3.6.  Research and Development Programs

A research and development (R&D) program is a DPP formed to develop a patented or unpatented invention, process, or technology. It may consist of a single project or multiple projects. R&D programs usually consist of a contractor, a promoter, and a group of limited partners.

The contractor is generally an operating company with an idea for a new technology or product line. Not wanting to invest company assets in a program that may take years to develop and carries high risks, it forms a research and development DPP. The contractor will transfer the rights to its idea to the DPP and as general partner will manage the development activity.

The promoter is generally a financing partner that provides funds to the program in exchange for an interest as general partner. The promoter might be a venture capitali