1 National Science Foundation Engineering Directorate Industrial Innovation & Partnerships Division

2 Overview  Introduction to NSF  Engineering Directorate  Industrial Innovation & Partnerships  SBIR/STTR  Contact Information

3 National Science Foundation  Created:1950  Federal Agency:Independent  Total Budget FY 2007:$5.92 B » FY 2008: $6.43 B (Request)  Director and Deputy Director: Presidential appointees  Employees:1,200  Intergovernmental Personnel Act (IPA): 1/3  Federal service appointments: 2/3  Supports: Basic research and education  Grant Mechanism: Merit-based review

4 NSF Mission & Vision  Mission: To promote the progress of science; to advance the national health, prosperity and welfare; to secure the national defense  Vision: Advancing discovery, innovation and education beyond the frontiers of current knowledge, and empowering future generations in science and engineering

5 Director Dr. Arden Bement Organizational Structure Directorate for Engineering Directorate for Computer and Information Science and Engineering Directorate for Geosciences Directorate for Education and Human Resources Directorate for Mathematical and Physical Sciences Directorate for Social, Behavioral, and Economic Sciences National Science Board Office of the Inspector General Deputy Director Dr. Kathie Olsen Office of International Science and Engineering Office of Equal Opportunity Programs Office of Integrative Activities Office of Budget, Finance, and Award Management Office of Information and Resource Management Office of the General Counsel Office of Legislative and Public Affairs Directorate for Biological Sciences Office of Cyberinfrastructure Office of Polar Programs

6 Directorate FY 2006 Actual ($M) FY 2007 Plan ($M) FY 2008 Request ($M) FY 2008 Request Change over FY 2006 Actual ($M) Change over FY 2007 Request ($M) Amt% % BIO$580.90$607.85$633.00$ %$ % CISE$ % % ENG (less SBIR/STTR)$ % % SBIR/STTR$ % % GEO$ % % MPS$1, , , % % SBE$ % % OCI$ % % OISE$ % % OPP$ % % IA$ % % U.S. Arctic Research Commission$1.17$1.45$ % % Research & Related Activities$4,449.25$4,765.95$5,131.69$ %$ % NSF Budget for Research & Related Activities by Directorates

7 Engineering Directorate

8 Emerging Frontiers in Research and Innovation (EFRI) Chemical, Bioengineering, Environmental, and Transport Systems (CBET) Civil, Mechanical, and Manufacturing Innovation (CMMI) Electrical, Communications and Cyber Systems (ECCS) Engineering Education and Centers (EEC) Industrial Innovation and Partnerships (IIP) Directorate for Engineering FY 2008 Office of the Assistant Director Deputy Assistant Director Program Director for Diversity &Outreach Office of the Assistant Director Deputy Assistant Director Program Director for Diversity &Outreach Senior Advisor Nanotechnology Senior Advisor Nanotechnology

9 DirectorateFY 2007 Actual FY 2008 Estimate BIO$608.54$ CISE$ ENG (less SBIR/STTR)$ SBIR/STTR$ GEO$ MPS$1, , SBE$ OCI$ OISE$ OPP$ IA$ U.S. Arctic Research Commission$1.45$1.47 Research & Related Activities$4,758.44$4, NSF Budget by Research Directorate Dollars in Millions

10 ENG and NSF Funding Rates Research Grants ENG Proposals and Awards Funding Rate Percent

11 Industrial Innovation and Partnerships Division

12 Industry/University Cooperative Research Centers Rathindra DasGupta Glenn Larsen Alex Schwarzkopf Industry/University Cooperative Research Centers Rathindra DasGupta Glenn Larsen Alex Schwarzkopf Partnerships for Innovation Sara Nerlove Partnerships for Innovation Sara Nerlove Grant Opportunities for Academic Liaison with Industry Donald Senich Grant Opportunities for Academic Liaison with Industry Donald Senich Office of Industrial Innovation SBIR/STTR Office of Industrial Innovation SBIR/STTR Industrial Innovation and Partnerships Division Director Kesh Narayanan Division Director Kesh Narayanan Advanced Electronics Advanced Manufacturing Advanced Materials Biotechnology Civil Infrastructure Systems Energy and the Environment Fabrication and Processing Technology Health and Safety Information and Communications Quality, Reliability and Maintenance System Design and Simulation Advanced Electronics Advanced Manufacturing Advanced Materials Biotechnology Civil Infrastructure Systems Energy and the Environment Fabrication and Processing Technology Health and Safety Information and Communications Quality, Reliability and Maintenance System Design and Simulation Program Director/Advisor Cheryl Albus Biotechnology Thomas Allnutt, Cindy Znati, Electronics Juan E. Figueroa, Murali Nair, William Haines Information Technology Errol Arkilic, Ian Bennett Special Topics James Rudd, George Vermont Program Director/Advisor Cheryl Albus Biotechnology Thomas Allnutt, Cindy Znati, Electronics Juan E. Figueroa, Murali Nair, William Haines Information Technology Errol Arkilic, Ian Bennett Special Topics James Rudd, George Vermont Senior Advisor Joe Hennessey Senior Advisor Joe Hennessey

13 The SBIR/STTR Program Small Business Innovation Development Act of 1982 Congress designated 4 major goals  Stimulate technological innovation in the private sector  Use small business to meet federal R&D needs  Foster and encourage participation by minorities and disadvantaged persons in technological innovation  Increase private-sector commercialization innovations derived from federal R&D

14  DODSBIR/STTR  HHSSBIR/STTR  NASA SBIR/STTR  DOE SBIR/STTR  NSF SBIR/STTR ~$108M  DHSSBIR  USDA SBIR  DOCSBIR  ED SBIR  EPASBIR  DOTSBIR SBIR / STTR Participating Agencies TOTAL ~ $2.5 B FY 2008

15 SBIR Program Details  Funds set-aside for SBIR  ~$108 million for Phase I, II, and IIB combined  SBIR = 2.5% of NSF R&D budget  STTR = 0.3% of NSF R&D budget  Grantee must be Defined as a Small Business:  Set up as a profit organization with 500 or few employees  Special STTR Requirements  Cooperation research agreement between small business and university/non-profit research institution in place to protect intellectual property  A minimum of 40% of budget resides with the small business; a minimum of 30% of the budget goes to the university/non-profit research institution; the remaining 30% can be distributed as appropriate for the project  Three-Phase Approach:  PHASE I – Feasibility Research (6 – months - $100,000)  PHASE II – Research Toward Prototype (24 – months - $500,000)  PHASE IIB – Matching Funds against outside investment (12 – months up to an additional $500,000)  PHASE III – Product Development to First Revenues (non-SBIR/STTR funding)

16

17 Market Driven Solicitation Topics  SBIR (only) solicitation currently opened. NSF Closes June 10,  SBIR topics:  Biotech and Chemical Technologies (BC)  Electronics, Components and Engineering Systems (EL)  Software and Services  STTR (only) solicitation will be released in the Fall of 2008  STTR topics:  To be Determined (most likely Materials/Manufacturing)

18 Program Information  NSF is not the final customer  NSF does not buy product/process or software or intellectual property commercialize  NSF wants grantees to successfully commercialize high-tech research  Investment $ beyond SBIR is needed

19 Supplements  NSF supplements to existing grants are important driver for small businesses to partner with industry.  Currently over 20% of NSF SBIR/STTR grant funds go towards supplements as an optimum way to “bridging the gap”.

20  Strategic Partner  Venture capital firm  Angel investor or Network  State Government  Local Government  Non-SBIR Federal Government  Any combinations of the above! Phase IIB Third Party Investor

21 Phase IIB Matching Fund Trend $0 $20,000,000 $40,000,000 $60,000,000 $80,000, Investment ($)NSF/IIP Match ($)Leverage Investment ($) $10,629,692$43,514,150$57,812,521 NSF/OII Match ($) $5,314,846$14,143,797$18,389,707 Leverage

22 MatchMaker Program  To match SBIR/STTR Grantees with Strategic Partners, Angel Investors and V.C’s to provide the ongoing support necessary for achieving successful commercialization.

23 Industrial Companies in MatchMaker  ATMI  General Motors  Procter &Gamble  Dupont  General Electric  Dow Chemical  Intel

24 Industrial Companies in MatchMaker (cont’d)  Colgate Palmolive  Rohm & Haas  Praxair  Texas Instruments  Air Products and Chemicals  NEC  Caterpillar

25 MatchMaker Program Venture Capital Partners  ARCH Venture Partners  Mohr, Davidow Ventures  Alameda Capital, LLC  Taproot Ventures  The Carlyle Group  Paladin Capital Group  Quantum Venture Partners

26 MatchMaker Program Venture Partners/Angels  AM Benjamin Services  Venture Investors  JK&B Capital  ITU Ventures  Draper Atlantic  Technology Tree (Houston Angels)  Atlanta Technology Angels

27 Partnering Success for Companies  In past several years NSF seen notable successes in partnering for their SBIR companies. Nat Academy study shows  License agreements 20%  R&D agreements 17%  Marketing/Distribution 16%  Manufacturing agreement 8%  Joint Venture agreement 3%  Our goal is to increase the number of partnerships through active involvement with industry and investors through the MatchMaker program.

28 SBIR/STTR Grantees

29 Sensant (Phase IIB) High Quality Dielectric films for Novel Medical Ultrasound Probes Develop transducers that have stable charge trapping behavior Develop test structures and infrastructure to measure charging in suspended membrane Demonstrate stable high e-field behavior Demonstrate acceptable MTBF with zero dead elements Outside Investment Angel Investors: $1,250,000 Acquired by Siemens Medical Silicon wafer

30 Grant Number: OII Web-Based Manufacturing Performance Management Invistics Tom Knight Impact  Improve U.S. global manufacturing competitiveness  Sell software and services  Create wealth for investors Novelty  Web-services software  Unique optimization algorithms for “high- mix” manufacturing  Extends ERP/MRP for Lean Lineage  Initial sales to customers:  Raised $8 + mil. venture capital  Collaboration with MIT/GATech Company Mission  Value: Help customers ship more product, on-time, with 50% less inventory  Team: Lean Mfg. thought-leaders  Exit Strategy: Acquisition by a larger software company

31 Thank you! Information websites: