FAQ

1.What is ASL?
2.How is ASL different from the Institute for Shock Physics?
3.Why does ASL need to be part of WSU?
4.Why establish ASL in Spokane?
5.Where is ASL physically located?
6.What economic benefits does ASL bring to Spokane and the region?
7.Who will use the contract services of ASL?
8.What similar models to ASL are there in other parts of the country?
9.How is ASL different from a Department of Energy (DOE) National Laboratory?
10.Why is ASL in need of an endowment?
11.What kind of people will be hired with the endowment funding?
12.How many people will ASL hire with endowment funding?
13.What is the fundraising timeline for the ASL endowment?
14.How much do you expect to bring in annually in contracts to ASL?
15.How will ASL interact with other academic institutions in Spokane?
16.Who will own the intellectual property created by ASL?
17.What mechanisms are there for licensing that property to allow for spin offs of new private industries from the research?
18.Will ASL earn revenues from licensing intellectual property?
19.Will ASL have a business manager and what will that person do?
20.Will ASL have the capacity to spin off a “second ASL (ASL2)” which would function as an independent company?
21.Why should I donate to ASL?
22.How can I structure my gift? Can you accept appreciated stock?

1. What is ASL?

The Applied Sciences Laboratory (ASL) is a Spokane-based, contract research organization that will undertake a broad range of applied research projects for government agencies and private corporations, including the development of commercial applications. ASL, formed in 2004, is the applied research component of Washington State University’s Institute for Shock Physics. Through strategic investments in physical sciences and advanced technology, ASL will provide the intellectual and scientific foundation for fostering economic growth in the region.

The organizational structure of ASL will be similar to a shopping center. The diagram below shows the technical thrusts (or shops) at the top and the supporting capabilities (at the bottom) that comprise the ASL. Similar to a regular shopping center, these shops will be self-sustaining after an initial start-up investment. As Spokane’s intellectual shopping center, ASL will be customer driven and will provide state-of-the-art research and development to address customer needs. Primary business thrusts have been defined and additional thrusts may be added to focus on partnerships with existing Spokane and Washington companies. The ASL will also have significant facilities to both support the technical thrusts and to provide services for outside companies.

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2. How is ASL different from the Institute for Shock Physics?

ASL’s applied research activities build on, but are different from, the Institute’s fundamental research activities in Pullman. 21st century technical advances, related to physical sciences and engineering, will rely heavily on innovations in Materials Science (including Advanced Materials), Optical Sciences, and Computer Modeling and Simulations. Thus, these three areas will form the core of ASL capabilities. The benchmarks by which ASL will be judged include:

The Institute for Shock Physics (ISP), apart from ASL, is a DOE supported, multidisciplinary research organization that emphasizes a broad range of fundamental research activities related to shock wave science and understanding condensed matter response under dynamic and static high pressures. The benchmarks by which the ISP’s fundamental research efforts will be judged include:

While multidisciplinary research excellence and innovations are emphasized for both the applied research (ASL) and the fundamental research part of ISP, the two sets of activities are quite different and very complementary. ASL will emphasize applied research and technology, and have a broader charter. ISP’s fundamental research effort will have a narrower charter focusing on dynamic and static high pressure science.

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3. Why does ASL need to be part of WSU?

ASL benefits greatly from being a part of WSU and the Institute for Shock Physics. If ASL was not a part of WSU, several key advantages would be eliminated:

University research has been linked directly to economic growth. Consider the following quote:

"In the new global economy, the key to commercial success is knowledge. The asset with the greatest leverage in the knowledge economy is the modern research university." (Paul Grogan, President of the Boston Foundation.)

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4. Why establish ASL in Spokane?

A contract research organization must be located in an urban environment because proximity to a major airport and interactions with the corporate sector are essential for its success. Thus, Spokane is the logical choice of location for ASL.

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5. Where is ASL physically located?

ASL is based at the Riverpoint Campus in Spokane. Experimental facilities are currently co-located in Spokane and Pullman: the nanomaterials laboratory is housed on the WSU Spokane campus and the pulsed power facility is in the Shock Physics Building on the WSU Pullman campus. As ASL grows, dedicated space for the facilities will be located within the University District. In preparation for expansion, the identification of new space is under evaluation.

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6. What economic benefits does ASL bring to Spokane and the region?

ASL, like any startup venture, will initially expend significant funds for equipment and facilities. The costs of personnel salaries and benefits plus operations will grow in time and eventually become the major expenditure. Approximately 6-8 people will be employed for each $1 million in research expenditures. Economists project that for every research-funded-hire, another 2.15 jobs are created indirectly. That is, for every $1 million expended, 20-25 jobs will be created in the Spokane community. Research grant and contract awards for ASL in Spokane are expected to grow to $3-$5 million per year. This will equate to approximately 60-100 well-paying positions.

In addition to the direct support of new positions, ASL will serve Spokane’s technology based companies through availability of research infrastructure and, more importantly, through jointly funded, cooperative research and development contracts coming from sponsors outside the region. These partnerships will directly benefit Spokane-based companies and the local economy. Additional benefits for the Spokane economy will also be realized through the growth of ASL. University research and diversification will provide a strong foundation for economic growth and for attracting high-technology companies to the region. Specific benefits include:

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7. Who will use the contract services of ASL?

In the first 3-5 years, federal agencies will be the primary sponsors and beneficiaries of ASL’s research and development activities. Applied research and engineering areas identified initially are optimally suited for supporting the Department of Defense (DOD) and DOE missions. For example, the Department of the Navy is concentrating its scientific and technological resources to achieve Future Naval Capabilities (FNCs), and an applied science and technology effort has been devoted to providing the means to achieve these capabilities. Among the FNCs is the Advanced Capability Electric System, commonly referred to as the “all electric ship”. ASL’s initial research thrusts directly support the strategic interests of the Navy.

By broadening the scope of the ASL activities of interest to the DOD, industrial partnerships can be developed that build on the initial research areas. It is envisioned that within three years partnerships with Spokane companies and institutions to explore novel approaches to problem solving will be a central element of ASL activities. As Spokane’s intellectual “shopping center”, ASL will be customer driven and will provide state-of-the-art research and development to address customer needs.

ASL will also function as a technical resource for the Spokane community and will provide the needed scientific/technical equipment and the expertise to help local companies. Many companies need solutions to scientific and technical problems, but do not have the resources for in-house expertise. The Materials and Optical Characterization Facility will offer advanced characterization technology to examine materials and provide information about composition, structure, and properties of relevant materials. The Computational Modeling and Simulations Capability will offer advanced computing resources for computer simulations and theoretical modeling.

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8. What similar models to ASL are there in other parts of the country?

Applied Research Organizations that are similar to ASL include:

The Desert Research Institute (DRI):http://www.dri.edu/
The Desert Research Institute (DRI) was established in 1959 by the Nevada State Legislature and is the nonprofit research campus of the University and Community College System of Nevada (UCCSN). DRI blends academia and entrepreneurship. DRI employs more than 500 faculty, support staff, and students who are engaged in a research enterprise generating approximately $45 million in total annual revenue.

Georgia Tech Research Institute (GTRI): http://www.gtri.gatech.edu/
The nonprofit applied research arm of the Georgia Institute of Technology is located in Atlanta, GA. Chartered by the Georgia Legislature in 1919, the State Engineering Experiment Station (EES), as GTRI was known then, was formed to support Georgia industry with high-quality engineering research. Research did not actually begin until 1934 with the study textiles, ceramics, and helicopter engineering. In 1946 the Georgia Tech Research Institute was established as an EES contract organization and received their first major funding from federal agencies. At present, approximately 1,200 employees perform or support more than $100 million in research yearly for more than 200 clients in industry and government.

Southwest Research Institute (SwRI):http://www.swri.edu
Southwest Research Institute (SwRI) is an independent, nonprofit applied research and development organization. Founded in 1947 by an oilman-rancher-philanthropist, SwRI was established on donated ranch-land west of San Antonio, Texas. Slick challenged a group of pioneer scientists and engineers from around the nation to move to the new center to seek revolutionary advancements in many areas by developing and applying technology. Presently, the staff of 2,800 specializes in the creation and transfer of technology in engineering and the physical sciences. The Institute occupies 1,200 acres and provides nearly two million square feet of laboratories, test facilities, workshops, and offices. The staff performed more than $350 million in contract research in 2003.

SRI International (Formerly the Stanford Research Institute):http://www.sri.com
The Stanford Research institute is an independent, nonprofit research institute conducting contract research and development for government agencies, commercial businesses, foundations, and other organizations. SRI International was founded as Stanford Research Institute in 1946 by a group of West Coast industrialists in conjunction with Stanford University. SRI formally separated from the University in 1970 and changed their name to SRI International in 1977. As an independent institute, SRI International no longer compares directly with ASL; however, it is important to note that its origins were very similar to that of ASL and Dr. Yogi Gupta worked for SRI for 7 years prior to coming to WSU.

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9. How is ASL different from a Department of Energy (DOE) National Laboratory?

The DOE Office of Science and Defense Programs are the stewards of 10 national laboratories that support its energy, defense, and environmental missions. The national laboratory system, created over a half-century ago, represents the most comprehensive research system of its kind in the world. These laboratories perform R&D activities that are not well suited to university or private-sector research facilities because of their scope, infrastructure needs, or multidisciplinary nature. These laboratories, with annual budgets ranging between $400 million and over $2 billion, carry out research activities to serve the national needs.

A high level of collaboration among all of the national laboratories in the use of world-class scientific equipment and supercomputers, facilities, and multidisciplinary teams of scientists increases their collective contribution to the DOE and the Nation, making the laboratory system more valuable as a whole than as the sum of its parts. As such, the facilities and capabilities in the national laboratories are linked directly to national priorities in energy, defense, and the environment.

The Institute for Shock Physics has strong partnerships with the Defense Program Laboratories (Sandia, Livermore, Los Alamos) and also conducts research that is closely linked to national security needs. Consequently, ASL will benefit from this relationship; in addition, ASL will have the flexibility to pursue contract work for the commercial and private sector, as well as provide facilities and services for local and regional companies.

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10. Why is ASL in need of an endowment?

Although grants and contracts will be the major funding source for ASL activities, independent permanent funding is necessary to go beyond the contract-to-contract existence. This permanent funding is essential for the long-term viability of ASL. The recruitment and retention of entrepreneurial, scientific leaders requires the availability of permanent funding. ASL will seek donated funds to establish a sizeable ($15 million) endowment. Annually, 4% of the endowment investments will be expended to support these positions. Permanent funding is also required because personnel supported by an outside contract must devote all their efforts to the contract itself. Other activities, such as seeking additional and new contracts outside of the funded project, are not allowed. Thus, permanent independent funding will assure sustainability of senior leadership and the research organization itself.

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11. What kind of people will be hired with the endowment funding?

A contract research organization requires unique leadership, and the endowment funding will be used to recruit and retain scientific leadership for ASL. Entrepreneurial scientists, who have a strong record of program development, research accomplishments, and management, are the ideal candidates for ASL. These scientists will develop new research programs that increase external support from federal, state, and private organizations; recruit, supervise and guide the work of scientific staff members to ensure high-quality research; and develop partnerships with business and academic organizations in Spokane.

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12. How many people will ASL hire with endowment funding?

A $15 million endowment will allow ASL to hire six people. Three of the positions will be funded directly from the return on the endowment investments. Three additional positions will be provided through a WSU match. For every $3 million donated to the endowment, the University will provide a research faculty position.

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13. What is the fundraising timeline for the ASL endowment?

Because ASL has start-up funds in the form of federal grants, the initial investment must be made within the established performance period of the grants. As a result, the fundraising timeline is aggressive. The goal is to raise $15 million in three years.

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14. How much do you expect to bring in annually in contracts to ASL?

The initial measure of success for ASL will be the receipt of sizeable competitive contract awards from federal agencies that address strategic long-range needs. After three years of incubation, ASL should expect annual awards of $3-5 million per year and more than twice that after ten years.

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15. How will ASL interact with other academic institutions in Spokane?

ASL is a self-sustaining entity within WSU’s Institute for Shock Physics and will encourage the research participation of faculty and students from other academic institutions in Spokane. For example, faculty from local universities may earn summer salary by taking part in contract-funded research. Graduate students will have the opportunity to conduct their research at ASL. Undergraduate students may apply for paid, part-time research positions and summer internships. ASL facilities may be used to provide services to research efforts at other institutions, such as materials characterization and/or computer simulation.

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16. Who will own the intellectual property created by ASL?

The University's patent and copyright policies are intended to encourage a healthy atmosphere conducive to research and development through a system of rewards and incentives for the creation of intellectual property, while at the same time giving proper consideration to the responsibilities that the school has as a public land-grant university. Intellectual property agreements are generally established at the time a research contract is negotiated.

WSU's intellectual property policies aim to promote the progress of science and technology, to assure that discoveries and inventions are used to benefit the public, and to provide appropriate royalty revenues to the University and the inventor(s). The University normally retains patent rights from sponsored research, and any invention or patentable idea conceived or reduced to practice in the course of that research belongs to the University. The University typically grants an option for an exclusive or non-exclusive license to resulting intellectual property.

University rights to intellectual property and the rights of sponsors to license intellectual property are firmly established in the Bayh-Dole Act of 1984 and the guidelines for federal grants.

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17. What mechanisms are there for licensing that property to allow for spin offs of new private industries from the research?

The Washington State University Research Foundation (WSURF) licenses technologies to the private sector through licensing agreements. WSURF negotiates license fees, royalties, and the terms and conditions on a case-by-case basis. The determination of license fees and royalties are affected by several factors, including the scope of the rights granted, the size of the potential market, and the time and financial investment required by the licensee to bring a product to market. Further information about licensing may be found on the WSURF home page:http://wsurf5.respark.wsu.edu/.

In areas where the invention has been developed through research sponsored by a grant or contract with the federal government (or its agencies), it must be reported to the agency and the agency joins the University to determine distribution of the rights in the invention, to determine if patent prosecution should be sought, and how the patent should be administered or disposed of in the public interest.

In areas where private industry or foundations have sponsored research, licensing of patents or other intellectual property shall be negotiated between the sponsor and the University, or its agent where appropriate. The University will strive to protect the financial interests of all and ensure that the University retains the traditions of self-governance and academic freedom.

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18. Will ASL earn revenues from licensing intellectual property?

ASL will be eligible to earn monetary proceeds from commercialization of University-owned inventions. The Washington State University Research Foundation (WSURF) will collect and distribute royalties, fees, equity interests, or dividends in accordance with procedures established by the University. The revenue earned may be used to support ASL operations and facilities.

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19. Will ASL have a business manager and what will that person do?

Contract research organizations that are affiliated with universities are often referred to as “buffer organizations,” as they operate in a manner that is between the traditional university structure and an independent, non-profit organization. As a result, ASL will have a Business Manager who can understand and capitalize on the benefits of being part of a university, help operate ASL using an efficient business model, and develop partnerships with the private sector. This Business Manager will hold a leadership/advisory position within ASL and will be supported by the ASL endowment.

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20. Will ASL have the capacity to spin off a “second ASL (ASL2)” which would function as an independent company?

As it has happened in the past with other prominent contract research organizations (SRI International separated from Stanford University in 1970), it would be possible for ASL to initiate and successfully launch a new organization to function as a private company, such as “ASL2”. Such an initiative would be possible after ASL is firmly established as a successful, self-sustaining research organization. Normally, WSURF will act as the agent on behalf of the University in such transactions, since WSU itself cannot take an equity or management position in the new spin-off company.

“ASL2” might gain greater freedom to enter into contracts at Cost Plus Fixed Fee for Services, to perform proprietary research for federal defense agencies, and to employ staff more flexibly. Since the associated overhead costs for “ASL2” will be significantly higher than WSU overhead charges, other University-based contract research laboratories will become major competitors for federal contracts. The launching of “ASL2” will be a business decision.

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21. Why should I donate to ASL?

The establishment of ASL offers many benefits to society and the community including, but not limited to:

ASL also offers benefits to Washington State University including, but not limited to:

Whether your interests are in the Spokane community, in engendering economic development, in encouraging the growth of intellectual capital and scientific exploration, or in supporting WSU as an institution, there are strong reasons for you to give to the ASL Endowment. Your contribution will help launch and sustain an exciting era for Spokane and Washington State University.

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22. How can I structure my gift? Can you accept appreciated stock?

Each gift will be unique and we will work with you to structure your gift in a way that is most advantageous to you and meets with your desires as a donor. ASL has the resources of the WSU Foundation at its disposal to help make your gift work for you. You can structure your gift to be paid in a one-lump–sum-payment or in payments made over 3-5 years with pledge reminders being sent to you on a schedule of your choosing. We are also able to accept and process gifts of appreciated stock.

Additionally donors will be recognized and acknowledged fully by WSU for their gifts.

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Applied Sciences Lab, PO Box 1495, Washington State University, Spokane, WA 99210-1495 (509) 358-7700