Benefit/cost analysis is an integral component of program evaluation and strategic planning. We have developed an approach customized for benefit/cost analyses of new technologies through our work for the private sector and with government agencies, including the National Institute for Standards and Technology (NIST), the National Science Foundation (NSF), and the National Telecommunications and Information Agency (NTIA). Our six-step approach provides an effective way to review the existing market structure and supply chain interactions, and develop technical and economic impact metrics needs to support quantification of benefits and costs.
We frequently conduct benefit/cost analyses by creating counterfactual scenarios that leverage market trends and expert opinion to evaluate markets in the absence of a technology's introduction. Accurate microeconomic impact assessments clearly define the baseline from which changes in quality, cost, and timing are measured. Employing counterfactual scenarios allows us to view the path markets would have followed had the technology not been introduced.
For example, when assessing the economic impact of new medical technologies, the first step is to project health care quality and costs based on available alternatives. Benefits and costs of the new technologies are then measured relative to the counterfactual baseline.
Benefit/Cost Technology Studies
- Economic analysis of Internet protocol version 6 (IPv6)
- Measuring service-sector research and development
- Economic impact of inadequate infrastructure for supply chain integration
- Economic analysis of the international Standard for Exchange of Product (STEP) model data
- Estimating social and private returns from innovations in HDTV technology and component-based software based on the NIST's Advanced Technology Program
- Economic impacts of inadequate infrastructure for software testing
- Evaluation of advanced energy-efficient technologies and renewable energy resources