MedTech I.Q.

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U.S. Congress (House of Representatives) Ban on Earmarks to For-Profit Entities ... Does it Signal a Fundamental Shift in Business Model?

Colleagues,

Over the years, a non-trivial amount of funds have been committed to advanced medical technology research thru the Congressional Special Interest appropriations or Earmarking process. In a jolt to the way that business has been done over the last couple of decades, the U.S. House Appropriations Committee announced last week that it will no longer approve requests for earmarks directed to for-profit entities. The Committee leadership said that these new policies are not intended to be a one-year experiment. They are intended to be a long term proposition...

... This change alters the federal funding landscape pretty dramatically. To assure compliance, the Committee will require agency Inspectors General to audit at least 5% of all earmarks directed to non-profit entities. This oversight measure is intended to prevent for-profits from masquerading as non-profits...

... But, will it also foster new forms of partnerships between for-profit entities and hospitals, universities and other non-profit organizations? Will this lead to a new class of collaborative "Triple Helix" ... Academic, Industry and Government ... partnerships that combine the problem-rich environments of non-profits with the solution-rich capabilities of for-profit technology providers?.

... This is an open question, but one could imagine a scenario in which the ban could actually trigger increased collaboration between for-profit technology providers and non-profit entities in basic and applied research and "Proof of Concept" projects testing the validity of emerging technology in real world settings...

... Only time will tell ... But as the Chinese saying goes ... "In Chaos is Opportunity!"

... The U.S. Senate, to date, has not signed up to ban Earmarks to for-profit entities. Thus, we may assume that the practice of congressional Earmarking is not dead. But, how this Congressional prerogative evolves will warrant close scrutiny by MedTech-IQ, going forward.

You thoughts?

ENJOY!

CC

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Comment by CC-Conrad Clyburn-MedForeSight on March 15, 2010 at 8:23am
Addendum:

The House Appropriations Committee also said that a program will be established to provide an opportunity for businesses – especially small start-up companies – to present their good ideas and
products to the Defense Department. Businesses will be able to apply, but the Defense Department, not Congress, will choose which for-profit projects will be funded. We will monitor the emergence of this program and keep the MedTech-IQ community informed.

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