This report recommends policies and actions to improve the return on investment the U.S. government makes in sponsoring research and development (R&D) at the Department of Energy's (DOE) seventeen National Laboratories ("Labs"). While the Labs make a unique and significant contribution to all of the Department of Energy's missions, the authors develop the idea that for the Labs to fully support DOE's energy transformation goals, their R&D management practices need to be updated to better reflect current research into innovation systems and management. They also highlight the necessity of Lab interactions with industry in order to impact the nation's energy infrastructure investment, which is, for the most part, privately held.

As the window of opportunity to avert dangerous climate change closes, the authors argue that we urgently need to take stock of government initiatives that accelerate innovation in energy technologies to reduce greenhouse-gas emissions. What works and why?

"The Department of Energy's (DOE's) National Laboratories are a core engine of the U.S. national innovation system but one in urgent need of a tune-up if the United States is to meet the pressing challenges of energy security and climate change mitigation. The next administration and Congress must modernize the policy framework shaping the National Labs to allow them to more effectively drive the innovation necessary to meet energy policy priorities."

Accelerating the development and deployment of energy technologies is a pressing challenge. Doing so will require policy reform that improves the efficacy of public research organizations and strengthens the links between public and private innovators. With their US$14 billion annual budget and unique mandates, the US National Laboratories have the potential to critically advance energy innovation, yet reviews of their performance find several areas of weak organizational design. This article discusses the challenges the National Laboratories face in engaging the private sector, increasing their contributions to transformative research, and developing culture and management practices to better support innovation. The authors also offer recommendations for how policymakers can address these challenges.

The Federal Government has many tools at its disposal to advance energy technology innovation. It can signal markets, for example, through energy tax and regulatory policy ("market pull"), and it can advance research, development, and deployment of energy technologies ("technology push"). Both of these kinds of tools can be effective, but the most effective policy portfolio balances a combination of these policies.