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Rapid Application of New Technologies

multi-faceted having many aspects; versatile

ANNUAL REPORT 2011


SCRA is a non-stock, tax-exempt applied research corporation with headquarters in South Carolina. SCRA was started by the SC Legislature under a public charter to help develop technology-based industries in the state. SCRA was formed in 1983 with a founding grant of $500,000 and 1,400 undeveloped acres, and has been self-sufficient for funding since that time. Revenues are generated primarily through competitively won applied research contracts awarded by the federal government and about 200 corporations. SCRA has three key missions which define our divisions. SCRA Technology Ventures helps early-stage technology companies grow their businesses and commercialize their products. SCRA Applied R&D creates and leads teams from many industries, organizations and disciplines to develop and apply technology solutions to complex challenges. SCRA R&D Facilities builds and manages state-of-the-art laboratories, advanced manufacturing facilities and secure spaces for sensitive work. These facilities are critical infrastructure for the Knowledge Economy, where innovators develop and commercialize new technologies.


SCRA rapidly applies new technologies by growing knowledge-based businesses, leading research collaborations and building and managing facilities where innovations are commercialized.


Technology Ventures

Applied R&D

167,000,000

1,500,000,000

41,100,000

Dollars in follow-on capital secured by SC Launch Portfolio Companies

Dollars in applied R&D contract value for federal and corporate clients

Dollars invested by SCRA in applied research facilities

64,000 Average salary (in dollars) of the jobs created

700,000,000

357

Dollars in munitions technology development managed by SCRA on behalf of the Department of Defense

Contributors to the Industry Partnership Investment Fund

14,700,000

184 Entities have received funding

155 Entities currently receiving support services

51 Entities receiving portfolio investments

48 Innovation prizes awarded to inventors

36 SBIR/STTR matching grants awarded

33 Demonstration projects funded and executed

3 International Economic Development awards won by SC Launch

1 National Non-Profit of the Year Award from American Business Awards

Dollars in annual energy savings through SCRA-led reduction of defects during solidification of cast metal parts

100 National and international high-ROI applied research programs

200

R&D Facilities 1,054,400 Square feet of business, laboratory and manufacturing space within SCRA research parks and facilities

58,000 Square feet of open space with large shipping bays in the SCRA USC Innovation Center to support hightech manufacturing operations

28,400 Square feet of flexible-use laboratory and office space fullyequipped for biopharma, biomed and biotech research

11

Corporate clients and partners, ranging from Fortune 500 clients like Boeing, BMW, Honeywell and GE to small and emerging companies

Wet labs act as stepping stones from research university labs to the commercial marketplace

30

4

Federal clients and partners, such as the Departments of Defense, Energy, Justice and Health & Human Services

Innovation Centers to commercialize research discoveries

28

Eagle Award won by the SCRA MUSC Innovation Center in Charleston for Excellence in Construction from the Associated Builders and Contractors of the Carolinas

Years of experience building multiorganizational teams and delivering innovative technologies

1 SCRA-led multi-site clinical trial discovered that anti-microbial copper surfaces reduced bacteria by 97 percent and hospital-acquired infections by 41 percent

1

1 LEED Certified Gold Rating for the Duke Energy Innovation Center from the US Green Building Council


multi-faceted having many aspects; versatile SCRA is one company with multiple missions:  Helping innovative companies grow, develop new technologies and create jobs  Developing and implementing high-ROI technology solutions  Building and managing business, manufacturing, laboratory and research facilities

Because of our domain expertise, process competency and business flexibility we are able to source and provide custom, packaged solution sets to our clients. SCRA’s network of emerging companies with ground breaking intellectual property can deliver innovative technologies while satisfying government clients’ requirements to source and utilize small businesses. SCRA helps commercialize intellectual property and technologies developed by small and early-stage companies by connecting them to new clients, markets and financing.

SCRA employs an open business model to engage the best possible technology providers in cases involving rapidly-changing or urgent requirements, so that the client gets the best solutions versus the static solutions most individual technology companies offer. SCRA builds effective teams from our network of partners when client technology solutions are

Bill Mahoney, Chief Executive Officer

best answered by a collaboration between various companies and industries. We marshal the efforts of team members to develop technologies that achieve client objectives. SCRA builds and manages stateof-the-art research facilities when the solution to a client’s challenges requires housing and equipping researchers.

SCRA finds and grows the companies,

leads the teams and equips the innovators that create leading edge, proven technology solutions.


FINANCIAL PERFORMANCE Fiscal year (FY) 2011 was another year of growth for SCRA. Operating revenues of $195.2 million represent a 14 percent increase over 2010 while total backlog remained steady at $403.5 million. SCRA assets have seen a fiveyear average annual growth rate of 21 percent, and net assets have increased 16 percent over the same five-year period, matching increases in working capital to adequately position the company for future expansion in new and existing markets. Julia Martin, Chief Financial Officer

SCRA’s Applied R&D business remains strong despite a general slowdown of new awards in the federal marketplace. Multi-year contracts under SCRA management had a combined value of approximately $1.5 billion at the end of FY 2011. Throughout the fiscal year, SCRA won three major re-competed contracts and was awarded funding for programs to support alternative energy initiatives in

INCREASING REVENUES SCRA has achieved a 179 percent increase in revenues since 2005 by capturing repeat business, diversifying our services and crossmarketing our capabilities.

2005 $70M

2006 $88.5M

2007 $94.2M

2008 $110M

2009 $111M

2010 2011 $171M $195.2M


sustained growth trend a general tendency toward growth and expansion whose continuation and increase is maintained over a long period of time

Total Revenue

Net Revenue

Net Assets

Total Assets

Funded Backlog

Contract Backlog

$195.2M

$1.3M

$41.8M

$128.9M

$169.4M

$403.5M

South Carolina. At the end of the fiscal year, SCRA’s funded backlog was just under $170 million. SCRA’s continued commitment to and support of research infrastructure in South Carolina is evidenced by the completion of its third Innovation Center. The Duke Energy Innovation Center in Anderson, SC opened its doors in March 2011 to support advanced materials research and offer secure laboratory space. SCRA has invested over $17

million in research infrastructure since 2009. These investments are beginning to reap benefits for SCRA and knowledge-based companies in the state. In 2011, the wet laboratory space in our Charleston Innovation Center reached capacity. Our further investment in knowledge-based entrepreneurial support to foster job creation and technology development through the SC Launch program has assisted over 250 entities in

starting or locating to the state since 2006. The program has been a catalyst for participating companies to attract more than $167 million in private capital. SCRA’s financial strength, proven track record of delivering results for clients and partners, consistent history of clean financial and compliance audits and culture of excellence forms a combination of characteristics which positions us for continued achievements and future growth.

SCRA’s impressive revenue and backlog trends are a testament to the value we deliver and an

indicator of continuing growth for the company.


KNOWLEDGE ECONOMY INVESTMENTS Since 2006, SCRA has invested more than $59 million to support the growth and commercialization of technology companies. This includes $12 million of SCRA’s retained earnings that were used to establish its SC Launch economic development program, $17 million of balance sheet assets which were used to design and build three Innovation Centers for research and commercialization and an annual fund of $6 million in tax-incented private donations each year. SC Launch provided commercialization support to Spectra Analysis, an early-stage company that won the prestigious R&D 100 Award for a device that quickly and efficiently identifies the chemical compounds in mixtures. SC Launch support helped KIYATEC obtain wet lab space and hire a cell culture scientist. KIYATEC’s innovative 3D cell culture hardware yields more complete and relevant information than traditional 2D methods.

SCRA’s support of early-stage technology companies goes beyond financial investments. SCRA portfolio managers are a seasoned commercialization forum that guides new companies as they develop and execute business plans. Companies must pass a rigorous qualification process to receive SC Launch funding. This helps them focus their business models and positions them to seek more substantial funding. SCRA-supported companies have been able to secure over $167 million in follow-on funding from large-scale investors. This is an indication that SCRA picks winning companies and gives those companies credibility with private investors.


investment the expenditure of time, money or other resources in order to create wealth in the future

patent search and application

intellectual property protection

licensing

seed funds for product roll‐out

molding/tooling

biomedical testing

FDA packaging design

engineering drawings

legal work related to VC funding

business plan development

market research

accounting services

product development and customization

trade show attendance, equipment, travel and lodging

leasing of laboratory facilities

prototypes

relocation costs

pre‐production testing

materials studies

scale-up of manufacturing processes

SCRA Technology Ventures investments help companies grow and succeed by providing a wide-range of commercialization services, such as: 

business and risk reduction expertise

access to a Resource Network of seasoned business professionals providing services such as banking, accounting, legal counsel, advertising and marketing

  

entrepreneurial training purchase of equipment and supplies

The SC Launch program awards matching funds to companies that have been granted Federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) Phase I awards. Qualified companies may gain access to ready markets through national and international-level programs led by SCRA’s Applied R&D division. Forbes recognized SC Launch for excellence in effective economic development. The program has helped form or land 250 knowledge-based companies and over 1,000 new technology jobs with average annual salaries of $64,000.

Based on a review of the SC Launch program, SCRA was named

Nonprofit Organization of the Year by the 2011 American Business Awards for leading entrepreneurial economic development.


VENTURE CAPITAL

SCRA Technology Ventures provides capital to companies that have not yet been able to secure funding from industrial-grade capital providers. During this early stage in company growth, assistance is often required to continue the transition of intellectual property to market-ready technologies.

MIT RCF is revolutionizing the use of reclaimed carbon fiber materials. Carbon fibers reclaimed from F-18 stabilators were utilized in the 3-DEP™ process to create material that was molded into wheelhouse support parts for the Chevrolet Corvette.

As SCRA-supported companies succeed and grow, they graduate from the program and pay back this investment. The returns are fed back into the program to support new companies. This system of venture capital investments has played a role in SCRA’s $13.7 billion cumulative economic output in South Carolina since the company’s inception in 1983. This outcome was revealed using a Massachusetts Institute of Technology REMI Model in a recent University of South Carolina Moore School Study. Innovative technology companies supported by SCRA include: Terressentia - creator of a patented, award-winning manufacturing technology that quickly refines high quality distilled spirits. This revolutionary process uses energy-driven oxidation and filtration to


venture capital invested in high-potential startup companies in the interest of generating a return; associated with job creation, a measure of innovation within an economic sector or geography

acceleration fermentation and filtering to produce a chemically clean product. The SC Launch investment helped expand sales and marketing efforts.

carbon products. Until now carbon has not been recyclable. It is detrimental to the environment if placed in landfills because it does not break down naturally.

Hoowaki - maker of tooling used to manufacture metal, ceramic or polymer products with micronsized surface features that improve performance, including improvements in heat transfer, fluid drag, friction and surface tension. SCRA’s SC Launch program supported Hoowaki in obtaining a patent, scaling-up their current product and initiating R&D for future products.

CreatiVasc - maker of a medical device that redirects blood as needed for dialysis, eliminating dangerous, costly complications.

MIT RCF - developers of a novel approach for recycling carbonbased parts. MIT RCF’s reclamation technology solves a critical problem for industries that use

Ion Surgical - producer of a surgical device that enables minimally invasive treatment of arthroscopic rotator cuff injuries. KIYATEC - inventor and producer of innovative 3D cell culture hardware which yields more complete and relevant information than traditional 2D methods. SC Launch helped KIYATEC transition university research into commercial products.

Vitasol - makers of a patented IV fluid for the treatment of blood and/or fluid loss that is effective at one tenth of the dose of standard IV fluids. This entirely new product for treating shock victims will be applied on the battlefield and in hospitals. Zipit - developer of wireless devices and infrastructure software. Zipit recently launched the Zipit® Enterprise Critical Messaging Solution™ through an exclusive partnership with Verizon Wireless. Using the Verizon 3G network, this two-way paging system delivers a comprehensive solution to industries relying on critical communications.

Acquiring follow-on funding is a key measure of success for SCRA-supported start-up companies. To date,

SCRA-supported companies have secured over $167 million in follow-on funding from private investors.


LANDING PARTY SUPPORT

Lab21’s decision to locate its US headquarters in South Carolina will further biomedical innovation and establish new employment opportunities in the state. Trulite is a successful example of high technology recruitment in South Carolina. Its presence advances the state’s leadership role in both the alternative energy and automotive industries. BoroScience is a chemical company that uses boron to form molecular structures. The company’s products have a wide range of applications, including sensors, electrochemical super capacitors, solid material for hydrogen generation and protective coatings.

In support of our economic development mission, SCRA offers assistance, support and networking opportunities to technology companies wishing to relocate to South Carolina. SCRA supports companies that complement and advance the state’s entrepreneurial environment and create high paying, knowledgebased jobs. Lab21 is a personalized medicine diagnostic specialist that delivers a rapidly growing portfolio of molecular and viral diagnostics, plus pharmacogenetic and patient profiling tests. This unique combination adds value to early stage drug development, clinical trials and regulatory processes in the pharmaceutical industry and helps healthcare providers treat and monitor patients. BoroScience International Inc. serves the rapidly expanding hydrogen economy market. The company uses boron, which can form


landing party a company that establishes operations in a new location in order to take advantage of an environment supportive of business goals and revenue growth

complicated molecular structures such as chains, clusters, ring and cage-shaped formations.

commercial applications such as building materials, glass, packaging and paints.

Alexium uses a patented reactive surface technology (RST) to develop products. The platform technology enables surface modification and attachment of nanoparticles or chemicals onto a variety of surfaces or substrates to provide water-proofing, oil-proofing, antimicrobial and nonstick properties, ultraviolet protection and other functions. Alexium produces technical fabric products for the US military and is developing new textiles and other advanced materials for

Proterra is a hybrid bus manufacturer and maker of the most fuel efficient transit bus on the planet. Proterra is the leading innovator of zero emission commercial vehicles and the first company to deliver a full-size transit vehicle that meets California’s Zero Emission Bus Rules. Iverson Genetic Diagnostics advanced genetic testing promotes early disease detection and helps physicians achieve optimal dosing of critical medications. With

Iverson’s genetic testing, a drug’s effectiveness can be predicted before prescription, in comparison to other testing methods that require the patient be on the drug for 7-10 days to determine effectiveness. Spectra Analysis Instruments, Inc. manufactures and markets Molecular Analysis Instrumentation that quickly and efficiently identifies chemical compounds in a variety of mixtures across multiple markets. Spectra’s systems are used in pharmaceutical drug formulations, industrial and medical implant polymer and copolymer analysis and cosmetics.

SCRA has helped 12 knowledge-based companies relocate to South Carolina. These companies strengthen the local economy by

bringing new jobs and retaining and attracting top level talent to the area.


NEW TECHNOLOGY APPLICATION SCRA leads applied research programs. The results are not concept papers, but operational technologies that solve realworld problems. SCRA collaborated with the Copper Development Alliance to conduct a comprehensive, multisite clinical trial of anti-microbial copper surfaces in intensive care hospital rooms. The trials revealed that the use of copper reduced bacteria by 97 percent, resulting in a 58 percent reduction in hospital-acquired infections. The US Army requires rapid ordnance technology development in order to maintain battlefield superiority. SCRA has helped an ordnance industry consortium launch over 100 applied research projects in 21 months.

A key measure of success for our clients is whether technologies are adopted and put into wide-spread use. High transition rates are a hallmark of SCRA-led research programs. For example, SCRA-led maritime research programs have demonstrated 80 percent transition rates as compared to the 30 percent typical of similar programs. As a testament to the value SCRA brings to federally-funded research, the Navy has hired SCRA to help their Small Business Innovative Research (SBIR) program implement best practices to increase the transition rate of SBIR projects to Navy shipbuilding programs. Examples of SCRA’s ability to move technologies from research to operational use include: 

Successful transition of three composites projects to support the Navy’s newest Destroyer program. The Navy estimates cost savings of $3 million per ship.


transition rate the percentage of technologies resulting from research which are adopted by industry and widely applied to solve real-word problems

Modeling and simulation and workflow improvements enable generation and analysis of full-ship models with 25-95 percent fewer man-hours. Shipbuilding technologies that save over $20 million in total “per hull” costs across several US Navy ship platforms. Laser imaging and 3D digital ship design data help determine the quantity and location of submarine attachments, reducing labor by 85 percent and costs by $500,000 per hull. Composites applications that will save over $100 million in acquisition costs on the Navy’s VIRGINIA Class submarine.

Ongoing conversion of more than 300 pieces of material handling equipment at BMW’s Greer, SC manufacturing facility from battery power to fuel cell power. This equipment may be fueled with hydrogen recovered from a nearby landfill. Composite structural armor for the Marines’ expeditionary fighting vehicle troop ramp door, which reduced the cost and cut the weight by 20 percent while maintaining ballistic protection. An auto-tensioning, remote operation device to secure and release cargo on the US Navy’s Landing Craft increased sortie rates, reduced personnel exposure in potential hostile

fire zones, reduced load time by 50-70 percent and release time by 30-40 percent. 

Technology to shorten the time that wounded warriors spend being fitted for and adapting to prosthetic devices. The work is being transitioned to three commercial suppliers of prosthetics.

Battery-electric buses were introduced into Columbia, South Carolina’s public transportation system as a first step toward implementing fuel cell applications throughout the city. SCRA coordinated federal, state and local investments to build a permanent hydrogen fueling station to support these vehicles.

SCRA-led programs have a track record of high transition rates.

Wide-spread industry adoption and application of new technologies means high ROI for our clients.


NON-TRADITIONAL TECHNOLOGY PROVIDERS SCRA provides the best solutions to client challenges, not merely a force-fit of our solution. We do this by engaging dynamic technology development teams from multiple organizations and industries. Alexium incorporates multiple functional treatments into a single coating, for example textile coatings that are antimicrobial, flame-retardant and oil and water shedding. SCRA supported commercialization of SensorTech’s sensors and helped the company qualify as a technology provider on an SCRAled advanced materials program. The sensors have been applied to prosthetics to improve fit and comfort.

SCRA’s network of partners includes non-traditional technology providers, many of which are emerging companies that lack the experience or resources to participate in the federal marketplace without SCRA’s assistance. By helping qualify these small companies to work with federal clients, SCRA helps them gain access to new markets. Our federal clients receive innovations from the best sources available. Many SCRA-supported emerging companies develop technologies relevant to federal clients, such as the Departments of Defense and Homeland Security, including: Teludyne Tech improves the accuracy of existing weapons through elimination of harmonic waves and rapidly dissipating heat.


non-traditional sourcing companies that offer compelling technology solutions, but are not accustomed to working with federal or large corporate clients

Wave Sciences develops advanced forensic restoration, enhancement and analysis on computer, audio, image and video data. PanX Imaging produces highdefinition, wide-field-of-view, ‘as your eye sees it’ digital imaging solutions with security and surveillance applications. Trulite manufactures clean, quiet, lightweight, portable hydrogen fuel cell generators that can provide electric power anywhere. The effectiveness of these portable fuel cell generators and chemical hydride canisters were proven in SCRA-funded, multisite beta trials. These fuel cell generators were tested in gov-

ernment and commercial uses, including emergency response and fuel cell applications. LOGANEnergy Corporation is a clean power solutions company. The US Army Corps of Engineers has contracted LOGANEnergy to deploy 19 fuel cell back-up power systems at 9 different US locations. The units will provide uninterruptable power supplies and will operate when there is a local electrical grid failure. J2 Software Solutions builds data integration systems for homeland security projects. The company also develops public safety software and technology for law enforcement agencies, jails and dispatch centers.

SensorTech makes durable and formable conductive polymer sensors that measure load, tension, pressure or vibration; applications include blast tests for helmets, detection devices and security switches. The sensors are being applied to prosthetics as part of an SCRAled advanced materials program. SCRA coordinated a DARPAfunded effort to develop catalysts that convert JP-8 to propane. This provides intheater fuel for unmanned aerial vehicles to support intelligence, surveillance and reconnaissance requirements in Afghanistan.

SCRA provides commercialization assistance to early-stage technology companies. Federal clients receive breakthrough innovations from these companies while satisfying requirements to engage small businesses.


MULTI-SOURCE RESEARCH and DEVELOPMENT

SCRA-led applied research teams include a metalcasting consortium with over 2,000 industry members, a shipbuilding collaboration that includes the leading 11 shipyards in the US, an ordnance technology team that has over 150 industry members in the fields of warheads, pyrotechnics, fuzes and propellants and a composites research team with over 30 member organizations.

Collaborative applied research is a core competency of SCRA. We build and lead teams that act as virtual enterprises - temporary networks of institutions, businesses or individuals working together to develop technology solutions. SCRA helps team members function as one organization, blending their knowledge and capabilities, with client goals guiding technology development. SCRA has extensive experience helping teams reach consensus, set priorities and develop technology investment roadmaps of varying scale and complexity. Technology developers from various organizations, industries and disciplines are assembled to conduct research and develop solutions. Many SCRA-led programs employ a bid process to promote open competition in choosing solutions providers. SCRA’s fast and efficient contracting, coupled with our network of research partners, translates to rapid formation of capable research


continuous competition solutions to complex, multi-faceted challenges are sought from various organizations over time as opposed to one set source

teams. SCRA builds effective teams, eliminates barriers to collaboration, resolves IP ownership issues, assures adherence to federal regulations and has an excellent audit record. SCRA has access to a diverse group of technology suppliers through our early-stage technology company assistance program. SCRA matches partner capabilities to client needs and recognizes opportunities for technologies in one industry to be implemented in another. Examples include x-ray applications for shipbuilding and nanotechnology sensors for prosthetics. In addition to our network of research partners, our in-house

systems engineering experts have been instrumental in building DoD eCommerce solutions, developing interagency command centers and providing multi-jurisdictional information sharing systems.

A metalcasting industry team has developed advanced copper motor rotors that are 5-10 percent lighter, 3-7 percent smaller, 14 percent more energy efficient and last twice as long as traditional aluminum-based rotors.

SCRA assembles teams from industry, government and academia to address critical technology needs.

An SCRA-led research team developed new manufacturing techniques for tank track inserts that deliver a high quality product that lasts 500 percent longer with only four weeks leadtime.

An SCRA-led composites consortium has applied large composite structures for Zumwalt Class Destroyers to reduce acquisition and life-cycle costs. The team has realized per ship cost savings exceeding $3 million to date. Total cost avoidance will exceed $9 million.

SCRA leads an international team of over 30 corporate leaders in aerospace, automotive, electronics and other industries developing product data standards used in the manufacture of hundreds of thousands of products worldwide.

SCRA uses open competition to engage top researchers, bundle capabilities from various providers and deliver best fit - versus force fit - solutions.


WIDE-SPREAD TECHNOLOGY USE

SCRA systems engineers have developed, tested, delivered and analyzed information-sharing systems that enable multiple agencies to collaborate on security. A mobile autonomous welding robot developed under an SCRA-led shipbuilding research program allows for remote operation across a wide range of weld types in a number of different welding environments.

A key measure of success for many SCRA clients is the speed at which technology breakthroughs can be put into production. This is especially critical for defense-related innovations. SCRA has a strong track record of efficiently engaging federal funding to conduct applied research and deliver rapid technology deployment. The speed at which innovations are developed and implemented within the Ordnance program is the client’s primary success metric. SCRA helped put $289 million under contract across 100 projects within 21 months. The Ordnance Consortium enabled the Army to develop, test and field GPS-guided mortar cartridges to US soldiers in Afghanistan within a year of the technology down-select decision. SCRA developed, tested and delivered components of a Geospatial Information System for Canadian boundary waters in the Great Lakes. The system was installed at a border patrol facility near Detroit.


speed to market the time that it takes to commercialize a new technology and get it into widespread use

SCRA developed informationsharing software that allows multiple agencies to collaborate on security issues. The system is in use at the Puget Sound Interagency Operations Center (IOC) and Canada-Pacific region. SCRA participated in demonstrations and supported the deployment to seven more Interagency Operations Centers. Time and cost savings can be realized by locating and using existing tooling to produce DoD parts. An SCRA-led project has directed 5,600 purchases valued at over $80 million, matched to existing casting tooling to 92 companies. Estimates indicate over $2 million in savings on confirmed awards. The average production time re-

duction is 12 weeks and the average cost reduction is 12 percent. New welding procedures improve the corrosion performance of welds in cast stainless steels by 80 percent, reducing failures in deployed weapons systems. An automated inspection tool for fiber optic cable installation reduces rework, removes human subjectivity and increases process quality by 10 percent. The technology was used to inspect over 1,800 fiber connections during overhaul of the nuclear aircraft carrier USS Theodore Roosevelt. An SCRA-led team conducted tests proving that the quality of final coatings could be maintained without removing pre-

construction primer. As a result, the Navy modified coating procedures to save $7 million per year. A new tandem torch design for steel welding generated a 50 percent reduction in material deformation and a two- to threefold increase in welding speed. A method of constructing large composite structures using pultrusion reduced construction labor by 60-80 percent. Over five years, technologies from SCRA’s Naval shipbuilding research have reduced the cost of US Navy ship construction by more than $285 million - a more than 5-to-1 return on the Navy’s $54 million investment.

Speed is critical in an Army-led technology program designed to maintain US ordnance superiority.

SCRA helped dramatically accelerate the speed from prototype selection to contracted research from 87 days to 30 days.


MANUFACTURING SOLUTIONS SCRA engineers and partners solve problems facing the manufacturing industry - from concept to production to after-market support. Carbon fiber is a widely used, strong, lightweight composite material that has traditionally been impossible to recycle. SCRA is part owner of MIT RCF, a company that has developed a unique solution to carbon recycling. Supply chain disruptions are costly to manufacturers. SCRA leads a team that has developed a method of predicting supply chain risks and preemptively building mitigation plans. SCRA applies composites in the production of products and parts to improve reliability and reduce component weight and cost. An SCRA-led team developed a method for extracting heat faster from solidifying metalcast components that resulted in 50 percent reductions in cycle times.

SCRA designs and manages interoperability along supply chains - not just interactions between systems, but the merger of corporate strategies, capabilities and perspectives. This has the effect of creating virtual businesses comprised of various organizations, disciplines and skill sets working toward a common goal. SCRA creates technologies, integrates them into the manufacturing cycle, analyzes their performance and evaluates their effectiveness. Requirements/Planning SCRA led the development of new software that integrates part and process models with cost models allows designers to see the cost impact of decisions in real time and early in the design process. Product Engineering An SCRA engineering team applies manufacturing improvements that help the Defense Logistics Agency get reliable cast metals parts quickly. One example is radiography that enables real-time three dimensional imaging so that interior part defects can be discovered. Proactive casting changes prevent part failure while in use. Sourcing SCRA leads teams of 230 forgers, 2,100 foundries and 27 leading


manufacturing enterprise the entire manufacturing cycle, from planning to manufacturing to after-market support and ending with recycling of the product

research institutions to deliver improved metal components to the DoD. An SCRA-led team of over 40 composite industry leaders collaborates to improve the performance and durability of US Navy land, air and sea vehicles. Technical Data Packages SCRA leads a consortium of industry leaders, such as Boeing and Lockheed Martin, as well as smaller companies to develop product data standards that are used in manufacturing hundreds of thousands of products. SCRA engineers have helped hundreds of metal component manufacturers incorporate Technical Data Packages into their operations, expanding their capabilities and opening new markets. Manufacturing Engineering SCRA leads a program to evaluate the feasibility and benefits of 3D laser scanning to address Reverse Engineering. The program inte-

grated laser scanning technology into the Anniston Army Depot’s manufacturing process. Materials An SCRA-led team develops applications based on copper’s unique physical properties. Forging-like integrity is now being accomplished in copper alloys by die casting in a semi-solid state. Manufacturing Production The SCRA-led Navy Center of Excellence in Shipbuilding has saved over $20 million in total “per hull” costs across several US Navy platforms. Laser imaging and 3-D digital ship design data helps determine the quantity and location of various submarine attachments, resulting in an estimated 85 percent reduction in labor and up to $500,000 cost savings per hull. Supply Chain Management An SCRA-led team developed automated technical data pack-

age delivery for Raytheon that resulted in $10 million dollars in annual labor savings along with significant cycle time reduction. Inventory Control & After-Market Support SCRA pioneered mobile, cargo container-sized manufacturing units capable of reverse-engineering critical defense parts and producing replacements in-theater. SCRA led the design of EMALL, DoD’s online purchasing site. Hundreds of thousands of orders of supplies have been ordered and delivered to US warfighters worldwide using the system. Decommission & Recycling SCRA is part owner of MIT RCF, developer of a game-changing technology for recycling carbon. Parts containing this lightweight, extremely strong material cannot legally be placed in landfills and until now have not been recyclable.

SCRA’s in-house experts and extensive partner networks

develop and apply solutions for each step of the manufacturing enterprise to increase productivity, performance and profits.


R&D FACILITIES

SCRA’s three new Innovation Centers, along with our research parks system, are a sustaining component of the Knowledge Economy. These world-class office and laboratory spaces accelerate business development and commercialize research discoveries.

Most of SCRA’s Applied R&D operations are headquartered at the SCRA Advanced Research Center, a 20-acre, 3-building campus. The Center is adjacent to the Charleston, SC International Airport and Boeing’s 787 Dreamliner fabrication and assembly facility, and is a short distance from MeadWestvaco’s chemical production plant.

The SCRA MUSC Innovation Center is the newest component of a growing bio-based cluster in Charleston, SC that supports the sophisticated requirements of early-stage to mature bioscience corporations. The 28,400 square foot facility consists of flexible use, multi-tenant laboratory and office space fully-equipped for biopharma, biomed and biotech research and commercialization. The SCRA USC Innovation Center in Columbia, SC was designed and built to support research and advanced, high-tech manufacturing operations with a large economic and low environmental impact. SCRA’s Columbia facility is designed to house high-tech companies emerging from the University of South Carolina and entering commercialization and scale-up manufacturing stages. The facility


commercialization facilities spaces specially designed and built for the introduction of new products or production methods into the market

is situated and designed to stimulate and sustain clean, nextgeneration manufacturing. SCRA, Clemson and Duke Energy collaborated on the building of the Duke Energy Innovation Center. This LEED Certified, Gold Rated ‘green’ facility fully utilizes environmentallyconscious, best-practice design and manufacturing techniques in keeping with its advanced

materials research focus. The Duke Energy Innovation Center houses SCRA’s advanced materials applied research operations and state-of-the-art secure rooms for sensitive work. The three SCRA Innovation Centers were specifically designed to support emerging technology clusters within the state. Commercialization facilities such as these are critical

economic engines for South Carolina - places where new technology industries will grow and be sustained. Both corporate tenants and entrepreneurial startup companies that are rapidly transitioning from basic and applied research to commercialization find tremendous opportunity for their work in the Innovation Centers.

SCRA’s Research Parks and Innovation Centers are critical

infrastructure for the Knowledge Economy, where research becomes solutions and intellectual property becomes useful technologies.


SCRA MUSC INNOVATION CENTER Biotech innovations are commercialized in the SCRA MUSC Innovation Center in Charleston. The facility features 11 advanced wet labs and shared equipment critical to life sciences research.

SCRA’s Innovation Centers were built partly to answer the need for advanced laboratory facilities where university research could be commercialized. A novel technology created at the Medical University of South Carolina offers a safer, more reliable, less expensive and faster method of producing human antibodies. Current methods produce antibodies that are not human products and are therefore not as compatible with patients’ bodies.

The SCRA MUSC Innovation Center is a critical component of the growing bio-based cluster in Charleston, SC. It was designed and built to support the sophisticated requirements of bioscience corporations. The 28,400 square foot facility consists of flexible use, multi-tenant laboratory and office space fully-equipped for biopharma, biomed and biotech research and commercialization. As bioscience companies grow and move from university labs into the market, finding adequate facilities and equipment is a daunting challenge. The SCRA MUSC Innovation Center answers this need by offering shared equipment that an emerging company could not afford acting alone. Amenities include sub-zero freezers, distilled water, washing machines for lab equipment and drying racks for flasks. This equipment has appealed to our tenants and has been vital to their early successes.


bioscience branches of science, such as biology and medicine, that deal with living organisms, life processes and relationships to each other and the environment; life sciences research drives many evolving industries

The SCRA MUSC Innovation Center at Charleston is located at the base of the new Cooper River Bridge along the Meeting Street gateway to Charleston’s historic district, with easy access to the Charleston International Airport.

Its proximity to the Medical University of South Carolina facilitates its mission as a home for start-up companies emerging from university research. Innovations being commercialized at the SCRA

MUSC Innovation Center include novel human antibodies, screening technology for pharmaceuticals and chemicals which identify toxicants and renewable energy technologies.

Researchers commercialize bioscience innovations including the development of fully-human antibodies, pharmaceutical and chemical screening services and microbe-to-fuel conversion technologies in the

SCRA MUSC Innovation Center’s 11 wet labs.


SCRA USC INNOVATION CENTER

Nitek, Inc. is a world leader and pioneer in deep Ultraviolet-LED lamp technology. The company will manufacture deep UV light emitting diodes, UV laser diodes, high-voltage high- power electronics and next generation novel material substrates in the SCRA USC Innovation Center’s industry-quality clean room. Immedion is one the fastest growing date storage and management providers in South Carolina. The company occupies 17,000 square feet within the SCRA USC Innovation Center.

The SCRA USC Innovation Center contains open, configurable space and loading bays designed to accommodate high-tech manufacturing operations. SCRA’s corporate headquarters and Technology Ventures division are located here. The facility in Columbia, SC was designed and built to house hightech companies emerging primarily from research at the University of South Carolina and entering commercialization and scale-up manufacturing stages. The facility is situated and designed to stimulate and sustain clean, next-generation manufacturing. The base building is 66,000 square feet with 58,000 square feet of open space that can be configured to suit tenants’ needs. Amenities include on-site parking, a common break room, state-of-the-art meeting rooms, card-reader access and security monitoring. The facility, with easy access to the Columbia Statehouse, the airport and the University of South Carolina (USC), is ideally located for


advanced manufacturing manufacturing in which innovative technologies are integrated at a high rate in order to remain competitive and add value; entails rapid transfer of science and technology into manufacturing

technology businesses. The building is adjacent to the USC Engineering School and is also within walking distance of Innovista, USC’s designated campus for research and entrepreneurship.

Nitek, Inc. manufactures deep UV light emitting diodes at the SCRA MUSC Innovation Center. These semiconductor light sources emit Ultraviolet radiation which is used for air/water purification, food and medical sterilization and polymer curing.

Nitek, Inc. chose the Innovation Center for access to an industry quality clean room and because of the facility’s close proximity to the USC’s College of Engineering and Computing.

The SCRA USC Innovation Center was designed and built to house advanced manufacturing operations.

Nitek, Inc. produces special-purpose LED’s (light-emitting diodes) in manufacturing ‘clean rooms’ within the facility.


DUKE ENERGY INNOVATION CENTER

SCRA researchers apply composite materials in the manufacturing of prosthetics to increase durability and decrease weight. SCRA also leads efforts to apply advanced, any-shape, any-size sensors that were developed by an SCRAsupported start-up company to enable prosthetic devices to selfadjust for greater comfort. SCRA leads an advanced materials research team that incorporated composite structural armor into the Expeditionary Fighting Vehicle troop ramp door, maintaining the components blast-resistance, reducing the weight by 20 percent and eliminating the costly appliquĂŠ armor system.

An SCRA-led composites research program that develops faster, lighter, more durable parts for land, sea and air-based vehicles is headquartered in the Duke Energy Innovation Center. SCRA collaborated with Duke Energy and Clemson University to build the Center in Anderson, SC. SCRA partnered with Duke Energy and Clemson University to design and build this new Innovation Center to support advanced materials research, an important, rapidly-evolving economic engine for South Carolina. More than 130 members of the Clemson University faculty in a variety of disciplines are involved in advanced materials research and more than 30 area companies produce advanced materials products. The Duke Innovation Center plays an important role in this growing economic sector within the state. Both corporate tenants and entrepreneurial start-up companies that are rapidly transitioning from basic and applied research to commercialization find tremendous opportunity for their work in


advanced materials a class of metals, ceramics, polymers and composites with unique abilities that enhance the performance of components and entire systems by enabling more compact designs, improved efficiency and greater durability

the Innovation Center. Tenants benefit from their close proximity to Clemson’s adjacent, worldclass Advanced Materials Research Laboratory (AMRL) and its facilities, which include stateof-the-art electron microscopy

and a staff skilled in supporting both corporate clients and academic partners. Also nearby is Clemson’s high performance computing center, providing sophisticated modeling applications and ready access to

national research networks. The Duke Energy innovation Center is a ‘green’ facility fully utilizes environmentallyconscious, best practice design and manufacturing techniques.

SCRA-led applied research in advanced materials

improves the performance of diverse systems, such as land, air and sea-going vehicles and improves the comfort and durability of prosthetics.


AWARDS and RECOGNITION

The American Business Awards’ Stevie Awards recognize the achievements of organizations and business people worldwide. Based on a review of the SC Launch program, SCRA received a Stevie Award for National Non-profit of the Year. The Award recognized SCRA’s leadership in collaborative, entrepreneurial economic development. SCRA’s Executive Team is pictured here with the Stevie Award. Pictured from left are: Rick Self, Ambrose Schwallie, Julia Martin, Bill Mahoney, Natalie Corella, John Gregg and Dave McNamara.

Based on a review of the SC Launch program, SCRA was recognized as the National Non-Profit of the Year by the American Business Awards for leadership in collaborative, entrepreneurial economic development. SC Launch has also been recognized for excellence by the Southern Growth Policies Conference and Forbes. SCRA led a multi-site clinical trial that concluded that the use of antimicrobial copper surfaces in intensive care hospital rooms reduced bacteria by 97 percent, resulting in a 58 percent reduction in hospitalacquired infections. These findings were presented at the conference of the Infectious Diseases Society of America in Boston and at the meeting of the World Health Organization in Geneva, Switzerland. SCRA won three Defense Manufacturing Technology (ManTech) Achievement Awards at the 2011 Defense Manufacturing Conference in Anaheim, California for: 

Manufacturing technologies used on the Joint Strike Fighter (JSF) F-35 composite wings and engine components. Results include a


accolade acknowledgement of the production of positive outcomes; praise in recognition of substantive results

50 percent improvement in part production cycle time and cost savings of over $100 million for the life of the JSF program.

SCRA was recognized in the American School & University Architectural Portfolio for Outstanding Design of the Duke Energy Innovation Center.

More durability and comfortable prosthetics and orthotics for our wounded men and women in uniform. Advanced materials make prosthetics 50 percent lighter, more comfortable, longer lasting and 40 percent less expensive.

SCRA was named One of the Best Places to Work and One of the Fastest Growing Companies in South Carolina by the SC Chamber of Commerce.

Development of digital standards to replace radiographic film for inspection and qualification of aerospace castings. The project reduces inspection times, increases affordability and improves accuracy of spare parts development.

SCRA’s Danna Kelley and Dr. Chris Norfolk were recognized by the DoD Joint Defense Manufacturing Technology Panel for leadership and significant contributions to the Manufacturing Technology Program. The SCRA MUSC Innovation Center and Choate Construction received an Eagle Award for Excellence in Construction from the Associated Builders and Contractors of the Carolinas.

SCRA’s multi-agency port protection program received the Przirembel Prize for Outstanding Collaboration. An SCRA-led metalcasting program’s Procurement Solutions Network Project won the Defense Logistics Agency (DLA) Commander’s Choice Award. SCRA’s Robert G. Kiggans has been honored with an International Leadership Award by the American Society of Mechanical Engineers. Mr. Kiggans was recently a finalist in the National Defense Industrial Association’s James Forrestal Industry Leadership Award. The award recognizes outstanding leaders from companies in the defense industrial base.

SCRA has received national and international recognition for diverse outcomes such as advances in defense-related

manufacturing technologies, design and construction of LEED-certified research facilities and quality of life improvements for prosthetics users.


multi-faceted having many aspects; versatile venture investments continuous competition high return on investment forming and leading research teams non-traditional technology sourcing wide-spread technology implementation building and managing research facilities manufacturing enterprise integration technology commercialization landing party support high transition rates

SCRA employs a variety of competencies to deliver value to a diverse client base.


grows the companies, leads the teams and equips the innovators that create technology solutions.


SCRA.ORG 843.760.3342


SCRA Annual Report 2011