***Summary Report on***

***Federal Laboratory Technology Transfer***

*FY 2003 Activity Metrics and Outcomes*

*2004 Report to the President and the Congress*

*under the Technology Transfer and Commercialization Act*

Office of the Secretary

U.S. Department of Commerce

December 2004

***Table of Contents***

Foreword
............................................................................................................[3](#Foreword)

Acknowledgments
................................................................................................[4](#Acknowledgments)

**Chapter 1. Purpose and Principal Findings**

> 1.1 Background
> ...............................................................................................[5](#Ch1background)
>
> 1.2 Scope of this Report
> .....................................................................................[6](#Ch1method)
>
> 1.3 Principal Findings
> .......................................................................................[8](#Ch1findings)

**Chapter 2. Trends in Federal Lab Technology Transfer**

> 2.1 Cooperative Research and Development Relationships
> .......................................\...[15](#Ch2CRADAs)
>
> 2.2 Invention Disclosure and Patenting
> .................................................................[23](#Ch2InvDisPat)
>
> 2.3 Licensing -- Lab Inventions and Other Intellectual Property
> ....................................[28](#Ch2Licensing)
>
> 2.4 Other Activity Measures
> ...........................................................................\...[42](#Ch2OtherMeasures)
>
> 2.5 Outcomes from Technology Transfer
> ............................................................\...[43](#Ch2Outcomes)

**Chapter 3. Summary of Statistics on Technology Transfer Activities and
Outcomes Provided by the Agencies in their FY 2003 Annual Reports**

> 3.1 Department of Agriculture
> ........................................................................\...[47](#USDA)
>
> 3.2 Department of Commerce
> ........................................................................\....[57](#DoC)
>
> 3.3 Department of Defense
> ............................................................................\....[72](#DoD)
>
> 3.4 Department of Energy
> ..............................................................................\...[80](#DoE)
>
> 3.5 Environmental Protection Agency
> ...............................................................\...[100](#EPA)

3.6 Department of Health and Human Service
...................................................\.....[106](#HHS)

> 3.7 Department of the Interior
> ..........................................................................[114](#DoI)
>
> 3.8 National Aeronautics and Space Administration
> .............................................\...[120](#NASA)
>
> 3.9 Department of Transportation
> .....................................................................[128](#DoT)
>
> 3.10 Department of Veterans Affairs
> ...................................................................[134](#VA)

**Appendix:**

> Agency Progress in Strengthening Performance Metrics for Federal Lab
> Tech Transfer .......[140](#AppNotesonMetrics)

***List of Figures and Tables***

Figure 2.1 Cooperative Research and Development Agreements, All Federal
Labs, FY 1999-2003

Figure 2.2 CRADAs (total active), by Agency, FY 1999-2003

Figure 2.3 Other Collaborative R&D Relationships vs. CRADAs, All Federal
Labs, FY 2001-2003

Figure 2.4 Invention Disclosure and Patenting, All Federal Labs, FY
1999-2003

Figure 2.5 Invention Disclosure and Patenting, by Agency, FY 1999-2003

Figure 2.6 Active Licenses, Inventions and Other Intellectual Property,
All Federal Labs,

FY 1999-2003

Figure 2.7 Active Licenses, Inventions and Other Intellectual Property,
by Agency, FY 1999-2003

Figure 2.8 Income from Licensing, All Federal Labs, FY 1999-2003

Figure 2.9 Income from Licensing, by Agency, FY 1999-2003

Table 1.1 -- Overview of the Types of Information on Federal lab
Technology Transfer Collected in

the Annual Reporting Process

Table 2.1 -- Estimated Budget Resources for Federal Lab R&D Spending, FY
2000-2002,

Ranked by Annual Level

Table 2.2 -- Collaborative Relationships for R&D, FY 1999-2003

Table 2.3 -- Invention Disclosure and Patenting, FY 1999-2003

Table 2.4 -- Active Licenses, Inventions and Other Intellectual
Property, FY 1999-2003

Table 2.5 -- Active Licenses, by Type, FY 1999-2003

Table 2.6 -- Income from Licensing, FY 1999-2003

Table 2.7 -- Characteristics of Income Bearing Licenses, FY 1999-2003

Additional data tables (not numbered) appear in the individual agency
sections of Chapter 3.

[]{#Foreword .anchor}

***Foreword***

America's economy and technology sectors lead the world, thanks in large
measure to our well developed capacity for innovation. Even so, the
forces of economic globalization continue to gain momentum and are
changing trade, technology sourcing, capital flows, and the movement of
technical talent in significant ways. Our present leadership
notwithstanding, we are likely in the years ahead to face more
significant challenges to our innovative capacity and long-term
competitiveness than ever before.

In its May 2003 report, the President's Council of Advisors on Science
and Technology (PCAST) emphasized the critical role that transfer of
federally funded research and development results has played in helping
to move ideas from the realm of research into commerce and the
marketplace. Indeed, the effective transfer of federal technology \--
that is, diffusing the new knowledge and inventions created by federal
research and development funds to American firms and entrepreneurs with
the capabilities to translate these advances into commercially
significant products and processes \-- will likely continue to be
essential in sustaining U.S. competitiveness and leadership in the
global economy in the years ahead.

America's federal laboratory system, comprised by world-class scientists
and research facilities, is a key element of the Nation's infrastructure
for innovation. The federal labs offer a critical and fertile resource
for early-stage, high-risk research and development \-- the kind of work
on basic science and basic technology that gives rise to revolutionary
new know-how and technologies with the prospect of important commercial
impacts.

Congress has mandated \-- through several significant pieces of
legislation since 1980 \-- that part of the federal labs\' mission be to
promote the transfer of federal technology. And, indeed, federal lab
technology transfer activities to date have contributed significantly to
the national technology transfer success story the PCAST report
describes.

Recognizing the importance of this role and national policymakers'
continued interest that the Nation's technology transfer policies
perform as effectively as possible, Congress has asked the Department of
Commerce to regularly report on the status of technology transfer by the
federal labs. This latest report edition provides current evidence that
the federal labs' participation in the technology transfer process
continues to grow, with numerous examples cited of transferred federal
technology and industry-federal lab research and development cooperation
having provided a basis for new products and processes with commercial
significance and often also enhanced federal lab capabilities.

> Carlos M. Gutierrez
>
> Secretary of Commerce

[]{#Acknowledgments .anchor}***Acknowledgments***

This report was assembled and drafted by the Office of Technology
Policy, Technology Administration, Department of Commerce.

The Office of Technology Policy appreciates the effort and cooperation
of senior technology transfer personnel at the ten federal agencies
whose federal lab technology transfer activities are documented in this
report: the Departments of Agriculture, Defense, Energy, Health and
Human Services, Interior, Transportation, and Veterans Affairs; the
Environmental Protection Agency; and the National Aeronautics and Space
Administration; in addition to the Department of Commerce's own federal
labs.

Questions about the statistics or other content of this report should be
directed to Mark Boroush, Office of Technology Policy, at 202.482.6394.

# *Chapter 1*

# *Purpose and Summary of Major Findings*

## 1.1 Background 

[]{#Ch1background .anchor}

This *Summary Report* provides an updated review and analysis of the
federal laboratories'[^1] utilization of the technology transfer
authorities provided to them under federal law.[^2] This is a new
edition of the annual report series for the President and Congress
established under the Technology Transfer Commercialization Act of 2000
(P.L. 106-404, signed November 1, 2000).[^3] The present report covers
the technology transfer activities of the federal laboratories through
FY 2003.

Periodic reporting to the President and Congress on the vigor of federal
laboratory technology transfer has been a statutory requirement since
1986 under the Stevenson-Wydler Technology Innovation Act of 1980.[^4]
From 1987 through early 2002, the Office of Technology Policy (OTP) at
the Department of Commerce prepared Biennial Reports in response to this
requirement.[^5] In late 2000, the Technology Transfer Commercialization
Act revised and enlarged the existing Stevenson-Wydler Act reporting
process. This revised reporting process took effect in calendar year
2002, in conjunction with the FY 2003 federal budget cycle and agencies'
reports on their FY 2001 technology transfer activities.

Under the new law, reporting responsibilities operate along two tracks.
Each federal agency that operates or directs federal laboratories (or
engages in patenting or licensing of federally owned inventions) is
required to provide the Office of Management and Budget with an annual
report on its technology transfer plans and recent achievements as part
of its annual budget submission.[^6] The Secretary of Commerce
subsequently prepares an overall federal assessment for the President
and Congress based on the program information in these agency
reports.[^7]

In its May 2003 report on the topic, the President's Council of Advisors
on Science and Technology (PCAST) emphasized the critical role that
transfer of federally funded research and development results has and
continues to play in moving ideas from the realm of research into
commerce and the marketplace.[^8] The request for regular public
reporting \-- to which this present report responds \-- reflects
national policymakers' interest in ensuring that the Nation's technology
transfer policies perform as effectively as possible.[^9]

[]{#Ch1method .anchor}**1.2 Scope of this Report**

Ten major federal agencies have significant federal laboratory
operations.[^10] This *Summary Report* provides activity statistics and
other performance information about each:

-   Department of Agriculture (USDA)

-   Department of Commerce (DOC)

######## Department of Defense (DOD)

-   Department of Energy (DOE)

-   Environmental Protection Agency (EPA)

-   Department of Health and Human Services (HHS)

-   Department of the Interior (DOI)

-   National Aeronautics and Space Administration (NASA)

-   Department of Transportation (DOT)

-   Department of Veterans Affairs (VA)

All of these agencies, together with their component divisions, bureaus
and labs, have established programs for transferring the technology
arising out of their ongoing lab science and technology endeavors.

This *Summary Report* draws upon the statistics and other information
provided by the agencies in their individual annual reports to the
Office of Management and Budget. The reporting statute requests the
agencies to discuss the current content of and plans for their
technology transfer programs. Each is also asked to provide statistics
for a set of core technology transfer activity measures (see Table 1.1),
including the incidence of collaborative relationships for research and
development (such as Cooperative Research and Development Agreements)
and frequently cited indicators of intellectual property management such
as invention disclosure, patenting, and licensing.

**Table 1.1 -- Overview of the Types of Information on Federal Lab
Technology Transfer Collected in the Annual Reporting Process**

+-----------+-------------------+--------------------------------------+
|           | **Category of     | **Tech Transfer Measures Discussed** |
|           | Federal Lab Tech  |                                      |
|           | Transfer          |                                      |
|           | Activity**        |                                      |
+-----------+-------------------+--------------------------------------+
| A         | Collaborative     | ▪ Cooperative Research and           |
| CTIVITIES | research &        | Development Agreements (CRADAs)      |
|           | development       |                                      |
|           | relationships     | ▪ Other types of collaborative       |
|           |                   | research and development             |
|           |                   | relationships                        |
+-----------+-------------------+--------------------------------------+
|           | Intellectual      | ▪ Invention disclosure               |
|           | property          |                                      |
|           | management        | ▪ Patenting                          |
|           |                   |                                      |
|           |                   | \- Patent applications               |
|           |                   |                                      |
|           |                   | \- Patents received                  |
|           |                   |                                      |
|           |                   | ▪ Licensing: lab inventions and      |
|           |                   | other intellectual property          |
|           |                   |                                      |
|           |                   | \- Licensing levels                  |
|           |                   |                                      |
|           |                   | \- License management                |
|           |                   |                                      |
|           |                   | \- Licensing income                  |
|           |                   |                                      |
|           |                   | Total income                         |
|           |                   |                                      |
|           |                   | Royalty income                       |
|           |                   |                                      |
|           |                   | Disposition of income                |
+-----------+-------------------+--------------------------------------+
|           | Other activity    | ▪ As identified and discussed by the |
|           | measures          | agencies                             |
+-----------+-------------------+--------------------------------------+
| D         |                   | ▪ Case examples provided by the      |
| OWNSTREAM |                   | agencies                             |
|           |                   |                                      |
| OUTCOMES  |                   |                                      |
+-----------+-------------------+--------------------------------------+

The content of the agency reports \-- and concomitantly this *Summary
Report* \-- builds on that established over the years by OTP and the
agencies in preparing the (aforementioned) Biennial Reports, as well as
responding to new data requirements identified by the Technology
Transfer Commercialization Act. To ensure consistency across the
agencies in the nature and statistical content of these reports, OTP
worked closely with them throughout 2001 \-- chiefly through the
Interagency Working Group on Technology Transfer[^11] \-- to develop a
common report content and format.[^12] The statistics on licensing have
been expanded in response to the requirements of the Technology Transfer
Commercialization Act to include greater detail on license management
and licensing income. The agencies were again asked, in response to
strong congressional and administration interest, to provide information
about the "downstream outcomes" of their technology transfer activities:
such as new products in the commercial marketplace, improved private
industry production processes, improved capabilities and technologies
that flow back into the federal labs as a result of technology transfer
relationships with outside organizations.

A short summary of the report's key findings follows. Chapter 2 analyzes
the trends in federal technology transfer activities within and across
the federal lab agencies over the past five years. Chapter 3 is
organized by agency and summarizes key information from each agency's
annual report for FY 2003. These summaries tabulate key technology
transfer activity statistics, and discuss the technology transfer
outcome cases submitted by the agency. The Appendix comments on the
agencies' recent progress in improving performance metrics for their
technology transfer programs.

##### **1.3 Principal Findings**

[]{#Ch1findings .anchor}

● ***Recent Trends in Federal Lab Technology Transfer Activity Levels***

*Collaborative Research and Development Relationships*

Relationships for cooperative research and development (R&D) between
federal laboratories and outside partners (such as private companies,
universities, units of state or local government, non-profit
institutions, or other non-federal organizations) are widely viewed as
conducive settings for technology transfer. Beyond the new know-how and
new technology that may result, these joint efforts can often confer a
mutually advantageous leveraging of partners' resources and technical
capabilities, as well as avenues for a partner to gain new competences
and absorb a portion of the skills of its partnership colleagues.

One frequently used mechanism for establishing these joint relationships
is the *Cooperative Research and Development Agreement* (CRADA), which
was legislated by the Congress in the late-1980s to encourage the
federal labs to participate in R&D partnerships for the purpose of
advancing promising technologies toward commercialization. Although,
CRADAs are not the only way through which federal labs can engage in
cooperative R&D, as *other types of collaborative R&D relationships* are
possible.

\-- The CRADA mechanism is multifaceted and can be used to address
several kinds of transfer and intellectual protection needs. Beginning
this year, the statistics are presented to draw a clearer distinction
between "traditional" applications of the CRADA (i.e., collaborative R&D
activities between a federal lab and one or more non-federal partners)
and "non-traditional" applications (i.e., use of the CRADA mechanism for
special purpose applications such as to transfer materials or facilitate
technical assistance activities that may yield information needing
intellectual property protection).

\-- This year's statistics for the federal labs as a whole places the
level of traditional CRADAs active in FY 2003 at 2,936; the
corresponding level for non-traditional CRADAs is 2,615. The total
number of traditional CRADAs has been a fairly stable 2,800-3,000 active
CRADAS in each of the last five years (FY 1999-2003). Furthermore, the
annual flow of newly executed traditional CRADAs has remained vigorous:
some 700-950 new agreements initiated each year. The most noticeable
development over this period has been the sharp increase in the use of
the CRADA mechanism for special purposes: around 200 active
non-traditional CRADAs in FYs 1999 and 2000, but expanding sharply to
levels of 2,500-2,600 in FYs 2002 and 2003.

\-- DOD accounted for 52% of all active traditional CRADAs in FY 2003;
DOE for 23%; HHS and USDA for 8-9% each (together totaling about 91% of
all federal lab CRADAs). Only three of the agencies reported active
non-traditional CRADAs: DOC was by far the most, accounting for 70% in
FY 2003; DOD, 24% and HHS, 6%. (In interpreting these share figures
across the agencies, it is essential to recognize that agencies like
DOD, DOE, HHS, and NASA have far greater budget support for their
federal lab operations than the other agencies \-- accounting together
for about 85% of all federal lab R&D support in recent years.[^13])

\-- A more varied picture emerges when the analysis delves below the
aggregate, to look at agency-by-agency trends. For traditional CRADAs,
the total active level has increased somewhat over the last five years
at DOD, EPA, DOT, and the VA. The trend at DOE, HHS, USDA has been slow
decline, and sharp decline at DOC. For non-traditional CRADAs, the
standout trend has been the large increase over the last two years at
DOC.

\-- The revised annual reporting process starting in FY 2001 provided
the agencies with an opportunity to identify collaborative R&D
relationships other than CRADAs and to comment on their contributions to
the agency's technology transfer program. Three agencies have, thus far,
acted to provide this kind of information: USDA, DOC, and NASA. It
appears that other agencies may also do so in future reporting cycles.
Data collection on this topic remains at an early stage, but should
improve in future cycles. Interestingly, however, the latest data
tallies some 5,639 active relationships in FY 2003 \-- well more than
both the 2,936 and 2,615 federal lab totals reported in FY 2003 for,
respectively, traditional CRADAs and non-traditional CRADAs.

[]{.mark}

*Invention Disclosure and Patenting*

Federal lab activities in the areas of *invention disclosure* and
*patenting* (including both patents applied for and patents received)
are often cited as indictors of the labs' active management of
intellectual assets and technical know-how.

\-- This year's statistics for the federal labs as a whole places total
invention disclosures in FY 2003 at 4,348; total patent applications at
2,242; and total patent issues at 1,607. There has been a gradual
increase in this aggregate level of invention disclosure throughout the
last five years (FY 1999-2003). Although, the corresponding levels of
patent applications and patent issues have each been more nearly flat
over the same period.

\-- DOD and DOE together accounted for about 65% of the federal labs'
total for invention disclosures in FY 2003, 75% of the total patent
applications, and 78% of the total patent issues. Adding the
contributions of HHS and NASA brings these totals, respectively, to 93%,
94%, 96%. The contributions of the other six agencies (USDA, DOC, DOI,
VA, EPA, and DOT) reflect the small remainder for each of these
indicators. (See also footnote 13 earlier for statistics on the relative
size of the budget support for these agencies' federal labs.)

\-- A somewhat more varied set of trends is evident when the agencies
are considered separately. For the four agencies that account for most
of the activity in this realm, invention disclosures have exhibited a
generally increasing trend over the last five years at DOD, HHS, and
NASA \-- although the trend has been more nearly flat at DOE. DOD, DOE,
and HHS have exhibited some increases in annual levels of patent
applications and patent issues; NASA patent applications and patent
issues have been more nearly flat over the same period.

*Licensing*

Licensing is one the chief mechanisms through which inventions and other
intellectual property resulting from agency supported R&D can be
transferred to outside parties to promote further development,
utilization, and commercialization.

The licensing statistics distinguish several types (and several
subclasses) of licenses: "inventions" (e.g., licenses of patented
inventions, material transfer licenses for inventions) and "other
intellectual property" (e.g., licenses of copyrighted intellectual
property, material transfer licenses for non-inventions).

\-- This report's latest round of statistics for the federal labs as a
whole indicates 6,443 licenses were active in FY 2003. Of these, 3,656
were invention licenses (the vast majority, patent licenses); 2,787 were
other IP licenses (around two thirds, copyright licenses). The broad
pattern has been substantial growth in overall federal lab licensing
over the last five years (FY 1999-2003).

\-- DOE licenses accounted for about 57% of the federal lab total in FY
2003; HHS, for 21%; NASA, for 8%; DOD, for 6%; USDA, for 4% (these all
sum together to 96% of the federal lab total). The rest of the agencies
(DOC, DOI, VA, EPA, and DOT) accounted for the small remaining fraction
of the federal lab total. (See also footnote 13 earlier for statistics
on the relative size of the budget support for these agencies' federal
labs.)

\-- In keeping the trends in other technology transfer realms, there are
both similarities and differences across the agencies in emphases. For
most of the agencies, the current license portfolio is overwhelmingly
invention licenses, and, at that, predominantly patent licenses. Most of
the agencies have small to zero levels of other IP licenses. DOE is the
exception to this trend, where the current level (FY 2003) of active
other IP licenses is double that of invention licenses. Beyond the
already mentioned large differences between DOE, HHS and the rest of the
agencies in the level of licensing, for most all of the agencies, the
level of active licenses has been either growing (DOE, HHS, NASA, and
USDA) or remained largely flat over the last five years (DOC, DOD, VA,
EPA, and DOT).

\-- Total license income for all the federal labs together in FY 2003
amounted to \$96.8 million. Most all of this income arose from invention
licenses (\$93.9 million); only a little from other IP licenses (\$3.2
million). Furthermore, the level of income has been increasing at a
significant pace over the last five years. About 49% of this income came
in the form of earned royalties. For the federal labs as a whole, some
62% of the 6,443 licenses active in FY 2003 were income bearing in some
way. Around three quarters of these income bearing licenses were
non-exclusive.

\-- HHS licenses accounted for 56% of all federal lab income in FY 2003,
no doubt reflecting the comparatively high economic value and strong
commercialization opportunities associated with new technologies in the
biosciences realm. DOE licenses accounted for 27% of total income; DOD,
10%; NASA, 3%; and USDA, 2%. The rest of the agencies represented far
smaller shares.

\-- Most all of the agencies derive the preponderance of their license
income from invention licenses. Only DOE, HHS, and NASA indicated income
from other IP licenses. DOE is exceptional in that other IP licenses
accounted for as much as 8% of the agency's license income total in FY
2003. There is variability among the agencies with respect to the
fraction of all licenses that are income bearing; the incidence of
exclusive, partially exclusive, and non-exclusive licenses; and the
extent to which annual license income results from earned royalties

\-- The agencies that account for the lion's share of license income \--
HHS, DOE, DOD, and NASA \-- have all exhibited consistent growth in
license income over the last five years. Year-to-year growth has been
less consistent over the same period for most of the other agencies. In
fact, the five year pattern for DOC and DOT has more nearly been one of
declining license income.

# ● *Downstream Outcomes from Federal Lab Technology Transfer* 

# 

# All of the agencies now regularly provide selected cases of downstream outcomes (success stories) from their technology transfer activities as part of their annual reporting. 

# 

# Across all the agency reports this year, some 112 cases are documented \-- summaries of which appear in the agency sections in Chapter 3 of this report. The cases illustrate a variety of outcome types: including new technologies and know-how resulting from cooperative research and development between federal labs and industry partners, licensing of federal lab inventions and other intellectual property to private companies for further development and commercialization, improvements in federal lab capabilities from cooperative research and development relationships and licensing activities. 

# 

# This growing case record continues to indicate that federal technology transfer mechanisms are helping to move federal lab science and technology to the outside and are having useful impacts in the commercial marketplace and on the well-being of U.S. citizens. 

● ***Agency Progress in Improving Performance Metrics***

There have been a number of improvements since last report. Agency
responsiveness to the annual reporting requirement of the Technology
Transfer Commercialization Act has generally improved since the first
cycle under the new process in FY 2001. Some of this is progress up the
learning curve; some, stronger encouragement from the Office of
Management and Budget (guidelines for the reporting are now included in
OMB's Circular A-11); also, many of the agencies have been working to
improve their management information systems to enable timely and
reliable presentation of the data requested by the technology transfer
reporting process. Incremental improvements are being made in the
standardized data collection instrument which provides guidance to the
agencies in preparing annual reports based on the experience of previous
reporting cycles. These improvements have included expanded opportunity
for agencies to include data for activity metrics in technology transfer
areas beyond the conventional realms of cooperative R&D, invention
disclosure/patenting, and licensing.

The outstanding performance metrics challenges remain, as they have for
some time, in the areas of measuring downstream impacts from the federal
labs' technology transfer activities and in identifying and using
measures that can help technology transfer managers better understand
the effectiveness and productivity of the programs they operate. In
general, it remains far easier to assemble statistics on technology
transfer activities (e.g., CRADAs established, patents received,
licenses executed) than it is to measure downstream benefits and the
effectiveness of implemented federal lab programs for technology
transfer.

As noted just above, the agencies now regularly provide a selected set
of cases that illustrate kinds of downstream impacts their technology
transfer activities are having. But the analytical effort continues to
emphasize case histories, with little attention to systematic
quantitative measures. Likewise, there is only a little information
collected currently by the federal labs that addresses technology
transfer program effectiveness and productivity.

# *Chapter 2* 

# *Recent Trends in Federal Lab Technology Transfer*

This chapter broadly highlights the major trends in federal lab
technology transfer activities evident in the annual reporting data
available for FY 1999-2003. The statistics address both federal lab
system as a whole and comparatively across the ten agencies with federal
laboratory systems.

This chapter's analysis draws on the activity and outcome information
provided by the agencies in their annual reports on federal lab
technology transfer for FY 2003 (summaries of which are available in
Chapter 3). The discussion covers all of the principal measurement areas
listed earlier in Table 1.1: cooperative R&D relationships, patenting,
licensing of intellectual property, and downstream outcomes arising from
these transfer relationships.

Before turning to what this information shows, several orienting points
are important to remember when considering this data on a time-series
and comparative cross-agency basis:

● One of the challenges in identifying valid trends in time series data
for technology transfer activity measures is that single year-to-year
comparisons can be misleading. Performance is influenced by complex
factors, notably, the often irregular pace at which ongoing R&D yields
new knowledge, inventions, and, thereby, opportunities for technology
transfer. Trends evident over several years, or longer, normally will
provide a sounder basis for useful conclusions.

● Considerable differences exist among the agencies in the level of
budget resources to support federal lab science and technology -- which
ultimately influences the resources available to support lab technology
transfer activities.[^14]

As Table 2.1 indicates, DOD receives by far the greatest level of budget
support for its federal lab operations: about 36% of all federal
spending for federal lab R&D in FY 2002 (the most recent year for which
published figures are available). Federal lab operations at DOE and HHS
also receive sizable budget support, but both are about half the DOD
level. NASA is a third of the DOD level. USDA and DOC are, respectively,
a seventh and a tenth of the DOD level. The rest of the agencies (DOI,
VA, EPA, and DOT) are substantially smaller.

Many of the activity statistics cited throughout this chapter indicate
that DOD, DOE, HHS, and NASA dominate federal lab technology transfer by
a wide margin \-- accounting for 90% or more of the federal lab totals,
depending on the measure. In keeping with the above, this is not
surprising, since these four agencies account for about 85% of all
federal lab R&D spending.

● Beyond the comparative level of budget resources, there are also some
differences among the agencies in the nature and intensity of particular
technology transfer activities that reflect differences in the types of
technology transfer authorities allowed, the agency mission, the
strategy to achieve mission, and associated program priorities.

● A final consideration is that the new annual reporting process has
continued to evolve since its first cycle in FY 2001, as have the agency
responses to its needs.[^15] This adds some complexity when the annual
data is used for time series analysis purposes. (Although, this is not
universal across the data from all agencies, and any effects on the
numbers are not readily generalized.)

**Table 2.1 -- Estimated Budget Resources for Federal Lab R&D Spending,
FY 2000-2002,**

**Ranked by Annual Level**

+-----------+--------+---------+-------+---------+-------+---------+
| **Dep     | **FY   |         | **FY  |         | **FY  |         |
| artment** | 2000** |         | 2     |         | 2     |         |
|           |        |         | 001** |         | 002** |         |
+-----------+--------+---------+-------+---------+-------+---------+
|           | *      | **Obli  | **    | **Obli  | **    | **Obli  |
|           | *Total | gations | Total | gations | Total | gations |
|           | O      | \--**   | Obl   | \--**   | Obl   | \--**   |
|           | bligat |         | igati |         | igati |         |
|           | ions** | **      | ons** | **      | ons** | **      |
|           |        | Federal |       | Federal |       | Federal |
|           | (m     | L       | (mi   | L       | (mi   | L       |
|           | illion | abs\*** | llion | abs\*** | llion | abs\*** |
|           | \$)    |         | \$)   |         | \$)   |         |
|           |        | (       |       | (       |       | (       |
|           |        | million |       | million |       | million |
|           |        | \$)     |       | \$)     |       | \$)     |
+-----------+--------+---------+-------+---------+-------+---------+
| Defense   | \$     | \$8,870 | \$3   | \$9,595 | \$3   | \$8.874 |
|           | 33,167 |         | 6,334 |         | 4,235 |         |
+-----------+--------+---------+-------+---------+-------+---------+
| Energy    | 6,063  | 4,378   | 6,712 | 4,768   | 6,322 | 4,537   |
+-----------+--------+---------+-------+---------+-------+---------+
| HHS       | 18,426 | 3,595   | 2     | 4,048   | 2     | 4,514   |
|           |        |         | 1,355 |         | 3,816 |         |
+-----------+--------+---------+-------+---------+-------+---------+
| NASA      | 6,882  | 2,923   | 7,221 | 3,142   | 7,259 | 3,020   |
+-----------+--------+---------+-------+---------+-------+---------+
| Ag        | 1,747  | 1,152   | 1,980 | 1,257   | 1,806 | 1,268   |
| riculture |        |         |       |         |       |         |
+-----------+--------+---------+-------+---------+-------+---------+
| Commerce  | 1,037  | 755     | 1,112 | 865     | 1,112 | 912     |
+-----------+--------+---------+-------+---------+-------+---------+
| Interior  | 580    | 506     | 624   | 538     | 564   | 497     |
+-----------+--------+---------+-------+---------+-------+---------+
| Veterans  | 342    | 342     | 350   | 350     | 360   | 360     |
| Affairs   |        |         |       |         |       |         |
+-----------+--------+---------+-------+---------+-------+---------+
| EPA       | 523    | 320     | 608   | 342     | 556   | 321     |
+-----------+--------+---------+-------+---------+-------+---------+
| Trans     | 467    | 198     | 609   | 215     | 585   | 237     |
| portation |        |         |       |         |       |         |
+-----------+--------+---------+-------+---------+-------+---------+

> Budget figures include spending for basic research, applied research,
> development, R&D facilities and equipment. Budget "authority" and
> "obligations" measure spending in different ways. "Obligations" are
> reported here, rather than the more frequently cited "budget
> authority" figures, since the latter generally do not distinguish
> spending on federal lab activities from extramural performers (e.g.,
> universities).
>
> \*"FY 2000 Obligations -- Federal Labs" sums spending for federal
> research by intramural performers and all federally funded research
> and development centers (FFRDCs). This sum is used as a measure of
> federal lab budget resources \-- and is the basis for the above
> ranking of the departments.
>
> Source: National Science Foundation, *Federal Obligations for Total
> Research and Development, by Major Agency and Performer, 1951-2002*.
> The figures for FY 2001 and 2002 are listed by NSF as "preliminary."
> FY 2002 is the most recent year for which published data is available.

[]{#Ch2CRADAs .anchor}**2.1 Collaborative Research and Development
Relationships**

Relationships for cooperative R&D between federal laboratories and
outside partners (such as private companies, universities, units of
state or local government, non-profit institutions, or other non-federal
organizations) are widely viewed as fertile settings for technology
transfer. Beyond the new know-how and new technology that may result,
these joint efforts can often confer a mutually advantageous leveraging
of partners' resources and technical capabilities, as well as avenues
for a partner to gain new competences and absorb a portion of the skills
of its partnership colleagues.

One frequently used mechanism for establishing these joint relationships
is the *Cooperative Research and Development Agreement* (CRADA), which
was legislated by the Congress in the late-1980s to encourage the
federal labs to participate in R&D partnerships for the purpose of
advancing promising technologies toward commercialization.[^16]
Although, CRADAs are not the only way in which federal labs can engage
in cooperative R&D, as *other types of collaborative R&D relationships*
are possible.

■ ***Cooperative Research and Development Agreements***

![](media/image1.wmf){width="6.459027777777778in"
height="4.027083333333334in"}

Figure 2.1 and Table 2.2 provide statistics on the federal labs' use of
the CRADA mechanism over the last five years (FY 1999-2003). This
information addresses both the federal labs as an aggregate whole (i.e.,
total activity for all ten agencies summed together) and each agency
separately.

These statistics also distinguish "traditional" and "non-traditional"
CRADAs. The CRADA mechanism is multifaceted and can be used to address
several kinds of technology transfer and intellectual property
protection needs. The "traditional" category refers to the most
straightforward application, namely, collaborative R&D activities
between a federal lab and one or more non-federal partners. The
"non-traditional" category refers to special purpose applications of the
CRADA mechanism, such as to transfer materials or to facilitate
technical assistance activities that may yield information needing
intellectual property protection.

**Table 2.2 -- Collaborative Relationships for R&D, FY 1999-2003**

![](media/image2.wmf){width="6.495138888888889in"
height="5.398611111111111in"}

![](media/image3.wmf){width="6.495138888888889in"
height="6.472222222222222in"}

All the federal labs taken together, the total number of traditional
CRADAs (Figure 2.1) has been fairly stable over the last five years (FY
1999-2003): in the range of 2,800-3,000 CRADAs active each year.
Furthermore, the annual flow of newly executed traditional CRADAs has
remained vigorous: some 700-950 new agreements initiated each year.

The most visible departure over this period is the sharp increase in use
of the CRADA mechanism for special purposes other than cooperative R&D.
Again, for all the federal labs together, in FYs 1999 and 2000, there
were around 200 active non-traditional CRADA. However, in FYs 2002 and
2003, the total active figure had reached 2,500-2,600. This represents a
sharp expansion in a short period of time \-- up to nearly the current
level of total active traditional CRADAs.

![](media/image4.wmf){width="6.466666666666667in"
height="3.658333333333333in"}

![](media/image5.wmf){width="6.466666666666667in"
height="3.658333333333333in"}

![](media/image6.wmf){width="6.471527777777778in"
height="3.657638888888889in"}

![](media/image7.wmf){width="6.471527777777778in"
height="3.6597222222222223in"}

![](media/image8.wmf){width="6.467361111111111in"
height="3.6597222222222223in"}

DOD is by far the most prolific when it comes to traditional CRADAs; it
accounted for 52% of all active federal lab CRADAs in FY 2003. DoE
accounted for 23%; HHS and USDA, each for 8-9%. CRADA use at the other
agencies (DOC, DOI, VA, EPA, and DOT) is significantly smaller. NASA is
an exception among the agencies, with its lack of use of the CRADA
mechanism \-- although for a reason.[^17] These relative shares have
remained largely unchanged over the last five years.

With respect to non-traditional CRADAs, DOC accounted for almost 70% of
federal lab agreements of this type active in FY 2003. DOD, 24%; HHS,
6%. The other agencies either did not use this type of CRADA (DOE, NASA,
VA, DOT) or accounted for very little of the all federal lab total (EPA,
USDA).

This aggregate picture masks, however, a diverse mix of year-to-year
changes when each agency's CRADA use is viewed separately (Table 2.2 and
Figures 2.2 a-e).

For traditional CRADAs, the total active level has increased somewhat
over the recent five year period at DOD, EPA, DOT, and VA. By contrast,
the trend at DOE, HHS, and USDA has been slow decline. At DOC, the total
active level has declined precipitously over the five year period \--
standing in FY 2003 at about a third of the total active level in FY
1999.

For non-traditional CRADAs, the standout trend has been the large
increase in the last two years at DOC. The other noticeable trends are a
slow increase over the five year period at DOD and slow decline at HHS.

■ ***Other Types of Collaborative R&D Relationships***

As noted earlier, CRADAs are not the only mechanism through which
cooperative R&D relationships can be established between federal labs
and non-federal partners. Commencing with the revised federal lab
technology transfer reporting process in FY 2001, the agencies have had
an opportunity to identify the use of such alternative mechanisms and to
comment on their contribution to the agency's technology transfer
program.

A few of the agencies now indicate their use of such alternative
approaches: USDA, DOC, and NASA. Although, these reflect a wide variety
in types of relationships (see tabulation below).

Figure 2.3 provides totals for these "other collaborative R&D
relationships" across all the federal labs together for FY 2001-2003.
(Comparable figures for traditional and non-traditional CRADAs active in
those years are also provided, as points of comparison.)

Obviously, there is currently a large volume of these "other cooperative
R&D relationships" \-- well beyond the totals of active CRADAs. On the
other hand, it is difficult to yet discern trends in these reported
statistics, since it is presently unclear that all the agencies are
reporting comprehensively on the level of use of these mechanisms
(several additional cycles of reporting will likely be needed to develop
a data record that can be a basis for analysis).

![](media/image9.wmf){width="6.465972222222222in"
height="3.6597222222222223in"}

● *Department of Agriculture (Agricultural Research Service)*

\- Trust fund agreements

> \- Reimbursable agreements
>
> \- Material transfer agreements
>
> A *Trust Fund Cooperative Agreement* involves cooperative research
> between the Agricultural Research Service (ARS) and another party in
> which ARS is paid in advance to conduct research and the exclusivity
> of resulting intellectual property is not a priority for the
> cooperating party. This agreement may also request the private-sector
> partner to share in the cost of a research project conducted by ARS.
> The agreement can also be used to allow private-sector partners the
> use of laboratory facilities, which in some cases may require a formal
> lease. A *Reimbursable Cooperative Agreement* is like a Trust Fund
> Agreement in arrears; the private-sector partner pays ARS the
> difference. For either agreement, both the private-sector partner and
> ARS should be actively engaged in the cooperative effort, mutually
> contribute resources to the research effort, and specifically state
> mutual interest in the agreement's objectives. *Material transfer
> agreements* established by ARS also provide a basis for cooperative
> R&D with outside partners.

● *Department of Commerce (National Institute of Standards and
Technology)*

> \- Facility use agreements
>
> \- Guest scientists and engineers
>
> \- Collaborative standards contributions
>
> Each year, numerous researchers visit NIST to participate in
> collaborative projects and/or to use NIST's research facilities. NIST
> makes its facilities available for limited periods to domestic guest
> researchers to collaborate with NIST staff on R&D projects of mutual
> interest or to transfer NIST techniques, procedures, and best
> practices. NIST provides neither direct salary nor subsistence support
> to domestic guest researchers. NIST's Foreign Guest Researcher Program
> offers scientists from around the world the opportunity to work
> collaboratively with researchers in the NIST laboratories. Foreign
> guest researchers enter into clearly defined Guest Researcher
> Agreements that describe the proposed research project and its mutual
> benefit to the guest researcher and the NIST host. The majority of
> foreign guest researchers receive no stipend from NIST. However, NIST
> has the authority to pay financial assistance to foreign guest
> researchers when such payment would facilitate a NIST program.

● *National Aeronautics and Space Administration*

> \- Space Act agreements
>
> \- Jet Propulsion Laboratory tasks
>
> \- Software usage agreements
>
> NASA enters into collaborative R&D relationships through the use of
> *Space Act agreements*. Collaborative R&D also occurs through certain
> *Jet Propulsion Lab contracts* and through *software agreements*
> executed with industry.

Numerical statistics on all these measures appear in the respective
agency sections in Chapter 3 of this report.

[]{#Ch2InvDisPat .anchor}**2.2 Invention Disclosure and Patenting**

Federal lab activities in the areas of *invention disclosure* and
*patenting* (including patents applied for and patents received) are
often cited as indicators of the labs' active management of intellectual
assets and technical know-how.[^18]

![](media/image10.wmf){width="6.472222222222222in" height="3.65625in"}

For all of the federal labs totaled together, there has been a gradual
increase over the last five years (FY 1999-2003) in the level of
invention disclosure (Figure 2.4). Although, the levels of patent
applications and patent issues have been more nearly flat over the same
period. The FY 2003 figures place total invention disclosures at 4,348;
total patent applications at 2,242; and total patent issues at 1,607
(Figure 2.4). All are at the highest levels for these indicators
reported over the last five years.

Unsurprisingly, the agencies with the larger federal laboratory systems
dominate these activity categories (Table 2.3). DOD and DOE account by
far for most of these totals: 31% and 34%, respectively, of all
invention disclosures that year; 36% and 39% of all patent applications;
and of 39% and 39% of patent issues. HHS and NASA activities are also
sizable, although at levels well below those of DOD and DOE: 11% and
17%, respectively, of all invention disclosures; 12% and 7% of all
patent applications; and 9% and 9% of all patent issues. The modest
remainder in each case includes the other six agencies (USDA, DOC, DOI,
VA, EPA, and DOT). These agency shares

**Table 2.3 -- Invention Disclosure and Patenting, FY 1999-2003**

![](media/image11.wmf){width="6.49375in" height="6.721527777777778in"}

have remained roughly the same throughout the last five years.

The trends over this period are more diverse when each agency is
examined separately (Table 2.3 and Figures 2.5 a-e). Invention
disclosures have been generally increasing at DOD, HHS, NASA, and VA
over the last five years. The level has been generally flat or somewhat
declining at the other agencies. Over the same period, DOD, DOE, and HHS
have exhibited some increases in annual levels of patent applications
and/or patent issues. The trends are, for the most, flat or declining at
the other agencies.

![](media/image12.wmf){width="6.466666666666667in"
height="3.658333333333333in"}

![](media/image13.wmf){width="6.466666666666667in"
height="3.658333333333333in"}

![](media/image14.wmf){width="6.471527777777778in"
height="3.6590277777777778in"}

![](media/image15.wmf){width="6.471527777777778in"
height="3.6597222222222223in"}

![](media/image16.wmf){width="6.467361111111111in"
height="3.6597222222222223in"}

[]{#Ch2Licensing .anchor}**2.3 Licensing -- Lab Inventions and Other
Intellectual Property**

Licensing is one the main mechanisms through which inventions and other
intellectual property resulting from agency supported R&D can be
transferred to outside parties to promote commercialization and
utilization.[^19] Licensing is widely employed by the federal labs as a
technology transfer tool.

The tables and charts below provide several perspectives on the level of
the federal labs' licensing activities, the types of licenses in place,
and the annual income derived (if any) from these licenses. In keeping
with current convention, the licensing statistics distinguish
*inventions* and *other intellectual property*.[^20] Several subclasses
of licenses are also distinguished under each of these two basic
categories.[^21]

■ ***Licensing Levels***

![](media/image17.wmf){width="6.46875in" height="3.6590277777777778in"}

For the federal labs together, these statistics (Figure 2.6) indicate
there were 6,443 licenses active in FY 2003. Of these, 3,656 are
invention licenses (the vast majority are patent licenses); 2,787 are
other IP licenses (around two thirds of these are copyright licenses).
The general pattern has been substantial growth in licensing over the
last five years. (Although, some of the year-to-year growth evident in
the chart, particularly in the last several years, reflects more
comprehensive reporting by the agencies and the inclusion of a wider set
of license categories since FY 2002).

Again, a few of the agencies dominate the overall federal lab picture.
DOE licenses accounted for about 57% of the federal lab total in FY
2003. HHS accounted for 21%; NASA for 8%; DOD for 6%; USDA for 4%. The
rest of the agencies (DOC, DOI, VA, EPA, and DOT) accounted for only a
small fraction of the federal lab total.

As with the other technology transfer activity areas, there are both
similarities and differences across the agencies in emphases (Table 2.4,
Table 2.5, Figures 2.7a-e).

For most of the agencies, the current license portfolio is
overwhelmingly invention licenses \-- and, at that, predominantly patent
licenses (Table 2.5). Most of the agencies have small to zero levels of
other IP licenses. DOE is the exception to this trend, where the current
level (FY 2003) of active other IP license is double that of invention
licenses.[^22]

Beyond the already mentioned large differences between DOE, HHS and the
rest of the agencies in the level of licensing, for most all of the
agencies, the level of active licenses has either growing or remained
stable over the last five years (Figure 2.7a-e).

**Table 2.4 -- Active Licenses, Inventions and Other Intellectual
Property, FY 1999-2003**

![](media/image18.wmf){width="6.498611111111111in"
height="3.2527777777777778in"}

![](media/image19.wmf){width="6.498611111111111in"
height="8.325694444444444in"}

**Table 2.5 -- Active Licenses, by Type, FY 1999-2003**

![](media/image20.wmf){width="6.49375in" height="7.611111111111111in"}

![](media/image21.wmf){width="6.502777777777778in" height="8.7375in"}

![](media/image22.wmf){width="6.471527777777778in"
height="3.660416666666667in"}

![](media/image23.wmf){width="6.471527777777778in"
height="3.660416666666667in"}

![](media/image24.wmf){width="6.471527777777778in"
height="3.661111111111111in"}

![](media/image25.wmf){width="6.467361111111111in"
height="3.657638888888889in"}

![](media/image26.wmf){width="6.470138888888889in"
height="3.657638888888889in"}

■ ***Income from Licensing***

![](media/image27.wmf){width="6.469444444444444in"
height="3.657638888888889in"}

Figure 2.8, Tables 2.6 and 2.7, Figures 2.9a-e provide several
perspectives on the income the federal

labs have received annually from active licenses over the last several
years.[^23]

For the federal labs as a whole, some 62% of the 6,443 licenses active
in FY 2003 were income bearing in some way. Around three quarters of
these income bearing licenses were non-exclusive (Table 2.7).

Total license income for all the federal labs together in FY 2003
amounted to \$96.8 million (Figure 2.8, Table 2.6). Nearly all of this
income arose from invention licenses (\$93.9 million); only a little
(\$3.2 million) from other IP licenses (Table 2.6). Furthermore, the
level of this income has been expanding at a significant pace over the
last five years (Figure 2.8). About 49% of this income came in the form
of earned royalties.

There are both similarities and differences when the circumstances of
the separate agencies are considered.

HHS licenses accounted for 56% of all Fed lab income in FY 2003 \--
reflecting comparatively high economic value and strong
commercialization opportunities associated with new technologies in the
biosciences realm. DOE licenses accounted for 27% of total income; DOD,
10%; NASA, 3%; and USDA, 2%. The rest of the agencies represented far
smaller shares. This pattern of relative agency roles has remained
largely the same over the last several years.

Most all of the agencies derive most of their license income from
invention licenses. Only DOE, HHS, and NASA report income from other IP
licenses (Table 2.6). DOE is exceptional in that other IP licenses
accounted for as much as 8% of the agency's license income total in FY
2003 (similar figures have prevailed in previous years).

There is variability among the agencies with respect to the fraction of
all licenses that are income bearing; the incidence of exclusive,
partially exclusive, and non-exclusive licenses; and the extent to which
annual license income results from earned royalties (Table 2.6)

The agencies that account for most of the license income \-- HHS, DOE,
DOD, and NASA \-- have all exhibited consistent growth in license income
over the last five years (Table 2.6, Figures 2.9a-e). Year to year
growth has been less consistent over the same period for the other
agencies. In fact, the five year pattern has been nearly one of
declining license income for DOC and DOT.

**Table 2.6 -- Income from Licensing, FY 1999-2003**

![](media/image28.wmf){width="6.495138888888889in"
height="8.379166666666666in"}

**Table 2.7 -- Characteristics of Income Bearing Licenses, FY
1999-2003**

![](media/image29.wmf){width="6.49375in" height="8.069444444444445in"}

![](media/image30.wmf){width="6.49375in" height="2.8666666666666667in"}

![](media/image31.wmf){width="6.469444444444444in"
height="3.660416666666667in"}

![](media/image32.wmf){width="6.469444444444444in"
height="3.657638888888889in"}

![](media/image33.wmf){width="6.469444444444444in"
height="3.6597222222222223in"}

![](media/image34.wmf){width="6.472916666666666in"
height="3.657638888888889in"}

![](media/image35.wmf){width="6.472916666666666in"
height="3.657638888888889in"}

■ ***Disposition of License Income***

As part of the revised annual reporting process under the Technology
Transfer Commercialization Act, the federal labs (starting with the FY
2001 reporting), the federal labs were asked to provide data on their
disposition of income derived from invention licenses active in the
fiscal year \-- that is, license income dollars distributed to various
types of recipients (e.g., inventors, within-agency uses).

Nine of the ten reporting agencies provided data for FY 2003 on the
issue. The fraction of license income distributed "to inventors"
continues to vary widely across the agencies: from zero to 68% (among
the reporting agencies). And, for most of the agencies, the remainder of
disposed income was directed to internal purposes such as "additional
R&D," "patent filing expenses," or "other fees."

Agency by agency details on these measures can be found in the agency
sections of Chapter 3.

■ ***License Management Issues***

The revised annual reporting process established under the Technology
Transfer Commercialization Act requested the federal labs (starting with
the FY 2001 reporting) to provide annual performance information on some
license management issues. The specific items are:

● *Elapsed time for licenses executed in the fiscal year*

● *Licenses terminated for cause in the fiscal year*

Most of the agencies now provide this information (with a focus on
invention licenses). Agency by agency figures for FY 2001-2003 can be
found in the agency summary sections of Chapter 3.

In general, there are wide differences in the agency experiences: e.g.,
the [average]{.underline} elapsed time for execution (among the agencies
reporting) in FY 2003 ranged from 1.4 to 10.1 months; the minimum time
was only a few days, the maximum was 39.3 months; there is little
suggestion of a trend change in these times over the three fiscal years
for which data is now available.

[]{#Ch2OtherMeasures .anchor}**2.4 Other Activity Measures**

The revised reporting process in place since FY 2001 provides the
federal labs with opportunity to include data on activity measures
additional to the core items (cooperative R&D, patenting, and licensing)
that thus far have been the focus of this chapter. The labs are free to
identify and discuss such "other" measures, to the extent they are
deemed important for characterizing the overall technology transfer
program.

In the last several years, a growing number of agencies have made a
point of discussing such additional activities. Thus far, however, only
two agencies have incorporated metrics for these "other activities" in
their annual reporting:

● *Department of Commerce*

> \- Standard Reference Materials available
>
> \- Standard Reference Materials sold
>
> \- Standard Reference Data titles available
>
> \- Number of Items Calibrated
>
> \- Technical publications produced

● *Department of Energy*

> \- Work-for-Others agreements
>
> \- User facility agreements, projects

A concise account of these activity measures and the FY 1999-2003
statistics provided can be found in each agency's individual section in
Chapter 3 of this report.

The nature and annual level of these activities vary widely. But, in
most cases, the annual volume is quite large \-- at levels similar to or
greater than those of core technology transfer activities \-- and has
remained so for a number of years.

[]{#Ch2Outcomes .anchor}**2.5 Outcomes from Technology Transfer**

To better understand what outcomes are being achieved from federal lab
technology transfer, the agencies have been invited as part of the
overall annual reporting process (starting with the Department of
Commerce's *Biennial Report* published in May 2002 and continuing on in
the present report) to submit current examples of successful downstream
technology transfer outcomes.

More than 110 such outcome cases were included by the federal labs in
their annual technology transfer reports for FY 2003. These cases are
listed and described later in this *Summary Report* (see the agency
summary sections of Chapter 3).

The agencies were requested to provide a [selected set]{.underline} of
illustrative outcome cases. Accordingly, the cases reported in Chapter 3
[are not]{.underline} an exhaustive tally of all downstream technology
transfer outcomes achieved by the federal labs in FY 2003.

It is often difficult to analytically demonstrate direct connections
between federal lab technology transfer actions and eventual commercial
products/processes, because many actors and actions may be involved
after transfer from a federal lab. Moreover, the actual development and
commercialization of an idea often involves a number of years, so that
tangible results can take some time before becoming apparent. Despite
these challenges to analysis and long term downstream data collection,
many agency technology transfer professionals and other knowledgeable
analysts regard downsteam outcome cases as much better evidence of
technology transfer program performance than the quantitative activity
statistics described earlier in this chapter.

The transfer of federal lab know-how and technology to private industry
partners can provide benefits to the partners and to society in numerous
ways. For example, (1) new technology developed by a federal lab's
scientists and engineers (and protected as intellectual property) might
be licensed to one or more private industry partners that develop and
successfully commercialize new products and processes based on that
technology; (2) new technology or know-how developed as the result of a
cooperative R&D partnership between a federal lab and an industrial
partner may provide new ways for the industrial partner to improve a
product line or production processes; or (3) the same kind of
cooperative federal lab/industry partnership can yield new technology
and know-how that may improve the federal lab's capabilities for its
mission-related work.

All of these kinds of outcomes are illustrated in agency outcome cases
described in Chapter 3.

# *Chapter 3*

# *Summary of Statistics on Technology Transfer Activities and Outcomes Provided by the Agencies in their FY 2003 Annual Reports*

The primary source of data on federal lab technology transfer activities
for this *Summary Report* is each agency's *Annual Utilization Report*
submitted earlier this year in accordance with 15 USC Sec. 3710(f). As
noted in Chapter 1 of this report, each agency is directed to discuss in
these annual documents the agency's present plans for technology
transfer by its federal labs, along with information about recent
program activities.

This chapter seeks to provide a comparable summary of the content of
these ten agency reports. Three main topic areas are addressed:

-   Statistical data on the agency's technology transfer activity levels
    for a number of measures (e.g., cooperative research and development
    relationships, invention disclosure and patenting, and intellectual
    property licensing) for the most recently closed fiscal year
    (FY 2003) and several prior years (chiefly, FY 1999-2002).

-   Reported examples of successful downstream outcomes arising from the
    agency's technology transfer activities (such as new products or
    improved industrial processes available in the marketplace that
    arise from the transfer and commercialization of federal lab
    inventions).

This chapter is not intended to provide an exhaustive account of the
information submitted in the agencies' individual reports.[^24] For
greater detail, reader should consult each agency's primary document;
citations are provided in the sections below.

page

> 3.1 Department of Agriculture
> ...........................................................................[47](#USDA)
>
> 3.2 Department of Commerce
> ............................................................................[57](#DoC)
>
> 3.3 Department of Defense
> ...............................................................................[72](#DoD)
>
> 3.4 Department of Energy
> ..............................................................................\...[80](#DoE)
>
> 3.5 Environmental Protection Agency
> ...............................................................\....[100](#EPA)
>
> 3.6 Department of Health and Human Services
> ...................................................\...[106](#HHS)
>
> 3.7 Department of the Interior
> ..........................................................................[114](#DoI)
>
> 3.8 National Aeronautics and Space Administration
> ................................................[120](#NASA)
>
> 3.9 Department of Transportation
> ......................................................................[128](#DoT)
>
> 3.10 Department of Veteran Affairs
> ..................................................................\...[134](#VA)

[]{#USDA .anchor}**3.1 Department of Agriculture**

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
the Agricultural Research Service (ARS) and other federal lab technology
transfer across the department (unless otherwise noted in the tables
below). For additional details, readers should consult the department's
full report.[^25]

■ **Collaborative Relationships for Research and Development**

![](media/image36.wmf){width="6.498611111111111in"
height="3.359722222222222in"}

■ **Invention Disclosure and Patenting**

![](media/image37.wmf){width="6.498611111111111in" height="1.4625in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image38.wmf){width="6.498611111111111in"
height="4.613194444444445in"}

**Licensing Management**

![](media/image39.wmf){width="6.498611111111111in"
height="3.2284722222222224in"}

**Characteristics of Licenses Bearing Income**

![](media/image40.wmf){width="6.498611111111111in"
height="5.9847222222222225in"}

**Income (annual) from Licenses**

![](media/image41.wmf){width="6.498611111111111in"
height="8.190277777777778in"}

**Disposition of License Income**

![](media/image42.wmf){width="6.498611111111111in"
height="3.5097222222222224in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

USDA's FY 2003 report provided the following selected examples of
downstream outcomes arising from the technology transfer activities of
the department's federal laboratories:

● **An ARS-developed rapid avian influenza diagnostic test** was used to
help control a disease outbreak of this virus in an emergency situation.
This rapid, sensitive, polymerase chain reaction (PCR) test was used in
March 2002 during an avian influenza outbreak in turkeys and chickens in
Virginia. This is the first time a PCR diagnostic test was used to help
control a major animal disease outbreak in the United States. Concerns
about the virus becoming highly pathogenic and potentially disrupting
poultry trade led the state to make a decision to eradicate the virus by
identifying and destroying infected flocks.

The existing detection method used to identify infected birds was time
consuming, and required daily handling of eggs. The emergency situation
called for a more efficient alternative. ARS\'s real-time PCR test,
which allowed for quick testing of birds versus eggs, was compared to
the other method through a cooperative effort with Animal and Plant
Health Inspection Service staff and animal health officials from
Virginia. Results showed that ARS\'s test provided similar sensitivity
and specificity for the particular strain of avian influenza as the
other test. With the ARS PCR test, results could be obtained within 3 to
24 hours, compared to several days with the old test method. The
Virginia situation generated widespread interest nationwide, and ARS
scientists have facilitated the use of this test by veterinary
diagnostic labs in more than 10 states. In addition, ARS researchers are
working with international partners in Chile, Hong Kong, Canada, Peru,
Mexico, and South Korea to teach them how to use and implement the test
to help control the virus in those countries.

● **NWAC103**, the first USDA fish germplasm release, is making a huge
splash with commercial catfish producers.  Catfish producers have long
awaited development of a new higher performing catfish variety.  Now,
thanks to this joint release effort between ARS and Mississippi
Agricultural and Forestry Experiment Station researchers, producers are
now stocking NWAC103 fingerlings.  In 2002, 141 million catfish fry were
produced, which was an increase of 281 percent over the amount produced
during 2001.  Other catfish varieties usually require 18 to 24 months to
reach market size, but the new catfish line grows up to 20 percent
faster in the pond so it can be marketed sooner.  NWAC103 catfish
consume 10 to 20 percent more feed and can grow 9 percent faster than
other commercial catfish lines currently in use.  They also tend to
mature earlier and produce more eggs.  The NWAC103 catfish are the first
line to be certified using DNA fingerprinting methods developed by ARS
scientists.

● **100% Natural Fruit Bars. ** ARS researchers have patented (Patent
Number 6,027,758) and transferred technology for forming 100% fruit
bars.  Fruit puree is the primary ingredient used in forming these fruit
products.  One fruit bar is the equivalent of two servings of fruit. 
The bars are flavorful, nutritious and convenient.  For these reasons,
ARS's technology should help consumers meet USDA daily dietary
recommendations.  The invention has been licensed to HR Mountain Sun,
Hood River, Oregon.  The company has constructed a manufacturing plant
in North Bonneville, Washington---an area with 30 percent unemployment. 
Ninety new jobs have been created. They are selling three types of pear
bar products---a plain pear bar, a blueberry bar, and a cranberry bar. 
Several grocery chains are selling the Gorge Delights^TM^ bars,
including Rosauer's, Albertsons, Thrifty, and some U.S. Commissaries. 
The bars are now being sold in over 400 Albertsons stores and have
received international interest from businesses in Malaysia, South
Korea, Jamaica, South Africa, Italy, and many other foreign countries.  
They are also being distributed through the Washington school lunch
program.

This technology started from a grass roots effort for pear growers to
add-value and create new markets for pear products and has recently
expanded beyond pears into other fruits and vegetables. This research is
part of an overall ARS effort to develop technologies that will permit
year round processing of seasonal crops by making value-added products
from bulk processed ingredients such as fruit and vegetable purees. 
Fruit and vegetable products are limited because the technology for
processing them is restricted to relatively few forms (canning or
freezing), which must be done immediately after harvest.  Processing
systems such as this enable large amounts of materials to be partially
processed into stable forms within the short harvest season, and then
made into a variety of products throughout the year.

● **VerifEYE^TM^,** a new optical detection system that inspects meat
for fecal contamination, should help the industry meet Pathogen
Reduction and Hazard Analysis and Critical Control Point (HAACP)
regulations. These regulations require meat and poultry plants to
implement a system to improve the safety of their products, and
ultimately prevent fecal contamination of meat food products. Fecal
contamination can carry pathogenic bacteria such as *Escherichia coli*
0157:H7, and these bacteria can cause foodborne illness in people. The
new technology, developed cooperatively by ARS and Iowa State University
researchers, uses specific color wavelengths to detect even minute
amounts of fecal matter on meat during processing. Light emitted from
the carcass is electronically analyzed to check for contamination. If
contamination is detected, the carcass is identified for further
sanitization. Current inspection methods rely heavily upon visual
inspections, but fecal matter undetected by the human eye may still be
present.

This new technology offers the industry a more reliable method for
ensuring a safe food product. The patented (Patent Number 5,914,247)
technology is licensed to eMerge Interactive Inc., a technology company
located in Sebastian, Florida. The company is currently marketing a
hand-held version of the technology in North America and distributors in
the United Kingdom and New Zealand are marketing the technology in the
European and Australian market. A full-carcass scanning device has also
been developed and tested in collaboration with Excel Corporation. Excel
has leased the system for installation in their beef processing plants.
Additional patents on variations of the technology are also being
sought.

● **A safe, effective alternative to broadcast fumigation** could help
reduce an over reliance on methyl bromide, which is scheduled to be
phased out in the United States in 2005 due to its status as an ozone
depleting compound. Soil fumigants are used to disinfest agricultural
soils of pathogens, nematodes, and weeds; and they have traditionally
been applied by injecting them directly into the soil. Some alternative
fumigants do not move as readily through the soil as methyl bromide when
injected into the soil, thus reducing efficacy. A team of ARS scientists
developed methods for applying soil fumigants using drip irrigation
systems, which enhance the distribution of the alternative fumigants in
the soil. This makes the alternative fumigants more acceptable as methyl
bromide replacements and helps reduce the potential for alternative
fumigants to escape into the atmosphere. ARS scientists entered into a
Cooperative Agreement with the California Strawberry Commission to
conduct tests and demonstrate the effectiveness of ARS's drip irrigation
technology for strawberry production. Because of the team's success in
communicating their results, manufacturers quickly developed suitable
new chemicals and registered these products with federal and state
agencies.

Western growers of fruits and vegetable such as strawberries, melons,
tomatoes, and peppers have rapidly adopted this technology and are
benefiting significantly from it. Growers were able to adopt the
technology without changing their production systems. EPA label
registrations have been granted for three drip-applied fumigant
formulations---Telone EC, InLine, and Chloropicrin. In 2002, nearly 10
percent of U.S. commercial strawberry crops were grown on land using
ARS's technology, as well as nearly 2,000 acres of tomatoes, peppers,
and melons. In addition to U.S. growers, the technology is receiving
international interest from growers in Italy and Spain.

● **National Phosphorus Indexing (P Index).** A national effort that
includes ARS scientists, as well as scientists from other USDA agencies,
the Environmental Protection Agency, various universities, and extension
specialists has led to the development and implementation of a standard
for managing and assessing the risk of phosphorus loss on agricultural
fields and water ways. Phosphorus is an essential nutrient for crop and
animal production, but excess phosphorus runs off into nearby water
systems---degrading water quality. The team developed scientific
standards for a Phosphorus Index, which addresses real world
environmental concerns in an effective and practical way. The tool helps
users to identify and prioritize alternative management options
available to them, thereby providing flexibility in developing remedial
strategies for managing phosphorus loss.

Team members are working extensively with federal, state, and local
government agencies; agricultural organizations; and environmental
organizations to educate them on the issues involved, and on how best to
implement this strategy. More than 1000 field agents and nutrient
management consultants across the United States have received training
on how to use the P Index. In addition, overseas researchers and
advisors from Brazil, Finland, Ireland, New Zealand, Norway, and the
United Kingdom have adopted and modified versions of the P Index to
apply the approach to their own countries' needs. This work will benefit
all Americans because it will help maintain a cleaner, healthier
environment.

● **NuSun**, a new ARS-developed sunflower germplasm, has had a profound
impact on the sunflower industry. NuSun is a hybrid sunflower plant that
produces higher amounts of oleic acid than traditional sunflower plants.
Oleic acid is believed by some scientists to have substantial health
benefits, including lowering blood cholesterol levels. ARS scientists
worked closely with representatives from the snack food industry, oil
refiners, crushers, seed company breeders, public researchers, and
growers to develop and test the NuSun plants. Favorable test results led
to rapid industry acceptance of NuSun oil, which is now being used by
restaurants and the snack food industry. Earlier this year, Frito-Lay
announced it would use NuSun oil in its new "All Natural" line of snack
food products; and the products are now in stores.

In 2002, U.S. production of NuSun oil seed sunflower was approximately
850,000 acres, which accounted for 40 percent of the total U.S. oilseed
sunflower production. The oil from the plant has superior cooking
qualities and lasts longer in frying vats. In addition, NuSun oil does
not require hydrogenation---a process that produces trans fatty acids,
which are known to be detrimental to human cardiovascular health. Recent
Food and Drug Administration industry requirements to label food
products containing trans fatty acids underscores the importance of
NuSun and its continued impact on the food industry and health-conscious
consumers.

● **Honeybees resistant to *Varroa destructor* (*V. destructor*)**, a
parasitic mite of honeybees, are now available to beekeepers. *V.
destructor* infestations have been devastating to the U.S. beekeeping
industry. Since its arrival in the United States in 1987, beekeepers
have fought the mite---which can wipe out an entire bee colony,
sometimes during the course of the summer---using miticides. Over the
years, however, the mites have developed resistance to each new chemical
control. In addition to *V. destructor*, *Acarapis woodi,* another
parasitic honeybee mite, has become a problem for the bee industry. This
mite infests the trachea or breathing tubes of honeybees resulting in
colony losses, reduced pollination ability, and reduced colony
production. This mite has also developed resistance to chemical control
methods.

A team of ARS researchers led the effort to select, test and breed
Russian honeybees that would be naturally resistant to both mites. The
team also selected for high honey production to assure the value of the
stock. ARS scientists entered into a Cooperative Research and
Development Agreement with a beekeeper to breed and gather information
on honeybee queens for commercial production. Now, thanks to ARS's
efforts, it is estimated that nearly 40 percent of the Nation's 2.5
million commercial honeybee colonies are currently stocked with Russian
honeybees---producing an annual honey crop valued at about \$85 million,
and pollinating crops valued at \$6 to \$8 billion. The Russian
honeybees typically produce about 10 percent more honey per colony and
can survive northern winters. Treatment savings using the new bees
totals about \$17 million a year.

● **ARS-developed cropping system technologies** are improving economic
and environmental sustainability of agriculture in the Palouse region of
Washington, Oregon, and Idaho**.** These integrated systems include
continuous reduced tillage and no-tillage, direct-seed organic systems,
perennial polyculture, and restoration of native prairies. ARS
scientists have transferred these research results directly to growers
at a major industry tradeshow, annual field days, workshops, and during
field research tours organized by ARS. A survey conducted by an ARS
researcher documented that 61percent of the growers surveyed are
currently using technologies from ARS, yielding significant benefits to
them and to the region's environment.

● **Hop Powdery Mildew Infection Risk Forecaster.** Currently, 75
percent of hop acreage in the Pacific Northwest is using this
ARS-developed forecasting model for detecting powdery mildew, an
important hop disease in that region. Four years of research culminated
in the public release of this model on the Internet, which provides
growers with a two-week history of infection risk, the current day's
risk, and a forecast of infection risk for the next five days. ARS
research defined critical temperatures influencing infection frequency
and host susceptibility. Once ARS researchers created and validated the
infection risk model, they partnered with FieldWise and Fox Weather to
develop 5-day forecasts for each weather station using proprietary
algorithms and historical site-specific weather data. This increased the
risk index's utility. In 2001 and 2002, growers using ARS's model to
assist in fungicide applications reported using 1.5 fewer fungicide
applications, while suffering 55 percent less powdery mildew infection
in their hop crops. Combining the model with other cultural practices
has helped reduce hop production costs related to powdery mildew control
from \$460 per acre to \$196 per acre.

● **A new method for collecting ram semen.** This method has a worldwide
impact on preserving animal germplasm. The method uses a vial, which is
placed in the ewe's vagina to collect semen, allowing for easy semen
recovery. The semen can then be extended, frozen, transported, and used
to artificially inseminate large numbers of ewes or stored in germplasm
banks. This innovation has the potential to replace the
artificial-vagina method for collecting semen, which has been in use for
more than 60 years and requires a considerable training period for rams.
ARS researchers transferred this technology to scientists and
technicians at the U.S. Meat Animal Research Center (USMARC). USMARC
personnel have used the procedure to collect semen from large numbers of
untrained rams that represent defined genetic lines of sheep.
Approximately 10,000 units of semen from these rams have been added to
the Animal Germplasm Preservation Program in Fort Collins, Colorado.

● **Conservation system technologies.** ARS researchers in the southern
U.S. region have played an active role both nationally and
internationally in promoting conservation tillage systems using a
combination of face-to-face farmer interactions, publications, Web site
development, personal interactions, meetings, and conferences.
Statistics indicate that no-tillage cotton in the Southern states grew
from 627,000 acres in 1998 to more than 1,938,000 acres in 2002, a
threefold increase. A 2003 National Cotton Council of America survey
reported that 57 percent of the total cotton acres in the Southeast was
in no-tillage. Annually, conversion of over 1.31 million acres of cotton
in the Southeast to no-tillage saves 10.6 million tons of soil worth
\$198 million in on-farm and off-site impacts, and \$39 million in fuel
and labor costs.

● **Cotton gin schools.** As part of a unique technology transfer
effort, ARS annually participates and helps sponsor gin schools, which
are designed to transfer ginning technology directly to the users. At
these schools, cotton ginners learn firsthand from ARS scientists and
our Cotton Technology Transfer Extension Coordinator the latest
information about preserving fiber quality and increasing gin efficiency
using the latest ARS-research results. In addition, ARS hosts a Textile
Manufacturing Symposium and a Cotton Ginning Symposium at gin and
textile labs to benefit county extension agents in cotton producing
states.

[]{#DoC .anchor}**3.2 Department of Commerce**

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
the department's following bureaus: National Institute of Standards and
Technology (NIST \-- Technology Administration), the National Oceanic
and Atmospheric Administration (NOAA), and the Institute for
Telecommunications Science (ITS \-- National Telecommunications and
Information Administration). Unless otherwise noted, the figures below
are totals across all these branches. For additional details, readers
should consult the department's full report.[^26]

■ **Collaborative Relationships for Research and Development**

![](media/image43.wmf){width="6.491666666666666in"
height="3.1194444444444445in"}

■ **Invention Disclosure and Patenting**

![](media/image44.wmf){width="6.491666666666666in"
height="1.5069444444444444in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image45.wmf){width="6.499305555555556in"
height="4.433333333333334in"}

**Licensing Management**

![](media/image46.wmf){width="6.491666666666666in"
height="3.5430555555555556in"}

**Characteristics of Licenses Bearing Income**

![](media/image47.wmf){width="6.499305555555556in"
height="5.644444444444445in"}

**Income (annual) from Licenses**

![](media/image48.wmf){width="6.499305555555556in"
height="7.9006944444444445in"}

**Disposition of License Income**

![](media/image49.wmf){width="6.491666666666666in"
height="3.1680555555555556in"}

■ **Other Performance Measures**

![](media/image50.wmf){width="6.491666666666666in"
height="1.4902777777777778in"}

[Standard Reference Materials]{.underline}. Standard Reference Materials
(SRMs) are the definitive source of measurement traceability in the
United States. NIST produces and disseminates (sells) SRMs to a large
and diverse group of customers, including private-sector laboratories,
universities, and other federal agencies. NIST SRMs support industrial
materials production and analysis, environmental analysis, health
measurements, and basic measurements in science and metrology.

[Standard Reference Data]{.underline}. Standard Reference Data titles
(SRDs) provide numeric data to scientists and engineers for use in
technical problem solving, research, and development. NIST produces and
makes available SRDs through sales or free distribution. NIST's SRD
databases cover many areas of science, including analytical chemistry,
atomic and molecular physics, biotechnology, and materials science.

[Calibration Services]{.underline}. NIST laboratories provide physical
measurement services for their customers, including calibration
services, special tests, and measurement assurance programs (MAPs).
Calibration services and special tests are characterizations of
particular instruments, devices, and sets of standards with respect to
international and national standards. NIST's calibration services are
designed to help the makers and users of precision instruments achieve
the highest possible levels of measurement quality and productivity.
NIST offers more than 500 different types of physical calibrations
covering the following measurement areas: dimensional; mechanical,
including flow, acoustic, and ultrasonic; thermodynamic; optical
radiation; ionizing radiation; electromagnetic; and time and frequency.

[Technical Publications]{.underline}. NIST uses publications as one
mechanism to transfer the results of its work to the U.S. private sector
and to other government agencies that need cutting-edge measurements and
standards. Many of these results appear in prestigious scientific
journals and withstand peer review by the scientific community. Others
appear in technological forums where measurement standards and
technologies developed by NIST staff (at times in collaboration with
private-sector partners) are disseminated.

■ **Downstream Outcomes**

DOC's FY 2003 report provided the following selected examples of
downstream outcomes arising from the technology transfer activities of
the department's federal laboratories:

######## **National Institute of Standards and Technology**

• **NIST helping prepare an \'out of this world\' atomic clock.**
Setting the world's clocks from a timepiece far above the Earth someday
may be the norm if the National Institute of Standards and Technology
(NIST)-led program to put an atomic clock aboard the International Space
Station (ISS) proves successful. This effort is part of the NASA-funded
Primary Atomic Reference Clock in Space (PARCS) mission, scheduled to
fly on the ISS in early 2006. PARCS will be used to test gravitational
theory, study laser-cooled atoms in microgravity and explore ways to
improve the accuracy of timekeeping on Earth. Atoms in microgravity can
be slowed to speeds significantly below those used in atomic clocks on
Earth, providing a predicted 10-fold improvement in clock accuracy. (The
current U.S. standard, the NIST-F1 clock, is accurate to within one
second in 30 million years.) The PARCS space clock will be compared
continuously to the hydrogen maser, a fundamentally different clock, to
provide a test of an Einstein theory that predicts that two different
kinds of clocks in the same environment will keep the same time. To
measure gravitational frequency shift, comparisons will be made between
the space clock and a clock on Earth. Signals conveyed to the ground
from such space clocks someday might serve as an international time
standard available to anyone around the world. PARCS is a cooperative
effort involving NASA's Jet Propulsion Laboratory (JPL), NIST,
Harvard-Smithsonian Center for Astrophysics, the University of Colorado
at Boulder, and the University of Torino in Italy. JPL is leading the
actual development of the space package.

• **Peanut butter standard spreads quality.** The National Institute of
Standards and Technology (NIST) recently issued Standard Reference
Material (SRM) 2387, a peanut butter sample characterized with
state-of-the-art measurement methods to provide values for fat, protein,
vitamins, minerals, and other substances it contains. It can be used by
food manufacturers to validate production and quality control
procedures, as well as to ensure accurate labeling of product content.
The new SRM is the first NIST food-matrix reference material with values
assigned for 18 individual amino acids \-- the building blocks of
proteins \-- and for aflatoxins, carcinogenic substances produced by
mold in crops. It also is the only SRM that is high in both fat content
and protein, making it useful in evaluating the fat and protein content
of other food products. SRM 2387 already has found a scientific use in
evaluating allergen test kits. Even a trace of peanut protein can cause
serious reactions, including death, if someone is highly allergic.

• **New NIST facility soon will be 'reflecting' on safer signs.**
Roadways should get safer in the future, now that the National Institute
of Standards and Technology (NIST) has developed a way to accurately and
reliably measure how light reflects off stop signs and other road
markings. Road signs and markings are designed to be visible at night by
retroreflectivity \-- that is, they reflect some of the light emitted by
a vehicle's headlights back toward the driver's eyes. However,
measurements of retroreflectivity have varied so much among different
devices and laboratories that federal transportation officials have been
unable to define minimum standards for this congressionally mandated
characteristic. Recently, NIST established a facility, funded by the
Transportation Research Board of the National Cooperative Research
Program, that resolves numerous measurement problems and improves
accuracy. Inside the facility, one finds a long black tunnel with a set
of tracks on which sits an instrumented platform. Signs or materials are
mounted on the platform, which can be moved 3 to 30 meters (10 to 100
feet) from a light source at one end of the tunnel. Using custom
software, scientists precisely control all of the components and measure
the characteristics of light reflected from the sign to a detector
located close to the source. NIST expects that the facility will begin
providing calibration services early in 2004.

• **Standard improves tests of male DNA.** Mother Goose tells us that
boys are made of "snips and snails and puppy dog tails." She was clearly
misinformed about the snails and tails, but she was on to something with
the snips. What you really need to build a boy is a "Y" chromosome, and
it turns out that SNPs (single nucleotide polymorphisms), known by the
biotech cognoscenti as simply "snips," can be helpful in sorting out who
fathered the boy. If DNA can be thought of as an instruction book for
building a specific person, then SNPs are single letters at an exact
location in that book that tend to vary among individuals. A new
Standard Reference Material (SRM) issued by the National Institute of
Standards and Technology (NIST) uses both SNPs and STRs (sections where
three to five DNA "letters" form repeating patterns) to help improve the
reliability of laboratory analyses of male DNA. The result of several
years of research, the standard consists of six vials of very carefully
analyzed DNA. Five are male samples, and one is female. Laboratories
that perform forensics or paternity DNA analyses can use the SRM to
double check the accuracy of their equipment and test procedures for
analyzing the Y chromosome. It also may be helpful for population
studies that study whether the human race evolved from one or many
"Adams." Each vial comes with certified DNA sequences for 22 different
STR locations and 42 different SNPs.

• **System helps ensure reliability of military communications.** The
Army, Navy, and Air Force use thousands of miles of optical fibers on
ships, planes and land-based installations to transmit voice and data.
They needed a simple, effective, and highly accurate way to measure the
amount of light delivered by these glass "wires" at key points in the
transmission system. Power degradation along the network can cause
communication failure. Working with ILX Lightwave Corp.of Bozeman,
Montana, the National Institute of Standards and Technology (NIST) came
up with a system capable of world-class optical measurements with
push-button convenience. The system consists of a NIST-designed optical
detector and an optical multimeter \-- designed by ILX Lightwave \--
that measures light emitted from a fiber over a wide range of
wavelengths. There are two versions of the novel detector: one using
silicon-based sensors and the other using germanium-based sensors. The
sensors connect directly to an optical fiber without any additional
optics and with barely measurable light loss. Measurement uncertainty is
half that of previous optical fiber power detectors. The new systems are
now being shipped to military calibration centers where they will be
used to annually check the accuracy of optical fiber power systems
utilized in the field.

• **Standards to help manufacturers measure micromachine properties.**
When a car collides with another car, a tiny device called an
accelerometer detects the change in motion and sets off an air bag, an
innovation that has saved many lives. The accelerometer is one of the
most common uses of microelectromechanical systems (MEMS), but
scientists and engineers also are starting to use them in devices
ranging from angioplasty pressure sensors and pacemakers to optical disk
drives. MEMS, also known as micromachines, are a relatively new
technology that uses existing microelectronics manufacturing methods to
create complex machines with micrometer feature sizes. MEMS devices
represent a rapidly growing component of the semiconductor industry.
Many micromachines contain moving parts that are combined with
integrated circuits. Like most high-tech devices, they must be made with
precise dimensions and materials properties to operate properly. To help
manufacturers ensure that their devices meet these exacting
specifications, National Institute of Standards and Technology (NIST)
scientists and engineers helped develop three ASTM International
standard test methods for the thin films used to make micromachines. The
test procedures, which are the first such standards in the world, will
be published in The Annual Book of ASTM International Standards this
month. The standards are expected to facilitate global commerce in MEMS
technologies by enabling measurements that will lead to the development
of more reliable and reproducible MEMS devices. The three standards
provide detailed instructions for measuring thin-film dimensions and
\"strain,\" a property related to the stress in the thin film. NIST
researchers have created a Web site to help semiconductor manufacturers
perform the complex mathematical calculations required by the new
standard test methods. For further information, see
[[www.eeel.nist.gov/812/test-structures]{.underline}](http://www.eeel.nist.gov/812/test-structures).

• **NIST helps chip industry measure features by counting atoms.** The
quest to develop the nanotechnology equivalent of ruler length
measurement references based on the spacing of atoms in a perfectly
ordered crystal has inspired a burst of innovation at the National
Institute of Standards and Technology (NIST). Progress to date has
yielded a novel device that can resolve distances smaller than the
radius of an atom and a reliable method for writing 10 nanometer sized
features on silicon. NIST researchers are packaging the new technology
and know-how into a scanning tunneling microscope (STM) system designed
to write patterns with dimensions determined by counting the atoms that
make up the patterns' structural features. Ultimately aiming for an
accuracy of better than 1 nanometer, the team intends to supply the
semiconductor industry with benchmark references to calibrate
measurement tools used in research and production. To measure
exceedingly small distances, members of the "atom-based artifacts
project" developed a novel diode laser-based interferometer. The new,
compact instrument incorporates elements of two types of existing
interferometers \-- devices that determine the distance between two
objects on the basis of light interference patterns \-- but achieves
much higher levels of resolution. To date, the team has measured
distances in increments smaller than 10 picometers, or less than one
hundredth of a nanometer. Efforts to produce durable, silicon-based
measurement references have paid off with a method for reliably writing
patterns with 10 nanometer line widths \-- equivalent to about 30
silicon atoms across. These STM-written patterns are long-lived, even
outside of a vacuum, and recent work suggests that reactive ion etching
can increase their three dimensional relief.

• **Tooth, heal thyself**. "Smart materials" invented at the National
Institute of Standards and Technology (NIST) soon may be available that
stimulate repair of defective teeth. Laboratory studies show that these
composites, made of amorphous calcium phosphate embedded in polymers,
can efficiently promote re-growth of tooth structures. In the presence
of saliva-like solutions the material releases calcium and phosphate
ions, forming a crystalline calcium phosphate similar to the mineral
found naturally in teeth and bone. Developed through a long-standing
partnership between NIST and the American Dental Association (ADA),
initial applications for these bioactive, biocompatible materials
include adhesive cements for orthodontic braces and anti-cavity liners
underneath conventional fillings. NIH and NIST entered into an
interagency agreement whereby NIST took the lead on prosecuting and
licensing the smart dental material. After further development, NIST
exclusively licensed the invention to the ADA, which has signed one
commercialization license to date. This activity is an example of
increasingly close ties between federal agencies, non-profit
organizations, and the private sector.

• **Hairs' to better drug testing.** There's a relatively new weapon in
the battle against illicit drug use \-- hair. Unlike urine or other body
fluids, hair tissue retains traces of cocaine and other drugs for at
least 90 days (not just two or three). Hair also is easier to collect
and harder to switch or contaminate. As a result, hair analysis
increasingly is used to screen job applicants, athletes, and others for
illicit drug use. The accuracy of such tests now can be checked through
the use of two new National Institute of Standards and Technology (NIST)
Standard Reference Materials (SRM's). The standards consist of human
hair segments that have been soaked in solutions containing target drugs
and then carefully measured for drug concentrations. SRM 2379 is
designed for calibrating tests of stimulants ("uppers") such as cocaine
and PCP, while SRM 2380 helps check tests for depressants ("downers"),
such as codeine and THC (the active ingredient in marijuana). Drugs
usually are not detectable in hair samples until 10 days after use, so
hair analysis is likely to complement rather than completely replace
traditional screening methods.

• **Device lets blind feel images.** A new technology developed by
National Institute of Standards and Technology (NIST) researchers allows
people who are blind or visually impaired to feel electronic images.
Called a tactile graphic display, the device uses an array of more than
3,000 rounded pins that can be raised in any pattern and then locked
into place. The inspiration for the tactile graphic display came from a
"bed of nails" toy found in a novelty store. The NIST researchers just
needed a way to connect an array of moveable pins with electric signals.
The answer came in the form of outdated technology. The researchers took
a 20-year-old scientific pen plotter and made it work upside down.
Instead of pushing a pen down to draw images on paper, the device now
pushes pins up to form an image. Unlike embossed images on paper, the
tactile display can be used over and over again. Each image is sent
electronically to the device, which uses software to determine how to
create a tactile display that matches the image. The display converts
scanned illustrations, photographs, map outlines, or other graphical
images into raised patterns and can translate images displayed on
Internet Web pages or in electronic books. After the pins are "viewed"
with the fingertips, they can be withdrawn to form a flat surface ready
to be reset into a new image. NIST is working with the private sector to
apply the technology under a non-exclusive research license. In
addition, several patents are pending on the technology and
commercialization licenses are available.

• **Finding dirty bombs and other radiation threats.** In an age of
terrorism, law enforcement agents and other first responders need to be
prepared for a wide range of threats, including so-called "dirty bombs"
and other radiation hazards. To help ensure the performance of devices
used to detect such threats, National Institute of Standards and
Technology (NIST) researchers are working with the Institute of
Electrical and Electronics Engineers (IEEE) and the American National
Standards Institute (ANSI) to develop new standards for a variety of
radiation detectors and monitors. With partial funding from the
Department of Homeland Security (DHS) and NIST's Office of Law
Enforcement Standards, NIST researchers are investigating a wide variety
of detection devices, ranging from 3-meter-high portal towers that scan
truck trailers while they move through checkpoints to small, pager-size
monitors that serve as personal dosimeters. Many of these devices
originally were designed for monitoring workers in factories and
laboratories. The new standards under development will ensure that the
devices work as intended under the new conditions now encountered in
homeland security related tasks. For example, some devices work
differently in the rain or high humidity conditions, as well as in wide
temperature ranges. So far, the NIST researchers also have found that
the calibration of some detectors depends a lot on the exposure rate and
energy of the radiation detected. The accuracy of 19 different hand-held
detectors ranged within plus or minus 5 percent of the actual radiation
value to plus or minus 40 percent depending on whether they were
measuring high, medium, or low energy radiation sources.

• **Ensuring the safety of first responder gas masks.** Firefighters and
other first responders faced with a terrorist attack soon will breathe a
little easier knowing that their gas masks have been tested to ensure
they work properly under emergency response conditions. Air purifying
respirators, commonly known as gas masks, protect workers from hazards
associated with chemical, biological, radiological, and nuclear (CBRN)
agents. The National Institute of Standards and Technology (NIST) has
teamed up with the National Institute for Occupational Safety and Health
(NIOSH) and the U.S. Army Soldier and Biological Chemical Command to
develop a full suite of gas mask standards for civilian workers.
Scientists will soon begin live agent testing of masks at the Army's
Aberdeen Proving Grounds in Maryland, one of only a few nationwide
laboratories that can do such tests safely. The tests will ensure that
the masks protect workers from a mustard blistering agent and from the
nerve gas sarin. The tests are done on specially designed mannequins
that can precisely measure minute amounts of vapor that may penetrate
through the masks. Masks worn by first responders must meet different
standards from those designed for troops. Most military uses involve
outdoor attacks where air currents would naturally disperse chemicals or
other hazardous agents. The civilian testing procedures address release
of a hazardous agent inside buildings or other closed environments. The
standard will include a maximum penetration rate for hazardous
substances and methods for testing the fit of gas masks for individuals.

• **Helping consumers choose among house repair options.** House
maintenance is a never-ending and costly task. Roofing, siding, windows
and even garage doors wear out. Now researchers at the National
Institute of Standards and Technology (NIST) have developed a software
program that takes the guesswork out of replacement decisions. The free
program, called NEST (for National Economic Service-life Tools), allows
homeowners to select the most cost-effective replacement material for
roofing, siding, windows, and garage doors. It also provides, for the
user's own zip code, cost estimates for replacements, including the cost
of local labor and local materials, as well as the cost of maintenance.
NEST currently consists of two software tools. "NEST Builder" and
"Durability Doctor." NEST Builder asks homeowners to specify the house
layout and size, as well as various kinds of materials used for roofing,
siding, windows, and garage doors. The software program uses the
information to build a virtual or graphic model of a user's home.
"Durability Doctor" then combines the house model data with information
on material cost and service life of the selected housing component. It
estimates the installation and maintenance cost as well as the monthly
financing cost of each alternative over the product\'s lifetime.
Consumers then can compare costs for nine different types of roofing,
four garage door materials, six types of windows and eight varieties of
siding. "Durability Doctor" also reports which replacements are the most
durable, have the lowest installation cost and lowest life-cycle cost
for each housing component. NIST developed NEST with funds from the
Partnership for Advancing Technology in Housing, a government-industry
initiative led by the Department of Housing and Urban Development to
modernize the homebuilding industry.

• **Designing efficient cooling systems for the dog days of summer.**
New software developed by National Institute of Standards and Technology
(NIST) can help cooling system manufacturers meet Department of Energy
goals calling for a 20 percent increase in energy efficiency of
residential air conditioners by 2006. Manufacturing engineers can use
the software, called EVAP-COND, to improve evaporators and condensers,
two types of heat exchangers that are essential components of every air
conditioner. Improved heat exchangers mean increased energy efficiency.
The software simulations depict the performance of evaporators and
condensers working with any one of 10 cooling agents, including new
generation atmospheric ozone-safe hydrofluorocarbon fluids and "natural
refrigerants," such as carbon dioxide or propane. The software's
computer graphics package enables engineers to observe and to understand
refrigerant behavior throughout the simulated heat exchanger. Different
designs can be tested to achieve desired environmental results.
According to the software developer, "EVAP-COND can increase design
engineer productivity and can reduce laboratory testing, thus shortening
design-to-production time. This software can save manufacturers time and
money, while it is helping to conserve energy." NIST developed the
software with funds from the 21st Century Research Program of the
Air-conditioning and Refrigeration Technology Institute and the U.S.
Department of Energy. The Windows-based program can be downloaded from
[www2.bfrl.nist.gov/software/evap-cond/](http://www2.bfrl.nist.gov/software/evap-cond/).

**National Oceanic and Atmospheric Administration**

• **Hurricane Isabel**. Without NOAA's excellent forecasts and
end-to-end teamwork, Hurricane

Isabel's toll on lives and property would have been even more
devastating. NOAA's track forecast was outstanding. Isabel swept over
the East Coast some 38 hours after well-positioned hurricane warnings
and track forecasts had been issued. This is 14 possibly life-saving
hours ahead of NOAA's 24-hour lead time goal. The Director and Deputy
Director of NOAA's National Hurricane Center gave 180 broadcast
interviews. National Hurricane Center staff handled an additional 280
phone interviews, plus another 45 in Spanish. On the Monday after, the
Center Director briefed President Bush and several governors via video
teleconference as they reviewed Isabel's wrath in a number of states.

• **Improved hurricane forecasts**. NOAA's National Weather Service
(NWS) announced it will begin issuing five-day hurricane forecasts,
extending the three-day forecasts issued since 1964. NWS cited customer
needs for longer-range forecasts and major improvements in track
forecasting skill over the past few decades as reasons for lengthening
the forecasts. The new forecast is to move resources out of harms way,
such as U.S. Navy ships. The decision to extend the forecasts came after
two years of successful testing with data from the 2001 and 2002
seasons, indicating the five-day track forecast will be as accurate as
the three-day forecast was 15 years ago.

• **Tornado warnings save lives**. NOAA and our Nation owe a heartfelt
thanks to the many dedicated men and women in the National Weather
Service who worked tirelessly during the May 4-10 outbreak of severe
weather. Early reports indicated that about 400 tornadoes hit 10 central
and southern U.S. states during this record-breaking week. The
preliminary average lead time provided for all tornado events is about
19 minutes - well above our current 11 minute performance goal. During
this period, NOAA staff residing in these hard-hit communities literally
lived in their offices, working to save lives rather than returning home
to their own families. Undoubtedly the tragic loss of life would have
been even higher without the front-line commitment of so many NOAA
staff. On May 8, for example, a severe weather forecast briefing was
broadcast live over NOAA Weather Radio transmitters in the Oklahoma City
area -- nearly three hours before tornadoes hit. Heavily promoted among
local media and emergency managers, the briefing carried
up-to-the-minute information on timing, location, and expected impact.
Tornado safety rules and preparedness were highlighted in the briefing.
Then, as an F4 tornado tore through heavily populated areas in and
around Oklahoma City, our forecasters broadcast continuing live updates
of the storm's track on NOAA Weather Radio. Listeners phoned and
e-mailed our Norman Forecast Office with thanks for outstanding service,
and Oklahoma Governor Henry issued praise for the advance notice that
saved lives. Missouri Governor Holden expressed appreciation as well.

• **Electronic commerce and print-on-demand for nautical charts**. The
Office of Coast Survey, National Ocean Service and OceanGrafix
collaborated in a CRADA to build Print on Demand/e-commerce for NOAA's
suite of 1,000+ nautical charts. This technology prints charts only when
ordered, and from digital files that NOAA updates daily. Electronic
commerce software controls the automatic assembly and printing of
ordered charts from digital files. The CRADA furthered NOAA's mission by
providing mariners with nautical charts that are up-to-date with all
critical corrections, a federal requirement for regulated vessels.
Further, the transferred technology permits the customization of charts;
eliminates inventory, warehouses, and the wasteful disposal of obsolete
charts, thus reducing costs; and eliminates labor and errors in order
taking and fulfilling. The most important result will be improved safety
and efficiency of marine transportation, and the protection of life,
property, and the marine environment.

• **Public release of atmosphere and ocean models and model output**.
The Geophysical Fluid Dynamics Laboratory (GFDL) has released several
Earth System model components and model data to the public and
university collaborators. A new Atmospheric Model (AM2) has been
released to university collaborators the latest versions of the Modular
Ocean Model (MOM4), an ocean model expressed in isopycnal coordinates
(HIM), and the Flexible Modeling System (FMS) infrastructure on which
these models are based have been released and are available at
<http://nomads.gfdl.noaa.gov/>. Model output from several experimental
programs at GFDL, including Decadal-Centennial Coupled Climate and Ocean
Data Assimilation are also available. There have been downloads to over
10,000 distinct hosts, including over 720 for MOM, almost 600 for HIM,
and almost 800 for the FMS infrastructure. Nearly a terabyte of data has
been requested.

• Web-based access to distributed data sets. The Pacific Marine
Environmental Laboratory (PMEL) has transferred Live Access Server (LAS)
software for web-based browsing (visualization) and downloading
(subsetting) of earth science data sets to a broad scientific community.
LAS presents geographically distributed data sets as a unified virtual
data base. It is compatible with scientific data networking provided by
the Open Source Project for a Network Data Access Protocol (OPeNDAP,
formerly known as DODS). PMEL promoted the use of LAS throughout the
Nation and the world. There are approximately 50 installations of LAS in
research institutions spanning, NOAA, NASA, the U. S. Navy, Department
of Energy, and national and international research institutions, such as
the National Center for Atmospheric Research, the Monterey Bay Aquarium,
the British Atmospheric Data Center, and the Centre National de la
Recherche Scientifique.

• Scientific Graphics Toolkit and ncBrowse. The Pacific Marine
Environmental Laboratory (PMEL) has developed Java-based tools to more
easily visualize oceanographic (and other) data for both Web-based and
desktop applications. The Scientific Graphics Toolkit (SGT) is designed
to aid developers in producing scientific graphics applications. SGT has
found a large international audience with over 5,800 sites from 70
countries having downloaded the toolkit. The ncBrowse is a general
purpose Java desktop application designed to enable users to
interactively browse and visualize data from netCDF files and OPeNDAP
resources. NetCDF is a file format that is commonly used by the
oceanographic community to store both observations and model results.
The ncBrowse has also found an international and cross-discipline
audience with users from over 4,000 sites from 60 countries downloading
the application. The ncBrowse is included with the Precision
Agricultural-Landscape Modeling System (PALMS) distribution from the
University of Wisconsin-Madison and the International Oceanographic Data
and Information Exchange (IODE) Ocean Teacher Data Management Resource
Kit.

*National Telecommunications and Information Administration*

• **Video quality metric.** ITS developed a superior method of measuring
video quality objectively by machine that closely predicts the quality
that subjective human views would perceive. The technology is covered by
three patents owned by ITS/NTIA. In FY 2003, the ITS method was adopted
by the ANSI as a U.S. national standard. In addition, the ITU tested a
number of proposed video quality metrics from around the world and found
the ITS method superior. It is anticipated that ITS' method will soon be
an international standard.

ITS targeted this technology for commercial development, with the
potential of producing a royalty income for the laboratory within one
year. More than 200 copies of software implementing the method have been
requested this FY for purposes of evaluation. Negotiations for a
commercial license have begun with a U.S. corporation.

• **Comarco cellular test equipment.** Comarco, Inc. (a U.S. test
equipment manufacturer), signed a patent license for the use of ITS' MNB
speech quality estimation algorithm. Comarco based its Q-MOS algorithm
on the ITS MNB algorithm and offered it for sale as an available
software tool in several of the Comarco cellular test equipment product
lines. This test equipment is used by major cell phone service providers
to test, diagnose, and maintain their cellular radio systems.

• **Personal communication services** (PCS). Much of ITS' work in PCS,
over several years, has been accomplished through CRADAs with partners
such as U.S. West, Bell South, Telesis Technology Laboratory, and
Motorola. Collaboration between ITS and Motorola was instrumental in
Motorola receiving a license (valued at \$100,000,000) to provide PCS in
Hong Kong. PCS has now been commercialized worldwide, and new
developments continue as PCS is extended to third generation PCS and
beyond. ITS continues this work in FY 2003 through a CRADA with Lucent
Technologies' Bell Laboratories to investigate smart antenna
performance, a technology that is targeted to dramatically increase the
capacity of wireless systems and, therefore, reduce the problem of
spectrum crowding. This technology is 2 to 4 years from commercial
application.

• **Local multipoint distribution services** (LMDS). ITS has been a
premier laboratory in millimeter wave research for two decades. CRADAs
with private industry have enabled ITS to apply this unique expertise to
radio propagation for LMDS. LMDS provides broadband wireless
communications for business and residential applications. Systems have
been deployed in the U.S. and a number of U.S. companies are exporting
systems and services. Research into LMDS was conducted with Hewlett
Packard, U.S. West, and Lucent Technologies.

[]{#DoD .anchor}**3.3 Department of Defense**

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
the department's following services and agencies: Air Force, Army, Navy,
Uniformed Services University of the Health Sciences, and several other
defense agencies (unless otherwise noted in the tables below). For
additional details, readers should consult the department's full
report.[^27]

■ **Collaborative Relationships for Research and Development**

![](media/image51.wmf){width="6.498611111111111in"
height="3.201388888888889in"}

■ **Invention Disclosure and Patenting**

![](media/image52.wmf){width="6.498611111111111in"
height="1.7472222222222222in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image53.wmf){width="6.498611111111111in" height="4.7375in"}

**Licensing Management**

![](media/image54.wmf){width="6.498611111111111in"
height="3.3201388888888888in"}

**Characteristics of Licenses Bearing Income**

![](media/image55.wmf){width="6.498611111111111in"
height="5.636805555555555in"}

**Income (annual) from Licenses**

![](media/image56.wmf){width="6.498611111111111in"
height="8.159027777777778in"}

**Disposition of License Income**

![](media/image57.wmf){width="6.498611111111111in"
height="3.2256944444444446in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

DOD's report for FY 2002 included the following selected examples of
downstream outcomes from the department's technology transfer
activities:

***Army***

• **Chemical Biological Explosives Containment System/Workshelter**. The
primary system, Chemical Biological Explosives Containment System
(CBECS) is a pneumatic structure supporting a Kevlar tent with a filling
sock for aqueous foam. It is approximately 7 feet in diameter at the
base and tapers to about 4 feet in diameter at the top. Once inflated,
the unit is designed to be placed over the device/munition and filled
with blast suppressive foam. The secondary containment shelter
(workshelter) is also an airframe, which is easily inflated and placed
over the primary containment system (CBECS). The workshelter is designed
to contain/mitigate the residual effects (primarily, escaping fragments
and vapors/aerosols from the primary containment system) associated with
the detonation of the device/munition. The Army's Edgewood Chemical
Biological Center entered into a patent license agreement with ZUMRO
Inc. (Willow Grove, Pennsylvania), a leader in the life safety industry,
to market CBECS to commercial customers. Both the primary and secondary
containment systems were jointly designed by the Army's
Chemical/Biological Counterterrorism Team and ZUMRO and then fabricated
by ZUMRO.

• **Topical skin-protectant cream for civilian applications**. The
Army's Medical Research Material Command has signed a patent license
agreement to allow commercial development by a medium-sized U.S.
pharmaceutical firm of a topical skin-protectant cream for nursing home
and hospital prescription use. The cream was developed initially by Army
Medical Research ICD for protection against chemical weapons exposure.
It is expected to have widespread non-military uses, including skin
protection against harsh chemicals in the home or industrial settings
and for protection against irritants such as poison ivy.

• **Biological detection kit**. Development and technology transfer
activities by the Army's Edgewood Chemical Biological Center have
yielded a commercially available biological detection kit (BDK),
BioHaz™, which provides users with capability to sample and detect
biological materials in suspect samples. Increased potential for the use
of biological agents as weapons of terror and mass destruction
underscores the importance of finding means to sample and detect such
agents in a rapid and effective manner. The BDK developed by the Army
team consists of sampling and detection equipment for biological agents
over large area surfaces and in liquid, air, and small solid samples.
The kit is a single, integrated package that can analyze samples for the
presence of DNA, protein, and bacteria. The BDK uses existing techniques
from food safety, personal air monitoring, and analysis venues and
integrates them with new approaches to create a technology that can very
easily be used in the field. Several CRADAs were involved in developing
the BDK: with New Horizons Diagnostics Inc., to package the kit, and
with the EAI Corporation, to further refine and market the kit. An
Information Exchange Agreement was established with the Military
Institute of Hygience and Epidemiology in Poland to enable joint
development of the spore luminescence protocol for the kit. The BioHaz™
is currently being marketed by the Response Equipment Corporation
(subsidiary of EAI Corp.). The kit is also being marketed by New
Horizons Diagnosics, Inc., as SWIPE™. The technology is currently being
used by Hazardous Materials teams in several U.S. cities.

• **Integrated Virus Detection System**. An Army scientist at the
Edgewood Chemical Biological Center has developed a fundamentally new
method for detecting and identifying viruses and nanoparticles. The
Integrated Virus Detection System (IVDS) is a patented approach that
relies on the properties of size and density to identify and count
viruses and other extremely small particles without the use of
biochemical reactions. The IVDS technology has been transferred to the
commercial sector, through an exclusive license to the Virus Detection
Company. Several industries are expected to benefit from this new
technology: bioprocessing (to develop new products, including vaccines),
materials (refine nanoparticle based creations), computers (computing
devices with improved nanometer-sized separations and tolerances). In
addition, the IVDS has provided a new standard of measurement on the
nanometer scale that relies on instruments such as electronmicrography
and light scattering.

## Navy

• **Techniques to diagnose or monitor sleep breathing disorders**. The
Navy's Naval Underwater Weapons Center has signed two patent license
agreements (in FY 2001) with Predictive Technology, Inc., a small
company (in Massachusetts) formed to commercialize the use of non-linear
signal processing techniques to diagnose or monitor sleep breathing
disorders. The patented invention makes it possible to reduce medical
and insurance costs by allowing a patient to be diagnosed for sleep
apnea in a doctor's office while awake in a 20-30 minute test, rather
than needing to undergo an all-night stay at a sleep clinic.

• **Plasma arc waste destruction system**. Over the last decade,
researchers at the Carderock Division of the Naval Surface Warfare
Center have been investigating plasma arc technology as means to destroy
shipboard combustible solid waste. (The technology utilizes an electric
arc in a gas to produce a plasma that is hotter than the surface of the
sun.) From this work, an NSWC scientific team has recently developed the
Plasma Arc Waste Destruction System (PAWDS), which offers a small size,
rapid, and efficient operation and the ability to incinerate a wide
variety of garbage. The NSWC team moved this patented technology forward
through both a CRADA and licensing agreement with PyroGenesis Inc., a
private firm that develops and commercializes customized thermal plasma
technologies. PyroGenesis plans to manufacture and install PAWDS on
commercial cruiseliners.

• **Advanced nontoxic fouling release coating**. A Naval Research
Laboratory scientist has worked to develop and commercialize an
environmentally safe coating system for ship hulls and pipeline
applications (e.g., power plant water intakes). This patented coating
system reduces the problem of biofouling (the undesired growth of
barnacles, mussels, algae, etc.) with the use of toxic metals and
biocides. The coating provides instead a surface to which organisms find
it difficult to adhere. This new technology responds to a pressing need
for an environmentally safe method for controlling biofouling that can
replace the current methods that use metals and other chemicals that are
potentially harmful to aquatic life and workers. To move the technology
to the marketplace, NRL has licensed the coating system to a private
company, Smart Surfaces LLC (Annapolis, Maryland), which plans to
promote its use on commercial, private, and government ships, and as
well in power plant water intake systems.

• **High speed, ultrastable, fiber optic communications laser**. A team
at the Naval Research Laboratory has developed an advanced fiber optic
laser that is capable of generating ultrashort pulses of light. Because
pulsed laser light is used to carry digital information, NRL's
ultrastable and ultrafast laser technology enables development of next
generation communications systems. In addition, the patented technology
can be used for radar systems and for other applications such as
navigation and surveillance. The laser is being transferred by NRL for
commercial development through licensing partnerships with two
companies: PriTel, Inc., and Calmar Optcom. Presently, a number of
products manufactured and marketed under these licensing agreements:
four models of optical clocks, three optical transmitters, and two high
power polarization maintaining fiber amplifiers.

• **Digital image enhancement**. A team at the Naval Undersea Warfare
Center is working to apply digital image enhancement \-- technology
developed initially for underwater mine hunting sonar \-- to the medical
community to help in detecting small lesions in mammograms. Several
CRADAs and a licensing agreement have been established to aid in the
development and transfer of the technology: to Advanced Image
Enhancement, Inc., and to the Slater Center for Interactive
Technologies. It is expected that digital image enhancement will enable
doctors to have greater success in detecting early stage breast cancer.

## Air Force

• **Vein Viewer \-- a system and method for enhanced visualization of
subcutaneous structures**. Scientists at the Air Force Research
Laboratory's Materials and Manufacturing Directorate developed this
breakthrough medical technology for locating veins and arteries in
wounded soldiers on the battlefield. The Vein Viewer is a system and
method for enhancing visualization of veins, arteries, or other
subcutaneous natural or foreign structures of the body and for
facilitating intravenous insertion or extraction of fluids, medication,
or the like. The Viewer is comprised of a light source for illuminating
or trans-illuminating a portion of the body with light of selected
wavelengths, a low-level light detector (such as an image intensifier
tube, including night vision goggles; a photomultiplier tube,
photodiode, or charge coupled device) for generating an image of the
illuminated body portion, and optical filter(s) of selected spectral
transmittance (located at the light source, detector, or both). The
primary medical application for this new technology is in locating veins
and arteries. The capability will also help doctors locate foreign
objects such as bullets or shrapnel under the skin. Infrared Imaging
Systems (IRIS) is a start-up company (Columbus, Ohio) specifically
founded to exploit this technology. The Air Force currently has an
exclusive license with IRIS on the original patent and also a follow-on
CRADA for further development of the technology.

• **Pinpoint WeatherNet Project**. The Pinpoint WeatherNet Project (PWP)
is a CRADA between the Office of Technology Transfer for Education
(OTTE) at the Air Force Research Laboratory's Directed Energy and and
Space Vehicles Directorates and KOB-TV in New Mexico. PWN provides high
quality weather stations for New Mexico middle schools. In FY 2002, 48
schools participated. Also in FY 2002, PWN became part of the Homeland
Security WeatherNet Network, a partnership between the National Weather
Service and Automated Weather Source.

• **Lightweight, carbon composite cages for low heat generation
bearings**. A team at the Air Force Research Laboratory's Propulsion
Directorate has developed a composite cage for rolling element bearings.
The lightweight, carbon-carbon and carbon-phenolic composite cages
enable rolling element bearings to operate at a higher speed with
signficiantly less frictional heat generation than bearings fitted with
traditional steel and cotton-based phenolic cages. The technology was
developed in cooperation with a CRADA partner, Allcomp Inc., which has
also received an exclusive license to the patent. Potential
beneficiaries of this new technology include domestic bearing
manufacturers and users of rotating equipment and turbomachinery.

***National Security Agency***

• **SilentRunner® for continuous monitoring and analysis of network
activity and security performance**. NSA has licensed the SilentRunner®
product and technology to the Raytheon Company. SilentRunner® passively
gathers data about a network, its structure, its traffice, and its users
through analysis of raw network packets. The raw packets are assembled
and organized into a knowledge base that provides a detailed activity
display of the network. The level of analysis enables assessment of real
time data related to security risks and network vulnerabilities.

# 3.4 Department of Energy

[]{#DoE .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
all the department's government owned/government operated (GOGO) and
government owned/contractor operated (GOCO) laboratories. For additional
details, readers should consult the department's full report.[^28]

■ **Collaborative Relationships for Research and Development**

![](media/image58.wmf){width="6.4944444444444445in"
height="2.745833333333333in"}

■ **Invention Disclosure and Patenting**

![](media/image59.wmf){width="6.4944444444444445in"
height="1.3333333333333333in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image60.wmf){width="6.4944444444444445in"
height="4.288888888888889in"}

**Licensing Management**

![](media/image61.wmf){width="6.4944444444444445in"
height="3.1354166666666665in"}

**Characteristics of Licenses Bearing Income**

![](media/image62.wmf){width="6.4944444444444445in"
height="5.138888888888889in"}

**Income (annual) from Licenses**

![](media/image63.wmf){width="6.4944444444444445in"
height="7.315972222222222in"}

**Disposition of License Income**

![](media/image64.wmf){width="6.4944444444444445in"
height="3.077777777777778in"}

■ **Other Performance Measures**

![](media/image65.wmf){width="6.4944444444444445in" height="1.31875in"}

■ **Downstream Outcomes**

DOE's FY 2003 report provided the following selected examples of
downstream outcomes arising from the technology partnering/transfer
activities of the department's federal laboratories:

● **ADVISOR improves automotive design productivity**. ADVISOR
(ADvanced Vehicle SimulatOR) software provides a specialized tool for
the automotive engineering community to quickly simulate the performance
of a large number of vehicle design options, therefore reducing the time
and expense involved in building and testing prototypes. ADVISOR
software can simulate and analyze light and heavy vehicles---including
hybrid electric and fuel cell vehicles. It tests the effect of changes
in vehicle components (such as motors, batteries, catalytic converters,
climate control systems, and alternative fuels) and other modifications
that might affect fuel economy, performance, or emissions. Using
ADVISOR software, companies can: (1) reduce testing time to evaluate
various vehicle powertrain alternatives, (2) assist in developing
fuel-efficient vehicles and components, and (3) provide a shared
simulation tool for government, universities, and industry.

The Vehicle Systems Analysis Team at the National Renewable Energy
Laboratory (NREL) developed the first version of ADVISOR in 1994 with
the help of industry partners to simulate and analyze various
performance aspects of conventional and advanced vehicles. ADVISOR 2003
was also licensed to AVL Powertrain Engineering Inc. (AVL). The license
agreement for the ADVISOR software and a related CRADA facilitates the
transfer of the ADVISOR software from NREL to AVL and ultimately to wide
application in the transportation sector. AVL will in turn provide a
highly visible commercial outlet for NREL\'s advanced vehicle simulator
research, leading to more significant uses of the ADVISOR software by
automakers and ultimately the development of more efficient advanced
vehicles worldwide. The associated three-year CRADA will also enhance
the transfer of the ADVISOR software to market and will help position
AVL to provide comprehensive services and solutions to its clients. By
facilitating the design of more efficient vehicles, ADVISOR will
directly contribute to the reduction of petroleum use and oil imports in
the U.S. economy.

● **Alpha particle immunotherapy for treating leukemia and solid tumor
metastases**. One promising new cancer treatment is alpha particle
immunotherapy (APIT), a technology that makes it possible to treat
patients with malignancies of the hematopoietic system, such as
leukemia, as well as metastasis from many solid tumors effectively and
with fewer side effects than other treatments. This technology combines
the power of alpha particle-emitting radioactive isotopes (actinium-225
or bismuth-213) with monoclonal antibodies that bind to and destroy
specific cancer cells, but not the nearby healthy tissue. Early trials
at major research centers yielded encouraging results.

The primary supplier of APIT is MedActinium, a small radiopharmaceutical
firm in Oak Ridge, Tennessee. MedActinium turned to researchers at
Pacific Northwest National Laboratory (PNNL) to help solve two obstacles
to commercial use of APIT: purifying the isotope and binding it to the
antibody to create a stable product. This resulted in new separations
chemistry for generating bismuth-213 and a key enabling technology for
putting actinium-225 on monoclonal antibodies. The result is that these
powerful new radioisotopes are now available to treat patients with
leukemia or fast-spreading solid-tumor cancers.

This technology partnership involved collaborative efforts among private
industry, academic research institutions, and U.S.Government agencies.
PNNL built on relationships with the pharmaceutical industry dating from
1986. PNNL research in APIT-enabling technologies was part of a larger
effort to develop beneficial uses for radioactive materials remaining
from weapons production during the Cold War. The technology partnering
arrangements were fast-tracked during the planning for initial clinical
trials. The effort included exclusive license agreements for five
immunology patents, negotiation and conclusion of a separate Technology
Management Agreement with an earlier research partner, and establishment
of a Cooperative Research and Development Agreement (CRADA) for further
research. The transfer was completed in January 2003.

The transfer of technologies from PNNL to MedActinium is a contributing
factor in the ability of the Memorial Sloan-Kettering Cancer Center and
other research medical centers to continue the quest for effective
cancer treatments. A second round of clinical trials is scheduled to
begin the fall of 2004 at Sloan-Kettering.

● **Battery chemistry is the key to tiny rechargeable battery for
microstimulator**. Battery chemistry developed by Argonne National
Laboratory (ANL) and its research partners enabled the development of a
microbattery to power an implantable bion® microstimulator that could
help restore nerve and muscle function in patients suffering from a
variety of medical conditions, including stroke, Parkinson\'s disease,
and urinary urge incontinence. In feasibility trials, a prototype bion
was implanted in patients to treat urinary urge incontinence, with
promising results. The battery chemistry will provide calendar life
significantly greater than that of commercially available lithium-ion
batteries.

The bion® currently in feasibility trials comprises three integrated
parts: the battery, which operates at normal body temperature, developed
by Quallion LLC and ANL; an advanced microstimulator, developed by
Advanced Bionics Corporation; and a control system, developed by
Advanced Bionics Corp., to manage remote reprogramming and battery
recharging.

ANL is working with the University of Wisconsin and Quallion, LLC, to
develop a next-generation cell chemistry that could give even longer
life. Development of the bion microstimulator was funded by a grant to
Quallion under the National Institute of Standards and Technology\'s
Advanced Technology Program. The foundation for ANL\'s research was
provided by battery development for hybrid electric vehicles, funded by
the U.S. Department of Energy, Office of Energy Efficiency and Renewable
Energy, FreedomCAR and Vehicle Technologies program.

● **Cancer treatment using brachytherapy**. Oak Ridge National
Laboratory (ORNL) and an industry partner, Isotron, are collaborating
through a CRADA to boost the treatment possibilities for brain tumors
and other types of cancer resistant to conventional techniques with
X-rays or gamma radiation. The objective is to miniaturize the
radioactive sources and enhance a cancer treatment known as neutron
brachytherapy. The treatment could enable physicians to deliver a
powerful dose of cell-killing neutrons directly to a tumor, using a
catheter to funnel the radioactive wire to the site. These research
scientists have reduced the diameter of the californium source by more
than half, and the neutron emitter can now be applied to organs
previously inaccessible. By concentrating the radioactivity, the
treatment time can also be shortened -- thus limiting the exposure to
medical staff. ORNL produces californium-252 in its High Flux Isotope
Reactor; nuclear researchers fabricate the wire-like sources in shielded
"hot cells" near the reactor.

● **Cold ion deposition technology**. Researchers at the Princeton
Plasma Physics Laboratory (PPPL) have developed a unique and proprietary
method of rapidly killing bacterial spores. The technology uses the
positive ions from a light atom and accelerates them through a high
energy potential. The ions are driven toward a surface on which the
bacterial spores are located with energy sufficient to damage the spores
and render them no longer viable.

The commercial application of this technology is the cleaning and
sanitizing of plastics used in food and beverage packaging and has been
called the cold ion deposition technology (CID) by the company seeking
to commercialize the process. Rather than using heat, water, or
chemicals to kill germs, the system uses non-thermal plasma. CID
technology uses the ions generated from the plasma to destroy any
microbial spores on the inner surface of the container. This is a safe,
efficient, inexpensive mechanism for cleaning and sanitizing plastics,
and will not alter the taste of the beverage. PlaZtec, LLC was formed to
commercialize technologies that are beneficial to the environment and
global societies as a whole. Cold ion deposition (CID) is the first
technology that PlaZtec is focusing on, with an initial application
being in the non-alcoholic beverage bottling industry.

● **Decontamination solution for chemical and biological warfare
agents**. A decontamination formulation originally developed at Sandia
National Laboratories (SNL) that renders harmless chemical and
biological warfare agents has been selected for use by the U.S. Central
Command (CENTCOM). CENTCOM placed an order with EnviroFoam™ Technologies
for several thousand gallons of the company's EasyDECON™ solution.
EnviroFoam licensed the formulation for EasyDECON from Sandia in August
2000. The formulation neutralizes both chemical and biological agents
and is nontoxic, noncorrosive, and environmentally acceptable. The
formulation can be deployed as a foam, mist, fog, spray, or liquid. The
Sandia formulation, on which EasyDECON is based, has proven effective
against both biological and chemical agents, can be applied with current
military hardware, has shown no collateral damage, and creates an
effluent capable of being washed down the drain. EnviroFoam was one of
two U.S. companies granted nonexclusive licenses to the decontamination
formulation, which has been under development at Sandia since 1997.

● **Efficient photovoltaic solar cells becoming widely deployed**. CIGS
(Cu(In,Ga)Se~2~) is a recrystallization method for fabricating
thin-films on a substrate for semiconductor device applications,
particularly solar cells. Global Solar Energy's (GSE) thin-film
technology involves sequentially depositing thin layers of CIGS
materials onto stainless steel substrates. The resulting product is
lightweight, flexible and free of the fragility of crystalline silicon
PV technologies. CIGS cells have reached efficiencies of more than 19
percent, higher than other thin-film PV cells, such as amorphous
silicon.

The National Renewable Energy Laboratory (NREL) has entered into a
licensing agreement with Global Solar Energy. The CIGS technology will
provide Global Solar Energy a highly effective way to manufacture and
sell thin-film PV solar cells, introducing "the world's lightest, most
flexible solar panel." The solar cells come in 5, 10 or 20-watt sizes
and can be used as a battery charger as well as direct power source for
portable electronics such as GPS, cell phones, and laptop computers.
These applications have a wide range of civilian and military uses for
field applications, such as heaters for personal warmth and survival, as
well as powering equipment. The technology may ultimately find uses in
micro-grid and village power stations, telecommunications, and
stand-alone and remote power systems.

Upon securing the CIGS patent license, GSE signed an exclusive agreement
with CIP Global Technologies of Montreal, the world's largest
manufacturer of consumer solar products, to commercialize the CIGS thin
film products. It is anticipated that the thin film products will be
sold at stores like Radio Shack, Wal-Mart, and Costco. GSE also signed
an agreement with SunWize, a photovoltaics company in New York, who will
be sole distributor of the CIGS thin film products to a worldwide client
base.

● **Electrodynamic ion funnel**. Mass spectrometry is a widely used tool
in environmental, biotechnology, clinical, and drug testing
applications, as well as in medical, biological, and other broad areas
of scientific research. The use of mass spectrometry is strongly
affected by the sensitivity of the measurement that can be made. Pacific
Northwest National Laboratory's (PNNL) Electrodynamic Ion Funnel can be
used to increase sensitivity for many forms of mass spectrometry.

The Electrodynamic Ion Funnel is a revolutionary development that
focuses ions in gases, greatly improving the sensitivity of analytical
devices such as mass spectrometers that depend on ion formation and
transfer in the presence of gases. An additional benefit of the ion
funnel can be a significant reduction in the cost of mass spectrometers
as a result of its use.

Through a non-exclusive licensing mechanism, PNNL successfully
transferred the ion funnel technology to three leading manufacturers of
mass spectrometers: Micromass in 2001, Biospect, Inc. in 2002, and
Bruker Daltonics, Inc. in 2003, all major manufacturers of mass
spectrometers. Micromass' applications focus on the biotechnology,
pharmaceutical, clinical, analytical, environmental and geologic
sciences. Bruker Daltonics, Inc. is a leading manufacturer of mass
spectrometry instruments and accessories for pharmaceutical,
biochemical, and chemical research. Biospect, Inc., wants to use mass
spectrometry to analyze human bodily fluids as a way to predict for
diseases. The ability to define and monitor biological states through
analysis of bodily fluids could lead to a revolution in medicine and
biomedical research. Through their connections, these two companies will
enable broader use of mass spectrometers using the ion funnel.

● **Field-ready DNA testing systems**. Cepheid -- a California start-up
company that executed its license with Lawrence Livermore National
Laboratory (LLNL) in 1996 \-- has recently received much attention for
its field-ready DNA testing systems for rapid detection of deadly
biothreat agents such as anthrax. Cepheid is developing fully integrated
portable instruments and laboratory systems that can be used for rapid
detection of infectious disease agents, human genes, and industrial and
environmental contaminants quickly and accurately. These products will
enhance U.S. biodectector capabilities, which limit current ability to
protect against biological terrorism, thereby supporting DOE's mission
in responding to weapons of mass destruction and to counter terrorism.
The adaptation of LLNL technology, which is the basis of the Smart
Cycler®, a portable unit that allows customers to obtain bio-analytical
results when and where they are needed.

In May 2003, Cepheid announced that the United States Postal Service
(USPS) awarded Northrop Grumman Corporation\'s Security Systems LLC unit
a contract to manufacture and integrate Biohazard Detection Systems
(BDS) nationwide. Northrop Grumman is the prime contractor and systems
integrator of the BDS, which uses polymerase chain reaction (PCR)
technology, developed by Cepheid, to rapidly analyze air samples taken
from the mail sorting systems and detect trace levels of DNA from
anthrax spores and other biological agents as it moves through the mail
processing equipment. The BDS incorporates Cepheid's GeneXpert® modules
as its detection and identification system. Cepheid's GeneXpert® fully
automated gene analysis system also won an R&D 100 Award in 2002.
Technology licensed from LLNL is at the heart of this instrument as
well. In a September 2003 Global Security Newswire article, a USPS
representative indicated that a 15-city test of the BDS was completed
last month, and a USPS spokesman was quoted as describing the test as a
"resounding success."

● **Globus alliance leaders win FLC award**. The Federal Laboratory
Consortium (FLC) gave a 2003 Award for Excellence in Technology Transfer
to Argonne National Laboratory\'s scientists in recognition of their
leadership in Grid computing on behalf of the Globus Alliance. The FLC
awards annually recognize federal laboratory employees who have taken
technology from the laboratory and applying it in the outside world.\
\
Since 1996, the Globus Alliance has developed open-source Globus Toolkit
software that is central to virtually every major deployment of the
Grid, an interconnected computing environment that is transforming the
nature of science and engineering research. The technology lets users
share computing power, databases, and other tools securely online across
corporate, institutional, and geographic boundaries without sacrificing
local autonomy. In addition to its broad adoption for research, the
Globus Toolkit is a de facto standard adopted by major information
technology companies.\
\
First funded by the Department of Energy as fundamental research and
development, the Globus Alliance has been embraced by companies like
IBM, Oracle, Platform, Entropia, Compaq, Cray, SGI, Sun, Veridian,
Fujitsu, Hitachi, and NEC. Each uses the Globus Toolkit as the basis for
significant commercial products and services. The project\'s federally
sponsored mission continues while scientists are working with public-
and private-sector partners to define new standards called the Open Grid
Services Architecture, which promises increases in the availability of
Grid applications.

● **GREET model now includes additional hydrogen fuel pathways and fuel
cell vehicle options**. When advanced vehicle technologies and new
transportation fuels are being introduced, they first must be examined
on a full fuel-cycle basis, including energy feedstock production, fuel
production, and vehicle operations. To assist in this evaluation,
Argonne National Laboratory (ANL) scientists developed a model called
GREET (Greenhouse-gases, Regulated Emissions, and Energy use in
Transportation) to conduct full fuel-cycle analyses. The computer tool
evaluates more than 35 fuel production pathways and more than 50 vehicle
technologies/fuel systems on a consistent, systematic basis. Since the
first version was released in 1996, the model has been updated in
response to changing users' needs and industry trends. There are now
1,100 registered GREET users in both the public and private sectors
throughout North America, Europe, and Asia. The model provides
information for a variety of industry, government, and academic
organizations and institutions.

In one instance, GREET was used to analyze advanced vehicles and new
fuels in a major well-to-wheels study conducted for General Motors
Corporation (GM). GM, ANL scientists, British Petroleum, ExxonMobil, and
Shell participated in the study. When Phase 1 of the study was
completed, GM noted, "The results of the work will continue to influence
the automotive and energy industries and government policymakers as we
progress toward the introduction of advanced fuels and powertrains."
Phase 2 of the study, with a focus on criteria pollutant emissions, will
be completed by GM, ChevronTexaco, and Shell.

GREET was also used for a milestone government study on ethanol. GREET's
analysis of ethanol's greenhouse gas emissions (GHG) emissions may have
influenced the public debate on ethanol's energy and GHG emission
benefits. In a cover letter for the study, Jim Edgar, then Governor of
the State of Illinois, said, "Illinois is very pleased to have sponsored
and published the results of this research study. The results clearly
identify that ethanol outperformed conventional and reformulated
gasoline with respect to energy use and reducing greenhouse gas
emissions. The institution responsible for this study, Argonne National
Laboratory, is the recognized leader in modeling fuel cycle fossil
energy use and greenhouse gas emissions related to the transportation
sector. . . .What this means for the agriculture community, ethanol
producers, environmentalists, and policymakers is that ethanol fuel
deserves a major role in any global climate change strategy to reduce
greenhouse gas emissions in the transportation sector."

● **Grid technology is successfully integrated with inSORS software**.
The Access Grid Toolkit 2.0 and the inSORS software IG2.0 are now
interoperable, thanks to collaboration between Argonne National
Laboratory (ANL) and inSORS Integrated Communications, Inc. This
technical milestone is critical in meeting the increasing demand for
group-to-group collaboration across the computing environment, using
multimedia large-format displays for distributed workshops, lectures,
and training. The integration of the two technologies combines the
benefits of the ANL-developed Access Grid, including open source
software, with the specialized applications features provided by the
inSORS software, such as record and playback capabilities and remote
control for cameras.

● **Guest room occupancy sensor/LED nightlight**. As part of a small
CRADA partnership with The Wattstopper, Inc. and in collaboration with
the Sacramento Municipal Utility District (SMUD), Lawrence Berkeley
National Laboratory (LBNL) developed an integrated occupancy
sensor/nighlight providing significant energy and cost savings. LBNL
research showed that hotel bathroom lights are repeatedly left on when
rooms are vacated or used as nightlights during slumber. According to
the research, bathroom lights remained on anywhere from four to eight
hours. To address the problem, LBNL and Wattstopper developed an
occupancy sensor with a built-in nightlight. When the main bathroom
lights are shut off (also timer controlled), a pair of super bright
LED's built into the switch turn on automatically -- providing an
effective very low energy nightlight.

In cooperation with the partnership, the Double Tree Hotel in Sacramento
recently installed the combination occupancy sensor/LED nightlights in
400 guestrooms. The new integrated occupancy sensor/nightlights resulted
in a 50 percent reduction in guest room light usage with cost savings
exceeding \$8,000 per year. Guests of one hotel commented on improved
comfort and safety, because the LED lights provide enough light to
safely navigate a room without the blinding glare from turning on the
lights in a dark room. While occupancy sensors and nightlights have been
around for years, this partnership-developed occupancy sensor is the
first to have a built-in high-efficiency nightlight.

Steps are under way to implement the energy saving device in Hawaii
where there are many hotels and electricity costs are among the highest
in the Nation. The program is targeted at 50,000 units with a projected
energy savings of \$8,000,000 over ten years. In addition to hotels, the
device is suitable for residential construction, military housing,
senior housing, and convalescent homes. Implementing the technology is
simple and inexpensive; without risk, it improves safety and results in
a significant energy savings.

● **Handheld advanced nucleic acid analyzer** (HANAA). In January 2003,
Lawrence Livermore National Laboratory (LLNL) signed a non-exclusive
license for the Handheld Advanced Nucleic Acid Analyzer (HANAA)
technology, expected to be useful for chemical and biological detection,
with Smiths Detection -- Edgewood, Inc. (formerly Environmental
Technologies Group, Inc. and now a subsidiary of Smiths Aerospace). The
HANAA technology is at the heart of Smiths Detection Bio-SeeqTM product,
currently being marketed as the first portable, hand-held thermocycler
capable of detecting both bacterial and viral pathogens. Smiths
Detection's objective is to provide the Department of Defense and the
intelligence agencies with highly portable, advanced, bio-detection
instruments and to further the DOE objective of putting advanced
instrumentation for the detection of biological terrorist agents into
the hands of first responders. The HANAA analyzes biological samples for
the presence of specific DNA sequences that serve as the fingerprints of
specific pathogens. It can simultaneously test four samples, each for
two different DNA sequences, and have the results in about 20 minutes.
The HANAA provides the first truly man-portable, handheld, field-worthy,
real-time PCR bio-detection instrument. It is ideally suited for
emergency response where biological pathogens are suspected, and for
field monitoring where portability and fast answers are critical (e.g.,
monitoring water or food supplies for biological contamination in real
time). It can also be used in intelligence, combat, or reconnaissance
missions.

● **Implantable drug delivery devices**. Advanced Neuromodulation
Systems, Inc. (ANS) and Sandia National Laboratories (SNL) recently
executed a Work-for-Others agreement and related intellectual property
agreements to explore the possibility of using a microelectromechanical
system based microvalve in implantable drug delivery devices. ANS
designs, develops, manufactures, and markets advanced implantable
neuromodulation devices that deliver electrical current or drugs
directly to targeted areas of the body to manage chronic pain.
Commercialization of the microvalve technology in a medical application
could lead to other applications that directly support SNL\'s national
security mission.

● **Inductively coupled plasma/mass spectrometry collision cell
technology**. The Inductively Coupled Plasma/Mass Spectrometry (ICP/MS)
Collision/Reaction Cell (CRC) Technology developed at Pacific Northwest
National Laboratory (PNNL) has advanced the analysis capabilities of
mass spectrometer instruments worldwide. ICP/MS can now detect and
measure many important elements that are not detectable with
conventional mass spectrometry. This technology has had a significant
and widespread impact in the analytical chemistry world because of its
broad applications in environmental monitoring and testing,
biotechnology, semiconductor manufacturing, and homeland security.
Battelle, operating contractor for PNNL, has successfully licensed this
technology to manufacturers in several countries. Currently, more than
60 percent of the mass spectrometers sold worldwide incorporate the CRC
technology developed at PNNL.

● **Inductrack technology**. In July 2003, General Atomics signed a
license with Lawrence Livermore National Laboratory (LLNL) for the
Inductrack technology, a magnetic levitation system using new
configurations of high-field permanent magnets to create its own
levitating fields for urban and high-speed maglev train systems. The
features of this unique technology include passive levitation leading to
fail-safe behavior upon power loss, lower cost, and maintenance
requirements compared to those of existing maglev systems, tight turn
radius, steep hill-climbing capability, low noise, and low environmental
impact. General Atomics is the prime contractor for the General Atomics
Low Speed Maglev Technology Development Project, one of the projects
funded by the Federal Transit Administration (FTA) as part of their
Urban Maglev Program. The overall objective of this FTA program is to
develop magnetic levitation technology as a cost effective, reliable,
and environmentally sound transit option for urban mass transportation
in the United States. The Inductrack system represents an enabling
technology for urban maglev transportation that General Atomics hopes to
apply to cities throughout the nation.

● **Magnetic-microsphere-based technology for molecular separation and
detection**. Biophoretix, an Albuquerque-based biotechnology startup
company, entered into an exclusive license agreement with Los Alamos
National Laboratory (LANL) to commercialize a magnetic-microsphere-based
technology for molecular separation and detection. The technology's
potential ranges from ensuring the safety of the world's food, water,
and air supplies to monitoring the efficacy of medical treatments.
Biophoretix develops, manufactures, and markets diagnostic and discovery
systems based on its multiplexed separation technology, which integrates
easily with existing bioassay and detection systems. The Biophoretix
platform can make current tests more sensitive, cheaper, and faster,
while enabling many tests that are currently not possible.

Initial applications of the technology include accurate CD4/CD8
lymphocyte counts, necessary for monitoring drug therapies for AIDS, at
a cost and speed that make access to monitoring attainable in the
developing world. Monitoring in the United States and other developed
nations is slow, expensive, and reliant on central clinical
laboratories. This technology offers promise of closing that gap with
its rugged, inexpensive, and portable platform. Other applications
include a hepatitis panel, complete blood counts, and any testing that
requires the sorting of cells or other biological material. Target
markets for separating biological materials include: clinical
diagnostics, drug discovery, environmental monitoring, and for use in
bioterrorism detection.

● **Micro high-G acceleration devices in collaborative development**.
Recently, Sandia National Laboratories (SNL) and the ENDEVCO
Corporation, a leading supplier of dynamic instrumentation for
vibration, shock, inertial motion, and dynamic pressure measurements,
signed a CRADA to develop a high-G robust (60,000 g's) low-volume,
low-power, accelerometer and acceleration recording device. The CRADA
will help SNL design and develop smaller, lower power, acceleration
recording devices in support of its Defense Program and Emerging Threats
missions. ENDEVCO will be better able to meet its needs as a supplier to
both the defense industry and DOE/DP by increasing capabilities for
future weapon systems.

● **Millimeter wave holographic screening device**. During research
originally intended for the Federal Aviation Administration to augment
current airport security systems, a breakthrough technology was
developed. This technology, with applications spanning entertainment,
health, apparel, and security arenas, has significant benefits to each
industry and their consumers. The millimeter-wave holographic screening
device, developed by researchers at the Pacific Northwest National
Laboratory (PNNL) will be used by two different companies in two very
different industries: security and apparel.

The screening device uses non-harmful, ultra high-frequency radio waves
to penetrate clothing, enabling security personnel to detect both
metallic and nonmetallic concealed objects. This technology can also be
used to obtain accurate volumetric body measurements for improved
apparel fitting. The high-speed, full-body measurements capability
offers significant advantages over systems currently in the marketplace.

This innovative technology uses radar cylindrical holographic techniques
invented at PNNL and a new combined imaging algorithm to obtain complete
body measurements while the individual remains fully clothed in normal
attire. The system rapidly scans objects and sends reflected signals
into a high-speed image processing computer and then produces a
high-resolution 3-D image from the data.

PNNL has successfully licensed this technology to a company formed to
offer it to the security market and is under option to a second company
whose vision is to transform the way clothing is marketed and produced.

● **Miniature integrated nuclear detection system with improved
detection capability**. The Miniature Integrated Nuclear Detection
System (MINDS) is a type of radiation detector. The MINDS system acts as
a warning system to detect radiation from gamma and/or neutron emitters,
contained in objects, containers, or vehicles, or carried by a
pedestrian, and differentiate between sources of radiation from
threatening radio nuclides.  If the source of radiation is from a
threatening radionuclide, the MINDS activates an alarm when the signal
from the detection system exceeds a threshold. The system is very small
and can be manufactured for a very modest cost.  A field prototype has
been developed. The combination of low cost, modest size and ease of
manufacturability makes the MINDS a potential system that can be
deployed fairly soon and perhaps provide the detection and monitoring
capability needed to prevent another terrorist attack.

The development of the MINDS technology is a joint effort between the
U.S. Department of Energy\'s Princeton Plasma Physics Laboratory and the
Rutgers University Center for Advanced Information Processing (CAIP).  
The effort was also supported by funding from the U.S. Army at Picatinny
Arsenal.  The Princeton University Office of Research and Project
Administration is in discussions with potential licensees for the
technology.

● **Monitor for air particulates**. Los Alamos National Laboratory
(LANL) has licensed an environmental monitoring tool to Advanced
Realtime Technologies (ART), LLC, to develop a commercial version of a
cost-effective, real-time, continuous, field-portable, air-particulate
monitor. The core technology for ART was developed at LANL to compliment
the Department of Energy's Chronic Beryllium Disease Prevention Program.
The Laboratory's Industrial Business Development (IBD) Division is
assisting Advanced Realtime Technologies with business development. The
technology will have broad applications in environmental monitoring,
occupational safety inspection, mining processes, and the aerospace,
semiconductor, and petrochemical industries.

The instrument will combine the advantages of a highly sensitive
laboratory technique with the portability and ease-of-use of an
in-the-field instrument. It can be used for on-site environmental
pollution monitoring, real-time occupational safety inspection, and
industrial process control. Through real-time, highly sensitive
detection in the field, the instrument can provide instant feedback to
site-workers, allowing them to take prompt action to avoid overexposure
to harmful chemicals or environmental hazards.

● **Novel chemical sensing technologies for safety**. Development of
chemical sensing technologies, and especially sorbents for surface
acoustic array (SAW) sensors, is a long-standing aim of researchers at
Pacific Northwest National Laboratory (PNNL). Arising out of this work
is a patented hydrogen bonding polymer sorbent directed towards the
detection of nerve agents, which was recently licensed by Battelle,
operator of PNNL, to BAE Systems Integrated Defense Solutions. This
hydrogen bonding hybrid organic/inorganic polymer was designed to be
selective for nerve agents, and displays four times greater sensitivity
to nerve agents than any other known polymer used in SAW devices. BAE
Systems uses this polymer in the "JCAD Chem SentryTM" (Joint Chemical
Agent Detector) currently being delivered to the armed services. This is
a small, hand-held device that offers state-of-the-art chemical warfare
detection capabilities. BAE's system using PNNL developed technology
will soon to be available in a version for sale to civilian markets.

● **Opening new markets for agricultural by-products**. Each year, the
U.S. corn milling industry generates almost 14 billion pounds of fiber
(as hulls) during the processing of corn kernels to obtain starch,
protein, and vegetable oils. Cattle feed is the primary use for this
fiber byproduct and is typically the lowest value product of corn
milling. But processes developed through a Cooperative Research and
Development Agreement (CRADA) between Pacific Northwest National
Laboratory (PNNL) and the National Corn Growers Association (NCGA) show
promise for changing the way corn kernels are processed.

Researchers at PNNL have developed processes that will reclaim greater
value from this resource by separating the corn fiber into its basic
components: lipids, carbohydrates, proteins. These products will then be
used to produce fuel ethanol and the building blocks for industrial
chemicals, as well as higher value food, feed, and consumer products.
The group is taking a low-market value byproduct and opening up new
markets, while also creating new supplies for existing, higher-margin
markets.

Initiated in 2001, the CRADA extends previous work, which resulted in
technology for converting of five-carbon and six-carbon sugars derived
from corn fiber to ethylene glycol or propylene glycol. In order to
commercialize the technology, Battelle and NCGA have entered into
license and income sharing agreements. Battelle, as operator of PNNL,
serves as the commercialization agent for laboratory-derived
technologies.

Depending upon how the conversion process is conducted, one may obtain
either mixed or pure streams of the glycol products. The mixed products
production process was licensed to NCGA for use as coalescing solvents,
paraffin substitutes, and industrial emulsifiers; with Battelle
retaining responsibility for licensing the pure products production
process, and then sharing that licensing income with NCGA. Researchers
from Michigan State University also contributed to the work developing
the six-carbon conversion process, and the license and income sharing
agreements between Battelle and NCGA were specifically crafted to
reflect their contribution and to return licensing income to Michigan
State.

● **Oak Ridge National Laboratory wins four *R&D 100* awards**. In FY
2003, researchers at the Department of Energy's Oak Ridge National
Laboratory (ORNL) won four research and development awards from *R&D
Magazine* (which since 1963 has given the awards for the 100 most
significant innovations of the year). ORNL's total of 116 awards is
second only to General Electric. The following inventions received
honors:

RAMiTS, Raman Integrated Tunable Sensor, is a compact,
"point-and-shoot," fully integrated, battery-operated Raman monitor and
is based on solid-state acousto-optic tunable filter technology. Outside
the laboratory, this device can perform qualitative analysis of chemical
and biological samples in seconds. RAMiTS can identify hundreds of
substances, including toxic chemicals, by-products from explosives,
biomedical markers, pharmaceuticals, and illicit drugs. RAMiTS also
could help revolutionize sensing applications such as environmental
monitoring, medical diagnostics, and homeland security, researchers
said.

MicroTrapMS is a highly miniaturized ion trap mass spectrometer that is
based on ORNL patented technology. The product can be used for
applications from on-line screening for toxins in municipal watersheds
to detecting hazardous substances at airport checkpoints. MicroTrapMS
will enhance real-time capabilities of field engineers to sweep many
local areas for pesticides, drugs, explosives, and more. MicroTrapMS has
the power of a conventional mass spectrometer at a lower cost.

CF8C-Plus is designed to drastically improve high-temperature
durability, performance, and reliability based on ORNL's unique
engineered microstructure alloy development methodology. The engineered
microstructure method dramatically changes CF8C-Plus from steel that
cannot be used above 600-650 degrees Celsius to steel that can be used
up to 850 degrees Celsius and resists failure during creep, mechanical
fatigue and thermal fatigue. Developers said that end users like
Caterpillar or commercial foundries like MetalTek will benefit from
CF8C-Plus because it is a cost-effective product with higher performance
and immense reliability.

The Uncooled Micromechanical Infrared Camera (UMIR-Cam) is a sensitive,
miniature imaging, and infrared photo-detection device. It runs at room
temperature and can be used in a number of endeavors, including night
vision, industrial process monitoring, and medical imaging. It also can
help firefighters see through smoke and has particularly important uses
in the commercial and military sectors, because infrared radiation is
the second-most intense source of radiation in our environment.

● **Processing technology for cleaning, decontaminating, and etching
surfaces**. APJeT, a startup company that holds an exclusive license for
materials processing technology developed at Los Alamos National
Laboratory (LANL), recently announced \$3 million in funding by two
strategic investors. APJeT's technology was invented at Los Alamos
National Laboratory by, a LANL physicist who is now APJeT's president
and CEO. The technology produces a gas stream of reactive chemicals that
can clean, decontaminate, etch, or coat surfaces at atmospheric pressure
and low temperatures. Heretofore, such plasma treatments could take
place only in a vacuum, a process that is considerably slower and more
costly than the APJeT solution.

The new technology aids in treating synthetic fibers to make them absorb
or repel water, removing photo-sensitive material from silicon wafers,
depositing thin films, and decontaminating surfaces exposed to chemical
and biological warfare agents, such as anthrax spores. It could also be
used in sterilizing medical products for the health care industry. Other
investors in the company include Air Products & Chemicals of Allentown,
Pennsylvania, a market leader in industrial gas and chemical processing,
and Advanced Energy Industries of Fort Collins, Colorado, a global
leader in plasma source and power supply systems used in the manufacture
of semiconductors, data storage products, and flat panel displays.

● **PVScan and Reflectometer**. PVScan is a high-speed optical scanner
designed for characterizing photovoltaic (PV) materials and devices. It
is used to analyze defects in semiconductor material and identify
problems in the fabrication of electro-optical devices such as PV cells.
The system is capable of measuring defect densities, grain-boundary
distributions, reflectance, and light-beam-induced current (LBIC) on
devices up to 20 cm x 20 cm and at rates up to 10 cm per second. The
system, recognized by an *R&D 100* award as one of the best technologies
of the year in 1993, provides valuable information for both crystal
growers and process engineers, who require quick feedback on process
changes. It has worldwide economic development applications for the
semiconductor and PV markets by being able to quickly test for and
identify defects in the wafers so that the manufacturing processes may
be changed and quality may be improved, thus improving the efficiency
and cost-effectiveness of the product.

The Reflectometer is a patented optical system for determining physical
characteristics of a solar cell. It is used to help PV manufacturers and
research and development laboratories produce high yields of
high-quality cells to make high-quality PV modules. Using reflectance
spectroscopy, the Reflectometer can measure physical parameters of
wafers, wafer surfaces, and other materials deposited during solar cell
fabrication. The market strength for the Reflectometer is through its
unique design approach to production monitoring systems that is capable
of very high throughput with accuracy and sensitivity.

The National Renewable Energy Laboratory (NREL) entered into licensing
agreements with GTi Equipment Technologies, Inc. (GTi) to further
develop and commercialize the PVScan and Reflectometer technologies. GTi
is a small but profitable business specializing in the design and
production of semi-custom and specialty equipment for materials
processing industries, serving niche markets for semiconductor and
photovoltaic applications. GTi's solar division provides equipment,
support, and training for turnkey solar panel manufacturing projects
worldwide. GTi has already begun selling new products that integrate
these technologies.

● **RadScout radiation detector and analyzer**. The ORTEC Products
business unit of AMETEK signed a non-exclusive license agreement with
Lawrence Livermore National Laboratory (LLNL) in April 2003 to
commercialize the Lab's RadScout radiation detector and analyzer. The
technology is a premier example of Homeland Security applications moving
to the market place. ORTEC, based in Oak Ridge, Tennessee, will
incorporate the RadScout technology into its next generation of advanced
portable nuclear detection systems. The detector features a miniaturized
refrigeration system that eliminates the need to carry liquid nitrogen
to cool the device's high-purity germanium crystals. Those crystals are
used to detect minute amounts of neutrons and gamma rays emitted by
radioactive materials. First responders can use these high-performance,
high-resolution portable systems at border crossings, cargo ship docks,
transportation terminals, post offices, etc., to quickly differentiate
between potentially dangerous radioactive materials and harmless
radiation sources, and to determine whether or not they pose a threat.
ORTEC plans to market the detector within a year as the Detective and
Detective-EX. The detectors are part of a suite of technologies either
offered or under development by ORTEC for Homeland Security.

● **R&D awards for Sandia National Laboratories' technologies**.
Developed under a Shared Vision program, the SnifferStar™ mounts on a
drone aircraft for remote surveillance of battlefield situations where
suspect plumes or clouds are present. The detector's primary purpose is
to save lives by warning soldiers that chemical weapons are present on a
battlefield. The entire module weighs less than a golf ball, operates on
0.5 watts, and uses the wind generated by the motion of the craft to
collect samples for analysis. SnifferStar technology isolates compounds
of concern from common interferents and is capable of analyzing chemical
blister and nerve agents in 20 seconds. The device also has potential
for use in public buildings and military bases.

Acoustic telemetry technology, developed at SNL in cooperation with
Extreme Engineering Ltd. of Calgary, Alberta, and with support from DOE,
represents the fulfillment of an oil-industry quest that goes back to
the 1940s. As more accessible reserves have been depleted, deeper and
more complex extraction techniques have become necessary, making better
communication between the driller and the drill bit more critical.
Existing communication methods, based on mud-pulse techniques, were
revolutionary when introduced in the early 1980s. But mud-pulse is
slow---much, much slower than even first-generation telephone modems.
Acoustic telemetry technology uses the well-drilling tubing as the data
transmission medium and sound waves as the data carrier, creating a
10-fold improvement in data rates and thereby improving drilling control
and accuracy.

A large group of collaborators from SNL, Lawrence Livermore National
Laboratory, and Lawrence Berkeley National Laboratory were honored for
developing the Extreme Ultraviolet Lithography (EUVL) Full-Field
Step-Scan System, a technological advance that will lead to dramatic
improvements in the speed and memory of computer systems. (See also
previous section). Researchers created the only system that can pattern
full chip-size areas on silicon wafers with features as small as 50
nanometers. It is the embodiment of a set of groundbreaking technologies
that were considered by many to be impossible as recently as a few years
ago. In addition to the national laboratory team, the award is being
given jointly to Northrop Grumman Space Technology/Cutting Edge
Optronics. The work was done in partnership with an industrial
consortium comprising Intel, Motorola, AMD, Infineon, IBM, and Micron.
Intel ordered the first production-level instrument based on this
technology last year.

The Low Emissions Atmospheric Metering Separator (LEAMS) is a family of
atmospheric geothermal separators used in developing geothermal power.
LEAMS safely contains and cleans the steam vented into the atmosphere of
polluting solids, liquids, and noxious gasses. LEAMS can be used in
drilling, well testing, and geothermal power plant start-up. In
partnership with Sandia, LEAMS technology was developed by Two-Phase
Engineering and Research, Inc., Santa Rosa, California, and fabricated
by Drill Cool Systems, Inc., Bakersfield, California.

The Adaptive Optics Phoropter system uses a micro-electro-mechanical
(MEMS) based deformable mirror technology in a compact, transportable
system that expands upon traditional devices used for optometry. In
addition to determining corrections needed for near-sightedness,
far-sightedness and astigmatism, it also determines correction needed
for high-order aberrations that can interfere with night vision and can
provide a preview of correction to a patient. Technologies from
astronomy and micromachining are combined to advance the study and
treatment of retinal diseases. Applications for the tool include
generation of improved prescriptions for custom contact lenses or laser
eye surgery, as well as high-resolution retinal imaging. The
partnership, led by Lawrence Livermore National Laboratory, includes
Sandia, the University of Rochester, Wavefront Sciences, Boston
Micromachines Corp., and Bausch & Lomb.

Lightning strikes, equipment failures, or other anomalies in electric
powered transmission systems can cause brown-outs or even network
failures. But a fast-response semiconductor device developed under
Sandia's direction allows a utility to rapidly convert energy stored in
a DC device into AC power and minimize the effects of interruptions on
electrical devices. Under the auspices of the DOE Energy Storage Systems
Program, Sandia-led researchers at Virginia Tech in developing the
advanced semiconductor unit, called an ETO (emitter turn-off thyristor).
The ETO is rated at 4,000A and 4,500V and can switch power at 1-3
kHz---far exceeding other devices. The component could become a critical
part of inverters, motor controllers, and many other power electronics
systems that require medium voltage and high-current switches. In
addition to inventors at Virginia Tech, the ETO was developed with
Solitronics (a Blacksburg, Virginia, small business) marketing the ETO
and the American Competitiveness Institute in Philadelphia.

● **RAM^SM^/VAM^SM^ technology aids in assessing vulnerabilities to the
Nation's infrastructure and facilities**. In response to an increased
need for assessing the vulnerabilities of dams, transmission lines,
water utilities, communities, and chemical facilities, Sandia National
Laboratories (SNL) has developed a variety of risk assessment
methodologies (RAMs^SM^) and vulnerability assessment methodologies
(VAMs^SM^) and licensed these technologies to the private and public
sector. These commercial licenses are offered with very reasonable
financial terms in an effort to encourage the participation of many
small business entities. The licenses allow non-SNL personnel to train
third parties in the use of some of the methodologies (i.e. RAM-W^SM^
and CVAM^SM^) and standard licenses that allow access some of the
methodologies quickly (i.e. RAM-D^SM^ and RAM-T^SM^). Beyond simply
developing the licensing mechanisms, techniques have been developed to
ensure that export control requirements are met while still providing
exceptional turn-around when licensing requests are made, with licenses
being placed within 24 hours of the initial contact in time-critical
situations. In all, more than 200 licenses have been put in place for
the various RAMs^SM^ and VAMs^SM^ technologies.

● **Safer stun grenades protect hostages, can be reused for training**.
Diversionary devices -- also called stun grenades or flash-bangs -- are
used when law enforcers need to temporarily disable the occupants of a
room, for example, in hostage situations. To use a stun grenade, the
officers break down a door or smash a window of the room containing the
hostages and captors, then lob in the explosive device. The nonlethal
device -- about the size of a soda can -- creates a blinding, deafening,
but not deadly explosion. Most devices currently in use contain a metal
powder that violently combines with an oxidizer. When this mixture is
ignited by a grenade-style fuse, an explosion takes place within the
body of the device, creating a zone of extreme pressure that may be
dangerous if the device lands too near a person. The explosion also
destroys the shell of the device, making the current flash-bangs
expensive to use as training tools.

Prison officials require a grenade that, if remaining whole after use,
is too soft and flexible to be used as a weapon by rioting convicts.
Soldiers need a lightweight canister that can be carried over long
distances. Police do not want the canister to contain any explosive
material that could be turned into a bomb.

SNL's new configuration satisfies a variety of law enforcement needs.
The explosive source in Sandia National Laboratories' (SNL) stun grenade
fans out as an airborne powder before it ignites, making it less
dangerous. This new device is made of plastic and contains metal powder
but no oxidizer. Instead of ignition within the device, the particles
are forced out like a burst of talcum powder through holes in the bottom
of the canister. The particles form a sheet of metal dust about five
feet in diameter before igniting by combining with oxygen present in the
atmosphere. The distributed powder lowers the pressure in the immediate
vicinity of the exploded device to a safer level. This design leaves the
canister undamaged, making it more economical to use as a training
device.

● **Simulation of comet impact**. Sandia National Laboratories (SNL) has
been asked by the Denver Museum of Nature and Science to develop a
realistic computational simulation of a comet impact on Jupiter's moon
Europa. This work builds on SNL's past analysis of the Shoemaker-Levy
(SL9) impact on Jupiter itself. The SL9 work won several international
awards and is generally regarded as the most predictive of analyses
completed before the impact. SNL will use the shock physics code CTH to
model the first few minutes of the hypothetical impact event. SNL is the
developer of the CTH code, which is widely used in the DOE and DoD
weapons laboratories. CTH was developed with DOE funds for Defense
Program needs and is currently receiving support and development funds
from the DoD/DOE Memorandum of Understanding for conventional munitions.

● **Solar water heating technology transferred**. The Salt River Project
(SRP) Agricultural Improvement and Power District (in Arizona) has
signed a CRADA and a Work-for-Others agreement with Sandia National
Laboratories (SNL) and a manufacturing license agreement with Energy
Laboratories, Inc. to develop an innovative all-stainless-steel solar
domestic water heater. SNL developed and patented a laser welding
process used in assembling the solar array. The laser welder and
associated equipment will be loaned to SRP for the duration of the
agreements and used at the Energy Labs' manufacturing facility in
Jacksonville, Florida, to prove this technique in a manufacturing
environment. SNL also has the expertise and data on stainless steel to
achieve certification from the Solar Rating and Certification
Corporation. Two other SNL patents (pending) are used for the solar
selective black coating that is applied to the copper fins used in the
solar panels.

● **Tank retrieval processes**. Sandia National Laboratories (SNL) has
recently completed a USIC/IPP-funded CRADA with Mississippi State
University's Diagnosis and Instrumentation Analysis Laboratory
(MSU/DIAL) for developing technologies to retrieve liquid and solid
radioactive wastes from tanks used during cold-war weapons production.
The partners, including participants from the Newly Independent States
of the Former Soviet Union, successfully demonstrated three
technologies: chemical softening of hard sludges, bulk retrieval of
liquid and solid sludges, and separation of radioactive components in
aqueous solutions. One emerging technology, the pulsating mixing pump,
has been demonstrated to Hanford and Savannah River Site personnel. The
pump has no replaceable parts inside the tank, is easily mounted on the
tank top, and recirculates the water or other liquid being used to
mobilize the tank wastes. The Russian-developed pulsating mixing pump
offers a cost-effective and operationally efficient way to support DOE's
commitment to resolve tank waste problems at contaminated sites. The
technology is now being commercialized through the creation of a company
(employing the Russian personnel and management) that will offer tank
retrieval and decontamination services worldwide. This second-phase
activity is conducted under the Nuclear Cities Initiative Program of
DOE-NNSA Russian Transitions Initiative Office.

● **U.S. military using gun-shot residue kit in Iraq**. On August 5,
2003, MSNBC News reported that U.S. military forces in Iraq are using a
Sandia National Laboratories' developed gun powder residue kit to
identify whether a suspected shooter has fired a weapon in the previous
24-48 hours. The field test kits, known to the military as RIFFs, are
produced by Law Enforcement Technologies, Inc., of Colorado Springs,
Colorado. MSNBC quotes retired Army special operations forces leader
Colonel Andy Gembara, now a board member of Law Enforcement
Technologies, "The Army wanted something small. It is meant to be
provided to patrols and to MPs (military police) so they can help sort
out the good guys from the bad guys." Gembara says the Army and Marine
Corps have purchased thousands of cases of the kits in the past few
months.

● **VISTA, an intuitive Web-based software for visualizing genome
comparisons**. Now that the Human Genome Project is nearly complete, one
of the most promising new paths to gaining useful knowledge from the
human DNA sequence is the growing field of comparative genomics. By
comparing the human genome with the genomes of various other organisms,
scientists can identify common regions of DNA, gain insights into how
genes are switched on and off, and further their understanding of the
human genome's evolution, structure and function.

Lawrence Berkeley National Laboratory (LBNL) has developed a
user-friendly computer program, VISTA, which enables researchers to
quickly compare the genomes of various organisms. VISTA (Visualization
Tool for Alignments) software depicts long sequence alignments of DNA
from two or more species in an easy-to-read graphical format that
clearly illustrates the extent to which the sequences are similar or
different. VISTA also functions to match common regions of DNA from two
different organisms, at lengths of DNA ranging from less than a single
gene to whole genomes.

LBNL has also implemented a multi-pronged approach to ensure the
software's broad dissemination. The lab developed a Web site and Web
interface so that the programs could be used over the Web or downloaded
to the user's computer. VISTA has become one of the most popular and
widely praised comparative genomics tools available to biologists,
geneticists, and biomedical researchers. In FY 2003, researchers from 41
countries used the system, submitting nearly 22,000 DNA sequences to the
VISTA Web site for analysis. LBNL also granted close to 1,000 academic
research licenses in FY 2003 and sold its eighth commercial license.
LBNL continues to make the program available over the Web free of
charge.

# 3.5 Environmental Protection Agency

[]{#EPA .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
the agency's Office of Research and Development (ORD) and other
divisions with federal lab technology transfer. For additional details,
readers should consult the department's full report.[^29]

■ **Collaborative Relationships for Research and Development**

![](media/image66.wmf){width="6.491666666666666in"
height="3.0541666666666667in"}

■ **Invention Disclosure and Patenting**

![](media/image67.wmf){width="6.491666666666666in"
height="1.832638888888889in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image68.wmf){width="6.502777777777778in"
height="4.986805555555556in"}

**Licensing Management**

![](media/image69.wmf){width="6.491666666666666in"
height="3.123611111111111in"}

**Characteristics of Licenses Bearing Income**

![](media/image70.wmf){width="6.495833333333334in"
height="5.850694444444445in"}

**Income (annual) from Licenses**

![](media/image71.wmf){width="6.495833333333334in"
height="8.092361111111112in"}

**Disposition of License Income**

![](media/image72.wmf){width="6.491666666666666in" height="3.33125in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

EPA's FY 2003 report included the following selected examples of
downstream outcomes from the technology transfer activities of its
federal labs.

● **Technology for the Identification and Quantification of Molds Using
Quantitative Polymerase Chain Reaction** (QPCR). This technology was
developed by EPA without a CRADA. However, since the technology was
patented, EPA has entered into approximately 15 CRADAs (with more on the
way) with companies in the United States and the European Union. Through
these CRADAs, EPA scientists have been training company staffs in the
protocols and application of the technology. The CRADAs have also given
EPA access to collaborations with scientists around the world. These
collaborations are bringing samples and data into the laboratory that
would not have been available to the EPA. EPA is now respected for its
leadership on this issue. EPA scientists are now invited to provide
lectures, presentations and training to other government agencies,
civic, academic, medical, construction and legal groups. The EPA is now
a major player in the world in improving our understanding of building
ecology, where humans spend 90 percent of their time.

The technology is now commercially available in the United States and
the European Union. Information on the technology and a list of the
companies that have licensed the technology can be found at
<http://www.epa.gov/nerlcwww/moldtech.htm>. Additionally, companies in
Canada, Japan, and Australia are in various stages of licensing the
technology. Although the technology was only patented in 2002, at last
reporting well over \$1 million in business had already been done. This
technology has created jobs for American people and income for U.S.
companies.

As a spin-off of this technology, applications in other fields are being
identified. For example, one of the licensed companies is going to be
using this technology to monitor mold contamination in food, feed and
pharmaceuticals. Molds, and the toxins they produce, are major issues in
agriculture and the food and drug industry. Use of this technology
should help prevent these kinds of contamination or, at least, identify
when they have occurred before they become a part of the final product.

In medicine, hospitals have a major problem with nosocomial mold
infections in their patients. These types of infections frequently
(60-90 percent) result in the death of the patient. Use of this
technology in the health care arena is already happening. Although not
directly EPA's "business," this application will likely prevent deaths
in hospitals.

As a result of license fees and royalties, the laboratory has been able
to invest in new developments that are furthering its leadership role in
building ecology and health studies. For example, a patent was recently
filed on a new technology for measuring "human exposure to molds." This
will form the basis for new technology, which is in the process of being
commercialized. Our strong position in the field, as a result of the
previous licensing, will allow EPA to help our clients -- the American
people -- by providing the technology for addressing human exposures. We
are transferring this new technology to CDC-NIOSH, so that it can better
investigate workplace problems.

● **Hydraulic Hybrid Motor Vehicles.** The EPA, through its National
Vehicle and Fuel Emissions Laboratory in Ann Arbor, Michigan, owns
several patents for inventions related to fuel efficient hybrid motor
vehicles, particularly highly efficient hydraulic hybrid vehicles. The
EPA's hydraulic hybrid vehicles have shown the potential for
significantly greater fuel mileage (and reduced cost), even compared to
new, state-of-the-art gas-electric hybrid vehicles that are currently
gaining acclaim among the environmental community. Currently, first
generation demonstration vehicles for the EPA's hydraulic hybrid
technology have been completed and tested with great success. As a
recent example, in November 2003, a demonstration EPA hydraulic hybrid
urban delivery vehicle (using a 2003 Ford F550 chassis) competed in the
heavy duty portion of the international Michelin Challenge Bibendum, and
received attention for achieving a top award ("A") in energy efficiency
at the competition. Because of the technology's promise for the future,
multiple industry partners continue to be actively engaged in working
with the EPA to further develop this hydraulic hybrid technology for
commercial production.

# 3.6 Department of Health and Human Services

[]{#HHS .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
the department's following divisions: National Institutes of Health
(NIH), Food and Drug Administration (FDA), and Centers for Disease
Control (CDC). For additional details, readers should consult the
department's full report.[^30]

■ **Collaborative Relationships for Research and Development**

![](media/image73.wmf){width="6.490972222222222in" height="2.64375in"}

■ **Invention Disclosure and Patenting**

![](media/image74.wmf){width="6.490972222222222in"
height="1.3736111111111111in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image75.wmf){width="6.490972222222222in"
height="4.307638888888889in"}

**Licensing Management**

![](media/image76.wmf){width="6.490972222222222in"
height="3.245138888888889in"}

**Characteristics of Licenses Bearing Income**

![](media/image77.wmf){width="6.490972222222222in"
height="5.295138888888889in"}

**Income (annual) from Licenses**

![](media/image78.wmf){width="6.490972222222222in"
height="7.642361111111111in"}

**Disposition of License Income**

![](media/image79.wmf){width="6.490972222222222in"
height="3.1708333333333334in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

HHS' FY 2003 report provides the following selected examples of
downstream outcome arising from the technology transfer activities of
the department's federal labs:

***National Institutes of Health***

● **Formulation technology in the cancer drug Velcade®**. Velcade® is
the first therapy for multiple myeloma approved by the FDA in more than
10 years. A license to Millennium Pharmaceuticals (L-271-2001/0)
concerned the formulation technology for this cancer drug. With the
incidence of multiple myeloma expected to reach 15,000 new cases
annually, the development of this product dramatically supports the
public health mission of the NIH.

● **Software for data management**. A license to Agilent Technologies
(9L-073-2002/0) has resulted in development of a scientific software
platform for data management. This platform will allow basic researchers
to more easily distribute and share their research findings.

● **New molecular diagnostic for adverse effect predispositions to
5-fluorouracil chemotherapy**. A license to IMPATH (L-310-2002/0) has
addressed development of a new molecular diagnostic used for the
identification of pre-dispositions to adverse effects following
treatment with the common chemotherapy 5-fluorouracil (5-FU).
Approximately 1 percent of the general population carries this mutation,
which results in severe toxicity and oftentimes death, following 5-FU
treatment. Early diagnosis will aid in determining which patients should
not undergo 5-FU treatment and should prevent these premature deaths.

● **Tissue microarray products**. A license to Chemicon International
(L-179-2002/0) concerns development of tissue microarray products.
Tissue microarray technology is expected to expedite drug discovery.
This means that news drugs can be developed more expeditiously than in
the past, which should also positively affect the public health mission
of the NIH.

● **DNA-based vaccine therapeutic for treating a variety of solid and
hematological cancers**. Currently available cancer therapeutics have a
variety of mild-to-severe side effects. Although, cancer vaccines, which
have recently been successful in several clinical trials, offer the
promise of a therapeutic with few-to-none side effects. A license to
Cell Genesys (L-078-2003) is for a cancer vaccine, which will be based
on a National Cancer Institute technology, mesothelin (which is
expressed in a number of different cancers but not in normal tissue).
Cell Genesys plans to pursue pancreatic cancer as a first target, which
is a disease for which there are few effective treatment options.

● **Cell line that expresses hyper-glycosylated human chorionic
gonadotropin**. A license to Nichols Institute Diagnostics (L-015-2003)
is for a cell line that expresses hyper-glycosylated human chorionic
gonadotropin (HCG). HCG is expressed most highly during pregnancy, and
is used as a marker to detect Downs Syndrome in-utero. Current assays
for Downs Syndrome are problematic for two reasons. First, because the
detection rate is relatively low: the currently available test only
detects Downs approximately 50-85 percent of the time, depending on
exactly which tests are performed. Second, there is also a high rate of
false positives: the vast majority of women who receive a positive
result will, in fact, have normal babies. This causes much unneeded
stress on families and medical professionals. It is anticipated that
this cell line, when integrated into a new test kit for Downs Syndrome,
will greatly increase detection rates, and decrease false positive
readings for tests performed as part of an amniocentesis.

***Centers for Disease Control and Prevention***

● **Recombinant DNA antigen for West Nile Virus**. In 1999, New York
City and surrounding areas experienced an outbreak of viral encephalitis
that caused seven deaths with 62 confirmed cases. Concurrent with this
outbreak, local health officials observed increased mortalities among
birds (especially crows) and horses. The outbreak was subsequently shown
to be caused by West Nile Virus (WNV), a mosquito borne flavivirus that
is transmitted by various species of mosquitoes. The most serious
manifestation of WNV infection is fatal encephalitis (inflammation of
the brain) in humans and horses, as well as mortality in certain
domestic and wild birds. In 2002, there were 4,156 and 14,571 reported
cases of WNV human and equine infection, respectively, with the virus
reaching 44 states. Faced with the rapid spread of WNV, CDC worked
quickly with national and state authorities to develop a comprehensive
national response plan.

Accurate WNV diagnostic tests and preventatives are essential tools for
the development of effective surveillance, prevention, and control of
WNV. In response to this crisis, CDC developed a recombinant plasmid
expressing a critical WNV antigen that provided the necessary
specificity for diagnostic purposes and proved highly effective as a
vaccine. CDC has patent applications pending on both the early
flavivirus constructs and the WNV specific construct. This antigen was
incorporated into a diagnostic test for WNV IgM and IgG antibodies in
humans and animals. The tests were immediately distributed to national
and state public health labs in order to facilitate the formation of a
national surveillance program. The value of this antigen over then
available antigens for diagnostic testing was quickly recognized by the
private sector and the antigen has now been licensed to 10 companies for
use in WNV diagnostics worldwide. Within two months of the first
commercial license, the WNV recombinant antigen was available as a
commercial product and, within one year, a diagnostic test kit
incorporating the antigen received FDA approval.

In direct collaboration with the academic community and the private
sector, CDC facilitated the use of the WNV recombinant DNA as a vaccine
in horses and birds. Currently working its way through USDA approval,
the horse vaccine will be the first recombinant DNA vaccine approved for
use anywhere in the world. As a second-generation horse vaccine, the CDC
WNV recombinant DNA will provide greater vaccine efficacy and allow for
improved surveillance by providing researchers with the ability to
distinguish between natural infection and vaccine-induced immunity. In
2002, an emergency effort was initiated to evaluate the DNA vaccine for
protection of birds on the endangered species list and resulted in the
vaccination of more than 220 condors in the California condor recovery
program.

● **Improved detection technology for occupational and general public
exposures to lead**. Lead poisoning is a global problem having
significant public health and occupational health consequences.
Worldwide, 240 million people are estimated to have health risks from
lead poisoning. There is no level of lead in blood that is considered
normal or safe. Lead is the number one environmental health hazard to
children. From a U.S. public health perspective, about 900,000 children
ages 1 to 5 have a blood lead level of concern. Occupational exposure to
lead is one of the most common over exposures found in U.S. industry,
and a leading cause of workplace illness. The U.S. Occupational Safety
and Health Administration (OSHA) has deemed the reduction of
occupational lead exposure a priority.

In response, scientists at CDC's National Institute for Occupational
Safety and Health (NIOSH) developed a new handwipe technology for lead,
as a cost effective way to significantly reduce lead exposures in
workers as well as the general public through risk awareness. The
technology is novel, sensitive, and specific. The results of a test are
immediate: a color change from yellow to red indicates the presence of
lead (the red color is intended to suggest to the user: \"Stop! If it\'s
red, there\'s lead!\"). The method will identify lead in the tens of
millionths of a gram! The technology was awarded a U.S. patent and is
licensed to SKC, Inc., a U.S. company that is a global leader in
sampling technologies. The company has created a web site for this
technology (http://www.skcinc.com/prod/550 001.asp), and it is selling
well. Through this successful technology transfer to SKC, this invention
is now available to help industries to meet OSHA\'s goal of reducing
occupational lead exposure and help the U.S. Public Health Service meet
its Healthy People 2010 goal to reduce the number of persons with
elevated blood lead levels to zero by the year 2010.

● **Pneumococcal vaccine**. CDC's pneumococcal vaccine candidate,
patented and licensed to Aventis Pasteur, is nearing the successful
completion and phase 1 clinical trials and is scheduled to begin phase 2
trials later this year. This vaccine recognizes all 90 serotypes of
streptococcal pneumonia. Currently available vaccines recognize only 16
of the serotypes. Diseases caused by this infectious agent include
pneumonia in children and adults, and otitis media in children, the
dreaded ear infection that so plagues our children in their infant and
toddler years. We anticipate that in just a few more years, both of
these diseases will be completely preventable through early vaccination.

● **Automatic warning system for mine worker exposures to nearby
vehicles and machinery**. In response to a fatal mining accident, CDC's
National Institute for Occupational Safety and Health (NIOSH) invented a
new technology that will save the lives of mothers and fathers who toil
in our Nation's mines. The installation of our Perimeter Warning System
in large mining vehicles and machinery automatically alerts the operator
to the presence of workers near enough to the equipment to be in danger
of being struck by the vehicle or machinery, allowing the shutdown of
the equipment in time to avoid a potentially fatal accident.

● **Human Microvascular Endothelial Cell Line**. CDC continues to
distribute widely the Human Microvascular Endothelial Cell Line, HMEC-1
that was developed by CDC scientists several years ago. Endothelial
cells are crucial components of basic physiological processes such as
tumor growth, wound healing, graft rejection, inflammation, circulation,
and immune function. Most of these processes occur at the blood vessel
level. The very qualities of endothelial cells present a problem for
researchers because they are difficult to isolate and have a limited
life span. As a result, scientists have had to use highly variable human
tissue or live animals to conduct experiments. When faced with this
problem, two scientists at CDC's National Center for Infectious Disease
used human cells provided by Emory University to create HMEC-1, the
first immortalized human microvascular endothelial cell line that
retains the morphological, phenotypical, and functional characteristics
of normal cells.

Other scientists and physicians throughout the United States and in 25
other countries on six continents have distributed this cell line for
use. The HMEC-1 cell line is now used as an alternative to animal
testing in the cosmetic and pharmaceutical industries to screen new
compounds and drugs for toxicity to skin. Its impact includes a
significant reduction in the use of animals in laboratory experiments
and testing, and its widespread use as an essential tool for many
scientists for research in the fields of drug screening, viral
infectivity, immune function, wound healing, toxicity testing, and
carcinogenicity testing. The cells are also used to produce and harvest
cellular products used in cancer screening protocols. In addition,
HMEC-1 is used to coat vascular prostheses, such as stints, to reduce
rejection.

***Food and Drug Administration***

● **Dimethyl penclodedine, a possible cancer therapeutic**. Xanthus Life
Sciences recently licensed (L-105-2002) a patent from the FDA, which
claims demethyl penclomedine. This compound is the active metabolite of
penclomedine. Penclomedine has been shown in several clinical trials to
be potentially useful as a cancer therapeutic for a wide variety of
solid tumors. Unfortunately, penclomedine has an unacceptable level of
toxicity at therapeutic dosages. The active metabolite, demethyl
penclomedine, appears to have little to no toxicity at therapeutic
dosages, and should be useful in treating solid tumors. This compound
might also be useful in treating tumors that have not responded to other
treatment regimens. Xanthus has identified this compound as a lead
compound, and plans to begin clinical trials within three years.

# 3.7 Department of the Interior

[]{#DoI .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data only through FY 2001. This information covers the
activities of the department's following bureaus: U.S. Geological Survey
(USGS), Bureau of Reclamation (unless otherwise noted in the tables
below). For additional details, readers should consult the department's
full report.[^31]

■ **Collaborative Relationships for Research and Development**

![](media/image80.wmf){width="6.499305555555556in"
height="3.2090277777777776in"}

■ **Invention Disclosure and Patenting**

![](media/image81.wmf){width="6.499305555555556in"
height="1.9284722222222221in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image82.wmf){width="6.485416666666667in"
height="4.489583333333333in"}

**Licensing Management**

![](media/image83.wmf){width="6.499305555555556in"
height="3.6041666666666665in"}

**Characteristics of Licenses Bearing Income**

![](media/image84.wmf){width="6.4944444444444445in"
height="5.764583333333333in"}

**Income (annual) from Licenses**

![](media/image85.wmf){width="6.4944444444444445in"
height="8.094444444444445in"}

**Disposition of License Income**

![](media/image86.wmf){width="6.499305555555556in"
height="3.752083333333333in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

No outcome examples to cite. Information on DOI technology transfer
activities in FY 2002 or 2003 are not yet available from the department
for this report.

# 3.8 National Aeronautics and Space Administration

[]{#NASA .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
all of NASA's federal labs and research centers, including the Jet
Propulsion Lab run by the California Institute of Technology (unless
otherwise noted in the tables below). For additional details, readers
should consult the department's full report.[^32]

■ **Collaborative Relationships for Research and Development**

![](media/image87.wmf){width="6.498611111111111in"
height="3.7395833333333335in"}

■ **Invention Disclosure and Patenting**

![](media/image88.wmf){width="6.498611111111111in" height="1.4625in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image89.wmf){width="6.486111111111111in"
height="4.865277777777778in"}

**Licensing Management**

![](media/image90.wmf){width="6.498611111111111in"
height="3.252083333333333in"}

**Characteristics of Licenses Bearing Income**

![](media/image91.wmf){width="6.498611111111111in"
height="5.613194444444445in"}

**Income (annual) from Licenses**

![](media/image92.wmf){width="6.498611111111111in"
height="7.977083333333334in"}

**Disposition of License Income**

![](media/image93.wmf){width="6.498611111111111in"
height="3.2256944444444446in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

NASA's FY 2003 report indicated that diverse downstream benefits had
arisen from the agency's technology transfer activities: a) technology
arising under a collaborative research, development, and demonstration
relationship had become commercially available; b) technology arising
under a collaborative research, development, and demonstration
relationship had worked to strengthen NASA's capabilities; c) technology
licensed by the agency had become commercially available; also d)
products or processes developed by agency licensees had strengthened
NASA's capabilities.

NASA collects "success stories," following a standardized format, in
order to maintain awareness of successful transfer and application of
technology by industry and the public. While these success stories are
anecdotal in nature, they are a useful indicator of the application of
NASA technology. During the past fiscal year, a total of 183 such
stories were documented. The following is a sampling of these cases:

● **Tool for real-time emergency action coordination** (Stennis Space
Center). The Real-Time Emergency Action Coordination Tool (REACT) is a
decision support system developed to support various real-time models.
Initially developed and deployed to support the St. Tammany Parish
(Louisiana) EMOC flood mitigation efforts, REACT is extendable to
support numerous types of geographic impact models. The main benefit
REACT provides is integration of disparate information to enable more
efficient decision-making by emergency management personnel.

The system was developed to support a variety of impact models such as
fires, hazardous material spills, airborne biochemical agents, and many
others of crucial importance to first responders. This development
provided NASA's Earth Science Directorate with practical application as
well as verification and validation regarding ongoing technological
developments.

REACT was the result of a Dual-Use contract and is an excellent example
of how NASA and industry can partner to further develop a NASA
technology while at the same time help fulfill a commercial need.

● **VolumeViewer - a high-resolution volumetric 3D display system**
(Stennis Space Center). VolumeViewer is a patented volumetric 3D display
system that is fundamentally different from conventional 3D
visualization technologies. It enables group viewing of a 360-degree, 3D
volume display without wearing any special viewing aids or goggles. This
provides both physiological and psychological depth cues to human
viewers to truthfully perceive 3D objects. The system generates
"fish-tank like" volumetric 3D images within a display media that has a
physical 3D volume.

The technological breakthroughs in the development of VolumeViewer have
resulted in the release of a line of patented 3D cameras (under the name
Rainbow 3D®, 3D digitizer systems (3D EI Digitizer™, 3D Dental
Digitizer™), and 3D visualization and application software (3D Surgeon™,
3D Mosaic™, 3D FaceMap™, 3D Enroll™ and 3D Face ID™). Genex has also
improved a related 360-degree imaging technology (OmniEye®) using
cameras pointed into a mirror to provide a panoramic view. Within the
last 12 months sales of the 3D line of cameras have been approximately
\$350,000. Omni-Eye is presently being field tested by security dealers,
and sales have been modest (about \$50,000) over the past 12 months.
Additionally, Genex has cross-licensing agreements with Align
Technologies valued at \$1,500,000.

● **The heart of the matter** (Johnson Space Center). The same
technology that pumps hundreds of thousands of gallons of fuel through
the Space Shuttle\'s engines is helping those who need heart transplants
survive the wait for a donor organ with tiny heart-assist implants. The
ingenuity lies within the inner workings of the tiny, titanium pump,
which houses the only moving part---an impeller---among the pump's three
main components that minimize blood-flow turbulence, guide direction and
drive constant outflow. The single-rotating impeller, co-designed by a
team of NASA engineers experienced on working with Shuttle fuel and
oxidizer pumps, propels blood in a one-way, continuous flow. The heart
pump weighs only 4 ounces, is silent in operation and measures only
1"X3", about the size of a "C" cell battery.

This effort began in 1996 when NASA granted exclusive rights, under its
patents for the mechanical left-ventricular assist device (LVAD), to
MicroMed, which manufactures the heart assist pump, now called the
MicroMed-DeBakey VAD®. The pump's scalable design makes it possible to
implant a smaller version in children. The heart assist pump has been
implanted in about 240 adult patients, 176 during European trials that
began in 1998. U.S. trials began in 2000 and are still underway to reach
a planned total of 180 implants. The heart pump has recently earned Food
and Drug Administration approval for use in children between the ages of
five and 16.

● **Rotating bioreactor** (Johnson Space Center). A rotating bioreactor,
invented at Johnson Space Center, has been licensed for development of
medical products and for research in various biological areas. This
license is provided under a Cooperative Research and Development
Agreement. The results of use of the bioreactor have increased
understanding of the human liver in space; further use is expected to
provide new treatments of liver and kidney disorders. Key areas explored
include: a liver assist device; liver cell and kidney cell production;
and in-vitro studies of efficacy, toxicity, and metabolism.

● **Damage tolerant material development** (Glenn Research Center). NASA
Glenn Research Center's (GRC's) ballistic impact testing facility has
been used to test how materials respond to high speed impacts. The 40
ft. gas gun can shoot a gas turbine blade at 2,000 ft./sec. The Center
was approached by a small company with an innovative composite material
in order to conduct a needed impact testing of its Tycor material. A
partnership to conduct ballistic impact testing of Tycor was formed,
which introduced NASA Glenn researchers to Webcore's material. Tycor's
successful performance led to a partnership including GRC, Webcore, the
Air Force, and GE Aircraft Engines, to develop a damage tolerant fan
case using Tycor material.

● **Lithium battery development** (Glenn Research Center). Researchers
at Glenn developed an innovative rod-coil polymer electrolyte for
lithium batteries, and have been designing and testing new lithium
battery concepts incorporating this new electrolyte material. Energizer
signed an agreement to access NASA's electrolyte technology and battery
development results. Energizer expects this partnership to lead to
better performing, lower cost lithium batteries. A space act agreement
was negotiated. This partnership gives NASA access to Energizer's
considerable battery design and manufacturing experience. Energizer is
able to prototype new battery designs, more quickly than NASA, which
will accelerate NASA's development of a new lithium battery for
aerospace applications.

● **Hydrogen fuel reformer** (Glenn Research Center). In the course of
developing fuel cell technologies, a partnership with Catacel led to
improved design and performance of fuel reformers and heat exchangers.
The partnership has led to reduced development costs and the development
of a new product that is estimated to reduce fuel savings on a
commercial aircraft flight of up to 20 percent for auxiliary power
generation. The new product is estimated to eventually create 50 new
jobs for the firm.

# 3.9 Department of Transportation

[]{#DoT .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2002. This information covers the activities of
the department's following agencies: Federal Aviation Administration
(FAA), Federal Highway Administration (FHWA), and Research and Special
Programs Administration (RSPA) (unless otherwise noted in the tables
below). For additional details, readers should consult the department's
full report.[^33]

■ **Collaborative Relationships for Research and Development**

![](media/image94.wmf){width="6.491666666666666in" height="2.95625in"}

■ **Invention Disclosure and Patenting**

![](media/image95.wmf){width="6.491666666666666in"
height="1.5069444444444444in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image96.wmf){width="6.497222222222222in"
height="4.628472222222222in"}

**Licensing Management**

![](media/image97.wmf){width="6.491666666666666in" height="3.4875in"}

**Characteristics of Licenses Bearing Income**

![](media/image98.wmf){width="6.497222222222222in"
height="5.653472222222222in"}

**Income (annual) from Licenses**

![](media/image99.wmf){width="6.497222222222222in"
height="7.8694444444444445in"}

**Disposition of License Income**

![](media/image100.wmf){width="6.491666666666666in"
height="3.3229166666666665in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

DOT's reports for FY 2002 and 2003 report provided the following
selected examples of downstream outcomes arising from the technology
transfer activities of the department's federal labs:

***Federal Highway Administration***

● **Development of software toolbox to aid roadway design**. The Federal
Highway Administration's (FHWA) Turner-Fairbank Research Center signed a
CRADA in 2003 with CaiCE (now part of Autodesk) to develop a toolbox
that would serve as an interface between their products such as CAiCE
Visual Transportation 10 and software utilized by Turner-Fairbank for
the purposes of evaluation. The development of this toolbox has enabled
staff at state departments of transportation to utilize CAiCE software
to design the geometry of roadways, and export that data utilizing this
CAiCE toolbox. The toolbox enables FHWA to import the data in a format
that is accepted by their software. In turn, the designers of the
roadway geometry can then utilize FHWA software to evaluate the design.

***Federal Aviation Administration***

● **Partnership to promote education**. The FAA's William J. Hughes
Technical Center entered into a Memorandum of Agreement (MOA) with the
Atlantic City Board of Education. The MOA is to provide technical,
professional, and engineering employees to serve in various teaching
capacities. The MOA is effective through June 30, 2006.

***Research and Special Programs Administration***

● **Dissemination of technology through multiple CRADAs**. In support of
the Federal Transit Administration's Advanced Public Transportation
Systems (APTS) program, the Volpe Center developed a Mobile Showcase.
The APTS Mobile Showcase is a 48-foot trailer with expandable sides that
serves as a research lab, classroom, and briefing facility on wheels
that tours the country and demonstrates transit-related Intelligent
Transportation Systems initiatives to encourage their adoption at the
local level. These technologies range from improving operations, such as
automated vehicle location (AVL) system; improving communications, such
as mobile data terminals; improving passenger service, such as real-time
information kiosks; and improving safety, such as pedestrian detection
technologies. The showcase also serves as a mechanism for educating the
transit community. Hands-on technical courses taught during Showcase
visits to transit agencies give the individuals visiting the opportunity
to gain firsthand knowledge about APTS technologies. In 2003, the Mobile
Showcase has traveled to numerous transit agencies and to national,
state, and regional transit and transportation conferences to provide
transportation professionals, legislative and executive branch
officials, and the general public with increased exposure to APTS
technology. A large number of technology manufacturers, suppliers,
vendors, and consultants are participating in this program through
Cooperative Research and Development Agreements (CRADAs). Currently,
there are 44 active CRADAs supporting this program.

● **FLC education and training**. The Volpe Center's technology transfer
representative currently serves as the Chair of the Federal Laboratory
Consortium's (FLC) Education and Training Committee. This committee has
developed a Technology Transfer Training Resources Data Base that will
feature all technology transfer courses currently available through the
federal laboratory system and technology transfer associations such as
the Association of University Technology Managers and the National
Technology Transfer Center. It is also in the process of developing
on-line technology transfer training that will be made available through
the FLC's Web site ([www.federallabs.org](http://www.federallabs.org/))
and will further the state of technology transfer education.

# 3.10 Department of Veterans Affairs 

[]{#VA .anchor}

This section summarizes the statistics and other data provided by the
department in its annual reports on the technology transfer activities
and outcomes of its federal laboratories. Currently, these reports
provide data through FY 2003. This information covers the activities of
Veterans Affairs (VA) laboratories and VA academic affiliates
(university medical schools) with which the VA has an active Cooperative
Technology Administration Agreement (CTAA). For additional details,
readers should consult the department's full report.[^34]

■ **Collaborative Relationships for Research and Development**

![](media/image101.wmf){width="6.491666666666666in"
height="2.9243055555555557in"}

■ **Invention Disclosure and Patenting**

![](media/image102.wmf){width="6.491666666666666in"
height="2.2152777777777777in"}

■ **Licensing**

**Profile of Active Licenses**

![](media/image103.wmf){width="6.491666666666666in"
height="4.738194444444445in"}

**Licensing Management**

![](media/image104.wmf){width="6.491666666666666in"
height="3.2284722222222224in"}

**Characteristics of Licenses Bearing Income**

![](media/image105.wmf){width="6.491666666666666in"
height="6.047916666666667in"}

**Income (annual) from Licenses**

![](media/image106.wmf){width="6.491666666666666in"
height="8.304166666666667in"}

**Disposition of License Income**

![](media/image107.wmf){width="6.491666666666666in"
height="3.3229166666666665in"}

■ **Other Performance Measures**

None cited.

■ **Downstream Outcomes**

The VA's FY 2003 report did not provide information on downstream
outcomes from the technology transfer activities of its federal labs.

[]{#AppNotesonMetrics .anchor}***Appendix***

***Agency Progress in Strengthening Performance Metrics for Federal Lab
Technology Transfer***

A portion of the Technology Transfer Commercialization Act (which
provides the statutory basis for this annual federal laboratory
reporting) tasks this *Summary Report* with providing a regular update
on progress made by agencies in improving performance assessment of
technology transfer programs by federal agencies.[^35]

The commentary below addresses this topic. This provides an update since
the last published report (the September 2002 edition of the *Summary
Report*). These observations reflect the perspective of the Office of
Technology Policy, which for some time has had a leading role in
preparing the *Summary Reports* and developing the conceptual framework
and process elements for the reporting process.

***Noteworthy Achievements***

● The Office of Management and Budget's *Circular A-11* (starting with
the July 2003 edition) now formally recognizes the annual agency
utilization report on federal lab technology transfer[^36] as a
component of the agency's annual budget proposal documents (see Section
25.5, Table 1, "Has technology transfers"). The *Circular A-11* outlines
requested report content (referencing the guidelines developed by the
Interagency Working Group on Technology Transfer), as well as clarifies
the timing of agency submission of report materials.

● Agency responsiveness to the annual reporting requirement has
generally improved since the first cycle of the revised reporting
process in FY 2001. Some of this improvement reflects movement along the
learning curve gained from the experience of the now several completed
reporting cycles. Some reflects the guidance of OMB's revised *Circular
A-11*, which attaches the technology transfer reporting more concretely
to the agency budget proposal process. In addition, many of the agencies
have been working to improve their management information systems to
enable more timely and reliable presentation of the data requested by
the reporting process. While there remains room for further improvement,
there has been significant progress since the first reporting cycle.

● The standardized data framework prepared for the agencies to use in
assembling information for their annual reports (guidelines developed
through the Interagency Working Group on Technology Transfer) has been
reviewed and improved each year since first used in the FY 2001
reporting. Most of these changes have been incremental in nature,
reflecting issues raised by the previous year's reporting cycle, and the
framework is now approaching a fairly stable form. One significant
change, nevertheless, introduced in mid-2002, is an enlarged typology of
licenses \-- this, to better capture the existing diversity of license
type utilization across the agencies and to provide a better basis for
tracking what is expected to be a growing mix of license types in the
future. The new license schema retains the statutory distinction between
"invention" licenses and "other intellectual property (IP)" licenses,
but adds several subcategories for each.

● Over the last several years, many of the agencies have sought to
sharpen the description of their federal lab technology transfer
efforts: broader concepts of the what and how of technology transfer
relevant to their technology areas, interest in the use of new kinds of
mechanisms, greater clarity in how technology transfer efforts play a
role in achieving the agency's overall mission. Accordingly, there is
interest in identifying metrics, beyond the usual core measures, that
can better reflect this wider group of activities. Thus far, this
interest has become palpable in only a few agencies incorporating new
measures into their annual reporting: for example, the "other types of
collaborative R&D relationships" identified by USDA, DOC, and NASA and
the "other activity measures" identified by DOC and DOE (see Chapter 2
for details). These additional measures tend to reflect the specifics of
an agency's mission and operating environment. Nonetheless, more
agencies may pursue a similar approach in the future, as they become
more familiar with the initiatives that the "first mover" agencies are
taking.

***The Issues Still Outstanding***

● Agencies recognize the widespread interest of policymakers and other
stakeholders in identifying and counting the benefits that arise from
the investment of public resources in R&D. Some agencies have indicated
plans to expand their abilities to better track the downstream results
of the technology transfer they initiate. Yet, as ever, doing so in a
comprehensive way faces both resource and analytical challenges that
remain hard to overcome.

The downstream outcomes that most vividly indicate the success of
federal lab technology transfer activities (e.g., a commercially
successful new product or process) are often several developmental
stages and considerable calendar time downstream from the federal lab's
technology transfer relationship with an outside party. Also, not all
technology transfer relationships yield success that so visible. As a
practical reality, most federal lab technology transfer offices do not
have the resources to maintain comprehensive databases over a long
period of time to track all relevant developments arising from the
transfer of federally funded research and development. For better or
worse, the case study method, based in large part on anecdotal knowledge
of successful downstream outcomes, remains the prime information tool in
this realm.

Some efforts are underway to better use patent databases (in the United
States and abroad), which are increasingly comprehensive and accessible
via Internet channels, to systematically assess benefits resulting from
the transfer of federally funded research and development.[^37] However,
patents cover only part of the full scope of federal lab technology
transfer activities.

● What remains (as it has, for some time) the most difficult metrics
challenge for the technology transfer community is to identify and put
measures in place that can help technology transfer managers better
understand the effectiveness and productivity of the programs they
operate. Counts of licenses, CRADAs, royalty income, and other
traditional measures are typically not difficult to assemble -- although
significant time and resources may be needed to establish and maintain
appropriate databases, particularly where an agency's technology
transfer activities are widely distributed across numerous labs. Such
data can be useful in providing a picture of the priorities and depth of
an agency's technology transfer activities. But these measures do not
directly address questions about program effectiveness or productivity
-- such as how well collaborative research and development relationships
with external partners are working, whether the licensing strategies
employed are facilitating new technology commercialization to the
maximum extent, and what return on investment is being realized from the
eventual downstream outcomes. This finding is far from new, but it
identifies a primary area of performance metrics where the community yet
needs to make progress.

[^1]: "Federal labs" refers to government-owned or -leased/federally
    staffed facilities for performing research, development, or
    engineering activities relevant to an agency's missions and
    interests. The government-owned but contractor-operated facilities
    with a similar purpose also fall under the "federal lab" title. The
    U.S. federal lab system presently encompasses more than 700 federal
    labs and research centers, including the Department of Energy's
    "national laboratories."

[^2]: Most notably, the Technology Innovation Act of 1980 (often
    referred to as the Stevenson-Wydler Act) and the University and
    Small Business Patent Procedures Act of 1980 (often referred to as
    the Bayh-Dole Act). The Stevenson-Wydler Act (P.L. 96-480, 15 U.S.C.
    Sec. 3701-3714) and Bayh-Dole Act (P.L. 96-517, 35 U.S.C. Sec.
    200-211) remain the primary statutory moorings for technology
    transfer between the federal laboratories and the private sector.
    Since the mid-1980s, however, there has been continuing
    congressional review of agency experiences in implementing these
    laws, which has resulted in amending legislation to both
    Stevenson-Wydler and Bayh-Dole.

[^3]: The immediately prior Summary Report is U.S. Department of
    Commerce, *Summary Report on Federal Laboratory Technology Transfer:
    Agency Approaches; FY 2001 Activity Metrics and Outcomes*, September
    2002
    ([www.technology.gov/Reports.htm](http://www.technology.gov/Reports.htm)).

[^4]: ^?^ The Federal Technology Transfer Act of 1986 (P.L. 99-502)
    amended the Stevenson-Wydler Act in several respects, including
    adding a requirement for the Biennial Report.

[^5]: The most recent Biennial Report is Office of Technology Policy,
    U.S. Department of Commerce, *Recent Trends in Federal Lab
    Technology Transfer: FY 1999--2000 Biennial Report*, May 2002
    ([www.technology.gov/Reports.htm](http://www.technology.gov/Reports.htm)).

[^6]: Since July 2003, this agency technology transfer reporting has
    been a part of the Office of Management and Budget's *Circular A-11*
    guidance to federal agencies for preparation of annual budget
    documents (see Part 2, Section 25.5, Table 1).

[^7]: The statutory annual agency report (termed an "agency report on
    utilization") is described by 15 U.S.C. Sec. 3710 (f). The Secretary
    of Commerce's report (termed an annual "Summary Report") is
    described by 15 U.S.C. Sec. 3710 (g)(2).

[^8]: Executive Office of the President, President's Council of Advisors
    on Science and Technology, *Report on Technology Transfer of
    Federally-Funded R&D: Findings and Proposed Actions*, May 15, 2003.

[^9]: The "transfer of federally funded R&D" encompasses the transfer of
    research and development results both from the federal laboratories
    and from extramural recipients of federal research support such as
    universities. The present report focuses solely on the federal
    laboratories. Statistics on university technology transfer are
    compiled annually by the Association of University Technology
    Managers (AUTM); the most recent such report is for FY 2003 (see
    www.autm.net/index_ie.html).

[^10]: The National Science Foundation is not a member of this group
    since it primarily funds extramural (e.g., university) research and
    does not maintain its own federal laboratories. The Department of
    Homeland Security continues to rapidly evolve and has not yet become
    a member of the group of reporting agencies.

[^11]: The Interagency Working Group on Technology Transfer (IWGTT) is a
    long-standing committee that includes technology transfer principals
    from most of the federal science and technology agencies. The IWG's
    activities are coordinated by the Department of Commerce's Office of
    Technology Policy. The group meets monthly to discuss policy issues
    and related topics of significant interest to the Federal lab
    technology transfer community.

[^12]: The reporting guidelines include a set of core activity measures
    for all agencies and also provide flexibility to the agencies to
    include information on additional measures each may deem important
    in presenting the nature and current achievements of its technology
    transfer program. These guidelines have been updated regularly (by
    OTP in cooperation with the Interagency Working Group) since first
    drafted in 2001. They have been incorporated into OMB's *Circular
    A-11* since mid-2003 (see further discussion in the Appendix of this
    report.)

[^13]: In reviewing the findings throughout this report, it must be
    recognized there are considerable differences among agencies in the
    levels of budget resources for federal laboratory research and
    development operations. In FY 2002, almost 36% of the federal total
    was directed toward DOD labs. Federal lab operations at DOE received
    19%, and 18% at HHS, 12% at NASA, 5% at USDA, 4% at DOC, 2% at DOI
    and VA, 1% at EPA and DOT. These differences in resources are
    important considerations when comparing agencies' levels of
    technology transfer activities.

[^14]: Across the departments, budget resources for Federal lab
    technology transfer activities are generally not a separate budget
    line-item. Typically, technology transfer is funded from a lab's
    overhead account and usually must compete with other demands for
    these general resource dollars.

[^15]: The data collection framework used by the agencies in preparing
    reports is essentially the same for FY 2002 and 2003 \-- and is not
    expected to significantly change over the foreseeable future. The
    framework for the FY 2001 is largely the same, but did not include
    several data categories (particularly, the expanded categories for
    license types) that were subsequently added. Figures reported for FY
    1999 and 2000 reflect the data framework from the prior Biennial
    Report process under the Stevenson-Wydler Act. Many of the data
    definitions there are very similar to what has been used from FY
    2001 onward; although, the categories of data requested then was not
    as extensive as at present. Another issue is that as the agencies
    have worked to implement the new reporting process since FY 2001,
    some have widened the breadth of coverage of reporting units across
    their agencies \-- most notably DOD (which now includes a number of
    defense agencies, in addition to the prior principal focus on the
    three service branches \-- Army, Navy, and Air Force).

[^16]: CRADA authority was first established by the Federal Technology
    Transfer Act of 1986. This Act applied only to
    government-owned/government-operated (GOGO) laboratories. But only a
    few years later, the National Competitiveness Technology Transfer
    Act of 1989 enlarged the authority to
    government-owned/contractor-operated (GOCO) labs (most of which are
    part of the Department of Energy's laboratory system). The effect of
    both Acts together was to extend the CRADA option fully throughout
    the U.S. federal lab system. For a general discussion of the CRADA,
    see the Federal Laboratory Consortium's *Technology Transfer Desk
    Reference*, May 2002, Section 3 (accessible at www.federallabs.org).

[^17]: NASA is an exception among the federal labs in its use of the
    CRADA mechanism. NASA continues to rely primarily on transfer
    authorities granted to it by the Space Act of 1958. This Act gives
    NASA broad authority to enter into "other agreements" with the
    private sector and others. These agreements are not regarded as
    procurements, grants, or cooperative agreements and are not subject
    to the rules governing such agreements. NASA believes its technology
    transfer objectives can be achieved with greater flexibility through
    use of the Space Act.

[^18]: For a background discussion see the Federal Laboratory
    Consortium's *Technology Transfer Desk Reference*, May 2002, Section
    4.3-4.4 (accessible at www.federallabs.org). Also, care must
    particularly be taken in identifying valid trends in time series
    data for these activity measures. Single year-to-year comparisons
    can be misleading. A lab's activities in this realm particularly are
    influenced by complex factors, notably the typically irregular pace
    at which ongoing R&D yields new knowledge and inventions.

[^19]: For a background discussion see the Federal Laboratory
    Consortium's *Technology Transfer Desk Reference*, May 2002, Section
    4.5 (accessible at www.federallabs.org).

[^20]: The "inventions" and "other intellectual property" distinction
    follows language in current federal statute. "Invention" refers to
    any invention or discovery that is or may be patentable or otherwise
    protectable under federal statute. "Other intellectual property"
    refers to intellectual property other than inventions or discoveries
    that may nonetheless be protectable, such as through copyright.

[^21]: For "invention" licenses: patent (including patent application)
    licenses, material transfer licenses, other kinds of invention
    licenses. For "other intellectual property" licenses: copyright
    licenses, material transfer licenses for non-inventions, other kinds
    of other IP licenses.

[^22]: The majority of these other IP licenses are copyright licenses
    for software; the agency also cites a substantial number of
    non-invention material transfer licenses. In contrast to other
    agencies, many of DOE's federal labs are government owned-contractor
    operated (GOCO), where the staff are not federal employees and,
    thereby, may copyright work products (such as computer software)
    developed through lab activities.

[^23]: Several definitions (used currently by the agencies in reporting)
    regarding income from licenses are useful to mention here. In
    general, license income can arise in one or more of several ways:
    license issue fees, earned royalties, minimum annual royalties,
    paid-up license fees, and reimbursement for full-cost recovery of
    goods and services provided by the lab to the licensee (including
    patent costs).

    "Income/royalty-bearing license" = a license whose negotiated terms
    provide for receipt of income (or royalties) by the licensor.

    "Total income from license" = income of any form (see above), paid
    to licensor (in a given year), that arises from an active license.

    "Earned royalty income" = royalty payment to a licensor that is
    based on the use of a licensed invention (usually, a percentage of
    sales or of units sold); not a license issue fee or a minimum
    royalty. Such payments are earned income from the commercial
    marketplace, which can be taken as a measure of a lab's active
    management and successful transfer of its intellectual property.

[^24]: Given the summary nature of this report, the technology transfer
    statistics in this chapter are provided only at the aggregate
    department/agency level. A number of the agencies' individual
    reports provide disaggregated figures for agency
    bureaus/divisions/services/offices and should be consulted for
    additional detail.

[^25]: U.S. Department of Agriculture, *FY 2003 Annual Reporting on
    Agency Technology Transfer*, TT2003.USDA, November 10, 2003. Report
    prepared in response to 15 USC Sec. 3710(f) (requiring an annual
    "agency report on utilization" for agencies with federal
    laboratories) and submitted to OMB (consistent with Circular A-11
    guidelines).

[^26]: U.S. Department of Commerce, *Annual Report on Technology
    Transfer: Approach and Plans, FY 2003 Activities and Achievements,*
    January 5, 2004. Report prepared in response to 15 USC Sec. 3710(f)
    (requiring an annual "agency report on utilization" for agencies
    with federal laboratories) and submitted to OMB (consistent with
    Circular A-11 guidelines). (Report available on the Internet at
    [www.technology.gov/Reports.htm](http://www.technology.gov/Reports.htm))

[^27]: This section draws on text and statistics in DOD's "Report to
    Congress on the activities of the DoD Office of Technology
    Transition," March 2004 (prepared in response to 10 USC 2515).
    (Report available on the Internet at http://www.dtic.mil/techtransit
    )

[^28]: U.S. Dept. of Energy, Office of Policy and International Affairs,
    *Annual Report on Technology Transfer and Related Technology
    Partnering Activities at the National Laboratories and Other
    Facilities, Fiscal Year 2003*, February 2004. Report prepared in
    response to 15 USC Sec. 3710(f) (requiring an annual "agency report
    on utilization" for agencies with federal laboratories) and
    submitted to OMB (consistent with Circular A-11 guidelines). (Report
    available on the Internet at
    http://techtransfer.energy.gov/reports.html)

[^29]: Environmental Protection Agency, "Annual Report on Federal Lab
    Technology Transfer in FY 2003," March 2004. Report prepared in
    response to 15 USC Sec. 3710(f) (requiring an annual "agency report
    on utilization" for agencies with federal laboratories) and
    submitted to OMB (consistent with Circular A-11 guidelines).

[^30]: National Institutes of Health, Office of Technology Transfer,
    *Agency Annual Report on Federal Laboratory Technology Transfer:
    Fiscal Year 2003 Activities, NIH, CDC, and FDA*, January 2004.
    Report prepared in response to 15 USC Sec. 3710(f) (requiring an
    annual "agency report on utilization" for agencies with federal
    laboratories) and submitted to OMB (consistent with Circular A-11
    guidelines).

[^31]: U.S. Department of the Interior*,* *Annual Report on Technology
    Transfer: Programs, Plans, FY 2001 Activities and Achievements,
    September 2002*. DOI has not yet provided similar reports for FY
    2002 and 2003.

[^32]: National Aeronautics and Space Administration, *Annual Report on
    Technology Transfer: Programs, Plans, FY 2003 Activities and
    Achievements*, July 2004. Report prepared in response to 15 USC Sec.
    3710(f) (requiring an annual "agency report on utilization" for
    agencies with federal laboratories) and submitted to OMB (consistent
    with Circular A-11 guidelines).

[^33]: U.S. Department of Transportation, *FY 2003 Annual Report on
    Technology Transfer*, October 2003. Report prepared in response to
    15 USC Sec. 3710(f) (requiring an annual "agency report on
    utilization" for agencies with federal laboratories).

[^34]: Department of Veterans Affairs, Office of Research and
    Development, Technology Transfer Program, *Annual Reporting on
    Agency Technology Transfer, FY 2005 Budget Submission*, March 2004.
    Report prepared in response to 15 USC Sec. 3710(f) (requiring an
    annual "agency report on utilization" for agencies with federal
    laboratories) and submitted to OMB (consistent with Circular A-11
    guidelines).

[^35]: See 15 United States Code Sec. 3710 (g)(2)(B)(iii)

[^36]: See 15 United States Code Sec. 3710 (f)

[^37]: ^?^For example, the work of the Office of Planning & Analysis in
    the Department of Energy's Office of Science over the last several
    years to bring new analytical tools to bear in assessing the
    performance of research programs (www.science.doe.gov/sc-5)