(NAS Colloquium) Science, Technology and the Economy by Proceedings of the National Academy of Sciences

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1734 solely to indicate this fact. About this PDF file: This new digital representation of the original work has been recomposed from XML files created from the original paper book, not from the original typesetting files. Page breaks are true to the original; line lengths, word breaks, heading styles, and other typesetting-specific formatting, however, cannot be retained, and some typographic errors may have been accidentally inserted. Please use the print version of this publication as the authoritative version for attribution.

After objections from other supercomputer manufacturers, and pressure from congress, the CRADA was dropped. The issue revealed by these examples is that CRADAs generate political problems when they create industry winners and losers—or potential losers—and when they succeed and make visibly large profits for private firms. The programs have not been in place long enough to observe how congress will respond if agencies fund—at substantial cost—projects that do not succeed. Given the nature of R&D, potential candidates are likely to arise.

NIH ran into this problem with Taxol, which it developed with BristolMyers (a big multinational) and not with Unimed (a small, inexperienced company). Relying on the small business preferences written into the Bayh-Dole Act, Unimed succeeded in opening up more embarrassing oversight hearings for NIH. The Environmental Protection Agency was sued for executing CRADAs with the competitors of a firm, Chem Services, who had not been also awarded a CRADA. The Environmental Protection Agency prevailed in court, but the politics of “unfair advantage” claims suggests that the agency take care in future agreements.

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