Measuring the unmeasurable: Cost-benefit analysis for new business start-ups and scientific research transfers

Abstract Public laboratories frequently need to assess the economic impacts of two common types of technology transfers: new business start-ups and scientific research transfers. However, it is quite difficult to measure economic impacts for these two kinds of transfers because they generally involve expected future sales or the flow of intangible knowledge. Using two case studies from Sandia National Laboratories, we demonstrate in this paper an approach by which such cost-benefit estimates can be constructed. In particular, we illustrate how to estimate benefits when company (or industry) data do not exist or must be held confidential. Our cases relate to plasma thermal spray technology and polycrystalline diamond compact drill bits.