Unleashing Private-Sector Energy R&D

The report analyzes R&D management through interviews with 17 leaders from innovative companies. It finds that while centralized R&D structures promote long-term breakthroughs, a lack of STEM talent and inconsistent tax policies hinder U.S. innovation. It highlights the effectiveness of direct government grants and technology-neutral regulations in stimulating private research, while noting that restrictive immigration and IP licensing disputes with universities drive R&D overseas.

• Centralized R&D structures are generally preferred for promoting the sharing of technology across a company and encouraging long-term thinking and risk-taking, which increases the likelihood of fundamental breakthroughs. Conversely, distributed structures align more closely with immediate business needs and offer shorter time to market but risk missing major long-term innovations.
• Private companies are increasingly conducting R&D overseas to better understand local markets, work with international clients, and co-locate research with manufacturing facilities. This trend is partly driven by the decline of U.S. manufacturing and restrictive U.S. visa procedures for skilled foreign workers.
• Direct funding through government grants and contracts is viewed as the most effective policy for promoting private R&D. Such funding can elicit higher levels of private investment, particularly when matching funds are required, provided the government's contribution is significant enough to influence the company's research agenda.
• Technology-neutral regulations, such as emissions or fuel efficiency standards, can drive innovation by providing clear technical targets and helping R&D leaders justify research budgets to corporate management. These regulations are most effective when they allow companies flexibility in how they achieve compliance.
• The most significant obstacle to R&D success in the U.S. is a lack of access to STEM talent, caused by a failing primary and secondary education system (linked to high poverty rates) and restrictive immigration policies that create long backlogs for green cards and work visas.
• Inconsistent and low-value tax credits, specifically the R&D tax credit and the Production Tax Credit (PTC), create market uncertainty and boom-bust cycles. The PTC's irregularity led to wind installations dropping by 76-90% during expirations in 2000, 2002, and 2004.
• Intellectual property (IP) licensing disputes with universities are a major barrier to partnership. Companies often feel they should receive royalty-free licenses for IP they helped create, while universities increasingly seek to retain ownership to earn royalties.
• Partnerships with national laboratories are highly valued due to their specialized facilities and expert staff. Cooperative Research and Development Agreements (CRADAs) are specifically noted as effective tools for stimulating private research and patents.

APA

Rissman, J., & Savitz, M. (2013). Unleashing Private-Sector Energy R&D. Energy Innovation. https://energyinnovation.org/wp-content/uploads/unleashing-private-rd-jan2013.pdf

Chicago

Rissman, Jeffrey, and Maxine Savitz. Unleashing Private-Sector Energy R&D. Energy Innovation, 2013. https://energyinnovation.org/wp-content/uploads/unleashing-private-rd-jan2013.pdf.

Wikipedia

{{cite report |last1=Rissman |first1=Jeffrey |last2=Savitz |first2=Maxine |title=Unleashing Private-Sector Energy R&D |publisher=Energy Innovation |date=January 2013 |url=https://energyinnovation.org/wp-content/uploads/unleashing-private-rd-jan2013.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rissman2013unleashing, author = {Rissman, Jeffrey and Savitz, Maxine}, title = {{Unleashing Private-Sector Energy R\&D}}, institution = {Energy Innovation}, year = {2013}, month = jan, url = {https://energyinnovation.org/wp-content/uploads/unleashing-private-rd-jan2013.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }