The Theory and Practice of Public-Sector R&D Economic Impact Analysis: The Case of the National Institute of Standards and Technology
AbstractThis paper summarizes National Institute of Standards and Technology’s (NIST’s) previous economic impact analyses and provides guidelines for NIST’s management for planning, conducting, and interpreting NIST’s future economic impact analyses that (1) document the economic contribution of NIST’s investments in infrastructure technology (infratechnology) and (2) inform management about the effectiveness of past projects and guide strategic planning. Motivating this agency-specific case study is the general expectation and challenge for public institutions to be accountable for their use of public resources. Economic impact analysis is one way that public institutions can quantify the social contribution of their activity. Impact analysis can also provide important lessons to management about the effectiveness of previous resource allocation decisions, and it can provide guidelines for future strategic planning. This paper discusses each of the 17 NIST economic impact analyses in the context of the stages of economic activity—R&D, production, or commercialization—benefiting from the infrastructure technology research studied in each analysis. The analyses find that there are typically benefits for private-sector conduct of R&D because R&D is more difficult without state-of-the-art infratechnologies, such as measurement and test methods and critically evaluated scientific data. There are benefits for production because data, measurement methods, process control models, etc. contribute to better process control. Also, there are benefits for commercialization because products are of higher quality (yielding more value to consumers) and the infratechnologies lower transaction costs through product acceptance testing standards (lower overall acquisition costs for consumers and accelerate market penetration). In addition to discussing the findings in the 17 analyses about the benefits for the three stages of activity, the paper explains how the benefits of NIST’s infratechnology investments occur throughout the supply chains in industry, from the producers of materials through the producers of intermediate products to the final consumers of the product or service. The 17 analyses are also discussed in the context of where in the relevant supply chains the benefits were realized and the extent to which those benefits could be estimated quantitatively and incorporated into the evaluation metrics presented in each analysis.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of North Carolina at Greensboro, Department of Economics in its series Working Papers with number 11-16.
Length: 92 pages
Date of creation: 22 Sep 2011
Date of revision:
economic impact analysis; NIST; social rate of return;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-INO-2011-10-01 (Innovation)
- NEP-PPM-2011-10-01 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen Martin & John T. Scott, 1999.
"The Nature of Innovation Market Failure and the Design of Public Support for Private Innovation,"
CIE Discussion Papers, University of Copenhagen. Department of Economics. Centre for Industrial Economics
1999-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, Elsevier, vol. 29(4-5), pages 437-447, April.
- Link, Albert N. & Scott, John T., 2001. "Public/private partnerships: stimulating competition in a dynamic market," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 19(5), pages 763-794, April.
- David Leech & John Scott, 2008. "Intelligent Machine Technology And Productivity Growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(7-8), pages 677-687.
- Link, Albert N. & Scott, John T., 2011. "Public Goods, Public Gains: Calculating the Social Benefits of Public R&D," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199729685, October.
- Albert Link & John Scott, 2002. "Explaining Observed Licensing Agreements: Toward a Broader Understanding of Technology Flows," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(3), pages 211-231.
- Arvanitis, Spyros & Hollenstein, Heinz & Lenz, Stephan, 2002. " The Effectiveness of Government Promotion of Advanced Manufacturing Technologies (AMT): An Economic Analysis Based on Swiss Micro Data," Small Business Economics, Springer, Springer, vol. 19(4), pages 321-40, December.
- Doris Schartinger, 2001. "Benchmarking industry—science relations: the role of framework conditions," Science and Public Policy, Oxford University Press, Oxford University Press, vol. 28(4), pages 247-258, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Garth Heutel).
If references are entirely missing, you can add them using this form.