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CoEE Program making significant contributions to S.C. knowledge economy, new report documents
9/8/2008

FOR IMMEDIATE RELEASE
September 8, 2008
Contact: Clare Morris, 803.413.6808 or clare@claremorrisagency.com

COLUMBIA, SC--The South Carolina Centers of Economic Excellence (CoEE) Program, also known as "Endowed Chairs," is drawing significant research dollars to the state and driving the creation of technology-based start-up companies, according to a report being submitted today by the CoEE Review Board to the State Budget & Control Board.

The report focuses on the program's progress through 2007 and its
efforts to expand South Carolina's knowledge-based economy and create high-paying jobs.

Funded through the S.C. Education Lottery, the CoEE Program grants monetary awards to the state's three research universities (Clemson University, the Medical University of South Carolina and the University of South Carolina) to create Centers of Economic Excellence (CoEEs), along with associated endowed professorships, in technology-based fields that are likely to enhance the state's economy. Each lottery dollar invested must be matched dollar-for-dollar with funds from non-state sources. Non-state investors to date include BMW, Michelin, the Timken Company, 3M, Bank of America, ExxonMobil, Siemens, Smith & Nephew, the Duke Foundation, BlueCross BlueShield of South Carolina, Synthes, and GlaxoSmithKline, as well as a number of federal agencies, including the U.S. Department of Energy, the National Science Foundation and the U.S. Army.

By the end of the 2007 fiscal year the CoEE Review Board had approved 34 research centers and 61 endowed chair positions, 11 of which had been appointed. As the General Assembly envisioned, the program has reaped economic returns for the state: the report indicates that at the close of FY 2007, of the $144 million awarded by the Review Board, $89 million in non-state matches had been pledged, with more than $62 million in pledges received and $52.6 million in state funds drawn down by the research institutions. (At the end of FY 2008, those figures were $169 million, $124.3 million and $83.4 million, respectively.)

Each research institution has developed focus areas within the CoEE Program. Clemson University has strengths in automotive and transportation technology, including four CoEE endowed chairs at the Clemson University International Center for Automotive Research (CU-ICAR). Clemson's other focus areas include advanced materials and biotechnology/biomedical sciences. MUSC's strengths are in neuroscience, cancer research, cardiovascular disease, health care and novel technologies. USC's strengths are in future fuels (including hydrogen and solid oxide fuel cell research), biomedical science and nanotechnology.

The CoEE program made significant progress in building South Carolina's knowledge economy by the end of FY 2007, but as the program continues to gain momentum and critical mass, the greatest advances are likely ahead. As Executive Director of the MUSC Foundation for Research Development Chip Hood explains in the report, successful technology transfer requires time and patience: "The entire technology transfer process from discovery to commercialization is typically a fairly lengthy undertaking, often taking five to ten years before a product is ever sold." Hood also states that since 1980, more than 2,000 companies based on university and National Institutes of Health research have been founded. The V-chip, the PSA test for prostate cancer, hip implants and Taxol are but a few of hundreds of discovery-to-commercial product success stories.

"I firmly believe that we've only seen the beginning of the good that will come to our state and our citizens through the CoEE Program," said MUSC President Dr. Ray Greenberg. "We are already seeing strong returns on the state's investment of lottery funds. In the coming years, as research and innovation move out of the lab and into the marketplace, we will begin to see the creation of more high-paying jobs to fuel South Carolina's economy and improve the quality of life for our citizens."

"We're very proud of what this report to the Budget and Control Board shows--that the CoEE Program is helping to make South Carolina a place where innovation and talent drive economic progress," said Paula Harper Bethea, chair of the CoEE Review Board. "It's exciting to see the many ways in which the CoEE Program and its endowed chair scientists are having a tangible impact on South Carolina."

Select 2003-2007 CoEE Program Economic Development Highlights

Technology Transfer

* CoEEs have received five U.S. patents to date. In addition, they have filed 37 U.S. provisional patent applications, 29 U.S. non-provisional patent applications, and 23 international patent applications.

* The Proteomics CoEE has obtained a U.S. patent for Electrospray Ionization from Pointed Fibers.

* The Marine Genomics CoEE has licensed technology that has yielded $145,000 in revenue.

* The Photonics Materials CoEE has received three U.S. patents. The CoEE also has licensed income of $43,500 as a result of two license agreements.

* The Hydrogen and Fuel Cell Economy CoEE and the Renewable Fuels for the Fuel Cell Economy CoEE have been issued one U.S. patent, Method and System for Improving the Performance of a Fuel Cell.

* The CoEE in Childhood Neurotherapeutics has been issued two patents.  Four active licenses have yielded $25,000 in license income.

Increased Research Funding

* The Nanostructures CoEE has received $1.9 million in funding from a variety of sources, including the National Science Foundation, Seagate Technology and the Army Research Office.

* The three CoEE endowed chair teams of CU-ICAR were awarded more than $1 million in grant funding in FY 2007 with pending proposals worth $6 million. In addition, CU-ICAR anticipates receiving $2.1 million in the next two years from a successful National Institute of Standards and Technology Advanced Technology Program grant submitted by Michelin.

* Current federal funding for the CoEE in Brain Imaging exceeds $10 million.

* CoEE Endowed Chair Dr. Kenneth Tew of the Translational Cancer Therapeutics CoEE has established a partnership with Novelos Pharmaceuticals, which has awarded a six-figure research grant to the CoEE, which was renewed in Fall 2007. Federal funding for this Center totaled more than 450,000 at the end of FY 2007.

Startup and Spin-off Companies

*In total, the CoEEs have spun off more than 12 new companies in emerging high-tech, high-growth fields.

* Work associated with the CoEE in Hydrogen and Fuel Cell Economy and the CoEE in Renewable Fuels for the Fuel Cell Economy has led to one startup company and six spin-off companies.

* The CoEE in Childhood Neurotherapeutics has led to the creation of ImmunoMod, a spin-off company that develops drugs for treatment of diabetes.

* The Photonic Materials CoEE has launched two spin-off companies: Advanced Photonic Crystals and Tetramer Technologies.