R&D Funding Sources for ATP Applicants

RCED/OCE-96-258R: Published: Sep 20, 1996. Publicly Released: Sep 20, 1996.

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Pursuant to a congressional request, GAO provided information on the sources of funding for Advanced Technology Program (ATP) research and development (R&D) projects, focusing on the: (1) major types of funds used to finance ATP projects; and (2) relationship between the firm's size and R&D funding sources. GAO noted that: (1) the major sources of R&D funding used by the 78 firms surveyed included internal financing from the firm, venture capital investors, federal sources, and contract funding from other private firms; (2) the major source of funding varied according to the size of the firm; (3) firms with fewer than 10 employees used venture capital as the major source of funding while larger firms used internal financing as their major funding source; (4) most of the firms received R&D funding from one or two sources; and (5) federal sources provided supplemental support for firms of all sizes.

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