ANNUAL REPORT

2016
 The Illinois Science & Technology Coalition (ISTC)
is a member-driven nonprofit that measures, connects,
and enriches the Illinois innovation economy.

The Illinois Science & Technology Institute (ISTI),

our 501c3-affiliate, focuses on science, technology,
engineering, and mathematics (STEM) education, connecting
companies with classrooms to better prepare the next
generation of problem solvers.

2 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

GREETINGS FROM ISTC LEADERSHIP

At the Illinois Science & Technology Coalition and Institute, our mission is to create a stronger innovation
economy, working together with the states universities, industry, high schools, startups, and a network of
partner organizations. Our work continues to thrive because of the vibrant activity and ingenuity occurring
across our state.

Throughout the past year, ISTC and our affiliate Institute have doubled down on our role as an effective
intermediary organization, achieving continued impact in data collection and policy advocacy and delivering
high-quality education and innovation programs.

Key highlights from 2016 include:


Celebrating continued growth and new insights from the Illinois Corporate-Startup Challenge, a
national awardwinning program that links emerging companies with large corporations through a highly
curated matchmaking process.


Releasing new data through the Illinois Innovation Index that highlighted Illinois STEM talent supply
and demand and demonstrated increased growth in entrepreneurial activity from our universities.

Extending the scope of our education programs, which reach more than 2,000 students at 35 Illinois
high schools, offering novel industry partnerships and mentor engagement that are enriching the states
STEM talent pipeline.

We thank all of our member and partner organizations and funders (listed on pages 1617), without
whose collaboration our work would not be possible. We look forward to continuing to advance Illinois
as a hub for technology, innovation, and entrepreneurship and ensuring greater economic prosperity
and competitiveness, both today and for future generations.

Timothy L. Killeen Mark Harris

Board Chairman President and CEO
 TABLE OF CONTENTS

ISTC FOCUSES ON INNOVATION PROGRAMS, DATA

COLLECTION, EDUCATION, AND POLICY ADVOCACY.

3 INNOVATION

6 DATA

9 EDUCATION

13 ADVOCACY

ISTC, Argonne, and UI Research Park represent Illinois

at the National Innovation Summit and Showcase in
Washington, DC.
 DEA INNOVATION
ISTC identifies gaps and opportunities in the broader technology and innovation
landscape and seeks to fill them. We use our network to catalyze and implement
projects, drive outcomes, and support partnerships across technology sectors.

Corporate-Startup Challenge
In 2016, the Corporate-Startup Challenge (CSC) continued its work forging high-impact connections
between global corporations and startups in the Illinois innovation ecosystem. Over the summer, the
CSC team published an insights report tracking data, best practices, and lessons learned from three
years of corporate-startup matchmaking.

In November, the program hosted its 16th demo day event with USG Corporation, a leading building
materials company headquartered in Illinois. Nine startups representing architecture, engineering, and
construction; digital tech; and materials industries pitched to USG leadership. Six of these companies
are now in conversations about partnership opportunities.

The Corporate-Startup Challenge created an opportunity for Veriflow to secure a Fortune

50 client. Through this process, we were able to navigate toward a meaningful relationship
with Archer Daniels Midland centered on an exciting cybersecurity project that was a great
match for our technology. Brighten Godfrey, cofounder and CTO, Veriflow

On June 7, 2016, ISTC

hosted a panel of corporate,
entrepreneur, and university
professionals who participated
in the Corporate-Startup
Challenge to discuss the
opportunities and challenges
that arise when large and small
companies work together.Left
to right: Lily Yeung, Molex;
Nigel Smith, Caterpillar; Laura
Frerichs, University of Illinois
Research Park; Jay Leib,
NexLP; Don Sharp, CoolFire
Solutions; and David Weinstein,
Freshwater Advisors.

3 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 CORPORATE-STARTUP CHALLENGE BY THE NUMBERS*

startups invited to
pitch at one or more
demo day events

companies selected
for postdemo
day diligence

active engagements
to date

partnerships
secured

*Data as of December 2016.

4 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 Smart Grid Cluster
The Smart Grid Cluster (SGC) is a coalition of organizations financed by the Small Business
Administration to support energy startup companies in the Midwest. As part of the clusterwhich is
now in its seventh and final yearISTC supports the coordination of energy-specific resources from
universities, national labs, and venture capital firms to build energy companies and address industry
challenges. In 2016, SGC hosted more than 1,300 energy professionals at networking events. In
partnership with Energy Foundry, SGC reviewed the business plans of more than 400 companies,
met with 197 to provide assistance, and directly invested in 3. In addition, the cluster placed paid
Illinois Institute of Technology interns at seven energy startup companies to gain industry experience
and provide staff support to emerging businesses.

Illinois Science & Energy Innovation Foundation

The Illinois Science & Energy Innovation Foundation (ISEIF) addresses the human and community sides
of energy and the electric grid. Through quantitative and qualitative data, ISEIF learns what it takes
to get consumers energized about the smart grid. ISTI continues to serve as the project management
organization (PMO) for ISEIFs 10-year, $50 million grant initiative, which supports nonprofits and
delivers smart grid consumer education throughout Illinois. As the PMO, ISTI helps to administer grants,
convene grantees, and conduct evaluations.

5 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 I EA DATA
ISTC develops publications and data tools to help the state identify, celebrate,
and build on its vibrant and diverse technology strengths. The Illinois Innovation
Index is our premier online publication that provides analysis and insight into Illinois
performance in targeted technology-related areas.

TALENT ISSUE

35,800 = 29.1%
STEM graduates
in 2015
of all degrees
granted in Illinois

Illinois is the

2 ND biggest producer of computer

science graduates in the nation

Illinois is the STEM

4
jobs in Illinois are
TH projected to increase by

12%
leading producer of
MBAs nationally
compared with

6 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

9%growth nationally
 Illinois continues to outpace the rest of the country in production of STEM graduates. Illinois strength
in STEM is due in large part to the growth of computer science; the state is now second nationally by
number of annual computer science graduates. While the state slightly lags behind the national average
in STEM job concentration, several key computer-related occupations are growing faster in Illinois than
nationally. Illinois also competitively produces a high number of MBA graduates, ranking fourth nationally.

New data from LinkedIn shows how talent migration affects Illinois, which attracts talent from around
the Midwest but loses talent to industry hotbeds nationally. LinkedIn data on skills also echoes the
importance of STEM fields, with several STEM skills among the most-hired in the state.

Following the release

of the university
entrepreneurship
Index, Crains Chicago
Speakers from the Illinois Innovation Index release event on March 8, 2016, at the Illinois Institute of Technology: Business featured an
(from left to right) John Flavin, the University of Chicago; Dr. Francis Wang, SiNode Systems; op-ed coauthored
Jim Garvey, Southern Illinois University; Alan Cramb, Illinois Institute of Technology; Tim Killeen, by ISTCs Mark Harris
University of Illinois; Mark Harris, ISTC; and Chris Gladwin, Cleversafe and Ocient. and University of Illinois
President Tim Killeen.

The Illinois Innovation Index reports on

university-supported entrepreneurship
and STEM talent growth in 2016.

7 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 UNIVERSITY ENTREPRENEURSHIP ISSUE

Startups founded by Illinois university students, faculty, or staff grew to more than 600 from 2011
to 2015, the highest level of startup formation ever captured by the ISTC University Entrepreneurship
Survey. Funding raised by startups also grew this year, with companies raising nearly $345 million

1 2
from 2011 to 2015.

From 2011 to 2015,

Illinois universities
produced more than 73% of
600 startups active
startups
remain in Illinoisthe

3
highest ratio since
the ISTC University
Entrepreneurship
Survey began
Illinois university startups
founded from 2011
to 2015 have raised
$345
million in
funding

8 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 ID A EDUCATION
ISTC is dedicated to developing new talentbased in part on the needs our
members will face in the coming years. Through our affiliated nonprofit, the Illinois
Science & Technology Institute (ISTI), we run impactful programs that connect
companies with classrooms to better prepare the next generation of problem solvers.

ISTI PROGRAMS

STEM Challenges
STEM Challenges are real-world projects that create opportunities for high school students to work
alongside STEM professionals as mentors.

A STEM Challenge is a bridge between the classroom and a STEM career, facilitating collaboration
between students and industry. Its unlike the way companies typically engage with their community
because it harnesses skilled volunteerism to create proven, measurable impact.

Being a STEM Challenges mentor gives me an opportunity to champion our future

leaders. For me, the rewards of watching the students grow and interacting with these
incredible young minds is well worth my small time commitment.
Jenny, mentor, Takeda Pharmaceuticals

Students brainstorm
with mentors at their
STEM Challenge kickoff
to generate innovative
solutions to industry-
posed problems.

9 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 Mentor Matching Engine
Mentor Matching Engine (MME) is an online collaboration platform for project-based mentoring that
allows students and teachers to connect directly with STEM professionals anytime, anywhere. MME
allows STEM professionals and academics to support high school students in projects that go beyond
the classroom.

Mentors act both as content and field experts, guiding students through the research and design
process. Unlike traditional mentoring, MME breaks down transaction costs and geographic barriers.

By problem solving around an industry-related question and interacting with professionals

through the Mentor Matching Engine, our students better understand what their career
would feel like. They come away from the experience with knowledge, improved problem-
solving and interpersonal skills, and, most importantly, increased confidence.
Jeff, teacher, North Chicago Community High School

Most students might not associate science with fun, but this program lets us personalize
our projects, collect data, and draw our own conclusions.
JeNaye, student, Lindblom Math & Science Academy

Students from across Illinois share

their STEM Challenge solutions at
ISTIs annual Student Showcase.

10 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 IN 20152016, ISTIS PROGRAMS REACHED . . .

51% FEMALE

200
dents
47% STUDENTS
OF COLOR

350 26
mentors high
schools

11 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 LOOKING FORWARD TO THE 20162017 SCHOOL YEAR

AbbVie
Foundation Microsoft

Archer Daniels Motorola Mobility

Midland Company Foundation

Baxter Motorola
International, Inc.
12 STEM Solutions
Foundation

Horizon Challenges State Farm

Pharma

Northrop
Illinois State Grumman
University Corporation
Loyola Takeda
University Pharmaceuticals
Chicago International, Inc.

1,500 550 63
students mentors teachers

Join us on April 27 for this years STEM Challenge Student Showcase!

12 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 IDE ADVOCACY
ISTC advocates for sound policies and programs at the state and federal levels.
We actively support legislation and initiatives that have a positive impact on
research, innovation, and technology commercialization. We also collaborate with
elected officials, policy makers, regional economic development organizations,
universities, industry, and state agencies to attract federal research and technology
commercialization funding to Illinois.

ISTC SURVEYED ITS MEMBERS TO ASSESS INNOVATION POLICY PRIORITIES.

TOP AREAS INCLUDED:

Increasing Promoting
capacity for a technically
scientific skilled
research workforce

Improving
the transfer of
Strengthening
research to
innovation
new products
districts and
and businesses
regional
(for example,
technology
expanding
clusters
programs such
as I-Corps
and SBIR)

13 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 ISTC ADVOCACY PRIORITIES

Regional Innovation Strategies (RIS) program

Led by the US Economic Development Administrations Office of Innovation and Entrepreneurship
(OIE), the RIS competition aims to spur innovation activities in regions across the nation. In 2016, ISTC
again partnered with SSTI, a national organization that advocates for technology-based economic
development. Together, we worked to ensure that RIS was included in the reauthorization process. The
FY16 Omnibus Appropriations bill provided the program with $15 million, 33 percent more than in
FY15. In addition, through the RIS competition, ISTC played an integral role in helping mHUB, Chicagos
first innovation center for physical product development and manufacturing, receive a $500,000 i6 grant.

Immigration reform
ISTC continues to play an active role in the push for immigration reform to ensure that Illinois and the
United States maintain a position of leadership and competitiveness in the global economy. ISTC
President and CEO Mark Harris, a naturalized US citizen, continued to serve as a steering committee
member on the Illinois Business Immigration Coalition (IBIC) and the FWD.us Innovation Council Chicago
Chapter. In addition, utilizing data from the Illinois Innovation Index, ISTC highlighted the significant
representation of foreign national students in the states supply of STEM graduates and entrepreneurs.

Above: ISTC worked with mHUB to secure

the i6 funding, which will help accelerate
the development of the mHUB facility
and its programs. The photo (provided by
mHUB) shows facility equipment in use.

Right: ISTCs Mark Harris joins Senator

Dick Durbin (D-IL) and IBIC in support of
immigration reform.

14 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 State tax credits
In partnership with Illinois Biotechnology Innovation Organization (iBIO) and the Illinois Manufacturing
Association (IMA), ISTC continues to make the case to reinstate the expired R&D and angel investment
tax credits. These tools provide a strong return on investment and help to retain and attract innovation-
driven companies and entrepreneurs.

Illinois research and development (R&D) tax credit expired in 2016 and has yet to be
renewed. R&D tax credits help boost private sector R&D spending, create jobs,
and contribute to the health of the state economy. A majority of research on the return
on investment of R&D tax credits shows they are an effective tool in promoting R&D
spending by private industry.
Mark Denzler, Illinois Manufacturers Association; Mark Harris, ISTC;
Warren Ribley, Illinois Biotechnology Innovation Organization

Left: ISTCs October

2016 Catalyst publication
emphasized the need
to reinstate Illinois R&D
Tax Credit.

Below: Panelists Nancy

Sullivan of IllinoisVENTURES,
Illinois State Senator Daniel
Biss, Illinois State Represen-
tative Elgie Sims, and Michael
Sachaj of Hyde Park Angels
discuss the Angel Investment
Tax Credit at a panel
cosponsored by ISTC and iBIO.

15 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016

 This work would not be possible without all of us
working together. Thank you for your partnership.
ISTC MEMBERS
Association of University
Technology Managers
Catalyze Chicago
Center for Neighborhood
Technology
Chicago Council on
Science & Technology
Chicago Innovation
Mentors
Chicago Metropolitan
Agency for Planning
Chicagoland Chamber of
Commerce
Chicagoland Entrepre-
neurial Center/1871
Choose DuPage
Citizens Utility Board
Clean Energy Trust
Coalition: Energy
Cook County
16 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016
AbbVie Foundation* Exelon Motorola Mobility University of Chicago
Allstate Fermi National Foundation* University of Illinois
Archer Daniels Midland Accelerator Laboratory Motorola Solutions UI LABS
Company* Google Foundation*
USG
Argonne National Grainger Northern Illinois University
UL
Laboratory Horizon Pharma* Northrop Grumman
Corporation* Wellspring Worldwide
Baxter International, Inc.* Hyatt Corporation
Caterpillar, Inc. Northwestern University
Illinois Institute of
Chicago Innovation Technology Shedd Aquarium
Awards Loyola University Southern Illinois University
Comcast Chicago* State Farm*
Danfoss Microsoft* Takeda Pharmaceuticals *2016 ISTI STEM Challenge
Deere & Company Molex International, Inc.* participant
ISTC PARTNERS
CrunchBase Innovation Foundation Oakton Community
EIGERlab Illinois State University College
Energy Foundry Illinois Technology Quad Cities Chamber of
Association Commerce
Greater Peoria Economic
Development Council Illinois Venture Capital Quad City Manufacturing
Association Laboratory
iBIO Institute
IllinoisVENTURES Rev3 Innovation Center
Illinois Biotechnology
Innovation Organization Leadership Council Rockford Area Aerospace
Southwestern Illinois Network
Illinois Business Innovation
Services LinkedIn Rockford Area Economic
Development Council
Illinois Department of MATTER
Commerce and Economic Smart Chicago
mHUB Collaborative
Opportunity
Museum of Science & Smart Grid Cluster
Illinois Department of Industry
Employment Security SSTI
New American Economy
Illinois Manufacturers TechAmerica
Association NSERVE
World Business Chicago
Illinois Manufacturing PeoriaNEXT
Excellence Center PitchBook Data
Illinois Science & Energy
 CORPORATE-STARTUP CHALLENGE PARTNERS
Bloomington High School
CICS Longwood
Chicago Vocational
Career Academy
Corliss High School
Downers Grove North
High School
Eisenhower High School
Elk Grove High School
Evanston Township
High School
Gwendolyn Brooks
College Preparatory
Academy
17 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016
Universities and labs
Argonne National
Laboratories - Chain
Reaction Innovations
Bradley University
DePaul University
Fermilab
GTI
Illinois Institute of
Technology
Illinois State University
Loyola University Chicago
Northern Illinois University
Northwestern University
Southern Illinois University
Sivanathan Laboratories
UI LABS
University of Illinois
The University of Chicago
Western Illinois University
Highland Park High School
Illinois Mathematics
& Science Academy
Instituto Health Sciences
Career Academy
ITW David Speer
Academy
Lake View High School
Lindblom Math & Science
Academy
MacArthur High School
Muchin College Prep
Naperville Central
High School
Incubators and Venture capital Civic & Nonprofit
accelerators firms Groups
1871 7wire Ventures Built in Chicago
Catapult Chicago Apex Venture Partners Chicago Innovation Awards
EIGERlab Chicago Ventures Chicagoland Chamber
Healthbox Energy Foundry of Commerce
Illinois Biotechnology Firestarter Fund Clean Energy Trust
Innovation Organization G2T3V Heartland Mobile Council
Impact Engine Hyde Park Angels Illinois Department of
Junto Institute for Commerce & Economic
Hyde Park Venture Partners Opportunity
Entrepreneurial Leadership
i2A Fund Illinois Medical District
MATTER
IllinoisVENTURES Illinois Technology
Techstars
Irish Angels Association
VentureLab
Jump Capital Illinois Venture Capital
Wavetable Association
Lightbank
PeoriaNEXT
MK Capital
Quad Cities Chamber
OCA Ventures
of Commerce
Origin Ventures
Rockford Area Economic
Pritzker Group Venture Development Council
Capital
The Indus Entrepreneurs -
Sandbox Industries Midwest
Serra Capital Womens Business
Development Center
World Business Chicago
ISTI PARTNER SCHOOLS
Naperville North High Prospect High School
School Saint Viator High School
Niles North High School Senn High School
Niles West High School Solorio Academy
Normal Community Von Steuben Metropolitan
High School Science Center
Normal West High School Washington Community
North Chicago Community High School
High School Wheeling High School
Oak Park and River Forest
Williamsfield High School
High School
Palatine High School
Phoenix Military Academy
 BOARD OF DIRECTORS

CHAIRMAN
Timothy L. Killeen
President
University of Illinois

MEMBERS
Geoffrey Curtis Robert Fleming Alicia Lffler, PhD
Senior Vice President Vice President Associate Provost for Innovation
Corporate Communications Cyber, Unattended Systems, and New Ventures, Associate Vice
Horizon Pharma and Division Strategy, Provost for Research, Executive
Land and Self Protection Director, INVO
Linda Darragh (20142016) Systems Division Northwestern University
Executive Director Northrop Grumman Corporation
Kellogg Innovation and Robert Lowe
Entrepreneurship Initiative Laura Frerichs CEO
Northwestern University Director Wellspring Worldwide
University of Illinois Research Park
Daaron Dohler Warren Ribley
VP Head of Operations Chris Gladwin (20142016) President and CEO
R&D Strategic and Founder and Vice Chairman iBIO and iBIO Institute
Professional Affairs Cleversafe (now IBM
Takeda Pharmaceuticals Cloud Object Storage) Sundeep Vani
International, Inc. CEO Technology Director
Ocient Archer Daniels Midland Company
John Flavin
Associate Vice President of Shelley Stern Grach Lily Yeung
Entrepreneurship and Innovation Director of Civic Engagement Director of Corporate Development
University of Chicago Microsoft Chicago Molex

ISTC STAFF

Mark Harris Utsav Gandhi

President and CEO Program Manager,
Communications
Roxy Atienza
Director of Operations Bob Greenlee
Senior Advisor 222 Merchandise Mart Plaza
Allie Barwise Suite 1212
Managing Director Dave Machajewski Chicago, Illinois 60654
ISTI Program Director,
Innovation Initiatives
Matt Bragg 312.239.0350
Program Manager, Emma Niendorf info@ISTCoalition.org
Data and Policy Program Manager
ISTI www.ISTCoalition.org
Emily Cooper
Director of Programs
ISTI
Cover photo: mf-guddyx/istockphoto

18 ILLINOIS SCIENCE & TECHNOLOGY COALITION ANNUAL REPORT 2016