National Science Foundation Engineering Directorate Industrial Innovation

National Science Foundation Engineering Directorate Industrial Innovation & Partnerships Division 1

Overview è Introduction to NSF è Engineering Directorate è Industrial Innovation & Partnerships è SBIR/STTR è Contact Information 2

National Science Foundation è Created: 1950 è Federal Agency: Independent è Total Budget FY 2007: $5. 92 B » FY 2008: $6. 43 B (Request) è Director and Deputy Director: Presidential appointees è Employees: 1, 200 w Intergovernmental Personnel Act (IPA): 1/3 w Federal service appointments: 2/3 è Supports: Basic research and education è Grant Mechanism: Merit-based review 3

NSF Mission & Vision è è Mission: To promote the progress of science; to advance the national health, prosperity and welfare; to secure the national defense Vision: Advancing discovery, innovation and education beyond the frontiers of current knowledge, and empowering future generations in science and engineering 4

Organizational Structure National Science Board Office of the Inspector General Director Office of Cyberinfrastructure Dr. Arden Bement Deputy Director Office of International Science and Engineering Dr. Kathie Olsen Directorate for Biological Sciences Directorate for Engineering Directorate for Computer and Information Science and Engineering Directorate for Geosciences Office of the General Counsel Directorate for Education and Human Resources Directorate for Mathematical and Physical Sciences Directorate for Social, Behavioral, and Economic Sciences Office of Legislative and Public Affairs Office of Equal Opportunity Programs Office of Integrative Activities Office of Polar Programs Office of Budget, Finance, and Award Management http: //www. nsf. gov Office of Information and Resource Management 5

NSF Budget for Research & Related Activities by Directorates FY 2008 Request Directorate FY 2006 Actual ($M) FY 2007 Plan ($M) FY 2008 Request ($M) BIO $580. 90 $607. 85 CISE $496. 35 ENG (less SBIR/STTR) SBIR/STTR Change over FY 2006 Actual ($M) Change over FY 2007 Request ($M) Amt % $633. 00 $52. 10 9. 0% $25. 15 4. 1% 526. 69 574. 00 77. 65 15. 6% 47. 31 9. 0% $486. 01 519. 67 566. 89 80. 50 16. 6% 47. 22 9. 1% $99. 45 108. 88 116. 41 17. 34 17. 5% 7. 53 6. 9% GEO $703. 95 744. 85 792. 00 88. 05 12. 5% 47. 15 6. 3% MPS $1, 086. 61 1, 150. 30 1, 253. 00 166. 39 15. 3% 102. 70 8. 9% SBE $201. 23 213. 76 222. 00 20. 78 10. 3% 8. 24 3. 9% OCI $127. 14 182. 42 200. 00 72. 86 57. 3% 17. 58 9. 6% OISE $42. 61 40. 61 45. 00 2. 39 5. 6% 4. 39 10. 8% OPP $390. 54 438. 10 464. 90 74. 37 19. 0% 26. 80 6. 1% IA $233. 30 231. 37 263. 00 29. 70 12. 7% 31. 63 13. 7% U. S. Arctic Research Commission $1. 17 $1. 45 $1. 49 0. 32 27. 4% 0. 04 2. 8% $4, 449. 25 $4, 765. 95 $5, 131. 69 $682. 44 15. 3% $365. 74 7. 7% Research & Related Activities 6

Engineering Directorate 7

Directorate for Engineering FY 2008 Office of the Assistant Director Emerging Frontiers in Research and Innovation Deputy Assistant Director (EFRI) Program Director for Diversity &Outreach Engineering Education and Centers (EEC) Civil, Mechanical, and Manufacturing Innovation (CMMI) Chemical, Bioengineering, Environmental, and Transport Systems (CBET) Electrical, Communications and Cyber Systems (ECCS) Senior Advisor Nanotechnology Industrial Innovation and Partnerships (IIP) 8

NSF Budget by Research Directorate Dollars in Millions Directorate FY 2007 Actual FY 2008 Estimate BIO $608. 54 $612. 02 CISE $526. 68 534. 53 ENG (less SBIR/STTR) $521. 33 527. 50 SBIR/STTR $108. 67 109. 37 GEO $745. 85 752. 66 MPS $1, 150. 73 1, 167. 31 SBE $214. 54 215. 13 OCI $182. 42 185. 33 OISE $40. 36 41. 34 OPP $438. 43 442. 54 IA $219. 45 232. 27 U. S. Arctic Research Commission $1. 45 $1. 47 $4, 758. 44 $4, 821. 47 Research & Related Activities 9

ENG and NSF Funding Rates Funding Rate Percent ENG Proposals and Awards Research Grants 10

Industrial Innovation and Partnerships Division 11

Industrial Innovation and Partnerships Division Director Kesh Narayanan Industry/University Cooperative Research Centers Rathindra Das. Gupta Glenn Larsen Alex Schwarzkopf Grant Opportunities for Academic Liaison with Industry Senior Advisor Joe Hennessey Office of Industrial Innovation SBIR/STTR Donald Senich • Advanced Electronics • Advanced Manufacturing • Advanced Materials • Biotechnology • Civil Infrastructure Systems • Energy and the Environment • Fabrication and Processing Technology • Health and Safety • Information and Communications • Quality, Reliability and Maintenance • System Design and Simulation Partnerships for Innovation Sara Nerlove • Program Director/Advisor Cheryl Albus • Biotechnology Thomas Allnutt, Cindy Znati, • Electronics Juan E. Figueroa, Murali Nair, William Haines • Information Technology Errol Arkilic, Ian Bennett • Special Topics James Rudd, George Vermont 12

The SBIR/STTR Program Small Business Innovation Development Act of 1982 Congress designated 4 major goals è Stimulate technological innovation in the private sector è Use small business to meet federal R&D needs è Foster and encourage participation by minorities and disadvantaged persons in technological innovation è Increase private-sector commercialization innovations derived from federal R&D 13

SBIR / STTR Participating Agencies è è è DOD SBIR/STTR HHS SBIR/STTR NASA SBIR/STTR DOE SBIR/STTR NSF SBIR/STTR ~$108 M DHS SBIR USDA SBIR DOC SBIR ED SBIR EPA SBIR DOT SBIR TOTAL ~ $2. 5 B FY 2008 14 14

SBIR Program Details è Funds set-aside for SBIR w w è Set up as a profit organization with 500 or few employees w è ~$108 million for Phase I, II, and IIB combined SBIR = 2. 5% of NSF R&D budget STTR = 0. 3% of NSF R&D budget Cooperation research agreement between small business and university/non-profit research institution in place to protect intellectual property A minimum of 40% of budget resides with the small business; a minimum of 30% of the budget goes to the university/non-profit research institution; the remaining 30% can be distributed as appropriate for the project Grantee must be Defined as a Small Business: Special STTR Requirements w è Three-Phase Approach: w w PHASE I – Feasibility Research (6 – months - $100, 000) PHASE II – Research Toward Prototype (24 – months - $500, 000) PHASE IIB – Matching Funds against outside investment (12 – months up to an additional $500, 000) PHASE III – Product Development to First Revenues (non-SBIR/STTR funding) 15

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Market Driven Solicitation Topics è SBIR (only) solicitation currently opened. NSF 08 -548. Closes June 10, 2008. è SBIR topics: w Biotech and Chemical Technologies (BC) w Electronics, Components and Engineering Systems (EL) w Software and Services è STTR (only) solicitation will be released in the Fall of 2008 è STTR topics: w To be Determined (most likely Materials/Manufacturing) 17

Program Information è NSF is not the final customer è NSF does not buy product/process or software or intellectual property è NSF wants grantees to successfully commercialize high-tech research è Investment $ beyond SBIR is needed 18

Supplements è è NSF supplements to existing grants are important driver for small businesses to partner with industry. Currently over 20% of NSF SBIR/STTR grant funds go towards supplements as an optimum way to “bridging the gap”. 19 19

Phase IIB Third Party Investor è è è è Strategic Partner Venture capital firm Angel investor or Network State Government Local Government Non-SBIR Federal Government Any combinations of the above! 20 20

Phase IIB Matching Fund Trend NSF/IIP Match ($) Investment ($) Leverage $80, 000 $60, 000 $40, 000 $20, 000 $0 2004 2005 2006 Investment ($) $10, 629, 692 $43, 514, 150 $57, 812, 521 NSF/OII Match ($) $5, 314, 846 $14, 143, 797 $18, 389, 707 2. 0 3. 1 3. 5 3. 0 2. 5 2. 0 1. 5 1. 0 0. 5 - 3. 1 Leverage 21

Match. Maker Program è To match SBIR/STTR Grantees with Strategic Partners, Angel Investors and V. C’s to provide the ongoing support necessary for achieving successful commercialization. 22

Industrial Companies in Match. Maker è è è è ATMI General Motors Procter &Gamble Dupont General Electric Dow Chemical Intel 23 23

Industrial Companies in Match. Maker (cont’d) è è è è Colgate Palmolive Rohm & Haas Praxair Texas Instruments Air Products and Chemicals NEC Caterpillar 24

Match. Maker Program Venture Capital Partners è è è è ARCH Venture Partners Mohr, Davidow Ventures Alameda Capital, LLC Taproot Ventures The Carlyle Group Paladin Capital Group Quantum Venture Partners 25

Match. Maker Program Venture Partners/Angels è è è è AM Benjamin Services Venture Investors JK&B Capital ITU Ventures Draper Atlantic Technology Tree (Houston Angels) Atlanta Technology Angels 26

Partnering Success for Companies è è è è In past several years NSF seen notable successes in partnering for their SBIR companies. Nat Academy study shows License agreements 20% R&D agreements 17% Marketing/Distribution 16% Manufacturing agreement 8% Joint Venture agreement 3% Our goal is to increase the number of partnerships through active involvement with industry and investors through the Match. Maker program. 27 27

SBIR/STTR Grantees 28

Sensant (Phase IIB) High Quality Dielectric films for Novel Medical Ultrasound Probes Develop transducers that have stable charge trapping behavior Silicon wafer • Develop test structures and infrastructure to measure charging in suspended membrane • Demonstrate stable high e-field behavior Outside Investment Angel Investors: $1, 250, 000 Acquired by Siemens Medical • Demonstrate acceptable MTBF with zero dead elements 29

Grant Number: OII-0548731 Web-Based Manufacturing Performance Management Invistics Tom Knight Impact • Improve U. S. global manufacturing competitiveness • Sell software and services • Create wealth for investors Lineage • Initial sales to customers: Novelty • Web-services software • Unique optimization algorithms for “high-mix” manufacturing • Extends ERP/MRP for Lean Company Mission • Value: Help customers ship more product, on-time, with 50% less inventory • Team: Lean Mfg. thought-leaders • Raised $8+ mil. venture capital • Collaboration with MIT/GATech • Exit Strategy: Acquisition by a larger software company 30

Thank you! Information websites: www. nsf. gov/eng/iip/sbir/matchmaker. jsp 31 31