Advanced Technology Program (ATP)

Sustained federal funding for the Advanced Technology Program (ATP) administered by the National Institute of Standards & Technology (NIST).

Issues Before Congress

In 1995 and 1996, the Republican Congress made concerted efforts to terminate the Advanced Technology Program (ATP) administered by NIST. Ultimately, they funded ATP at $225M for FY 1997, a level similar to FY 1996 ($221M). This funding was attained only because President Clinton insisted upon it during the final budget negotiations. Congress had intended to severely limit the program, at best funding only ongoing contracts. Support for ATP should be demonstrated to both Democrats and Republicans, as both need to understand that a solid constituency exists for this program.

Champions and Players

Regarding ATP, the President said, " . . . the Commerce Department's technology programs work effectively with business to expand our economy, help Americans compete in the global marketplace, and create high quality jobs. As we approach a new, technology-driven century, it makes no sense to eliminate an industry-driven, highly competitive, cost-shared initiative like our ATP, which fosters technology development, promotes industrial alliances, and creates jobs."

Chairman Jim Sensenbrenner (R-WI) of the House Science Committee appears less strongly opposed to ATP than his predecessor, retired Bob Walker. However, he needs to be convinced that this program is important to be funded in this very tight budget environment.

Supporting Arguments

In the past, our national security depended on large expenditures for a strong defense. Today, that security depends not only on a strong national defense, but also on a dynamic economy and a strong and technologically sophisticated industrial base. The United States' economic competitors are spending billions of dollars to increase their technological research potential. For example, the European Communities' "Framework" program -- roughly their equivalent of ATP -- was funded at $10 billion between 1987 and 1994, and has a commitment of another $10 billion for 1995 to 1998. The Japanese government spent more than $3 billion on industrial science and technology in 1994 alone and plans to double its R&D spending by the year 2000. If U.S. industry is to compete effectively with these nations, programs such as ATP must have continued strong support of the federal government.

ATP is a vital component of a balanced federal R&D portfolio that helps maintain U.S. technological competitiveness. It is a market-oriented, cost-effective means for promoting research that strengthens U.S. industry. By sharing at least half the cost of research, the program encourages firms to develop technologies that they would be unable to do alone and serves as a catalyst for partnerships. Because firms themselves choose the area of research (subject to rigorous peer review) and must risk their own money (at least 50%), ATP supports market incentives and encourages companies to invest for the long-term in high-risk, high-payoff technologies.

This catalytic role for the government is more important today as the pace of change is ever-increasing. Partnerships provide a strong conduit for the technology that exists in our Nation's laboratories into the marketplace at an enhanced speed. Without such bridges, this technology often ends up only sitting on the shelf.

Programs like ATP play another vital role. Through them the government can provide a neutral ground for technology development and industry discussion, and a mechanism for technology transfer. This process helps establish a technology for wide use early on. Wide acceptance of concepts and ideas leads to the establishment of industry standards. The company or country that dominates the setting of de facto standards has tremendous market advantage. Consortia programs like ATP stimulate this and have a value far greater than simply the technology that is created.

Posted: December 31, 1997