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AnnualSummit October 21 – 24, 2012

#UEDASummit

Chuck ShoopmanSummit Committee ChairmanUniversity Economic Development Association

#UEDASummit

Alice RolliAssistant Commissioner, StrategyState of Tennessee

 Power in Regionalism, Tennessee Department of Economic & Community Development 

UEDA 2012 Conference 

Agenda 

• About the Department & Direction • Universities as Partners in Tennessee’s Economic Development Strategy:  – Cluster Strategy – Entrepreneurship – Technology Transfer & Commercialization 

• Questions 

Mission & Vision 

The Department of Economic & Community Development serves to execute Governor Bill Haslam’s goal to make Tennessee the No. 1 location in the Southeast for high quality jobs. 

Top-to-Bottom Review 

45 Days

62Interviews with stakeholders  42

Interviews with ECD staff

16Pro bono 

consultants & advisors

297Roundtableparticipants

878ECD investments 

analyzed

12Interviews with national experts

Jobs4TN Key Strategies

Ultimate GoalTennessee Becomes #1 in the Southeast for High-

Quality Jobs

Strategy #1Prioritizing Key Clusters & 

Existing Businesses

Strategy #2Establishing Regional “Jobs Base Camps”

Strategy #3Investing in Innovation

Strategy #4Reducing Business 

Regulation

Advanced Manufacturing & Energy Technologies

•  Motors, Generators & Batteries•  Refrigeration & Heating Equipment

•  Appliances•  Lighting Fixtures & Electrical Parts

•  Turbines & Turbine Generators•  Clean Energy Products

•  Electric Services

Automotive

•  Motor Vehicles•  Automotive Parts

•  Automotive Components•  Forgings & Stampings

•  Flat Glass•  Production Equipment •  Small Vehicles & Trailers

•  Tires & Inner Tubes

Chemical Products & Plastics

•  Intermediate Chemicals & Gases•  Packaged Chemical Products•  Other Processed Chemicals

•  Refractories•  Ammunition

•  Plastic Materials, Resins & Products•  Paints & Allied Products

•  Synthetic Rubber•  Carbon Fiber & Advanced Composite

Transportation, Logistics, & Distribution Services

•  Air & Land Transport•  Transportation Arrangement & 

Warehousing•  Merchandise, Apparel, Accessories, Food Products, Farm Material & Supplies 

Wholesaling•  Catalog & Mail-order

•  Airports & Bus Terminals•  Trucking Terminals

Healthcare

•  Surgical Instruments & Supplies•  Dental Instruments & Supplies•  Medical Devices & Equipment

•  Diagnostic Substances•  Healthcare Services

•  Healthcare IT•  Biological and Biotechnology Products

•  Health Insurance Products

Business Services

•  Headquarters•  Data and Call Centers

•  Financial Services•  Online Information Services

•  Computer Services & Programming•  Facilities Support Services

Note: Only a subset of existing Tennessee companies in each cluster are listed above

TN Key Clusters 

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Confidential Draft

Best Practice Partnerships

Chemicals Products & Plastics  Automotive  

INCITE & LaunchTNThe OpportunityThe Challenge

• Only 2.5% of R&D in Tennessee is funded by private industry

• Tennessee’s patents per worker are only two-thirds of the national average

• Only 7 companies were launched in 2010 with intellectual property developed at Tennessee research institutions

• Only 28 of 140 licenses from Tennessee research institutions are owned by Tennessee-based companies

• Innovation Coordination: Identifying synergies between all of Tennessee’s innovation assets

• Commercialization: Assisting researchers and companies in commercializing early stage technologies

• Entrepreneurship: Supporting entrepreneurs in all areas of the state as they work to launch companies

• Early Stage Capital: Helping early stage companies find capital sources that allow the companies to remain located in Tennessee 

• Governor Haslam announced a $50MM new initiative in April 2011: INCITE, LaunchTN & 9 Regional Accelerators were formed out of that initiative 

Startup & Tech Transfer Opportunities 

A Five-Year Initiative to Make Tennessee

A National Innovation Leader

DRAFT ONLY

Top 5 Growth 1999 2002 2007 2010

Michigan 34 22 19 17

Rhode Island 29 23 15 16

Maryland 11 5 3 3

New York 16 11 10 10

North Dakota 45 47 37 36

Top 5 Decline 1999 2002 2007 2010

Tennessee 31 34 36 41

New Mexico 19 25 33 32

Hawaii 26 38 41 40

Kentucky 39 42 45 44

Alabama 44 45 46 47

Opportunity

While Tennessee’s overall index ranking has decreased over time, there are many signs that significant opportunity exists including 

the fact that Tennessee ranks:

#8 in federally funded research

#15 in entrepreneurial activity

# 23 in healthcare IT

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Challenge & Opportunity

Source:  Kauffman Foundation / ITIF New Economy Index, 1999-2010

State New Economy Index Rankings

Institution 2010 Research

Oak Ridge National Lab $1.5 B

Vanderbilt $550 M

St. Jude $302 M

University of Tennessee $280 M

Board of Regents $80 M

Federal R&D Research

DRAFT ONLY

Venture Capital Investment (2010-11)

 Select States  # Deals $ Invested

 Colorado 186 $1,102,170,100

 Pennsylvania 306 $1,061,876,700

 Virginia 131 $1,006,491,100

 North Carolina 112 $843,270,200

 Maryland 148 $697,786,100

 Georgia 121 $673,492,000

 Florida 90 $518,572,200

 Ohio 119 $387,635,900

 Indiana 31 $257,896,100

 Missouri 36 $192,648,000

Tennessee 57 $166,977,200

 South Carolina 11 $42,738,000

 Louisiana 11 $39,814,900

 Kentucky 21 $25,212,900

 Arkansas 2 $5,000,100

 Alabama 4 $4,115,000

Key Indicator 2010Change 

from 2006 to 2010

% Change

Total Research Expenditures

$2.5 B + $700 M + 38%

U.S. Patents Issued

128 + 51 + 66%

In-State Startups Formed

7 + 1 + 16%

Licensing Revenue

$10 M  - $1.9 M - 16%

Technology Transfer & Commercialization

13

Commercialization & Venture Capital Data

Source:  Pricewaterhouse Coopers / Launch Tennessee Research

DRAFT ONLY

14

LaunchTN Goals & Metrics

Metric 2011 2012 2013 2014 2015 2016

Jobs Created 272 500 750 1,000 1,500 2,000

$ venture capital raised by Tennessee companies ($M)

$103 $120 $140 $160 $190 $220

$ venture capital raised by accelerator companies($M)

$5 $10 $16 $24 $32 $40

# startups based on IP from research institutions in Tennessee

7 12 17 22 22 22

# licenses to Tennessee companies from research institutions in Tennessee

42 57 72 87 102 102

# in-state stakeholders touched 1,000 3,000 4,000 5,000 5,000 5,000

# out-of-state stakeholders touched 50 200 300 400 500 600

Regional Business Accelerators

15

DRAFT ONLY

Accel-Now Northeast TN

ETRAC Knoxville, TN

Company Lab Chattanooga, TN

UC Success NowUpper Cumberland

Entrepreneur Center Nashville , TN

SMTEC Southern Middle TN

Northwest Accelerator Northwest TN

Entrepreneur Development Center Southwest TN 

Memphis Regional AcceleratorMemphis, TN

9 Regional Accelerators  18+ Colleges & Universities supporting in a variety of ways

• Providing administrative resources & space for accelerators

• Sourcing mentors  via business school alumni networks • Providing dorm rooms for incubator participants • And more…

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16

SBIR / STTR Grantwriting Support

• Direct Grant writing Services

• Available now!

• Highly subsidized for the strongest applicants

• Email jill@launchtn.org to apply

• Lunch & Learns(schedule available Nov. 2012)

• Grantwriting Workshops(schedule available Nov. 2012)

• Agency-Specific Webinars(schedule available Nov. 2012)

• SBIR/STTR Resource Website (launching Nov. 2012)

Mark Henry

CEO, Grow Emerging Companies

Assisted with 1,800+ SBIR/STTR proposals

2x national win rate

NATION’S BEST CONSULTANT

DRAFT ONLY

17

Early Signs of Success!

Southeast Entrepreneurship ConferenceSeptember 12-13, 2013 [Tentative]

Nashville, Tennessee

Agreements Executed  #

Licenses and Options 19

Material Transfer 207

Confidentiality 29

Inter-Institutional 3

Disclosures & Patents #

Technologies Disclosed 29

U.S. Patents Issued 7

Source: Vanderbilt University Center for Technology Transfer and Commercialization; data year-to-date for FY 2013

DRAFT ONLY

18

Southeast Entrepreneurship Conference

Southeast Entrepreneurship ConferenceJune 2013 [Tentative]Nashville, Tennessee

‐ 1,000+ investors, entrepreneurs, mentors and inventors from across the Southeast

‐ Four Tracks: Digital media, healthcare services, medical devices and diagnostics, and technology

‐ Presentations by leading CEOs and venture capital investors from around the country

‐ Concerts at the Ryman Auditorium, Cannery Ballroom and Mercy Lounge featuring Nashville artists – dates fall between CMA Fest & Bonnaroo 

‐ Southeast Business Plan Competition

 Power in Regionalism, Tennessee Department of Economic & Community Development 

Questions 

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AnnualSummit October 21 – 24, 2012

#UEDASummit

Bill MichaleryaPresident, University Economic Development Association

#UEDASummit#UEDASummit

AnnualSummit October 21 – 24, 2012