Technology Development Program (TDP)

Technology Development Program (TDP) is sponsored by Arkansas Science and Technology Authority (ASTA). The Technology Development Program (TDP) provides funding to businesses that engage in science and technology advancements in Arkansas.

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18 Ark. Code R. 002 - Funding Program of the division of Science and Technology Act 859 of 1983 created the Arkansas Science and Technology Authority (ASTA) as a state agency to provide leadership, direction, incentives, and technical assistance to enable Arkansas to gain the advantages and benefits of advanced science and technology.

This enabling legislation gave ASTA broad authority to develop programs and rules; receive money, property, services, or other things of value; acquire, own, and transfer real and personal property of all types; execute contracts and agreements; invest funds in lawful purposes; and finance scientific and technical endeavors through the provision of grants, loans, and other forms of assistance.

Act 409 of 1985 strengthened ASTA's powers by amending Act 859 of 1983 to enable ASTA to foster the development of high-technology industries within the State of Arkansas, assist minority businesses in obtaining financial assistance under programs of the act, and support basic and applied research in Arkansas-based colleges and universities.

Subsequent amendments added emphasis on ASTA's role in small business research and development, development and promotion of product and process technologies, and providing assistance to qualified medical companies.

Act 803 of 1989 authorized creation of the Centers for Applied Technology (CAT) Program to encourage greater collaboration between private enterprises and Arkansas- based colleges and universities in the development and application of new technologies.

Finally, Acts 7 and 8 of the First Extraordinary Session, 2015, provided for a Type 2 transfer of ASTA to the Arkansas Economic Development Commission (AEDC), and renamed ASTA as the Division of Science and Technology of the Arkansas Economic Development Commission (Division).

Pursuant to authority granted at § is granted the powers necessary to carry out programs delineated at § 15-3-109 , which include: basic research at Arkansas-based colleges and universities as specified in applied research partnerships between private industry and Arkansas-based colleges and universities and matching funds from private sources for proposed applied research projects as specified in § 3.

Assisting small businesses in identifying and applying for funds to conduct research and development on innovative knowledge and technology from college, university, and government laboratories in cooperation with Arkansas-based colleges and universities, facilities to foster the growth of technology-based enterprises; 6. Developing emerging product and process technologies which contribute to business and economic growth; 7.

Engaging in innovative demonstration and pilot projects involving improved education and preparation of the future workforce in the areas of science, technology, and mathematics; and 8. Transferring knowledge and technology from colleges, universities, government entities and laboratories, and other sources of innovation to public schools.

Funding Programs of the Division of Science and Technology of the Arkansas Economic Development Commission The following programs, established in accordance with the authority granted above, are governed by these rules.

Seed Capital Investment Program The purpose of the Seed Capital Investment Program (SCIP) is to foster the formation and development of innovative, technology-based enterprises that will stimulate the economy of Arkansas by creating high-wage employment, leverage private investment, increase tax revenues, and advance the benefits and opportunities realized through advanced science and SCIP funds may be used by AEDC to purchase qualified securities issued by Arkansas- based enterprises seeking initial capitalization of scientific and technological projects.

SCIP investments shall be in the form of the following qualified securities including, without limitation: * a combination of such financing arrangements.

Enterprise eligibility requirements include the following: (a) The enterprise's principal place of project of the enterprise shall be scientific or technological, or both, in nature and promote the purpose of AEDC by providing scientific and technological benefits to Arkansas; (c) The enterprise shall complete the application submittal process delineated in Section II. A.

(iii) of these rules; (d) Not more than five hundred thousand dollars ($500,000) shall be invested by AEDC in the qualified securities of any one (1) enterprise. Applicants for SCIP funds shall submit one (1) completed signed application, utilizing forms provided by AEDC, and may be subject to an interview or site visit, or both. Applications shall include: A.

The legal name, address, North American Industry Classification System classification, and business filing status of the enterprise; B. The names and contact information of professional staff affiliated with the enterprise; C. A list of key officers, owners, and personnel, including senior technical staff (attach resumes); D.

Sources(s), amount(s), and anticipated uses(s) of AEDC and non-AEDC funds; E. A brief description of the business of the project, including the technology involved, for which funds are enterprise's stage of development in relation to the project; H.

A statement of anticipated economic impact including the number, location, occupational classification, and compensation business plan, including a description of the enterprise and its background, management, product(s), and market(s); and J. Other information as requested by AEDC.

Application Review and Approval Process No financial commitment or approval shall be made by the Executive Director of the Arkansas Economic Development Commission (Executive Director) to an applicant until the applicant has completed the following review and approval process.

applications will be evaluated by Division staff for completeness and for the potential to effectuate the formation and development of innovative, science- or technology-based enterprises that will stimulate the economy of Arkansas through increased high-wage employment and leveraging of private investment. Review criteria include, without limitation: A. The application is signed and complete in accordance with Section II.

A. (iii) of these rules; B. Investment proceeds will be used to cover the initial capitalization needs of the enterprise; C.

Evidence has been provided showing that the enterprise has a reasonable chance of success; D.

The enterprise shall be able to demonstrate that it has been unable to secure sufficient capital from traditional sources on terms that would enhance the success of the the reasonable potential to create a substantial amount of primary employment entrepreneur and other founders of the enterprise have already made or are contractually committed to make substantial financial and time commitments to offered by the enterprise to AEDC for purchase are qualified evidence showing a reasonable possibility that AEDC will recoup at least its commitment has been made by the enterprise to report financial data to AEDC.

Commitments shall include a requirement for an annual or other periodic audit of the books of the enterprise, and for such control on the part of AEDC as the Executive Director shall consider prudent over the management of the enterprise, including, at the discretion of the Executive Director and without limitation, the right of access to financial and other records of the as determined by the Executive Director.

(b) Applicants may be subject to an interview or site visit, or both, during the application review process; (c) Division staff shall prepare a project summary of each project reviewed in accordance with criteria listed in step The Executive Director may request an independent review of the application, including the technology employed by the applicant, by an external expert or external experts in accordance with Section V of these rules; (e) Optional Step: The Executive Director may request Division staff to submit project summaries to the Commercialization Committee of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission (Commercialization Committee) for review.

If so requested: A. The Commercialization Committee will review projects in accordance with program B. Applicants may be invited to present their projects before the Commercialization Committee; C.

The Commercialization Committee may ask applicants for additional information before recommending projects for Commercialization Committee support will be forwarded to the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission (Board) for review; and E. The Board will vote, by simple majority, to determine whether or not to recommend project funding.

(f) Division staff will prepare a Resolution for Funding for each project recommended for funding and distribute for recommended by the Commercialization Committee, the Secretary of the Board will sign the Resolution for Funding and forward to the Executive Director, or his or her designee, after reviewing all recommendations, will sign Resolutions for Funding for approved projects; A.

Unsuccessful applicants will be notified in writing by Division staff. Approved applicants will be required to execute a written Investment Agreement outlining the amount, terms, and conditions of the qualified security purchase prior to receiving funds; and (i) Funds shall be disbursed to enterprises in accordance with terms and conditions of the Investment Agreement.

Development Program (TDP) The purpose of the Technology Development Program (TDP) is to assist in commercializing new, technology-based products and processes created or developed by inventors, businesses, Arkansas-based colleges or universities, and federal laboratories located in Arkansas.

The program is intended to provide flexible "bridge" financing in the form of grants of up to $100,000, for projects to develop qualified technologies.

Applicant eligibility requirements include the following: (a) The qualified applicant's principal place of business is in Arkansas; proposed TDP project shall promote the benefits of science and advanced technology to the State of Arkansas and its citizens by commercializing new application is complete and has been submitted by a qualified submit a well-developed and defined project plan in accordance with requirements of Section II. B.

(iii) of these rules; and (e) A nonpublic applicant shall submit a nonrefundable fee, via check, of one dollar ($1) with the preliminary Application Submittal Process Applicants for TDP funds shall submit one (1) completed signed application, and, if a non-public applicant, a nonrefundable fee of one dollar ($1), under forms provided by the Division, and may be subject to an interview Applications shall include the following information: A.

The legal name, address, North American Industry Classification System classification, and business filing status of names and contact information of professional staff affiliated with the officers, owners, and personnel, including senior technical staff (attach D. Sources(s), amount(s), and anticipated uses(s) of AEDC and non-AEDC funds; E.

A brief description of the project, including the technology involved, for which funds are requested; F. An explanation of the business's stage of development in relation to the project; G. A statement of anticipated economic impact including the number, location, occupational classification, and compensation business plan, including a description of the business and its background, management, product(s), and service(s); and I.

Other information as requested by shall also include a well-developed and defined project plan, showing progression from idea to prototype to production, which includes the following: A. A description of the proposed product, process, or technical innovation; B. An assessment (if applicable) of previous research and development efforts that strengthens technical claims; C.

Potential sources of prototype any known barriers to production of the product (e.g., process, materials, description of the product to be commercialized, including potential manufacturers, distributors, niche markets, etc.; F. A description of the implementation plan for the accomplishment of the project, including a: ii. Narrative description of the use of funds; and iii.

Listing of any required supporting facilities, equipment, and for the proposed project period; A description of the qualifications of key personnel including resumes; I. A statement of economic impact, including without limitation: i. Potential job iii.

Value added to existing description of all methods used to protect intellectual properties including Review and Approval Process No financial commitment or approval shall be made by the Executive Director until a qualified applicant has completed the following review and approval process. Division staff will evaluate applications for completeness based on the following five factors: A. Technical Feasibility i.

Is there a sufficient description of the proposed product, process, or innovation to derive a sound invention based upon scientific principles; iii. Is there previous research or development that substantiates the technical feasibility; iv. Does it require redesign, rebuilding, or project technically innovative?

B. Production Feasibility i. Can it be produced economically and in sufficient quantities using existing production technology; ii.

Can it be produced safely meeting legal, liability, product infringement, and pollution guidelines; and iii. How many sources are willing to produce Feasibility i. What specific customer needs does the product or process satisfy; ii.

Will the market support the process, or innovation provide a competitive edge; v. Is there adequate financial support the implementation plan; vii. Is the commercialization plan valid; viii.

Can key personnel support Potential i. Will the project impact project have job creation potential; iii. Does the technology add value to i.

Has a patent been applied for; ii. Have similar patents been granted; and iii.

Can the concept be protected (b) Applicants may be subject to an interview or site visit, or both, during the application review process; (c) Division staff shall prepare a project summary of each project reviewed in accordance with criteria listed in step The Executive Director may request an independent review of the application, including the technology employed by the applicant, by an external expert or external experts in accordance with Section V of these rules; (e) Optional Step: The Executive Director may request Division staff to submit project summaries to the Commercialization Committee for review.

If so requested: A. The Commercialization Committee will review projects in accordance with program B. Applicants may be invited to present their projects before the Commercialization Committee; C.

The Commercialization Committee may ask applicants for additional information before recommending projects for Commercialization Committee support will be forwarded to the Board for review; E.

The Board will vote, by simple majority, to determine whether or not to recommend project staff will prepare a Resolution for Funding for each project recommended for funding and distribute for signature(s); (g) For projects recommended by the Commercialization Committee, the Secretary of the Board will sign the Resolution for Funding and forward to the Executive Director; (h) The Executive Director, or his or her designee, after reviewing all recommendations, will sign Resolutions for Funding for approved projects; A.

Unsuccessful applicants will be notified in writing by Division staff. B.

Approved applicants will be required to execute a written agreement outlining the amount, terms, and conditions of the funding, in the form of a Royalty Agreement, prior to receiving be disbursed to approved applicants in accordance with terms and conditions of Technology Transfer Assistance Grant The purpose of the Technology Transfer Assistance Grant (TTAG) Program is to increase Arkansas industry's competitiveness through technical and operational advancements by providing funds for the transfer or deployment, or both, of innovative technology to Arkansas-based enterprises to resolve identified technology-based, industry-driven problems, issues, or TTAG is intended to provide financing that allows a business's specific technology to better compete for funding from other Division TTAG funds may be used to fund costs associated with engineering or technical support fees; database searches; travel; responses/cash matches to the Small Business Innovation Research Program or the Small Business Technology Transfer Program; and other costs decided on a case-by-case basis.

TTAG funds are generally not approved to purchase fixed assets or training.

Maximum AEDC funding per project shall not exceed $3,750 based on * First $2,500 of project costs; and * Additional amount up to $1,250 based upon a 50:50 match with the enterprise assisted with TTAG funds for the next $2,500 of project All costs in excess of $5,000 shall be assumed by the assisted enterprise, however, additional TTAG funds may be awarded at the discretion of Unlike most Division programs, qualified applicants are technology transfer resource providers approved by the Division.

Applicant eligibility requirements include the following: (a) Applications will be evaluated based upon the following criteria: A The application is complete and has been submitted by one (1) or more qualified applicant(s) (technology transfer resource providers); B.

The enterprise being assisted by the applicant(s) is a business with its principal place of business in project is to promote the benefits of science and advanced technology to Arkansans by identifying and transferring innovative technology to resolve a specific problem, issue, or concern of an Arkansas- based enterprise; D. Not more than $3,750 (with appropriate enterprise matching funds) is being requested from AEDC.

An enterprise may receive only two (2) TTAG awards in any one (1) state fiscal Application Submittal Process Applicants for TTAG funds shall submit one (1) completed signed application, utilizing forms provided by the Division, and may be subject to an interview or site visit, or both. Applications shall include: A.

The legal name, address, phone number, and North American Industry Classification System classification of the enterprise being assisted by the technology transfer title(s), and contact information of professional staff affiliated with the the technology transfer resource provider; D. The name(s), title(s), and contact information of professional staff affiliated with the technology transfer technology covered in the application; F.

A brief description of the business and competitive challenges facing the business enterprise; G. A brief description of the specific problem and anticipated solution to the project to be addressed; H. A description of how the technology transfer resource provider will implement the solution to the the business enterprise will maintain the solution after implementation; J.

A listing of specific tasks to be performed by the project participants; K. The anticipated financial impact of the information as requested by AEDC. Application Review and Approval No financial commitment or approval shall be made by the Executive Director until the qualified applicant has completed the following review and approval process.

applications will be evaluated by the AEDC's TTAG Review Committee for completeness and for the potential to identify and transfer innovative technology to solve a specific technology-based problem, issue, or concern of an Arkansas- based enterprise. Review criteria include, without limitation: A. The application is complete; B.

The qualified applicant and the associated enterprise shall have the support and resources available to ensure a reasonable probability of project success given that a transfer of appropriate applicant or the Division shall be able to locate appropriate technology transfer resources willing to assist with the project; D. The proposed technology transfer project shall be technically feasible.

The transfer of technology shall improve the enterprise's technical competitiveness, operational competitiveness, or both, and add value to new or existing products, processes, or services; E. The proposed technology transfer project shall have commercial feasibility potential.

The transfer of technology should provide the enterprise with the ability to compete more effectively in the shall have a time frame of no longer than ninety (90) days.

(b) Applicants may be subject to an interview or site visit, or both, during the application review independent review of the application, including the technology employed by the applicant, by an external expert or external experts in accordance with Section Director, or his or her designee, after reviewing the TTAG Review Committee's recommendations, will specify which applicants may receive funding. A.

Unsuccessful applicants will be notified in writing by Division staff. Approved applicants will be required to execute a written agreement outlining the amount, terms, and conditions of the funding. (e) Division staff shall provide a list of projects funded with TTAG funds to the Board.

Basic Research and Applied Research Basic Research Grant Program The Basic Research Grant Program provides matching grant funds to help promote and support the growth and development of scientists working in Arkansas and to enhance the status of science and technology in Arkansas-based colleges and universities by funding basic research.

AEDC may fund up to sixty percent (60%) of the total cost of the basic research project being funded.

Remaining project costs shall be funded with cash or in-kind services provided by the college or university proposing Applied Research Grant Program The Applied Research Grant Program provides matching grant funds to help create applied research partnerships between private industry and Arkansas-based colleges and universities to stimulate the transfer of science and technology.

Private industry match may be in the form of cash or new AEDC may fund up to fifty percent (50%) of the total cost of the applied research project being funded.

Remaining project costs shall be funded with cash or new machinery and equipment provided by a business or industry cosponsoring the project; however, AEDC may fund up to sixty-six and two-thirds percent (66 and 2/3%) of the applied research project if the participating private industry is principally located in Arkansas and employs up to fifty AEDC will approve for funding only those applied research projects which are likely to enhance employment opportunity within Applicant eligibility requirements include the following: (a) Applications will be evaluated based upon the following criteria: A.

The application is complete and has been submitted by a qualified applicant in accordance with purpose of the project is to promote the benefits of science and advanced technology to Arkansans by addressing an area of either basic or advanced research.

Basic research projects shall establish or build upon an established institutional base of research capability and result in permanent and significant enhancement of the institution's research capabilities; C. The Arkansas-based college or university has committed to provide the requisite match for the research program for which the applicant is applying.

Potential applicants for Basic Research Program and Applied Research Program grant funds shall submit one (1) completed, signed, and dated application, utilizing forms provided by the Division, and may be subject to an interview or site visit, or both, during the application review process. will be evaluated by Division staff for completeness and for the potential to enhance research at Arkansas-based colleges and universities.

No financial commitment shall be made by the Executive Director to an applicant until the applicant has completed the following review and approval process. A. Applications shall consist of the following documents: i.

A project summary and college or university applying for research funds; iii. The names, titles, addresses, and telephone numbers of the principal investigator and the institutional contract technical abstract of the project proposal; v. The amount of funds requested from vi.

A statement of how the specific objectives of the project relate to AEDC research program literature pertinent to the proposed research, including an assessment of clearly-described implementation plan for the accomplishment of the project including: 1. A description of the proposed activities, including experimental design and methods; 3.

Information detailing the availability of support facilities, equipment, and personnel necessary for the attainment of the project's objectives. ix. A detailed budget for the current and upcoming fiscal years including personnel, fringe benefits, equipment, supplies, travel, indirect costs, and support; x.

A statement and letters of commitment detailing the source and amount of the required matching funds; xi. A statement of plans for future support of the research from sources other than AEDC including identification of anticipated funding sources and likely titles of the proposals to be the qualifications of the personnel to be involved in the proposed project. Information shall include: 1.

Academic credentials of key professionals; 2. A list of recent publications in accepted professional journals; and record of past and current grant support received. xiii.

Acknowledgment that a final summary report will be submitted to the Division within sixty (60) days after project completion. The report shall include: 1. A topic sentence restating the project's major thesis; 2.

The primary objectives and scope of the statement of findings and implications; and 5. Other information as requested by the Projects shall meet the following administrative, technical, and scientific criteria: i.

The scientific merit of the proposal, including the quality and importance of the proposed research and the suggested research procedures; The competence of the professional personnel involved in the project as evidenced by relevant academic training, research, and publications; iii.

The availability of administrative support and resources necessary to ensure a reasonable probability of project implementation plan and the likelihood that the project objectives will be project to attract support from third-party sources; and vi. The overall probability of success of the Applications for Applied Research Grant funds shall meet the following additional fiscal criteria: i.

The commercial feasibility of the proposed research; ii. The capacity of the proposed project to enhance employment opportunities in Arkansas; and iii. The capacity of the project to attract Applicants may be subject to an interview or site visit, or both, during the application review process; Division staff shall prepare a project summary of each project reviewed in accordance with criteria listed in step II.

D. (iv)(a); F. Optional Step: The Executive Director may request an independent review of the application, including the technology employed by the applicant, by an external expert or external experts in accordance with Section V of these rules; G.

Optional Step: The Executive Director may request Division staff to submit project summaries to the Research Committee of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission (Research Committee) for review. If so requested: i. The Research Committee will review projects in accordance with program rules; ii.

Applicants may be invited to present their projects before the Research Committee; iii. The Research Committee may ask applicants for additional information before recommending projects for Research Committee support will be reviewed by the Board; v. The Board will vote, by simple majority, to determine whether or not to recommend project funding.

H. Division staff will prepare a Resolution for Funding for each project recommended for funding and distribute for recommended by the Research Committee, the Secretary of the Board will sign the Resolution for Funding and forward to the Executive Director; and J. The Executive Director, or his or her designee, after reviewing all recommendations, will sign Resolutions for Funding for approved projects; i.

Unsuccessful applicants will be notified in writing by Division staff. ii.

Approved applicants will be required to execute a written agreement outlining the amount, terms, and conditions of the Business Incubator Program The purpose of the Business Incubator Program is to enhance economic development by stimulating technological innovation and fostering the growth of technology-based enterprises to create new employment opportunities for Arkansans through the establishment of Arkansas-based college and university incubators.

The intent of the program is to create an entrepreneurial and technological environment drawing upon a diversity of business enterprises which will stimulate the innovation process and result in economic benefits to Arkansans. Applications for funding should emphasize innovation, entrepreneurial engagement, leveraging of private capital to the greatest extent possible, and local business support.

Applicant eligibility requirements include the following: (a) Applications will be evaluated based upon the following criteria: A.

The application is complete and has been submitted by an Arkansas-based state college or university that is supported by general revenue appropriations from the Arkansas General Assembly; project shall propose the creation of a facility to locate a business project shall create an environment that fosters the success and growth of technology-based enterprises which contribute to the state's economic development.

Such an environment might involve the presence of well-established technology businesses and non-technology supportive businesses. applicants for Business Incubator Program funds shall submit one (1) completed signed application, utilizing forms provided by the Division, and may be subject to an interview or site visit, or both, during the application review process. A.

Applications shall consist of the following documents: i. The name and address of the college or university applying for funds; ii. The name, title, address, and telephone number of the contract official; iii.

The title and description of the proposed project, including 1. An explanation of how the incubator addresses local economic development needs; 2. The incubator's concept; 3.

The objectives of the proposed project; 4. The anticipated public benefits of the incubator project. iv.

A discussion of the proposed business incubator facility operations, including without limitation: 1. Any entrance and graduation requirements discussion of how the project proposes to establish an environment which stimulates innovation and economic development; 3.

A list of the basic services to be provided to incubator tenants, including technological and managerial the local business community will support the incubator efforts; and 5. An explanation of the incubator facility's any cooperating institutions; statement of any other financial resources, including private funds that will be used during the project and afterwards for continuous operation; vii.

A list of key project personnel including their education, related experience, and biographic proposed agreements with consultants who may develop or manage the incubator amount(s), and anticipated uses(s) of AEDC and non-AEDC funds; x. A timetable showing major milestones for completing the project and the overall project duration; and xi.

Any other information required by Application Review and Approval No financial commitment shall be made by the Executive Director to an applicant until the applicant has completed the following review and will be evaluated by Division staff for completeness and adherence to eligibility criteria. Review criteria include, but are not limited to: A. Completeness of the application; B.

The comprehensiveness of the proposed C. The cost-effectiveness qualifications of the key project personnel; E. The anticipated public benefits of the merit of the proposal; and potential of the project to assist the Division in carrying out its mission to bring the benefits of science and technology to Arkansans.

(b) Applicants may be subject to an interview or site visit, or both, during the application review process; (c) AEDC may request an independent review of the application, including the technology employed by the applicant, by an external expert or external experts in accordance with Section V of these provide a project summary to the Commercialization Committee for each project (e) All applications will be reviewed by the Commercialization Committee in accordance with program rules.

Prior to final approval: A.

Applicants may be asked to present their projects before the Commercialization applicants for additional information before recommending projects for receiving Commercialization Committee support will be reviewed by the (g) If the Board votes, by simple majority, to approve the application for funding, Division staff will prepare a Resolution for Funding for signature by the Secretary of the Board and the Executive Director; Executive Director, after reviewing Board recommendations, will specify which applicants may receive funding.

A. Unsuccessful applicants will be notified in writing by Division B. Approved applicants will be required to execute a written agreement outlining the amount, terms, and conditions of the funding.

Centers for Applied Technology The purpose of the Centers for Applied Technology (CAT) Program is to encourage greater collaboration between private