Innovation and US Manufacturing CompetitivenessTom Baruch

Founder, CMEA Capital

Innovators – SAMCEDA 2010 Awards of ExcellenceApril 30, 2010

Venture Capital Investments by Region, 2009

PWC/NVCA MoneyTree Report

Silicon Valley

1

Demise of Corporate Research

Bell Labs

Pharma Patent Cliff:

revenue coming off patent by 2012

Datamonitor

$ B

illio

n

2

Moore’s Law Meets Mendel’s Law

For the past 50 years Moore’s Law has driven innovation in electronics and biotechnology

R.H. Carlson (2010) Biology is TechnologyHarvard University Press

Tra

ns

isto

rs p

er

Ch

ip;

Ba

ses

/pe

rso

n/d

ay

Year3

Young Firms Account for the Bulk of Job Creation

Share of annualized net job creation in 2007.

Per

cen

t

Firm Age

Kauffman Foundation, U.S. Census Bureau

4

Jo

bs

(in

mi ll

ion

s)

Job Creation by Startups

Kauffman Foundation, U.S. Census Bureau

5

VC’s as Brokers of Innovation

Large companies

Universities

Venture Capital

Startups

Mid-size Companies

6

Leadership

7

Innovation AgendaInnovation Agenda

• K-12 education in reading, science and math

• Basic research

• R&D tax credits

• Lower corporate taxes

• Intellectual Property Protection

• Ambassadors of entrepreneurship

• Immigration

8

Energy Market is >$2 Trillion

A $1 Trillion Opportunity in Renewables/Efficiency

Demand• BRIC Economies• Geopolitics• Energy Security

Supply

• “Exponential Technologies”• Low Carbon Economy• Depletion of Non-Renewables• Global Scramble• Barrel of Oil @ $60-80

9

Urgent New Applications in Climate Change and Energy

Tremendous Need for Low Carbon Technologies

Carbon Mitigation Initiative, Princeton University

10

Convergence and Innovation

The next 50 years will require collaborative, global and multi-disciplinary processes

Innovation will happen at the borders where different disciplines meet

Energy and Materials Life Science

Information Technology

11

Applications Development

A Major Opportunity - Closing the Scale-Up Financing Gap

Commercial Products

Materials Discovery

Bottlenecks in Commercializing New Technology

10 years 10 years

Accelerated Commercialization will occur at the intersection of problems and markets

20 years

Intimacy of problems and markets is key

12

Optimized Final Product

Assay the Library

Representative Predictive

Automated: uses computational analysis

Create Library

Biological or Material Automated High-throughput

Synthesis Introduces Complexity and

Novelty

Select Winners

Build new library based on best-performing materials

Platforms enable discovery of new materials >1000x faster than traditional methods

Accelerating Materials Discovery with Combi Synthesis

Market input Market input

13

A Major Opportunity - Closing the Scale-Up Financing Gap Semiconductor Industry Challenge

New materials drive IC performance more than reductions in scale

14

Intermolecular’s Solution

Massively Parallel Processing Enables Faster Cycles of Learning

Many Processes/Wafer

OneProcess/Wafer

Conventional R&D Approach

Combinatorial R&D Approach

15

A Major Opportunity - Closing the Scale-Up Financing Gap Intermolecular: Representative Project

Using Moore’s Law to Accelerate Moore’s Law

Molecular Masking Layer for 32nm Copper Interconnect

4 Engineers5 Weeks

7,635 experiments (deposition conditions) on 60 molecular types

18,300 characterization experiments

2 Hits for Scale-up

Using conventional methods and the same number of people:

• It would have taken 5 years instead of 5 weeks to run this number of experiments.

• Only 140 process conditions could have been analyzed, instead of 7600

16

A Major Opportunity - Closing the Scale-Up Financing Gap

ProSARAnalytics

Wild typeEnzyme

EvolvedCommercial Biocatalyst

Codexis Technology Platform

17

A Major Opportunity - Closing the Scale-Up Financing Gap Cellular Engineering

Cellular EngineeringCellular Engineering

Transcriptomics

Proteomics

Metabolomics

Fluxomics

Genomics

InputInput ProductProduct

18

Innovation and Entrepreneurship will…Innovation and Entrepreneurship will…

• Leadership

Top to Bottom Commitment

• Platforms

Innovation Economy

Programs

• Policies

Market Intimacy

Experienced Entrepreneurs

Revitalize the Commercial and Economic Power of Silicon Valley

19