Technology-Based Economic Development

1. Technology-Based Economic Development IRP Meeting October 11, 2011 Enabling business and deployment success for INL, its host state and partners Steve McMaster, Director INL Technology Deployment

2. Thanks for the memories Nancy… • Yes, the rumor’s true…Nancy’s retiring • Please join me in welcoming Stephanie Cook • How can you help me and INL during the transition? • Put a note on your calendars to send flowers or chocolates or Starbucks to Nancy • Continue to embrace INL’s TBED efforts • Take something you learn today and teach it to someone else (really, just do it!)

3. What is TBED? • “An approach used to help create a climate where firms that constantly innovate and maximize the use of technology can thrive” • Success requires several elements: • An innovation infrastructure • Entrepreneurship • Sources of risk capital

4. Why does INL care about TBED? • TBED is a TD accelerator • Increased direct contact with commercial industry • Increased ROI on R&D investments • Technology centers attracted highly skilled talent • Successful local technology companies attract capital funding • Virtuous circle of increased innovation

5. But it’s so hard with all the constraints…. • “Creativity loves constraint. People often think of it in terms of artistic work- unbridled, unguided effort that leads to beautiful effect. If you look deeper, however, you’ll find that some of the most inspiring art forms- haikus, sonatas, religious paintings- are fraught with constraints. They’re beautiful because creativity triumphed over the rules…creativity, in fact, thrives best when constrained.” • Marissa Mayer, VP for Search Products, Google

6. TBED Drivers and the Virtuous Cycle Innovation Engines Risk Capital Entrepreneurship Silicon Valley, Rt. 128 & Research Triangle didn’t grow overnight!

7. National & Homeland Security Energy & Environment • Supervisory Control and Data Acquisition (SCADA) Work • Grid Reliability and Security • Cyber Security • Wireless Communications • Nuclear Nonproliferation • Armor, Explosive Blast Protection A leader in critical infrastructure protection and homeland security • Hybrid Energy Systems • Clean Energy and Water • Bio-fuels and Synfuels • Battery Technology • Non-traditional Hydrocarbon use A leader in developing solutions to energy, resources and infrastructure challenges in the State, Region and Nation Programs of National Importance Nuclear Energy • Fuel Cycle R&D • Light Water Reactor Sustainability R&D • Next Generation Nuclear Plant (NGNP) • ATR National Scientific User Facility • Space Nuclear U.S. National Nuclear Energy Laboratory and an International leader Technologies that benefit our Communities, State, Region and Country

8. Technology Deployment – A Link to Industry Ensure the nation’s energy security with safe, competitive, and sustainable energy systems and unique NHS capabilities. INL Mission “The value of an idea lies in the using of it” Thomas Edison

9. How are we doing? Example of 2011 Innovation DevelopmentsINL’s α-SiC Fiber Recognizing INL Innovation at Work • 137 inventions recorded • 31 patents issued • 13 new patent licenses • $1.1 M in royalties • $5.6 M funds-in for 10 new Cooperative Agreements • $60 M funds-in and 30 new Work for Others agreements • 2 R&D 100 and 2 FLC awards • Achieving record performance in: • Invention disclosure submittals • Reducing time to get agreements in place • Distribution of critical nuclear software • Quality of agreements • Implementing next generation agreement mechanisms and processes • Positioning for greater DOE focus on technology deployment outcomes Innovation and Deployment are Key to Mission Accomplishment 9

10. Building Bridges that Last…

11. Growing an idea to fruition… Federal Laboratories,Universities (Gov. Funding) Joint Efforts / Collaboration(Gov. and Private) Private Industry (Private Funding) Stock Owners Gov. R&D Investments Early Investors Venture Capitalists Typical Funding Pattern Valley of Death Funding MarketAcceptance Maturation Funding Research – Discovery – Design – Development – Deployment

12. What does the future look like for Technology Deployment at DOE? Department of Energy Launches "America's Next Top Energy Innovator” March 29, 2011 “It’s not about writing research papers anymore, you’ve got to deliver the goods.” – Secretary Chu Dr. Karina Edmonds appointed as Technology Transfer Coordinator, reports directly to Secretary Chu. PEMP 2012: “Technology transfer goals, objectives, and measures shall be included as appropriate in the Facilities’ performance plans.” Secretarial Policy Statement on Technology Transfer at DOE Facilities (March 28, 2011) The Future: Increased Focus on Deploying Technology

13. Implementing New Mechanisms A.C.T. Agreement to Commercialize Technology • Allows BEA, LLC to utilize lab to engage in work as a private entity • Fully Negotiable Agreements (with exceptions / limitations below) • Indemnification  • Venue and Jurisdiction  • Disposition of Intellectual Property  • Streamlining of Processes – DOE only sees workscope – 10 days to approve • Negotiable Payments • Fixed Price Contracting Allowed / Performance Guarantees • Exceptions / limitations: • U.S. Competitiveness Clause Required • Must be mission aligned (DOE approves SOW only) • BEA assumes liability for work • Use of lab is on full cost recovery basis (BEA will also include fee to compensate for additional risk)

14. TBED Collaborations • Idaho TechConnect • Kickstand Idaho • Science on Tap & Science Café • Idaho Economic Development Association • Idaho Rural Partnership • Idaho TechLaunch • Idaho Ideas to Market • Idaho Internship and Entrepreneurial Program • Idaho Technology Council • E-Center (BYU-I/ISU) • Regional relationships (i.e. Bingham Research Center- USU, Energy Commercialization Center- U of U) Idaho Governor Otter (center) accepts INL check usedto establish Idaho TechConnect’s regional offices

15. INL’s Technical Assistance Program (TAP) • 2005 - 2010 • Supported 153 TAP projects, providing technical expertise • 2010: 27 projects, including: • Idaho Department of Environmental Quality • Boise Biologics • University of Idaho • Idaho Department of Water Resources • Melni Group • Meter Insulator • Good Earth Bio-Solutions, and more • TAP is designed to: • Provide assistance not commercially available in the region • Provide support, with up to 40 hours without charge • Provide technical support (not certification or recommendations) • Assist technology-based businesses in overcoming difficult barriers to advance enterprises for business retention, expansion, or creation

16. Teaming is our Key to Success Success in the INL mission through deployment of technology is accomplished by successful teaming. $$$ ROI DOE Focus National Energy Security INL’s Value Proposition

17. Innovation is Part of Your Job (and mine) • Be innovative yourself • Hire innovative people • Support behaviors that lead to innovation • Associating • Questioning • Observing • Networking • Experimenting • Create a culture in your own circle of influence where innovation is recognized and encouraged • It’s a team effort!! INL is here to support your efforts

18. Conclusion INL exists for the national interest INL is reinventing how it manages Technology Deployment INL is a great TBED resource not fully leveraged by Idaho INL is open to opportunities to strategically partner

19. Questions?