ARPA-E and DARPA: Applying the DARPA model to energy innovation

ARPA-E offers a new innovation institutional model to meet energy technology challenges. Because it is explicitly based on DARPA, this article reviews the noted DARPA approach in detail. Briefly citing well-known features of DARPA, it explores a number of important features that have not been well discussed in the policy literature on DARPA. These include DARPA’s ability to undertake multigenerational technology thrusts, the synergies it has been able to create through complementary strategic technologies, its ability to build an advocate community, and connections it has built to larger innovation elements downstream from DARPA. It has also taken on incumbent technologies within both DOD and in the private sector, used ties to DOD leadership to press its advances, and supported initial market creation. The article then reviews the new ARPA-E model in detail, commenting first on how ARPA-E has adopted key DARPA approaches. It then discusses new features ARPA-E is adopting, driven by the unique demands of the complex, established energy sector. These include new ways: (1) to sharpen the research visioning, selection and support processes, (2) to build a community of support, important to its political survival, and (3) to implement technologies it supports. In addition, the further DARPA features enumerated above provide potentially useful future guideposts to ARPA-E. The paper closes with a discussion of the difficult technology implementation problems on the “back end” of the innovation system—including demonstrations, test beds, and initial markets. The article posits that both agencies must further address these implementation issues by fostering additional downstream partnerships, including between government and private sector.