Innovation and US Competitiveness Tom Baruch Founder, Baruch Future Ventures The Global New Energy Summit 2011

1. Innovation and US Competitiveness Tom Baruch Founder, Baruch Future Ventures The Global New Energy Summit 2011

2. A time of change Baruch Future Ventures

3. Demise of Corporate Research R&D expenditures as share of economic output of selected countries: 1996-2007 Percent of GDP Bell Labs Average annual growth of R&D expenditures for the US, EU and Asian Economies: 1996-2007 Baruch Future Ventures Source: NSF Science & Engineering Indicators 2010

4. Moore’s Law Meets Mendel’s Law For the past 50 years Moore’s Law has driven innovation in electronics and biotechnology Transistors per Chip; Bases/person/day Year R.H. Carlson (2010) Biology is Technology Harvard University Press Baruch Future Ventures

5. US Universities continue to Innovate Science and engineering articles produced: 1999-2008 Share of region’s papers among world’s most cited Science and Engineering articles: 2007 Source: NSF Science & Engineering Indicators 2010 Source: NSF Science & Engineering Indicators 2010 Baruch Future Ventures

6. Falling Behind • 15% of graduating seniors in the US major in science or engineering • 2/3 of engineering graduates are non-US citizens • 1/2 of US graduate students are non-US citizens First university degrees in natural science and engineering, selected countries: 1996-2006 Kauffman Index of Entrepreneurial Activity by Nativity: 1996-2009 Source: The Kauffman Foundation Source: NSF Science & Engineering Indicators 2010 Baruch Future Ventures

7. Young Firms Account for the Bulk of Job Creation In 2007, the last prerecession year, young firms accounted for two-thirds of the economy’s new jobs Source: Kauffman Foundation, U.S. Census Bureau Baruch Future Ventures

8. Job Creation by Startups Jobs (in millions) Source: Kauffman Foundation, U.S. Census Bureau Baruch Future Ventures

9. VC’s as Brokers of Innovation BFV Baruch Future Ventures

10. Leadership Baruch Future Ventures

11. Innovation Agenda • K-12 education in reading, science and math • Basic research • R&D tax credits • Lower corporate taxes • Intellectual Property Protection • Ambassadors of entrepreneurship • Immigration Baruch Future Ventures

12. Convergence and Innovation The next 50 years will require collaborative, global and multi-disciplinary processes Energy and Materials Life Science Information Technology Innovation will happen at the borders where different disciplines meet Baruch Future Ventures

13. Bottlenecks in Commercializing New Technology A Major Opportunity - Closing the Scale-Up Financing Gap Accelerated Commercialization will occur at the intersection of problems and markets Materials Discovery Applications Development Commercial Products 10 years 10 years 20 years Intimacy of problems and markets is key Baruch Future Ventures

14. Accelerating Materials Discovery with Combi Synthesis Create Library Assay the Library Select Winners • Representative • Predictive • Automated: uses computational analysis Build new library based on best-performing materials • Biological or Material • Automated High-throughput Synthesis • Introduces Complexity and Novelty Market input Market input Optimized Final Product Platforms enable discovery of new materials >1000x faster than traditional methods

15. Semiconductor Industry Challenge A Major Opportunity - Closing the Scale-Up Financing Gap New materials drive IC performance more than reductions in scale Baruch Future Ventures

16. Intermolecular’s Solution Massively Parallel Processing Enables Faster Cycles of Learning Conventional R&D Approach One Process/Wafer Combinatorial R&D Approach Many Processes/Wafer Baruch Future Ventures

17. Intermolecular: Representative Project A Major Opportunity - Closing the Scale-Up Financing Gap Molecular Masking Layer for 32nm Copper Interconnect 7,635 experiments (deposition conditions) on 60 molecular types 18,300 characterization experiments • Using conventional methods and the same number of people: • It would have taken 5 years instead of 5 weeks to run this number of experiments. • Only 140 process conditions could have been analyzed, instead of 7600 4 Engineers 5 Weeks 2 Hits for Scale-up Using Moore’s Law to Accelerate Moore’s Law Baruch Future Ventures

18. Wild type Enzyme Evolved Commercial Biocatalyst Codexis Technology Platform A Major Opportunity - Closing the Scale-Up Financing Gap ProSAR Analytics Baruch Future Ventures

19. Wildcat Discovery Technologies A Major Opportunity - Closing the Scale-Up Financing Gap Battery Discovery Workflow Wildcat battery workflow enables automated synthesis formulation and testing of >1500 cells per week Baruch Future Ventures

20. Wildcat Discovery Technologies High Throughput Development of CM1 Wildcat has developed a “5V” cathode material with energy density >665 Wh/kg and 1200 Wh/L Baruch Future Ventures

21. FORO Energy Baruch Future Ventures

22. Innovation and Entrepreneurship will… Revitalize the Economic Power of the United States • Leadership • Education • Policies and Programs • R&D • Taxes • Business incentives Baruch Future Ventures

23. Baruch Future Ventures