Research that Pays Off: The Economic Benefits of Federally Funded R&D!

Catherine T. “Katie” Hunt, Ph.D. Director, Innovation Sourcing & Sustainable Technologies March 2012

Introducing Dow

• A science and technology leader with annual sales of $60 billion.

• Founded in 1897 by Herbert H. Dow in Midland, Michigan.

• Acquired Rohm and Haas Company on April 1, 2009.

• Today we employ 52,000 people globally

“If you can’t do it better, why do it?”

-- Herbert H. Dow

Introducing R&D at Dow

• >$1.65 B Budget • 300 master projects • Industry-leading expertise:

– Materials science – Engineering – Catalysis – High throughput

Research Application Development Technical Service

Invent new molecules, materials, products and

processes

Create new product and solution offerings

Service customer requests and requirements

3

Clean Water

Industrial & Architectural

Coatings

ENERGY

Photovoltaics Building Systems

Wind Power Systems

CONSUMERISM

Electronics

Packaging

HEALTH & NUTRITION

Healthier Diets

Rice

Incipients

TRANSPORTATION & INFRASTRUCTURE

Energy Storage & The Grid

Home & Personal

Care

Global Megatrends

Bridging the Gap, Transforming the Future!

Education Building Understanding – from K through Gray

Collaboration Establishing an Innovation Ecosystem – for US Competitiveness

Innovation Delivering Solutions – to Energy, Food, Water, Security, Health…

Bridging the Gap, Transforming the Future!

Education Building Understanding – from K through Gray

Collaboration Establishing an Innovation Ecosystem – for US Competitiveness

Innovation Delivering Solutions – to Energy, Food, Water, Security, Health…

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"We need energy solutions with

unbelievable scale and reliability." Bill Gates

Distribution of Funding Determines US Priorities Federal Expenditures (Billions) for Energy development, 1950-2010

Ref:

Ref.: Management Information Services, Inc., 60 Years of Energy Incentives - Analysis of Federal Expenditures for Energy Development. October 2011.

Bridging the Gap, Transforming the Future!

Education Building Understanding – from K through Gray

Collaboration Establishing an Innovation Ecosystem – for US Competitiveness

Innovation Delivering Solutions – to Energy, Food, Water, Security, Health…

Government

Academia

National Lab

Industry

Establishing an Innovation Ecosystem: Collaboration is Key!

Rising above …

…the gathering storm!

Bridging the Gap, Transforming the Future!

Education Building Understanding – from K through Gray

Collaboration Establishing an Innovation Ecosystem – for US Competitiveness

Innovation Delivering Solutions – to Energy, Food, Water, Security, Health…

POWERHOUSE™ Solar Shingles

Made in the USA

2007: DOE Solar America Initiative; driving renewable energy innovation 2009: 48c Manufacturing Credit; driving renewable mfg. in the U.S.

2010: MEDC (MI Economic Development Corp.) enabling adv mfg. pilot facility: • Bringing 1275 advanced manufacturing jobs – direct jobs – by 2015

• Enabling 300 construction-related jobs

• Delivering 200 new jobs in the last 12 months

• Putting Americans back to work by focusing on green, advanced manufacturing jobs – many retrained to work at solar

2011: DOE SunShot Initiative ($1/watt solar) enabling the Next Generation of building integrated solar products; driving costs down to spur adoption.

Reinventing the Roof for the 21st Century Estimated $5Billion Addressable Market by 2015

Disruptive POWERHOUSE™ design addresses the four historical obstacles to residential solar adoption:

1. Installation complexity 2. Aesthetics 3. Warranty concerns 4. Affordability

DOE Solar Program: Solar America Initiative Dow POWERHOUSE™ Solar Shingle System

DOE Building Technologies Program: Build America Habitat Cost Effective Energy Retrofit Program

The Dow Chemical Company Foundation Retrofit PHILLY “Coolest Block” Contest

Net Zero Home Bay City, MI

DOE : Advanced Energy-Efficient Building Technologies Advanced Insulation for High Performance Cost-Effective Wall, Roof, and Foundation Systems

White/Cool Roofs Philadelphia, PA

Accelerating Energy Solutions

Accelerating Energy Storage Solutions

• Education - Next generation battery technology for electric and hybrid vehicles.

• Collaboration - $161 million grant from DOE Vehicle Technologies Program

• Innovation - Unique combination of chemistry, cell design, manufacturing systems and marketing experience delivers a cost/performance advantage

Accelerating Wind Energy Solutions

• Education – growing demand for renewable energy enabled by combining lightweight materials with advanced manufacturing

• Collaboration –DOE, ORNL, MAG, Astraeus, MEDC

• Innovation – Low cost carbon fiber and carbon fiber composites (polyolefin) for the next generation of turbine blades

American Ingenuity