Agency: USTAR

Line Item: USTAR

Background

The USTAR line item comprises expenditures for USTAR Administration, Technology Outreach, and Research Teams.

Funding Detail

Program: Administration

Function

The USTAR Executive Director is responsible for day-to-day administration and provides staff support to the Governing Authority, which manages all of the components of the initiative. The Administration is broken up into centralized marketing, human resources, accounting, payroll, purchasing, and network support. The collaboration resources the Administration provides includes a centralized database of stakeholder and client information, the software environment Redspan to bring together stakeholders in the innovation ecosystem, and the digital media tool "Digital Uproar," which encourages interaction among digital media artists, technicians, executives, and other stakeholders.

Statutory Authority

UCA 63M-2-302 specifies the duties of the Governing Authority. The authority:

• Ensures that funds appropriated and received for research and development at the research universities and for the technology outreach program are used appropriately, effectively, and efficiently in accordance with the intent of the Legislature;
• Works with the administrations of the University of Utah and Utah State University to expand key research;
• Encourages and enhances technology transfer and commercialization of research and technologies developed at the research universities to create high-quality jobs and new industries in the private sector in Utah;
• Reviews state and local economic development plans and appropriations to ensure that the project and appropriations do not duplicate existing or planned programs;
• Establishes economic development objectives for the project;
• Makes rules for allocating monies appropriated for research teams and for the commercialization of new technology between Utah State University and the University of Utah;
• Verifies that the USTAR project is being enhanced by research grants and that it is meeting economic development objectives;
• Monitors all research plans that are part of the project at the research universities to determine that appropriations are being spent in accordance with legislative intent and to maximize the benefit and return to the State;
• Develops methods and incentives to encourage investment in and contributions to the USTAR project from the private sector; and
• Annually reports and makes recommendations to the Governor and the Economic Development and Revenue Subcommittee.

Performance

Measures the Administration Division considers indicative of its success are the number of unique visitors to its website, accounts in SalesForce.com, and media stories mentioning USTAR. The number of unique visitors increased 40% over the previous fiscal year to an average of 4,612 per month. Total accounts in SalesForce.com increased to 2,622 in FY 2010, an increase of 23% over FY 2009. Media stories mentioning USTAR about doubled over FY 2009, reaching 72 per month.

Funding Detail

Personal services is currently USTAR Administration's largest category of expenditure. This category includes the wages and benefits of the USTAR executive director and his staff, with the average salary and benefits being $91,972. The three largest current expense items in FY 2010 were: Advertising & Legal Publications ($104,500), and Contractual Services ($67,500), and Rental of Land & Buildings ($31,400).

Program: Technology Outreach

Function

The USTAR Technology Outreach and Innovation Program (TOIP) connects USTAR research and technologies to regional colleges, universities, businesses, and entrepreneurs and encourages local commercialization of these technologies.

As of October 2010, the Governing Authority has established a virtual innovation network, four outreach centers (Southern Utah University and Dixie State University co-location, Utah Valley State College, Weber State University, and the Utah State University Extension in the Uintah Basin), established a presence in the Small Business Innovation Research (SBIR) and Science Technology Transfer and Research (STTR) Assistance Center at Salt Lake Community College (SBIR-STTR Resource Center), supports the Cluster Acceleration Project (UCAP) and Bioinnovations Gateway (BiG), established "Concept to Company" competitions, hired Technology Outreach Program directors, and hired analysts and interns to work with local companies, entrepreneurs, the universities, and regional stakeholders to increase commercialization activities.

Statutory Authority

The scope of the USTAR Technology Outreach Program is outlined in UCA 63M-2-202. The program:

• Brokers ideas, new technologies, and services to entrepreneurs and businesses throughout a defined service area;
• Engages local entrepreneurs and professors at applied technology centers, colleges, and universities by connecting them to Utah's research universities;
• Screens business ideas and new technologies to ensure that the ones with the highest growth potential receive the most targeted services and attention;
• Connects market ideas and technologies in new or existing businesses or industries or in regional colleges and universities with the expertise of Utah's research universities;
• Assists businesses, applied technology centers, colleges, and universities in developing commercial applications for their research; and
• Disseminates discoveries and technologies originating at Utah's research universities to local entrepreneurs, businesses, applied technology centers, colleges, and universities.

Performance

In FY 2009, TOIP initiated 175 projects, of which 89 were completed and 86 are in progress. These regional initiatives included:

• helping entrepreneurs raise $9.68 million in private equity financing;
• assisting in the cluster acceleration partnership in aerospace and digital media;
• launched start-up incubators in information technology, renewable energy, and biotechnology;
• supported concept to company contests in Uintah Basin, Dixie, Northern Utah, and Salt Lake County;
• worked with about 70 companies at its SBIR center; and
• assisted companies with 11 federal grant submissions, resulting in one "win" generating $1 million in grant funding.

In FY 2010, TOIP began 323 projects, of which 124 were completed and 199 are underway. These projects included:

• assisting five entrepreneurs launch three new companies;
• helped entrepreneurs raise $8.9 million in private equity investment, a decline of 8.5% from the prior year;
• opened BioInnovations Gateway (BiG) and Southern Utah Information Technology and Renewable Energy incubators (IRTE). BiG currently has four clients in residence and IRTE has two;
• assisted in the Utah Cluster Acceleration Partnership (UCAP) program, with progress on Aerospace, Digital Media, and Energy UCAP projects.

Other performance indicators for FY 2010 include:

• through the Technology Commercialization Program (TCG), awarded 68 individuals or groups start-up funds;
• TCG awardees filed 21 patent or disclosure applications, created 15 prototypes, signed five sales distribution agreements, and assisted TCG awardees in closing $2,060,000 in outside capital (see table below on top 10 TCG awardees); and
• worked with 75 clients at its SBIR center and assisted 19 clients with grant submissions, resulting in three SBIR "wins" totalling about $280,000 in grant funding.

Funding Detail

Funding is allocated to the staff and resources for the Technology centers, with the average salary and benefits being $70,945. The three largest budgeted annual personnel expenditure areas in FY 2010 were: Program Directors ($578,128), Program Specialists ($563,676), and Interns ($345,399). In FY 2010, the top five current expense categories were: Non-Medical Contractual Services ($380,000), Rental of Land & Buildings ($36,500), Client Support ($14,300), Conventions, Seminars and Workshops ($14,200), and Rental of Motor Pool Vehicles ($12,500).

Program: Research Teams

Function

The USTAR Governing Authority is to allocate monies to Utah State University and the University of Utah to fund science and technology research by USTAR scientists. The researchers and the research focus areas are to:

• Build on existing university strengths;
• Create commercialization opportunities;
• Target strategic markets;
• Leverage Utah industry strengths.

Energy Innovation Focus Area

• Biofuels
  • Jeff Muhs
• Fossil Energy: Carbon Sequstration
  • Brian McPherson and John Mclennan
• Intuitive Buildings
• Alternative Energy

Nanotechnology Innovation Focus Area

• Wireless Nanosystems
  • Carlos Mastrangelo, Massood Tabib-Azar, Darrin Young, and Gianluca Lazzi
• Nanotechnology Biosensors
  • Marc Porter, Ling Zang, and Jaimee Zang
• Micro & Nano Systems Integration
  • Rajesh Menon and Hanseup Kim

Medical Imaging and Brain Medicine Innovation Focus Area

• Circuits of the Brain
  • Julie Korenberg and Li Dai
• Diagnostic Imaging
  • Perry Renshaw, Deborah Yurgelun-Todd, Melissa Lopez-Larson, Andrew Prescot
• Nanoscale & Biomedical Photonic Imaging
  • Saveez Saffarian

BioDevice and BioPharma Innovation Focus Area

• Biomedical Device Innovation
  • John White, Hamidreza Ghandehari, and Alan Dorval
• Advanced Nutrition
  • David York, Michael Lefevre, David Ward
• Cell Therapy & Regenerative Medicine
• Synthetic Biomanufacturing
• Veterinary Disease/Diagnostics
• Personalized Medicine

Imaging Technology and Digital Media Innovation Focus Area

• Imaging Technology
  • Guido Gerig, Tolga Tasdizen, and P. Thomas Fletcher
• Advanced Sensing & Imaging
  • Alan Marchant, Allen Howard, and bob Barson
• Space Weather
  • Tobiska and Herbert Carlson
• Digital Media
  • Craig Caldwell

Statutory Authority

UCA 63M-2-203 directs the USTAR Governing Authority to allocate monies to Utah State University and the University of Utah to fund science and technology research by USTAR scientists.

Performance

External research grants amounted to $24,072,189 in FY 2010, and increase of 36% over the previous fiscal year. Patents filed increased by 21 from FY 2010 over FY 2009. The number of researchers hired (cumulative) at the end of FY 2010 was 34, an increase of 9 over the previous fiscal year and the number of FTEs associated with the main researchers amounted to 185 at the end of FY 2010, an increase of 45% over the FY 2009 count.

Funding Detail

State funding for the research teams is an ongoing General Fund appropriation of $12.7 million. S.B. 240 of the 2009 General Session allocated $33 million from the governor's flexible allocation of Federal ARRA funding for research expenses. This was later reduced by $5 million through a one-time General Fund reduction. Most of the ARRA funding went to the research teams. The ARRA funding in FY 2011 is a reappropriation of some of the unspent FY 2010 ARRA appropriation. Although specific details have not been reported, most of the pass-thru funding to the universities covers the personnel expenditures of the researchers and their staff. The funding also covers ongoing maintenance of the labs, buildings, and equipment. USTAR plans to use the closing nonlapsing in FY 2011 to cover ongoing expenditures in FY 2012.