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ANNUAL REPORT 2016
ANNUAL REPORT
2016
2 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016
The Illinois Science & Technology Coalition (ISTC) is a member-driven nonprofit that measures, connects, and enriches the Illinois innovation economy.
The Illinois Science & Technology Institute (ISTI), our 501c3-affiliate, focuses on science, technology, engineering, and mathematics (STEM) education, connecting companies with classrooms to better prepare the next generation of problem solvers.
GREETINGS FROM ISTC LEADERSHIP
At the Illinois Science & Technology Coalition and Institute, our mission is to create a stronger innovation
economy, working together with the state’s universities, industry, high schools, startups, and a network of
partner organizations. Our work continues to thrive because of the vibrant activity and ingenuity occurring
across our state.
Throughout the past year, ISTC and our affiliate Institute have doubled down on our role as an effective
intermediary organization, achieving continued impact in data collection and policy advocacy and delivering
high-quality education and innovation programs.
Key highlights from 2016 include:
• Celebrating continued growth and new insights from the Illinois Corporate-Startup Challenge, a
national award–winning program that links emerging companies with large corporations through a highly
curated matchmaking process.
• Releasing new data through the Illinois Innovation Index that highlighted Illinois’ STEM talent supply
and demand and demonstrated increased growth in entrepreneurial activity from our universities.
• Extending the scope of our education programs, which reach more than 2,000 students at 35 Illinois
high schools, offering novel industry partnerships and mentor engagement that are enriching the state’s
STEM talent pipeline.
We thank all of our member and partner organizations and funders (listed on pages 16–17), without
whose collaboration our work would not be possible. We look forward to continuing to advance Illinois
as a hub for technology, innovation, and entrepreneurship and ensuring greater economic prosperity
and competitiveness, both today and for future generations.
Mark Harris
President and CEO
Timothy L. Killeen
Board Chairman
INNOVATION
DATA
EDUCATION
ADVOCACY
ISTC FOCUSES ON INNOVATION PROGRAMS, DATA COLLECTION, EDUCATION, AND POLICY ADVOCACY.
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TABLE OF CONTENTS
ISTC, Argonne, and UI Research Park represent Illinois at the National Innovation Summit and Showcase in Washington, DC.
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ISTC identifies gaps and opportunities in the broader technology and innovation landscape and seeks to fill them. We use our network to catalyze and implement projects, drive outcomes, and support partnerships across technology sectors.
INNOVATION
Corporate-Startup ChallengeIn 2016, the Corporate-Startup Challenge (CSC) continued its work forging high-impact connections between global corporations and startups in the Illinois innovation ecosystem. Over the summer, the CSC team published an insights report tracking data, best practices, and lessons learned from three years of corporate-startup matchmaking.
In November, the program hosted its 16th demo day event with USG Corporation, a leading building materials company headquartered in Illinois. Nine startups representing architecture, engineering, and construction; digital tech; and materials industries pitched to USG leadership. Six of these companies are now in conversations about partnership opportunities.
The Corporate-Startup Challenge created an opportunity for Veriflow to secure a Fortune 50 client. Through this process, we were able to navigate toward a meaningful relationship with Archer Daniels Midland centered on an exciting cybersecurity project that was a great match for our technology. – Brighten Godfrey, cofounder and CTO, Veriflow
On June 7, 2016, ISTC hosted a panel of corporate, entrepreneur, and university professionals who participated in the Corporate-Startup Challenge to discuss the opportunities and challenges that arise when large and small companies work together. Left to right: Lily Yeung, Molex; Nigel Smith, Caterpillar; Laura Frerichs, University of Illinois Research Park; Jay Leib, NexLP; Don Sharp, CoolFire Solutions; and David Weinstein, Freshwater Advisors.
DEA
4 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016
CORPORATE-STARTUP CHALLENGE BY THE NUMBERS*
startups invited to pitch at one or more demo day events
companies selected for post–demo day diligence
partnerships secured
active engagements to date
*Data as of December 2016.
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Smart Grid ClusterThe Smart Grid Cluster (SGC) is a coalition of organizations financed by the Small Business Administration to support energy startup companies in the Midwest. As part of the cluster—which is now in its seventh and final year—ISTC supports the coordination of energy-specific resources from universities, national labs, and venture capital firms to build energy companies and address industry challenges. In 2016, SGC hosted more than 1,300 energy professionals at networking events. In partnership with Energy Foundry, SGC reviewed the business plans of more than 400 companies, met with 197 to provide assistance, and directly invested in 3. In addition, the cluster placed paid Illinois Institute of Technology interns at seven energy startup companies to gain industry experience and provide staff support to emerging businesses.
Illinois Science & Energy Innovation FoundationThe Illinois Science & Energy Innovation Foundation (ISEIF) addresses the human and community sides of energy and the electric grid. Through quantitative and qualitative data, ISEIF learns what it takes to get consumers energized about the smart grid. ISTI continues to serve as the project management organization (PMO) for ISEIF’s 10-year, $50 million grant initiative, which supports nonprofits and delivers smart grid consumer education throughout Illinois. As the PMO, ISTI helps to administer grants, convene grantees, and conduct evaluations.
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Illinois is the
Illinois is the
ISTC develops publications and data tools to help the state identify, celebrate, and build on its vibrant and diverse technology strengths. The Illinois Innovation Index is our premier online publication that provides analysis and insight into Illinois’ performance in targeted technology-related areas.
DATA
TALENT ISSUE
35,800 29.1%
2ND
4TH
12%
9%
=graduates in 2015
of all degrees granted in IllinoisSTEM
STEM jobs in Illinois are projected to increase by
compared with
growth nationally
biggest producer of computer science graduates in the nation
leading producer of MBAs nationally
I EA
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Illinois continues to outpace the rest of the country in production of STEM graduates. Illinois’ strength in STEM is due in large part to the growth of computer science; the state is now second nationally by number of annual computer science graduates. While the state slightly lags behind the national average in STEM job concentration, several key computer-related occupations are growing faster in Illinois than nationally. Illinois also competitively produces a high number of MBA graduates, ranking fourth nationally.
New data from LinkedIn shows how talent migration affects Illinois, which attracts talent from around the Midwest but loses talent to industry hotbeds nationally. LinkedIn data on skills also echoes the importance of STEM fields, with several STEM skills among the most-hired in the state.
Speakers from the Illinois Innovation Index release event on March 8, 2016, at the Illinois Institute of Technology: (from left to right) John Flavin, the University of Chicago; Dr. Francis Wang, SiNode Systems; Jim Garvey, Southern Illinois University; Alan Cramb, Illinois Institute of Technology; Tim Killeen, University of Illinois; Mark Harris, ISTC; and Chris Gladwin, Cleversafe and Ocient.
Following the release of the university entrepreneurship Index, Crain’s Chicago Business featured an op-ed coauthored by ISTC’s Mark Harris and University of Illinois President Tim Killeen.
The Illinois Innovation Index reports on university-supported entrepreneurship and STEM talent growth in 2016.
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UNIVERSITY ENTREPRENEURSHIP ISSUE
Startups founded by Illinois university students, faculty, or staff grew to more than 600 from 2011 to 2015, the highest level of startup formation ever captured by the ISTC University Entrepreneurship Survey. Funding raised by startups also grew this year, with companies raising nearly $345 million from 2011 to 2015.
From 2011 to 2015, Illinois universities produced more than
600 startups
Illinois university startups founded from 2011 to 2015 have raised
$345 million in funding
2 73% of active startups remain in Illinois—the highest ratio since the ISTC University Entrepreneurship Survey began
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STEM Challenges STEM Challenges are real-world projects that create opportunities for high school students to work alongside STEM professionals as mentors.
A STEM Challenge is a bridge between the classroom and a STEM career, facilitating collaboration between students and industry. It’s unlike the way companies typically engage with their community because it harnesses skilled volunteerism to create proven, measurable impact.
ISTC is dedicated to developing new talent—based in part on the needs our members will face in the coming years. Through our affiliated nonprofit, the Illinois Science & Technology Institute (ISTI), we run impactful programs that connect companies with classrooms to better prepare the next generation of problem solvers.
EDUCATION
ISTI PROGRAMS
Being a STEM Challenges mentor gives me an opportunity to champion our future leaders. For me, the rewards of watching the students grow and interacting with these incredible young minds is well worth my small time commitment.– Jenny, mentor, Takeda Pharmaceuticals
ID A
Students brainstorm with mentors at their STEM Challenge kickoff to generate innovative solutions to industry-posed problems.
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By problem solving around an industry-related question and interacting with professionals through the Mentor Matching Engine, our students better understand what their career would feel like. They come away from the experience with knowledge, improved problem-solving and interpersonal skills, and, most importantly, increased confidence. – Jeff, teacher, North Chicago Community High School
Mentor Matching Engine Mentor Matching Engine (MME) is an online collaboration platform for project-based mentoring that allows students and teachers to connect directly with STEM professionals anytime, anywhere. MME allows STEM professionals and academics to support high school students in projects that go beyond the classroom.
Mentors act both as content and field experts, guiding students through the research and design process. Unlike traditional mentoring, MME breaks down transaction costs and geographic barriers.
Students from across Illinois share their STEM Challenge solutions at ISTI’s annual Student Showcase.
Most students might not associate science with fun, but this program lets us personalize our projects, collect data, and draw our own conclusions. – JeNaye, student, Lindblom Math & Science Academy
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IN 2015–2016, ISTI’S PROGRAMS REACHED . . .
350 mentors
26 high
schools
200 dents
51% FEMALE
47% STUDENTS OF COLOR
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LOOKING FORWARD TO THE 2016–2017 SCHOOL YEAR
Join us on April 27 for this year’s STEM Challenge Student Showcase!
1,500 students
550 mentors
12 STEM Challenges
AbbVie Foundation Microsoft
Archer Daniels Midland Company
Motorola Mobility Foundation
Baxter International, Inc.
Motorola Solutions
Foundation
Horizon Pharma
Northrop Grumman
CorporationLoyola
University Chicago
Takeda Pharmaceuticals International, Inc.
State Farm
Illinois State University
63 teachers
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ISTC advocates for sound policies and programs at the state and federal levels. We actively support legislation and initiatives that have a positive impact on research, innovation, and technology commercialization. We also collaborate with elected officials, policy makers, regional economic development organizations, universities, industry, and state agencies to attract federal research and technology commercialization funding to Illinois.
ADVOCACY
ISTC SURVEYED ITS MEMBERS TO ASSESS INNOVATION POLICY PRIORITIES.
TOP AREAS INCLUDED:
Increasing capacity for scientific research
Strengthening innovation districts and regional technology clusters
Promoting a technically skilled workforce
Improving the transfer of research to new products and businesses (for example, expanding programs such as I-Corps and SBIR)
IDE
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Regional Innovation Strategies (RIS) program Led by the US Economic Development Administration’s Office of Innovation and Entrepreneurship (OIE), the RIS competition aims to spur innovation activities in regions across the nation. In 2016, ISTC again partnered with SSTI, a national organization that advocates for technology-based economic development. Together, we worked to ensure that RIS was included in the reauthorization process. The FY16 Omnibus Appropriations bill provided the program with $15 million, 33 percent more than in FY15. In addition, through the RIS competition, ISTC played an integral role in helping mHUB, Chicago’s first innovation center for physical product development and manufacturing, receive a $500,000 i6 grant.
Immigration reform ISTC continues to play an active role in the push for immigration reform to ensure that Illinois and the United States maintain a position of leadership and competitiveness in the global economy. ISTC President and CEO Mark Harris, a naturalized US citizen, continued to serve as a steering committee member on the Illinois Business Immigration Coalition (IBIC) and the FWD.us Innovation Council Chicago Chapter. In addition, utilizing data from the Illinois Innovation Index, ISTC highlighted the significant representation of foreign national students in the state’s supply of STEM graduates and entrepreneurs.
Above: ISTC worked with mHUB to secure the i6 funding, which will help accelerate the development of the mHUB facility and its programs. The photo (provided by mHUB) shows facility equipment in use. Right: ISTC’s Mark Harris joins Senator Dick Durbin (D-IL) and IBIC in support of immigration reform.
ISTC ADVOCACY PRIORITIES
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State tax credits In partnership with Illinois Biotechnology Innovation Organization (iBIO) and the Illinois Manufacturing Association (IMA), ISTC continues to make the case to reinstate the expired R&D and angel investment tax credits. These tools provide a strong return on investment and help to retain and attract innovation-driven companies and entrepreneurs.
Left: ISTC’s October 2016 Catalyst publication emphasized the need to reinstate Illinois’ R&D Tax Credit.
Below: Panelists Nancy Sullivan of IllinoisVENTURES, Illinois State Senator Daniel Biss, Illinois State Represen- tative Elgie Sims, and Michael Sachaj of Hyde Park Angels discuss the Angel Investment Tax Credit at a panel cosponsored by ISTC and iBIO.
Illinois’ research and development (R&D) tax credit expired in 2016 and has yet to be renewed. R&D tax credits help boost private sector R&D spending, create jobs, and contribute to the health of the state economy. A majority of research on the return on investment of R&D tax credits shows they are an effective tool in promoting R&D spending by private industry. – Mark Denzler, Illinois Manufacturers Association; Mark Harris, ISTC;
Warren Ribley, Illinois Biotechnology Innovation Organization
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Motorola Mobility Foundation*
Motorola Solutions Foundation*
Northern Illinois University
Northrop Grumman Corporation*
Northwestern University
Shedd Aquarium
Southern Illinois University
State Farm*
Takeda Pharmaceuticals International, Inc.*
* 2016 ISTI STEM Challenge participant
Oakton Community College
Quad Cities Chamber of Commerce
Quad City Manufacturing Laboratory
Rev3 Innovation Center
Rockford Area Aerospace Network
Rockford Area Economic Development Council
Smart Chicago Collaborative
Smart Grid Cluster
SSTI
TechAmerica
World Business Chicago
Association of University Technology Managers
Catalyze Chicago
Center for Neighborhood Technology
Chicago Council on Science & Technology
Chicago Innovation Mentors
Chicago Metropolitan Agency for Planning
Chicagoland Chamber of Commerce
Chicagoland Entrepre-neurial Center/1871
Choose DuPage
Citizens Utility Board
Clean Energy Trust
Coalition: Energy
Cook County
ISTC MEMBERS
ISTC PARTNERS
AbbVie Foundation*
Allstate
Archer Daniels Midland Company*
Argonne National Laboratory
Baxter International, Inc.*
Caterpillar, Inc.
Chicago Innovation Awards
Comcast
Danfoss
Deere & Company
CrunchBase
EIGERlab
Energy Foundry
Greater Peoria Economic Development Council
iBIO Institute
Illinois Biotechnology Innovation Organization
Illinois Business Innovation Services
Illinois Department of Commerce and Economic Opportunity
Illinois Department of Employment Security
Illinois Manufacturers’ Association
Illinois Manufacturing Excellence Center
Illinois Science & Energy
Exelon
Fermi National Accelerator Laboratory
Grainger
Horizon Pharma*
Hyatt Corporation
Illinois Institute of Technology
Loyola University Chicago*
Microsoft*
Molex
Innovation Foundation
Illinois State University
Illinois Technology Association
Illinois Venture Capital Association
IllinoisVENTURES
Leadership Council Southwestern Illinois
MATTER
mHUB
Museum of Science & Industry
New American Economy
NSERVE
PeoriaNEXT
PitchBook Data
University of Chicago
University of Illinois
UI LABS
USG
UL
Wellspring Worldwide
This work would not be possible without all of us working together. Thank you for your partnership.
17 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016
Universities and labs
Argonne National Laboratories - Chain Reaction Innovations
Bradley University
DePaul University
Fermilab
GTI
Illinois Institute of Technology
Illinois State University
Loyola University Chicago
Northern Illinois University
Northwestern University
Southern Illinois University
Sivanathan Laboratories
UI LABS
University of Illinois
The University of Chicago
Western Illinois University
Bloomington High School
CICS Longwood
Chicago Vocational Career Academy
Corliss High School
Downers Grove North High School
Eisenhower High School
Elk Grove High School
Evanston Township High School
Gwendolyn Brooks College Preparatory Academy
CORPORATE-STARTUP CHALLENGE PARTNERS
ISTI PARTNER SCHOOLS
Incubators and accelerators
1871
Catapult Chicago
EIGERlab
Healthbox
Illinois Biotechnology Innovation Organization
Impact Engine
Junto Institute for Entrepreneurial Leadership
MATTER
Techstars
VentureLab
Wavetable
Highland Park High School
Illinois Mathematics & Science Academy
Instituto Health Sciences Career Academy
ITW David Speer Academy
Lake View High School
Lindblom Math & Science Academy
MacArthur High School
Muchin College Prep
Naperville Central High School
Venture capital firms
7wire Ventures
Apex Venture Partners
Chicago Ventures
Energy Foundry
Firestarter Fund
G2T3V
Hyde Park Angels
Hyde Park Venture Partners
i2A Fund
IllinoisVENTURES
Irish Angels
Jump Capital
Lightbank
MK Capital
OCA Ventures
Origin Ventures
Pritzker Group Venture Capital
Sandbox Industries
Serra Capital
Naperville North High School
Niles North High School
Niles West High School
Normal Community High School
Normal West High School
North Chicago Community High School
Oak Park and River Forest High School
Palatine High School
Phoenix Military Academy
Civic & Nonprofit Groups
Built in Chicago
Chicago Innovation Awards
Chicagoland Chamber of Commerce
Clean Energy Trust
Heartland Mobile Council
Illinois Department of Commerce & Economic Opportunity
Illinois Medical District
Illinois Technology Association
Illinois Venture Capital Association
PeoriaNEXT
Quad Cities Chamber of Commerce
Rockford Area Economic Development Council
The Indus Entrepreneurs - Midwest
Women’s Business Development Center
World Business Chicago
Prospect High School
Saint Viator High School
Senn High School
Solorio Academy
Von Steuben Metropolitan Science Center
Washington Community High School
Wheeling High School
Williamsfield High School
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BOARD OF DIRECTORS
ISTC STAFF
CHAIRMAN Timothy L. Killeen President University of Illinois
MEMBERSGeoffrey CurtisSenior Vice PresidentCorporate CommunicationsHorizon Pharma
Linda Darragh (2014–2016)Executive Director Kellogg Innovation and Entrepreneurship Initiative Northwestern University
Daaron DohlerVP Head of OperationsR&D Strategic and Professional AffairsTakeda PharmaceuticalsInternational, Inc.
John Flavin Associate Vice President ofEntrepreneurship and InnovationUniversity of Chicago
Mark Harris President and CEO
Roxy Atienza Director of Operations
Allie Barwise Managing Director ISTI
Matt Bragg Program Manager, Data and Policy
Emily Cooper Director of Programs ISTI
Robert Fleming Vice PresidentCyber, Unattended Systems, and Division Strategy,Land and Self Protection Systems Division Northrop Grumman Corporation
Laura FrerichsDirectorUniversity of Illinois Research Park
Chris Gladwin (2014–2016)Founder and Vice ChairmanCleversafe (now IBMCloud Object Storage)CEOOcient
Shelley Stern GrachDirector of Civic EngagementMicrosoft Chicago
Utsav Gandhi Program Manager, Communications
Bob Greenlee Senior Advisor
Dave Machajewski Program Director, Innovation Initiatives
Emma Niendorf Program Manager ISTI
Alicia Löffler, PhDAssociate Provost for Innovationand New Ventures, Associate ViceProvost for Research, ExecutiveDirector, INVONorthwestern University
Robert LoweCEOWellspring Worldwide
Warren RibleyPresident and CEO iBIO and iBIO Institute
Sundeep VaniTechnology DirectorArcher Daniels Midland Company
Lily YeungDirector of Corporate DevelopmentMolex
222 Merchandise Mart PlazaSuite 1212Chicago, Illinois 60654
www.ISTCoalition.org
Cover photo: © mf-guddyx/istockphoto
