Innovation Works’ (IW) Research Commercialization Program is a collection of initiatives that utilizes university partnerships to facilitate the commercialization of innovative technologies and promote the creation of high growth-potential companies in southwestern Pennsylvania. The program provides funding and strategic business support to help determine the commercial potential of university innovations; helps rapidly transform very early-stage startups into revenue-positive companies through the application of innovative business growth strategies; and provides assistance to entrepreneurs working outside of the university setting to help them overcome commercialization challenges. Since program inception, IW has awarded 89 translational research grants totaling over $1.3 million and has provided mentorship and business support services to 49 entrepreneurial teams working to commercialize technologies. The teams have in turn formed 17 companies, created more than 60 jobs, launched 36 products; and attracted over $110 million in follow-on funding. This program is highly scalable, having already been adapted within Innovation Works for use in other research institutions and industry sectors. Read the Case Study: http://universityeda.org/value-to-members/best-practice-sharing/awards-of-excellence/awards-of-excellence-2013-finalists/research-commercialization-program/

1. Innovation Works
Research Commercialization Program
Presented by Cole Wolfson
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2. Innovation Works
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8th most active early-stage investor in U.S. over the last 8 years
Invested nearly $62M in more than 400 companies since 1999
Companies have raised more than $1.4B in follow-on funding
IW companies:
– Employ more than 18,000 people
– Generate more than $3.3B in annual revenues
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Nationally recognized best practice organization
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PA Economic Development Assoc. Partner of the Year Award – 2011
EDA Excellence in Regional Economic Development Award – 2008
SSTI Excellence in TBED Award – 2008 & 2009
IEDC Excellence in Economic Development Award – 2008, 2009, 2011, 2012, 2013
Federal Lab Consortium Mid-Atlantic Technology Transfer Award – 2011
National Governor’s Association Featured Best Practice – 2012
IW is the Ben Franklin Technology Partner of SWPA
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3. Need Being Addressed
• SWPA is home to universities and research institutions that attract over $1B in federal research
dollars annually
• CMU and Univ. of Pitt have been awarded over 17,500 research grants and have registered nearly
1,000 patents in the last 10 years
• Systemic factors are primary
impediment: federal
research dollars fund
research, but can’t be used
to support
commercialization
300%
Percent Growth
• Despite high volume of IP
creation, tech transfer
offices at universities and
research institutions lack the
resources required to fully
support commercialization
efforts
250%
200%
289%
150%
100%
50%
87%
126%
78%
0%
University
University
University IW Deal Flow
Research
Patent
Startups
(5-year
Expenditures Applications Initiated (10growth)
(10-year
(10-year
year growth)
growth)
growth)
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4. Research Commercialization Program
• Provide funding and strategic business support to help
determine the commercial potential of university innovations
• Apply innovative business growth strategies to rapidly
transform very early-stage startups into revenue-positive
companies
• Provide assistance to entrepreneurs working outside of the
university setting to help them overcome commercialization
challenges
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5. Activities
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Direct grants from $25,000 to $100,000
Mentorship from Executives-in-Residence
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Complement work of Tech Transfer offices
Mentorship from business and product mentors
Teach agile innovation methodologies
Technology review
Create a culture of entrepreneurship
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6. Benefits/Impacts
CMU - Direct Spin-outs Per Year
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Awarded 89 translational research grants
totaling over $1.3M
Provided mentorship and business
support to 49 entrepreneurial teams
working to commercialize technologies
Hosted 16 agile innovation workshops
Formed 17 companies
Created more than 60 jobs
Launched 36 products
Attracted over $110M in follow-on
funding
Before IW
Commercialization
Program Launched:
Avg = 3.6/yr
After IW
Commercialization
Program Launched:
Avg = 10/yr
14
12
10
8
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4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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7. Scalability, Replicability & Sustainability
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Scalable across industries
– Energy, robotics, life sciences, IT, advanced
manufacturing, etc.
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Replicable across institutions
– From universities to federal labs to private
sector startups
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Sustainability through investment
– RCA creates deal flow for IW
– Returns on investment fund future program
activities
– Consulting agreement with institutions
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8. Alignment with Regional Economic
Strategies
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SPC 2040 Transportation and
Development Plan: “The region will
proactively support the emerging role
of colleges and universities in
economic development.”
1,400,000
1,350,000
1,150,000
1,100,000
1,050,000
1,000,000
950,000
00
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900,000
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Revitalization after the collapse of heavy
industry
Hub of innovation and entrepreneurship
Diversified economy
1,200,000
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1,250,000
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Regional positioning:
Lost 100,000 jobs between 1980 and 1983;
took 10 years to recover
1,300,000
70
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Universities have stated that
commercializing more technologies is
important, but in today’s economic
environment finding additional funding
dollars for these activities can be
difficult
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9. Contribution to Higher Education Culture
& Economic Wellbeing of Region
• Instill culture of entrepreneurship in higher
education
• Partner with region’s universities and labs
for programs
• Universities serve as feeder for other IW
initiatives
• IW’s economic impact in region is
impressive
– $1.4B in follow-on funding
– 18,000 people and $3.3B in annual revenues
– 3.5:1 return on each tax dollar provided
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10. Thank You!
Questions?
Cole Wolfson
cwolfson@innovationworks.org
412-894-9526
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