OCAST '07 return on investment is 27 to 1

The state's technology-based economic development agency backed its $40 million budget request for fiscal 2009 Tuesday with a jaw-dropping return-on-investment report.

The Oklahoma Center for the Advancement of Science and Technology reported that the 15.3 million tax dollars appropriated to the agency for fiscal 2007 returned a whopping $414 million, or $27.02 for every $1 invested.

Over the 20-year history of the agency, OCAST reported that it has returned $2.63 billion to Oklahoma from the $151.8 million invested in it by taxpayers. That's a cumulative return on investment of $17.36 for every $1 appropriated to the agency.

The returns are based on federal grants and private investment in Oklahoma research and technology-based companies spun out of state universities and foundations.

"We feel very good about the results," said Michael Carolina, OCAST executive director.

The numbers are so glowing that it causes some to doubt their accuracy, but "everything we've done is verified," Carolina said.

In fact, the agency had its tracking method assessed by the Stanford Research Institute, which found it to be sound, he said.

"In fact, they say we've been conservative in capturing our results," Carolina said.

The agency's best return on investment is reported by the Oklahoma Manufacturing Alliance, the affiliated nonprofit entity that serves the state's small manufacturers. The alliance has brought $1 billion to Oklahoma through the $11.4 million invested through it.

The alliance numbers are based on projections by clients regarding state and capital investments. For the year, the alliance reported that the $1.8 million it was budgeted returned $278.7 million.

Other areas in which OCAST awards returned big investments over the years:

Oklahoma Health Research, cumulative returns of $244.3 from investment of $51.69 million.

Oklahoma Applied Research Support: $927.6 million returned from investment of $61.15 million.

Small Business Research Assistance: $168.4 million returned on $3.3 million invested.

Technology Commercialization Center: $120.5 million returned on $15.39 million invested.

Technology Business Finance: $169.35 million returned on $5.8 million invested.

Inventors Assistance Service: $900,000 returned from $1.35 million invested.

Much of the OCAST award dollars flow through i2E, the affiliated not-for-profit corporation that manages the Oklahoma Technology Commercialization Center on a contract with OCAST.

Greg Main, i2E chief executive officer, said he had confidence in the numbers reported and the way they were obtained.

"The Stanford Research Institute said this is as good a system for measuring results that exists," Main said. "Now, is it perfect? No. But I think there is clear evidence that we are getting a pretty good bang for the buck."

As for the $40 million budget request that OCAST has made for its 2009 budget - a 78 percent increase over the $22.4 million awarded by the state Legislature in 2008 - Carolina expressed some reserved optimism.

"Of course, we are always cognizant of the state's overall budget picture, but we would be remiss if we did not advance our board-approved request for $40 million," Carolina said. "That is the amount we believe would position Oklahoma in the best place to continue our march to a technology-based economy.

"I think people see the value of OCAST," he said.