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A model for making technology investment decisions


The viability of an environmental cleanup technology is not determined by technical considerations alone. Financial, legal, regulatory, market, and numerous other factors come into play before the U.S. Department of Energy can begin using a technology. A technology investment decision model has been developed by a team of government and industry representatives for incorporating both technical and non-technical concerns in the technology development process in DOE's Environmental Management program.

Joseph Paladino of DOE was a member of the team and is one of the most vocal promoters of the model. He says the model was not designed to be, "prescriptive, but to be provocative. We wanted to encourage the focus areas to address these [non-technical] factors earlier in the technology development process." According to the model, which was strongly influenced by Robert Cooper's Winning at New Products, there are gates between seven stages in the technology development process:

Basic Research
Applied Research
Exploratory Development
Advanced Development
Engineering Development
Demonstration
Implementation

Certain criteria must be satisfied before a potential technology should be passed to the next stage of development. Paladino explains, "Up to gate four [prior to engineering development], DOE technology developers should have lots of R&D discretion. More weight should be placed on science rather than engineering." After gate four, however, technology development costs rise considerably. At that point and beyond, he says, it is imperative that technologies being developed by DOE's Office of Science and Technology meet the requirements of the users within DOE. If not, the technology should be killed.

Even before gate four, however, the model suggests that technology developers begin assessing the potential for commercializing a technology. Paladino says, "Commercialization was traditionally considered the last step in the technology development process that came after a demonstration. In reality, we need to prepare earlier in the process."

Paladino also thinks a strategy is necessary for handing off a technology from developer to user. This will help bridge what is often called "the valley of death" - the gap that occurs when technology developers stop funding a project before it reaches the stage where technology users are willing to implement it. Private-sector companies are often caught in the middle with a partially developed product they can't sell.

Paladino suggests that technology developers, users, private-sector companies, stakeholders, regulators, and others should be included in the technology development process in a formal evaluation, specifically prior to engineering development. Whether that happens, he says, is up to each of the focus area management teams. He simply hopes to see the concepts of the model included in their planning.

You can call Paladino at (301) 903-7449 for more information about the model.


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