RT

ARKANSASSCIENCE &TECHNOLOGYAUTHORllY

ON THE COVER. Ric/lartJ A Komoros~( a tesMrc/l<!1'" tblt Ufll....,~ity of A'kansas for M<l<J1cW Scie"ce.. ~~ludYJrlOm'll'"",lc ,""""nee lnullIlllg of me'llt>olito!wifh 5tu..-ot·tn..-It,lllq\Ilpment providetJ by UAMS "",1" b".oIc fffSQ8lcl1 {In'''f lrom foo AW,(lrifjl (PIJQIo wurresy01 David W"'IIt"S/UAMSI

BOARD OF DIRECTORS

CHAIRMANWilliam H. Bowen. chief executive otlle$r

and cl1{l1rman Of the board, First COmmercialBank, N.A.. and Fitsl Commercial CorporatIon,Ultto Rock. Term exPIres; 1988.VICE CHAIRMAN

Wlnlred L. Thompson, ~k;e chancellor lorIlnaroce end admlnlstration. University of Arkan~Feyelt8\!ille. Term IIXpiIllS; 1900.SECRETARY

Joo F. Nix, Ph.D., professor, DepartmenlolChemistry, Ollachlla Baptist Unlverslly. Arkadelphia.Term 8XP;~ 1981.

Joycelyn Elders, M.D. pro/es50rQ! pediatriclland endocrinology, University of Arkansasfor Medical So:;:l8ncl,lS. Utile Rock.Tllrm 8xpires; 1989.

Ronald W. Hllrt. Ph.D. director. NationalCenter lor Toxicological Re5elIrch, JeffersonTerm exp;:res: 1990.

B"rl LloollUY, €X(lClJlive Yk:e pmsidenl, AmtNational Bank of Helena. Term expires. 1987.

Paul Marlon. Ph.D., director. Arkansas Oepartrmmtof Higher Educafion, Lillie Rock. Permanentstatuloty member

Harry Truman Moore, lawyer, Goodw1n. Hamiltong Moore. Paragould. TerfJ'l exPIres: 1989.

Louia L Ramsay Jr., lawyer. Ramsa'j\ Cox lewfirm, Pirie BMt. Term expires: 1988.

Marian 8llrr, M.D. physlclan. Wl!1it Memphis.Resigned: 1986. Term expires. 1988.

Chllrles Mimbs, division ~ice pmsident al'ld(Jjreclor of SpQnow Mlssllo Systeml; lor GeneralDynamles, East camden. Reslgr'lEld: 1986.Term expires. 1989.

Slate Sonalor Max Howell, lawyer, How9I1 &Price. p.A, LIttl6 Rock. Senate ex'offlcio member.Term IDlllifes: 1007.

State Representlltlve John Upton. InvestOfend wholesale 011 and gas dealm-, warren.House 01 Representatives ex·oflicio mernbe!'.Term expires: 19B1.

. .. .. 1... 2

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OR. JOHNW. AHLENAIlKANSASSClENC£& l£l:HNOlOOYAUmOAIl"V PIlESlDENT

TABLE OF CONTENl'S

Leller 10 the Arkansas GenlilflllAsaembly ...•.•.•........

Authorily Profile. _ .Highlightsol 1986 , .Making a Differtmcl,l In lhe Arkansas

EcQrlOtny • ••• , . " ,." 4Research G,ants Program _......... ••...• 8Technology Trar'lsler Network.. .••... 10Business lr'lCUoolor Program............. 11Seed Capilallr'l\'tlstmenl Program. 12Fil\8ncial Repor1 ...... , 13Commijlell'l> arld $llIfl .••.. Inside Back ea.v,

BlllCllNTON

"""'"""OFARMNs,os

December 31, 1986

Governor Bill Clinton andMembers of the 76th General AssemblyState Capitol BuildingUttle Rock, Arkansas 72201

Dear Governor Clinton and legislators:This year the Arkansas SCience & Technology Authority focused Its energies on

Its assigned mission of building the state's scientific and technological resources.Among the Authority's most noteworthy accomplishments were:

, _The loan of $150,000 in start-up capital to a Clarksville manufacturer ofcomputer-integrated, flexible manufacturing systems.

2. Establishment 01 two business incubator facilities to assist promisingtechnology-based enterprises through their critical start-up phases; and

3. The awarding 01 $745,244 for basic and applied research grants to scientistsat Arkansas colleges and univef'Sities.

In addition, the Authority sponsored "Winning the Race with Change~ a hIghlysuccessful conference on science and technology issues facing Arkansas. TheAuthority also began publication of a newslelter, The Authority Report, as anotherpari of its infonnatlonal effort.

As a result of the Authority's activities and your own inslghtfulleadershrp, Arkansaswas chosen for two prestigIous awards in 1986: The National SCience Foundationselected Arkansas to participate in a pilot study to determine how technologydevelopment progrnms can make the United States more competitive; and theSmall Business High Technology Institute cited the state's comprehensive financingprograms for technology-based small businesses as the best among stales westof the Mississippi.

We appreciate your support of the Authority's work in the past year and lookforward to working with you 10 belter serve the people of Arkansas.

Sincerely,

Un ~ j.I 1$"""'-William H. BowenChalnnan of the Board

~~;.~President

TECHNOLOGY: The appJicaJ;1on of knowledge todeVelop new productB, services, processes or management

SCIENCE: 8ystemlltlc knowledge derived limnobeervatlon, study and expeJimentation.

THE ARKANSAS SCIENCE& TECHNOLOGY AUTHORITY: A PROFILE

The General Assemblycreated the ArkansasScIence &TechnologyAuthority through 1\c1859of 1983 and assigned itthe mission of developingthe slate's scientific andeconomic resources. TheAuthority's ability to ac­complish this mission wasenhanced by Ac1409 of1985, which establiShedIts lourfunded programs:

BAStC RESEARCH­This program of grantsto researchers at the slale'scolleges and universiUesseeks to build the state'sscienUlIc infl'BStructure.!he bad<bone 01 futureeconomic development,and Impr'OYEl the ability dArkansas research SClientists10 compete for awards althe natiooalleYel.

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APPLIED RESEARCHPARTNERSHIPS-WlTH­INDUSTRY- ThIs programseeks to pall" bflghl, capableresearchers al ourcollegesand unlYef'Sltles wfth indus­trial cosponsors in researchprojects demonstratingclear economic potential

BUSINESS INCUBATOR- This program seeks tostimulate the developmentof new technology-basedbusl~and transfer ofledlnology from universitiesto the privata sector-by theestablishment of -incoba1o('facilities in COOPelallonwilh the state's collegesand univefslties.

SEEDCAPfTAlINVESTMENT FUND-This program stimulatesthe aeation of newtechnology-based enter­prises by providing up 1025 perceol of the start-upcaPilal requIred by suchfirms. Such investments arefunded from a 51.8 millIOnrevolving fUnd establishedby the 1985 General As·sembly. The lund is expectedto be sell-perpetuating.

The Authority alsoadministers !tie Researchand Development Tax Creditauthorized by Act 759 of1985 and has laken the leadIn establishing a oetwor1l::of Individuals InVOlvedIn technology transferInllialives.

The Aulhorlty is governedby an 11·memberooardold1roolors appointed by IheGO'IIernor, it is managedby a nine-member slaffheaded by II president whois selected by tile boardand serves at lhe pIeasore01100 Governor. tis programsare administered by threevice presK!enls: the vicepresident lor researdldirects the IWo researchprograms, lhe vK:e presidenllor information directs lilaBusiness Incubator Program.and the VlC6 president forfinance directs tho SeedCapt!allnYeStment Program.

Or 00IIMrf Gar*" 1/1 01 Ul4PB c:Mab caI/ish~.~ at~&.0-"_SIalIon IPrtolO COUf1uyPtt#~ 8MI ConH'''$IJ, (Top"""" UIlF~ studlM/Ke"'"Clw'~'h~~-......

'" UrtMnify" ~rI","-fdl c.n,..~ fimw ,".,;,g _ /rI1hlI COII,en bu8'leA /nwD.1C< 1KiIl~II.tWl

flol<:lIA 10 I!IfI c8/lr",'1 IlIbor.rtlrlo••1Id II>ct 1.,;1lItY'J.~ adv!oe (Pt!olo GOUt/NY of CIt,1s BoesWUllF N.... .$M>'k:ql.f'1bp rlQMI Aulholllyp~tDr John W A/t1en (fltJad of I.DIII) ~lferl' 10 dfMunlOll d<Jtitl'J • --"Iy stili' .-tI/IfIltI."';.,"";;;lIo,lIy.. "... CClII"""'" ,oom. (BottQm ,/fI1lI) 8(tarct CNltman 801 Bowen ",..,.". /he Authot",... 1/'1/~ lotr' Itle !loIsimW IrIc:ub<oIot at I,. t.h.WtIIiIy 01 ",.._., FaJ'W/M..... 10 CMrl _.Dan forrifol.

NOVEMBER 1The Aulhorlty moved inlo

Suite 450 of the TechnologyCenter (formerly the Conti­nental BuildIng) at 100 MainStreet, lillie Rock.NOVEMBER 12

The Small Business HighTechnology fnstltute namedMansas the outstandingweslern state lor finan-claJ programs assislingleclvlology-based smallbusiness lirms.NOVEMBER 20

Tho Authority distributedthe first issue 01 The AuthOfityReport. its newsletter onscience and technology"""""-DECEMBER 8-9

The Authority COSlX»'sored·Wlnnlng lhe Race withChange7 a conferenceon science and lechnoklgyissues affecting economicdevelopment.

IGHUGHTS OF 1986SEPTEMBER 30

The Nallonal ScienceFoundation, ConferenceBoard 01 New Yorkand National Governors'Association announced thatArkansas was one of fourslates chosen 10 parllcipalein thelr joint study ol waysto makelhe Uniled Stalesmore competitive.OCTOBER 3

Genesis, Ihe slale's filSlbosiness incubator, openedalthe University of Arkansasot Fayetteville. and theboatd approycd ils firstseed capital loan.OCTOBER 21

President Reagan signedinto law the Federal Tech·r'\Ok)gy Tl8nsfer Act 01 1986.lOt whiCtllhe Authority hadactively lobbied.

NUARY7GovemorClinton

"'nounced the AtkansasXieroe & Technology~uthority'sfour programsfl'9tO open for business.~PRIL17

The Authority's boom oflirectors approved funding1scwm bask researchamposals and two businessjIClbalor D!'OPOS8ls.

NE19The board approved

~ndlng of six basic research«>oosals.WGUST21

The """'" -""'"Jnding IOf live basic and~ree applied researchroposals.

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MAKING A DIFFERENCEIN THE ARKANSAS ECONOMY

In 19861heArkansasSCience & TechnoloayAuthority invested afmost$1.3 million In helpingnew lecl1nology-basedbusinesses Bnd almost$750,000 In scientUic andlechnological research.

The 1985 GeneralAssembly lIave Ihe Authorityfour-tools to use in buildingnew Arkansas-based tech­nology and transferring IIto the marketplace: Bask::research grants, appliedresearch partnerships withIndustry, business incubatorsand seed capllallnvesl·menls. These programsare a year old. Here Is whatthe Authority accomplishedwith them In 1986:

BASIC RESEARCHGRANTS AND APPLIEDRESEARCH PARTNERSHIPSWITH INDUSTRY- TheAuthority awarded fundsto 20 research projects

,

selected for both scientificmerit and economic de­velopment potential. Inmany cases. the Authority'sawards Increased the re­searchers ability to obtainfederal research dollars."Partners" from privateIndustry matched theAuthOfity's!wo appliedresearch grants.

For example, Pel-Freel.Inc., 8 Rogers biotech firm,matched the Authority'sgrant to a unlversJty reosearcher sludyihg waysto commercially producelarge Quantities of mono­clonal antibodies-Importantproleins used in diagnosticlesls and lherapeulicproducts. The success01 Ihe study could meanthe beginmng ot a newbiotech industry In Arkansas.

The other applied project.sponsored by RiCelandFoods, OICKEY-jOhn

Corporal1on and Abbolllaboratories, Is trying tolind out whal causes ricegrains to break during dryingand storage. Whole-grainrice commands higher pricesthan "brokens7 yieldinghigher profits for the riceindustry. A Rice/and repn;rsentative told the Authoritythatlhe ablllty 10 producemore higher-Qualdy ricecould help save agriculturaljobs.

The 18 basic researchprojects lhe Authorityfunded In 1986 will alsostimulate the Arkansaseconomy. For example,one grant is funding a LittleRock researcher's exper­iments In producing con­struction materials from ricehulls and cheese whey, bothwaste products,

Other projects have lhopotential to Increase procIuc­Ilvily In the fishing, timberand turf Industrre$. Fourcould lead 10 new medicalproducts 01' methodologies.One could lead to a safer

lraclof"lraHer brake, another10 better factory robots,another 10 deVelopmentof commercial feedstockstrom coal, another to lasermethods of manutacturlngchemical compounds-Ihe list goes on.

BUSINESS INCUBATORPROGRAM -In 1966lheAuthority awarded $1.1 million10 the Universily Of Arkansasat Fayetteville and ArkansasSlate University at Jones'bora for lhe establishmentof Iwo business -Incubators:'Incubators lease space toyoung technology-basedbusinesses and providetechnical and managerIaladvice 10 the fledgling firms.

The Fayellevi11e Incubatoropened In October andhas severallenants; ASUwill break ground for lisincubator In January 1987.

SEED CAPITALPROGRAM - The Authorityprovided start-up capitalto a new Clarksville firm,Arkansas Technologies,Inc. (ARTECHl whichdesi~ns, manufacturesand Installs flexible.compUter·lntegrated­manufacluring systems.

ARTECH used theAuthority'S $'50,000loan to leverage fundsfrom other souroo$, In·c1udln9 its local bank­linan<:ltlg lhat may not havebeen available without theAuthority's willingness10 share part of the risk.

In addition to theseformal programs in 1966,the Authority assisted U.s.Sen. Dale Bumper's offiCein obtaining passage of theFederal Technology TransferAd of 1986. This law en­courages federallabom­!orles like the NationalCenter for ToxicologicalResearch near Pine Blurtto enter Into coopemllveresearch agreements withprivate Industry and license

ECONOMIC SECTORS AFFECTED BVOUR BASIC RESEARCH PROJECTS

ECONOMICPROJECToeSCflrPTlON S£CTOR

Catllsh Growlh FaclQfs .. ~ocUltWll

Mioorals ,n Call18h Nurrmoo .. "'O'lcllll"'"

SlrefIITI Re!lolm:e Management .. ~fk:ull ......

Pamell~ TlanSmlsslllr1ln Ball nsl' .. ~Iic:ull"''''

FOfesl Managolmenllnlllruments ..... Au,ieull","'.Manulactu,lf>lI

F""tors A1lflC1lng R~ OU/lIII~ .. "<l' t<'=Ultllf8

Maldroo Rico Hul Buidin{l 80afds ..... Agricul1urn,with CheuaWhay RBSiol ManulBCIul1ng.

I.R Saf\ftalion.H/lallh Set_I

IlI.IrtlICIl:le·Retmllnl BOm\lIdaQ~ .. ~K:ull"",

La:oet Ins/I_tallon lor MedIca! ... (}. Manuiaclu,1ng.and IndustrIal 0iIlgn<:>s<l* Heallh Servl<;es-

1ftNlWr l;ISer Matlf'1D/C Mar.ulll<;lu,1!lO

MaHlnQ CIl",niCal CC:wnOOOrn:lS 1ft M;>out..,lu,lng

'""''''"''New <.:lmrnlcal SQlvanls

1ft ~ .. Mlanulllcl,,~!>Q,

Mlro!ol,l.1\QfiCill11ll"

FficUon ChI.\nIC18rlstk:s ot a 1ft - Mlinulactur!ng,-_-.. ThIn!poftatlon

RobQl~1n Factory AulOOlabO<l 1ft Mf<",~ ..cl"'1IlQ

L8fga"5cato MtllloXlV Proo:luef\oo 1ft (}. ManUll\Clu,1ng,H.....1Ih 5e1'llOOS

CQmpl;c;atlon.. ln Kneot-.,Iotnt 1nI....... (}. HoloIJlhse~

OlagflO&lll; 01 CC>I1lenilallflll OiIl<lasa (}. I-kwUh SeM:es.

M3Qnllllc ResooalJCl:l1maglnll (II 8. HWIlk/O$QI~

MoIabolilOll QI" Ur"lla

PoIanlial Eerlhquaka Hazlllll 1 e-,_MlIlhemallcal A.,pro&(:h to ModelIng g Ge/1llftII S&r-..ce$'COff>pIe. S)1IIIl."'s. ,

UAf IJ,rgi_i/lfJ ~,li(JenlllMr up campute"'llul(lmMlK! 1Il1lWmbly lin" In "fOMtic§ lab In 1M Uni\O!,M(y". Engin...."!IfI South Building. T"",hn%(lr-bU<ldI/"'~ ltIufTIfJ~ In G""...vs, '''11 UnMl/slty's 1l1,l',M# !"",,,IJaI"'; ha ...IIttl/$S rQ tlUlll'}borlc, /lib Pn(/ Ille 11I(;u11r); Ilngi~llng expet1i:m. (PhoID!>OIJ""S\I ole BQ<t8a/UAF N~wt SbiO'ico!

government discoveries andInnovallons for commaroial

""'.The Aulhorily eospon-sored a conference onscience and technologydevelopmenllssues InDecember. This resultedIn several matchings ofresearchers and fechnology­based firms with potentialmarkets and sources offunds.

The Authority receivedconfirmation that ils pr0­grams were 00 traCk inNovamber. Rrsl, the SmallBusiness High Technologylnsiliule honored Ille stateto( having lhe besl develop­ment finance programs westof Ihe Mississippi Rlvertorassisting technology-basedsmall bUSinesses. TheInstitute also praised

0<. Em"'" J. PIlc~ Jr. (18m and Dr. JII,""" W Hatdln 01Ihe UIlw.m;ily of Ar/utIl$ltS (0( MedK;a1 SC;enW5 haW!a ba&k _rclt ll'mm from 1M Av'hprily 10 5t!Jl1y1M ,,,,,If!c:ul8, biQioQy 01 I"" dlannol ttollis/l. rPhQIOtlOtiN&lf'Ioi 0. WnIeWUAMS)

•

Arkansas' O\'erall strategy101' technology-baseddeveloPment, rating ilsacol1d only 10 Coloradoamong western slates.

In addition, the SouthernGrowl!l Policies Board cJledthe-Authority's program 01applied partnerships wllhInduslry 8!? a.n effective way

10 encourage informationtransler between academiaand the private sector.

HilllJry Cllnrl/ll, Arlr.rn...s- '''Sf/ad)<...... learu/f1d JPfIIJkf>t lor'Wirm'lIl1 t/lf) Race ...11" Chl*nf/<';'

GEOGRAPHICALD1STIlIOunON

OF 1966 AWARDS

/WItIo,IIy's Prolar:u 8<llld$I,.,'. ElIOnDmll, PqfenllalTI>e ""1"'''''11)1 blll/lihe atate'.

capll<:1ly Ia• ...,1'0<=. '00 tach·noIog, d,,,'lllopme,,ll,, leaeIImlUgh 1'''111 b.-Ie .....,ellIInln'-, _.pplled _reI'!partnor,hlP., two bll~ln_

Inllllblllor_.,de .nd 0".,...d UpltllllnV1llunfl"l.LoclItI<ln, IIl11lneuc.11td~ ...•••I'

a.....' fl..-n::h lJ~

~II..J fft=:tiIrdlPart",.."rp,WIth Indl,t.1fy

IncllblltOf A.....lb

8Hd o",pltll Ltl,n

BASIC RESEABCH: The furu:lamenta! or essentialtheoretical study ofsome field knowledge to establishlilcts or prinaiples.APPLIEDRESEABCH: A studyof oome fieJd ofknowledge that is dlrected toward making things orcreating situalions which will serve a practical purpose.

Dr Rif:/lardA Kontofo5MI_f..tI 01 u.u.rs ",dl&pIay__ .....118'01paWn'~WIl ... 11liI UAMS~Reaon._I~ /lIdIIIlt~..... ",.,., _ /flit Aultlotltr 10 Jlo4y ",. ,,_NIOL,_......

~ oI-.tloffK (PIMlo_,.,dOr. ~1Vu.ws1

project, and its sponsoringcollege or university paysthe remalnderJ

The board funded two ofthe seven applied researchprotects jUdged meritorious.

In the applied researchprogrlun, Industry or busi­ness CO&POn9Of"S provideat least 50 per cent or eachproject's costs, and theAulhorlty provides theremainder. Cosponsorsare eligible tor state incometax credns tor their contr"butlon& All applied researchprojects directly benefit theindustry sponsOl' by savingor creallng lobs.

BASIC RESEARCHGRANTS/APPUEDRESEARCHPARTNERSHIPS WITH INDUSTRY

In 1986 the ArkansasSCience & TechnologyAuthority awarded $720,244to Atkansas researchers 001of more than $7 mH110n inrequests. AdditiOnal awardsate possible In earty 1987.

Competition lor 1986basic research gmnls Isclosed, but Individuals hadunlH January 15, 1087, toapply for Awlied ResearchPartnershipS-Wrttt-tndustryGmnts.

Researchers from 12coIeges and uniVersitiessubmitted 138 basic andnine apPlied research

."""""Is.IAbrld-ciass scientistsreviewed these proposalsand scored them lor sci­entific merit: then theAuthority's Science AdvisoryCommittee. comprised of10 Arkansas scientists whohave served on nationalreview boards. determinedminimum cutoff scores.The board's ResearchCommittee evaluated theeconomic developmentpotential of the 54 bestboslc research proposals,and the board funded 1&(The Authorlty pays up 1060 per cent of the costsof each basic research

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R&D TAX CREDITPROGRAM

""'''''''''''_established tlw.! Researchand Dewlopmflnt Tax CredItIn 1985 to stlmulatt'l tach­tlOIogy lransllll' through~WlflC1oslrycooper­iIlloo'l on app!iod resMIdlprQ8C~The aeclib., granted10 Induslrin pert~t~lllin Ihe Af1<ansas SCIence& Technology Aulhoflty'liappIled r_1Ch parlnorships,al$() :l6l'Vfllo encourageprlll8.l8 contflbullona ofmotley and eQUl~nlto 0JMege and unfWll!fSil'l'--ParticiPants In thl!I programare gmnled n:ome IuCf'8dibI;worth 33 per cent 01 the YIllueoIlher conlribution fO! IIJlarnol,lllt up to 50 percentof theIr nllt lax liabillty.

1986 BASIC RESEARCH AWARDS

"'MOO<. RESEARCHER PROJECT AWARD

""" ~E.Traull'l ~ oIl*88lIes In ..... GolcJen Shh!lIr bItill1lll. $ 111.911

UN DA ...... S1.....oIoil~bel ee i I,IdIorI Illaltl$ In e~ 11,816Il"leolfKlbnIM delllgn,

UN Lar'Y D. M....klll InvesllQlltlon oIlt>e lI30 01 UU1~"'" (Eu) Ione ....a.- .,,""laom m8lmial

UAF JohnWKlng_ 5eIecl1on oIl1cfbicl<kl-~1befmudil gmss lt1fougll """DFeng H. HlIIlfllI c:olla.ollLlnl

UN' -- McMng hOflwn conlrolMd lIS 'lPP'P1lon 10 <olXIIics.. 25,181

UN ..... L ...... HlIooYy bridging 8IamI. erwrgrllow~ In__ .."""~oIdIe<i",,*

UN ~J Pief\IJI Nuw ....... tO"_...-.inlIet.,......~ """UN Zdz· 1 • hddl Icz NunwOcIiI ......01"'- .....db................ ''''"'~WId\obllemi lnhvaI~UN ....- PoIentIll~ huard 10 EnoIiI, Atb.-s lo:ile at ,....

-~-UN ....Ihur\l. Brown Z<>oPa<*ton~ in OUO! "-twIi1er 31 ......... 44,CJ15

UM)" M8Illy K Mazumoer ~ dol>llIef ....lfUlnlllfltilllon In blocH......~ "'''"'""",T Pl>Ul C. McLeod Jt GQnIQmlll",..~r;ysIem for "allemng C(,Jf"Ogeoltal 16221",,,-UM>" Jan\ll'!l D. W1Json ee""'OPfI"IUnt of mlcro~·based lmlrumenlallon 24,695

Ilf'Id diQIlll:&d ImIIoe<v for irNMUgllllon 01 ..... varyingIIghl IHWlrorwnent oft"" forest 110O".

U"" THoViswanuihlon Rioe 1Iu1 reinIorced bulk,ing oo.fllS utlng f1M<InsdeflWld """"--UAMS en-. Pft:k J< WId GrawtI'lI.:\onlIn ...~ e.1fiIh. """"""-W_UAMS -- r-aoriglnol~~ kblcln In...- joio........ "....UAMS RIo::tIMI A.1Wo.iOiOlld MligrIetlc_ ;m.yingol_l~ot_ ....,""'" 0eI>wt QIIIlin III "'""""'" InteiKlIoo. In d!annlII e.fiIh nutribon. '''''''

TOTAlIW;K; RESEARCH~ 1622362

.,,,,,..,.'"LMglt-SCIlIe iI'IiiMIOlXIlIor proIb:lrog" ............... WIItloc1es

TOW- APf'l£D RESEAACH~

1986 APPLIED RESEARCH PARTNERSHIPS-WITH-INDUSTRY AWARDSINST. RESEARCHER Sf'ONSORS PROJECT AWARDlJAY Teny~ AleelandFOOda, Study__olfQbn.!a,,-dUrlng 134.666

Abbolt 1.abonI1~ drying IWl~OICKEY-john Corp.

fW.F-.Inc.

NoliI: The 1lu1/loflly -.0 I • dold a S2f;,OOll grwM 10 GIorgit E.~ at 1M~ 01 ...-.-..fayeI..... but lI\OIlndusl"'~wi1hdn!w__"'olp"'"_~ _ .........1IXl

"""'"UAlcrr

Arkan5M Stef.,~~~~v 01 AlICllnMS.1 FayellO'11fte~ of ArklIn_ Qraduolelnr;t.IUle or Tecloooki\W

UA~

UAMSu.-aity 01 Arl<anll'l III Lima Itoc!<l.Irwe!Wty 01 Arlam9as 10<~.......~~of~ lit Plne6kllt

•

- -

a,

~.

" '

'0

.. - -,. ~-7 ... II.~ ...

13' • II. 4 ,,-

THEARKANSASTECHNOLOGYNEnNORKThe Arkansas SCience & Technology Authority has worked 10 organize a nelwork

For the transfer of technology from the research lab to commercial sellings. Themap above INustrates some oIlhe POtential peayers in such a network.

BUSINESS INCUBATOR PROGRAMOn April 17, 1986,

the Arkansas SCience&Technology Authorityawarded almost $1.1 millionto two universities lor theestablishment of Arkansas'first two business Incubators.Ac.ldlllonal awards areexpected in 1987.

The business incubatorprogram is part o/tha 1985legislation to stimulate Ihedevelopment of technology­based business In Ihe slate.Business incubalOl8, incooperation with state

colleges and universities,provide management andtechnical advice. temporaryrental space and central­ized services to youngtechnology-basedbusinesses..

The Authority awarded$550,000 10 the UniversItyof Arkansas at Fayettevillefor Ihe establishment ofGenesis, Ihe FayettellilleIncubator, and $522,502 toArkansas State University atJonesboro tor tile establish­ment of the East Arkansas

Business IncubalOf SystemIEABIS~

The first component 01GeneSis opened October 3in the EngIneering experI­ment Stallon, a former manu­facturing planl which housesthe university's Genter lorRobotics and Automation;the second will open shortlyin Ihe university's BiomassResearch Cenler and willspecialize in assisting bio­technology firms. EABISwill open in 1987 In a ne'Nbuilding underconsfruclionIn the Jonesboro IndustrialPark.

11

SEED CAPITAL INVESTMENT PROGRAMThe Arkansas Science

&Technology Authority onNowmber 13 finalized Itslirst seed capltalloan of$150,000 10 Arkansas Tech­nologies, Inc., of Clarksville,a computer-Integrated­manufacturing business.

ARTECH, as Ihe firmIs known, contracts withmanufacturing firms 10design and build computer­driven manufacturing de­vices to make them morecompetitive. II expects toemploy 22 people by Iheend 01 its first year and havefirsl-yearsales of almost$1 million.

The AuthOrity is currentlyreviewing the applications oftwo other technology-basedfirms for possible funding.Action on the two requestscould come In early 1987.

Altogether, 26 firms filedpre-application informationwllh the Authority during1986, and more Ihan 100others Inquired about Iheseed CapitallnvestmenfProgram.

The legislatrve mandate oflhe seed capital program is10 proVIde initial financing toArkansas-based enterpriseswith technically or scien­tifically Innovative productswhen tradItional bank finan­cing is not available-asIs often the case in start-upventures.

The Authority must,however, lind that there

is a "reasonable" chancethat the business will suc­ceed llnd thai its Investmentwill be repaid The firm mustdemonstrate potential tocreate new fobs in Arkansas.

The Authority seeks atleast a 3:1 match ot all ItsInvestments In technology­based firms underthlsprogram.

Unlike the Authority'sother programs, the SeedCapital Investment Programreceived one-time fundIng Of$1.8 million from the GeneralAssembly. This has beeninvested In a special Mlnvest­ment Fund" thai will be­come self-perpetuatingas technology-based busi­nesses repay the Authority'sInvestments.

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ARTIOCH ltmpJal"'"~I... wmpUlfJ,llf,d mlWng m8d>i".. ID mllke !l{>eCiBfpa"S ID' c:ampufer-lnl<>g,,,'{f(1-ml/n,,fec1,,,ing 5YS'\Im,.

1986·87 ~oprlatioosFunds Released

Umeleased Appropriations

Grants AwardedGrants Paid-

Grant Funds Held In Reserve

ARKANSAS SCIENCE & TECHNOLOGY AUTHORITYStatus of Capital Improvement Funds

Research Grants and Business Incubator ProgramsUpdated through December 31, 1986

Research Grants Business Incubators~rams ~ram

$1 ,BOO.000 $1 ,900.000{745.2441 (1,221,403)

$1~.756 $ G7aSS7$ 745,244 $lP72,502

(669,9l@ (500,000)

$ 75.342 S 572.502

-While released In 1986, these funds were nollo be delivered to the coMeges anduniversities until January 1987.

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=::;l.

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AATECH llteSlo:1/!f11 JfJfryS~ &110.., ,,,. "bnIln." 01 • compuleN/rlwm SI"'PIltfIf1 m.c/Ilne lo.hllllft l Benham.thIllwl/lOlIty'. _,.,., ",,,.;o.,nr lOt IInane" ARlEen. Ii,,,, w~/(;" dHignll" ~IlUlllClu",..ndInSla11S 1/e.IbI<I-, C<lmpul.....!I1r~f.r&d.mllnl,llICrll'i"9 5\<Slem", CIf"Inlld In CI.t••vIJI. If! 11188 wI,h lh<J help oJ .. Ioan'rum '11. AIImo!l/)<

03

ARKANSAS SCIENCE & TECHNOLOGY AUTHORITYComparative Statement of

Government Fund Revenues and ExpendIturesFor the Fiscal Years Ended June 30, 1985 end 1986

1986 1985REVENUE:Revenue AppropriationOefennenls*Net Revenue Allocation

EXPENDITURES:Personal SeMces- PayrollEmp60yee Benefits- Mald1ingCommunication - PostagePtlnllng, Ad'oertisingRepairing, SClVicingUlIlIlles, RontTlaY8~ SlJbslslenceProfesslooaJ Feescer.lfflx SeMce:sConference. ConYenlion FeesInsurance, Ba1ds &TaxesPublications, Office SuppliesData Processing SoftwareTravel FundCapital Oullay- Equipment

lessTotal ExpendIIures:

UNSPENT AUOCATION:

Revenue ApproprialmLess Total Expenditures:UNSPENT APPROPRIATION:

$533,451.00.l'59.926.cM?)$373,524.94

$203,789.0040,669.15

5.128.704,742.67

775.5822,139.9821,721..3126,B3B.B4

8,343.732.710.00

392.006,369.672,249.79

500.0021,689.98

~2Q)

S 5,464.74

$533,451110J3_~

~9O.BO

$254,867.56~~B7.9Q)$248,680.56

S B2,623.8tt'8,600.00

688377,057.502.192.079,605.53

18,696.8750,682.38

8,552.13alB5.B6

'25.587.9431l6

846.960.00__a'532B

(212.77o.,.!.l

$ 35.910.45~

$254,867.56~l2,no.,,)

$ 42,097A5

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*Budgel f'9ductloosac:eounled lor $83,426.00 oIlhedefermenls, or unalloc:8tedlunds..lorf1aca1 Year 1986.

$ 205,000~1,595,OOO

ARKANSAS SCIENCE & TECHNOLOGY AUTHORITYStatement of Fund Balance

Seed Capital Investment FundFor the Fiscal Year Ended June 30, 1986

Appropriation to Fund $1,800,000.00

Investments:Money Market AccountsCertificates of Deposit

Interest Earned

Ending Fund Balance

69,299.17

J1,869,299.17

Nole: This revolVing fund was established with a one-time appropriation of $1.8million, which was allocated to Ihe Authority In two Installments during Ihe fiscal year.All interest payments and repayments 01 principal arc deposited into money marketaocounls.

After Ihe end of the fiscal year, the Authority made a $150,000 loan from this fund.The balance of lhe fund on Oecember 31,1986. was$1,779,545.79.

UAf gradU<lte s.'u,*,,,r Kevin CIRri< proplmn" lIOIurion In rhe Un;~r.iry'" a"'Me"" Researcn CenllJf. New bi"'ech Ilrt'I~/lJaslng ,.,.,081" rile Urllwtr"W9 1m;ub><IOf ""'Y l/!S$ ",,, Como,s Ia1x>f1lt0ri9s arn1 c;onsult /18 ta.;;oJIl, (PhOtO by C1I,is 8[JfJss,UAFNBwsSorviw)

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BOARD COMMITTEESRESEARCH COMMITTEE

Or Ronald IN. Harl (cl1alrman~Dr Joycel\lfl Eldersa~(l 0' Joe F. Nt...pLANNING COMMITTEE

WI(lirOO l Thompson (chajrmall~ Dr Marian Barr1I.1'ld Dr Paul Marlon.INVESTMENT COMMmEE

Bart Llndseytchairmall~Louis L. Ramsay Jr,CMlies Mlmbll arlO Harry Truman Moore.

SCIENCE ADVISORYCOMMITTEECHAIRMAN

Dr. K David Straub, John L MeClellan Memor;alvatarans Administration Hospital. Ut11e Roc;k.

Dr. Ed Bennett. Deparlm9l'll of Chemistry,Arkansas Siale Unr.e(Slly, JonestKlro.

Dr. Carl Cerniglia, NatiOOilt CenlerforToxicolog1ca1Research, Jelterson,

Dr. Torn Goodwin, Department 01 Chemistry,Hoodrlx College, Cooway

Dr. Gilry HeK.1l. Deparlment 01 Biology, Universityof Arkallsas, LIllie Rock. (Heldt Is president atlt1e Arkansas Academy of Science,.)

Dr. Malay MaZIJmdet, Graduate InstitUte ofTochnology, University 01 Arkansas. Little Rock.

Dr. Emesl Peck Jr. Department 01 Bio<;;hemislry,Untve'lilty 0/ At1Iansas tor Medical Sciences,Lillie Rock.

Dr. Greg 8alamo, Department 01 Physic:>,Univel'lllly of Arkansas, Faye!leville,

Dr. Neil Schmitt. College 01 Engmeenng,University of Arkansas, Fayetteville.

Dr. William Willingham. Department 01 Nalura)S<:iences, University 01 Arkansas, Pine Bluft.

STAFFJohn WAhlen. Ph.D, PresidentJames 1: Benham, Voce PresidenttOf FinanceAlice Rumph Smith, Vice President lor InformallO/1Patr'k:ia S. Trolh. Ph.D. VicEI President/Of ResearchWilHam E Parks Jr, FISCal ManagerKay $peed Kelly, CommlJnications ManagerCassandra A. Tavom, SecretaryJudith McAirn;h, SecretaryLori Ramsey Bowoo. StuoonllntomAlan Gumbel, Sludent Intem