Venture capital and strategic investment for developing government mission capabilities
By: Tim Webb, Christopher Guo, Jennifer Lamping Lewis, Daniel Egel
Contributors: Rand Corporation; Acquisition and Technology Policy Center; Joint Improvised Explosive Device Defeat Organization (U.S.); National Defense Research Institute (U.S.)
Series: Research report (Rand Corporation)
Publisher: RAND Corporation
Published: 2014
Place of publication: Santa Monica, CA
Language: eng
Number of pages: 81
ISBN-13: 9780833082138
Copyright date: 2014
Subjects: Venture capital; Technological innovations; Government policy; Incentives in industry; Technology and state
Description: A wide range of military capability improvement efforts have benefited from development and procurement methods that accommodate urgent operational needs. Changes in the threat environment suggest a need for a fresh examination of the adequacy and suitability of acquisition methods for the coming decade. This report examines one class of acquisition method, known as government venture capital (GVC), or government strategic investment (GSI). The research extracts general observations from previous cases and from a partial economic model of the GSI type of initiative. Taken together, these analyses will help government acquisition managers to judge more thoroughly the suitability of strategic investment methods for motivating future government mission{u2013}oriented innovation by private firms. The report does not explicitly compare GSIs and alternatives for their efficacy in advancing government mission objectives. If it had, it is likely that the main advantage of GSI would be improved access to information about alternative approaches available in the commercial market, resulting from the close relationships the GSI structure engenders between government and business.
Notes: "RAND Corporation research report series."--Web page (PDF).

"RR-176-OSD."--Cover P. 4.

"Prepared for the Office of the Secretary of Defense."--Title page.

"National Defense Research Institute."--Title page.

"This research was sponsored by the Joint Improvised Explosive Device Defeat Organization (JIEDDO) and conducted within the Acquisition and Technology Policy Center of the RAND National Defense Research Institute."--Page iii.

"Approved for public release; distribution unlimited."--Title page.

Includes bibliographical references (pages 79-81).

"The research was conducted within the RAND National Defense Research Institute ... under Contract W74V8H-06-C-0002."--Verso of title page.
Table of contents: title: Strategic investment for innovation support; title: Case studies of U.S. Government strategic investment; title: Economic framework for innovation incentives; title: Observations from GSI studies and economic modeling.