Annual Report and Illinois Innovation Review 2013

The Illinois Science & Technology Coalition (ISTC) harnesses the power of research and innovation to expand and enrich the states economy. As a member-driven, nonprot entity, we forge public-private partnerships among industry, research universities, federal labs, and government to increase investments in research and technology, develop talent, promote awareness and policies, and drive job growth in Illinois.

ISTC staff Mark Harris President & CEO Jeffrey Margolis Managing Director Bob Greenlee Senior Advisor Alya Adamany Woods Managing Director, Illinois Innovation Network Kiersten Regelin Managing Director, Illinois Science & Technology Institute Roxanne Atienza Program Manager, Operations and Events Lyubomir Uzunov Program Manager, Research Allie Scully Program Manager, R&D STEM Learning Exchange David Machajewski Program Manager, Innovation Initiatives

Greetings from ISTC leadership This past year saw huge strides within the Illinois innovation economyand as a result, it was an impressive year of action and growth for the Illinois Science & Technology Coalition (ISTC). As a member-driven organization, the ISTC serves as a bridge-builder, catalyst, and advocate for the Illinois science, technology, and innovation community. Throughout 2013, with the strength of our academic, industry, and civic members, our efforts served to advance Illinois position as an innovation leader by driving new capital opportunities and partnerships, enhanced awareness, sound policies, and deeper talent development. Key highlights from 2013 included: Launching the Illinois Innovation Network website (illinoisinnovation.com), a central portal for all things innovation in Illinois, including a directory of more than 450 statewide resources and services.  Releasing key data through the Illinois Innovation Index publication, a valuable tool to track the states performance across innovation outputs. We also assisted in the development of two independent studies that assessed the vast economic impact of the biotechnology sector and the Illinois Medical District. Launching the Illinois Corporate-Startup Challenge, a pilot initiative that uses highly curated demo days to better link corporations such as Allstate, John Deere, Molex, Motorola Mobility, and Walgreens with the states emerging enterprises and entrepreneurs. Hosting three Science & Technology Leadership Forums in Washington, DC, to emphasize the importance of funding for basic and applied research and its commercialization. The three events, which featured Illinois activity in energy, national lab user facilities, and biomedical commercialization, attracted more than 125 attendees from the Hill.  Through the efforts of the Illinois Science & Technology Institute, initiating the pilot year of the R&D STEM Learning Exchange with more than 40 public and private partners, including 14 high schools, to provide targeted resources that support authentic, inquiry-based learning experiences and enable greater career exploration and degree production in R&D elds. We look forward to building on these efforts and accomplishments to cultivate more economic growth in the year ahead and thank all of our members and partner organizations for their continued collaboration. Sincerely,

Board of Directors Chairman Eric D. Isaacs Director Argonne National Laboratory Treasurer Gerald Roper President Chicagoland Chamber of Commerce Foundation Members Linda Darragh Clinical Professor of Entrepreneurial Practice and Executive Director Kellogg Innovation and Entrepreneurship Initiative, Northwestern University John Flavin Executive Director, Chicago Innovation Exchange University of Chicago Robert Fleming Director, Strategic Planning Northrop Grumman Corporation Laura Frerichs Director University of Illinois Research Park John Larson General Manager, Global Alliance Management AbbVie Jeffrey Mays President Illinois Business Roundtable Azmi Nabulsi Head of R&D Strategic and Professional Affairs Takeda Pharmaceuticals International, Inc. Warren Ribley Executive Director Illinois Medical District Matthew Summy Vice President, Government and Regulatory Affairs Comcast Corporation Adam Pollet, ex-ofcio Director Illinois Department of Commerce and Economic Opportunity

Eric Isaacs Board Chairman

Mark Harris President and CEO

Illinois Science & Technology Coalition Annual Report 2013

ISTC members and partners

The ISTC has built a network of committed members and partners that lend their energy, resources, and creativity to advance a vibrant innovation ecosystem in Illinois. By working together with the ISTC, these organizations drive Illinois R&D and innovation pipeline and create a shared voice to celebrate successes and advocate for science and technology programs and policies.

Members
Abbott Laboratories AbbVie Argonne National Laboratory Astellas Pharma US, Inc. Baxter International Chicagoland Chamber of Commerce Chicagoland Zoological Society: The Brookeld Zoo Cleversafe Comcast DePaul University Eaton Corporation Exelon Corporation Fermi National Accelerator Laboratory Illinois Science + Technology Park (Forest City) GlaxoSmithKline Google GTL Resources Horizon Pharma Illinois Business Roundtable Illinois Institute of Technology Illinois Math and Science Academy Illinois Medical District John G. Shedd Aquarium Motorola Mobility Motorola Solutions Northern Illinois University Northrop Grumman Northwestern University Southern Illinois University Takeda Pharmaceuticals University of Chicago University of Illinois Willdan Group, Inc.

Partners
Biotechnology Industry Organization Broadband Illinois Chicago Council on Science and Technology Chicago Innovation Awards Chicago Innovation Mentors Chicago Metropolitan Agency for Planning Chicagoland Entrepreneurial Center (1871) Citizens Utility Board Clean Energy Trust Energy Foundry Illinois Biotechnology Industry Organization Illinois Department of Commerce and Economic Opportunity Illinois Science and Energy Innovation Foundation Illinois Technology Association Illinois Venture Capital Association IllinoisVENTURES, LLC National Center for Agricultural Utilization Research National Corn to Ethanol Research Center National Governors Association Pharmaceutical Research and Manufacturers of America Smart Chicago Collaborative State Science and Technology Institute TechAmerica World Business Chicago

Illinois Science & Technology Coalition Annual Report 2013

Table of Contents
4 5 7 9 11 Year of innovationBy the numbers Capital Talent Business Climate Dynamism

13 Year of impactISTCs role and accomplishments 14 ISTCs Role 15 ISTCs Impact 15 Securing capital for research and investment 17 Cultivating ideas and partnerships 22 Raising awareness through regular publications and events 24 Advocating for sound policies 28 Attracting and retaining top talent 31 Media Impressions

Year of innovation By the numbers

The quarterly Illinois Innovation Index tracks the states progress in four categories: capital, talent, business climate, and dynamism (realization of research potential). The following highlights from the past year demonstrate some of Illinois notable advances in technology innovation and entrepreneurship.

Capital
Whether used to stimulate incremental improvements or develop entirely new products, markets, and industries, funding for R&D is a critical component of any innovation ecosystem. Illinois ranked eighth among U.S. states by academic R&D expenditures in 2011 (the latest year for which data are available). That year, the states academic institutions spent a record $2.3 billion on R&D, an increase of 4 percent over the previous year.

Fueling the next generation of innovation R&D expenditures at Illinois universities and colleges, ranked by science and engineering field, 2011, percent
Engineering Physical sciences Environmental sciences Mathematical sciences Computer sciences Life sciences Psychology Social sciences Other

Institution Northwestern University University of Illinois, UrbanaChampaign University of Chicago University of Illinois, Chicago Southern Illinois University, Carbondale Loyola University Illinois Institute of Technology Southern Illinois University, Edwardsville

All R&D expenditures $595 million

$523 million

$447 million

$374 million

$71 million

$41 million

$40 million

$33 million

Illinois Science & Technology Coalition Annual Report 2013

Another driver of progress, venture capital funding, reached $746 million in 2012, with rst-round funding posting a particularly strong performance. Overall that year, venture capital rms invested in 111 Illinois companies, more than twice the average number of businesses that received funding annually from 2006 to 2010. In addition, investment by Illinois companies in R&D and collaborative research with Illinois universities has reached record levels. In ination-adjusted dollars, industry R&D outlays in Illinois rose from just below $11 billion in 2000 to more than $12 billion in 2011.

Venture capital in Chicago region companies by investment amount, 2011 and 2012
100% = Annual dollars invested by venture capital rms, $ millions $100 and above $25$99.9 2% 8% 9% $1,303.7 $746.1 1%

$5$24.9

23%

19%

$1$4.9

32%

43%

$1 and below

19% 20%

Not reported

16%

10% 2012 n = 111

2011 n = 128
Source: Thomson Venture One, Pitchbook, IVCA research

Illinois Science & Technology Coalition Annual Report 2013

Talent
An ecosystems ability to retain and sustain innovative companies relies on the quality and quantity of its human talent. Illinois science, technology, engineering, and math (STEM) talent concentration outpaces the nation as measured by the annual portion of graduates with advanced degrees in STEM subjects.

STEM degrees by type of degree, United States and Illinois, 2011

United States Illinois

28.2%
Associates

20.6%

45.3%
Bachelors

45.3%

Masters

17.2% 23.1%

PhD/doctorate equivalent

9.3% 11.0%

Source: Integrated Postsecondary Education Data (IPEDS)/National Center for Education Statistics (NCES) Completions Survey

Illinois Science & Technology Coalition Annual Report 2013

Since 2007, bachelors degrees in computer science and support services have increased by more than 800 per year. In fact, these subject areas account for 12 percent of all STEM bachelors degrees awarded in Illinois, meaning the state produces more computer scientists as a portion of all STEM degrees than do leading states such as California, New York, and Massachusetts. With demand for STEM graduatesparticularly computer technicians, programmers, and scientistsprojected to rise to 320,000 in 2018, this increase gives the state an advantage in serving existing technology companies and attracting new businesses to the state. STEM bachelor's degrees conferred by subject area, 20012011
Agricultural sciences Biological and biomedical sciences Computer and information sciences and support services Engineering/engineering related fields and technologies Health professions and related programs Mathematics and statistics Physical sciences

Number of degrees Percent change from 2007 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500

+34.8%

+17.5%

+9.9% +51.5%

+6.2%
1,000 500

+8.7% +4.0%

0 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011

Source: Integrated Postsecondary Education Data (IPEDS)/National Center for Education Statistics (NCES) Completions Survey

Illinois Science & Technology Coalition Annual Report 2013

Business Climate
Clusters1 act as magnets for investment, talent, and businesses seeking to benet from an integrated supply chain, technology transfer, and partnership opportunities. Illinois exceeded the national benchmark in job creation within the biopharmaceutical, information technology, and aerospace engine clusters. The education and knowledge creation cluster, which includes research and development organizations, was the fastest growing cluster in Illinois, increasing from 6.4 percent of total traded cluster employment in 1998 to 10.1 percent in 2010. Overall, the states top clusters in terms of employment shifted from production-based to serviceintensive clusters.
1Clusters

are geographic concentrations of businesses, suppliers, and associated institutions in a specic industry.

Job creation by traded cluster in Illinois, net change in employment, 19982010

National benchmark1
75,000

Clusters where Illinois exceeds national benchmark

60,000

45,000 Biopharmaceuticals 30,000 Distribution services Entertainment 15,000 Information technology Publishing and printing Production technology 2

0
Transportation and logistics 15,000 Education and knowledge creation

Aerospace engines Hospitality and tourism Processed food Medical devices

30,000 Business services 45,000 Financial services 60,000 Metal manufacturing 75,000

1 The national benchmark is a hypothetical projection based on each clusters average national growth rate.

Differences between the state and national trends illustrate cluster developments distinctive of the Illinois economy. 2 Technology applied to the manufacturing and fabrication process. Source: U.S. Cluster Mapping Project

Illinois Science & Technology Coalition Annual Report 2013

The states nominal exports hit a record of $68 billion in 2012, indicating an increase in the competitiveness of local businesses in national and global markets. Since 2002, goods exports in Illinois have grown at a compounded annual growth rate (CAGR) of more than 10 percent, exceeding the national average of 8 percent. High-tech goods accounted for nearly 20 percent of total exports in 2012. Top 10 Illinois high-tech sectors by export value,1 compound annual growth rate, 20022012
Illinois

Sector

United States

Illinois nominal exports, 2012 (millions)1 9.5% 9.6%

Basic chemicals

$2,427

Precision instruments

7.5% 6.4% 4.5% 10.2% 4.2% 8.2% 0.2% 0.1% 7.2% 6.5% 5.7% 2.6% 7.1% 9.3% 8.4% 6.5% 16.1% 20.7%

$2,333

Pharmaceuticals and medicines

$1,843

Communications equipment Semiconductors and other electronic components Aerospace products and parts

$1,326

$1,235

$1,032

Computer equipment

$871

Resins and synthetic rubber

$767

Audio and video equipment

$464

Oil and gas

$461

1 Dollar amounts not adjusted for inflation. 2

Figures refer to sum of all state exports and may differ from other published national data that incorporate residual exports from unknown states of origin. 3 Data for 2002 not available; CAGR calculated from 2003 to 2012. Source: U.S. Census Bureau, Foreign Trade Division, USATradeOnline, origin-of-movement state-based series

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Illinois Science & Technology Coalition Annual Report 2013

Dynamism
For faculty at academic institutions to achieve commercialization of their innovative research, a nascent technology must be developed, validated, and market-tested. Three gatesinvention disclosures, patenting, and licensingserve as milestones for the commercialization process. From 2008 to 2012, the total number of patents obtained by Illinois universities grew by 47 percent compared with the 20032007 period, almost tripling the national average growth rate of 16.5 percent. Growth in technology transfer in Illinois1 and the United States, 20032007 vs. 20082012, percentage change
United States2 Illinois

20032007 57,596

20082012 69,007

Total, 20032012 126,603

Percentage change 19.8%

Invention disclosures

2,775

3,212

5,987

15.7%

11,895 Patents issued

13,859

25,754

16.5%

519

763

1,282

47.0%

14,307 Licenses 515

15,495

29,802

8.3%

536

1,051

4.1%

In this dataset, the University of Illinois, the University of Chicago, and Northwestern University account for almost all academic technology transfer output in the state. 2 Excluding Illinois. Source: Association of University Technology Managers (AUTM), ISTC

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Illinois Science & Technology Coalition Annual Report 2013

Startups offer an avenue for the commercialization of promising early-stage technologies by attracting external, private funding for further development. In addition, small businesses like technology startups account for the majority of job growth in America. Therefore, the number of businesses created to take new technologies to market is one indication of the health of a states innovation economy. According to new ISTC research, from 2010 to 2013, Illinois universities generated 354 companies, 283 of which are still active. Of this total, 73 percent remain in Illinois. At least 15 startups were acquired or merged since 2010, led by Braintree and GrubHub, representing more than $2 billion in activity. Startups from Illinois universities, 20102013
Tech transfer Non-tech transfer Total

Total startups

91

263

354

Active startups (known)

74

209

283

Illinois-based (known)
Source: ISTC

59

147

206

Active university startups by educational institution,1 20102013

2% 1% 1% 7% 9% 33%

Northwestern University University of Chicago University of Illinois at Urbana-Champaign Illinois Institute of Technology University of Illinois at Chicago Bradley University Northern Illinois University Southern Illinois University (Carbondale and Edwardsville)
1 N = 283 Source: ISTC

17%

30%

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Illinois Science & Technology Coalition Annual Report 2013

Year of impact ISTCs role and accomplishments

The ISTC drives the states innovation economy forward through our role as a convener, catalyst, and champion for Illinois businesses, research institutions, and government. With the strength of our members, the ISTC enhances the Illinois innovation ecosystem by securing increased capital for research and investment; cultivating innovative ideas and partnerships; raising awareness through regular publications and events; advocating for sound policies; and attracting and retaining top talent.

13

The ISTCs role

Convener. As an intermediary organization, we provide a vital, impartial link between our public and private members. This function ranges from managing Governor Pat Quinns Illinois Innovation Council and uniting diverse parties and expertise around federal funding opportunities to identifying and supporting areas of common interest to the states universities, federal labs, industry, and government. Catalyst. We incubate ideas and facilitate projects across technology sectors, including energy, health, advanced manufacturing, and civic innovation. The ISTC also works with community partners to link corporations and the entrepreneurial community and contribute resources to STEM education. Champion. We promote Illinois innovation ecosystem, advocate for state and federal policies that advance its development, and enhance awareness and visibility of Illinois research and technology community.

Convener

Catalyst

ap ita l

ips h Ideas s r e and Partn

14

Illinois Science & Technology Coalition Annual Report 2013

ale nt

Polic ies

Champion

ess Awaren
C

The ISTCs impact

Securing increased capital for research and investment
The ISTC collaborates with elected ofcials, policymakers, and state agencies to attract federal research dollars to Illinois and direct state funds to effective programs. Through outreach to companies, universities, and venture capital rms, the ISTC also cultivates opportunities for startups and entrepreneurs.

Illinois Manufacturing Lab Illinois has a strong production legacy that, despite facing challenges during the recent recession, constitutes more than 12 percent of Illinois economy and mobilizes additional support services. One of the ISTCs priorities is to improve the competitiveness of Illinois manufacturersdrawing new companies to the state and attracting top talentby promoting access to cutting-edge advanced manufacturing technologies. In December, Governor Quinn announced the launch of the Illinois Manufacturing Lab (IML), a $10 million public-private initiative that seeks to lower nancial and human capital barriers to small and midsize manufacturers incorporating technology into their design and production processes. The IML brings together top-ight research capabilities, technical resources, and commercialization expertise and will serve as a hub to help Illinois companies learn the worlds most sophisticated tools and software. Housed within UI LABS, the IML works closely with a statewide network of partners, including the Illinois Department of Commerce and Economic Opportunity (DCEO), ISTC, and the National Center for Supercomputing Applications (NCSA) at the University of Illinois.

Governor Pat Quinn speaks during the launch of the Illinois Manufacturing Lab at Gold Eagles manufacturing facility.

Energy Foundry & Illinois Science and Energy Innovation Foundation The ISTC has been a catalyst in positioning Illinois as a national leader in developing next-generation energy solutions. In 2013, the ISTC worked with the state and its utilities to launch Energy Foundry and the Illinois Science & Energy Innovation Foundation (ISEIF)integral components of the Illinois Energy Infrastructure Modernization Act of 2011. This year, Energy Foundrys $22.5 million fund made its rst investments in three emerging energy technologies, including a lead investment that helped keep Root3 Technologies Inc., the revolutionationary energy optimization tool developer, in Illinois. The ISTC assisted Energy Foundry in this process by forming the entities, providing hosting, logistical, and administrative support, securing the organizations tax-exempt status, and providing legal services in support of their investments.

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Illinois Science & Technology Coalition Annual Report 2013

ISEIF recently launched a ten-year, $50 million initiative to nd new ways to help consumers better understand the benets of smart grid technology and empower them to access the smart grid in Illinois. The Illinois Science & Technology Institute (ISTI) continues to support ISEIF, providing project management support. The ISTC helped incubate Energy Foundry and ISEIF within its ofces at 1871 for much of 2013, and both entities are now located in a new energy-focused coworking space called Coalition. Illinois Smart Grid Regional Innovation Cluster The ISTC is a founding partner of the Illinois Smart Grid Regional Innovation Cluster (ISGRIC), an initiative nanced by the U.S. Small Business Administration (SBA). Led by the Illinois Institute of Technology in partnership with Energy Foundry and O-H Community Partners, ISGRIC is a platform to promote business growth and entrepreneurial activity by supporting innovation, investment, expansion, and development of smart grid startup companies in Illinois. ISGRIC offers technical and business support to smart grid startups and small businesses, identies and addresses technical and product needs, and creates and connects innovators with market opportunities and capital to speed the path to commercialization. ISGRIC also engages leading corporations, investors, and policymakers to facilitate continued growth. ISGRIC has turned $1.725 million in federal funding to date into more than $17 million in additional investment for the 18 participating companies. The SBA has highlighted ISGRIC as a national model for cluster development.

Additional research capital achievements in 2013 Illinois health organizations receive $7 million in federal funding In December, the Patient Centered Outcomes Research Institute (PCORI) made a $7 million federal award to a coalition of 20 Illinois health and hospital organizations, led by the Illinois Medical District. Disbursed over a period of 18 months, these funds will support research on how urban health care institutions can improve health outcomes and drive down costs for conditions such as sickle cell disease, asthma, anemia, obesity, and diabetes. Chicago-based consortium gets $25 million from NIST The National Institute of Standards and Technology (NIST), an agency of the U.S. Department of Commerce, awarded $25 million over ve years to a Chicago-based consortium led by Northwestern University to establish a new center of excellence for advanced materials research. The Center for Hierarchical Materials Design (CHiMaD) will focus on developing the next generation of computational tools, databases, and experimental techniques to enable the design of novel materials, one of the primary goals of the Obama administrations Materials Genome Initiative (MGI). Other members of the CHiMaD consortium include the University of Chicago, the Northwestern-Argonne Institute of Science and Engineering (a partnership between Northwestern and the Department of Energys Argonne National Laboratory), and the Computation Institute (a partnership between the University of Chicago and Argonne). Research advancements through this institute will help drive innovation in industries such as automotive and clean energy.

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Illinois Science & Technology Coalition Annual Report 2013

Cultivating ideas and partnerships

The ISTC plays an instrumental role in incubating promising new ideas and facilitating partnerships that drive innovation throughout the state, with particular emphasis on corporate, civic, health, and energy innovation.

Corporate innovation In June, Governor Quinns Illinois Innovation Council created the Corporate-Startup Challenge to advance innovations that fuel economic growth for Illinois by better connecting the states leading corporations with the entrepreneurial community. The ISTC developed and executed a program to realize this vision by matching innovations developed by Illinois startups and emerging companies with major corporations. Inaugural corporate participants include Allstate, John Deere, Molex, Motorola Mobility, and Walgreens. Approximately 200 companies were referred during the rst round of the program from more than 20 community partners; 65 were then interviewed and 57 referred into curated corporate portfolios. From this group, each corporation selected 10 to 15 businesses to present at private demo days hosted at each corporate HQ. The brightest and best-tting startups and emerging companies will gain access to mentoring, joint development agreements or strategic partnerships, and potential paths to investment and acquisition.

Illinois Innovation Council

In February 2011, Governor Quinn created the Illinois Innovation Council to identify and advance strategies that accelerate innovation, economic growth, and job creation. The Council, which includes leaders from Illinois businesses, universities, civic groups, and the entrepreneurial community, forges connections between the public and private sectors to foster innovation. The ISTC manages the council and coordinates and supports its activities.

The judging panel from Allstate

Cellular Diagnostics presents at Motorola Mobility

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Illinois Science & Technology Coalition Annual Report 2013

Civic innovation The Illinois Innovation Council created the Illinois Open Technology Challenge, a program that promotes Illinois open data platform, data.Illinois.gov, and connects technology developers with civic leaders and community groups. The challenge, which is managed by the ISTC in partnership with Smart Chicago Collaborative, promotes open data through training sessions, community meet-ups, and hackathons. In June, Governor Quinn announced the results of the programs pilot competition and awarded a total of $60,000 to four winning teams of developers that created digital tools using open government data for the benet of Illinois residents and their communities, including the South Suburbs of Chicago, Champaign, and Belleville. In addition, Rockford hosted a hackathon event in December to award another $15,000 to three app development teams. Sponsors of the Illinois Open Technology Challenge include Chicago Community Trust, Comcast, Google, the Illinois Innovation Council, John S. and James L. Knight Foundation, and Motorola Mobility Foundation.

The winners of the 2013 Illinois Open Technology Challenge. Left to right: ISTC President and CEO Mark Harris, SSMMA winner Ryan Eckdale-Dudley, Belleville winner Greg Bauges, State of Illinois winner Tyron Foston, Champaign winner Josh ONeal, and Smart Chicago Collaborative Executive Director Dan ONeil (above). Demonstration of Rockford road and lane app (right).

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Illinois Science & Technology Coalition Annual Report 2013

Energy innovation In 2013, the ISTC oversaw signicant progress in two initiatives aimed at creating growth in sustainable energy technologies. Shedd Aquarium Master Energy Roadmap In an effort to become the nations most sustainable cultural institution, the ISTC helped the Shedd Aquarium develop a Master Energy Roadmap, a multiphase plan to reduce the institutions use of external electricity by 50 percent by 2020. The ISTC serves as a lead strategic partner on the roadmaps implementation. The project is supported by funding from a public-private partnership, including a signicant investment from DCEO. By promoting this project at Americas most-visited aquarium, the ISTC hopes to encourage energy efciency and sustainability at civic institutions more broadly and reinforce Illinois position at the forefront of technical innovation in sustainability. The rst phase of the Shedds clean-energy initiative commenced with the installation of 913 photovoltaic solar panels on top of the aquariums world-class marine mammal pavilion. In an October event on the roof of the Abbott Oceanarium, Governor Quinn unveiled the 265-kilowatt project, the biggest solar panel installation in any Illinois cultural institution. The ISTC also negotiated a rst-of-its-kind opportunity with Hitachi, Mitsui, and Viridity Energy to provide a one-megawatt energy storage system to the Shedd to improve its critical reliability and allow the aquarium to participate in the retail energy markets, providing access to additional revenue. Partnerships with South Korean investors The ISTC has overseen the implementation of multiple demonstration projects in coordination with the State of Illinois and the Korea Smart Grid Institute under the Illinois Smart Buildings Initiative. To nance an additional project, the ISTC secured more than $2 million in foreign direct investment (FDI) from South Korean partners. The ISTC anticipates the completion of a total of six energy efciency projects at large residential and commercial buildings by the end of 2014. The ISTC has also worked as a strategic partner with the Village of Oak Park on the Smart City USA demonstration project, a joint venture between Oak Park and various South Korean corporate partners that was a direct result of the Illinois Smart Buildings Initiative. The Smart City USA project will link 200 Oak Park households to form a virtual microgrid using solar power, backup energy storage, and advanced monitoring technology. Oak Park has obtained state and foreign funding for 100 of these 200 buildings and for the creation of the virtual microgrid. Overall, the project is anticipated to generate more than $3 million in FDI.

Governor Quinn, ISTC CEO and President Mark Harris, and Shedd partners at the unveiling of the Shedd Aquarium rooftop solar panel installation.

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Illinois Science & Technology Coalition Annual Report 2013

Health innovation Over the past year, Illinois celebrated four key milestones in the elds of health and biotechnology. 2013 Biotechnology Industry Organization International Convention In April, Chicago hosted the 2013 Biotechnology Industry Organization (BIO) International Convention, a global event for biotechnology. The event drew 13,594 industry leaders from across the United States and 62 countries around the world. The convention featured more than 125 breakout sessions across 17 tracks such as regulatory approval and compliance, biofuels, patenting and technology transfer, and food and agriculture. Governor Quinn and nine other U.S. governors attended the conference. The ISTC helped to coordinate the Academic Zone at the conference, which enabled staff from technology transfer ofces at Illinois universities to share their innovative discoveries with convention attendees in a central location. Economic impact study In coordination with BIO 2013, a new, independent study released in April placed Illinois and the Midwest region at the core of the nations most vibrant bioscience hub. The Economic Engine of Biotechnology in Illinois, conducted by Ernst & Young LLP, in partnership with the Illinois Biotechnology Industry Organization (iBIO) and the ISTC, shows the Midwest Super Cluster, which includes Illinois and the surrounding eight-state region, surpasses California and the East Coast in biotechnology-related employment, number of establishments and research and development expenditures. In addition, the study found that the biotechnology industry directly or indirectly employs 369,000 Illinois residents with more than 3,500 biotech companies in the state, and generates $98.6 billion in economic output. These ndings are recognition of the coordinated efforts of industry, research universities, nonprots, government, and the investment community to build the states capabilities in biotechnology. Health, Technology, and Innovation Center announcement Also in April, Governor Quinn announced the creation of the Health, Technology, and Innovation (HTI) Center at the University of Illinois at Chicago Technology Park in the Illinois Medical District. The $3.4 million, 12,000-squarefoot lab and ofce space will serve as a new hub for Chicagos ourishing bioscience industry and bring scientists, clinicians, engineers, and industry experts together to support the development of an interdisciplinary approach to drug, diagnostic, medical device, and IT development. The facility will provide the infrastructure for technology development work outside of academic labs and feature support and access to professional services to assist in commercialization planning and venture formation guidance.

The Academic Zone at the BIO2013 convention (left). Governor Pat Quinn kicks off BIO 2013 in Chicago, bringing attention to the global signicance of Illinois biotechnology industry (right).

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Illinois Science & Technology Coalition Annual Report 2013

Illinois Medical District economic impact study In October, the Illinois Medical District Commission released The Illinois Medical District: Its Economic Impact and Workforce, an economic impact study conducted by two faculty members of the University of Illinois at Chicagos Center for Urban Economic Development. The study determined that each year, the Illinois Medical District (IMD) generates $3.4 billion for the Chicago regions economy, employs 29,200 people, and contributes more than $75 million in tax revenues to the state and nine counties in the Chicago metropolitan statistical area. The IMD also produces 20 to 30 patents each year and has been responsible for the launch of several healthrelated startups. The study, which was cosponsored by the ISTC, also provides recommendations for how the IMD can boost its impact on the regional economy through increased enrollment and attracting more patients to its hospitals.

Aerial view of the Illinois Medical District and map

The district adds

$3.4 billion
to economy of the Chicago region and

Within the next 10 years the district will generate as many as

29,200
people employed within the district.

4,500
in new revenue (increasing economic impact to 3.7 billion)

new permanent jobs (~33,700 total employees in the district), and spur healthcare, education and research activity resulting in

$300 million

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Illinois Science & Technology Coalition Annual Report 2013

Raising awareness through regular publications and events

The ISTC has built a network of regular publications, newsletters, and events to champion the states science and technology community, generate visibility, showcase successes, and share educational tools, resources, data, and analysis. By raising awareness and providing data-driven ndings, our work bolsters the dialogue among government ofcials, policymakers, and business leaders. In so doing, we help Illinois identify unique strengths and opportunities and sustain a vibrant, collaborative innovation ecosystem.

Illinois Innovation Network In June, the ISTC, in partnership with the Illinois Innovation Council, launched the redesigned Illinois Innovation Network (IIN) website at illinoisinnovation.com. The website serves as a central portal for all things innovation in Illinois. The IIN offers tools and resources in a searchable, interactive database intended to spur innovation and accelerate the growth of businesses and industries in the state. To date, more than 450 resourcesincluding entrepreneurship training programs, incubators, and investment rmshave been added to the directory. The website is also the new home of the Illinois Innovation Index, featuring quarterly reports, monthly updates, and a searchable archive.

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Illinois Science & Technology Coalition Annual Report 2013

ISTC Catalyst The ISTCs Catalyst newsletter features original articles, guest columns, infographics, and videos on key areas of the Illinois innovation economy, providing additional context on the states research and technology community beyond the data presented by the Index.

Catalyst issue topics in 2013

January Impact Entrepreneurship Chuck Templeton, founder of OpenTable and managing director at Impact Engine February Smart Grid InnovationSara Hochman, managing director, and Jason Blumberg, CEO and managing director, Energy Foundry March Technology EconomyFred Hoch, president and CEO of the Illinois Technology Association April Health Innovation and Entrepreneurship John Flavin, managing director, and Kate Anderson, communications manager, Chicago Innovation Mentors May Immigration and STEM talentJohn L. Anderson, president of Illinois Institute of Technology; and Mark Harris, president and CEO of the ISTC June Open Government and Civic DataDaniel X. ONeil, executive director of the Smart Chicago Collaborative July Education TechnologyHoward Tullman, chairman of the Tribeca Flashpoint Media Arts Academy; Illinois Innovation Council member August Illinois SBIR and STTR Competitiveness Brian Jurczyk, president and CEO of Starre Industries and chairman of CEO Roundtable September A New Vision for the Illinois Medical DistrictWarren Ribley, executive director of the Illinois Medical District October Illinois Research and Development Tax CreditMark Harris, president and CEO of the ISTC November Federal Support for Basic Science & Technology Commercialization Mark Harris, president and CEO of the ISTC December Opening a Closed Technology Licensing Landscape Kenneth Lee, analyst at Intellectual Property Exchange International, Inc.

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Illinois Science & Technology Coalition Annual Report 2013

Advocating for sound policies

The ISTC advocates for sound policies and programs at the state and federal levels. We actively support initiatives that have a positive impact on the states science and technology development.

Federal advocacy In 2013, the ISTC participated in four key programs and initiatives on the federal stage. Science & Technology Leadership Forums Through the Science & Technology Leadership Forum series in Washington, D.C., the ISTC draws attention to emerging opportunities in Illinois R&D and innovation initiatives that involve multiple universities, federal laboratories, and private companies. These forums help drive awareness and support for key innovation legislation and funding and secure support for large-scale research projects, advanced science facilities, and infrastructure in Illinois. The ISTC organized three Science & Technology Leadership Forums in 2013, attracting more than 125 members of the Illinois congressional delegation and staff. Each event showcased the work of our member organizations and partners and emphasized the importance of funding for basic and applied research and the commercialization of science and technology.

2013 Science & Technology Leadership Forums

February Energy, Smart Grid, and Energy Storage, with Argonne National Laboratory, Energy Foundry, University of Illinois, and Illinois Institute of Technology June Innovation and National User Facilities, with AbbVie, Advanced Photon Source at Argonne National Laboratory, Eli Lilly, Fermi National Accelerator Laboratory, Northern Illinois University, University of Chicago, and University of Illinois November Biomedical Technology Commercialization, with Chicago Innovation Exchange at University of Chicago, EnterpriseWorks Chicago at University of Illinois, Horizon Pharma, iBIO Institute, and IllinoisVENTURES, LLC

Science & Technology Leadership Forum on Biomedical Technology Commercialization. Left to right: Robert Metz, Horizon Pharma; Nancy Sullivan, IllinoisVENTURES, LLC; Kapila Viges, EnterpriseWorks Chicago; U.S. Rep. Randy Hultgren (IL-14); Barbara Goodman, iBIO Institute; Jeff Margolis, ISTC; John Flavin, Chicago Innovation Exchange; and Mark Harris, ISTC.

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Illinois Science & Technology Coalition Annual Report 2013

America COMPETES Throughout 2013 the ISTC was instrumental in championing the reauthorization and funding of the federal Regional Innovation (RI) program. This program authorized through the America COMPETES Reauthorization Act of 2013 supports innovation clusters, proof-of-concept centers, and other technology commercialization initiatives that promote technology-based economic development. On top of participation in State Science & Technology Institute (SSTI) Congressional briengs on the positive outcomes of existing RI program awards, the ISTC worked with U.S. Rep. Randy Hultgren (IL-14) to build bipartisan support for a RI program appropria tions support letter resulting in the rst dedicated funding line for the program as part of the recent enacted appropriations bill. Immigration reform Over the next ve years, Illinois economy is projected to generate nearly 320,000 new jobs in science, technology, engineering, and math (STEM), up from 266,000 in 2008. Strengthening our talent pipeline is crucial to support continued economic growth. In Illinois, more than 40 percent of masters or doctoral graduates in STEM subjects such as computer programming, data analysis, engineering, and biomedicine are temporary immigrant residents. Due to current immigration policies, thousands of highly qualied specialists are unable to obtain work visas each year after graduating, preventing them from applying their education to promote innovation where they earned their degree. Foreign students could signicantly increase our talent pipeline, particularly in the elds of STEM and entrepreneurship. The ISTC is playing an active role in the push for immigration reform to ensure that Illinois and the United States maintain a position of leadership and competitiveness in the global economy. ISTC President and CEO Mark Harris, a naturalized U.S. citizen, and former ISTC Board Chair John Anderson, President of the Illinois Institute of Technology, joined a high-level group of leaders on the Illinois Business Immigration Coalition Steering Committee and participated in a number of panel discussions and roundtables to advance immigration reform. In October, Harris joined a group of more than 600 business, faith, and community leaders in Washington, D.C., including more than 30 from Illinois, to push Congress to update immigration laws. The y-in was part of Americans for Reform: Immigration Reform for our Economy, Faith, and Security, sponsored by the Partnership for a New American Economy, the Bibles, Badges and Business for Immigration Reform network, FWD.us, and the U.S. Chamber of Commerce.

Americans for Reform y-in in October. Left to right: Mike Huffstetler, CEC and 1871; Mark Harris, ISTC; and tech entrepreneur Todd OHara.

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Illinois Science & Technology Coalition Annual Report 2013

Champion of Science Award and entrepreneurship roundtable In a ceremony organized by the ISTC at 1871 in November, U.S. Representative Dan Lipinski (IL-3) received the Science Coalitions Champion of Science Award in recognition of his strong commitment to providing funds for basic research, which keeps the United States and Illinois at the forefront of scientic discovery and technological innovation. The event brought together leaders from three major universities and Argonne National Laboratory. Northwestern University President Morton Shapiro, University of Chicago President Robert Zimmer, Argonne Director Eric Isaacs, and University of Illinois Associate Vice President Caralynn Nowinski jointly presented the award to Rep. Lipinski. After the ceremony, Rep. Lipinski met with leaders in the research and technology communities for a roundtable discussion on the Illinois innovation economy. The group discussed opportunities for the federal government to strengthen entrepreneurship and technology commercialization by providing strong and consistent funds for basic research and technology transfer.

Mark Harris, ISTC, Associate Vice President Caralynn Nowinski, University of Illinois, Director Eric Isaacs, Argonne, Rep. Dan Lipinski, President Morton Shapiro, Northwestern University, and President Robert Zimmer, University of Chicago (from left).

U.S. Rep. Dan Lipinski (IL-3) participates in an entrepreneurship roundtable with research and technology leaders, including ISTC board members, John Flavin and Linda Darragh (from right).

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Illinois Science & Technology Coalition Annual Report 2013

State advocacy In April, the ISTC hosted its annual innovation forum with a roundtable discussion and breakfast reception at the Executive Mansion in Springeld. In his opening speech, Governor Quinn proclaimed April 11 Innovation Day in Illinois. The event brought together ISTC members and partners, the Illinois Innovation Council, and members of the Illinois General Assembly to discuss the states progress in todays growing innovation marketplace. The roundtable highlighted the states progress in the sectors of biotechnology, energy storage, research parks, smart grid entrepreneurship, and STEM education. Innovation Days featured speakers included Jeffrey Chamberlain of the Joint Center on Energy Storage Research at Argonne; Jason Blumberg of Energy Foundry; David Baker of the Illinois Institute of Technology; and Kemi Jona of Northwestern University.

University Technology Park Executive Director David Baker, IIT (above), spoke at the ISTCs annual innovation forum, which brought together ISTC members and partners, Governor Quinn, and members of the Illinois General Assembly.

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Illinois Science & Technology Coalition Annual Report 2013

Attracting and retaining top talent

A foundational element for a vibrant innovation ecosystem is a deep pool of well-educated workers with strong industry-relevant skills. The ISTC is committed to cultivating Illinois STEM initiatives, which give students the resources and access they need to build knowledge in science, technology, engineering, and mathematics and gain access to real-world learning opportunities.

Illinois Science & Technology Institute The Illinois Science & Technology Institute (ISTI) is a tax-exempt 501(c)(3) public charity, which serves as a complementary effort to the ISTC to focus on the education and the development of Illinois STEM talent pool. The ISTI seeks to advance scientic understanding and technological innovation in Illinois through discovery, education, invention, and partnership.

Research & Development (R&D) STEM Learning Exchange In 2012, the ISTI was chosen to lead the R&D STEM Learning Exchange as part of Illinois Pathways Race to the Top program. This initiative is a public-private partnership intended to better connect students to careers in STEM elds. Boasting more than 40 industry and nonprot partners, the R&D STEM Learning Exchange launched its 201314 pilot year with 14 high schools. These schools include Chicago Vocational Career Academy, Hinsdale Central High School, Illinois Math and Science Academy, Instituto Health Sciences Career Academy, Lane Tech College Prep, Lindblom Math and Science Academy, Muchin College Prep, Niles North High School, Oak Park and River Forest High School, Palatine High School, Thornton High School, Urbana District 116, Waukegan High School, and Wheeling High School. The Exchange aims to increase and enhance the number of authentic, inquiry-based learning experiences for Illinois students and enable greater completion of postsecondary education in R&D elds through the following three initiatives. Mentor Matching Engine (MME) is an invitation-based platform, developed in partnership with the Illinois Math and Science Academy and Northwestern University, that brings together mentors, students, and teachers for personalized, inquiry-based learning in STEM elds. By connecting mentors and students electronically, the MME facilitates high-quality experiences for students and mentors alike in a safe and secure environment while eliminating geographic barriers. In its rst year of beta-testing, the MME already reaches more than 100 mentors and 100 students.

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STEM Challenges connect high school students with external partners to solve complex, real-world problems. In 2013-2014, students are working with Motorola Solutions, Baxter, The Greatest Good, Northrop Grumman, and the Illinois Institute of Technologys Institute for Food Safety and Health on addressing specic challenges. By examining real-world industry problems and networking with outside professionals, students are able to apply their learning to authentic industry issues and experience rsthand a variety of career opportunities. R&D STEM Resource Repository (stemlearningexchange.org) is a place where students and teachers can connect to R&D focused programs and resources to enhance hands-on learning and create authentic research experiences. In the repository you will nd assets from R&D STEM Learning Exchange partners including internships, professional development opportunities, curricula, events, and many other types of programs to bring research and development to todays students and teachers. The R&D STEM Learning Exchange resource repository brings together a community of practice around high-quality programs and opportunities for students and teachers. Nanotechnology This past year, the state made two important investments in our nanotechnology education infrastructure. Wheeling High School In October, Governor Quinn announced a $250,000 investment in Wheeling High School for equipment that will prepare students for careers in nanotechnology. The governor welcomed U.S. Secretary of Education Arne Duncan to the school to tour its cutting-edge nanotechnology lab, whose state-of-the-art equipment mirrors the facilities at top higher-education institutions. Nanotechnology courses housed at the lab will be open to all 12,000 students in Township High School District 214. Wheeling is also incorporating nanotechnology programming into its STEM Summer Camp, which offers weeklong courses in STEM subjects for area students in grades one through eight.

Governor Pat Quinn, U.S. Education Secretary Arne Duncan, and U.S. Rep. Brad Schneider (IL-10) at the October launch of the nanotech lab at Wheeling High School.

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Illinois Science & Technology Coalition Annual Report 2013

Oakton Community College In December, local and state elected ofcials toured the Oakton Community College nanotechnology lab and training center as part of an ofcial announcement by the Illinois Department of Commerce and Economic Opportunity (DCEO) of a $500,000 grant to support the labs construction and operation. Housed at the Illinois Science + Technology Park (IS+TP) in Skokie, the new nanotech lab is the cornerstone of the Nanotechnology Education, Employment, and Economic Development Initiative (NE3I), a partnership among the Village of Skokie, Oakton Community College, the IS+TP, and NSERVE, a consortium of nine local high schools in the Oakton Community College district representing approximately 24,000 students. The NE3I program provides training for high school and community college students and faculty to operate the laboratorys nanotech equipment and develop a curriculum for a four-course nanotechnician certication program. The announcement and tour of the new lab were attended by Skokie Mayor George Van Dusen, Oakton Community College President Margaret B. Lee, Forest City Science + Technology Group Senior Vice President for New Business Development Michael Rosen, DCEO Director Adam Pollet, ISTC President and CEO Mark Harris, and Senator Ira Silverstein (IL-8).

DCEO Director Adam Pollet spoke in praise of the states $500,000 investment in the Oakton Community College nanotechnology lab.

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Illinois Science & Technology Coalition Annual Report 2013

Media Impressions
Quinn taps UI Labs to lead manufacturing research effort
December 2013

U.S. Rep. Lipinski, research leaders link innovation to economy

November 2013

Illinois universities reap greater private research dollars

November 2013

 Universities and private groups opening tech hubs to breed next generation of startups
October 2013

Its Time For Chief Startup Ofcers

July 2013

Alliances to get push from two sides

June 2013

Smart grid investment group powers up

February 2013

U of I to open Chicago manufacturing institute

February 2013

Shedd Aquarium looks to slice energy bill

January 2013

Battery dream team will spark innovations in cars, grid

January 2013

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Illinois Science & Technology Coalition Annual Report 2013

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Illinois Science & Technology Coalition Annual Report 2013

ISTC members
Abbott Laboratories AbbVie Argonne National Laboratory Astellas Pharma US, Inc. Baxter International Chicagoland Chamber of Commerce Chicagoland Zoological Society: The Brookeld Zoo Cleversafe Comcast DePaul University Eaton Corporation Exelon Corporation Fermi National Accelerator Laboratory Illinois Science + Technology Park (Forest City) GlaxoSmithKline Google GTL Resources Horizon Pharma Illinois Business Roundtable Illinois Institute of Technology Illinois Math and Science Academy Illinois Medical District John G. Shedd Aquarium Motorola Mobility Motorola Solutions Northern Illinois University Northrop Grumman Northwestern University Southern Illinois University Takeda Pharmaceuticals University of Chicago University of Illinois Willdan Group, Inc.

ISTC partners
Biotechnology Industry Organization Broadband Illinois Chicago Council on Science and Technology Chicago Innovation Awards Chicago Innovation Mentors Chicago Metropolitan Agency for Planning Chicagoland Entrepreneurial Center Citizens Utility Board Clean Energy Trust Energy Foundry Illinois Biotechnology Industry Organization Illinois Department of Commerce and Economic Opportunity Illinois Science and Energy Innovation Foundation Illinois Technology Association IllinoisVENTURES, LLC National Center for Agricultural Utilization Research National Corn to Ethanol Research Center National Governors Association Pharmaceutical Research and Manufacturers of America Smart Chicago Collaborative State Science and Technology Institute TechAmerica World Business Chicago

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Illinois Science & Technology Coalition Annual Report 2013

Illinois Venture Capital Association

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