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Innovation WorksResearch Commercialization Program

Presented by Cole Wolfson

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Innovation Works

• 8th most active early-stage investor in U.S. over the last 8 years• Invested nearly $62M in more than 400 companies since 1999• Companies have raised more than $1.4B in follow-on funding• IW companies:

– Employ more than 18,000 people– Generate more than $3.3B in annual revenues

• Nationally recognized best practice organization– PA Economic Development Assoc. Partner of the Year Award – 2011– EDA Excellence in Regional Economic Development Award – 2008– SSTI Excellence in TBED Award – 2008 & 2009– IEDC Excellence in Economic Development Award – 2008, 2009, 2011, 2012, 2013– Federal Lab Consortium Mid-Atlantic Technology Transfer Award – 2011– National Governor’s Association Featured Best Practice – 2012

• IW is the Ben Franklin Technology Partner of SWPA

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Need Being Addressed

• SWPA is home to universities and research institutions that attract over $1B in federal research dollars annually

• CMU and Univ. of Pitt have been awarded over 17,500 research grants and have registered nearly 1,000 patents in the last 10 years

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• Despite high volume of IP creation, tech transfer offices at universities and research institutions lack the resources required to fully support commercialization efforts

• Systemic factors are primary impediment: federal research dollars fund research, but can’t be used to support commercialization

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Research Commercialization Program

• Provide funding and strategic business support to help determine the commercial potential of university innovations

• Apply innovative business growth strategies to rapidly transform very early-stage startups into revenue-positive companies

• Provide assistance to entrepreneurs working outside of the university setting to help them overcome commercialization challenges

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Activities

• Direct grants from $25,000 to $100,000• Mentorship from Executives-in-Residence

– Complement work of Tech Transfer offices

• Mentorship from business and product mentors• Teach agile innovation methodologies• Technology review• Create a culture of entrepreneurship

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Benefits/Impacts

• Awarded 89 translational research grants totaling over $1.3M

• Provided mentorship and business support to 49 entrepreneurial teams working to commercialize technologies

• Hosted 16 agile innovation workshops

• Formed 17 companies• Created more than 60 jobs• Launched 36 products• Attracted over $110M in follow-on

funding

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CMU - Direct Spin-outs Per Year

After IW Commercialization Program Launched: Avg = 10/yr

Before IW Commercialization Program Launched: Avg = 3.6/yr

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Scalability, Replicability & Sustainability

• Scalable across industries– Energy, robotics, life sciences, IT, advanced

manufacturing, etc.

• Replicable across institutions– From universities to federal labs to private

sector startups

• Sustainability through investment– RCA creates deal flow for IW– Returns on investment fund future program

activities– Consulting agreement with institutions

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Alignment with Regional Economic Strategies

• SPC 2040 Transportation and Development Plan: “The region will proactively support the emerging role of colleges and universities in economic development.”

• Universities have stated that commercializing more technologies is important, but in today’s economic environment finding additional funding dollars for these activities can be difficult

• Regional positioning:– Revitalization after the collapse of heavy

industry– Hub of innovation and entrepreneurship– Diversified economy 900,000

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Lost 100,000 jobs between 1980 and 1983; took 10 years to recover

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Contribution to Higher Education Culture & Economic Wellbeing of Region

• Instill culture of entrepreneurship in higher education

• Partner with region’s universities and labs for programs

• Universities serve as feeder for other IW initiatives

• IW’s economic impact in region is impressive– $1.4B in follow-on funding– 18,000 people and $3.3B in annual revenues– 3.5:1 return on each tax dollar provided

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Thank You!

Questions?

Cole Wolfsoncwolfson@innovationworks.org

412-894-9526