Utah Governor’s Office of Economic Development

DIRECTOR ORIENTATION MEETING

• To provide center directors with a comprehensive set of guidelines regarding administrative procedures governing the Centers program. Some of these procedures are established by law or by statute; others have been defined by the office of the Utah Centers of Excellence Program (COEP) to facilitate administration of the program.
• To provide the COEP office an opportunity both to introduce new initiatives (e.g. electronic submission of annual reports) and to highlight and focus upon key Centers program objectives.
• To provide a forum for center directors to ask questions, make suggestions, and communicate concerns to the COEP office.
• To allow center directors to become acquainted with all of the currently funded centers and to meet the other directors.
• The COEP office strongly encourages collaboration between centers. We believe interaction occurs more easily when individual directors know one another and have had opportunity to discuss their various programs. Combining the complementary strengths of multiple centers greatly enhances the opportunities for scientific advancement and the ultimate commercialization of Center technologies.

PROGRAM HISTORY

• Established in 1986 by the Utah State Legislature
• Total state funds committed to the program: $34,304,095 (through FY 2001-2002)
• Total matching funds leveraged: Over $356,016,123
• Total centers established (including 2001-2002 fiscal year): 96
• Total patents issued: 170
• License agreements: 197
• New companies created: 142
• New jobs created: 1300+
• Average salary: $68,000

OBJECTIVE

The primary objective of the Centers of Excellence Program from its inception has been to encourage the commercialization of leading edge technologies developed at Utah's universities and colleges. This commercialization, accomplished through licensing patented technologies and by creating new companies, impacts Utah's economic development by the creation of jobs, the flow of licensing royalties, the expansion of the tax base, and the leveraged use of matching fund dollars to strengthen research and development at Utah's institutions of higher learning.

PROJECTED FUNDING STATUS FOR FISCAL YEAR 2003 - 2004

During the current funding cycle the COEP office received centers proposals totaling $4 million in requests. As you are aware, the legislature authorized funding of $2 million for the Centers of Excellence Program. It is clear that competition for funding is intense and we anticipate that this will also be true next year.

Our anticipation is that funding for the fiscal 2003 - 2004 year will be the same as the current year. From this funding about $150,000 will be set aside for planning grants and for the Commercialization Consulting Program. The remaining will be available to fund individual centers.

CENTER REVIEW FEEDBACK

Generally centers can be funded upon an annual review for a period of five years. In the first 1-2 years of funding, awards are granted based on the commercial potential perceived in each center. In later years, subsequent review and approval of funding becomes increasingly competitive and depends on the specific accomplishment of milestones and deliverables.

LEGISLATIVE ISSUES

As a state funded government program, we are required by the Utah State Legislature to provide result-oriented information that justifies our budget requests for each fiscal year. The Centers of Excellence Program is highly regarded by members of the state legislature, but these elected officials take their stewardship over state funds very seriously. In-depth program reviews, budget analyses, audits and other oversight activities are an important and on-going part of the program's relationship with the state legislature. It is critically important that we receive the required annual report as scheduled and that the information provided is accurate and well documented.

• Contact your legislators. The legislature must know that technology development has been and will continue to be a factor in Utah's economic growth. Contact your legislators to let them know of the exciting technology being developed at your center and of the potential impact to Utah's economy.
• Invite your legislators to tour your center. This is a valuable opportunity for legislators to actually see the development of new technologies and to be aware of the economic impact of your activities.
• Provide regular information to your legislators. Be sure your legislator is aware of any significant events or achievements of your center. If patents are granted, licenses are signed, new companies are created, or technological breakthroughs occur, be sure your legislators are informed and perhaps invited to any meetings where these accomplishments are recognized.
• Legislative Roster. The Utah State Legislature roster and other information is available on the following web site: http://www.le.state.ut.us. Please identify the legislators in your district and make regular contact with them.

COMMERCIALIZATION PROCESS

Over the past few years, the Centers of Excellence Program has funded a consulting program to assist center directors in preparing and implementing commercialization strategies. Each center is unique in terms of which strategy is optimum - there is no single solution and each requires customized approaches.

Early market surveys and competitive analyses are conducted to discover which market segments are most promising and which product features will be of interest to potential customers and licensees. Consultants assist in targeting potential licensees for the technology and in positioning products for anticipated markets.

These early strategic discussions often reveal product variations that can be introduced to the marketplace earlier than previously planned. Such early commercialization has several benefits: getting products to consumers for preliminary market validation and directional planning; early cash flow strengthens continuing research at the center and hastens financial independence; and the future value of technology licenses are enhanced.

The Centers of Excellence office works closely with the Technology Transfer Offices at the respective universities in an effort to extract maximum value from the licenses that are signed for centers technologies. Through the commercialization consulting program assistance is given in defining market opportunities, identifying potential target licensees, providing key information for license valuations, and consulting assistance to those companies considering license opportunities