2013 Report to the

Community

Table of Contents

Vision

To be recognized as Florida’s prem-

ier R&D destination for innovative

technology businesses to thrive.

Mission

To create and sustain the best R&D

park environment, maximizing the

academic talent and regional re-

sources in South Florida, and to ac-

celerate economic development and

2 Letter to Our South Florida Stakeholders

3 Research Park Dashboard

4 Strategic Vision

6 Association of University Research Parks

8 Awards & Recognitions

9 Research Park Company News

13 The Technology Business Incubator

16 Research Park Partnerships

19 Economic Impact Study

21 The Research Park Team

1

Letter to Our South Florida Stakeholders

Dear South Florida Stakeholders,

It only takes a moment’s review to see how successful 2013 was for the Research Park at Florida Atlantic University. Employment in the Research Park’s companies has increased, the average sala-ry rebounded from last year’s level and our overall economic im-pact has increased 64% to approximately $450M.

In 2013 we asked our startup companies in the Technology Business Incubator (TBI) to quantify their contribution for the first time, to get a better idea of our overall results. Between them and the Re-search Park’s mature companies 43 new patent applications were filed with the US Patent & Trade-mark Office. The level of innovation here is impressive, made more so by the involvement of the 190 FAU graduates and interns who work day in and day out at these cutting-edge companies.

Many of the companies in the Research Park and graduates of the TBI were recognized and honored for their work in technology in 2013. LinguaSys was profiled by the South Florida Business Journal as it graduated the TBI and grew into a second stage company in Boca Raton; the Journal also again hon-ored Modernizing Medicine as one of the fastest growing companies in South Florida. Its CFO Karen O’Byrne was honored as a top CFO and Influential Business Woman in our region, and its Chief Medical Officer Dr. Michael Sherling was recognized in the 2013 Class of 40 Under 40 achievers.

This report highlights the successes that are the culmination of our 2011-2013 strategic plan, and the Board of Directors has now embraced a new plan to take us to the next stage of our growth. We are planning to extend our presence within South Florida, to help more startup companies innovate in con-junction with our institutions of higher education and research. In addition we plan to embark on a research project with Florida Atlantic University and Florida Power & Light to test a new solar array.

2014 will be an exciting year for the Research Park and for South Florida. The Research Park will host two important events in South Florida, bringing substantial outside interest to our region to learn best practices. In March we will host the Florida Business Incubation Association annual meeting, and in December we will host the Association of University Research Parks international conference. The latter will bring approximately 250 university, research and business leaders to Boca Raton to experi-ence our great region. I hope you will join me in celebrating our successes, working for our future, and welcoming our guests.

Yours,

Bruce Rosetto, Esq Andrew Duffell

Chairman President and CEO

2

The Research Park Dashboard

Research Park Companies Employ: 1164

Technology Business Incubator Companies Employ: 143

Total Research Park Employment: 1307

Average Salary: $78,813

15.6% increase from 2012

67.4% higher than the average Palm Beach County salary $47,086

FAU Graduates and Interns Employed: 190

Patents Filed: 43

Investment Capital Raised: $30.9 million

Research Park and TBI Company Annual Revenue: $2.5 billion

3

Research Park Companies by Industry

Financial Services15%

Computer and Technology

Services25%

Manufacturing and Sales

6%

Marketing Services

13%

Miscellaneous Professional

Services8%

Healthcare and Healthcare IT

23%

Biotechnology, Research &

Development4%

Engineering Services

6%The Research Park occupies approximately 100 acres on its

Boca Raton and Deerfield Beach campuses

Research Park and TBI

companies expect to create

more than 325 new direct

jobs in 2014

Total Economic Impact:

$449.1 Million 64% increase from 2012

Strategic Vision

4

In 1985, the Palm Beach and Broward county commissions took the visionary step to

create the Florida Atlantic Research and Development Authority (FARDA), to create

and sustain research parks in the two counties. The Research Park at Florida Atlantic

University, with campuses in Deerfield Beach and Boca Raton, exists to provide a sup-

portive environment in which companies engaged in the research and development of

new and innovative products and services can thrive.

The Research Park has repositioned itself in the wake of the economic downturn of

2008-2010 and the revenue trends for our companies reflect this renewed focus on

growing our brand. We have recruited successful and high profile companies involved

in the development of industry-changing technologies and the reputation of the Re-

search Park has been enhanced by renewing and deepening the links between our

companies and the faculty at Florida Atlantic University. With the increased focus of

the University on research commercialization and community engagement, the Re-

search Park holds a unique position as a gateway to the private sector.

As we look to the year ahead, a

strong focus will be placed on find-

ing appropriate users to develop our

existing portfolio of land in both lo-

cations, to build upon our success-

es integrating our resources with

those of Florida Atlantic University,

to increase the scope and enhance

the results of our Technology Busi-

ness Incubator, and to continue de-

veloping the sense of place and

community at the Research Park for

all of our tenants and partners.

Acres: 100

Square feet: 349,503 sf

Additional entitlements: 535,000 sf

Research Park tenants: 22

Technology Business Incubator tenants:

35

RESEARCH PARK STATISTICS

AS OF 12/31/13

Strategic Vision:

Jupiter Expansion

The Research Park at Florida Atlantic University is scouting sites in Jupiter in hopes

of building a biotech incubator for companies that emerge from Scripps Florida and

Max Planck Florida, Florida’s two most prominent biotech research institutes. A com-

pleted building of about 10,000 square feet of biotech incubator space is perhaps

three years away. The idea is to build on the growth and success already achieved

in the Boca Raton campus ’ Technology Business Incubator by providing start-ups

with affordable quarters, shared equipment and financial advice. While the Research

Park controls roughly 100 acres in

Boca Raton and Deerfield Beach, a

foray into Jupiter would be the Re-

search Park’s first presence in north-

ern Palm Beach County. The pres-

ence of Scripps Florida and Max

Planck Florida in Jupiter presents a

logical imperative for the Research

Park to expand its portfolio of incu-

bators. Given President and CEO of the Research Park, Andrew Duffell ’s involve-

ment with bringing Max Planck to South Florida, and the existing affiliation between

Florida Atlantic University’s Jupiter Campus, an expansion of the Research Park’s

facilities is a natural next step. The genesis of this type of facility offers tremendous

growth potential both for the Research Park as well as the local community and cre-

ates a strong incentive for new entrepreneurial bio-research firms to remain in South

Florida.

5

Max Planck in Jupiter, FL

The Association of University

Research Parks

In December 2013, the Research Park host-

ed the Association of University Research Parks

(AURP) Southeast Regional Meeting. This year's

Southeast Regional Meeting focused on a re-

search park's physical development aspects, up-

dates from the aviation and healthcare/IT industries, as well as interactive discussion

on current Research Park trends. Some of this year ’s speakers included AURP

President Kevin T. Byrne, Research Park CEO Andrew Duffell, and Modernizing

Medicine CEO and founder Daniel Cane.

The Research Park was also selected to host the 2014 AURP International

Conference. Each year, the AURP

International Conference focuses on

a theme, and this year’s theme will

be Regionalism for Innovation and

Growth. The Research Park at Flori-

da Atlantic University, as a leader in

the dynamic South Florida economy

is well positioned to highlight and

demonstrate the importance of place

as a driver for economic growth and

innovation. At this annual meeting,

research park executives gather to

share best practices and build an exceptional network that can be called on through-

out the year. Attendees will have the opportunity to witness Florida’s initiatives to

transform its economy, using scientific and technology research as a catalyst.

6

President and CEO Andrew Duffell with AURP president, Kevin

Byrne at the Southeast Regional Conference held in Boca

Awards & Recognitions

The Research Park at Florida Atlantic University received

a Silver Excellence in Economic Development Award for

its project in the category of Partnerships with Educational

Institutions for communities with populations greater than

500,000 from the International Economic Development

Council (IEDC). The honor was presented at an awards

ceremony during the IEDC Annual Conference. “The Ex-

cellence in Economic Development Awards recognize the

Research Park at Florida Atlantic University as being one

of the leading organizations in the industry for innovation,

creativity and successful strategies,” said Paul Krutko,

IEDC chair. “The Research Park uses creative solutions

and inventive ideas, and offers other regions a wonderful

example to learn and benefit from. The award represents an acknowledgment and

appreciation for the Research Park at Florida Atlantic University’s dedication to con-

tinuous growth within itself, as well as improving the industry overall.”

The Florida Economic Devel-

opment Council (FEDC)

named Andrew Duffell, Presi-

dent & CEO of the Research

Park at Florida Atlantic Uni-

versity, the 2013 Young Professional of the Year at the its annual conference in

Orlando, Florida.

8

Research Park Company News

Life of Purpose, a treatment facility that provides a

research-based solution for young adults who have

had their academic careers disrupted by substance

abuse, opened a 6,000 square foot facility in the

Research Park in the Boca Raton campus in May

2013. This new tenant provides many exciting op-

portunities for new research and collaborations with

Florida Atlantic University faculty and students in a range of fields from social work and

counseling to psychology, nursing, and partnership with the College of Medicine. Even

before joining the Research Park, Life of Purpose was already closely linked with Flori-

da Atlantic University. The facility’s clinical director, Andrew Burki, is an FAU alumnus

and the facility’s medical di-

rector, Dr. Charles Norris Jr.

is a current professor at

FAU’s Charles E. Schmidt

College of Medicine. The

establishment of a company

that is combining innovative and cross-disciplinary research, dynamic business growth,

and products that result in social welfare improvement represents a valuable new asset

in the Research Park’s growing portfolio of successful tenants.

9

Life of Purpose’s Facility in the Research Park

Research Park Company News

Electronic Payment Systems Global (EPS)

joined the Research Park at Florida Atlantic Uni-

versity on the Boca Raton Campus. EPS moved

into an approximately 12,000 square foot space

in March 2013. EPS is using its proprietary tech-

nology to revolutionize the way health insurance

claims are processed and creating new areas of health-care law. EPS is projecting

revenue growth of more than 500% in the coming year and expects to hire more than

100 additional employees. Founder of EPS, Bobbie Celler, Esq. cites the close proxim-

ity to FAU as one of the main reasons for locating EPS at the Research Park. The nat-

ural alignment between FAU’s dynamic Business Management, Accounting,

Healthcare, and Technology programs and EPS Global’s business interests represents

tremendous new opportunities for future collaboration.

EPS will offer paid co-op and internship opportuni-

ties to FAU undergraduate and graduate students,

leading to practical real-world skill accumulation

and providing a constant talent pool for new hires.

Plans for future collaborations include partnerships

with FAU’s Master of Health Administration pro-

gram to educate students on healthcare claims

processing procedures and with FAU faculty and

students to create new healthcare information sys-

tems and research into healthcare efficiency in hospitals. EPS Global ’s business and

its relationship with the Research Park and Florida Atlantic University represents a

model for aligning public and private interests in a practical way to create broad -based

economic benefit while also tackling relevant social challenges.

10

Research Park Company News

People’s Trust Insurance

People’s Trust Insurance Company

has located its new headquarters

facility in the Research Park in

Deerfield Beach. The company,

which provides homeowner's insur-

ance to more than 75,000 policy-

holders, is currently located in Boca

Raton and employs 400 statewide.

About 200 of those workers will

move to a 40,000-square-foot

space at the Research Park at Flor-

ida Atlantic University in Deerfield

Beach and the company plans to

hire about 100 additional full-time

employees to staff the new location.

11

University MRI

University MRI’s longtime affiliation

with FAU continues with Dr. Leblang

serving as an instructor of anatomy at

Florida Atlantic University’s Charles E.

Schmidt College of Medicine

Artist’s Rendering of the redesigned People’s Trust Insurance

Building at the Deerfield Branch of the Research Park

In Other News:

Research Park Company News

Palm Beach Institute of

Sports Medicine

Dana van Pelt consulted with the Division of

Research and its Technology Development Committee to eval-

uate the invention of an undergraduate student to measure

range of motion in patients undergoing physical therapy.

12

Modernizing Medicine

Modernizing Medicine Received South Florida Business Journal’s

Fast 100 award. The award recognizes Florida’s fastest growing

businesses and Modernizing Medicine ranked 3rd in this prestig-

ious group. CEO of Modernizing Medicine Dan Cane was appoint-

ed to FAU’s Board of Trustees by Governor Rick Scott.

Pace Americas

President and CEO, Tim O’Loughlin was a keynote speak-

er in the Executive Forum for the Florida Atlantic University

College of Business.

Pace acquired Aurora Networks, Inc. a leading developer

and manufacturer of advanced, optical transport and ac-

cess network solutions for broadband networks that sup-

port the convergence of video, data, and voice applica-

tions.

President and CEO of Pace and

FAU Graduate, Tim O’Loughlin

The Technology Business Incubator

The Technology Business Incubator (TBI) is

a location and knowledge resource center

for entrepreneurs emerging from Florida

Atlantic University – students, recent gradu-

ates and faculty – as well as regional entre-

preneurs. The TBI is currently home to 35

early stage high-tech companies as well as

the New World Angels, the Florida Institute

for Commercialization of Public Research, and newly arrived this year, the South

Florida Technology Alliance (SFTA).

The TBI has a good track record of successful tenants. Some of our noteworthy

graduates include Linguasys, HiConversion, and Flagship Solutions Group. These

businesses are thriving in the South Florida market and serve as an example of the

power of business incubation to facilitate company growth.

The benefits for TBI tenants include access to private conference rooms, access to

Florida LambdaRail, and for emerging companies requiring advanced broadband ca-

pabilities, usage of the data room. The data room accommodates large servers for

technology/research use and is wired with Gigabit Ethernet cabling and optic fiber. It

includes a server room with back-up battery power and a generator available to host

resident company servers.

13

The Technology Business Incubator

In the spring of 2013, the Research

Park at Florida Atlantic Universi-

ty expanded space for the Technology

Business Incubator from 14,000 to

25,000 square feet in order to accom-

modate a rapidly growing need for ad-

ditional space for current client com-

panies and to house new compa-

nies. The expansion is paying divi-

dends. Several TBI startups have made incredible technological advances, recruited

prominent advisory board members, and secured $8.1 million in investment capital.

14

The South Florida Tech-

nology Alliance (SFTA)

joined the TBI. SFTA’s

move to the TBI is a win-

win for both entities and

offers distinct advantages: SFTA is in close proximity to and can draw on talent from

multiple tech entrepreneurs, and TBI tenants can be mentored by SFTA’s established

tech experts. SFTA promotes the growth, success and awareness of the regional

technology community. Through events, networking, programs and education, they

provide South Florida’s technology-related companies, academic institutions, entrepre-

neurs, governments and related organizations with an active forum to grow the busi-

ness of technology in our region. By bringing SFTA in the TBI, the Research Park is

building on its strategic infrastructure of mentors and resources for Incubator tenants.

Server Room located in the Technology Business Incubator

Technology Business Incubator:

Company Highlights

TBI company, LinguaSys graduated from the

Technology Business Incubator this year.

CEO of LinguaSys, Brian Garr credits his

company’s beginnings with the Technology

Business Incubator as being a crucial part of

their long-term success. LinguaSys is an in-

ternational provider of human language technologies, producing highly customized

text analytics, translation and natural language user interface software. Their cus-

tomer portfolio includes some of the largest global technology and mutual fund com-

panies, commercial banks, as well as government and military organizations. Lin-

guaSys’ unique translation technology has also attracted venture capital funding

from Dallas Maverick’s owner and television series Shark Tank owner, Mark Cuban.

LinguaSys is an excellent example of how the Technology Business Incubator can

nurture a startup, allowing a new ven-

ture to hone and perfect technology, and

ultimately launch into a successful enter-

prise. LinguaSys’ success represents

not only a strategic victory for the com-

pany and the Research Park but an in-

spiration for current and future residents

of the Technology Business Incubator.

15

Linguasys CEO Brian Garr, explaining how the company’s

translation software works

Expanding Partnerships:

Florida Atlantic University

The Research Park began a relation-

ship with the Florida Atlantic University

College of Business Economics De-

partment. Partnering with Associate

Dean of the College, Rupert Rhodd,

the relationship is creating new linkag-

es between the Research Park, its ten-

ants, and students in the College of

Business. All graduating Economics

majors are required to take the senior capstone course,

Cases in Economic Analysis. The final assignment for this

course is a group project in which the students write a com-

prehensive case study of a private company by applying

economic and competitive analysis. This year, graduating

seniors conducted their analyses on three Research Park

tenants: ATG, MobileHelp, and Modernizing Medicine. The

students listened to presentations and conducted a Q&A

with ATG’s CEO Simon Kay, MobileHelp’s President Rob

Flippo, and Modernizing Medicine’s CFO Karen O’Byrne.

By partnering with the Research Park, students are provid-

ed with opportunities to test their analytical skills through

interaction with actual firms competing in the South Florida

market. Through this project, the class is able to engage in

dynamic learning, create networking opportunities for stu-

dents, and strengthen ties between the University and the

Research Park.

16

Expanding Partnerships:

Florida Atlantic University

Modernizing Medicine engaged in a new da-

ta project with students and faculty at FAU.

The data project aimed to give physicians

clinical decision support tools at the point of

care based on research performed by the

data mining and machine learning researchers at

FAU and FIU.

The Boca Raton Airport Au-

thority collaborated with Flori-

da Atlantic University’s Col-

lege of Civil, Environmental,

and Geomatics Engineering

(CEGE) professor Dan

Meeroff to help design its new administration build-

ing. The students created a fully Leadership in Ener-

gy and Environmental Design (LEED) certified build-

ing. “We were very happy with the re-

sults,” said Janet Eaton Sherr, Executive

Deputy Director for Landslide Operations

and Facilities for Boca Airport Authority.

“They did a great job.” While funding re-

strictions kept the Authority from incorpo-

rating the full design, several of the stu-

dent’s design features were incorporated

into the plans for the final building.

17

Future Site of the Boca Raton Airport Authority’s Administration

Building

Expanding Partnerships:

TecnoCampus Mataró

The Research Park at Florida

Atlantic University entered into

a new affiliation with Tecnocam-

pus in Mataró, Barcelona,

Spain. The new partnership will

establish a collaborative frame-

work to enhance international-

ism through the sharing of best

practices, facilities, and re-

sources with the end goal being

economic growth and job cre-

ation The agreement will cre-

ate opportunities for new and

existing Research Park affiliat-

ed firms to expand into interna-

tional markets by utilizing the same competitive advantages offered by the domestic

Technology Business Incubator: office space, shared resources, and IT support, With

a young and educated workforce, Spain represents a wealth of new entrepreneurial

resources and the partnership itself represents a milestone in the Research Park’s

strategic plan to create an international network of

incubators, entrepreneurs, and research facilities.

SLID is a company being incubated in Mataró that has already visited

the TBI. The TBI Is mentoring the company and helping it evaluate its

market opportunity in Florida

18

President of the Research Park, Andrew Duffell with Miquel Rey,

President of the TecnoCampus Mataró Foundation

Economic Impact Study

19

The analysis was performed using the Regional Economic Model, Inc. (REMI) Policy Insight

Model designed for the South Florida Economic Forecasting Partnership. This is a model that

has been built and calibrated for the Southeast Florida region, which includes specific inputs

and data for seven counties, including Palm Beach County. The customized county model

utilizes data from the Bureau of Economic Analysis, the Bureau of Labor Statistics, the De-

partment of Energy, the U.S. Census Bureau and other public sources.

The businesses located in the Research Park at Florida Atlantic University listed in the pre-

ceding table, currently have 1307 “direct” full-time equivalent jobs with an average salary of

$78,813.

In order to illustrate the total impact of these businesses in the county, REMI developed a

model with detailed employment, population, personal income and other data specific to Palm

Beach County. REMI provides a year-by-year comparison of the effects of the businesses

against a baseline control. REMI generates the regional baseline forecast and then uses the

information to develop an alternative forecast that occurs due to the type and location of the

businesses. The results in the table that follows measure/quantify both the direct and indirect

impacts of these businesses on the economy of the county, regardless of whether it is project-

ed to grow or contract.

Year 2013 2014 2015 2016 2017

Employment (Direct & Indirect)

2,719 2,744 2,737 2,710 2,664

Personal Income ($) 164.5 M 183.9 M 199.7 M 213.6 M 225.8 M

Total Output ($) 449.1 M 463.4 M 471.6 M 479.6 M 486.7 M

Total 449.1 M 2,719 jobs

463.4 M 2,744 jobs

471.6 M 2,737 jobs

479.6 M 2,710 jobs

486.7 M 2,664 jobs

Economic Impact Study

20

Employment

The businesses located within the Research

Park at Florida Atlantic University generate an

additional 1,412 jobs beyond the 1,307 jobs

which result from “direct” employment by the

Research Park businesses, for a total of

2,719 jobs in 2013 (base year of the analysis).

The 1,412 “indirect” jobs are a result of both

an intermediate effect (employment that satis-

fies demand for the provision of goods and

services to the businesses) and an induced

effect (resulting from the spending of disposa-

ble income).

Output

Total economic output in Palm Beach County is estimated to be $449.1 Million in base

year 2013. Output measures the amount of production in dollars, including all interme-

diate goods purchased, as well as compensation and profits. This can be expressed

as additional sales in the county. Similar to the concept of indirect employment, it pro-

vides a sense of the multiplier effect that takes place when businesses such as those in

the Research Park are a part of the local economy.

Research Park Team

2014 Board of Directors

Bruce Rosetto Esq, Chair

Robert D. Parks, Ed.D., Vice-Chair

Michael I. Daszkal, CPA, Treasurer

Roxanna Trinka

Bob Swindell

Lonnie H. Maier, MBA

John Newcomer, M.D.

General Counsel

J. Freddy Perera, Esq

Research Park Staff

Andrew Duffell, President & CEO

Christine Burres, Director of Operations

Jonathan Grabis, Intern

21

3651 FAU Boulevard

Suite 400

Boca Raton, FL 33431

(561)416-6092

www.Research-Park.org