1	THE VIRGINIA TECH CORPORATE RESEARCH CENTER (CRC) Joe W. Meredith, Ph.D. President Updated 1-23-08
2	THE CORPORATE RESEARCH CENTER (CRC) IS: A high-technology research and development park adjacent to Virginia Tech. An economic development driver of the local economy by creating and attracting companies. A program to help transfer intellectual property from the university to the private sector.
3	THE CRC HAS BEEN RECOGNIZED AS AN OUTSTANDING PARK.
4	WHY HAS THE CRC BEEN SUCCESSFUL? Virginia Tech and Foundation commitment Entrepreneurial, risk-taking climate in Blacksburg Quality of home and work life Value proposition based on programs/services rather than real estate.
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6	THE CRC’S MISSION IS:
7	CRC IS A FOR-PROFIT SUBSIDIARY OF THE VT FOUNDATION. Investments: Federal: $600,000 in 1985 $2,000,000 in 2002 State: $0 Foundation $4,000,000 The Foundation’s equity in the CRC is about $23 million. The current asset valuation of the properties at the CRC is $88 million.
8	THE CRC CONSISTS OF: 140 private high-technology companies and research centers 2000 employees 23 buildings totaling 750,000 square feet 120 acres of land that is 80% occupied.
9	PRIVATE TENANTS COME FROM A VARIETY OF SOURCES.
10	THE CRC HAS PROGRAMMATIC AND FINANCIAL GOALS. 1. Enhance reputation of VT 2. Transfer technology to the private sector 3. Create quality facilities and jobs 4. Provide employment for students & faculty spouses 5. Enhance entrepreneurial environment 6. Create research opportunities within the university 7. Support and encourage start-up companies 8. Be financially successful
11	THE CRC HAS A UNIQUE OPERATING PHILOSOPHY. Downplay the real estate relationship by: Non-negotiation of rental and land rates Short-term leases Flexible relocations within the park. Create programs for companies to be more successful. Leverage university/Foundation resources.
12	PROGRAMS HELP COMPANIES ACHIEVE SUCCESS. Business Assistance: Develop business plans Financial Assistance: Find capital Training: Improve employees Personnel: Hire best employees Telecommunications: Best broadband service Affiliates: Provide product and service discounts VT Partnership: Use of university assets Networking: Leverage others International: Find partners
13	PROGRAM 1: BUSINESS ASSISTANCE A full-time staff provides business services for tenants through providers who may be: Faculty/Students Private or public consultants Retired executives. Costs are subsidized by various organizations. Many student teams from Business and Engineering perform free studies.
14	PROGRAM 2: FINANCIAL ASSISTANCE The CRC provides a financial referral service to the CRC’s networks of angels, venture capitalists and bankers. The incubator program also has a pre-seed funding mechanism for start-up companies.
15	PROGRAM 3: TRAINING The CRC provides formal and informal training opportunities for tenant employees. Formal training includes lectures, seminars and workshops on various technical and business topics. Informal training includes product and service presentations.
16	PROGRAM 4: PERSONNEL The CRC has a human resources recruiter. The CRC hosts a human resources special interest group that provides a forum for HR managers to share ideas, learn from others, and build relationships. Applicant resumes are posted on-line and distributed to the park electronically. Job openings are posted on the CRC’s website.
17	KNOWLEDGE WORKERS EXPECT AMENITIES. On-line Café Fitness Center Large intramural sports program and other recreational amenities
18	PROGRAM 5: TELECOMMUNICATIONS The CRC manages a high-bandwidth (45 meg.) telecommunications infrastructure on a 1 gigabit backbone. Internet access is provided on a cost-recovery basis providing the maximum bandwidth for the lowest cost to companies.
19	PROGRAM 6: AFFILIATES The CRC has developed a group of affiliates that provide cost savings to companies on a wide ranges of products and services including: Rental cars Office furniture Benefits And many more.
20	PROGRAM 7: VT PARTNERSHIP Tenants benefit from an access card that provides faculty privileges and: Use of university facilities like the libraries. Discounts on various university events like cultural programs and athletic contests. Free bus transportation throughout community. And many more benefits.
21	PROGRAM 7: VT PARTNERSHIP (CONTINUED) About $1,000,000 in annual industry-sponsored research at Virginia Tech comes from companies in the CRC. VT performs about $320 million per year in research (2006). VT receives 115 disclosures per year and has 40 patents issued per year.
22	PROGRAM 8: NETWORKING The CRC hosts a number of networking opportunities and venues including: An annual banquet An annual picnic A golf tournament Various running and biking events A fitness center A restaurant
23	PROGRAM 9: INTERNATIONAL The CRC has developed international relationships in a number of countries. Partners in those countries help companies find customers, strategic partners, and financing. The CRC helps those partners build relationships with companies in the park and provide access to other resources available in the university.
24	PROGRAM 10: GENERAL TENANT SERVICES The CRC provides use of conference rooms throughout the park. A copying and shipping center is located in the park and all of the buildings have copiers. The CRC provides all signage in the park.
25	PROGRAM 11: COMMUNITY IMPACT PROGRAM The CRC helps companies establish relationships with charitable organizations. The CRC’s IT’s for Charity program matches information technology (IT) companies with charities that need minor IT work done.
26	PROGRAM 12: VT KNOWLEDGEWORKS The CRC has an incubator program that creates companies. 32 companies being launched. Incubator is a subsidiary of the CRC.
27	VTKW PROVIDES FRAMEWORK AND ASSISTANCE WITH: Business concept definition Funding, at both pre-seed and later stages Validate of market-worthiness Protection of IP Strategy formulation Preparation of a detailed business plan Management team definition and recruitment Counsel and support
28	THE CRC ONLY BUILDS QUALITY OFFICE AND LAB SPACE. Currently have 23 completed buildings totaling 750,000 sf. Currently developing four buildings - a 45,000 sf classified research building, a 77,000 sf Integrated Life Sciences Building, a 45,000 sf multi-tenant building, and a 35,000 multi-tenant building. Total build-out in Phase I is planned to be 27 buildings totaling 1 million sf housing 3,000 employees.
29	WE’VE BEEN BUSY THIS YEAR! Completed ICTAS-A Building (RB 23)
30	MORE BUILDINGS ARE UNDER CONSTRUCTION.
31	FINAL BUILDING IN PHASE I IS IN DESIGN.
32	CRC HAS A MEDICAL SCHOOL ON ITS CAMPUS. The Virginia School of Osteopathic Medicine opened in the fall of 2003. 600 students in 4-year program. 60,000 sf Phase I Planned 60,000 sf Phase II for research
33	THE CRC IS LOCATED IN A HUB ZONE. Benefits are available in contracting with the government, which has mandates to award contracts to HUB Zone enterprises, both directly and through prime contractors. HUB Zone contracts are structured to benefit firms by: Competitive bids – bid only among HUB Zone firms Sole-source – if only one qualified bidder 10% price evaluation preference All subcontracting plans must include HUB Zone goals.
34	THE CRC IS FINANCIALLY CONSERVATIVE. New buildings are not built without a good indication of demand. The occupancy rate is currently over 98%. The VT Foundation finances tenant improvements over the term of the lease at an economical rate.
35	TECHNOLOGICAL DIVERSITY REDUCES FINANCIAL RISK.
36	RESEARCH PARKS WILL CONTINUE TO SUCCEED IN THE FUTURE. Tech transfer is still a contact sport. Clustering outweighs competitive issues. Knowledge workers can work anywhere they wish. Seek the leading edge of technology Quality of work and home life Growth opportunities Continuing education.
37	WHAT’S THE FUTURE VISION FOR THE CRC? Blacksburg, VT, and the CRC become internationally recognized as a high-tech, high quality of life cluster. VT is nationally recognized for commercialization of research results. CRC is recognized as important contributor to VT’s mission (education, research, and outreach).
38	THE FUTURE OF THE CRC IS BRIGHT. Companies are conservatively managed with high-potential technologies. The research base of the university continues to grow at a high rate. The university has set a goal to be a top 30 U.S. research university. The CRC and community infrastructure are expanding.
39	THE FUTURE OF THE CRC IS BRIGHT (CONT.). The CRC is becoming recognized as the center of technology development (not deployment) in the state. Larger companies and international companies are being attracted to the park. Clusters are developing (e.g., biotech).
40	PHASE II HAS A DRAFT MASTER PLAN. Team working on acquisition and ownership strategies Many known unknowns
41	RECENT CRC TENANT HIGHLIGHTS New River Pharmaceuticals acquired by Shire Pharmaceutical for $2.6 billion. Intrexon received additional $25 million investment. Will hire up to 150 employee level. NBE product named one of 100 most technologically significant in US this year. SAIC moves in to manage classified research.
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