“Advantages of InternationalPartnerships in Establishing

“Promoting Advanced Materials Acrossthe Atlantic” Workshop

Friday, October 17th, 2008

Partnerships in EstablishingNanotechnology”

Walt Trybula, Ph.D.IEEE Fellow & SPIE Fellow

Director, NANOMATERIALS APPLICATION CENTER

• Challenges• Nanotechnology• Texas’ Approach to Understand

Technology Needs• Texas’ Response to Address Needs

OUTLINE

• Implementation Examples• Summary• Background Material

• Texas State University & San Marcos• NANOMATERIALS APPLICATION CENTER

WHAT INTERNATIONAL BARRIERS MOSTAFFECT COMPETITIVENESS?

• Lack of “local knowledge” and language• Lack of access to governmental sources• Different cultural emphasis• Low intellectual property protection in some

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• Low intellectual property protection in somecountries

• Example: At semiconductor industry level, PRChas caused significant concern with– “tax” on off-shore producers of semiconductors– changing industry standards (e.g., wireless)

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THE COST OF BEING LATE

• Being leading edge means always being in therace to improve– It is all about global competition

• Being late means losing leading edgecapabilitiescapabilities

• Catching up requires investing in the oldtechnology and the new technologysimultaneously– Requires very deep governmental funding

• The greatest benefits come to the earliestsuccessful entries

NANOTECHNOLOGY OPPORTUNITIES

Jobs• Most of the initial jobs in nanotechnology are those that

require significant education.– Scientists– Doctors– Researchers– Researchers– Engineers– Technicians

• However, all companies require supporting personnel toperform the administrative and clerical duties.

• As manufacturing develops, there will be morerequirements for people with specialized training, like thatwhich can be obtained at community colleges.

NANOTECHNOLOGY OPPORTUNITIES

Once into manufacturing, the challenges for producingquality product will be the responsibility of the peoplerunning the processes. These skill requirements willnot be the Ph.D., M.D., or even Master’s level education.– Skills– Skills

• Being able to understand the terminology• Being able to follow guidelines• Troubleshooting the processes

– Education• A college degree will always be beneficial• Specialized training at a community college will be a must• Continued learning is required

NANOTECHNOLOGY OPPORTUNITIES

Local support• Tie to community colleges

– Community colleges can develop programs to meet localrequirements.

– Normally, the development of specialized programs startsearly in the process and well before the graduates are needed.early in the process and well before the graduates are needed.

• Collaborative efforts with researchers– Nanotechnology is a different type of industry, because the key

items for developing, measuring, and producing products aretoo expensive to be available to the typical start-up. (Thereare few people with a scanning electron microscope in theirgarage!)

– Collaborating with researchers at local universities/institutescan provide an efficient means of developing new ideas.

NANOTECHNOLOGY OPPORTUNITIES

Attracting businesses/start-ups• There are numerous means of attracting businesses

including:– Tax incentives– Facilities at reduced rentals– Workforce training programs– Workforce training programs

• Start-ups have slightly different requirements including:– Facilities for small companies including Incubators– Contacts with people who can help them understand the

requirements of a business– Support groups in the community– Similar companies in the start up phase

NANOTECHNOLOGY OPPORTUNITIES

Infrastructure• Availability

– Facilities for operation/manufacturing.– Workforce development/availability– Collaborative opportunities with researchers, especially at

universities or institutesuniversities or institutes– Skills/experience in the specific area– Supplier community presence

• Competitors/related companies– Organizations in related fields are a positive influence– Direct competitors, especially if both are start-ups, provides

some negative incentive.– Successful start-ups can provide guidance

WHAT TEXAS HAS TO OFFER

Texas’ Advanced Mfg.Industrial Clusters!!

• Industry Core• Ancillary• Support

Slide courtesy of Dr. Don Hicks, UT Dallas

TEXAS’ ROLE IN ADDRESSING NEEDS

• Texas Technology Initiative– Texas Strategy on Advanced Technology

• Six Cluster Industries• Six Key Technologies

• Enterprise Fund• Enterprise Fund– Bringing business to Texas

• Emerging Technology Fund– Investments– Grants– Research Superiority

STATE OF TEXAS ROLE

• The Texas Technology Initiative (TTI) was developed toidentify the needs of the key Texas industries and therelated technologies. The Texas Workforce Commission(TWC) formed investigative teams (Cluster Working Groups)to evaluate the key industry groupings throughout Texas

• Six Cluster Industries• Six Cluster Industries– Advanced Technologies and Manufacturing– Aerospace and Defense– Biotechnology and Life Sciences– Energy– Information and Computer Technology– Petroleum Refining and Chemical Products

Texas Technology Initiative (TTI)• The TTI is a broad, technology-based platform for 21st

century economic development– Scope: Semiconductor, nanotech, biotech,

MEMS, IT / wireless, advanced energy– State Leadership involvement since 2002

• Government – University – Industry– Research Programs– Research Infrastructure

} SB275

– Research Infrastructure– Technology Strategy and Network

• Critical time in lifecycle of next-generation technologies– Semiconductor drives nano-sized dimensions and new materials

• Capital, people, R&D, infrastructure, education– Nanotech, biotech, MEMS, IT / wireless, advanced energy

• Multiple trillion dollar industries within decade• Intrinsically cross-disciplinary

• Fully endorsed by State leadership

STATE STRATEGY ON ADVANCED TECHNOLOGY

• The Texas Technology Initiative calls for thedevelopment of a State Strategy on AdvancedTechnology (SSAT) establishing a 10-year planfor creating leading-edge R&D programs, world-class infrastructure, and interdisciplinaryclass infrastructure, and interdisciplinarynetworking that drives the growth in Texas ofknowledge-based industries that are the key tosustained prosperity in a global economy.

• Innovations in advanced technologies arefundamental to the competitiveness across thestate's six targeted industry clusters.

STATE STRATEGY ON ADVANCED TECHNOLOGY (SSAT)• Public policies, programs, and funds to ensure Texas 21st century technology

leadership and economic prosperity– 10-year strategic plan– Focus: Semiconductors, Nanotech, Biotech, MEMS, IT/Wireless, Energy

• SSAT fully integrated with Industry Cluster process– TTI participation in each cluster

• First SSAT meeting held on December 16th 2004– ~75 leading scientists and technology leaders participated

Advanced Technologies and ManufacturingAdvanced Technologies and Manufacturing

Aerospace and Defense

Biotechnology and Life Sciences

Energy

Information and Computer Technology

Petroleum Refining and Chemical Products

Growth in Texasof knowledge-

based industrieskey to sustainedprosperity in a

global economy

Advanced Energy Applications

Biotechnology

Software Technology / Wireless

Micro-Electrical-Mechanical Systems (MEMS)

Nanotechnology

Semiconductor

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SSAT

State Strategyon Advanced Technology

Comprehensive guide for:- Technological Innovation- Partnerships- Commercialization- Infrastructure

STATE STRATEGY ON ADVANCED TECHNOLOGY

• Includes a comprehensive geo-graphic advanced technologycapability assessment, including research programs and researchinfrastructure(labs, facilities, equipment, etc.) at Texascompanies, universities, and high-tech research institutes.

• Based on this initial assessment, a roadmap is being developed tohighlight where:– Texas’ advanced technologies capabilities must go over the– Texas’ advanced technologies capabilities must go over the

next ten years,– what challenges must be overcome to achieve this level of

capability,– and what actions are required to accomplish the goals

• This roadmap will detail public policies, funding, legislation,national relations, and initiatives required to assure that the R&Dcapability of Texas will maximally enable each industry cluster tomaintain competitiveness in the global market.

STATE STRATEGY ON ADVANCED TECHNOLOGY

• In addition to its assessment and roadmappingfunctions, the SSAT serves as a liaison between thevarious industry clusters in matters related toadvanced technology:– Identify synergies, common needs, and/or gaps in capabilities.– Information from all the industry clusters will be included so– Information from all the industry clusters will be included so

that collaboration between key stakeholders and leveragedfunding opportunities are maximized to enable the targetedclusters.

• The SSAT is a tool for state leadership to maximize thereturn on investment in R&D that supports the targetindustry clusters by understanding needs and focusingand coordinating innovative research.

THE TEXAS ENTERPRISE FUND

The Texas Enterprise Fund is a business incentive fundthat was created by legislation in 2003. The fund,which had an initial $295 million investment, is usedfor insuring the growth of Texas business. One of Texas’most competitive recruitment tools, these funds aremost competitive recruitment tools, these funds areused primarily to attract new business to the state orassist with the substantial expansion of an existingbusiness as part of a competitive recruitmentsituation. The economy of Texas has seen largeamounts of growth in new jobs, industries, and theexpansion of businesses, since the fund was created.

THE TEXAS ENTERPRISE FUND

• The 78th Texas Legislature established the TexasEnterprise Fund to provide financial resourcesto help strengthen the state’s economy. TheEnterprise Fund can be used for economicdevelopment, infrastructure development,development, infrastructure development,community development, job training programsand business incentives.

• The Governor, Lt. Governor and Speaker mustunanimously agree to support the use of theTexas Enterprise Fund for each specific project.

“The Gap”

©

2004

TEXAS EMERGING TECHNOLOGY FUND

• There is a need to provide a means ofgrowing companies into successfulcommercial entities

• Research tools can be expensive and• Research tools can be expensive andrequire significant expertise

• Good technology needs good businesssupport

• Texas supports developing companiesthrough the TETF

• Expedite innovation and commercialization ofresearch

• Increase higher education applied researchcapabilities

PURPOSE OF HB 17652005 LEGISLATION OF TETF

capabilities• Attract, create, or expand private sector entities that

will promote a substantial increase in high qualityjobs

• Keep emerging technologies in Texas

TETF Slides Courtesy of Central Texas Regional Center of Innovation and Commercialization

• Aerospace• Biotechnology, medicine, &

life sciences• Information & Computer

• Nanotechnology• Micro-electro mechanical

systems• Petroleum Refining &

Chemical Processes

DEFINED“EMERGING TECHNOLOGIES”

• Information & ComputerSoftware Technology

• Defense• Energy, Clean Energy &

Manufactured EnergySystems

Chemical Processes• Semiconductors• Other pursuits as

determined by leadership

HB 1765 - Fund I

Fund has three different components

Research Superiority (F) : $50M

Research Matching (E) : $50M

Commercialization Grants (D): $100M

ENABLING LEGISLATION

HB 1188 [Fund II]

20%- $37.0M

10%- $18.5M

70%- $129.5MCommercialization Grants (D): $100M 70%- $129.5M

Note: Funding for Commercialization Grants has increased from Fund I

CATEGORIES OF FUNDING

• Commercialization Awards (Subchapter D)– Requests typically $1 to $2.5M (max request - $5M)– Pre-seed requests $250k, 4 tranches, $1M allocation per

awardee

• Research Grant Matching Awards (Subchapter E)• Research Grant Matching Awards (Subchapter E)– Matches non-State grants to non-profit in consortium

• Research Superiority Awards (Subchapter F)– Help public universities attract world-class researchers

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• Subchapter D processed by RCICs• Subchapter E & F processed by Governor’s Office

• Type D funds best answer: “Will it sell?”• Especially suited for Pre Seed and Seed stage companies in

“The Gap”• For Businesses ONLY, must be a C-Corporation

COMMERCIALIZATION AWARD (TYPE D)

Required funding factors – must meet ALL criteriaRequired funding factors – must meet ALL criteria1) Commercialization of emerging technology2) Collaboration with an institution of higher education3) Defined project scope, commercialization path & business plan4) Demonstrable economic impact for State of Texas5) Commitment to raising matching funds from outside investors6) May result in scientific or medical break-through

• Must be considered an “emerging technology”

• End goal of project must be commercialization, notjust research and development

1) COMMERCIALIZATION OF EMERGINGTECHNOLOGY

just research and development

• Must be supported by business plan that contains athorough marketing and sales strategy

• Must be within the State of Texas, can be private or public– CenTex RCIC can assist in identifying collaboration partners

• Updated January 2008 – Categories of collaboration– Category A (Strongest) – University Spinout or Licensed University Technology

– Category B (Acceptable) – An Executed Agreement with a University foradditional work. Examples: Sponsored research agreement, Contracts for

2) COLLABORATION WITH AN INSTITUTION OFHIGHER EDUCATION

additional work. Examples: Sponsored research agreement, Contracts forservices, Marketing and business plan development

– Category C (Unacceptable) – A planned or unexecuted agreement with aUniversity for additional work.

• Must provide documentation of relationship including: Letter from Officeof Technology and Commercialization, Office of Sponsored Research, Deanor Department head, etc. Additionally, as the company progresses throughthe application process we will need copies of these agreements.– Scope of work, cost estimates, time frame, etc

• Applications will be screened using typical‘investor’ criteria:

– Business assessment• Commercialization strategy

COMMERCIALIZATION AWARD APPLICATIONEVALUATIONS

• Commercialization strategy• Management team• Financials• Sales & marketing strategy• Competition

– Technical assessment• Viability of commercializing the technology• Disruptiveness of the technology• Protection of the technology

REGIONAL CENTERS OFINNOVATION AND COMMERCIALIZATION

• World class research & development capabilities– The critical enabler in accelerating innovation– Lead-edge equipment and fabrication infrastructure– Largest cost in technology development

• Becoming prohibitive

• Integrated advanced technology centers• Integrated advanced technology centers– State-of-the-art processing/characterization equipment– Advanced technology labs for next-generation R&D throughout supply

chain• Design, equipment, and materials

– Comprises multiple leading-edge sites in Texas• Coordinated with Industry Clusters• Key university and industry R&D labs• Recruiting emerging technology labs and processing sites

TEXAS STRENGTHS• Strong research capabilities:

– presence of flagship institutions– Centers– nationally/ internationally recognized researchers

• Market dominance and large technology industrypresencepresence

• Rich in natural resources (available land, wind, sun,minerals, etc.)

• Texas’ reputation as a leader and a “can do” state• Good business climate (low cost of living)• Growing availability of venture capital• 10th largest economy in the world [as a stand-alone]

TEXAS OPPORTUNITIES

• Growing market for all technology products• Existence of synergies among technologies and

industries (ability to create collaborativerelationships)relationships)

• The State’s unique relationship withMexico/Latin America

• Increased importance of alternative energysources

• Increased funding for National Defense andHomeland Security research

IMPLEMENTATION - CONSORTIUM

Advanced Energy Consortium – Austin, Texas• Mission: The AEC investigates how pre-

competitive research in micro- andnanotechnology, with an initial emphasis onnanotechnology, with an initial emphasis onsensors and materials, can create a positivedisruptive change in the upstream oil & gasindustry.

• Petroleum Industry needs micro / nanosensors that “illuminate” or describe:– Chemical/Physical Properties– 3D imaging and Fluid Flow

IMPLEMENTATION - CONSORTIUM

AEC Focus• Nano Sensors

– Primary focus – with long development time– Research efforts will have to address

communication, power, sensing, deployment andcommunication, power, sensing, deployment andconstruction requirements

• Nano Materials– Secondary focus, with nearer-term potential– Plan evaluation of the opportunities– Leverage existing and new materials under

development for other areas (health, medical,security)

IMPLEMENTATION - UNIVERSITY

The NANOMATERIALS APPLICATION CENTER [NAC] atTexas State University-San Marcos was createdin late 2002– Focus: coordinating, facilitating, disseminating

information, and driving nanoscience andinformation, and driving nanoscience andnanoengineering developments to expedite thecommercialization of innovation.

– Goal: expedite commercialization of emergingtechnologies

IMPLEMENTATION - UNIVERSITY

NAC Outreach– Nanotechnology Colloquium broadcast bi-weekly to

multiple locations• Speakers from Europe and U.S.• Attendees have networking opportunities• Attendees have networking opportunities

– Joint proposal efforts for multi-site implementation– Connect inventors with researchers and equipment– Research efforts support regional economic

development efforts– Successful development of business and technology

implementation

IMPLEMENTATION - UNIVERSITY

2008 NAC Activities as of August• Successful support of two ETF applications• Companies located on campus

– Xitronix, Inc.1

– nanoTox, Inc. 1– nanoTox, Inc. 1

– Nanotailor, Inc.– Noise, Inc.

• Five companies in serious discussions• Four inventors presenting to researchers• Discussions with two Israeli companies, one Japanese

company1Graduated in 2008

TEXAS STATE UNIVERSITY SYSTEM

•Collaboration among the schools within the Texas State System•TSUS Nanotechnology Task Force formed to address research concepts•Collaboration throughout Texas with other universities•Collaboration with other, non-Texas, researchers•University researchers supporting technology innovation

SUMMARY

• Texas understands and supports the needs ofdeveloping businesses

• Texas has a strategy in place to help growtechnology companiestechnology companies

• Various types of funding are available• Expertise from researchers can be obtained• Research Institutions/Universities have

programs in place to support technologydevelopment

Texas is open for business

BACKGROUND MATERIAL

Texas State University-San Marcos

110 Undergraduate majors(7 academic colleges)

84 Masters programs6 PhD programsEE Program (Fall ’07)MSE Ph.D. Program (Fall

’10)

• Total student enrollment

COMPREHENSIVE

• Total student enrollment(29,125) [Fall ‘09]

• Undergraduate (24,038)• Hispanic/ Latino (5,332)

(22%)[Fall 2007 Data]

• 1110 Faculty• 93% teach on the

undergraduate level.

San Marcos is situated on

CENTRAL LOCATION

Texas State is located in San Marcos,halfway between Austin (30 miles) and

San Antonio(45 miles).

San Marcos is situated onthe edge of the legendary

Texas Hill Country.

COME WORK WITH US

San Marcos, TexasA Texas Natural

CONTACT INFORMATION

Walt Trybula, Ph.D.IEEE Fellow & SPIE Fellow

w.trybula@txstate.edu

Texas State University System

w.trybula@txstate.edu+1.512.245.6062

DirectorNANOMATERIALS APPLICATION CENTER

Texas State University-San Marcoshttp://www.nanotxstate.org

WALT’S BACKGROUND

• Director of the NANOMATERIALS APPLICATION CENTER at Texas StateUniversity-San Marcos and Director of the Trybula Foundation, Inc.

• Immediate prior to my current assignments, spent 13 years withSEMATECH, the Semiconductor Industry research consortium, inAustin, Texas

– Senior Fellow of the Technical Staff– The Semiconductor Industry:

• Claims to be the first “nano” industry• Claims to be the first “nano” industry• Comprises the people, capital, technology, infrastructure, experience, and culture that will enable

the transformation of “nano” into the advanced technology economies of the future

• Involved in the Texas Technology Initiative, the State Strategy onAdvanced Technology, Texas Workforce Commission Cluster effort,and the development of the Emerging Technology Fund

• Work with Economic Development efforts in Austin and SanMarcos and a member of the CenTex RCIC review team

• Twelve years with GE, 9 years on Corporate Staff• Involved in three start-ups [founded two]