Kenan Institute of Private Enterprise (KIPE) Initial Mission (1985): Have a substantial and lasting impact on the business and commercial

community of North Carolina, the United States, and, eventually, the international markets as well; encouraging cooperative efforts among private enterprise, academics and government.

1 Source: KIPE archives; KIPE website

Index: ◦ Research and development inputs ◦ Risk capital and entrepreneurial infrastructure ◦ Human capital investment ◦ Technology and science workforce ◦ Technology concentration and dynamism Technology and science are leading the economic recovery: ◦ Massachusetts ranked first—again! ◦ Competition at the very top makes it difficult to break into the top 10. ◦ Regions that invested in innovation and education are emerging from the recession stronger. NC’s -8 decline reverses an upward trend since 2004:

◦ NC dropped 17 places in risk capital and entrepreneurial infrastructure composite

◦ NC fell from 9th to 34th in venture capital growth ◦ NC fell from 3rd to 28th in number of net business starts. North Carolina: Rank 2012: 21 Rank 2010: 13 2

North Carolina had the biggest drop (-8) of any state in the Nation

3

0

20

40

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80

100

120

140

160

180

200

$0

$100

$200

$300

$400

$500

$600

$700

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$900

$1,000

WA TX CO IL PA NJ

VA UT

OH

MD GA MI

MN AZ FL NC CT OR RI WI

TN IN DC KS NH SC OK

NM AL KY MO ID WV

ME

NE LA MS

DE NV AR IA MT VT ND HI PR

Mill

ions

VC Investment and Number of Deals by State* FY 2012

NC Ranks 19th in VC Funding ($169M) And 17th in # of Deals (35)

# of

Dea

ls

Tota

l VC

Inve

stm

ent

*CA (~$14B and 1521 Deals), NY (~$1.9B and 331 Deals), and MA (~$3B and 410 Deals) not included for display purposes

Triangle startup fundraising hits 15-year low in 2012 By David Ranii - dranii@newsobserver.com Published in: Local/State

Source: National Venture Capital Association

4

Corporate research labs that drove American industrial leadership

in the twentieth century have largely been dismantled

Today, our Nation’s primary source of new knowledge and skilled pioneers is our research universities

Silicon Valley, HWY 128, San Diego, Austin, NYC, RTP, Phila/Baltimore

Federal R&D budget is the fuel for innovation in the USA 35% of the federal R&D budget goes to 25 universities

Research output consolidating; 24 universities share 42% of overall

US research output. News of the Week, Science 330 (2010) 1032 “Startups aren’t everything when it comes to job growth. They’re

the only thing.” “The Importance of Startups in Job Creation and Job Destruction” Kauffman Foundation, July 2010

“Startups are a wonderful thing, but they cannot by themselves increase tech employment…[we need to} build factories, and hire people by the thousands.” Andy Grove: How America Can Create Jobs

Key regions in the USA, and other countries, are increasingly investing in their own competitiveness, especially in their research universities

America is driven by innovation

Source: Research Universities and the Future of America, National Academies, June 2012

5

Common characteristics Transformative visions Collaborative efforts across

“whole university” & region Clustering of Expertise Integration with

entrepreneurs, government & private sector

“Academic offerings to meet the needs of industry—including those in business, engineering, health sciences, and computer science—will be offered, tailored to the demands of the local economy.”

Source: institutes’ web sites & annual reports, news articles, Task Force analysis

6

Top 20 Universities in Federal Research Funding FY 2011

208 NC A&T 221 UNC-Greensboro 229 UNC-Charlotte 234 East Carolina U 245 UNC-Wilmington 305 NC Central 458 UNC Asheville

Additional UNC System Universities FY 2011

1 Johns Hopkins U.* 2 U. of Washington 3 U. of Michigan at Ann Arbor 4 U. of Pennsylvania 5 U. of Pittsburgh, main campus 6 Stanford U. 7 U. of California at San Diego 8 Columbia U. 9 U. North Carolina at Chapel Hill 10 U. of Wisconsin at Madison 11 U. of California at Los Angeles 12 U. of California at San Francisco 13 Duke U. 14 Yale U. 15 Harvard U. 16 Washington U. in St. Louis 17 Penn State U. at University Park 18 M.I.T. 19 Cornell U. 20 U. of Minnesota-Twin Cities 72 Wake Forest U. 80 NC State U.

Sources: National Science Foundation (NSF); http://www.newsobserver.com/2012/03/29/1966185/ncsu-slowing-growth-aiming-for.html#storylink=cpy

Only two universities in top 25: ◦ without Schools of Engineering ◦ without Schools of Medicine

NC State slipped 33 slots in federal funding ◦ NCSU’s enrollment grew nearly 20 percent in

the decade ending in 2010 ◦ Number of tenure-track faculty increased just

1 percent

Convergence

• National Academies study

• The coming together of different fields of study through collaboration and the integration of approaches that were originally viewed as distinct and potentially contradictory.

• “…convergence is a blueprint for innovation…”

8

$0

$2

$4

$6

$8

$10

$12

$14

Mill

ions

Average: $6.4 M

Total Research Expenditures per Patent FY 2011

*Top 20 in Federal Funding in 2011 + WF (#79) & NC State (#69)

Source: AUTM (Association of University Technology Managers) FY 2011

$0

$20

$40

$60

$80

$100

$120

$140

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$200

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ions

9

Average: $35M

Source: AUTM FY 2011

License Income FY 2011

10

0%

5%

10%

15%

20%

25%

30%

Average: 8%

Source: AUTM FY 2011

% of Total Research Expenditures from Industrial Relations FY 2011

N/A

**

**Data not available

2016 Objectives

Mission We are a partner for innovative

entrepreneurship

Vision To elevate North Carolina as a

global leader in innovation and entrepreneurship

11

Connect

Create

Accelerate Collaboration

Innovation

Diversity

Priorities

Leverage Intellectual Capital for NC Economic Development

Expand Multi-University Research Translation

Increase UNC-CH Entrepreneurship

Values

Objective 1: Increase UNC-CH entrepreneurship ◦ 1: Attract additional investment in UNC-CH research and commercialization

◦ 2: Support increased commercialization of UNC-CH technology

◦ 3: Connect and stimulate UNC-CH entrepreneurial efforts

◦ 4: Identify and champion strategic needs for entrepreneurship

Objective 2: Expand multi-university research translation ◦ 5: Support faculty to engage in multi-university collaboration

◦ 6: Support structural integration between universities

◦ 7: Create opportunities for students to collaborate across universities

Objective 3: Leverage intellectual capital for NC economic development ◦ 8: Provide direct assistance to entrepreneurs

◦ 9: Develop technological solutions to pressing NC challenges

◦ 10. Build a civic and government entrepreneurial climate 12

Frank Hawkins Kenan Institute the ‘Front Door’ for UNC Entrepreneurs

13

Patent

Landscape

Assess Markets

Traverse COI & Facilities

Agreements

Seek Funding & Create

Prototypes

Connect & Build Teams

Advise & Support Venture

14

America Invents Act ◦ First to file ◦ Filing a patent application

after a public disclosure very risky

◦ Bottom line: It’s a race to the patent office!

◦ UNC-CH policy and efforts need to change more than ever to be competitive.

15

16

17

Commercialization Task Force COI Strategic Planning ◦ Department of Applied Physical Sciences ◦ Department of Biomedical Engineering

Infuse entrepreneurship into additional areas across campus ◦ Sport ◦ Public Health

18

Recommendation: UNC should declare that the increased commercialization and impact of our research is a priority for our university, for our state and for our nation.

We propose a x % allocation from the F&A each year. Rationalized to • Research expenditures • IP generation and commercialization activities • Avoids the annual anxiety related to financial commitment

Innovation, Entrepreneurship and Economic Development Initiative Compliance Patents Business Development Office of Technology Compliance

Patent Assessment & Protection Office

Business Development & Licensing Office

• Bayh-Dole Act compliance • Greater awareness of invention

disclosure process through web presence, etc.

• MTA’s with Academic Entities

• Assessment o Patentability & Strategy o Landscape o Market Assessment

• Decision Process o Review and decision by

Committee of Deans and Chairs (or designates)

o In the case of “no”, option to faculty exclusively

• New Company Formation • Industrial Alliances

(collaborative deals to generate new IP)

• Out-license IP to Industrial Entities

• Clinical Trials • Staff skill sets to include legal

and business development

19

Department of Applied Physical Sciences ◦ First new Department in

the C&S since Computer Science ◦ Critical initiative

internally at UNC-CH ◦ Critical bridge to NC

State and Duke ◦ Unfounded initiative

20

Values: ◦ Teamwork, discipline & drive ◦ Leadership and role playing ◦ Fairness

Title IX: Equal Participation Opportunities

Student achievement from all socio-economic

backgrounds ◦ Red-shirt year in Science at Duke

Strategic Planning

21

Entrepreneurship Minor: ◦ New track in Sport

Economic Impact: ◦ Inventory of NC Sport-Related Businesses

Collaboration: ◦ Sport Analytics Summit

Celebration: ◦ Sport Innovators & Entrepreneurship Awards

(“The SpIEAs”)

Kenan Institute of Private Enterprise (KIPE) Initial Mission (1985): Have a substantial and lasting impact on the business and commercial

community of North Carolina, the United States, and, eventually, the international markets as well; encouraging cooperative efforts among private enterprise, academics and government.

22 Source: KIPE archives; KIPE website

23

•Assoc. Professor, Director - Consulting Program and STAR Program at UNC Kenan-Flagler •Consulting Experience - McKinsey & Co., and PwC •Author of “The McKinsey Engagement” & strategy

process, entrepreneurship, and decision making articles

Paul Friga, UNC PhD, MBA Project Advisor

•B.A., Wesleyan University; UNC KFBS MBA 2013, Duke Sanford MPP 2013 •Kenan Institute Leadership Fellow •Starting at Boston Consulting Group in 2013 • Interned at CEI, Maine CDFI in summer 2012

Bayard (Bay) Love Team Leader

•UNC B.A., 2013, Global Studies and Spanish major •Morehead-Cain Scholar •Editor-in-chief, UNC Undergraduate Law Journal •Starting at Capgemini Consulting in fall 2013

Charlotte Lindemanis Undergraduate

Analyst

•UNC B.S., 2013, Business Administration • Interned at G.E. Healthcare with Financial Management

Program •Starting at Bain & Company in 2013

Matt Burton Undergraduate

Analyst

24

Mary Napier

Judith Cone

Zishan Haroon

Thomas Stith

Genny King

25

Ted Zoller

Jean Elia

Deborah Stroman

Buck Goldstein

Nick Black

Mark Little

Cynthia Reifsnider

Natalie Birdwell

Geordy Johnson

Phase 1 – Assessment

(Sep 10-Oct 22)

•Background: •Internal

& external surveys •Benchmark •Interviews •Summary SWOT

Phase 2 – Visioning

(Oct 23-Nov 19)

•Draft Strategy

Statements: •Mission / Values •Vision •Priorities •Key Metrics

Phase 3 – Implementation

(Nov 20-Feb 4)

•Implementation

Plan: •Goals •Objectives •Actions •Supporting

metrics

26

AC Meeting 1 10/22

AC Meeting 2 11/19

AC Meeting 3 1/28

Campus Lowry Caudill, BOT and e-ship minor Office of the Chancellor Holden Thorp, Chancellor KFBS Jim Dean, Dean Jack Evans, Professor Emeritus Pharmacy Bob Blouin, Dean Office of Research Barbara Entwisle, VC of Research Jacki Resnick, Director, Office of Res Dev College of Arts and Sciences Karen Gil, Dean

School of Medicine Shelley Earp, Director LCCC Bill Roper, Dean, VC Medical Affairs School of Journalism Susan King, Dean School of Public Health Barbara Rimer, Dean Julie MacMillan School of Education Bill MacDiarmid, Dean

27

Duke University Eric Toone, Duke Innovation and E-ship Baker McKenzie Marc Paul Kevin O’Brien

KIPE BOT members Agnes Beane Amit Singh, CEO, Spectraforce Ping Fu, CEO, Geomagic North Carolina State University Ruben Carbonell, Professor and Director, William R. Kenan, Jr. Institute for Engineering, Technology and Science

Randy Avent, Professor & AVC for Research

Research Triangle Institute E. Wayne Holden, President Research Triangle Foundation Bob Geolas, President and CEO Dick Daugherty, Board Member Rex Healthcare David Strong, President

Regional Entrepreneurs Neal Fowler, CEO, Liquidia Bill Starling, CEO, Synecor Joe Davy, CEO, Buystand Jud Bowman, CEO, Appia Kimberly Jenkins, former Senior Advisor for Innovation and Entrepreneurship at Duke

Venture Capital Art Pappas, Pappas Ventures Steve Nelson, Wakefield Group Christy Schaffer, Venture Partner, Hatteras Bob Ingram, General Partner, Hatteras Venture Partners

Brent Jones, Northgate Capital Charles Merritt, founder, Parish Capital Government Governor Beverly Perdue Don Hobart, Chief Advisor for Business & Economic Development, Office of Governor Perdue

28