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Fiscal Year 2012 Business Plan TABLE OF CONTENTS OSTRaD Board of Directors ....................................................................................................... 1 Purpose ................................................................................................................................... 2 Mission ................................................................................................................................... 2 Vision...................................................................................................................................... 2 FY 2012 Goals and Objectives .................................................................................................. 2 Strategy .................................................................................................................................. 5 Programs ................................................................................................................................ 6 Governance and Operations OCAST Structure ......................................................................................................... 12 Management Philosophy and Structure ........................................................................ 12 Professional Service Contracts ..................................................................................... 16 Standing Advisory Committees .................................................................................... 16 Finance ....................................................................................................................... 18 Appropriation History ................................................................................................. 18 Planning Comprehensive Planning ............................................................................................. 19 Financial Planning ....................................................................................................... 21 Program and Service Planning ..................................................................................... 21 Five-Year Appropriation History by Program ........................................................................... 22 Sources and Uses of Revenues ................................................................................................ 22 This publication was issued by the Oklahoma Science and Technology Research and Development Board as authorized by Title 74 of the Oklahoma Statutes, Section 5060.8. Approved by the OSTRaD Board of Directors on June 21, 2011. 1 BOARD OF DIRECTORS OCAST is a state agency governed by a 21-member board of directors consisting of the secretary/executive director of the Oklahoma Department of Commerce, the chancellor of the Oklahoma State Regents for Higher Education, the secretary of agriculture, the president of the University of Oklahoma, the president of Oklahoma State University, the president of a private university, the president of a regional university, twelve members appointed by the governor and two nonvoting legislators representing the house and the senate. Members appointed by the governor serve with the consent of the senate and generally serve four-year terms. Mark Ashton, J.D. Ashton, Wisener and Munkacsy Lawton Galynn Beer Sales and Budget Director Agro-Culture Liquid Fertilizers Guymon David Boren, J.D. President University of Oklahoma Norman V. Burns Hargis, J.D. President Oklahoma State University Stillwater Rhonda Hooper President and CEO Jordan Associates Oklahoma City Mike Jackson Oklahoma House of Representatives Enid Glen D. Johnson, J.D. Chancellor State Regents for Higher Education Oklahoma City Clark Jolley, J.D. Oklahoma State Senate Edmond W. Hershel Lamirand III President and CEO Oklahoma Health Center Foundation Oklahoma City David R. Lopez Secretary of Commerce and Tourism Oklahoma Department of Commerce Oklahoma City Timothy Mather, Ph.D. Director of Research Administration Oklahoma Medical Research Foundation Oklahoma City Chelle Melton, D.Ph. Clinic Pharmacy Guymon Dayal T. Meshri, Ph.D. President and CEO Advance Research Chemicals Inc. Catoosa Jim Reese Secretary of Agriculture Oklahoma Department of Agriculture Oklahoma City Karl Reid, Sc.D. Dean of Engineering, Architecture and Technology Oklahoma State University Stillwater Terry L. Salmon, Ed.D. (Vice Chair) President and Founder Computer System Designers LLC Oklahoma City E. R. “Tracy” Shirley III Vice President and CFO Harrison Gypsum Company Norman Edward L. Shreve, Ph.D. Retired CEO and Businessman Stillwater Steadman Upham, Ph.D. President University of Tulsa Tulsa Sherri Wise (Chair) President Osteopathic Founders Foundation Tulsa 2 PURPOSE The Oklahoma Center for the Advancement of Science and Technology (OCAST) was established in 1987 as the state’s agency for technology-based economic development. OCAST’s mandate is to “expand and diversify Oklahoma’s economy and provide new and higher quality jobs for Oklahomans” by encouraging “. . . the development of new products, new processes and whole new industries in Oklahoma.” (O.S. 74, Sections 5060.1a and 5060.2A) MISSION To foster innovation in existing and developing businesses by supporting basic and applied research by facilitating technology transfer between research laboratories and businesses by providing seed capital for innovative firms in the development of new products or services by helping Oklahoma’s small and medium-sized manufacturing firms become more competitive through increased productivity and modernization (O.S. 74, Section 5060.3) VISION OCAST funds cutting-edge science and technology through processes that are recognized nationally and internationally for demonstrating excellence, objectivity and economic impact. OCAST’s vision is continued growth and vitality of its basic premise of facilitating collaborations between state government, universities, start-up companies and established large-scale firms to develop an entrepreneurial environment which supports technology-based economic development. OCAST’s strategy includes technologies such as biosciences, information technology, sensors and electronics, advanced materials, energy and alternative fuel sources. Achieving this vision will result in continued growth of advanced technology companies in the state thereby increasing Oklahoma’s global competitiveness, per capita income and quality of life. FISCAL YEAR 2012 GOALS AND OBJECTIVES Current economic uncertainties will likely have an impact on OCAST’s goals and objectives. The staff and management of the agency have experience in managing through times of plenty and the cyclical times of uncertainty. In highlighting the following goals and objectives, we are keenly aware of the need to be agile and creative in adapting to change. At the same time, we must be relentless in our dedication and steadfast in our duty to our stakeholders and the goals of technology-based economic development. Goal 1: Increase the impact of OCAST’s programs Objectives 1. Continue to pursue additional funding through grants, cooperative agreements and other opportunities to enhance and extend OCAST’s core programs and mission. 2. Initiate appropriate strategies to educate, inform and develop consensus among stakeholders on strategically positioning Oklahoma to compete successfully in a research and technology-based economy. 3. In response to client requests, maintain a year-round open solicitation for the Intern program with one application submission date per quarter. 3 4. Achieve an OCAST appropriation sufficient to meet market demand for technology-based economic development programs and support, as defined by OCAST’s advisory committees, affiliate organizations, clients, stakeholders and board. 5. Continue to review OCAST programs for potential updates, modifications and opportunities to further streamline program operations to ensure they: a. keep pace with the dynamic nature of research and advanced technology businesses; b. operate with optimal effectiveness and efficiency; and c. respond to new opportunities, within the context of budget and statutory constraints. 6. Perform outreach to increase participation in OCAST programs by new companies and new principal investigators. 7. Conduct: a. one (1) $4 million Health Research competition b. two (2) OARS competitions not to exceed $4 million c. one (1) $1.5 million ONAP competition d. one (1) $750,000 Plant Science competition e. four (4) Intern Partnership competitions not to exceed $480,000 f. annual performance reviews for previously funded projects 8. Conduct workshops to provide clients with information on writing more effective applications. 9. Conduct the annual Oklahoma Health Research Conference. 10. Continue to support i2E Inc. in meeting its FY 2012 objectives of managing the Oklahoma Technology Commercialization Center (OTCC) program, the OCAST Technology Business Finance Program (TBFP) and the Oklahoma Seed Capital Fund that includes a new concept fund component. 11. Continue to collaborate with university technology transfer offices, non-profit research foundations and federal laboratories to advance innovation and commercialization. 12. Continue to support the Oklahoma Manufacturing Alliance in meeting its FY 2012 objectives of assisting small- and medium-sized manufacturers to become progressively more competitive in their marketplace. 13. Continue to support the Inventors Assistance Service (IAS) in meeting its FY 2012 objectives in assisting inventors with navigating the invention process from idea to the marketplace. 14. Continue to support the Oklahoma Nanotechnology Initiative (ONI) in meeting its FY 2012 objectives. 15. Collaborate with i2E and other partner organizations to increase the number and quality of Oklahoma Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) proposals. Help prepare SBIR/STTR companies for commercialization through development and implementation of education, technical assistance, outreach initiatives and collaboration with commercial partners. 16. Through the OCAST-Tulsa office and in cooperation with the Manufacturing Alliance and i2E partners, become fully integrated into the economic development community of the northeast region of Oklahoma by: a. supporting growth and diversity in northeast Oklahoma’s economy; and b. increasing the number of applications to OCAST programs from the northeast region. 17. OCAST will provide administrative assistance as requested by the EDGE (Economic Development Generating Excellence) Board of Investors and the EDGE Fund Policy Board. 18. OCAST will provide administrative/fiscal assistance to the Governor’s Science and Technology Council as defined in Executive Order 2011-15. 19. Continue to enhance OCAST programs for greater impact across the state. Implement improvements to impact-reporting processes to provide a more comprehensive and demonstrable evaluation of OCAST’s programs. 20. Continue to expand and improve the efficiency of statewide program outreach activities. 4 21. Continue to meet with individual legislators and statewide elected officials to better acquaint them with OCAST clients and to inform them of the benefits of OCAST programs in advancing our state through science and technology. 22. OCAST will continue attending legislative committee meetings to raise awareness of the impact of pending legislation on existing OCAST programs. 23. OCAST will research technology-based economic development programs in other states in its quest for continuous process improvement. 24. Continue the contract compliance audits begun in FY 2011 to ensure OCAST contracts comply with all requirements set forth in the terms of the original contracts. Goal 2: Increase public awareness of OCAST’s impact on Oklahoma Objectives 1. OCAST will seek methods to expand audience acceptance of Oklahoma Innovations, heard each week on the OCAST Radio Network. The program, now in its 16th year, is produced and broadcast on the Clear Channel Communications Oklahoma flagship station KTOK. It will be our goal to maintain the program’s integrity while attempting to ensure a financially viable method for production and distribution to 11 radio station outlets. The program currently is heard on two stations in Tulsa and one each in Oklahoma City, Altus, Ardmore, Chickasha, Clinton, Duncan, Lawton/Ft. Sill, Woodward and Wichita Falls, Texas. 2. Technology Information Services staff will continue and sustain exemplary media relations to (a) fulfill a long-standing legislative directive to educate Oklahomans about the benefits of science and technology and (b) help provide lawmakers with information about OCAST programs and projects. In FY 2010 OCAST expanded media relations in Tulsa and northeast Oklahoma while continuing to satisfy media needs throughout the state. 3. OCAST will continually update the OCAST Web page to enhance public awareness of innovation through OCAST and to provide a portal for Oklahomans seeking access to OCAST programs. OCAST staff has developed an ongoing working relationship with the Department of Central Services to secure state-sponsored Web design and development to (a) satisfy 508 compliance (b) design an easily accessible and aesthetically pleasing Web site (c) include electronic applications to simplify access to OCAST programs (d) and expand the scope of OCAST’s services throughout the state. The Web page provides an additional tool to access Oklahoma Innovations. 4. OCAST will renew the contractual relationship with an in-state marketing firm to establish a branding process for OCAST to enhance the agency’s position as the leader in technology-based economic development. 5. OCAST will sponsor and conduct Oklahoma Science and Technology Month in cooperation with the state’s middle school and high school level science teachers and create a setting conducive to expanded involvement by educators at the local level. The year 2011 experienced program acceptance and the governor’s office supported and assisted OCAST in marketing the effort. 6. OCAST will seek opportunities to target specific geographic areas of the state where we will conduct activities to upgrade the level of media attention focusing on the value the agency brings to that specific area of the state. 7. Individualized marketing assistance will be available to established OCAST programs and initiatives. 8. OCAST has a relatively full suite of opportunities characterized by cooperating with other agencies and organizations to present a unified front. Such a position will show strength of Oklahoma’s commitment to advancing innovation and will keep lines of communication open between OCAST and its partners in the interest of fulfilling the OCAST mission. OCAST is an active member of the Oklahoma Rural Action Partnership Program sponsored by the Oklahoma Department of Commerce. 5 9. Ensure optimal benefit of OCAST’s collaboration in outside efforts to include, but not be limited to, The Journal Record Innovator of the Year and Senator Tom Coburn’s grant-writing workshops. Goal 3: Continue to implement OCAST process improvements Objectives 1. Review and improve the staff performance evaluation process in keeping with requirements of the state Office of Personnel Management. 2. Continue to promote an environment that results in a high performance team. 3. Continuously review processes and procedures to identify and implement efficiencies throughout the organization. 4. Maintain OCAST consolidated database and continue to incorporate historical data. 5. Enhance services delivered via the OCAST Web site to improve pre- and post-contract award processes, reduce paper handling and postage costs and streamline other business transactions for staff and clients. 6. Benchmark current best practices in research and technology-based economic development through staff participation in national, state and local organizations. 7. Develop and implement a contract compliance workshop for all recipients of OCAST program awards. Leverage outreach efforts through collaboration with affiliates, other government agencies and private organizations. 8. Encourage employee career development, including completion of required supervisory training. 9. Comply with external audits. 10. Continue to upgrade OCAST computer hardware and software as necessary to provide staff the tools and most efficient means to serve clients. 11. Continue development and implementation of an electronic applications process for all programs, through; a. a collaboration with OCAST customers including research institutions and advanced-technology companies and the Oklahoma Office of State Finance, and b. beta testing and evaluation with customers. 12. Validate the delivery of contract requirements by continuing post-contract award compliance reviews. 13. Maintain positive legislative relationships by continuing to respond to legislative requests within two business days. STRATEGY For Oklahoma to increase its competitive advantage and relevance in the 21st Century, it is imperative to support the process of discovery and development of new ideas, new technologies and technology transfer that result in commercialization and significant economic impact for our state and nation. OCAST’s strategy is to advance research and development that help Oklahoma and its industries compete in the global economy. Build on public and private sector strengths Provide leadership, information and assistance to enhance the ability of Oklahoma technology companies and researchers to compete in the global marketplace. Offer short-term financial incentives and capital access vehicles requiring external public and private sector co-investment, including concept and seed capital funding, to better position Oklahoma companies for success. Advance economic development by conducting and publicizing studies that call attention to improvements in technology policies and practices. 6 Provide funding based on merit Evaluate funding applications according to published procedures and criteria to ensure funds are awarded to applications with the greatest technical and commercial value. Utilize external peer review by recognized experts to make award determinations to promote objectivity and avoid conflict of interest to the greatest extent possible. Work with standing advisory committees to continue to refine and improve OCAST’s programs and external peer review process. Monitor and evaluate program performance on an annual basis to make certain tax dollars are spent as intended and produce measurable outcomes that maximize the return on the state’s investment. Leverage resources for greater results Work with partner organizations and stakeholders to leverage their resources to extend the benefit of the state’s investment. Build collaborations with private and public organizations to pursue federal and private foundation funding to benefit existing programs and fund new initiatives. Involve standing or ad hoc advisory committees in all planning efforts. Promote public and private partnerships and networks Continue to build on the Memorandum of Understanding between OCAST and the Oak Ridge National Laboratory and between OCAST and the Oklahoma City Air Logistics Center at Tinker Air Force Base to support research institutions and industry in Oklahoma through collaborative projects and resource sharing. Explore opportunities to create additional Memoranda of Understanding with other government organizations to encourage collaboration with Oklahoma’s research institutions and private industry, with the goal of improving technology transfer and increasing market opportunities. Work to re-establish the OCAST Centers of Excellence program and improve that program’s effectiveness through the incorporation of OCAST’s commercialization services and investment support. PROGRAMS OCAST develops, implements, evaluates and modifies programs and services designed to encourage and enable Oklahoma advanced technology entrepreneurs, researchers and small businesses to accomplish research and development, technology commercialization and technology application. Clients return to OCAST programs as often as necessary for assistance. The programs in the OCAST technology pipeline include: Oklahoma Health Research Goal and Strategic Objectives The health program addresses OCAST’s statutory mandate of supporting health-related research by allocating resources according to merit and leveraging private and federal resources while fostering public and private sector collaboration. Description The Health program competitively awards seed funds for one- to three-year research projects related to human health. Eligible applicants are Oklahoma universities and colleges, nonprofit research organizations and commercial enterprises. These awards enable researchers to gain expertise and produce data needed to obtain larger grants from other sources, including 7 federal agencies and national disease-related funding organizations, and to develop patents which can lead to new businesses. Researchers also benefit from OCAST’s annual health research conference which focuses on ways to assist commercial development of new products and services resulting from health projects. Performance Measures This program produces nationally competitive health science research. Private and federal funding attributed to health projects and the ratio of health support to private and federal support indicate the program’s effectiveness at securing capital for competitive research. The amount of intellectual property generated, licenses and royalties are an indication of the program’s impact on the state’s health science industry. Oklahoma Plant Science Research Goal and Strategic Objectives The plant science program addresses the statutory mandate of supporting basic and applied research in the field of plant sciences by allocating resources according to merit, promoting collaborations and leveraging federal and private resources. Description The plant science program competitively awards funds for basic and applied research related to plant science for one- to two-year periods based on technical merit, commitment of resources and, in the case of applied research, the potential for market success. Eligible applicants are Oklahoma businesses, institutions of higher education and nonprofit research institutions. The applied research awards require a minimum of one dollar matching support for each dollar awarded. Performance Measures Basic research projects – performance measures such as the amount of private and federal funding leveraged by plant science projects, the amount of intellectual property initiated and the anticipated value of patents, licenses and royalties resulting from these basic research projects measure program success. Applied research projects – performance measures include private and federal follow-on funding attributed to plant science projects, intellectual property, license royalties, jobs added/retained, payroll of jobs/retained, actual and projected gross sales, sales distribution and actual and projected cost-avoidance resulting from these applied research projects. R&D Intern Partnerships Goal and Strategic Objectives The intern program provides support for qualified research and development partnership projects that involve Oklahoma industry and Oklahoma institutions of higher education. It increases the pool of scientists, engineers, faculty and business entrepreneurs who can contribute to economic development in Oklahoma. Description Projects funded under this program must meet five requirements: (1) an Oklahoma institution of higher education or a business must be the fiscal agent; (2) OCAST funds must be equally matched from non-state appropriated funds; (3) the research must be performed in an applied research laboratory located at a firm, a nonprofit research institute or an institution of higher education; (4) the mentor must be from industry or be an academic with a documented success record of applied research and (5) an Oklahoma business must benefit. The award may be for one or two years. The external reviewers, a majority of whom reside out-of-state, have shown a preference for programs in which at least 75 percent of the funds (OCAST plus non-state 8 match) go directly to the interns as salary and fringe benefits. The remaining funds are used for principal investigator salary and fringe benefits as well as for supplies to run the program. Performance Measures The program produces commercially viable R&D. In addition, student and faculty interns gain or maintain their interest in remaining in Oklahoma, increase desire for additional technological education and provide measurable economic progress for the state. Oklahoma Applied Research Support Goal and Strategic Objectives The Oklahoma Applied Research Support (OARS) program addresses the statutory mandate of supporting applied research and technology development with significant commercial potential by allocating resources according to merit, promoting collaborations and leveraging federal and private resources. Description OARS competitively awards funds for one- to three-year projects from any technology area based upon technical merit, potential for market success and commitment of resources. The program requires a minimum of one dollar matching support for each state dollar awarded. Eligible applicants are Oklahoma businesses and universities, colleges or nonprofit research organizations that have industrial partners. The program gives preference to projects involving collaboration between research institutions and private industry. Performance Measures This program produces commercially viable R&D. Federal and private funding attributed to OARS projects and the ratio of OARS awards to private and federal support demonstrate the program’s effectiveness at securing capital. Performance measures such as the value of intellectual property, license royalties, jobs added/retained, payroll of jobs added/retained, actual and projected gross sales and actual sales distribution and projected cost-avoidance indicate the program’s effectiveness at technology transfer and the commercial value of Oklahoma R&D projects. Small Business Research Assistance Goal and Strategic Objectives The Small Business Research Assistance (SBRA) program addresses the statutory mandate of supporting applied research and facilitating technology transfer involving small private for-profit businesses by leveraging federal and private resources and promoting action, encouraging strategic partnerships between firms and research institutions and promoting commercialization of new technologies. Description Through the federal Small Business Innovation Research (SBIR) program, federal agencies provide seed support for product feasibility studies and prototype development that is lacking in the private investment community. The federal Small Business Technology Transfer (STTR) program accomplishes this purpose and forges research collaborations between small firms and universities or nonprofit research institutions. Both the SBIR and STTR programs encourage transfer of technology into federal agency programs and private sector applications. OCAST’s program supports these goals by defraying a portion of a qualifying firm’s federal SBIR or STTR Phase I proposal preparation costs and providing bridge funding between Phase I and Phase II federal SBIR and STTR grants. The program provides technical assistance to improve the quality of proposals through proposal development workshops, proposal reviews, client referrals and partnership with i2E’s new SBIR support services. The program offers companies guidance in 9 accessing additional OCAST support and other resources as appropriate to their respective stage of development. Performance Measures This program produces nationally competitive applied research, development and technology commercialization. Federal and private funding attributed to projects and the ratio of OCAST support to private and federal support indicate OCAST’s effectiveness at securing capital for applied research and development. Performance measures such as the increase in federal contracts, jobs added/retained and payroll of jobs added/retained indicate the successful commercialization of technology by firms participating in the SBRA program. Inventors Assistance Service Goal and Strategic Objectives OCAST contracts with Oklahoma State University to operate the Inventors Assistance Service (IAS) program through the university’s New Product Development Center. The service addresses the statutory mandate to provide Oklahoma inventors with information and training on developing their invention and on issues related to patenting/licensing, marketing and manufacturing. The service offers workshops, a Web site, referrals and on-site business and technical consultations. Description The program assists the independent inventor in navigating the process from idea to marketplace. IAS helps inventors move toward the manufacturing, marketing and distribution of their products by providing assistance and information or referring inventors to appropriate service providers who will help them deal with specific steps in the invention process. By providing assistance and information or by referring inventors to appropriate service providers who will help them deal with specific steps in the invention process, the program provides inventors with a streamlined process to help move their innovation forward. Qualified inventors nearly ready for commercialization receive help with activities such as materials testing, marketing, engineering specifications and prototype development. Performance Measures Performance measures are specified in statute and include the number of clients, participants in workshops, value of patents, license royalties, jobs created or retained and number of clients progressing into other OCAST and federal programs. Oklahoma Technology Commercialization Center Goal and Strategic Objectives The Oklahoma Technology Commercialization Center (OTCC) program addresses the statutory mandate of facilitating technology transfer and commercialization and providing pre-seed and seed capital for new innovative firms. The program operates under contract with OCAST and is the product of OCAST’s strategy of promoting collaborations, allocating resources according to merit, stimulating action and leveraging private resources. Description OCAST currently contracts with i2E, a private nonprofit organization, to operate the OTCC program that assists entrepreneurs, early-stage technology companies and firms seeking to commercialize new technologies. The program focuses on assessing needs, guiding clients through the commercialization process and linking them to a comprehensive network of technology sources (including Oklahoma universities) and commercialization services. The program also provides specialized business development services, access to early-stage risk financing and help in transferring technology. Beginning in FY 2012 OTCC, will include business 10 development and commercialization services specifically targeted to Oklahoma’s SBIR and STTR companies. Performance Measures Performance measures include number and type of project clients, activities with all clients, amount and type of financing obtained for clients, jobs created and average wage/salary of new technology-based companies. OCAST Technology Business Finance Program Goal and Strategic Objectives The Technology Business Finance Program (TBFP) was authorized in the Technology Transfer Act of 1998 to address the mandate of providing early stage capital to innovative firms and manufacturers and for leveraging private investment capital. Description This program is designed to promote promising innovation and to support efforts to commercialize in Oklahoma by providing early stage financing. The program requires a match and includes payback provisions. OCAST contracts with i2E Inc. to operate this program. Performance Measures Performance measures include the number of start-up firms and/or manufacturers assisted, survival rate of those organizations, amount of repayments and leveraging of other private and federal dollars. In addition, the program manager submits an economic impact analysis of the program, including such items as jobs and average annual salaries of jobs created/retained. OCAST Seed Capital Program Goal and Strategic Objectives The seed capital program has been crafted to be an economic development tool with a goal of making investment in early stage companies engaged in the commercialization of promising new technologies in Oklahoma. Growing innovative Oklahoma companies that attract other investment as they successfully commercialize their products and services is the ultimate goal. Description In general, through its seed capital program, OCAST seeks to provide funding to innovative Oklahoma companies. The statute and the related constitutional amendment allow the state to take an equity or debt position with firms – an authority that is unique to OCAST as a state agency. Required co-investment with the private sector leverages the agency’s investment. By statute OCAST was given multiple options as to how it could use appropriated funds to meet economic development goals for seed capital stage companies. OCAST invests in Oklahoma Seed Capital Fund LLC, currently managed as a wholly owned subsidiary of i2E Inc. Other fund investors have included the Oklahoma Capital Investment Board (OCIB) and the Oklahoma Development Finance Authority (ODFA). OCAST is the largest contributor to the fund and is the Class A member, which includes the right to review and approve all proposed term sheets with the advice of its investment committee. Beginning in FY 2012, the Seed Capital program will include a concept fund intended to address the needs of companies requiring smaller seed capital investment for earlier-stage projects. Unlike TBFP, awards from the concept fund are convertible should the client pursue larger seed capital investment at a later date. 11 Performance Measures Performance measures include the leverage of private investment funds, business finance impacts resulting from OCAST investment (including job growth and economic impact on the state) and expanding availability of investment capital for technology business development. Oklahoma Nanotechnology Applications Project Goal and Strategic Objectives The Oklahoma Nanotechnology Applications Project (ONAP) is authorized by statute. This project assists qualified Oklahoma companies with application of nanotechnology through research, development and manufacturing and helps them improve current or create new cutting-edge products or processes. These awards encourage nanotechnology collaboration between industry, institutions of higher education and nonprofit research institutions. Description ONAP competitively awards funds for one- to three-year research and development projects with an emphasis on nanotechnology applications in product development supporting the Oklahoma manufacturing and business community. Universities must collaborate with private industry to be eligible to participate in this program. OCAST will contract to support the management of the Oklahoma Nanotechnology Initiative (ONI). ONI provides a focus on the promotion and support of business, academic, manufacturing, employment and investment initiatives related to nanotechnology and coordinates activities on a regional basis for the benefit of Oklahoma. It provides education to Oklahoma manufacturers and businesses as to the potential benefits of nanotechnology in product and process innovation to help them better understand nanotechnology applications. ONI also helps to identify potential applicants for ONAP funding and hosts the annual Oklahoma nanotechnology symposium (Oklahoma NanoFocus). Performance Measures Performance measures include the number of nanotechnology applications funded, the number of manufacturers and businesses educated, the number of regional and in-state collaborations initiated and/or achieved, the number of jobs created or retained and the average wage/salary of those jobs, the increase in gross sales and the number of manufacturers and businesses served. The private and federal dollars leveraged by ONAP will also serve as an indicator of overall performance. Oklahoma Manufacturing Alliance Goal and Strategic Objectives The Oklahoma Manufacturing Alliance, an OCAST partner organization, addresses the statutory mandate of stimulating manufacturing productivity and modernization. The Manufacturing Alliance is nationally recognized for excellence in terms of its ability to respond quickly, encourage action and leverage federal and private resources. Description The Oklahoma Alliance for Manufacturing Excellence Inc. is a private, nonprofit organization that manages the programs which provide leadership and assistance to Oklahoma’s small- and medium-sized manufacturers to help them become progressively more successful in their marketplace. Through a network of extension agents and applications engineers, the Manufacturing Alliance delivers real, hands-on resources for improving productivity, increasing sales and reducing costs. Using federal, state, local and private funds, the Oklahoma Alliance for Manufacturing Excellence Inc. contracts with local organizations to field regional manufacturing extension agents who deliver to Oklahoma manufacturers services in technology application, workforce training, financing, market assessment and business relations. 12 Applications engineers, sponsored in part through Oklahoma State University, provide technical assistance to manufacturers in rural areas where resources are limited. These locally accessible applications engineers assist with mechanical designs, plant layouts and a variety of other technical issues. OCAST provides a portion of the state funding and oversight for the system by means of an annual contract with the Oklahoma Alliance for Manufacturing Excellence Inc. Performance Measures This program measures productivity through such measures as jobs created/retained, cost savings, efficiency improvements, cost avoidance and capital investment. GOVERNANCE AND OPERATIONS Structure Management Philosophy and Structure OCAST’s management functions as a team, the success of which depends heavily upon the cooperation, contribution and commitment of each player. The teamwork concept extends to OCAST’s interactions with other agencies, organizations and stakeholders. OCAST works closely with the business and financial sector to stimulate innovation in existing and developing Oklahoma businesses. Therefore, in accordance with statute, all staff positions 13 are unclassified, governed and compensated in a manner that compares to similar positions in the private sector and, as listed below, are exempt from the Oklahoma Personnel Act. Following is a list of approved positions: Executive Director – Directs the administrative affairs and general management of OCAST. Develops and directs implementation of strategic plans and policy related to OCAST’s mission. Presents and communicates with governor, legislative subcommittees and legislative leadership regarding OCAST’s annual budget request and any pending statutory changes relevant to OCAST. Communicates regularly with local, state and national leaders and organizations about OCAST and the importance of scientific research and the growth of knowledge-based businesses to Oklahoma’s economy. The executive director is accountable to the OSTRaD board. Unclassified / Annual salary of $96,027 effective July 1, 2009 Deputy Director – Responsible for the operations as assigned by, or in the absence of, the executive director. Responsibilities include directing the formulation, implementation and evaluation of programs, policies, procedures and standards; development of operating plans, annual budgets and performance measures; represents OCAST at various meetings at the local, state and national level. The deputy director is accountable to the executive director. Unclassified / $70,000 - $85,000 Director, Administration and Finance – Responsible for the general administration of the administration and finance division including developing appropriation requests and operating budgets; developing, implementing and administering administrative procedures for accounting, purchasing and office administration; maintaining all official records of the board and agency. The director, administration and finance, is accountable to the executive director in the handling of the agency’s general administrative affairs and finances including the disposition of highly confidential proprietary material submitted by applicants. Unclassified / $65,000 - $80,000 Director, Programs – Responsible for the general administration of the programs division including the development, administration, evaluation and revision of research funding programs, technology development and transfer activities and management of confidential proprietary material submitted by applicants. Directs the staffing of program operations, advisory committees, development and revision of program specifications, rules, regulations and division budget and appropriation requests. The director of programs is accountable to the executive director. Unclassified / $65,000 - $80,000 Director, Government Relations and Strategic Initiatives – At the direction of the executive director, directs the design, development and implementation of agency legislative goals and strategy for securing desired legislative and executive action and coordinates legislative activities with all OCAST divisions. Proposes and drafts legislation relevant to new OCAST programs. Serves as key strategic advisor to executive director. Coordinates with OCAST staff to identify and document OCAST programs and services requiring assistance and support of the legislature and governor. Directs special projects assigned by the executive director. Directs research studies and reporting on various topics regarding technology-based economic development. Represents agency before and organizes and facilitates OCAST communication with public officials and local, state and national organizations. Unclassified / $65,000 - $80,000 Associate Director – Responsible for designing, implementing, operating and evaluating division programs and activities, as assigned. Recommends new programs and activities related to the OCAST mission. A senior level technical strategist with a global perspective of all programs to build collaborative efforts across academia, industry and government. Supervises employees, as assigned. Responsible for the general administration of the division in the absence of the director. Associate directors are accountable to supervising directors and to the executive director for the correct disposition of highly confidential and 14 proprietary material submitted by applicants for OCAST funding and assistance. Unclassified / $50,000 - $65,000 Public Information and Rural Outreach Manager – Writes articles and hosts radio and television productions on the subject of technology-based economic development and relevant Oklahoma programs and initiatives. Coordinates OCAST’s message with media outlets and the general public. Works with related organizations such as chambers of commerce and the Oklahoma Department of Commerce to promote Oklahoma research and advanced technology companies. Responsible for facilitating cooperation in rural technology-based economic development initiatives. This position reports to the director, government relations and strategic initiatives. Supervises employees, as assigned. Unclassified / $55,000 - $70,000 Client Services Manager – Responsible for the direct support of clients by facilitating partnerships between small businesses and federal funding agencies to promote commercialization of new technologies. Provide companies technical assistance in accessing all OCAST programs and other resources as appropriate to their respective stage of development. Unclassified / $45,000 - $60,000 Programs Officer IV – Supervises the planning, coordination or direction of a component of the agency or program(s) established to accomplish a basic goal or mission of the agency. May supervise one or more employees and/or contractors. Represents OCAST at conferences, meetings and hearings related to OCAST’s administrative operations. Unclassified / $45,000 - $60,000 Programs Officer III – Under minimal supervision, plans, coordinates or directs a component of the agency or program(s) established to accomplish a basic goal or mission of the agency. May supervise one or more employees and/or contractors. Represents OCAST at conferences, meetings and hearings related to OCAST’s administrative operations. Unclassified / $40,000 - $55,000 Programs Officer II – Under general supervision, plans and coordinates a component of the agency or program(s) established to accomplish a basic goal or mission of the agency. May supervise one or more employees and/or contractors. Represents OCAST at conferences, meetings and hearings related to OCAST’s administrative operations. Unclassified / $35,000 - $50,000 Programs Officer I – Under direct supervision, assists in developing, implementing, evaluating and managing programs or program functions including program services and/or events. May staff program advisory committees, including producing reports for board and/or committee action. Administers small programs and projects, as assigned. Conducts surveys and compiles and interprets results; provides consultation to staff to aid in the development of appropriate assessment and evaluation for programs and services. Unclassified / $30,000 - $45,000 Accountant IV – Responsible for accounting activities involving the supervision and direction of accounting operations including planning, reviewing and organizing the work of assigned staff; assuring availability of funds, preparing analysis of expenditures and monthly reports of operations, financial statements, schedules and financial statistical data; working with private sector clients and vendors as necessary in resolving problems. Unclassified / $45,000 - $60,000 Accountant III – Under minimal supervision, classifies and posts revenues and expenditures. Assures availability of funds for agency obligations and expenditures. Maintains accounting records and files documenting financial transactions. Prepares analyses of expenditures and monthly reports of operations, financial statements, schedules and financial statistical data. Works with private sector clients and vendors in resolving invoicing and payment issues. May supervise employees as assigned. Unclassified / $40,000 - $55,000 15 Accountant II – Performs a wide range of tasks involving the maintenance, analysis, interpretation and reporting of financial accounting data and the application of generally accepted accounting principles and theories in the management of financial accounts. Includes maintenance of highly diverse accounts, financial analysis and reporting, reconciliation of accounting data, reviewing and processing financial documents for payment and similar responsibilities. Unclassified / $35,000 - $50,000 Assistant to the Executive Director – Under minimal supervision, assists the executive director in managing the administrative affairs of OCAST. Serves as secretary to the board and agency liaison with the governor’s office and the secretary of state. Organizes activities and information associated with OCAST’s five-year and annual planning processes, assists with agency projects and organizes the executive director’s time, confidential files and correspondence. The assistant to the executive director is accountable to the executive director in performing all duties. Unclassified / $30,000 - $45,000 Office Manager – Performs a wide range of tasks supporting the overall administrative and information technology operations of the agency. Manages everyday tasks necessary for the efficient running of the agency and is responsible for front-desk reception duties, ordering agency office supplies and other assigned administrative and accounting duties. Position is responsible for managing the flow of internal information for the agency including incoming and outgoing mail, faxes and agency deliveries. Serves as the primary point of contact for all facility related office equipment and technology issues. Other general tasks include supporting agency personnel with communications and scheduling. Unclassified / $30,000 - $45,000 Administrative Assistant II – Under general supervision, may assist in administering the activities associated with developing, implementing, operating and evaluating programs and functions. Assists in staffing board, committees, subcommittees and conferences including preparing necessary materials and preparing minutes of meetings and setting-up and maintaining files and records; may gather and summarize information for staff or committee action. Composes and prepares program and administrative documents and correspondence. Determines when to provide information to the public regarding routine services, policies and regulations and when to refer it to a senior staff member for official action or decision. Duties may also include reading, sorting, distributing and maintaining a log of incoming and outgoing materials. May perform duties of receptionist. Unclassified / $25,000 - $40,000 Administrative Assistant I – Under direct supervision, assists in administering the activities associated with developing, implementing, operating and evaluating programs, including assisting with conferences, workshops and other events. Prepares program documents and correspondence. Assists in staffing board or program advisory committees, including preparing meeting minutes and materials and maintaining required files and records. Duties may also include reading, sorting, distributing and maintaining a log of incoming and outgoing materials. May perform the duties of receptionist. Unclassified / $20,000 - $35,000 Additional positions approved but not currently in use include: Account Clerk Accountant I Administrative Services Manager I and II Assistant Director Comptroller Director, Technology Information Services Human Resources Manager Information Systems Network Management Specialist III MIS Coordinator Program Coordinator I, II and III Program Manager Programs Officer I Research Analyst Senior Manager, Management Information Systems Senior Outreach Liaison Senior Program Manager 16 Professional Service Contracts OCAST uses professional service contracts to supplement capabilities and maintain low administrative costs. Functions exist which, due to statutory or program requirements of highly specialized and diverse expertise or infrequency, are more effectively and efficiently performed by contract. Some, though not all, specific professional services contracts can be anticipated at the outset of the fiscal year. As of the date of submission of this business plan, the staff intends to execute the following professional services contracts in FY 2012: Office of the State Auditor and Inspector for annual audit services, in an amount not to exceed $30,000 Office of Attorney General for legal services, one-half time for one year, in an amount not to exceed $46,000 Contract for an information technology enhancement of program database and development and installation of an electronic application system to support the programs division processes and data management in an amount not to exceed $450,000 Contract with Office of State Finance for IT services including personal computer support, network support and database hosting not to exceed $50,000 Continuation of contracts with Clear Channel Communications and Cox Radio KRMG for the weekly radio show Oklahoma Innovations, in an amount not to exceed a total of $50,700 Contract with an in-state marketing firm to enhance the agency’s position as the leader in Oklahoma technology-based economic development in an amount not to exceed $40,000 Continue contracting with the Oklahoma Alliance for Manufacturing Excellence Inc. to operate the Oklahoma Manufacturing Alliance in an amount not to exceed $1,109,470 Contract support for the operation of the Oklahoma Nanotechnology Initiative in an amount not to exceed $100,000 Continue contracting with Oklahoma State University to operate the Inventors Assistance Service in an amount not to exceed $153,641 Continue contracting with i2E Inc. to operate the Technology Business Finance Program in an amount no to exceed the repayments and carryover funds currently in the program plus an annual management fee of $194,487 Continue contracting with i2E Inc. to operate the Oklahoma Technology Commercialization Center in an amount not to exceed $1,808,241 Contract with i2E Inc. to manage the Oklahoma Seed Capital Fund not to exceed $375,000 Contract with Presbyterian Health Foundation, dba Oklahoma Health Center Research Park Corporation, to operate a technology-business incubator located in the Oklahoma Health Center Research Park and appropriately equipped to meet the needs of start-up, technology-intensive firms including, but not limited to, bio-technology and biomedical firms (Title 74. Chapter 70, Section 5060.29) $100,000 Standing Advisory Committees OCAST receives support and assistance from the Oklahoma Health Research, Oklahoma Plant Sciences Research, Oklahoma Applied Research and Small Business Research Assistance advisory committees for research-related programs. Research-related standing committees must consist of representatives of the “business, higher education and research communities (74 O.S., Section 5060.9[a])” and at least one-third of the members of each committee must be researchers. Committees are approved annually by the board. The Seed Capital Investment 17 advisory committee is created to assist OCAST in evaluating potential investments with the Seed Capital Revolving Fund (74 O.S., Section 5060.21). Oklahoma Applied Research Advisory Committee Kenneth E. Bartels, D.V.M., M.S. Oklahoma State University David Humphrey Oklahoma Equity Partners Larry Kennedy Oklahoma Medical Research Foundation E. Ann Nalley, Ph.D. Cameron University Karl Reid, Sc.D., P.E. Oklahoma State University E.R. “Tracy” Shirley III Harrison Gypsum Company Ed Shreve, Ph.D. (chair) Stillwater Dale Teeters, Ph.D. University of Tulsa Monte Tull, Ph.D. University of Oklahoma Oklahoma Health Research Committee* William Canfield, M.D., Ph.D. Cytovance Corporation Tyrrell Conway, Ph.D. University of Oklahoma Mary Beth Humphrey, M.D. Ph.D. University of Oklahoma Health Science Center Katherine M. Kocan, Ph.D. Oklahoma State University Jerry Malayer, Ph.D. Oklahoma State University Rodger McEver, M.D. (chair) Oklahoma Medical Research Foundation Kenton Miller, Ph.D. University of Tulsa Mack Roark, D.Min. Shawnee Hal Scofield, M.D. Oklahoma Medical Research Foundation *Appointed by the governor Oklahoma Nanotechnology Applications Project Committee Larry Grable, J.D. Tomlinson & O’Connell P.C. Jim Mason Oklahoma Nanotechnology Initiative David Schmidtke, Ph.D. University of Oklahoma Dale Teeters, Ph.D. (chair) University of Tulsa Ranji Vaidyanathan, Ph.D. Oklahoma State University Oklahoma Plant Sciences Research Advisory Committee Peter Camfield, Ph.D. Oklahoma Panhandle State University Ronald L. Elliott, Ph.D., P.E. Oklahoma State University Rod Moesel (chair) American Plant Products and Services Inc. Richard Nelson, Ph.D. Samuel Roberts Noble Foundation David Porter, Ph.D. Oklahoma State University 18 Seed Capital Investment Committee James Dickson BancFirst David McKinney, J.D. GableGotwals Larry Pulliam Southern Oklahoma Memorial Foundation James Wheeler, Ph.D. University of Oklahoma Price College of Business Sherri Wise Osteopathic Founders Foundation Small Business Research Assistance Committee Colin Cumming ICx Nomadics Inc. Phillip Free, J.D. Crowe and Dunlevy James Grimsley, (chair) Design Intelligence Inc. Dorothy Overal U.S. Small Business Administration Ann Patten Scrub Oak Technologies Kay Wade Logan County Economic Development Council Finance OCAST’s programs, activities and general operations are financed primarily through state general revenue appropriated funds. OCAST’s enabling statute authorizes the use of three funds: the General Administration and Data Processing Fund, the Research Support Revolving Fund and the Seed Capital Revolving Fund. Each of the three funds is authorized to accept state general revenue appropriations, grants, gifts and donations. The Seed Capital Revolving Fund is authorized to accept loan repayments and investment proceeds. Each fund is authorized to finance specific activities of the agency. The majority of OCAST’s annual state appropriation is transferred to the Research Support Revolving Fund for operation of all OCAST programs. As instructed by the state legislature, House Bill 2182 directs $3,966,355 to be paid to the Seed Capital Revolving Fund for FY 2012. These funds will be transferred from the Research Support Revolving Fund to the Seed Capital Revolving Fund in monthly allocations. The revolving funds have no fiscal year limitations. All of the agency’s expenditures must be confirmed by Oklahoma’s Office of State Finance to be consistent with an annual budget work program approved by that office. Appropriation History 19.2 22.4 22.0 14.1 12.7 15.6 3.1 8.1 7.3 6.4 6.4 6.0 6.0 9.0 11.7 11.6 12.1 12.7 11.6 11.0 11.6 12.4 22.4 22.9 17.8 $0 $5 $10 $15 $20 $25 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Fiscal Year millions $ 19 PLANNING Comprehensive Planning OCAST produces an annual business plan and a five-year strategic plan. Based on data provided by the National Science Foundation, OCAST benchmarks its funding compared with similar state agencies in other states, especially those in the same region. Support of R&D funding by state legislators in the region continues, although only one nearby state, Kansas, invests more in technology-based economic development (TBED) than the national average of all U.S. states. The National Science Foundation’s measure of state agency R&D expenditures per one million dollars of the state gross domestic product is shown in Chart 1 below1. In the region, Oklahoma ranks the third highest in state agency expenditures per $1 million of state gross domestic product. Rankings did change for other regional states. Kansas with $100 per $1 million of state gross domestic product, dropped from $130 the previous year while maintaining its No. 1 regional ranking. Missouri also lost ground by decreasing from $84 to $68 and coming in fourth behind Oklahoma at $79. Oklahoma’s investment increased from $69 the previous year. Arkansas increased its investment from $54 to $81, jumping from fourth place behind Oklahoma the previous year, to second place in the region. Chart 1: State Agency R&D Expenditures per $1 Million of State Gross Domestic Product 26 79 81 100 9 32 51 68 0 20 40 60 80 100 120 NM TX LA CO MO OK AR KS Due to NSF survey differences, the metric should be interpreted as a rough measure of the ratio between the amount of state agency R&D funding and the size of a state’s economy. U.S rankings show an average of $89. Among the eight regional states, only Kansas surpasses the national average state expenditure per $1 million of state gross domestic product. States Continue Tech-Based Investments Although most all states struggled with state budgets due to the recession, several states found funding to advance tech-based economic development. For example: Georgia’s Centers of Innovation program will be integrated with the programs of the Georgia Research Alliance (GRA). The goal for integrating the programs is twofold: to maximize potential for high-tech companies generated from university R&D, and to 1 National Science Foundation (NSF), Science and Engineering Indicators, 2010. Data excludes state-run colleges and universities as well as laboratories or experiment stations controlled by universities; funding from these institutions is collected and classified as academic R&D expenditures. Data may include some non-R&D activities such as commercialization. 20 leverage the resources of Georgia’s research universities to retain and recruit companies in industries considered crucial to the state’s growth. GRA is slated to receive $7.5 million in FY 2012, which includes $3 million in bond funding to purchase equipment and fund R&D infrastructure. This is a decrease from the $16.7 million revised FY 2011 budget. Colorado Governor John Hickenlooper signed into law a tax break on agricultural products and an extension of a tax-credit program for angel investors. That measure continues a program offering tax credits to investors who give at least $25,000 to a small Colorado business that is less than five years old and is involved in the research, development or manufacturing of new technologies, products or processes. Bioscience Connecticut will improve the capacity and productivity of research, enabling the University of Connecticut Health Center to double federal and industry bioscience research grants. The result will be new technologies that can be transferred to industry, strengthening the competitiveness of existing Connecticut businesses and creating new enterprises. Connecticut Governor Dannel P. Malloy says the law will improve access to health care. Illinois Governor Pat Quinn has launched the Illinois Innovation Network (IIN) to give entrepreneurs resources needed to build and grow businesses and jobs. The governor announced Illinois is joining in the national effort to promote high-tech entrepreneurship by connecting the IlN with Startup Illinois, a component of the Startup America Partnership announced by President Obama earlier this year. Startup Illinois will let Illinois-based affiliates and entrepreneurs leverage technology, content and tools to access national resources, and celebrate local startup successes on a national stage. Maryland is accelerating and leveraging its investment in the space industry. Governor Martin O’Malley has unveiled a bold new initiative to increase business development and commercialization opportunities of the state’s space industry. Maryland hopes to leverage federal facilities and institutions of science and discovery to unlock economic potential of the state’s space sectors. State Science and Technology Indicators NSF uses 52 indicators to measure state science and technology infrastructure, of which 20 are listed in the accompanying table. The other 32 indicators are related to elementary and secondary education, higher education and workforce and were not included in the table below. The NSF science and technology indicators listed in the table below are related to financial R&D inputs, research development outputs and S&T in the economy. Of the 20 indicators, Oklahoma strengths included eight measures in the 2nd quartile and two measures in the 3rd quartile, with the remaining measures providing opportunities for improvement. National Science Foundation Oklahoma S&E Indicators2 Indicators Year Financial Research and Development Inputs R&D as Share of Gross Domestic Product 4th quartile Federal R&D Obligations per Civilian Worker 4th quartile Federal R&D Obligations per Individual in S&E Occupation 4th quartile State Agency R&D Expenditures per $1 Million of Gross Domestic Product 3rd quartile State Agency R&D Expenditures per Civilian Worker 3rd quartile State Agency R&D Expenditures per Individual in S&E Occupation 3rd quartile Business-Performed R&D as Share of Private-Industry Output 4th quartile Academic R&D per $1,000 of Gross Domestic Product 3rd quartile Research and Development Outputs S&E Doctorates Conferred per 1,000 S&E Doctorate Holders 2nd quartile 2 NSF Science and Engineering Indicators, State Indicators Section, Chapter 8, 2010. 21 Academic S&E Article Output per 1,000 S&E Doctorate Holders in Academia 3rd quartile Academic S&E Article Output per $1 Million of Academic R&D 2nd quartile Academic Patents Awarded per 1,000 S&E Doctorate Holders in Academia 3rd quartile Patents Awarded per 1,000 Individuals in S&E Occupations 3rd quartile Science and Technology in the Economy High-Technology Share of All Business Establishments 3rd quartile Net High-Technology Business Formations as Share of All Business Establishments 2nd quartile Employment in High-Technology Establishments as Share of Total Employment 3rd quartile Average Annual Federal SBIR Funding per $1 Million of Gross Domestic Product 4th quartile Venture Capital Disbursed per $1,000 of Gross Domestic Product 4th quartile Venture Capital Deals as Share of High-Technology Business Establishments 4th quartile Venture Capital Disbursed per Venture Capital Deal 4th quartile States that excel in these rankings rely on continued federal, state and private investments in technology-based economic development. Financial Planning OCAST is required by statute to “recommend an appropriate level (of funding for OCAST’s programs) . . . that will make these programs nationally competitive with those of other states” and to “adopt . . . a threshold funding level for each of the programs . . . that is great enough to have a significant impact and carry out the intent of this act.” (74 O.S., Section 5060.22) After the governor and legislature approve the OCAST appropriation, staff and board members develop a business plan for the application of available resources, abiding by the directives and constraints on spending articulated in the signed appropriation bills. Unless established otherwise by the board, the threshold funding levels are the FY 2012 appropriation levels shown in this plan (see Five Year Appropriation History by Program below). Program and Service Planning OCAST develops and initiates new programs and services by building consensus among constituents and stakeholders, which may include standing and ad hoc program advisory committees, higher education and career-tech representatives, nonprofit organizations, businesses, other agencies and state leaders. Most OCAST programs are initiated through legislative intent. When it is evident a need or opportunity should be an OCAST priority and is consistent with OCAST’s mission, staff checks relevant statutes and, when necessary, consults with the state Office of the Attorney General to determine whether OCAST’s general authorization covers the need/opportunity. If so, a recommendation is submitted to the OSTRaD board. Specifications for each new program are designed by OCAST staff working in consultation with a standing or ad hoc advisory committee and the Office of the Attorney General. Appropriate state and national experts are frequently consulted in this phase of program design. The board may provide advice and guidance. The information is presented to the OSTRaD board for consideration and approval. 22 FIVE YEAR APPROPRIATION HISTORY BY PROGRAM Activities FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 General Administration $ 690,750 $ 690,750 $ 850,000 $ 739,075 $ 687,340 Program Services and Support 0 0 1,354,675 1,368,970 1,304,000 Health Research 4,823,619 4,594,117 4,253,299 4,000,000 4,005,219 Applied Research 4,160,760 4,428,545 3,907,100 1,900,000 2,341,616 Intern Partnership Program 558,994 558,994 599,149 260,000 241,800 Plant Science Research 600,000 702,568 567,983 709,656 659,980 Nanotechnology Research 1,221,302 1,421,302 1,437,100 1,500,000 720,000 Manufacturing Extension Services 1,575,453 1,532,166 1,372,028 1,192,978 1,109,470 Technology Commercialization 3,233,657 3,247,319 2,914,776 2,534,398 2,052.728 Small Business Research Assistance 371,070 377,648 338,500 200,000 186,000 Inventors Assistance 223,567 184,483 190,000 165,205 153,641 Technology Information Services 347,335 368,615 373,031 316,916 383,300 Seed Capital Fund 650,000 4,350,000 3,868,922 4,264,898 3,966,355 Bioenergy Center 4,000,000 0 0 0 0 Biofutures Institute 500,000 0 0 0 0 TOTAL FUNDING$22,956,507 $22,456,507 $22,026,563 $19,152,096 $17,811,449 ADMINISTRATIVE COSTS 3.01% 3.08% 3.86% 3.86% 3.86% SOURCES AND USES OF REVENUES Sources: Reserves for OCAST Out-Year Obligations $ 9,763,979 Reserves for Seed Capital Obligations 10,362,297 Projected FY-2011 Available Carryover 1,501,777 FY-2012 State Appropriated Revenues 17,811,449 TOTAL SOURCES $39,439,502 Uses: Projected FY-2012 Expenditures Administration $ 687,340 Program Services 1,629,000 Programs Health Research 4,585,443 Applied Research 3,039,587 Intern Partnership Program 354,276 Nanotechnology Research 1,311,955 Plant Science Research 797,422 Small Business Research Assistance 186,000 Technology Commercialization 2,255,728 Oklahoma Manufacturing Alliance 1,109,470 Inventors Assistance 153,641 Seed Capital Fund 14,328,652 Technology Information Services 383,300 TOTAL USES $30,821,814 Estimated Cash Balance 6/30/2012: Out Year Program Obligations $ 7,084,191 Unobligated Projected Cash Carryover 1,533,497 $ 8,617,688
Object Description
Okla State Agency |
Science and Technology, Oklahoma Center for the Advancement of |
Okla Agency Code | '628' |
Title | Business plan |
Alternative title | Business plan / OCAST |
Authors | Oklahoma Center for the Advancement of Science and Technology. |
Publisher | Oklahoma Center for the Advance of Science and Technology |
Publication Date | 2008; 2009; 2010; 2011; 2012 |
Frequency | Annual |
Publication type | Planning Document |
Serial holdings | Electronic holdings: 2008/09-2011/12 |
Subject |
Oklahoma Center for the Advancement of Science and Technology. Research--Oklahoma. |
Contents | Based on 2008/09 issue;OSTRaD Board of Directors;OCAST Purpose;FY Goals and Objectives;OCAST Strategy;Governance and Operations;Planning;Five-Year Appropriation History by Program;Sources and Uses of Revenues |
Notes | issues through 2011/12; fiscal year |
For all issues click | S925.3 B979p |
Digital Format | PDF, Adobe Reader required |
ODL electronic copy | Deposited by agency in print; scanned by Okla. Dept. of Libraries 10/2008 |
Rights and Permissions | This Oklahoma state government publication is provided for educational purposes under U.S. copyright law. Other usage requires permission of copyright holders. |
Language | English |
Month/year uploaded | October2008 |
Date created | 2016-01-25 |
Date modified | 2016-01-25 |
OCLC number | 268693089 |
Description
Title | Business plan FY12 |
OkDocs Class# | S925.3 B979p 2011/12 |
Digital Format | PDF, Adobe Reader required |
ODL electronic copy | Downloaded from agency website: http://www.ok.gov/ocast/documents/finalfy12businessplan.pdf |
Rights and Permissions | This Oklahoma state government publication is provided for educational purposes under U.S. copyright law. Other usage requires permission of copyright holders. |
Language | English |
Full text | Fiscal Year 2012 Business Plan TABLE OF CONTENTS OSTRaD Board of Directors ....................................................................................................... 1 Purpose ................................................................................................................................... 2 Mission ................................................................................................................................... 2 Vision...................................................................................................................................... 2 FY 2012 Goals and Objectives .................................................................................................. 2 Strategy .................................................................................................................................. 5 Programs ................................................................................................................................ 6 Governance and Operations OCAST Structure ......................................................................................................... 12 Management Philosophy and Structure ........................................................................ 12 Professional Service Contracts ..................................................................................... 16 Standing Advisory Committees .................................................................................... 16 Finance ....................................................................................................................... 18 Appropriation History ................................................................................................. 18 Planning Comprehensive Planning ............................................................................................. 19 Financial Planning ....................................................................................................... 21 Program and Service Planning ..................................................................................... 21 Five-Year Appropriation History by Program ........................................................................... 22 Sources and Uses of Revenues ................................................................................................ 22 This publication was issued by the Oklahoma Science and Technology Research and Development Board as authorized by Title 74 of the Oklahoma Statutes, Section 5060.8. Approved by the OSTRaD Board of Directors on June 21, 2011. 1 BOARD OF DIRECTORS OCAST is a state agency governed by a 21-member board of directors consisting of the secretary/executive director of the Oklahoma Department of Commerce, the chancellor of the Oklahoma State Regents for Higher Education, the secretary of agriculture, the president of the University of Oklahoma, the president of Oklahoma State University, the president of a private university, the president of a regional university, twelve members appointed by the governor and two nonvoting legislators representing the house and the senate. Members appointed by the governor serve with the consent of the senate and generally serve four-year terms. Mark Ashton, J.D. Ashton, Wisener and Munkacsy Lawton Galynn Beer Sales and Budget Director Agro-Culture Liquid Fertilizers Guymon David Boren, J.D. President University of Oklahoma Norman V. Burns Hargis, J.D. President Oklahoma State University Stillwater Rhonda Hooper President and CEO Jordan Associates Oklahoma City Mike Jackson Oklahoma House of Representatives Enid Glen D. Johnson, J.D. Chancellor State Regents for Higher Education Oklahoma City Clark Jolley, J.D. Oklahoma State Senate Edmond W. Hershel Lamirand III President and CEO Oklahoma Health Center Foundation Oklahoma City David R. Lopez Secretary of Commerce and Tourism Oklahoma Department of Commerce Oklahoma City Timothy Mather, Ph.D. Director of Research Administration Oklahoma Medical Research Foundation Oklahoma City Chelle Melton, D.Ph. Clinic Pharmacy Guymon Dayal T. Meshri, Ph.D. President and CEO Advance Research Chemicals Inc. Catoosa Jim Reese Secretary of Agriculture Oklahoma Department of Agriculture Oklahoma City Karl Reid, Sc.D. Dean of Engineering, Architecture and Technology Oklahoma State University Stillwater Terry L. Salmon, Ed.D. (Vice Chair) President and Founder Computer System Designers LLC Oklahoma City E. R. “Tracy” Shirley III Vice President and CFO Harrison Gypsum Company Norman Edward L. Shreve, Ph.D. Retired CEO and Businessman Stillwater Steadman Upham, Ph.D. President University of Tulsa Tulsa Sherri Wise (Chair) President Osteopathic Founders Foundation Tulsa 2 PURPOSE The Oklahoma Center for the Advancement of Science and Technology (OCAST) was established in 1987 as the state’s agency for technology-based economic development. OCAST’s mandate is to “expand and diversify Oklahoma’s economy and provide new and higher quality jobs for Oklahomans” by encouraging “. . . the development of new products, new processes and whole new industries in Oklahoma.” (O.S. 74, Sections 5060.1a and 5060.2A) MISSION To foster innovation in existing and developing businesses by supporting basic and applied research by facilitating technology transfer between research laboratories and businesses by providing seed capital for innovative firms in the development of new products or services by helping Oklahoma’s small and medium-sized manufacturing firms become more competitive through increased productivity and modernization (O.S. 74, Section 5060.3) VISION OCAST funds cutting-edge science and technology through processes that are recognized nationally and internationally for demonstrating excellence, objectivity and economic impact. OCAST’s vision is continued growth and vitality of its basic premise of facilitating collaborations between state government, universities, start-up companies and established large-scale firms to develop an entrepreneurial environment which supports technology-based economic development. OCAST’s strategy includes technologies such as biosciences, information technology, sensors and electronics, advanced materials, energy and alternative fuel sources. Achieving this vision will result in continued growth of advanced technology companies in the state thereby increasing Oklahoma’s global competitiveness, per capita income and quality of life. FISCAL YEAR 2012 GOALS AND OBJECTIVES Current economic uncertainties will likely have an impact on OCAST’s goals and objectives. The staff and management of the agency have experience in managing through times of plenty and the cyclical times of uncertainty. In highlighting the following goals and objectives, we are keenly aware of the need to be agile and creative in adapting to change. At the same time, we must be relentless in our dedication and steadfast in our duty to our stakeholders and the goals of technology-based economic development. Goal 1: Increase the impact of OCAST’s programs Objectives 1. Continue to pursue additional funding through grants, cooperative agreements and other opportunities to enhance and extend OCAST’s core programs and mission. 2. Initiate appropriate strategies to educate, inform and develop consensus among stakeholders on strategically positioning Oklahoma to compete successfully in a research and technology-based economy. 3. In response to client requests, maintain a year-round open solicitation for the Intern program with one application submission date per quarter. 3 4. Achieve an OCAST appropriation sufficient to meet market demand for technology-based economic development programs and support, as defined by OCAST’s advisory committees, affiliate organizations, clients, stakeholders and board. 5. Continue to review OCAST programs for potential updates, modifications and opportunities to further streamline program operations to ensure they: a. keep pace with the dynamic nature of research and advanced technology businesses; b. operate with optimal effectiveness and efficiency; and c. respond to new opportunities, within the context of budget and statutory constraints. 6. Perform outreach to increase participation in OCAST programs by new companies and new principal investigators. 7. Conduct: a. one (1) $4 million Health Research competition b. two (2) OARS competitions not to exceed $4 million c. one (1) $1.5 million ONAP competition d. one (1) $750,000 Plant Science competition e. four (4) Intern Partnership competitions not to exceed $480,000 f. annual performance reviews for previously funded projects 8. Conduct workshops to provide clients with information on writing more effective applications. 9. Conduct the annual Oklahoma Health Research Conference. 10. Continue to support i2E Inc. in meeting its FY 2012 objectives of managing the Oklahoma Technology Commercialization Center (OTCC) program, the OCAST Technology Business Finance Program (TBFP) and the Oklahoma Seed Capital Fund that includes a new concept fund component. 11. Continue to collaborate with university technology transfer offices, non-profit research foundations and federal laboratories to advance innovation and commercialization. 12. Continue to support the Oklahoma Manufacturing Alliance in meeting its FY 2012 objectives of assisting small- and medium-sized manufacturers to become progressively more competitive in their marketplace. 13. Continue to support the Inventors Assistance Service (IAS) in meeting its FY 2012 objectives in assisting inventors with navigating the invention process from idea to the marketplace. 14. Continue to support the Oklahoma Nanotechnology Initiative (ONI) in meeting its FY 2012 objectives. 15. Collaborate with i2E and other partner organizations to increase the number and quality of Oklahoma Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) proposals. Help prepare SBIR/STTR companies for commercialization through development and implementation of education, technical assistance, outreach initiatives and collaboration with commercial partners. 16. Through the OCAST-Tulsa office and in cooperation with the Manufacturing Alliance and i2E partners, become fully integrated into the economic development community of the northeast region of Oklahoma by: a. supporting growth and diversity in northeast Oklahoma’s economy; and b. increasing the number of applications to OCAST programs from the northeast region. 17. OCAST will provide administrative assistance as requested by the EDGE (Economic Development Generating Excellence) Board of Investors and the EDGE Fund Policy Board. 18. OCAST will provide administrative/fiscal assistance to the Governor’s Science and Technology Council as defined in Executive Order 2011-15. 19. Continue to enhance OCAST programs for greater impact across the state. Implement improvements to impact-reporting processes to provide a more comprehensive and demonstrable evaluation of OCAST’s programs. 20. Continue to expand and improve the efficiency of statewide program outreach activities. 4 21. Continue to meet with individual legislators and statewide elected officials to better acquaint them with OCAST clients and to inform them of the benefits of OCAST programs in advancing our state through science and technology. 22. OCAST will continue attending legislative committee meetings to raise awareness of the impact of pending legislation on existing OCAST programs. 23. OCAST will research technology-based economic development programs in other states in its quest for continuous process improvement. 24. Continue the contract compliance audits begun in FY 2011 to ensure OCAST contracts comply with all requirements set forth in the terms of the original contracts. Goal 2: Increase public awareness of OCAST’s impact on Oklahoma Objectives 1. OCAST will seek methods to expand audience acceptance of Oklahoma Innovations, heard each week on the OCAST Radio Network. The program, now in its 16th year, is produced and broadcast on the Clear Channel Communications Oklahoma flagship station KTOK. It will be our goal to maintain the program’s integrity while attempting to ensure a financially viable method for production and distribution to 11 radio station outlets. The program currently is heard on two stations in Tulsa and one each in Oklahoma City, Altus, Ardmore, Chickasha, Clinton, Duncan, Lawton/Ft. Sill, Woodward and Wichita Falls, Texas. 2. Technology Information Services staff will continue and sustain exemplary media relations to (a) fulfill a long-standing legislative directive to educate Oklahomans about the benefits of science and technology and (b) help provide lawmakers with information about OCAST programs and projects. In FY 2010 OCAST expanded media relations in Tulsa and northeast Oklahoma while continuing to satisfy media needs throughout the state. 3. OCAST will continually update the OCAST Web page to enhance public awareness of innovation through OCAST and to provide a portal for Oklahomans seeking access to OCAST programs. OCAST staff has developed an ongoing working relationship with the Department of Central Services to secure state-sponsored Web design and development to (a) satisfy 508 compliance (b) design an easily accessible and aesthetically pleasing Web site (c) include electronic applications to simplify access to OCAST programs (d) and expand the scope of OCAST’s services throughout the state. The Web page provides an additional tool to access Oklahoma Innovations. 4. OCAST will renew the contractual relationship with an in-state marketing firm to establish a branding process for OCAST to enhance the agency’s position as the leader in technology-based economic development. 5. OCAST will sponsor and conduct Oklahoma Science and Technology Month in cooperation with the state’s middle school and high school level science teachers and create a setting conducive to expanded involvement by educators at the local level. The year 2011 experienced program acceptance and the governor’s office supported and assisted OCAST in marketing the effort. 6. OCAST will seek opportunities to target specific geographic areas of the state where we will conduct activities to upgrade the level of media attention focusing on the value the agency brings to that specific area of the state. 7. Individualized marketing assistance will be available to established OCAST programs and initiatives. 8. OCAST has a relatively full suite of opportunities characterized by cooperating with other agencies and organizations to present a unified front. Such a position will show strength of Oklahoma’s commitment to advancing innovation and will keep lines of communication open between OCAST and its partners in the interest of fulfilling the OCAST mission. OCAST is an active member of the Oklahoma Rural Action Partnership Program sponsored by the Oklahoma Department of Commerce. 5 9. Ensure optimal benefit of OCAST’s collaboration in outside efforts to include, but not be limited to, The Journal Record Innovator of the Year and Senator Tom Coburn’s grant-writing workshops. Goal 3: Continue to implement OCAST process improvements Objectives 1. Review and improve the staff performance evaluation process in keeping with requirements of the state Office of Personnel Management. 2. Continue to promote an environment that results in a high performance team. 3. Continuously review processes and procedures to identify and implement efficiencies throughout the organization. 4. Maintain OCAST consolidated database and continue to incorporate historical data. 5. Enhance services delivered via the OCAST Web site to improve pre- and post-contract award processes, reduce paper handling and postage costs and streamline other business transactions for staff and clients. 6. Benchmark current best practices in research and technology-based economic development through staff participation in national, state and local organizations. 7. Develop and implement a contract compliance workshop for all recipients of OCAST program awards. Leverage outreach efforts through collaboration with affiliates, other government agencies and private organizations. 8. Encourage employee career development, including completion of required supervisory training. 9. Comply with external audits. 10. Continue to upgrade OCAST computer hardware and software as necessary to provide staff the tools and most efficient means to serve clients. 11. Continue development and implementation of an electronic applications process for all programs, through; a. a collaboration with OCAST customers including research institutions and advanced-technology companies and the Oklahoma Office of State Finance, and b. beta testing and evaluation with customers. 12. Validate the delivery of contract requirements by continuing post-contract award compliance reviews. 13. Maintain positive legislative relationships by continuing to respond to legislative requests within two business days. STRATEGY For Oklahoma to increase its competitive advantage and relevance in the 21st Century, it is imperative to support the process of discovery and development of new ideas, new technologies and technology transfer that result in commercialization and significant economic impact for our state and nation. OCAST’s strategy is to advance research and development that help Oklahoma and its industries compete in the global economy. Build on public and private sector strengths Provide leadership, information and assistance to enhance the ability of Oklahoma technology companies and researchers to compete in the global marketplace. Offer short-term financial incentives and capital access vehicles requiring external public and private sector co-investment, including concept and seed capital funding, to better position Oklahoma companies for success. Advance economic development by conducting and publicizing studies that call attention to improvements in technology policies and practices. 6 Provide funding based on merit Evaluate funding applications according to published procedures and criteria to ensure funds are awarded to applications with the greatest technical and commercial value. Utilize external peer review by recognized experts to make award determinations to promote objectivity and avoid conflict of interest to the greatest extent possible. Work with standing advisory committees to continue to refine and improve OCAST’s programs and external peer review process. Monitor and evaluate program performance on an annual basis to make certain tax dollars are spent as intended and produce measurable outcomes that maximize the return on the state’s investment. Leverage resources for greater results Work with partner organizations and stakeholders to leverage their resources to extend the benefit of the state’s investment. Build collaborations with private and public organizations to pursue federal and private foundation funding to benefit existing programs and fund new initiatives. Involve standing or ad hoc advisory committees in all planning efforts. Promote public and private partnerships and networks Continue to build on the Memorandum of Understanding between OCAST and the Oak Ridge National Laboratory and between OCAST and the Oklahoma City Air Logistics Center at Tinker Air Force Base to support research institutions and industry in Oklahoma through collaborative projects and resource sharing. Explore opportunities to create additional Memoranda of Understanding with other government organizations to encourage collaboration with Oklahoma’s research institutions and private industry, with the goal of improving technology transfer and increasing market opportunities. Work to re-establish the OCAST Centers of Excellence program and improve that program’s effectiveness through the incorporation of OCAST’s commercialization services and investment support. PROGRAMS OCAST develops, implements, evaluates and modifies programs and services designed to encourage and enable Oklahoma advanced technology entrepreneurs, researchers and small businesses to accomplish research and development, technology commercialization and technology application. Clients return to OCAST programs as often as necessary for assistance. The programs in the OCAST technology pipeline include: Oklahoma Health Research Goal and Strategic Objectives The health program addresses OCAST’s statutory mandate of supporting health-related research by allocating resources according to merit and leveraging private and federal resources while fostering public and private sector collaboration. Description The Health program competitively awards seed funds for one- to three-year research projects related to human health. Eligible applicants are Oklahoma universities and colleges, nonprofit research organizations and commercial enterprises. These awards enable researchers to gain expertise and produce data needed to obtain larger grants from other sources, including 7 federal agencies and national disease-related funding organizations, and to develop patents which can lead to new businesses. Researchers also benefit from OCAST’s annual health research conference which focuses on ways to assist commercial development of new products and services resulting from health projects. Performance Measures This program produces nationally competitive health science research. Private and federal funding attributed to health projects and the ratio of health support to private and federal support indicate the program’s effectiveness at securing capital for competitive research. The amount of intellectual property generated, licenses and royalties are an indication of the program’s impact on the state’s health science industry. Oklahoma Plant Science Research Goal and Strategic Objectives The plant science program addresses the statutory mandate of supporting basic and applied research in the field of plant sciences by allocating resources according to merit, promoting collaborations and leveraging federal and private resources. Description The plant science program competitively awards funds for basic and applied research related to plant science for one- to two-year periods based on technical merit, commitment of resources and, in the case of applied research, the potential for market success. Eligible applicants are Oklahoma businesses, institutions of higher education and nonprofit research institutions. The applied research awards require a minimum of one dollar matching support for each dollar awarded. Performance Measures Basic research projects – performance measures such as the amount of private and federal funding leveraged by plant science projects, the amount of intellectual property initiated and the anticipated value of patents, licenses and royalties resulting from these basic research projects measure program success. Applied research projects – performance measures include private and federal follow-on funding attributed to plant science projects, intellectual property, license royalties, jobs added/retained, payroll of jobs/retained, actual and projected gross sales, sales distribution and actual and projected cost-avoidance resulting from these applied research projects. R&D Intern Partnerships Goal and Strategic Objectives The intern program provides support for qualified research and development partnership projects that involve Oklahoma industry and Oklahoma institutions of higher education. It increases the pool of scientists, engineers, faculty and business entrepreneurs who can contribute to economic development in Oklahoma. Description Projects funded under this program must meet five requirements: (1) an Oklahoma institution of higher education or a business must be the fiscal agent; (2) OCAST funds must be equally matched from non-state appropriated funds; (3) the research must be performed in an applied research laboratory located at a firm, a nonprofit research institute or an institution of higher education; (4) the mentor must be from industry or be an academic with a documented success record of applied research and (5) an Oklahoma business must benefit. The award may be for one or two years. The external reviewers, a majority of whom reside out-of-state, have shown a preference for programs in which at least 75 percent of the funds (OCAST plus non-state 8 match) go directly to the interns as salary and fringe benefits. The remaining funds are used for principal investigator salary and fringe benefits as well as for supplies to run the program. Performance Measures The program produces commercially viable R&D. In addition, student and faculty interns gain or maintain their interest in remaining in Oklahoma, increase desire for additional technological education and provide measurable economic progress for the state. Oklahoma Applied Research Support Goal and Strategic Objectives The Oklahoma Applied Research Support (OARS) program addresses the statutory mandate of supporting applied research and technology development with significant commercial potential by allocating resources according to merit, promoting collaborations and leveraging federal and private resources. Description OARS competitively awards funds for one- to three-year projects from any technology area based upon technical merit, potential for market success and commitment of resources. The program requires a minimum of one dollar matching support for each state dollar awarded. Eligible applicants are Oklahoma businesses and universities, colleges or nonprofit research organizations that have industrial partners. The program gives preference to projects involving collaboration between research institutions and private industry. Performance Measures This program produces commercially viable R&D. Federal and private funding attributed to OARS projects and the ratio of OARS awards to private and federal support demonstrate the program’s effectiveness at securing capital. Performance measures such as the value of intellectual property, license royalties, jobs added/retained, payroll of jobs added/retained, actual and projected gross sales and actual sales distribution and projected cost-avoidance indicate the program’s effectiveness at technology transfer and the commercial value of Oklahoma R&D projects. Small Business Research Assistance Goal and Strategic Objectives The Small Business Research Assistance (SBRA) program addresses the statutory mandate of supporting applied research and facilitating technology transfer involving small private for-profit businesses by leveraging federal and private resources and promoting action, encouraging strategic partnerships between firms and research institutions and promoting commercialization of new technologies. Description Through the federal Small Business Innovation Research (SBIR) program, federal agencies provide seed support for product feasibility studies and prototype development that is lacking in the private investment community. The federal Small Business Technology Transfer (STTR) program accomplishes this purpose and forges research collaborations between small firms and universities or nonprofit research institutions. Both the SBIR and STTR programs encourage transfer of technology into federal agency programs and private sector applications. OCAST’s program supports these goals by defraying a portion of a qualifying firm’s federal SBIR or STTR Phase I proposal preparation costs and providing bridge funding between Phase I and Phase II federal SBIR and STTR grants. The program provides technical assistance to improve the quality of proposals through proposal development workshops, proposal reviews, client referrals and partnership with i2E’s new SBIR support services. The program offers companies guidance in 9 accessing additional OCAST support and other resources as appropriate to their respective stage of development. Performance Measures This program produces nationally competitive applied research, development and technology commercialization. Federal and private funding attributed to projects and the ratio of OCAST support to private and federal support indicate OCAST’s effectiveness at securing capital for applied research and development. Performance measures such as the increase in federal contracts, jobs added/retained and payroll of jobs added/retained indicate the successful commercialization of technology by firms participating in the SBRA program. Inventors Assistance Service Goal and Strategic Objectives OCAST contracts with Oklahoma State University to operate the Inventors Assistance Service (IAS) program through the university’s New Product Development Center. The service addresses the statutory mandate to provide Oklahoma inventors with information and training on developing their invention and on issues related to patenting/licensing, marketing and manufacturing. The service offers workshops, a Web site, referrals and on-site business and technical consultations. Description The program assists the independent inventor in navigating the process from idea to marketplace. IAS helps inventors move toward the manufacturing, marketing and distribution of their products by providing assistance and information or referring inventors to appropriate service providers who will help them deal with specific steps in the invention process. By providing assistance and information or by referring inventors to appropriate service providers who will help them deal with specific steps in the invention process, the program provides inventors with a streamlined process to help move their innovation forward. Qualified inventors nearly ready for commercialization receive help with activities such as materials testing, marketing, engineering specifications and prototype development. Performance Measures Performance measures are specified in statute and include the number of clients, participants in workshops, value of patents, license royalties, jobs created or retained and number of clients progressing into other OCAST and federal programs. Oklahoma Technology Commercialization Center Goal and Strategic Objectives The Oklahoma Technology Commercialization Center (OTCC) program addresses the statutory mandate of facilitating technology transfer and commercialization and providing pre-seed and seed capital for new innovative firms. The program operates under contract with OCAST and is the product of OCAST’s strategy of promoting collaborations, allocating resources according to merit, stimulating action and leveraging private resources. Description OCAST currently contracts with i2E, a private nonprofit organization, to operate the OTCC program that assists entrepreneurs, early-stage technology companies and firms seeking to commercialize new technologies. The program focuses on assessing needs, guiding clients through the commercialization process and linking them to a comprehensive network of technology sources (including Oklahoma universities) and commercialization services. The program also provides specialized business development services, access to early-stage risk financing and help in transferring technology. Beginning in FY 2012 OTCC, will include business 10 development and commercialization services specifically targeted to Oklahoma’s SBIR and STTR companies. Performance Measures Performance measures include number and type of project clients, activities with all clients, amount and type of financing obtained for clients, jobs created and average wage/salary of new technology-based companies. OCAST Technology Business Finance Program Goal and Strategic Objectives The Technology Business Finance Program (TBFP) was authorized in the Technology Transfer Act of 1998 to address the mandate of providing early stage capital to innovative firms and manufacturers and for leveraging private investment capital. Description This program is designed to promote promising innovation and to support efforts to commercialize in Oklahoma by providing early stage financing. The program requires a match and includes payback provisions. OCAST contracts with i2E Inc. to operate this program. Performance Measures Performance measures include the number of start-up firms and/or manufacturers assisted, survival rate of those organizations, amount of repayments and leveraging of other private and federal dollars. In addition, the program manager submits an economic impact analysis of the program, including such items as jobs and average annual salaries of jobs created/retained. OCAST Seed Capital Program Goal and Strategic Objectives The seed capital program has been crafted to be an economic development tool with a goal of making investment in early stage companies engaged in the commercialization of promising new technologies in Oklahoma. Growing innovative Oklahoma companies that attract other investment as they successfully commercialize their products and services is the ultimate goal. Description In general, through its seed capital program, OCAST seeks to provide funding to innovative Oklahoma companies. The statute and the related constitutional amendment allow the state to take an equity or debt position with firms – an authority that is unique to OCAST as a state agency. Required co-investment with the private sector leverages the agency’s investment. By statute OCAST was given multiple options as to how it could use appropriated funds to meet economic development goals for seed capital stage companies. OCAST invests in Oklahoma Seed Capital Fund LLC, currently managed as a wholly owned subsidiary of i2E Inc. Other fund investors have included the Oklahoma Capital Investment Board (OCIB) and the Oklahoma Development Finance Authority (ODFA). OCAST is the largest contributor to the fund and is the Class A member, which includes the right to review and approve all proposed term sheets with the advice of its investment committee. Beginning in FY 2012, the Seed Capital program will include a concept fund intended to address the needs of companies requiring smaller seed capital investment for earlier-stage projects. Unlike TBFP, awards from the concept fund are convertible should the client pursue larger seed capital investment at a later date. 11 Performance Measures Performance measures include the leverage of private investment funds, business finance impacts resulting from OCAST investment (including job growth and economic impact on the state) and expanding availability of investment capital for technology business development. Oklahoma Nanotechnology Applications Project Goal and Strategic Objectives The Oklahoma Nanotechnology Applications Project (ONAP) is authorized by statute. This project assists qualified Oklahoma companies with application of nanotechnology through research, development and manufacturing and helps them improve current or create new cutting-edge products or processes. These awards encourage nanotechnology collaboration between industry, institutions of higher education and nonprofit research institutions. Description ONAP competitively awards funds for one- to three-year research and development projects with an emphasis on nanotechnology applications in product development supporting the Oklahoma manufacturing and business community. Universities must collaborate with private industry to be eligible to participate in this program. OCAST will contract to support the management of the Oklahoma Nanotechnology Initiative (ONI). ONI provides a focus on the promotion and support of business, academic, manufacturing, employment and investment initiatives related to nanotechnology and coordinates activities on a regional basis for the benefit of Oklahoma. It provides education to Oklahoma manufacturers and businesses as to the potential benefits of nanotechnology in product and process innovation to help them better understand nanotechnology applications. ONI also helps to identify potential applicants for ONAP funding and hosts the annual Oklahoma nanotechnology symposium (Oklahoma NanoFocus). Performance Measures Performance measures include the number of nanotechnology applications funded, the number of manufacturers and businesses educated, the number of regional and in-state collaborations initiated and/or achieved, the number of jobs created or retained and the average wage/salary of those jobs, the increase in gross sales and the number of manufacturers and businesses served. The private and federal dollars leveraged by ONAP will also serve as an indicator of overall performance. Oklahoma Manufacturing Alliance Goal and Strategic Objectives The Oklahoma Manufacturing Alliance, an OCAST partner organization, addresses the statutory mandate of stimulating manufacturing productivity and modernization. The Manufacturing Alliance is nationally recognized for excellence in terms of its ability to respond quickly, encourage action and leverage federal and private resources. Description The Oklahoma Alliance for Manufacturing Excellence Inc. is a private, nonprofit organization that manages the programs which provide leadership and assistance to Oklahoma’s small- and medium-sized manufacturers to help them become progressively more successful in their marketplace. Through a network of extension agents and applications engineers, the Manufacturing Alliance delivers real, hands-on resources for improving productivity, increasing sales and reducing costs. Using federal, state, local and private funds, the Oklahoma Alliance for Manufacturing Excellence Inc. contracts with local organizations to field regional manufacturing extension agents who deliver to Oklahoma manufacturers services in technology application, workforce training, financing, market assessment and business relations. 12 Applications engineers, sponsored in part through Oklahoma State University, provide technical assistance to manufacturers in rural areas where resources are limited. These locally accessible applications engineers assist with mechanical designs, plant layouts and a variety of other technical issues. OCAST provides a portion of the state funding and oversight for the system by means of an annual contract with the Oklahoma Alliance for Manufacturing Excellence Inc. Performance Measures This program measures productivity through such measures as jobs created/retained, cost savings, efficiency improvements, cost avoidance and capital investment. GOVERNANCE AND OPERATIONS Structure Management Philosophy and Structure OCAST’s management functions as a team, the success of which depends heavily upon the cooperation, contribution and commitment of each player. The teamwork concept extends to OCAST’s interactions with other agencies, organizations and stakeholders. OCAST works closely with the business and financial sector to stimulate innovation in existing and developing Oklahoma businesses. Therefore, in accordance with statute, all staff positions 13 are unclassified, governed and compensated in a manner that compares to similar positions in the private sector and, as listed below, are exempt from the Oklahoma Personnel Act. Following is a list of approved positions: Executive Director – Directs the administrative affairs and general management of OCAST. Develops and directs implementation of strategic plans and policy related to OCAST’s mission. Presents and communicates with governor, legislative subcommittees and legislative leadership regarding OCAST’s annual budget request and any pending statutory changes relevant to OCAST. Communicates regularly with local, state and national leaders and organizations about OCAST and the importance of scientific research and the growth of knowledge-based businesses to Oklahoma’s economy. The executive director is accountable to the OSTRaD board. Unclassified / Annual salary of $96,027 effective July 1, 2009 Deputy Director – Responsible for the operations as assigned by, or in the absence of, the executive director. Responsibilities include directing the formulation, implementation and evaluation of programs, policies, procedures and standards; development of operating plans, annual budgets and performance measures; represents OCAST at various meetings at the local, state and national level. The deputy director is accountable to the executive director. Unclassified / $70,000 - $85,000 Director, Administration and Finance – Responsible for the general administration of the administration and finance division including developing appropriation requests and operating budgets; developing, implementing and administering administrative procedures for accounting, purchasing and office administration; maintaining all official records of the board and agency. The director, administration and finance, is accountable to the executive director in the handling of the agency’s general administrative affairs and finances including the disposition of highly confidential proprietary material submitted by applicants. Unclassified / $65,000 - $80,000 Director, Programs – Responsible for the general administration of the programs division including the development, administration, evaluation and revision of research funding programs, technology development and transfer activities and management of confidential proprietary material submitted by applicants. Directs the staffing of program operations, advisory committees, development and revision of program specifications, rules, regulations and division budget and appropriation requests. The director of programs is accountable to the executive director. Unclassified / $65,000 - $80,000 Director, Government Relations and Strategic Initiatives – At the direction of the executive director, directs the design, development and implementation of agency legislative goals and strategy for securing desired legislative and executive action and coordinates legislative activities with all OCAST divisions. Proposes and drafts legislation relevant to new OCAST programs. Serves as key strategic advisor to executive director. Coordinates with OCAST staff to identify and document OCAST programs and services requiring assistance and support of the legislature and governor. Directs special projects assigned by the executive director. Directs research studies and reporting on various topics regarding technology-based economic development. Represents agency before and organizes and facilitates OCAST communication with public officials and local, state and national organizations. Unclassified / $65,000 - $80,000 Associate Director – Responsible for designing, implementing, operating and evaluating division programs and activities, as assigned. Recommends new programs and activities related to the OCAST mission. A senior level technical strategist with a global perspective of all programs to build collaborative efforts across academia, industry and government. Supervises employees, as assigned. Responsible for the general administration of the division in the absence of the director. Associate directors are accountable to supervising directors and to the executive director for the correct disposition of highly confidential and 14 proprietary material submitted by applicants for OCAST funding and assistance. Unclassified / $50,000 - $65,000 Public Information and Rural Outreach Manager – Writes articles and hosts radio and television productions on the subject of technology-based economic development and relevant Oklahoma programs and initiatives. Coordinates OCAST’s message with media outlets and the general public. Works with related organizations such as chambers of commerce and the Oklahoma Department of Commerce to promote Oklahoma research and advanced technology companies. Responsible for facilitating cooperation in rural technology-based economic development initiatives. This position reports to the director, government relations and strategic initiatives. Supervises employees, as assigned. Unclassified / $55,000 - $70,000 Client Services Manager – Responsible for the direct support of clients by facilitating partnerships between small businesses and federal funding agencies to promote commercialization of new technologies. Provide companies technical assistance in accessing all OCAST programs and other resources as appropriate to their respective stage of development. Unclassified / $45,000 - $60,000 Programs Officer IV – Supervises the planning, coordination or direction of a component of the agency or program(s) established to accomplish a basic goal or mission of the agency. May supervise one or more employees and/or contractors. Represents OCAST at conferences, meetings and hearings related to OCAST’s administrative operations. Unclassified / $45,000 - $60,000 Programs Officer III – Under minimal supervision, plans, coordinates or directs a component of the agency or program(s) established to accomplish a basic goal or mission of the agency. May supervise one or more employees and/or contractors. Represents OCAST at conferences, meetings and hearings related to OCAST’s administrative operations. Unclassified / $40,000 - $55,000 Programs Officer II – Under general supervision, plans and coordinates a component of the agency or program(s) established to accomplish a basic goal or mission of the agency. May supervise one or more employees and/or contractors. Represents OCAST at conferences, meetings and hearings related to OCAST’s administrative operations. Unclassified / $35,000 - $50,000 Programs Officer I – Under direct supervision, assists in developing, implementing, evaluating and managing programs or program functions including program services and/or events. May staff program advisory committees, including producing reports for board and/or committee action. Administers small programs and projects, as assigned. Conducts surveys and compiles and interprets results; provides consultation to staff to aid in the development of appropriate assessment and evaluation for programs and services. Unclassified / $30,000 - $45,000 Accountant IV – Responsible for accounting activities involving the supervision and direction of accounting operations including planning, reviewing and organizing the work of assigned staff; assuring availability of funds, preparing analysis of expenditures and monthly reports of operations, financial statements, schedules and financial statistical data; working with private sector clients and vendors as necessary in resolving problems. Unclassified / $45,000 - $60,000 Accountant III – Under minimal supervision, classifies and posts revenues and expenditures. Assures availability of funds for agency obligations and expenditures. Maintains accounting records and files documenting financial transactions. Prepares analyses of expenditures and monthly reports of operations, financial statements, schedules and financial statistical data. Works with private sector clients and vendors in resolving invoicing and payment issues. May supervise employees as assigned. Unclassified / $40,000 - $55,000 15 Accountant II – Performs a wide range of tasks involving the maintenance, analysis, interpretation and reporting of financial accounting data and the application of generally accepted accounting principles and theories in the management of financial accounts. Includes maintenance of highly diverse accounts, financial analysis and reporting, reconciliation of accounting data, reviewing and processing financial documents for payment and similar responsibilities. Unclassified / $35,000 - $50,000 Assistant to the Executive Director – Under minimal supervision, assists the executive director in managing the administrative affairs of OCAST. Serves as secretary to the board and agency liaison with the governor’s office and the secretary of state. Organizes activities and information associated with OCAST’s five-year and annual planning processes, assists with agency projects and organizes the executive director’s time, confidential files and correspondence. The assistant to the executive director is accountable to the executive director in performing all duties. Unclassified / $30,000 - $45,000 Office Manager – Performs a wide range of tasks supporting the overall administrative and information technology operations of the agency. Manages everyday tasks necessary for the efficient running of the agency and is responsible for front-desk reception duties, ordering agency office supplies and other assigned administrative and accounting duties. Position is responsible for managing the flow of internal information for the agency including incoming and outgoing mail, faxes and agency deliveries. Serves as the primary point of contact for all facility related office equipment and technology issues. Other general tasks include supporting agency personnel with communications and scheduling. Unclassified / $30,000 - $45,000 Administrative Assistant II – Under general supervision, may assist in administering the activities associated with developing, implementing, operating and evaluating programs and functions. Assists in staffing board, committees, subcommittees and conferences including preparing necessary materials and preparing minutes of meetings and setting-up and maintaining files and records; may gather and summarize information for staff or committee action. Composes and prepares program and administrative documents and correspondence. Determines when to provide information to the public regarding routine services, policies and regulations and when to refer it to a senior staff member for official action or decision. Duties may also include reading, sorting, distributing and maintaining a log of incoming and outgoing materials. May perform duties of receptionist. Unclassified / $25,000 - $40,000 Administrative Assistant I – Under direct supervision, assists in administering the activities associated with developing, implementing, operating and evaluating programs, including assisting with conferences, workshops and other events. Prepares program documents and correspondence. Assists in staffing board or program advisory committees, including preparing meeting minutes and materials and maintaining required files and records. Duties may also include reading, sorting, distributing and maintaining a log of incoming and outgoing materials. May perform the duties of receptionist. Unclassified / $20,000 - $35,000 Additional positions approved but not currently in use include: Account Clerk Accountant I Administrative Services Manager I and II Assistant Director Comptroller Director, Technology Information Services Human Resources Manager Information Systems Network Management Specialist III MIS Coordinator Program Coordinator I, II and III Program Manager Programs Officer I Research Analyst Senior Manager, Management Information Systems Senior Outreach Liaison Senior Program Manager 16 Professional Service Contracts OCAST uses professional service contracts to supplement capabilities and maintain low administrative costs. Functions exist which, due to statutory or program requirements of highly specialized and diverse expertise or infrequency, are more effectively and efficiently performed by contract. Some, though not all, specific professional services contracts can be anticipated at the outset of the fiscal year. As of the date of submission of this business plan, the staff intends to execute the following professional services contracts in FY 2012: Office of the State Auditor and Inspector for annual audit services, in an amount not to exceed $30,000 Office of Attorney General for legal services, one-half time for one year, in an amount not to exceed $46,000 Contract for an information technology enhancement of program database and development and installation of an electronic application system to support the programs division processes and data management in an amount not to exceed $450,000 Contract with Office of State Finance for IT services including personal computer support, network support and database hosting not to exceed $50,000 Continuation of contracts with Clear Channel Communications and Cox Radio KRMG for the weekly radio show Oklahoma Innovations, in an amount not to exceed a total of $50,700 Contract with an in-state marketing firm to enhance the agency’s position as the leader in Oklahoma technology-based economic development in an amount not to exceed $40,000 Continue contracting with the Oklahoma Alliance for Manufacturing Excellence Inc. to operate the Oklahoma Manufacturing Alliance in an amount not to exceed $1,109,470 Contract support for the operation of the Oklahoma Nanotechnology Initiative in an amount not to exceed $100,000 Continue contracting with Oklahoma State University to operate the Inventors Assistance Service in an amount not to exceed $153,641 Continue contracting with i2E Inc. to operate the Technology Business Finance Program in an amount no to exceed the repayments and carryover funds currently in the program plus an annual management fee of $194,487 Continue contracting with i2E Inc. to operate the Oklahoma Technology Commercialization Center in an amount not to exceed $1,808,241 Contract with i2E Inc. to manage the Oklahoma Seed Capital Fund not to exceed $375,000 Contract with Presbyterian Health Foundation, dba Oklahoma Health Center Research Park Corporation, to operate a technology-business incubator located in the Oklahoma Health Center Research Park and appropriately equipped to meet the needs of start-up, technology-intensive firms including, but not limited to, bio-technology and biomedical firms (Title 74. Chapter 70, Section 5060.29) $100,000 Standing Advisory Committees OCAST receives support and assistance from the Oklahoma Health Research, Oklahoma Plant Sciences Research, Oklahoma Applied Research and Small Business Research Assistance advisory committees for research-related programs. Research-related standing committees must consist of representatives of the “business, higher education and research communities (74 O.S., Section 5060.9[a])” and at least one-third of the members of each committee must be researchers. Committees are approved annually by the board. The Seed Capital Investment 17 advisory committee is created to assist OCAST in evaluating potential investments with the Seed Capital Revolving Fund (74 O.S., Section 5060.21). Oklahoma Applied Research Advisory Committee Kenneth E. Bartels, D.V.M., M.S. Oklahoma State University David Humphrey Oklahoma Equity Partners Larry Kennedy Oklahoma Medical Research Foundation E. Ann Nalley, Ph.D. Cameron University Karl Reid, Sc.D., P.E. Oklahoma State University E.R. “Tracy” Shirley III Harrison Gypsum Company Ed Shreve, Ph.D. (chair) Stillwater Dale Teeters, Ph.D. University of Tulsa Monte Tull, Ph.D. University of Oklahoma Oklahoma Health Research Committee* William Canfield, M.D., Ph.D. Cytovance Corporation Tyrrell Conway, Ph.D. University of Oklahoma Mary Beth Humphrey, M.D. Ph.D. University of Oklahoma Health Science Center Katherine M. Kocan, Ph.D. Oklahoma State University Jerry Malayer, Ph.D. Oklahoma State University Rodger McEver, M.D. (chair) Oklahoma Medical Research Foundation Kenton Miller, Ph.D. University of Tulsa Mack Roark, D.Min. Shawnee Hal Scofield, M.D. Oklahoma Medical Research Foundation *Appointed by the governor Oklahoma Nanotechnology Applications Project Committee Larry Grable, J.D. Tomlinson & O’Connell P.C. Jim Mason Oklahoma Nanotechnology Initiative David Schmidtke, Ph.D. University of Oklahoma Dale Teeters, Ph.D. (chair) University of Tulsa Ranji Vaidyanathan, Ph.D. Oklahoma State University Oklahoma Plant Sciences Research Advisory Committee Peter Camfield, Ph.D. Oklahoma Panhandle State University Ronald L. Elliott, Ph.D., P.E. Oklahoma State University Rod Moesel (chair) American Plant Products and Services Inc. Richard Nelson, Ph.D. Samuel Roberts Noble Foundation David Porter, Ph.D. Oklahoma State University 18 Seed Capital Investment Committee James Dickson BancFirst David McKinney, J.D. GableGotwals Larry Pulliam Southern Oklahoma Memorial Foundation James Wheeler, Ph.D. University of Oklahoma Price College of Business Sherri Wise Osteopathic Founders Foundation Small Business Research Assistance Committee Colin Cumming ICx Nomadics Inc. Phillip Free, J.D. Crowe and Dunlevy James Grimsley, (chair) Design Intelligence Inc. Dorothy Overal U.S. Small Business Administration Ann Patten Scrub Oak Technologies Kay Wade Logan County Economic Development Council Finance OCAST’s programs, activities and general operations are financed primarily through state general revenue appropriated funds. OCAST’s enabling statute authorizes the use of three funds: the General Administration and Data Processing Fund, the Research Support Revolving Fund and the Seed Capital Revolving Fund. Each of the three funds is authorized to accept state general revenue appropriations, grants, gifts and donations. The Seed Capital Revolving Fund is authorized to accept loan repayments and investment proceeds. Each fund is authorized to finance specific activities of the agency. The majority of OCAST’s annual state appropriation is transferred to the Research Support Revolving Fund for operation of all OCAST programs. As instructed by the state legislature, House Bill 2182 directs $3,966,355 to be paid to the Seed Capital Revolving Fund for FY 2012. These funds will be transferred from the Research Support Revolving Fund to the Seed Capital Revolving Fund in monthly allocations. The revolving funds have no fiscal year limitations. All of the agency’s expenditures must be confirmed by Oklahoma’s Office of State Finance to be consistent with an annual budget work program approved by that office. Appropriation History 19.2 22.4 22.0 14.1 12.7 15.6 3.1 8.1 7.3 6.4 6.4 6.0 6.0 9.0 11.7 11.6 12.1 12.7 11.6 11.0 11.6 12.4 22.4 22.9 17.8 $0 $5 $10 $15 $20 $25 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Fiscal Year millions $ 19 PLANNING Comprehensive Planning OCAST produces an annual business plan and a five-year strategic plan. Based on data provided by the National Science Foundation, OCAST benchmarks its funding compared with similar state agencies in other states, especially those in the same region. Support of R&D funding by state legislators in the region continues, although only one nearby state, Kansas, invests more in technology-based economic development (TBED) than the national average of all U.S. states. The National Science Foundation’s measure of state agency R&D expenditures per one million dollars of the state gross domestic product is shown in Chart 1 below1. In the region, Oklahoma ranks the third highest in state agency expenditures per $1 million of state gross domestic product. Rankings did change for other regional states. Kansas with $100 per $1 million of state gross domestic product, dropped from $130 the previous year while maintaining its No. 1 regional ranking. Missouri also lost ground by decreasing from $84 to $68 and coming in fourth behind Oklahoma at $79. Oklahoma’s investment increased from $69 the previous year. Arkansas increased its investment from $54 to $81, jumping from fourth place behind Oklahoma the previous year, to second place in the region. Chart 1: State Agency R&D Expenditures per $1 Million of State Gross Domestic Product 26 79 81 100 9 32 51 68 0 20 40 60 80 100 120 NM TX LA CO MO OK AR KS Due to NSF survey differences, the metric should be interpreted as a rough measure of the ratio between the amount of state agency R&D funding and the size of a state’s economy. U.S rankings show an average of $89. Among the eight regional states, only Kansas surpasses the national average state expenditure per $1 million of state gross domestic product. States Continue Tech-Based Investments Although most all states struggled with state budgets due to the recession, several states found funding to advance tech-based economic development. For example: Georgia’s Centers of Innovation program will be integrated with the programs of the Georgia Research Alliance (GRA). The goal for integrating the programs is twofold: to maximize potential for high-tech companies generated from university R&D, and to 1 National Science Foundation (NSF), Science and Engineering Indicators, 2010. Data excludes state-run colleges and universities as well as laboratories or experiment stations controlled by universities; funding from these institutions is collected and classified as academic R&D expenditures. Data may include some non-R&D activities such as commercialization. 20 leverage the resources of Georgia’s research universities to retain and recruit companies in industries considered crucial to the state’s growth. GRA is slated to receive $7.5 million in FY 2012, which includes $3 million in bond funding to purchase equipment and fund R&D infrastructure. This is a decrease from the $16.7 million revised FY 2011 budget. Colorado Governor John Hickenlooper signed into law a tax break on agricultural products and an extension of a tax-credit program for angel investors. That measure continues a program offering tax credits to investors who give at least $25,000 to a small Colorado business that is less than five years old and is involved in the research, development or manufacturing of new technologies, products or processes. Bioscience Connecticut will improve the capacity and productivity of research, enabling the University of Connecticut Health Center to double federal and industry bioscience research grants. The result will be new technologies that can be transferred to industry, strengthening the competitiveness of existing Connecticut businesses and creating new enterprises. Connecticut Governor Dannel P. Malloy says the law will improve access to health care. Illinois Governor Pat Quinn has launched the Illinois Innovation Network (IIN) to give entrepreneurs resources needed to build and grow businesses and jobs. The governor announced Illinois is joining in the national effort to promote high-tech entrepreneurship by connecting the IlN with Startup Illinois, a component of the Startup America Partnership announced by President Obama earlier this year. Startup Illinois will let Illinois-based affiliates and entrepreneurs leverage technology, content and tools to access national resources, and celebrate local startup successes on a national stage. Maryland is accelerating and leveraging its investment in the space industry. Governor Martin O’Malley has unveiled a bold new initiative to increase business development and commercialization opportunities of the state’s space industry. Maryland hopes to leverage federal facilities and institutions of science and discovery to unlock economic potential of the state’s space sectors. State Science and Technology Indicators NSF uses 52 indicators to measure state science and technology infrastructure, of which 20 are listed in the accompanying table. The other 32 indicators are related to elementary and secondary education, higher education and workforce and were not included in the table below. The NSF science and technology indicators listed in the table below are related to financial R&D inputs, research development outputs and S&T in the economy. Of the 20 indicators, Oklahoma strengths included eight measures in the 2nd quartile and two measures in the 3rd quartile, with the remaining measures providing opportunities for improvement. National Science Foundation Oklahoma S&E Indicators2 Indicators Year Financial Research and Development Inputs R&D as Share of Gross Domestic Product 4th quartile Federal R&D Obligations per Civilian Worker 4th quartile Federal R&D Obligations per Individual in S&E Occupation 4th quartile State Agency R&D Expenditures per $1 Million of Gross Domestic Product 3rd quartile State Agency R&D Expenditures per Civilian Worker 3rd quartile State Agency R&D Expenditures per Individual in S&E Occupation 3rd quartile Business-Performed R&D as Share of Private-Industry Output 4th quartile Academic R&D per $1,000 of Gross Domestic Product 3rd quartile Research and Development Outputs S&E Doctorates Conferred per 1,000 S&E Doctorate Holders 2nd quartile 2 NSF Science and Engineering Indicators, State Indicators Section, Chapter 8, 2010. 21 Academic S&E Article Output per 1,000 S&E Doctorate Holders in Academia 3rd quartile Academic S&E Article Output per $1 Million of Academic R&D 2nd quartile Academic Patents Awarded per 1,000 S&E Doctorate Holders in Academia 3rd quartile Patents Awarded per 1,000 Individuals in S&E Occupations 3rd quartile Science and Technology in the Economy High-Technology Share of All Business Establishments 3rd quartile Net High-Technology Business Formations as Share of All Business Establishments 2nd quartile Employment in High-Technology Establishments as Share of Total Employment 3rd quartile Average Annual Federal SBIR Funding per $1 Million of Gross Domestic Product 4th quartile Venture Capital Disbursed per $1,000 of Gross Domestic Product 4th quartile Venture Capital Deals as Share of High-Technology Business Establishments 4th quartile Venture Capital Disbursed per Venture Capital Deal 4th quartile States that excel in these rankings rely on continued federal, state and private investments in technology-based economic development. Financial Planning OCAST is required by statute to “recommend an appropriate level (of funding for OCAST’s programs) . . . that will make these programs nationally competitive with those of other states” and to “adopt . . . a threshold funding level for each of the programs . . . that is great enough to have a significant impact and carry out the intent of this act.” (74 O.S., Section 5060.22) After the governor and legislature approve the OCAST appropriation, staff and board members develop a business plan for the application of available resources, abiding by the directives and constraints on spending articulated in the signed appropriation bills. Unless established otherwise by the board, the threshold funding levels are the FY 2012 appropriation levels shown in this plan (see Five Year Appropriation History by Program below). Program and Service Planning OCAST develops and initiates new programs and services by building consensus among constituents and stakeholders, which may include standing and ad hoc program advisory committees, higher education and career-tech representatives, nonprofit organizations, businesses, other agencies and state leaders. Most OCAST programs are initiated through legislative intent. When it is evident a need or opportunity should be an OCAST priority and is consistent with OCAST’s mission, staff checks relevant statutes and, when necessary, consults with the state Office of the Attorney General to determine whether OCAST’s general authorization covers the need/opportunity. If so, a recommendation is submitted to the OSTRaD board. Specifications for each new program are designed by OCAST staff working in consultation with a standing or ad hoc advisory committee and the Office of the Attorney General. Appropriate state and national experts are frequently consulted in this phase of program design. The board may provide advice and guidance. The information is presented to the OSTRaD board for consideration and approval. 22 FIVE YEAR APPROPRIATION HISTORY BY PROGRAM Activities FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 General Administration $ 690,750 $ 690,750 $ 850,000 $ 739,075 $ 687,340 Program Services and Support 0 0 1,354,675 1,368,970 1,304,000 Health Research 4,823,619 4,594,117 4,253,299 4,000,000 4,005,219 Applied Research 4,160,760 4,428,545 3,907,100 1,900,000 2,341,616 Intern Partnership Program 558,994 558,994 599,149 260,000 241,800 Plant Science Research 600,000 702,568 567,983 709,656 659,980 Nanotechnology Research 1,221,302 1,421,302 1,437,100 1,500,000 720,000 Manufacturing Extension Services 1,575,453 1,532,166 1,372,028 1,192,978 1,109,470 Technology Commercialization 3,233,657 3,247,319 2,914,776 2,534,398 2,052.728 Small Business Research Assistance 371,070 377,648 338,500 200,000 186,000 Inventors Assistance 223,567 184,483 190,000 165,205 153,641 Technology Information Services 347,335 368,615 373,031 316,916 383,300 Seed Capital Fund 650,000 4,350,000 3,868,922 4,264,898 3,966,355 Bioenergy Center 4,000,000 0 0 0 0 Biofutures Institute 500,000 0 0 0 0 TOTAL FUNDING$22,956,507 $22,456,507 $22,026,563 $19,152,096 $17,811,449 ADMINISTRATIVE COSTS 3.01% 3.08% 3.86% 3.86% 3.86% SOURCES AND USES OF REVENUES Sources: Reserves for OCAST Out-Year Obligations $ 9,763,979 Reserves for Seed Capital Obligations 10,362,297 Projected FY-2011 Available Carryover 1,501,777 FY-2012 State Appropriated Revenues 17,811,449 TOTAL SOURCES $39,439,502 Uses: Projected FY-2012 Expenditures Administration $ 687,340 Program Services 1,629,000 Programs Health Research 4,585,443 Applied Research 3,039,587 Intern Partnership Program 354,276 Nanotechnology Research 1,311,955 Plant Science Research 797,422 Small Business Research Assistance 186,000 Technology Commercialization 2,255,728 Oklahoma Manufacturing Alliance 1,109,470 Inventors Assistance 153,641 Seed Capital Fund 14,328,652 Technology Information Services 383,300 TOTAL USES $30,821,814 Estimated Cash Balance 6/30/2012: Out Year Program Obligations $ 7,084,191 Unobligated Projected Cash Carryover 1,533,497 $ 8,617,688 |
Date created | 2011-07-21 |
Date modified | 2011-10-27 |