SUPPLEMENT

to Department of Commerce's Annual Budget Submission for FY 2003 

U.S. Department of Commerce 

Annual Report on Technology Transfer: Programs, Plans, FY 

2001 

Activities and Achievements 

Report prepared by: 

Office of Technology Policy, Technology Administration 

National Institute of Standards and Technology, Technology Administration 

National Oceanic and Atmospheric Administration 

National Telecommunications and Information Administration - Institute for 

Telecommunication Sciences 

June 3, 2002
Background. This document is the first in a series of reports annually summarizing the 

Department of Commerce's ongoing technology transfer activities and achievements. 

This report responds to the new statutory requirement for an annual "agency report on 

utilization" [15 USC 3710 (f)] under the new federal-wide reporting process established 

by the Technology Transfer Commercialization Act of 2000. All federal agencies that 

direct one or more federal laboratories or conduct other activities under Section 207 and 

209 of Title 35, United States Code are subject to the requirements of this statute. 

At the Department of Commerce (DoC), technology transfer is a significant aspect of the 

mission and program activities of the National Institute of Standards and Technology 

(NIST), the National Telecommunications and Information Administration (NTIA), and 

the National Oceanic and Atmospheric Administration (NOAA). Accordingly, this report 

focuses on the activities of these DoC labs and agencies. 

Each of the major agency sections is organized to summarize the agency's technology 

transfer priorities, approaches, and plans and to provide specific information about FY 

2001 activities and accomplishments. The report begins with a summary of this 

information for the Department as a whole. 

This report was organized and prepared by the Office of Technology Policy/Technology 

Administration, with extensive participation by the National Institute of Standards and 

Technology, the National Oceanic and Atmospheric Administration, and the National 

Telecommunications and Information Administration. 
Table of Contents 

I. DEPARTMENT OF COMMERCE OVERVIEW.......................................................... 4 

Summary of Current Technology Transfer Activities .................................................... 4 

Examples of Technology Transfer Outcomes Provided by the Agencies: ..................... 8 

II. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY......................... 9 

1. Agency Technology Transfer Programs, Principles, and Plans.................................. 9 

2. FY 2001 Activities and Achievements ..................................................................... 12 

Technology Transfer Outcomes.................................................................................... 17 

III. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION................... 20 

1. Agency Technology Transfer Programs, Principles, and Plans................................ 20 

2. FY 2001 Activities and Achievements ..................................................................... 21 

Technology Transfer Outcomes.................................................................................... 22 

IV. NATIONAL TELECOMMUNICATIONS AND INFORMATION 

ADMINISTRATION, Institute for Telecommunication Sciences ................................... 24 

1. Agency Technology Transfer Programs, Principles, and Plans................................ 24 

2. FY 2001 Activities and Achievements ..................................................................... 25 

Technology Transfer Outcomes.................................................................................... 27 
I. DEPARTMENT OF COMMERCE OVERVIEW 

Summary of Current Technology Transfer Activities 

The Department of Commerce works in partnership with businesses, universities, communities, 

and workers to promote U.S. competitiveness. It does this by strengthening economic 

infrastructure, facilitating the development of cutting-edge science and technology, providing an 

information base, and by managing national resources. 

Within the Department, basic science and technology R&D is conducted chiefly at the National 

Institute of Standards and Technology (NIST), the National Oceanic and Atmospheric 

Administration (NOAA), and the National Telecommunications and Information Administration 

(NTIA). Other kinds of research are conducted at the Bureau of the Census, the Economic 

Development Administration (EDA), and the Technology Administration (Office of the 

Undersecretary/Office of Technology Policy). 

Technology transfer at the Department relates principally to the activities of NIST, NOAA, and 

NTIA. 

DoC Budget for R&D 

FY 2001 

Actual 

FY 2002 

Estimate 

FY 2003

Proposed 

Departmental budget authority millions (current) $ $5,102 $5,206 $5,192 

Total R&D budget authority * millions (current) $ $1,054 $1,129 $1,114 

 National Institute of Standards and Technology 413 460 472 

 National Oceanic and Atmospheric Administration 586 644 630 

 National Telecommunications and Information Administration 51 21 7 

 Other ** 4 4 5 

* The R&D figures include budget authority for basic research, applied, development, R&D facilities and 

equipment. 

** R&D activities of primarily the Bureau of the Census, Economic Development Administration, and Technology 

Administration offices. 

Data Sources: President's Budget Proposal for FY 2003 (published Feb. 4, 2002); Office of Management and Budget 

(Feb. 2002); and the American Association for the Advancement of Science, R&D Budget and Policy Program (Feb. 

2002 and earlier documents). 
Agency Mission and Principal Channels for Technology Transfer 

Mission Tech Transfer 

National Institute of Standards and Technology. 

NIST's mission is to develop and promote measurement, 

standards, and technology to enhance productivity, 

facilitate trade, and improve the quality of life. NIST 

laboratories develop and disseminate measurement 

techniques, reference data, test methods, standards, and 

other infrastructural technologies and services that 

support U.S. industry, scientific research, and the 

activities of many federal agencies. In carrying out its 

mission, NIST works directly with industry partners (and 

consortia), universities, associations, and other 

government agencies. 

The focus of NIST's technology transfer activities 

in general is the broad dissemination of research 

results to industry, rather than the creation of 

patents and associated licenses. As such, NIST 

utilizes a diverse group of mechanisms to transfer 

the knowledge and technologies that result from 

its laboratory research. 

Principal tech transfer mechanisms:

CRADAs, 

Patents and licenses, 

Technical publications, 

Standard Reference Materials, 

Standard Reference Data, 

Calibration services, 

Guest researchers and facilities users. 

National Oceanic and Atmospheric Administration. 

NOAA's primary mission is to transfer environmental 

data on a wide range of time and space scales in order to 

protect life and property, and provide industry and 

government decision-makers with a reliable base of 

scientific information. As part of this mission, almost 

half of the organization works to produce the daily 

weather forecast, which advises and warns the general 

public and, at the same time, provides a base of scientific 

and technical information for engineers and managers in 

federal and state governments and in the heating, 

construction, manufacturing, transportation, and health 

industries. 

NOAA's broad approach to tech transfer involves 

licensing intellectual property, cooperative 

research relationships with industry, and/or direct 

transfer. NOAA works with each of its 

laboratories based on its ability to provide the 

necessary resources. 

Principal tech tranfer mechanisms:

CRADAs, 

Patents and licenses, 

Direct transfer. 

National Telecommunications and Information 

Administration. NTIA's Institute for 

Telecommunication Sciences (ITS) supports agency 

telecommunications objectives such as promoting 

advanced telecommunications and information 

infrastructure development in the United States, 

enhancing domestic competitiveness, improving foreign 

trade opportunities for U.S. telecommunications firms, 

and facilitating more efficient and effective use of the 

radio spectrum. NTIA/ITS also serves as a principal 

federal resource for solving the telecommunications 

concerns of other federal agencies, state and local 

governments, private corporations and associations, and 

international organizations. 

NOAA's broad approach to tech transfer involves 

licensing intellectual property, cooperative 

research relationships with industry, and/or direct 

transfer. NOAA works with each of its 

laboratories based on its ability to provide the 

necessary resources. 

Principal tech tranfer mechanisms:

CRADAs, 

Patents and licenses, 

Telecommunications analysis services. 

The linkage of each agency's mission and technology transfer approaches is discussed further in 

subsequent sections of the report (see NIST, NOAA, NTIA). 
Summary of DoC Technology Transfer Activities and Achievements 

Selected Activity Measures *

 

MEASURES -- DoT Totals and by Agency FY 1999 FY 2000 FY 2001 

Total number of active CRADAs at the end of the FY 275 221 221 

 NIST 261 208 208 

 NOAA 8 10 8 

 NTIA 6 3 6 

Invention disclosures in the FY 38 34 26 

 NIST 35 32 24 

 NOAA 3 2 1 

 NTIA 0 0 1 

Patent applications filed in the FY 30 20 12 

 NIST 27 18 9 

 NOAA 2 18 9 

 NTIA 1 0 0 

Patents issued in the FY for laboratory inventions 28 16 22 

 NIST 26 14 20 

 NOAA 2 2 1 

 NTIA 0 0 1 

Total number of active invention licenses in the FY 41 41 39 

 NIST 40 39 36 

 NOAA 0 0 1 

 NTIA 1 2 2 

Total number of active licenses for "Other IP" ** 0 0 0 

 NIST 0 0 0 

 NOAA 0 0 0 

 NTIA 0 0 0 

Total income from all licenses active in the FY $421,635 $159,020 $268,568 

 NIST $394,387 $122.575 $261,968 

 NOAA $0 $0 $0 

 NTIA $27,248 $36,445 $5,000 

 - Income from active invention licenses $421,635 $159,020 $268,568 

 NIST $394,387 $122.575 $261,968 

 NOAA $0 $0 $0 

 NTIA $27,248 $36,445 $5,000 
MEASURES -- DoT Totals and by Agency FY 1999 FY 2000 FY 2001 

 - Number of licenses earning royalty income in the FY 19 17 21 

 NIST 18 16 19 

 NOAA 0 0 0 

 NTIA 1 1 1 

 - Total earned royalty income in the FY $421,635 $159,020 $268,568 

 NIST $394,387 $122.575 $261,968 

 NOAA $0 $0 $0 

 NTIA $27,248 $36,445 $5,000 

** "Other IP" includes computer software; tangible, non-patented research products (such as biological materials); 

and protected data. 

 Figures for FY 2001 are required in this year's annual report, under the revised agency reporting process 

established by the Technology Transfer Commercialization Act of 2000. Corresponding figures for FYs 1999 

and 2000 are also provided, as a basis for comparison. 

* Various measures are relevant in characterizing the level of tech transfer activities - including some which are 

agency specific, that focus on unique aspects of an agency's mission and associated tech transfer priorities. 

Those listed above are among the most frequently cited general measures. Data for a larger set of measures, 

including some that are agency specific, appear in subsequent sections of this report (see FY 2001 Activities 

and Achievements for NIST, NOAA, NTIA). 
Examples of Technology Transfer Outcomes Provided by the Agencies: 

The following cases were selected and described by the agencies as examples of "downstream" 

outcomes resulting from agency technology transfer efforts: 

NIST 

 CRADA: Integrated Services Digital Network 

 Standard Reference Materials: Healthcare 

 Standards and Conformance Tests: Data Encryption Standard 

NOAA 

 Suite of digital raster nautical charts 

 A new type of radar 

 Acoustic scintillation liquid flow measurement system 

NTIA/ITS 

 Personal Communications services 

 Local multipoint distribution services 

 Digital video communication research 

 Video quality assessment system 

Details on each of these cases are provided in the agency sections below. 
II. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 

Technology Transfer - Programs, Plans, FY 2001 Activities/Achievements 

The mission of the National Institute of Standards and Technology (NIST) is to develop 

and promote measurement, standards, and technology to enhance productivity, facilitate 

trade, and improve the quality of life. The NIST laboratories develop and disseminate 

measurement techniques, reference data, test methods, standards, and other infrastructural 

technologies and services that support U.S. industry, scientific research, and the activities 

of many federal agencies. In carrying out its mission, NIST works directly with industry 

partners (and consortia), universities, associations, and other government agencies. 

Generally, the focus of NIST's technology transfer activities is the broad dissemination of 

research results to industry, rather than the creation of patents and associated licenses. 

NIST utilizes a diverse group of mechanisms to transfer the knowledge and technologies 

that result from its laboratory research. 

To meet the requirements of the Technology Transfer Commercialization Act of 2000 

and other relevant legislation, this report has two major sections: 

 Section 1: A description of NIST's diverse group of technology transfer 

mechanisms; and 

 Section 2: Data on the usage of key technology transfer tools, such as CRADAs, 

patents and licenses, technical publications, and Standard Reference Materials, 

and examples of outcomes from these transfer activities. 

1. Agency Technology Transfer Programs, Principles, and Plans 

Leading-edge scientific and technical work requires multiple disciplines, high levels of 

collaboration among organizations and people with diverse capabilities, and highly 

specialized facilities and tools. For more than a century, the NIST laboratories have 

successfully collaborated with industry and universities to provide the measurement 

techniques and technical tools needed by America's innovators. NIST uses many 

mechanisms-including, but not limited to, CRADAs and patent licensing-to collaborate 

with industry and to ensure that the resulting knowledge and infrastructural technologies 

are broadly disseminated. 

While NIST does conduct "traditional" technology transfer activities (participate in 

CRADAs, hold patents, and engage in licensing), the laboratories do not focus on the 

creation of patents and licenses per se. These mechanisms are used, where appropriate, as 

tools to accomplish NIST's mission. Other tools also are used to transfer knowledge and 

technologies to industry. These include: 

 Standard Reference Materials 

Standard Reference Materials (SRMs) are the definitive source of measurement 

traceability in the United States. All measurements using SRMs can be traced to a 

common and recognized set of basic standards that provides the basis for 

compatibility of measurements among different laboratories. As economic 
exchange has become more global, customers are using SRMs to achieve 

measurement quality and conformance to process requirements that address both 

national and international needs for commerce and trade. 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. 

The number of SRMs available for sale, currently over 1,300, illustrates the 

breadth of measurements supported by NIST. Over time, NIST expects slight 

growth in the number of SRMs available, given its current strategy of focusing on 

those SRMs that cannot be produced by secondary laboratories and which have 

broad and/or high downstream impact. In establishing its out-year projections, the 

NIST SRM Program monitors, among other things, trends in emerging 

technologies, new regulations that will depend on SRMs for enforcement, and the 

reference material needs of other federal agencies. Several microeconomic studies 

of NIST SRM programs have shown the technology transfer mechanisms built 

into these efforts to be effective, with resulting high economic benefits delivered 

to industry. 

 Standard Reference Data 

NIST produces and makes available (sells or distributes for free) many Standard 

Reference Data titles (SRDs). SRDs provide numeric data to scientists and 

engineers for use in technical problem solving, research, and development. These 

recommended values are based on data extracted from scientific and technical 

literature or on measurements done at NIST laboratories, which are then assessed 

for reliability and evaluated to select the preferred values. NIST's SRD databases 

cover many areas of science, including analytical chemistry, atomic and 

molecular physics, biotechnology, and materials science. 

Historically, NIST has produced two new SRD titles per year. At the same time, 

NIST also provides numerous upgrades to existing databases. Each year, 

however, some database titles are eliminated from the NIST catalog. Over time, 

NIST expects continued modest growth in the total number of SRD titles 

available. Of those titles currently available, about 70% are available for sale, and 

30% are free online systems. Over time, a larger percentage of these titles will be 

distributed via the Internet. Several microeconomic studies of NIST SRD 

programs have shown the technology transfer mechanisms built into these efforts 

to be effective with resulting high economic benefits delivered to industry. 

 Calibration Services 

The 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. MAPs are quality control programs for calibrating entire 

measurement systems. 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. The services constitute the highest order of 

calibration services available in the United States. 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. 

Over the past several years, NIST has calibrated approximately 3,000 items per 

year. Over the next several years, NIST expects to realize a relatively high but 

slightly declining number of items calibrated. This is in keeping with a long-term 

trend, over the past several decades, of a decline in the number of items calibrated 

by NIST. Despite this overall trend, individual years may fluctuate slightly due to 

multi-year calibration cycles. NIST expects to provide fewer but more highly 

leveraged calibration services over time. NIST's strategy is driven by the need to 

effectively manage trends in demand from its major industry and government 

customers for these services. NIST is pursuing two strategies: (1) performing only 

those calibrations that require a direct connection to the national standards; and 

(2) improving calibration accuracy in those areas where new industry demands 

are emerging. Through this overall approach NIST can efficiently leverage its 

primary calibration services to support a broader base of secondary calibrations 

conducted within the private sector. Several microeconomic studies of NIST 

calibration programs have shown the technology transfer mechanisms built into 

these efforts to be effective, with resulting high economic benefits delivered to 

industry. 

 Technical Publications 

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 publications 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. Of the technical publications produced annually, approximately 

80% are approved for external publication (such as in scientific journals), while 

the remaining 20% are NIST reports and special publications. 

Over time, NIST expects a relatively constant level of high quality publications 

(2,000-2,200 per year) produced by its technical staff. 

 Guest Researchers and Facilities Users 

Each year hundreds of researchers visit NIST to participate in collaborative 

projects and/or to use NIST's research facilities. NIST makes its facilities 

available for limited periods of time to domestic guest researchers to collaborate 

with NIST staff on research and development 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. This financial assistance is intended to defray expenses while the 

researchers are performing work or exchanging technical information at NIST. It 

is not an equivalent of or replacement for salary. 

Data for the many technology transfer tools utilized by NIST laboratory staff are 

provided in Section II below. 

2. FY 2001 Activities and Achievements 

The data below illustrate the many ways that NIST transfers knowledge and technology 

to the private sector. As required by the Technology Transfer Commercialization Act of 

2000 and other relevant legislation, data are provided for Cooperative Research and 

Development Agreements (CRADAs), invention disclosures, licenses, and license 

income. In addition, following on the explanation provided above, data are provided for 

some of the other technology transfer mechanisms utilized by the NIST laboratories, such 

as Standard Reference Materials available, technical publications produced, items 

calibrated, and guest researcher collaborations. The data are divided into three major 

categories: (A) collaborative relationships for research, development, and demonstration; 

(B) intellectual property management; and (C) other important mechanisms for 

technology and knowledge transfer. Examples of outcomes from technology transfer 

activities also are provided below (see Section D). 

A. Collaborative Relationships for Research, Development, & Demonstration 

Cooperative Research and Development Agreements (CRADAs) 

MEASURE DATA NOTES

FY 

1999 

FY 

2000 

FY 

2001 

Total number of active CRADAs at the 

end of the FY 

261 208 174 

Number of new CRADAs executed in 

the FY 

62 40 22 

Number of active, "non-traditional" 

CRADAs at the end of the FY 

n/a n/a 0 Figures for this measure not 

requested or reported prior to FY 

2001. 

n/a = Data not available. 
Other Types of Collaborative R, D & D Relationships 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Facility Use Agreements in effect at 

the end of the FY 

n/a n/a 372 

 Number of Facility Use 

Agreements executed in the FY 

n/a n/a 172 

NIST authorizes individuals to 

use designated facilities. The 

numbers reported here represent 

the Facility Use Agreements in 

effect for the NIST Center for 

Neutron Research. 

Figures for this measure not 

requested or reported prior to 

FY 2001. 

Guest scientists and engineers during 

the FY 

n/a n/a Approx. 

1,200 

"Guest scientists and engineers" 

includes foreign and domestic 

guest researchers, and 

researchers working at NIST 

under Intergovernmental 

Personnel Act (IPA) 

Agreements and CRADAs. 

Figures for this measure not 

requested or reported prior to 

FY 2001. 

n/a = Data not available. 

B. Intellectual Property Management 

Invention Disclosure and Patenting 

MEASURE DATA NOTES

FY 

1999 

FY 

2000 

FY 

2001 

Number of invention disclosures in the FY 35 32 24 

Number of patent applications filed in the FY 27 18 9 

Number of patents issued in the FY for laboratory 

inventions 

26 14 20 
Licensing 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Total number of invention licenses 

active in FY 

40 39 36 

 Number of new invention 

licenses in the FY 

7 3 4 

Total number of "Other IP"* licenses 

active in the FY 

0 0 0 

Elapsed time for licensing (from 

date of formal license application to 

date of license execution) 

n/a n/a Avg:4.75 

months 

Min: 2 

months 

Max: 5 

months 

Figures for this measure not 

requested or reported prior to 

FY 2001 

Number of licenses terminated for 

cause in the FY 

n/a n/a 7 Figures for this measure not 

requested or reported prior to 

FY 2001. 

n/a = Data not available. 

* "Other IP" includes computer software; tangible, non-patented research products (such as biological 

materials); and protected data. 
Income from Licensing 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Total income from all licenses active 

in the FY 

$394,387 $122,575 $261,968 

 Income from active invention 

licenses 

$394,387 $122,575 $261,968 

 Income from active "Other IP" 

licenses 

0 0 0 

Number of active licenses for which 

NIST received royalty income in the 

FY 

18 16 19 

 Number exclusive n/a n/a 12 

 Number partially exclusive n/a n/a 5 

 Number non-exclusive n/a n/a 2 

Figures not requested 

or reported prior to 

FY 2001. 

Total earned royalty income in the FY $394,387 $122,575 $261,968 

 Distribution of earned royalty 

income values 

n/a n/a $1,000-

$135,927 

Range of values of all 

royalty bearing 

licenses in the FY. 

Disposition 

Inventors:

36%

($142,262) 

Inventors:

47%

($57,423) 

Inventors:

39%

($102,040) 

Disposition of income (from royalties 

and other payments) 

NIST:

64%

($252,125) 

NIST:

53%

($65,152) 

NIST:

61%

($159,928) 

n/a = Data not available. 
C. Other Important Mechanisms for Technology and Knowledge Transfer 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Standard 

Reference 

Materials 

(SRMs) 

available 

1,288 1,292 1,335 Direct and verifiable count of SRMs available to 

customers at the close of the fiscal year. The number of 

SRMs available for sale illustrates the breadth of 

measurements supported by NIST. Over time, NIST 

expects slight growth in the number of SRMs available. 

Standard 

Reference 

Materials 

(SRMs) sold 

33,347 34,020 31,985 Direct and verifiable count of NIST SRM units sold 

during the fiscal year. 

Standard 

Reference 

Data (SRD) 

titles 

available 

60 63 65 Direct and verifiable count of SRD products developed 

and disseminated by NIST. NIST expects continued 

modest growth in the total number of SRD titles 

available. Of those titles currently available, about 70% 

are available for sale, and 30% are free online systems. 

Over time, a larger percentage of SRDs will be 

distributed via the Internet. 

Number of 

items 

calibrated 

3,118 2,969 3,192 

Technical 

publications 

produced 

2,270 2,250 2,207 Annual number of technical publications generated by 

NIST's technical staff. The number is a direct count of the 

number of technical publications cleared for publication 

by the NIST Editorial Review Boards at the Gaithersburg 

and Boulder sites. Over time, NIST expects a relatively 

constant level of high quality publications (2,000-2,200 

per year) produced by its technical staff. Of the 

publications produced annually, approx. 80% are 

approved for external publication (such as in scientific 

journals); the other 20% are NIST reports and special 

publications. 
D. Technology Transfer Outcomes 

NIST develops and disseminates infrastructural technologies and services required by the 

U.S. private sector and other non-profit and government partners. The outputs of the 

NIST laboratories provide a foundation for industry in all stages of commerce-research, 

development, testing, production, and marketing-and in turn enable socio-economic 

impacts, such as productivity gains, increased market access and efficiency, and 

improved quality of life. These impacts are long-term, accruing years after the original 

infrastructural technologies were developed by NIST (often in conjunction with industry 

partners). 

The three examples below show how NIST's various technology transfer mechanismshere CRADAs, Standard Reference Materials, and standards and associated conformance 

tests-have, over the long-term, produced outcomes that benefit consumers and improve 

the quality of life. 

 CRADA: Integrated Services Digital Network (ISDN) 

In the late 1980s and early 1990s, a new advanced technology known as 

Integrated Services Digital Network (ISDN) promised to revolutionize the 

telecommunications industry worldwide, offering immense potential benefits to 

government, industry, and personal users with its ability to exchange voice, data, 

and image information concurrently over telephone lines. With ISDN, computer 

and communication technologies converge to speed and simplify the flow of 

information between sender and receiver. Before the full potential of ISDN could 

be realized, however, government and industry needed to collaborate to overcome 

barriers to the widespread acceptance and use of ISDN technology. Pinpointing 

the barriers to the widespread use of ISDN in both the national and international 

arenas had been difficult because of the complexity and rapid development of the 

technology. One underlying problem was the lack of standard implementations of 

ISDN applications. 

NIST collaborated with industry in 1988 to establish the North American ISDN 

Users Forum (NIUF). A Cooperative Research and Development Agreement 

(CRADA) with industry was established in 1991 to govern the management of the 

forum. The purpose of the NIUF was to create a strong user voice in the 

implementation of ISDN applications. The NIUF provided users of ISDN 

technology with the opportunity to work with implementers to assure that users' 

needs were met in the ISDN design process. Through the NIUF, users and 

manufacturers concurred on ISDN applications, the selection of options from 

standards, and conformance tests, enhancing the strength of the U.S. 

telecommunications industry in the world marketplace. 

From 1988 through June 1999, the NIUF met 36 times with the following results: 

 153 active applications for development of Application Profiles were 

accepted; 

 Application Profiles were completed for 13 applications; 
 14 Implementation Agreements were completed; and 

 12 Conformance Tests were completed. 

The last NIUF meeting was held June 1999. NIST and other NIUF members have 

agreed that NIUF has successfully accomplished its purposes and goals for which 

it was created. ISDN has become a mature technology, which is widely deployed 

(with sales of ISDN lines still increasing), and has wide availability of ISDN 

products in retail stores. 

Standard Reference Materials: Healthcare 

Diagnosing and treating cardiovascular disease requires accurate measurements of 

cholesterol and its constituents. Since 1966, NIST has developed and 

disseminated measurement methods, standards, and Standard Reference Materials 

(SRMs) needed to assure the accuracy of cholesterol tests. As a result of NIST's 

work, clinical laboratories and other users have adopted increasingly accurate 

measurement techniques and have significantly reduced uncertainties in 

cholesterol measurement results. Due to better measurements, fewer patients have 

been misdiagnosed, public health has been improved, and health care costs have 

been lowered significantly. 

The economic benefits of NIST's Cholesterol Standards Program have been 

analyzed in an independent study by TASC, Inc. The study covered the period of 

1986-1999, and estimated a social rate of return of 154% and a benefit-to-cost 

ratio of 4.5:1 during that timeframe. 

Standards and Conformance Tests: Data Encryption Standard 

To a large extent, the efficiency of transactions in a market economy is 

determined by the efficiency of the payments system. Payment services are not 

cheap - five percent or more of the value of an average consumer's purchase goes 

to payment costs while the total cost of a country's payment system may account 

for about three percent of the value of its GDP. Electronic payments usually cost 

only one-third to one-half that of paper-based transactions, so substantial savings 

can be realized in shifting from paper to electronic payments. 

The electronic transactions occurring routinely today in business and in our 

personal lives have their basis in technological developments of just a few 

decades ago. These include vastly improved computing power, increased 

accessibility to communications through the development of the Internet, and the 

implementation of "behind the scenes" infratechnologies and associated standards 

that assure the privacy and security of these various transactions. Encryption 

algorithms and methods are among those infratechnologies that are less 

transparent to casual or business users but are central to virtually every funds 

transfer, business-to-business data transfer, or internal company data input and 

output. 

In the early 1970s, markets for encryption products were just emerging and 

fragmented. No industry-wide standard existed to guide industry development 

efforts. Multiple and incompatible products resulted, a situation that discouraged 

their widespread use. In response, NIST formally issued the Data Encryption 
Standard (DES) in 1977. NIST also developed and implemented conformance 

tests for DES users to help assure correct functioning of their DES 

implementations. From 1977 to 1994, NIST offered conformance-testing services 

to encryption hardware manufacturers and software producers. If products were 

found to be in conformance with various cryptographic standards, their products 

are listed as "validated." Such validation greatly increased marketplace 

acceptance. 

Markets for encryption products in general, and DES-based products in particular, 

have evolved over the last 20 years from a situation in which a few DES-based 

devices were available to one in which a variety of devices, interoperable 

equipment, and software products are sold worldwide. The financial services 

industry uses DES extensively and exclusively for retail transactions, plastic card 

networks, point-of-sale, and large dollar wholesale transactions. DES is also 

called out in many international security standards. Users of encryption systems 

(banks in particular) realized significant operational efficiencies from their 

enhanced ability to substitute secure electronic transactions for more costly paperbased face-to-face transactions. 

NIST recently commissioned a microeconomic impact assessment of its DES 

Program, which revealed significant economic benefits to the users of electronic 

transactions, such as the banking industry and its customers, and to the companies 

that supply data encryption hardware, software, and services. The study estimated 

that the net present value of DES to the banking industry was between $350 

million and $1.2 billion (in 2000 dollars), depending on the assumed acceleration 

in electronic banking due to NIST efforts. These estimated economic benefits 

translate into a benefit-cost ratio of between 58 and 145. The estimated social 

(internal) rate of return was approximately 270 percent for the interval of 

estimated acceleration. 
III. NATIONAL OCEANIC AND ATMOSPHERIC 

ADMINISTRATION 

Technology Transfer - Programs, Plans, FY 2001 Activities/Achievements 

1. Agency Technology Transfer Programs, Principles, and Plans 

The National Oceanic and Atmospheric Administration's (NOAA) primary mission is to 

transfer environmental data on a wide range of time and space scales in order to protect 

life and property, and provide industry, government and the public with a reliable base of 

environmental information. As part of this mission, over half of the organization works to 

produce the daily weather forecast, which advises and warns the general public and, at 

the same time, provides a base of scientific and technical information for engineers and 

managers in federal and state governments and in the heating, construction, 

manufacturing, transportation, and health industries. As NOAA's primary technology 

transfer mechanism is the direct transfer of information, this program cannot be fairly 

measured in terms of CRADAs, patents, and licenses. 

For FY 2001, NOAA carried out an extensive tech transfer program to provide daily 

weather forecasts and warnings of weather hazards. Much of the agency's technology is 

transferred to private sector organizations, ranging from consultants to the media to 

information service companies, who serve as critical intermediaries to make weather 

information available to all and to provide specialized services. 

The NOAA web page at http://www.noaa.gov details the voluminous amount of 

additional technology made available to all in the form of data and information products 

and services, such as tides and currents, satellite imagery and direct readout, fishery 

statistics and information on protected species, climate forecasts, air quality, state of the 

coasts, beach temperatures, and nautical charts, as well as extensive data bases on 

climate, oceans, geophysics, and the sun. 

In future years, NOAA will continue to carry out these considerable tech transfer 

activities, while working towards seven strategic goals: advancement of short-term 

warnings and forecast services, implementation of seasonal to interannual climate 

forecasts, assessment and prediction of decadal to centennial climate changes, promotion 

of safe navigation, building sustainable fisheries, recovery of protected species, and 

sustaining healthy coastal ecosystems. To secure Intellectual Property rights in laboratory 

innovations with commercial promise, NOAA plans are based on the individual 

laboratory's ability to provide the necessary resources. To advance the agency's mission 

and benefit the competitiveness of U.S. industry, NOAA will continue to license 

intellectual property, to provide it to industry through CRADAs, or to transfer it directly. 
2. FY 2001 Activities and Achievements 

A. Collaborative Relationships for Research, Development, & Demonstration 

Cooperative Research and Development Agreements (CRADAs) 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Total number of active CRADAs at the end of the FY 8 10 8 

Number of new CRADAs executed in the FY 1 3 3 

B. Intellectual Property Management 

Invention Disclosure and Patenting 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Number of invention disclosures in the FY 3 2 1 

Number of patent applications filed in the FY 2 2 3 

Number of patents issued in the FY for laboratory 

inventions 

2 2 1 

C. Licensing 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Total number of invention licenses active in FY 0 0 1 

 Number of new invention licenses in the FY 0 0 1 

Total number of "Other IP"* licenses active in the FY 0 0 0 

Elapsed time for licensing (from date of formal license 

application to date of license execution) 

-- -- 8 

months 

Number of licenses terminated for cause in the FY 0 0 0 

* "Other IP" includes computer software; tangible, non-patented research products (such as biological 

materials); and protected data. 

n/a = Data not available. 
D. Income from Licensing 

MEASURE DATA NOTES 

FY

1999

FY

2000

FY 

2001 

Total income from all licenses active 

in the FY 

0 0 $1,600 

 Income from active invention 

licenses 

0 0 $1,600 

 Income from active " other IP" 

licenses 

0 0 0 

Number of active licenses for which 

NOAA received royalty income in 

the FY 

0 0 1 

 Number exclusive 0 0 1 

 Number partially exclusive 0 0 0 

 Number non-exclusive 0 0 0 

 Total earned royalty income in the 

FY 

0 0 $1,600 

 Distribution of earned royalty 

income values 

0 0 -- Same as total ERI value 

(since only one active 

license) 

Disposition of income (from royalties 

or other payments) 

0 0 Inventor: 

100% 

n/a = Data not available. 

-- = Data category not applicable. 

E. Technology Transfer Outcomes 

 Suite of digital raster nautical charts. The NOAA/National Ocean Service's Office 

of Coast Survey created a bundle of technology, intellectual property, expertise, and 

collaboration to permit a private company, Maptech , Inc., to develop a national suite 

of digital raster nautical charts. These charts are used by commercial mariners, 

recreational boaters, the U.S. Navy, and the Coast Guard in ship-board, computerbased navigation systems. A CRADA was used to transfer the government files to 

Maptech, which then developed a commercial system, which includes an Internetbased Mapserver that gives limited free distribution to the public (see 

http://www.maptech.com/bp/mapserver/index.cfm.). In addition to 200 domestic 

licenses, the NOAA/Maptech technology has been licensed to companies or 

governments in Argentina, Australia, Brazil, Canada, Finland, France, Germany, 

Italy, Japan, Netherlands, New Zealand, Norway, Sweden, and the United Kingdom. 

In addition, technology arising under the CRADA between NOAA and Maptech 

strengthened the capabilities of the NOAA laboratory when quality control software 

developed by Maptech was transferred back to NOAA for use in its paper nautical 

chart production process. 
 A new type of radar that can run continuously and inexpensively for years, and 

automatically measure all types of clouds that occur in the atmosphere, was 

transferred by a CRADA from NOAA's Environmental Technology Laboratory to 

Radian International Corporation, who then developed a commercial version. The 

prototype radar has been run unattended by NOAA for several years. The commercial 

version has been sold to the Department of Energy for its Atmospheric Radiation 

Measurement program. It is also being considered by the FAA for better icing 

warnings and for finding cloud-free airspace for increased airplane safety, and by 

NASA for better missile launch decisions. 

 Acoustic scintillation liquid flow measurement system. Technology was licensed 

by NOAA to the Canadian Ministry of Fisheries and Oceans who licensed to ASL 

Environmental Sciences, Inc., a Canadian company, that made commercially 

available an acoustic scintillation liquid flow measurement system for use in dams, 

hydroelectric plants, ports, harbors, and irrigation canals. 
IV. NATIONAL TELECOMMUNICATIONS AND INFORMATION 

ADMINISTRATION, Institute for Telecommunication Sciences 

Technology Transfer - Programs, Plans, FY 2001 Activities/Achievements 

1. Agency Technology Transfer Programs, Principles, and Plans 

The Institute for Telecommunication Sciences (ITS) is the chief research and engineering 

arm of the National Telecommunications and Information Administration (NTIA). ITS 

supports such NTIA telecommunications objectives as promotion of advanced 

telecommunications and information infrastructure development in the United States, 

enhancement of domestic competitiveness, improvement of foreign trade opportunities 

for U.S. telecommunications firms, and facilitation of more efficient and effective use of 

the radio spectrum. 

NTIA/ITS also serves as a principal federal resource for solving the telecommunications 

concerns of other federal agencies, state and local governments, private corporations and 

associations, and international organizations. 

At NTIA/ITS, cooperative research and development agreements (CRADAs) based upon 

the Federal Technology Transfer Act of 1986 are the principal means of aiding the 

private sector. This Act provides the legal basis for and encourages shared use of 

government facilities and resources with the private sector in advanced 

telecommunications technologies. These partnerships aid in the commercialization of 

new products and services, and enhance the capabilities of our laboratories. 

In FY 2001, NTIA/ITS participated in technology transfer and commercialization efforts 

by fostering cooperative telecommunications research with industry where benefits can 

directly facilitate U.S. competitiveness and market opportunities. These efforts will 

continue in future years. NTIA/ITS has also participated for a number of years in 

CRADAs with private sector organizations to design, develop, test, and evaluate 

advanced telecommunication concepts. Not only does the private industry partner benefit, 

but the Institute is able to undertake research in commercially important areas that it 

would not otherwise be able to do. 

To date, major contributions to personal communication services (PCS) and local 

multipoint distribution service (LMDS) technologies have been and will continue to be 

carried out under these CRADAs to aid U.S. efforts to rapidly introduce new 

communications technologies for the benefit of society. 
2. FY 2001 Activities and Achievements 

A. Collaborative Relationships for Research, Development, & Demonstration 

Cooperative Research and Development Agreements (CRADAs) 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Total number of active CRADAs at the end of the FY 6 3 6 

 Number of new CRADAs executed in the FY 4 3 1 

Other Types of Collaborative R&D Relationships: 

NTIA/ITS operates its Telecommunication Analysis Services (TA Services) to provide a 

valuable service to private industry and public agencies in wireless system design and 

evaluation as well as site selection. This service is provided on a cost reimbursable basis 

and is available 24 hours a day-7 days a week throughout the year. TA Services is an 

Internet service that currently reaches numerous government and private sector users 

across the nation and makes available the latest models, databases, and tools developed 

by NTIA/ITS in the telecommunications field. 

The service is available through Web-based electronic CRADAs, making this service 

available to the users in a short time and on a cost reimbursable basis. The CRADA 

partner using this on-line service provides evaluation of the NTIA/ITS software that is 

used on TA Services, and through this evaluation contributes to improvements of these 

software tools and the development of new tools. This CRADA agreement also allows 

NTIA/ITS to gain valuable insight based in part upon feedback from users about the 

rapidly changing needs of industry and Government in telecommunications technology. 

NTIA/ITS uses the CRADA partner's evaluation data to improve the tools for wireless 

system design and analysis, for the Institute's own research use as well as use by the 

CRADA partner. As NTIA/ITS develops new engineering models and tools which are 

deemed useful to public and private agencies, these models and tools are made available 

to all who may benefit from them. 

At the end of FY 2001, there were 59 active users of this service. 

 Benefits of Collaborative Research for Lab Performance: 

Cooperative research with private industry has helped NTIA/ITS accomplish its 

mission to support industry's productivity and competitiveness by providing 

insight into industry needs. This has led to adjustments in the focus and direction 

of other Institute programs to improve their effectiveness and value. 
B. Intellectual Property Management 

Invention Disclosure and Patenting 

MEASURE DATA NOTES 

FY

1999

FY

2000

FY

2001

Number of invention disclosures in the FY 0 0 1 

Number of patent applications filed in the FY 1 0 0 

Number of patents issued in the FY for laboratory 

inventions 

0 0 1 

Licensing 

MEASURE DATA NOTES 

FY 

1999 

FY 

2000 

FY 

2001 

Total number of invention licenses active in FY 1 2 2 

 Number of new invention licenses in the FY 0 1 0 

Total number of "Other IP"* licenses active in the FY 0 0 0 

Elapsed time for licensing (from date of formal license 

application to date of license execution) 

-- 6 months -- 

Number of licenses terminated for cause in the FY 0 0 0 

* "Other IP" includes computer software; tangible, non-patented research products (such as biological 

materials); and protected data. 

-- = Data not available. 
Income from Licensing 

MEASURE DATA NOTES 

FY 1999 FY 2000 FY 2001 

Total income from all licenses active in the 

FY 

$27,248 $36,445 $5,000 

 Income from active invention licenses $27,248 $36,445 $5,000 

 Income from active "other IP" licenses 0 0 0 

Number of active licenses for which 

NTIA/ITS received royalty income in the FY 

1 1 1 

 Number exclusive 0 0 0 

 Number partially exclusive 0 0 0 

 Number non-exclusive 1 1 1 

 Total earned royalty income in the FY $27,248 $36,445 $5,000 

 Distribution of earned royalty income 

values 

-- -- -- Same as total 

ERI value 

(since only 

one active 

license) 

Inventor: 

30% 

Inventor: 

30% 

Inventor: 

30% 

Disposition of income (from royalties or 

other payments) 

NTIA/ITS: 

70% 

NTIA/ITS: 

70% 

NTIA/ITS: 

70% 

-- = Data category not applicable. 

C. Technology Transfer Outcomes 

Commercial Availability: 

 Personal communication services (PCS). Much of NTIA/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. PCS 

has now been commercialized worldwide, and new developments continue as 

PCS is extended to third generation PCS and beyond. NTIA/ITS has continued 

this work in FY 2001 through a CRADA with Lucent Technologies' Bell 

Laboratories that is investigating multiple-input/multiple-output antenna arrays, a 

technology that is targeted to dramatically increase the capacity of PCS systems 

and, therefore, reduce the problem of spectrum crowding. This technology is 3 to 

5 years from commercial application. 

 Local multipoint distribution services (LMDS). NTIA/ITS has been a premier 

laboratory in millimeter wave research for two decades. CRADAs with private 

industry have enabled NTIA/ITS to apply this unique expertise while conducting 

research into radio propagation considerations for LMDS. LMDS will provide 

broadband wireless communications for business and residential applications and 
is now being commercialized. Deployment of systems is beginning in the U.S. 

and a number of U.S. companies are exporting systems and services. Research 

into LMDS has been conducted with CRADA partners such as Hewlett Packard, 

U.S. WEST, and Lucent Technologies. 

Data derived from these CRADAs provided a foundation for domestic and 

international standards development and efficient allocation of radio frequency 

spectrum resources. To date, major contributions to PCS and LMDS technologies 

have been and will continue to be carried out under these CRADAs to aid U.S. 

efforts to rapidly introduce new communications technologies for the benefit of 

society. 

Strengthened Capabilities of the Laboratory: 

 Digital video communication research. In FY 2001 NTIA/ITS performed 

research with two university CRADA partners (University of Pennsylvania and 

East Carolina University) that provided the laboratory access to Internet 2 

capabilities and medical imaging, which would not have been otherwise available 

to the laboratory. Through these CRADAs, NTIA/ITS continued related research 

in digital video communication performance, addressing such emerging and 

future applications as video telephony and teleconferencing, telemedicine, and 

interactive video distribution. The lab was also able to continue its development 

of multimedia test capabilities. These user-oriented test capabilities are extremely 

valuable in implementing and optimizing the national and international 

information infrastructure, including the Next Generation Internet (NGI). 

 Video quality assessment system. A CRADA during FY 2001 was targeted at 

research relating to the development of a Windows-based video quality 

assessment system. The Windows-based system will provide a user friendly video 

quality assessment system that will be usable by anyone concerned with video 

quality, without the need for large computer systems. This CRADA provided the 

laboratory with a computer system for this development and software that was 

developed by the CRADA partner, greatly increasing the capabilities of the 

laboratory. The Windows-based video quality assessment system, that will be 

developed under this CRADA, will incorporate technology covered by two 

patents and one patent application owned by NTIA/ITS. It is targeted for 

commercial development, with the potential of producing a royalty income for the 

laboratory within two years.