Seed/Assistance Funding for Faculty Research with Commercial Partners

NSF-PFI/ITN 2010 RESEARCH FUNDING OPPORTUNITY Seed/Assistance Funding for Faculty Research with Commercial Partners Guidelines and Application Information Round 1 Submission Deadline: Friday February 26, 2010 Round 2 Submission Deadline: Friday, June 18, 2010 1

Purpose...3 Eligibility Requirements...4 Preferred Projects...4 Grant Parameters...5 Application Process and Instructions...5 Application Deadline...6 Approval Process...7 Appendix A Application Checklist... 8 Appendix B Seed/Assistance Fund Application Form 9-11 Appendix C Required NSF-Budget Form..12-13 Appendix D Product Development and Commercialization... 14 Appendix E Academic Review Score Sheet... 15 Appendix G Technical Report Template.16-17 Appendix H Sample Letter of Company Support and Match Commitment... 18 Appendix J Sample Company Feedback Report.19-20 2

Purpose DCED-funded Innovation Transfer Network (ITN): Through the PA Department of Community and Economic Development (DCED), sites in both Lancaster and Harrisburg have been selected as Keystone Innovation Zones (KIZs). The primary goals of KIZs are to encourage the creation of new business, expand the research and development sector of Pennsylvania s economy, and facilitate innovation and technology transfer to existing companies. As part of this broad initiative, DCED awarded funds to Lancaster s and Harrisburg s KIZs to support innovation and market commercialization efforts and to foster partnerships between higher education and the private sector. A portion of the funds were used to develop a regional technology transfer effort, known as the Innovation Transfer Network (www.innovationtransfernetwork.org) that helps the region s colleges and universities explore opportunities for technology commercialization and higher education/private business partnerships. National Science Foundation-Partnerships for Innovation Project (NSF-PFI): As an extension of the KIZ/ITN goals, Penn State Harrisburg was recently awarded NSF- PFI funding to enhance infrastructure capacity building and partnership development for most of the ITN colleges/universities. Key initiatives include: Identify pillars of research strength among participating colleges/universities Pinpoint perceived faculty barriers to forming industrial collaborations Implement strategies for creating successful partnerships Inventory human and physical resources Conduct innovation conferences and regional research symposia Provide seed funding for academic/industry partnerships with commercial potential NSF-PFI/ITN Seed Grant funding: This announcement is a call for proposals for seed grant funding from the PSH NSF-PFI project for academic/industry partnerships. As detailed in the announcement, the Principal Investigator of the seed grant must be a faculty or research staff member of one of the eligible academic institutions (see below). The maximum allowable NSF-PFI research funding for each project is $ 20,000 direct research costs (no minimum level). Overhead/indirect cost, if applicable, will be added to that amount, since the source of funding is NSF. For each project, a 1:1 match of direct research costs is also required from a corporate/industrial partner to support the research project. All projects must fit into NSF-eligible disciplines. 3

Eligibility Requirements Eligible Applicants Eligible applicants may be full time faculty or staff at one of the following PFI/ITN partner institutions: Cheyney University Lebanon Valley College Dickinson College Messiah College Elizabethtown College Millersville University Franklin & Marshall College Penn State Harrisburg Harrisburg Area Community College Penn State Milton S. Hershey College Harrisburg University of Medicine Lancaster General Hospital/College of Shippensburg University Nursing and Health Sciences The aim of the NSF-PFI Seed/Assistance Fund is to assist/encourage faculty in developing industry partnerships for their research agendas. Thus, applications from a faculty/industry partnership where the faculty member is a principal in the company will not be considered, since in that case the partnership is already well established. Eligible Activities The NSF-PFI Seed/Assistance Fund is intended to support innovation between institutions of higher education and private business. Specifically, these grant funds are intended to foster collaborative projects that: 1) foster collaboration between faculty and industry; 2) assist in the commercialization of a product, innovation or technology; 3) test the feasibility of a technology or product close to commercialization; or 4) assist a company in completing a milestone project to directly catalyze the company s growth. Eligible Use of Funds NSF-PFI Seed/Assistance Funds may be used for usual NSF-eligible costs such as salary/wages, materials and supplies, travel to research sites and other researchrelated costs. Funds may be used to purchase specialized equipment if the applicant can demonstrate the essential role the equipment plays in advancing critical research or processes for the project approved. NSF budgetary guidelines pertain; full justification is required. Preferred Projects Partnership with a private sector company/industrial partner is a requirement for NSF-PFI/ITN seed grants for Rounds 1 and 2; the 1:1 industry match is also a requirement for funding. Priority consideration will be given to company partnerships that: 4

Include a company located in the Harrisburg and Lancaster KIZ markets (Cumberland, Dauphin and Lancaster counties); Include the potential to lead to a spin-off new business, new product launch or licensing opportunity. Involve a partnership among two or more higher education institutions in the region. Are farther along in the process of commercialization. For more information about the stages of commercialization, please refer to Appendix D. Grant Parameters Maximum NSF-PFI/ITN seed/assistance grant funds awarded will be $ 20,000 direct costs per applicant. In most cases, only one NSF-PFI seed grant will be awarded to any individual investigator. The projects will typically be funded for one year. Announcements of funded projects are expected in early May, 2010 (Round 1) or Mid-August 2010 (Round 2). Expenditures on grant awards may begin as soon after the funding announcement that the recipient academic institution approves the expenditures, but not before receipt of the signed Intellectual Property Agreement. No-cost time extensions may be considered, but are not guaranteed, with proper justification. Application Process Application Instructions Application Checklist (Appendix A) Application Form (Appendix B) Include all relevant information Abstract A one paragraph summary of the research/project, the researchers and any partners and the main objective/outcome from the research/project. Abstract should be on its own page, separate from the narrative. Narrative A narrative of no more than five (5) pages that details the proposed research/project. The narrative should include project background, specific objectives to be accomplished with the funds and details on the scope of work of all partners. Specific emphasis should be put on the innovation/technology/ product being researched and its near-term potential for commercialization. For the required industry/business partner, also include background information on the company and on the relationship between the institution and the company. References Cited 5

Curriculum Vitae A brief curriculum vitae (2-3 pages) of the lead applicant and of any additional parties involved. Budget (Appendix C) o On separate budget forms (use the NSF-style form in Appendix C for each) for the academic institution and for the 1:1 match from the industrial partner, provide specific details on how the grant funds will be used. o Funds may be requested for usual NSF-eligible costs such as salary/wages, materials and supplies, travel to research sites and other research-related costs. Funds may be used to purchase specialized equipment if the applicant can demonstrate the essential role the equipment plays in advancing critical research or processes for the project approved. NSF budgetary guidelines pertain. o In addition to the budget for direct costs ($ 20,000 maximum from NSF- PFI and at least that level of industrial match), please add in the calculation for overhead/f&a at the applicant institution. o For both budgets, provide full justification for all budgetary items. Intellectual Property Arrangement Please include a copy of the policy/ arrangement at your institution for the ownership of intellectual property developed by faculty, staff, or students as related to this project or provide a copy of the specific agreements between the institution and the applicant and other parties affiliated with the institution who will be involved in the project. Similarly, for the required industry partner, please include a copy of the intellectual property agreement between the organizations. This agreement must be made prior to beginning the project work in order to receive funds. Letter of Industrial Support, including match commitment For the private sector/industrial partner, please include a letter of support from the company specifying how the company will be involved and detailing their match commitment. A sample letter can be found in the Appendix G. Application Deadline All materials must be e-mailed by 5:00 PM on the date of the submission deadline. Round 1 Deadline: Friday, February 26, 2010 Round 2 Deadline: Friday, June 18, 2010 Please submit by e-mail to both addresses: msd14@psu.edu and cqm5@psu.edu Incomplete proposals will be returned unreviewed. 6

Please contact Marian Walters mrw16@psu.edu 717-948-6302 or Jill Edwards at jilledwards@psu.edu 717-948-6625 with any questions regarding the application with the subject: Seed/Assistance Grant Application. Approval Process Applicants will receive e-mail notification acknowledging receipt of the completed application. Review Process: Applications will be reviewed by 3 members of the NSF-PFI Leadership Team or their designates. The final funding decision will be decided by members of the Leadership team, based on the scores from the review and available resources for funding. Successful applicants for Round 1 will be notified on or about May 1, 2010. Round 2 notifications will be done in mid-august. The awards will be formally set up as subcontracts to the NSF-PFI at Penn State Harrisburg. Since the NSF-PFI award is funded from ARRA funds, quarterly financial reports are required. In addition, an interim technical progress report is required August 20, 2010 (Round 1 projects), as well as a final research report at the end of the seed grant funding period. The technical reporting template can be found in Appendix F. At the end of the project, the corporate/industrial partner will be asked to provide feedback on the success of the project, using the template in Appendix H. 7

Appendix A Application Checklist For application instructions, please review guidelines. (Fill in Blank Page numbers for the application) Grant Page Number Application Checklist..1 Application Form (see Appendix B).2-4 Abstract..5 Narrative.6- References Cited Curriculum Vitae for each participant.. Budget NSF-PFI budget with justification Budget for Industrial match with Justification... Intellectual Property Arrangements. Letter of Support from Company partner, for collaboration and match commitment Letters of support from additional partners if applicable 8

Appendix B 2010 NSF-PFI/ITN Seed/Assistance Fund Application Form Applicant Name: Faculty/Staff/ (circle one) Title: Higher Education Institution: Address: Phone: Fax: E-mail: Project Title: NSF-PFI Direct Costs (Maximum $20,000): $ Required 1:1 Industry Match (Direct Costs) $ The project must involve an industrial/ private sector partner Is the company a Harrisburg or Lancaster KIZ designated company? Yes No Business Name: Contact Name/Position: Email: Address: Age of Company/Year Founded: Type of Business: Does the project involve other faculty/staff/students at your institution? Yes No Name/Position/Institution: Name/Position/Institution: Name/Position/Institution: 9

Does the project involve a partner institution of higher education? Yes No Name/Position/Institution: Name/Position/Institution: Name/Position/Institution: Which industry does the project relate to: Advanced Materials Agriculture/Food Services Biotechnology/Life Sciences Energy Information Technology Nanotechnology Telecommunications Other Which stage along the process of commercialization is the research/project? (Please see Appendix D for details of the Process of Commercialization) Applied Research Proof of Concept Study Preliminary Market Assessment Prototype Development and Testing Preliminary Technical Assessment Production Feasibility Analysis What needs to be done in order to commercialize the product? How will the next step be completed? If this project is awarded NSF-PFI/ITN funds, when is commercialization expected to occur? 0 6 months 1-2 years 6 12 months 3+ years 10

If this application is approved, who is the contact person responsible for establishing grants and contracts at your institution? Contact Name Department: Phone: Email: See Application Instructions and Application Checklist For Other Required Application Information. Submitted by: Applicant: Signature: Name: Title: Date: Authorized University Representative: Signature: Name: Title: Date: Authorized Company Representative: Signature: Name: Title: Date: 11

Appendix C PROPOSAL BUDGET: University Request or Industry Partner Match Dates FOR Agency USE ONLY ORGANIZATION PROPOSAL NO. DURATION (MONTHS) PRINCIPAL INVESTIGATOR/PROJECT DIRECTOR AWARD NO. Proposed Granted A. SENIOR PERSONNEL: PI/PD, Co-PIs, Faculty and Other Senior Associates NSF-Funded Funds Funds List each separately with name and title. (A.7. Show number in brackets) Person-months Requested By Granted by NSF CAL ACAD SUMR Proposer (If Different) 1. $ $ 2. 3. 4. 5. 6. ( ) OTHERS (LIST INDIVIDUALLY ON BUDGET EXPLANATION PAGE) 7. ( ) TOTAL SENIOR PERSONNEL (1-6) B. OTHER PERSONNEL (SHOW NUMBERS IN BRACKETS) 1. ( ) POSTDOCTORAL ASSOCIATES 2. ( ) OTHER PROFESSIONALS (TECHNICIAN, PROGRAMMER, ETC.) 3. ( ) GRADUATE STUDENTS 4. ( ) UNDERGRADUATE STUDENTS 5. ( ) SECRETARIAL - CLERICAL (IF CHARGED DIRECTLY) 6. ( ) OTHER TOTAL SALARIES AND WAGES (A + B) C. FRINGE BENEFITS (IF CHARGED AS DIRECT COSTS) TOTAL SALARIES, WAGES AND FRINGE BENEFITS (A + B + C) D. EQUIPMENT (LIST ITEM AND DOLLAR AMOUNT FOR EACH ITEM EXCEEDING $5,000.) TOTAL EQUIPMENT E. TRAVEL 1. DOMESTIC (INCL. CANADA, MEXICO AND U.S. POSSESSIONS) 2. FOREIGN F. PARTICIPANT SUPPORT 1. STIPENDS $ 2. TRAVEL 3. SUBSISTENCE 4. OTHER TOTAL NUMBER OF PARTICIPANTS ( ) TOTAL PARTICIPANT COSTS G. OTHER DIRECT COSTS 1. MATERIALS AND SUPPLIES 2. PUBLICATION/DOCUMENTATION/DISSEMINATION 3. CONSULTANT SERVICES 4. COMPUTER SERVICES 5. SUBAWARDS 6. OTHER TOTAL OTHER DIRECT COSTS H. TOTAL DIRECT COSTS (A THROUGH G) I. INDIRECT COSTS (F&A) (SPECIFY RATE AND BASE) TOTAL INDIRECT COSTS (F&A) J. TOTAL DIRECT AND INDIRECT COSTS (H + I) K. RESIDUAL FUNDS (IF FOR FURTHER SUPPORT OF CURRENT PROJECT SEE GPG II.D.7.j.) L. AMOUNT OF THIS REQUEST (J) OR (J MINUS K) $ $ M. COST SHARING: PROPOSED LEVEL $ AGREED LEVEL IF DIFFERENT: $ PI/PD TYPED NAME AND SIGNATURE* DATE FOR NSF USE ONLY INDIRECT COST RATE VERIFICATION ORG. REP. TYPED NAME & SIGNATURE* DATE Date Checked Date of Rate Sheet Initials-ORG 12

INSTRUCTIONS FOR USE OF SUMMARY PROPOSAL BUDGET (NSF FORM 1030) 1. General a. Each grant proposal, including requests for supplemental funding, must contain a Budget in this format unless a pertinent program announcement/solicitation specifically provides otherwise. A Budget need not be submitted for incremental funding unless the original grant letter did not indicate specific incremental funding or if adjustments to the planned increment exceeding the greater of 10% or $10,000 are being requested. b. Copies of NSF Form 1030 and instructions may be reproduced locally. c. A separate form should be completed for each year of support requested. An additional form showing the cumulative budget for the full term requested should be completed for proposals requesting more than one year's support. Identify each year's request (e.g., "First year," or "Cumulative Budget," etc.) in the margin at the top right of the form. d. Completion of this summary does not eliminate the need to document and justify the amounts requested in each category. Such documentation should be provided on additional page(s) immediately following the budget in the proposal and should be identified by line item. The documentation page(s) should be titled "Budget Justification." e. If a revised budget is required by NSF, it must be signed and dated by the Authorized Organizational Representative and Principal Investigator and submitted in at least the original and two copies. 2. Budget Line Items A full discussion of the budget and the allowability of selected items of cost is contained in the Grant Proposal Guide (GPG), NSF Grant Policy Manual (GPM) (NSF 95-26, periodically revised), and other NSF program announcements/solicitations. The following is a brief outline of budget documentation requirements by line item. (NOTE: All documentation or justification required on the line items below should be provided on the Budget Justification page(s).) A., B., and C. Salaries, Wages and Fringe Benefits (GPM 611). See definitions in GPG Appendix C. List individually, all senior personnel who were grouped under Part A, the requested person-months to be funded, and rates of pay. D. Equipment (GPM 612). Items exceeding $5,000 and 1 year's useful life are defined as permanent equipment (unless lower thresholds are established by the organization). List item and dollar amount for each item. Justify. E. Travel (GPM 614 and GPM 760). Address the type and extent of travel and its relation to the project. Itemize by destination and cost and justify travel outside the United States and its possessions, Puerto Rico, Canada and Mexico. Include dates of foreign visits or meetings. Air fares are limited to round trip, jet-economy rates. F. Participant Support (GPM 618). Normally, participant support costs only may be requested for grants supporting conferences, workshops, symposia or training activities. Show number of participants in brackets. Consult GPG or specific program announcement/solicitation for additional information. G. Other Direct Costs. 1. Materials and Supplies (GPM 613). Indicate types required and estimate costs. 2. Publication, Documentation and Dissemination (GPM 617). Estimate costs of documenting, preparing, publishing, disseminating, and sharing research findings. 3. Consultant Services (GPM 616). Indicate name, daily compensation (limited to individual's normal rate or daily rate paid for Level IV of the Executive Schedule, whichever is less), and estimated days of service, and justify. Include travel costs, if any. 4. Computer Services (GPM 615). Include justification based on estimated computer service rates at the proposing institution. Purchase of equipment should be included under D. 5. Subawards (GPM 313). Also include a complete signed budget NSF Form 1030 for each subaward and justify details. 6. Other. Itemize and justify. Include computer equipment leasing and tuition remission. (GPG II.D.7.f and II.D.7.a.ii) I. Indirect Costs (GPM 630) (Also known as Facilities and Administrative Costs for colleges and universities). Specify current rate(s) and base(s). Use current rate(s) negotiated with the cognizant Federal negotiating agency. See GPM for special policy regarding grants to individuals, travel grants, equipment grants, doctoral dissertation grants and grants involving participant support costs (GPM, Chapter VI). L. Amount of Request. Line L will be the same as Line J unless the Foundation disapproves the carryover of funds. If disapproved, Line L will equal J minus K. 13

Appendix D Product Development and Commercialization Technology commercialization is a complex process that is highly dependent on the particular technology and product development under consideration. Below is a somewhat arbitrary list of commercialization steps the ITN is using to classify the status of projects. Please do your best to classify your project according to the definitions given below. Contact the ITN if you need assistance. Basic Research research dealing with fundamental properties with no clear, specific commercial applications Applied Research research dealing with problems of commercial interest Product ideation development of ideas for potential commercial products Preliminary market assessment evaluation of the size of the market, potential customers, sales process, etc. for potential products Preliminary technical assessment evaluation of technical issues related to potential new product including competitive technologies, acceptance by market, cost, etc. Proof of concept study research to prove that basic technical assumptions are correct Prototype development and testing creation of initial product design, testing and refinement Production feasibility analysis evaluation of production technology and costs Intellectual property protection patent searches, patent applications, other protection strategies Financial and business modeling evaluation of strategies to take product to market Licensing/business start-up creation of relationships/entities to introduce product to market Market launch offering product for sale 14

Appendix E Scoring System: 1 (Low) to 5 (High) Academic Review Score Sheet Score Issue to Assess Assess the quality of the research project Comments Assess the feasibility of completing the project in the allotted time and budget. Assess the quality of the required industrial partnership and feasibility of the potential for near-term commercial applications. Is the project innovative? Do you recommend revising the budget? Please provide details. TOTAL (out of 20) 15

Appendix F Technical Report Template Seed Assistance Grant Contract No: Recipient Name: Faculty/Staff (circle one) Title: Higher Education Institution: Address: Phone: Fax: E-mail: Project Title: Amount Received: $ PFI $ Required Corporate Match Please fill out the following chart where applicable. Measure Patents Provisional Patent Filed Owner: Date Filed: Provisional Patent Awarded Owner: Date Received: Software Copyrights Filed Owner: Date Filed: Software Copyrights Awarded Owner: Date Received: Trademarks Trademarks Filed Owner: Date Filed: Trademarks Awarded Owner: Date Received: Technology Development Prototype Developed Anticipated Release: Product Developed Anticipated Release: Product Commercialized To Whom: Date Released: Funds Leveraged Venture Capital Amount: Private Equity Amount: Grants Amount: Type: Other Sources Amount: Source: New Start-Up or Spin-Out Name: 16

Please provide a Technical Progress Report narrative including: 1. A narrative of no more than 2 pages detailing the activities conducted and the outcomes from the project/research. 2. A narrative of no more than 1 page addressing the issue of what, if any, next steps are required to advance the project/research and how that action will be funded. 3. A narrative of no more than 1 page describing the measures reported in the above table. Please describe any challenges or concerns encountered in the project, or any questions about the commercialization process that arose. 17

Appendix G Date Sample Letter for Company/Industry Partner Support & Match Commitment Marian R. Walters, Ph.D. Principal Investigator, NSF-PFI Award Associate Dean for Research and Graduate Study Penn State Harrisburg 777 W. Harrisburg Pike C114 Middletown, PA 17057 Dear Dr. Walters: Supporter is pleased to collaborate and offer financial match for the Institution s application for Project Title. [describe relationship to applicant(s)]. Supporter will contribute $----- in match for this project. [Briefly Describe Supporter Role and potential for commercialization of the project product] We thank you for your consideration of this proposal. Sincerely, Name Title Company/Institution 18

Appendix H Seed Assistance Grant Company Feedback As a partner in a recent NSF-PFI/ITN grant award, you collaborated with and provided matching funds for with a faculty grant recipient on a specific project funded by our organization. We are very interested in your feedback on the Seed Assistance Grant process and your experience with the faculty member, and would ask for your response to the four questions below. Project Name: Faculty Member: Form Completed by: Your title: Email this completed form to Jill Edwards ( jilledwards@psu.edu ) or fax to: Attention Jill Edwards: 717-772-3594. Please rate and respond to the questions below, using a scale of 1 to 5, as indicated. 1. Did this grant project meet your overall business expectations? 1 2 3 4 5 unmet somewhat met exceeded far exceeded met If not, please share an example or two of your experience so we know what issues to focus on in future projects. 19

2. Was your expectation of the faculty member s expertise in this project met? 1 2 3 4 5 unmet somewhat met met exceeded far exceeded If not, please share an example or two of your experience so we know what areas to focus on in future projects. 3. Were your expectations of the faculty member s responsiveness to your business needs, and the goals of this project, met? 1 2 3 4 5 unmet somewhat met met exceeded far exceeded If not, please share an example or two of your experience so we know what areas to focus on in future projects. 4. Based on your experience, would you recommend this faculty member for other company projects? 1 2 3 4 5 Not Unlikely to Might Strongly Highly Recommend Recommend Recommend Recommend Recommend Please help us in our goal to connect high quality faculty expertise with small to mid-size businesses, by providing us with additional comments that would improve the faculty-company grant experience: Thank you for taking the time to let me know the result of your interaction with the faculty member as it directly relates to the ITN Seed Assistance Grant program. If you d like to reach Jill directly, please phone at 717-948-6625, or email at jilledwards@psu.edu 20