Council Meeting

1
Council Meeting

• February 13, 2008

2
A Look Ahead

• Increasing state budgetary pressures
• Constraint on new initiatives (possibly 1 new)
• Maintain highly competitive vetting process
• Deliver on promise to the Governor
  Legislature
• Corrective measures for no-performing
  initiatives
• Accuracy realism in expectation setting
• Find our own way - Our model of collaboration
• Oregon is a small state focus leverage
• Public policy meets commercial interest
• Use the dollars to build capacity

3
Another PerspectiveBringing the pieces together
Corporations
Initiative
Economic Growth
Community
University
Public Policy
Capital
4
Wave Initiative
60 Corporate Partners wave tech, utilities,
metals industry, etc
Corporations
Initiative
Economic Growth
University
Community
Corporate re-los
OSU (Wave lab, buoy technology, etc) private
sector
Working with coastal communities fisheries
Capital
Public Policy

• Rate subsidies
• BETCs
• Investors

• Corporate recruiting
• RPS/RFS
• Environmental impact
• Licensing

5
ONAMI Signature Research Center
Corporations

• HP, Intel, Invitrogen, FEI
• PNNL

Initiative
Economic Growth
University
Community

• Start ups
• Federal s

• Unique collaborative model
• NW Nano-net
• Faculty
• Commercialization

OEN
Capital
Public Policy

• OIF fund managers
• OIC fund managers
• 853
• OGA fund managers
• Angels VCs

• State seeding
• Federal research s and centers
• Tech transfer policy
• Workforce training

6
Items of Business

• New Council Members
• Mark Edlen, Gerdling Edlen Development
• Matt Donegan, Forest Capital Partners
• Senator Betsy Johnson
• Steve Eichenlaub, Intel Capital
• Bill Campbell, Ater Wynne
• Steve Rice, Umpqua Bank
• Tim Stout, OHSU
• Tom Sass, Gunderson
• Pat Becker Jr., Becker Capital Management
• John Wilson, Beef Northwest

7
Items of Business

• November Meeting Minutes
• BEST Contract
• Portland State University Interagency Agreement

8
Oregon Translational Research Drug
Development Institute(OTRADI)

• Bob Monaghan

9
Summary of Initiative

• OTRADI was established is to maximize
  collaborative ventures among research
  institutions, the federal government and private
  industry that will capitalize on opportunities to
  obtain private and federal funding to enhance
  therapeutic, vaccine and diagnostic research
  competencies within Oregon universities and
  industries and to develop research results into
  Oregon products and businesses

10
Progress Toward Milestones
11
Issues to Note

• The December 2007 receipt of funding delayed
  start-up of the OTRADI SRC by six months.
• It is unlikely OTRADI will receive any of the
  requested 2008 Federal Earmark Funding
• Occupancy of the Portland State University site
  was delayed by the Public Health Laboratory
  departure

12
Outstanding Achievements

• OTRADI formed as corporate entity March 2007
• Scientific advisory board formed April 2007
• Governor signed OTRADI bill on July 26, 2007
• Funded December 2007
• Amended By-Laws approved
• 501c3 submission pending
• Approved IP agreement between OUS/OHSU OTRADI
• Web site and E-mail account established
• Office support agreement with Virogenomics (mo to
  mo)
• Independent Board formed February 8, 2008
• Site selected and agreement in negotiation
• Occupancy targeted for mid-February
• Infrastructure development (In process - Telecom,
  furniture, equipment, hiring, insurance, human
  resources)
• SAB Compound solicitation review Feb 27, 2008
• 2009 Federal request will be submitted February
  13, 2008

13

• Skip Rung
• President Executive Director

Cindy Dahl Vice President of Operations
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ONAMI Mission

• Grow Oregons nanoscience and microtechnology
  innovation capacity to leverage outside
  investment
• Compete nationally for research growth via
  collaborations among OHSU, OSU, PNNL, PSU and UO
• Attract private capital to Oregon startups seeded
  by a professionally managed ONAMI gap fund

15
Progress Toward Milestones

• Leverage State funding to garner federal and
  private research dollars
• 29M in FY07 more than 3x growth since FY04
• FY08 on track to exceed 30M
• Raise 40 Million in federal and private funding
• 21M in 1H08
• Generate 200K - 500K in licensing revenue or
  equity value
• Success of gap projects will lead to licensing
  and equity position for Universities
• Attract and hire 4-6 world class researchers
• Three on-board one offer pending 3 searches in
  progress

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ONAMI Member Research and Proposal Activity FY02
FY07
17
ONAMI Member Research and Proposal Activity by
Quarter FY07 FY08
18

ONAMI Research Grants Source of Funding FY2007
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ONAMI Research GrantsSource of Funding 1H08
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Progress Toward Milestones

• Successful commercialization of Oregon research
• 5 Gap projects begun in 06-07 biennium 2
  started in 08 several proposals pending
• Oregon companies assisted in commercialization
• Lead gap project negotiating A-round funding
  others in process of fundraising
• Advance 3 to 8 technologies
• 7 technologies involved in ONAMI
  commercialization projects 4 of 7 companies
  selling products or sampling customers

21
Outstanding Achievements
22
Issues to Note

• Constraints on universities affecting ability to
  work with private business

23
Oregon Bio-Economy and Sustainable Technologies
Signature Research Center (Oregon BEST)

• Jennifer Allen
• Tom Chester
• Ken Williamson

24
Summary of BEST Initiative

• Bringing together Oregon's RD strengths in clean
  energy, green building/green development,
  bio-based products, and related sectors.
• Goal - to make Oregon the technology leader in
  march toward a sustainable future
• How - by accelerating cutting-edge research,
  facilitating public/private partnerships to turn
  research into on-the-ground business
  opportunities.
•  BEST is
• a partner of Oregon businesses and communities
• a lever to bring university expertise to bear on
  real issues, opportunities, and problems
• a catalyst for economic development in
  sustainability
•  

25
Progress Toward Milestones

• Established non-profit entity, board, interim
  management team, launched search for permanent ED
  
• Obtain 1 million in additional support to
  support organizational development.
• 75,000 from Meyer Memorial Trust 250,000 from
  the Board of Higher Education (additional
  750,000 available)
• 5 8 research projects underway in key focus
  areas with additional funding of approximately 5
  million.
• First RFP issued, identification of research
  projects, additional funding sources ongoing

26
Achievements

• Issued RFP for research projects and conducted
  mixers on campuses (6070 participants) - robust
  themes emerging
• Helping foster dialogue between forest products
  industry, green building community
• Proactively developing evaluation criteria to
  capture impacts
• Developing and implementing outreach strategy

27
Issues to Note

• Board very engaged, and has endorsed focus on
  sustainable built environment and distributed
  energy systems
• Wide interest from Oregon industrial sectors
• Architectural engineering service providers
• Wind, biofuel, solar, wave energy developers
• Engineered bio-products, wood products
• Energy material efficiency service providers
• Solar technologies
• Simultaneously building community among
  researchers and ensuring we deliver against
  milestones
• OIT Key Partner

28
OIT/OREC update

• OREC established by Legislature in 2001 to
  promote energy conservation and renewable energy
  use through applied research, educational
  programs, practical information.
• Geo-Heat Center
• Applied Research
• Technical support for economic development
• Public information and education
• Lakeview Project
• Next steps
• OIT Klamath Falls seeking to be first net zero
  campus in world
• Green Technology Center at Klamath Falls

29
Community Seafood Initiative

• Diane Moody, Director
• Dr. Michael Morrissey

30
Summary of Initiative

• The Seafood Initiative is generating new
  value-added economic opportunities for seafood
  companies operating in Oregons rural
  communities. We are doing this by delivering to
  seafood businesses
• Access to Capital from ShoreBank Enterprise
  Cascadia
• Education and Technical Assistance from the
  Seafood Center and Oregon Sea Grant
• Connections to and Applications for University
  Research provided by Oregon State
  University-COMES, FIC, Seafood Lab, and Portland
  State University

31
Milestones

• Conduct 6 Industry-Led Research Projects
• Provide Workshops Focused on Innovation
• Establish a Leadership Training Program
• Fisheries Reports--Provide vital economic
  information to industry and those that support
  the industry
• Assist Seafood Businesses Develop New Value-add
  Products
• Distribution Systems Assessment

32
Progress Toward Milestones

• Conduct 6 Industry-Led Research Projects
• Four Projects Identified and Two Projects Started
• Project 1 Seafood Traceability System-Started
  2007
• Project 2 DNA Species Identification-Started
  2007
• Project 3 Pasteurization/Sterilization
  Technologies-2008
• Project 4 Nutraceuticals-2008
• Provide Workshops Focused on Innovation
• Seafood Traceability System Workshop-July 2007
• 35 Scientists, Managers and Fishermen Attended
• Product Development Workshop-March, 2008

33
Progress Toward Milestones

• 3. Establish a Leadership Training Program
• Program development to start March 2008
• Fisheries Reports--Provide vital economic
  information to industry and those that support
  the industry
• Economic Reports drafted for 10 Oregon fisheries
• Production to be complete 3/31/08
• 10,000 Sponsorship to be secured 4/15/08

34
Progress Toward Milestones

• 5. Assist Seafood Businesses Develop New
  Value-add Products
• Weve provided product and market development
  services to 12 Oregon seafood businesses. Four of
  these businesses have secured new
  markets/accounts as a result.
• Distribution Systems Assessment
• Assessment team has been identified and contacted
• Project to start April, 2008

35
Outstanding Achievements

• 350,000 grant received from EDA
• Hired two new staff and upgraded facility and
  equipment
• Graduate students are actively engaged in all
  research projects and product development
  services
• NWFPA Trade ShowSeafood Connection

36
Food Processing Initiative

• Rick Fisch, Managing Director,
  Northwest Food Processors
  Innovation Productivity Center

37
Food Processing Initiative Summary

• Jump-starts the Northwest Food Processors
  Innovation Center (IPC) as a new knowledge
  sharing resource to expand the economic vitality
  of Oregons third largest manufacturing sector
  employer.
• Reaches out to Oregon food processing companies
  and their cluster to help measurably improve
  innovation, productivity and talent pipelines,
  which lead to enhanced global competitive
  position.
• Promotes technology transfer to industry from R
  D institutions
• 2007-2009 State Funding 3.432 million

38
Seven Month Progress Toward
Milestones

• Internal Governance six milestones
  all completed 12-31-07
• Established 501(c)(3) non-profit legal entity
• Negotiated 250K bridge loan for first four
  months of limited operation
• Established office facilities, including
  satellite office at the Food Innovation Center
• Hired and trained five staff members

39
Milestone Progress Continued
B. Project Goals 10 Milestones

• Innovation Technology metrics
• Assessment Tools
• Web-based list of technology providers
• Web-based new ideas and technologies for
  commercialization
• Technology Productivity Advisor Plans

• Completed 2-1-08 on time
• Completed 2-1-08 on time
• Due 6-30-08 on target
• Due 6-30-08 on target
• Completed 2-1-08 on time

40
Milestone Progress Continued
B. Project Goals 10 Milestones continued

• Performance metrics for productivity
• Continuous Improvement Process /Productivity
  Training (1,094 educated/trained)
• Leadership competency standards for productivity
  innovation
• Recruiting strategies for industry leadership
• Productivity innovation curricula to training
  providers

• Completed 12-30-07 on time
• Due 6-30-09 on target
• Due 6-30-08 on target
• Due 9-30-08 on target
• Due 9-30-09 on target

41
Milestone Progress Continued
C. Four Aspirational Milestone Goals

• 10 productivity projects with projected 2.6
  million annualized savings
• 15 additional productivity projects with 3.9
  million projected savings
• Add or retain 55 direct jobs with 1.94 million
  wages benefits
• Add or retain total of 148 direct jobs with 5.92
  million wages benefits

• Due 7-1-08 Contract extended 6 months
• Due 7-1-09 Contract extended
  6 months
• Due 7-1-08 Contract extended 6 months
• Due 7-1-09 Contract extended 6 months

42
Outstanding Achievements

• Developed national model for an industry-driven
  private-public Innovation Productivity Center
  infrastructure and coalition
• Expanded hub spoke partner relationships
• Established first-time industry relationships
  with PNNL and INL which conduct 1.4 billion in
  annual research
• Conducted visits to 18 OR food plants in five
  areas of the state (including Astoria, Portland,
  Salem, Medford and Boardman). Discussed
  improvement opportunities with 10 of those
  companies
• Piloting a Green Energy Management System by
  three Oregon companies (measures and displays
  energy consumption vs. production

43
Manufacturing Research Development

• Don McClave, PSU
• Bruce Schafer, OUS

44
Summary of Initiative

• To ensure that the manufacturing and metals
  industry, employing 1 of every 7 Oregon workers
  has the access to equipment, technology and
  skilled faculty to provide the means to build on
  its reputation for innovation and global
  competitiveness

44
45
Progress Toward Milestones

• Hire two new faculty members by July 2009
• Search committee formed
• Both searches will be underway by April 1
• Both expected to be filled by July 2009
• Generate 50 increase applied research from
  federal sources by July 2010
• Should be very achievable based on
• New and existing faculty
• Increased connections to industry

45
46
Progress Toward Milestones(continued)

• Generate 500K increase in company match for
  applied research by July 2009
• On track to reach this ambitious objective
• Materially contribute to the development of 10
  new products or process innovation by July 2011
• Added faculty make this achievable
• Generate 10 increase in current PSU
  mechanical/civil and materials engineering
  enrollment by July 2012 (vs. year ending July
  2009)
• Additional faculty allow addition course sessions
  making this objective achievable.

46
47
Issues of Note

• Newly-established Institute for Materials and
  Manufacturing Research will
• coordinate PSUs participation
• Facilitate participation of research in related
  disciplines
• Support growth of initiative
• Likely that requests for future biennia will
  include participation by UO and OIT as well as
  others

47
48
Oregon Wave Energy Initiative

• David Gibson

49
Summary of Initiative

• Serve as the clearinghouse for the wave energy
  industry
• Increase public awareness and align stakeholders
• Direct environmental, economic and social studies
  and projects
• Prove new technologies
• Promote Oregon as industry leader
• Establish wave energy industry with new jobs, new
  companies and new State revenues

49
50
Progress Toward Milestones

• Public Awareness
• Local, national and international presentations,
  and sponsored coastal outreach
• Environmental Studies
• Grey whale migration inventory
• New technologies
• OSUs successful deployment
• Job Growth
• Finavera Renewables located its Ocean Energy
  headquarters in Oregon employing 5 new staff

50
51
Outstanding Achievements

• Sponsored Ecological Effects Conference in
  Newport, OR
• Represented Oregon and the US at International
  Wave Energy Conference
• Oregons first commercial federal license
  application near completion
• Initiated partnerships with federal energy
  agencies
• Hiring full time professional staff
• Leveraged 50 of Initiatives investment
• Directing investment in OSUs National Wave
  Energy Center

51
52
Issues to Note

• Environmental challenges and increased scope
  (e.g. multi-year monitoring, technology/study
  improvements, etc.)
• Utility integration (e.g. exchange programs,
  forecasting)
• Workforce development
• Establishing research and development priorities
  (e.g. anchoring/mooring, OM)
• State/Federal regulatory coordination
• Federal liaison and leveraging opportunities

52
53
Committee Updates

• 1. Commercialized Research
• (Rich Linton)
• 2. Emerging Industries
• (Courtney Warner)
• 3. Established Industries
• (Terry Oftedal)
• 4. Capital and Business Formation
• (Gordon Hoffman)

54
Business and Capital Formation Committee
Update February 13, 2008 Gordon Hoffman
55
Seed Early Later
Business and Capital Formation Committee
Rich Bader
Bill Campbell
Steve Rice
Money
Gordon Hoffman
David Almodovar
Pat Becker
Jim Huston ?
Matt Donegan
Don Gerhart
Deals
Paul Gulick ?
Tim Stout
56
Objectives for Committee Work

• Broad Focus no pre-conceived notions
• Start by educating ourselves on the data
  regarding business and capital formation in
  Oregon
• Compare ourselves to other regions
• After we have generated enough data we can
  identify the states strengths and weaknesses
• Then Mind the Gaps and create recommendations

57
Timeline for 2008

• Jan-June 2008 Educational period including
  monthly meetings designed to find data on the
  investment and deal spectrum of the state.
• June-Sept. 2008 Create map of the Oregon
  opportunities for capital and deal flow and
  identify areas of possible legislative action for
  2009 Innovation Plan. All legislative proposals
  have to be vetted and completed by Sept. to be
  included in Innovation Plan
• Sept.-Nov. 2008 Identify further areas of
  weakness and develop recommendations for 2009
  implementation.

58
Next Steps

• Figure out what research is already out there
  or being completed
• We dont want to recreate the wheel
• Identify the resources we will need to complete
  the map of business and capital formation for
  Oregon

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Public Comment
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On to the Reception!