arrangements with others to pursue commercialization. are reduced. The projects funded are selected in rigorous ATP's designated technology area Electronicsl Computer competitions on the basis of their technical and economic HardwarelCommunications comprised the largest group merit, as determined by peer review. of projects, followed by Manufacturing, Biotechnology and Since 1990, ATP has committed funding of $1.6 billion Advanced MaterialslChemicals, and, last, Infonnation in research costs for 522 projects, with companies contrib- Technology. uting a similar amount in matching funds for the research, The ATP spent an average of $1.5 million per single- and much more in the post-project periods for follow-on applicant project and an average of $4.9 million per joint- commercialization. More than 1,000 companies, universi- venture project. Across the 50 projects, the average total ties, and nonprofit laboratories lead the projects or partici- cost (ATP plus industry) per project was
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