Approximately one-third of this is for intramural research and development (R&D) by federal laboratories (including support for Federally Funded Research and Development Centers). Technology transfer is a process by which technology developed in one organization, in one area, or for one purpose is applied in another organization, in another area, or for another purpose. The government requires certain goods and services to operate. However, the government has neither the mandate nor the capability to commercialize the results of the federal R&D effort. At other times, alterations in technical products and processes may be necessary for application in the state and local environment. Current Federal Efforts to Promote Technology Transfer

Over the years, legislative initiatives have fostered the transfer of technology from the federal government to state and local jurisdictions and to the private sector. Several practices have been established and laws enacted that are aimed at encouraging the private sector to utilize the knowledge and technologies generated by the federal R&D endeavor. Funding for commercialization of the results is expected from the private sector. Because a significant portion of the laboratories are involved in defense research, questions arise as to whether or not the technologies in these institutions can be transferred in such a way as to be useful to commercial companies. The results of legislative activity are open to discussion. CRADAs, in particular, are a means to take this government-funded basic research from the federal laboratory system and move it to the industrial community for commercialization to meet both agency mission requirements and other national needs associated with the economic growth which comes from new products and processes.
The federal government spends approximately one-third of its annual research and development (R&D) budget for intramural work to meet mission requirements in over 700 government laboratories (including Federally Funded Research and Development Centers). The technology and expertise generated by this endeavor may have application beyond the immediate goals or intent of federally funded R&D. These applications can result from technology transfer, a process by which technology developed in one organization, in one area, or for one purpose is applied in another organization, in another area, or for another purpose. It is a way for the results of the federal R&D enterprise to be used to meet other national needs, including the economic growth that flows from new commercialization in the private sector; the government's requirements for products and processes to operate effectively and efficiently; and the demand for increased goods and services at the state and local level.
Congress has established a system to facilitate the transfer of technology to the private sector and to state and local governments. Despite this, use of federal R&D results has remained restrained, although there has been a significant increase in private sector interest and activities over the past several years. Critics argue that working with the agencies and laboratories continues to be difficult and time-consuming. Proponents of the current effort assert that while the laboratories are open to interested parties, the industrial community is making little effort to use them. At the same time, state governments are increasingly involved in the process. At issue is whether incentives for technology transfer remain necessary, if additional legislative initiatives are needed to encourage increased technology transfer, or if the responsibility to use the available resources now rests with the private sector.