Metrics and Key Outcomes Related to SFAz Grant Programs

Transcription

1 Metrics and Key Outcmes Related t SFAz Grant Prgrams Prepared by: Battelle Technlgy Partnership Practice June 2011

2 Battelle des nt engage in research fr advertising, sales prmtin, r endrsement f ur clients interests including raising investment capital r recmmending investments decisins, r ther publicity purpses, r fr any use in litigatin. Battelle endeavrs at all times t prduce wrk f the highest quality, cnsistent with ur cntract cmmitments. Hwever, because f the research and/r experimental nature f this wrk the client undertakes the sle respnsibility fr the cnsequence f any use r misuse f, r inability t use, any infrmatin, apparatus, prcess r result btained frm Battelle, and Battelle, its emplyees, fficers, r Trustees have n legal liability fr the accuracy, adequacy, r efficacy theref.

3 Key Metrics fr SFAz Summary Findings Based n Battelle s survey f Science Fundatin Arizna (SFAz) grantees acrss all f its prgrams frm 2007 thrugh 2010 state funding, SFAz s perfrmance-based, cmpetitive grant prgrams in R&D partnerships, technlgy cmmercializatin and science, technlgy, engineering and math (STEM) talent advancement are demnstrating a grwing recrd f success and tangible ecnmic benefits: Leverage in R&D funding frm SFAz grants is rising and having brader ecnmic and significant jb impacts fr Arizna ver the first fur years f funding: Amng the cmbined $77.6 millin in state funding t SFAz frm 2007 thrugh 2009, $63.4 millin has been invested in university and nnprfit research funding initiatives which resulted in an additinal $199.5 millin in industry match and nn-state research funding raised in supprt f SFAz s grant activities, r an additinal $3.15 frm nn-state surces fr every $1.00 in state funding. 1 This amunt f leveraged funds is up frm last year s cumulative ttal f $152.8 millin and leverage per dllar figure f $3.06. State 21 st Century funds have invested in grants generating 1,334 jbs, 849 publicatins, 117 patents applied fr r issued, 10 technlgy licenses, and 15 cmpanies created. In September 2010, the Gvernr s Office f Ecnmic Recvery (GOER) awarded SFAz $10 millin in funding frm the American Recvery & Reinvestment Act (ARRA) fr specific prgrams, f which $6.5 millin was fr research prjects including $300,000 t incubate the Aerspace and Defense Initiative. While still in the early stage f wrk, the GOER investment has already prduced 121 jbs, leveraged $2.6 millin in additinal research funding, and generated 2 scientific publicatins. The additinal $199.5 millin in industry match and nn-state research funding represents new wealth brught int Arizna by SFAz s research activities, and has ecnmic multiplier impacts n Arizna s ecnmy. These brader ecnmic impacts ccur because f the successive cycles f spending, earning, SFAz Prgrams Cntinue t Expand Direct Cumulative Impacts: SFAz cntinues t make strng prgress and generate significant impacts. Over the past year, SFAz grant prgrams have shwn significant gains acrss a range f key utcmes. Over the year, SFAz grant prgrams have: Increased ttal funds leveraged by industry match r ther surces by $46.7M; in turn increased its leverage per dllar awarded by $.09 t $3.15 frm nn-state surces fr every $1 in state funding. Increased direct jbs assciated with the grants by 373 t 1,524. Increased patents filed r issued by 36 t 120. Increased technlgy licenses by 1 t 12. Increased scientific publicatins by 408 t 1,168. Increased Graduate Research Fellws by 40 t 263. Increased student invlvement in STEM educatin prgrams (bth direct and indirect) with nearly 81,000 impacted this year and 4-year ttals exceeding 240,000. Increased teacher invlvement in STEM educatin prgrams (bth direct and indirect) by nearly 2,600 t a 4-year ttal f 5, The leverage calculatin is based nly n thse university and nnprfit research funding initiatives that invlve an industry match r raising additinal funds. These include CAA, SBC, and SRG awards and exclude GRF and STEM Educatin grants. 1

4 and re-spending that add t the ecnmic base f Arizna frm the new wealth brught t Arizna frm SFAz s leveraged funds. Battelle s analysis in applying an ecnmic input-utput mdel t measure these ecnmic impacts finds an additinal $232.5 millin is generated due t the multiplier effects. SFAz grants and their leveraged funds are supprting a significant number f jbs, with 1,524 current jbs reprted by grantees this year. In additin t these direct jbs, the grant prgrams and their additinal leveraged funding generate multiplier effects thrughut the ecnmy and represent an additinal 1,973 jb years ver the fur-year perid. 2 When measuring cumulative emplyment impacts, the value shuld be interpreted as jb years. Jb years cnvey a different type f jb impact than the number f jbs because they are a measure f jb stability. Fr example, an individual may have been hired in year ne f a grant and have the same jb in year tw. While everyne wuld cnsider this ne jb, frm an impact perspective it cnstitutes tw jb years. Direct jbs assciated with the grants have steadily increased t 1,524. Year1: 396 Jbs Year 2: 757 Jbs Year 3: 1,151 Jbs Year 4: 1,524 Jbs These same direct jbs can be expressed as jb years in a cumulative sense with grants adding new jbs each year n tp f the existing base. These building impacts and jb years are represented in the bar chart belw. The fur-year cumulative jb impacts sum t 3,828 direct jb years frm 2007 thrugh ,800 1,600 1,524 Jbs 1,400 1,200 1,151 Jbs 373 Jbs Beginning Yr 4 1, Jbs Beginning Yr Jbs Jbs Jbs Beginning Yr Jbs Beginning Yr 1 0 Year 1 Year 2 Year 3 Year 4 The 1,973 indirect and induced jb year impacts are n tp f the 3,828 direct jb years resulting frm SFAz s verall grant activities identified frm Battelle s survey f SFAz grant prgrams s, in ttal, an estimated 5,801 jb years result frm just the research activities assciated with SFAz s grant funding ver the 2007 t 2010 perid. 2 Fr mre detailed infrmatin n the apprach t ecnmic impact mdeling fr SFAz see the Ecnmic Impact Mdeling sectin that fllws in this reprt. 2

5 Over the lnger term, SFAz s prgrams that spur public-private research and develpment partnerships and technlgy cmmercializatin thrughut the State f Arizna will have even greater ecnmic impacts thrugh the private sectr jbs created based upn new prducts develped and new start-up cmpanies launched in Arizna. SFAz grants are fueling innvatin and discvery in Arizna. The key measures t track whether SFAz s grant activities are well psitined t fuel future ecnmic impacts fr Arizna include publicatins f research results in peer-reviewed jurnals, patenting f intellectual prperty, licensing f intellectual prperty t industry and the frmatin f new technlgy businesses. In each f these measures, SFAz is demnstrating a grwing innvatin pipeline in nly fur years. As f June 2011, the cumulative impact f SFAz s grant activities has generated 1,168 publicatins, 120 patents filed and/r issued, 12 technlgy licenses in place, and 16 technlgy cmpany frmatins in Arizna. Mst metrics have seen significant increases, even frm last year, when SFAz s cumulative grant activities were at 760 publicatins, 84 patents filed and issued, 11 technlgy licenses in place, and 16 technlgy cmpanies frmed in Arizna. It is nt just the cumulative ttals in measures f innvatin that make SFAz stand ut, but its greater prductivity in translating research funding int innvatin. SFAz s research and develpment grants with its fcus n advancing university-industry partnerships and cmmercializatin perfrm well relative t the technlgy develpment activities typically fund acrss the university research enterprise in Arizna with tw f three key technlgy transfer metrics utperfrming the university-wide averages. SFAz-supprted prjects generate: One patent applied fr r issued fr every $2.1 millin in ttal university research funding generated ver the past fur years, well ahead f the fur-year Arizna university-wide average f ne patent per $3.9 millin in funding. One license fr every $20.6 millin in ttal university research funding generated ver the past fur years, behind the fur-year Arizna university-wide average f ne license per $12.4 millin. Licensed technlgies are prducts r prcesses sld fr cmmercial use. One new cmpany start-up fr every $15.4 millin in ttal university research funding generated ver the past fur years, well ahead f the fur-year Arizna university-wide average f ne start-up per $92.7 millin. SFAz STEM educatin initiatives are grwing the next generatin f talent in Arizna. Over their early fur-year existence, STEM educatin activities have impacted mre than 240,000 students and 5,489 teachers at the K-12 and cmmunity cllege level either thrugh direct r indirect participatin. A survey f prgram quality ratings frm bth teachers and students cnducted this year were very psitive, with average ratings f 2.8 fr teachers and 2.8 fr students ut f a scale f 1 t 3, with 3 being the highest r utstanding rating. Several STEM initiatives require lcal matching funds and have received $5.5 millin in additinal match since their inceptin. SFAz als is advancing the grwth in tp talent acrss STEM fields with supprt fr 263 graduate fellwships fr PhD students in STEM fields, fr which research universities in Arizna have cntributed anther $15.5 millin in university funds and tuitin schlarships. SFAz s R&D grant activities have statewide impacts. SFAz wrks with research universities and nn-prfit research and develpment rganizatins acrss the state and the impacts f SFAz s grant activities in terms f leveraged funds raised, direct jbs created, and innvatin measures ccurs acrss Central, Nrthern and Suthern Arizna. In direct jbs resulting frm SFAz funded research grants, 661 were lcated in Central Arizna, 84 in Nrthern Arizna and 779 in Suthern Arizna. 3

6 The leveraged funding frm industry match and nn-state research funding surces als were widely distributed with $64.4 millin in Central Arizna, $6.0 millin in Nrthern Arizna and $89.3 millin in Suthern Arizna. This is equivalent t additinal indirect and induced jb-year impacts frm the ecnmic multipliers assciated with the leveraged funding raised f 856 jb years fr Central Arizna, 109 fr Nrthern Arizna and 1,008 fr Suthern Arizna. Current Direct Emplyment by Primary Regin Served Suthern Arizna, 779 Jbs 51% Nrthern Arizna, 84 Jbs 6% Central Arizna, 661 Jbs 43% Innvatin measures, particularly frm patents, licenses and new cmpany frmatins resulting frm SFAz grants are cncentrated mre in and arund Central and Suthern Arizna, reflecting their rle in the majrity f grants, althugh in research publicatins all three regins reprt significant ttals. Summary Highlights by SFAz Grant Prgrams University and Nnprfit Research Funding Initiatives Backgrund: SFAz supprts three majr research funding initiatives, including: Strategic Research Grup (SRG) grants, which seed strategic cllabratins between Arizna s nnprfit research-perfrming institutins and industry partners in rder t create ecnmic advantages fr the state. 3 There have been SRG grants, grants, grants, and grants fr a 4-year ttal f 29 SRG grants. Small Business Catalytic (SBC) grants, which invest in technlgies being develped at Arizna s research-perfrming institutins t allw a researcher t begin t mve a cncept tward cmpany creatin up t the pint where federal research grants r venture capital funding can supprt the prject. There have been 14 ttal SBC grants, with 8 in 2007 and 6 in Cmpetitive Advantage Awards (CAA), which funds prjects that ffer sund ptential t secure significant federal grants with strategic fcus in three primary areas sustainable systems, infrmatin cmmunicatin technlgies, and the bisciences. There have been 57 ttal CAA grants awarded with 26 in 2007 and 31 in Key metrics fr the university and nnprfit research funding initiatives span the cntinuum frm discveries t cmmercializatin, and include scientific publicatins, patents filed and issued, technlgy licenses, cmpanies created, jbs created frm the research activity, dllars leveraged frm ther surces, industry match and talent develpment. 3 As a 501(c)(3) nnprfit, Science Fundatin Arizna may nly prvide funding t public universities and ther nnprfit rganizatins fr scientific, medical and engineering research and educatin. 4 With the reductin in funding in 2009 and 2010, n grants were awarded under the SBC and CAA prgrams. 4

7 Key Findings: SFAz cumulative grant funding fr university and nnprfit research funding initiatives has ttaled $63.4 millin frm 2007 thrugh 2010 with an additinal $6.2 millin funded by GOER/ARRA. Grant recipients have used this t leverage an additinal $199.5 millin in ttal matching funds $42.4 millin in industry match frm the SRG prgram and $157.1 millin in ther surces beynd the riginal funding. In additin, the GOER/ARRA funded 2010 SRG grants have raised $6.2 millin in industry match and $2.6 millin frm ther surces. Additinal dllars cme thrugh a variety f surces including federal, fundatin, venture capital, r additinal university r industry funding beynd the riginal match. Fr every $1 funded by SFAz in university and nnprfit research funding initiatives, $3.15 has been leveraged frm ther surces. The SRG ($86.9 millin frm nn-arra funded grants) and CAA ($46.8 millin) prgrams have brught in the vast majrity f the $157.1 millin in cumulative funds leveraged frm ther surces, accunting fr 55% and 30% f funds, respectively. This is due t the structure f each prgram as the SRG has a match requirement and the CAA was designed as bridge grants with the expectatin f leveraging funds. Amng the SFAz grants fcused n university research, the cumulative, 4-year ttal number f scientific publicatins has reached 888. Abut half (466 publicatins) f these publicatins were related t research cnducted under the CAA prgram which is nt surprising given its strng fcus n fundamental research. 5 SFAz grant recipients have generated strng patent activity, with 95 patents filed in just a 4- year perid. Given the yung nature f these grant prgrams, just 22 patents have been issued thus far, althugh in just the last year the number f patents issued has increased frm just 8 t 22. Participants in each f the three majr prgrams have had substantial numbers f patent applicatins with the SBC leading the way in bth applicatins and patents issued reflecting the prgrams fcus n technlgy cmmercializatin frm Arizna s researchperfrming institutins. A ttal f 12 technlgy licenses have been issued acrss SRG-SBC-CAA prgrams. The SBC prgram has been respnsible fr 7 f these 12 technlgy licenses t date. Since these prgrams began, a ttal f 16 cmpanies have been created, primarily ut f the SRG and SBC grant prgrams. SRG grants have led t the frmatin f 8 cmpanies. The SBC, which has generated 5 cmpanies t date, is specifically designed t act as a catalyst fr cmpany develpment with seed funds targeted at research with high-impact cmmercial ptential. The remaining 3 cmpanies were frmed under the CAA prgram. University and nnprfit research funding initiatives and partnerships supprted by SFAz have cmbined t create 1,490 jbs including jbs related directly t SFAz funding t nnprfit research perfrming institutins and additinal jbs funded by industry. A further benefit f the SFAz grants is develping yung research talent within Arizna s universities. The SRG, SBC, and CAA prgrams cmbine t emply 623 student researchers including undergraduates, graduate students, and pst-dctral researchers. Graduate students make up 45% f these student jbs. 5 The data presented here fr University and Nnprfit Research Initiatives will nt match ttals presented in the previus sectin as thse ttals include metrics/utcmes assciated with grants funded under the Stardust Directr s Fund (SDF) and even the GRF that had impacts included in thse ttals including: publicatins (SDF had 4; GRF had 276); patent applicatins (SDF had 3); and ttal jbs (SDF had 34). 5

8 Graduate Research Fellwships Backgrund: Graduate Research Fellwships (GRF) are designed by SFAz t recruit the best and brightest graduate-level students in science, math and engineering frm Arizna and beynd. The Fellwships were designed t create a culture f research, excellence, and innvatin and plant the seed that Arizna is cmpetitive with the natin s best universities. This effrt can transfrm Arizna s cmpetent graduate prgrams int wrld-cmpetitive prgrams while develping a wrk frce pipeline t meet the needs f Arizna s technlgy-related emplyers. Annual metrics reprts fr the GRF prgram will fcus n key utcmes related t pst-dctral research and placement f PhD fellws in industry and academic psitins nce they graduate. Given the GRF prgram is relatively new (nly in place fr fur years), the three participating universities reprt that just ne f the Fellws has received their Dctrate degree. Therefre, utcmes and metrics reprted here are limited t ttal Fellws and their cumulative utput f scientific publicatins. Hwever, it is imprtant t recgnize the pathway t a PhD fr mst includes receipt f a Master s degree at an intermediate stage. Rughly half f the current Fellws have received a Master s degree, including a number f MS degrees in engineering. Ntably, the GRF prgram benefits K-12 educatin in Arizna as Fellws participate in STEM activities in elementary, middle and high schls thrughut the state. Key Findings: Since its inceptin in 2007, SFAz has funded 263 Graduate Research Fellwships in science, technlgy, engineering and math (STEM) fields at Arizna s three majr universities the University f Arizna (124 fellws), Arizna State University (116 fellws), and Nrthern Arizna University (23 fellws). The 263 graduate students supprted thrugh the GRF prgram have generated a cumulative ttal f 276 scientific research publicatins as either an authr r c-authr. Althugh the GRF prgram des nt require r leverage industry dllars, it has cnsistently leveraged significant tuitin credits and waivers thrugh agreements with the three participating State universities. Battelle has estimated that fr the $18.2 millin awarded by SFAz t Fellws frm 2007 thrugh 2010, $15.5 millin in university funds have been leveraged. This represents $0.85 in additinal funds leveraged fr each $1.00 awarded by SFAz. STEM Educatin Prgrams Backgrund: SFAz supprts prgrams that imprve math and science instructin and learning. Last year, the prgrams were expanded t include cmmunity cllege students and teachers. These grants include engaging mtivated math and science teachers in paid labratry research internships t update their knwledge and bring it back t the classrm. Als, these grants seek t braden the participatin f K-12/cmmunity cllege students particularly thse frm rural and underserved cmmunities in scientific discvery activities with researchers and engineers. T augment these prgrams, SFAz launched the STEM Initiative (Science, Technlgy, Engineering, and Math) in 2008 with private funds t build the high-skilled fundatin fr Arizna s 21 st Century knwledge-based ecnmy. Currently, there are 21 active grants fcused n STEM educatin prgrams. 6

9 Key Findings: Fr the current schl year ending June 2011, acrss all SFAz STEM educatin prgrams there were 80,903 student and 2,589 teacher participants invlved either directly r indirectly. This brings the cumulative number f students invlved during the fur-year perid t 240,591 and the cumulative number f teachers invlved t 5,489. Fr the current year, the types f students served has strngly emphasized diversity, with 79.6% cnsidered lw incme, 27.1% cming frm rural areas, and 5.0% Native American. Prgram quality ratings by teachers in the Teacher Discvery Prgram were very psitive with an average quality rating f 2.9 ut f 3, and 87% judging the prgrams t be utstanding. Just 2% f teachers indicated that the prgrams need imprvement, ut f the 185 teachers respnding t the SFAz survey administered by grantees. Similarly, students participating in the Student Discvery Prgram als rated the prgrams highly, with an average quality rating f 2.8 ut f 3, and 84% finding the prgrams utstanding. Just 2% f students indicated that the prgrams need imprvement, ut f 4,551 students respnding t the survey. Students taking SFAz-spnsred Discvery prgrams verwhelmingly expressed an interest in pursuing mre advanced science and math curses, with 91% indicating mre interest in taking advanced math and science since participating in the SFAz prgram ut f 4,157 respnding t that questin in the survey. In additin t the mre established SFAz Discvery prgrams, relatively new Mathematics and Science Achievement (MSAG) Student and Teacher prgrams are finishing their secnd academic year. Early utcmes frm these new prgrams are already demnstrating an impact with the Student prgrams reaching 2,468 students this schl year with a generally psitive verall rating by students (2.7 ut f 3). Expanding this year, with funding frm GOER and ARRA, Engineering Pathways, a rural student-fcused prgram designed t create student interest and enthusiasm fr STEM careers, better prepare students in math and science, and ffer early cllege, industry-driven learning experiences that result in certificatins and tw- and fur-year degrees in STEM fields. Students Participating in SFAz STEM Prgrams, Academic Year by Prgram Type Students Participating in SFAz STEM Prgrams, Academic Year by Primary Regin Served MSAG Student Prgram 3.1% MSAG Teacher Prgram 0.7% Nrthern Arizna 3% K 12 Teacher Discvery 32.3% K 12 Student Discvery 64.0% Suthern Arizna 34% Central Arizna 63% 7

10 Metrics University Research Funding Initiatives Methdlgy The Battelle Technlgy Partnership Practice was retained t cllect key metrics assciated with, and utcmes related t Science Fundatin Arizna's (SFAz) grant prgrams including Cmpetitive Advantage Awards (CAA), Strategic Research Grups (SRG), Small Business Catalytic (SBC), and Strategic Initiatives (SI). SFAz grants require recipients t maintain cmprehensive recrds related t quantitative utcmes f each research grant, this infrmatin was cllected directly frm the Principal Investigatr (PI) fr each grant via an nline survey cllectin. Key metrics and their definitin in this cntext include: Scientific Publicatins, published r c-published by grantees since the start f the grant related t its research (included are peer-reviewed papers fr jurnals and juried abstracts fr cnferences that have been accepted r published). If a publicatin was c-authred by mre than ne grantee it was cunted nly nce. Patents. PIs were required t recrd bth the ttal number f patents applied fr, including thse prvisinally granted in additin t the ttal number f patents issued. Patents were reprted based n current status nly, i.e. ne recrd per patent. Technlgy Licenses. PIs were required t recrd the number f technlgy licenses issued since the grant began. In this cntext, a Technlgy License includes any technlgy transferred fr which the PI is receiving sme type f cmpensatin, whether ryalty, equity, netime payment r ther arrangement. Cmpanies Created. Certain SFAz prgrams are fcused n the creatin f new cmpanies, especially the fcus f the SBC prgram. In this cntext, PIs were asked t include nly thse active cmpanies that are peratinal with at least ne paid emplyee. Jbs. PIs were required t recrd the number f jbs created that were specifically assciated with their SFAz grant. Individuals hired r wrking, regardless f the level f effrt r cnsideratins f hurs, were cunted as ne jb. Funds Leveraged. Abve and beynd the industry match required fr SRG grants, PIs were required t recrd the cumulative value f all dllars leveraged frm all surces that fund research specific t this grant beynd the riginal amunts invested by SFAz r thrugh industry matching funds. These funds nly include dllars actually awarded (nt pending) and were reprted by funding surce. Industry Match. This crrespnds t the industry match in 21 st Century grants verified by the Arizna Cmmerce Authrity at the utset. Talent Develpment. This crrespnds t the ttal number f undergraduates, graduate students and pst-dcs emplyed in SFAz funded grants. In ttal, 106 individual grants were included in the metrics cllectin fr the CAA, SRG, SBC, SI, and SDF prgrams, amng these nearly all PIs participated and prvided grant-related data (95%). 8

11 University Research Funding Initiatives: CAA, SBC, SRG, and SI Prgrams Prgram Area Scientific Publicatins All Yr. 1 Yr. 2 Yr. 3 Yr Yr. 1 Yr. 2 Yr Yr. 1 Yr Yr CAA SBC SRG SDF/SI , All Prgrams Prgram Area Patent Applicatins Filed All Yr. 1 Yr. 2 Yr. 3 Yr Yr. 1 Yr. 2 Yr Yr. 1 Yr Yr CAA SBC SRG SDF/SI , All Prgrams

12 University Research Funding Initiatives: CAA, SBC, SRG, and SI Prgrams (cntinued) Prgram Area Patents Issued All Yr. 1 Yr. 2 Yr. 3 Yr Yr. 1 Yr. 2 Yr Yr. 1 Yr Yr CAA SBC SRG SDF/SI, All Prgrams Prgram Area Technlgies Licensed All Yr. 1 Yr. 2 Yr. 3 Yr Yr. 1 Yr. 2 Yr Yr. 1 Yr Yr CAA SBC SRG SDF/SI, All Prgrams

13 University Research Funding Initiatives: CAA, SBC, SRG, and SI Prgrams (cntinued) Prgram Area Yrs. 1 & 2 Yr. 3 Yr. 4 Cmpanies Created All Yr. 1 Yr. 2 Yr Yr. 1 Yr Yr CAA SBC SRG SDF/SI, All Prgrams Prgram Area Jbs Created All CAA SBC SRG SDF/SI , All Prgrams ,524 11

14 University Research Funding Initiatives: CAA, SBC, SRG, and SI Prgrams (cntinued) Prgram Area Yr. 1 Yr. 2 Yr. 3 Yr. 4 Dllars Leveraged frm Other Surces Yr. 1 Yr. 2 Yr Yr. 1 Yr All Yr CAA $13.9M $0.9M $7.7M $2.1M $24.6M $10.9M $9.1M $2.2M $22.2M $46.8M SBC $5.8M $2.7M $3.9M $4.5M $16.9M $1.0M $0.7M $3.2M $4.9M $21.8M SRG $11.3M $7.7M $16.9M $18.9M $54.8M $4.1M $6.2M $9.5M $19.8M $6.4M $5.9M $12.3M $2.6M $89.5M SDF/SI $1.0M $0.2M $1.2M $0.4M $1.6M, All Prgrams $32.0M $11.5M $28.5M $25.5M $97.5M $16.0M $16.0M $14.9M $46.9M $6.4M $5.9M $12.3M $3.0M $159.7M Prgram Area Industry Match * All, SRG $22.5M $15.3M $4.6M $6.2M $48.6M 12

15 University Research Funding Initiatives: CAA, SBC, SRG, and SI Prgrams (cntinued) Prgram Area Talent Develpment: Emplyment f Pst-Secndary Students & Pst-Dctral Researchers Yr. 1 Yr. 2 Yr. 3 Yr All Yr. 1 Yr. 2 Yr Yr. 1 Yr Yr CAA N/A N/A SBC N/A N/A SRG N/A N/A SDF/SI N/A N/A , All Prgrams N/A N/A N/A = data nt available fr individual year. 13

16 Graduate Research Fellwships Methdlgy Battelle develped a survey sent t a representative frm each f the three universities with Graduate Research Fellws (University f Arizna, Arizna State University, and Nrthern Arizna University) t capture the required annual metrics data. In its early stages, the universities reprt that just ne f the GRF s has received their dctrate degree and therefre, at this time, the metrics include nly limited pst-dctral utcmes fr these students. The metrics include scientific publicatins defined as fllws. Scientific Publicatins, published r c-published by grantees since the start f the grant related t its research (included are peer-reviewed papers fr jurnals and juried abstracts fr cnferences that have been accepted r published). If a publicatin was c-authred by mre than ne grantee it was cunted nly nce. Graduate Research Fellwships Graduate Research Fellwships Fellws Scientific Publicatins Dctrates Awarded Pst-Dctral Studies/Psitins Fellwships Awarded At Tp 25% f Institutins/Labs Wrking in Arizna GRF Univ. f Arizna Arizna State Univ Nrthern Arizna Univ Nte: Publicatins data were nt cllected by funding year. 14

17 STEM Educatin Prgrams Methdlgy Battelle develped a survey t each f the STEM Educatin grantees t capture the required annual metrics data including: Numbers f teacher and student participants The diversity f students participating in the prgrams r enrlled in classes f the teachers participating in prfessinal develpment prgrams, tracking lw incme students, rural students and Native American students Prgram quality ratings by bth teacher and student participants Retentin f math and science teachers participating in the prgrams Interest f students in pursuing advanced curses in science and math in high schl T cllect many f these measures required the STEM Educatin grantees t administer surveys t participating teachers and students. While grantees made active effrts t get respnses frm participating teachers and students, similar t all surveys nt all student and teacher participants respnded. Of the 21 active grants (several f which are just getting started), surveys were at least partially cmpleted by all grantees. Teacher Discvery Teachers Enrlled Students Enrlled in Classes f Teachers Students f Teachers Enrlled Teacher Quality Rating (ut f 3 pint scale)* Percent Lw Incme Students Percent Rural Students Percent Native American Students Teacher Retentin* Current with 87% 26, % 24.8% 10.2% Outstanding 92% Cumulative, , , % 25.4% 7.1% % * 185 teachers respnded. 15

18 Student Discvery Teachers f Participating Students Percent Lw Incme Students Students Enrlled Student Quality Rating (ut f 3 pint scale)* Percent Rural Students Percent Native American Students Interest in Pursuing Advanced Science & Math** Current 2,060 51, % 27.0% 2.8% 2.81 with 84% Outstanding 91% Cumulative, , , % 32.3% 4.7% % *Out f 4,551 student respnses; **Out f 4,157 student respnses. Mathematics and Science Achievement (MSAG) Student Prgram Teachers f Participating Students Percent Lw Incme Students Students Enrlled Student Quality Rating (ut f 3 pint scale)* Percent Rural Students Percent Native American Students Interest in Pursuing Advanced Science & Math* Current 176 2, % 33.5% 11.0% % Cumulative, , % 22.2% 13.2% % *Out f 573 student respnses. 16

19 Mathematics and Science Achievement (MSAG) Teacher Prgram Teachers Participating Students f Teachers Enrlled Teacher Quality Rating (ut f 3 pint scale)* Percent Lw Incme Students Percent Rural Students Percent Native American Students Teacher Retentin* Current % 76.1% 35.8% % Cumulative, % 84.5% 35.8% % *Out f 20 teacher respnses. Cnslidated Tracking f Students and Teachers in all STEM Educatin Prgrams Teachers Enrlled and thse f Participating Students Students Enrlled and thse f Participating Teachers Percent Lw Incme Students Percent Rural Students Percent Native American Students Current Year 2,589 80, % 27.1% 5.0% Cumulative, , , % 29.6% 6.0% 17

20 Metrics Beynd Prgram Classificatin: Return n Investments by Funding Surce SFAz funds its prgrams thrugh several surces. This sectin takes an alternative apprach t examining the same prgram metrics and utcmes presented abve, thugh here thrugh the lens f funding surce as ppsed t simply by prgram area nly. Funding surces ften crss-cut individual prgrams, fr instance, the CAA grants are funded thrugh the 21 st Century Fund and thrugh Private Match/Bisgrve funds. Similarly, sme individual grants have been supprted thrugh multiple funding surces, particularly in recent years. Presenting utcmes by funding surce allws fr a direct perspective n returns n investment. Funding Surces: University Research Funding Initiatives University Research Funding Initiatives: Metrics by Grant Funding Surce, Prgrams & Funding Surces* Grant Funding s ( ) Scientific Publicatins Patent Applicatins Patents issued Technlgy Licenses Cmpanies Created Jbs Funds Leveraged frm Other Surces 21st Century Fund, $61,570, ,334 $153,093,005 CAA $7,591, $44,398,138 SBC $5,467, $21,792,012 SRG $48,511, $86,902,855 Gvernr s Office f Ecnmic Recvery/ARRA Fund (SRG ), $6,200, $2,608,428 Private-match, Bisgrve, $1,205, $2,388,217 CAA $935, $2,388,217 SDF $150, SI $120, Stardust Directr's Fund, $528, $1,224,000 Virginia G. Piper Charitable Trust (SI ), $62, $400,000, All University Research Funding Initiatives $69,566, ,524 $159,713,650 Nte: Matching funds frm industry help t supprt the 21 st Century Funds with respect t the utcmes f the SRG prgram. *Nte: are classified here by their riginal/primary funding surce thugh many have received funding frm multiple surces, fr example, while many grants were initially funded thrugh the 21st Century fund, private matching funds (Bisgrve and ACF/Harringtn) have allwed grantees t cntinue the wrk and funds frm the Federal ARRA legislatin directed thrugh the Arizna Gvernr s Office f Ecnmic Recvery have been used t supprt new grants. 18

21 Funding Surces: Graduate Research Fellwships Graduate Research Fellwships: Grant Funding Surce, Funding Surces Grant Funding s ( ) Graduate Research Fellws Supprted Scientific Publicatins 21 st Century Fund $12,815,044 N/A N/A Private Match, Bisgrve $3,800,000 N/A N/A Gvernr s Office fr Ecnmic Recvery/ARRA Fund $1,600,000 N/A N/A, All GRF $18,215, Funding Surces: STEM Educatin Initiatives STEM Educatin Initiatives: 2010 Metrics by Grant Funding Surce, Prgrams & Funding Surces Grant Funding s ( ) Teachers Enrlled and thse f Participating Students 2010 a. Students Enrlled & thse f Participating Teachers 2010 Percent Lw Incme Percent Rural Percent Native American Student Quality Rating (ut f 3 pint scale) Teacher Quality Rating (ut f 3 pint scale) K-12 Teacher & Student Discvery* $14,542,449 2,389 77, % 26.5% 4.5% st Century Fund $10,365,126 2,389 77, % 26.5% 4.5% Private Match, Bisgrve $4,077, AZ Cmmunity Fundatin $100, MSAG, STEM Bard f Educatin Fund $2,400, , % 41.0% 15.4% Engineering Pathways, GOER/ARRA Fund** $1,325, , All STEM Educatin Initiatives $18,267,774 2,589 80, % 27.1% 5.0% N/A N/A Nte: MSAG = Math and Science Achievement Grant; GOER = Gvernr s Office f Ecnmic Recvery. *Nte: All K-12 Teacher & Student Discvery metrics are allcated t the 21 st Century Fund as this is the riginal/primary funding surce assciated with these grants; hwever, several grants have received additinal significant multi-surce funding frm bth the Private Match (Bisgrve) funds and the ACF fund. **Nte: Engineering Pathways grants funded thrugh the GOER/ARRA have begun and students are enrlling fr the fall semester. 19

22 Reginal Impacts While SFAz grant activities are fcused bradly n targeted partnerships and technlgy cmmercializatin statewide, each tends t have a mre primary fcus and set f impacts in the regin in which the Principal Investigatr (PI) and/r institutin is lcated. By assigning ne f three majr Arizna regins Central, Nrthern, r Suthern t each grant based n lcatin, SFAz can relate impacts and benefits derived frm grants mre specifically t a lcal regin within Arizna. The tables belw highlight metrics and utcmes by type f prgram and regin and reveal the fllwing: based primarily in Suthern Arizna have had the mst success in generating ttal jbs (779 t date) and cmpanies (9), and raising additinal funds ($89.3 millin). The University f Arizna hsts the mst Graduate Research Fellws with 124 in Suthern Arizna. SFAz STEM educatin initiatives have a strng ftprint in Suthern Arizna with 371 teachers and mre than 27,000 students engaged either directly r indirectly in these prgrams during t Central Arizna institutins and PIs have generated a leading number f scientific publicatins (502 t date) and key intellectual prperty activities with 68 patent applicatins and 16 patents issued. Central Arizna has 116 Graduate Research Fellws attending Arizna State University. The regin has seen the greatest impacts in terms f teachers and students invlved either directly r indirectly in STEM educatin prgrams spnsred by SFAz during this year with 2,157 teachers and mre than 51,000 students. Despite the relatively smaller size f Nrthern Arizna University as an institutin and fewer grants than the ther regins, Nrthern Arizna has generated 61 scientific publicatins, 84 ttal jbs, and $6.0 millin in additinal funds leveraged. Twenty three Graduate Research Fellws are cnducting their research and graduate studies at Nrthern Arizna University. In STEM educatin prgrams, 61 teachers and 2,299 students in the regin participated either directly r indirectly in this mst recent academic year. 20

23 University and Nnprfit Research Funding Initiatives: Metrics by Prgram and Regin, SFAz Prgram Central Arizna Nrthern Arizna Scientific Publicatins Suthern Arizna Prgram Cmpetitive Advantage Awards (CAA) Small Business Catalytic (SBC) Strategic Research Grups (SRG) Stardust Directr's Fund (SDF) Strategic Initiatives (SI) Scientific Publicatins, Patent Applicatins Cmpetitive Advantage Awards (CAA) Small Business Catalytic (SBC) Strategic Research Grups (SRG) Stardust Directr's Fund (SDF) Strategic Initiatives (SI) Patent Applicatins, Patents Issued Cmpetitive Advantage Awards (CAA) Small Business Catalytic (SBC) Strategic Research Grups (SRG) Stardust Directr's Fund (SDF) Strategic Initiatives (SI) Patents Issued, Technlgy Licenses Cmpetitive Advantage Awards (CAA) Small Business Catalytic (SBC) Strategic Research Grups (SRG) Stardust Directr's Fund (SDF) Strategic Initiatives (SI) Technlgy Licenses,

24 University and Nnprfit Research Funding Initiatives: Metrics by Prgram and Regin, (cntinued) SFAz Prgram Central Arizna Cmpanies Created Nrthern Arizna Suthern Arizna Prgram Cmpetitive Advantage Awards (CAA) Small Business Catalytic (SBC) Strategic Research Grups (SRG) Stardust Directr's Fund (SDF) Strategic Initiatives (SI) Cmpanies Created, Jbs Cmpetitive Advantage Awards (CAA) Small Business Catalytic (SBC) Strategic Research Grups (SRG) Stardust Directr's Fund (SDF) Strategic Initiatives (SI) Jbs, ,524 Funds Raised/Leveraged frm Other Surces Cmpetitive Advantage Awards (CAA) $25,016,442 $5,970,808 $15,799,105 $46,786,355 Small Business Catalytic (SBC) $9,203,000 $0 $12,589,012 $21,792,012 Strategic Research Grups (SRG) $29,779,113 $0 $59,732,170 $89,511,283 Stardust Directr's Fund (SDF) $0 $0 $1,224,000 $1,224,000 Strategic Initiatives (SI) $400,000 $0 $0 $400,000 Funds Raised/Leveraged, $64,398,555 $5,970,808 $89,344,287 $159,713,650 Graduate Research Fellwships: Metrics by Regin, Metrics Central Arizna Nrthern Arizna Suthern Arizna Prgram Fellws Scientific Publicatins Graduates

25 STEM Educatin Initiatives: Metrics by Regin, 2010 SFAz Prgram Central Arizna Nrthern Arizna Suthern Arizna Teachers Enrlled and thse f Participating Students Prgram Teacher Discvery Student Discvery 1, ,060 MSAG-Student Prgram MSAG- Teacher Prgram Teachers 2, ,589 Students Enrlled and thse f Participating Teachers Teacher Discvery 2, ,287 26,135 Student Discvery 47, ,630 51,772 MSAG-Student Prgram 1, ,468 MSAG-Teacher Prgram Students 51,395 2,299 27,209 80,903 23

26 Ecnmic Impact Mdeling A substantial grant-funding rganizatin like SFAz can generate significant psitive ecnmic impacts thrugh its targeted investments that mst immediately leverage additinal funds that result in new wealth fr Arizna. Over the lnger term, SFAz s prgrams that spur public-private partnerships and technlgy cmmercializatin thrughut the State f Arizna will have even greater ecnmic impacts thrugh the private sectr jbs created. The estimated ecnmic impacts f the leveraged funding by Science Fundatin Arizna were calculated using the Arizna specific input-utput mdels frm IMPLAN, ne f the mst widely used ecnmic impact mdels in the natin. Input-utput analysis is based n the use f multipliers, which describe the respnse f an ecnmy t a change in demand r prductin. Multipliers measure the effects n an ecnmy frm a surce f ecnmic activity in this case, the leveraged research and develpment funds frm SFAz s grant activities. The ecnmic activity generated is greater than the direct value f the leveraged research and develpment funds because f the successive cycles f spending, earning, and re-spending. Fur measures f the ecnmic impact f the wealth-generating activities f SFAz leveraging additinal research and develpment are cnsidered: Direct Effects. The changes in ecnmic activity being analyzed in this case, the leveraged funding frm SFAz s grant activities. Indirect Effects. The changes in interindustry purchases, e.g., the purchase f services and gds frm Arizna cmpanies frm university research and develpment activities. Induced Effects. The changes in spending frm husehlds as incme and ppulatin increase because f changes in prductin. Effects. The cmbined ttal f direct, indirect, and induced effects. Given the strng and primary emphasis n university research and develpment by SFAz, impacts were mdeled using the Scientific Research and Develpment sectr in IMPLAN. The leveraged dllar figures represent the cumulative amunt ver a fur-year cycle f grants. The ecnmic impact f SFAz is measured using tw ecnmic variables, including: 1. Output. The ttal value f prductin (sales) in all industries as a result f expenditures by SFAz. This is the number cited in a typical ecnmic impact study. 2. Emplyment (expressed in jb years). The ttal number f jb years created in all industries (including bth full- and part-time wrkers) by the expenditures f SFAz and its nging activities and emplyment base. Fur-Year Ecnmic Impacts f SFAz Industry Matching Funds and Funds Leveraged frm Other Surces Ecnmic Variable Cumulative Direct Impact Cumulative Indirect & Induced Impacts Cumulative Impacts Output, Leveraged Funds $199.5M $232.5M $432.0M Emplyment (Jb Years) 3,828 1,973 5,801 24

27

28 Battelle is the wrld s largest independent research and develpment rganizatin, prviding innvative slutins t the wrld s mst pressing needs thrugh its fur glbal businesses: Labratry Management, Natinal Security, Energy, Envirnment and Material Sciences, and Health and Life Sciences. It advances scientific discvery and applicatin by cnducting $6.5 billin in glbal R&D annually thrugh cntract research, labratry management and technlgy cmmercializatin. Headquartered in Clumbus, Ohi, Battelle versees 22,000 emplyees in mre than 130 cities wrldwide, including seven natinal labratries that Battelle manages r c-manages fr the U.S. Department f Energy and the U.S. Department f Hmeland Security, and ne internatinal nuclear labratry in the United Kingdm. Battelle als is ne f the natin s leading charitable trusts fcusing n scietal and ecnmic impact and actively supprting and prmting science and math educatin.