Describes the Utah Science, Technology, and Research (USTAR) Economic Development Initiative, the collaboration strategy with Utah's research universities, and the technology commercialization organization changes made by the University of Utah.

1. Integrating University
Commercialization and State
Economic Development
Growing State Economies Summit
National Governors Association
Omaha,
Omaha Nebraska
April 12, 2012
Jack Brittain, PhD
Pierre Lassonde Presidential Chair
University of Utah

2. 2004 Utah Changed
• Jon Huntsman became Governor
• USTAR concept ft formulated
l t d
• Utah’s President Michael Young

3. USTAR Economic Leverage
Papers . . . . . . . . . . Patents . . . . . . . . . . Products
123,406
$25M/year USTAR
Team jobs
Investment Average 422
$166M/year USTAR
Research companies
$250M
Funding
one time
one-time
Average
Infrastructure
$166M/year
Investment
State Taxes
Cumulative $977M $4,992M New $4,979M New
State Investment Research Funds State Revenues

4. USTAR Team Funding
• Start-up: average $5 million/team
– 3 PIs per team
– teams average 30 members
– computers and scientific equipment
– moving costs for research
– salaries and benefits costs are ongoing costs
• Research funds pay salaries after 4 years
– Hire more teams
– USTAR provides long term salary at $500,000 per
team for expenses not covered by federal grants

5. Technology Commercialization
Centers
C t
• Statewide innovation backbone
providing business access to
technology resources.
• Includes access to seed capital
and fi
d financing/advisory support
i / d i t
for technology start-ups.
• Advice from seasoned
entrepreneurs with a personal
t ith l
interest in the communities
they serve.

6. USTAR Return on Investment
University
Commercialization
$25 Million
$4.9 Billion 123,406 new $5 Billion in
annual state 422
new external jobs paying new tax
investment & new
research $62 Billion in revenues for
$250 Million companies
funds salaries Utah
for buildings
Is the Critical Path

7. Utah Transformed Operation
• 2004 Technology Prevention
Organization
g
• “Hoping the coyotes will raise them”
• Bottom third of TTOs, ranked 96th
• 2008 Sustained Success
• Tied MIT #1 after 2 years at #2
• 09 Legislative proclamation
• #1 2009 and 2010
• 5000th invention in 2010
• Over 300 inventions 2011-12

8. Returns from Commercialization
• Dollars are in
– Equity and royalties
– Research back to the University
– Donations and other support
• University of Utah received
over $35 million in gifts to
support commercialization
• Commercial-sponsored research
yields more than license income

9. University Inventors, Startups, & Revenue
Faculty Inventors Revenues
$90,000,000
180
$80,000,000
160
$70,000,000
140
$60,000,000
120
$50,000,000
100
$40,000,000
80
$30,000,000
60
$20,000,000
$20 000 000
40
$10,000,000
20
$0
0
FY FY FY FY FY FY FY FY
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 2004 2005 2006 2007 2008 2009 2010 2011
Repeat Inventors New Inventors
Commercial Research Commercial Clinical Research Licensing
Start-ups
25
20
15
10
5
0
1970
1
1971
1
1972
1
1973
1
1974
1
1975
1
1976
1
1977
1
1978
1
1979
1
1980
1
1981
1
1982
1
1983
1
1984
1
1985
1
1986
1
1987
1
1988
1
1989
1
1990
1
1991
1
1992
1
1993
1
1994
1
1995
1
1996
1
1997
1
1998
1
1999
1
2000
2
2001
2
2002
2
2003
2
2004
2
2005
2
2006
2
2007
2
2008
2
2009
2
2010
2
2011
2

10. Leading Indicator: Investment
$1,600,000,000
$1,400,000,000
$1 400 000 000
$1,200,000,000
$1,000,000,000
Cumulative Grants Funding
$800,000,000
Cumulative Investment Funding
$600,000,000 Value Private Companies
$400,000,000
$200,000,000
$0
2005 2006 2007 2008 2009 2010 2011 2012

11. Economic Results
• 2004-2011: 134 companies created
– 74 companies 1970-2003
• 168 University of Utah companies
y p
– raised $568 million in financing 2005-12
– 7 160 Utah employees total Utah direct and
7,160 employees,
indirect employment: 19,818*
– Total payroll over $947 million
million*
– Taxes generated per year: $96.2 million*
* 2011 Bureau of Economic and Business Research economic impact study

12. What we know now
• Look for leverage/OPM
• F d Critical P th
Fund C iti l Paths
– Monitor milestones
– Do not fund “no results :
no results”:
post performance funding
• Outcomes depend on
shots on goal
– control strangles speed and momentum
– place small bets with immediate milestones
• Capital Formation is about outcomes