C. Nature and Extent of Government Sponsorship 
Selected objectives wherever possible should be 
undertaken by the private sector under contract. 
This will permit private industry as well as the 
Government to be familiar with the objectives, 
characteristics, problems, and opportunities that 
become apparent during planning and implementa- 
tion. Under these circumstances, we can expect 
that industry will aggressively seek commercial 
application of new technology. 
Experience over the last 20 years clearly dem- 
onstrates the very great advantages that follow 
from the participation of numerous organizations 
in the pursuit of technological objectives. The use 
of contractors in research and development pro- 
jects demonstrates its advantages both for the 
Government and private organizations. For ex- 
ample, the success of civil aviation followed in 
very large measure from Government’s reliance on 
private firms to develop military aircraft. The 
private firms were able to draw upon this experi- 
ence to design civilian aircraft. A similar process is 
applying nuclear energy to civilian use. 
Another example of sponsored research and 
development is the extensive investigation by the 
Office of Saline Water of methods to recover fresh 
water from the sea. The program is conducted 
largely through contracts with industry, causing 
wide diffusion of knowledge and experience and 
stimulating private efforts. 
Business firms in oceanographic industries, as in 
others, differ enormously in their relationship to 
new technology. There are a few firms whose 
business is primarily that to perform research and 
development and hence to generate new technol- 
ogy. A larger but still small group of firms 
undertakes to develop new technology only in 
order to support their principal activities. These 
two groups constitute the Nation’s R&D industry. 
Most firms are receptive to new technology emerg- 
ing from outside of their own organizations 
though the receptivity differs widely. Many firms 
lack the competence, capital, or interest to react 
to new technology except in immediately usable 
form and are dependent upon others for whatever 
changes occur. The conceptual problems and the 
absence of data make exact analysis impossible.’ 
24 more complete discussion of this subject is found 
in “Basic Research, Applied Research, and Development 
in Industry, 1965,” The National Science Foundation, 
1967. 
333-091 O-69—2 
One function of Government in promoting new 
technology should be to enhance the ability of 
firms to react to new technology at an early stage. 
Aside from reducing public costs thereby, this 
ability increases the variety of efforts and ensures 
that economic considerations are introduced early 
in the appraisal and development of new tech- 
nology. 
Since circumstances will differ project by pro- 
ject, the Government’s arrangements for industry 
participation should continue to be highly flexible, 
consistent with the premise that Government 
should seek maximum utilization of private capa- 
bilities. In some circumstances, joint participation 
in a development project, including sharing of 
costs, would be appropriate. When industry has 
acquired the capabilities to pursue an objective, the 
Government should withdraw. 
Withdrawal of Government support and control 
at the earliest time that private firms can assume 
responsibility will greatly increase the probability 
that innovations will be carried into the market 
place. Industrial groups are usually eager to assume 
complete sponsorship of technical projects as soon 
as the probability of success outweighs remaining 
risk and a reasonable return on investment can be 
expected. 
Recommendation: 
When Government research and development pro- 
grams are required in the National interest, they 
should be planned and administered to permit 
private industry to assume responsibility for fur- 
ther technology development at the earliest possi- 
ble stage. 
D. Technology Transfer 
A recent Congressional report defined technol- 
ogy transfer as follows:* 
Technology transfer is the process of matching 
solutions in the form of existing science and 
engineering knowledge to problems in commerce 
or public programs. ... The Federal Government 
“controls”’ (sponsors, directs, is responsible for) a 
large reservoir of technology ranging from research 
results, to practical techniques and devices, to 
patents. 
34 report of the Subcommittee on Science and 
Technology to the Select Committee on Small Business, 
U.S. Senate, ‘Policy Planning for Technology Transfer,” 
April 6, 1967, p. 1. 
