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RCED-95-210R 1 (1995-06-01)

handle is hein.gao/gaobackvo0001 and id is 1 raw text is: 





(3    O      United States
   G ALO     General Accounting Office
             Washington, D.C. 20548

             Resources, Communim, and
             Economic Development Division

             B-261510


             June 1, 1995


             The Honorable Constance A. Morella
             Chairwoman, Subcommittee on Technology
             Committee on Science
             House of Representatives

             Dear Madam Chairwoman:

             You requested that we identify the process that the
             National Institute of Standards and Technology (NIST) uses
             to determine the eligibility of U.S. subsidiaries of
             foreign-owned companies to participate in the Advanced
             Technology Program (ATP) . Established in 1990, ATP is a
             competitive cost-sharing program designed to help U.S.
             businesses pursue high-risk technologies with significant
             commercial or economic potential. You also asked that we
             provide information on NIST's eligibility determination for
             a joint venture between Kennametal, Inc., and Norton
             Diamond Film, a foreign-owned, U.S.-incorporated company,
             to develop diamond-coated round tools and wear parts.

             In summary, NIST's assessment of eligibility is based on
             information in the applicant's proposal that establishes
             the project's economic benefits and an analysis of the
             opportunities and protections afforded U.S.-owned companies
             by the parent company's country of origin. NIST's analysis
             relies on a review of organizations that manage similar
             research and development (R&D) programs in the foreign
             country, and information supplied by federal agencies that
             monitor trade barriers and violations of intellectual
             property rights.

             NIST concluded that the Norton Diamond Film joint venture
             met the eligibility requirements for funding by ATP on the
             basis of the following findings:

             -- Potentially, the United States would benefit from the
                enhanced global competitiveness of its automotive and
                aerospace industries, the level of investment to be made
                by the joint venture companies, and the companies'


GAO/RCED-95-210R, Technology Program's Eligibility Determination

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