The concept of unanticipated consequences of an action is introduced in this chapter, and several unanticipated consequences from Phase II funding, by agencies, are presented. In particular, patenting behavior is suggested to be a culprit. The fact that a firm that received an SBIR Phase II research award is permitted to patent some or all elements of the new technology that resulted from the research funded by the award is discussed. The SBIR program permits firms to use public moneys to delimit the actual transfer, but not the potential transfer, of the knowledge embodied in a commercialized technology for personal gain.
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