What Is Technology Transfer and How Do NASA and Government Lab Innovations Reach the Market?

Updated

Technology transfer is the process of moving a technology from the organization that developed it—typically a government lab, NASA center, or federally funded research program—into commercial use, usually through a license, spinoff, or collaborative agreement. It applies when a lab-owned invention has commercial potential but needs an outside partner to manufacture, scale, or market it. It is distinct from basic research (which produces knowledge, not products) and from pure commercialization (which assumes the product already exists and only needs selling).

The main pathways from lab to market

Pathway What happens Who typically uses it
Licensing A company obtains rights to use lab-owned intellectual property, often exclusively, and pays fees or royalties Startups and established manufacturers
Spinoff A new company or product line is built around a transferred technology Entrepreneurs and lab researchers
Cooperative R&D agreement (CRADA) A company and a lab share personnel, facilities, and know-how to develop a technology together Companies needing lab equipment or expertise
Public-private partnership Joint funding or consortia advance a technology toward readiness Larger firms and industry groups

The right choice depends on how mature the technology is and how much control the company needs. A license suits a company that wants exclusive rights to a proven invention; a CRADA suits one that needs access to lab testing facilities before committing.

How design engineers find transferable technologies

NASA and other government sources publish transfer-ready work in accessible forms. NASA Spinoffs documents technologies that have already crossed into commercial products, which is useful for seeing what a successful transfer looks like. Tech Briefs, published by SAE Media Group and drawing on NASA and other government and commercial laboratories, reports on new technologies and breakthroughs aimed at design engineers and manufacturers. Lab publications and technical reports fill in the underlying detail.

For example, a design engineer working on low-power sensors might scan Tech Briefs coverage of sensors and data acquisition, identify a lab-developed sensing method, then check whether it is patented and available for licensing before contacting the lab's technology transfer office.

Steps from identifying a technology to product development

  1. Screen the technology. Confirm it solves a real problem and fits your product roadmap. Read the brief, spinoff entry, or technical paper, and note the stated performance and limitations.
  2. Check intellectual property status. Ask the lab's technology transfer office whether the invention is patented, patent-pending, or already licensed. Ownership terms determine whether a deal is possible.
  3. Assess readiness. Ask what stage the technology is at—lab prototype, tested prototype, or field-demonstrated. A low readiness level means more of your own development funding.
  4. Choose a pathway. Request a license for a defined invention, or propose a CRADA if you need joint development and lab facilities.
  5. Negotiate and execute. Terms cover field of use, exclusivity, royalties, and milestone obligations. Expect the lab to require a development plan.
  6. Develop and validate. Build the product, run your own testing, and document results; many agreements include reporting requirements.
  7. Launch and track. Commercialize, and keep records for royalty reporting and any government-use rights.

Verification: at each stage, confirm in writing that the IP status, field of use, and milestone terms match your plan before spending on development.

Common obstacles

  • IP ownership. Government-funded inventions may carry government license rights, and joint inventorship can complicate who can license what. Clarify this early.
  • Readiness gaps. Many lab technologies are proven in principle but not in a manufacturable form; bridging that gap is often the largest cost.
  • Funding gaps. The stage between lab prototype and commercial product—sometimes called the valley of death—rarely has a natural funder. Budget for it explicitly.
  • Field-of-use limits. A license may cover only certain applications, so check that your intended market is included.

Where to start

Use NASA Spinoffs to study successful transfers, Tech Briefs to scan current government and commercial lab technologies, and the relevant lab's technology transfer office to confirm licensing availability. Tech Briefs offers subscription services for ongoing access; check the current terms on its Subscriber Services page rather than assuming free access.