RD125 - FY2008 Operating Plan for the Innovative Technology Authority and the Center for Innovative Technology


Executive Summary:
Introduction

Fiscal Year 2007 was the second year of execution of an operating plan that did not significantly change from the prior year’s operating plan. This contrasts to previous years when plans were annually rebuilt due to funding fluctuations and mission re-definition. Achieving plan stability over a five to seven year horizon will allow CIT to maximize program value and return on invested capital.

During 2007, the Connect service line proceeded through validation and development stages and was positioned for growth in the federal and state markets, the GAP Fund expanded into two funds to accommodate new investment and start-up company demand, the Research and Development service line matured four pilot programs, and the Broadband service line contributed to rural broadband penetration and addressed telework promotion.

Also, to support CIT’s growth a new cost accounting system, time management system and financial reporting system were implemented. These changes complete CIT’ s transformation from a grant allocation organization to a service based organization capable of serving state, federal and private sector clients.

Operating Environment

Annually, CIT reviews the economic climate for technology and technology company creation. As in 2007, 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 2008 should be the same as 2007, with a few adjustments. These adjustments include:

1. Refining the metrics recordation and forecasting process to more accurately predict the financial impact of CIT programs, and in situations where financial measurement is not relevant, to more accurately define baseline measurements for progress assessment.

2. Alignment of the Connect service line to support the objectives of improving service to the citizen and cost reduction opportunities in Virginia state government.

3. Establishing a baseline innovation index that will serve to provide elected officials and private sector leaders with a metrics based assessment of the development of Virginia’s high technology industry segments.

For 2008, the CIT mission of “accelerating the next generation of technology and technology companies” coupled with the objective to “achieve national recognition as the premier services provider engaged in technology company creation and company growth” will focus the organization on expanding its programs and in return make the Commonwealth the next innovation hub in the United States.

2008 Goals

CIT’s 2008 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 knowledge source for the identification of technology companies and technology development opportunities.

Broadband service line
Goal 6 - Expand the use and application of broadband technologies in rural and underserved areas.