1. 2004 Utah Changed Jon Huntsman became Governor USTAR concept formulated Utah’s President Michael Young

2. USTAR Economic Leverage $25M/year Team Investment Average $166M/year Research Funding $250M one-time Infrastructure Investment Cumulative $977M State Investment $4,992M New Research Funds 123,406 USTAR jobs 422 USTAR companies Average $166M/year State Taxes $4,979M New State Revenues Papers.......... Patents.......... Products

3. USTAR Team Funding Start-up: average $5 million/team –3 PIs per team –teams average 30 members –computers and scientific equipment –moving costs for research –salaries and benefits costs are ongoing costs Research funds pay salaries after 4 years –Hire more teams –USTAR provides long term salary at $500,000 per team for expenses not covered by federal grants

4. University Commercialization Is the Critical Path USTAR Return on Investment $25 Million annual state investment & $250 Million for buildings 422 new companies 123,406 new jobs paying $62 Billion in salaries $4.9 Billion new external research funds $5 Billion in new tax revenues for Utah

5. Utah Transformed Operation 2004 Technology Prevention Organization “Hoping the coyotes will raise them” Bottom third of TTOs, ranked 96th 2008 Sustained Success Tied MIT #1 after 2 years at #2 09 Legislative proclamation #1 2009 and 2010 5000 th invention in 2010 Over 300 inventions 2011-12

6. Returns from Commercialization Dollars are in –Equity and royalties –Research back to the University –Donations and other support University of Utah received over $35 million in gifts to support commercialization Commercial-sponsored research yields more than license income

7. Start-ups University Inventors, Startups, & Revenue Revenues Faculty Inventors

8. Leading Indicator: Investment

9. Economic Results 2004-2011: 134 companies created – 74 companies 1970-2003 168 University of Utah companies – raised $ 568 million in financing 2005-12 – 7,160 Utah employees, total Utah direct and indirect employment: 19,818* – Total payroll over $947 million* – Taxes generated per year: $96.2 million* * 2011 Bureau of Economic and Business Research economic impact study

10. What we know now Smart team play can compete with unlimited resources Look for leverage/OPM Fund Critical Paths –Monitor milestones –Do not fund “no results”: post performance funding Outcomes depend on shots on goal –control strangles speed and momentum –place small bets with immediate milestones Capital Formation is about outcomes