1. MISSION: To accelerate the growth of the entrepreneurial
MISSION: To accelerate the growth of the entrepreneurial innovation economy in America
The following represents a preliminary framework on how to finance and bring together organizations, networks, and resources involved in growing the nation's entrepreneurial innovation economy
A private-public partnership such as Innovation America could be an innovation intermediary for facilitating this process between, State, Federal, University, Foundation and Private Sector stakeholders.
There is an opportunity to leverage successful federal SBIR recipients as well as state and regionally funded early-stage, high-growth growth technology companies
We believe that this is an important MISSING ingredient in the long-term health of America's Competitiveness and Technology Innovation leadership

2. INNOVATIVE SMALL BUSINESS FACTS
Innovative small business have generated 60 to 80 percent of net new jobs annually over the last decade
Employ 30 percent of high-tech workers, such as scientists, engineers, and computer workers
SMEs produce 13 to 14 times more patents per employee than large patenting firms
Small Companies are a key source of innovation by themselves and for Large Companies
Source: Small Business Administration
INNOVATION CAPITAL FACTS
Proof of Concept, Start-up, and Seed stage companies lack investment support
Most Seed stage firms need investments of $500K - $2M
The average venture capital investment today is $8.3M
Source: PriceWaterhouseCoopers – MoneyTree©

3. INNOVATION CAPITAL LIFECYCLE Proof of Concept / Pre-Seed
Start-Up
Early-Stage
Later Stage
Discovery
Expansion

4. NATIONAL INNOVATION SEED FUND
U.S. Federal Agency
National Innovation Seed Fund
$2 billion fund
National Seed Fund of Funds
50 Seed Funds
$1.8 Billion
Innovation Capital Technical Assistance Grant Fund
$200 Million
50 State/Regional Innovation Seed Funds
Receive approximately $10-15 M direct investment from NISF
Has to match with $1 from other third parties
Awarded on early-stage innovation focus and experienced managers
Leverages successful federal SBIR recipients and like or similar state and regional investment programs
Federal Government is a Financial Partner
Available to both NISF funds
Grants are used to provide support and technical assistance to fund managers, portfolio, companies & entrepreneurs
The National Public-Private Partnership would administer the Innovation Capital Technical Assistance Grant Fund
Approximately $200 M

5. National Innovation Advisor Federal Innovation Partnership
NATIONAL INNOVATION FRAMEWORK
Federal Innovation Partnership
National Innovation Advisor
Federal Technology Innovation Programs – SBIR, STTR, TIP, MEP, WIRED, FLC, EPSCoT, EPSCoR, NSF-PFI, NSF-IUCRC, NSF-Eng’g Resource Center, DOE-Ind’l Tech. Program
Innovation Federal Capital Programs –CRA, CDFI, NMTC, NISF, SBIR, TIP
Federal Innovation Partnership
A National Innovation high-level Advisor performs an intermediary function with the existing and potential new federal innovation programs and also interacts with other national innovation initiatives
Identify gaps in the US national innovation portfolio and make recommendations for new programs
Current Federal budget for listed Technology Innovation Programs is approximately $2.7 - $3 billion
Interacts with the National Public-Private Partnership and existing innovation associations and networks
Leverages its technology innovation investment programs with state and regional like or similar programs
Performance-based budgeting and measurement
National clearinghouse of information and resources

6. Innovation America NATIONAL INNOVATION INTERMEDIARY
Angel Capital
Association
(ACA)*
Community
Development
Venture
Capital
Alliance
(CDVCA)*
National
Association of
Seed &
Venture
Funds
(NASVF)*
American
Society
of Mechanical
Engineers
(ASME)*
State Science
&
Technology
Institute
(SSTI)*
National
Business
Incubation
Association
(NBIA)*
Association of
University
Research
Parks
(AURP)*
Association of
University
Technology
Managers
(AUTM)*
*Potential partnering innovation associations and networks
National Innovation Intermediary
A Public Private Partnership with a mission to accelerate the growth of the entrepreneurial innovation economy in America
Intermediates partnerships with existing innovation associations and networks and federal technology innovation programs
Manages & supports the listed programs
Innovation America
501©3
Not For Profit
Networking, Strategic Planning, Marketing & Branding
Technical Assistance, Education, & Mentoring
Technology, Economic & Workforce Development
Investment
Commercialization

7. Innovation America NATIONAL INNOVATION FRAMEWORK
Angel Capital
Association
(ACA)*
Community
Development
Venture
Capital
Alliance
(CDVCA)*
National
Association of
Seed &
Venture
Funds
(NASVF)*
American
Society
of Mechanical
Engineers
(ASME)*
State Science
&
Technology
Institute
(SSTI)*
National
Business
Incubation
Association
(NBIA)*
Association of
University
Research
Parks
(AURP)*
Association of
University
Technology
Managers
(AUTM)*
*Potential partnering innovation associations and networks
Federal Innovation Partnership
U.S. Federal Agency
Innovation America
501©3
Not For Profit
National Innovation Seed Fund
$2 billion fund
National Innovation Advisor
Innovation Federal Capital Programs –CRA, CDFI, NMTC, NISF
National Seed Fund of Funds 50 Seed Funds
$1.8 billion
Innovation Capital Technical Assistance Grant Fund
$200 million
Federal Technology Innovation Programs – SBIR, STTR, TIP, MEP, WIRED, FLC, EPSCoT, EPSCoR, NSF-PFI, NSF-IUCRC, NSF-Eng’g Resource Center, DOE-Ind’l Tech. Program
Networking, Strategic Planning, Marketing & Branding
Technical Assistance, Education, & Mentoring
Technology, Economic & Workforce Development
Investment
Commercialization

8. RECOMMENDATIONS
Create a $2 billion dollar National Innovation Seed Fund (NISF) that consists of a Fund of Funds and a Technical Assistance Grant Fund. The Technical Assistance Grant Fund provides entrepreneurial support resources and services to portfolio companies and Fund Managers.
Encourage the leveraging and coordination of Federal Technology Innovation Programs through a Federal Innovation Partnership with a new administration high-level National Innovation Advisor that has access to the President.
Create a new Public-Private Innovation Intermediary with a mission to accelerate the growth of the entrepreneurial innovation economy in America and oversee the National Innovation Seed Fund. This intermediary would be a program partially supported by a U.S. federal agency like the Department of Commerce or the Small Business Administration.

9. Innovative Federal Capital Programs
Community Reinvestment Act (CRA)
Community Development Financial Institutions (CDFI)
New Market Tax Credits (NMTC)
National Innovation Seed Fund (NISF)
Federal Technology Innovation Programs
Small Business Innovation Research (SBIR)
Small Business Technology Transfer (STTR)
Technology Innovation Program (TIP)
Manufacturing Extension Program (MEP) Workforce Innovation in Regional Economic Development (WIRED)
Federal Laboratory Consortium (FLC)
Experimental Program to Stimulate Competitive Technology (EPSCoT)
Experimental Program to Stimulate Competitive Research (EPSCoR)
Partnership for Innovation (NSF-PFI)
Industry University Cooperative Research Center (NSF-IUCRC)
Engineering Resource Centers (NSF-ERC)
Industrial Technologies Programs (DOE-ITP)

10. Examples of Existing Innovation Associations and Networks
ACA
Angel Capital Association
Lenexa, KS
The mission of ACA is to increase the success of member angel groups. ACA accomplishes
this mission by providing professional development, best practices, networking and
collaboration opportunities for angel investors who belong to member angel groups.
ASME
American Society of Mechanical Engineers
Washington, DC & New York, NY
ASME was founded in 1880 and is a global not-for-profit professional organization with
127,000 members. It promotes the art, science, and practice of mechanical and
multidisciplinary engineering and allied sciences.
ASME has recently created the Center for Engineering, Entrepreneurship, and Innovation.
AURP
Association of University Research Parks
Tucson, AZ
The mission of AURP is to promote the development and operations of research parks
that foster innovation, commercialization and economic competitiveness in a global
economy through collaboration among universities, industry and government.
AUTM
Association of University Technology
Managers
Chicago, IL
AUTM was founded in 1974 as the Society of University Patent Administrators with the
objective of addressing a concern that inventions funded by the U.S. government were
not being commercialized effectively.
AUTM has grown beyond this single objective and now provides professional development
and networking opportunities for technology transfer professionals at all career levels and
CDVCA
Community Development Venture Capital
Alliance
New York, NY
CDVCA promotes use of the tools of venture capital to create jobs, entrepreneurial
capacity and wealth to advance the livelihoods of low-income people and the economies
of distressed communities.
CDVCA is the network for the rapidly growing field of community development venture
capital (CDVC) investing. CDVC funds provide equity capital to businesses in
underinvested markets, seeking market-rate financial returns, as well as the creation of
good jobs, wealth, and entrepreneurial capacity.

11. Examples of Existing Innovation Associations and Networks
NASVF
National Association of Seed and Venture
Funds
Philadelphia PA
NASVF is an organization of innovation capital leaders: private, public and non-profit
organizations committed to building their local economies by investing in local
entrepreneurs.
NASVF began in 1993 as an ad-hoc group of practitioners seeking the best models to
encourage capital formation in their states, particularly for new technology ventures In
1997 it formally incorporated as the National Association of State Venture Funds. The
name was changed in 2000 to reflect the expanding service to private sector funds and
programs.
NBIA
National Business Incubation Association
Athens, OH
The mission of NBIA is to be a clearinghouse for information on incubator management
and development issues and on tools for assisting start-up and fledgling firms. NBIA
provides thousands of professionals with the information, education, advocacy and
networking resources to bring excellence to the process of assisting early-stage
companies worldwide.
The association is composed primarily of incubator developers and managers, but
technology commercialization specialists, educators and business assistance professionals
are also well represented. While a preponderance of NBIA’s 1,900-plus members
represent U.S. incubators and friends of the industry, NBIA members also come from 58
other nations.
SSTI
State & Science Technology Institute
Westerville, OH
SSTI is a national nonprofit organization that leads, supports and strengthens efforts to
improve state and regional economies through science, technology and innovation. SSTI
offers the services that are needed to help build tech-based economies.
Since its inception in 1996, SSTI has developed a nationwide network of practitioners and
policymakers dedicated to improving the economy through science and technology. SSTI
assists states and communities as they build tech-based economies, conduct research on
best practices and trends in tech-based economic development, and encourage
cooperation among and between state and federal programs.