NSF/ENG SBIR TASK FORCEREPORT AND RECOMMENDATIONS

FOR THE NSFSMALL BUSINESS INNOVATION RESEARCH (SBIR)SMALL BUSINESS TECHNOLOGY TRANSFER (STTR)

PROGRAMS

Presented to:

NSF/ENG Advisory Committee

20 May 2004

Task Force Members:

Chris W. Busch, ENG AdComm, SBIR AdComm ChairWarren DeVries, Division Director, DMII

Kristina Johnson, ENG AdComm ChairKesh Narayanan, Director, Industrial Innovation Programs

SBIR Task Force, ENG AdComm 20 May 2004 2

NSF/ENG SBIR TASK FORCEHISTORY AND FORMATION

PRESENTATION ON NSF SBIR/STTR PROGRAMS JUNE 2002 NSF ENG ADCOMM MEETING (BUSCH)

DISCUSSIONS WITHIN ENG DIRECTORATE REGARDING:

BUDGET: SBIR/STTR BUDGET IMPACT ON DMII AND ENG

ORGANIZATION: NESTING SBIR IN DMII SUB-OPTIMAL, NOT CONSISTENT WITH “ORGANIZATIONAL EXCELLENCE”

INNOVATION: OPPORTUNITY TO IMPLEMENT STRATEGIC PLAN “INNOVATION VISION”

MEETING WITH JOHN BRIGHTON 27 JAN 2004

ATTENDEES: BRIGHTON, DEVRIES, NARAYANAN, BUSCH

TASK FORCE AUTHORIZED

INTERIM DRAFT REPORT DELIVERED TO ENG/BRIGHTON 18 MAR 2004

SBIR Task Force, ENG AdComm 20 May 2004 3

BUDGETSSBIR/STTR PROGRAMS & DMII AND ENG BUDGETS

ANNUAL 2004 BUDGETS ($MILLIONS):

NSF……………………………………………………………………………… $5,570

ENGINEERING DIRECTORATE…………………………………..$525

DMII BUDGET………………………............$160

SBIR PROGRAM…………...$90

STTR PROGRAM…………. $10

TOTAL……………. $100

NON SBIR/STTR DMII PROGRAMS………………...$60

FY 2004 SBIR/STTR BUDGET IS:

19.0 % OF ENGINEERING BUDGET!!!

62.5% OF DMII BUDGET!!!

SBIR Task Force, ENG AdComm 20 May 2004 4

BUDGETSSBIR/STTR ANNUAL BUDGET HISTORY

0

20

40

60

80

100

120

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

FISCAL YEAR

$ M

ILL

ION

S

SBIR Task Force, ENG AdComm 20 May 2004 5

0

100

200

300

400

500

600

FISCAL YEAR

$ M

ILL

ION

S

w/ SBIR

w/o SBIR

BUDGETSNSF ENGINEERING ANNUAL BUDGET HISTORY

SBIR Task Force, ENG AdComm 20 May 2004 6

0

2

4

6

8

10

12

FISCAL YEAR

PE

RC

EN

T

w/ SBIR

w/o SBIR

BUDGETSENG ANNUAL BUDGET AS PERCENT OF NSF BUDGET

SBIR Task Force, ENG AdComm 20 May 2004 7

BUDGETSSUMMARY COMMENTS

NSF ENGINEERING BUDGET 1994 TO 2004:

ROUGHLY CONSTANT AT 10% OF NSF BUDGET WITH SBIR/STTR

BUT NOW ONLY ~8% OF ENGINEERING BUDGET EXCLUDING SBIR/STTR

DMII 2004 BUDGET

$160 MILLION – BUT ONLY $60 MILLION EXCLUDING SBIR/STTR BUDGETS!!!

NESTING THE SBIR/STTR PROGRAMS IN DMII AND ENGINEERING:

LIKELY IMPEDING DMII AND ENG BUDGET GROWTH

THESE BUDGET TRENDS IN FACE OF NATIONAL NEEDS FOR ENGINEERING AND INNOVATION

MANUFACTURING AND JOBS CRISIS

NEEDED: MAJOR INITIATIVES

SBIR Task Force, ENG AdComm 20 May 2004 8

BUDGETSTASK FORCE RECOMMENDATION

REPORT NSF SBIR/STTR PROGRAM BUDGETS SEPARATELY AND DISTINCT FROM THE REMAINING ENG AND DMII BUDGETS

STATUS

RECOMMENDATION IMPLEMENTED

SBIR Task Force, ENG AdComm 20 May 2004 9

ORGANIZATIONSBIR/STTR PROGRAMS & THE ENG ORGANIZATION

NSF SBIR/STTR PROGRAM SCOPE

THE BREADTH OF NSF SCIENCE AND ENGINEERING ACTIVITIES

CLEARLY BROADER THAN DMII

EVEN BROADER THAN ENGINEERING

"Our SBIR portfolio spans nearly every directorate at NSF - from engineering to biosciences, to the physical and mathematical sciences, to the information and communication sciences, and education research."

JOE BORDOGNA“SBIR: Strategic Investment in the Nation's Future," Symposium on the Small Business Innovation Research, Program: Measuring

the Outcomes, National Research Council, October 24, 2002

SBIR Task Force, ENG AdComm 20 May 2004 10

ORGANIZATIONNSF “ORGANIZATIONAL EXCELLENCE” GOAL

FROM THE NSF STRATEGIC PLAN:

“AN AGILE, INNOVATIVE ORGANIZATION THAT FULFILLS ITS MISSION THROUGH LEADERSHIP IN STATE-OF-THE-ART PRACTICES”

NOW A STRATEGIC GOAL ALONG WITH “PEOPLE, IDEAS AND TOOLS”

SBIR/STTR PROGRAM ORGANIZATIONAL REALIGNMENT WITHIN ENGINEERING

CREATE OPPORTUNITIES FOR DMII AND ENGINEERING

ENABLE SBIR/STTR PROGRAM TO CONTRIBUTE TO NSF “INNOVATION” VISION

ACHIEVE HIGHER LEVEL OF “ORGANIZATIONAL EXCELLENCE”

SBIR Task Force, ENG AdComm 20 May 2004 11

ORGANIZATIONSBIR/STTR PROGRAMS & THE ENG ORGANIZATION

OBSERVATIONS & COMMENTS

MINIMAL SCIENCE & ENGINEERING OVERLAP BETWEEN SBIR/STTR AND DMII PROJECTS

PROPERLY ORGANIZED, SBIR/STTR PROGRAMS OFFER OPPORTUNITY FOR ENG TO EMBRACE AND ACHIEVE THE “INNOVATION VISION”

NESTING SBIR/STTR PROGRAMS IN DMII NOT CONSISTENT WITH ORGANIZATIONAL EXCELLENCE

SBIR Task Force, ENG AdComm 20 May 2004 12

ORGANIZATIONTASK FORCE RECOMMENDATIONS

SEPARATE THE SBIR/STTR PROGRAMS FROM THE ENG/DMII DIVISION

ESTABLISH SBIR/STTR PROGRAM OFFICE REPORTING TO THE NSF ENG AD

STATUS

RECOMMENDATION DISCUSSED WITH ENG DIVISION DIRECTORS

REQUEST

TASK FORCE SOLICITS ENG ADCOM SUPPORT FOR “ORGANIZATION” RECOMMENDATION

SBIR Task Force, ENG AdComm 20 May 2004 13

INNOVATIONAND THE NSF ENG DIRECTORATE & SBIR/STTR PROGRAMS

INNOVATION – A CENTRAL THEME IN THE NSF STRATEGIC PLAN

“ENABLING THE NATION’S FUTURE THROUGH DISCOVERY, LEARNING AND INNOVATION”

“INTEGRATING THE PROCESS OF DISCOVERY, LEARNING AND INNOVATION”

SBIR Task Force, ENG AdComm 20 May 2004 14

INNOVATIONAND THE NSF ENG DIRECTORATE & SBIR/STTR PROGRAMS

INNOVATION: WHAT IS IT???

PETER DRUCKER (“Managing for the Future,” 1992):

THE SOURCE OF WEALTH IS SOMETHING SPECIFICALLY HUMAN: KNOWLEDGE

KNOWLEDGE APPLIED TO TASKS WE ALREADY KNOW HOW TO DO: PRODUCTIVITY

KNOWLEDGE APPLIED TO TASKS THAT ARE NEW AND DIFFERENT: INNOVATION

AN INDUSTRIAL VIEW (3M)

RESEARCH: MONEY >>> IDEAS

INNOVATION: IDEAS >>> MONEY

SBIR Task Force, ENG AdComm 20 May 2004 15

INNOVATIONAND THE NSF ENG DIRECTORATE & SBIR/STTR PROGRAMS

"Innovation is at the core of what we are about at NSF, and our vision statement reflects that. It's direct and crisp: "enabling the nation's future through discovery, learning, and innovation." Not too long ago, you would not have seen the word innovation in an NSF vision statement. Now it's there together with learning and discovery, and it's there to stay.“

Joe Bordogna

"Innovation: Future Perfect,"Vermont Innovation Forum, November 13, 2001

"From an engineer's point of view, we are the ones responsible for getting things done and out the door in our society. We make stuff, and we make it right.“

Joe Bordogna

"U.S. Engineering: Enabling the Nation's Capacity to Perform," American Society for Engineering Education, June 25, 2003

SBIR Task Force, ENG AdComm 20 May 2004 16

INNOVATIONAND THE NSF SBIR/STTR PROGRAMS

“GETTING THINGS DONE” AND “MAKING STUFF”

NSF SBIR/STTR PROGRAMS ARE AN EXCELLENT MECHANISM

FOR NSF TO ACHIEVE INNOVATION ALONG WITH DISCOVERY AND LEARNING

THE KEY ROLE OF THE PRIVATE SECTOR IN “INNOVATION”

THE KEY ROLE OF SMALL BUSINESSES IN “INNOVATION”

16% OF GDP NOW COMES FROM STARTUP BUSINESSES!!!

SBIR Task Force, ENG AdComm 20 May 2004 17

EducationSector

GovernmentSector

LargeBusiness/IndustrySector

SmallBusiness/IndustrySector

36%

32.50%

18.50%

13%S

L

E

G

* Data from NSF Science Indicators

INNOVATIONAND THE ROLE OF SMALL BUSINESSES

EMPLOYMENT OF SCIENTISTS AND ENGINEERS(FROM KESH NARAYANAN PRESENTATION)

SBIR Task Force, ENG AdComm 20 May 2004 18

INNOVATION“GETTING THINGS DONE” AND “MAKING STUFF” THROUGH

BENEFICIAL UNIVERSITY - SMALL BUSINESS LINKS

DUKE UNIVERSITY PRATT SCHOOL OF ENGINEERING (Dr. Kristina Johnson, Chair)ERC FOR EMERGING CARDIOVASCULAR TECHNOLOGYRECENT SBIR/STTR AWARD WINNERShttp://www.pratt.duke.edu/about/from_the_dean.php

UNIVERSITY OF COLORADOERC FOR OPTOELECTONIC COMPUTING (Dr. Kristina Johnson, Former

Director)14 SMALL BUSINESS SPINOFFS IN LAST 5 YEARS

Boulder Nonlinear SystemsMacrovision TechDisplay Tech

SBIR/STTR FUNDING KEY TO SPINOFFS

SBIR Task Force, ENG AdComm 20 May 2004 19

INNOVATION“GETTING THINGS DONE” AND “MAKING STUFF” THROUGH

BENEFICIAL UNIVERSITY - SMALL BUSINESS LINKS (CONT)

MIT4000 MIT RELATED BUSINESSES1.1 MILLION EMPLOYEES$232 BILLION ANNUAL SALES~150 NEW SMALL BUSINESS SPINOFFS PER YEAR!!!“IMPORTING” BUSINESS FOUNDERS

FROM “MIT: THE IMPACT OF INNOVATION” – 1997

YOUR EXAMPLES!!!

BENEFITS (from NSF Engineering AdComm Brochure)“ENGINEERING BETTER HEALTH”“ENGINEERING BETTER SECURITY AND SAFETY”“ENGINEERING A BETTER ECONOMY”

SBIR Task Force, ENG AdComm 20 May 2004 20

INNOVATIONTASK FORCE RECOMMENDATIONS

AGREE ON DEFINITION OF “INNOVATION” FOR ENGINEERING DIRECTORATE

EMBRACE SBIR/STTR PROGRAMS AS INTEGRAL PART OF ENGINEERING PORTFOLIO IN ACHIEVING “INNOVATION” VISION

SBIR Task Force, ENG AdComm 20 May 2004 21

SUMMARYNSF/ENG SBIR TASK FORCE

RECOMMENDATIONS

BUDGETS

REPORT NSF SBIR/STTR PROGRAM BUDGETS SEPARATELY AND DISTINCT FROM THE REMAINING ENG AND DMII BUDGETS

ORGANIZATION

SEPARATE THE SBIR/STTR PROGRAMS FROM THE ENG/DMII DIVISION

ESTABLISH SBIR/STTR PROGRAM OFFICE REPORTING TO THE NSF ENG AD

INNOVATION

AGREE ON DEFINITION OF “INNOVATION” FOR ENGINEERING DIRECTORATE

EMBRACE SBIR/STTR PROGRAMS AS INTEGRAL PART OF ENGINEERING PORTFOLIO IN ACHIEVING “INNOVATION” VISION