Although often hamstrung by bureaucratic inefficiency, the U.S. government has achieved considerable success in the field of scientific research. In fact, many indispensible products have been created in government labs, such as GPS navigation and the Internet. The government also produces people who are able to become entrepreneurs or add value to existing companies. For the technology and cybersecurity industries specifically, former government employees can be sources of extremely rare expertise. The government is able to support technological innovation by virtue of being able to pour a great deal of money into research and development. In 2015 alone, the government spent approximately 136.4 billion on research projects.
The flow of technologies from the government to the private sector is primarily governed by two laws: the Stevenson-Wydler Technology Act of 1980 and the Federal Technology Transfer Act of 1986. These laws require federal laboratories to promote the transfer of technology to private firms and allow for non-federal entities to engage in collaborative research with them. Ideally, this allows the federal government to translate technological advances into economic advantages for both American firms and the American economy as a whole. Equally important, these laws delineate how that process works in order to ensure that the money generated is used appropriately.
According to Linda Burger, the director of the NSA Technology Transfer Program, the goal of these transfer programs is “to provide a return on the investment to the tax-payer by moving these products from the laboratory to the market-place.” This kind of transition has already yielded advances in a number of areas, from cell phone cameras to cancer detection.
The path for government employees who are transitioning from the public to the private sector is equally significant. Especially within the cybersecurity field, government employees gain expertise and skills that are incredibly hard to come by in the private sector. When these individuals decide to enter the private sector, either through a startup or by joining a larger firm, they bring those skills and insights along with them. These skills can result in extremely useful advantages and enhance developments in the field overall.
However, the transition from government to the private sector can be difficult due to stark differences between how the two operate. For example, Jason Syversen, CEO of Siege Technologies and a former program manager at DARPA, told The Cipher Brief that “it is imperative to change the mindset of the brave souls who move from the comfort of government to the excitement of a startup, as there is no checklist of procedures or higher authority to consult before getting things done.” Despite the potential for corporate culture shock, the ongoing shortage of skilled cybersecurity professionals means that there will likely be a place for former government employees in the private sector for the foreseeable future.
As technologies and individuals transition into the private sector, they bring a considerable economic benefit with them. A study of the economic impact of Department of Defense technology transfers from 2000-2011 showed that the DoD’s programs directly added $13.4 billion to the economy during that time, and created more than 163,000 jobs. Overall, the net impact of the programs was the generation of an additional $36.3 billion for the U.S. economy.
When it comes to technology and cybersecurity, there is clearly a strong benefit that results from the pipeline that leads from the government to the private sector. The technological advances, opportunities for innovation, and rare skills that are transferred to industry from the government are a source of jobs, products, and profits for an array of tech-dependent industries. At the same time, the government is able to benefit from stronger partnerships with industry that result in better products for government use, in addition to the consumer market. The symbiotic relationship caused by movement between the public and private sectors will likely continue to be a source of innovation and economic growth.
Luke Penn-Hall is the Cyber and Technology Producer with The Cipher Brief.
