Illinois Innovation Ecosystem. May 22, 2018

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Russell Timothy Stephens
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1 Illinois Innovation Ecosystem May 22, 2018

2 Illinois at a Glance Economic Powerhouse Largest economy in the United States, roughly the size of the Netherlands 5 th Research Leader In public and private R&D $16B expenditures annually Diversified Economy 12% The highest proportion of employment in any single Chicago sector, most diverse economy in the U.S. 2

3 What makes up the ecosystem? Universities & Research Industry Capital Entrepreneurial Resources Infrastructure Government Clusters 3

4 Universities & Research

5 Research Universities universities with more than $15M in academic R&D 11Research 5

6 Federal Research Laboratories National leader in Energy technology Nanotechnology Super computing Molecular engineering Particle physics Accelerator technology National Center for Agricultural Utilization Research Agricultural research Food technology Biofuels 6

7 Academic R&D $2.4B R&D spending by Illinois universities 3rd In Computer Science research nationally 5th In Chemistry research nationally 7 Source: National Science Foundation, Higher Education Research % Development Survey

8 University-Supplied Talent 2 nd Most computer science grads nationally 10% Annual computer science growth, th Most MBAs nationally 31.8% 28.3% 18.7% 18.2% Source: National Center for Education Statistics, 2017

9 University-Supplied Talent 40,000+ STEM graduates annually STEM Degrees by Level 6% 37% Of STEM grads receive advanced degrees 31% 63% 2,400 Postdocs employed by Illinois universities Bachelor's Master's Doctoral 9 Source: National Center for Education Statistics, 2017

10 University-Driven Startups 942 Companies created in the last five years 81% Of active university startups stay in Illinois 2x Startups , compared with Source: ISTC Analysis, Crunchbase, Pitchbook

University Incubation & Tech Parks 1 2 University of Illinois at Chicago: Health, Technology & Innovation (HTI) Center Bradley University: Peoria NEXT 8 9 10 7 1 6 6 7 Illinois Tech: Tech Park, Idea

11 University Incubation & Tech Parks 1 2 University of Illinois at Chicago: Health, Technology & Innovation (HTI) Center Bradley University: Peoria NEXT Illinois Tech: Tech Park, Idea Shop, Kent Law Clinic University of Chicago: Polsky Center for Entrepreneurship and Innovation 2 3 Southern Illinois University - Carbondale: The Southern Illinois Research Park 4 8 Western Illinois University: Quad City Manufacturing Lab 4 University of Illinois at Urbana- Champaign: Research Park, EnterpiseWorks 5 9 Northern Illinois University: EIGERlab 5 Southern Illinois University - Edwardsville: Research Park 10 Northwestern University: The Garage 3 11

12 Industry

13 Fortune 500 Community Biotechnology IT and Communications Food Logistics and Transportation Energy 4 th Largest concentration of fortune 500 companies Healthcare Retail Advanced Manufacturing Insurance and Finance Others 13 Source: World Business Chicago

14 Tech Sector Growth Tech Companies Valued $1B+ Tech Companies with 1,000+ Employees 14 Source: World Business Chicago, MNI, Built in Chicago

15 Private Sector R&D $12.7B In private sector R&D, 2015 $12.7B $6.8B 300 Corporate R&D facilities in Chicago area 8 th Most private sector R&D nationally 3% R&D expenditure increase Illinois State Average 15 Source: National Science Foundation, 2016

16 Capital

17 Capital Catalyzing Growth Research Proof of Concept Early Stage Product Dev. Commercialization Chancellor s Innovation Fund NUseeds N.XT Fund UChicago Startup Fund Innovation Fund Saluki Concept Fund Concept Commercialization Award University Funds Federal Funding Private Funding Angel/Venture Capital Industry 17

18 SBIR/STTR $34.9M $13.1M $469M in SBIR/STTR awards to Illinois over the last 10 years Phase I Phase II SBIR/STTR Funding,2017 Source: sbir.gov

Venture Capital $1.9B In venture funding in 2017, accounting for bulk of Great Lakes activity 174 219 245 278 268 272 224 129 Chicago 95 56 1.91 1.87 highest VC returns for any U.S.

19 Venture Capital $1.9B In venture funding in 2017, accounting for bulk of Great Lakes activity Chicago highest VC returns for any U.S. startup hub Source: Illinois Venture Capital Association, Pitchbook & Chicago Venture Summit

20 Angel & Venture Capital 20+ Angel investment groups Sample of Funds 70 Venture capital funds 20 Source: IllinoisInnovation.com

21 Entrepreneurial Resources

Network of Incubators 50 Incubators Top 10 Incubator to Watch (Forbes), 400+ companies launched

Employs more than 525, 90 percent of 35 companies still in business Energy and science technology

development of business and entrepreneurs in music, film/video and creative technology Industrial

co-working space with nearly 500 tenants, including accelerators, incubators, tech talent schools,

manufacturing Nationally recognized for efforts to promote diversity in tech.

Louis, Baltimore, California and Indiana Health and med tech hub for healthcare entrepreneurs and

22 Network of Incubators 50 Incubators Top 10 Incubator to Watch (Forbes), 400+ companies launched Over 35 peer-selected startups. Employs more than 525, 90 percent of 35 companies still in business Energy and science technology incubator housed within Argonne National Laboratory Chicago s first incubator focused on the development of business and entrepreneurs in music, film/video and creative technology Industrial Council of Nearwest Chicago 120,000 sq. ft. co-working space with nearly 500 tenants, including accelerators, incubators, tech talent schools, and the ISTC Chicago's first innovation center focused on physical product development and manufacturing Nationally recognized for efforts to promote diversity in tech. Expanded from Chicago to St. Louis, Baltimore, California and Indiana Health and med tech hub for healthcare entrepreneurs and investors, 150+ healthtech startups 120+ smallbiz tenants in its 410,000 square-foot incubator, one of the first 5 business incubators in the country Illinois first secondary education innovation center. The 6,400 square foot state-of-the-art innovation center is designed to ignite collaboration and entrepreneurial activity. 22

Network of Accelerators 30 Accelerators Accelerator jump starting heath care startups Health and Food Accelerator focused on

Innovation One of the nation s premier accelerators. Access to 150+ mentors that include founders of Answers.

world wide Underrepresented Groups 16 week program helping tech women do business, business women do tech Social Innovation

23 Network of Accelerators 30 Accelerators Accelerator jump starting heath care startups Health and Food Accelerator focused on medical device innovation Nation s first accelerator focused on building supply chains for sustainable local food Digital Innovation One of the nation s premier accelerators. Access to 150+ mentors that include founders of Answers.com, BaseCamp, Groupon, GrubHub, OKCupid, Orbitz, OpenTable, Walmart World s largest accelerator startup; one of 37 chapters world wide Underrepresented Groups 16 week program helping tech women do business, business women do tech Social Innovation Former accelerator, now impact investment fund, invested $700K in 23 companies Designed to empower military veterans to become entrepreneurs and leaders in innovation 23

24 Infrastructure

Transportation Hub 100M Passengers pass through

Transportation Hub Center Point of Interstate

25 Transportation Hub 100M Passengers pass through Chicago airports each year 110M Visitors to Illinois every year, including over 50 million to Chicago America s Air and Rail Transportation Hub Center Point of Interstate Transportation 25 Chicago Department of Aviation, Choose Chicago

26 Cost and Quality of Life 34% Lower total operating costs for tech companies in Chicago than San Francisco + 60% Lower average rent prices 500 Museums and art galleries 120 State parks 10 Professional sports team 26 Sources: CBRE Research, illinois.gov

27 Government

28 State Infrastructure Investment $216M In state funding to support 20 innovation hubs over 15 years 27:1 Return on state investment via Federal, private and other funding $216M State $5.9B Federal, private, and other funding 28 Source: ISTC

to drive growth and opportunity National

29 Strategic Public-Private Initiatives ChicagoNEXT Council of technology leaders to drive growth and opportunity National award-winning matchmaking program run by ISTC to connect large corporations with entrepreneurs $222M fund managed by the state treasurer to attract, assist, and retain quality technology businesses in Illinois Dedicated exclusively to increasing Illinois competitiveness for job creation and investment POWERED BY ITA Driving advancement of IoT technology, policy and industry, in Chicago and the Midwest 29

transportation and the electric grid UI LABS/Department of Defense

30 Federal Initiatives $120M $320M Argonne/Department of Energy partnership to create transformative battery technology for transportation and the electric grid UI LABS/Department of Defense partnership to transform manufacturing through digitization of the supply chain 30

31 NSF I-Corps I-Corps Sites Node 102 I-Corps teams since 2013 $68M In funding raised by I-Corps teams 31 Source: NSF

32 Clusters

33 Innovation Clusters Food Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 33

34 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 34

35 Food Technology and Innovation 1 st In the nation for food related patents Tyson New Ventures: $150M fund for food startups, based in Chicago 30% Of Illinois VCs invested in food companies Based in Illinois Food science research consortium comprised of the Illinois Institute of Technology, FDA, and Industry 35 Sources: Battelle; USPTO/ISTC Analysis; Chicago Booth/Polsky Center, FARM Illinois

Ag Technology and Innovation Sector Strength

Invested in AgTech in 2017 PrecisionAg Nexus of

transformative food and agriculture companies

strategic plan for food and agriculture in

36 Ag Technology and Innovation Sector Strength 330,000 Agriculture and related industry jobs $69M Invested in AgTech in 2017 PrecisionAg Nexus of data and agriculture Venture fund investing in transformative food and agriculture companies Organized to develop and implement a 21st-century strategic plan for food and agriculture in Illinois 36 Sources: Battelle; USPTO/ISTC Analysis, FARM Illinois, AgFunder

37 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 37

38 Health and Life Sciences Innovation $98.6B In economic output 592,000 Jobs 157,000 New jobs by th Chicago is the fifth largest life science metro by employment 2 nd Largest gain in the nation in medical device establishments $806M In NIH funding, Source: CBRE; Battelle, State of Bioscience Initiatives, 2012; National Institutes of Health; Illinois Medical District, Business Climate Magazine

Health and Life Sciences Innovation Advancing

Biomedical Consortium (CBC) Searle Funds at Chicago

University, University of Chicago and University of

39 Health and Life Sciences Innovation Advancing Innovation ILLINOIS MEDICAL DISTRICT Largest urban medical district in the nation $3.4B In economic activity 50,000 Daily visitors Chicago Biomedical Consortium (CBC) Searle Funds at Chicago Community Trust collaboration with Northwestern University, University of Chicago and University of Illinois at Chicago to accelerate biomedical discoveries and improve human health. 39 Source: imdc.org

40 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 40

Energy Storage, Smart Grid, and Clean Tech $3.

5M legislated to Energy Foundry fund for early-stage clean tech and

technologies R&D 113,918 Clean energy jobs, highest number in the

41 Energy Storage, Smart Grid, and Clean Tech $3.2B In legislated smart grid upgrades $22.5M legislated to Energy Foundry fund for early-stage clean tech and smart grid-enabled startups 3 rd in DOE funding for advanced energy technologies R&D 113,918 Clean energy jobs, highest number in the Midwest, 5.3% projected growth Advancing Clean Tech 41 Source: Department of Energy, Office of Science, OPEN 2012 Program, Clean Energy Trust

42 Energy Storage, Smart Grid, and Clean Tech $4.6M for creation of Illinois Clean Energy Fund to seed funding for energy innovation 10% of all patents citing energy publications cite Illinois research $3M From SBA to Smart Grid Cluster to support smart grid startups $120M DOE award for energy storage research Smart grid test beds Smart grid test beds 42

43 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Web and Mobile Health and Life Sciences Innovation High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 43

44 Web and Mobile Innovation $1.7B In venture capital funding in 2016; 179 companies funded $1.7B From 55 exits in 2016 Tech startup resource More exits in 2016 than any previous year 70+ VC companies outside of Chicago invested in Chicago companies 44 Source: E&Y; Built in Chicago

45 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 45

Nanotechnology Hub 160+ Companies and research institutions $1B+ in nanotechnology research, education, and infrastructure at the International Institute of

46 Nanotechnology Hub 160+ Companies and research institutions $1B+ in nanotechnology research, education, and infrastructure at the International Institute of Nanotechnology (INN) 11 Research centers dedicated to nanoscience and nanotechnology Growth Spaces 46 Source: Illinois Science & Technology Roadmap, iinano.org

47 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 47

48 High-Performance Computing 2 Of the world s fastest supercomputers MIRA Blue Waters 1.1 million sq.ft. Data center, one of the largest in the world 7.96 terabytes of data transmitting over the 3rd most powerful fiber optic infrastructure 48 Sources: TOP500; TeleGeography and Crain s Chicago

49 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 49

50 Telecom and Information Technology 5 th Largest IT workforce in the nation 246,000 Jobs in 2016 Scaling Illinois tech companies Major Operations in Chicago 2 nd Most computer science degrees awarded nationally 50 Source: Illinois Technology Association (ITA); TechAmerica (CompTIA Cyberstates report)

51 Innovation Clusters Food & Ag Technology and Innovation Smart Storage, Smart Grid, and Clean Tech Nanotechnology Telecom and Information Technology Health and Life Sciences Innovation Web and Mobile High-Performance Computing and Cyberinfrastructure Advanced Manufacturing 51

Advanced Manufacturing $100B In manufacturing output each year 572,500 Employed in manufacturing 3rd Highest manufacturing output nationwide Advancing Innovation

physical product development and manufacturing Improving the productivity and competitiveness of Illinois' small and mid-sized manufacturing firms Rockford Area

52 Advanced Manufacturing $100B In manufacturing output each year 572,500 Employed in manufacturing 3rd Highest manufacturing output nationwide Advancing Innovation in Manufacturing Manufacturing convener at the intersection of computing, big data, and the Internet of Things Chicago's first innovation center focused on physical product development and manufacturing Improving the productivity and competitiveness of Illinois' small and mid-sized manufacturing firms Rockford Area Aerospace Network Home to five tier-one aerospace companies and more than 90 supporting suppliers, with over 250 suppliers 52 Source: National Association of Manufacturers

Illinois Innovation Ecosystem. November 13, 2017

Illinois Innovation Ecosystem. November 13, 2017 Illinois Innovation Ecosystem November 13, 2017 Illinois at a Glance Economic Powerhouse Largest economy in the United States, roughly the size of the Netherlands 5 th Research Leader In public and private