WASHINGTON TECHNOLOGY CENTER — AT-A-GLANCE Spring 2003

In this issue:
*** 1. Industry-university funding program open
*** 2. Washington’s technology scorecard released
*** 3. Financing tool for rural technology companies
*** 4. SBIR series continues
*** 5. Companies meet state legislators
*** 6. WTC funds more projects
*** 7. Microfab Lab news
*** 8. Upcoming events
*** 9. Subscribe/unsubscribe

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*** 1. Industry-university funding program open ***

WTC awards over $1 million annually through the Research and Technology Development
(RTD) Program to support research partnerships between Washington State university
researchers and Washington companies.

RTD projects are an excellent way for companies to:

— leverage R&D dollars

— share financial risk of technology development

— complement and augment in-house expertise

— establish relationships with university researchers

— access trained graduate students

— access cost prohibitive equipment and resources unique to academia

Proposals are now being sought for WTC’s Spring 2003 RTD program.

WTC is initiating a two-phase RTD program. Phase I projects are 9 months long,
and successful completion is required before applying for a Phase II project.
Phase I awards are up to $40,000; Phase II awards are up to $100,000.

Other highlights of the revamped program include an increased focus on management
team qualifications, an application fee, and a focus on companies with 250 or
fewer employees.

If you have a potential project or need assistance finding the right research
partner, contact Laura Dorsey, 206-685-4809 or mailto:[email protected].

Spring 2003 RTD program dates:

Proposals due: May 1, 2003
Award Notification: June 19, 2003
Projects Begin: July 1, 2003

Download the Request for Proposal materials on our website: http://www.watechcenter.org/rfp/.

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2. Washington’s technology scorecard released ***

WTC’s third annual Index of Innovation and Technology for Washington State is
out. The 2003 report looks through a lens of 40 indicators to paint an objective
picture of the underlying health of the innovation economy in the state. It assesses
growth, financial capacity, human potential, competitiveness, quality of life,
and innovation capacity.

Some of the findings:
Despite our faltering economy, Washington still emerges as a state with a very
innovative and entrepreneurial economy. The state continues to lead the nation
in the creation rate of new companies and has the second highest growth rate
for employment in startup firms. Also on the positive side, the growth of non-aircraft
technology sectors has steadily increased.

While venture investment in Washington companies declined almost 60 percent during
the years covered by the Index, that’s not as rapid as in most other technology
regions. Washington remains among the top regions of the country for venture
investment, ranking ninth overall. Silicon Valley continues to attract an exceptionally
large share of investment–15 to 20 times more venture capital than Washington
State.

The Index does raise some reasons for concern. Washington State retains the dubious
honor of having the highest percentage of business closings in the country. Investors
are tentative. "Money makes these companies go around," said Lee Cheatham, WTC’s
Executive Director. "And they’re having a tough time finding enough of it right
now. Investors are still expecting higher returns than are available, so many
are sitting on the sidelines."

The Index also points out the slow rate of increase in elementary and secondary
students passing math proficiency–a key element for participating in the innovation
economy.

But overall, the third Index of Innovation and Technology shows that, even in
these shaky economic times, the foundations of innovation remain strong in Washington
State. People with new ideas keep right on inventing. And strong companies continue
to do well.

This year’s report has two added features–regional measures and benchmark measurements
against Washington’s Strategy for the Innovation Economy.

The entire report and executive summary are available online at http://www.watechcenter.org/techindex/.

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3. Financing tool for rural technology companies ***

The Washington Technology Center and Evergreen Community Development Association
are launching a Rural Technology Loan Fund (RTLF), designed to provide gap financing
or late stage product development loans for implementation of value-added production
processes and/or technology development. The ultimate purpose of this program
is to assist in the creation of family wage sustainable technology jobs that
help alleviate poverty in rural communities in Washington.

Loan funds may be used for development costs for patented technology, equipment
purchase, real estate, engineering costs, or working capital.

Rural technology-based companies in Washington, including start-ups and existing
businesses, are eligible to apply. Applicants must meet loan criteria and have
a strong business plan.

Details about the program are found at http://www.watechcenter.org/business/rtlf.html.
For more information, contact Laura Dorsey, 206-685-4809, mailto:[email protected]
or Mahnaz Eshetu, 206-577-1424, mailto:[email protected]. Information about the
Evergreen Community Development Association (ECDA) can be found at http://www.ecda.com.

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4. SBIR series continues ***

More than $1 billion will be awarded this year to small businesses developing
innovative technologies under the Small Business Innovation Research (SBIR) or
the Small Business Technology Transfer (STTR) programs. Companies who win SBIR
awards receive $75,000, $150,000 or even up to $750,000 in funding and research
support.

WTC, through its Washington State Federal and State Technology Partnership (WaFAST)
program, offers a series of breakfast meetings in Seattle to help small businesses
access these federal funds. Past meeting topics have included "The Nuts and Bolts
of SBIR" and "Tips from SBIR Proposal Reviewers."

The next event in the series is:
"SBIR and the National Institutes of Health"
April 3, 2003
7:30-9 a.m.
University of Washington campus, Faculty Center
Go to http://www.watechcenter.org/events/SBIR/networking5.html for more information
and to register.

Mark your calendar for the upcoming events on June 26 and October 2, 2003. Check
WTC’s events page at http://www.watechcenter.org/events/index.html for details.

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5. Companies meet state legislators ***

Several of the companies that WTC has supported had the opportunity to showcase
their developing technologies directly to legislators at the 2003 Association
of Washington Business’ (AWB) Legislative Reception. Held in Olympia, this event
is one of the largest gatherings of business leaders and public officials in
Washington.

Companies and researchers developed exhibits and product demonstrations featuring
WTC-funded projects. Legislators could see that technologies are being supported
from around the state. The lawmakers and their guests received hands-on experience
with new and future products from:

— Hyperion Innovations, Inc., Seattle, cordless soldering tool based on Cold
Heat(tm) technology

— InnovaTek, Inc., Richland, diesel fuel injection system for fuel cell processor

— MCD Technologies, Inc., Tacoma, heat transfer technology (Refractance Window(tm)
evaporator) for food drying

— RS Medical, Inc., Vancouver, bone growth stimulation devices

— VisionGate, Inc., Gig Harbor, optical tomography for cancer screening

The AWB is a diverse organization with a statewide membership of 3,700 small
and large businesses that employ more than 600,000 Washington residents. For
more information, call the AWB at 360-943-1600 or visit their website at http://www.awb.org/.

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6. WTC funds more projects ***

OMAX Corporation, Kent (http://www.omax.com/)
Researcher: Dr. Mamidala Ramulu, UW Dept. of Mechanical Engineering
OMAX is a supplier of waterjet equipment to the machining market. Their competitive
advantage lies in their software and patented control technology. The company
is building a remote and unattended version of their JetMachining(r) Center (JMC).
They are teaming with Dr. Ramulu to develop a proof-of-concept prototype consisting
of a software algorithm and associated hardware. The company’s goal is to improve
productivity and ease of use for its customers’ machining operations.

Magic Wheels, Inc., Seattle (http://www.magicwheels.net/)
Researcher: Dr. Brian Flinn, University of Washington Dept. of Materials Science
& Engineering
Wheelchair users have long sought to transport themselves more efficiently to
increase their mobility and independence; and to reduce the strain on their arm
joints. Current wheelchairs allow limited mobility on inclines and uneven terrains.
Magic Wheels, Inc. has developed a simple, cost-effective mechanism in a 2-speed
geared drive wheel that enables wheelchair users to negotiate obstacles such
as slopes and challenging surfaces with less strain. Magic Wheels(tm) (also the
product) incorporates a patent-pending two-speed gear drive in quick release
wheels that can be easily installed on existing wheelchairs. In addition to the
extra climbing power provided by the gears, it also offers an advanced hill holding
feature (with pushrim override) and a pushrim operated down hill assisted braking
feature (for finger tip braking–no more burned hands), without relying on complex
electronics or cumbersome motors and batteries. Dr. Brian Flinn is working with
the company to test the structural strength of this new manual wheelchair wheel
that contains a carbon-fiber composite wheel core.

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7. Microfab Lab news ***

New Microfab Lab web site launched!
The Lab recently unveiled its updated and improved web site: http://microfab.watechcenter.org/.
New features include direct links to process and equipment capabilities, plenty
of illustrations, and a descriptive format that addresses questions from the
beginning MEMS researcher to the seasoned MEMS professional.

Currently under development is an enhanced password-protected lab user section,
which will enable users to: 1) make, change or cancel equipment reservations,
2) enroll in or cancel training, 3) read and print all lab documentation, 4)
list all equipment the user is authorized to operate, and 5) order lab supplies.

The Lab is expanding its business to a national audience. The web site is the
most effective tool for providing information to a broad technical audience.
Check it out!

Latest equipment arrivals
The capabilities of the Microfabrication Lab were strengthened as the result
of two equipment donations from industrial sources:

Intel SEM
Intel has provided the Microfab Lab with an AMRAY 3800 scanning electron microscope
(SEM) from their R&D facility in Hillsboro, OR. The SEM can accommodate wafers
up to 8" in diameter, and the stage tilts 45º to allow full scanning of processed
wafers without repositioning. In addition, the SEM has an EDAX (energy-dispersive
x-ray analysis) system that permits chemical identification of materials being
imaged. The AMRAY SEM represents a valuable addition to the suite of inspection
and characterization tools available in the Lab.

Trion RIE
Trion Technology has donated a Mini-Lock II reactive ion etching (RIE) system
to the Lab. This plasma etching tool is a state-of-the-art version of the Lab’s
current Trion Phantom RIE system, and includes an inductively-coupled plasma
(ICP) source to increase etching performance, a load lock to minimize the etch
chamber’s exposure to atmosphere, and an electrostatic chuck for secure wafer
hold-down during processing. The new RIE will allow a new range of materials
to be plasma-etched, at enhanced rates, and with improved precision. The system
is expected to be on line in April.

Marketing intern joins staff
Rachel Kuller joined the Lab’s staff in March as a student intern. A master’s
candidate in sociology, Rachel has a B.S. in mechanical engineering from Harvard
and several years’ R&D experience at Hewlett-Packard. Rachel’s work will include
market research for current and new process capabilities to better serve the
Lab’s client base.

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8. Upcoming events ***

SBIR and the National Institutes of Health
Breakfast meeting sponsored by WTC and the WaFAST Program
April 3, 2003
Seattle, WA
http://www.watechcenter.org/events/sbir/networking5.html

NW Energy: Turning regional resources into profit
Sponsored by the Northwest Energy Technology Collaborative and organized by the
Portland Business Alliance
April 9, 2003
Portland, OR
http://www.wliinc3.com/cgi/foxweb.dll/wlx/cal/wlxprofile?caleid=471&cc=PORLMCC

Powering Forward–Northwest Energy Conference
Sponsored by the Spokane Area Chamber of Commerce
April 14-15, 2003
Spokane, WA
http://www.spokanechamber.org/powerforward.htm

The Voice of Economic Development in Washington
Washington Economic Development Association’s Spring Meeting
April 15-16, 2003
Pasco, WA
http://www.wedaonline.org/weda/Spring_meeting_agenda.htm

WSU 2003 EECS Open House
Sponsored by Washington State University School of Electrical Engineering and
Computer Science
April 21, 2003
Pullman, WA
http://www.eecs.wsu.edu/~corporat/announcements.html

MEMS Reality Short Course
Sponsored by Alumina Micro Training
May 14-15, 2003
Seattle, WA
http://www.aluminamicro.com/mems.html

Intensive Courses in Nanoscience and Nanotechnology
Sponsored by University of Washington’s Center for Nanotechnology, Pacific Northwest
National Laboratory, and National Science Foundation
Courses offered May 2003-May 2004; first course is May 19-30, 2003
Richland, WA
http://www.nano.washington.edu/pnnl/overview.html

This newsletter is issued four times a year. Please forward your comments, questions
or news items to Ellen E. Barker, editor of AT-A-GLANCE, 206-543-7994 or mailto:[email protected].

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