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Research-Asset Assessment Study for Commonwealth of Virginia: Phase II – Second Order Line- of-Sight/Headwinds Analysis on Potential Growth Opportunities Leveraging Virginia’s Research and Development Assets To: Virginia Research Investment Committee and State Council of Higher Education for Virginia RFP# SCHEVRFP-245-052617 January 2018

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Page 1: Research-Asset Assessment Study for Commonwealth of ......The line-of-sight analysis then assessed the depth, excellence and alignment of these potential platforms based on a broader

Research-Asset Assessment Study for Commonwealth of Virginia:

Phase II – Second Order Line-of-Sight/Headwinds Analysis on Potential Growth Opportunities Leveraging Virginia’s Research and Development Assets

To: Virginia Research Investment Committee and State Council of Higher Education for Virginia

RFP# SCHEVRFP-245-052617

January 2018

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Table of Contents A. Introduction ..................................................................................................................................2

B. Conducting the Line-of-sight Assessment .......................................................................................4

C. From Potential Innovation Platforms to Strategic Growth Opportunities: Using a Line-of-Sight Across Research and Industry Factors .................................................................................................8

F. Profiles of Virginia’s Strategic Growth Opportunity Areas .............................................................. 11

I. Cyber and Cyber-Physical Security ...................................................................................................... 11

II. Integrated Networking, Communications Systems, and Data Analytics ........................................... 14

VA Industry Innovation Context .............................................................................................................. 15

III. System of Systems Engineering ........................................................................................................ 18

IV. Life Sciences ...................................................................................................................................... 22

G. Development Pathways for Virginia’s Strategic Growth Opportunity Areas ................................... 25

Cyber and Cyber-Physical Security .......................................................................................................... 25

Integrated Networking, Communications, and Data Analytics .............................................................. 27

System of Systems Engineering .............................................................................................................. 29

Life Sciences ............................................................................................................................................ 31

G. Virginia’s Regional Innovation Context ......................................................................................... 33

Appendix A: Core Competencies Found Across Virginia’s Base of Innovation ..................................... 35

Publication Core Competency Strengths ................................................................................................ 36

Patent Analysis ........................................................................................................................................ 47

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A. Introduction The State Council of Higher Education for the Commonwealth of Virginia (SCHEV), on behalf of the Virginia Research Investment Committee (VRIC), has launched a comprehensive study to assess the Commonwealth’s research assets, including those at its public and private universities, federal research facilities and private sector companies. To assist with the analysis, SCHEV has retained, TEConomy Partners, LLC. (TEConomy) which was formed in late 2015 as an independent company, transitioning the complete staff and capabilities of the Technology Partnership Practice (TPP) from the Battelle Memorial Institute. TEConomy has a proven track record in conducting rigorous and robust assessment studies of research and development (R&D) assets and overall innovation ecosystems in states, including Arkansas, Arizona, Connecticut, Georgia, Indiana, Iowa, New Hampshire, Ohio, and Utah, that inform the targeting of innovation-led growth opportunities found in a state as well as strategic actions to further innovation-based development. A key challenge facing states in today’s global economy where knowledge and innovation are the driving forces for economic competitiveness is that the opportunity set of technologies that research and development (R&D) capabilities across universities, industries and federal labs can help in advancing is enormous. In reality, each state has its own specific areas of excellence across its university, industry and federal lab R&D activities through which it is best positioned to differentiate itself and build specialized areas of expertise where it can be a world leader in technology commercialization and innovation-led development or what we term core R&D competencies. In an interesting paradox, the more globally integrated the world economy becomes, the more a state’s research and development assets and the ability of its innovation ecosystem to translate those assets into new products and new businesses matters. These areas of localized strengths in R&D assets reflect the core competencies around which industries innovate and grow around specific states and regions. The concept of core competencies is now widely understood as a critical factor for industries to be competitive. According to Hamel and Prahalad in their widely acclaimed business strategy book, Competing for the Future, “Core competencies are the gateways to future opportunities. Leadership in a core competence represents a potentiality that is released when imaginative new ways of exploiting that core competence are envisioned.”1 Core competencies can be thought of as “bundle of skills and technologies” that enables innovation and growth. From a state and regional technology-based economic development perspective, core R&D competencies represent where a state has the “know how” across its industries and research institutions, involving universities, federal labs and non-profit organizations, to position the state for future growth in targeted markets. This includes focused areas where the State’s base can bring a critical mass of activity along with an identified measure of excellence and alignment across key industry, university and federal labs. With an understanding of a state’s core competencies across research institutions and industry, it is possible to then examine the extent to which they are robust, strategic growth opportunities with capabilities supported by both research institutional and industry core competencies where Virginia is best positioned to differentiate itself. Strategic growth opportunities representing highly- aligned competency areas across industry and research institutions reflect the intersection, or “line-of-sight”, 1 G. Hamel and C.K. Prahalad. Competing for the Future. Harvard Business School Press: Boston, MA, 1994, pp. 217.

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where the state has the know-how and capacity to grow in the future. Figure 1 presents the overall approach and the specific metrics used in this assessment to identify a “line-of-sight” to strategic platforms that consider the market pull of leading advanced industries found in Virginia and the technology push from the state’s university research capabilities.

Figure 1: Line-of-sight Approach for Identifying Strategic Growth Platforms for Virginia

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B. Conducting the Line-of-sight Assessment

The line-of-sight approach starts with an assessment of core R&D competencies that are found in the output of research and technology development activities undertaken by research institutions and industry (the full details of the core competency analyses are set out in Appendix A). This involves an in-depth analysis of documented activities in peer-reviewed research publications that largely represent the scholarly activities of research institutions, and patent/intellectual property activities that largely reflect the focus of industry research and development. This type of quantitative analysis enables the use of sophisticated machine learning algorithms to assess the tens of thousands of records found in publications and technology classification areas listed in patents to identify how these activities relate to each other.

The aim of the core competency analysis is to set the broad context or themes of where research and technology development activities in Virginia across research institutions and industry have a critical mass. These analyses found that there were 35 cluster groupings of core competency areas in scholarly activities from publications and 9 areas of leading patent innovation network groupings that together help to offer insights into innovation themes found across Virginia’s research and development base.

These publication clusters and patent innovation networks were then reviewed closely to learn how well they aligned together into potential platform areas bridging the areas of focus found in Virginia’s research institutions and industry innovation.

The line-of-sight analysis then assessed the depth, excellence and alignment of these potential platforms based on a broader set of measures of research excellence and innovation activities taking place in Virginia.

For the research institution innovation capacity, the key measures include:

• Presence in publications cluster analysis, which offers a measure of the intensity of the specific research innovation themes supporting key platform areas

• Strength of leading publication fields (>100 overall publications in field across Virginia) aligned with platform area, which offers an indexed measure of the combination of the volume of publishing as well as the specialization of Virginia’s activity relative to national trends

• Presence of university and lab R&D spending in discipline areas aligned with platform area, which offers an indexed measure of the combination of the total dollars spent as well as the intensity of Virginia university spending relative to national trends

• Presence of major grant awards including those over $1 million and competitively-funded research centers, including those with industry

• Presence of leading research centers with shared use infrastructure

For industry innovation capacity, the key measures include:

• Presence in patent innovation networks which offers a measure of the intensity of the specific applied innovation themes supporting key platform areas

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• Strength of leading patent technology class areas (>20 overall patents in class) aligned with platform area, which offers a measure of the combination of the volume of patenting activity as well as the specialization of Virginia’s activity relative to national trends

• Presence of venture capital funding aligned with platform applications areas, which offers a measure of the combination of the total equity invested in specific, detailed technology areas as well as the intensity of Virginia’s investment levels relative to national trends

• Presence of Phase 2 SBIR awards aligned with platform applications areas, which gives a measure of the level of emerging industry innovation associated with platforms

• Presence of large bases of employment in aligned detailed 6-digit NAICS advanced industries, which offer insights into specific product markets served, that are available to support capacity in innovative industry development (indexed based on relative distribution of Virginia NAICS code employment levels)

• Presence of specialized 6-digit NAICS advanced industries aligned to a platform area that can provide competitive advantages relative to other regions to support innovation activity (indexed based on location quotient of Virginia NAICS industry employment relative to US)

These metrics were used to create average total “scores” for research and industry innovation factors that evaluate the line-of-sight to market for each innovation-led platform across the spectrum of translational research and commercialization activity. Platform areas can then be assessed based on the strength of alignment they have across both research innovation and industry innovation drivers in order to determine priority platform areas that can drive technology-based economic development for Virginia.

Figure 2 lays out this process of utilizing core competency analyses to identify potential platform areas for evaluation using the line-of-sight perspective.

Figure 2: Using Core Competency Analysis to Identify and Evaluate Virginia’s Potential Growth Platforms Using Line-of-sight Analysis

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A Summary Look at Publication Clusters and Patent Innovation Networks Found in Virginia

Publication Clusters: Peer-reviewed research publications are the most extensive means to learn about scholarly activities taking place across research institutions, including universities, federal labs and non-profit research organizations. From 2014 to mid-2017, more than 53,000 publications were generated in Virginia. By analyzing the abstracts of these publications with the using a pattern recognition software to identify distinct clusters based on the use of words and phrases it is possible to identify distinct research themes in Virginia’s scholarly activities.

A graphic way to present these publication groupings is through a “galaxy” map that helps show the size and organization of the cluster groupings relative to each other, as set out below.

Graphic Depiction of the Publication Cluster Groupings

Source: TEConomy’s analysis of publications obtained through Clarivate Analytics’ Web of Science database.

Animal/DairyScience

Astronomy

AtmosphericSciences

Brain Injuries

Craniofacial Abnormalitiesand Surgery

Cybersecurity

Dental Health

Ecological Sciences& Technology

Endocrinology

Genomic Analysis

GeologicalSciences

Health Care

Research

Hepatology and Organ Transplants

Immunology, Infectious Diseases and

Virology

Material Sciences

Molecular & Cell Biology

Neurological Sciences

Nutritional Health

Obesity and Diabetes Research/Treatment

Obstetrics and Gynecology Oncology

Orthopedics and Musculoskeletal Disorders

Pain Management

Particle/High Energy Physics

ReproductiveBiology

Respiratory Disorders and

Conditions

Roadway Construction

Space Research

Substance Abuse and Mental Illness

Systems Engineering, Modeling and Testing

Transportation Safety and Intelligent Transportation System Mgmt

Ulcer-Related and Other Wound Treatments

Veteran Treatment and Military Preparedness

VeterinaryMedicine

Wireless Communication and Data Networks

Health Care

ResearchEcological Sciences& Technology

Oncology

AtmosphericSciences

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A Summary Look Patent Innovation Networks Found in Virginia

Patent Innovation Networks: Virginia has several broad areas of patent activity that represent extensive connections between and among industry, universities and federal labs based on an analysis of forward citations. These broad, highly connected patent clusters also generally encompass leading areas of patent activity, suggesting where the state stands out in specific innovation areas of technology.

A graphic illustration of these patent innovation networks is presented below, where each bubble represents different patent classifications coded based on broad technology focus areas and the lines show the connections from common technology area relationships between all the patent areas. The density of the connections among the core patent innovation networks is reflected in the tight links and proximity of the patent areas.

Mapping of Patent Innovation Networks Found in Virginia through Forward Citation Analysis

Source: Clarivate Analytics’ Derwent Innovation; Calculations by TEConomy Partners, LLC.

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C. From Potential Innovation Platforms to Strategic Growth Opportunities: Using a Line-of-Sight Across Research and Industry Factors A combined examination of the patent innovation networks and research publications clusters analyses revealed 14 potential platforms based on innovation strength themes in Virginia that might serve as strategic growth opportunities. The line-of-sight analysis further demonstrate the areas of relative strength in each platform within Virginia and highlight those potential innovation platform areas which are aligned across the research-industry innovation pipeline to best provide growth opportunities.

Figure 3 sets out the overall performance across each of the line-of-sight measures to provide a more detailed picture of strength and gap areas in the alignment across research innovation factors and applied/industry innovation factors. Each factor of the line-of-sight analysis is rated as strong, moderate, or niche similarly to above, with the assessments represented by green, yellow, and red markers respectively.

Figure 3: Summary of Virginia’s Potential Innovation Platforms Across Line-of-sight Measures

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A scan across the ratings by factor set out in Figure 3 begins to suggest that there is not much alignment taking place in the line-of-sight across industry and research strengths for the potential innovation platforms. A more focused aggregate scoring of these factor ratings set out in Figure 4, which shows the relative positioning of each potential innovation platform area based on the aggregate research and industry innovation factor scoring, makes this lack of alignment clear.

The combination of research and industry innovation factors reveals that, with the exception of cyber and cyber-physical security, there are no potential innovation platform areas that display overwhelming strength across both research and applied/industry innovation factors to serve as a strategic growth opportunity. However, many platforms have either strong research alignment or industry alignment with moderate or below average alignment across the other dimension.

Figure 4: Assessment of Virginia’s Potential Innovation Platform Areas Across University Factors and Industry Factors

While no individual innovation platform rises in the line-of-sight as having the strength in research factors and industry innovation factors to serve as a strategic growth opportunity area, with the notable exception of cyber and cyber-physical security, it is possible to bring together multiple innovation platforms representing cross-cutting, multidisciplinary capacities that set out distinct areas where Virginia has the ability to leverage its collective research and industry innovation assets to drive economic growth and to focus resources and aggregate innovation activity into meaningful initiatives.

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After consultation with industry leaders and regional technology councils, as well as further deliberation on the mix of potential innovation platforms and their market potentials, four strategic growth opportunities were identified that best align research and industry innovation strengths with growing market opportunities for Virginia:

• Cyber and Cyber-Physical Security • Integrated Networking, Communications, and Data Analytics • System of Systems (SoSE) Engineering Solutions • Life Sciences

These strategic growth opportunity areas are supported by key priority or high potential platforms that drive competitive advantage, but also incorporate other platform areas in driving applications across different market verticals. Each of these strategic growth opportunities are able to drive growth across a broad base of industries and serve as a focusing mechanism for translational research from multiple disciplines to give Virginia the ability to compete in the modern technology-based innovation economy.

Figure 5 below shows the comprehensive way in which the strategic growth opportunities incorporate multiple innovation platforms within the scope of their applications and market opportunities. Detailed profiles and recommended development pathways for each growth opportunity are laid out in the sections below.

Figure 5: Cross-Cutting Relationships Between VA Innovation Platforms and VA Strategic Growth Areas

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F. Profiles of Virginia’s Strategic Growth Opportunity Areas

Provided below are detailed profiles of the four strategic growth opportunity areas identified from Virginia’s innovation platforms. Each profile provides background and context for the growth opportunity area, details the research and industry innovation assets present in the state which support it, and identifies market opportunities associated with the opportunity.

I. Cyber and Cyber-Physical Security What Is It?

Cyber security involves protection of computer hardware, software, and data from threats ranging from theft to destruction. This rapidly evolving area involves the creation and maintenance of technologies designed to counter threats both proactively and in real time in addition to assessing damage and conducting repairs in the wake of attacks. Many major industries have experienced cyber security attacks in recent years, and given the fundamental importance of databases and networking to modern business processes innovative cyber security technologies will continue to be a key area of active research and development for the foreseeable future. Several key areas that enable ongoing innovation in cyber security solutions include:

• “Security by design” software and hardware solutions • Vulnerability assessment and testing solutions • Real-time, massive scale forensic network traffic and computer system activity analysis • Advancements in encryption, access control, and identity management technologies • Development of user-behavior analytics modeling • Cloud and data center infrastructure security

In addition to traditional computer systems, an increasing variety of connected smart devices and infrastructure must also be protected from analogous attacks designed to exploit the architecture of the “Internet of Things” (IoT). As vulnerability becomes an increasing concern for consumer devices connected to the Internet, security will also become an issue for the physical infrastructure and hardware systems that manage public utilities, transportation, medical care, military systems and industrial automation. The ability to provide cyber-physical security solutions for device hardware and infrastructure is an area of rapid growth and high priority for both government and industry to protect from point of access attacks and includes any devices with embedded microcontrollers that might be able to be compromised by an attacker.

Virginia has a number of research assets developing the next generation of cyber security solutions as well as a significant population of industry and government end users. Additionally, other key growth opportunity areas for Virginia also rely on cutting edge cyber security knowledge to help advance their own applications.

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VA Research Innovation Context

Leading Publications Fields with > 1,000 research publications from 2014-2017:

• Computer Science Theory/Methods – 1,494 research publications 2014-2017, 1.32 specialization index

• Computer Science Information Systems – 1,398 research publications 2014-2017, 1.52 specialization index

Additional areas with significant publications activity include Software Engineering and Computer Hardware Architecture.

Themes in Major Grants Activity in Relevant R&D Areas:

• Support for educational programs for training cybersecurity professionals • Research in new methods of secure data sharing and monitoring cyber-physical systems

vulnerabilities

Presence of Major Research Centers/Assets:

• UVA: UVA Link Lab, UVA Applied Research Institute • VA Tech: Hume Center for National Security and Technology, Advanced Research in Information

Assurance and Security (ARIAS) Lab • GMU: Center for Excellence in Command, Control, Communications, Computing and Intelligence

(C4I), Center for Infrastructure Protection and Homeland Security (CIP/HS) • ODU: Center for Cybersecurity Education and Research (CCSER) • MITRE

VA Industry Innovation Context

Leading Patenting Areas with > 100 patent records from 2014-2017:

• Network architectures or network communication protocols for network security – 801 patent records, 2.44 specialization index, 1.19 forward citation impact index

• Identity management technologies – 381 patent records, 1.43 specialization index, 1.25 forward citation impact index

• Secure/Encrypted communications technologies – 131 patent records, 1.47 specialization index, 1.56 forward citation impact index

Leading Venture Capital Investment Areas with > $10 million invested from 2009-2016:

• Security/Firewalls and Encryption Software: $609.9 million total equity invested 2009-2016 • Internet Security and Transaction Services: $13.1 million total equity invested 2009-2016

Themes in SBIR Awards Activity in Relevant R&D Areas:

• Security technologies for defense/military networked systems • Secure short-range communications architectures and encryption • Device power fingerprinting analytics/modeling for intrusion detection and monitoring

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VA Supporting Industry Base Context

Significant industries which support and are end users of innovation in this growth area are found in information technology industries, yet not all firms in information technology are working in cyber and cyber physical security.

An alternative way to see the strength of Virginia in cybersecurity is through specialized analysis of the size of the private industry employment base in cybersecurity. Through a collaborative effort with Burning Glass and CompTIA, the National Institute for Standards and Technology (NIST) maintains the CyberSeek database on employment in cybersecurity jobs. It reports that Virginia as of August 2017 had:

• 66,206 private sector industry jobs in cybersecurity, second only to California’s employment base of 80,877.

• the highest concentration of cybersecurity jobs among all states, compared to total private sector employment, with 3.3 times the level of concentration found nationally.

Virginia also has 36 companies with headquarters in the state in the Cybersecurity 500 list, the highest amount amongst states that are a part of the Washington, DC metropolitan region. 2

Market Potential and Leading Applications

Cyber security markets are becoming intrinsically tied to market prospects of the industries they support embedded solutions for, offering rapidly expanding market prospects in any industry that utilizes data-driven architectures and making it difficult to define distinct market sizes. However, some of the markets for core technology applications in cyber security include:

• North American market for identity and access management systems valued at $5.0 billion in 2016 with CAGR of 15.6%

• North American market for encryption security technologies valued at $8.7 billion in 2016 with CAGR of 13.7%

• North American market for data loss protection solutions valued at $0.7 billion in 2016 with CAGR of 19.4%

• North American market for firewall security systems valued at $2.6 billion in 2016 with CAGR of 17.4%

• North American market for antivirus and antimalware products valued at $10.3 billion in 2016 with CAGR of 11.8%

• North American market for disaster recovery solutions valued at $1.4 billion in 2016 with CAGR of 25.7%

• North American market for risk and compliance management systems valued at $6.9 billion in 2016 with CAGR of 13.7%

Some examples of likely market applications aligned with Virginia’s research and innovation strengths include:

• Next generation cyber security technologies for integrated networked environments

2 Cybersecurity Ventures: Cybersecurity 500 List. https://cybersecurityventures.com/cybersecurity-500-list

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o Real-time forensics and intrusion detection solutions o User-behavior analytics products o Vulnerability assessment

• Cyber-physical security solutions o Embedded systems hardware in defense, energy, and transportation o Data center security o Real-time monitoring and analytics for networked Internet of Things systems, including

SCADA, consumer devices, and medical devices

II. Integrated Networking, Communications Systems, and Data Analytics

What Is It?

Advancements in the state of connectivity and the ability to process massive volumes of unstructured data have resulted in the need for solutions to address the connectivity and processing power behind modern communications technologies. Today’s telecommunications networks rely on a mix of wired and wireless voice and data communications networks, broadband internet networks, and data storage infrastructure that require complex routing and retrieval processes with an ever-increasing user base. Next generation networks will combine all these communications assets with more traditional data processing technologies to create an integrated system that businesses and governments can leverage to provide connectivity and analytical services.

Integrated communications and data networks will provide cutting edge technology solutions that improve multiple aspects of the communications pipeline ranging from:

• Point of access connectivity and speed, particularly wireless technologies designed for secure communications and networking of smart devices and unmanned systems (including defense and “ad hoc” network applications)

• Efficient routing of high volumes of data-driven communications traffic utilizing an interconnected mix of legacy wired, next generation high speed wired, and wireless network node assets optimized at a systemwide level

• Rapid retrieval and processing of “big data” from data storage centers supported by highly automated and secure data center facilities

• Rapid processing of large databases to drive endpoint analytics applications such as machine learning models using on-demand virtual processing resources

• Resilient, distributed infrastructure to support cloud-based services and software in a global market

Virginia has a significant user base of these technologies, particularly in financial technologies (fintech) and government services, as well as a geographical specialization – northern Virginia has one of the largest clusters of data centers in the nation and some estimates indicate that up to 70% of the world’s

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internet traffic passes through the region.3 Additionally, the area has robust innovation activity across various wireless networking technologies and computer services to support ongoing development of innovation targeted towards building next generation integrated communications frameworks.

VA Research Innovation Context

Leading Publications Fields with > 1,000 research publications from 2014-2017:

• Electrical/Electronic Engineering – 4,304 research publications 2014-2017, 1.16 specialization index

• Computer Science Theory/Methods – 1,494 research publications 2014-2017, 1.32 specialization index

• Computer Science Information Systems – 1,398 research publications 2014-2017, 1.52 specialization index

• Telecommunications – 1,159 research publications 2014-2017, 1.39 specialization index

Additional areas with significant publications activity include Artificial Intelligence, Software Engineering, Computer Hardware Architecture, and Applied Mathematics.

Themes in Major Grants Activity in Relevant R&D Areas:

• Research in new methods of managing high performance computing resources • Establishment of IUCRC’s for development of innovative wireless communications network

configurations

Presence of Major Research Centers/Assets:

• UVA: UVA Data Science Institute (DSI), Center for Visual and Decision Informatics, Commonwealth Center for Advanced Logistics Systems (CCALS), McIntire Center for Business Analytics, UVA Applied Research Institute, Center for the Management of Information Technology (CMIT), UVA Quantitative Collaborative (QC), UVA Center for Wireless Health

• VA Tech: SyNeRGy Lab, International Institute for Information Technology, Wireless @ Virginia Tech Center, Advanced Research in Information Assurance and Security (ARIAS) Lab, Hume Center

• GMU: Mason Center for Health Information Technology (HIT), Center for Excellence in Command, Control, Communications, Computing and Intelligence (C4I), Center for Simulation and Modeling (Computational Materials Science Center), Center for Distributed and Intelligent Computation, International Center for Applied Studies in Information Technology

VA Industry Innovation Context Leading Patenting Areas with > 200 patent records from 2014-2017:

• General data analytics and data processing methods – 883 patent records, 0.91 specialization index, 1.05 forward citation impact index

3 Virginia Economic Development Partnership – Data Centers: Industry Overview. http://www.yesvirginia.org/KeyIndustries/DataCenters

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• E-commerce technologies – 482 patent records, 1.40 specialization index, 0.85 forward citation impact index

• Database administration and management – 348 patent records, 1.65 specialization index, 1.10 forward citation impact index

• Network-specific arrangements or communication protocols supporting networked applications – 286 patent records, 1.04 specialization index, 0.83 forward citation impact index

• Electronic payment architectures, schemes or protocols – 251 patent records, 1.67 specialization index, 0.99 forward citation impact index

• Arrangements for maintenance or administration or management of packet switching networks – 226 patent records, 1.93 specialization index, 2.10 forward citation impact index

• Selective content distribution technologies, e.g. interactive television or video on demand – 224 patent records, 0.93 specialization index, 1.47 forward citation impact index

• Local resource management, e.g. selection or allocation of wireless resources or wireless traffic scheduling – 219 patent records, 1.10 specialization index, 2.23 forward citation impact index

• Digital Finance; Insurance; Tax strategies; Processing of corporate or income taxes – 203 patent records, 1.98 specialization index, 0.85 forward citation impact index

• Services or facilities specially adapted for wireless communication networks – 201 patent records, 1.09 specialization index, 1.09 forward citation impact index

Other significant patenting activity in areas focused on management of network traffic, wireless network operations, and software engineering.

Leading Venture Capital Investment Areas with > $10 million invested from 2009-2016:

• Computer Software: $2,479.7 million total equity invested 2009-2016 • Internet Communications: $826.4 million total equity invested 2009-2016 • Wireless Communications: $280.3 million total equity invested 2009-2016 • Internet Content: $271.8 million total equity invested 2009-2016 • Satellite Communications: $151.4 million total equity invested 2009-2016 • Data Communications: $147.8 million total equity invested 2009-2016 • E-Commerce Applications: $133 million total equity invested 2009-2016 • Computer Services: $111.7 million total equity invested 2009-2016 • Internet Software: $89.7 million total equity invested 2009-2016 • Commercial Communications: $21.2 million total equity invested 2009-2016

Themes in SBIR Awards Activity in Relevant R&D Areas:

• Cognitive radio, ad-hoc networks, wideband, and other advanced wireless communications technologies

• Communications protocols and hardware for unmanned systems • Decision support and simulation modeling tools for military scenario and defense logistics

planning • Image and video analysis tools for real-time analysis and threat detection

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VA Supporting Industry Base Context

Significant industries which support and are end users of innovation in this growth area include:

• Computer Systems Design Services – 104,998 employees, 4.35 LQ, 20% growth 2009-2016 • Custom Computer Programming Services – 40,453 employees, 1.84 LQ, 5% growth 2009-2016 • Data Processing, Hosting, and Related Services – 11,286 employees, 1.47 LQ, 1% growth 2009-

2016 • Other Computer Related Services – 8,209 employees, 2.89 LQ, 15% growth 2009-2016 • Software Publishers - 4,914 employees, 0.54 LQ, 0.6% growth 2009-2016 • Computer Facilities Management Services – 4,462 employees, 2.66 LQ, -11% growth 2009-2016 • Wireless Telecommunications Carriers - 2,797 employees, 0.89LQ, -33% growth 2009-2016 • Internet Publishing and Web Search Portals – 2,663 employees, 0.51 LQ, 25% growth 2009-2016

Market Potential and Leading Applications

Similar to cyber security markets, integrated networking and communications supports many aspects of modern business operations across the majority of industries. Additionally, data analytics tools and services have become embedded in the way companies deliver their products and services making it difficult to pinpoint a discrete market space but making it clear that leaders in this innovation space will be able to be at the forefront of growth trends. Some examples of potential markets in this very broad growth opportunity include:

• North American market for software-defined networking (SDN) solutions: o SDN configuration technologies market is valued at $484 million in 2015 with CAGR of

80.8% o SDN hardware market is valued at $350 million in 2015 with CAGR of 78.3% o SDN software market is valued at $199 million in 2015 with CAGR of 117.3%

• North American market for content delivery network hardware technologies valued at $3.6 billion in 2017 with CAGR of 13.6%

• North American market for unified communications and collaboration technology platforms valued at $12.9 billion in 2015 with CAGR of 16.2%

• North American market for “smart city” networked infrastructure management technologies valued at $55.2 billion in 2016 with CAGR of 14.7%

• North American market for Internet of Things enabling technology platforms such as device management and connectivity solutions valued at $224.7 million in 2016 with CAGR of 28%

• North American market for advanced analytics services: o Banking and financial services market valued at $22.1 billion in 2015 with CAGR of 1.7% o Telecommunications and IT services market valued at $16.1 billion in 2016 with CAGR of

1.3% o Life sciences services market valued at $4.2 billion in 2015 with CAGR of 1.7% o Transportation and logistics services market valued at $4.3 billion in 2015 with CAGR of

1% o Consumer goods and retail services market valued at $9.9 billion in 2015 with CAGR of

1.9%

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Some examples of likely market applications aligned with Virginia’s research and innovation strengths include:

• Integrated networking solutions o Enterprise business virtualization solutions o “On-demand” cloud-based infrastructure and distributed computing services o Network dynamics monitoring and optimization

• Advanced wireless communications hardware and networks o Integrated wireless network infrastructure o Wireless encryption and verification o Ad-hoc network technologies

• Data center operations and automation • Data analytics products and services

o Decision support tools for government, defense, and marketing industries that leverage integrated machine learning, large data management, and simulation and modeling innovations

o Digital design, engineering, and testing services o Fintech services such as risk management and fraud detection and digital banking

solutions o Health IT services such as population health modeling, clinical analytics, and

bioinformatics o Transportation and logistics solutions such as supply chain management and fleet

management

III. System of Systems Engineering What Is It?

System of systems engineering (SoSE) is an emerging discipline that combines interdisciplinary engineering and scientific disciplines to design, assemble, and manage complex systems made up of a number of finite components, each of which themselves may constitute a system.4 As an example, a modern naval vessel will have many different subsystems ranging from propulsion to navigation which are all interconnected through electrical and communications networks and require effective operation by a crew to ensure safety and efficiency. System of systems engineering would employ technologies and approaches to optimize the types and interconnectivity of the different systems found onboard the vessel in an integrated way that captures the complexity of interplay between component systems from the design process through maintenance and repair cycles.

As opposed to traditional systems engineering, which itself is a key supporting discipline for SoSE, the system of systems approach is concerned with an overall system defined by the interactions of various subsystems supporting an overall technology platform rather than focusing on engineering individual components. Because it is principally concerned with integration of many component subsystems, SoSE typically relies on solving networking and interoperability challenges that involve technology areas such as sensors, power electronics, communications, advanced materials, and command and control interfaces. Although SoSE technologies and approaches have traditionally been oriented towards 4 Jamshidi, M., "System-of-Systems Engineering - A Definition," IEEE SMC 2005, 10-12 Oct. 2005

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aerospace and defense applications, innovative applications have increasingly been oriented towards automation and unmanned systems in “civilian” areas such as manufacturing, communications and data infrastructure, power grid operations, healthcare delivery, and transportation. Technology areas that are key enablers of the integrated life cycle approach used in SoSE applications include digital design, simulation and modeling, advanced sensing and instrumentation, and distributed computing.

Virginia’s innovation assets are particularly well positioned to support ongoing growth in a variety of areas by focusing on the underlying capability of SoSE. Several cross-cutting verticals of innovative activity in Virginia that both rely on ongoing development of SoSE capabilities as well as utilize them in driving technology solutions to market include:

• Atmospheric, naval/ocean, and other environmental sensor systems • Communications and networking platforms • Geospatial navigation technologies • Unmanned systems (aerial, ground, and naval) • Cyber-physical security • Transportation systems • Power electronics • Engineered Materials • Advanced manufacturing

VA Research Innovation Context

Leading Publications Fields with > 1,000 research publications from 2014-2017:

• Electrical/Electronic Engineering – 4,304 research publications 2014-2017, 1.16 specialization index

• Applied Physics – 1,657 research publications 2014-2017, 0.90 specialization index • Materials Science – 1,633 research publications 2014-2017, 0.76 specialization index • Optics – 1,449 research publications 2014-2017, 1.05 specialization index • Mechanical Engineering – 1,144 research publications 2014-2017, 1.26 specialization index • Meteorology/Atmospheric Sciences – 1,120 research publications 2014-2017, 1.81 specialization

index

Additional areas with significant publications activity include Civil Engineering, Physical Chemistry, Energy/Fuels, Nanoscience/Nanotechnology, Aerospace Engineering, Instrumentation, Nuclear Physics, Environmental Engineering, Transportation Science, and Remote Sensing.

Themes in Major Grants Activity in Relevant R&D Areas:

• Establishment of several IUCRC sites involving unmanned aerial systems and transportation systems testing

• Collaborative research in space weather and atmospheric sensing

Presence of Major Research Centers/Assets:

• NASA Langley Research Center • VA Space Mid-Atlantic Regional Spaceport

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• DoD R&D Intramural and FFRDCs • Jefferson Labs • UVA: Commonwealth Center for Advanced Manufacturing (CCAM), Commonwealth Center for

Aerospace Propulsion Systems (CCAPS), Institute for Nanoscale and Quantum Scientific and Technological Advanced Research (NanoSTAR), Multi-Functional Integrated System Technology (MIST) Center, UVA Applied Research Institute; Link Lab

• VA Tech: Institute for Critical Technology and Applied Science (ICTAS), Virginia Center for Autonomous Systems, Virginia Tech Transportation Institute, Center for High Performance Manufacturing (CHPM), Center for Power Electronics Systems (CPES)

• GMU: Center for Earth Observing and Space Research (CEOSR), Center for Geospatial Intelligence, Center for Excellence in Command, Control, Communications, Computing and Intelligence (C4I), Center for Spatial Information Science and Systems (CSISS)

• ODU: Virginia Modeling, Analysis & Simulation Center, National Center for System of Systems Engineering (NCSOSE)

• Hampton: Virtual Parts Engineering/Modeling and Simulation (VPMAS)

VA Industry Innovation Context

Leading Patenting Areas with > 100 patent records from 2014-2017:

• No leading areas, some presence of technology areas associated with navigational systems, optical components, and electronics

Leading Venture Capital Investment Areas with > $10 million invested from 2009-2016:

• Electronics and semiconductors: $127.96 million total equity invested 2009-2016 • Industrial equipment: $12.3 million total equity invested 2009-2016

Themes in SBIR Awards Activity in Relevant R&D Areas:

• Sonar, acoustic, and other ocean/naval sensing technologies • High performance antennas, radars, lidars, and other integrated optics and sensing units • Propulsion systems and materials for aerospace platforms • Unmanned aerial vehicles and associated command and control hardware • High performance electronics components for integration into defense and space systems

VA Supporting Industry Base Context

Significant industries which support and are end users of innovation in this growth area include:

• Engineering Services – 43,897 employees, 1.83 LQ, -14% growth 2009-2016 • Ship Building and Repairing – 23,639 employees, 9.54 LQ, 1.6% growth 2009-2016 • Electric Power Distribution - 5,144 employees, 0.97 LQ, 4.2% growth 2009-2016 • Heavy Duty Truck Manufacturing - 2,930 employees, 4.14 LQ, 70.5% growth 2009-2016 • Search, Detection, and Navigation Instruments - 2,930 employees, 0.83 LQ, -25% growth 2009-

2016

Market Potential and Leading Applications

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SoSE applications touch a wide-ranging set of markets, which represents a large overall market size, though the growth prospects depend on the specific application area. Several examples include:

• Global market in integrated sensor systems technology: o Automotive industry applications valued at $32 billion in 2017 with CAGR of 11.4% o Process industry applications valued at $23.9 billion in 2017 with CAGR of 11.2% o Machinery manufacturing applications valued at $12.9 billion in 2017 with CAGR of

11.5% o Aircraft and shipbuilding applications valued at $8.5 billion in 2017 with CAGR of 11.3%

• North American market in unmanned systems technology: o Unmanned aerial vehicle systems market valued at $155.9 million in 2015 with CAGR of

9.5% o Unmanned ground vehicle systems market valued at $53.9 million in 2015 with CAGR of

13% o Unmanned marine vehicle systems market valued at $34.6 million in 2015 with CAGR of

12.5% • Global market in remote sensing platforms:

o Disaster management applications valued at $2.3 billion in 2016 with CAGR of 11.3% o Climate research applications valued at $2.3 billion in 2017 with CAGR of 9.4% o Infrastructure applications valued at $1.8 billion in 2017 with CAGR of 6.6% o Security applications valued at $1 billion in 2017 with CAGR of 5.3% o Oceanography applications valued at $480 million in 2016 with CAGR of 11.5% o Energy applications valued at $321 million in 2016 with CAGR of 3.7%

• North American market for intelligent transportation system technologies: o Safety and risk management systems market valued at $7 billion in 2014 with CAGR of

16% o Vehicle telematics systems market valued at $3.4 billion in 2017 with CAGR of 10.2% o Fleet management and asset monitoring systems market valued at $1.8 billion in 2017

with CAGR of 17.1% • North American market for smart grid-enabling power electronics components valued at $1.3

billion in 2013 with CAGR of 16.5%

Some examples of likely market applications aligned with Virginia’s research and innovation strengths include:

• Embedded imaging and geospatial sensing systems o Unmanned system sensors and command and control devices o Remote sensing networks for environmental and defense applications

• Intelligent transportation systems and vehicle automation • Networked power electronics systems

o Networked hardware components and management systems for naval and aerospace vehicles

o Distributed controllers for smart grid management • Engineered materials and digital design for SoSE applications

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IV. Life Sciences What Is It?

Growth opportunities in this space fall into a broad spectrum of interdisciplinary technologies focused around biology, biotechnology, and medicine. An advanced innovation ecosystem supporting these areas takes promising innovations developed from basic research in biological science and then can quickly translate them into medical or other biotech product and service applications. Integrated bench to market processes will increasingly play a key role in advancing a broad spectrum of new market technologies in life sciences and rely on a well-functioning clinical research environment centered around academic medical centers to enable drug development and clinical trials as well as a well-supported entrepreneurial environment for emerging biotechnology companies.

Endpoint markets for innovations in advanced life science can include:

• Biopharmaceuticals tailored to specific genetic and metabolic biomarkers for treatment of disease

• Advanced diagnostic and testing technologies enabled by genetic sequencing, high throughput sample processing, advanced medical imaging, and novel testing materials development

• Medical devices, particularly those used in diagnostic sensing for clinical care and regenerative medicine focused on biocompatible and implantable materials

• Bioinformatics involving the integration of big data processing and predictive modeling for use in computational biology and healthcare applications

• Commercial and industrial biotechnologies for use in industrial, agricultural, and other bioprocess engineering applications

Virginia’s diversity of biomedical and biotechnology innovation assets and the emerging nature of the state’s industry ecosystem in this area means that it is important to keep a broader perspective in supporting innovative advancements over time as more distinct areas of specialization develop and mature. Several key areas of innovation developing today revolve around the use of integrated diagnostic and drug development technologies to advance personalized medicine, regenerative medical devices, neurosciences and life science manufacturing.

VA Research Innovation Context

Leading Publications Fields with > 1,000 research publications from 2014-2017:

• Surgery – 1,638 research publications 2014-2017, 1.02 specialization index • Biochemistry/Molecular Biology – 1,479 research publications 2014-2017, 0.71 specialization

index • Neurosciences – 1,460 research publications 2014-2017, 0.78 specialization index • Oncology – 1,263 research publications 2014-2017, 0.7 specialization index • Clinical Neurology – 1,250 research publications 2014-2017, 0.97 specialization index • Pharmacology/Pharmacy – 1,044 research publications 2014-2017, 0.81 specialization index

Additional areas with significant publications activity include Cellular Biology, Genetics, Radiology/Nuclear Medicine, Cardiovascular Systems, Internal Medicine, Immunology, Health Care

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Services Science, Microbiology, Endocrinology, Applied Biotechnology, Orthopedics, Infectious Disease, and Gastroenterology.

Themes in Major Grants Activity in Relevant R&D Areas:

• Support grants for interdisciplinary oncology research at VCU and UVA cancer centers • Research on molecular pathways and mechanisms contributing to prevalence of major diseases

in vascular and neurological areas

Presence of Major Research Centers/Assets:

• VCU: Massey Cancer Center, Pauley Heart Center, Harold F. Young Neurosurgical Center, VCU School of Medicine Centers and Cores; Medicines for All Initiative

• UVA: UVA Cancer Center, Bernie B Carter Center for Immunology Research, Paul Mellon Prostate Cancer Research Institute, Robert M. Berne Cardiovascular Research Center, BIG-Center for Brain Immunology & Glia, Keck Center for Cellular Imaging, Myles H. Thaler Center for AIDS & Human Retrovirus Research, Global Infectious Diseases Institute, UVA Brain Institute, UVA Data Science Institute; Center for Applied Biomechanics

• VA Tech: Virginia Tech Carilion Research Institute, Virginia Tech-Wake Forest University School of Biomedical Engineering and Sciences

• GMU: Center, Applied Proteomics and Molecular Medicine (CAPMM), National Center for Biodefense and Infectious Diseases, Center for Biomedical Genomics (CBMG), MicroBiome Analysis Center (MBAC)

VA Industry Innovation Context

Leading Patenting Areas with > 100 patent records from 2014-2017:

• Surgical devices – 263 patent records, 0.77 specialization index, 1.04 forward citation impact index

• Biopharmaceuticals – 245 patent records, 0.70 specialization index, 0.70 forward citation impact index

• Biological materials/substances analysis technologies – 215 patent records, 0.81 specialization index, 0.60 forward citation impact index

• Diagnostic sensing medical devices – 196 patent records, 0.55 specialization index, 0.56 forward citation impact index

• Medical prosthetics and filters – 155 patent records, 0.62 specialization index, 0.64 forward citation impact index

• Measuring or testing processes involving enzymes or micro-organisms – 111 patent records, 0.53 specialization index, 0.55 forward citation impact index

Leading Venture Capital Investment Areas with > $10 million invested from 2009-2016:

• Medical/Health Services: $523.4 million total equity invested 2009-2016 • Medical/Health Products: $63.4 million total equity invested 2009-2016 • Biotech Research: $60.9 million total equity invested 2009-2016 • Pharmaceuticals: $18.7 million total equity invested 2009-2016

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Themes in SBIR Awards Activity in Relevant R&D Areas:

• Development of drug discovery targets and biomarkers • Medical nanoparticles for imaging and drug delivery • Remote health monitoring and web-based health IT software solutions

VA Supporting Industry Base Context

Significant industries which support and are end users of innovation in this growth area include:

• Medical and Surgical Hospitals – 97,428 employees, 0.83 LQ, -1% growth 2009-2016 • Medical Laboratories – 6,620 employees, 1.33 LQ, 27% growth 2009-2016 • Blood and Organ Banks - 2,415 employees, 1.39 LQ, 15% growth 2009-2016

Market Potential and Leading Applications

Life sciences markets encompass a broad set of opportunities, many of which have high market sizes and promising growth prospects. Some examples of likely market applications aligned with Virginia’s research and innovation strengths include:

• Neuroscience diagnostics and sensing, a global market of over $24 billion linked strongly to on ongoing brain mapping research and investigation projects aimed to better understand complex neuronal circuits, nervous functioning, and neuronal manipulation. Plus, neurological disorders, comprising more than 600 conditions that affect the nervous system, impact an estimated 50 million Americans every year and is a major area of new therapeutic development according to PhRMA, with 420 drugs in development for neurological disorders, including well-known diseases such as epilepsy, traumatic brain injury, multiple sclerosis, Parkinson’s disease and Alzheimer’s disease.

• Personalized medicine solutions, with noninvasive and companion diagnostics development valued at $4.3 billion in 2016 with CAGR of 32.3%

• Regenerative medicine solutions with substantial existing markets, including joint implant and regenerative products market valued at $30.1 billion in 2014 with CAGR of 2.7%; bone repair and regenerative products market valued at $4.4 billion in 2014 with CAGR of 3.8%; and cartilage and soft tissue repair and regenerative products market valued at $1.8 billion in 2014 with CAGR of 6.6%

• Healthcare analytics solutions, a fast-growing though not yet large market, including: quality improvement and clinical benchmarking systems market valued at $280 million in 2017 with CAGR of 18.2%; clinical decision support systems market valued at $485 million in 2017 with CAGR of 17.5%; comparative analytics and comparative effectiveness systems market valued at $206 million with CAGR of 16.7%; medical claims and financial analytics systems market valued at $1.5 billion in 2017 with CAGR of 11.9%

• Addiction therapies valued as a $35 billion market in 2015 with projected annual growth of 5%

• Cancer therapeutics market that reached $121 billion in 2017 and should reach $172.6 billion by 2022, a compound annual growth rate (CAGR) of 7.4% from 2017 to 2022.

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G. Development Pathways for Virginia’s Strategic Growth Opportunity Areas Focusing on development of these key innovation growth areas can help aggregate innovation assets and resources around areas that create a competitive specialization for Virginia to compete in the global, technology-based innovation economy. Cyber and cyber-physical security, integrated networking, communications, and data analytics, system of systems engineering solutions each present an opportunity for broader science and technology advancement and place-making initiatives that leverage Virginia’s universities and industry using distinct development pathways.

Looking across the four growth opportunity areas, there are several common underlying challenges in implementing strategic development plans for jumpstarting and sustaining growth. Although some progress has been made to address these challenges by individual universities in the state, high level development pathways for innovative growth opportunities can address both these issues as well as the unique needs of specific university and industry stakeholders in each area. Broader challenges underlying all four innovative growth opportunities include:

• Ongoing separation between university and industry R&D efforts in the state and low levels of self-financed R&D by industry

• Effects of proximity to unique Washington, DC ecosystem and large government client bases • Ongoing shift from culture of intellectual property protection for revenue generation towards

technology commercialization and value creation • Regional nature of Virginia’s industry and research assets base (discussed in further detail in

subsequent section below)

The suggested development pathways discussed below for each growth opportunity set out high level recommendations to address these challenges by leveraging Virginia’s university research assets to spur growth

Cyber and Cyber-Physical Security Virginia has made recent strides towards positioning its research institutions as world class research assets dedicated to modern cyber security and cyber defense applications. The state government, led principally by the Virginia Cyber Commission and the initiatives developed from its recommendations around education and workforce development, has invested considerable effort over the past several years in raising the profile of Virginia as a destination for cyber security talent and innovative research. Additionally, increasing demand from Department of Defense clients for new cyber defense products and services has helped ground significant industry presence in the northern Virginia region.

This focus on branding Virginia as a cyber security hub has translated to several key centers of excellence among Virginia’s public universities. Virginia Tech was designated a National Center of Academic Excellence in Cyber Defense Research in May of 2017, making it one of only 16 universities in the nation to achieve the designation. Its innovation assets in this area are spearheaded by the Hume Center for National Security and Technology and supported by five other major labs and centers in cybersecurity applications. Additionally, UVA’s Link Lab was created in 2016 via the UVA Strategic Investment Fund to build out a collaborative initiative in cyber-physical systems technology and George

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Mason was designated as a National Center of Academic Excellence in Information Assurance Education based on its multidisciplinary programs focused on secure information systems.

Key Challenges for Virginia’s Innovation Ecosystem

Virginia is already well on its way to embracing this growth opportunity area and fostering signature innovation assets to support ongoing development. However, several challenges to accelerating growth were identified from interviews with research and industry stakeholders which include:

• How to achieve adequate levels of skilled talent supply to meet rapidly increasing demand for cyber security skillsets by industry

• Providing access to Virginia’s university research base to local employers in a comprehensive and transparent way

• How to sustain a collaborative environment for cyber security industry given highly competitive government

• How to provide “exits” for entrepreneurially-minded cyber security professionals working in large companies or government to start new companies

• Shifting Virginia economy from cyber security service-oriented companies towards product-oriented companies that are more likely to self-invest in R&D

• Improving strategic partnerships between universities and industry beyond their current level

Potential Development Pathways for Virginia Growth

• Given the recognition of cyber security as a premier opportunity from the state and the momentum generated by recent state initiatives, a key short-term need is supplying skilled labor to meet current industry demand. Development of further initiatives to expand cyber-security talent pipeline should be considered that focus on incorporation of technical certifications and leveraging additional segments of local Virginia population such as returning veterans and retraining of legacy technical talent bases.

• Although industry-university interactions around innovative research has been expanding, it is critical to generate further development of strategic partnerships to inform curriculum development and foster joint research opportunities. Establishing a joint industry-academic advisory group framework for university curriculum development guidelines can help to foster further interaction and embed industry input into producing graduates with well-aligned skill sets. This advisory group can work towards goals of additional certification of Virginia universities as National Centers of Excellence in cyber security research areas.

• Accelerating the formation of new cyber security startups is a key objective in helping to bolster Virginia’s ecosystem which currently is more focused around larger defense contracting in cyber security areas. Consider development of entrepreneurial program which incentivize workers in government and larger firms to establish startup businesses through establishing capital financing entity focused on cyber security product companies and de-risking transition to small business careers.

• There is a need to accelerate Virginia’s position as a cyber security research hub in a very rapidly moving market space with intense competition from other regions of the U.S. To help further brand Virginia as a desirable destination for cyber security industry and talent, consider signature initiative(s) focused around one or more of the following:

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o Development of a cyber security innovation fund which provides matching state funds to industry in key areas of emerging technology with collaborative university partner requirements

o Establishment of joint university-industry statewide consortium and associated signature facility that serves as hub for state research efforts and provides access to research ecosystems at satellite institutions focused on cyber security throughout Virginia

o Establishment of signature shared use “hacker/maker” space for development of cyber-physical technologies outside of DC metro area to help spread industry innovation footprint

Integrated Networking, Communications, and Data Analytics Virginia has a variety of innovation assets that together can be leveraged to envision a unique environment for integrated communications and data sciences. The state has had a history of strength in growing data center operations due to its geographic location and role as a central node in internet traffic networking. There are also a number of industries in financial services and content delivery based in the state that rely on ongoing development of networking and communications infrastructure and this demand is likely to grow as an increasing number of legacy industries move to digital operations models. Virginia is also well positioned to become even more integrated as a global node in networking and communications due to operation of the MAREA transoceanic cable station, the first in the mid-Atlantic region.

Concurrently with the push for greater leverage of data storage and transmission capabilities, there is an accelerating demand for data analytics applications that can leverage the increasingly enabled flows of “big data” from the state’s infrastructure. The state has recognized the importance of this area through its DataVA effort and through the growth of a number of data sciences-centric institutes and centers at Virginia Tech, UVA, GMU, and others. However, the state’s focus and branding in analytics required to build out a specialized identity in today’s competitive market is still emerging, with much of the critical mass in data analytics still reliant on large anchor industry operations specializing in broad services rather than centers of excellence within universities. Pockets of excellence within the university system in data analytics have not yet fully integrated their role with networking and communications innovation assets and must continue to build out more specialized identity in key applications to succeed over the long term.

Key Challenges for Virginia’s Innovation Ecosystem

Virginia has the infrastructure and industry base to achieve success in implementing a next generation integrated big data environment if its innovation strengths can be properly aligned. Key challenges to achieving this alignment that were identified from interviews with research and industry stakeholders include:

• Difficulty in obtaining funding for applied R&D in networking, communications, and analytics in the current environment where early stage assistance is more geared towards defense applications and later stage companies are oriented towards services/operations with less R&D focus

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• Lack of meaningful research-oriented consortiums and collaborations between major private companies and universities in the networking and communications space

• Addressing an ongoing skills gap for information technology jobs in broader industries outside of the cyber security space, in particular for data analytics

• Lack of specific identity in data analytics innovation verticals outside of cyber security that can help drive branding and placemaking for Virginia and focus resources towards achieving critical mass in innovation ecosystems

• Conservative investment culture in the state for funding early stage information technology industry companies that incentivizes companies to relocate to succeed

• Need for ongoing implementation of “last mile” connectivity in more regionally isolated regions of the state to complement networking infrastructure strength in metro areas

Potential Development Pathways for Virginia Growth

• A key component of advancing Virginia’s position in this area involves building out an ecosystem that emphasizes public-private partnerships to drive innovation. Consider models for expanding university outreach to current in-state companies in this space to help retain critical mass of strength and build out pathways for joint applied R&D efforts.

• Virginia has a unique combination of networking and communications infrastructure assets that can leveraged towards creating a world class innovation environment. Develop a strategic plan for bringing together infrastructure across the spectrum of data centers, transmission lines, and internet networks to create a unique “test bed” environment for open innovation in integrated IT and communications where companies and universities can test real world use cases for next generation technologies.

• The presence of unique data center and transmission infrastructure assets in the state on its own is not enough to drive long term growth - there must also be a focused effort to innovate around these assets. Consider economic development initiatives that incentivize expanding into adjacent markets for data center operations such as business virtualization and automation of cloud infrastructure sites such as targeted recruitment of mid-stage technology companies in these areas and development funds or infrastructure access models for in-state startups.

• The state’s innovation strength in wireless technologies should also be a key part of development of an integrated networking and communications ecosystem. Consider developing a network of wireless technologies testing sites throughout the state that build on the initial IUCRC models in this area for use in joint university-industry pilot projects. The model should leverage partnerships with key faculty to grow talent in this space locally and seek to address regional connectivity challenges where possible.

• Although there are a variety of strength areas for the state in developing innovative data analytics technologies, these centers of excellence need to be more closely aligned with providing R&D outputs for the in-state industry base and develop specialization in key verticals to better brand the state’s innovative position. Create strategic plans to brand the state’s identity in data analytics research in a few key verticals outside cyber security such as fintech, health IT, or content delivery and focus resources towards research which leverages the state’s big data networking infrastructure in these spaces. This may involve realignment of existing university research centers towards more applied work in these key verticals where necessary.

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• Using innovative demonstration projects where possible, continue to expand last mile connectivity to more geographically isolated regions of Virginia so industry and research institutions can access the integrated environment.

System of Systems Engineering Virginia has a strong history of engineering excellence grounded by federal and research university assets. The state is home to world class engineering research assets such as NASA Langley Research Center, the Mid-Atlantic Regional Spaceport (NASA Wallops Flight Facility), Dahlgren Havel Surface Warfare Center, Newport News Shipbuilding, the Commonwealth Center for Advanced Manufacturing (CCAM) and many other federal intramural, FFRDC, consortium, and private organizations engaged in research and development activities in key engineering applications. The university system plays a complementary role in enabling this focus on innovative solutions with key engineering-related testing and research centers linked to high profile engineering departments at Virginia Tech, UVA, George Mason, and ODU. Many signature facilities help enable the strong focus on applied engineering, including Virginia Tech and the Mid-Atlantic Aviation partnership’s FAA-designated UAS testing site and Virginia Tech’s Transportation Institute, ODU’s Virginia Modeling, Analysis, and Simulation Center, and UVA’s Applied Research Institute and partnership role with CCAM just to name a few.

Although university research assets are actively involved in research partnerships and collaborations with federal research facilities, there are a high number of market applications verticals in the state that have demand for innovation outputs. This has resulted in a diffusion of critical mass across a number of different areas operating in relatively siloed parallels rather than in an integrated innovation ecosystem that supports a common core of multidisciplinary engineering skills and research that can be applied comprehensively across Virginia’s industries and federal institutions. Additionally, a number of successful public-private partnerships between state universities and industries are focused on out state companies, further diluting the impact towards growing the local innovation ecosystem. Refocusing Virginia’s engineering innovation identity around building critical mass locally is key to long term growth in this area.

Key Challenges for Virginia’s Innovation Ecosystem

Virginia has a set of world class engineering research and innovation assets, but has not yet successfully integrated them together comprehensively to leverage economies of scale for the state. Key challenges to achieving this alignment that were identified from interviews with research and industry stakeholders include:

• The current environment of distributed innovation assets both across many different specific applications verticals and geographically has made growing critical mass locally difficult

• Lack of broader network of industry firms focused on enabling platforms of autonomous systems and sensors that support end-use market products within the state and resulting “export” of innovation to other regions of the country

• Lower emphasis for engineering departments in creating value-driven technology outflows from key university engineering research centers given the high amount of research spending

• Ongoing competitive pressure to relocate key industry and applied R&D operations to other regions of the country that have more integrated ecosystems and supporting clusters of talent and industry operations required for growth

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• Migration of young engineering talent away from existing R&D assets that more geographically isolated within the state due to lack of modern urban amenities

• Regulatory and national security issues (such as limits on employing foreign nationals and non-clear personnel and use of highly secure infrastructure) that can hamper growth of business operations

Potential Development Pathways for Virginia Growth

• The key challenge in bringing Virginia to national prominence as an applied systems engineering destination for industry is achieving critical mass around specialized centers of excellence in focused innovation applications. To sustain growth, there is a need to integrate engineering research and development activities in Virginia under the branding identity of system of systems engineering with recognition that this more focused direction supports key verticals within the state such as space, transportation, manufacturing, unmanned systems, and remote sensing. Implement the formation of a research asset consortium to tie together signature institutions and labs in various regions of the state under this common direction and focus research efforts where possible on applied design, testing, and integration applications rather than upstream basic science.

• Establishment of a University Affiliated Research Center (UARC) by the Department of Defense is often a key vehicle for universities to maintain long term strategic partnerships with government sponsors and effectively commercialize applied research. Explore the potential for establishing a UARC at a key Virginia engineering university and conduct any necessary strategic planning exercises to help enable a more robust research commercialization enterprise.

• Key engineering industries often consider the costs of new infrastructure in making strategic growth or relocation decisions. Develop an industry attraction fund that has a broad, flexible framework for awarding resources to help offset the costs of new infrastructure targeted strategically at SoSE companies committed to growing operations within the state around key research facilities.

• Explore the potential for public-private partnerships for development and implementation of additional shared use industry-university applied research centers in key SoSE verticals to serve as regional research activity aggregators utilizing governance and collaboration models similar to Commonwealth Center for Advanced Manufacturing (CCAM). Potential focus areas for new facilities could include unmanned systems, transportation systems, or integrated power electronics.

• Explore development of high profile, state-funded “grand challenge” competitions in several key SoSE applications areas (potentially alongside federal government partners) similar to past DARPA grand challenge models with goal of raising the visibility of state’s engineering ecosystem

• Consider restructuring incentives within university engineering faculty tenure systems that encourage increased levels of commercialization of applied research and formation of faculty-led startups

• Develop incentive programs for young talent with skill sets in high demand for SoSE companies and research institutions to help address quality of life and amenities concerns around more regionally isolated SoSE research and industry operations outside of northern VA

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Life Sciences Life sciences development in Virginia is still very much being defined through the commercialization of university research and the collaborations unfolding between academic medical centers and Virginia’s major hospital systems. This footprint is one of the most geographically diverse in Virginia given the location of the state’s academic medical centers and hospital systems. Communities across Virginia, such as Richmond, Roanoke, Norfolk and Northern Virginia, are actively engaged in life sciences development, providing a true state-regional connective tissue for development. The upside for Virginia is significant, but life sciences development is a marathon given the long-time horizons for new product development and one that must have sustained investment to succeed.

Key Challenges for Virginia’s Innovation Ecosystem

Virginia’s life sciences ecosystem is still emerging and a result faces growth and coordination challenges as it matures to scale. Several of these challenges that were identified from interviews with research and industry stakeholders include:

• Lack of commercial wet lab space in some areas of the state where biosciences start-ups are taking root. The lack of significant public-private partnerships for biotech infrastructure amplifies this issue as a pain point for emerging companies.

• Lack of critical mass in bioscience talent needed to grow emerging companies and applied R&D. As a result, a number of companies tend to migrate to adjacent regions with stronger bioscience industry clusters in Maryland and North Carolina to tap into their talent base.

• Observation that relatively few companies are leveraging small business grant and funding resources like the SBIR program

• Many large bioscience companies that have achieved success and reached maturity in Virginia operate in niche markets that don’t easily connect with a wider community to foster an integrated ecosystem

• Lack of external funding resources from either VC, state, or industry partner sources for businesses to scale up research and clinical trials activities in therapeutics applications areas. Given limited options, companies tend to turn to out of state funding that ultimately puts pressure on them to move operations closer to funding sources.

Potential Development Pathways for Virginia Growth

• Life sciences cluster development calls for especially close ties between industry, clinical care and academic R&D. In Virginia, life sciences is still an emerging industry that needs to draw upon the capabilities of the state’s research institutions and growing interest in innovation and collaborations with academic hospitals through increased coordination with flexibility to develop a more distinct identity over time.

• Life sciences is an active area of university technology commercialization and industry partnerships in Virginia. Most university start-ups are found in life sciences applications (50+ companies in past 5 years) and this ecosystem could be greatly enhanced by further use of proof-of-concept funding and milestone-driven translational research resources. There is also significant licensing activity and significant partnerships with major life sciences companies that can be leveraged to develop strategic partnerships over time.

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• Virginia is strategically located between two major industry centers of life sciences – North Carolina and Maryland – and can take advantage by creating a value proposition around key collaborative and signature strengths that complement those regions rather than compete with them. Some examples include:

o Neuroscience Initiative creating a significant translational/clinical research value proposition with statewide clinical trials network and patient registry – next stages could include building up biobanking and signature shared use laboratories

o Biomanufacturing may be another key opportunity through leveraging VCU’s Medicine for All initiative that is revolutionizing manufacturing of small chemical drugs as well as UVA’s Laboratory of Regenerative Therapeutics that has GMP capacity for innovative cell and tissue therapies

• Even though life sciences represent 49% of university research in Virginia, or nearly $700 million annually, there is still considerable investment needed to be competitive. Virginia universities have only a handful of major NIH-funded research centers, and significant funding to foster emerging areas of innovative specialization are required to accelerate growth. Potential ways to help structure ongoing investment can include:

o Develop a statewide approach to build “collaborative” strength using existing initiatives in neurosciences and genomic-based medicine as a potential model for the future. As a part of this approach, there is a critical need to further develop a mechanism for leveraging Virginia’s major hospital systems as a key component of a collaborative environment

o Conduct thorough assessments for targeted investments to guide all of Virginia’s life sciences initiatives

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G. Virginia’s Regional Innovation Context Virginia displays a unique geographic context to its innovation ecosystem which displays hubs of activity centered around key research and industry assets. Since it is difficult to uproot the operations of key universities, labs, and other research-focused institutions, examining the geographic footprint across different types innovation activities and the existing industry base can give some indication of any alignment issues that must be addressed in pursuing growth opportunity development strategies.

Table 1 below shows the leading counties (including independent cities where applicable) across several dimensions of innovation activity metrics as well as industry base employment with respect to activity or employment that supports the four growth opportunity areas.

Table 1. Leading Counties in Geographic Distribution of Innovation Activity Supporting Growth Platforms

Growth Opportunity Area

Leading Counties for Research Publications

Activity

Leading Counties for Patenting

Innovation Activity

Leading Counties for VC Investment

Activity

Leading Counties for Supporting Industry Base Employment

Cyber & Cyber-Physical Security

Montgomery, Fairfax,

Charlottesville

Fairfax, Loudon Fairfax, Arlington, Loudon,

Alexandria

Fairfax, Arlington, Loudon,

Alexandria Integrated

Networking, Communications, & Data Analytics

Montgomery, Charlottesville,

Fairfax

Fairfax, Loudon, Arlington

Fairfax, Arlington Fairfax, Arlington, Loudon

System of Systems

Engineering

Montgomery, Charlottesville, Fairfax, Norfolk

Fairfax, Alexandria,

Loudon, Roanoke City

Fairfax Fairfax

Life Sciences Charlottesville, Richmond,

Montgomery, Norfolk

Charlottesville, Fairfax,

Richmond, Loudon

Arlington, Fairfax, Botetourt

Fairfax, Richmond

The leading employment base in supporting industry sectors across all areas is concentrated in the northern Virginia region (with some concentration in Richmond for life sciences) along with most of the venture capital investment that supports growth areas. As expected, research publications activity is concentrated in the counties where key Virginia university institutions are located, with particular emphasis on the ecosystems surrounding Virginia Tech and UVA. Patenting activity is more aligned with the industry employment footprint, but is more mixed in life sciences and shows some aligned concentration with research activity.

These geographic profiles demonstrate a potential geographic misalignment between research activity and industry translational activity as well as between research activity and industry employment centers. The non-life sciences growth opportunity areas in particular face the challenge of aligning hubs of research activity based around key universities with industry talent and translational innovation

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demand which is heavily weighted towards northern Virginia. Although some research activity is beginning to emerge in counties that are more aligned with the current industry employment footprints, development pathways across the growth opportunity areas must incorporate strategic thinking around how to better geographically connect university activity with industry in order to fully realize the growth potential in each area.

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Appendix A: Core Competencies Found Across Virginia’s Base of Innovation A key dimension of core competency analysis involves understanding the focus and extent of activities through documented activities in academic research publications and patent/intellectual property activity across universities, industry and federal labs. By its nature, this type of analysis is largely quantitative and enables the use of sophisticated machine learning algorithms to assess the tens of thousands of records found in publications and patents to identify how these activities relate to each other. The ultimate aim of the core competency analysis is to identify where there are areas of critical mass in R&D activities across university, industry and federal labs, along with evidence of excellence. Follow-up analyses will investigate notable areas in terms of their potential to generate new or enhanced innovation-led industry development in Virginia.

Given the strong focus of VRIC in understanding Virginia’s translational research position in bridging university and federal lab research activity to more applied technology development across specific growth opportunities, the identification of core competencies starts with an examination of publications activities and then considers patent/intellectual property activity across universities, industry and federal labs.

Too often, there is a dichotomy in the way research is considered between basic research and applied research leading to technology development and innovations. Through much of the 20th century, a typical university research approach, encouraged by federal funding, focused on supporting either basic or applied research activities, which had very distinct goals in mind. The objective of basic research was intended to advance fundamental knowledge and the scientific theories in areas such as matter, physical processes, biological function, and human nature without regard to its practical applications. In contrast, applied research sought to apply well-understood basic research insights in making something work or in solving a practical problem – something that was more likely to be done in industry labs.

This dichotomy between basic and applied research led to the notion of the “ivory-tower” where universities pursue a linear, sequential flow of discovery-based research followed by more applied development activities, often divorced from those involved in basic science and undertaken in concert with key industry, healthcare and government stakeholders. Often this “ivory tower” focused on advancing research within specific academic disciplines and created a world of university research dominated by clear delineations of departments. As James L. Applegate explains, “It is sometimes said that society has problems, while universities have departments.”5

This dichotomy between basic and applied research is today very much in question with the recognition of “use-inspired” research. A powerful insight advanced by the late Donald Stokes, a faculty member at Princeton University, is that the linear continuum between basic and applied research is too simplistic and misses the more complex rise of “use-inspired” research in how basic science and technology advances interact. Stokes cited the model case of fundamental, basic research undertaken by Louis Pasteur as an example of “use-inspired” research with the intention of addressing a significant societal need that laid the foundation of microbiology nearly a century ago.

5 James L. Applegate, “Engaged Graduate Education Seeing with New Eyes, Association of American Colleges and Universities, 2004, page 6.

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What “use-inspired” research recognizes is that the relationship between basic science and technological change has been fundamentally altered in today’s advanced knowledge-based age. Technology today is increasingly science-based, while science has been increasingly technology-based--with the choice of problems and the conduct of research often inspired by societal needs. An example is the work of the quantum-effects physicists who are probing the phenomena revealed by the miniaturization of semiconductors from the time of the transistor's discovery after World War II. 6 Instead of a split between basic and applied research, university research activities now function in a more complex interweaving of basic and use-inspired research leading to technology development and applications.7

Publication Core Competency Strengths

The quantitative assessment of Virginia’s more academic-related strengths in R&D starts with an in-depth examination of peer-reviewed publications activities. These peer-reviewed publications are the most extensive means to learn about scholarly activities taking place across universities and federal labs. Publications are both a common means by which researchers report findings from their grant-funded activities, as well as the way researchers advance more theoretical work or pilot studies critical in demonstrating a body of work to win research grants. From 2014 to mid-2017, there were 53,557 publications generated by researchers in Virginia, with 70% of publications generated by researchers at Virginia’s universities and 6% by researchers across federal laboratories located in Virginia.

By examining the abstracts of these peer-reviewed publications, rich insights into the more detailed R&D activities found across scholarly activities is possible. To gain these insights, TEConomy conducted a cluster analysis with the use of a pattern recognition software tool, OmniViz,™ to group the thousands of records of peer-reviewed publications into specific groupings that reflected distinct “research themes.” OmniViz™ uses a machine learning algorithm that groups publications based on the free association in the use of words and phrases, rather than forcing clustering based on preselected key words—thus, there is no “a priori” bias to the clusters identified. The use of this analytical approach to publications cluster analysis provides a truly objective view of where there is critical mass of related publications that reflect more in-depth research core competencies.

The performance of the clustering analysis involves the following steps:

Step 1 – Content Development: A data set is with the content of publications abstracts and titles from peer-reviewed publications was developed.

6 See http://www.brookings.edu/research/books/1997/pasteur to learn more about Donald Stokes’ assessment set out in its widely acclaimed book, Pasteur’s Quadrant. 7 James Applegate, op. cit., page 5.

Where does that technology come from?

Pure basic

research

Use-inspired

basic research

Purely applied

R&D

Improved understanding

Improved technology

Existing understanding

Existing technology

Source: Stokes, Pasteur’s Quadrant

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Step 2 – Pattern Recognition: The analysis generated by OmniViz™ creates clusters in which publications are grouped together around apparent relationships and produce a series of words to describe and link these cluster areas.

Step 3 – Interpretation and Grouping by Expert Review: The identification of key themes and groupings that result from an OmniViz™ cluster analysis requires an experienced research analyst to cull through the cluster items and help interpret and explain the types of technologies and specific activities that are represented.

Figure A-1: Method for Using OmniViz™ Cluster Analysis

The OmniViz™ cluster analysis performed by TEConomy produced 72 distinct clusters across 53,557 publications from 2014 to mid-2017.8 A number of these 72 clusters were closely related upon review and so were combined into larger cluster groupings of multiple individual clusters. Altogether 35 cluster groupings were identified from the publications cluster analysis, with 23 in the life sciences and 12 in the non-life sciences. Details of these cluster groupings, including key terms generated by the cluster analysis and leading research themes are set out in Table A-6 at the end of this section. A summary version is presented in Table A-1 below.

Of the 35 cluster groupings identified, 11 stand as large cluster groupings with over 1,000 publication records, and typically multiple clusters, within them. These include 6 in the life sciences and 5 in non-life sciences fields. Below is a listing of these large, multi-cluster groupings set out in order of their size in the number of publications:

• Ecological Sciences and Technology (4,577) • Oncology (2,639) • Material Sciences (2,453) • Particle & High Energy Physics (1,456) • Neurological Sciences (1,320) • Obesity & Diabetes Research and Treatment (1,276) • Atmospheric Sciences (1,251) • Hepatology, Liver Disease and Transplantation (1,147) • Astronomy (1,122) • Orthopedic & Musculoskeletal Disorders (1,103)

Another 14 cluster groupings fall into the mid-size of more than 200 publication records and less than 1,000. These are typically distinct individual clusters with significant size. It suggests specific strengths found in Virginia in areas such as transportation sciences, communications and data, cybersecurity and genomic/molecular-based biological research as well as specific disease areas.

8 Three additional clusters were considered artifacts, clustering on general meaning terms and not clearly identifying thematic areas.

STEP ONE:Content

Development

STEP THREE: Interpretation

by Expert Review

STEP TWO: Pattern

Recognition Results

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There are also 10 smaller clusters, each with less than 200 publication records, that represent more narrow niche areas of focus across Virginia’s research base.

Table A-1: Summary Results of Publication Cluster Analysis

Cluster Groupings # of Records

# of Clusters

Life Sciences Oncology 2,639 2 Immunology, Infectious Diseases and Virology 2,262 3 Neurological Sciences 1,320 5 Obesity & Diabetes Research and Treatment 1,276 2 Hepatology, Liver Disease and Transplantation 1,147 2 Orthopedic & Musculoskeletal Disorders 1,103 5 Substance Abuse & Mental Illness 648 2 Health Care Research 552 2 Genomic Analysis 470 1 Respiratory Disorders & Conditions 378 2 Brain Injuries 346 1 Endocrinology 320 Veteran Treatment and Military Preparedness 308 1 Molecular and Cellular Biology 267 2 Animal Diary Science 165 1 Reproductive Biology 127 1 Pain Management 124 1 Craniofacial Abnormalities & Surgery 119 2 Ulcer-Related & Other Surgical Wound Treatments 107 1 Dental Health 87 1 Obstetrics & Gynecology 75 1 Veterinary Medicine 66 1 Nutritional Health 36 1 Non-Life Sciences Ecological Sciences and Technology 4,577 12 Material Sciences 2,453 6 Particle & High Energy Physics 1456 2 Atmospheric Sciences 1251 3 Astronomy 1122 1 Transportation Safety and Intelligent Transportation Systems 834 1 Wireless Communications & Data Networks 617 1 Cybersecurity 552 1 Roadway Construction 287 1 Geological Sciences 238 1 Systems Engineering, Modeling and Testing 224 1 Space Research 114 1 Large publication research cluster grouping

Mid-sized publication research cluster grouping

Niche publication research cluster grouping

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A graphic way to present these publication groupings is through a “galaxy” map that helps show the size and organization of the cluster groupings relative to each other, as set out in Figure A-2 below.

Figure A-2: Graphic Depiction of the Publication Cluster Groupings

Source: TEConomy’s analysis of publications obtained through Clarivate Analytics’ Web of Science database.

But size alone does not reflect Virginia’s excellence in its research areas of focus reflected by the publications cluster analysis. It is also important to consider how Virginia is positioned relative to the nation. In order to make these comparisons to the nation, TEConomy mapped specific publication fields identified by the Web of Science database to each of the publication cluster areas. A key advantage of peer-reviewed publications is that it reflects more detailed fields of research than is possible with the reporting by research expenditures. The Web of Science database tracks publications in peer-reviewed journals for universities in over 250 fields involving basic, applied, and clinical research. To show the breadth of Virginia’s research institutional activities in peer-reviewed publications, 163 publication fields had more than 100 peer-reviewed publications from 2014 to mid-2017. The top 20 fields are shown in Table ?? below.

To identify excellence in Virginia, it is important not to focus solely on the volume of peer-reviewed publications across fields since the number of journals can vary substantially by publication field and some fields tend to have more multiple authors on publications, such as physics. While the number of publications are an indication of the number of faculty involved, it does not provide insights into the areas of scholarly activity where Virginia stands out compared to the nation.

Animal/DairyScience

Astronomy

AtmosphericSciences

Brain Injuries

Craniofacial Abnormalitiesand Surgery

Cybersecurity

Dental Health

Ecological Sciences& Technology

Endocrinology

Genomic Analysis

GeologicalSciences

Health Care

Research

Hepatology and Organ Transplants

Immunology, Infectious Diseases and

Virology

Material Sciences

Molecular & Cell Biology

Neurological Sciences

Nutritional Health

Obesity and Diabetes Research/Treatment

Obstetrics and Gynecology Oncology

Orthopedics and Musculoskeletal Disorders

Pain Management

Particle/High Energy Physics

ReproductiveBiology

Respiratory Disorders and

Conditions

Roadway Construction

Space Research

Substance Abuse and Mental Illness

Systems Engineering, Modeling and Testing

Transportation Safety and Intelligent Transportation System Mgmt

Ulcer-Related and Other Wound Treatments

Veteran Treatment and Military Preparedness

VeterinaryMedicine

Wireless Communication and Data Networks

Health Care

ResearchEcological Sciences& Technology

Oncology

AtmosphericSciences

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A way to consider Virginia’s distinct fields of national leadership in scholarly activity is to measure where Virginia has a higher concentration of publication activity compared to the nation, or what economists would term a publication location quotient. Table A-2 presents the top 20 publication fields by number of peer-reviewed publications and by publication location quotient.

It is interesting to note that among the top 20 publication fields in Virginia, there is little overlap between the there are few fields that lead in both number of publications and publication location quotient. This suggests that size does not always translate into national standing.

Table A-2: Top 20 Publication Fields in Virginia by Number of Publications and Publication Location Quotient, 2014-mid 2017

Publication Field Number of

Publications Publication Field

Publication Location Quotient

Electrical Engineering 4,304 Engineering Aerospace 3.02 Astronomy 2,389 Physics Particles Fields 2.77 Multidisciplinary Sciences 2,033 Transportation 2.76 Environmental Sciences 1,886 Medicine Legal 2.52 Applied Physics 1,657 Physics Nuclear 2.33 Surgery 1,638 Transportation Science Technology 2.07 Material Sciences 1,633 Astronomy Astrophysics 2.04 Computer Science Theory Methods 1,494 International Relations 2.04 Biochemistry Molecular Biology 1,479 Engineering Industrial 1.82 Neurosciences 1,460 Meteorology Atmospheric Sciences 1.81 Optics 1,449 Materials Science Composites 1.75 Computer Science Information Systems 1,398 Remote Sensing 1.74 Physics Particles Fields 1,311 Fisheries 1.73 Oncology 1,263 Oceanography 1.71 Clinical Neurology 1,250 Psychology Applied 1.67 Ecology 1,189 Psychology Multidisciplinary 1.63 Public Environmental Occupational Health 1,178 Limnology 1.63 Telecommunications 1,159 Biodiversity Conservation 1.60 Engineering Mechanical 1,144 Information Science Library Science 1.56

Meteorology Atmospheric Sciences 1,120 Engineering Civil 1.55 Source: Clarivate Analytics’ Web of Science and TEConomy analysis

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Across the publication cluster groupings, the excellence of Virginia’s research activities in non-life sciences fields is revealed. Nearly every cluster grouping in the non-life sciences has publication fields that stand out nationally in their level of concentration. In the life sciences, there are only a handful of publication cluster groupings that stand out nationally.

Other measures of excellence in academic research that are mapped to the publication cluster grouping, however, reflect not only the strength of Virginia in non-life sciences publication cluster groupings but in life sciences as well. These other measures include:

• Presence of competitively won large federal research grants and research center grants

• National rankings from U.S. News and World report on specific fields of research

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Table A-3: Integration of Publication Strength, Major Grants and National Rankings

Cluster Groupings # of Records

Presence of Leading Publication Fields with Higher Concentration in Virginia than Nation

Active Major Grants (Greater than $1 m and/or major federally funded research center)

National Ranking (having a university or academic medical center in top 50 of U.S. News & World Report or among high performing hospitals)

Statewide Specific Institution (at least 10% higher than nation w/ 50+ pubs)

Life Sciences Oncology 2,639 -- Oncology – VCU –

46% higher; UVA 12% higher

NIH supported Cancer Centers at UVA and VCU

Cancer – UVA Medical Center 30th in the nation

Immunology, Infectious Diseases and Virology

2,262 -- Immunology – UVA 52% higher; Infectious Disease – UVA –38% higher; VCU – 11% higher Allergy – UVA 166% higher; VCU 10% higher

USAID grant on HIV to EVMS

n/a

Neurological Sciences 1,320 -- Clinical Neurology – UVA 156% higher; VCU – 91% higher Neuroimaging – UVA 73% higher; Neurosciences – VCU 73% higher

NIH Program Project Grant in Regulation of Neurotransmitters at UVA

None

Obesity & Diabetes Research and Treatment

1,276 -- Endocrinology & Metabolism – UVA 68% higher; EVMS – 378% higher

Diabetes & Endocrinology – Sentara/EVMS – 43rd and UVA Medical Center 44th

Hepatology, Liver Disease and Transplantation

1,147 GI/Hepatology (6% higher) Transplantation (15% higher)

n/a

Orthopedic & Musculoskeletal Disorders 1,103 Rehabilitation (35% higher) Sports Sciences (28% higher)

Orthopedics – UVA 133% higher; VCU – 31% higher Tissue Engineering – VCU 17% higher

1 NSF grant of over $1 million on biomechatronic interface at George Mason University

UVA Medical Center 33rd and VCU Medical Center 42nd in orthopedics

Substance Abuse & Mental Illness 648 Substance Abuse (46% NIH funded Center n/a

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Cluster Groupings # of Records

Presence of Leading Publication Fields with Higher Concentration in Virginia than Nation

Active Major Grants (Greater than $1 m

National Ranking (having a university or

higher) Clinical Psychology (45% higher)

on Drug Abuse Research at VCU

Health Care Research 552 Health Policy Services (33% higher) Health Care Sciences (25% higher) Nursing (7% higher) Medical Legal (152% higher)

1 grant on primary care outcomes from AHRQ to VCU

n/a

Genomic Analysis 470 Computational Biology (3% higher)

Genetics – VCU – 39% higher; UVA 18% higher;

Major NSF grant for Molecular Science Software Institute at Virginia Tech of over $1 m

n/a

Respiratory Disorders & Conditions 378 Respiratory System (7% higher)

NIH funded Center for Study of Tobacco Products at VCU

Pulmonary – none ranked in best hospitals COPD – VCU Medical Center, Sentara/EVMS and Carilion among high performing hospitals

Brain Injuries 346 -- 1 NSF grant of over $1 m (equipment)

n/a

Endocrinology 320 -- Endocrinology & Metabolism – UVA 68% higher; EVMS – 378% higher

Diabetes & Endocrinology – Sentara/EVMS – 43rd and UVA 44th

Veteran Treatment and Military Preparedness

308 -- n/a

Molecular and Cellular Biology 267 -- Cell Biology – VCU – 45% higher; UVA 12% higher Developmental Biology – UVA 29% higher Molecular Biology – VCU – 36%

NIH Program Project Grant on role glycosaminoglycans at VCU NIH Program Project Grant on regulation of vascular physiology and inflammation in tissues at UVA

Biology – UVA 50th

Animal Diary Science 165 Agriculture Dairy Animal n/a

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Cluster Groupings # of Records

Presence of Leading Publication Fields with Higher Concentration in Virginia than Nation

Active Major Grants (Greater than $1 m

National Ranking (having a university or

Health (27% higher) Reproductive Biology 127 Reproductive Biology (5%

higher) NIH Center of

Excellence and Program Project Grant on preterm birth at VCU

n/a

Pain Management 124 -- Anesthesiology – VCU – 28% higher

n/a

Craniofacial Abnormalities & Surgery 119 n/a Ear, Nose & Throat – UVA Medical Center 32nd

Ulcer-Related & Other Surgical Wound Treatments

107 n/a n/a

Dental Health 87 -- Dentistry & Oral Surgery – VCU 130% higher

n/a

Obstetrics & Gynecology 75 Obstetrics & Gynecology (6% higher)

NIH Program Project Grant in studies of polycystic ovarian syndrome at UVA

Gynecology – none ranked in top 50 or high performing

Veterinary Medicine 66 -- Veterinary Sciences – VT – 96% higher

Veterinary Medicine – VT 19th

Nutritional Health 36 -- n/a Non-Life Sciences Ecological Sciences and Technology 4,577 Ecology (35% higher);

Environmental Sciences (33% higher) Water Resources (50% higher); Environmental Engineering (39% higher); Oceanography (71% higher); Biodiversity Conservation (60% higher); Fisheries (73% higher)

16 NSF grants of over $1 million

Earth Sciences – VT 30th Environmental Engineering: VT 6th

Material Sciences 2,453 Composite Materials (75% higher); Coatings & Films (10% higher)

8 NSF grants of over $1 million and/or industry partnerships

Materials Engineering: VT 22nd; UVA 31st

Particle & High Energy Physics 1456 Particle Physics (176% higher) 2 NSF grants of over $1 million

Physics – UVA 44th

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Cluster Groupings # of Records

Presence of Leading Publication Fields with Higher Concentration in Virginia than Nation

Active Major Grants (Greater than $1 m

National Ranking (having a university or

Atmospheric Sciences 1251 Atmospheric Sciences (81% higher)

4 NSF grants of over $1 m

Earth Sciences – VT 30th

Astronomy 1122 Astronomy & Astrophysics (104% higher)

Physics – UVA 44th

Transportation Safety and Intelligent Transportation Systems

834 Transportation Science and Technology (107% higher)

US Department of Transportation-funded University Transportation Center at VT

n/a

Wireless Communications & Data Networks

617 Telecommunications (39% higher) Remote Sensing (74% higher)

3 NSF research grants over $1 m

Electrical Engineering – VT 18th; UVA 33rd

Cybersecurity 552 Computer Information Systems (52% higher) C/S Hardware Architecture (26% higher) C/S Software Engineering (38% higher)

9 NSF research grants in cybersecurity and related Big Data computing

Computer Science – UVA 29th; VT 40th

Roadway Construction 287 Construction Building Technology (28% higher) Civil Engineering (55% higher)

1 NSF industry-university collaboration center on tire research

Civil Engineering – VT 7th; UVA 45th

Geological Sciences 238 Geological Engineering (37% higher) Geosciences (34% higher) Geochemical/Geophysics (11% higher)

1 DoE grant of over $1 million on rare earth elements to UVA

Earth Sciences – VT 30th

Systems Engineering, Modeling and Testing

224 Industrial Engineering (82% higher) Operations Research (35% higher) Aerospace Engineering (202% higher) Instruments (28% higher)

3 NSF grants of over $1 million and/or industry partnerships

Industrial & Systems Engineering – VT 6th; UVA 32nd

Space Research 114 Astronomy & Astrophysics (104% higher)

Aerospace/Astronomical Engineering – VT 12th; UVA 26th

Large publication research cluster grouping

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Mid-sized publication research cluster grouping

Niche publication research cluster grouping

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Patent Analysis One important indicator of core technology competencies is patent innovation activity being generated in Virginia. Patents are a primary means for inventors to protect their product innovations from being replicated, and as such can be a good proxy for understanding the types of innovation where unique and specialized competencies are being demonstrated in a region. Although there are other forms of intellectual property protection through copyrights, trademarks, and trade secrets, patents are among the most widely used form of protection of novel technological inventions.

The analysis of patent innovation activity focuses only on patents invented by Virginia residents to more precisely measure the innovation generated within the state rather than innovations that Virginia companies import from inventors in other regions as assignees of intellectual property. The analysis also considers patent applications along with patent awards to provide a more current assessment of recent innovation activities since it can take several years for a patent award to be issued from the time of initial application.

20,663 patent awards and applications were filed by inventors residing in Virginia from 2014 to mid-2017, offering a significant database to consider innovation activity in the state. Of these patent awards and applications by Virginia inventors, 336 were assigned to universities and 723 to federal labs. Industry dominates in the assignment of patent awards and applications.

Leading Patent Areas

To identify where Virginia stands out in patent innovation activity, the analysis first considered those specific patent classifications where Virginia is a national leader based on a strong standing in specialization and quality within specific technology areas:

1) Patent specialization is measured by whether a patent classification area has a higher level of concentration in Virginia than the nation relative to overall patenting volume.

2) Patent quality is measured by whether a patent classification area has a higher level of citations per patent in that classification area than the national average, which can be viewed as a measure of patent impact in terms of contributing to follow-on innovation activity. Patents routinely cite prior patents as references in documenting their new intellectual property, demonstrating the influence and importance of these earlier patents on future innovation.

An examination by detailed patent fields finds:

• 20 patent fields that are both specialized and high quality, led by largely communications and data/computer science fields, as well as focused areas such as tobacco-related technologies.

• 17 patent fields that are specialized, reflecting many IT applications along with several medical technologies and energy/fuels technologies

• 25 patent fields that are high impact which reflect areas of communications and IT, but also more drug development

Figure A-3 below depicts how these patent areas stand across the measures of specialization and quality based on groupings into nine categories of:

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• Networking and communications • Computing and data analytics • Applied chemistry • Biochemistry • Drugs and therapeutics • Electronics and optics • Fuels and energy • Medical devices • Tobacco

It shows the excellence in patent activities are found in networking and communications, computing and data analytics, electronics and optics and tobacco.

Figure A-3: Mapping of Virginia Patent Innovation based on Specialization and Forward Citation Rating, 2014-mid-2017

Source: Clarivate Analytics’ Derwent Innovation; Calculations by TEConomy Partners, LLC.

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Table A-4: Detailed listing of Virginia Leading Patent Areas by Specialization and Relative Citation Levels

CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

A24B0015 Chemical features or treatment of tobacco; Tobacco substitutes (A24B0003000000 takes precedence) 77 22.16 1.67 1-Leading 0 0 38

A24F0047 Smokers' requisites not provided for elsewhere 96 3.81 1.23 1-Leading 0 0 20

G02C0007 Optical parts (characterized by the material G02B0001000000) 65 3.50 1.58 1-Leading 0 0 35

H04L0051 Arrangements for user-to-user messaging in packet-switching networks, e.g. e-mail or instant messages 175 2.63 1.30 1-Leading 0 4 102

H04M0015 Arrangements for metering, time-control or time-indication 43 2.47 2.61 1-Leading 0 0 27

H04L0061 Network arrangements or network protocols for addressing or naming 71 2.46 1.41 1-Leading 0 1 36

H04L0063 Network architectures or network communication protocols for network security 801 2.44 1.19 1-Leading 10 1 468

G06Q0050 Systems or methods specially adapted for a specific business sector, e.g. utilities or tourism 138 2.03 1.29 1-Leading 0 9 31

H04L0041 Arrangements for maintenance or administration or management of packet switching networks 226 1.93 2.10 1-Leading 2 0 139

H04W0074 Wireless channel access, e.g. scheduled or random access 48 1.79 5.90 1-Leading 0 0 35

G06Q0010 Administration; Management 348 1.65 1.10 1-Leading 1 13 126

H02J0003 Circuit arrangements for ac mains or ac distribution networks 55 1.61 1.43 1-Leading 2 0 27

H04W0016 Network planning, e.g. coverage or traffic planning tools; Network deployment, e.g. resource partitioning or cell structures

51 1.59 1.31 1-Leading 0 0 30

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CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

H04L0009 Arrangements for secret or secure communication 131 1.47 1.56 1-Leading 1 4 85 H04M0003 Automatic or semi-automatic exchanges 135 1.43 2.02 1-Leading 0 0 89

G06F0021 Security arrangements for protecting computers, components thereof, programs or data against unauthorized activity

381 1.43 1.25 1-Leading 7 1 233

H04W0036 Handoff or reselecting arrangements 115 1.35 1.12 1-Leading 0 0 89

H04B0007 Radio transmission systems, i.e. using radiation field (H04B0010000000, H04B0015000000 take precedence)

129 1.21 1.42 1-Leading 0 1 88

H04W0072 Local resource management, e.g. selection or allocation of wireless resources or wireless traffic scheduling

219 1.11 2.23 1-Leading 0 0 139

H04L0065 Network arrangements or protocols for real-time communications 109 1.02 1.67 1-Leading 1 0 59

H04W0012 Security arrangements, e.g. access security or fraud detection; Authentication, e.g. verifying user identity or authorization; Protecting privacy or anonymity

70 1.02 0.98 2-Specialized 0 0 39

H04L0047 Traffic regulation in packet switching networks 82 1.01 0.79 2-Specialized 0 0 56

A24D0003

Tobacco smoke filters, e.g. filter-tips, filtering inserts (filters in general B01D); Mouthpieces for cigars or cigarettes (for pipes, for cigar or cigarette holders A24F0007000000)

56 14.84 0.75 2-Specialized 0 0 32

C10L0001 Liquid carbonaceous fuels 41 4.50 0.95 2-Specialized 0 0 32

G06Q0040 Finance; Insurance; Tax strategies; Processing of corporate or income taxes 203 1.99 0.85 2-Specialized 0 5 51

H04L0029 Arrangements, apparatus, circuits or systems, not covered by a single one of groups; H04L0001000000- 40 1.77 0.77 2-Specialized 0 1 32

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CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

H04L0027000000

G06Q0020

Payment architectures, schemes or protocols (apparatus for performing or posting payment transactions G07F0007080000, G07F0019000000; electronic cash registers G07G0001120000)

251 1.67 0.99 2-Specialized 0 4 70

A61N0005

Radiation therapy (devices or apparatus applicable to both therapy and diagnosis A61B0006000000; applying radioactive material to the body A61M0036000000)

42 1.53 0.81 2-Specialized 8 0 17

G06N0005 Computer systems utilizing knowledge based models 60 1.42 0.42 2-Specialized 2 0 24

G01S0007 Details of systems according to groups; G01S0013000000, G01S0015000000, G01S0017000000

43 1.41 0.80 2-Specialized 2 3 13

G06Q0030 Commerce, e.g. shopping or e-commerce 482 1.40 0.85 2-Specialized 0 3 142

H04W0028 Network traffic or resource management 62 1.28 0.60 2-Specialized 0 0 46

C02F0001 Treatment of water, waste water, or sewage (C02F0003000000-C02F0009000000; take precedence);

47 1.14 0.92 2-Specialized 1 1 14

G05B0019 Programme-control systems 46 1.13 0.79 2-Specialized 0 0 27

H04W0004 Services or facilities specially adapted for wireless communication networks 201 1.09 1.09 2-Specialized 0 2 131

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CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

H04L0043 Arrangements for monitoring or testing packet switching networks 75 1.09 1.32 2-Specialized 0 0 49

H04L0067 Network-specific arrangements or communication protocols supporting networked applications 286 1.04 0.83 2-Specialized 0 0 144

H04W0024 Supervisory, monitoring or testing arrangements 74 0.99 2.18 3-High Impact 0 0 47

H04L0012

Data switching networks (interconnection of, or transfer of information or other signals between, memories, input/output devices or central processing units G06F0013000000)

80 0.95 1.19 3-High Impact 0 0 68

H05B0037 Circuit arrangements for electric light sources in general 41 0.94 1.74 3-High

Impact 0 0 25

H04N0021

Selective content distribution, e.g. interactive television or video on demand [VOD] (real-time bi-directional transmission of motion video data H04N0007140000)

224 0.93 1.47 3-High Impact 0 0 133

G06F0017 Digital computing or data processing equipment or methods, specially adapted for specific functions

883 0.91 1.05 3-High Impact 0 13 449

H04L0045 Routing or path finding of packets in data switching networks 76 0.85 1.93 3-High

Impact 2 0 45

C07K0014 Peptides having more than 20 amino acids; Gastrins; Somatostatins; Melanotropins; Derivatives thereof

84 0.82 1.23 3-High Impact 4 3 23

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CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

A61B0017 Surgery 263 0.77 1.04 3-High Impact 8 0 118

G06K0009

Methods or arrangements for reading or recognizing printed or written characters or for recognizing patterns, e.g. fingerprints (methods or arrangements for graph-reading or for converting the pattern of mechanical parameters, e.g. force or presence, into electrical signals G06K0011000000; speech recognition G10L0015000000)

166 0.75 1.55 3-High Impact 3 2 87

H04W0076 Connection management, e.g. connection set-up, manipulation or release 53 0.72 1.05 3-High

Impact 0 0 30

A61M0005 Devices for bringing media into the body in a subcutaneous, intra-vascular or intramuscular way;

68 0.69 2.74 3-High Impact 1 0 36

H05K0007 Constructional details common to different types of electric apparatus (casings, cabinets, drawers H05K0005000000)

48 0.67 1.04 3-High Impact 0 0 31

G06F0009 Arrangements for programme control, e.g. control unit (programme control for peripheral devices G06F0013100000)

192 0.65 1.74 3-High Impact 2 1 134

G06F0008 Arrangements for software engineering 102 0.63 2.46 3-High Impact 0 0 55

H04N0007 Television systems methods or arrangements, for coding, decoding, compressing or decompressing digital video signals

57 0.60 1.14 3-High Impact 0 1 37

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CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

H04N0019000000; selective content distribution H04N0021000000)

A61K0009 Medicinal preparations characterized by special physical form 63 0.58 2.53 3-High

Impact 1 1 17

H04W0052 Power management, e.g. TPC [Transmission Power Control], power saving or power classes 64 0.57 3.01 3-High

Impact 0 0 39

C12N0015 Mutation or genetic engineering; DNA or RNA concerning genetic engineering, vectors, 83 0.51 1.93 3-High

Impact 5 2 28

A61B0018

Surgical instruments, devices or methods for transferring non-mechanical forms of energy to or from the body (eye surgery A61F0009007000; ear surgery A61F0011000000)

48 0.50 2.11 3-High Impact 8 0 13

A61K0008 Cosmetics or similar toilet preparations 45 0.49 1.44 3-High Impact 0 0 12

G06T0007 Image analysis, e.g. from bit-mapped to non-bit-mapped 61 0.44 1.40 3-High

Impact 3 1 22

G06F0011

Error correction; Monitoring in information storage based on relative movement between record carrier and transducer G11B, e.g. G11B0020180000; in static stores G11C0029000000)

109 0.38 1.06 3-High Impact 0 4 64

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CPC8 Class Description VA

Invented

VA Indices (Granted Patents Only) VA Subset Counts

Specialization LQ

Forward Cites Impact Index

Assessment

SCHEV Institution Assignee Count

Govt Assignee Count

Industry Assignee Count

G06F0003

Input arrangements for transferring data to be processed into a form capable of being handled by the computer; Output arrangements for transferring data from processing unit to output unit, e.g. interface arrangements

326 0.34 1.83 3-High Impact 0 0 153

A61N0001

Electrotherapy; Circuits therefor (A61N0002000000 takes precedence; electrically conductive preparations for use in therapy or testing in vivoA61K0050000000)

46 0.32 1.47 3-High Impact 8 0 15

H01L0031

Semiconductor devices sensitive to infra-red radiation, light, electromagnetic radiation of shorter wavelength, or corpuscular radiation and specially adapted either for the conversion of the energy of such radiation into electrical energy or for the control of electrical energy by such radiation;

51 0.30 1.52 3-High Impact 1 7 10

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Patent Network Analysis

The idea of bridging technologies is a powerful concept not just for connecting industry and university strengths but for considering where there are networks of patent innovation formed by the patterns of forward innovation that occur as patents age. From economic literature describing healthy innovation ecosystems, the formation of such networks is one of the critical underpinnings of a robust innovation economy.

It is possible to identify networks across patent innovation within a region by analyzing the linkages of forward citations from a patent population of interest. Forward citations occur when a new patent filed cites a prior patent as a reference in documenting the new intellectual property created. This routinely occurs since the prior referenced patents usually contains fundamental ideas and concepts used in developing the new intellectual property of more recent patents. The original patent is thus said to generate forward citations in all patents that reference it in documenting their own innovative advancements.

Using network analysis algorithms, it is possible to construct networks of active linkages in patent activities across different Virginia companies as well as research institutions based on the citation patterns of patents. The relationships reflected in the forward citations of patents serves to highlight where there are close innovation relationships and clusters of innovation activity taking place in Virginia.

Virginia’s patenting innovation landscape as described by the network of forward citation activity can be described as having both a set of core patent innovation clusters that are highly interconnected, along with more focused niche patent clusters that are more stand-alone. There were nine core patent innovation networks identified by the analysis of forward linkages, including:

• Networking, IT and Data Analytics • Wireless Networks & Transmission routing and network optimization • Telecom and Wireless physical network infrastructure • Control, automation and detection systems (with applications for aircraft/transportation

systems, industry controls and power management/regulation • Electronics and optics (component level, semiconductors, etc.) • Materials engineering (armor, ceramics, shaped materials, coatings) • Fuel, energy and applied chemistry processes (including wastewater treatment, gas

separation/filtering) • Biopharmaceutical, biochemistry and biological materials • Multidisciplinary sensing and imaging analysis applications across medical, defense, IoT, content

delivery, etc.

A graphic illustration of these patent innovation networks is presented below in Figure ??, where each bubble represents different patent classifications coded based on broad technology focus areas and the lines show the connections from forward citation relationships between all the patent areas. The density of the connections among the core patent innovation networks is reflected in the tight links and proximity of the patent areas.

Most interesting cluster in the network is the multidisciplinary mix of image generation (tv systems, image projectors, etc.), selective content distribution, sensors, analytics, diagnostic medical devices,

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surgical devices, and other various med devices. This network seems to play a key role as a connector or bridge as observed in Figure A-4 by how the blue bubbles associated with multidisciplinary sensing and imaging analysis is found across the core patent innovation network areas.

Figure A-4: Mapping of Patent Innovation Networks Found in Virginia through Forward Citation Analysis

Source: Clarivate Analytics’ Derwent Innovation; Calculations by TEConomy Partners, LLC.

Table A-5 provides a detailed breakout across the patent innovation networks of its leading patent areas and key organizations assigned patents by Virginia inventors.

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Table A-5: Results of Patent Innovation Network Analysis Patent Innovation Network # of Patent

Awards and Applications

Associated Leading Patent Areas Based on Higher than US Level of Specialization and/or Relative Citation Impact

Top Assignees of Virginia Invented Patents (based on residency)

Networking, IT and Data Analytics

6,082 • Network architecture or communication protocols for network security (leading)

• Security arrangements for protecting computers (leading) • Management of computerized administrative systems

(leading) • Administration or management of packet switching networks

(leading) • User-to-user messaging in packet-switching networks • Systems or methods specially adapted for a specific business

sector (leading) • Arrangements for secure communications (leading) • Network arrangements or protocols for real-time

communications (leading) • Network arrangements or network protocols for addressing

or naming (leading) • E-commerce (specialized) • Network-specific protocols supporting networked

applications (specialized) • Payment architectures for payment transactions (specialized) • Processing of corporate or income taxes (specialized) • Traffic regulation in packet-switching networks (specialized) • Monitoring or testing packet switching networks (specialized) • Security arrangements, authentication, protecting privacy

(specialized) • Computer systems utilizing knowledge based models

(specialized) • Arrangements of circuits or systems (specialized) • Digital computing or data processing adapted for specific

functions (high impact) • Transferring data to be processed by computer (high impact) • Error detection and correction in information storage systems

(high impact) • Software engineering (high impact) • Data switching networks (high impact)

IBM Amazon Capital One Financial Corp. Facebook VeriSign AOL Bank of America Verizon Google Time Warner Cable MicroStrategy Accenture Global Services

Wireless Networks & Transmission routing and network optimization

1,328

• Wireless channel access (leading) • Network traffic or resource management (specialized) • Supervisory, monitoring or testing arrangements (high

impact) • Power management for transmission power control, power

saving (high impact) • Connection management (high impact)

Ofinno Technologies Sprint Spectrum BlackBerry CommScope Tech Time Warner Comcast Cable Clearwire IP Holdings Fujitsu Hughes Network Systems Intel

Telecom and Wireless physical network infrastructure

751

• Automatic or semi-automatic exchanges (leading) • Metering, time-control or time-indication (leading) • Services or facilities for wireless communications (specialized)

Sprint Spectrum IBM Facebook Verizon Kajeet Genesys Telecom Labs Google AT&T Boeing Time Warner Angel.com Inc. Somos, Inc.

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Patent Innovation Network # of Patent Awards and Applications

Associated Leading Patent Areas Based on Higher than US Level of Specialization and/or Relative Citation Impact

Top Assignees of Virginia Invented Patents (based on residency)

Control, automation and detection systems (with applications for aircraft/transportation systems, industry controls and power management/regulation

783

• Circuit arrangements for electricity distribution networks • Program control systems

General Electric Virginia Tech NASA IBM US Navy Gridpoint Dominion Resources DEKA Products InScope Energy

Electronics and optics (component level, semiconductors, etc.)

1,484

• Semiconductor devices sensitive to infra-red radiation, light, electromagnetic radiation or control of electrical energy by radiation (high impact)

• Different types of electric apparatus (high impact) • Circuit arrangements for electric light sources (high impact

US Navy Acuity Brands Lighting Baker Hughes NASA BAE Systems IBM Mitsui Chemicals UVA BWX Technologies Areva General Electric

Materials engineering (armor, ceramics, shaped materials, coatings)

1,011

• None

DuPont US Navy Honeywell International NASA Gala Industries Invista North UVA Westrock MWV

Fuel, energy and applied chemistry processes (including wastewater treatment, gas separation/filtering)

657

• Treatment of water, waste water or sewage • Liquid carbonaceous fuels (i.e. gasification of natural gas)

ExxonMobil Hamilton Beach Afron Chemical Continental Automotive Systems US Navy Global Plasma Solutions Hollingsworth & Vose Jefferson Science Associates

Biopharmaceutical, biochemistry and biological materials

2,357 • Chemical features or treatment of tobacco (leading) • Tobacco smoke filters (specialized) • Peptides having more than 20 amino acids (high impact) • Mutation or genetic engineering involving DNA or RNA; use of

medicinal preps with genetic material; plant reproduction by tissue culture (high impact)

• Medicinal preparations (high impact) • Cosmetic preparations (high impact)

Philip Morris USA Altria Client Services UVA US Navy VCU WestRock MWV Celanese International Virginia Tech Intrexon Corporation

Multidisciplinary sensing and imaging analysis applications across medical, defense, IoT, content delivery, etc.

2,918 • Details of systems according to groups (specialized) • Radiation therapy (specialized) • Surgery (high impact) • Interactive tv or video on demand (high impact) • Devices for bringing media into the body (high impact) • Impact analysis (high impact) • Coding, decoding, compressing or decompressing digital

video signals (high impact) • Surgical instruments, devices or methods to transfer forms of

energy to and from the body (high impact) • Electrotherapy, including circuits used for (high impact)

K2M UVA Time Warner Cable Altria Client Services US Navy IBM Alarm.com Elwha LLC Kaleo, Inc. Avigilon Fortress Corporation Verizon

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Integration Across Translational Research Paradigms

From the perspective of translational research across basic research to use-inspired research to technology development, there is significant alignment between the publications clusters and the patent innovation networks found in Virginia R&D base as depicted in Figure ?? below.

This significant overlap suggests that the patent innovation networks are a good starting point for thinking about how the core competencies represented by the publication clusters and patent innovation networks form “technology platforms” for driving innovation-led growth in Virginia. Technology platforms represent robust areas of academic and industry R&D strengths that are applications-oriented and align with significant near- to mid-term market opportunities.

Figure A-5: Alignment of Publications Cluster Analysis and Patent Innovation Networks across Translational Research Paradigm

Still, two areas that are not well covered through the patent innovation networks are:

• Agriculture, Dairy Science, and Veterinary Medicine

• Space Research

To further confirm the strength of the patent innovation networks together with adding an agricultural and space research technology platform as having a line-of-sight to market opportunities, the next phase of the analysis will consider how the market pull of advanced industry development and new venture formation is reflected in these technology platforms.

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Table A-6: Detailed Results of Publication Cluster Analysis Meta-Cluster Category # of

Records # of Clusters

Key Terms Associated Cluster Themes Identified

Life Sciences

Oncology 2,639 2 breast cancer, survival, cancer, chemotherapy, her2, non-small-cell-lung-cancer; cancer, survival, apoptosis, prostate cancer, skin cancer, ovarian cancer

Wide range of cancers: breast cancer, non-small-cell-lung-cancer, glioblastomas, prostate, skin and ovarian; Studies on ways to monitor cancer progression using imaging, risks from chemotherapy, genetic factors, cancer therapies; Broad analyses such as gene expression, epigenetics, diagnostic biomarkers, targeted therapies, prevention monitoring and palliative care, connections to HPV

Immunology, Infectious Diseases and Virology

2,262 3 bacteria, microbial, biofilm; infection, HIV, virion, antibiotic, mortality, bacteria, diarrhea, vaccine, anti-microbial, inflammation, t-cell; virion, influenza, infection, vaccine, HIV

Broader bacteriology and microbiology; Antibiotic resistance; Antimicrobial agents; Environmental microbiology and diseases; Microbial related immunology; Identification of genetic risk factors and immunological pathways of wide range of infectious diseases, including HIV, Lyme's, pneumonia, diarrhea, staph, malaria, brain abscesses, sepsis; Studies of influenza and other viral pathogens involving innate and adaptive immune-responses, genetic analysis, structural biology of viruses (using Cryo-EM), antibodies, and vaccine development

Neurological Sciences 1,320 5 cognitive, fatigue, social; brain, imaging, neural, neuron; central nervous system, axon, neuron, brain, myelin; sensory, neuron, taste, neural, information, response; seizure, epilepsy, status epilepticus, brain, hippocampus

Cognitive science and related research; effect of fatigue on cognitive ability; cognitive issues in education and testing; Functional brain imaging; Human brain and neural systems on-a-chip; Techniques for brain biopsy; Neurosurgery of glioblastomas; Post-stroke brain stimulation; Neurogenetics; MR guided ultrasound for epilepsy; Cellular studies (signaling, modulation) into neurons, myelin; Neurodegenerative diseases, CNS disorders; Taste nerves sensory assessment and regeneration; Neurotechnology for monitoring and restoring sensory, motor, and autonomic functions; sensory discrimination tests and measurements; sensory function and networks; Research into the genetics, physiology and biochemistry behind seizures and epilepsy; behavioral effects related to epilepsy; other conditions causing seizures;

Obesity & Diabetes Research and Treatment

1,276 2 diabetes, glucose, insulin, inflammation, obesity, islet, beta cell; obesity, body mass index, fat, diabetes, exercise

Insulin resistance; Insulin delivery systems; glucose control and monitoring; Genetics of Type I diabetes; Gene association studies of lipids and diabetic disease progression; beta cell survival and proliferation; artificial pancreas systems; diabetes and cardiovascular diseases; exercise and type 2 diabetes; risk factors for diabetic-related complications; nutrition and dietary studies related to obesity outcomes; obesity as a public health concern; other diseases/health outcomes related to patient obesity

Hepatology, Liver Disease and Transplantation

1,147 2 hepatitis C virus, infection, hepatitis, ribavirin, hepatocellular carcinoma, liver, cirrhosis; liver, transplant, survival, recipient, mortality, cirrhosis, donor, nonalcoholic fatty liver disease (NAFLD)

Hepatitis C and other liver-related disorders, related genetic analysis and treatment approaches; Liver diseases, injuries, cirrhosis and liver and other transplantation studies

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Meta-Cluster Category # of Records

# of Clusters

Key Terms Associated Cluster Themes Identified

Orthopedic & Musculoskeletal Disorders

1,103 5 knee, arthroplasty, osteoarthritis, hip; fracture, bone, revision, femoral, implant; spine, lumbar, imaging, cervical, fusion, deformity; muscle, rehabilitation, ankle, foot, motion, sprain, skeletal muscle, compression-after-impact {cai}; deformity, spine, sagittal, scoliosis, lumber, pelvic, lordosis, fusion, surgery

Knee related assessment and treatments for chronic knee pain, ACL reconstruction, knee sprains, etc.; Research on effectiveness and complications from total joint replacements of shoulder, hip, knee and ankle; Hip fracture research and care; Spinal deformity, scoliosis, degenerative disks, spinal surgery, back pain; Neuromuscular function and disorders, effectiveness of wide range of rehabilitation approaches, chronic ankle instability causes and treatments, MR imaging of muscular injuries, some spinal cord injuries; Spinal deformity, scoliosis, degenerative disks, spinal surgery, back pain

Substance Abuse & Mental Illness

648 2 alcohol, drink, substance, substance abuse, marijuana, social; twin, substance abuse, heritability, criminal, alcohol use disorder, alcohol

Broad biochemical and behavioral research related to substance abuse; Genetic risks of addiction, alcohol and substance abuse treatment, Disparities in addiction, Behavioral disorders and addiction, genetic influences and treatment

Health Care Research 552 2 mortality, discharge, readmission, admission, health-related quality of life (hrqol), social, caregiver, mental health

Patient care; causes of patient mortality and readmission; Wide range of health outcomes studies

Genomic Analysis 470 1 trait, locus, chromosome, SNP, variant, quantitative trait locus, genome-wide association studies

Both human, animal and plant genomic analysis involving genetic networks, associations and mapping; genome-wide analysis; SNP analysis; Genotype-to-phenotype analysis

Respiratory Disorders & Conditions

378 2 asthma, allergy, pediatric, airway, inflammation, medication; antibody, IgE, allergen, allergy, serum, asthma

Asthma and other allergen-related respiratory conditions, including allergen chemistry, antibody structure and response, allergen-induced asthma

Brain Injuries 346 1 traumatic brain injury, brain, blast, head, trauma, rehabilitation, concussion

Traumatic brain injury and assessment, concussion genetic risk factors, cellular mechanisms, rehabilitation, condition management, family interventions, head-impact measurement, clinical recovery

Endocrinology 320 hormone, testosterone, thyroid, reproductive, cortisol, serum, estrogen

Hormone treatments, thyroid-hormone conditions, receptors, modulation, and pathways, menopause, growth factors and hormones, infertility

Veteran Treatment and Military Preparedness

308 1 military, veteran, post-traumatic stress disorder, mental health, trauma

PTSD, TBI and overall preparedness of soldiers -- involving assessment, predictive modeling, design of military medical operations and treatment approaches

Molecular and Cellular Biology

267 2 RNA, miRNA, mRNA, DNA; messenger RNA, chick, hypothalamus, RNA

Gene expression, regulation, cell signaling; Broad genetics context, endocrinology-oriented chick test subjects (also brings in some chicken/poultry science)

Animal Diary Science 165 1 bovine, dairy, milk, cattle, lactate, nutrient, calf, fat, protein

Infectious diseases impacting cattle; healthy feed additives; growth factors and embryo development for cattle; dairy production and quality

Reproductive Biology 127 1 reproductive, sperm, breed, motility, sexual Mostly non-human, but some human studies; environmental effects on reproduction

Pain Management 124 1 opioid, morphine, substance abuse, prescription Anesthesia, opioid use for pain, persistent pain management Craniofacial Abnormalities & Surgery

119 2 nasal, cavity, airway, cleft, lip, palate, face, deformity, defect, surgery

Improving Nasal Form and Function after Rhinoplasty; olfactory dysfunction; Prevention and Treatment of Nasal Valve Collapse After Micrographic Surgery; treatment of recurrent sino-nasal polyposis Cleft palate and cleft lip genetics and surgical techniques

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Meta-Cluster Category # of Records

# of Clusters

Key Terms Associated Cluster Themes Identified

Ulcer-Related & Other Surgical Wound Treatments

107 1 wound, ulcer, heal, skin, dressing Pressure ulcers, leg ulcers, deep tissue injuries, surgical wounds, injuries from urinary catheters

Dental Health 87 1 dental, tooth, implant Dental implant technologies, materials, etc.; dental education, practice and oral health prevention; molecular basis for hereditary enamel defects

Obstetrics & Gynecology

75 1 vaginal, atrophy, post-menopausal, pelvic, sexual, HIV Hysterectomy; vaginal mesh; vaginal wall prolapses; menopause

Veterinary Medicine 66 1 equine, serum, breed, veterinary Equine medicine and breeding Nutritional Health 36 1 probiotic, gut, microbiota, bacteria Food microbiome; gut biology; diets; probiotic supplements; functional foods

Non-Life Sciences

Ecological Sciences and Technology

4,577 12 nitrogen, ammonium, nutrient, nitrate, microbial, denitrify, soil wastewater, sludge, effluent, recovery, treatment; carbon dioxide, methane, fuel sea, ice, ocean, climate, cloud, marine ecosystem, habitat, coastal, conservation, marine; salt, coastal, sea level, ocean, tidal, marsh; sediment, river, coastal, basin, marine, erosion, soil; river, basin, dissolved organic carbon, freshwater, watershed, discharge; lake, ecosystem, freshwater, river, nutrient, sediment; fish, marine, fishery, coral, reef, conservation; oyster, reef, bay, marine, restoration; forest, tree, ecosystem, pine, conservation

Studies of nitrogen-cycle within environment, nutrient transport; Wastewater treatment; water treatment research; microbial fuel cells; carbon dioxide and methane emission/capture modeling and technologies; surface water/ atmospheric interactions and relationship with climate; wildlife research, conservation, biodiversity, habitat models, coastal bay ecology; Saltwater ecosystems, ocean and environment, wetland management, biodiversity and conservation, coastal research and engineering, sea level/climate change; Sediment structure, porosity, transport, and chemistry; Sediment contamination; erosion studies; sediment studies related to climate change and bio/geosciences; Hydrology, water flow and watershed modeling; watershed and groundwater chemistry; river-related studies; Aquatic sciences, freshwater lake ecosystems and sustainability, watershed analysis; Marine based biodiversity and conservation; Studies of oyster ecosystems and sustainability; forestry science, ecology, and management; forest soils and carbon capture

Material Sciences 2,453 6 thermal, temperature, conductivity, polymers; electronic, imaging, sinter, conductivity; thin film, film, nanotubes, zine oxide; composites, polymers, carbon nanotubes, fiber; cellulose, polymer, nanocrystals, fiber; alloy, corrosion, steel, metal

Research and testing of applications and structure of thermal protective, conductive, or harsh environment materials; Research into "thermal" materials/coatings used in a variety of applications including electronics, structures, imaging, semiconductors; Wide range of thin films; Electrodeposition and nanofabrication; nanomaterials and nanowires; additive mfg. technologies; Carbon nanotubes, nanocomposites; Biomaterials; Polymer sciences, membranes, thermoplastic elastomers; Cellulose chemistry and other carbohydrate polymers; Shape memory alloys, corrosion effects and testing, material surface and structure, electrochemical materials, materials engineering and testing

Particle & High Energy Physics

1,456 2 collision, decay, detector, large hadron collider, quark, boson, jet, atlas, bar, higgs; collision, decay, energy, neutrino, flux, astronomy

Particle detector systems and modeling, proton measurement of higgs boson and quarks, studies of dark matter; Collision and decay modeling; neutrino/other particle detector systems, measurement, and modeling

Atmospheric Sciences 1,251 3 flux, solar, cloud, calibration, imaging; nitrogen oxides, 0-3, ozone, air; ozone, stratospheric, solar, climate, aircraft, aerosol ozone, stratospheric, solar, climate, aircraft, aerosol

Radiation effects on environment, space weather, remote sensing and earth observing sensors, weather forecasting, solar flares, geoimagery; Emissions, pollution transport, greenhouse gases, airborne measurements, atmospheric composition, space impacts on atmosphere. Measurement of atmospheric chemistry using technologies, such as spectroscopy.

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Meta-Cluster Category # of Records

# of Clusters

Key Terms Associated Cluster Themes Identified

Astronomy 1,122 1 astronomy, star, galaxy, radio, stellar, imaging, interstellar medium

Research methods for studying galaxies; star formation; gravitational fields and black holes; antenna design and material research

Transportation Safety and Intelligent Transportation Systems

834 1 vehicle, driver, transportation, traffic, crash Driver behavior detection, modeling and assessment; Roadway and environmental factors affecting crash severity; Driver crash risk assessment; Motorcycle safety; Connected vehicle traffic management; Automated incident detection on roadways

Wireless Communications & Data Networks

617 1 wireless, network, communication, attack, mobile, sensor, security, node, jamming, antenna

wireless network modeling and performance, wireless sensors, cybersecurity research, military communication studies,

Cybersecurity 552 1 security, attack, privacy, cyber, malware, network Authentication protocols, verification methodologies, intrusion protection, software vulnerabilities, IoT security, wireless and mobile security, security of microelectronics, antennas; some other security-related (non-cyber)

Roadway Construction 287 1 concrete, pavement, asphalt, transportation, bridge Road materials and pavement design; intelligent transportation system roadway construction; effects of temperature on asphalt; advanced concrete for bridge construction; lifecycle assessment of pavement; risk factors for pavement

Geological Sciences 238 1 rock, basin, reservoir, shale Gas shale formation and extraction, modeling of geoscience processes, studies of geological formations

Systems Engineering, Modeling and Testing

224 1 fault, adaptive, reliability, voltage Wide range of systems engineering analyses of faults, with focus on power systems, aerospace and software

Mars Space Research 114 1 Mars, Martian, land, solar, vehicle, atmosphere Mars exploration and spacecraft development, mars environment analysis, surface analysis, radiation environment

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Appendix B: Overviews of Innovation Platforms

Platform Area What does the platform support? Key VA Research Innovation Highlights

Key VA Translational Industry Innovation Highlights

Biopharmaceuticals, Biochemistry, & Biological Analysis

Technologies used to support the process of biological substance characterization, drug discovery, and creation of finished therapeutic products for patient use across areas ranging from oncology to infectious disease. Involves integrated capacities in biochemical labs, genetic and biomarker analysis, drug development, and clinical testing

• Leading cancer centers at VCU and UVA with numerous other supporting centers in biochemical and drug discovery areas funded by major grant activity

• High supporting research publications activity in biological and applied medical sciences fields

• Lack of large supporting industry base in pharmaceutical production and low venture capital investment in therapeutics

Regenerative Medicine Devices

Medical device technologies used to repair and rehabilitate injuries, including implantable/biocompatible devices, prosthetics, and tissue/organ system regeneration

• Presence of numerous centers in biomechanics and regenerative medicine across several universities

• Lack of significant supporting medical device industry employment

Diagnostic Sensing & Imaging Medical Devices

Medical device technologies used to diagnose and treat illnesses in clinical practice, ranging from medical imaging systems to advances in diagnostic sensor device accuracy and usability

• Variety of applied imaging university centers in specific disease areas

• Presence of aligned R&D spending and academic medical centers to support research

• Significant patenting activity in medical imaging and diagnostic surgical tools

Animal Science & Veterinary Medicine

Technologies used to ensure animal health and high-quality production of livestock products

• Highly ranked school of veterinary medicine at Virginia Tech

• Specialized and sizeable veterinary services industry sector, but lack of wider ag production employment base

Cyber & Cyber-Physical Security

Analysis and detection technologies that can recognize and alert users and respond to unauthorized intrusions and compromised systems, both on virtual networks as well as in connected devices and physical systems that use networked communications

• Presence of high profile cyber security centers and institutes across several universities

• High supporting research publications activity in computer sciences

• Presence in patenting of encryption and security protocols

• High level of SBIR Phase 2 companies creating cyber security technologies for defense and biometrics applications

• Large and specialized supporting industry base in computer engineering

Applied Data Analytics, Image Analysis & Decision Support Tools

Software and other services that use the combination of large databases and advanced modeling to enable predictive analytics that help industries support decisions.

• Major centers across many aligned applications areas including modeling, visualization, image/video

• High levels of venture capital investment in software applications

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Platform Area What does the platform support? Key VA Research Innovation Highlights

Key VA Translational Industry Innovation Highlights

Applications areas can range from financial services to national security to medical informatics

analysis, business analytics, and complex systems modeling

• Several major grants to develop software applications using analytics capabilities

leveraging data analytics

• Large clusters of patenting activity in analytics solutions for finance and business

• Numerous SBIR Phase 2 awards in defense-related decision support tools

IT, Networking, & Data Management

Technologies used to operate data transmission networks such as local Internet and which enable efficient storage and access of data by researchers and industry

• Presence of numerous adjacent research strength areas in high performance computing and cyber, but lower level of focus on pureplay networking & IT research

• Presence of numerous patents in network operations applications

• Presence of large and specialized supporting computer services industry base with several data center operations in state, and adjacent industry markets in financial services

Electronics & Optics Materials/ Components

Design and manufacture of advanced microelectronics components including semiconductors, circuits, photonic devices, detectors, and other micro-scale electronic parts. This platform involves the creation of novel micro- and nano-materials with desirable electrical properties, use of high performance testing and optimization to configure electronics for power or durability requirements, and advanced manufacturing processes to assemble electronic components into finished systems.

• Significant R&D spending in electrical engineering applications aligned towards this platform

• Large number of research publications in electrical/electronic engineering

• Major research centers across several universities focused on embedded electronic systems, photonics, electrochemical science, nanoelectronics, and bioelectric materials

• Some venture capital investment in electronics and semiconductors

• Presence of SBIR Phase 2 companies focused in high performance/low power electronics

Engineered Materials for Aerospace, Naval, & Defense Applications

Custom materials created with specific thermal, electrical, or other structural properties for use in aerospace or naval vehicles as well as defense applications such as armor and weapons. Can include

• Several key university centers for manufacturing and testing of aerospace and naval materials

• Significant research publications activity in materials science, applied physics, and nanoscience

• Large and highly specialized ship building industry which drives industry innovation

• Variety of SBIR Phase 2 awards in advanced materials for defense

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Platform Area What does the platform support? Key VA Research Innovation Highlights

Key VA Translational Industry Innovation Highlights

composites, polymers, ceramics, metals, and other shaped products

and space environment applications

Applied Sensing & Geospatial Systems

Variety of systems specially adapted to specific functions including measuring atmospheric or ocean properties, navigation and object detection, precision location finding, and geographic analysis. Applications in this area often rely on remote sensing and satellite-based technologies and are also incorporated as integrated systems onboard both manned and unmanned vehicle systems for navigation, defense, and intelligence or data gathering applications.

• Highly specialized research publications activity in meteorology/atmospheric science combined with significant and specialized presence of imaging, instrumentation, and remote sensing areas

• Research centers at many state universities specializing in climatology, naval systems, atmospheric science, oceanography, and geospatial intelligence and information technology

• Multiple major grants in space weather tracking, radar systems for atmospheric and modeling, and a UAS research and testing site

• Significant SBIR Phase 2 awards activity around underwater sensing and detection systems for defense applications, real-time geospatial intelligence gathering, and unmanned systems terrain sensing

• Major cluster of engineering and other research services industries that helps support sensing, naval, and geographic information systems manufacturing companies

Wireless Communications Technologies & Equipment

Systems which enable wireless communication at the broadcast, reception, or signal processing stage. These technologies can be involved in the physical infrastructure required to support wireless communications (such as specialized antennas or aerials), systems to maintain communications signal quality or detect transmission errors in real time, technologies to secure or encrypt wireless activity, and novel ways to efficiently transmit information between reception points (for example, wideband applications)

• Large and specialized group of research publications in electrical engineering and telecommunications disciplines which support wireless innovation applications

• Major centers focused around innovation in core wireless technologies of applied signal processing, IoT communications, and wireless security as well as applications areas in wireless health devices and command and control systems

• Presence of venture capital investment in emerging wireless and satellite communications companies

• Major patenting cluster around wireless network operations and infrastructure

• Major Phase 2 SBIR company activity in antenna systems, real-time communications, transmitter/receiver components, and efficient spectrum usage

• Large state employment base in wireless telecommunications carriers

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Platform Area What does the platform support? Key VA Research Innovation Highlights

Key VA Translational Industry Innovation Highlights

Transportation Systems & Technologies

Sensing and control technologies that enable intelligent transportation systems or novel materials for use in transportation applications, primarily involving road and cargo transportation applications in autonomous/intelligent vehicles, advanced materials for vehicle systems, integration of modern logistics and operations technologies, and advancements in infrastructure (such as roadways or ports)

• Highly specialized research publications activity in transportation science and technology supported by sizeable mechanical engineering research activity which supports basic science in transportation systems

• Major R&D spending in engineering disciplines aligned with transportation science

• Several major centers specializing in transportation technologies including autonomous vehicles, vehicle system testing and validation analytics, , tire research, and transportation sustainability and logistics

• Limited supporting industry innovation presence in vehicle systems manufacturing and limited presence of logistics/cargo industries

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Platform Area What does the

platform support? Line-of-sight Assessment

Key VA Research Innovation Highlights

Key VA Translational Industry Innovation Highlights

Environmental Sciences and Technology

Applications in conservation, biology, or natural resource management that involve monitoring the conditions of various ecosystems to forecast future changes or mitigate consequences. This platform relies on biological testing and monitoring, remote sensing, and advanced modeling technologies to provide an integrated picture of changing environments and impacts on availability and quality of natural resources

High Potential Innovation Platform

• Large cluster of specialized research publications activity in environmental science, ecology, geosciences, water resources, and other natural resource-related areas

• Significant levels of university R&D spending in supporting discipline areas such as biological sciences and oceanography

• Numerous university centers in various focus areas including environmental hydraulics, environmental remote sensing systems, water resources, and marine science and oceanography

• Major research and experiment stations and field laboratories

• Specialized but very small industry innovation presence in patenting and environmental consulting industry sector employment

Energy, Power Systems & Fuels

Advancements in next generation fuel products and energy sources in a wide variety of applications. These can include biochemical and geoscience technologies used to advance traditional fossil fuel products, energy generation systems (primarily based on renewable sources), and efficient power grid management through smart and micro-grid technologies

Middling Innovation Platform

• Some significant research publications activity areas in geosciences/geochemistry, physical chemistry, energy/fuels, and nuclear energy

• Presence of major university centers in renewable energy, grid and energy management research, and coastal/wind energy research

• Small but highly specialized patenting areas in fossil fuels and wind turbines

• Modest presence of energy-related industry sectors in fossil fuel and nuclear power generation, electrical distribution, power equipment manufacturing, and engineering services support for power grid

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applications