University of ArkanasPartnership for Innovation

Innovation Incubator

Ron Foster – Director Innovation Incubator

foster@uark.edu 479 575-7635

Ken Vickers – Director, microEP Grad Program

vickers@uark.edu 479 575-2875

ASEE - Salt Lake City, Utah June 23, 2004 2

University of Arkansas’ Innovation Incubator (I2)

• The University of Arkansas’ Innovation Incubator (I2) is a NSF “Partnerships for Innovation” - funded project, designed to stimulate technology commercialization.

• I2 is also a National Network for Technology and Entrepreneurship Commercialization (N2TEC) partner, representing of a class of states (universities) that have limited access to venture capital.

ASEE - Salt Lake City, Utah June 23, 2004 3

University of Arkansas’ Innovation Incubator (I2)

The Innovation Incubator Provides:

• Assistance in defining and documenting IP• Assistance in initial company formation, including

licensing agreements• Access to university facilities, equipment and intellectual

resources • Funding for a graduate student to work at company’s

direction for one year• Funding for project supplies and materials ($10,000)• Mentoring for proposals on SBIR/STTR• Alignment with GENESIS Business Incubator

ASEE - Salt Lake City, Utah June 23, 2004 4

University of Arkansas’ Innovation Incubator (I2) –

SBIR/STTR Program connections• The SBIR/STTR programs act to strongly encourage

startup companies by providing early-stage seed funding that is seldom available from other sources.

• Phase I awards are typically $100K. ONLY Phase I awardees are allowed to compete for the follow-on $500K to $750K awards.

• Awards come with “no strings attached”, meaning that there are no future liabilities to the company, and intellectual property remains unencumbered.

ASEE - Salt Lake City, Utah June 23, 2004 5

University of Arkansas’ Innovation Incubator (I2) –

SBIR/STTR Program connections

• Awards are highly competitive, with excellent feedback from some agencies (NSF, NIH in particular).

• Small companies entering the competition make significant, rapid progress towards understanding and enunciating a mission.

• I2 REQUIRES that client companies enter at least one proposal.

ASEE - Salt Lake City, Utah June 23, 2004 6

NSF AwardsState of Arkansas

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Year

To

tal $

$

0

1

2

3

4

5

6

7

8

Nu

mb

er

of

Aw

ard

s

Dollars

Awards per Year

ASEE - Salt Lake City, Utah June 23, 2004 7

University of Arkansas’ Innovation Incubator (I2) – NSF SBIR/STTR Awards

 

NSF

SBIR P I

Awards

STTR P I

Awards Total

Pre-1999 Total 3 0 3

1999 1 1 2

2000 1 0 1

2001 0 0 0

2002 5 0 5

2003 6 1 7

ASEE - Salt Lake City, Utah June 23, 2004 8

NIH AwardsState of Arkansas

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Year

To

tal

$$

0

1

2

3

4

5

6

7

8

Nu

mb

er

of

Aw

ard

s

Dollars

Awards per Year

ASEE - Salt Lake City, Utah June 23, 2004 9

University of Arkansas’ Innovation Incubator (I2) – NIH SBIR/STTR Awards

NIH

SBIR P I

Awards

STTR P I

Awards Total

Pre-1999 Total 5 2 7

1999 2 1 3

2000 1 1 2

2001 1 1 2

2002 0 1 1

2003 6 1 7

ASEE - Salt Lake City, Utah June 23, 2004 10

University of Arkansas’ Innovation Incubator (I2) –

microEP Faculty-Student companies

Company Faculty Student Focus

SBIR

PROP.

SBIR

AWARD I2 VIC

APEI Olejinicecz Lostetter SiC Circuits ~ 5 2 --

Syscon Malshe O’neal Packaging ~ 1 1 --

Vegrandis Fritsch Malaria Detect ~ 4 2

BDI Li Food Safety ~ 4 2

SFC Fluid Tung µFluidics ~ 1 -- -- --

NanoMech Malshe Nanocoating ~ 4 2

Xanodics Schaper Capacitor -- -- --

Moducell Foster Fuel Cell ~ 3 1 --

Nano MF Peng Optical LED ~ 10 3/2 -- --

Nano Ferr Salamo Designed Mat’l -- -- --

ASEE - Salt Lake City, Utah June 23, 2004 11

University of Arkansas’ The Commercialization Mosaic

• I2 provides a central “meeting hall” for the technology commercialization community.

• MGMT 5383 Intra/Entrepreneurship of Technology (NCIIA course grant) trains graduate students to commercialize their research (creating Trojan Horses in traditional faculty’s research labs).

• I2 projects with external companies highlighted IP barriers to technology commercialization – resulting in the Tech Transfer office changing focus from royalty cash flow to equity positions in local startups.

ASEE - Salt Lake City, Utah June 23, 2004 12

University of Arkansas’ The Commercialization Mosaic

• The private Virtual Incubation Corporation (VIC) is an aggressive business partner with many faculty, providing business and SBIR expertise to researchers.

• Business School classes (undergraduate and graduate) are engaging with engineering and science researchers for BP competitions and class projects.

• Business leaders in Arkansas are aggressively pursuing the creation of Angel networks and VC funds.

ASEE - Salt Lake City, Utah June 23, 2004 13

University of Arkansas’ The Commercialization Mosaic

• The College of Engineering, under a new dean, is planning to follow the PhD microEP curriculum model to include entrepreneurism in the all PhD Engineering curricula.

• Phase I SBIR/STTR success stories are now student/faculty water fountain topics, with Phase II stories on the way.

• The Genesis Technology Business Incubation Center provides a sheltered path forward for I2 clients.

ASEE - Salt Lake City, Utah June 23, 2004 14

University of Arkansas’ Innovation Incubator (I2) - Summary

• I2 appears to be a significant catalyst for technology commercialization.

• Immersion of the I2 program within the UA teaching and research missions is critical to success.

• I2 methods have generated success in defining companies and attracting early stage seed funds.

• Commercialization activities are currently dominated by microEP faculty and students.

ASEE - Salt Lake City, Utah June 23, 2004 15

University of Arkansas’ Innovation Incubator (I2) –

microEP Faculty-Student companies

Company Faculty Student Focus

SBIR

PROP.

SBIR

AWARD I2 VIC

APEI Olejinicecz Lostetter SiC Circuits ~ 5 2 --

Syscon Malshe O’neal Packaging ~ 1 1 --

Vegrandis Fritsch Malaria Det. ~ 4 2

BDI Li Food Safety ~ 4 2

SFC Fluid Tung µFluidics ~ 1 -- -- --

NanoMech Malshe Nanocoating ~ 4 2

Xanodics Schaper Capacitor -- -- --

Moducell Foster Fuel Cell ~ 3 1 --

Nano MF Peng Optical LED ~ 10 3/2 -- --

Nano Ferr Salamo Designed Mat’l -- -- --