RD159 - Center for Innovative Technology Operating Plan Fiscal Year 2009


Executive Summary:
Fiscal Year 2008 was the third 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 2008 CIT delivered on its stated goals. The Connect service line supported new private sector and Virginia state clients, the GAP Fund portfolio reached 25 investments since inception, the Research and Development service line transitioned key projects to the federal government for continued development, and the Broadband service line contributed to rural broadband penetration and addressed telework promotion.

Also, to support CIT’s federal market activities, CIT was awarded a General Services Administration government wide acquisition contract to sell services to the federal government. These changes continue to validate 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 many early-stage technology 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 CIT’s mission, management determined that the programmatic direction for 2009 should be the same as 2008.

For 2009, 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.

2009 Goals
CIT’s 2009 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.

Broadband service line
Goal 5 Expand the use and application of broadband technologies in rural and underserved areas.