Background: The Legislature created the Washington Technology Center (WTC) in 1983 and the Spokane Intercollegiate Research and Technology Institute (SIRTI) in 1998. They both have a mission to perform and commercialize research and to strengthen university-industry relationships through the conduct of research that is primarily of interest to Washington-based companies or state economic development programs. WTC's focus is state-wide while SIRTI's is on Eastern Washington.

WTC operates a Small Business Innovation Research (SBIR) Assistance Program and SIRTI has taken part in the program by assisting small businesses in applying for federal SBIR grants. WTC has a statutory obligation to operate the Investing in Innovation Grants Program, but funding has never been appropriated for its operation.

Summary of Bill: Innovate Washington is created as the successor agency to WTC and SIRTI. It is to:

provide and facilitate research supportive of state industries;
provide mechanisms for collaboration between technology-based industries and higher education institutions;
help businesses develop and integrate technology into new products and help businesses compete;
offer technology transfer and commercialization training opportunities; and
administer the Technology and Innovation Grant and Loan Program.

Innovate Washington is to develop a five-year business plan to be updated every even-numbered year. The first plan is due by December 1, 2012, and must include a plan for operating additional facilities at Washington State University (WSU) Vancouver, WSU Tri-Cities, and Western Washington University. The plan must also include methods of working with community and technical colleges, including Centers of Excellence, and methods to ensure access to Innovate Washington's services by clients of Impact Washington.

A 15-member board of directors is to govern Innovate Washington. The board is to report to the Governor and the Legislature every odd-numbered year on customer satisfaction and a variety of outcome measures. The board is authorized to:

employ staff and engage technical experts;
create advisory committees;
enter into agreements with other entities to carry out any of its programs;
solicit funds from a variety of sources;
establish affiliated organizations, special funds and controls as it sees fit; and
delegate any of its powers and duties if consistent with the purposes of the act.

Innovate Washington is to operate a small business innovation assistance program to help in the procurement of awards from federal small business research programs. The Investing in Innovation Grants Program is changed to the Investing in Innovation Program. The program will be operated by Innovate Washington and may make both loans and grants using funds raised by the board of directors. Proprietary information of those applying or receiving funding through the Investing in Innovation Program is not subject to public disclosure. The Investing in Innovation Account is established in the custody of the State Treasurer.

Centers of Excellence are to act as brokers of assistance available for firms in targeted industries and work with Innovate Washington to develop methods to identify businesses within a targeted industry that could benefit from the services of Innovate Washington.