Summary: Testimony was given on a GAO report which presented information and guidelines to help policymakers assess how Federal initiatives could enhance research cooperation between universities and industry. GAO studied research parks, cooperative research centers, and industrial extension programs in conducting four in-depth case studies and 12 briefer examinations of existing collaborative arrangements. In the study, GAO found substantial evidence that planned long-term institutional cooperation between universities and industry can enhance technological innovation by: (1) facilitating early recognition of significant breakthroughs in basic research; (2) increasing the rate at which scientific knowledge is adapted by industry; (3) increasing the availability of sophisticated facilities, equipment, and expertise; (4) orienting university research to industry needs; (5) increasing the quality of graduate training; (6) increasing the rate of founding new businesses and improving their capacity to survive; and (7) increasing the capacity of financially constrained industries to take advantage of scientific developments. Successful collaborative arrangements require commitment by university and industry personnel; flexibility; strong leadership; matching the resources, needs, and interests of university and industrial partners; and sustained sources of funding. The Federal Government has fostered cooperative arrangements between the two sectors by: (1) supporting basic and applied research in universities; (2) contracting support for research and development at new high technology firms; (3) providing seed money and continued financial support for cooperative research and development centers and extension services. GAO concluded that Federal policy initiatives intended to foster university-industry cooperation should: (1) relate policy objectives to expected outcomes; (2) use the most appropriate type of collaborative arrangement; and (3) make financial support contingent upon the willingness and ability of all partners to address the critical factors and reconcile their basic institutional differences.
