# Presentation: 713396

## R&D Performance Measures for Government Research

**Gregory Tassey**
**Senior Economist **
**National Institute of Standards and Technology**
**tassey@nist.gov**
**http://www.nist.gov/director/planning/strategicplanning.htm**

## Topics

-  Introduction (slides 2-4)
-  Economic context (slides 5-7)
-  Key issues in R&D performance measurement (slides 8-10)
-  NIST’s approach to performance measurement (slides 11-15)
-  Microeconomic impact assessment (slides 16-20)

**Topics**

## Slide 3

## Slide 4

## Economic Context

## Economic Context

## Economic Context

## Issues

**Target Audience Affects Performance Metrics**
-  **External****	**--** **S&T and economic policy arenas	-- industry constituents	-- budget process	-- financial statements	-- GPRA
-  **Internal**	-- management	-- planning process

## Issues

**Performance Metrics Vary By End Use**
-  **GPRA****	**--** **regular, consistent reporting	-- primarily output measures for R&D programs	-- emphasize fit between budget structure and metrics
** ****Program Management & Strategic Planning**	-- post commercialization   	-- in depth microeconomic analyses	-- performance measures tailored to type of technical         infrastructure

## Issues

-  Inputs 	-- “activity” counts are easiest to compile	-- cost accounting may not match project content
-  Outputs	-- occur irregularly in research projects	-- change over project life cycle
-  Outcomes 	-- economic	-- take time to be realized   	-- can extend over long periods

***Issues***

## NIST’s Approach: Output Metrics

- -- science and engineering databases
- -- simulation models
- -- interface protocols
- -- test artifacts (SRMs) & services (calibrations)
-  **ATP: Generic Technologies**	-- cumulative technologies commercialized		-- cumulative publications
- 	-- cumulative patents filed

***NIST’s Approach: Output Metrics***

## NIST’s Approach: Output Metrics

-  **MEP: Technology Transfer**	-- number of firms assisted or projects completed	-- investments/practices changed
-  **Baldrige National Quality Program**	-- number of firms adopting criteria

***NIST’s Approach: Output Metrics***

## NIST’s Approach: Outcome Metrics

-  Investment
-  Sales
-  Employment
-  Profits
-  Value added

***NIST’s Approach: Outcome Metrics***

## NIST’s Approach: Outcome Measures--Quantitative

**Example: Profit Measures**
-  Net Present Value
-  Benefit-Cost Ratio
-  Social (Internal) Rate of Return

***NIST’s Approach: Outcome Measures--Quantitative***

## NIST’s Approach: Outcome Measures--Qualitative

**Emphasis on Technology—Infrastructure Interactions**
-  Variations in impacts over the technology life cycle    	-- Impacts on R&D, production, marketing	-- project timing over technology life cycle 	-- identification of related industry needs
-  Impacts on corporate strategy     -- R&D, production, marketing decisions	 		-- investment timing

## Microeconomic Impact Assessment

**Technology and Industry Overview**

**Economic Analysis Framework**

**Data Collection Plan**

**Economic Impacts**

**Results**

**Elements of Economic Impact Studies**

***Microeconomic Impact Assessment***

## Microeconomic Impact Assessment

***Microeconomic Impact Assessment***

## Microeconomic Impact Assessment

***Microeconomic Impact Assessment***

## Microeconomic Impact Assessment

***Microeconomic Impact Assessment***

## Microeconomic Impact Assessment

**Summary of R&D Performance Information**

-  **Quantitative metrics** have strong effect on S&T policy	-- increases as database expands	-- benefits from learning curve effect	-- requires high quality & expensive data collection
-  **Qualitative analyses** contribute to strategic planning 	-- context for interpreting quantitative impacts 	-- predict impacts over technology life cycle	-- manage project timing
-  **Economic role analysis**	-- reinforcement and refinement