Planning Report 03-1 Methods for Assessing the Economic Impacts of Government R&D Gregory Tassey Senior Economist National Institute of Standards & Technology Program Office Strategic Planning and Economic Analysis Group September 2003 U.S Department of Commerce Technology Administration Methods for Assessing the Economic Impacts of Government R&D Gregory Tassey Senior Economist National Institute of Standards and Technology
[email protected] http://www.nist.gov/public_affairs/budget.htm September 2003 2 Abstract Analyses of the actual or potential economic impacts of government R&D programs have used a number of distinctly different methodologies, which has led to considerable confusion and controversy. In addition, particular methodologies have been applied with different levels of expertise, resulting in widely divergent impact assessments for similar types of R&D projects. With increased emphasis on government efficiency, the current state of methodology for strategic planning and retrospective impact analyses is unacceptable. NIST has over the past decade conducted 30 retrospective microeconomic impact studies of its infratechnology (laboratory) research programs. Additional microeconomic studies have been conducted of technology focus areas in its Advanced Technology Program (ATP) and of the aggregate impacts of its Manufacturing Extension Partnership (MEP) Program. In addition, NIST has undertaken prospective (strategic planning) economic studies of technology infrastructure needs in a number of divergent and important industries. From these studies have evolved methodologies for conducting microeconomic analyses of government technology research and transfer programs. The major steps in conducting economic impact studies are identifying and qualifying topics for study, designing an analytical framework and data collection plan, conducting the empirical phase of the study, writing a final report and summaries of that report, and disseminating the results to government policy makers, industry stakeholders, and other interested parties.