1	THE VIRGINIA TECH CORPORATE RESEARCH CENTER (CRC) Joe W. Meredith, Ph.D. President Updated 1/25/05
2	THE CRC HAS BEEN RECOGNIZED AS AN OUTSTANDING PARK.
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4	THE CRC’S MISSION IS:
5	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 $18 million. The current asset valuation of the properties at the CRC is $75 million.
6	THE GROWTH OF THE PARK CONTINUES TO BE EXCEPTIONAL. There are currently 121 tenants. The total population is over 1830. The park added 200 people and 13 new tenants last year. The private company failure rate is less than 3% per year.
7	PRIVATE TENANTS COME FROM A VARIETY OF SOURCES.
8	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
9	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.
10	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
11	THE CRC ONLY BUILDS QUALITY OFFICE AND LAB SPACE. Currently have 18 completed buildings totaling 635,000 sf. Currently constructing one building - a 45,000 sf multi-tenant incubator building for VT KnowledgeWorks. Total build-out is planned to be 25 buildings totaling 1 million sf housing 3,000 employees.
12	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
13	THE CRC ASSISTS ITS TENANTS IN FINDING QUALIFIED EMPLOYEES. Applicant resumes are distributed to the park electronically. Many student teams from Business and Engineering perform free studies. The CRC writes letters to targeted alumni. Job openings are posted on the CRC website and to the alumni listserv. Have HR service provider.
14	THE CRC CREATES RESEARCH OPPORTUNITIES FOR VT. Over $1,000,000 in annual industry-sponsored research at Virginia Tech comes from companies in the CRC. VT performs about $270 million per year in research. VT is ranked 4^th in patents issued among non-medical schools and has $2 million in annual IP income.
15	THE CRC PROVIDES BUSINESS ASSISTANCE TO TENANTS. A full-time staff member brokers service between tenants and service providers who may be: Faculty/Students Private or public consultants Retired executives. Costs are subsidized by various organizations.
16	THE CRC PROVIDES BUSINESS ASSISTANCE TO TENANTS (CONT.). The CRC manages a high-bandwidth (45 meg.) telecommunications infrastructure on a 1 gigabit backbone. The CRC provides access to venture capital funds. The CRC provides formal and informal training for companies.
17	THE CRC IS LOCATED IN A HUBZONE. Significant benefits are available to CRC tenants in contracting with the Federal government, which has mandates to award contracts to HUBZone enterprises, both directly and through large prime contractors. HUBZone contracts are structured to benefit firms in several ways: Competitive bids – bid only among HUBZone firms Sole-source – if only one qualified bidder 10% price evaluation preference All subcontracting plans must include HUBZone goal.
18	KNOWLEDGE WORKERS EXPECT AMENITIES. On-line Café Fitness Center Large intramural sports program and other recreational amenities
19	SUCCESSFUL RESEARCH PARKS MANAGE CULTURE. Facilitate networking and synergy. Provide appropriate amenities. Ensure homogeneity of personnel. Honor heroes. For example, Community Impact Program
20	THE CRC IS FINANCIALLY CONSERVATIVE. New buildings are not built without a good indication of demand. The occupancy rate has averaged more than 90% over the past 5 years. The Foundation finances tenant improvements over the term of the lease at an economical rate.
21	TECHNOLOGICAL DIVERSITY REDUCES FINANCIAL RISK.
22	THE ENTIRE CRC IS NOT AN “INCUBATOR.” The CRC does not offer inexpensive space. There are no exit criteria (except no mass manufacturing). However, tenant services include: Conferencing space Business equipment (copiers, fax, projectors) Faculty privileges on campus.
23	A CRC PRIORITY IS ASSISTING THE UNIVERSITY IN TECH TRANSFER. The CRC assists an average of 3 faculty members a year in starting up companies based on university-created technology. (30+ thus far) The CRC has developed an incubator program called VT KnowledgeWorks to create companies that will license VT intellectual property or involve community entrepreneurship.
24	VT KNOWLEDGEWORKS IS THE CRC’S INCUBATOR PROGRAM. Helps inventors, researchers, entrepreneurs, and intrapreneurs design, build, and grow successful companies.
25	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
26	ANOTHER NEW INITIATIVE – VITAL Virginia Israel Tech Alliance Program to position the CRC as the port of entry for Israeli companies graduating from Israeli incubators. Leverages the various programs and services of the CRC, including VT KnowledgeWorks to provide maximum support of early stage companies.
27	ANOTHER NEW INITIATIVE – TASK Tech Alliance with South Korea South Korea building a pre-incubator for the CRC called Corporate Research Center – Korea in Seoul. Will house companies prior to coming to the CRC. Companies will learn American business practices and culture. Commitment is for 5 companies per year for 3 years.
28	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.
29	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.
30	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).
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