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A New STATE OF BUSINESS
Centers of Excellence Program The Vision

Presenter Linda Butts Sr. Advisor to the
Commissioner ND Department of Commerce
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Whats the point of state economic development
efforts?
Goal To increase wealth for North Dakota
people. How do we do that? Good paying jobs
through innovative processes and
outcomes. Governor Hoeven is committed to
measuring success of state e.d efforts not just
by counting jobs but by measuring peoples
wealth/wages/income.
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Todays Competitive Landscape
Globalization is forcing us and everyone around
the world to find new competitive niches in
rapidly changing markets. Presents opportunities
those who are nimble, like ND
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Economic Development Strategies are changing

• 20th Century Model- Recruit
• 21st Century Model- Stoking innovation and
  fostering entrepreneurs that exploit the regions
  assets.
• The capacity to innovate and to grow
  entrepreneurs increasingly separates regions that
  can keep pace from those that can not.
• Regional strategies are increasingly being shaped
  by regions assets like scholarly research.

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Stoking Innovation

• If innovation is the fuel for reinventing our
  economy, higher education is a primary source for
  the fuel.
• Many states are developing new incentives to
  unleash the enormous resources housed within
  higher education.
• Centers of Excellence NDs answer to stimulating
  innovation and regional economic growth.

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Centers of Excellence Program

• What is a Center of Excellence (COE) for
  Economic Development?
• A hub of research and development around which
  related businesses expand and dynamic new
  businesses cluster.
• Vision Centers of Excellence will help stimulate
  innovation in North Dakotas target industries
  and create new industry niches.

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Overall Concept

• A Vision essential to North Dakotas future
• Connects potential of colleges and universities
  across the state with private industry to
  generate higher paying, skilled jobs, and career
  opportunities for the future.
• Will create and attract new businesses, and
  foster the expansion of existing businesses.
• Create centers that nurture our best and
  brightest minds to commercialize ideas into
  products, skills, and services.

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11 Centers Approved for Funds

• North Dakotas research institutions are a unique
  asset we must maximize for growth.
• Legislature has provided for 50 million that
  will be leveraged to generate at least 150
  million in total funding resources. 20 million
  during the 2005-07 biennium and legislative
  intent for 30 million in future biennia.
• Eleven Centers of Excellence across the state
  have been approved for funding.

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Centers of Excellence Projects

1. Bismarck State College National Energy Center
   of Excellence
2. NDSU Center for Advanced Electronics Design and
   Manufacturing
3. UND Energy and Environmental Research Center
   National Center for Hydrogen Technology
4. Lake Region State College Dakota Center for
   Technology Optimized Research
5. North Dakota State University Center for
   Agbiotechnology Oilseed Development
6. North Dakota State University Center in Surface
   Protection

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Centers of Excellence Projects

• University of North Dakota Research Foundation
  Center of Excellence in Life Sciences and
  Advanced Technologies
• University of North Dakota Center of Excellence
  for UAV and Simulation Applications
• Valley City State University - Institute for
  Customized Business Solutions
• Williston State College - Petroleum Safety and
  Technology Center
• Dickinson State University Center for
  Entrepreneurship and Rural Revitalization
  Institute for Technology and Business

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BSC National Energy Center of Excellence

• Summary The world class Energy Technology Center
  of Excellence facility will combine energy
  workforce training with environmental research
  while advancing the use of coal combustion
  products.
• Private Sector Partners Great River Energy,
  Basin Electric, Reliant Energy, MDU, North
  American Coal, Westmoreland Coal, Minnesota
  Power/BNI Coal

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NDSU Advanced Electronics Design and
Manufacturing

• Summary The Center will research
  highly-marketable products identified by two of
  NDSUs established private sector partners Radio
  Frequency Identification (RFID) sensor tags for
  the cold-chain shipments market (Alien
  Technology), and advanced sensors utilizing a new
  global wireless standard (Crane Aerospace and
  Electronics).
• Private Sector Partners Crane Wireless
  Monitoring Solutions, Alien Technology
  Corporation, Clinical Supplies Management Inc.

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UND EERC National Center for Hydrogen
Technology

• Summary The 15,000-square-foot facility will
  significantly enhance the strategic research,
  development, testing, and commercialization of
  hydrogen and fuel cell technologies and result in
  50 to 100 new, high-paying private sector
  equivalent jobs at the EERC. An additional 50 to
  100 new private sector jobs in the greater Grand
  Forks region will also evolve as these projects
  progress.
• Private Sector Partners ePower, Kraus Global
  Inc., Basin Electric Power Cooperative, Phoenix
  Industries

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Lake Region Technology Optimized Research

• Summary To birth technology-optimized products
  which increase net margins of North Dakotas
  farmer/ranchers, respond to the need for
  technological inputs which preserve fragile
  eco-systems, and create an entrepreneurial
  platform.
• Private Sector Partners Agri ImaGIS, Total-Crop
  Farming Systems, Summers Manufacturing

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NDSU - Agbiotechnology Oilseed Development

• Summary The Agbiotechnology Center will make
  available conventional and/or deregulated
  biotechnology lines of soybeans and canola with
  unique oilseed traits that have potential as
  biofuels, specialty lubricants and health care
  products.
• Private Sector Partners Monsanto, Archers Daniel
  Midland, and Dakota Skies Biodiesel

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NDSU - Surface Protection

• Summary The NDSU Center for Surface Protection
  will perform market-driven research and
  development of surface protecting coatings that
  will enhance the durability of manufactured
  products and address industrial problems for
  companies located in North Dakota and elsewhere.
• Private Sector Partners Gremada Industries,
  Tecton, Marvin Windows Doors, Gamry, and Akzo
  Nobel.

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UND Research Foundation - Life Sciences and
Advanced Technologies

• Summary The Center of Excellence in Life
  Sciences and Advanced Technologies will create
  new jobs through the commercialization of
  research innovations into high-value products
  that are developed and made in North Dakota.
• Private Sector Partners Alion, Avianax, Agragen,
  BORDERS, Ideal Aerosmtih, Intraglobal Biologics,
  MC Strategies, Prologic, Cangene, Cirrus, SEI,
  ImClone

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UND - UAV and Simulation Applications

• Summary The Unmanned Aerial Vehicle (UAV) Center
  of Excellence will provide
• Human factors flight performance research on
  UAVs and simulation applications
• Research and development of UAV payload sensors
  and ground-based cockpits
• Education and training development for the
  integration of UAVs into the civilian aviation
  industry.
• Private Sector Partners Lockheed Martin, Alion
  Science and Technology, Frasca International, and
  Cirrus Aircraft

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VCSU - Institute for Customized Business
Solutions

• Summary The Institute for Customized Business
  Solutions (ICBS) is a public-private partnership
  that will co-develop new enterprise applications
  consulting jobs in North Dakota. Using an
  Enterprise Application Model (EAM) the ICBS will
  attract, grow, and create information technology
  businesses to meet spiraling national demand for
  high quality and reasonable cost in enterprise IT
  services.
• Private Sector Partners Eagle Creek Software
  Services, Eide Bailly Technology Consulting, GEM
  Car, MeritCare

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WSC - Petroleum Safety and Technology Center

• Summary The Center will co-develop and apply new
  oilfield technologies to meet the critical
  workforce and technological needs of the Oil and
  Gas industry in the Williston Basin.
• Private Sector Partners Amerada Hess,
  Halliburton Energy Services, Sanjel, S S
  Chemical, Baker Oil Tools, Nabors Well Service,
  Penkota Wireline Services, Sun Well Service,
  Schlumberger, Nabors Drilling, Natco, Encore,
  Tioga Gas Plant, Basint Tubin' Testin', Bear Paw
  Energy, Double EE, Enbridge Pipelines, Key
  Energy, Red River Supply, and SK S Oilfield
  Services.

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DSU Center for Entrepreneurship and Rural
Revitalization, Institute for Technology and
Business

• Summary The mission of the Center for
  Entrepreneurship and Rural Revitalization is to
  promote economic development through
  entrepreneurial strategies. The Institute for
  Technology and Business will support the Centers
  mission by focusing on the commercial application
  of technology to help technology-based businesses
  start or expand in rural North Dakota
  communities.
• Private Sector Partner Killdeer Mountain
  Manufacturing

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Bottom Line Grow Jobs, Increase Wealth
The 11 approved Centers of Excellence
Projects project the creation of nearly 5,000
new jobs by 2010.
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Examples

• NDSU Advanced Electronics Design and Mnfg.
• AmeriPride increase of 3.6 million in product
  sales 15 new high tech jobs plus 25 additional
  production jobs
• Clinical Supplies Management increase of up to 1
  million in sales 7 to 10 new jobs
• Pedigree Technologies potential for an additional
  25-50 million in sales realized within 5-7 years
  with possible 400 new jobs.
• BSC National Energy Center of Excellence
• 3350 new construction jobs and 973 new technician
  jobs will be created as a result of new plants
  being constructed.

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Monitoring the Program

• Department of Commerce set up a 10-year review
  program that calls for annual functional reviews
  of each center based on 12 specific criteria.
• The goal is for Commerce to work with the
  Universities to measure success and ensure the
  transparency that is necessary for ongoing
  legislative support.

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Key Issues for Legislative Support

• 2-1 match of private to public dollars
• In-kind support Is it legitimate?
• Sustainability of project Can the facilities
  ultimately support themselves without public
  dollars?
• Creating private sector jobs
• Measurable benefits to the community and economy
• Was the project possible without state COE
  funding?
• Tracking- is there accountability in the existing
  grants

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Growing ND from Within

• Our growth will come from cultivating the
  resources we have
• Technology Based businesses and Advanced
  Manufacturing helping existing companies grow
  and remain competitive
• Energy and Agriculture unique time in ND
  history where the marriage of two of our most
  abundant assets have global significance
• Tourism, states 2nd largest industry Legendary
  campaign emphasizing historical attractions,
  badlands, outdoors, cities/cultural attractions
• Research Institutions Centers of Excellence

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RD is Vital

• Your work is vital!
• Commerce looks forward to working closely with
  you to help build partnerships between you and
  private sector business people who need your
  research capacity
• Ultimately, its a win-win for everyone, and its
  what ND needs to ensure a bright future!

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