Basic research and the success of federal lab-industry partnerships

This paper examines the role that basic research plays in the strategies pursued by industry in their interactions with federal labs. It draws on questionnaire-based data of 229 federal laboratory-industry joint R&D projects with 219 companies and 27 laboratories. The study documents the relative importance of basic research in the success of the interactions by comparing the incidence of basic research on several indicators of success. The study shows that, even though projects involving basic research tend to have higher costs, they also have a high percentage of product outputs in the short term. Typical high payoff strategies for partnership were those in which the company performed several technical roles and the federal laboratory was more narrowly focused. The authors gratefully acknowledge the support of the National Science Foundation, Research on Science and Technology Program, Contract No. 9220125. The views expressed here are the authors' and do not necessarily reflect those of the National Science Foundation or any other institution.