ABSTRACT
A large amount of federal Research and development (R&D) is carried out to promote innovation in failing industries or to accomplish policy objectives that are not valued by markets. Technology R&D serves multiple markets in the public and private sectors. The ability of Personal Rapid Transit to attract the immense passenger volumes necessary to justify its front-end cost remains to be tested, although many independent observers concerned with the cost of building and operating the system view it as conceptually and economically untenable. The Urban Mass Transportation Administration finances 80 percent of the capital cost of most buses acquired by transit properties in the United States. This has positioned Urban Mass Transportation Administration to develop performance specifications for buses in a fashion that aggregates the market for buses and assures coach manufacturers that investments in tooling and parts inventories will be recouped due to a sufficient number of orders to insure payback.
