RD248 - The Commonwealth Technology Research Fund: Advancing Technology and Economic Development in Virginia by Investing in Higher Education Research Annual Report July 1, 2007 - June 30, 2008


Executive Summary:
In accordance with § 2.2-2233.1.E of Title 22, Chapter 22, Article 3 of the Code of Virginia, this report regarding the Commonwealth Technology Research Fund (CTRF) in FY2008 is respectfully submitted. The CTRF was created in the 2000 Session of the General Assembly to attract public and private research funding for institutions of higher education, in order to increase technological and economic development in Virginia. Awards from the Fund may be made to Virginia public institutions of higher education or their associated intellectual property foundations.

FY2008 awards reflected appropriations made in the 2006 and 2007 General Assembly Sessions. In 2006, legislators appropriated $2 million for CTRF in the FY2007 budget. The following year, the General Assembly appropriated $1 million for the CTRF, for a total of $3 million in available funding for FY2008. In addition, the 2008 General Assembly appropriated $1 million for FY2009 and $1 million for FY2010.

In November 2007, a solicitation for proposals was issued. Its goals were to attract public and private research funding to institutions of higher education and to increase technology-driven economic development in Virginia by focusing on research with great commercialization potential.

Twenty-four applications requesting approximately $9.1 million were submitted by six lead institutions. The Grant Allocation Committee (GAC; see Appendix A), a nine-member panel led by Secretary of Technology Aneesh P. Chopra and comprised of experts in science and technology from a range of disciplines, reviewed proposals and recommended six awards to the Innovative Technology Authority (ITA). The ITA approved the GAC’s recommendations in February 2008.

The Commonwealth of Virginia invested $1,845,178 in six projects that spanned information technology, life sciences, modeling and simulation, and nanoelectronics. The projects addressed the Fund Components of Industry Inducement, Strategic Academic Enhancement, and Technology Commercialization. Commonwealth funds were matched with $2.1 million in private, university, and other funds. Collaboration was paramount: recipient institutions partnered with industry, other Virginia colleges and universities, and nonprofit organizations. Large corporate partners include Corning, Micron Technology, Inc., and Northrop Grumman Corp.

Job Creation and Retention
• The prospective CTRF project with Virginia Tech and the Institute for Advanced Learning and Research was a factor in Corning’s decision, announced in December 2006 by Governor Kaine, to invest $12 million and to create 50 new jobs in its Danville operation.
• Eastern Virginia Medical School estimated that its project with Hampton University will result in the creation of 125 new jobs in Hampton Roads, starting at a minimum average salary of $70,000 per year.
• Product commercialization associated with the University of Virginia (U.Va.) project with local firm ContraVac for “SpermCheck® Immunochromatographic Devices” will generate 10-20 high quality jobs in Charlottesville in the first two years of commercialization.

Economic Development
• Hampton University projected that more than 2,000 patients a year will seek treatment at the new facility associated with the CTRF project. Visiting patients and family members will contribute to the local economy through hotel room nights, meals, and entertainment.

Intellectual Property
• The University of Virginia Patent Foundation will receive a 3% royalty of all SpermCheck revenues.
• A new Virginia company plans to license from George Mason University (GMU) intellectual property associated with the GMU award for “Self-Cleansing Intrusion Tolerance.”

An overview of each project follows, and the FY2008 annual report for each project is on file with the Fund Administrator. A Table of Grants is provided in Appendix B.