586 



38 EXPANDING THE USES OF NA VAL OCEAN SCIENCE AND TECHNOLOGY 



ers should be an integral part of technology transfer accomplished 

 through a TTC or any other mechanism. 



• ARPA. Incentives for ARPA to participate include effective performance 

 of its mandated mission, broadened reach into currently inaccessible areas of the 

 private sector, and the possibihty that the 50 percent grant will be recovered in 

 the form of cash or value repayment. 



• Private sector. Incentives for private sector companies and venture capi- 

 taUsts would include the profit potential. Venture capitalists could be included 

 among prospective ONR partners in the formation of start-up enterprises to capi- 

 talize on yet ill-defmed applications of ONR technology in the private sector. 



• TTC. Standard entrepreneurial profit would exist as an incentive for any 

 potential TTC. Start-up capital would be only half debt; equity would be shared 

 with ONR on joint ventures; profit potential would be tied directly to perfor- 

 mance in the transfer of knowledge and technology. 



• Academia. Both private and public CRD As and TRPs would be largely 

 outside the exclusivity of the TTC; therefore, the approximately $400 million of 

 current ONR awards to 3,000-4,000 Pis for 6.1 (basic and applied research) 

 projects would be largely unaffected. The same would apply for SBIRs and 

 CRDAs. 



The foregoing TTC profile is intended only as an example of the type of 

 innovative program ONR may wish to consider; consequently, details are absent 

 from its description. The creation or implementation of any new organizational 

 mechanism should include the establishment of clear program goals and relevant 

 metrics to ensure that any intermediary entity truly facihtates rather than impedes 

 technology transfer. The suggestion reflects the conviction, however, that the 

 current status of ONR technology transfer cannot be remedied by minor reforms 

 alone. What is needed is a basic, organizational course change. The private 

 sector is the best source of information on what it needs, at what cost, and on what 

 timetable. Creating a TTC is one way for that need to be addressed. ONR should 

 explore various options to promote technology transfer, including changes in 

 organizational structure. In addition, small business should be an important 

 target of ONR technology transfer efforts, as smaller companies have the organi- 

 zational flexibility for rapid assimilation and use of emerging technology 

 (Berkowitz, 1994). 



INCENTIVES 



The incentives cited for a TTC are equally applicable to existing ONR tech- 

 nology transfer programs. Other programs should be set up to provide incentives 

 to specific groups to promote technology transfer. Some suggested incentive 

 plans for each major participant in marine research and development are provided 

 below. 



