Facilitating Technology Transfer Region-wide

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1 Facilitating Technology Transfer Region-wide by Maureen Kilkenny Visiting Professor North Central Regional Center for Rural Development October 27, 2011

2 3 challenges, 3 solutions 1. population loss in the rural Midwest 1. reshore manufacturing in the rural Midwest 2. loss of high-tech competitiveness in the U.S. 2. increase the high-tech knowledge transfer by NC Land Grants 3. funding of AES and CES flat or falling 3. bring in new & growing revenue for translational research

3 Today s webinar: Evidence of the challenges What CAN we do? What DO we do: How to fund it exemplary programs on each campus

4 Challenge 1: population loss in the rural Midwest USDA Rural Atlas, Census 2010 compared to >10% county population reduction since 2000 Census

5 Challenge 2: loss of high-tech competitiveness in the U.S. Advanced technology = advanced materials (nanotechnology) aerospace, biotechnology, electronics, flexible manufacturing, information & communication, life sciences, optoelectronics, nuclear, and weapons National Science Board (2010) Science and Engineering Indicators National Science Foundation

6 Nanotechnology (one billionth of a meter) applications may change the entire agriculture sector and food industry farming (fertilizers, pesticides, yield, waste treatment), conservation, processing, packaging, transportation; eating habits food safety, toxicity, environmental impacts 2008 US National Research Council re: regulation of nanotechnology Flexible manufacturing enables smaller runs, product line pivots, or total re-orientation of mass-production machine flexibility: produce different products, use different machines for same operation routing flexibility: change the order of operations, change volume, capacity, or capability Biotechnology uses living organisms and bioprocesses agriculture ( green ): genetic engineering: yield, resistance, food quality medicine ( red ): pharmaceuticals, tissue cultures manufacturing ( white ): biodegradation Back to suggestion

7 Solution: Reshore manufacturing to rural Midwest; our country s industrial commons Metro Counties USDA Rural Atlas Go to map of Farm counties Manufacturing sector employment >25% of county employment

8 Pisano & Shih (2009) Restoring America s Competitiveness Harvard Business Review

9 Reshoring advanced manufacturing R&D - - how Kansas State does it:

10 Millions Challenge 3: Hatch Funding (federal match) 2008, 2011 $6 $5 25% real reduction in 4 years $4 $3 FY 08 FY 2011 $2 $1 $0 Ohio State University University of Illinois Iowa State University Michigan State University Purdue University University of Wisconsin University of Minnesota University of Missouri Kansas State University University of Nebraska Data: South Dakota State North Dakota State

11 billions $ billions 2000$ growing federal funding for Land Grant R&D: NSF 2009 $3.9 bil. (current dollars) Dept of Commerce Dept of Energy Dept of Defense Dept of the Interior Dept of Transportation NIH NSF NSF to Universities & Colleges = 25.7 bil$ (current dollars) Federal Obligations for R&D to Universities & Colleges 1.0 USDA obligations to U&C in 1951 = 27% compared to NSF USDA 2009 $0.5bil (current $) 14% of NSF % 2% USDA to universities & colleges Data: & 9 annual tables

12 NSF EPSCoR funds advanced technology R&D at NC Land grants: Lead campus funds for these projects only biotech nanotech food life sciences Advanced manufacturing rural Optoelectronics Iowa State University $ 8,200, Kansas State University $ 1,671, Michigan State University $ 199, North Dakota State University $ 13,769, University of Missouri-Columbia $ 1,355, University of Nebraska-Lincoln $ 49,714, Grand Total $ 74,910, Experimental Program to Stimulate Competitive Research (EPSCoR) programs are offered by NSF, USDA, EPA, NIH, DoD, etc. to

13 What CAN we do? What DO we do: exemplary programs on NC 12 campuses Ohio State: STTR x-state industry-osu partnerships Purdue: PCRD+E&CD networks & economic gardening Purdue: TAP/MEP motivating faculty for industry inreach Mizzou: BDP extension to business CES+EDA+SBA+ UMN: BR&E red flags & task forces how to fund it

14 . STTR Small Business Technology Transfer awards go to businesses with academic partners. Ohio State partners with small businesses across the NC region: IA,IN,KS,MN,MO,NE

15 Source: Sharell Mickesell, Ohio State Office of Research, Industry Liason, AVP brochure Ohio State partners with small businesses all across the state of Ohio as well.

16 Businesses in Ohio have a higher STTR success rate (28%). Back to exemplary Forward to funding

17 Purdue Center for Regional Development (PCRD) & Extension for Economic & Community Development (ECD) ECONOMIC GARDENING (i) Focus on small& growing firms, (ii) transfer knowledge, (iii) encourage local investment in infrastructure, (iv) connect & network EDA University Center Grant $15 million WIRED grant from the U.S. Department of Labor through 2010 Back to exemplary Forward to funding Back to EDA centers a suggestion

18 Back to what we do EDA centers a suggestion Forward to funding

19 Purdue Technical Assistance Program (TAP/MEP) assisted 700 employers in 88 counties trained 3,239 employees + $177.5 million sales - $16.6 million cost reductions +$47.4 million capital investment 2,464 new or saved jobs Six core faculty (engineering, business) 5 days free assistance (state is 20% TR) Majority of issues resolved within 5 days faculty on overload basis Fees for service (40% total revenue) External grants (30% total revenue) Faculty are self-motivated because the problems are interesting Back to what we do a suggestion Forward to funding

20 MU Extension s Business Development Program BDP programs helped start 265 new businesses and create or save 26,000 jobs; assisted thousands of businesses increase sales $515 mil., secure $468mil in government contracts, $8 million in research grants, and $203 mil. new investment. Back to what we do EDA centers a suggestion Forward to funding

21 U MN Extension Business Retention & Expansion visitation programs Identify red flag issues that, if solved, keep Midwest businesses from closing or offshoring. opportunity to put flexible manufacturing systems to work? Flow Diagram of the BR&E Strategies Program Source: page 18, Darger (2001) Back to what we do a suggestion Forward to funding

22 New and growing funding sources

23 billions 2000 $ % all other FFRDC Fed - Federal *** - Academic % Industry-Academic Industry-Industry Trends in R&D expenditures by performing sector and source of funds Data: NSF National Patterns of R&D Resources: 2008 Update tabulation by author.

24 Department of Commerce Economic Development Administration (EDA) Funding Opportunities ($255 mil in FY 2011) FY 2012 Research Design Project to assess and evaluate economic development investments Assess Best Practices in Attracting Foreign Direct Investment and Expanding Exports in U.S. Regions and the Role of Regional Industry Clusters Research and Evaluation Jobs and Innovation Accelerator Challenge Competition under EDA's Economic Adjustment Assistance (EAA) Program EDA's Planning and Local Technical Assistance Programs FY 2013 EDA University Center Economic Development Program Competition (Iowa, Kansas, Missouri, Nebraska, North Dakota, South Dakota) up to $200,000 annually per center Goals and objectives: to create and nurture regional economic ecosystems through applied research and development, technology commercialization, and targeted activities that cultivate entrepreneurship. Back to suggestion

25 EDA Centers in the 12 NC States state EDA University Center home(s) Land Grant Extension IL Southern Illinois University IN Purdue * IA Iowa State KS K-State, U Kansas MI U Michigan MN MO SE Missouri State, U Missouri-Columbia NE Creighton ND Minot State U OH Bowling Green, Cleveland State, Miami U, Ohio U SD WI U Wisconsin-Stout

26 NSF support for the Innovation Ecosystem Source: Testimony by Thomas Peterson to Congress June 10,

27 NSF, USDA, EPA, NIH, EPSCoR Experimental Program to Stimulate Competitive Research (EPSCoR) New NSF innovation ecosystem programs: FY 2012 $190 mil. For advanced manufacturing New Innovation Ecosystem Research Experiences for Undergraduates (REU) nano-bio manufacturing; bioenergy manufacturing Grant Opportunities for Academic Liaison with Industry (GOALI) Industry/University Cooperative Research Centers (I/UCRC; ERC) Small but INTERDISCIPLINARY $80K first year, declining thereafter 90% industry-funded (e.g. $800K total funding per center annually) 70% of the centers are fully graduated (no federal support) Integrative Graduate Education and Research Traineeship (IGERT) ~ $3 mil per lead institution There are active IGERTS at 10 of the 12 NC LGs (ex. ND, SD) $30 million funding Go to suggestion

28 EPSCoR eligible states 2010 Missouri

29 EPSCoR general guidelines federal-state partnership Recipients are expected to use the funding to build high-quality, university-based research efforts provide a backbone for the state s scientific and technological enterprises contribute to a strong and stable economic base. More than one higher educational institution within one state not intended to support multi-state collaborations. however, multi-state projects have been funded recently. Partnerships with community colleges in the state are strongly encouraged Partnerships with industry (located anywhere) are strongly encouraged Research Infrastructure Improvement (RII) Program funding is for: Start-up Support for New Faculty Seed Grants Graduate Student Research Assistantships Doctoral Dissertation Assistantships

30 NSF EPSCoR funding to NC 12 since 1999 ISU $ 9,195,662 UIUC $ 165,179,499 Purdue $ 758,053 K State $ 3,693,664 MSU $ 199,093 UM $ 1,355,841 ND $ 22,347,016 UNE $ 53,014,519 SDSU $ 4,457,398 UW $ 1,059,611 total NC 12 $ 261,260,356 Back to challenges funding

31 Industry/University Cooperative Research Centers (I/UCRC) Engineering Research Centers (ERC) Back to funding

32 Growing Rural Innovation-Based Economies: Kansas Opportunity Innovation Network (KOIN) implemented by Kansas State s Advanced Manufacturing Institute, several EDA Economic Development Districts and many other partners to increase the number of globally competitive products and services produced in Kansas rural communities the network presents detailed analysis, builds new public-private partnerships, tests new approaches to rural cluster development innovation Back to EDA centers suggestion

33 one suggestion: Economic gardening Land Grant + industry collaboration Flexible manufacturing & nanotechnology retains rural manufacturers, jobs, and population Engineering faculty & mnf institutes + Agriculture & Extension faculty NSF or Commerce funding for knowledge transfer activities SBIR & STTR funds to rural businesses Land Grant rural development faculty retained

34 Discussion Questions? Suggestions for further research or collaboration..

35 Farm counties USDA Rural Atlas Census Back to mnf counties

36 An incentive to grow the region s share of the U.S rural population in the Hatch formula Hatch to state = previous year s base + 20 % increment equally + 26 % state share of US rural population + 26 % state share of US farm population + 25 % Hatch Multistate Research Fund

37 USDA five focus areas which must be included in Plans of Work for Hatch Funds (1)Global food security and hunger (2)Climate change (3)Sustainable energy (4)Childhood obesity (5)Food safety

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