Start Date
4-1983 8:00 AM
Description
Many government-sponsored applied research, development, demonstration and incentive programs are specifically undertaken to develop technology or create an environment that will lead to commercial ventures which will be in the public interest. The current Administration's emphasis on commercialization has brought to the forefront joint endeavor or government/industry cooperative agreements and proposals for divesting operational capabilities to the private sector. The common thread between all these activities is the need for government agencies to plan and evaluate the private sector business ventures that may result. In the case of the joint endeavor agreements and divestiture situations, the evaluation of private sector business ventures is necessary to establish government negotiating positions.
This paper briefly summarizes private sector financial performance measures and shows how government actions can affect private sector investment decisions through a reduction in perceived risk and shifting the burden of funding from the private sector to the public sector. Data is presented that illustrates the functional relationship betwen likelihood of investment and expected return on investment, risk, payback period and exposure. Finally, the required public sector financial analysis in support of joint endeavor agreements and divestiture situations is examined. Many questions and issues are raised with general procedures developed to answer a number of these.
Uncertainty, Risk and Investment Decisions
Many government-sponsored applied research, development, demonstration and incentive programs are specifically undertaken to develop technology or create an environment that will lead to commercial ventures which will be in the public interest. The current Administration's emphasis on commercialization has brought to the forefront joint endeavor or government/industry cooperative agreements and proposals for divesting operational capabilities to the private sector. The common thread between all these activities is the need for government agencies to plan and evaluate the private sector business ventures that may result. In the case of the joint endeavor agreements and divestiture situations, the evaluation of private sector business ventures is necessary to establish government negotiating positions.
This paper briefly summarizes private sector financial performance measures and shows how government actions can affect private sector investment decisions through a reduction in perceived risk and shifting the burden of funding from the private sector to the public sector. Data is presented that illustrates the functional relationship betwen likelihood of investment and expected return on investment, risk, payback period and exposure. Finally, the required public sector financial analysis in support of joint endeavor agreements and divestiture situations is examined. Many questions and issues are raised with general procedures developed to answer a number of these.
Comments
No other information or file available for this session.