Corporate Technologies
NISTAC's interest in tapping into corporate sources of technologies to underpin regional economic growth was prompted by recognition of a simple fact --- that is, corporate-owned patented technologies represent a huge national asset that dwarfs in scale the technologies held by all other sources. Specifically, data from the U.S. Patent and Trademarks Office (USPTO) indicate that corporations hold, and are likely to continue to hold, over twenty-times the number of patents held by all universities, research institutions and federal laboratories combined.
Although a definitive study has not been conducted, it is estimated that about 95 percent of existing corporate patents remain dormant, that is, are not used in marketed products or services. Although potentially valuable in the hands of others, many of these patents ultimately will be abandoned, and their potential economic value to the nation thereby will be lost.
Dormancy, and ultimately abandonment of potentially valuable technologies may occur for a variety of legitimate reasons, such as a change in corporate strategies or priorities. This also may occur simply because the business potential of the technologies does not reach the huge billion dollar annual sales thresholds required for investment by some large corporations. Nonetheless, technologies that offer the potential for generating sales revenues of even tens of millions of dollars could have great value for strengthening regional economies, particularly in rural and other disadvantaged areas.
Conceptually, large companies could simply license their unused technologies to others, thereby realizing a return on their investments in them. However, many practical barriers exist for corporations to do so. Generally, corporations become and remain successful by focusing on their core business strengths to address specific market needs for products and services. Few large corporations, particularly those focused on the production of goods, consider the development of technologies for sale or license to others as a strategic priority. This means they are reluctant to invest scarce resources in developing the expertise and infrastructure needed for traditional technology licensing and transfer. Additionally, there are huge communication, cultural and other barriers for large corporations to identify and access prospective licensees in the small business sector --- the primary driver of economic growth in America. Quite simply, large corporations view the risks and transaction costs related to tech-transfer between them and small companies as too high relative to the probable returns. Helping to bridge that gap is one of the intents of NISTAC's TADAC program.