“ A New Model for Transfer of Federal Technologies to the Marketplace” © 2010

Understanding the Innovation Economy Historically, research resulting in innovative technologies has been the primary driver of economic growth and development. Technology led economic development has “clustered” around and been driven by major research institutions. Research that supports and/or has commercial application is the basic cornerstone in the creation of technology start-ups and expansion, supporting the growth of integrated industry clusters.

Building the Innovation Economy Research leading to commercializable discoveries Venture Capital to fund proof of (1) concept, (2) product, and (3) market Technical Assistance to license, patent, incorporate Entrepreneurs to start companies Business & Industry to commercialize and produce © 2010

Partnership Intermediary Authority Congressional authorization grants certain federal agencies the authority to contract with non-profits as “partner intermediaries” to facilitate tech transfer The purpose of the Domestic Technology Transfer Program is to facilitate the transfer of federal technologies to U.S. businesses for their research, development and production to meet federal requirements as well as commercial applications Technology transfer simultaneously enhances the economic competitiveness of U.S. industry and provides the federal agency with products that meet their needs © 2010

Project Premise The Center for Innovation, a U.S. Department of Defense (DoD) Partnership Intermediary, is premised on the belief that our future economic sustainability is dependent upon our ability to foster collaboration among and between our nation’s federal labs, research oriented universities, technology focused economic development entities, and the venture capital industry.

Center for Innovation’s Role Center has established TechComm, focused on building a new model to facilitate access to federal labs and patented technologies Market research is accelerated into the federal labs under Cooperative Research and Development Agreements (CRADAs) Federal technology discoveries are commercialized from the federal labs through Patent License Agreements (PLAs) © 2010

TechComm represents multiple federal agencies as a partnership intermediary Defense (1 of 5) 120 labs Agriculture (1 of 9) 80 labs Homeland Security (1 of 1) 8 centers National Institutes of Health (1 of 1) 27 institutes Transportation (1 of 1) 130 institutes NASA (pending) (1 of 1 ) 8 centers Energy (pending) © 2010

TechComm will engage additional federal agencies as partners Commerce  National Institute for Standards & Technology  Manufacturing Extension Partnership Offices Small Business Administration  District offices  CDFIs  SBDCs © 2010

Federal Labs Represent a Significant Resource 300+ labs $100+ billion annually on research 10,000+ patented technologies © 2010

Development of a Sustainable Model Vision – to provide an effective network of affiliate partners within a multi state region, with each partner serving as a conduit to a greater number of local, regional and state entities, including venture funds and research institutions Structure – selection of affiliate partners at state, regional, and local levels universities economic development organizations venture funds corporations © 2010

Implementation Approach Priorities: Engage broad base within region to ensure buy in Inclusive of government, education, industry, other PIAs Establish: National Council of Advisors State Steering Committees Project Advisory Committees Affiliate Partner Network (universities, EDOs) Corporate Affiliate Network Venture Affiliate Network © 2010

Federal Agencies National Council of Advisors © 2010 Center for Innovation TechComm U.S. Department of Defense TechComm Organizational Framework Affiliate Partner Network Advisory Council Corporate Affiliate Network Advisory Council Venture Affiliate Network Advisory Council Regional Showcase Advisory Council NIST/MEP Advisory Council (8 state offices) Commer- cialization Advisory Council PIA Network Advisory Council DoD (4) AG (8 ) Government Industry Education Government Industry Education Universities ED Entities Corporations VCs Louisiana State Steering Committee Missouri State Steering Committee New Mexico State Steering Committee Oklahoma State Steering Committee Texas State Steering Committee Arkansas State Steering Committee Colorado State Steering Committee Kansas State Steering Committee

Federal Labs Portal © 2010 Affiliate Networks TechComm Federal Agencies Arkansas Colorado Kansas Louisiana Missouri New Mexico Oklahoma Texas TechComm Operational Concept National PIA Network Defense (4) Agriculture (8) State Steering CommitteesPartners Universities (CRADAs) Economic Development Entities (PLAs) Venture Funds (equity) Corporate MEP – manufacturing assistance SBA – financial assistance DoL – workforce development

Affiliate Partner Network (APN) A new model to facilitate academic/industry partnerships for sustainable economic development and to meet the common interests of the participant federal agencies. Partner with selected research oriented universities to enhance the effectiveness of federal agency technology transfer programs and expand their impact Partner with selected technology oriented economic development organizations to enhance the flow of federal technologies to small and expanding businesses and to encourage technology based economic development “The adoption of research outcomes for public benefits.”

Corporate Affiliate Network (CAN) Corporate Affiliates will ensure the model built is responsive to industrial and business demand Corporate Affiliates will work directly with TechComm to develop a direct process for industry applications for CRADAs and PLAs, working with their  Strategic partners  Sub-contractor, supplier networks  Customers  Industry research

Venture Affiliate Network (VAN) Venture Affiliates ensure the model integrates the venture capital industry, inclusive of angel, pre-seed, seed, and later stage venture funds. Venture Affiliates serve as a source of equity, and will engage their portfolio companies seeking technologies Fund of Funds will serve as a catalyst for formation of venture and angel funds Angel Fund Network will comprise a network of early stage equity capital SBA district office will provide additional capital support

Project Objectives Establish multi-state affiliate network Co-host regional technology showcase events Develop commercialization process: a)Establish “portal” b)Push patents to market (PLAs) c)Pull research from the market (CRADAs) d)Project management Integrate the NIST/MEP network into the model Integrate additional federal agencies into model Enable collaboration with national PIA network © 2010

The “Portal” Connection © 2010 PORTAL Federal Agencies/Labs Inputs: – Patent Portfolios – Research Priorities Outputs: – CRADA proposals – Licensing partners Industry Inputs: – Capacity – Technology gaps Outputs: – Patents – CRADAs University Inputs: – Centers of Excellence – Research Portfolios Outputs: – CRADA proposals Industry/Academic Partnerships

Direct Support For Affiliate Partners The Center for Innovation will support the participation of all state, regional and local Affiliate Partners, providing:  Registered linkage to Portal  Access to federal agency technology patent portfolios  Access to federal lab research priorities  Center staff & technical assistance  Access to Corporate Affiliate Network  WBT Innovation Marketplace sponsor participation  NASVF sponsor participation  Regional showcase co-host opportunities  Patent landscaping assistance  Participation in all Center activities © 2010

Opportunities for Affiliate Partners Assistance in accessing funds  SBIR/STTR  Angel investor network/Fund of Funds Assistance in building Angel Investor Fund, participation in TechComm Angel Network Assistance in problem solving manufacturing capacity (NIST funded MEP program) Opportunities to network with both TechComm Affiliate Network members and federal PIA network

Affiliate Partner Engagement with Federal Agencies Guide industry and university research to appropriate federal lab/scientist for research partnership (CRADA). Triage business plans, industry capacity, and technology gaps of private sector to seek candidates for Patent License Agreements (PLAs). Acquire marketing assessment of federal technologies from 3 rd party sources (business colleges, angel investors). Coordinate regional “technology showcase” events to facilitate partnerships with private sector companies and universities.

Working with the Federal Labs Affiliate Partners will interact with the national PIA network to: Source technology  Source technology for federal agency/labs  Negotiate CRADAs Secure patents  License federal patented technologies Support growth of business, industry  Build sub-contractor and supplier networks  Establish start up federal contractors  Assist growth of manufacturers  Resolve “technology gaps”

“Our challenge is to understand the difference between accomplishment and impact.” Dr. Michael Postek National Institute of Standards and Technology © 2010

“ Change is debilitating when done to you… but exhilarating when led by you.” To succeed, we must effect a cultural change. © 2010

“It’s how Northern California became known as Silicon Valley.” © 2010

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