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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
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$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
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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.
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$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.”
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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.
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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
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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
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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
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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
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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
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Innovation Programs
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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
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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
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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
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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
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Growth Accelerator Fund: The Application
Mission and Vision
Impact
Implementation
Metrics
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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
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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
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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
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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.
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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)
Cluster Administrator:
Illinois Institute of Technology
Industry focus:
Smart Grid, electrification,
energy
FlexMatters – Northeast
Ohio Technology Coalition
(OH)
Cluster Administrator:
NorTech
Industry focus:
flexible electronics, advanced
energy, water technologies
San Diego Advanced
Defense Cluster
(San Diego, CA)
Cluster Administrator:
San Diego State University
Research Center
Industry Focus:
defense and homeland security
marketplaces
TechRich Defense Cluster
(10 counties in Northern AL)
Cluster Administrator:
Women’s Business Center of
North Alabama
Industry Focus:
advanced defense technology
Enterprise for Innovative
Geospatial Solutions Cluster
(MS, LA)
Cluster Administrator:
Magnolia Business Alliance
Industry Focus: geospatial
technologies
Northeast Electrochemical
Energy Storage Cluster
(New England, NY and NJ)
Cluster Administrator:
Connecticut Center for
Advanced Technology, Inc.
Industry focus:
Electrochemical energy storage
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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
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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
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• 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
$ $
$ $
Technology Regional Innovation Center Huntsville
HUNTSVILLE
Small Business Administration
• 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
Technology Regional Innovation Center Huntsville
ABOUT
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Technology Regional Innovation Center Huntsville
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
Small Business Administration
Technology Regional Innovation Center Huntsville
“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
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[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?
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[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).
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[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)
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Questions & Answers