Kentuckys Support of PublicPrivate Partnerships AMTEC Academy, Toyota North American Production Supp

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Kentuckys Support of Public/PrivatePartnersh
ips AMTEC Academy, Toyota North American
Production Support Center Georgetown, Kentucky
February 26, 2007Presented byDeborah L.
ClaytonCommissionerDepartment of
Commercialization and InnovationKentucky Cabinet
for Economic Development

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Professional Background

• Deborah L. Clayton
• University of Alabama, Tuscaloosa, AL
• Orchid One Corporation, Palos Hills, IL
• Argonne National Laboratory, Argonne, IL
• Charlotte Research Institute, UNC at Charlotte
• KY Cabinet for Economic Development / DCI

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Argonne National Laboratory

• Laboratory Technology Research Program
• Laser Welding Monitor
• Developed through an Argonne and Delphi Energy
  and Engine Management partnership, then licensed
  to Spawr Industries in Arizona
• Adopted by DaimlerChrysler for real-time,
  non-intrusive monitoring of weld quality at two
  Indiana Transmission Plants

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Charlotte Research Institute
Center for Optoelectronics and Optical
Communications

• General Dynamics
• Bio-chem sensor factory relocated from Deland, FL
  to Charlotte in 2003
• Armament unit relocated its HQ from Vermont to
  Lakepoint Office Center in Charlotte in 2003
• 135 headquarters jobs
• 270 manufacturing jobs
• Original investment 30MM in state funds

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Kentuckys Can Do Attitude

• Plentiful resources throughout state
• Funding
• Programs
• Research universities
• People (Kentucky leaders get it)

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Partnerships are for the People
How do public / private partnerships benefit the
average person?

• Joe the Dry Cleaner

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Research to Revenue Cycle
Faculty / Student Research
The Virtuous Circle
Intellectual Property (IP)
Revenues
Community
Industry / College (KCTCS)Collaboration
New Jobs Spin-offs
New Products Improved Processes
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Kentucky Innovation Act

• House Bill 572 2000 KY General Assembly Goals
• Establish Department of Commercialization and
  Innovation (DCI), Cabinet for Economic
  Development
• Promote applied research in postsecondary
  institutions
• Encourage business innovation
• Attract high-tech enterprises to Kentucky
• Advance higher-order skills of an educated
  workforce

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Implementing a New Economy

• Dept. of Commercialization and Innovation
• Monitor the return on investments and
  effectiveness of the Kentucky Innovation Act
• Build infrastructure for the New Economy to
  promote networks of technology-driven clusters
  and research-intensive industries
• Support the growth and creation of RD and
  high-tech companies in 5 current focus areas
  (health human development, IT and
  communications, biosciences, environmental
  energy, materials science and advanced
  manufacturing)
• Implement the Kentucky Innovation and
  Commercialization Center Program 6 regional
  Innovation Commercialization Centers (ICCs) and
  6 local Innovation Centers (ICs)

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ICC Program

• Innovation Commercialization Centers (ICCs)
• The mission of the Innovation and
  Commercialization Program is to
• Identify and link entrepreneurs, faculty,
  scientists, venture capitalists, and other key
  individuals from the business sector,
  universities, community and technical colleges,
  local leaders, and government for the creation
  and expansion of knowledge-based, high-tech
  companies

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ICC Services
Innovation Commercialization Centers

• Supporting Kentucky entrepreneurs and projects
  through the concept and development phases, with
  services like
• Designing market research
• Aiding in prototype development
• Helping develop business plans and strategies
• Assisting with grants and contracts
• Identifying investment capital and management
  resources

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Current ICC and IC Locations
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Innovation Commercialization Centers

• DCI contracts with the Kentucky Science and
  Technology Corporation (KSTC) to manage and
  administer six Innovation and Commercialization
  Centers (ICCs) and six Innovation Centers (ICs).
• Each ICC and IC is allied with a technical
  college and/or university.

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DCI Funding Sources

• Two High-Tech Funding Pools
• High-Tech Investment
• Used to build and promote technology-driven
  industries and research-intensive industries with
  the goal of creating clusters of
  innovation-driven industries in Kentucky
• The highest priority (in the funding of projects)
  is given to knowledge-based, high-tech companies
  that will create high-tech jobs
• High-Tech Construction
• Used for New Economy projects with a special
  emphasis on equipment and upfitting facilities

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DCI Funding

• Prior to July 2005, only one for-profit company
  had received DCIfunding
• Since then, eight (8) for-profit companies and
  five (5) non-profit LLCs have been funded. The
  companies and non-profits combined have been
  approved for 9,705,000 in grants / loans.
• Currently, over 60 companies have expressed
  interest and are in various stages of the due
  diligence process.
• Many of these have been brought to DCIs
  attention by the ICCs and ICs.

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Kentucky-Funded Partnerships
Kentucky Dataseam Initiative Cabinet for
Economic Development, James Graham Brown Cancer
Center, Apple, and the University of
Louisville Thanks to the partnership, Kentucky
Dataseam has placed over 2600 eMac and iMac
computers in school districts in Kentucky. In
the background and at night, the student
computers run applications to help U of L
researchers at the Brown Cancer Center discover
new forms of cancer treatment. The effort has
helped reduce data processing jobs that used to
take 50 years of CPU time down to 20 days to
speed up drug discovery research efforts.
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Kentucky-Funded Partnerships
Mersive Technologies Cabinet for Economic
Development, University of Kentucky, Lexington
ICC, Kentucky Science and Technology
Corporation Mersive Technologies Inc. has its
roots in the University of Kentucky and UKs
Center for Visualization and Virtual
Environments, which received 5,000,000 from the
High-Tech Construction Pool. The Lexington ICC
and KSTC arranged seed-stage funding and helped
introduce Mersive to the Bluegrass Angels.
Recognizing an increasing demand for ultra
high-resolution digital content, Mersive offers
seamless multi-projector displays of greater than
10 megapixels in resolution for viewing on flat,
curved, spherical, or uneven surfaces.
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Kentucky-Funded Partnerships
Cymbion LLC Cabinet for Economic Development,
Bowling Green ICC, Cymbion LLC
Cymbion is an innovative manufacturer of
hospital-grade products for infection control,
including liquid hand sanitizer, hand sanitizing
wipes, hard surfacedisinfectants, and surgical
scrub brushes, as well as wound pads. Planning
to build a new manufacturing location in
Kentucky, the company worked with the ICC in
Bowling Green to develop its plan and seek
funding from the Cabinet for Economic
Development. The Cabinet awarded a grant for up
to 650,000 to help purchase equipment and
support operations. The potential is to create
over 400 new jobs once a dedicated new production
facility is constructed.
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New Biennium DCI Initiatives

• DCI FY 2007 and FY 2008 initiatives recommended
  by the Governor and funded by the 2006 General
  Assembly
• Assessment of Life Sciences/Biosciences Assets
  Capabilities
• Assessment of Nanoscience Assets Capabilities
• Strategic Analysis of Technology Focus Areas
  (2002 Plan)
• Statewide RD Assets and Networking Database
• Life Sciences Commercialization Program
• Statewide Business Competition and Award
• SBIR/STTR Matching Funds Program

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Some Keys to Success

• Build personal relationships before building
  formal partnerships

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Some Keys to Success

• Build personal relationships before building
  formal partnerships
• Make it easy for businesses to get advice and
  assistance (one-stop shopping)

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Some Keys to Success

• Build personal relationships before building
  formal partnerships
• Make it easy for businesses to get advice and
  assistance (one-stop shopping)
• Let industry set the priorities for
  initiatives

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Some Keys to Success

• Build personal relationships before building
  formal partnerships
• Make it easy for businesses to get advice and
  assistance (one-stop shopping)
• Let industry set the priorities for
  initiatives
• Require and measure ROI

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Public / Private Partnerships

• Public sector can play a significant role
• Such partnerships leverage resources and share
  overall risks
• ? Personnel, funding, facilities, etc.
• Kentucky has facilitated numerous successful
  collaborations
• ? KCTCS Center for Excellence in Automotive
  Manufacturing
• -- CED-DCI supported application for 2.48MM
  Dept. of Labor grant
• -- Will benefit all manufacturing workers in
  Kentucky
• The AMTEC Academy is a model of collaboration

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Thank you Deborah L. Clayton 502-564-7670 Debora
h.Clayton_at_ky.gov For a copy of this
presentation, e-mail donnag.lewis_at_ky.gov