1. Research & Innovation at NC State Finance & Business Leadership Team Retreat 11 November 2010 Terri L. Lomax Vice Chancellor for Research and Innovation

2. NC State – a Research University We are classified by the Carnegie Foundation as a: Research University (very high research activity) Out of 4,391 U.S. institutions only 94 receive this classification (list included in your packet) only 2.2% of U.S. institutions of higher learning are Research Universities with very high research activity Source: http://classifications.carnegiefoundation.org/summary/basic.php

3. Research University = Social Responsibility Our Civic Responsibility: To develop knowledge for the improvement of society, and to think about and act upon the public dimensions of our work. Opportunities for students, faculty, staff, and administrators to use their many talents for the greater good must pervade every aspect of our work.

4. Outline NC State Research & Innovation that solves real problems in the real world! What it takes to make & sustain a great research University today! What we’re doing to increase our research and innovation impact! Next steps / Goals

5. Solving real problems in the real world! Let’s start with some of NC State’s research & innovation successes that benefit society Real challenges. Real solutions. A real difference.

6. Challenge: Disease Prevention The American Heart Association estimates that 80 million adults in the U.S. have heart disease, making it the #1 killer of Americans. 50% of people who have had heart attacks reported “normal” cholesterol numbers. 1 in 4 Americans have pre-diabetes and don’t know it. Real challenges. Real solutions. A real difference.

7. NC State Solution: LipoProfile® NC State’s Dr. James Otvos- Professor of Biochem - discovered a method of using nuclear magnetic resonance (NMR) spectroscopy to quantify lipoproteins in blood samples. The startup company, LipoScience, was launched and developed: LipoProfile® - a blood test clinically proven more effective at predicting heart disease risk than cholesterol tests. LipoScience also offers an insulin resistance score (LP-IR) that may help assess risk for developing type 2 diabetes. Doctors and clinicians have administered over 5 million LipoProfile® tests to date. Solution from NC State’s Department of Biochemistry: Dr. James Otvos, now Liposcience Chief Scientific Officer/Founder/EVP Real challenges. Real solutions. A real difference.

8. Challenge: Climate Change Scientists project disruption in water supplies, agriculture, ecosystems and coastal communities. Economists and scientists agree that the level of risk justifies an aggressive response. In 2009 world leaders agreed on a dangerous climate threshold: an increase of 3.6 degrees Fahrenheit from the average global temperature recorded just before the Industrial Revolution. (This translates into an increase of 1.3 degrees Fahrenheit above the Earth's current average temperature, about 59 degrees). Real challenges. Real solutions. A real difference.

9. NC State Solution: Institute for Climate & Satellites 2009: NC State and NOAA establish collaborative climate research institute: Cooperative Institute for Climate and Satellites (CICS) “CICS clearly establishes our state as a major contributor to the understanding of climate change and its impacts on our planet and the lives of our citizens.” Steve Leath, UNC System VP for Research Otis Brown, Director, NC State’s North Carolina Institute for Climate Sciences. Real challenges. Real solutions. A real difference.

10. NC State Solution: Climate Science Center Fall of 2010: U.S. Dept. of Interior selects NC State to lead a federal hub for climate change research in the Southeast: Climate Science Center NC State’s Climate Science Center will not only impact the U.S. understanding of climate change, it will also create jobs and provide opportunities for students, including a new climate-change curriculum. Principal Investigator Damian Shea, Department Head of Biology. For a full list of co-investigators see: http://www4.ncsu.edu/~nlmccoy/press_release.html Real challenges. Real solutions. A real difference.

12. as strong as steel

14. automobiles

15. military applications

16. medical implants - knee and hip replacementsReal challenges. Real solutions. A real difference.

17. NC State Solution: Composite Metal Foam Real challenges. Real solutions. A real difference. Designing the Future: http://www.nsf.gov/news/special_reports/science_nation/metalfoam.jsp Solution from AfsanehRabiei, Ph.D. Professor of Mechanical and Aerospace Engineering at NC State

18. What it Takes to SUSTAIN & GROW a GREAT RESEARCH UNIVERSITY TODAY What it takes to sustain and grow a Research University.

20. Outstanding Students

21. Strong Partnerships

22. Resources ($/equipment/facilities)

23. Coordinated Innovation SupportWhat it takes to sustain and grow a Research University.

24. What it Takes – Innovative Faculty 1,945 fulltime faculty* 1,388 tenured/tenure track faculty* 19 National Academy Members 124 Invention Disclosures (FY2010) 44 U.S. Patents Issued naming NC State faculty as Inventor (FY2010) 4 Start-Up Companies Launched Based on NC State technologies (FY2010) $5.1M royalties received from NC State inventions (FY2010) What it takes to sustain and grow a Research University. *IPEDS 2009 data

25. Still Innovating – in a Difficult Economy Total research award funding brought into NC State for the past 10 years. 30% funding awards increase from FY09 – FY10 What it takes to sustain and grow a Research University.

26. What it Takes – Outstanding Students NC State students win National Innovation Prize for HydrEYECorneOasis Contact Lens! Alex McGaughy, RoyaNezarati, Eli Pollack, Trinh Doan, and Elizabeth Kirk This talented team was selected first place among more than 60 entries received from 30 universities across the nation. This is a national student design competition for devices that aid people with disabilities in the workplace. Sponsored by the National Collegiate Inventors and Innovators Alliance (NCIIA). http://nciia.org/bmestart for full story.

27. What it Takes – Partnerships NC State partners with industry to help us move academic discovery to market, where it can make a real difference: >110 better world products from lab to market 72 start-up companies attracting >$750M investment and 3,000 jobs to the region What it takes to sustain and grow a Research University.

28. What it Takes – Partnerships Centers & Institutes draw over 150 Industry partners to campus: DuPont ExxonMobil Cisco CREE General Electric Samsung Toyota Progress Energy Procter & Gamble Texas Instruments RWTH Aachen University, Germany Swiss Federal Institute of Technology What it takes to sustain and grow a Research University.

29. What it Takes - Partnerships The Research Triangle Solar Fuels Institute is dedicated to solving the technical, environmental, economic, security and societal issues related to fossil fuels. RTSF is a groundbreaking partnership between NC State, Duke, UNC Chapel Hill, and RTI aimed at making the Triangle area the leading scientific resource in the field of solar fuels. What it takes to sustain a Research University.

30. Built on the concept of innovation partnerships! What it takes to sustain and grow a Research University.

31. Academic honor and corporate growth can exist together. In fact, they must. What it takes to sustain and grow a Research University.

33. State Appropriations

34. F&A

35. Royalties Generated from NC State Inventions

36. Testing & Service AgreementsHow can we increase these enabling resources for our innovation community? What it takes to sustain and grow a Research University.

37. Sponsored Programs Extramural Support ($) Source: RADAR, NC State University What it takes to sustain and grow a Research University.

38. Sponsored Programs Extramural Support Top Sources YTD September 30 Top Industry Sources Top Federal Sources 75% of YTD 7% of YTD Source: RADAR, NC State University What it takes to sustain and grow a Research University.

41. How F&A is negotiated uncapped w/cap final General Administration 8.2 7.3 Departmental Administration 16.92 15.1 Sponsored Projects Administration 3.64 3.3 Student Services Administration 0.3 0.3 Subtotal: 29.06 26 26 Buildings 3.25 3.25 2.6 Equipment 3.33 3.33 2.8 Bldg Interest 2.25 2.25 1.9 Operations & Maintenance 14.54 14.54 13.1 Library 1.44 1.44 1.3 Subtotal: 24.81 24.81 21.2 Utility Cost Adjustment 1.3 1.3 1.3 On Campus Organized Research Rate 55.17 52.11 49 What it takes to sustain and grow a Research University.

43. F&A is ~15% of sponsored programs

44. F&A is ~22% of federally sponsored researchWhat it takes to sustain and grow a Research University.

45. F&A Distribution (2010-2011) included in your packet

46. 2009-10 College F&A Allocations

48. Colleges with higher needs for expensive equipment, start-ups, and retentions tend to retain more at the college level.

49. Most of the College F&A comes back to benefit the faculty PIs.What it takes to sustain and grow a Research University.

51. Integrated Support Service Center (NEW)

52. Springboard (NEW)Provides support for faculty producing large-scale proposals for graduate fellowships and multidisciplinary research. There is no charge for PDU services. The PDU supports multiple-investigator proposals over $1 million. Created through realignment of existing resources, the ISSC provides direct research administrative services to University units that have historically lacked support. (e.g. 36 centers, institutes and units are not associated with a college research office, yet they generate over 18% of all funding dollars) Springboard gives us a way to more readily connect people, ideas and resources. Springboard is a ‘one stop shop’ for NC State faculty, students AND external partners (existing and potential) interested in engaging in the vast innovation opportunities at NC State. What it takes to sustain and grow a Research University.

53. What We’re Doing to Increase Our Impact and to ensure that NC State’s innovation community has the resources needed How we can increase our impact.

55. 165% increase in NCSU proposals >$2M in 2009-107 12 148 50 4 23 How we can increase our impact.

56. Solution: Proposal Development Unit (PDU) How we can increase our impact.

58. Training Requirements

59. Increased Inspections

60. Additional Review Boards

61. Sub-award audits

62. Patriot Act and Enhanced Export Control Oversights

63. Deemed Exports in particular

64. FFATTA – and reporting requirements

65. COGR Compiled over 100 requirements from 25 schools in 2003How we can increase our impact.

66. Issue: SPARCS – More Requirements, Less Staff Volume vs. Staffing What it takes to sustain a Research University.

67. Solution: Integrated Support Service Center What it takes to sustain and grow a Research University.

69. eGames

70. EntrprConcentr& Minor (COM)

71. Entrepreneurs Program (COE)

72. Entrpr& New Product Dev (COT)

73. TEC Program and Grad. Certificate (COM)

76. Global Health Case Competition (OIA)

77. Venture Pitch Competition (COM)

79. Technology Brokering and Intl Partnership

80. Intellectual Property Committee

81. Intellectual Property Licensing

82. TechRevolution Series

83. NC State Innovation Showcase

84. SBTDC

85. IES

87. Also serves as catalyst for full integration, collaboration, and cross-linking of innovation components.

89. Single, comprehensive point-of-entry for external and internal engagement and collaboration to unify the innovation components.

90. Units can work toward full innovation capacity with structure, training, and services solidly in place.

92. Collaboration encouraged, but the responsibility of each innovation unit.

94. Research Sponsorship Opportunities?

95. Access to IP Portfolio?

96. Executive Education and Training?

97. Innovation Events and Networking?

98. Patentability of IP?

99. Business Plan Development Support?

100. Prototyping & scale up?

101. Startup company support?

102. Venture capital opportunities?

103. Seed funding?

104. Recruiting Grad Students?

105. Student Opportunities?

106. Innovation partners on Centennial Campus?

107. Research Center information?College of Education College of Design Natural Resources Venture Capitalists 4 Angel Investors 4 Council for Entrepreneurial Development (CED) 4 NC Biotechnology Center (NCBC) 4 Research Triangle Institute (RTI) 4 Partner Universities 4 Potential Collaborators 4 NC State’s Graduate School TEC Program: Technology Entrepreneurship & Commercialization Office of Postdoc Affairs Office of Technology Commercialization Technology Incubator College of Textiles College of Engineering Small Business and Technology Development Center Centennial Campus Partnership Office Engineering Entrepreneurs Program Proposal Development Support and Training

108. Solution: A framework for our innovation components . . . What if there was one place that provided full access & integration?

112. Springboard Concierge – “one-stop shopping” and synergies for innovation

113. Partnership Council – internal network

114. Innovation Board - external network

115. Chancellor’s Innovation Fund – pre-seed and proof-of-concept funding

116. Faculty, Staff, Post-doc, and Graduate Student Training

117. Training for External Partners

118. New Analytic Tools – REACH NC (subject matter experts) and jStart(technology partners)

119. Streamlined License (FY2010 startup, Xanofi, Inc. negotiated their license in less than 30 days)

120. New Patent Policy

121. New campus culture – rewarding innovation (RPT, recognition through awards)

122. New Awards – Inventor of the Year (OTY), Entrepreneur OTY, Innovation Partner OTY

123. Innovation Enterprise Services – New emphasis for Industrial Extension Service

124. Proof-of-Concept Lab/Innovation Design Center

126. How Can we Capitalize on our Opportunity?

127. Activities and Programs Underway

129. Increase research awards to $401,173,165 by FY 2015.

130. Find new resources and creative solutions to equip the research and innovation community for successGoals.

131. Our 5 Year Plan to Grow Research GOAL: Increase Research Awards 50% by 2015 401,173,165 %50 or $133,724,388 increase over next five years Goals.

133. Prioritized list, shared facilities

134. Advocacy, fund-raising

135. Facilitate the recommendations of the Research and Strategic Planning Taskforce.

136. Address limited time and support for faculty to engage in research and innovation activities

137. Identifying bureaucratic roadblocks, finding solutions

139. No targeted funds available for start-ups, retention, equipment or instrumentation needs

140. Need prioritized list of research facilities, repairs and renovations

141. Need to grow our tenure track faculty

143. Tech Transfer and Innovation Activity What it takes to sustain a Research University.