Proposed by Gov. Perry in 2005 and launched on September 1st of that same year, the $275 million Emerging Technology Fund (ETF) gives Texas an unparalleled advantage by expediting the development and commercialization of new technologies and recruiting the best research talent in the world.

The program established partnerships between state government, institutions of higher education and private industry to focus greater attention on the research, development, and commercialization of emerging technology in early stage companies.

To date, the Fund has spurred a surge of technology commercialization including the recruitment of world-class researchers to Texas universities, the launch of several technology companies, and, in one case, a 46% return on the state’s investment when one of those companies was purchased by a competitor.

Texas consistently ranks within the top 2 in the nation in the creation of intellectual ideas, receiving federal grants for basic research and research publications in its public and private institutions of higher education.  However, Texas does not break the top 15 in the country in transferring or commercializing those ideas into market driven products for Texas.  In a nutshell, this activity has resulted in Texas being a net exporter of intellectual capital to other beneficiaries outside of Texas at the expense of Texans.

At the Governor’s request, the Legislature provided funding for the Emerging Technology Fund and approved its selection process which brings together government, industry and academia to find projects that merit funding.

The system is built on eight independent virtual Regional Centers of Innovation and Commercialization (RCIC) which act as a filter and conduit for the state in acquiring top talent, identifying early-stage technology candidates for commercialization awards, and providing matching awards for in-progress efforts.

Led by a team of business development professionals in the Governor’s office and advised by the 17-member ETF State Advisory Committee, the Fund has leveraged the efforts of an estimated 400 volunteers (i.e. entrepreneurs, academics, investors, incubators, chambers and economic developers) to stoke a collaborative culture that nurtures the best technology start-up company opportunities from their regions for ETF award consideration.  This regional participation and collaboration is the backbone of success for the program. 

The ideal candidate for ETF investment features a Market Driven Model based on an industry/academia collaboration that mentors early-stage companies to the point of sustainability and, ultimately, a return on the state’s investment.

The Emerging Technology Fund was created to bridge a gap in the innovation cycle by accelerating the commercialization of innovative technological ideas and products, which will have a profound impact on Texas’ economy.  By giving priority to emerging technology projects that are both collaborative and based on critical expertise and financial resources, the fund is enhancing Texas’ global competitiveness,. These ETF investments demonstrate economic benefits and also result in significant medical and scientific breakthroughs which will improve people’s lives.

As of April 1, 2008, after reviewing more than 600 company applications representing total requests of over $1 billion, the fund had invested a total of $114.6 million in early stage technology companies, matching awards and recruitment of world class university research talent.

290 of those applications were forwarded to the Advisory Committee and 109 (totaling a recommended investment amount of $155 million) were recommended for final consideration of which 83 have been contracted, for a total investment of $114.6 million.

The fund has invested in recruiting 24 world class researchers with commercialization success to seven universities in the state for $40.7 million of the total $114.6 million to date.

For more information on the ETF, please visit http://www.emergingtechfund.com.