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Federal and Private Money Flowing into S.C. to Match the State's Centers of Economic Excellence Investment
6/25/2007

FOR IMMEDIATE RELEASE

Contact:  Clare Morris, 803.413.6808 or clare@claremorrisagency.com

75 percent of state's investment has been matched by federal or private funds.

As of late May, South Carolina's Centers of Economic Excellence (CoEE) program has hit some major milestones.  Of the $122 million in state funds that has been appropriated for the program, $91.9 million in matching funds�75 percent�has been pledged from federal or private sources.  What's more, 50 percent of the matching money ($63.1 million) has already been received from the federal or private investors.

The milestones are significant because the CoEE program, created by the S.C. General Assembly, is designed to act as a catalyst that fuels non-state investment in South Carolina research.  State funding for the program is supported by S.C. Education Lottery proceeds and every state dollar must be matched dollar-for-dollar by an industry partner, federal source, municipality or foundation.

�South Carolina's investment in research and innovation is paying off,� says Paula Harper Bethea, acting chair of the CoEE Review Board, which provides oversight to the program.  �CoEE has been a magnet for outside investment that will help drive our economy, create higher paying jobs, and raise the standard of living in South Carolina.� The Centers of Economic Excellence are in research fields that leverage South Carolina's strengths and hold promise for knowledge-based job creation. 

Of the 30 current centers, 18 have received pledges for all of their required non-state funding.  Three centers have secured partial funding and nine are actively working to identify investors.  Still in need of funding are centers such as Electron Imaging, Supply Chain Optimization & Logistics, Urban Ecology & Restoration, Molecular Nutrition, Solid Oxide Fuel Cells, Childhood Neurotherapeutics, Molecular Proteomics in Cardiovascular Disease & Prevention, Health Care Quality, Vehicle Electronics Systems, Clinical Effectiveness & Patient Safety, and Advanced Fiber-Based Materials.

As Bethea points out, companies or organizations that invest in CoEE and fund a center have the opportunity to form a strategic partnership with a research university and a world-class researcher or �Endowed Chair� who leads a Center of Economic Excellence.  Investors in the program so far include BMW, Michelin, Timken, the Duke Foundation, Health Sciences South Carolina, and several other companies and foundations.

More good news for CoEE is that several centers yet to receive state funding have already secured private-sector match dollars in advance.  For example, on May 1 Santee Cooper and the Electric Cooperatives of South Carolina announced their pledge of $5 million to establish a Center of Economic Excellence at USC that will research eco-friendly electricity production from coal.  In addition, global medical devices company Smith & Nephew has already committed a major match to a Rehabilitation & Reconstruction Sciences CoEE if one is created.  Both of these prospective centers are among the ones being evaluated for state funding by the CoEE Review Board at their June 18 meeting.  Even if the universities do not receive funding through the CoEE program, however, the companies have said that they are still dedicated to supporting the economic development initiatives of South Carolina's research universities.

"The CoEE cycle has become institutionalized at our university," says Vice President for Research and Health Sciences at the University of South Carolina Harris Pastides.  "Each year, we evaluate our best and brightest ideas, develop business partnerships to support them, and hope to have our proposals receive the endorsement of national experts and the CoEE Review Board.  I believe that this year's centers are as strong as any we have been awarded and this bodes well for South Carolina's economic future."

 �The success of the CoEE program to date is good news for the economic future of South Carolina and the health of the knowledge-based economy,� says Clemson University Vice President for Research and Economic Development Chris Przirembel. �Clearly the private sector's investment in this program validates its economic development potential. New, high paying jobs have already been attracted to the State.�

�The Center of Economic Excellence program has catalyzed statewide collaborations and fostered a new spirit of cooperation among Clemson, MUSC, USC, and their private sector and federal partners,� says MUSC Vice President for Academic Affairs and Provost John Raymond. �The program has given the research universities the wherewithal to recruit world-class scientists who will lead economic development in South Carolina. New innovations generated by the program will yield a great return on investment.�

About CoEE

The S.C. Centers of Economic Excellence program (commonly known as �Endowed Chairs�) was established by the South Carolina General Assembly in 2002.  The legislation authorizes the state's three public research institutions, Clemson, MUSC, and USC, to use S.C. Education Lottery funds to create centers of excellence in research areas that will advance South Carolina's economy.  The state funds must be matched dollar-for-dollar with non-state funds to be used.  The program also provides funding for CoEE Endowed Chairs, world-renowned scientists who lead the centers of excellence.  By investing in talent and technology, the CoEE program is designed to help fuel South Carolina's knowledge economy, resulting in higher paying jobs, a stronger economy, and an improved standard of living.