Analysis of for-profit commercial firm participation in technology investment agreements

Abstract

As the Cold War ended, dynamic changes began to occur in the world. Threats, budgets, the technological environment, and the industrial environment all began to change. These changes impacted the military's ability to maintain technological superiority over its adversaries, which was the foundation of successful U.S. national defense. Commercial research and development (R&D) began to greatly surpass military R&D. For success on future battlefields, military capabilities had to effectively leverage advancing commercial technologies. Therefore, to allow for more commercial-friendly R&D agreements, regulations granting the use of other transactions (OTs) for basic, applied, and advanced research were issued. These research OTs evolved into what is now known as the Technology Investment Agreement (TIA). This study analyzes the Department of Defense's (DoD's) use of TIAs to determine if TIAs have attracted for-profit commercial firms into the defense market, thus allowing DoD to tap into the commercial market's R&D and technology base. DoD Inspector General audits and Dual Use Science and Technology (DU S&T) Program projects from 1997 through 2001 were reviewed. It was found that TIAs have attracted commercial firms, but not to the extent claimed by some Government organizations.