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National Science National Science Foundation Foundation

Engineering Directorate Engineering Directorate

Industrial Innovation & Industrial Innovation & Partnerships DivisionPartnerships Division

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Overview

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

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National Science Foundation

Created: 1950 Federal Agency: Independent Total Budget FY 2007:$5.92 B

» FY 2008: $6.43 B (Request) Director and Deputy Director: Presidential

appointees Employees:1,200

Intergovernmental Personnel Act (IPA): 1/3 Federal service appointments: 2/3

Supports: Basic research and education Grant Mechanism: Merit-based review

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NSF Mission & Vision 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

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DirectorDr. Arden Bement

Organizational Structure

Directorate forEngineering

Directorate forComputer and

InformationScience andEngineering

Directorate forGeosciences

Directorate forEducation and

HumanResources

Directorate forMathematicaland Physical

Sciences

Directorate forSocial,

Behavioral,and Economic

Sciences

http://www.nsf.gov

National Science Board Office of theInspector General

Deputy DirectorDr. Kathie Olsen

Office of International Science and Engineering

Office of Equal Opportunity Programs

Office of Integrative Activities

Office of Budget, Finance, and Award Management

Office of Information and Resource Management

Office of the General Counsel

Office of Legislative and Public Affairs

Directorate forBiologicalSciences

Office of Cyberinfrastructure

Office of Polar Programs

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Directorate

FY 2006 Actual

($M)

FY 2007Plan($M)

FY 2008Request

($M)

FY 2008 Request

Change over FY 2006 Actual

($M)

Change overFY 2007

Request ($M)

Amt % Amt %

  BIO $580.90 $607.85 $633.00 $52.10 9.0% $25.15 4.1%

  CISE $496.35 526.69 574.00 77.65 15.6% 47.31 9.0%

  ENG (less SBIR/STTR) $486.01 519.67 566.89 80.50 16.6% 47.22 9.1%

  SBIR/STTR $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%

Research & Related Activities $4,449.25 $4,765.95 $5,131.69 $682.44 15.3%$365.7

4 7.7%

NSF Budget for Research & Related Activities by Directorates

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Engineering Directorate

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Emerging Frontiers in Research and Innovation

(EFRI)

Chemical, Bioengineering,Environmental, and Transport

Systems(CBET)

Civil, Mechanical, and

ManufacturingInnovation

(CMMI)

Electrical, Communications

and Cyber Systems(ECCS)

EngineeringEducation and

Centers(EEC)

IndustrialInnovation andPartnerships

(IIP)

Directorate for EngineeringFY 2008

Office of the Assistant DirectorDeputy Assistant Director

Program Director for Diversity &Outreach

Office of the Assistant DirectorDeputy Assistant Director

Program Director for Diversity &Outreach

Senior AdvisorNanotechnologySenior Advisor

Nanotechnology

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Directorate FY 2007 ActualFY 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

Research & Related Activities $4,758.44 $4,821.47

NSF Budget by Research DirectorateDollars in Millions

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ENG and NSF Funding RatesResearch Grants

EN

G P

rop

os a

l s a

nd

Aw

ard

sF

un

din

g R

ate Percen

t

0

1000

2000

3000

4000

5000

6000

7000

8000

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007Plan

FY 2008Projection

0%

5%

10%

15%

20%

25%

30%

35%

40%

ENG Proposals ENG Awards ENG Funding Rate NSF Funding Rate

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Industrial Innovation and Partnerships Division

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Industry/UniversityCooperative

Research CentersRathindra DasGupta

Glenn Larsen Alex Schwarzkopf

Industry/UniversityCooperative

Research CentersRathindra DasGupta

Glenn Larsen Alex Schwarzkopf

Partnerships

for InnovationSara Nerlove

Partnerships

for InnovationSara Nerlove

Grant Opportunitiesfor AcademicLiaison with

IndustryDonald Senich

Grant Opportunitiesfor AcademicLiaison with

IndustryDonald Senich

Office of IndustrialInnovationSBIR/STTR

Office of IndustrialInnovationSBIR/STTR

Industrial Innovation and Partnerships

Division DirectorKesh Narayanan

Division DirectorKesh Narayanan

• 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

• 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

•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

•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

Senior AdvisorJoe HennesseySenior AdvisorJoe Hennessey

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The SBIR/STTR Program

Small Business Innovation Development Act of 1982

Congress designated 4 major goals

Stimulate technological innovation in the private sector

Use small business to meet federal R&D needs

Foster and encourage participation by minorities and disadvantaged

persons in technological innovation

Increase private-sector commercialization innovations derived from

federal R&D

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DOD SBIR/STTR HHS SBIR/STTR NASA SBIR/STTR DOE SBIR/STTR NSF SBIR/STTR ~$108M DHS SBIR USDA SBIR DOC SBIR ED SBIR EPA SBIR DOT SBIR

SBIR / STTR Participating Agencies

TOTAL ~ $2.5 B FY 2008TOTAL ~ $2.5 B FY 2008

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SBIR Program Details Funds set-aside for SBIR

~$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

Grantee must be Defined as a Small Business: Set up as a profit organization with 500 or few employees

Special STTR Requirements 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

Three-Phase Approach: 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)

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Market Driven Solicitation Topics

SBIR (only) solicitation currently opened. NSF 08-

548. Closes June 10, 2008.

SBIR topics:

Biotech and Chemical Technologies (BC)

Electronics, Components and Engineering Systems (EL)

Software and Services

STTR (only) solicitation will be released in the Fall

of 2008

STTR topics:

To be Determined (most likely

Materials/Manufacturing)

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Program Information

NSF is not the final customer

NSF does not buy product/process or software

or intellectual property

NSF wants grantees to successfully

commercializecommercialize high-tech research

Investment $ beyond SBIR is needed

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Supplements

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”.

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Strategic Partner Venture capital firm Angel investor or Network State Government Local Government Non-SBIR Federal Government Any combinations of the above!

Phase IIBThird Party Investor

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Phase IIB Matching Fund Trend

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

-0.51.01.52.02.53.03.5

Investment ($) NSF/IIP Match ($) Leverage

Investment ($) $10,629,692 $43,514,150 $57,812,521

NSF/OII Match ($) $5,314,846 $14,143,797 $18,389,707

Leverage 2.0 3.1 3.1

2004 2005 2006

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MatchMaker Program

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

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Industrial Companies in MatchMaker

ATMI General Motors Procter &Gamble Dupont General Electric Dow Chemical Intel

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Industrial Companies in MatchMaker (cont’d)

Colgate Palmolive Rohm & Haas Praxair Texas Instruments Air Products and Chemicals NEC Caterpillar

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MatchMaker Program Venture Capital Partners

ARCH Venture Partners Mohr, Davidow Ventures Alameda Capital, LLC Taproot Ventures The Carlyle Group Paladin Capital Group Quantum Venture Partners

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MatchMaker Program Venture Partners/Angels

AM Benjamin Services Venture Investors JK&B Capital ITU Ventures Draper Atlantic Technology Tree (Houston Angels) Atlanta Technology Angels

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Partnering Success for Companies

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 MatchMaker program.

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SBIR/STTR Grantees

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Sensant(Phase IIB)

High Quality Dielectric films forNovel Medical Ultrasound Probes

Develop transducers that havestable charge trapping behavior

• Develop test structures and infrastructure to measure charging in suspended membrane

•Demonstrate stable high e-field behavior

•Demonstrate acceptable MTBF with zero dead elements

Outside Investment

Angel Investors: $1,250,000

Acquired by Siemens Medical

Silicon wafer

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Grant Number: OII-0548731Web-Based Manufacturing Performance Management

InvisticsTom Knight

Impact Improve U.S. global manufacturing

competitiveness Sell software and services Create wealth for investors

Novelty Web-services software Unique optimization algorithms for “high-

mix” manufacturing Extends ERP/MRP for Lean

Lineage Initial sales to customers:

Raised $8+ mil. venture capital Collaboration with MIT/GATech

Company Mission Value: Help customers ship more product,

on-time, with 50% less inventory Team: Lean Mfg. thought-leaders Exit Strategy: Acquisition by a larger

software company

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Thank you!

Information websites:www.nsf.gov/eng/iip/sbir

www.nsf.gov/eng/iip/sbir/matchmaker.jsp