RD103 - Annual Report on the Operating Plan of the Innovative Technology Authority (2007)


Executive Summary:
Introduction

Fiscal Year 2006 was a milestone year for CIT. During 2006, the Connect service line was established, the Growth Acceleration Program reached maturity, the Research and Development service line secured significant federal investment, and the Broadband programs contributed to rural broadband penetration. Also, to expand public awareness of CIT’s mission, improved outreach via a new website site and marketing communications were implemented.

Operating Environment

Annually, CIT reviews the economic climate for technology and technology company creation. As in 2006, the following observations have been validated:

1. There is a significant void in angel and early-stage investment capital for seed-stage companies nationally as well as in the Commonwealth.

2. Reductions in the federal research and development workforce and increased emphasis on security programs are creating opportunities for translational research programs involving multiple universities and companies.

3. Advanced technology fields including nanotechnology and biotechnology require pursuit of specific market segments in order to establish a market leadership position.

4. Changing economic and geopolitical environments create the need to stimulate innovation for new solutions to challenges in energy production and consumption.

5. Access to affordable broadband is mandatory to support rural economic development.

6. Federal funds play a significant role in supporting the capital requirements of early-stage companies.

7. Early-stage companies and large-scale technology consumers have a difficult time identifying each other, which prevents technology assimilation and young company growth.

Direction

After carefully reviewing environmental factors that are relevant to the mission of CIT, management determined that the programmatic direction for 2007 should be the same as 2006, with a few adjustments. These adjustments include:

1. Implementing a forecasting process to project the future impact of CIT programs for the Commonwealth and the nation.

2. Accelerating the development of the Connect service line on a national scale.

3. Restructuring performance-related metrics to more closely reflect operational programs.

Additionally, while the CIT mission of “accelerating the next generation of technology and technology companies” remains the same, a new objective for CIT has been introduced. The objective “CIT will achieve national recognition as the premier services provider engaged in technology company creation and company growth” is designed to focus the organization on expanding its programs and in return make the Commonwealth the next innovation hub in the United States.

2007 Goals

CIT’s 2007 goals and corresponding service lines are as follows:

Research and Development service line

Goal 1: Create new industry clusters in advanced technologies.
Goal 2: Solve national technological challenges through world class R&D solutions.

Entrepreneur service line

Goal 3: Secure global leadership in the development of entrepreneurial technology ventures.

Connect service line

Goal 4: Secure global leadership in the identification and assimilation of innovative technologies.

Goal 5: Achieve national recognition as the top identifier of innovative technology companies.

Broadband service line

Goal 6: Expand the use and application of broadband technologies in rural and underserved areas.

2007 Performance Targets

Starting in 2007, CIT will project the economic impact of its programs for five years forward. Effective in 2008, the projections used during the previous year will be compared to metrics results achieved to determine program effectiveness. Additionally, CIT’s current metrics baseline of leveraged cash and economic value will be fine tuned to track to CIT’s current operating programs. CIT’s contributions to the Commonwealth and nation are detailed at the end of each goal in the following sections.