Energy Department announces new initiative to remove barriers for industry to work with national labs, commercialize technology

Dec. 8, 2011
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Washington, D.C. -- As part of President Obama’s commitment to helping U.S businesses create jobs and strengthen their competitiveness by speeding up the transfer of federal research and development from the laboratory to the marketplace, U.S. Deputy Secretary of Energy Daniel Poneman today announced a new pilot initiative to reduce some of the hurdles that prevent innovative companies from working with the Department of Energy’s national laboratories.  The new Agreements for Commercializing Technology (ACT) will help businesses bring job-creating technologies to the market faster by allowing them to work with the Department of Energy’s (DOE’s) national laboratories from start to finish to develop and deliver new clean energy technologies and other innovations.

“To compete in the 21st global economy, we need to make it easier for businesses to move great ideas from the drawing board to the marketplace,” said Deputy Secretary Poneman. “The Agreements for Commercializing Technology will cut red tape for businesses and start-ups interested in working with our nation’s crown jewels of innovation, the national laboratories, and strengthen new domestic industries by helping bring innovative, job-creating technologies to the market faster.”

In January, the Department will announce the laboratories selected to participate in the pilot.    This initiative will remove barriers for businesses and startup companies that are interested in accessing the research, facilities, and scientists available at the laboratories, catapulting innovative new products to the marketplace.

In October, the President issued a memorandum to executive departments and agencies directing agencies with federal laboratories to accelerate technology transfer and commercialization of research, and to take steps to increase partnerships between businesses and laboratories. The Department of Energy’s ACT, established today, will serve as a vehicle to help accomplish this at the DOE laboratories.

ACT also complements the goals of the Administration’s “Startup America” initiative by supporting high-growth entrepreneurship and start-up companies. ACT is part of DOE’s broader efforts to unleash American innovation by reducing barriers so industry can more easily work with our national labs.  In March, DOE launched “America's Next Top Energy Innovator'” Challenge, which gives start-up companies access to the Energy Department's thousands of unlicensed patents at a greatly reduced cost and paperwork.

Last week, the Department also announced the Rooftop Solar Challenge, which allocates $12 million to support 22 regional teams. The teams compete to spur solar power deployment by cutting red tape — streamlining and standardizing permitting, zoning, metering, and connection processes — and improving finance options to reduce barriers and lower costs for residential and small commercial rooftop solar systems.

DOE’s laboratories have a long tradition of working with businesses and academia on scientific research and technology development efforts that have generated many advances, spawned new businesses and supported the creation of new industries and jobs.  The ACT framework joins other current DOE legal mechanisms for working with the national laboratories, including Work for Others and Cooperative Research and Development Agreements (CRADAs).

Addressing input from industries based on their experience working with the laboratories, ACT authorizes:

  • A more flexible framework for negotiation of intellectual property (IP) rights to facilitate getting technology from the laboratory to the marketplace.
  • Contractors operating national laboratories to partner with businesses using terms that are better aligned with industry practice, attracting more private investment.
  • National laboratories to participate in groups formed to address complex technological challenges that are of mutual interest.

To view the FAQ on Agreements for Commercializing Technology (ACT), visit http://technologytransfer.energy.gov/ACTpilotFAQ.html.

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Chuck Blakeman
Chuck Blakeman Comment  Dec. 9, 2011
Startup America Partnership is a collusive and deceitful scheme by giant corporations and government to shepherd their selected startup babies through the free enterprise process so they won't have to compete on a level playing field with the millions of startups that have no intention of becoming giants. Scott Case, CEO of Startup America Partnership admits these freakishly few startups have no intention of being one of the 28 million small businesses in America. If you talk to his pet projects “...and you ask which of them are small businesses, no one will raise their hand. What they’ll tell you is that they are giant businesses that just haven’t scaled yet.” Case further denigrates small business; “Small business owners, if they fail at their first attempt, they’ll immediately go take a job in their industry. The local salon owner who doesn’t make it will go cut hair for someone else.” This is unbridled arrogance right out in the open. Startup America greases the skids for those declaring their undying loyalty to everything giant because small business owners have no stomach for the game, will fold like a cheap suit and “immediately” run off and beg for a job the first time things don't work out. If ever there was a “superior-race” business mentality openly proposed by giant business and government, Startup America is it. The smugness is palpable. Case says, “These startups are special...We have to connect them with help from big institutions.” Jonathan Ortmans, of the Kauffman Foundation said, “What we really need to do is concentrate on these high-growth, high-impact firms.” Case says these baby Tyrannosaurus Rex's “face vastly different challenges than their mom-and-pop [belittling description] counterparts, with high-growth firms more often struggling to find the talent and expertise they need to grow their businesses quickly.” Case admits these pre-giants have less regulatory burden than small businesses, but that's not enough special treatment – he wants more. Why focus on T-Rex babies? Ortmans said, “Research shows that almost all net new jobs come from firms less than five years old.” Their fallacious argument disregards other inconvenient statistics that are equally true: 1) Statistically, less than one (00.06%) out of the 600,000 businesses created this year has a chance to grow to 500 employees, and they could still be a Solyndra, but Startup America thinks it can pick winners and losers. 2) If Startup America Partnership magically added 100 giants with 500 employees, that would be 5,000 jobs. We've lost millions. If only 10% the 28 million small businesses added just one employee, millions Great Recession would be behind us. Startup America Partnership is an elitist club for the freakish few pre-giants among us small businesses. Standup, America. Fight Startup America with the strength of 28 million businesses working together to keep giant corporations and giant government from creating another non-level playing field.


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