NIST Technology Innovation Program -- Frequently Asked Questions Q.…

NIST Technology Innovation Program -- Frequently Asked Questions

Q. How much funding is available from TIP?

Congress appropriated $65.2 million for TIP in FY 2008, but most of that goes to pay for previous
commitments to ATP projects plus administrative costs. TIP expects to have approximately $8 million
available for an FY 2008 competition, but this amount could change. The actual amount available for
funding new TIP awards will be published in the Federal Register and at Grants.gov when a
competition is announced.

The President's proposed budget for FY 2009 includes no funding for TIP, reflecting the need to fund
higher priority programs while holding the line on Federal spending.


Q. How are the "areas of critical national need" determined?

"Areas of critical national need" are those that demand government attention because the magnitude of
the problem is large and the societal challenges that need to be overcome are not being addressed. In
determining which areas of critical national need will be addressed in a competition, NIST may solicit
input from the TIP Advisory Board http://www.nist.gov/tip; other government agencies; government
advisory bodies such as the National Research Council (NRC), the National Academy of Sciences
(NAS), the National Academy of Engineering (NAE) and the Institute of Medicine (IOM)
http://www.nas.edu and the public. NIST also may engage experts in scientific and technology policy
to ensure that the areas of critical national need that will be considered are those that entail significant
societal challenges that are not already being addressed by others and could be addressed through high-
risk, high-reward research.

For each TIP competition, the formal announcement published in the Federal Register and on
Grants.Gov [www.grants.gov] will include a description of the specific societal challenges within
selected areas of critical national need that will be addressed in that competition.


Q. May foreign-owned companies get TIP funding?

In broad terms, to receive funding from TIP, a company must be incorporated in the United States, and
do the majority of its business in the U.S. The company may be owned by a parent company
incorporated in another country, but in that case, NIST must determine that the company's participation
in TIP would be in the economic interest of the United States (for example leading to investments in
the United States in research, development, and manufacturing and increased employment in the U.S.),
and that the parent company is incorporated in a country which affords comparable opportunities to
United States-owned companies and affords adequate and effective protection for the intellectual
property rights of United States-owned companies. A more thorough description of these requirements
is found in the TIP rule.


Q. What is the difference between TIP and the old Advanced Technology Program
(ATP)?



                                                                                   TIP 2008 FAQ Rev 4 3/14/2008
The most important distinction is that TIP has a significantly different mission. Research projects
funded by the ATP had a general requirement to demonstrate that they were "high risk"--that is, the
research was technically challenging and success would require a major advance over the state of the
art--and that the target technology had at least the potential to bring significant economic benefits to
the nation through one means or another.

TIP also has the "high risk" criterion, but the program is more tightly focussed on technologies that
address "areas of critical national need," a key phrase for understanding TIP. TIP is in the market for
solutions to important societal challenges.

TIP also has somewhat different eligibility requirements, funding levels and cost-share requirements.


Q. What are the differences in eligibility and funding between TIP and the ATP?

Eligibility--
Under the ATP, funding could go to single, for-profit U.S. companies or to industry-led "joint
ventures" of two or more for-profit companies that also could include nonprofit research institutions,
universities or federal laboratories other than NIST. There were some special restrictions on the amount
of funding that could go to a large company (defined as a member of the "Fortune 500"), and the lead
partner in a joint venture had to be a company or a non-profit research institution, not a university or
Federal lab. Intellectual property created as a result of the project had to be held by one or more for-
profit companies.

Under TIP, funding can go to a single company project led by a small or medium-sized company
(large companies are excluded) or to a joint venture, with the important differences that institutions of
higher education can be the lead partner in the venture, and resulting intellectual property may reside
with any member of the venture, including universities and nonprofits research institutions. Large
companies may participate in a TIP joint venture as an unfunded partner.

Funding--
The ATP could fund single company projects for no more than $2 million total over a period of no
more than three years. Joint venture projects could be funded for no more than five years, but there was
no limit to the size of the award other than the amount of available funds.

TIP can fund single company projects for up to $3 million over three years, and joint ventures for up to
$9 million over five years.

There are a few additional differences between the two programs, particularly related to the rules on
matching funds. TIP will fund no more than 50 percent of total project costs, and its funds may be used
only for so-called direct costs, not indirect costs (such as overhead), profits or management fees. No
TIP funding may go to a large company.


Q. What will happen to projects previously funded under the ATP?

TIP is authorized to continue funding and managing projects that were begun by the ATP under the
terms of the original ATP awards.


                                                                                  TIP 2008 FAQ Rev 4 3/14/2008