Strategic Plan

2013

Where Research and Innovation Mean Business

Operating together with the Office of Research & Innovation;

Rocket Ventures, LLC; MCOF; and INCENU

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“An institution’s culture is not an inert thing, though admittedly difficult to change. It

belongs to the people of the institution; an institution’s culture is constituted of the sum

total of the utterances and writings of the people who comprise the institution. We are

responsible for it. We create it with our utterances. We change it with our

physiognomy, demeanor, and speech.” - Directions, 2011

Preamble:

Innovation, which rarely occurs in isolation, is the creative energy of our lives applied in ways

that provide meaningful improvements to the human condition. Thus, the many and varied

participants in UT’s innovation efforts are committed to creating the conditions for innovation

to thrive - ultimately transforming The University of Toledo into the first place talented and

creative students, faculty, staff and entrepreneurs seek when choosing their path to success.

Innovation Enterprises, along with the Office of Research and Innovation and partners

throughout The University and the region, are working to enhance transformative idea

generation, to connect entrepreneurs and their ideas with the right people and other

development resources for their commercial success, and ultimately to help achieve the

rejuvenation of our community and region. By engaging our University in thinking and acting

inventively – our University community will collectively reshape its culture and achieve the full

relevance and economic impact envisioned in our Strategic Directions.

Our History…

Innovation Enterprises was born from visionary thinking and by innovators who sought

collaboration as a means of growth for both The University and the Northwest Ohio region.

Prior to the merger, The University of Toledo established the “Science and Technology

Corridor” as a very broad regional and international development effort with partners from

academia, government, industry and major cultural organizations in Toledo and environs. Few

partners brought financial resources to the table, making it difficult to gain traction, however

important dialogue was under way about what the region required in order to educate for and

compete in a robust global marketplace.

In 2006, with the merging of The University of Toledo and the Medical University of Ohio, the

“The Corridor” was re-examined in light of the new opportunities presented by the larger and

more comprehensive University. Initially, the focus of “The Corridor” was shifted to “place-

based strategies” such as developing a research park and incubation facilities to attract new

and existing business to the campus areas, thereby increasing job and research opportunities.

Soon, the Research Park was developed on the Health Science Campus, with help from the U.S.

Economic Development Administration (EDA), and on main campus, the Nitschke Technology

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Commercialization Complex (NTCC, a.k.a. “R2”) was constructed with help from the Nitschke

family and the EDA. NTCC now contains several start-up firms, with more on the way. On the

health science campus, the Laboratory Incubation Center has been re-purposed as an incubator

for start-up firms that fit with UT areas of research strength.

Although “place-based” strategies have been successful, academic, business and community

leaders have asked much more of us. Leaders have noted that northwest Ohio lags in

“innovation capacity” and cannot regain the prosperity it has lost unless we generate new jobs,

primarily from new businesses with novel products the market desires. UT’s formation of UT

Innovation Enterprises in 2009 was a response to this challenge and opportunity ---to create a

more innovative and entrepreneurial University community and region by using the academic,

physical, intellectual property, early stage funding and relationship assets of The University to

greatest benefit.

In 2010, UT established one of the first early stage technology commercialization funds of its

type - The UT Innovation Enterprises Corporation - a re-configuration of the Science and

Technology Corridor charitable organization. Supplementing these efforts through Ohio Third

Frontier funding opportunities and the Entrepreneurial Signature Program (Rocket Ventures),

these efforts have assisted the formation and early development of several UT spin-offs and

early stage technology firms in the region by providing market development, CEO talent and other

development expertise.

Lessons Learned…

From these early years, we learned that there is no substitute for proper leadership and defined

strategy aligned with the principles of our academic mission, while advancing innovative and

creative ideas in our university and Region. In our early investing, we depended extensively on

others in conducting due diligence, and we learned that we would like to focus more on our

own due diligence. We had very little in the way of process early on, basing most of our

investment decisions on relationships and technology, not fully researching the risk associated

with and the capabilities of the company and its executives. We also learned that since we are

conducting early stage investing, we must balance the risk in additional ways, such as managing

the risks by multiple tranches, with carefully defined milestones, and by highly disciplined

adherence to milestone achievement before releasing additional tranches.

From the start-up company incubation activity, we have learned how to cultivate appropriate

tenant firms, and how to connect firms with passionate UT research faculty and graduate

students to conduct “use-inspired” research and entrepreneurial activity. We have increased

the sustainability of these incubation activities by obtaining external funds from Ohio’s Edison

Incubation Program and company leases. However, we also learned that the many different

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economic development and technology commercialization partner programs throughout the

region each had their own eligibility criteria and that this complexity sometimes resulted in

confusion and frustration for clients and business counselors. With experience, we have found

more effective ways of engaging the best resources for each new business development

opportunity.

A final key reflection is that we must work ever harder to engage the talent in each of the

colleges, divisions and other areas of our University community in order to achieve the greatest

benefit from the fresh ideas coming forth every day.

Moving Forward…

Our revised strategies place greater emphasize increasing innovation and entrepreneurial

opportunities for students, faculty and regional business and industry, primarily in start-ups

with new or disruptive technologies. In addition, we will continue to work with University and

regional leaders to capitalize on the points of opportunity for both academics and businesses to

grow. Importantly, we must continue robust efforts to improve our Region by facilitating UT’s

role as a recognized and effective leader in regional economic development.

Our strategies are driven by Directions 2011, with particular focus on goals 2, 3 and 6 and the

sub-goals directly guiding our efforts:

Goal 2: Graduate and Professional Academic Programs:

o 2.4 We will establish a recognized role in economic leadership and stimulation of

the regional economy.

Goal 3: Research, Technology Transfer and Incubation:

o 3.2 We will bring UT to the top 150 in the NSF rankings of research expenditures.

o 3.3: We will build collaborations with federal research and development (R&D)

agencies.

o 3.4: We will build and develop research connections and collaborations with

leading universities and centers and private corporations.

o 3.6: We will provide nationally recognized technology transfer and technology

and incubation programs that assist in local business development.

o 3.7: We will provide quality infrastructure and support for faculty research and

scholarship.

Goal 6: Outreach and Global Engagement

o 6.5: We will be an economic catalyst for the region.

o 6.6: We will improve the region’s quality of place and increase community access

to UT.

o 6.8: We will encourage global engagement.

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Mission:

The Mission of The University of Toledo’s Innovation Enterprises (Innovation Enterprises) is to

identify, facilitate, stimulate and support successful commercial activity that is aligned with the

University’s vision and mission and the Region’s Interests.

Vision:

Innovation Enterprises’ vision is to help create a culture of entrepreneurship and innovation

among students, faculty, staff and alumni and the region; acting as a portal - facilitating

resource exchange between the University and commercial enterprises, organizations and

other institutions on a regional, national and global scale.

Striving to increase the value of:

Student and Faculty Experience

Revenue for Sustainability

Reputation

Research and Subject Matter Expertise

Core Assets:

Academic Resources

Facilities

Tech Transfer and Commercial Research

and Commercialization

Funding

Institutional Level Business Engagement

Our Accomplishments:

Provided startup funding and investments valued at over $7 Million

Provided business development and startup expertise to over 100 existing enterprises

Provided thousands of hours of consulting expertise

Working with Incenu we have managed over $50 Million of economic investment, which has

been committed to large scale projects in Northwest Ohio

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Our strategic goals are regulated by our guiding principles that

continually move us forward:

Being altruistic in our leadership and remaining focused on the best interest of the

University, and the region, while recognizing the importance of a sustainable funding

model.

Being a transparent portal between the University and the region, facilitating resource

exchange that promotes partnership and growth.

Always considering and measuring how our projects positively affect the student and faculty

experience, revenue for sustainability, brand, and research and subject matter expertise.

Innovation Enterprises Overarching Strategic Goals:

1. Advance an entrepreneurial culture, transforming

the university and the region, for the purpose of

improving the innovation system, human capital,

health care and wellness, and quality of place.

2. Utilizing our assets to enhance the four domains -

human capital, health care and wellness, quality of

place and the innovation system - to create

prosperity in the region.

3. To be among the leaders in regional economic development.

Each overarching goal has a set of tactics designed with our mission and the University’s core

assets in mind, and used to ensure we continue to accomplish our strategic goals. These tactics

are measurable, and flexible - designed to be enhanced on a rolling basis, keeping us relevant

and moving at the speed of business.

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1. Advance an entrepreneurial culture both within The University and

beyond, and in so doing, transform the University as an innovative and

entrepreneurial force in the region and the state, thereby improving

conditions in all domains (human capital, health care and wellness,

quality of place and the innovation system itself).

a. Effectively communicate our mission with students, faculty, staff, alumni, and the

region.

“Directions” Goal Tactic Metric 2

Engage Chancellor, Provost, Deans, Chairs, and others designated by deans to hear innovation-related input from employers and others and to collaborate on expanded innovation and entrepreneurial opportunities; Related networking and other events between innovation partners and department chairs.

Track number of initial meetings and expansion to opportunities for key innovation goals Track next steps and meeting outcome and report quarterly to the IE Board

“Directions” Goal Create and implement marketing and communications plan, with external and university input

Creation, approval and implementation of plan 2

b. Provide innovation programming that will advance a transformational innovation

and entrepreneurial culture throughout The University and the region.

“Directions” Goal Tactics Metrics

2,3,6 Utilize the IE and NWO Regional Business Plan

Challenges and UCEAO Ohio Clean Energy Challenge to

engage students, faculty and staff in entrepreneurism

and innovative thinking.

Number of applicants/teams Quarterly reporting from IE Challenge winners

“Directions” Goal Utilize School for Entrepreneurship and Technology

Commercialization (SETC), “intra-preneuring,” and

technology commercialization efforts to demonstrate

entrepreneurism as part of building culture. Also solicit

support for introducing innovation into key messages at

orientation.

Achieving metrics outlined in SETC Business Plan

2,3,6

“Directions” Goal Reconsider portfolio goals over the next 2 years toward

a risk-balanced portfolio of firms in various stages of

development early stage proof of concept/prototype,

later stage manageable risk firms, and “low-risk—near

to market” firms. With stakeholder input, refine deal

flow attraction strategy to broaden and enhance it

beyond the VC equity model.

Increase availability of programs and participation

of clients in business development learning

opportunities

Better risk balance in portfolio and greater variety

in growth partner strategies.

2,3,6

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c. Connect students and faculty with meaningful and transformational entrepreneurial

opportunities.

2. Utilize our assets to enhance the four domains - human capital, health

care and wellness, quality of place and the innovation system - to

create prosperity in the region.

a. Maintain integration to respond to university and regional research and technology

commercialization opportunities.

b. Assist faculty and student technologies from lab to launch.

c. Enhance commercial research opportunities.

“Directions” Goal Tactics Metrics 2,3,6 Utilize Incenu, Edison and other centers and

institutes as well as the SETC for experiential learning opportunities for students, connecting them with area businesses for internships, co-ops and eventual job placement.

Number of internships, co-ops and job placements as a result of our efforts

Number of student and faculty members interacting with industry and economic development partners and the quality of their experiences

“Directions” Goal Tactics Metrics 3 Place Provost and VP of Research onto Innovation

Enterprises Board; invite AVP of Tech Transfer to Innovation Enterprises Board meetings . Maintain active university integration through IE staff outreach and with UT executive leadership support. Continue strong ties with other tech commercialization programs.

Utilize Salesforce software to measure entrepreneurial connections within campus and between the campus and region

“Directions” Goal Tactics Metrics 3 Increase internal marketing efforts to students,

faculty and staff, working with UT Tech Transfer, colleges, and others.

Build upon invention disclosure and voluntary engagement levels, increasing IE activity levels by 10% each year

“Directions” Goal Support the transition of technologies from lab to launch

Number of technologies entering into active development; number of stages progressing through each year

2,3

“Directions” Goal Tactics Metrics 2 In addition to basic research, develop

opportunities for research with commercial applications.

Progress in partnership with UT Development to increase number of corporate research engagements

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d. Identify and secure additional funding sources, providing pre-seed and seed funding

to spur and grow innovation; creating sustainability for the Innovation Enterprises

Fund and related activities.

e. Revise monitoring and company engagement practices to ensure return on

investment.

f. Optimize available lab and Incubation facilities - Research Technology Complex (R1),

Nitschke Technology Commercialization Center (R2), and Minority Business

Development Center (Scott Park).

“Directions” Goal Tactics Metrics 2,3,6 Secure new pre-seed fund (e.g. Med-Innovation

Fund);

Explore new research Growth Strategies with Provost, VP of Research, Tech Transfer staff, others

Explore potential adoption of best practices from high performing benchmark universities, and top tier leaders (e.g. UM, Georgetown)

Additional funding opportunities identified Number of additional funding opportunities secured

“Directions” Goal Tactics Metrics 2,3,6 Require additional forms of reporting (beyond

financials from CEO) to UT Innovation Enterprises as key investor

Evaluate and share reports with IE Board, making changes when necessary

“Directions” Goal Reorganize sub-committees to more closely reflect our funding practices

Committee created Opportunities secured 2,3,6

“Directions” Goal Tactics Metrics 2,3,6 Develop and market a comprehensive list of

services we provide to incubation clients.

Survey current tenants and analyze data for future improvements

List created Survey results

“Directions” Goal Review of policy that would enable broader base of clients.

Reduce tenancy barriers with information obtained from survey feedback. Potentially update future tactics based on results.

Increased occupancy rate

2,3,6

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g. Create a database and/or academic resource network to identify expertise within

the University to support our due diligence process and projects.

3. To be among the leaders in regional economic development.

a. Facilitate connections with regional firms at points of opportunity.

b. Help attract new resources.

“Directions” Goal Tactics Metrics 2 Modify current Salesforce database to allow for

more efficient management of data collected when interacting with students, faculty and staff. Utilize academic network.

Additional expertise engagements from campus Measure new inquiries and other metrics as appropriate.

“Directions” Goal Tactics Metrics 6 Target top firms in region to cultivate enhanced

innovation opportunity development, collaborating with corporate engagement team in UT Development. Collaborate with regional economic development partners to enhance connections to University assets such as students, facilities, researchers, and innovation programs.

Within a year, we are working with 2 companies to explore venture opportunities Network of connections active and increasing

“Directions” Goal Tactics Metrics 6 Collaborate with leaders in regional economic

development on grants coordination (RGP, LCEDC, etc.), making University connections, as appropriate;

Utilize Incenu as a regional resource development collaborator, where appropriate strategically and operationally.

Increase in region’s success in identifying, submitting and winning grants Incenu clients and revenue assistance

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“We must embrace innovation; it is the only hope for a sustainable future.”

- Dr. Lloyd Jacobs, ‘A University Rising’

Epilogue:

Innovation Enterprises has been challenged to join with others throughout the University to co-create a

culture of innovation and entrepreneurism in the vibrant and essential life of the University - in effect

transforming it beneficially, in every place and every way. This strategic plan is a response to that

challenge by our Board of Directors, staff, and broad network of collaborators in the University and its

regional community.

Thus, the evolving mission of Innovation Enterprises is about more than just commercializing

technology. It is collaboratively enriching the University’s value as an innovative and transformative

educational, research and economic force for the benefit of its students, faculty, and the region.

Together with the Office of Research and Innovation and its affiliated organizations, this strategic plan

re-focuses its resources on goals and strategies to achieve both commercial and cultural development

objectives in ways that are measurable in both traditional business metrics as well as more subtle, but

highly meaningful ways of measuring a life well-lived.

We must think beyond “thinking outside the box,” and embrace the opportunities developed by creative

members of our University and community in order to refine the talents of our students to be more

highly contributing members of an increasingly interesting and complex world, while at the same time

generating a healthier regional economy. We have created this plan to be correspondingly flexible and

open to change. The goals, their tactics for execution, and the outcome metrics, are designed to be

malleable –while providing a direction that keeps us focused.

Drawing on the lessons learned from our early experiences, and informed freshly by our campus and

regional collaborators, we will continue to work together to build a more innovative and sustainable

future for The University and the Northwest Ohio region.

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Glossary*:

Technology Transfer is the process of transferring scientific findings from one organization to another

for the purpose of further development and commercialization.

An invention is a new configuration, composition of matter, device or process. Some inventions are

based on pre-existing models or ideas, and others are radical breakthroughs, which extend the

boundaries of human knowledge or experience.

Incubator is a facility designed to foster entrepreneurship and help startup companies to grow through

the use of shared resources, management expertise, and intellectual capital.

Incubation is the process of cultivating successful business development.

Seed Stage Company is a new or existing company that is in the idea or conceptual phase.

Early Stage Company is a company that is less than 10-years old and has less than 50 employees.

Innovation is the process by which an invention is translated into a good or service.

IE Business Plan Competition is sponsored by Innovation Enterprises, with substantial help from the

College of Business and Innovation, this is the annual opportunity for faculty, students, staff and alumni

to obtain help with brief business plan and competing to obtain additional resources to further develop

the business plan in preparation for active development.

*Our thanks to UT’s Office of Technology Transfer for contributions to this glossary.