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<classification authority="sudocs">GA 1.13:T-RCED-97-130</classification>
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 <subject>Research and development</subject>
 <subject>Profits</subject>
 <subject>Research program management</subject>
 <subject>Federal funds</subject>
 <subject>Research programs</subject>
 <subject>Business assistance</subject>
 <subject>Manufacturing industry</subject>
 <subject>Technical assistance</subject>
 <subject>Surveys</subject>
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 <title>Measuring Performance: Challenges in Evaluating Research and Development</title>
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<abstract>GAO discussed its work related to the National Institute of Standards
and Technology&apos;s Advanced Technology Program (ATP), Manufacturing
Extension Partnership (MEP) Program, and research and development (R&amp;D)
performance measures.&lt;p/&gt;GAO noted: (1) ATP has funded research projects that would have been
funded by the private sector as well as those that would not; (2) the
award recipients were nearly evenly divided when asked if they would
have pursued their projects if they had not received such funding; (3)
GAO also found that in most cases, the participants in its survey did
not look for funding from other sources, private or public, before
trying to obtain funding from ATP; (4) about half of the 45 applicants
that tried to find funding elsewhere before turning to ATP were told by
prospective funders that their projects were either too risky or
&quot;precompetitive&quot;, characteristics that fulfill the aims of ATP; (5)
manufacturers viewed the manufacturing extension programs&apos; services
positively, as was demonstrated in GAO&apos;s national survey of
manufacturers who had received substantive services from the programs in
1993; (6) most manufacturers responding to GAO&apos;s questionnaire, about 73
percent, reported that they believed that the type of assistance they
had received from these programs had positively affected their overall
business performance; (7) about 15 percent of the respondents reported
that they believed the programs&apos; assistance had not affected their
overall business performance; (8) the amount of money spent on R&amp;D, the
primary indicator of research investment, is useful as an input measure
of how much research is being performed; (9) however, the level of
spending is not a reliable indicator of research results; (10) GAO found
that there is no primary indicator of R&amp;D results; (11) the companies
that GAO spoke with collect data on various output indicators, such as
return on investment and patents granted, but in general make limited
use of them in their investment decisions; (12) instead, they emphasized
that R&amp;D contributes directly to the bottom line; (13) because companies
are profit oriented, many of the indicators tracked by the private
sector cannot be directly applied to the federal government; (14)
determining the specific outcomes resulting from federal R&amp;D is a
challenge that will not be easily resolved; and (15) however, in
response to recent legislation requiring agencies to report on program
results, some progress is being made in measuring the impacts of
research.</abstract>
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<note>Testimony</note>
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 <searchTitle>GAO/T-RCED-97-130; Measuring Performance: Challenges in Evaluating Research and Development;
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 <topic>Research and development</topic>
 <topic>Profits</topic>
 <topic>Research program management</topic>
 <topic>Federal funds</topic>
 <topic>Research programs</topic>
 <topic>Business assistance</topic>
 <topic>Manufacturing industry</topic>
 <topic>Technical assistance</topic>
 <topic>Surveys</topic>
 <topic>NIST Advanced Technology Program</topic>
 <topic>NIST Manufacturing Extension Partnership</topic>
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