R&D Programs in Support of Market Transformation: An Approach to Evaluation

Helen Kim, Paul A. DeCotis, David Coup, Dana Levy, Jennifer Ellefsen, and Mark Coleman, New York State Energy Research and Development Authority

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Abstract

The New York Energy $mart^sm program, administered by the New York State Energy Research and Development Authority (NYSERDA), and funded through a non-bypassable electric system benefits charge, offers a diverse portfolio of programs. Collectively, the New York Energy $mart^sm program is designed to achieve a number of broad public policy goals including developing self-sustaining markets and demand for energy efficiency products and services. In addition to various energy efficiency programs, the New York Energy $mart^sm program supports activities more traditionally defined as research and development (R&D). Whereas the evaluation of market development programs is centered on market indicators such as increased awareness, market share, and infrastructure development, evaluation of R&D programs, if conducted at all, is usually project specific and seldom linked to market outcomes. This paper suggests a framework for linking R&D to market development, showing how increasing the flow of information between R&D and market deployment activities can accelerate the achievement of market development goals. Examples are provided to illustrate the interactions among the various stages on the path to market transformation, and to present a model for R&D evaluation that stresses its contribution to market development and product deployment.