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1 1 (November 17, 1998)

handle is hein.crs/crsaabu0001 and id is 1 raw text is: 95-150 SPR
Updated November 17, 1998

Cooperative Research and Development
Agreements (CRADAs)
Wendy H. Schacht
Specialist in Science and Technology
Science, Technology, and Medicine Division

Summary

A Cooperative Research and Development Agreement (CRADA) is a mechanism
established by P.L.99-502, the Federal Technology Transfer Act, to allow the transfer
of technology, knowledge, and expertise from government laboratories to the private
sector for further development and commercialization. It also provides a means for
federal scientists and engineers to obtain state-of-the-art technical information from the
industrial community. The work done under a CRADA must not detract from the
mission responsibilities of the laboratory. The government provides support in the way
of overhead for research and development (R&D) performed in the federal laboratory
and is prohibited from providing direct funding to the partner in the collaborative effort.
Currently, over 5,000 CRADAs have been signed (including NASA Space Act
Agreements). As the 106th Congress begins the debate over its approach to science and
technology, the role of CRADAs is expected to be discussed within the context of
federal support for R&D.
Rationale
In pursuit of mission requirements, federal departments and agencies spend
approximately $76 billion per year on research and development; almost a third of this to
support R&D performed in the government laboratory system. Such an effort has resulted
in new and improved technologies and manufacturing techniques that may provide
additional benefits beyond specific mission-related use. For example, while the major
portion of total federal R&D spending has been in the defense arena, government-
financed work has led or contributed to new commercial products and processes
including, but not limited to, antibiotics, plastics, jet aircraft, computers, electronics, and
genetically engineered drugs (e.g., insulin and human growth hormone). Technology
transfer is one way, proponents argue, that federally funded R&D can be further
developed and applied by the private sector to meet other national needs associated with
economic growth. The increasing competitive pressures on U.S. firms in the international
marketplace, coupled with the government's requirements for goods and services, can
make the collaboration between federal laboratories and industry through technology

Congressional Research Service **** The Library of Congress

CRS Report for Congress
Received through the CRS Web

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