1. Economic Development Generating Excellence (EDGE) Oklahoma’s innovative action to increase applied research and technology commercialization for more high-paying jobs and a strong, diversified economy

2. H.E. “Gene” Rainbolt, Chair, Chairman of the Board, BancFirst Corp (Governor Appointee) Samuel Combs III, President, ONEOK Distribution Co (Pro Tempore Appointee) Gary W. Derrick, Derrick & Briggs (Governor Appointee) Ken Levit, Executive Director, George Kaiser Family Foundation (Pro Tempore Appointee) James Meyer, President and CEO, Bridgeport Holdings (Governor Appointee) Thomas C. Kupiec, Ph.D., President and CEO, Analytical Research Laboratories and DNA Solutions (Speaker Appointee) Bond Payne, Chairman of the Board, Heritage Trust (Speaker Appointee) Paul G. Risser, Ph.D., Executive Director, EDGE Policy Board EDGE Policy Board

3. EDGE legislation (SB 780) clearly defined targeted investment of the EDGE funds Requires one or more: 1. Expand directly the number of researchers, technicians and support services and associated activity with in Oklahoma. 2. Have a high potential to result in the formation and growth of advanced technology companies in Oklahoma. 3. Leverage of additional federal research grants and/or privately funded research in Oklahoma research institutions. 4. Have a high potential to improve the health status and quality of life for Oklahoma

4. Federal R&D Funding $ Rank Total to Oklahoma $322 M 38 Oklahoma per capita $91 45 US per capita $364 25 Per capita R&D funding to Oklahoma as % of national average = 25% If Oklahoma obtained federal R&D funding at the national per capita average, 3 X $322 M = $966,000,000 each year pumped into the State’s economy ___________________ American Association for the Advancement of Science (2007) EDGE Policy Board If Oklahoma captured more federal R&D funding…

5. EDGE Policy Board Mission To make investments in Oklahoma’s knowledge infrastructure to bolster the State’s long-term economic growth. Technology-based research and development, commercialization and entrepreneurial success historically attract capital, create more high-paying jobs, expand and diversity the State’s economy, and provide greater prosperity for generations of future Oklahomans.

6. EDGE Fund Policy In establishing the policies of the EDGE Fund, the Legislature authorized the EDGE Policy Board considerable latitude in making investments to increase applied research and technology commercialization. These investments are expected eventually to yield more high-paying jobs and a stronger, more diversified Oklahoma economy. Specifically, the Policy Board may set one-year or multi-year business sector priorities and invest relatively large dollar amounts over one to several years in competitively approved projects. These investments in research and technology can be made in key Oklahoma business sectors and can be invested in public and private organizations.

7. EDGE Policy Board Options Funding awards can be made to “push” technology by researchers to businesses and to “pull” research and technology needed by business Sectors from the research community. Many types of awards are possible, including proof-of-concept, applied research, matching funds, purchase of equipment, seed capital, or other projects that meet the EDGE mission. To the fullest extent permitted by law, the Policy Board may award the funding through grants, contracts, no interest loans, supplementary funds to existing programs or other agreed forms and subject to such terms and conditions as it deems appropriate in fulfilling the EDGE Fund’s vision and mission.

8. Operating Policies and Procedures 1.Areas of focus: Aerospace, Agriculture, Biotechnology, Energy, Information Technology/Telecommunications, Weather 2. Specifications in requests for proposals: - No minimum-maximum dollar amount - Funding one year or more - No indirect costs - >25% technology commercialization - <20% for equipment - Prefer public-private collaboration - Advisory Board - Few projects - Broad publicity - Return on investment

9. EDGE Policy Board Advisory Committee State and National Experts Oklahoma 3 California 2 Florida 1 North Carolina 1 Ohio 2 Technical and Business Expertise aerospace, agriculture, biomedical, biotechnology, energy, genomics, IT and computer science, weather science aerospace, agriculture, biomedical, biotechnology, energy, genomics, IT and computer science, weather science High-tech investment at all stages, state research consortium, regional entrepreneurship program, state and federal funding programs High-tech investment at all stages, state research consortium, regional entrepreneurship program, state and federal funding programs

10. EDGE Advisory Committee J. Donald Capra, M.D., (Chair) President Emeritus, Oklahoma Medical Research Foundation, OK Leroy Chiao, Ph.D. Executive Vice President, Excalibur Almaz, Houston, TX Richard A. Dixon, D. Phil. DSC, Senior Vice President, Samuel Roberts Noble Foundation, OK Robert Hines, Ph.D. President, tech Resources, Inc. Columbus, OH Robert McNeil, Ph.D. Managing Director, Sanderling Venture Partners, San Mateo, CA William Paiva, Ph.D. Manager, Oklahoma Life Science Fund, Sevin Rosen Funds, OK Duane Roth, Ph.D. Chief Executive Officer, CONNECT, San Diego, CA Warren Qualley, Ph.D. Senior Weather Engineer, Harris Corporation, Washington, DC Edward W. Ungar, Ph.D. President, Taratec Corporation, Columbus, OH

11. EDGE Proposal Review Process Steps 1 Invited pre-proposals (94) 2 Pre-proposals reviewed by Advisory Committee, Staff and Policy Board 3 All pre-proposals received review by Advisory Committee and Staff 4 Advisory Committee recommended 15 full proposals; Policy Board invited 19 proposals 5 Full proposals were reviewed by two (three) technical reviewers 6 Technical reviews were sent to the Advisory Committee and Policy Board 7 Advisory Committee selected 7 proposals for presentations at its proposal review meeting 8 Advisory Committee recommended 5 proposals to the Policy Board 9 Policy Board received presentations from the 5 proposals 10 Policy Board approved 5 projects, set budget amounts

12. EDGE Contract Process Steps 1. Draft contract language reviewed by two Policy Board members and the Attorney General’s Office the Attorney General’s Office 2. Draft contract language and performance benchmarks and impact measures reviewed by awardees measures reviewed by awardees 3. Final contracts and performance benchmarks and impact measures reviewed by Attorney General’s Office 4. Final contracts with performance benchmarks and impact measures sent to Policy Board members 5. Final contracts approved by Chair of Policy Board Budget Committee Chair, Attorney General’s Office, Executive Director of the Policy Board, and the Fiscal Officer of each General’s Office, Executive Director of the Policy Board, and the Fiscal Officer of each project project 6. Member of the Advisory Committee will review annual progress based on performance benchmarks and impact measures

13. Lead Organizations on Proposals Businesses (9) Charlesson, LLC Hyalose, LLC JK Autoimmunity, Inc. Nantiox, Inc. Ortho Care Innovations, LLC Rigen, Inc Selexys Pharmaceutical Corporation Corporation Southwest Nanotechnologies Strategic Solutions International, LLC International, LLC The Chickasaw Nation Research Organizations (2) Oklahoma Medical Research Foundation Presbyterian Health Foundation Universities (8) Oklahoma State University (4) University of Oklahoma (4)

14. Oklahoma-Glyco-Manufacturing Center: Going Global with Next-Gen Sugar-Based Therapeutics Principal Investigator: Paul DeAngelis Institution: Hyalose, LLC Business Sector: Biotechnology Funding: $687,609; $550,002 Explanation Hyalose--Cytovance Biologics alliance to co-develop the scale-up production of sugar-based products; develop FDA-approved procedures and documentation. Hyalose--Cytovance Biologics alliance to co-develop the scale-up production of sugar-based products; develop FDA-approved procedures and documentation. DNA, proteins, lipids and sugars are the major kinds of molecules in the human body DNA, proteins, lipids and sugars are the major kinds of molecules in the human body Know that sugar molecules can signal (sugar code) function on other cells Know that sugar molecules can signal (sugar code) function on other cells Sugars can be constructed in the laboratory to perform specified functions Sugars can be constructed in the laboratory to perform specified functions Produce glycosaminoglycan (GAG) molecules for evaluation, sale and licensing Produce glycosaminoglycan (GAG) molecules for evaluation, sale and licensing Sub-license materials to big pharmaceutical companies Sub-license materials to big pharmaceutical companies Produce low-cost materials for Oklahoma researchers Produce low-cost materials for Oklahoma researchers

15. Nanoparticle-Mediated Drug Delivery for the Treatment of Ocular Diseases Principal Investigator: Jian-xing Ma Institution: Charlesson, LLC Business Sector: Biotechnology Funding : $1,382,234; $1,498,797 Explanation Diabetic retinopathy, retinal swelling caused by vascular bleeding, major complication from diabetes Diabetic retinopathy, retinal swelling caused by vascular bleeding, major complication from diabetes Charlesson has small molecule that significantly reduces retinal vascular leakage and inflammation Charlesson has small molecule that significantly reduces retinal vascular leakage and inflammation Molecule can be encapsulated in a nanoparticle for slow release over >100 days Molecule can be encapsulated in a nanoparticle for slow release over >100 days Can also be used to treat age-related macular degeneration Can also be used to treat age-related macular degeneration Potential for nanoparticle encapsulation technology to be adapted to many drug therapies Potential for nanoparticle encapsulation technology to be adapted to many drug therapies Develop a nanoparticle formulation service for other researchers and applications. Develop a nanoparticle formulation service for other researchers and applications.

16. The Renewable EDGE Principal Investigator: J. Scott Greene Institutions: University of Oklahoma and Oklahoma State University Business Sector: Weather Science Funding: $996,395; $753,424 Explanation Project will develop geospatial technologies to meet the needs of the wind and weather science industries and commercialize these products Project will develop geospatial technologies to meet the needs of the wind and weather science industries and commercialize these products Develop high-precision wind power assessments and forecast system Develop high-precision wind power assessments and forecast system Develop detailed and accurate estimates of wind density in Oklahoma Develop detailed and accurate estimates of wind density in Oklahoma Develop the geo-spatial tool, ZepherBox, a multi-scale interactive information system Develop the geo-spatial tool, ZepherBox, a multi-scale interactive information system Commercialize these products Commercialize these products

17. Shape Engineering for Advanced Manufacturing (SEAM) Principal Investigator: Skivakumar Raman Institution: University of Oklahoma Business Sector: Aerospace Funding: $1,500,000; $1,500,000 Explanation Combines university-centered research facility with a for-profit corporation Combines university-centered research facility with a for-profit corporation University of Oklahoma, Oklahoma State University, University of Tulsa University of Oklahoma, Oklahoma State University, University of Tulsa Shape engineering methodologies through hardware and software infrastructures Shape engineering methodologies through hardware and software infrastructures Product reconfiguration analysis, innovative metrology (precision measurement), life-cycle analysis, process plans and integrated logistics Product reconfiguration analysis, innovative metrology (precision measurement), life-cycle analysis, process plans and integrated logistics Provide a central location for the world’s advanced shape engineering and manufacturing equipment for assessment and testing services Provide a central location for the world’s advanced shape engineering and manufacturing equipment for assessment and testing services U.S. Air Force and commercial aerospace companies; U.S. Air Force and commercial aerospace companies;

18. Project RESTORED (Research, Education, Science and Technology for Orthopedic Rehabilitation and Economic Development) Principal Investigator: David Boone Institution: OrthoCare Innovations, LLC Business Sector: Biotechnology Funding: $800,000; $800,000 Explanation Assembles, fabricates and tests prosthetics and orthotics which it sells to customers who fit patients Assembles, fabricates and tests prosthetics and orthotics which it sells to customers who fit patients Expand research, development and manufacturing capacity for prosthetic devices in Oklahoma Expand research, development and manufacturing capacity for prosthetic devices in Oklahoma Own intellectual property plus license to technology from ORNL, Hong Kong Polytechnic University; research funding from NIH and DoD Own intellectual property plus license to technology from ORNL, Hong Kong Polytechnic University; research funding from NIH and DoD Create a multi-institutional Limb Restoration Institute to foster long-term links with national research institutions and for technology commercialization. Create a multi-institutional Limb Restoration Institute to foster long-term links with national research institutions and for technology commercialization.

19. Research, Education, Science and Technology for Orthopedic Rehabilitation and Economic Development David Boone, Ph.D., OrthoCare Innovations, LLC Performance Benchmarks November 1, 2009 Develop 14,000 sq. ft. of manufacturing capacity Develop 14,000 sq. ft. of manufacturing capacity Bring 3 new advanced prosthetic technologies to market Bring 3 new advanced prosthetic technologies to market Create a prosthetic limb ISO testing laboratory Create a prosthetic limb ISO testing laboratory Create a research consortium for research and development, and for technology commercialization Create a research consortium for research and development, and for technology commercialization November 1, 2010 Bring 4 new advanced prosthetic technologies to market Bring 4 new advanced prosthetic technologies to market Host an international symposium on advanced prosthetics Host an international symposium on advanced prosthetics Create 30 new development and technology manufacturing jobs Create 30 new development and technology manufacturing jobs Establish a non-profit Limb Restoration Institute with a comprehensive program to improve life for amputees Establish a non-profit Limb Restoration Institute with a comprehensive program to improve life for amputees

20. Research, Education, Science and Technology for Orthopedic Rehabilitation and Economic Development David Boone, Ph.D., OrthoCare Innovations, LLC Impact Report 2009 2010 2009 2010 Number of new jobs created 23 55 Number of new jobs created 23 55 Salary distribution of these jobs $32k to $110K $32k to $110K Number of jobs retained 9 32 Salary distribution of these jobs $32k to $90k $32k to $110k Other project-based grants/contracts 2 at $125k each 3 at $150k each Dollars of capital raised $1 million $3 million Revenue from intellectual property $4 million $20 million Patent Applications 3 4 Patent Awards 2 3 Revenue from gross sales $7 million $23 million

21. EDGE After One Year Year 2008 Widespread interest Widespread interest Merit-based process Merit-based process Proposed R&D praised by Advisory Committee Proposed R&D praised by Advisory Committee Year 2009 Begin measuring ROI Begin measuring ROI Responsive to Oklahoma industries Responsive to Oklahoma industries Additional funding instruments Additional funding instruments

22. 2009 Policy Board Schedule of Events January 20 th EDGE Policy Board meeting April 7 th Policy Board meeting to decide parameters of annual investment program July 15 th Policy Board meeting to decide on formal proposal solicitations November 10 th Policy Board meeting to decide which proposals to be funded

23. 2009 Important Dates April 22 nd Pre-proposal request for submissions open for entry May 20 th Deadline for Pre-proposal submission July 15 th Solicitation for Full proposals September 16 th Formal proposals due October 23 rd Advisory Committee convenes to review and recommend full proposals November 10 th Policy Board meets to choose the proposals to be funded

24. Economic Development Generating Excellence (EDGE) Policy Board Meeting January 20 th, 2009

25. ~DRAFT~ Oklahoma’s Innovation and Technology Plan Using innovation and technology to strengthen Oklahoma’s economy January 20, 2009

26. The Imperative Our low cost of living (7 – 15%) does not compensate for our low family income (18%) below the national average Too many Oklahomans live in poverty (2.6% above national average; 22% of our children)

27. The Situation Oklahoma’s economy only grows by bringing dollars into our state Innovation and technology drive more than half of the increase in production of U.S. goods and services Therefore, we must use innovation and technology to export resources, products and services

28. Worth Recognizing 65% of the manufacturing job losses (2000 – 2006) due to increases in productivity 36 jobs are produced from every $1.0 M in academic research Licenses from academic research produce a new company nationwide every 2 days (1998 – 2007) Immigrants and international students account for 1/2 of this country’s science researchers Business founders with a high school degree have less than ½ the revenue and fewer employees after five years than firms started by college graduates

29. Worth Recognizing The average age of entrepreneurs who start businesses = 39 years Half of the start-ups companies are in the states where U.S.-born founders received their education Skilled immigrants start ¼ of all start-ups nationwide; half of the start-ups in Silicon Valley have at least one founder born in another country Experience demonstrates that strong economics are driven by the collaboration of private sector, academia and state government Many states are investing in innovation and technology; some have a statewide plan On most indices of status in and preparedness for the new economy, Oklahoma ranks 38 – 40 th among the 50 states

30. Recommendations (require little new money) 1.Make innovation pervasive in Oklahoma 2.Communicate among economic development organizations (Oklahoma Department of Commerce) 3.Connect Oklahoma businesses’ R&D needs to State’s research community (EDGE Policy Board) 4.Simplify technology transfer to private sector (Oklahoma’s research organizations) 5.Innovation Workgroup to foster innovative technologies (Oklahoma Department of Commerce, Oklahoma Business Roundtable)

31. Recommendations (require some new money) 6.Information technology and networks for innovation (Office of State Finance, Innovation Workgroup) 7.New teacher education program in science and mathematics, UTEACH, CALTEACH (teacher education programs) 8.Professional Science Masters Degree (universities with capability) 9.Industry cluster analysis (industry cluster leadership)

32. Recommendations (require significant money and priorities) 10. Centers of excellence (Oklahoma public and private research organizations) 11.Investments in applied research and technology commercialization (State government, research universities, private sector) 12. Assist Oklahoma start-ups and emerging businesses (State government, private sector)

33. Recommendations Summary Recommendations –Not all cost much money –Potential to assist large and small, urban and rural, new and established businesses –New information technologies –An inclusive framework without new bureaucracy –Multiple collaborations among businesses, academia and state government