National Innovation Summit & National SBIR/STTR Conference · A cluster is a geographic concentration of interconnected businesses, suppliers and associated institutions focused or

6/26/2014

1

Small Business Administration Office of Investment and Innovation

National Innovation Summit

& National SBIR/STTR Conference

Administration Priorities: Accelerators, Regional Innovation

Clusters, Lab-to-Market Commercialization

National Harbor 4| | JUNE 18, 2014

Small Business Administration 2

$135.4 Billion Dollar Budget for Federal R&D = Renewed Commitment to STEM Enterprises in America

$32,079M 24%

$32,641M 24%

$68,017M 50%

$2,615M 2%

Basic Research

Applied Research

Development

Facilities & Equipment

• Manufacturing

• Energy

• Climate

• Health

• Environment

• National Security Key Topical Areas of Interest

Science, Technology, & Innovation Priorities

for the 2015 Federal Budget

“We can win the future—by unleashing the talent and

ingenuity of businesses and workers in every corner of this

country…”

“…That's how America will win the future - by out-

innovating, out-educating, and out-building our

competitors.” – President Barack Obama

- US Global Change Research Program

- Networking & Information Technology R&D

- National Nanotechnology Initiative

Multi-agency Initiatives

6/26/2014

2


Science, Technology, & Innovation Priorities

for the 2015 Federal Budget $64,430

$31,069

$12,309

$11,555

$5,727 $2,447 $1,178 $688 $690 $219 $876 $865 $560 $336 $925 $252 $528 $203 $495

Budget Breakdown by Agencies

in Millions of U.S. Dollars

These critical investments will not only spur technological innovation but

will help develop a 21st Century STEM workforce here in America that

can maintain leadership and growth in critical areas of strategic

economic and national security interest.


$64,430

$31,069

$12,309

$11,555

$5,727 $2,447 $1,178 $688 $690 $219 $876 $865 $560 $336 $925 $252 $528 $203 $495

Budget Breakdown by Agencies In Millions

$32,079M

24%

$32,641M

24%

$68,017M

50%

$2,615M

2%

Basic Research

Applied Research

Development

Facilities & Equipment

Budget Breakdown by Spend Type

The $135 Billion R&D Budget of the United States – FY’15

What We Do @ 15,000 FT

Interagency Science & Tech Initiatives…

• National Nanotechnology Initiative

• Networking and Information Technology R&D (e.g., big data)

• US. Global Change Research Program

The budget…

• Sustains a World Leading Science and Research Enterprise

• Spurs Innovation

• Makes America a leader in Advanced Manufacturing

• Advances Cleaner, American Energy

• Improves Health for All Americans

• Prepares Americans with STEM Skills

• Expands Business R&D Investments (R&E Tax Credit)

“We know that the nation that goes all-in on innovation today

will own the global economy tomorrow. This is an edge

America cannot surrender…There are entire industries to be

built based on vaccines that stay ahead of drug-resistant

bacteria, or paper-thin material that’s stronger than steel.”

6/26/2014

3


President’s Management Agenda

“Lab-to-Market”

Fueling Small Business Innovation:

SBIR/STTR Program Managers have broken into 5

Working Groups focused on areas to help better

serve and develop the program in accordance to the

President’s Management Agenda around “Lab-to-

Market” Commercialization.

5


Outreach & Communications

Topics People

a. Identifying New Audiences

b. Tag-teaming and sourcing out to

SBIR-STTR Network for Accelerators

and Demo-Day Opps

c. Monthly or Quarterly Newsletter

d. Finding Blog and Video outlets

e. National Conference

f. Input on the webinar series in

partnership with NCET2

Co-Chairs:

John Williams-DOD-Navy &

Ed Metz-Dept of Education

WG Participants:

Edsel Brown-SBA

Nagesh Rao-SBA

Chris O’Gwin-DOE

Elissa Sobolewski-DHS

Joshua Hallock-USPTO

Betty Royster-NIH

Andy Talbert-DOD-MDA

Chris Rinaldi-DOD

Lindsay D’Ambrosio-NSF

6

6/26/2014

4


Commercialization Pathways

Topics People

a. Review the Best Practices and

Commercialization Metrics to provide

input to the DCs IPC Lab to Market

Meetings

b. Look at commercialization from a

variety of technology development

perspectives

Co-Chairs:

Lenka Fedorkova-NIH &

Jodi Williams-USDA

WG Participants:

Ron Cooper-SBA

Nareg Sagherian-SBA

Manny Oliver-DOE

Lee Ann Boyer-DOD-Navy

Frank Barros-DHS

Joseph Grant-NASA

Tracy Frost-DOD-OSD

Melissa Wong-DOT

Vikrum Aiyer-USPTO

Ajay Kundaria-USPTO

7


Awards Efficiency & Efficacy

Topics People

a. How to better expedite the review

and granting process

b. Ways to solicit better proposals

c. Tag-teaming coordination for joint

or co-solicitation opportunities

d. Sharing Best Practices

Co-Chairs:

Manny Oliver-DOE &

Rachael Sack-DOT

WG Participants:

Lisa Younger- SBA Liaison

Elissa Sobolewski-DHS

Matthew Portnoy-NIH

Charles Cleland-USDA

Tracy Frost-DOD-OSD

April Richards-EPA

8

6/26/2014

5


Databases & Interagency Exchange of

Information

Topics People

a. Examining how DBs work and

figuring out better flows of information

b. Analyzing and helping make the

DB be more GUI friendly

Co-Chairs:

Joe Hennessey-NSF &

Mitaire Ojaruega-DHS

WG Participants:

Nareg Sagherian-SBA

Amin Mehr-SBA

Carl Hebron-DOE

Mary Clague-NIST

Kevin Gutierrez-DHS

Tracy Frost-DOD-Navy

9


Asset Mapping

Topics People

a. Locating and Highlighting

Infrastructure & Clusters (Building on

what we already have and know)

b. Having Maps on Innovation

Ecosystems

Co-Chairs:

Rich Leshner-NASA &

Alan Rhodes-NOAA

WG Participants:

Edsel Brown-SBA

Scott Henry-SBA

Christine Villa-DOD

Vanessa Tesoriero-Dept of Education

Bradley Guay-DOD-Army

Clara Asmail-NIST

Tracy Frost-DOD-OSD

10

6/26/2014

6


Innovation Programs

11

OII’s Innovation Initiatives support high-growth

entrepreneurs and ecosystems

Accelerators | Work with programs that provide mentorship,

access to capital, and co-working space to new businesses in

exchange for equity - pilot capital $2.5m - key activities include:

Demo Day | Hosting demo day for accelerators, provide

funding and enhance the channel

Startup U | Fostering startup ecosystems for universities

Network/ Educate Accelerators | “train the trainers” and

increase quality of startups via best practice sharing

Crowdfunding | Leadership role on crafting proposed

regulations and their impact to stake holders along with

educating the small business community on the new platforms

Small Business Tax Reform | Working on proposed

regulation, their impact on high-growth businesses along with

educating the small business community on its implementation

Infographic Source: crowdfunder.com; prafulla.net/infographics/crowdsourcing-and-crowd-funding-infographic

Butler Venture Accelerator Program

Linking Innovation Industry and Commercialization (LINC)

RampCorp

What We Do @ 15,000 FT


Growth Accelerator Fund: What is an accelerator ?

We expect that applicants will have most if not all of the following characteristics:

Selective process to choose participating startups

Regular networking opportunities offered to startups

Introductions to customers, partners, suppliers, advisory boards and other players

High-growth and tech-driven startup mentorship and commercialization assistance

Shared working environments focused on building a strong startup community

Resource sharing and co-working arrangements for startups

Opportunities to pitch ideas and startups to investors

Small amounts of angel money, seed capital or structured loans to startups

6/26/2014

7


Growth Accelerator Fund: Filling Gaps

Silicon Valley got it started; we want to copy that

model all over the country

Gaps in the ecosystem:

Geographic

Women

Underserved communities


Growth Accelerator Fund: The Contest

Launched May 12th

$50,000 Prizes

To be used for operating costs

Deadline August 2nd

Finalists picked mid August; will be asked to complete

video pitch

Money out the door by mid-September

6/26/2014

8


Growth Accelerator Fund: The Application

Mission and Vision

Impact

Implementation

Metrics


Growth Accelerator Fund: Quarterly Reporting

Requirements of Winners

Jobs created (both in the actual accelerator team

and in the startups within the accelerator)

Funds raised or dollars invested

Startups launched

Progress of startups towards graduation

New startups in queue

Qualitative impact on community

Loans acquired

Corporate Partnerships obtained

6/26/2014

9


SBA’s Clusters Initiative

Mission:

The Small Business Administration’s Clusters Program

connects and enhances innovation assets so that

small businesses can effectively leverage them to

commercialize new technologies and expand into new

markets, thereby positioning themselves and their

regional economies for growth.

“Industries located within a strong cluster are associated with higher employment

growth…growth in wages, the number of establishments and patenting…Clusters play a crucial role in the path of regional economic development.”

Clusters, Convergence, and Economic Performance. Mercedes Delgado, Michael Porter and Scott Stern March 2011


Defining Clustering and Cluster Initiatives

A cluster is a geographic concentration of interconnected businesses, suppliers and

associated institutions focused or clustered around a particular industry or sector.

Traditional examples: Silicon Valley; Winemaking in Napa Valley

Cluster initiatives build off organic clusters by purposely integrating small, medium

and large companies and universities for business, funding and research opportunities

that create jobs, attract capital and have long-term, positive economic impact.

Core functions:

Serves as a navigator/concierge to connect stakeholders

Maintain governance structure

Provide some in-house technical assistance and rely on outside service providers

Small

Businesses

Colleges

Entrepreneurs Lenders

Gov’t

Agencies

Large

Contractors Venture

Capital

Investors

Community

Leadership

Trade

Associations

Industry/Sector

Cluster

Initiative

6/26/2014

10


Main Functions of SBA Clusters Program

1. Directly supports regional cluster initiatives At a community level, SBA-funded cluster initiatives measurably connect sector-specific public and private resources to provide small businesses with specialized assistance, mentoring, showcasing, and access to capital

2. Convenes thought leaders, policy makers, and practitioners In order to foster healthy innovation ecosystems for small businesses in advanced industries, the program convenes cluster leaders, shares best practices, and encourages collaboration between public and private partners at local, state and national levels.


SBA’s 7 Regional

Innovation Clusters

Advanced Power & Energy

Cluster

(Upper Midwest)

Cluster Administrator:

Minnesota Wire

Industry focus:

Power, energy and supporting

systems

The Smart Grid Cluster

(IL and Midwest)


Illinois Institute of Technology

Industry focus:

Smart Grid, electrification,

energy

FlexMatters – Northeast

Ohio Technology Coalition

(OH)


NorTech

Industry focus:

flexible electronics, advanced

energy, water technologies

San Diego Advanced

Defense Cluster

(San Diego, CA)


San Diego State University

Research Center

Industry Focus:

defense and homeland security

marketplaces

TechRich Defense Cluster

(10 counties in Northern AL)


Women’s Business Center of

North Alabama

Industry Focus:

advanced defense technology

Enterprise for Innovative

Geospatial Solutions Cluster

(MS, LA)


Magnolia Business Alliance

Industry Focus: geospatial

technologies

Northeast Electrochemical

Energy Storage Cluster

(New England, NY and NJ)


Connecticut Center for

Advanced Technology, Inc.

Industry focus:

Electrochemical energy storage

6/26/2014

11


Results from Two Years of Evaluations

Attitudinal Findings:

• 60% of small business respondents agree or

strongly agree that cluster participation resulted

in the development of new products and

services.

• Of those small businesses seeking

commercialization services, 59% agree or

strongly agree that cluster participation led to

the commercialization of new technology.

• 87% of small businesses reported that the

services and activities provided by the clusters

were unique and could not be found elsewhere.

• 80% of participants agree or strongly agree that

cluster activities led to increases in collaborative

activity within their region.

Percentage of Small Businesses

Developing New Products or Services

60%

Percentage of Small Businesses

Commercializing New Technology

42%

Number of patents received

by Small Businesses

76 out of 111

who filed

new businesses started after

founders’ first participation in their

cluster 18

of the Regional Innovation Clusters

Small Business Administration

Enable small businesses to compete for and secure Advanced Technology contracts

Army Materiel Command (AMC)

Army Aviation & Missile Command (AMCOM)

Army Contracting Command (ACC)

Army Aviation & Missile Research, Development &

Engineering Center (AMRDEC)

Army Space & Missile Defense Command (SMDC)

Army Program Executive Office (PEO Aviation)

Army PEO – Missiles & Space (PEO MS)

Army Security Assistance Command (USASAC)

Missile Defense Agency (MDA)

Missile & Space Intelligence Center (MSIC)

• Business matching

• Business training

• Advice/mentoring

• Technology transfer

• Commercialization

• SBIR/STTR assistance

• Export readiness

13 County North Alabama Region

Technology Regional Innovation Center Huntsville

OVERVIEW

6/26/2014

12


• U.S. 2nd largest Research Park

• Highest concentration of engineers (per capita) in U.S.

• Leading Employers Army/Redstone 38,000 NASA MSFC 6,000 Boeing 2,600 SAIC 2,200

“Corporate Ecosystem” 17 Feb 2014

Remington 2,000

Federal Budgets Managed Army Material Command $54B

Army Security Assistance Command $20B Army Aviation and Missile Command $17B

Army Contracting Command $10B Army PEO Aviation $8B

NASA MSFC $2B

$ $

$ $


HUNTSVILLE


• September, 2010 SBA developed innovative regional economic development models

• Competitive 2-year pilot program with 10 regional clusters across the United States

• 56 clusters have been identified and funded by federal agencies

• In 2013, 7 of the 10 original SBA clusters were renewed, including the HADTC

• In 2014, HADTC contract under VCSI novated to WBCNA

BACKGROUND

MISSION

Diversify the economy, sustain economic growth, create jobs and firms, accelerate business growth, capitalize on defense and space technology assets, and enable small businesses to pursue new and emerging markets

CURRENT FOCUS

• Re-Branding Under WCNA • Collaboration with SB Organizations • Production of “Traveling Road Show” • Near-Term Events • Long-Term Sustainment • Metrics for success


ABOUT

6/26/2014

13



INITATIVES

OUTCOMES

Tech Transfer Commercialization

Measurable SB Growth

• Compliance with SBA SOW—expansion to 13 counties

• 1-on-1’s with OSPPs and other SB service providers

• Collaboration with ICE Lab/Business Button

• Cross-Cluster CRADA and other collaborative initiatives

• Fall 2014 “Shaping SBO Series”

• Simplified Annual/Quarterly/ Monthly Plan next year



“SHAPING SBO” SERIES Shaping Small Business Opportunities

Main Event: Panel Discussion September 2014

Main Event: Prime Training

September 2014

Selective Screening

Main Event: Tech Demo

November 2014

“Pitch Training

Here’s what I need

Prime Businesses

Hear what they said

Main Event: 1-on-1’s

October 2014

Small Businesses

Maybe strike a deal

Selective Screening

Prime/Small Businesses

More opportunities

(Notional)

Prime/Small Businesses

6/26/2014

14


[Discussion] Regional Innovation Clusters:

From Theory to Practice

Michael Porter and Competitiveness (1998…)

Federal efforts to design programs around RIC conceptual framework

Increased multiagency cooperation with regions Example: i6 Challenge Competitions (US Dept. of

Commerce)

Best practices: a few large efforts or many small efforts?


[Discussion] Regional Innovation Clusters: What

works, what needs more work?

Grassroots proposals vs. top-down directives

Valley of Death 'Insurance’ (Can these efforts reduce risk of failure?)

Evaluation: what works best? Can we measure outcomes (soon enough to make a difference)?

Pooling resources is good, but also creates multiple stakeholders' interests (more red tape? keeping a balance).

6/26/2014

15


[Discussion] Regional Innovation Clusters:

Future, what's next?

Better ways to 'hookup": Facilitate Collaboration

Better measurement tools & more awareness of program outcomes

Smaller RICs: Regional Innovation Districts? (Brookings)

Greater focus on Entrepreneurs: new ways of creating scientist entrepreneurs? (i.e., i-Corps Nodes)


Questions & Answers

Documents

National Innovation Summit & National SBIR/STTR Conference · A cluster is a geographic concentration of interconnected businesses, suppliers and associated institutions focused or