The Maryland Technology Development Corporation (TEDCO) was created by the Maryland General Assembly in 1998 to “(1) Assist in transferring to the private sector and commercializing the results and products of scientific research and development conducted by colleges and universities; (2) Assist in the commercialization of technology developed in the private sector; and (3) foster the commercialization of research and development…to create and sustain businesses throughout all regions of the State” and “to promote entrepreneurship and the creation of jobs in technology-related industry by establishing and operating effective incubators throughout the State that provide adequate physical space designed, and programs intended, to increase or accelerate business success in the field of technology.”

In FY2000 the initial TEDCO Board of Directors was appointed, received a seed grant of $642,000 from the Maryland Department of Business and Economic Development, and hired as its first employee, an Executive Director, to build the organization. Operational activities began in FY2001; at the beginning of FY2006 the organization has 14 technically trained professionals, and overall responsibility for state programmatic and capital budgets and federal funds exceeding $10 million.

TEDCO has developed nationally recognized programs that facilitate the technology development, transfer, and commercialization process. Among its singular accomplishments are the development of linkages with the numerous federal research facilities in Maryland; the attraction of over $8 million in federal grants from 13 different federal agencies such as the National Science Foundation, NASA, Economic Development Administration, the U.S. Navy, the U.S. Army and the Small Business Administration; and the creation of innovative seed funding programs to fill gaps in the technology transfer process. TEDCO has focused attention on the information technology needs of under-served regions of the State; and developed the State’s first comprehensive business incubation program.

In FY2005 TEDCO was awarded federal funding for 8 grants totaling over $3.5 million directly through TEDCO, and with accountability for another $2.7 million. TEDCO’s success in acquiring federal funds for programs in Maryland was documented in the FY2004-FY2006 Annual Report of the Governor’s Grants Office, which ranked TEDCO first among all State agencies in the percentage increase in number of grant program (an 800% increase from FY2004 to FY2005), second in the percentage increase in grant dollars (100%), and among the top ten State agencies in the total increase in number of grant programs and federal grant dollars.

The following projects illustrate the use of these federal funds:

• The Aberdeen Technology Transfer Initiative is a $965,000 program, designed to support small business development in collaboration with Aberdeen Proving Ground (APG). Funded by the Maryland Congressional delegation, and in cooperation with APG’s Business Development Office, by the summer of 2005, 12 companies had received $50,000 seed grants to develop technologies of importance to the U.S. Army. In light of the enormous response to this program, and the increased importance of APG as a technology generator, TEDCO and its local partners have sought additional federal funding.
  
• The Rural Business Incubation Initiative (RBI), a $495,000 Congressional program funded through the U.S. Small Business Administration, is intended to support incubation stage companies in rural southern Maryland and the Eastern Shore. TEDCO is collaborating with the College of Southern Maryland’s (CSM) Corporate and Community Training Institute and the University of Maryland Eastern Shore’s (UMES) Rural Development Center. Twenty-four companies received assistance in the first nine months of the program.

TEDCO’s Incubator Development Fund continues to stimulate successful new facilities. In FY2005 three new facilities opened: the Silver Spring Innovation Center, the Prince George’s County Technology Assistance Center, and the Frederick Innovation Technology Center, with a total square footage of 45,000. In addition, a new facility – the proposed 26,000 sq. ft. Rockville Innovation Technology Center – received a $1,000,000 commitment from TEDCO’s Board of Directors.

Since August 2000, TEDCO has organized 30 technology showcases linking entrepreneurs, investors and researchers with the resources of federal research facilities in the State. In July, 2005, over 350 individuals attended a showcase on Biomedical Technologies in collaboration with the U.S. Army Medical Research and Materiel Command at Fort Detrick.

At the request of the Governor’s Office of Homeland Security, and with federal funding through the Maryland Emergency Management Agency (MEMA), TEDCO will serve as the managing agent of the newly created All Hazards Consortium, assisting the Board of Directors, providing a web presence, promoting the All Hazards Forum, and meeting with vendors of interest to the State.

The All Hazards Consortium will serve as an educational forum and clearinghouse for State and local government officials, educational institutions, businesses and first responders to share information, ideas, strategies, and planning concepts in the field of homeland security and other hazards. This activity stems from the very successful All Hazards Forums held in December 2004 and October 2005, and scheduled for December 5-7, 2006 at the Baltimore Convention Center.

In July 2004 and again in July 2005, Entrepreneur Magazine ranked TEDCO #1 nationally for the largest number of investments in start-up/seed or early stage companies for the second consecutive year. The results of TEDCO’s seed stage funding strategy are substantial: the 39 MTTF companies that have finished their funded projects, with a total TEDCO investment of $2,188,544, have collectively raised $60,700,000 in downstream funding from a mixture of venture and angel investors, government Small Business Innovation Research (SBIR) and Advanced Technology Program (ATP) research grants, private placements, and product sales, a 27:1 leverage of the State’s investments.