How SUNY Matters

Page 1

+RZ 681< 0DWWHUV +2:

0$77(56

-XQH

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN


681< VSDQV 1HZ <RUN 6WDWH ZLWK LQVWLWXWLRQV DQG RYHU PLOOLRQ VWXGHQWV DOXPQL DQG HPSOR\HHV

6WXGHQWV

ZKR RULJLQDWHG IURP

HOVHZKHUH LQ 8 6

ZLWKLQ 1<6

HOVHZKHUH LQ ZRUOG

$OXPQL

ZKR OLYH LQ 1HZ <RUN 6WDWH

(PSOR\HHV 3ODWWVEXUJK

7KLV UHSRUW H[SORUHV WKH UROH RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN DV DQ HFRQRPLF HQJLQH IRU 1HZ <RUN 6WDWH 681< LV ERWK D GLUHFW HFRQRPLF IRUFH DQG D FDWDO\VW IRU LQQRYDWLRQ DV LW SUHSDUHV WKH ZRUNIRUFH SXWV QHZ NQRZOHGJH WR ZRUN DQG VWUHQJWKHQV H[LVWLQJ DQG VWDUW XS EXVLQHVVHV

)UHGRQLD

1RUWK &RXQWU\

-HIIHUVRQ

$GLURQGDFN

8SVWDWH 0HGLFDO 8QLYHUVLW\ 681<,7 2QRQGDJD

+HUNLPHU &RXQW\ )XOWRQ (PSLUH 6WDWH 0RQWJRPHU\ 0RKDZN *HQHVHH 6FKHQHFWDG\ (QYLURQPHQWDO 9DOOH\ )LQJHU /DNHV &D\XJD 6FLHQFH +XGVRQ 9DOOH\ &RXQW\ *HQHVHR 0RUULVYLOOH )RUHVWU\ &REOHVNLOO $OEDQ\ 7RPSNLQV &RUWODQG 2QHRQWD &RUWODQG

8 %XIIDOR

%XIIDOR 6WDWH (ULH

3RWVGDP

2VZHJR

%URFNSRUW 1LDJDUD &RXQW\

&OLQWRQ &DQWRQ

0RQURH

$OIUHG 6WDWH

%URRPH &RUQLQJ

-DPHVWRZQ $OIUHG 8QLYHUVLW\ &HUDPLFV

681< &$0386 6(&7256 8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

'HOKL &ROXPELD *UHHQH

%LQJKDPWRQ &RUQHOO 8QLYHUVLW\ $JULFXOWXUH /LIH 6FLHQFHV +XPDQ (FRORJ\ ,QGXVWULDO /DERU 5HODWLRQV 9HWHULQDU\ 0HGLFLQH

6XOOLYDQ &RXQW\

8OVWHU &RXQW\

1HZ 3DOW]

'XWFKHVV

2UDQJH &RXQW\ 5RFNODQG

:HVWFKHVWHU 3XUFKDVH

0DULWLPH &ROOHJH 2SWRPHWU\ )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\

2OG :HVWEXU\

6WRQ\ %URRN 6XIIRON &RXQW\

)DUPLQJGDOH 1DVVDX 'RZQVWDWH 0HGLFDO &HQWHU


+RZ 681< 0DWWHUV

+2:

0$77(56

$ERXW 7KLV 5HSRUW 7KLV UHSRUW LQFRUSRUDWHV GHWDLOHG HFRQRPHWULF GDWD D EURDG VXUYH\ RI FDPSXVHV DQG H[WHQVLYH ¿HOG UHVHDUFK 7KH UHVXOW LV WKH PRVW FRPSUHKHQVLYH UHSRUW HYHU RQ 681<¶V HFRQRPLF LPSDFW

([HFXWLYH 6XPPDU\

7KH (FRQRPLF 3RZHU RI 681< %URDG DQG GHHS (GXFDWLQJ RXU \RXQJ SHRSOH 3URYLGLQJ MREV 'UDZLQJ LQ GROODUV IURP RXW RI VWDWH $ PLQLPXP DQQXDO LPSDFW RI ELOOLRQ LQ ± IRU HYHU\ RI VWDWH VXSSRUW &UHDWLQJ WKH KLJK WHFK LQGXVWULHV RI WKH IXWXUH +HOSLQJ HVWDEOLVKHG EXVLQHVVHV EHFRPH PRUH FRPSHWLWLYH %ULQJLQJ QHZ EXVLQHVVHV WR OLIH

%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH 681< LV OHDGLQJ WKH ZD\ WR WKH HFRQRP\ ZH QHHG IRU WKH IXWXUH .H\ H[DPSOHV WKH 8QLYHUVLW\ DW %XIIDOR WKH 8QLYHUVLW\ DW $OEDQ\ 'RZQVWDWH 0HGLFDO 8QLYHUVLW\ 6WRQ\ %URRN 8QLYHUVLW\ %LQJKDPWRQ 8QLYHUVLW\

$Q (FRQRPLF )RUFH LQ ,WV 2ZQ 5LJKW 7KH ELJ SLFWXUH LV 681<¶V WRWDO HFRQRPLF IRRWSULQW ELOOLRQ 7KH GHWDLOV DUH HYHQ PRUH PHDQLQJIXO WKH MREV WKH VWXGHQWV DQG YLVLWRUV DWWUDFWHG WKH GROODUV EURXJKW LQ DQG NHSW ORFDO WKH LPSDFW RQ FRPPXQLWLHV

681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1HZ <RUN LV QRW MXVW RQH HFRQRP\ EXW PDQ\ ± DQG 681<¶V LPSDFW YDULHV UHJLRQ E\ UHJLRQ .H\ IDFWV ¿JXUHV H[DPSOHV DQG LQVLJKWV

&RQFOXVLRQV 681< KDV D EURDG SRVLWLYH LPSDFW RQ 1HZ <RUN 6WDWH¶V HFRQRP\ $QG LW KDV WKH SRWHQWLDO WR GR PRUH 2SSRUWXQLWLHV IRU LQQRYDWLRQ HQWUHSUHQHXUVKLS DQG HFRQRPLF OHDGHUVKLS DUH ZLGHVSUHDG

(QGQRWHV 'DWD 1RWHV


$ERXW 7KLV 5HSRUW

$ERXW 7KLV 5HSRUW

7KH 8QLWHG 6WDWHV IDFHV PDMRU FKDOOHQJHV LQ WKH LQFUHDVLQJO\ FRPSHWLWLYH JOREDO HFRQRP\ ³ DQG 1HZ <RUN 6WDWH HYHQ PRUH VR 1HZ <RUN·V MRE JURZWK UDWH KDV EHHQ OHVV WKDQ D WKLUG RI WKH QDWLRQ·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³ DQG EHFDXVH WKH\ DUH WKH NH\ WR GHYHORSLQJ D ZRUNIRUFH SUHSDUHG WR WDNH WKRVH MREV $V D UHVXOW XQLYHUVLWLHV DQG KLJKHU HGXFDWLRQ V\VWHPV DFURVV WKH FRXQWU\ DUH WDNLQJ OHDGLQJ UROHV LQ WKHLU VWDWHV· HFRQRPLF GHYHORSPHQW HIIRUWV 7KH\ DUH SXWWLQJ WKHLU UHVHDUFK DQG HGXFDWLRQDO SRZHU WR ZRUN E\ GHYHORSLQJ QHZ LGHDV KHOSLQJ WR GHSOR\ LQYHQWLRQV IRU FRPPHUFLDO XVH HGXFDWLQJ SRWHQWLDO HQWUHSUHQHXUV XVLQJ WKHLU H[SHUWLVH WR KHOS EXVLQHVVHV SHUIRUP EHWWHU KHOSLQJ EXVLQHVVHV SUHSDUH ZRUNHUV WR FDUU\ RXW QHZ WDVNV DQG IRVWHULQJ D TXDOLW\ RI OLIH WKDW LV HVVHQWLDO IRU HFRQRPLF JURZWK

7KLV VWXG\ H[DPLQHV WKH EURDG HFRQRPLF UROH RI WKH XQLYHUVLW\ V\VWHP DQG HVWDEOLVKHV D EHQFKPDUN IRU PHDVXULQJ IXWXUH SURJUHVV

681< DQG LWV QHZ FKDOOHQJHV :KDW UROH GRHV WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN SOD\ LQ PHHWLQJ WKH VWDWH·V QHZ HFRQRPLF FKDOOHQJHV" 7R À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·V VWUDWHJLF SODQ ´7KH 3RZHU RI 681< µ ZKLFK ZDV ODXQFKHG E\ &KDQFHOORU 1DQF\ / =LPSKHU LQ 7KH VWUDWHJLF SODQ VHHNV WR VWUHQJWKHQ 681<·V UROH DV WKH HQJLQH RI 1HZ <RUN 6WDWH·V HFRQRPLF UHYLWDOL]DWLRQ E\ HQKDQFLQJ LWV SURGXFWLRQ RI LGHDV DSSOLFDWLRQV DQG D VNLOOHG DQG GLYHUVH ZRUNIRUFH 2QH NH\ JRDO RI WKH &KDQFHOORU·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

6FRSH DQG PHWKRGRORJ\ %\ FRPELQLQJ TXDOLWDWLYH DQG TXDQWLWDWLYH DQDO\VLV WKH VWXG\ SURYLGHV D FRPSUHKHQVLYH HVWLPDWH RI WKH HFRQRPLF LPSDFWV RI 681<·V FDPSXVHV RQ WKHLU ORFDO FRPPXQLWLHV WKH V\VWHP·V RYHUDOO HFRQRPLF LPSDFW RQ WKH VWDWH VXUYH\ GDWD RQ FDPSXV VXSSRUW IRU LQQRYDWLRQ DQG EXVLQHVV DVVLVWDQFH SURJUDPPLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


DQG VWUXFWXUHG ÀHOG REVHUYDWLRQV RI FDVHV ZKHUH 681< LQVWLWXWLRQV KDYH HQFRXUDJHG HFRQRPLF GHYHORSPHQW LQ WKHLU FRPPXQLWLHV DQG UHJLRQV $ NH\ WDVN ZDV GHYHORSLQJ D EDVHOLQH HVWLPDWH IURP RI WKH HFRQRPLF LPSDFWV RI 681< FDPSXVHV DV ZHOO DV RI WKH V\VWHP DV D ZKROH 0DQ\ FDPSXVHV DOUHDG\ UHSRUW RQ WKHLU HFRQRPLF LPSDFWV EXW WKH PHDVXUHV PHWKRGRORJLHV DQG WLPH IUDPHV KDYH YDULHG IURP RQH FDPSXV WR DQRWKHU 7KLV VWXG\ SURYLGHV D +2: FRPSUHKHQVLYH PHWKRGRORJLFDOO\ FRQVLVWHQW DQG FRQVHUYDWLYH HVWLPDWH RI 681<·V HFRQRPLF LPSDFW RQ WKH VWDWH DQG LWV ORFDO FRPPXQLWLHV DV ZHOO DV WKH VHSDUDWH LPSDFWV RI JHRJUDSKLF 0$77(56 JURXSLQJV RI 681< LQVWLWXWLRQV RQ WKHLU UHJLRQDO HFRQRPLHV 7R TXDQWLI\ EDVLF HFRQRPLF DQG ÀVFDO LPSDFWV WKH 8QLYHUVLW\ DW 72 7+( %XIIDOR 5HJLRQDO ,QVWLWXWH XVHG ,03/$1 ,PSDFW $QDO\VLV IRU &20081,7< 3ODQQLQJ DQ LQGXVWU\ VWDQGDUG FRPSXWHU EDVHG LQSXW RXWSXW PRGHO WUDFLQJ VSHQGLQJ DQG UH VSHQGLQJ ZLWKLQ D ORFDO HFRQRP\ EDVHG RQ UHJLRQ VSHFLÀ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·V HFRQRPLF GHYHORSPHQW UROH GUDZ OHVVRQV DERXW WKH GHFLVLRQV LQYHVWPHQWV V\VWHPV DQG FXOWXUH WKDW SURGXFH VXFFHVV DQG KHOS LGHQWLI\ PHDVXUHV IRU WUDFNLQJ HFRQRPLF GHYHORSPHQW HIIRUWV DQG WKHLU SHUIRUPDQFH &DVH H[DPSOHV ZHUH VHOHFWHG IURP DPRQJ D SRRO RI FDPSXV HFRQRPLF GHYHORSPHQW DFWLYLWLHV LGHQWLÀHG E\ VXUYH\V RI 681< RIÀFLDOV DQG UHJLRQDO HFRQRPLF GHYHORSPHQW VSHFLDOLVWV DV ZHOO DV WKH SURMHFW WHDP (DFK FDPSXV SUHVLGHQW ZDV DVNHG WR UHSRUW RQ VWDQGRXW LQLWLDWLYHV WKDW KDG WKH PRVW VLJQLÀFDQW LPSDFW RQ HFRQRPLF GHYHORSPHQW LQ WKH UHJLRQ &DPSXV RIÀFLDOV ZLWK HFRQRPLF GHYHORSPHQW UHVSRQVLELOLW\ ZHUH VXUYH\HG RQ FDPSXV LQFHQWLYHV WR FRPPHUFLDOL]H DFDGHPLF UHVHDUFK GLUHFW DVVLVWDQFH WR EXVLQHVVHV LQ WKH UHJLRQ PHWULFV RQ WHFK WUDQVIHU DQG WKH FKDOOHQJHV WR HFRQRPLF GHYHORSPHQW DFWLYLW\ DW WKHLU FDPSXV 7KH VWXG\ LOOXVWUDWHV WKH UDQJH RI DFWLYLWLHV WKDW FDPSXV IDFXOW\ DGPLQLVWUDWRUV DQG VWXGHQWV FDUU\ RXW WR SURPRWH HFRQRPLF DQG FRPPXQLW\ JURZWK E\ FRPPHUFLDOL]LQJ VFLHQFH DQG WHFKQRORJ\ UHVHDUFK VXSSRUWLQJ EXVLQHVV LQFXEDWRUV RQ FDPSXVHV IRVWHULQJ VWDUW XSV VWUHQJWKHQLQJ FOXVWHUV HGXFDWLQJ HPSOR\HHV DQG SURYLGLQJ PDQ\ IRUPV RI EXVLQHVV DVVLVWDQFH WR 1HZ <RUN À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

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


7KH (FRQRPLF 3RZHU RI 681<

([HFXWLYH 6XPPDU\

7KH (FRQRPLF 3RZHU RI 681<

%LOOLRQ MREV VXSSRUWHG 0 LQ VWDWH DQG ORFDO WD[HV JHQHUDWHG 0LQLPXP $QQXDO (FRQRPLF ,PSDFW RI 681< LQ 1HZ <RUN 6WDWH

%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\

S

7KURXJK LWV FRUH PLVVLRQ ³ HGXFDWLRQ UHVHDUFK DQG VHUYLFH ³ 681< KDV WUDGLWLRQDOO\ VXSSRUWHG WKH HFRQRP\ RI 1HZ <RUN 6WDWH JHQHUDWLQJ DQG WUDQVIHUULQJ QHZ LGHDV DQG NQRZOHGJH SUHSDULQJ WKH ZRUNIRUFH DQG VHUYLQJ WKH FRPPXQLWLHV RI 1HZ <RUN 6WDWH <HW WRGD\ 681< LV WDNLQJ LWV UROH LQ HFRQRPLF GHYHORSPHQW WR DQRWKHU OHYHO DV LWV FDPSXVHV SXUVXH D UDQJH RI SURJUDPV SROLFLHV DQG SUDFWLFHV 7KHVH HIIRUWV FDQ EH FDWHJRUL]HG DURXQG WKUHH NH\ DSSURDFKHV $GYDQFLQJ LQQRYDWLRQ E\ LQYHVWLQJ LQ UHVHDUFK DQG QHZ HQWHUSULVHV

+HOSLQJ EXVLQHVVHV SHUIRUP EHWWHU WKURXJK WUDLQLQJ FRQVXOWDWLRQ DQG RWKHU VHUYLFHV

)RVWHULQJ YLWDO FRPPXQLWLHV E\ VKDULQJ H[SHUWLVH DQG UHVRXUFHV IURP DSSOLHG UHVHDUFK WR FXOWXUDO DPHQLWLHV

)URP LWV VL[ &HQWHUV RI ([FHOOHQFH DGYDQFLQJ UHVHDUFK LQ H[FLWLQJ QHZ ÀHOGV WR ZRUNIRUFH GHYHORSPHQW HIIRUWV IURP -DPHVWRZQ WR )DUPLQJGDOH 681< LV ´DW ZRUNµ LQ WKLV QHZ UROH DQG KDV PDQ\ VXFFHVV VWRULHV WR VKDUH

$7 $7 :25. : 25

7KH %URDG (FRQRPLF 5HDFK RI WKH 8QLYHUVLW\ DW %XIIDOR

$OEDQ\ 1DQR 7KH 6WRU\ RI 2QH (QWUHSUHQHXULDO 3K\VLFV 3URIHVVRU 'RZQVWDWH 0HGLFDO &HQWHU $ )XWXUH LQ %LR7HFK *URZV LQ %URRNO\Q

6WRQ\ %URRN·V ,QQRYDWLRQ )RRWSULQW )URP ; 5D\V WR 6XSHUFRPSXWLQJ %LQJKDPWRQ 8QLYHUVLW\ 6WUHQJWKHQLQJ WKH 6RXWKHUQ 7LHU·V +LJK 7HFK ,QGXVWULHV .H\HG WR WKH 3RWHQWLDO RI 0LQRULW\ 2ZQHG %XVLQHVVHV

´&DVHV LQ 3RLQWµ DSSHDU WKURXJKRXW WKH UHSRUW IHDWXULQJ VHOHFW 681< FDPSXVHV IRU WKHLU HFRQRPLF GHYHORSPHQW HIIRUWV DQG SURJUDPV &$6( ,1 32,17

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

$Q (FRQRPLF )RUFH LQ LWV 2ZQ 5LJKW 7KH FDPSXV 681< S V\VWHP LQFOXGLQJ VWXGHQWV IDFXOW\ DQG VWDII DQG D EXGJHW RI RYHU ELOOLRQ LV D SRZHUIXO VRXUFH RI HFRQRPLF DFWLYLW\ LQ 1HZ <RUN 6WDWH %XW 681<·V LPSDFW LQ WKH NQRZOHGJH HFRQRP\ JRHV PXFK GHHSHU DGYDQFLQJ WKH UHVHDUFK DQG LGHDV WKDW DUH WKH IRXQGDWLRQ IRU QHZ HQWHUSULVHV DQG HFRQRPLF JURZWK SUHSDULQJ WKH ZRUNIRUFH ZLWK QHZ VNLOOV LGHDV DQG HQWUHSUHQHXULVP DQG EXLOGLQJ YLEUDQW GLYHUVH DQG FXOWXUDOO\ ULFK FRPPXQLWLHV

681<·V HFRQRPLF LPSDFW 7KH IXHO IRU WKLV SRZHUIXO F\FOH VWDUWV ZLWK WKH UHYHQXHV 681< JHQHUDWHV WR IXQG UHVHDUFK VXSSRUW TXDOLW\ DFDGHPLF SURJUDPPLQJ DWWUDFW WRS WLHU IDFXOW\ DQG VWDII RIIHU FRPPXQLW\ HQULFKLQJ UHVRXUFHV DQG GHYHORS DQG PDLQWDLQ FDSLWDO DVVHWV IURP FODVVURRPV WR ODERUDWRULHV $V WKHVH GROODUV DUH LQMHFWHG LQWR WKH HFRQRP\ WKH\ IXHO QHZ HFRQRPLF DFWLYLW\ DQG HPSOR\PHQW IRU WKH VWDWH DQG LWV UHJLRQV


7KHVH LPSDFW ÀJXUHV DUH EDVHG RQ D PHWLFXORXV DQG SUXGHQW HFRQRPLF LPSDFW PHWKRGRORJ\ FDOFXODWLQJ WRWDO HFRQRPLF RXWSXW DQG HPSOR\PHQW LPSDFWV DVVRFLDWHG ZLWK 681<

:KDW·V ,QFOXGHG" 6SHQGLQJ DVVRFLDWHG ZLWK VWDWH RSHUDWLRQV DW HDFK FDPSXV 681< DGPLQLVWUDWLYH RIÀFHV DQG WKH 681< 5HVHDUFK )RXQGDWLRQ DV ZHOO DV RII FDPSXV VSHQGLQJ E\ VWXGHQWV IDFXOW\ DQG VWDII DQG RYHUQLJKW YLVLWRUV 7KLV VFRSH HQFRPSDVVHV VSHQGLQJ IRU ZKLFK GDWD DUH FHQWUDOO\ DYDLODEOH DFURVV DOO 681< FDPSXVHV :KDW·V 1RW ,QFOXGHG" 6SHQGLQJ E\ 681< UHWLUHHV DQG DOXPQL XQLYHUVLW\ DVVRFLDWLRQV IRXQGDWLRQV SDUWQHU FRPSDQLHV RU VWDUW XSV DQG QRQ VWDWH RSHUDWLRQV H J DIÀOLDWHG KRXVLQJ RU KHDOWK FDUH IDFLOLWLHV ZLWK ÀQDQFHV UHSRUWHG VHSDUDWHO\ IURP WKH FROOHJH 7KLV DQDO\VLV UHOLHV RQ VWDQGDUGL]HG DQG FHQWUDOO\ UHSRUWHG ÀQDQFLDO GDWD IURP ,3('6 ,QWHJUDWHG 3RVWVHFRQGDU\ (GXFDWLRQ 'DWD 6\VWHP ZLWK D EDVHOLQH \HDU RI WKH ODWHVW \HDU IRU ZKLFK FRPSUHKHQVLYH GDWD DUH DYDLODEOH )RU PRUH LQIRUPDWLRQ VHH ´(FRQRPLF ,PSDFWµ LQ WKLV UHSRUW·V 'DWD 1RWHV

681< DV D UHVHDUFK HQWHUSULVH

&DWDO\]LQJ FRPPXQLW\ YLWDOLW\

681< LV DOVR D UHVHDUFK HQWHUSULVH DV WKH EHVW DQG EULJKWHVW IDFXOW\ WKH WK KH PHPEHUV ,QQRYDWLRQ VHFXUH PDMRU (FRQRP\ UHVHDUFK ELOOLRQ LQ DZDUGV WR UHVHDUFK UHYHQXHV H[SORUH QHZ LGHDV DQG LQ DGYDQFH WKH ODWHVW ,Q D W\SLFDO \HDU 681< JHQHUDWHV WHFKQRORJLHV 7KHVH GROODUV LQYHQWLRQ EULQJ QHZ MREV GLVFORVXUHV DQG HFRQRPLF SDWHQW DSSOLFDWLRQV JURZWK IURP SDWHQWV DQG SDWHQWV VSLQ RIIV VSLQ RIIV WR VRFLHW\ DGYDQFLQJ VWDUW XSV GLVFRYHULHV OLFHQVHV

681< LQVWLWXWLRQV DUH ODQGPDUNV LQ WKH FLWLHV WRZQV DQG YLOODJHV RI 1HZ <RUN 6WDWH ZKLOH 681< IDFXOW\ VWDII DQG DOXPQL DUH FRQWULEXWLQJ FRPPXQLW\ PHPEHUV DFURVV WKH VWDWH 681< FKDQJHV WKH IDFH RI LWV KRVW FRPPXQLWLHV IRVWHULQJ D UHODWLYHO\ \RXQJHU PRUH GLYHUVH DQG PRUH KLJKO\ HGXFDWHG SRSXODWLRQ 681< DOVR KHOSV WR EXLOG PRUH ,PSDFW SDFW FWW HFRQRPLFDOO\ &RPPXQLWLHV YLEUDQW SODFHV $Q DQDO\VLV RI E\ SURYLGLQJ QLQH 681< KRVW FXOWXUDO FRPPXQLWLHV UHVRXUFHV LVRODWHV 681<·V LPSDFWV RQ SK\VLFDO FRPPXQLWLHV DVVHWV DQG D DQG VKRZV WKHLU FULWLFDO PDVV SRSXODWLRQV DUH RI LQWHOOHFWXDO \RXQJHU PRUH GLYHUVH DQG KDYH FLYLF DQG KLJKHU HGXFDWLRQ HFRQRPLF OHYHOV 7KHVH DFWLYLW\ WKDW FRPPXQLWLHV ÀOWHUV LQWR DUH DOVR PRUH QHLJKERUKRRGV YLEUDQW SODFHV EXVLQHVVHV DQG ZLWK ´ZDONDEOHµ QHLJKERUKRRGV SXEOLF VSDFHV

PLOOLRQ

LQ OLFHQVH LQFRPH

3UHSDULQJ WKH NQRZOHGJH ZRUNIRUFH

681< DQG S 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 7KH LPSDFW RI 681< H[WHQGV DFURVV GLYHUVH UHJLRQV RI 1HZ <RUN 6WDWH OHYHUDJHG E\ D XQLTXH 681< IRRWSULQW IRU HYHU\ UHJLRQ 7KLV PL[ RI LQVWLWXWLRQV VWXGHQWV DOXPQL SURJUDPV DQG VHUYLFHV GLVWLQFWO\ VKDSHV WKH HFRQRPLHV ZRUNIRUFHV DQG FRPPXQLWLHV RI HDFK UHJLRQ 7KLV GLYHUVLW\ DOVR DGGV XS WR D SXEOLF KLJKHU HGXFDWLRQ V\VWHP WKDW LV WKH PRVW FRPSUHKHQVLYH LQ WKH QDWLRQ

5HJLRQV RI 1<6

&DSLWDO 'LVWULFW

&HQWUDO 1HZ <RUN

)LQJHU /DNHV

+XGVRQ 9DOOH\

681<·V QHWZRUN RI RYHU PLOOLRQ /RQJ ,VODQG IHZHU UHVLGHQWV DOXPQL OLYLQJ LQ 1HZ <RUN 6WDWH FRPPXWLQJ RXW 0RKDZN 9DOOH\ IRU MREV DQG UHSUHVHQWV D YDVW VXSSO\ RI ODERU ORZHU YDFDQF\ WR ÀOO MREV LQ HYHU\ LQGXVWU\ LQ WKH 1HZ <RUN &LW\ UDWHV VWDWH (YHU\ \HDU 681<·V GLYHUVH 1RUWK &RXQWU\ LQVWLWXWLRQV UHLQIRUFH 6RXWKHUQ 7LHU WKH VWDWH·V ZRUNIRUFH ZLWK JUDGXDWHV VWHHSHG $/801, :HVWHUQ 1HZ <RUN LQ NQRZOHGJH DQG VNLOOV DFURVV KXQGUHGV RI GLVFLSOLQHV 681< 681< DOXPQL 681< GHJUHHV SURYLGHV WKH VWDWH·V OLYLQJ LQ 1HZ JUDQWHG LQ <RUN 6WDWH ¶ ¶ ODUJHVW DQG IDVWHVW JURZLQJ LQGXVWULHV ZLWK WKDW·V 681< DOXPQL IRU HYHU\ WKDW·V SHUFHQW RI DOO FROOHJH WKH KXPDQ FDSLWDO WKH\ MREV LQ WKH VWDWH UHTXLULQJ D GHJUHHV JUDQWHG LQ WKH VWDWH FROOHJH GHJUHH RU DGYDQFHG VNLOO QHHG WR JURZ

0

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH

`


+2: 0$77(56

%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH $V FRPSHWLWLRQ LQ WKH JOREDO HFRQRP\ LQWHQVLÀHV LQQRYDWLRQ ³ WKH GHYHORSPHQW DQG LPSOHPHQWDWLRQ RI QHZ LGHDV QHZ SURFHVVHV QHZ VNLOOV QHZ SURGXFWV DQG VHUYLFHV ³ EHFRPHV WKH NH\ WR WKH JURZWK DQG VXFFHVV RI RXU UHJLRQDO VWDWH DQG QDWLRQDO HFRQRPLHV 7KDW LQ WXUQ PHDQV WKDW KLJKHU HGXFDWLRQ V\VWHPV DQG LQVWLWXWLRQV DUH SOD\LQJ DQ LQFUHDVLQJO\ FHQWUDO UROH LQ EXLOGLQJ RXU IXWXUH HFRQRP\ 1HZ LGHDV DUH WKH NH\ WR VXFFHVV KLJKHU HGXFDWLRQ LV ERWK WKH VRXUFH DQG WKH SURYLQJ JURXQG IRU QHZ LGHDV 7KLV UROH EXLOGV XSRQ EXW JRHV ZHOO EH\RQG KLJKHU HGXFDWLRQ·V WUDGLWLRQDO VWUHQJWKV LQ WKH HGXFDWLRQDO SUHSDUDWLRQ RI VWXGHQWV DQG LQ UHVHDUFK ,Q ZD\V ODUJH DQG VPDOO XQLYHUVLWLHV DQG XQLYHUVLW\ V\VWHPV DUH DSSO\LQJ WKHPVHOYHV WR WKH FKDOOHQJLQJ MRE RI EXLOGLQJ RXU LQQRYDWLRQ HFRQRP\ 7KLV WKHQ LV WKH QHZ SDUDGLJP IRU HFRQRPLF GHYHORSPHQW $QG H[SHFWDWLRQV DUH KLJK 1HZ <RUN *RYHUQRU $QGUHZ &XRPR LV UHRUJDQL]LQJ WKH VWDWH·V HFRQRPLF GHYHORSPHQW SURJUDPV XQGHU UHJLRQDO FRXQFLOV WKDW ZLOO DOORFDWH LQFHQWLYHV DQG SURJUDP GROODUV 7KH ZKROH SURFHVV KH KDV VDLG PXVW EH ´KLJKHU HG GULYHQ µ 6WDWH 8QLYHUVLW\ RI 1HZ <RUN &KDQFHOORU 1DQF\ / =LPSKHU GHFODUHG RQ KHU ÀUVW GD\ LQ WKH MRE WKDW VKH ZDQWHG WR PDNH 681< WKH HQJLQH RI 1HZ <RUN¶V HFRQRPLF UHYLWDOL]DWLRQ

$ $7 :25. :

681< DW :RUN 7RS ([DPSOHV 68 8Q 8QLYHUVLW\ DW %XIIDOR S $OEDQ\ 1DQR S $OE 'RZQVWDWH 0HGLFDO S 'R 6WRQ\ %URRN S 6WR %LQJKDPWRQ S 0LQRULW\ 2ZQHG %XVLQHVVHV S

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

7KH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN LV UHVSRQGLQJ $ UHYLHZ RI HFRQRPLF GHYHORSPHQW HIIRUWV DFURVV WKH FDPSXV V\VWHP KDV IRXQG D EURDG DUUD\ RI LQLWLDWLYHV 7KHUH DUH VRPH VSHFWDFXODU VXFFHVV VWRULHV VXFK WKH &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ DW WKH 8QLYHUVLW\ DW $OEDQ\ RU 'RZQVWDWH 0HGLFDO &HQWHU·V UHFRUG LQ IRVWHULQJ WKH IDVW PRYLQJ ELRWHFK VHFWRU LQ %URRNO\Q 681< LQVWLWXWLRQV LQ %XIIDOR 3ODWWVEXUJK


)DUPLQJGDOH -DPHVWRZQ DQG HOVHZKHUH DUH KHOSLQJ PDQXIDFWXUHUV XSGDWH SURFHVVHV DQG VNLOOV 2WKHU LQVWLWXWLRQV DUH ÀQGLQJ ZD\V WR UHYLWDOL]H WKHLU FRPPXQLWLHV EHFDXVH TXDOLW\ RI OLIH LV D EDVLF UHTXLUHPHQW IRU HFRQRPLF JURZWK

681< 6XSSRUW IRU ,QQRYDWLRQ RI FDPSXVHV E\ W\SH RIIHULQJ

8QLYHUVLW\ &HQWHUV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

$// &$0386(6 (FRQRPLF GHYHORSPHQW DFWLYLWLHV LQ KLJKHU HGXFDWLRQ DUH DV ZLGH UDQJLQJ DV WHFKQRORJ\ WUDQVIHU MRE WUDLQLQJ EXVLQHVV FRQVXOWLQJ DQG VHFXULQJ VHHG PRQH\ IRU QHZ EXVLQHVVHV 7KH FRPPRQ WKUHDG WKDW UXQV WKURXJK DOO WKHVH GLYHUVH HIIRUWV LV NQRZOHGJH ,W LV NQRZOHGJH WKDW FUHDWHV QHZ SURGXFWV DQG VHUYLFHV DQG LQGXVWULHV WKDW PDNHV ZRUNHUV PRUH SURGXFWLYH WKDW PDNHV VRFLHW\ ZRUN EHWWHU

$Q LQFXEDWRU WR KRXVH QHZ VWDUW XSV

)LQDQFLDO VXSSRUW IRU SDWHQW FRS\ULJKW DSSOLFDWLRQ

/DE RU RIILFH VSDFH IRU 5 '

$GYDQFLQJ LQQRYDWLRQ $ FULWLFDO PDVV RI LQWHOOHFWXDO DQG UHVHDUFK SRZHU LV QHHGHG WR FRPH XS ZLWK WUXO\ QHZ LGHDV LQ DQ DGYDQFHG VRFLHW\ ZKLFK KLJKHU HGXFDWLRQ LQVWLWXWLRQV KHOS SURYLGH DQG VXSSRUW LQ D QXPEHU RI ZD\V 8QLYHUVLWLHV SXVK WKH IURQWLHUV RI GLVFRYHU\ LQ EDVLF UHVHDUFK DWWUDFWLQJ IHGHUDO DQG SULYDWH LQYHVWPHQW LQ ODEV DQG HTXLSPHQW 7KH\ GHYHORS UHVHDUFK SDUNV WR EULGJH WKH JDS EHWZHHQ WKH UHVHDUFK DQG VFLHQWLÀF GLVFRYHULHV WDNLQJ SODFH RQ FDPSXV DQG WKH QHHGV RI H[LVWLQJ FRPSDQLHV HQWUHSUHQHXUV DQG LQYHVWRUV ZKR VHH FRPPHUFLDO SRWHQWLDO LQ WKH XQLYHUVLW\·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À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ÁLJKW VFLHQWLVWV WR D UHJLRQ SURYLGLQJ ORFDO VWDELOLW\ GXULQJ WLPHV RI GLVUXSWLRQ DQG XQFHUWDLQW\ LQ SULYDWH ÀUPV

&RPSHWLWLYH VHHG RU EULGJH IXQGV IRU UHVHDUFKHUV

$GYDQWDJHV LQ FDUHHU DGYDQFHPHQW

3UHIHUHQFHV LQ UHFUXLWPHQW

)LQDQFLDO VXSSRUW IRU SURWRW\SH GHYHORSPHQW

)LQDQFLDO VXSSRUW IRU PDUNHW YDOLGDWLRQ UHVHDUFK

([DPSOHV RI XQLYHUVLW\ DQG XQLYHUVLW\ V\VWHP VXSSRUW IRU LQQRYDWLRQ FDQ EH VHHQ DW 681< FDPSXVHV DOO DFURVV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH

681< 'LUHFW $VVLVWDQFH WR %XVLQHVVHV LQ 5HJLRQ &DPSXV KDV

RI FDPSXVHV E\ W\SH RIIHULQJ 8QLYHUVLW\ &HQWHUV

DQ RIILFH VSHFLILFDOO\ GHYRWHG WR DVVLVWLQJ VPDOO EXVLQHVVHV

8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV $// &$0386(6

FRXUVH RIIHULQJV WDLORUHG WR WKH QHHGV RI SDUWLFXODU HPSOR\HUV LQ WKH UHJLRQ

&DPSXV ZRUNV ZLWK FOXVWHUV RI ILUPV RQ ZRUNIRUFH WUDLQLQJ DQG SODQQLQJ

VKDUHG OHDUQLQJ RSSRUWXQLWLHV

MRLQW PDUNHWLQJ

+HOSLQJ EXVLQHVVHV SHUIRUP EHWWHU

VKDUHG 5 '

,QQRYDWLRQ LV RI QR YDOXH LI QRW LPSOHPHQWHG VXFFHVVIXOO\ DQG WKH FRQQHFWLRQ EHWZHHQ LGHD DQG SUDFWLFH GRHVQ¶W KDSSHQ DXWRPDWLFDOO\ $V WKH 2UJDQL]DWLRQ IRU (FRQRPLF

RWKHU DFWLYLWLHV

:RUNHU 7UDLQLQJ

1HZ <RUN $ FRPSUHKHQVLYH VXUYH\ RI RIÀFLDOV ZLWK UHVSRQVLELOLW\ IRU HFRQRPLF GHYHORSPHQW DW HDFK 681< FDPSXV FRQGXFWHG DW WKH RXWVHW RI WKLV VWXG\ LQ 1RYHPEHU UHYHDOHG D YDULHW\ RI WRROV LQ ZLGHVSUHDG XVH HDFK GHVLJQHG WR FUHDWH DGGLWLRQDO RSSRUWXQLWLHV IRU FRPPHUFLDOL]LQJ DFDGHPLF UHVHDUFK 1HDUO\ DOO 681< XQLYHUVLW\ FHQWHUV KDYH DW OHDVW RQH EXVLQHVV LQFXEDWRU RU VLPLODU IDFLOLW\ WR KRXVH QHZ VWDUW XSV RU RWKHU QDVFHQW EXVLQHVVHV DV GR RQH TXDUWHU RI WKH WHFKQRORJ\ FROOHJHV DQG DERXW RQH VL[WK RI WKH XQLYHUVLW\ FROOHJHV /DE RU RIÀFH VSDFH IRU UHVHDUFK DQG GHYHORSPHQW LV SURYLGHG DV DQ LQFHQWLYH IRU FRPPHUFLDOL]DWLRQ E\ HYHU\ 681< XQLYHUVLW\ FHQWHU DQG E\ PRVW RI WKH 681< WHFKQRORJ\ DQG XQLYHUVLW\ FROOHJHV (YHU\ XQLYHUVLW\ FHQWHU DQG RYHU KDOI WKH XQLYHUVLW\ FROOHJHV UHSRUW WKH\ SURYLGH ÀQDQFLDO VXSSRUW IRU SDWHQW RU FRS\ULJKW DSSOLFDWLRQV )LYH LQ HLJKW XQLYHUVLW\ FHQWHUV UHSRUW WKDW ÀQDQFLDO VXSSRUW IRU SURWRW\SH GHYHORSPHQW LV SURYLGHG &RPSHWLWLYH VHHG RU EULGJH IXQGV IRU UHVHDUFKHUV DUH SURYLGHG DV DQ LQFHQWLYH IRU FRPPHUFLDOL]DWLRQ DW RYHU WKUHH TXDUWHUV RI 681< XQLYHUVLW\ FHQWHUV DQG DW DERXW KDOI RI 681< XQLYHUVLW\ FROOHJHV

681< &DQWRQ SURYLGHV WUDLQLQJ DQG ZRUNVKRSV WDLORUHG WR WKH QHHGV RI EXVLQHVV LQGXVWU\ DQG WKH FRPPXQLW\ ZRUNLQJ ZLWK HPSOR\HUV DQG UHVLGHQWV WR LPSURYH VNLOOV QHHGHG IRU FHUWL¿FDWLRQ SURPRWLRQ DQG WHFKQLFDO FXUUHQF\

&RUQLQJ &RPPXQLW\ &ROOHJH DQG &ROXPELD *UHHQH &RPPXQLW\ &ROOHJH DUH H[DPSOHV RI 681< FDPSXVHV WKDW KRXVH DQG RSHUDWH FDUHHU RQH VWRS FHQWHUV LQ FRQFHUW ZLWK VWDWH DQG IHGHUDO ZRUNIRUFH GHYHORSPHQW SURJUDPV IRU WKHLU UHJLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

681< (PSLUH 6WDWH &ROOHJH LV D 1HZ <RUN 6WDWH 'HSDUWPHQW RI /DERU DSSURYHG WUDLQLQJ SURYLGHU LQ DOPRVW HYHU\ FRXQW\ RI WKH VWDWH ,W UHJXODUO\ SDUWQHUV ZLWK EXVLQHVVHV WKDW KDYH JURZWK SRWHQWLDO DQG UHTXLUH D VNLOOHG ZRUNIRUFH WR PHHW WKHLU JRDOV

+HUNLPHU &RPPXQLW\ &ROOHJH SURYLGHV WHFKQLFDO ZRUNIRUFH GHYHORSPHQW DQG OHDGHUVKLS WUDLQLQJ SURJUDPV WR KHOS EXVLQHVVHV DQG RUJDQL]DWLRQV LQ WKH UHJLRQ NHHS SDFH ZLWK WKH FKDQJLQJ HFRQRP\


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ÀUPV ZLWK QR VXFK FRQQHFWLRQ 7KH PRVW ZLGHVSUHDG DQG DUJXDEO\ WKH PRVW LPSRUWDQW ZD\ LQ ZKLFK KLJKHU HGXFDWLRQ LQVWLWXWLRQV KHOS VXSSRUW WKH FRPSHWLWLYHQHVV DQG JURZWK RI HPSOR\HUV LQ WKHLU FRPPXQLWLHV LV WKURXJK ZRUNHU WUDLQLQJ SURJUDPV :RUNIRUFH WUDLQLQJ PD\ QRW VRXQG OLNH ´LQQRYDWLRQµ ³ EXW LW LV :RUNHUV EHLQJ WUDLQHG DUH OHDUQLQJ VRPHWKLQJ WKDW ZLOO HQDEOH WKHLU HPSOR\HU WR DGRSW QHZ SURFHVVHV RU WR SURGXFH QHZ SURGXFWV RU VHUYLFHV LQ ZD\V WKDW ZLOO LPSURYH WKH HIÀFLHQF\ FRPSHWLWLYHQHVV DQG VWD\LQJ SRZHU RI WKH ÀUP 1HZ VNLOOV PD\ HQDEOH WKH ZRUNHUV WKHPVHOYHV WR KROG D EHWWHU MRE JHW D SURPRWLRQ RU PRYH WR D QHZ SRVLWLRQ WKDW ZLOO PDNH WKHP PRUH SURGXFWLYH $OO RI WKDW VXSSRUWV LQQRYDWLRQ &RPPXQLW\ DQG WHFKQLFDO FROOHJHV RIIHU FUHGLW EHDULQJ FRXUVHV WKDW OHDG WR FHUWLÀFDWHV DQG WZR \HDU GHJUHHV DQG HQDEOH WKHLU VWXGHQWV WR WUDQVIHU WR IRXU \HDU FROOHJHV %XW PXFK RI WKH MRE VSHFLÀF WUDLQLQJ WKH\ SURYLGH LV LQ WKH IRUP RI QRQ FUHGLW FRXUVHV GHYHORSHG RXWVLGH WUDGLWLRQDO DFDGHPLF JXLGHOLQHV 2IWHQ WKHVH DUH SXW WRJHWKHU WR PHHW WKH QHHGV RI D VSHFLÀF HPSOR\HU IRU ZRUNHUV ZLWK D VSHFLÀF VHW RI VNLOOV ,Q RWKHU FDVHV KRZHYHU WUDLQLQJ LV GHVLJQHG IRU D W\SH RI MRE RU D FDUHHU ODGGHU WR EH VKDUHG E\ PXOWLSOH HPSOR\HUV ³ DQ HFRQRPLF ´FOXVWHUµ ³ LQ D FRPPXQLW\ RU UHJLRQ WUDLQLQJ SHRSOH WR LQVWDOO VRODU SDQHOV IRU H[DPSOH RU RSHUDWH PDFKLQH WRROV

:RUNIRUFH WUDLQLQJ PD\ QRW VRXQG OLNH ´LQQRYDWLRQµ ² EXW LW LV

/HDGLQJ DQDO\VWV EHOLHYH WKDW VWUHQJWKHQLQJ WKH DELOLW\ RI HQWHUSULVHV WR WDNH DGYDQWDJH RI EHVW SUDFWLFHV LQ WHUPV RI SURGXFWV VHUYLFHV DQG SURFHVVHV LV DW OHDVW DV LPSRUWDQW IRU HFRQRPLF JURZWK DV LV JHQHUDWLQJ QHZ GLVFRYHULHV )RU H[DPSOH (GZDUG *ODHVHU RI +DUYDUG DQG $OEHUW 6DL] RI WKH 8QLYHUVLW\ RI 3HQQV\OYDQLD FRQFOXGHG WKDW JHQHUDWLQJ QHZ WHFKQRORJLHV ORFDOO\ GRHV QRW VHHP DV LPSRUWDQW DV KDYLQJ WKH FDSDFLW\ WR DGRSW WKHP LL +RZ ZHOO EXVLQHVVHV RSHUDWH LV FULWLFDO WR D ORFDO HFRQRP\¶V DELOLW\ WR DEVRUE DQG EHQHÀW IURP LQQRYDWLRQ +LJKHU HGXFDWLRQ LQVWLWXWLRQV FDQ KHOS EXLOG WKH ´WDNH XSµ FDSDFLW\ RI ÀUPV ³ WKDW LV KHOS WKHP LQFRUSRUDWH QHZ NQRZOHGJH LQ WKHLU RSHUDWLRQV SURGXFWV DQG VHUYLFHV ³ ZLWK ZRUNIRUFH GHYHORSPHQW EXVLQHVV DVVLVWDQFH DQG RWKHU IRUPV RI FRQVXOWDWLRQ 8QLYHUVLW\ V\VWHPV DURXQG WKH FRXQWU\ KHOS ORFDO ÀUPV ZLWK

-HIIHUVRQ &RPPXQLW\ &ROOHJH KDV DGGHG GHJUHH SURJUDPV DQG GHYHORSHG WDUJHWHG RXWUHDFK DQG WUDLQLQJ IRU MREV LQ KLJK GHPDQG LQFOXGLQJ SKOHERWRP\ SKDUPDF\ DQG PHGLFDO WHFK QXUVLQJ DQG UHVSLUDWRU\ WKHUDS\

0RKDZN 9DOOH\ &RPPXQLW\ &ROOHJH¶V $LUIUDPH DQG 3RZHUSODQW FHUWL¿FDWH SURJUDP KHOSV ¿OO WKH ZRUNIRUFH QHHGV RI XSVWDWH 1HZ <RUN¶V DLUSODQH UHSDLU DQG PDLQWHQDQFH LQGXVWU\ 3URYLGLQJ D ULJRURXV FRPELQDWLRQ RI FODVVURRP WUDLQLQJ DQG KDQGV RQ H[SHULHQFH DW *ULI¿VV ,QWHUQDWLRQDO $LUSRUW WKH SURJUDP ERDVWV D SHUFHQW SODFHPHQW UDWH

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH

681< $FWLYLWLHV LQ WKH &RPPXQLW\ RI FDPSXVHV E\ W\SH RIIHULQJ

&DPSXV KDV

8QLYHUVLW\ &HQWHUV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

SURJUDPV WR SODFH VWXGHQWV LQ LQWHUQVKLSV ZLWK EXVLQHVVHV LQ WKH UHJLRQ

$// &$0386(6

SURJUDPV RU SROLFLHV WKDW HQFRXUDJH IDFXOW\ VWDII RU VWXGHQWV WR SURYLGH WHFKQLFDO DVVLVWDQFH WR EXVLQHVVHV RU FRPPXQLW\

SROLFLHV SURJUDPV WDUJHWLQJ SXUFKDVHV RU KLULQJ WR WKH UHJLRQ

HYHU\WKLQJ IURP EXVLQHVV SODQV WR SHUVRQQHO SROLF\ WR NHHSLQJ WKH ERRNV %XVLQHVV DVVLVWDQFH SURJUDPV PD\ LQFOXGH PDUNHW UHVHDUFK ÀQDQFLQJ OLFHQVLQJ LQYHQWLRQV DQG QHWZRUNLQJ DQG YDU\ ZLWK WKH QDWXUH RI WKH EXVLQHVV EHLQJ KHOSHG ,QGXVWULDO H[WHQVLRQ SURJUDPV SURYLGH FRQVXOWLQJ WR H[LVWLQJ RIWHQ ORQJ HVWDEOLVKHG ORFDO ÀUPV ZLWK VHUYLFHV WKDW LQFOXGH EXVLQHVV FRQVXOWLQJ IRU FRPSHWLWLYHQHVV TXDOLW\ OHDQ PDQXIDFWXULQJ HQYLURQPHQWDO FRPSOLDQFH DQG HQHUJ\ HIÀFLHQF\

3URJUDPV DQG DFWLYLWLHV RIIHULQJ GLUHFW DVVLVWDQFH WR EXVLQHVVHV DUH ZLGHVSUHDG DPRQJ LQVWLWXWLRQV RI 681< 3DUWLFXODU DWWHQWLRQ LV SDLG WR VPDOO EXVLQHVV DVVLVWDQFH SURJUDPV VXFK DV WKH QHWZRUN RI 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHUV RSHUDWHG E\ 681< FDPSXVHV DFURVV 1HZ <RUN 7KLUW\ VL[ 681< FDPSXVHV UHSRUW WKH\ KDYH DQ RIÀFH VSHFLÀFDOO\ GHYRWHG WR DVVLVWLQJ VPDOO EXVLQHVVHV $OO WHFKQRORJ\ FROOHJHV DOPRVW DOO FRPPXQLW\ FROOHJHV DQG WKUHH TXDUWHUV RI WKH XQLYHUVLW\ FHQWHUV UHSRUW WKH\ KDYH FRXUVH RIIHULQJV WDLORUHG WR WKH QHHGV RI SDUWLFXODU HPSOR\HUV $QG 681< FDPSXVHV UHSRUW WKH\ ZRUN ZLWK FOXVWHUV RI OLNH ÀUPV LQ WKH UHJLRQ RQ ZRUNIRUFH GHYHORSPHQW DQG SODQQLQJ LQFOXGLQJ QLQH RXW RI HYHU\ FRPPXQLW\ FROOHJHV DQG WHFKQRORJ\ FROOHJHV DQG WKUHH TXDUWHUV RI XQLYHUVLW\ FHQWHUV 2WKHU VXSSRUW RIIHUHG E\ 681< FDPSXVHV WR FOXVWHUV RI ÀUPV LQFOXGHV ZRUN RQ MRLQW PDUNHWLQJ RIIHUHG E\ VL[ RI WKH XQLYHUVLW\ FROOHJHV DQG IRXU RI HLJKW WHFKQRORJ\ FROOHJHV DQG RQ VKDUHG UHVHDUFK DQG GHYHORSPHQW RIIHUHG E\ ÀYH RI WKH HLJKW 681< XQLYHUVLW\ FHQWHUV DQG IRXU RI HLJKW WHFKQRORJ\ FROOHJHV

)RVWHULQJ FRPPXQLW\ YLWDOLW\ +LJKHU HGXFDWLRQ LQVWLWXWLRQV DOVR FRQWULEXWH LQGLUHFWO\ WR WKH HFRQRPLF KHDOWK RI WKHLU UHJLRQ E\ IRVWHULQJ WKH YLWDOLW\ RI WKHLU VXUURXQGLQJ FRPPXQLW\ 8QLYHUVLWLHV SURYLGH FXOWXUDO HQULFKPHQW DQG UHFUHDWLRQDO UHVRXUFHV

%XVLQHVV $VVLVWDQFH

681< 0RUULVYLOOH¶V 1HOVRQ )DUPV LV D EXVLQHVV LQFXEDWRU IRRG SURGXFW SURFHVVLQJ IDFLOLW\ DQG KDQGV RQ DFDGHPLF FODVVURRP WKDW KDV KHOSHG QHDUO\ EXVLQHVVHV DQG KDV EHHQ LQYROYHG LQ EULQJLQJ PRUH WKDQ SURGXFWV WR PDUNHW

1DVVDX &RPPXQLW\ &ROOHJH SURYLGHV D UDQJH RI ÀH[LEOH WUDLQLQJ SURJUDPV IRU ORFDO HPSOR\HUV LQFOXGLQJ *(,&2 LQVXUDQFH IHDWXULQJ RQ VLWH DQG RQOLQH FRXUVHV LQ EXVLQHVV ODZ DFFRXQWLQJ PDUNHWLQJ DQG RWKHU WRSLFV UHTXLUHG IRU VXSHUYLVRU\ RU PDQDJHPHQW SRVLWLRQV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

([SRUW 8QLYHUVLW\ D MRLQW HIIRUW RI 681< 2OG :HVWEXU\¶V 6FKRRO RI %XVLQHVV DQG WKH 8 6 /RQJ ,VODQG ([SRUW $VVLVWDQFH &HQWHU SURYLGHV H[SHUW DGYLFH DQG WUDLQLQJ ZRUNVKRSV WR KHOS EXVLQHVVHV H[SDQG H[SRUW WUDGH


VHUYLQJ DV D KXE IRU FRPPXQLW\ DQG UHJLRQDO LGHQWLW\ EXLOGLQJ +LJKHU HGXFDWLRQ LQVWLWXWLRQV DOVR HQJDJH IDFXOW\ DQG VWXGHQWV LQ DSSOLHG UHVHDUFK FRPPXQLW\ FRQVXOWDWLRQ DQG GLUHFW VHUYLFH DFWLYLWLHV DVVLVWLQJ ORFDO EXVLQHVVHV QRQSURÀW RUJDQL]DWLRQV ORFDO JRYHUQPHQWV DQG RWKHUV LQ ORFDO SUREOHP VROYLQJ SDUWLFXODUO\ ZLWK UHVSHFW WR XUEDQ DQG UHJLRQDO SODQQLQJ SXEOLF DQG HQYLURQPHQWDO KHDOWK DQG QHHGV DVVHVVPHQW )DFXOW\ PHPEHUV ÀQG WKDW WKH RXWUHDFK SURJUDPV HQDEOH WKHP WR VXSSOHPHQW WKHLU UHVHDUFK ZLWK ÀHOG ZRUN DQG SURYLGH LQWHUQVKLSV IRU WKHLU VWXGHQWV $ VWURQJ PDMRULW\ RI 681< FDPSXVHV UHSRUW WKDW WKH\ KDYH SURJUDPV WR SODFH VWXGHQWV LQ LQWHUQVKLSV ZLWK EXVLQHVVHV LQ WKH UHJLRQ LQFOXGLQJ RI XQLYHUVLW\ FROOHJHV VHYHQ RI HLJKW WHFKQRORJ\ FROOHJHV RI FRPPXQLW\ FROOHJHV DQG À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

&RPPXQLW\ 9LWDOLW\

681< 3RWVGDP KDV SDUWQHUHG ZLWK ORFDO EXVLQHVVHV WR DFFHSW WKH ³%HDU ([SUHVV´ 681< &DUG SURYLGLQJ DSSUR[LPDWHO\ LQ VXSSRUW RI WKH ORFDO HFRQRP\ $QG WKH FDPSXV KHOSHG WR VWDUW DQ LQLWLDWLYH WR SXUFKDVH ORFDOO\ JURZQ IRRGV ZKLFK KDV H[SDQGHG WR LQFOXGH WKH ORFDO KRVSLWDO DQG WKH FRXQW\¶V WKUHH RWKHU XQLYHUVLWLHV $OIUHG 6WDWH VWXGHQWV KDYH EXLOW DQG VROG DERXW ZRUWK RI KRPHV DQG UHLQYHVWHG WKH SURFHHGV ORFDOO\ LQ HDFK RI WKH SDVW ¿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¶V &HQWHU IRU (FRQRPLF &RPPXQLW\ 'HYHORSPHQW LV DQ DQDO\VLV DQG SUREOHP VROYLQJ UHVRXUFH IRU WKH UHJLRQ DGGUHVVLQJ WRSLFV VXFK DV WKH LPSDFWV RI FLW\ WRZQ FRQVROLGDWLRQ FKLOG FDUH DQG PXQLFLSDO ZDWHU TXDOLW\ 7KH &HQWHU¶V /HDGHUVKLS 2WVHJR SURJUDP WUDLQV HPSOR\HUV DQG QRQSUR¿W ERDUG PHPEHUV LQ OHDGHUVKLS WKHRULHV DQG VNLOOV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

$7 :25. :

:KDW DUH 681<·V HFRQRPLF GHYHORSPHQW HIIRUWV OLNH LQ SUDFWLFH" $ FORVHU ORRN DW VRPH RI WKH VSHFLÀFV S RIIHUV LPSRUWDQW LQVLJKWV 7KH IROORZLQJ SDJHV RII SUHVHQW VL[ H[DPSOHV RI KRZ 681< LV ´DW ZRUNµ DV SUH DQ HFRQRPLF FDWDO\VW IRU 1HZ <RUN 6WDWH DQ

7 7KH %URDG (FRQRPLF 5HDFK RI WKH 8QLYHUVLW\ DW %XIIDOR 8 :KHQ 1RUPD 1RZDN·V KXVEDQG GLHG DW KHU JULHI ZDV FRPSRXQGHG E\ D VSHFLDO IDFWRU $V D JHQHWLFV UHVHDUFKHU LQ %XIIDOR VKH ZDV RQ WKH IURQW OLQHV RI WKH ÀJKW DJDLQVW FDQFHU 6KH NQHZ WKDW SHUFHQW RI WKH YLFWLPV RI KHU KXVEDQG·V FDQFHU +RGJNLQ·V O\PSKRPD UHVSRQGHG WR WUHDWPHQW &RXOG WKHUH EH D JHQHWLF IDFWRU LQYROYHG ZLWK WKRVH ZKR OLNH KLP GLG QRW" 'ULYHQ E\ KHU ORVV DQG VWUHQJWKHQHG E\ WKH JURZLQJ H[SHUWLVH VKH GHYHORSHG DV D NH\ SOD\HU LQ WKH QDWLRQDO HIIRUW WR GHFRGH WKH KXPDQ JHQRPH 1RZDN IRFXVHG KHU ODE ZRUN RQ ÀQGLQJ JHQHWLF ´PDUNHUVµ WKDW PLJKW KHOS H[SODLQ WKH YXOQHUDELOLWLHV RI LQGLYLGXDO SDWLHQWV 6KH GHYHORSHG QHZ WHFKQLTXHV IRU FRPSDULQJ WKH '1$ RI D KHDOWK\ SHUVRQ ZLWK WKDW RI D SHUVRQ VXIIHULQJ D GLVHDVH WKDW PLJKW KDYH D JHQHWLF FRPSRQHQW ZKHWKHU LQKHULWHG RU FDXVHG E\ VXFK IDFWRUV DV GLHW RU H[SRVXUH WR FDUFLQRJHQV

1RUPD 1RZDN GLUHFWRU RI VFLHQFH DQG WHFKQRORJ\ 1<6 &HQWHU RI ([FHOOHQFH LQ %LRLQIRUPDWLFV /LIH 6FLHQFHV

$QG WKHQ WR PDNH FXVWRPL]DEOH YHUVLRQV RI WKRVH WHFKQLTXHV DYDLODEOH WR SK\VLFLDQV DQG RWKHU UHVHDUFKHUV VKH IRXQGHG KHU RZQ VPDOO VWDUW XS FRPSDQ\ (PSLUH *HQRPLFV EDVHG DW WKH 8QLYHUVLW\ DW %XIIDOR·V 1HZ <RUN 6WDWH &HQWHU RI ([FHOOHQFH LQ %LRLQIRUPDWLFV DQG /LIH 6FLHQFHV ´:KDW , GR LQ WKH ODE LV LPSRUWDQW µ 1RZDN VD\V ´%XW LW ZDVQ·W WRXFKLQJ DQ\ERG\ ,·P QRW JRLQJ WR EH D VXFFHVV DV D VFLHQWLVW XQOHVV , FDQ JHW ZKDW , GR RXW WR SHRSOH 7KLV FRPSDQ\ LV KRZ , FDQ PDNH LW WRXFK SHRSOH µ

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

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


RUJDQL]DWLRQV WR FUHDWH D KXE RI OLIH VFLHQFHV H[SHUWLVH GULYH VFLHQWLÀF LQQRYDWLRQ DQG HQKDQFH HFRQRPLF GHYHORSPHQW ,W ZDV HVWDEOLVKHG DW 8% LQ SDUW EHFDXVH RI WKH UHJLRQ·V DOUHDG\ ZHOO HVWDEOLVKHG UROH DV D FHQWHU IRU PHGLFDO UHVHDUFK ³ DQG LQ SDUW EHFDXVH RI WKH XQLYHUVLW\·V DGYDQFHG VXSHUFRPSXWLQJ FDSDFLW\ ´ELRLQIRUPDWLFVµ LV GHÀQHG DV WKH DSSOLFDWLRQ RI VWDWLVWLFV DQG FRPSXWHU VFLHQFH WR WKH ÀHOG RI PROHFXODU ELRORJ\ /HYHUDJLQJ WKDW UHVHDUFK EDFNJURXQG DQG 8%·V GDWD SURFHVVLQJ SRZHU LWV VFLHQWLVWV ZRUN LQ IRXU NH\ DUHDV RI UHVHDUFK ³ FDQFHU ELRORJ\ SDWKRJHQV DQG ELRGHIHQVH QHXURGHJHQHUDWLYH GLVHDVH DQG FDUGLRYDVFXODU GLVHDVH ,WV SXUSRVH XOWLPDWHO\ LV WR VWXG\ WKH SURFHVVHV LQYROYHG LQ KXPDQ GLVHDVH LQ RUGHU WR GHYHORS GLDJQRVWLF WRROV WKHUDSLHV SUHYHQWDWLYH WUHDWPHQWV DQG RWKHU GLVHDVH PDQDJHPHQW GHYLFHV ³ DQG WKHQ WR SDUOD\ WKDW H[SHUWLVH LQWR WKH GHYHORSPHQW RI QHZ DQG JURZLQJ ELRVFLHQFH FRPSDQLHV LQ :HVWHUQ 1HZ <RUN :RUNLQJ ZLWK D FRPPHUFLDOL]DWLRQ SDUWQHUVKLS QHWZRUN RI SULYDWH VHFWRU DQG SKLODQWKURSLF RUJDQL]DWLRQV LW RIIHUV UHVHDUFK H[SHUWLVH ODERUDWRU\ DQG FRPSXWLQJ IDFLOLWLHV DQG GLUHFW DVVLVWDQFH ZLWK FRPPHUFLDOL]DWLRQ $OVR ZLWKLQ WKH &HQWHU RI ([FHOOHQFH LV WKH &HQWHU IRU $GYDQFHG %LRPHGLFDO DQG %LRHQJLQHHULQJ 7HFKQRORJ\ /LNH DOO ´&$7Vµ &HQWHUV IRU $GYDQFHG 7HFKQRORJ\ DIÀ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ÀVFDO \HDU 8%·V &$7 GLVWULEXWHG PRUH WKDQ WR KHOS FRPSDQLHV LQ :HVWHUQ 1HZ <RUN GHYHORS SURPLVLQJ OLIH VFLHQFHV WHFKQRORJLHV LQFOXGLQJ D WKHUDS\ IRU PXVFXODU G\VWURSK\ ZRUN RQ FRPSXWHUL]HG VSHHFK JHQHUDWLRQ DQG D GHYLFH WKDW KHOSV SDWLHQWV ZLWK FKURQLF REVWUXFWLYH SXOPRQDU\ GLVHDVH GLVORGJH PXFXV (DFK FRPSDQ\ PDWFKHV WKH JUDQW IURP LWV RZQ IXQGV

$ ZLGH UDQJH RI VHUYLFHV 7KH &HQWHU RI ([FHOOHQFH LQ WXUQ LV MXVW RQH RI PRUH WKDQ D GR]HQ IDFLOLWLHV DQG LQLWLDWLYHV DW WKH 8QLYHUVLW\ DW %XIIDOR WKDW DUH DLPHG DW VSXUULQJ LQQRYDWLRQ DQG HFRQRPLF GHYHORSPHQW LQ 1HZ <RUN 6WDWH ³ HYHU\WKLQJ IURP KLJK WHFK LQFXEDWRUV DQG ODEV WR FRQVXOWLQJ VHUYLFHV IRU ORFDO PDQXIDFWXUHUV WR D GRZQWRZQ SURJUDP WKDW WUDLQV VPDOO EXVLQHVV RZQHUV %XLOGLQJ RQ WKH VWUHQJWKV RI LWV 6FKRRO RI (QJLQHHULQJ DQG $SSOLHG 6FLHQFHV LWV 6FKRRO RI 0DQDJHPHQW LWV 6FKRRO RI 0HGLFLQH DQG %LRPHGLFDO 6FLHQFHV DQG LWV UHVHDUFK ODEV 8% KDV D UDQJH DQG EUHDGWK RI HFRQRPLF GHYHORSPHQW HIIRUWV HYRFDWLYH RI WKRVH XQGHUWDNHQ E\ WKH UHQRZQHG ´ODQG JUDQWµ XQLYHUVLWLHV RI WKH 0LGZHVW VXFK DV ,RZD 6WDWH RU WKH 8QLYHUVLW\ RI :LVFRQVLQ

0DUVKD +HQGHUVRQ 8%¶V YLFH SUHVLGHQW IRU H[WHUQDO DIIDLUV SUHVHQWLQJ 8% WR D EXVLQHVV DXGLHQFH LQ -DPHVWRZQ

8%·V RIIHULQJV DUH VR H[WHQVLYH LQ IDFW WKDW LWV ODWHVW LQQRYDWLRQ LV WKH FUHDWLRQ RI D QHZ FOHDULQJKRXVH WR KHOS HQWUHSUHQHXUV FRUSRUDWLRQV DQG HFRQRPLF GHYHORSHUV ÀJXUH RXW KRZ WR DFFHVV DOO WKHVH RIIHULQJV 7KLV QHZ 2IÀFH RI (FRQRPLF (QJDJHPHQW LV RYHUVHHQ E\ 0DUVKD +HQGHUVRQ 8%·V YLFH SUHVLGHQW IRU H[WHUQDO DIIDLUV ZKR KDV GHHS FRQQHFWLRQV LQ WKH :HVWHUQ 1HZ <RUN EXVLQHVV FRPPXQLW\ IURP KHU \HDUV DV D .H\ %DQN H[HFXWLYH ´$OPRVW DV VRRQ DV , DUULYHG DW WKH XQLYHUVLW\ µ VKH UHFRXQWV ´SHRSOH , NQHZ LQ EXVLQHVV VDLG WR PH ¶8% SUREDEO\ KDV ZKDW , QHHG %XW KRZ GR , JHW LQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

WKHUH"·µ 7KH XQLYHUVLW\·V YDULRXV SURJUDPV UHSRUW WR GLIIHUHQW VFKRROV GHSDUWPHQWV RU XQLWV ZLWK ZKLFK WKH\ KDYH WKH FORVHVW ZRUNLQJ UHODWLRQVKLS ³ WKH ULJKW ÀW IRU HDFK EXW PDNLQJ 8% KDUG IRU EXVLQHVVHV WR QDYLJDWH ´6ROYLQJ WKH FRQQHFWRU SLHFH LV WR PH WKH PRVW GLIÀFXOW EULGJH µ VD\V +HQGHUVRQ 5DWKHU WKDQ SXWWLQJ DOO LWV HFRQRPLF GHYHORSPHQW HIIRUWV LQWR D VLQJOH VWUXFWXUH DQG WKHUHE\ ULVNLQJ D EUHDN LQ WKH LQWHUQDO FRQQHFWLRQV WKDW PDGH WKH SURJUDPV ZRUN 8% VLPSO\ SXOOHG VRPH H[LVWLQJ VWDII LQWR DQ 2IÀFH RI (FRQRPLF (QJDJHPHQW D JDWHZD\ WR EULGJH WKH JDS ´,W·V D SHUPHDEOH PHPEUDQH EHWZHHQ WKH XQLYHUVLW\ DQG WKH FRPPXQLW\ µ VD\V $O &XOOLWRQ FKLHI RSHUDWLQJ RIÀFHU RI WKH (ULH &RXQW\ ,QGXVWULDO 'HYHORSPHQW $JHQF\ 7KH XQLYHUVLW\ GHYHORSHG D VSHFLDO ZHEVLWH KWWS ZZZ EXIIDOR HGX EXVLQHVVHQJDJHPHQW WKDW LV RUJDQL]HG QRW DURXQG WKH XQLYHUVLW\·V YDULRXV SURJUDPV DQG RIÀFHV EXW DURXQG WKH NLQGV RI QHHGV WKDW LQGLYLGXDO EXVLQHVVHV PLJKW EULQJ WR WKH GRRU ³ ´/HYHUDJH 8% ([SHUWLVH µ ´5HFUXLW (PSOR\HHV DQG ,QWHUQVµ RU ´5HQW 8% )DFLOLWLHV DQG (TXLSPHQW µ &OLFN RQ ZKDW \RX QHHG DQG WKH VLWH OHDGV \RX WR LQIRUPDWLRQ RQ WKH RIÀFH RU SURJUDP WKDW PLJKW ÀW 8% RIÀFLDOV DOVR WDNH WKH VKRZ RQ WKH URDG PHHWLQJ ZLWK EXVLQHVV JURXSV DURXQG :HVWHUQ 1HZ <RUN 2Q 0DUFK IRU H[DPSOH +HQGHUVRQ DQG D FUHZ RI RWKHU 8% SHUVRQQHO VSRNH WR JDWKHULQJV RI LQWHUHVWHG EXVLQHVV SHRSOH LQ -DPHVWRZQ DQG 'XQNLUN KRVWHG E\ WKH &RXQW\ RI &KDXWDXTXD ,QGXVWULDO 'HYHORSPHQW $JHQF\ ´:H DUH RXW WR PDNH LW HDVLHU IRU \RX WR DFFHVV WKH WUHPHQGRXV KLJKHU HG UHVRXUFHV LQ WKLV UHJLRQ µ VKH WROG WKH EXVLQHVV SHRSOH ZKR FDPH RXW LQ -DPHVWRZQ 7KH 8QLYHUVLW\ DW %XIIDOR·V SURJUDPV FRYHU ERWK VLGHV RI ZKDW H[SHUWV LQ WKH ÀHOG KDYH LGHQWLÀHG DV D XQLYHUVLW\·V NH\ SRWHQWLDO RIIHULQJV IRU EXVLQHVV JURZWK ‡ 6XSSRUWLQJ WKH JURZWK RI QHZ VWDUW XS FRPSDQLHV RIWHQ GHULYHG IURP IDFXOW\ UHVHDUFK ‡ +HOSLQJ H[LVWLQJ ORFDO ÀUPV SURVSHU DQG LQQRYDWH E\ SURYLGLQJ D VNLOOHG ZRUNIRUFH DV ZHOO DV DFFHVV WR IDFXOW\ UHVHDUFK DQG H[SHUWLVH ODEV DQG RWKHU IDFLOLWLHV ,Q ERWK UHVSHFWV WKH XQLYHUVLW\ EXLOGV RQ LWV VWUHQJWKV LQ HQJLQHHULQJ PDQDJHPHQW DQG ELRVFLHQFH %DLUG 5HVHDUFK 3DUN

,QFXEDWLQJ DQG JURZLQJ QHZ FRPSDQLHV 2QH NH\ RIIHULQJ IRU WKH GHYHORSPHQW RI QHZ FRPSDQLHV LV 8%·V 7HFKQRORJ\ ,QFXEDWRU ORFDWHG LQ %DLUG 5HVHDUFK 3DUN DGMDFHQW WR WKH PDLQ FDPSXV LQ %XIIDOR·V QRUWKHUQ VXEXUE RI $PKHUVW ,W SURYLGHV RIÀFH DQG ODE VSDFH DGPLQLVWUDWLYH VXSSRUW DQG JHQHUDO EXVLQHVV DVVLVWDQFH WR DERXW D GR]HQ VPDOO

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


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·V &OLQLFDO DQG 7UDQVODWLRQDO 5HVHDUFK &HQWHU DQG WKH FDUGLDF VWURNH DQG YDVFXODU VHUYLFHV RI .DOHLGD +HDOWK 5REHUW - *HQFR D YLFH SURYRVW ZKR RYHUVHHV WKH LQFXEDWRU DV ZHOO DV WKH UHVW RI 8%·V WHFK WUDQVIHU DFWLYLWLHV WKURXJK LWV 2IÀFH RI 6FLHQFH 7HFKQRORJ\ 7UDQVIHU DQG (FRQRPLF 2XWUHDFK 6725 VD\V WKH XQLYHUVLW\ DOVR ZDQWV WR EXLOG QHZ IDFLOLWLHV DW WKH %DLUG 5HVHDUFK 3DUN IRU ÀUPV WKDW DUH UHDG\ WR ´JUDGXDWHµ IURP WKHLU VPDOO VSDFHV LQ WKH LQFXEDWRU ´:H HPSKDVL]H VWDUW XSV LQ WKH LQFXEDWRU µ *HQFR VD\V ´%XW 8% KDV D ORW RI WHFKQRORJ\ DQG H[SHUWLVH WKDW ÀUPV ZDQW WR EH DEOH WR DFFHVV DV WKH\ JURZ µ 2Q WKH RWKHU KDQG VWDUW XS ÀUPV QHHG QRW EH ORFDWHG LQ WKH LQFXEDWRU WR UHFHLYH DVVLVWDQFH IURP 8% *HQFR QRWHV WKDW WKH XQLYHUVLW\ DOVR RSHUDWHV D 'LUHFWHG (QHUJ\ 3URJUDP VXSSRUWHG E\ WKH 1HZ <RUN 6WDWH (QHUJ\ 5HVHDUFK DQG 'HYHORSPHQW $XWKRULW\ IRU ORFDO FOHDQ HQHUJ\ ÀUPV KHOSLQJ WKHP DFFHVV UHVHDUFK DQG IDFXOW\ DV ZHOO DV RWKHU VHUYLFHV

´ 8% KDV D ORW RI WHFKQRORJ\ DQG H[SHUWLVH WKDW ÀUPV ZDQW WR EH DEOH WR DFFHVV DV WKH\ JURZ µ

)RXQGHG DW DERXW WKH VDPH WLPH WKH LQFXEDWRU RSHQHG WKH ´DQFKRU WHQDQWµ LQ WKH UHVHDUFK SDUN LV 21< ,QF ZKLFK SURGXFHV D NH\ WKHUDS\ ² 5REHUW - *HQFR IRU SUHPDWXUH EDELHV 7KH SURGXFW YLFH SURYRVW 6725 ZDV GHYHORSHG E\ (GPXQG $ (JDQ 0 ' D SURIHVVRU RI SHGLDWULFV DQG SK\VLRORJ\ DW 8% ZKR VHUYHV DV WKH FRPSDQ\·V &(2 DQG FKLHI PHGLFDO RIÀFHU DQG WKH ODWH %UXFH +ROP D SURIHVVRU LQ WKH 8% 6FKRRO RI 0HGLFLQH DQG ODWHU H[HFXWLYH GLUHFWRU RI WKH &HQWHU RI ([FHOOHQFH LQ %LRLQIRUPDWLFV DQG /LIH 6FLHQFHV ,Q WKHLU ODEV WKH WZR KDG FUDIWHG D OXQJ VXUIDFWDQW SUHSDUDWLRQ WKH\ IHOW KDG SURPLVLQJ ELRSK\VLFDO ELRORJLF DQG FOLQLFDO HIIHFWV DQG WKH\ FR IRXQGHG WKH FRPSDQ\ WR FRPPHUFLDOL]H LW DV ,QIDVXUI ,W LV XVHG IRU WKH SUHYHQWLRQ RI UHVSLUDWRU\ GLVWUHVV V\QGURPH 5'6 LQ SUHPDWXUH LQIDQWV DQG IRU WKH WUHDWPHQW RI EDELHV ZKR GHYHORS 5'6 ´5HVSLUDWRU\ LVVXHV DUH D KXJH VKDUH RI WKH SUREOHPV WKDW SUHPDWXUH LQIDQWV KDYH µ (JDQ VD\V ´7KHUH ZDV D UHDO QHHG %XW FRPPHUFLDOL]DWLRQ LV KDUG 6WDUW XSV DUH XVXDOO\ FDVK VWDUYHG 7KH\ QHHG KHOS µ $QRWKHU SURPLVLQJ VWDUWXS LV .LQH[ 3KDUPDFHXWLFDOV ZKLFK KDV HQWHUHG 3KDVH ,, FOLQLFDO WULDOV IRU D FRPSRXQG LQWHQGHG WR WUHDW SURVWDWH FDQFHU /RFDWHG DW WKH &HQWHU RI ([FHOOHQFH WKH FRPSDQ\ HPSOR\V SHRSOH GHYHORSLQJ D SRUWIROLR RI FRPSRXQGV EDVHG RQ D QHZ PHWKRG IRU GHVLJQLQJ DQG V\QWKHVL]LQJ DQWL FDQFHU GUXJV EXLOGLQJ IURP UHVHDUFK E\ 'DYLG +DQJDXHU 3K ' D 8% DVVRFLDWH SURIHVVRU RI PHGLFLQDO FKHPLVWU\

$7 $ :25. : 2

)URP ODE WR WKH WR WK KH PDUNHW ,Q DGGLWLRQ WR 21< DQG .LQH[ 8%¶V FRPPHUFLDOL]DWLRQ UHFRUG LQFOXGHV ,QWHJXPHQW 7HFKQRORJLHV ,QF D PDQXIDFWXUHU RI ÀXRURSRO\PHU FRDWLQJV 6PDUW3LOO &RUS PDNHUV RI DQ LQJHVWLEOH FDSVXOH WKDW SURYLGHV GLDJQRVWLF LQIRUPDWLRQ IURP WKH *, WUDFW 0HGLFDO &RQVHUYDWLRQ 'HYLFHV GHYHORSLQJ D GLVSRVDEOH PHGLFDO GHYLFH WKDW PDNHV GHOLYHU\ RI LQKDOHG DQHVWKHWLFV SUDFWLFDO IRU WKH ¿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

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

6WUHQJWKHQLQJ WKH FRPSHWLWLYHQHVV RI :HVWHUQ 1HZ <RUN ÀUPV

´7KH\·YH EHHQ VR LQVWUXPHQWDO LQ KHOSLQJ XV FKDQJH RXU FXOWXUH KHUH DQG RXU RUJDQL]DWLRQ µ ² .HQ 6Q\GHU SUHVLGHQW RI +HEHOHU &RUS

*LYHQ :HVWHUQ 1HZ <RUN·V PDWXUH PDQXIDFWXULQJ HFRQRP\ DQG WKH FRPSHWLWLYHQHVV FKDOOHQJHV IDFLQJ ORFDO FRPSDQLHV 8% SXWV DW OHDVW DV PXFK HPSKDVLV RQ KHOSLQJ H[LVWLQJ ÀUPV DV LW GRHV RQ DVVLVWLQJ VWDUW XSV 6RPH FRPSDQLHV KDYH EHHQ DVVLVWHG ZLWK WHFKQRORJ\ WUDQVIHU DQG RWKHU XQLYHUVLW\ KHOS D UHSRUW E\ WKH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH IRXQG LLL &RQVLGHU IRU H[DPSOH WKH &HQWHU IRU ,QGXVWULDO (IIHFWLYHQHVV 7&,( ZKLFK ZRUNV WR GHOLYHU ERWK PDQDJHPHQW DQG VFLHQWLÀF H[SHUWLVH WR HPSOR\HUV RI DOO NLQGV ³ PDQXIDFWXULQJ FRPSDQLHV EDQNV KHDOWK FDUH ORFDO JRYHUQPHQWV QRQSURÀWV DQG RWKHUV ³ DV WKH\ VHHN WR LPSURYH SURFHVVHV DQG SURGXFWLYLW\ 7KH FHQWHU SURYLGHV DFFHVV WR ODERUDWRULHV DQG HTXLSPHQW SURGXFW GHVLJQ DQG WHVWLQJ VHUYLFHV DQG ZRUNIRUFH WUDLQLQJ $V WKH %XIIDOR DUP RI 1HZ <RUN·V VWDWHZLGH 6WUDWHJLF 3DUWQHUVKLS IRU ,QGXVWULDO 5HVXUJHQFH 63,5 WKH FHQWHU DGPLQLVWHUV DQ DQQXDO SURJUDP RI JUDQWV WKDW VXSSO\ DV PXFK DV WR VPDOO DQG PHGLXP VL]HG FRPSDQLHV WR KHOS WKHP XSJUDGH SURGXFWV DQG SURFHVVHV %XW ÀUPV WKHPVHOYHV SD\ IRU QXPHURXV VHUYLFHV IURP 7&,( VXFK DV LWV WUDLQLQJ LQ ´/HDQ 6L[ 6LJPD µ D PDQDJHPHQW PHWKRGRORJ\ WKDW DWWDFNV ZDVWH DQG GHIHFWV WKURXJK D GLVFLSOLQHG DSSURDFK WR SUREOHP VROYLQJ +HEHOHU &RUS D PHWDO IDEULFDWRU LQ 7RQDZDQGD FUHGLWV 7&,( ZLWK KHOSLQJ LW NHHS DQG JURZ LWV EXVLQHVV ZLWK RQH RI LWV PDMRU FXVWRPHUV *( ,Q .HQ 6Q\GHU QRZ WKH SUHVLGHQW RI +HEHOHU YLVLWHG *( (QHUJ\ LQ 6FKHQHFWDG\ DQG IRXQG WKDW KLV ÀUP ZDV OLVWHG LQ D VLJQ RQ WKH ZDOO DV RQH RI SRRUO\ SHUIRUPLQJ YHQGRUV ´:KHQ \RX ZHUH RQ WKDW OLVW \RX ZHUH WDUJHWHG WR EH UHPRYHG µ KH WROG 7KH %XIIDOR 1HZV %XW WKH FRPSDQ\ ZRUNHG ZLWK 7&,( FRQVXOWDQWV DQG 8% VWXGHQW LQWHUQV WR XSJUDGH LWV SURFHVVHV DORQJ 6L[ 6LJPD OLQHV ´7KH\·YH EHHQ VR LQVWUXPHQWDO LQ KHOSLQJ XV FKDQJH RXU FXOWXUH KHUH DQG RXU RUJDQL]DWLRQ µ VDLG 6Q\GHU +HEHOHU KDV TXDGUXSOHG LWV VDOHV VLQFH WKDW WULS LQ WR PLOOLRQ DQG QRZ HPSOR\V DERXW ZRUNHUV LQ 7RQDZDQGD LY /XYDWD D FHQWXU\ ROG %XIIDOR PDQXIDFWXUHU RI FRLOHG ZLUH UHSRUWV WKDW WHFKQLTXHV LW GHYHORSHG ZLWK WKH KHOS RI 7&,( HQDEOHG LW WR FXW WKH SHUFHQW GHIHFW UDWH LQ RQH RI LWV PRVW SURÀWDEOH SURGXFW OLQHV WR YLUWXDOO\ ]HUR VDYLQJ RYHU PLOOLRQ D \HDU ´)RU DV ORQJ DV ,·YH EHHQ DURXQG SHRSOH LQ WKH PLOO ZRXOG VD\ \RX FRXOG QHYHU VROYH WKLV SUREOHP µ VD\V 0LFKDHO 6LOYHVWUL WKH FRPSDQ\·V WHFKQLFDO GLUHFWRU %XW WKH\ GLG 7KHQ KH VD\V WKH FRPSDQ\ ´WRRN ZKDW ZH OHDUQHG DQG DSSOLHG LW WR RWKHU DOOR\V DQG ZHUH DEOH WR UHGXFH WKH VDPH GHIHFW LQ WKHP µ 7D\ORU 'HYLFHV ,QF D 1RUWK 7RQDZDQGD FRPSDQ\ WKDW PDQXIDFWXUHV VKRFN DEVRUSWLRQ UDWH FRQWURO DQG HQHUJ\ VWRUDJH GHYLFHV IRU YDULRXV NLQGV RI YHKLFOHV DQG PDFKLQHU\ ZHQW WR 7&,( IRU KHOS ZKHQ LW IRXQG WKDW LWV FXVWRPHUV ZHUH JRLQJ WR VWDUW UHTXLULQJ D FHUWLÀFDWLRQ VWDQGDUG FDOOHG ,62 ³ ZLWK ZKLFK WKH FRPSDQ\ KDG OLWWOH IDPLOLDULW\ 7KH FRPSDQ\ UHSRUWV WKDW LW FXW PDQXIDFWXULQJ FRVWV E\ DV PXFK DV SHUFHQW IRU VRPH SURGXFWV ZKLOH LPSURYLQJ TXDOLW\ 7KDW KHOSHG LW UHWDLQ DQG JURZ LWV VXSSOLHU FRQWUDFWV $QRWKHU 8% FHQWHU GUDZLQJ RQ WKH XQLYHUVLW\·V HQJLQHHULQJ H[SHUWLVH LV WKH 1HZ <RUN 6WDWH &HQWHU IRU (QJLQHHULQJ 'HVLJQ DQG ,QGXVWULDO ,QQRYDWLRQ )XQGHG LQ SDUW E\ JUDQWV IURP WKH 1HZ <RUN 6WDWH $VVHPEO\ DQG 1<67$5 LWV SULPDU\ IRFXV LV RQ WHFKQRORJ\ HQJLQHHULQJ DQG GHVLJQ DV RSSRVHG WR PDQDJHPHQW VWUDWHJ\ ,W RIIHUV DFFHVV WR HTXLSPHQW DQG ODEV LQFOXGLQJ H[WHQVLYH HTXLSPHQW IRU ' YLUWXDO PRGHOLQJ DQG SURWRW\SLQJ DV ZHOO DV FRPSXWHU DLGHG GHVLJQ WHFKQLFDO FRQVXOWLQJ DQG RWKHU IRUPV RI DVVLVWDQFH

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


%XW EXVLQHVV LVQ·W DOO DERXW KLJK WHFK DQG QHLWKHU LV 8%·V DVVLVWDQFH WR EXVLQHVV ,Q GRZQWRZQ %XIIDOR LWV 6FKRRO RI 0DQDJHPHQW RSHUDWHV D WUDLQLQJ SURJUDP IRU VPDOO WR PLG VL]HG EXVLQHVVHV :LWK D \HDU WUDFN UHFRUG RI KHOSLQJ UHJLRQDO HQWUHSUHQHXUV EXLOG WKHLU VNLOOV DQG WKHLU EXVLQHVVHV WKH &HQWHU IRU (QWUHSUHQHXULDO /HDGHUVKLS &(/ LV DEOH WR ÀOO LWV FODVVHV PRVWO\ E\ ZRUG RI PRXWK PDUNHWLQJ ,WV FOLHQWV ZLOOLQJO\ WDNH WLPH DZD\ IURP WKHLU EXVLQHVVHV HYHU\ ZHHN IRU PRQWKV ³ DQG WKHQ RIWHQ FRPH EDFN DJDLQ DQG DJDLQ WR KHOS PHQWRU RWKHU OHDUQHUV RU WR WDNH PRUH DGYDQFHG FODVVHV :LWK LWV DFFHVV WR WKH 6FKRRO RI 0DQDJHPHQW WKH &(/·V FRXUVH ZRUN FRYHUV WKH IXOO JDPXW RI VNLOOV WKDW VPDOO EXVLQHVV RZQHUV QHHG IURP KXPDQ UHVRXUFH PDQDJHPHQW WR ÀQDQFH WR VDOHV WR SXUFKDVLQJ %XW WKH SDUWLFLSDQWV DOVR WHDFK HDFK RWKHU VD\V 7RP 8OEULFK H[HFXWLYH GLUHFWRU RI WKH &(/ ´%XVLQHVV RZQHUV WDON WR EXVLQHVV RZQHUV LQ DQ DWPRVSKHUH RI FRQÀGHQWLDOLW\ ³ LW WXUQV LQWR D QHWZRUN DQG HYHU\RQH LV LQYHVWHG LQ HYHU\RQH HOVH·V VXFFHVV µ 7KH XQLYHUVLW\ VD\V WKDW WKH QHDUO\ &(/ DOXPQL HPSOR\ PRUH WKDQ :HVWHUQ 1HZ <RUNHUV 2QH VXFFHVVIXO JUDGXDWH LV /HQQ\ / -RKQVRQ ZKR VWDUWHG KLV RZQ SOXPELQJ EXVLQHVV ZLWK DQG RQH SDUWQHU ´:H GLGQ·W NQRZ EXVLQHVV µ KH VD\V ´, ZDV D SOXPEHU µ ´, WRRN WKLV GUHDP DQG , GLGQ·W MXVW GUHDP LW , OLYHG LW µ KH VD\V QRZ 7RGD\ 8 6 9HWHUDQV &RQVWUXFWLRQ 0DQDJHPHQW &RUS LV D PXOWL PLOOLRQ GROODU FRQVWUXFWLRQ PDQDJHPHQW HQWHUSULVH

´, WRRN WKLV GUHDP DQG , GLGQ·W MXVW GUHDP LW , OLYHG LWµ ² /HQQ\ / -RKQVRQ 8 6 9HWHUDQV &RQVWUXFWLRQ 0DQDJHPHQW &RUS

$QG D SODQ IRU PRUH 7KH 8QLYHUVLW\ DW %XIIDOR KDV DQ DJJUHVVLYH ORQJ UDQJH SODQ IRFXVHG RQ GRLQJ HYHQ PRUH WR VSXU GHYHORSPHQW DQG JURZWK LQ WKH UHJLRQ ,WV 8% SODQ LQFOXGHV D FRPSUHKHQVLYH SK\VLFDO PDVWHU SODQ FDSLWDO SURMHFWV DOUHDG\ XQGHU ZD\ KDYH JHQHUDWHG PRUH WKDQ PLOOLRQ LQ SXEOLF DQG SULYDWH LQYHVWPHQW IRU QHZ EXLOGLQJV DQG UHQRYDWLRQV LQFOXGLQJ D QHZ HQJLQHHULQJ EXLOGLQJ DQG UHVLGHQFH KDOO FRPSOH[ RQ WKH 1RUWK &DPSXV DQG D QHZ KRPH IRU WKH SKDUPDF\ VFKRRO RQ WKH 6RXWK &DPSXV 8%·V ORQJ UDQJH YLVLRQ LQFOXGHV D FRPSUHKHQVLYH $FDGHPLF +HDOWK &HQWHU RQ WKH GRZQWRZQ %XIIDOR 1LDJDUD 0HGLFDO &DPSXV &XUUHQW XQLYHUVLW\ FRQVWUXFWLRQ DQG UHQRYDWLRQ SURMHFWV LQFOXGH D 'RZQWRZQ *DWHZD\ FRPSOH[ DQG WKH SXEOLF SULYDWH SDUWQHUVKLS ZLWK .DOHLGD +HDOWK WR MRLQWO\ FRQVWUXFW WKH QHZ PXOWL PLOOLRQ GROODU UHVHDUFK DQG FOLQLFDO FDUH IDFLOLW\ LQ GRZQWRZQ %XIIDOR $ 8% VKXWWOH EXV WKDW UXQV EHWZHHQ WKH PDLQ FDPSXV DQG GRZQWRZQ FDUULHV WKH RYHUDOO PHVVDJH LQ D ELJ SRVWHU SODVWHUHG RQ LWV VLGH ´8% EHOLHYHV LQ %XIIDOR 1LDJDUD µ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

$7 :25. :

$O $OEDQ\ 1DQR 7KH 6WRU\ RI 2QH (QWUHSUHQHXULDO 3K\VLFV 3URIHVVRU ( Q ,Q 6 ,Q 6HSWHPEHU D VHOI FRQIHVVHG ´JHHNµ IURP /HEDQRQ QDPHG $ODLQ .DOR\HURV MRLQHG WKH 8QLYHUVLW\ DW $OEDQ\·V 3K\VLFV 'HSDUWPHQW DV DQ DVVLVWDQW .DOR SURIHVVRU $OPRVW LPPHGLDWHO\ KH VWDUWHG EXLOGLQJ KLV RZQ ODE HTXLSPHQW $QG SURI KH KDVQ·W VWRSSHG EXLOGLQJ VLQFH KH K 7ZHQW\ WKUHH \HDUV ODWHU WKH PDPPRWK $OEDQ\ 1DQR7HFK &RPSOH[ WKDW 7ZH .DOR\HURV IRXQGHG DQG OHDGV LV DFNQRZOHGJHG DV SHUKDSV WKH VLQJOH PRVW .DOR VXFFHVVIXO H[DPSOH DQ\ZKHUH RI XQLYHUVLW\ OHG HFRQRPLF GHYHORSPHQW MRE JURZWK DQG KLJK WHFK GLVFRYHU\ UROOHG LQWR RQH :KDW EHJDQ ZLWK RQH ÁHGJOLQJ SURIHVVRU DQG VRPH JUDGXDWH VWXGHQWV LQ EDVHPHQW ODE VSDFH LQ WKH 8$OEDQ\ SK\VLFV EXLOGLQJ KDV WR GDWH DWWUDFWHG VRPH ELOOLRQ LQ SULYDWH VHFWRU LQYHVWPHQW DW WKH FDPSXV ,W KDV PXVKURRPHG LQWR D VSUDZOLQJ UHVHDUFK FRPSOH[ ZLWK ÀYH JOHDPLQJ KLJK WHFK EXLOGLQJV RIIHULQJ RYHU VTXDUH IHHW RI VSDFH ³ DQG IXUWKHU H[SDQVLRQ LV XQGHU ZD\ ,W LQFOXGHV D ZKROH QHZ &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ &16( VTXDUH IHHW RI VRPH RI WKH PRVW DGYDQFHG FOHDQ URRP IDFLOLWLHV LQ WKH ZRUOG DQG VFRUHV RI FRUSRUDWH UHVHDUFK RIÀFHV VPDOO EXVLQHVVHV DQG LQFXEDWRUV %HWZHHQ WKH FROOHJH DQG LWV SDUWQHUV WKH FRPSOH[ QRZ KRVWV VRPH VFLHQWLVWV UHVHDUFKHUV HQJLQHHUV DQG WHFKQLFLDQV ³ XS IURP RQO\ MREV ZKHQ WKH ÀUVW EXLOGLQJ RSHQHG LQ ,QFOXGHG DUH SHUVRQQHO IURP ,%0 $0' 7RN\R (OHFWURQ 6(0$7(&+ DQG 7RVKLED WR QDPH D IHZ RI WKH FROOHJH·V SDUWQHUV 0RUH PRYH RQWR WKH VLWH DOPRVW HYHU\ PRQWK

3KRWR FUHGLW 0DUN 6FKPLGW 8QLYHUVLW\ DW $OEDQ\

$ODLQ .DOR\HURV VHQLRU YLFH SUHVLGHQW DQG FKLHI H[HFXWLYH RI¿FHU RI WKH 8QLYHUVLW\ DW $OEDQ\¶V &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ LQ ZLWK WKH XOWUD KLJK YDFFXXP GHYLFH KH EXLOW WR ODXQFK KLV ZRUN

&16( LV QRZ PRYLQJ VWURQJO\ LQWR DOWHUQDWLYH HQHUJ\ GHYHORSLQJ D PDMRU QHZ QDWLRQDO FHQWHU IRU VRODU SDQHO UHVHDUFK ZKLOH LW DOVR KRVWV DQ LQFXEDWRU IRU VPDOO VWDUW XSV DQG QHWZRUNV D FOXVWHU RI RWKHU RII VLWH EXVLQHVVHV LQ HPHUJLQJ JUHHQ LQGXVWULHV 7KH FROOHJH KDV VSXUUHG WKH GHYHORSPHQW RI D UHVHDUFK FHQWHU DQG FXUULFXOXP RIIHULQJV DW WKH 681< ,QVWLWXWH RI 7HFKQRORJ\ LQ 8WLFD DQG LV FROODERUDWLQJ ZLWK 681< 'RZQVWDWH 0HGLFDO &HQWHU RQ WKH ÀUVW RI LWV NLQG GXDO GHJUHH SURJUDP LQ QDQRPHGLFLQH ,W KDV VHW WKH VWDJH IRU QHZ FDUHHU EXLOGLQJ SURJUDPV DW +XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH $GLURQGDFN &RPPXQLW\ &ROOHJH 6FKHQHFWDG\ &RPPXQLW\ &ROOHJH DQG )XOWRQ 0RQWJRPHU\ &RPPXQLW\ &ROOHJH DPRQJ RWKHUV ,W KDV VSDZQHG DOOLDQFHV DQG QHZ MREV DV IDU DZD\ DV 5RFKHVWHU &DQDQGDLJXD 6\UDFXVH DQG )LVKNLOO ³ DQG DOO WKRVH QHZ KLJK WHFK MREV SURGXFH VSHQGLQJ SRZHU DQG WD[ UHYHQXHV WKDW KHOS VXSSRUW LQQXPHUDEOH RWKHU MREV LQ WKH UHJLRQDO HFRQRP\

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


7KH SURVSHFW RI PRUH JURZWK DKHDG 7KHUH LV VWLOO PRUH SRWHQWLDO RQ DQG RII WKH 8$OEDQ\ VLWH DV WKH FROOHJH FRQWLQXHV WR JURZ DQG DV WKH WHFKQRORJ\ GHYHORSHG WKHUH LV SLFNHG XS E\ RWKHU HPSOR\HUV HOVHZKHUH .DOR\HURV QRZ VHQLRU YLFH SUHVLGHQW DQG FKLHI H[HFXWLYH RIÀFHU RI &16( DQG DOVR YLFH SUHVLGHQW DQG VSHFLDO DGYLVRU WR WKH SUHVLGHQW IRU XQLYHUVLW\ ZLGH HFRQRPLF LQQRYDWLRQ DQG RXWUHDFK WKLQNV WR PRUH MREV FRXOG EH FUHDWHG E\ WKH FROOHJH LWVHOI LQ WKH QH[W IHZ \HDUV %\ WKH FROOHJH·V FDOFXODWLRQV DOUHDG\ WKHUH DUH RWKHU RII VLWH QDQRVFLHQFH MREV DURXQG 1HZ <RUN 6WDWH JURZLQJ RXW RI LWV ZRUN $QG WKH 1DQR &ROOHJH LV ZLGHO\ FRQVLGHUHG WR KDYH EHHQ WKH OLQFKSLQ RI 1HZ <RUN 6WDWH·V VXFFHVVIXO HIIRUW WR DWWUDFW D ELOOLRQ *OREDO)RXQGULHV FKLS IDE SODQW ZLWK WKH SRWHQWLDO RI DQRWKHU MREV RU PRUH WR WKH QRUWK LQ 6DUDWRJD &RXQW\ ´+RQHVWO\ P\ KRSH LV ZLWK WKH ULJKW LQYHVWPHQWV LQ SODFH \RX FRXOG ZDON IURP )LVKNLOO WR $OEDQ\ WR 0DOWD WR 6DUDWRJD RQ WKH LQVLGH µ .DOR\HURV WROG D WHOHYLVLRQ LQWHUYLHZHU LQ -DQXDU\ +H JULQQHG LPSLVKO\ WKDW ZRXOG DIWHU DOO PHDQ D EXLOGLQJ DERXW PLOHV ORQJ Y $OO RI WKLV VWDUWHG ZLWK WKDW \RXQJ DVVLVWDQW SK\VLFV SURIHVVRU DQG KLV KDQNHULQJ WR DFTXLUH D WKLQJ FDOOHG DQ ´XOWUD KLJK YDFXXP PDWHULDO IDEULFDWLRQ DQG FKDUDFWHUL]DWLRQ V\VWHPµ IRU XVH LQ WKH 8$OEDQ\ SK\VLFV ODE

)URP GLHVHOV WR PLFURFKLSV :KHQ .DOR\HURV MRLQHG WKH 3K\VLFV 'HSDUWPHQW LQ LW ZDV DOUHDG\ NQRZQ IRU LWV VWUHQJWKV LQ PDWHULDOV VFLHQFH +LV 3K ' WKHVLV DW WKH 8QLYHUVLW\ RI ,OOLQRLV DW 8UEDQD &KDPSDLJQ KDG IRFXVHG RQ WLWDQLXP FDUELGH ZKLFK LV XVHG DV DPRQJ RWKHU WKLQJV D FRDWLQJ IRU F\OLQGHU ZDOOV LQ GLHVHO HQJLQHV %XW DV .DOR\HURV EHJDQ PDSSLQJ RXW KLV UHVHDUFK GLUHFWLRQ DW 8$OEDQ\ KH FRQVLGHUHG WKH FHQWUDOLW\ RI PDWHULDOV VFLHQFH WR WKH VHPLFRQGXFWRU LQGXVWU\ +H WKRXJKW OLNH DQ HQWUHSUHQHXU ³ ZKHUH DUH WKH RSSRUWXQLWLHV WR SXW VFLHQFH WR ZRUN" ,QGXVWU\ ZDQWHG PLFURFKLSV SDFNHG HYHU PRUH GHQVHO\ ZLWK FLUFXLWV .DOR\HURV FRQFHLYHG RI D GHYLFH WKDW ZRXOG HQDEOH KLP DQG KLV VWXGHQWV WR ZRUN ZLWK DQG DVVHVV DOWHUQDWLYH FKLS PDNLQJ PDWHULDOV LQ D VXSHU FOHDQ YDFXXP HQYLURQPHQW +LV ODE EXGJHW ZRXOGQ·W FRYHU WKH FRVW VR KH VWDUWHG ZRUNLQJ RQ LW KLPVHOI XVLQJ ERUURZHG RU GRQDWHG ROG SDUWV DW WKH RXWVHW DQG WKHQ DSSO\LQJ IRU JUDQWV DV WKH SURMHFW SURFHHGHG ,Q WKH HQG KH KDG D GHYLFH YDOXHG DW PRUH WKDQ KDOI D PLOOLRQ GROODUV ´6RPHWLPHV JRRG SURMHFWV JHW UHMHFWHG µ KH WROG 8$OEDQ\·V UHVHDUFK PDJD]LQH LQ ´%XW WKHQ , MXVW JR EDFN DQG WU\ DJDLQ DQG DJDLQ µYL 6RRQ WKHUHDIWHU KH ZRQ JUDQWV IURP ,%0 6(0$7(&+ WKH 1DWLRQDO 6FLHQFH )RXQGDWLRQ DQG WKH 1HZ <RUN 6WDWH (QHUJ\ 5HVHDUFK DQG 'HYHORSPHQW $XWKRULW\ ,%0 GRQDWHG D FKHPLFDO YDSRU GHSRVLWLRQ V\VWHP WR IXUWKHU KLV ZRUN ,Q WKH 1DWLRQDO 6FLHQFH )RXQGDWLRQ QDPHG .DOR\HURV D 3UHVLGHQWLDO <RXQJ ,QYHVWLJDWRU D GHVLJQDWLRQ WKDW FDUULHG D \HDU LQ UHVHDUFK IXQGLQJ IRU ÀYH \HDUV ,Q 1HZ <RUN 6WDWH GHVLJQDWHG .DOR\HURV· ODE DV D &HQWHU IRU $GYDQFHG 7KLQ )LOP 7HFKQRORJ\ D ´&$7µ LQ RIÀFLDO WHUPLQRORJ\ ³ SURPLVLQJ PLOOLRQ D \HDU LQ VWDWH DQG LQGXVWU\ IXQGLQJ 2XWVLGH JUDQWV SXVKHG WKH &$7·V EXGJHW WR PLOOLRQ E\ 7KHQ D FRPSOHWH PLOOLRQ SLORW VHPLFRQGXFWRU PDQXIDFWXULQJ OLQH ZDV LQVWDOOHG LQ WKH EDVHPHQW RI WKH SK\VLFV EXLOGLQJ .DOR\HURV ZDV XS IURQW DERXW WKH LPSRUWDQFH RI GRLQJ UHVHDUFK WKDW ZDV RI GLUHFW YDOXH DQG LQWHUHVW WR LQGXVWU\ ´2XU JRDO LV WR SURYLGH QH[W JHQHUDWLRQ SURGXFWV WR WKH VHPLFRQGXFWRU LQGXVWU\ RQ D WLPHO\ DQG FRVW FRPSHWLWLYH EDVLV µ KH VDLG LQ %\ WKHQ KH KDG JUDGXDWH VWXGHQWV ZRUNLQJ LQ WKH &HQWHU ³

:KDW LV 1DQRWHFKQRORJ\" ´1DQRWHFKQRORJ\ LV WKH FURVV GLVFLSOLQDU\ VFLHQFH DQG HQJLQHHULQJ NQRZOHGJH IRU KRZ WR FRQWURO DQG PDQDJH WKH HVVHQWLDO EXLOGLQJ EORFNV RI PDWWHU DWRPV DQG PROHFXOHV WR IRUP UHDO OLIH V\VWHPV ZLWK H[WUHPHO\ SUHFLVH IXQFWLRQV DQG KLJKO\ FRQWUROOHG SURSHUWLHV µ ² $ODLQ .DOR\HURV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

PRUH WKDQ KDOI RI WKHP KH OLNHV WR SRLQW RXW 8$OEDQ\ JUDGV ZKR KDG HOHFWHG WR VWD\ IRU JUDGXDWH ZRUN LQ KLV ODEV YLL ,Q WKH XQLYHUVLW\ RSHQHG D PRGHUQLVWLF QHZ EXLOGLQJ DFURVV WKH URDG IURP LWV PDLQ FDPSXV ,QLWLDOO\ WKH IDFLOLW\ ZDV LQWHQGHG SULPDULO\ DV D FR ORFDWLRQ IRU WKH XQLYHUVLW\·V $WPRVSKHULF 6FLHQFHV 5HVHDUFK &HQWHU DQG IRU WKH $OEDQ\ IRUHFDVW FHQWHU RI WKH 1DWLRQDO :HDWKHU 6HUYLFH DFFRUGLQJO\ LW ZDV QDPHG WKH &HQWHU IRU (QYLURQPHQWDO 6FLHQFHV DQG 7HFKQRORJ\ 0DQDJHPHQW &(670 .DOR\HURV PDQDJHG WR VOLS KLV JURZLQJ &$7 LQWR WKH QHZ EXLOGLQJ WRR ³ WKRXJK WKH &$7·V SUHVHQFH RQO\ JRW WKLUG ELOOLQJ LQ WKH XQLYHUVLW\·V RIÀFLDO DQQRXQFHPHQWV

:KHQ QDQR EHFDPH QDQR

3DUW RI WKH 1DQR7HFK &RPSOH[

%XW WKH &$7 JUHZ UDSLGO\ DQG LQ 8$OEDQ\ HVWDEOLVKHG D 6FKRRO RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ 7KLV PDUNHG WKH ÀUVW RIÀFLDO XVH RI ´QDQRµ DV WKH GHVFULSWRU RI WKH IRFXV ³ QDQR EHLQJ D FRQFHSW SRLQWHG PRUH FOHDUO\ DW WKH IXWXUH WKDQ ZHUH WKH OHJDF\ WHUPV RI ´PDWHULDOV VFLHQFHµ DQG ´WKLQ ÀOP µ .DOR\HURV WUHNNHG EHWZHHQ FRUSRUDWH UHVHDUFK OHDGHUV DQG JRYHUQPHQW RIÀFLDOV WR JHW VXSSRUW IRU PRUH JURZWK 7KDW SDLG RII LQ $SULO ZKHQ *RYHUQRU *HRUJH 3DWDNL OHJLVODWLYH OHDGHUV DQG H[HFXWLYHV IURP ,%0 FDPH WR &(670 WR DQQRXQFH D QHZ &HQWHU RI ([FHOOHQFH LQ 1DQRHOHFWURQLFV DQG 1DQRWHFKQRORJ\ ,W ZDV WR EH IXQGHG ZLWK PLOOLRQ LQ VWDWH PRQH\ SDUW RI D PLOOLRQ DOORFDWLRQ VKDUHG ZLWK IRXU RWKHU &HQWHUV RI ([FHOOHQFH (YHQ PRUH WHOOLQJ LQ WHUPV RI WKH FHQWHU·V IXWXUH SURVSHFWV ,%0 DQQRXQFHG VLPXOWDQHRXVO\ WKDW LW ZRXOG PDNH DQ DGGLWLRQDO PLOOLRQ LQYHVWPHQW LQ $OEDQ\ 1DQR WR DGYDQFH WKH GHYHORSPHQW RI WKH QH[W JHQHUDWLRQ RI FRPSXWHU FKLSV 7R SHUPLW WKH FR ORFDWLRQ RI FRUSRUDWH UHVHDUFK ODEV ZLWK XQLYHUVLW\ ODEV RQ FDPSXV SURSHUW\ WKH /HJLVODWXUH DGRSWHG VSHFLDO ´JURXQG OHDVHµ OHJLVODWLRQ WR JHW DURXQG 1HZ <RUN·V UHVWULFWLYH ODZV RQ SXEOLF SULYDWH SDUWQHUVKLSV DW XQLYHUVLWLHV 7KH 681< 5HVHDUFK )RXQGDWLRQ D FKDUWHUHG SULYDWH QRQSURÀW ZDV SHUPLWWHG WR OHDVH WKH ODQG WR D VSHFLDO )XOOHU 5RDG 0DQDJHPHQW &RUSRUDWLRQ DOVR D SULYDWH QRQSURÀW ZKLFK LQ WXUQ ZRXOG RSHUDWH WKH VLWH DQG UHQW WKH VSDFH WR XQLYHUVLW\ DQG FRUSRUDWH WHQDQWV DOLNH )URP WKH RXWVHW .DOR\HURV· VWUDWHJ\ ZDV WR GHYHORS UHVHDUFK IDFLOLWLHV PRUH H[WHQVLYH WKDQ DQ\ RQH FRPSDQ\ RU XQLYHUVLW\ ZRXOG EH OLNHO\ WR EXLOG MXVW IRU LWVHOI WKHUHE\ OXULQJ PXOWLSOH FRUSRUDWH UHVHDUFK RSHUDWLRQV WR WKH VLWH ³ FUHDWLQJ DQ HQYLURQPHQW RI FURVV SROOLQDWLRQ DQG V\QHUJLHV WKDW ZRXOG GULYH GLVFRYHULHV ERWK E\ WKH FROOHJH DQG E\ LWV SDUWQHUV ´7KH LQIUDVWUXFWXUH ZH·UH EXLOGLQJ WUDQVFHQGV DQ\ RQH FRPSDQ\ µ .DOR\HURV WROG 7KH $VVRFLDWHG 3UHVV LQ ´,W·V WR FUHDWH EDVLFDOO\ WKH KXE WR JHQHUDWH WKH FULWLFDO PDVV µ +H DQG KLV FROOHDJXHV EHJDQ EUDLQVWRUPLQJ DERXW RWKHU FRPSDQLHV DURXQG WKH ZRUOG ZKR PLJKW EH OXUHG WR WKH VLWH ³ PRVW IDPRXVO\ LQ 6DWXUGD\ PRUQLQJ JURXS VHVVLRQV DW D ORFDO 6WDUEXFNV 6WDII IDQQHG RXW WR 0DVVDFKXVHWWV 7H[DV &DOLIRUQLD -DSDQ *HUPDQ\ 6LQJDSRUH DQG PDQ\ RWKHU SODFHV UHFUXLWLQJ SDUWQHUV ZKR ZRXOG IXQG DQG VKDUH LQ UHVHDUFK SURMHFWV RU ORFDWH ODEV DQG RIÀFHV DW $OEDQ\ 1DQR ´<RX FDQ·W GR WKLV ZLWK MXVW XQLYHUVLW\ ODEV DQG VWDUW XSV µ .DOR\HURV VD\V ´,W·V NLQG RI OLNH EXLOGLQJ D PDOO <RX QHHG WKH DQFKRU WHQDQWV 7KHQ WKH VPDOOHU WHQDQWV ZDQW LQ WRR µ 2QH ELJ EUHDNWKURXJK FDPH LQ $SULO ZKHQ ,QWHUQDWLRQDO 6(0$7(&+ RQH RI WKH FURZQ MHZHOV RI $XVWLQ 7H[DV DQQRXQFHG D PLOOLRQ 1RUWK

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


&HQWHU IRU UHVHDUFK DW $OEDQ\ 1DQR )LYH \HDUV ODWHU ,QWHUQDWLRQDO 6(0$7(&+ DQQRXQFHG LW ZDV PRYLQJ LWV KHDGTXDUWHUV WR $OEDQ\ WRR 7KHQ LQ 1RYHPEHU 7RN\R (OHFWURQ DQQRXQFHG D QHZ PLOOLRQ WHFKQRORJ\ FHQWHU DW $OEDQ\ 1DQR $IWHU WKDW ‡ 7KH VFKRRO ZDV FRQYHUWHG WR D &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ LQ -DQXDU\ RI DQG LWV ÀUVW 3K ' GHJUHHV LQ QDQRVFLHQFH ZHUH DZDUGHG WKDW 'HFHPEHU ‡ ,Q $60/ DQQRXQFHG WKDW LW ZDV ORFDWLQJ D PLOOLRQ 5 ' FHQWHU DW WKH FDPSXV D &HQWHU IRU 6HPLFRQGXFWRU 5HVHDUFK ZDV DQQRXQFHG $QRWKHU PLOOLRQ ODE WKH $SSOLHG 0DWHULDOV $0$7 UHVHDUFK FHQWHU ZDV HVWDEOLVKHG ‡ ,Q -DQXDU\ VWDWH RIÀ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‡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

´7KH LQIUDVWUXFWXUH ZH·UH EXLOGLQJ WUDQVFHQGV DQ\ RQH FRPSDQ\ µ ² $ODLQ .DOR\HURV

‡ ,Q 8$OEDQ\·V 1DQR&ROOHJH ODXQFKHG WKH ZRUOG·V ÀUVW FRPSUHKHQVLYH XQGHUJUDGXDWH GHJUHH SURJUDP LQ QDQRVFDOH VFLHQFH ‡ ,Q WKH 1HZ <RUN 6WDWH (QHUJ\ 5HVHDUFK DQG 'HYHORSPHQW $XWKRULW\ DZDUGHG &16( PLOOLRQ WR HVWDEOLVK D FOHDQ HQHUJ\ EXVLQHVV LQFXEDWRU SURJUDP $QG &* 3RZHU DQG &16( DQQRXQFHG D PLOOLRQ &HQWHU IRU ,QWHOOLJHQW 3RZHU DW WKH 1DQR&ROOHJH 7KH VWDWH·V &HQWHU RI ([FHOOHQFH LQ ,QIRWRQLFV 7HFKQRORJ\ LQ &DQDQGDLJXD DQQRXQFHG LW ZRXOG EH PHUJLQJ ZLWK WKH 1DQRVFDOH &HQWHU RI ([FHOOHQFH ‡ ,Q 0DUFK &16( OLFHQVHG QDQRPHWHU WHFKQRORJ\ IURP ,%0 WKDW ZLOO HQDEOH WKH FROOHJH WR SURYLGH SUH PDQXIDFWXULQJ SURWRW\SLQJ IRU WKH QH[W JHQHUDWLRQ RI FKLSV $QG *URXS /DEV ,QF D 6LOLFRQ 9DOOH\ ÀUP WKDW GHYHORSV VHPLFRQGXFWRU ZDIHUV DQQRXQFHG LW ZLOO RSHQ PDQXIDFWXULQJ IDFLOLWLHV DW &16( DV ZHOO DV LQ 6\UDFXVH ZLWK DERXW MREV EHWZHHQ WKHP ‡ ,Q $SULO 8 6 6HQ &KDUOHV 6FKXPHU DQQRXQFHG D IHGHUDO JUDQW RI PLOOLRQ WR &16( IRU D MRLQW SURMHFW ZLWK 6(0$7(&+ DQG WKH 8QLYHUVLW\ RI &HQWUDO )ORULGD IRFXVHG RQ WKH GHYHORSPHQW RI SKRWRYROWDLF FHOOV .DOR\HURV VDLG WKLV ZRXOG OHDG WR WRWDO LQYHVWPHQW RI DERXW PLOOLRQ LQ WKH FROOHJH·V JURZLQJ UHVHDUFK RQ VRODU SRZHU

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

7KHVH GHYHORSPHQWV ZHUH IXQGHG ODUJHO\ E\ PRQLHV UDLVHG IURP SULYDWH FRUSRUDWLRQV DQG RWKHU SDUWQHUV DQG E\ WKH IHGHUDO JRYHUQPHQW ³ EXW WKHUH ZDV D VXEVWDQWLDO 1HZ <RUN 6WDWH LQYHVWPHQW DV ZHOO $Q DXGLW E\ WKH 2IÀFH RI WKH 1HZ <RUN 6WDWH &RPSWUROOHU LQ $SULO IRXQG WKDW IURP WKURXJK WKH VWDWH KDG IXQGHG WKH RSHUDWLQJ FRVWV RI IRXU UHVHDUFK SURMHFWV DQG KDG FRQWULEXWHG D VKDUH RI QLQH FDSLWDO SURMHFWV IRU D WRWDO DXWKRUL]DWLRQ RI PLOOLRQ RI ZKLFK PLOOLRQ KDG EHHQ VSHQW DV RI $XJXVW &RPSWUROOHU 7KRPDV 'L1DSROL VDLG WKDW ´IXQGLQJ ZHQW ZKHUH LW ZDV VXSSRVHG WR JR µ DQG QRWHG WKDW PHDQZKLOH WKH FHQWHU KDG DWWUDFWHG SULYDWH LQYHVWPHQW RI ELOOLRQ YLLL %RWK SXEOLF DQG SULYDWH LQYHVWPHQWV LQ WKH FHQWHU KDYH FRQWLQXHG VLQFH WKHQ WR D FXUUHQW WRWDO RI DERXW ELOOLRQ

&16(·V UHFHQW PRYHV LQWR DOWHUQDWLYH HQHUJ\ SURJUDPV DUH D ORJLFDO RXWJURZWK RI QDQR UHVHDUFK EHFDXVH PDQ\ RI WKH PRVW SURPLVLQJ DGYDQFHG WHFKQRORJLHV LQ HQHUJ\ UHO\ RQ QDQR PDWHULDOV %XW LQ DQRWKHU VHQVH WKH\ UHSUHVHQW D QHZ GLUHFWLRQ $OEDQ\ 1DQR LV DFWLYHO\ ZRUNLQJ WR GHYHORS DQG QXUWXUH D UHJLRQDO FRPPXQLW\ RI EXVLQHVVHV FRQQHFWHG WR DOWHUQDWLYH HQHUJ\ ³ D ´FOXVWHU µ DV HFRQRPLF GHYHORSHUV FDOO VXFK DJJORPHUDWLRQV ³ ZHOO EH\RQG WKH VPDOO LQFXEDWRU LW RSHUDWHV RQ WKH FDPSXV LWVHOI 2QH DIWHUQRRQ LQ )HEUXDU\ IRU H[DPSOH LW EURXJKW WRJHWKHU PRUH WKDQ HQWUHSUHQHXUV LQYHVWRUV EXVLQHVV RZQHUV DQG RWKHUV IRU D EULHÀQJ RQ VWRUDJH WHFKQRORJLHV EDWWHULHV FDSDFLWRUV SXPSHG VWRUDJH DQG VR RQ WKDW FDQ PD[LPL]H WKH XWLOLW\ RI DOWHUQDWLYH HQHUJ\ VRXUFHV OLNH ZLQG DQG VRODU ,QFOXGHG LQ WKH DXGLHQFH ZHUH QRW RQO\ WKRVH LQWHUHVWHG LQ GLUHFW LQYROYHPHQW LQ WKH HQHUJ\ EXVLQHVV EXW DOVR ÀUPV WKDW VHUYH VXFK ÀUPV ´,·P KHUH EHFDXVH VRPH RI P\ FOLHQWV DUH KHUH DQG , QHHG WR XQGHUVWDQG WKHLU EXVLQHVV µ VDLG RQH LQVXUDQFH EURNHU LQ DWWHQGDQFH 7KDW LV D FODVVLF LOOXVWUDWLRQ RI ´FOXVWHU VWUDWHJ\ µ SURYLGLQJ D ZD\ WR OLQN GLYHUVH EXVLQHVVHV WKDW VKDUH D FRQQHFWLRQ WR D QHZ LQGXVWU\ $ VTXDUH IRRW FOHDQ URRP DW $OEDQ\ 1DQR

$OEDQ\ 1DQR DOVR VHHNV UHJXODU FRQWDFW ZLWK WKH $OEDQ\ FRPPXQLW\ $OO WROG LW KRVWHG DERXW VWXGHQWV ODVW \HDU LQFOXGLQJ VRPH ZKR WRRN SDUW LQ D IRUPDO ´1DQR+LJKµ SURJUDP RSHUDWHG MRLQWO\ ZLWK WKH $OEDQ\ &LW\ 6FKRRO 'LVWULFW 6RPH YLVLWRUV FDPH WR WKH FDPSXV GXULQJ LQFOXGLQJ PRUH WKDQ SHRSOH DW D ´FRPPXQLW\ GD\µ LQ 1RYHPEHU ,W KRVWHG D VXPPHU 1DQR&DPS DV SDUW RI D ORFDO ´*LUOV LQ 6FLHQFH DQG 7HFKQRORJ\µ SURJUDP LQ -XO\ EURXJKW PRUH WKDQ ORFDO HOHPHQWDU\ DQG VHFRQGDU\ VFKRRO VWXGHQWV RQ FDPSXV IRU D 1DQR&DUHHU 'D\ LQ 1RYHPEHU DQG KRVWHG *LUO 6FRXWV IRU D ´1DQR([SORUDWLRQVµ SURJUDP LQ 1RYHPEHU ,Q WKH FHQWHU HYHQ GRQDWHG SRXQGV RI VDQG IRU UHVWRUDWLRQ SURMHFWV LQ WKH $OEDQ\ 3LQH %XVK 3UHVHUYH DGMDFHQW WR LWV FDPSXV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


&UHGLW WR JR DURXQG ,Q WKH HDUO\ GD\V WKHUH ZHUH VNHSWLFV ZKR IHDUHG WKDW $OEDQ\ 1DQR ZRXOG WXUQ RXW WR EH DQ H[SHQVLYH ERRQGRJJOH %\ QRZ IHZ DUJXH ZLWK LWV VXFFHVV 7KHUH DUH GLIIHULQJ YLHZV KRZHYHU RQ ZK\ LW ZDV VXFFHVVIXO ³ DQG WKHUHIRUH RQ ZKDW 1HZ <RUN 6WDWH 681< DQG XQLYHUVLWLHV JHQHUDOO\ PLJKW GR WR KDYH PRUH VXFFHVVHV OLNH LW 6RPH DWWULEXWH WKH ULVH RI $OEDQ\ 1DQR WR WKH SHUIHFW VHOHFWLRQ RI WKH SHUIHFW WHFKQRORJ\ IRFXV DW WKH SHUIHFW WLPH $QG WKHUH·V VRPH WUXWK LQ WKDW .DOR\HURV FDOOV QDQR ´WKH QH[W LQGXVWULDO UHYROXWLRQ µ DQG ´WKH ¶PRRQ VKRW· RI WKH VW &HQWXU\ µL[ 8$OEDQ\ JRW LQWR QDQR MXVW DW WKH WLPH ZKHQ KLJK WHFK LQGXVWU\ ÀUVW EHJDQ WR FRQIURQW WKH IDFW WKDW SUHYLRXV JHQHUDWLRQV RI ´PLFURµ WHFKQRORJ\ ZHUHQ·W PLFUR HQRXJK IRU WKH QH[W ELJ DGYDQFHV QHHGHG LQ FRPSXWHU FKLSV PHGLFLQH PDWHULDOV DQG D KRVW RI RWKHU DSSOLFDWLRQV 7KHQ WKHUH DUH WKRVH ZKR DWWULEXWH WKH ZKROH VXFFHVV VLPSO\ WR ZLVH LQYHVWPHQWV E\ 1HZ <RUN 6WDWH JRYHUQPHQW 7KHUH·V VRPH WUXWK LQ WKDW WRR 7KH PLOOLRQ WKDW 1HZ <RUN 6WDWH KDV SXW LQWR $OEDQ\ 1DQR VLQFH PRVWO\ IRU EXLOGLQJV DQG HTXLSPHQW UHSUHVHQWV D VXEVWDQWLDO WD[SD\HU LQYHVWPHQW %XW LW KDV DYHUDJHG RQO\ DERXW PLOOLRQ D \HDU ³ OHVV WKDQ ZKDW WKH VWDWH VSHQGV HYHU\ \HDU MXVW RQ LWV ´FRPPXQLW\ SURMHFWV IXQGµ IRU PLVFHOODQHRXV JUDQWV 7KH DPRXQW RI SULYDWH LQYHVWPHQW DW $OEDQ\ 1DQR RXWVWULSV WKH VWDWH·V VSHQGLQJ WKHUH E\ DOPRVW VHYHQ WR RQH 0HDQZKLOH WKH VWDWH KDV LQYHVWHG ELOOLRQV LQ RWKHU HFRQRPLF GHYHORSPHQW HIIRUWV WKDW KDYH \LHOGHG QRWKLQJ FRPSDUDEOH WR $OEDQ\ 1DQR

7KH DPRXQW RI SULYDWH LQYHVWPHQW DW $OEDQ\ 1DQR RXWVWULSV WKH VWDWH·V VSHQGLQJ WKHUH E\ DOPRVW VHYHQ WR RQH

)RU KLV SDUW .DOR\HURV FRQVLVWHQWO\ JLYHV DOO WKH FUHGLW KH FDQ WR HOHFWHG RIÀFLDOV ZKR SURYLGHG WKH VHHG PRQH\ DQG DXWKRUL]DWLRQ IRU WKH JURZWK RI WKH FRPSOH[ &16(·V DUFKLYHV RI QHZV UHOHDVHV SXEOLF VWDWHPHQWV OHJLVODWLYH WHVWLPRQ\ DQG PDQ\ RWKHU GRFXPHQWV DUH UHSOHWH ZLWK SUDLVH IRU *RYHUQRU $QGUHZ &XRPR IRUPHU *RYHUQRU *HRUJH 3DWDNL IRUPHU *RYHUQRU 'DYLG 3DWHUVRQ IRUPHU 6HQDWH 0DMRULW\ /HDGHU -RVHSK %UXQR $VVHPEO\ 0DMRULW\ /HDGHU 5RQ &DQHVWUDUL DQG PDQ\ RWKHU HOHFWHG RIÀFLDOV IRU WKHLU UROHV 2IWHQ DW WKH WRS RI WKH OLVW LV $VVHPEO\ 6SHDNHU 6KHOGRQ 6LOYHU $OEDQ\ 1DQR·V ÀUVW DQG ORQJHVW VWDQGLQJ SURPLQHQW VXSSRUWHU %XW 6SHDNHU 6LOYHU SXVKHV WKH FUHGLW LQ WKH RWKHU GLUHFWLRQ +H VD\V KH RQO\ DSSURYHG WKH ÀUVW PLOOLRQ EHFDXVH RI ´WKH YLVLRQ DQG D SLWFK IURP 'U $ODLQ .DOR\HURV µ ´'U .DOR\HURV LV WKH ¶-RKQQ\ $SSOHVHHG· RI QDQRWHFKQRORJ\ µ WKH 6SHDNHU VDLG ZKHQ $OEDQ\ 1DQR·V DOOLDQFH ZLWK 681< ,7 ZDV DQQRXQFHG LQ 8WLFD RQ $XJ ´:KHUHYHU KH WDNHV KLV PRGHO QDQRWHFK UHODWHG FRPSDQLHV DQG QDQRWHFK UHODWHG MREV VSULQJ XS µ 7KDW VHHPV LQ WKH HQG WR EH WKH RQH NH\ IDFWRU WKDW PDGH $OEDQ\ 1DQR D VXFFHVV VWRU\ IDU RXWVWULSSLQJ VR PDQ\ RWKHU WHFK LGHDV VR PDQ\ RWKHU ´FHQWHUVµ DQG ´LQYHVWPHQWVµ LQ 1HZ <RUN DQG HOVHZKHUH ,W DOO FRPHV EDFN WR RQH DVVLVWDQW SK\VLFV SURIHVVRU ZKR WXUQHG RXW WR EH ³ RU ZKR PDGH KLPVHOI LQWR ³ D EULOOLDQWO\ HIIHFWLYH HQWUHSUHQHXU 3HRSOH ZKR·YH ZRUNHG ZLWK .DOR\HURV RYHU WKH \HDUV UHFRXQW YLUWXDOO\ D WH[WERRN FDVH RI HQWUHSUHQHXUVKLS WKH YLVLRQ WR VHH WKH SRWHQWLDO LQ KLV ÀHOG WKH GLVFLSOLQH WR GHYHORS D SODQ IRU DFWLQJ RQ WKDW YLVLRQ WKH VDOHVPDQVKLS WR JHW WKH VXSSRUW WKH SODQ QHHGHG DQG WKH WHQDFLW\ WR RYHUFRPH HYHU\ REVWDFOH ZKHWKHU WHFKQLFDO RU EXUHDXFUDWLF 1RW WKDW .DOR\HURV HYHU VD\V DQ\WKLQJ OLNH WKDW DERXW KLPVHOI ´,·P XQGHU QR LOOXVLRQV WKDW WKH VXQ UHYROYHV DURXQG PH µ KH WROG WKH $OEDQ\ 7LPHV 8QLRQ LQ 6HSWHPEHU ´, NQRZ ZKHUH , ÀW LQ WKH IRRG FKDLQ µ[

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

$7 :25. :

'R 'RZQVWDWH 0HGLFDO &HQWHU $ )XWXUH LLQ %LR7HFK *URZV LQ %URRNO\Q Q %HFD %HFDXVH WKH\·UH ELJ DQG H[SHQVLYH HOHFWURHQFHSKDORJUDSKLF ((* GHYLFHV DUH XVXDOO\ OLPLWHG WR WUDXPD FHQWHUV ZKHUH WKH\ KHOS GRFWRUV GHWHUPLQH DUH X WKH VHYHULW\ RI D SDWLHQW·V VWURNH RU WKH H[WHQW RI EUDLQ LQMXU\ UHVXOWLQJ IURP WKH V D FDWDVWURSKLF DFFLGHQW %XW VRRQ WKH ODWHVW JHQHUDWLRQ ((* ³ SRUWDEOH DV D D FD FHOO SKRQH ³ LV H[SHFWHG WR EH LQ WKH KDQGV RI HPHUJHQF\ PHGLFDO WHFKQLFLDQV FHOO DQG DUP\ PHGLFV OLQNLQJ WKHP ZLUHOHVVO\ WR WKH EHVW QHXURORJLVWV ZRUOG DQG ZLGH KHOSLQJ WR VDYH OLYHV E\ VSHHGLQJ GLDJQRVLV DQG WUHDWPHQW 7KDW·V QHZ LG ELRWHFKQRORJ\ DULVLQJ IURP UHVHDUFK DW 681< 'RZQVWDWH 0HGLFDO &HQWHU DQG GHYHORSHG DQG FRPPHUFLDOL]HG E\ D XQLYHUVLW\ DIÀOLDWHG VWDUW XS ³ %LR 6LJQDO *URXS ³ LQ VSDFH FUHDWHG WR KHOS VXFK EXVLQHVVHV IRUP DQG VWD\ LQ 1HZ <RUN &LW\ 1HZ <RUN &LW\ LV NQRZQ PRUH IRU :DOO 6WUHHW WKDQ IRU ELRWHFK %XW WKH FLW\ LV ULFK LQ VFLHQWLÀF DQG ELRPHGLFDO WDOHQW LWV QLQH WRS DFDGHPLF PHGLFDO UHVHDUFK LQVWLWXWLRQV RXWQXPEHU WKRVH LQ DQ\ RWKHU FLW\ 6WLOO WKH UHJLRQ KDV ORQJ ODJJHG EHKLQG SODFHV OLNH WKH %D\ $UHD DQG %RVWRQ LQ DWWUDFWLQJ DQG UHWDLQLQJ VPDOO DQG PLG VL]HG ELRWHFKQRORJ\ FRPSDQLHV 7KH SULPDU\ UHDVRQ KDV EHHQ D ODFN RI DIIRUGDEOH ODE VSDFH DFFRUGLQJ WR (YD &UDPHU YLFH SUHVLGHQW RI ELRWHFKQRORJ\ DQG VFLHQWLÀF DIIDLUV DQG D GLVWLQJXLVKHG VHUYLFH SURIHVVRU RI FHOO ELRORJ\ DW 'RZQVWDWH 0HGLFDO &HQWHU

(YD &UDPHU YLFH SUHVLGHQW RI ELRWHFKQRORJ\ DQG VFLHQWL¿F DIIDLUV 'RZQVWDWH 0HGLFDO &HQWHU

,Q &UDPHU DQG FROOHDJXHV KDWFKHG D SODQ WR FUHDWH D IDFLOLW\ SURYLGLQJ ODE DQG RIÀFH VSDFH DW UHDVRQDEOH SULFHV ´:H VWDUWHG ZLWK QR UHDO HVWDWH QR PRQH\ MXVW WKH LGHD WKDW ZH FRXOG FDSLWDOL]H RQ WKH V\QHUJ\ EHWZHHQ FRPSDQLHV DQG RXU IDFXOW\ DQG VWXGHQWV µ &UDPHU UHFDOOHG [L (OHYHQ \HDUV ODWHU 'RZQVWDWH KDV GHYHORSHG DQ DGYDQFHG LQFXEDWRU WR IRVWHU QHZ ELRWHFK VWDUW XSV D V\QWKHWLF FKHPLVWU\ IDFLOLW\ YDVW VZLQJ VSDFH RQ WKH %URRNO\Q ZDWHUIURQW WR DOORZ PDWXULQJ ÀUPV DOO WKH URRP DQG UHVRXUFHV WKH\ QHHG WR ÁRXULVK DQG DQ HGXFDWLRQDO SURJUDP WR WUDLQ DQG SODFH FROOHJH VFLHQFH PDMRUV LQ LQWHUQVKLSV DQG MREV LQ WKH EXUJHRQLQJ ELRWHFK LQGXVWU\

%LUWKLQJ DQ LQFXEDWRU 3ODQQHUV RI WKH 'RZQVWDWH LQFXEDWRU WRRN LQVSLUDWLRQ IURP WKH H[DPSOH RI 8OVWHU &RPPXQLW\ &ROOHJH ZKLFK SURYLGHG XQLYHUVLW\ VSDFH WR KHOS IRUPHU HPSOR\HHV RI ,%0 FUHDWH QHZ ÀUPV LQ WKH DIWHUPDWK RI ZLGHVSUHDG OD\RIIV LQ WKH UHJLRQ GXULQJ WKH V 7KH\ DOVR UHFHLYHG YDOXDEOH JXLGDQFH IURP IRXQGHUV RI WKH VXFFHVVIXO LQFXEDWRU DW 681< 6WRQ\ %URRN ZKR KDG PXFK WR VKDUH DERXW SUDFWLFHV WR HPXODWH RU DYRLG EDVHG RQ WKHLU H[SHULHQFHV 7KH DUULYDO RI QHZ OHDGHUVKLS DW 'RZQVWDWH 0HGLFDO &HQWHU FRLQFLGHG ZLWK QHZ RYHUWXUHV IURP %URRNO\Q PHPEHUV RI WKH 1HZ <RUN 6WDWH /HJLVODWXUH FRQFHUQLQJ D GHYHORSLQJ LQLWLDWLYH LQ ELRWHFKQRORJ\ ´ 'RZQVWDWH 3UHVLGHQW -RKQ /D5RVD SXW WRJHWKHU D FRPPLWWHH FRPSULVHG RI DOO WKH NH\ SHRSOH ZKR ZRXOG EH QHHGHG WR VD\ \HV µ &UDPHU UHFRXQWHG ´ZKLFK PDGH LW SRVVLEOH IRU GHFLVLRQV WR EH PDGH DQG LPSOHPHQWHG TXLFNO\ DQG ZKLFK SURYHG LQVWUXPHQWDO WR VXFFHVVHV HQMR\HG E\ WKH SURMHFW LQ GHDOLQJ ZLWK SULYDWH EXVLQHVVHV µ 7KLV HDUO\ VWDJH SODQQLQJ OHG WR WKH IRUPDWLRQ LQ 2FWREHU RI 'RZQVWDWH 7HFKQRORJ\ &HQWHU ,QF '7& ,QF D SULYDWH QRQSURÀW FRUSRUDWLRQ DIÀOLDWHG ZLWK WKH 5HVHDUFK )RXQGDWLRQ RI 681< DQG WKH +HDOWK 6FLHQFH &HQWHU DW %URRNO\Q )RXQGDWLRQ ,QF +6&% )RXQGDWLRQ '7& ,QF ZDV JLYHQ UHVSRQVLELOLW\ DQG ÁH[LELOLW\ WR IXQG FRQVWUXFW DQG RSHUDWH D UHVHDUFK SDUN RQ ODQG DFTXLUHG E\ +6&% )RXQGDWLRQ QH[W WR WKH 0HGLFDO &HQWHU ZLWK

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


DQ LQFXEDWRU RIIHULQJ DIIRUGDEOH ODEV DQG RIÀFH VSDFH DV ZHOO DV DFFHVV WR VSHFLDOLVWV DQG IDFLOLWLHV RI WKH XQLYHUVLW\ '7& ,QF UHFHLYHG DQ LQLWLDO JUDQW RI IURP WKH 1HZ <RUN &LW\ &RXQFLO 7KDW IXQGLQJ ZDV WKHQ PDWFKHG E\ DQ HTXLYDOHQW JUDQW IURP WKH 1HZ <RUN 6WDWH )RXQGDWLRQ IRU 6FLHQFH 7HFKQRORJ\ DQG ,QQRYDWLRQ 1<67$5 DQG IXHOHG DUFKLWHFWXUDO GHVLJQ DQG D EXVLQHVV SODQ 'LVFXVVLRQV EHJDQ ZLWK SRWHQWLDO WHQDQWV IRU D QHZ LQFXEDWRU IDFLOLW\

´7KLV SODFH KDV EHHQ D JRGVHQG IRU XV :H DUH IRUWXQDWH HQRXJK WR KDYH QRZ DWWUDFWHG WKH DWWHQWLRQ RI 1,+ >1DWLRQDO ,QVWLWXWHV RI +HDOWK@ DQG RWKHUV WKURXJK VRPH JUDQWV IRU UHVHDUFK %XW ZH ZRXOGQ·W KDYH EHHQ DEOH WR UXQ WKLV RSHUDWLRQ ZLWKRXW WKH KHOS ZH UHFHLYHG IURP WKH LQFXEDWRU +DYLQJ WKH VXSSRUW DQG KDYLQJ WKH FORVHQHVV RI UHVRXUFHV DW WKH KRVSLWDO KDV MXVW EHHQ SKHQRPHQDO µ

,Q D PDMRU FRXS ,P&ORQH D VXEVLGLDU\ RI /LOO\ DQG RQH RI WKH ODUJHVW WHFKQRORJ\ ÀUPV LQ WKH VWDWH DJUHHG WR OHDVH VTXDUH IHHW RI DOUHDG\ DYDLODEOH VSDFH RZQHG E\ +6&% DQG WKHQ WR EXLOG DW LWV RZQ H[SHQVH D QHZ PLOOLRQ VTXDUH IRRW ODERUDWRU\ IDFLOLW\ ZLWKLQ WKH 'RZQVWDWH 5HVHDUFK 3DUN ³ VSDFH WR KRXVH D QHZ 6PDOO 0ROHFXOH 'UXJ 'LVFRYHU\ 'LYLVLRQ ZRUNLQJ RQ LQQRYDWLYH WUHDWPHQWV IRU FDQFHU ,P&ORQH EHJDQ FRQVWUXFWLRQ LQ 0D\ RSHQHG WKH IDFLOLW\ LQ 0DUFK DQG RSHUDWHG WKHUH XQWLO ÀQDQFLDO WURXEOHV ZLWK WKH SDUHQW ÀUP FDXVHG LW WR OHDYH LQ 6HSWHPEHU %XW LW OHIW EHKLQG D VWDWH RI WKH DUW FRPPHUFLDO V\QWKHWLF FKHPLVWU\ IDFLOLW\ WXUQHG RYHU WR 'RZQVWDWH DQG KDG HQRUPRXV YDOXH DV DQ DQFKRU WKDW SURYLGHG FDFKHW DQG FUHGLELOLW\ IRU '7& ,QF LQ LWV HIIRUWV WR DWWUDFW FDSLWDO DQG WHQDQWV

² $QGHUVRQ 0LFX FKLHI RSHUDWLRQV RI¿FHU %LR 6LJQDO *URXS

:LWK WKLV HDUO\ PRPHQWXP FRQVWUXFWLRQ RI 'RZQVWDWH·V $GYDQFHG %LRWHFKQRORJ\ ,QFXEDWRU SURFHHGHG DSDFH EDVHG RQ D GHVLJQ SODQ IRU VSDFH WR EH DGGHG DV IDVW DV IXQGLQJ ³ ZKLFK FDPH IURP 1HZ <RUN 6WDWH 1HZ <RUN &LW\ DQG WKH IHGHUDO JRYHUQPHQW ³ DQG GHPDQG ZRXOG SHUPLW ´:H EXLOW DV TXLFNO\ DV ZH FRXOG DQG RQO\ ZKDW UHVRXUFHV ZRXOG DOORZ µ &UDPHU H[SODLQV ´7KLV SHUPLWWHG XV WR KDYH VRPHWKLQJ FRQFUHWH WR VKRZ IRU RXU HIIRUWV DV ZH FRQWLQXHG WR IXQGUDLVH WR GHPRQVWUDWH VXFFHVV DQG D ÁRZ RI UHWXUQ IURP WHQDQWV DQG WR QRW RYHU H[WHQG E\ WDNLQJ RQ GHEW ZKLFK KHOSHG XV WR NHHS UHQWDO UDWHV PRGHVW µ

$7 $ :25. : 2

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ÀDPPDWLRQ FRDJXODWLRQ DQG WLVVXH UHJHQHUDWLRQ %LR0ROHFXODU ,QF D FRPSDQ\ SURGXFLQJ D YDULHW\ RI ELRORJLFDO UHVHDUFK UHDJHQWV ZLGHO\ XVHG LQ PROHFXODU ELRORJLFDO UHVHDUFK GUXJ GLVFRYHU\ DQG FOLQLFDO GLDJQRVLV ,QWHUQDWLRQDO $,'6 9DFFLQH ,QLWLDWLYH ,$9, ODE VSDFH IRU WKH OHDGLQJ JOREDO HIIRUW WR ¿QG D YDFFLQH IRU $,'6

$ JURXQGEUHDNLQJ FHUHPRQ\ EURXJKW D ÁRFN RI HOHFWHG RIÀFLDOV DFDGHPLF EXVLQHVV FLYLF OHDGHUV DQG RWKHU ZHOO ZLVKHUV WR 3DUNVLGH $YHQXH RQ 6HSWHPEHU IRU WKH EHJLQQLQJ RI 3KDVH , VTXDUH IHHW RI PRGXODU ODE DQG RIÀFH VSDFH FRPSOHWHG LQ 0D\ 3KDVH ,, ZKLFK ZDV GHVLJQHG HYHQ DV 3KDVH , ZDV XQGHU ZD\ SURYLGHG DQ DGGLWLRQDO VTXDUH IHHW FRPSOHWHG LQ 'HFHPEHU $Q LQGHSHQGHQW SDQHO RI DUFKLWHFWV DQG HFRQRPLF GHYHORSPHQW H[SHUWV KRQRUHG WKH HIIRUW ZLWK D ´%XLOGLQJ %URRNO\Q $ZDUGµ WKDW \HDU IURP WKH %URRNO\Q &KDPEHU RI &RPPHUFH

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

7KH LQFXEDWRU QRZ IXOO RIIHUV VWDUW XSV DQG HDUO\ VWDJH ELRWHFK FRPSDQLHV ZHW GU\ ODE DQG RIÀFH VSDFH UDQJLQJ IURP WR VTXDUH IHHW GHVLJQHG WR DOORZ FRPSDQLHV WR DGG VSDFH DV WKH\ JURZ %HFDXVH WKH UHVHDUFK SDUN LV ORFDWHG LQ DQ (PSLUH =RQH ³ DQ DUHD GHVLJQDWHG E\ WKH VWDWH IRU HFRQRPLF UHYLWDOL]DWLRQ ³ ELRWHFKQRORJ\ ÀUPV FKRRVLQJ WR OHDVH LQ 'RZQVWDWH·V LQFXEDWRU DUH HOLJLEOH IRU ÀQDQFLDO LQFHQWLYHV IRU GHYHORSPHQW DQG JURZWK 7HQDQWV KDYH DFFHVV WR XQLYHUVLW\ VFLHQWLVWV VWXGHQWV UHVHDUFK IDFLOLWLHV DQG VSHFLDOL]HG HTXLSPHQW ZKLOH IDFXOW\ PHGLFDO DQG JUDGXDWH VWXGHQWV DW 'RZQVWDWH EHQHÀW IURP RSSRUWXQLWLHV WR ZRUN DFWLYHO\ RQ HQWUHSUHQHXULDO SURMHFWV QH[W GRRU WR WKH VFKRRO 7KH JUDQG SODQ HQYLVLRQHG IRU D VTXDUH IRRW IDFLOLW\ LV H[SHFWHG WR EH ÀQLVKHG LQ -XQH ZLWK WKH DGGLWLRQ RI DQRWKHU VTXDUH IHHW RI ODERUDWRU\ DQG RIÀFH VSDFH LQFOXGLQJ URRPV DQG VDWHOOLWH FRPPXQLFDWLRQV WHFKQRORJ\ GHVLJQHG WR IDFLOLWDWH LQWHUDFWLRQV EHWZHHQ LQYHQWRUV WHFKQRORJ\ FRPSDQLHV DQG YHQWXUH FDSLWDO ÀUPV HOVHZKHUH LQ 1HZ <RUN DQG DURXQG WKH JOREH

*LYLQJ PDWXULQJ ELRWHFK ÀUPV URRP WR JURZ 3KRWR FUHGLW 5\DQ %UHQL]HU 3KRWRJUDSK\ FRXUWHV\ RI ,$9,

7KH ROG %URRNO\Q $UP\ 7HUPLQDO UHERUQ

'RZQVWDWH·V LQLWLDO LQWHUHVW FHQWHUHG RQ SURYLGLQJ DIIRUGDEOH VSDFH IRU VWDUW XSV WKDW FRXOG SDUWLFXODUO\ LQYROYH IDFXOW\ %XW DV WKH SURFHVV PDWXUHG LW EHFDPH FOHDU WR SURMHFW OHDGHUVKLS WKDW WKHUH ZDV D PXFK JUHDWHU QHHG DW SOD\ ´:KHQ ZH VWDUWHG , ZRXOG PHHW IRU EUHDNIDVW HYHU\ VL[ ZHHNV RU VR ZLWK WKH GLUHFWRU RI $XGXERQ WKH LQFXEDWRU DW &ROXPELD µ UHFDOOHG &UDPHU ´$QG LW ZDV DSSDUHQW IURP RXU GLVFXVVLRQV WKDW ÀUPV DV WKH\ RXWJUHZ WKHLU VSDFH LQ WKH LQFXEDWRU ZHQW WR 1HZ -HUVH\ ,W ZDV FOHDU WKDW ZH QHHGHG D VSDFH ZKHUH ELRWHFK ÀUPV FRXOG JR WR ZKHQ WKH\ JURZ VR WKDW DV WKH\ JHW VXFFHVVIXO WKH\ GRQ·W PRYH RXW WR VRPHRQH HOVH·V WD[ EDVH µ :LWK WKH LQFXEDWRU IXOO DQG URRP IRU H[SDQVLRQ WKHUH WRR OLPLWHG 'RZQVWDWH RIÀFLDOV EHJDQ WR ORRN DURXQG IRU ODUJHU VSDFH WKDW FRXOG DFFRPPRGDWH JURZLQJ ÀUPV DV WKH\ WUDQVLWLRQHG WRZDUG PDQXIDFWXULQJ 7R IDFLOLWDWH WKLV HIIRUW WKH %URRNO\Q %LRWHFKQRORJ\ &RQVRUWLXP ZDV IRUPHG MRLQLQJ 'RZQVWDWH ZLWK WKH %URRNO\Q (FRQRPLF 'HYHORSPHQW &RUS %URRNO\Q %RURXJK 3UHVLGHQW·V 2IÀFH %URRNO\Q &KDPEHU RI &RPPHUFH %URRNO\Q (PSLUH =RQHV 1HZ <RUN &LW\ (FRQRPLF 'HYHORSPHQW &RUS (PSLUH 6WDWH 'HYHORSPHQW &RUS 1HZ <RUN %LRWHFKQRORJ\ $VVRFLDWLRQ 3À]HU &RQ (GLVRQ DQG .H\6SDQ 7KH JURXS FRQVLGHUHG D QXPEHU RI SRVVLEOH (PSLUH =RQH VLWHV XQWLO D YDVW DUFKLWHFWXUDO PDUYHO HPHUJHG DV WKH VWURQJ IDYRULWH IRU DQ H[SDQGHG ELRWHFK IDFLOLW\ WKH %URRNO\Q $UP\ 7HUPLQDO 7KH %URRNO\Q $UP\ 7HUPLQDO %$7 LV D DFUH &DVV *LOEHUW GHVLJQHG IDFLOLW\ RQ WKH %URRNO\Q ZDWHUIURQW ZKLFK VHUYHG DV WKH FRXQWU\·V ODUJHVW PLOLWDU\ VXSSO\ EDVH WKURXJK :RUOG :DU ,, ,W KROGV VRPH IRXU PLOOLRQ VTXDUH IHHW RI

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


FRPPHUFLDO VSDFH YHU\ DGDSWDEOH IRU ELRWHFK QHHGV ZLWKLQ D VHFXUH FRPSOH[ DFFHVVLEOH E\ SXEOLF DQG SULYDWH WUDQVSRUWDWLRQ WR DOO 1HZ <RUN &LW\ PHGLFDO DQG UHVHDUFK LQVWLWXWLRQV ,Q -XQH ZRUNLQJ ZLWK WKH 1HZ <RUN &LW\ (FRQRPLF 'HYHORSPHQW &RUSRUDWLRQ DQG WKH 681< 5HVHDUFK )RXQGDWLRQ 'RZQVWDWH LQFRUSRUDWHG DQ DGGLWLRQDO QRQSURÀ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ÀUVW ELRWHFKQRORJ\ WHQDQW WR H[SDQG IURP WKH 'RZQVWDWH LQFXEDWRU ZKHUH LW VWLOO UHWDLQV VSDFH WR WKH %URRNO\Q $UP\ 7HUPLQDO ZKHUH LW RFFXSLHV 3KRWR FUHGLW /X] %DUERVD ,$9, VTXDUH IHHW 7KH ,$9, 'RZQVWDWH¶V ,$9, 9DFFLQH 'HVLJQ DQG 9DFFLQH 'HVLJQ DQG 'HYHORSPHQW 'HYHORSPHQW /DE /DE ³ WKH RQO\ IDFLOLW\ RI LWV NLQG LQ WKH ZRUOG ³ LV VWDIIHG ZLWK VFLHQWLVWV IURP WRS UXQJ DFDGHPLF SURJUDPV DQG OHDGLQJ YDFFLQH DQG ELRWHFKQRORJ\ FRPSDQLHV DQG GHVLJQHG WR EULGJH WKH JDS EHWZHHQ ODERUDWRU\ UHVHDUFK DQG SURGXFW GHYHORSPHQW E\ FRQFHLYLQJ FRPSDULQJ SULRULWL]LQJ DQG DGYDQFLQJ SURPLVLQJ $,'6 YDFFLQH VWUDWHJLHV ´+DYLQJ ,$9, LQ %LR%$7 KDV EHHQ OLNH KDYLQJ D PRGHO KRPH LQ D QHZ GHYHORSPHQW µ &UDPHU GHVFULEHG ´,W·V WKH H[DPSOH WKDW UHDOO\ VKRZV WKH LGHD RI ZKDW FDQ EH GRQH µ ,$9, KDV DOVR SURYLGHG LPSRUWDQW ZRUN RSSRUWXQLWLHV IRU VWXGHQWV IURP 'RZQVWDWH IRXU 3K ' DQG 0 ' 3K ' VWXGHQWV KDYH EHHQ HQJDJHG LQ WKLV ZRUN +2. D JOREDO DUFKLWHFWXUDO ÀUP ZLWK H[SHUWLVH LQ ELRVFLHQFH LV GHVLJQLQJ WKH H[SDQVLRQ RI %LR%$7 ZKLFK LV SURFHHGLQJ LQ VWDJHV WRZDUG D WRWDO RI VRPH VTXDUH IHHW 3KDVH ,, LQYROYLQJ VRPH VTXDUH IHHW LV XQGHU ZD\ DQG H[SHFWHG WR EH FRPSOHWHG ODWHU LQ 6SDFHV IURP VTXDUH IHHW WR PRUH WKDQ VTXDUH IHHW ZLOO HYHQWXDOO\ EH DYDLODEOH IRU OHDVH WR DFFRPPRGDWH D UDQJH RI WHQDQW QHHGV ´%LR%$7 ZDV WKH QH[W ORJLFDO VWHS µ VDLG 3UHVLGHQW /D5RVD DW D UHFHQW HYHQW WR PDUN SURJUHVV DW WKH FRPSOH[ ´'RZQVWDWH·V $GYDQFHG %LRWHFKQRORJ\ ,QFXEDWRU ZKLFK SURYLGHV VSDFH IRU VWDUW XS FRPSDQLHV KDV DOUHDG\ DGGHG RYHU KLJK SD\LQJ MREV WR WKH 1HZ <RUN HFRQRP\ %LR%$7·V ODERUDWRU\ RIÀFH DQG PDQXIDFWXULQJ VSDFH RQ WKH %URRNO\Q ZDWHUIURQW LV GHVLJQHG IRU ODUJHU FRPSDQLHV DQG RIIHUV DIIRUGDEOH UHQWV FRQYHQLHQW WUDQVSRUWDWLRQ DQG DFFHVV WR DOO WKH OHDGLQJ DFDGHPLF UHVHDUFK FHQWHUV LQ WKH FLW\ :H DUH SURMHFWLQJ WKDW %LR%$7 ZLOO FUHDWH DQ DGGLWLRQDO MREV µ[LL

´:LWK WKH LQFXEDWRU WKH\ FUHDWHG VRPHWKLQJ UHDOO\ VSHFLDO RXW RI QRWKLQJ LW ZDV D EDUUHQ ZDVWHODQG $OUHDG\ WKH\ KDYH EURXJKW DOO NLQGV RI SHRSOH WR %URRNO\Q ZKR QHYHU ZRXOG KDYH FRPH RWKHUZLVH DQG WKH\ KDYH PDGH D SRLQW LQ KLULQJ DQG FRQWUDFWLQJ ORFDOO\ 7KH UHDOO\ VLJQLÀFDQW LPSDFWV ZLOO KDSSHQ DV WKHVH KLJK WHFK ÀUPV DUH DEOH WR JURZ DQG WR VWD\ LQ 1HZ <RUN EHFDXVH RI %LR%$7 EUHDWKLQJ OLIH LQ DQ DUHD ODUJHO\ HPSW\ IRU PRUH WKDQ \HDUV :KDW 681< 'RZQVWDWH·V EHHQ GRLQJ IRU WKH FLW\ HFRQRP\ ³ HVSHFLDOO\ DV D SXEOLF XQLYHUVLW\ ³ KDV MXVW EHHQ DPD]LQJ $QG QRW UHFRJQL]HG HQRXJK µ ² -RDQ %DUWRORPHR SUHVLGHQW %URRNO\Q (FRQRPLF 'HYHORSPHQW &RUSRUDWLRQ

'HYHORSLQJ D ELRWHFK ZRUNIRUFH /HDGHUV RI WKH ELRWHFK LQLWLDWLYH DW 'RZQVWDWH EHFDPH LQFUHDVLQJO\ DZDUH WKDW IRU WKH HIIRUW WR ZRUN ORQJHU WHUP ÀUPV ZRXOG UHTXLUH DFFHVV WR D EHWWHU WUDLQHG ZRUNIRUFH DORQJ ZLWK DIIRUGDEOH VSDFH LQ ZKLFK WR IRUP DQG

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

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·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¶V %LR%$7 ,QF

:RUNIRUFH GHYHORSPHQW SURJUDPV WKDW SUHSDUH FROOHJH DQG JUDGXDWH VWXGHQWV WR ZRUN LQ WKH ELRWHFK LQGXVWU\ DUH HVVHQWLDO WR GHYHORS DFDGHPLF DQG LQGXVWU\ SDUWQHUVKLSV VLQFH WKH\ DOLJQ JUDGXDWH WUDLQLQJ ZLWK LQGXVWU\ QHHGV HQFRXUDJH HQWUHSUHQHXUVKLS DQG KHOS SUHSDUH IXWXUH OHDGHUV RI WKH LQGXVWU\ ´+DYLQJ WKH SUHSDUHG ZRUNIRUFH LV QRW RQO\ VXSHU LPSRUWDQW IRU WKH ÀUPV µ &UDPHU DGGV ´7KH ZRUNIRUFH FRPSRQHQW LV D WHUULÀF ZD\ WR OLQN WKLV LQLWLDWLYH EDFN WR WKH EHQHÀW RI WKH WD[SD\HUV ZKR SURYLGH VRPH RI WKH VHHG PRQH\ WR KHOS WKHVH ÀUPV WR JURZ LQ WKH ÀUVW SODFH ,W SURYLGHV WKH ZRUNIRUFH IRU WKH IXWXUH DQG DOVR WLHV WKH EHQHÀWV EDFN WR WKH FRPPXQLW\ µ

'RHV WKH ELRWHFK IXWXUH EHORQJ WR QDQR" 1RWLQJ WKDW QDQRWHFKQRORJ\ LV OHDGLQJ WR UDSLGO\ GHYHORSLQJ PHGLFLQHV DQG UDGLFDO FKDQJHV DFURVV WKH PHGLFDO ÀHOG DQG ZLWK WKH 8 6 PDUNHW IRU QDQRWHFKQRORJ\ PHGLFDO SURGXFWV SURMHFWHG WR UHDFK ELOOLRQ WKLV \HDU DQG WR GRXEOH RYHU WKH QH[W ÀYH \HDUV 'RZQVWDWH 0HGLFDO &HQWHU DQG WKH &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ &16( RI WKH 8QLYHUVLW\ DW $OEDQ\ UHFHQWO\ MRLQHG WR DQQRXQFH WKH HVWDEOLVKPHQW RI D GXDO GHJUHH SURJUDP LQ ERWK PHGLFLQH DQG QDQRVFDOH VFLHQFH DQG HQJLQHHULQJ WR IRVWHU LQQRYDWLRQV GHVLJQHG WR WUDQVIRUP DQG HQKDQFH WKH SUHYHQWLRQ GLDJQRVLV DQG WUHDWPHQW RI GLVHDVH 7KH SULQFLSDO WKUXVW RI WKH LQLWLDWLYH LV LQ WKH GHYHORSPHQW RI D MRLQW 0 ' 3K ' SURJUDP WR HGXFDWH UHVHDUFK SK\VLFLDQV FDSDEOH RI GULYLQJ QDQRWHFKQRORJ\ DSSOLFDWLRQV LQ PHGLFLQH DQG UHGHÀQLQJ WKH VWDQGDUGV RI KHDOWK FDUH DV 3UHVLGHQW /D5RVD GHVFULEHG %XW WKH LQLWLDWLYH KDV HFRQRPLF GHYHORSPHQW LPSOLFDWLRQV DV ZHOO $ODLQ ( .DOR\HURV VHQLRU YLFH SUHVLGHQW DQG FKLHI H[HFXWLYH RIÀFHU RI &16( VD\V WKDW ´WKLV ÀUVW RI LWV NLQG SURJUDP ZLOO KDYH VLJQLÀFDQW LPSOLFDWLRQV IRU DGGUHVVLQJ RQH RI WKH QDWLRQ·V PRVW FULWLFDO VW

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


&HQWXU\ FKDOOHQJHV E\ FDWDO\]LQJ WKH GHYHORSPHQW RI JDPH FKDQJLQJ PHGLFDO WHFKQRORJLHV DW D UHGXFHG FRVW ZKLOH FRQFXUUHQWO\ EXLOGLQJ WKH KLJKO\ VNLOOHG ZRUNIRUFH DQG UREXVW WHFKQRORJLFDO FDSDELOLWLHV QHFHVVDU\ IRU 1HZ <RUN WR FDSLWDOL]H RQ WKH IDVW JURZLQJ QDQRPHGLFLQH VHFWRU µ[LLL 7KH MRLQW GHJUHH SURJUDP LQ QDQRPHGLFLQH PD\ ZHOO KROG LPSRUWDQW LPSOLFDWLRQV IRU WKH GHYHORSPHQW RI QHZ ÀUPV DQG WHFKQRORJLHV LQ VSDFHV EHLQJ GHYHORSHG DW WKH 'RZQVWDWH $GYDQFHG %LRWHFKQRORJ\ ,QFXEDWRU DQG SHUKDSV HVSHFLDOO\ DW %LR%$7

/RRNLQJ EDFN ORRNLQJ DKHDG 1HZ <RUN &LW\ LV D QRWDEO\ GLIÀFXOW HQYLURQPHQW LQ ZKLFK WR RSHUDWH DQG WKH ERG\ RI IDLOHG HFRQRPLF GHYHORSPHQW HIIRUWV LQYROYLQJ WHFK ÀUPV LV OHJLRQ :KDW·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ÀUPV LV HVWDEOLVKHG JURZLQJ DQG QRW PHW E\ WKH PDUNHW 7KHUH DUH FRPSHOOLQJ SXEOLF EHQHÀWV JHQHUDWHG E\ UHWDLQLQJ HDUO\ VWDJH ELRVFLHQFH FRPSDQLHV DVVRFLDWHG ZLWK 1HZ <RUN·V WRS DFDGHPLF PHGLFDO DQG UHVHDUFK LQVWLWXWLRQV DWWUDFWLQJ FRPSDQLHV IURP HOVHZKHUH DQG SURYLGLQJ HGXFDWLRQDO SURJUDPV WR VHUYLFH WKLV JURZLQJ LQGXVWU\ 7KH HIIRUWV ZHUH DOVR ZHOO WLPHG LQ JHWWLQJ XQGHUZD\ DV WKH ELRWHFK VHFWRU EORVVRPV DQG DUH H[SHFWHG WR FRQWULEXWH HYHQ PRUH VLJQLÀFDQWO\ WR HFRQRPLF JURZWK LQ WKH \HDUV DKHDG

'RZQVWDWH¶V LQFXEDWRU EXLOGLQJ

7KH IXQGDPHQWDO DSSURDFK WDNHQ WR WKH YDULRXV LQLWLDWLYHV ³ RQH PLJKW FDOO LW ´LQQRYDWLYH LQFUHPHQWDOLVPµ ³ VXUHO\ VHHPV WR KDYH EHHQ VPDUW 7KH VWUDWHJLF GHFLVLRQ WR PRYH IRUZDUG LQ VWDJHV DV TXLFNO\ DV IXQGLQJ DQG GHPDQG DOORZHG SHUPLWWHG WKH SURMHFWV WR KDYH GHPRQVWUDEOH HYLGHQFH RI SURJUHVV WR VKRZ IXQGHUV DQG FOLHQWV DQG HQDEOHG WKHP WR DYRLG WKH WUDS RI RYHU H[WHQVLRQ DQG GHEW WKDW FDQ NLOO VXFK HIIRUWV EHIRUH WKH\ KDYH D FKDQFH WR EHFRPH YLDEOH %XW WKH YLWDO LQJUHGLHQWV WR 'RZQVWDWH·V DFFRPSOLVKPHQWV FRPH GRZQ WR WKH SDUWLFXODU FRPELQDWLRQ RI SHRSOH DQG FXOWXUH $ QXFOHXV RI FRPPLWWHG SHUVLVWHQW SHRSOH VWRRG DW WKH FRUH RI 'RZQVWDWH·V HIIRUWV DQG WKH\ ZRUNHG ZLWKLQ DQ RUJDQL]DWLRQDO FXOWXUH WKDW HQFRXUDJHG DQG YDOXHG HQWUHSUHQHXUVKLS ³ QRW MXVW LQ WKH SULYDWH ÀUPV WKH\ KRSHG WR IRUP RU DWWUDFW WR WKHLU QHZO\ GHYHORSHG ODE VSDFH EXW DPRQJ WKH SURMHFW VWDII DV ZHOO ´, KDG QR NQRZOHGJH RI WKH JRYHUQPHQW IXQGLQJ SURFHVV 7KDW ZDV FRPSOHWHO\ QHZ WR PH µ &UDPHU UHFDOOV ´+HUH DW 'RZQVWDWH LI \RX KDYH D JRDO FDQ JHW RWKHUV RQ ERDUG DQG DUH ZLOOLQJ WR GR WKH ZRUN WR JHW WKHUH LW LV ZHOFRPHG 1R RQH LV JRLQJ WR VD\ ¶VRUU\ QRW \RXU MRE 'RQ·W GR WKDW ZRUN · :H KDG DQ LGHD 7KHUH ZHUH FOHDU QHHGV $QG ZH ZHUH H[WUHPHO\ IRUWXQDWH WR ÀQG VXSSRUW DPRQJ HOHFWHG RIÀFLDOV ³ ZH ZHUHQ·W HYHQ LQ WKHLU GLVWULFWV ³ ZKR KDG DQG FRXOG VKDUH D YLVLRQ D VHQVH RI YDOXH DQG SXUSRVH LQ WKLV ZRUN DQG ZKR KHOSHG WR EXLOG DZDUHQHVV DQG SURYLGH VXSSRUW µ 7KHUH ZDV ORRNLQJ EDFN RQ LW D ´IDLU DPRXQW RI XSVWUHDP VZLPPLQJ µ LQ &UDPHU·V ZRUGV (DVW )ODWEXVK DQG WKH %URRNO\Q ZDWHUIURQW PD\ QRW QHFHVVDULO\ EH HYHU\RQH·V ÀUVW LGHD RI WKH PRVW OLNHO\ ORFDWLRQ IRU FXWWLQJ HGJH ELRWHFK %XW LQVWHDG RI SUHGHWHUPLQLQJ RXWFRPHV ´WKH SURFHVV ZDV RQH RI DOORZLQJ H[FHOOHQFH WR JURZ XS IURP DQ\ZKHUH µ &UDPHU VDLG $QG WKDW·V D OHVVRQ DQG OHJDF\ WKDW FRXOG EHQHÀW JHQHUDWLRQV RI 1HZ <RUNHUV WR FRPH

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

$7 :25. :

6W 6WRQ\ %URRN·V ,QQRYDWLRQ )RRWSULQW )URP ; 5D\V WR 6XSHUFRPSXWLQJ ) U )RUP )RUPHUO\ RQH RI WKH QDWLRQ·V PRVW GHIHQVH GHSHQGHQW UHJLRQV /RQJ ,VODQG LV LQ WUDQVLWLRQ WR D GLYHUVLÀHG KLJK WHFK HFRQRP\ RI FRPSDQLHV ODUJH DQG VPDOO OHG WUDQ E\ LQIRUPDWLRQ WHFKQRORJ\ DQG ELRWHFK ZLWK FOHDQWHFK DQ HPHUJLQJ SURPLVH E\ LQ DQG VWLOO VXSSRUWHG E\ D UHGXFHG EXW YLEUDQW QDWLRQDO VHFXULW\ VHFWRU DQG $V WKH ,VODQG·V RQO\ PDMRU UHVHDUFK XQLYHUVLW\ 6WRQ\ %URRN KDV D EUHDGWK RI $V W HFRQRPLF GHYHORSPHQW DQG LQQRYDWLRQ SURJUDPV WR PDWFK ³ ZKDW LW VD\V LV HFRQ ´RQH RI WKH QDWLRQ·V PRVW FRPSUHKHQVLYH VXLWHV RI HFRQRPLF GHYHORSPHQW SURJUDPV µ 7KH RIIHULQJV UDQJH IURP 5 ' FROODERUDWLRQV DQG IDVW WXUQDURXQG WHFKQRORJ\ DVVLVWDQFH WR LQFXEDWLRQ DQG HQWHUSULVH GHYHORSPHQW DVVLVWDQFH WR PDQDJHPHQW DQG ZRUNIRUFH GHYHORSPHQW 6WRQ\ %URRN 9LFH 3UHVLGHQW IRU (FRQRPLF 'HYHORSPHQW <DFRY 6KDPDVK ZKR LV DOVR GHDQ RI WKH &ROOHJH RI (QJLQHHULQJ DQG $SSOLHG 6FLHQFHV VD\V WKH REMHFWLYH LV WR RIIHU VXSSRUW WR EXVLQHVVHV QRW RQO\ RI DQ\ VL]H EXW DW DQ\ VWDJH RI WKHLU GHYHORSPHQW

-RKQ *ULI¿Q 6WRQ\ %URRN 8QLYHUVLW\ 2I¿FH RI &RPPXQLFDWLRQV

6WRQ\ %URRN 8QLYHUVLW\¶V &HQWHU RI ([FHOOHQFH LQ :LUHOHVV DQG ,QIRUPDWLRQ 7HFKQRORJ\

7KH XQLYHUVLW\ LWVHOI FDOOV WKLV D ´FUDGOH WR )RUWXQH µ DSSURDFK ,WV (FRQRPLF 'HYHORSPHQW &RXQFLO LV IRUPDOL]LQJ WKH FRRUGLQDWLRQ RI LWV YDULRXV DFFHVV SRLQWV IRU EXVLQHVVHV DQG HQWUHSUHQHXUV WR PDNH LW SRVVLEOH IRU WKHP WR WDNH DGYDQWDJH RI WKH IXOO UDQJH RI WKH XQLYHUVLW\·V H[SHUWLVH 7KH XQLYHUVLW\·V VWDQGLQJ DV D VFLHQFH DQG UHVHDUFK SRZHUKRXVH SURYLGHV WKH FULWLFDO IRXQGDWLRQ IRU WKHVH SURJUDPV %XVLQHVVHV FDQ SDUWQHU ZLWK IDFXOW\ DQG UHVHDUFKHUV ZKR UDQN VHFRQG QDWLRQDOO\ LQ SHU FDSLWD UHVHDUFK SURGXFWLYLW\ DQG ZKR FDQ ERDVW RI PRUH WKDQ SDWHQWV DQG H[HFXWHG OLFHQVHV GHULYHG IURP PRUH WKDQ LQYHQWLRQ GLVFORVXUHV DV ZHOO DV WKUHH 1REHO 3UL]HV WKH 1DWLRQDO 0HGDO RI 6FLHQFH DQG WKH 1DWLRQDO 0HGDO RI 7HFKQRORJ\ 6WRQ\ %URRN·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

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


$ FRPPXQLFDWLRQV UHYROXWLRQ 7KH FURZQ MHZHO SHUKDSV LV 6WRQ\ %URRN·V &HQWHU RI ([FHOOHQFH LQ :LUHOHVV DQG ,QIRUPDWLRQ 7HFKQRORJ\ LQLWLDWHG E\ 1HZ <RUN 6WDWH VL[ \HDUV DJR WR WDNH DGYDQWDJH RI /RQJ ,VODQG·V OHDGHUVKLS UROH LQ WKH VXUJLQJ FRPPXQLFDWLRQV LQGXVWU\ ,Q 0DUFK WKH FHQWHU DOVR NQRZQ DV &(:,7 PRYHG LQWR D QHZ QH[W JHQHUDWLRQ UHVHDUFK IDFLOLW\ ZKLFK KDV VTXDUH IHHW RI ODE VSDFH :LWK PRUH WKDQ DVVRFLDWHG IDFXOW\ PHPEHUV DQG DOPRVW JUDGXDWH VWXGHQWV WKH FHQWHU·V YLVLRQ LV WR EHFRPH UHFRJQL]HG DV D ZRUOG OHDGHU LQ ZLUHOHVV DQG ,7 FRQGXFW ÀUVW FODVV LQWHUGLVFLSOLQDU\ UHVHDUFK LQ WKH VWLOO HPHUJLQJ WHFKQRORJLHV RI WKH LQIRUPDWLRQ DJH DGGUHVV WKH VKRUWDJH RI VNLOOHG WHFKQRORJ\ ZRUNHUV DQG IRVWHU QHZ HQWHUSULVHV 7KH FHQWHU KDV GHYHORSHG SDUWQHUVKLSV ZLWK ,%0 DQG 0RWRUROD DQG &$ 7HFKQRORJLHV DPRQJ RWKHUV 2QJRLQJ UHVHDUFK SURMHFWV DQG FRPPHUFLDOL]DWLRQ HIIRUWV LQFOXGH VXFK À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

$ SODWIRUP IRU VWDUWLQJ QHZ EXVLQHVVHV 7KUHH IRUPDO LQFXEDWRUV DW 6WRQ\ %URRN SURYLGH ÁHGJOLQJ EXVLQHVVHV ZLWK VSDFH DQG VXSSRUW DV WKH\ WUDQVLWLRQ IURP LGHD WR PDWXUH FRPSDQLHV DEOH WR VWDQG RQ WKHLU RZQ 7KH /RQJ ,VODQG +LJK 7HFKQRORJ\ ,QFXEDWRU /,+7, DQ LQFXEDWRU DW &(:,7 DQG 7KH ,QFXEDWRU DW &DOYHUWRQ WRJHWKHU HQFRPSDVV PRUH WKDQ VTXDUH IHHW EHWZHHQ WKHP DQG VHUYH PRUH WKDQ WHQDQW FRPSDQLHV HPSOR\LQJ QHDUO\ LQGLYLGXDOV

6WRQ\ %URRN·V UHVRXUFHV LQFOXGH PRUH WKDQ VSHFLDOL]HG UHVHDUFK IDFLOLWLHV WZR 1HZ <RUN 6WDWH &HQWHUV IRU $GYDQFHG 7HFKQRORJ\ WKUHH LQFXEDWRUV IRXU ZLWK WKH LPPLQHQW FRPSOHWLRQ RI WKH $GYDQFHG (QHUJ\ 5HVHDUFK DQG 7HFKQRORJ\ &HQWHU DQG UHVHDUFK FHQWHUV WDUJHWHG WR HQHUJ\ ZLUHOHVV DQG LQIRUPDWLRQ WHFKQRORJ\ DQG ELRPHGLFDO VFLHQFHV

6LQFH LWV RSHQLQJ LQ WKH /,+7, KDV KHOSHG PRUH WKDQ EXVLQHVVHV JHW VWDUWHG )RUW\ IRXU FRPSDQLHV KDYH JUDGXDWHG VXFFHVVIXOO\ IURP WKH /,+7, SURJUDP FUHDWLQJ RYHU MREV EHWZHHQ WKHP 6WRQ\ %URRN VD\V ,Q D VWXG\ E\ WKH 1DWLRQDO %XVLQHVV ,QFXEDWLRQ $VVRFLDWLRQ UDQNHG /,+7, DV WKH QXPEHU RQH PL[HG WHFKQRORJ\ LQFXEDWRU LQ WKH QDWLRQ &XUUHQW LQFXEDWRU FRPSDQLHV LQFOXGH &RUQHUVWRQH 3KDUPDFHXWLFDOV ZKLFK KDV UHFHLYHG )'$ DSSURYDO IRU IDVW WUDFN 3KDVHV DQG FOLQLFDO WULDOV RI D QRYHO FDQFHU GUXJ EDVHG RQ D 6WRQ\ %URRN WHFKQRORJ\ $PRQJ WKH ÀUVW DQFKRU FRPSDQLHV DQG ÀUVW JUDGXDWHV ZHUH 5HQDLVVDQFH 7HFKQRORJLHV //& PDQDJHU RI WKH ZRUOG·V PRVW VXFFHVVIXO KHGJH IXQG DQG &ROODERUDWLYH /DERUDWRULHV D VSHFLDOW\ PDWHULDOV IRUPXODWRU DQG PDQXIDFWXUHU RZQHG E\ %$6) 0HVR6FULEH 7HFKQRORJLHV ZDV IRXQGHG LQ WR FRPPHUFLDOL]H WKH 'LUHFW :ULWH PDQXIDFWXULQJ WHFKQRORJ\ GHYHORSHG DW 6WRQ\ %URRN 0HVRVFRSLF KDV JUDGXDWHG DQG LWV FRUSRUDWH RIÀFH DQG (DVW &RDVW GHYHORSPHQW ODE DUH ORFDWHG LQ 6DLQW -DPHV 1 < $QRWKHU UHFHQW JUDGXDWH ;6% ,QF EDVHG XSRQ 6WRQ\ %URRN WHFKQRORJ\ DQG ORQJVWDQGLQJ FROODERUDWLRQV LV D SURYLGHU RI DXWRPDWHG GDWD PDQDJHPHQW VROXWLRQV WR YHU\ ODUJH IHGHUDO DQG FRPPHUFLDO FXVWRPHUV IRU LQIRUPDWLRQ UHWULHYDO GDWD FODVVLÀFDWLRQ PDVWHU GDWD PDQDJHPHQW DQG VXSSO\ FKDLQ RSWLPL]DWLRQ ;6% LV QRZ EDVHG LQ 6HWDXNHW 1 < ZKHUH LW KDV FRQWLQXHG WR JURZ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

6WRQ\ %URRN·V QHZHVW LQFXEDWRU ZLOO EH SDUW RI WKH $GYDQFHG (QHUJ\ 5HVHDUFK 7HFKQRORJ\ &HQWHU $(57& RSHQLQJ WKLV \HDU 7KH QHZ $(57& ZLOO IRFXV RQ LQQRYDWLYH ZD\V WR SURGXFH FOHDQ HQHUJ\ HQKDQFH HQHUJ\ SURGXFWLRQ IURP UHQHZDEOH VRXUFHV DQG ÀQG PRUH HIÀFLHQW ZD\V WR GLVWULEXWH DQG VWRUH HQHUJ\ ,Q DGGLWLRQ WR WKHVH IRUPDO ´EULFN DQG PRUWDUµ LQFXEDWRUV 6WRQ\ %URRN DOVR KDV DQ ´LQFXEDWRU ZLWKRXW ZDOOVµ SURJUDP DQG HQDEOHV EXVLQHVVHV DQG HQWUHSUHQHXUV WR UHQW VSDFH RQ FDPSXV

6WRQ\ %URRN 8QLYHUVLW\¶V $GYDQFHG (QHUJ\ 5HVHDUFK 7HFKQRORJ\ &HQWHU $(57&

6KDPDVK YLHZV WKLV VXLWH RI YDULRXV LQFXEDWRUV DV DQ HVVHQWLDO SDUW RI 6WRQ\ %URRN·V UHVHDUFK DQG HFRQRPLF GHYHORSPHQW PLVVLRQV ´(YHU\ RQH RI WKHVH LV DQ RSSRUWXQLW\ WR GHYHORS QHZ SDUWQHUVKLSV EHWZHHQ WKH XQLYHUVLWLHV LQGXVWULHV DQG JRYHUQPHQW µ KH VD\V

6WXGHQW HQWUHSUHQHXUVKLS

´(YHU\ RQH RI WKHVH LV DQ RSSRUWXQLW\ WR GHYHORS QHZ SDUWQHUVKLSV EHWZHHQ WKH XQLYHUVLWLHV LQGXVWULHV DQG JRYHUQPHQW µ ² <DFRY 6KDPDVK YLFH SUHVLGHQW IRU HFRQRPLF GHYHORSPHQW 6WRQ\ %URRN 8QLYHUVLW\

6WRQ\ %URRN SXUVXHV RWKHU HIIRUWV WR HQFRXUDJH HQWUHSUHQHXUVKLS ,WV '$5( 6WXGHQW (QWUHSUHQHXUVKLS &RPSHWLWLRQ DQQXDOO\ DZDUGV LQ SUL]H IXQGV WR ÁHGJOLQJ VWXGHQW UXQ EXVLQHVVHV 2I WKH ZLQQHUV WKXV IDU QLQH DUH VWLOO LQ EXVLQHVV LQ 1HZ <RUN 2QH UDLVHG D ORZ VHYHQ ÀJXUH SULYDWH SODFHPHQW LQYHVWPHQW LQ IRU DQ HIIRUW WR OLQN WKH ,QWHUQHW WR WKH FHOOSKRQH QHWZRUN·V ZRUOG RI WH[W PHVVDJLQJ $QRWKHU SURYLGHV 6DD6 6RIWZDUH DV D 6HUYLFH VFKHGXOLQJ VROXWLRQV IRU KHDOWK FDUH VHWWLQJV 1HZ <RUN 6WDWH 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU DGYLVHUV SURYLGH EXVLQHVV FRDFKLQJ IRU WKH VWXGHQWV DQG YROXQWHHU LQYHVWPHQW DQG EXVLQHVV SURIHVVLRQDOV DQG HQWUHSUHQHXUV MXGJH WKH ÀQDO SUHVHQWDWLRQV 6LQFH LWV LQFHSWLRQ LQ 6WRQ\ %URRN·V DQQXDO ,QQRYDWLRQ %RRW &DPS KDV DQDO\]HG LQYHQWLRQV ZLWK WKH KHOS RI YROXQWHHU FRPPXQLW\ SURIHVVLRQDOV IDFLOLWDWLQJ WKH IRUPDWLRQ RI IRXU QHZ VWDUW XS FRPSDQLHV 7KH %RRW &DPS KHOSV LQYHQWRUV RQ WKH IDFXOW\ DQG DW RWKHU /RQJ ,VODQG UHVHDUFK LQVWLWXWLRQV DQVZHU WZR EDVLF TXHVWLRQV &DQ WKLV WHFKQRORJ\ EHFRPH FRPPHUFLDOO\ YLDEOH DQG DP , WKH HQWUHSUHQHXU ZKR FDQ EULQJ LW WR PDUNHW" 6WRQ\ %URRN·V 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU 6%'& SURYLGHV LQ KRXVH H[SHUWLVH DQG FRQVXOWLQJ DW QR FRVW DV ZHOO DV OLQNV WR RWKHU UHVRXUFHV DQG IXQGLQJ )RU H[DPSOH WKH 6%'& ZRUNV ZLWK VPDOO ÀUPV DQG HQWUHSUHQHXUV WR DFFHVV RXWVLGH IXQGLQJ VXFK DV LQYHVWPHQW IURP WKH /RQJ ,VODQG $QJHO 1HWZRUN DQG YHQWXUH FDSLWDO ÀUPV 7KH 6%'&·V FRXQVHORUV ZRUN ZLWK HQWUHSUHQHXUV WR UHÀQH EXVLQHVV SODQV SUHSDUH DQG LPSURYH ÀQDQFLDO VWDWHPHQWV DQG SROLVK SUHVHQWDWLRQV ´SLWFKHVµ WR VHFXUH IXQGV IURP DQJHO LQYHVWRUV RU FRQYHQWLRQDO OHQGHUV 7KH RIÀFH VD\V LW KDV ZRUNHG ZLWK PRUH WKDQ FOLHQWV DQG KHOSHG WKHP DFFHVV PLOOLRQ LQ RXWVLGH ÀQDQFLQJ

$GYDQFHG WHFKQRORJ\ DVVLVWDQFH 6WRQ\ %URRN DOVR KRVWV WKH 63,5 SURJUDP 6WUDWHJLF 3DUWQHUVKLS IRU ,QGXVWULDO 5HVXUJHQFH D 681< LQLWLDWLYH WKDW SURYLGHV DGYDQFHG WHFKQRORJ\ DVVLVWDQFH WR 1HZ <RUN·V HQJLQHHULQJ DQG FRPSXWLQJ LQGXVWULHV %\ OLQNLQJ XQLYHUVLW\ HQJLQHHUV QRW RQO\ DW 6WRQ\ %URRN EXW DOVR DW WKH VFKRROV RI HQJLQHHULQJ DW %LQJKDPWRQ 8QLYHUVLW\ DQG WKH 8QLYHUVLW\ DW %XIIDOR ZLWK KLJK WHFK HPSOR\HUV 63,5 LV LQWHQGHG WR KHOS H[LVWLQJ ÀUPV DV ZHOO DV VWDUW XSV UHPDLQ FRPSHWLWLYH DQG H[SDQG WKHLU PDUNHWV 63,5 SURMHFWV UDQJH IURP 5 ' DQG SURWRW\SH GHYHORSPHQW WR WHVWLQJ DQG HYDOXDWLRQ IDLOXUH DQDO\VLV DQG PDQXIDFWXULQJ LPSURYHPHQW LQ LQGXVWU\ VHFWRUV IURP HOHFWURQLFV FRPSXWHU KDUGZDUH DQG VRIWZDUH WR HQHUJ\ ELRWHFKQRORJ\ DQG SDUWV VXSSOLHUV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


2QH UHSUHVHQWDWLYH 63,5 SURMHFW KHOSHG D VPDOO EXVLQHVV SDUWQHU GHDO ZLWK WKH WKUHDWHQHG ORVV RI EXVLQHVV IURP RQH RI LWV ODUJHVW FXVWRPHUV 7KH MRE LQYROYHG RQ VLWH WHVWLQJ DQG VDPSOH FROOHFWLRQ E\ PDWHULDOV HQJLQHHUV DQG DQDO\VLV RI WKH VDPSOHV LQ FDPSXV ODEV DQG DW WKH 1DWLRQDO 6\QFKURWURQ /LJKW 6RXUFH DW %URRNKDYHQ 1DWLRQDO /DERUDWRU\ $IWHU UHYLHZLQJ WKH UHVXOWLQJ UHSRUW D ODUJH VXSSOLHU WR WKH VPDOOHU 63,5 SDUWQHU EXVLQHVV DFNQRZOHGJHG WKDW LW KDG EHHQ SURYLGLQJ LQDGHTXDWH PDWHULDOV DQG FRUUHFWHG WKH ÁDZV $OO WROG 63,5 DW 6WRQ\ %URRN VD\V LW KDV DVVLVWHG PRUH WKDQ 1HZ <RUN FRPSDQLHV 3URIHVVLRQDO ZRUNIRUFH GHYHORSPHQW LV DGYDQFHG WKURXJK SURJUDPV RI WKH &RUSRUDWH (GXFDWLRQ DQG 7UDLQLQJ &(7 RIÀFH RI WKH 6WRQ\ %URRN 8QLYHUVLW\ &HQWHU IRU (PHUJLQJ 7HFKQRORJLHV &(7 SDUWQHUV ZLWK EXVLQHVV WR SURYLGH WDUJHWHG WUDLQLQJ LQ PDQ\ DUHDV LQFOXGLQJ /((' SURMHFW PDQDJHPHQW PDUNHWLQJ DQG OHDGHUVKLS 7KH FHQWHU RIIHUV SURJUDPV UDQJLQJ IURP FHUWLÀFDWHV WR DQ 0 6 LQ 7HFKQRORJ\ 0DQDJHPHQW

-RKQ *ULI¿Q 6WRQ\ %URRN 8QLYHUVLW\ 2I¿FH RI &RPPXQLFDWLRQV

5HVHDUFK DW 6WRQ\ %URRN 8QLYHUVLW\

7R EXLOG RQ WKLV UHFRUG RI DFFRPSOLVKPHQW 6WRQ\ %URRN LV ZRUNLQJ WR IRUPDOL]H DQG VWUHQJWKHQ OLQNDJHV DPRQJ WKHVH SURJUDPV DQG ZLWK ERWK LQWHUQDO DQG H[WHUQDO SDUWQHUV WR FUHDWH D V\VWHPDWLF SURJUDPPDWLF SURFHVV IRU FRQWLQXLQJ UHJLRQDO LQQRYDWLRQ DQG HFRQRPLF VXVWDLQDELOLW\

6WRQ\ %URRN 8QLYHUVLW\¶V &HQWHU IRU %LRHQJLQHHULQJ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

$7 :25. :

%L %LQJKDPWRQ 8QLYHUVLW\ 6WUHQJWKHQLQJ WKH 6RXWKHUQ 7LHU·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´$ NH\ DGYDQWDJH LV WKDW DOO WKLV LV XQGHU RQH URRI µ VD\V 0DU\ %HWK &XUWLQ DVVRFLDWH GLUHFWRU RI 6 ,3 ´&RPSDQLHV FDQ VKDUH WKH XVH RI HTXLSPHQW UDWKHU WKDQ EHLQJ OLPLWHG WR ZKDW WKH\ RZQ WKHPVHOYHV µ

7RROV IRU WHVWLQJ DQG GHVLJQ 7KH $'/ KDV DPRQJ RWKHU WKLQJV WZR KLJK YDFXXP VFDQQLQJ HOHFWURQ PLFURVFRSHV D ÀHOG HPLVVLRQ WUDQVPLVVLRQ HOHFWURQ PLFURVFRSH WKHUPDO DQDO\VLV HTXLSPHQW WKDW LQFRUSRUDWHV D PDVV VSHFWURPHWHU DQ DWRPLF IRUFH PLFURVFRSH DQ ; UD\ LPDJLQJ V\VWHP ZLWK &7 VFDQQHU IRU QRQ GHVWUXFWLYH LPDJLQJ WZR ODVHU VFDQQLQJ FRQIRFDO PLFURVFRSHV DQG D VHOHFWLRQ RI RWKHU HTXLSPHQW ZLWK HYHQ PRUH H[RWLF QDPHV ´$ ORW RI WKHVH DUH RQH RI D NLQG SURWRW\SLQJ WRROV µ VD\V &XUWLQ ,QGXVWU\ UHVHDUFKHUV DQG %LQJKDPWRQ VWXGHQWV DQG IDFXOW\ ZRUN ZLWK HTXLSPHQW DW WKH ,7&

´$ NH\ DGYDQWDJH LV WKDW DOO WKLV LV XQGHU RQH URRI &RPSDQLHV FDQ VKDUH WKH XVH RI HTXLSPHQW UDWKHU WKDQ EHLQJ OLPLWHG WR ZKDW WKH\ RZQ WKHPVHOYHV µ ² 0DU\ %HWK &XUWLQ DVVRFLDWH GLUHFWRU RI 6 ,3

6RPH RI WKH HTXLSPHQW LV VR FRPSOLFDWHG WKDW LW WDNHV WKH 3K ' VFLHQWLVWV RQ WKH VWDII WR RSHUDWH LW IRU WKH DFDGHPLF DQG LQGXVWULDO XVHUV $QG VRPH RI WKH ZRUN LV VR YLWDO WKDW FHUWDLQ ODEV DUH HTXLSSHG ZLWK FXUWDLQV VR UHVHDUFKHUV FDQ ZRUN RXWVLGH WKH YLHZ RI SRWHQWLDOO\ FRPSHWLQJ FRPSDQLHV XVLQJ WKH IDFLOLWLHV &LQG\ *UHW]LQJHU RI /RFNKHHG 0DUWLQ UHOLHV RQ WKH $QDO\WLFDO DQG 'LDJQRVWLFV /DERUDWRU\ DV D UHVRXUFH IRU IDLOXUH DQDO\VLV WURXEOHVKRRWLQJ DQG IRU PDWHULDO FKDUDFWHUL]DWLRQ VWXGLHV ´7KH SHUVRQQHO LQ WKH ODE DUH VXSHU WR ZRUN ZLWK DQG DUH H[WUHPHO\ NQRZOHGJHDEOH LQ WKHLU DUHDV RI H[SHUWLVH µ VKH VDLG ´+DYLQJ D ODE UHVRXUFH ZLWK WKH UDQJH RI FDSDELOLWLHV DQG EUHDGWK RI WHFKQLFDO WDOHQW WKDW WKH $'/ EULQJV LV JUHDW WR KDYH ZKHQ \RX UHDOO\ QHHG WR VROYH GLIÀFXOW SUREOHPV µ 5RQ 'DYLV D VHQLRU UHVHDUFK VFLHQWLVW DW &RUQLQJ ,QF QRWHG WKDW VFLHQWLVWV WKHUH KDYH XVHG HTXLSPHQW VXFK DV D GXDO EHDP IRFXVHG LRQ EHDP DQG D KLJK UHVROXWLRQ WUDQVPLVVLRQ HOHFWURQ PLFURVRSH WKDW WKH FRPSDQ\ GRHVQ·W KDYH RQ VLWH ´7KH TXDOLW\ DQG DYDLODELOLW\ RI WKHVH LQVWUXPHQWV KDYH DOORZHG XV WR KDYH D SRVLWLYH LPSDFW RQ VHYHUDO RI RXU SULPDU\ UHVHDUFK LQWHUHVWV LQFOXGLQJ SKRWRYROWDLFV VHPLFRQGXFWRU PDWHULDOV DQG RSWRHOHFWURQLF GHYLFHV µ KH VDLG ´:LWKRXW WKHVH WRROV ZH ZRXOG QRW KDYH EHHQ DEOH WR DGYDQFH RXU PDWHULDOV XQGHUVWDQGLQJ DW WKH UDWH UHTXLUHG WR VWD\ FRPSHWLWLYH LQ WKH FXUUHQW EXVLQHVV HQYLURQPHQW µ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


$QMX 6KDUPD D VHQLRU VFLHQWLVW RQ WKH ODE·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³ DOO ZLWKLQ D IHZ VWHSV RI HDFK RWKHU 7KH SURJUDPV XQGHU WKH XPEUHOOD RI WKH &HQWHU RI ([FHOOHQFH LQFOXGH WKH ,QWHJUDWHG (OHFWURQLFV (QJLQHHULQJ &HQWHU ,((& D &HQWHU IRU $GYDQFHG 0LFURHOHFWURQLFV 0DQXIDFWXULQJ WKH &HQWHU IRU (QHUJ\ (IÀFLHQW (OHFWURQLF 6\VWHPV DQG WKH &HQWHU IRU $XWRQRPRXV 6RODU 3RZHU &$63 7KH ,((& SXWV D VSHFLDO HPSKDVLV RQ KHOSLQJ FRPSDQLHV DQDO\]H WKH SDFNDJLQJ RI HOHFWURQLF GHYLFHV ³ ´SDFNDJLQJµ QRW LQ WKH VHQVH RI FDUGERDUG VKLSSLQJ ER[HV EXW LQ WHUPV RI DGGUHVVLQJ WKH FRQQHFWLRQV DQG DUUDQJHPHQW RI WKH PDQ\ VPDOO HOHFWURQLF FRPSRQHQWV WKDW JR LQWR WKH PDNLQJ RI D VLQJOH GHYLFH 'HYLFHV KDYH WR EH DQDO\]HG DV D ´SDFNDJHµ LQ WKH GHVLJQ VWDJH ³ DQG WKHQ SURWRW\SHV KDYH WR EH DVVHVVHG WKDW ZD\ WRR

´7KH FRPSDQLHV DUH KHOSLQJ XV EXLOG D WHFKQRORJ\ URDG PDS µ ² 0DU\ %HWK &XUWLQ

$QRWKHU DUHD RI H[SHUWLVH LV HOHFWURQLF GHYLFHV WKDW DUH ÁH[LEOH ³ VRPHWKLQJ IRU ZKLFK WKH FRPPHUFLDO GHPDQG LV H[SHFWHG WR EH HQRUPRXV LQ WKH \HDUV DKHDG 7KH PLOLWDU\ IRU H[DPSOH ZRXOG OLNH WR EH DEOH WR LQFRUSRUDWH FRPPXQLFDWLRQV JHDU DQG RWKHU HOHFWURQLF FLUFXLWV LQ FRPEDW XQLIRUPV $XWR GHVLJQHUV ZRXOG OLNH VRODU SDQHOV ZKLFK LQVWHDG RI EHLQJ ÁDW DQG ULJLG FRXOG EH PROGHG WR PDWFK WKH DHURG\QDPLF FXUYHV RI D FDU·V URRI %LQJKDPWRQ LV IDFLOLWDWLQJ LGHDV OLNH WKDW WKURXJK ERWK WKH ,((& DQG WKH &$66 ,QGXVWU\ SDUWQHUV DW 6 ,3 LQFOXGH (QGLFRWW ,QWHUFRQQHFW 7HFKQRORJLHV &RUQLQJ %$( 6\VWHPV *HQHUDO (OHFWULF ,%0 /RFNKHHG 0DUWLQ ;HUR[ $6( $0' 8QLYHUVDO ,QVWUXPHQWV $QDORJ 'HYLFHV DQG WKH )OH[7HFK $OOLDQFH ´7KH FRPSDQLHV DUH KHOSLQJ XV EXLOG D WHFKQRORJ\ URDG PDS µ VD\V &XUWLQ ´7KH\ ZLOO KHOS XV GHFLGH +RZ VKRXOG ZH EH EXLOGLQJ WKH FHQWHU WR EH RI XVH"µ 7KLV IDOO %LQJKDPWRQ ZLOO RSHQ D QHZ DFDGHPLF EXLOGLQJ IRU LWV HQJLQHHULQJ VFKRRO RQ WKH HDVW VLGH RI WKH FRPSOH[ ZKLFK ZLOO HQKDQFH RSSRUWXQLWLHV IRU VWXGHQWV DQG IDFXOW\ WR LQWHUDFW ZLWK LQGXVWU\ UHVHDUFKHUV RQ WKH VLWH $QG WKH XQLYHUVLW\ KRSHV VRRQ WR JR DKHDG ZLWK DQ H[SDQVLRQ RI WKH 6 ,3 RQ WKH ZHVW VLGH ´:H ZRXOG OLNH WR KDYH RXU FRPSDQ\ FROODERUDWRUV EH DV FORVH DV SRVVLEOH µ VD\V &XUWLQ ZLWK RIÀFH VSDFH LQ WKDW QHZ EXLOGLQJ ³ WKRXJK VKH QRWHV WKDW XQOHVV FKDQJHG FXUUHQW 1HZ <RUN 6WDWH ODZ OLPLWLQJ SXEOLF SULYDWH SDUWQHUVKLSV RQ FDPSXV ZLOO PDNH WKDW GLIÀFXOW

$ KHOSLQJ KDQG IRU IDFXOW\ VWDUW XSV %LQJKDPWRQ LV DKHDG RI WKH FXUYH LQ DQRWKHU UHVSHFW KHOSLQJ IDFXOW\ DQG VWXGHQWV GLVFRYHU WKHLU LQQHU HQWUHSUHQHXU 681<·V QHZ 6WUDWHJLF 3ODQ ORRNV WR DQ ´(QWUHSUHQHXULDO &HQWXU\ µ UHFRJQL]LQJ WKDW HFRQRPLF JURZWK UHTXLUHV DQ HQWUHSUHQHXULDO PLQGVHW RQ FDPSXV DQG EH\RQG :LWKLQ LWV ,QQRYDWLYH 7HFKQRORJLHV &RPSOH[ %LQJKDPWRQ KDV RSHQHG D ´6WDUW XS 6XLWHµ ³ OLWHUDOO\ D VXLWH RI VPDOO RIÀFHV QHDU ODEV DQG FRPPRQ VSDFH ³ WKDW LW KDV SRVLWLRQHG DV D NLQG RI ´SUH LQFXEDWRUµ IRU DVSLULQJ DQG VWDUW XS FRPSDQLHV ZLWK URRWV LQ IDFXOW\ UHVHDUFK 7KHUH DUH FXUUHQWO\ VSDFHV IRU HLJKW FRPSDQLHV EXW WKH XQLYHUVLW\ SODQV WR PDNH DERXW D GR]HQ PRUH VORWV DYDLODEOH ZKHQ D QHZ HQJLQHHULQJ EXLOGLQJ DGMDFHQW WR WKH ,7& LV RSHQHG WKLV IDOO

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH _ 681< $7 :25.

2QH RI WKH ÀUVW RFFXSDQWV ZDV 16& 7HFKQRORJLHV ZKLFK LV EDVHG RQ UHVHDUFK E\ & - =KRQJ D SURIHVVRU RI FKHPLVWU\ DQG LV KHDGHG E\ =KRQJ·V IRUPHU SRVW GRFWRUDO VWXGHQW -LQ /XR ,W LV ZRUNLQJ WR GHYHORS PDWHULDOV IRU FKHPLFDO DQG ELRORJLFDO VHQVRUV DQG IXHO FHOO FDWDO\VWV

7KH LQLWLDO EXLOGLQJ LQ %LQJKDPWRQ¶V ,QQRYDWLYH 7HFKQRORJLHV &RPSOH[

(XJHQH % .UHQWVHO %LQJKDPWRQ·V DVVLVWDQW YLFH SUHVLGHQW IRU HQWUHSUHQHXUVKLS DQG LQQRYDWLRQ SDUWQHUVKLSV VD\V WKH VWDUW XS VXLWH LV LPSRUWDQW QRW MXVW IRU WKH SRWHQWLDO RI WKH QHZ FRPSDQLHV WKHPVHOYHV EXW DOVR DV D WRRO IRU UHFUXLWLQJ IDFXOW\ DQG VWXGHQWV ´6RPH UHVHDUFKHUV ZDQW QRW RQO\ WR PDNH DQ LPSDFW ZLWKLQ DFDGHPLD EXW DOVR KRSH WR FKDQJH WKH ZRUOG IDU EH\RQG WKH ERXQGV RI WKH FDPSXV E\ VHHLQJ WKHLU ZRUN WUDQVODWHG LQWR WKH FUHDWLRQ RI QHZ PDUNHWDEOH SURGXFWV WHFKQRORJLHV RU VHUYLFHV ³ RU E\ SRVLWLRQLQJ WKHLU JUDGXDWH VWXGHQWV WR GR VR µ .UHQWVHO VD\V ´7KLV LV D WHUULÀF RSSRUWXQLW\ IRU WKRVH IDFXOW\ µ

,QMHFWLQJ HQWUHSUHQHXUVKLS LQWR WKH FXUULFXOXP %XVLQHVV JXUX 3HWHU 'UXFNHU KDV VDLG WKDW HQWUHSUHQHXUVKLS LV QRW QHFHVVDULO\ DQ LQQDWH RU LQERUQ WUDLW ,W FDQ EH OHDUQHG 7KDW LQ WXUQ PHDQV LW FDQ EH WDXJKW 6R WR KHOS WHDFK LW %LQJKDPWRQ KDV ODXQFKHG D SURJUDP FDOOHG (QWUHSUHQHXUVKLS $FURVV WKH &XUULFXOXP RIIHULQJ VPDOO VWLSHQGV WR KHOS IDFXOW\ PHPEHUV ZKR ZDQW WR IROG DQ HQWUHSUHQHXUVKLS FRPSRQHQW LQWR WKHLU H[LVWLQJ FODVVHV ,Q VRPH XQLYHUVLWLHV ZLWK VXFK SURJUDPV WKH LQLWLDWLYH LV FRQÀQHG WR D EXVLQHVV RU HQJLQHHULQJ VFKRRO %XW DW %LQJKDPWRQ LW·V DYDLODEOH DFURVV WKH ERDUG DQG KDV OHG WR PRGLÀHG FRXUVHV RQ FLYLF HQWUHSUHQHXUVKLS PRGHOLQJ DQG GHVLJQ IRU D VXVWDLQDEOH SODQHW QRQSURÀW PDQDJHPHQW DQG GHYHORSLQJ LQQRYDWLYH KHDOWK FDUH SURYLGHU UROHV DPRQJ RWKHUV 'DYLG &DPSEHOO DQ DVVLVWDQW SURIHVVRU RI SXEOLF DGPLQLVWUDWLRQ KDV GHYHORSHG D FRXUVH RQ ´VRFLDO HQWUHSUHQHXUVKLS µ UHFRJQL]LQJ WKH YDOXH RI HQWUHSUHQHXULDO WKLQNLQJ WR VWXGHQWV ZKR·G OLNH WR DSSO\ LW WR YROXQWHHU VHUYLFH ZRUN RU WR FDUHHUV LQ QRQSURÀWV RU JRYHUQPHQW ´$Q HQWUHSUHQHXULDO DSSURDFK FDQ EH EHQHÀFLDO IRU WKRVH LQ WKHDWHU VRFLDO ZRUN SKLORVRSK\³ SUDFWLFDOO\ HYHU\ ÀHOG LPDJLQDEOH µ VD\V .UHQWVHO ´,W GRHVQ·W QHFHVVDULO\ PHDQ VWDUWLQJ D FRPSDQ\ <RX FDQ EH HQWUHSUHQHXULDO ZLWKLQ DQ\ SURIHVVLRQ µ 7KH VWLSHQG .UHQWVHO DGGV LVQ·W WKH UHDVRQ IDFXOW\ SDUWLFLSDWH ³ LW IXQFWLRQV PRUH QHDUO\ DV D SURPSW ´7KH IDFXOW\ ZKR GR WKLV WROG XV WKH\ KDG ZDQWHG WR GR VRPHWKLQJ OLNH WKLV IRU \HDUV µ KH VD\V ´:KDW WKH SURJUDP GRHV LV LW JHWV WKHP GRLQJ LW WKLV \HDU µ .ULVKQDVZDPL 6ULKDUL GHDQ RI WKH 7KRPDV - :DWVRQ 6FKRRO RI (QJLQHHULQJ DQG $SSOLHG 6FLHQFH DW %LQJKDPWRQ KDV GHYHORSHG D XVH IRU WKH SURJUDP WKDW FRXOG EH UHJDUGHG DV SDUWLFXODUO\ ZHOO HQWUHSUHQHXULDO +H·V RIWHQ FDOOHG XSRQ WR WHDFK D FODVV VHVVLRQ IRU D IDFXOW\ PHPEHU ZKR·V DZD\ DW VD\ DQ DFDGHPLF FRQIHUHQFH 6R KH·V GHYHORSHG PRGXOHV RQ HQWUHSUHQHUVKLS WKDW KH FDQ VLPSO\ XVH ZKHQHYHU RQH RI WKRVH VXEVWLWXWH VHVVLRQV DULVHV 6WXGHQW LQWHUHVW LV KLJK VD\V .UHQWVHO ´:H QRZ JHW D VWHDG\ ÁRZ RI VWXGHQWV FRPLQJ WR P\ RIÀFH WR WDON DERXW HQWUHSUHQHXUVKLS µ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


.H\HG WR WKH 3RWHQWLDO RI 0LQRULW\ 2ZQHG %XVLQHVVHV *LYHQ 1HZ <RUN 6WDWH·V LQFUHDVLQJO\ GLYHUVH GHPRJUDSKLFV PLQRULW\ RZQHG VPDOO EXVLQHVVHV DUH WKH ZD\ RI WKH IXWXUH 681<·V 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU 6%'& UHSRUWV WKDW PLQRULW\ RZQHG EXVLQHVVHV DUH QRZ DERXW SHUFHQW RI DOO LWV FOLHQWV ³ DQG ZRPHQ RZQHG EXVLQHVVHV DUH DERXW KDOI WKH WRWDO 7KH 6%'& DQ RIÀFH WKDW FRRUGLQDWHV LQGLYLGXDO FHQWHUV DFURVV WKH VWDWH PRVW RI RI WKHP DW 681< FDPSXVHV DQG DOO RI WKHP ODUJHO\ IXQGHG WKURXJK WKH IHGHUDO 6PDOO OO %XVLQHVV $GPLQLVWUDWLRQ VD\V LWV VHUYLFHV DUH DYDLODEOH WR DOO FLWL]HQV EXW WKDW JLYHQ 1HZ <RUN·V GLYHUVH SRSXODWLRQ LW PDNHV D VSHFLDO HIIRUW WR UHVSRQG WR WKH JHQGHU DQG WKH HWKQLF EDFNJURXQG RI FOLHQWV ZKR FRPH WR LW IRU KHOS 2QH H[DPSOH RI WKDW FXVWRPL]HG DSSURDFK LV WKH 6%'&·V 2Op SURJUDP IRFXVLQJ RQ /DWLQR HQWUHSUHQHXUV 2Op 2UJDQL]DFLy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ÀFDWLRQ IURP 1HZ <RUN 6WDWH TXDOLI\LQJ WKHP IRU VWDWH SURFXUHPHQW RSSRUWXQLWLHV 2QFH FHUWLÀHG WKH\ DOVR JDLQ DFFHVV WR WKH 6%'&·V 3URFXUHPHQW $VVLVWDQFH &HQWHU ZKLFK VHUYHV DV D NLQG RI JDWHZD\ WR KHOS VPDOO EXVLQHVVHV ÀQG SURFXUHPHQW RSSRUWXQLWLHV WKDW ÀW WKHLU SURGXFWV DQG VHUYLFHV $QRWKHU 6%'& SURJUDP KHOSV VPDOO DQG PLQRULW\ RZQHG EXVLQHVVHV EHFRPH ERQGHG ³ RIWHQ D UHTXLUHPHQW IRU JRYHUQPHQW DQG RWKHU SXUFKDVLQJ DQG FRQVWUXFWLRQ FRQWUDFWV ³ RU WR LQFUHDVH WKHLU OHYHOV RI ERQGLQJ VR WKH\ KDYH DFFHVV WR ODUJHU FRQWUDFWV DQG SURMHFWV 6%'& VD\V WKDW LQ WKH ODVW WZR \HDUV PLQRULW\ FOLHQWV RI LWV SURJUDPV KDYH LQYHVWHG QHDUO\ PLOOLRQ LQ WKHLU EXVLQHVVHV DQG FUHDWHG RU VXVWDLQHG PRUH WKDQ MREV :RPHQ RZQHG EXVLQHVVHV VHUYHG E\ 6%'& KDYH UHSRUWHG LQYHVWLQJ PRUH WKDQ PLOOLRQ ZLWK MREV FUHDWHG RU VXVWDLQHG

8OVWHU &RPPXQLW\ &ROOHJH

8OVWHU 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU &RPPHUFLDO SDLQWLQJ FRQWUDFWRU 3DWWL +HLQV ZDV DOUHDG\ FHUWL¿HG DV D ZRPDQ DQG PLQRULW\ RZQHG EXVLQHVV ZKHQ VKH DUULYHG DW WKH 681< 8OVWHU 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU LQ VHHNLQJ KHOS LQ H[SDQGLQJ KHU EXVLQHVV DQG QDYLJDWLQJ WKH JRYHUQPHQW SURFXUHPHQW SURFHVV :RUNLQJ ZLWK KHU 6%'& FRXQVHORU VKH VHFXUHG D OLQH RI FUHGLW WR EULQJ HQRXJK HPSOR\HHV RQ ERDUG WR KDQGOH PDMRU FRQWUDFWV DQG FRQWLQXHG WR ZRUN ZLWK WKH FHQWHU WR GH¿QH DQG LPSOHPHQW D EXVLQHVV VWUDWHJ\ %\ WKH HQG RI +HLQV¶ ¿UP 3HIH]LRQH 3DLQWLQJ ,QF KDG FUHDWHG QHZ MREV DQG VHFXUHG FRQWUDFWV LQ H[FHVV RI PLOOLRQ ZKLOH +HLQV ZDV UHFRJQL]HG DV 1HZ <RUN 6WDWH¶V :RPDQ (QWUHSUHQHXU RI WKH <HDU +HLQV LV MXVW RQH RI WKH &$6( ,1 FOLHQWV WKH 8OVWHU 6%'& KDV DLGHG WR GDWH

$7 :25. :

6PDOO %XVLQHVV 'HYHORSPHQW &HQWHUV %URFNSRUW &ROOHJH +DV ZRUNHG GLUHFWO\ ZLWK EXVLQHVVHV KHOSLQJ WKHP WR LQYHVW PLOOLRQ LQ WKH DUHD HFRQRP\ DQG FUHDWH RU VDYH RYHU MREV VLQFH %XIIDOR 6WDWH &ROOHJH +DV KHOSHG PRUH WKDQ EXVLQHVVHV LQYHVW PRUH WKDQ PLOOLRQ LQ WKH ORFDO HFRQRP\ FUHDWLQJ RU VDYLQJ DSSUR[LPDWHO\ MREV &RUQLQJ &RPPXQLW\ &ROOHJH +DV SURYLGHG WUDLQLQJ HYHQWV VLQFH KHOSLQJ HPSOR\HUV FUHDWH RU UHWDLQ RYHU MREV 681< *HQHVHR DFWLYH FOLHQWV ZLWK UHODWHG LQYHVWPHQWV WRWDOLQJ QHDUO\ PLOOLRQ $VVLVWHG QHZ VWDUW XS EXVLQHVVHV DQG KHOSHG FUHDWH RU UHWDLQ VRPH MREV LQ WKH SDVW \HDU 3URYLGHV HQWUHSUHQHXULDO WUDLQLQJ WR KLJK VFKRRO VWXGHQWV LQ QHDUE\ FRPPXQLWLHV 681< 2VZHJR 3URYLGHV WUDLQLQJ LQ EXVLQHVV DQG ¿QDQFLDO SODQQLQJ PDUNHWLQJ UHVHDUFK DQG PLFURHQWHUSULVH GHYHORSPHQW WKURXJK ZRUNVKRSV DQG RQH RQ RQH FRXQVHOLQJ 5RFNODQG &RPPXQLW\ &ROOHJH +DV SDUWQHUHG ZLWK LQGXVWU\ IURP WKH UHJLRQ WR GHYHORS FXVWRPL]HG WUDLQLQJ WKDW KHOSV EXVLQHVVHV RSHUDWH PRUH HI¿FLHQWO\ WUDLQLQJ VHUYLFHV DUH SURYLGHG E\ 5RFNODQG¶V &HQWHU IRU 3HUVRQDO 3URIHVVLRQDO 'HYHORSPHQW

32,17

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


+2: 0$77(56

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

681<·V HFRQRPLF LPSDFW -XPSVWDUWLQJ WKLV SRZHUIXO SURFHVV RI NQRZOHGJH H[FKDQJH DQG HFRQRPLF JURZWK DUH WKH GROODUV XQLYHUVLWLHV DWWUDFW WR IXQG UHVHDUFK RIIHU KLJK TXDOLW\ DFDGHPLF SURJUDPV SD\ ZDJHV DQG EHQHÀWV WR IDFXOW\ DQG VWDII DQG EXLOG DQG PDLQWDLQ FRUH FDSLWDO DVVHWV FODVVURRPV ODERUDWRULHV KLJK WHFK HTXLSPHQW DWKOHWLF DQG FXOWXUDO IDFLOLWLHV UHVHDUFK SDUNV DQG EXVLQHVV LQFXEDWRUV 681<·V UHYHQXHV LQFOXGLQJ WXLWLRQ UHVHDUFK JUDQWV DQG JRYHUQPHQW IXQGLQJ QXUWXUH DQG VXSSRUW WKH FUHDWLRQ DQG WUDQVIHU RI NQRZOHGJH 7KH\ DUH DOVR GLUHFWO\ LQMHFWHG LQWR WKH HFRQRP\ DV LQVWLWXWLRQV SXUFKDVH JRRGV DQG VHUYLFHV IDFXOW\ DQG VWDII VSHQG WKHLU ZDJHV RQ OLYLQJ H[SHQVHV VWXGHQWV OLYH LQ WKH FRPPXQLW\ DQG FDPSXV YLVLWRUV ORGJH GLQH DQG HQMR\ UHODWHG DWWUDFWLRQV 7KHVH GROODUV WKHQ FLUFXODWH WKURXJK D UREXVW F\FOH RI HFRQRPLF DFWLYLW\ VXSSRUWLQJ UHODWHG EXVLQHVVHV ³ IURP XWLOLWLHV DQG VXSSOLHUV WR JURFHU\ VWRUHV DQG UHVWDXUDQWV ³ WR JHQHUDWH DGGLWLRQDO HFRQRPLF RXWSXW DQG HPSOR\PHQW $V RI WKH EDVHOLQH \HDU RI WKH LQVWLWXWLRQV RI 681< WRJHWKHU VXSSRUW DQ DQQXDO ELOOLRQ HFRQRPLF LPSDFW RQ WKH 1HZ <RUN 6WDWH HFRQRP\ UHÁHFWLQJ WKH RSHUDWLRQ RI WKLV YDVW V\VWHP DV ZHOO DV GROODUV SXPSHG LQWR WKH HFRQRP\ E\ WKH URXJKO\ IDFXOW\ DQG VWDII VWXGHQWV DQG RYHUQLJKW YLVLWRUV WR 681< FDPSXVHV 7KLV HFRQRPLF DFWLYLW\ VXSSRUWV MREV DFURVV WKH VWDWH RYHU DQG DERYH 681<·V RZQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


GLUHFW HPSOR\PHQW DQG SURGXFHV PLOOLRQ LQ VWDWH DQG ORFDO SURSHUW\ LQFRPH DQG VDOHV WD[HV

+2: 0$77(56

72 7+( (&2120<

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·V GLUHFW VSHQGLQJ RQ JRRGV DQG VHUYLFHV QHHGHG WR RSHUDWH DQG UXQ LQVWLWXWLRQV DV ZHOO DV ZDJHV DQG EHQHÀWV WR IDFXOW\ DQG VWDII WRWDOHG ELOOLRQ LQ /DERU FRVWV DW ELOOLRQ DFFRXQWHG IRU SHUFHQW RI 681<·V GLUHFW VSHQGLQJ SULPDULO\ IXQGLQJ LQVWUXFWLRQ DFDGHPLF DQG LQVWLWXWLRQDO VXSSRUW DQG DX[LOLDU\ HQWHUSULVHV 2I WKH ELOOLRQ LQ VSHQGLQJ DVVRFLDWHG ZLWK 681< DERXW SHUFHQW VWD\HG LQ 1HZ <RUN 6WDWH SD\LQJ HPSOR\HHV ZKR OLYH KHUH DV ZHOO DV LQ VWDWH YHQGRUV DQG VXSSOLHUV 681<·V QHDUO\ VWXGHQWV FRQWULEXWH VLJQLÀFDQWO\ WR 681<·V ELOOLRQ HFRQRPLF LPSDFW VSHQGLQJ RII FDPSXV PRUH WKDQ ELOOLRQ DQQXDOO\ DV WKH\ OLYH DQG ZRUN LQ WKH FRPPXQLW\ 2Q DYHUDJH HDFK 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV $ FDPSXV VXUYH\ SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

681< *HQHUDWHV D 0LQLPXP $QQXDO %LOOLRQ (FRQRPLF ,PSDFW LQ 1HZ <RUN 6WDWH +HUH·V KRZ LW KDSSHQV ELOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

% LQ WXLWLRQ IHHV % LQ DX[LOLDU\ VHUYLFH VDOHV % LQ 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWVV % LQ IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWV FWV W % IURP RWKHU VRXUFHV 6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

ELOOLRQ LQ VSHQGLQJ % E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV % E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHVV % E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV 0 YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 (PSOR\PHQW ,PSDFW

MREV DFURVV 1<6 681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

PLOOLRQ LQ WD[HV JHQHUDWHG IRU 1<6 DQG ORFDO JRYHUQPHQW 0 LQ LQFRPH WD[HV 0 LQ VDOHV WD[HV 0 LQ SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

% % 5 5HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH OR 5HJLRQDO ,QVWLWXWH


$Q (FRQRPLF )RUFH LQ LWV 2ZQ 5LJKW

VWXGHQW VSHQGV SHU \HDU RQ RII FDPSXV KRXVLQJ IRRG WUDQVSRUWDWLRQ ERRNV SHUVRQDO VHUYLFHV DQG HQWHUWDLQPHQW 681< FDPSXVHV GUHZ PRUH WKDQ PLOOLRQ YLVLWRUV LQ IRU FXOWXUDO RIIHULQJV VSHFLDO HYHQWV DWKOHWLFV FRQIHUHQFHV DQG DV JXHVWV RI IDFXOW\ DQG VWXGHQWV &RQWULEXWLQJ PRVW GLUHFWO\ WR HFRQRPLF LPSDFWV DUH RYHUQLJKW YLVLWRUV ZLWK URXJKO\ VXFK YLVLWRUV GLVEXUVLQJ DQ HVWLPDWHG PLOOLRQ RQ RII FDPSXV ORGJLQJ GLQLQJ DQG WUDQVSRUWDWLRQ LQ

681< DV D UHVHDUFK HQWHUSULVH 681< PDNHV RQH RI LWV PRVW LPSRUWDQW HFRQRPLF LPSDFWV DV D UHVHDUFK HQWHUSULVH (YHU\ \HDU 681<·V WRS UHVHDUFKHUV DWWUDFW KXQGUHGV RI PLOOLRQV RI GROODUV LQ UHVHDUFK IXQGLQJ WR H[SORUH WKH ODWHVW LGHDV DSSOLFDWLRQV DQG WHFKQRORJLHV LQ WKHLU ÀHOGV ,Q 681< LQVWLWXWLRQV UHFHLYHG DSSUR[LPDWHO\ ELOOLRQ LQ IHGHUDO VWDWH ORFDO DQG SULYDWH JUDQWV DQG FRQWUDFWV WR VXSSRUW UHVHDUFK SURMHFWV DQG SURJUDPV ³ WKDW·V SHUFHQW RI 681<·V WRWDO UHYHQXH SLFWXUH 0RUH WKDQ PLOOLRQ RI WKLV FDPH IURP IHGHUDO VRXUFHV UHSUHVHQWLQJ QHZ GROODUV ÁRZLQJ LQWR DQG WKURXJK WKH VWDWH HFRQRP\ WR VXSSRUW HFRQRPLF DFWLYLW\ DQG HPSOR\PHQW RULHQWHG DURXQG NQRZOHGJH DQG LQQRYDWLRQ 681<·V IRXU XQLYHUVLW\ FHQWHUV ³ WKH 8QLYHUVLW\ DW %XIIDOR 8QLYHUVLW\ DW $OEDQ\ 6WRQ\ %URRN 8QLYHUVLW\ DQG %LQJKDPWRQ 8QLYHUVLW\ ³ JHQHUDWHG KDOI RI WRWDO UHVHDUFK GROODUV RU RYHU PLOOLRQ DOWRJHWKHU

WKH WK KH ,QQRYDWLRQ (FRQRP\

,Q WKH EHVW RI WKH ODVW WKUHH \HDUV 681< JHQHUDWHG«

LQYHQWLRQ GLVFORVXUHV SDWHQW DSSOLFDWLRQV SDWHQWV VSLQ RIIV VWDUW XSV OLFHQVHV PLOOLRQ LQ OLFHQVH LQFRPH 6RXUFH ,QWHUYLHZ DQG VXUYH\ GDWD IURP 681< LQVWLWXWLRQV

6XFK LQYHVWPHQWV DUH SD\LQJ RII IRU WKH VWDWH DQG LWV UHJLRQV LQ WKH IRUP RI QHZ EXVLQHVVHV DQG MREV DQG SURÀWDEOH FRPPHUFLDO DSSOLFDWLRQV ,Q RQH \HDU 681<·V XQLYHUVLW\ FHQWHUV DQG FROOHJHV JHQHUDWHG LQYHQWLRQ GLVFORVXUHV SDWHQW DSSOLFDWLRQV SDWHQWV VSLQ RIIV DQG VWDUW XS EXVLQHVVHV 7KH OLFHQVHV VHFXUHG E\ WKHVH LQVWLWXWLRQV FROOHFWLYHO\ WXUQHG RYHU PRUH WKDQ PLOOLRQ LQ LQFRPH %XW WKH LPSDFW RI 681< UHVHDUFK LV SHUKDSV EHVW DSSUHFLDWHG IURP D ORQJHU WHUP SHUVSHFWLYH 0XFK RI ZKDW LV EHLQJ UHVHDUFKHG ZRQ·W WXUQ LQWR D SURGXFW RU DSSOLFDWLRQ IRU \HDUV %XW ZKHQ WKH QH[W VRXUFH RI UHQHZDEOH HQHUJ\ WUHDWPHQW IRU FDQFHU RU F\EHU VHFXULW\ WRRO HPHUJHV LW ZLOO FKDQJH WKH ZD\ VRFLHW\ IXQFWLRQV $V 681< LQYHVWV LQ UHVHDUFK IDFXOW\ DQG VWDII EXLOGV ODERUDWRULHV UHVHDUFK SDUNV DQG EXVLQHVV LQFXEDWRUV WUDQVIHUV NQRZOHGJH WR FRPPHUFLDO DSSOLFDWLRQV DQG DVVLVWV EXVLQHVVHV LW EXLOGV D IRXQGDWLRQ RI KXPDQ FDSLWDO DQG LQIUDVWUXFWXUH IRU VXFFHVV LQ WKH VW &HQWXU\ HFRQRP\

3UHSDULQJ WKH NQRZOHGJH ZRUNIRUFH 681< LV D GRPLQDQW IRUFH LQ WKH SUHSDUDWLRQ DQG WUDLQLQJ RI WKH 1HZ <RUN 6WDWH ZRUNIRUFH (YHU\ \HDU LW WXUQV RXW PRUH WKDQ JUDGXDWHV KROGLQJ DVVRFLDWH·V WR GRFWRUDO OHYHO GHJUHHV DFURVV DFDGHPLF SURJUDPV $UPHG ZLWK WKH ODWHVW VNLOOV DQG NQRZOHGJH WKHVH JUDGXDWHV SURYLGH WKH KXPDQ FDSLWDO HPSOR\HUV QHHG WR JURZ LQ WKLV NQRZOHGJH HFRQRP\ :KLOH 681< SULPDULO\ HGXFDWHV VWDWH UHVLGHQWV LW LV DOVR D SRZHUIXO PDJQHW IRU WDOHQW IURP EH\RQG WKH VWDWH·V ERUGHUV ZLWK DSSUR[LPDWHO\ RI 681<

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


$/801, VWXGHQWV FRPLQJ IURP DFURVV WKH QDWLRQ DQG JOREH 7KH QHDUO\ PLOOLRQ 681< DOXPQL LQ 1HZ <RUN 6WDWH UHSUHVHQW D ODERU SRRO ZLWK YDVW SRWHQWLDO WR ÀOO MREV DFURVV WKH VWDWH·V ODUJHVW DQG IDVWHVW JURZLQJ LQGXVWULHV 5HODWLYH WR DOO GHJUHH JUDQWLQJ LQVWLWXWLRQV LQ 1HZ <RUN 6WDWH 681< JURRPV RQH LQ WKUHH JUDGXDWHV RYHUDOO DQG PRUH WKDQ KDOI DW WKH OHYHO RI DVVRFLDWH·V GHJUHH 681<·V XQLYHUVLW\ FHQWHUV DQG FROOHJHV FRPPXQLW\ FROOHJHV DQG WHFKQRORJ\ FROOHJHV SOD\ XQLTXH EXW FRPSOHPHQWDU\ UROHV LQ ZRUNIRUFH GHYHORSPHQW :KLOH GRFWRUDO SURJUDPV DW XQLYHUVLW\ FHQWHUV DQG FROOHJHV SUHSDUH WKH QH[W JHQHUDWLRQ RI VFKRODUV UHVHDUFKHUV VFLHQWLVWV DQG VSHFLDOLVWV DW WKH OHDGLQJ HGJH RI WKHLU ÀHOGV FRPPXQLW\ DQG WHFKQLFDO FROOHJHV SURYLGH GLYHUVH RSWLRQV IRU YRFDWLRQDOO\ RULHQWHG GHJUHHV DQG FHUWLÀFDWHV 7KH UHVXOW LV D GLYHUVHO\ WUDLQHG FRUH RI 681< JUDGXDWHV WKDW FDQ SXVK WKH ERXQGDULHV RI LQGXVWU\ ZLWK DGYDQFHG NQRZOHGJH ÀOO JDSV LQ ZRUNIRUFH FDSDFLW\ DQG PHHW WKH QHHGV RI HPHUJLQJ LQGXVWULHV 7KH FXPXODWLYH FDSDFLW\ RI 681< JUDGXDWHV WR ÀOO MREV DFURVV GLYHUVH LQGXVWULHV LQ WKH VWDWH VXJJHVWV WKH EUHDGWK DQG GHSWK RI 681<·V UROH LQ ZRUNIRUFH SUHSDUDWLRQ 2YHUDOO 681<·V PLOOLRQ DOXPQL FRQVWLWXWH D ODERU SRRO VXIÀFLHQWO\ WUDLQHG WR ÀOO IRXU LQ MREV LQ WKH VWDWH UHTXLULQJ DQ DGYDQFHG VNLOO RU FROOHJH GHJUHH

681< DOXPQL UHSUHVHQW D NH\ ODERU VXSSO\ IRU 1HZ <RUN 6WDWH KROGLQJ WKH GHJUHHV UHTXLUHG E\ MREV DFURVV D UDQJH RI LQGXVWULHV 'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV

2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

\U \U

$UW 6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

(GXFDWLRQ

7HFKQLFDO 7UDGHV

7RWDO 681< GHJUHHV

6RFLDO 6HUYLFHV

+HDOWK

/DZ 3XEOLF 6HUYLFHV

&RPPXQLFDWLRQV 0HGLD

$ FORVHU ORRN DW 681< DOXPQL E\ WKH &RPSXWHU VSHFLÀF GHJUHHV WKH\ KROG UHYHDOV 0DWKHPDWLFV VLJQLÀFDQW ZRUNIRUFH FDSDFLWLHV IRU D GLYHUVH UDQJH RI LQGXVWULHV %XVLQHVV )LQDQFH IURP ODZ DQG WKH +2: DUWV WR KHDOWK DQG VFLHQFHV 0$77(56 )RU LQVWDQFH 72 7+( 681<·V +RVSLWDOLW\ :25.)25&( 6HUYLFH DOXPQL KROGLQJ VFLHQFH :KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F

RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


$Q (FRQRPLF )RUFH LQ LWV 2ZQ 5LJKW

,Q 681< SURGXFHG JUDGXDWHV KROGLQJ WKH GHJUHHV QHHGHG WR ¿OO MRE RSHQLQJV DFURVV WKH VWDWH KHOSLQJ WR IXHO LQGXVWU\ JURZWK LQ WKH NQRZOHGJH HFRQRP\ 'HJUHH W\SH

$VVRFLDWH¶V

2FFXSDWLRQDO RI &DWHJRU\ 'HJUHHV

%DFKHORU¶V RU 0DVWHU¶V

'RFWRUDO - ' RU 0 '

$QQXDO GHJUHHV DZDUGHG E\ 681< DV D SURSRUWLRQ RI MRE RSHQLQJV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV

+HDOWK

(GXFDWLRQ

%XVLQHVV )LQDQFH

681< VXSSRUWV FRQWLQXHG HFRQRPLF JURZWK E\ DQQXDOO\ UHOHDVLQJ D FDGUH RI JUDGXDWHV SUHSDUHG WR ÀOO MRE RSHQLQJV LQ HPHUJLQJ DQG KLJK JURZWK LQGXVWULHV ³ SDUWLFXODUO\ LQ NQRZOHGJH EDVHG ÀHOGV ,Q 681<·V JUDGXDWHV LQFOXGHG RYHU EDFKHORU·V GHJUHHV DVVRFLDWH·V GHJUHHV PDVWHU·V GHJUHHV DQG GRFWRUDO RU ÀUVW SURIHVVLRQDO GHJUHHV 5HODWLYH WR DOO FROOHJH JUDGXDWHV LQ WKH VWDWH 681< JHQHUDWHV PRUH WKDQ KDOI DW WKH DVVRFLDWH·V OHYHO DQG DERXW RQH TXDUWHU DW WKH EDFKHORU·V PDVWHU·V DQG GRFWRUDO SURIHVVLRQDO OHYHOV $GGLWLRQDOO\ 681< LVVXHG QHDUO\ FHUWLÀFDWHV DW WKH YRFDWLRQDO DQG SRVW EDFFDODXUHDWH OHYHOV LQ PRVW FRPPRQO\ LQ WKH ÀHOGV RI HGXFDWLRQ DQG KHDOWK

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO /DZ 3XEOLF 6HUYLFH

$UW

&RPSXWHU 0DWKHPDWLFV

&RPPXQLFDWLRQV 0HGLD

7HFKQLFDO 7UDGHV

6RFLDO 6HUYLFHV

$JULFXOWXUH

681< ZLGH GHJUHH DYHUDJH DFURVV DOO ILHOGV IRU

+RVSLWDOLW\ 6HUYLFH

$VVRFLDWH·V

%DFKHORU·V 0DVWHU·V

'RFWRUDO 3URIHVVLRQDO

HQJLQHHULQJ HQYLURQPHQWDO GHJUHHV UHSUHVHQW D VXSSO\ VXIÀFLHQW WR ÀOO PRUH WKDQ SHUFHQW RI DOO UHODWHG GHJUHH RU VNLOO UHTXLULQJ MREV DFURVV WKH VWDWH ,Q WKH JURZLQJ ÀHOGV RI HGXFDWLRQ DQG KHDOWK 681< DOXPQL QXPEHU HQRXJK WR ÀOO DOPRVW RQH WKLUG RI MREV GHPDQGLQJ WKHLU HGXFDWLRQDO TXDOLÀFDWLRQV 0RUH WKDQ RQH TXDUWHU RI WHFKQLFDO WUDGHV MREV FRXOG EH ÀOOHG E\ 681< DOXPQL KROGLQJ WKH UHTXLUHG GHJUHHV RU VNLOOV 3URSRUWLRQDOO\ IHZHU 681< DOXPQL KROG WKH GHJUHHV QHHGHG IRU MREV LQ FRPSXWHU PDWKHPDWLFV EXVLQHVV ÀQDQFH DQG KRVSLWDOLW\ WKH ODWWHU RI ZKLFK UHOLHV KHDYLO\ RQ JUDGXDWHV ZLWK WZR \HDU GHJUHHV

$Q H[DPLQDWLRQ RI 681<·V VXSSO\ RI JUDGXDWHV UHODWLYH WR DQQXDO MRE RSHQLQJV VKRZV 681< LV PHHWLQJ ZRUNIRUFH QHHGV LQ PRVW LQGXVWULHV DFFRUGLQJ WR D EHQFKPDUN RI 681<·V VKDUH RI RYHUDOO FROOHJH JUDGXDWHV LQ WKH VWDWH )RU LQVWDQFH 681< JHQHUDWHV DW OHDVW LWV VKDUH RI JUDGXDWHV IRU MRE RSHQLQJV LQ FRPSXWHU PDWKHPDWLFV EXVLQHVV ÀQDQFH FRPPXQLFDWLRQV PHGLD DQG HGXFDWLRQ IURP WKH DVVRFLDWH·V WR GRFWRUDO OHYHO $PRQJ WKH DUHDV ZKHUH 681< FDQ EROVWHU HQUROOPHQW DUH DW WKH DVVRFLDWH·V OHYHO IRU KRVSLWDOLW\ DQG

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG ZLWK D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV GHJUHHV DZDUGHG E\ ¿HOG RI VWXG\ DQG OHYHO -RE RSHQLQJV DUH IURP 1<6 'HSW RI /DERU 6HH ³2FFXSDWLRQDO 2SHQLQJV LQ 1HZ <RUN 6WDWH´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


KHDOWK DQG DW WKH EDFKHORU·V OHYHO IRU WHFKQLFDO WUDGHV DQG VRFLDO VHUYLFHV HVSHFLDOO\ DV PDQ\ RI WKHVH LQGXVWULHV DUH SURMHFWHG WR JURZ LQ FRPLQJ \HDUV 681< DOVR JHQHUDWHV IHZHU JUDGXDWHV UHODWLYH WR MRE GHPDQG DW WKH GRFWRUDO OHYHO IRU WKH ÀHOGV RI ODZ DV ZHOO DV VFLHQFH HQJLQHHULQJ HQYLURQPHQWDO

681< JHQHUDWHV GHJUHHV QHHGHG IRU MREV ZLWKLQ LQGXVWU\ ³FOXVWHUV´ WDUJHWHG IRU GHYHORSPHQW E\ WKH VWDWH

,Q

² SHUFHQW RI DOO 681< GHJUHHV DZDUGHG WKDW \HDU ² ZHUH LQ ÀHOGV RI VWXG\ UHODWHG WR WKHVH FOXVWHUV

681< VXSSRUWV VHYHUDO VWUDWHJLF ´FOXVWHUVµ RI LQGXVWULHV WKDW FXW DFURVV WUDGLWLRQDO RFFXSDWLRQDO FDWHJRULHV DQG DUH OLQNHG E\ VLPLODU QHHGV IRU WDOHQW WHFKQRORJ\ DQG LQIUDVWUXFWXUH 1HZ <RUN 6WDWH OHDGHUV KDYH WDUJHWHG WKHVH FOXVWHUV GXH WR WKHLU WRWDO HPSOR\PHQW JURZWK SRWHQWLDO DQG DERYH DYHUDJH ZDJHV DPRQJ RWKHU IDFWRUV ,Q 681< DZDUGHG RYHU 681< GHJUHHV LQ ÀHOGV UHODWHG WR RQH RU PRUH RI 1HZ <RUN 6WDWH·V FOXVWHU LQGXVWULHV ³ WKDW·V QHDUO\ WZR WKLUGV RI WRWDO 681< GHJUHHV 5HODWLYH WR WKH WRWDO VWDWH VXSSO\ RI FROOHJH JUDGXDWHV WUDLQHG LQ WKHVH DUHDV 681< SOD\V D GRPLQDQW UROH ,Q RQH \HDU 681< SURGXFHV IURP RQH WKLUG WR WZR WKLUGV RI GHJUHHV LQ WKH VWDWH WKDW SUHSDUH JUDGXDWHV IRU MREV LQ WKH PDQXIDFWXULQJ IDVKLRQ DQG ELRPHGLFDO FOXVWHUV 2I DOO 681<·V FOXVWHU UHODWHG GHJUHHV DERXW KDOI VXSSRUWHG DW OHDVW RQH RI WKUHH FOXVWHUV ³ IURQW RIÀFH 681< LV DOVR VHL]LQJ WKH RSSRUWXQLW\ SURGXFHU VHUYLFHV ÀQDQFLDO VHUYLFHV WR IXHO JURZWK LQ LQQRYDWLRQ EDVHG DQG EDFN RIÀFH LQGXVWULHV WKURXJK LWV &HQWHUV RI ([FHOOHQFH DW XQLYHUVLW\ FHQWHUV DFURVV WKH VWDWH ,Q DGGLWLRQ WR UREXVW UHVHDUFK HQYLURQPHQWV WKHVH &HQWHUV RI ([FHOOHQFH SURYLGH FDUHHU SDWKZD\V GHYHORSPHQW DQG VSHFLDOL]HG WUDLQLQJ LQ LQGXVWULHV UDQJLQJ IURP DOWHUQDWLYH HQHUJ\ DQG QDQRVFLHQFH WR ZLUHOHVV WHFKQRORJLHV DQG WKH OLIH VFLHQFHV $7 $ 7

:25. :2

/RRNLQJ IRUZDUG DQ DPSOH VXSSO\ RI JUDGXDWHV ZLOO EH FULWLFDO WR SURSHO KLJK JURZWK DQG LQQRYDWLRQ EDVHG LQGXVWULHV LQ QHHG RI H[SHUWV UHVHDUFKHUV WHFKQLFLDQV DQG UHODWHG VWDII $V 681< FRQWLQXHV WR LQYHVW LQ DFDGHPLF SURJUDPV UHVHDUFK DQG LQQRYDWLRQ DQG ZRUNIRUFH WUDLQLQJ LW KDV WKH RSSRUWXQLW\ WR SOD\ DQ HYHQ K JUHDWHU UROH LQ DGYDQFLQJ WKH VWDWH·V J NQRZOHGJH HFRQRP\ %RGLQJ ZHOO N IRU WKH VWDWH·V ZRUNIRUFH LQ FRPLQJ IR \HDUV LV WKH VWURQJ WHQGHQF\ RI 681< \ JUDGXDWHV WR VWD\ LQ 1HZ <RUN J 6WDWH WR OLYH DQG ZRUN ZLWK KLVWRULF 6 SDWWHUQV VKRZLQJ QHDUO\ WKUHH LQ IRXU S DOXPQL FKRRVH WR VHWWOH KHUH D

)URQW 2IILFH 3URGXFHU 6HUYLFHV

)LQDQFLDO 6HUYLFHV

%DFN 2IILFH

,QIRUPDWLRQ 7HFKQRORJ\

7UDYHO 7RXULVP

&RPPXQLFDWLRQV 6RIWZDUH 0HGLD 6HUYLFHV

)DVKLRQ

(OHFWURQLFV ,PDJLQJ

&OXVWHUV DUH JURXSV RI UHODWHG LQGXVWULHV OLQNHG E\ VLPLODU QHHGV IRU WDOHQW WHFKQRORJ\ DQG LQIUDVWUXFWXUH &OXVWHU LQGXVWULHV DUH WDUJHWHG IRU JURZWK GXH WR WKHLU FRQWULEXWLRQV WR WRWDO HPSOR\PHQW LQ WKH VWDWH SURMHFWHG JURZWK H[SRUW SRWHQWLDO DERYH DYHUDJH ZDJHV DQG FRQFHQWUDWHG SUHVHQFH LQ RQH RU PRUH UHJLRQV RI WKH VWDWH

%LRPHGLFDO

0DQXIDFWXULQJ 'LVWULEXWLRQ

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 UHSRUWV GHJUHHV E\ ¿HOG RI VWXG\ DQG OHYHO 1<6 (PSLUH 6WDWH 'HYHORSPHQW DQG 1<6 'HSW RI /DERU SURYLGHV FOXVWHU LQGXVWU\ LQIRUPDWLRQ 6HH ³&OXVWHU ,QGXVWULHV LQ 1HZ <RUN 6WDWH´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


$Q (FRQRPLF )RUFH LQ LWV 2ZQ 5LJKW

0HDVXULQJ 681<·V ,PSDFW RQ &RPPXQLWLHV

&DWDO\]LQJ FRPPXQLW\ YLWDOLW\ %H\RQG LWV GLUHFW HFRQRPLF LPSDFWV 681< LV D PDMRU YLWDO PHPEHU RI 1HZ <RUN 6WDWH DQG LWV GLYHUVH FRPPXQLWLHV HQULFKLQJ SHRSOH DQG VXSSRUWLQJ YLEUDQW SODFHV DV LW HGXFDWHV HQJDJHV DQG VHUYHV 681<·V PRUH WKDQ PLOOLRQ VWXGHQWV IDFXOW\ VWDII DQG DOXPQL ³ VRPH GUDZQ WR WKH VWDWH EHFDXVH RI 681< ³ KDYH GLVWLQFW SRVLWLYH LPSDFWV RQ WKH GHPRJUDSKLF HFRQRPLF DQG VRFLDO YLWDOLW\ RI WKHLU FRPPXQLWLHV DV WKH\ VXSSRUW EXVLQHVVHV ÀOO MREV UDLVH IDPLOLHV DQG HQJDJH LQ FLYLF GHEDWH ,Q IDFW DERXW RQH LQ RI WKLV VWDWH·V QHDUO\ PLOOLRQ UHVLGHQWV LV WLHG WR 681< DV D VWXGHQW HPSOR\HH RU DOXPQXV 7KH VKHHU VFDOH RI WKH 681< IRRWSULQW VSDQQLQJ FDPSXVHV LQ PRUH WKDQ WRZQV YLOODJHV DQG FLWLHV VXJJHVWV WKH V\VWHP·V LPSDFW RQ WKH SK\VLFDO FKDUDFWHU RI WKH VWDWH·V FRPPXQLWLHV &RPPLWWHG WR SXEOLF VHUYLFH 681< DOVR VKDUHV H[SHUWLVH DQG UHVRXUFHV ZLWK FRPPXQLW\ JURXSV QRQSURÀWV DQG JRYHUQPHQW WR VXSSRUW SUREOHP VROYLQJ DQG GHFLVLRQ PDNLQJ IURP WKH RUJDQL]DWLRQDO WR UHJLRQDO VFDOH RQ LVVXHV DV GLYHUVH DV OHDGHUVKLS GHYHORSPHQW DQG SXEOLF KHDOWK 681< FUHDWHV D EUDQG RI ´SODFHµ IRU LWV KRVW FRPPXQLWLHV VWDQGLQJ DV D ODQGPDUN DQG VRXUFH RI SULGH SURYLGLQJ FXOWXUDO DQG UHFUHDWLRQDO UHVRXUFHV DQG VHUYLQJ DV D FURVVURDGV IRU DOO PHPEHUV RI WKH FRPPXQLW\

681< VKDSHV WKH FRPPXQLWLHV RI 1HZ <RUN 6WDWH FRQWULEXWLQJ WR UDFLDO DQG HWKQLF GLYHUVLW\ D PRUH KLJKO\ HGXFDWHG SRSXODWLRQ DQG JUHDWHU HFRQRPLF YLEUDQF\ 7R LVRODWH DQG PHDVXUH 681<·V FRPPXQLW\ LPSDFWV QLQH ´681< ,PSDFW &RPPXQLWLHVµ ZHUH LGHQWLÀHG EDVHG RQ WKH IROORZLQJ FULWHULD

681< PDNHV LWV JUHDWHVW PDUN RQ FRPPXQLWLHV WKURXJK LWV PLVVLRQ WR SURYLGH EURDGO\ DFFHVVLEOH KLJKHU HGXFDWLRQ WR WKH SHRSOH RI 1HZ <RUN 6WDWH )RU LQGLYLGXDOV DQ HGXFDWLRQ PHDQV LQWHOOHFWXDO IXOÀOOPHQW DQG JUHDWHU HFRQRPLF RSSRUWXQLWLHV RYHU WKH FRXUVH RI D OLIHWLPH 7KH VWDNHV DUH HTXDOO\ KLJK DW WKH FRPPXQLW\ VFDOH ³ DQ HGXFDWHG SRSXODFH LV D SUHUHTXLVLWH IRU VXFFHVV LQ WRGD\·V NQRZOHGJH EDVHG HFRQRP\ 681< SOD\V D VLJQLÀFDQW UROH LQ HGXFDWLQJ DQG HOHYDWLQJ WKH SHRSOH DQG FRPPXQLWLHV RI 1HZ <RUN 6WDWH HQUROOLQJ SHUFHQW RI

1R 3ULYDWH &ROOHJHV RU 8QLYHUVLWLHV :LWKLQ WKH &RPPXQLW\ 0DQ\ 681< LQVWLWXWLRQV RSHUDWH QHDU SULYDWH FROOHJHV DQG XQLYHUVLWLHV 7KHVH KRVW FRPPXQLWLHV EHQH¿W IURP DQ DJJORPHUDWHG KLJKHU HGXFDWLRQ LPSDFW ZKLOH 681< FRQWULEXWHV WR WKHVH LPSDFWV LW LV QRW WKH VROH IDFWRU 1R &RPPXQLW\ &ROOHJHV :LWKLQ WKH &RPPXQLW\ &RPPXQLW\ FROOHJHV SULPDULO\ VHUYH FRPPXWLQJ FRXQW\ UHVLGHQWV 7KXV 681<¶V GHPRJUDSKLF LPSDFWV DUH GLVSHUVHG DFURVV WKH FRXQW\ DQG QRW QHFHVVDULO\ FRQFHQWUDWHG LQ WKH KRVW FRPPXQLW\

&/ ,1721

,PSDFW SD DFW FW W &RPPXQLWLHV

681<¶V FRPPXQLW\ LPSDFWV H[WHQG DFURVV PXQLFLSDO ERXQGDULHV EXW DUH FRQFHQWUDWHG ZLWKLQ KRVW FRPPXQLWLHV 7R LVRODWH WKHVH LPSDFWV WKH QLQH ³681< LPSDFW FRPPXQLWLHV´ ZHUH FRPSDUHG WR WKHLU VXUURXQGLQJ FRXQW\

26 :( *2

0$', 6 21

&257/$1'

/, 9 , 1*6 721

6 &+2+$5, (

& + $ 8 7$ 8 48 $ '( /$:$5( 8/6 7( 5

8QLYHUVLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

681< )UHGRQLD

681< *HQHVHR

681< 2VZHJR

681< &RUWODQG

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

681< 0RUULVYLOOH

681< 'HOKL

681< &REOHVNLOO

681< 1HZ 3DOW]

681< 3ODWWVEXUJK


WKH VWDWH·V KLJK VFKRRO JUDGXDWHV L 1HDUO\ 681< VWXGHQWV RU SHUFHQW RI WRWDO HQUROOPHQW DUH VWDWH UHVLGHQWV 681< H[WHQGV HGXFDWLRQDO RSSRUWXQLWLHV WR D GLYHUVH SRSXODWLRQ LQFOXGLQJ WKRVH KLVWRULFDOO\ OHIW RXW 0RUH WKDQ RQH LQ IRXU VWXGHQWV LV D UDFLDO RU HWKQLF PLQRULW\ ZKLOH SHUFHQW DUH IURP D ORZ LQFRPH FRPPXQLW\ 1HDUO\ RQH LQ ÀYH 681< VWXGHQWV LV QRQ WUDGLWLRQDO ³ DJH RU ROGHU ³ VXJJHVWLQJ 681< SURYLGHV ERWK YDOXDEOH RSSRUWXQLWLHV IRU FRQWLQXLQJ HGXFDWLRQ DQG ÁH[LEOH OHDUQLQJ HQYLURQPHQWV IRU WKRVH EDODQFLQJ VFKRRO ZLWK IDPLO\ RU ZRUN LL ,Q DGGLWLRQ WR 681<·V UHODWLYHO\ ORZ WXLWLRQ FRVWV RYHUDOO LWV FRPPXQLW\ FROOHJHV IHDWXUH RSHQ HQUROOPHQW DQG HYHQ PRUH DIIRUGDEOH WXLWLRQ ZKLOH VSHFLDO ZRUNIRUFH GHYHORSPHQW DQG HGXFDWLRQDO SURJUDPV UHDFK RXW WR DFDGHPLFDOO\ DQG HFRQRPLFDOO\ XQGHUVHUYHG UHVLGHQWV ,Q WKH PRVW GLUHFW WHUPV HGXFDWLQJ D GLYHUVH SRSXODWLRQ LQFOXGLQJ WKH HFRQRPLFDOO\ GLVDGYDQWDJHG EUHDNV WKH F\FOH RI SRYHUW\ DQG OHYHUDJHV UHWXUQV WR WKH FRPPXQLW\ RYHU JHQHUDWLRQV $W WKH VDPH WLPH 681<·V GLYHUVLW\ LQWURGXFHV GLIIHUHQW SHUVSHFWLYHV WR WKH FRPPXQLW\ DQG DV VWXGHQWV JUDGXDWH WR WKH ZRUNIRUFH WR HPSOR\HUV DQG LQGXVWULHV DW WKH IRUHIURQW RI HFRQRPLF JURZWK )XUWKHULQJ WKH 681< LPSDFW RQ SRSXODWLRQ GLYHUVLW\ DQG FXOWXUDO YLEUDQF\ DUH LQWHUQDWLRQDO VWXGHQWV DV RI EULQJLQJ WRS WLHU WDOHQW WR WKH VWDWH DQG HQULFKLQJ FRPPXQLWLHV ZLWK YDULHG WUDGLWLRQV EDFNJURXQGV DQG LGHDV )RU 681<·V KRVW FRPPXQLWLHV WKLV FULWLFDO PDVV RI \RXQJ HGXFDWHG DQG GLYHUVH VWXGHQWV WUDQVODWHV LQWR GLVFUHWH FRQFHQWUDWHG GHPRJUDSKLF LPSDFWV &RPSDUHG ZLWK WKHLU VXUURXQGLQJ FRXQW\ 681< KRVW FRPPXQLWLHV DUH \RXQJHU PRUH GLYHUVH DQG PRUH KLJKO\ HGXFDWHG $ FRPSDULVRQ RI QLQH ´681< LPSDFW FRPPXQLWLHVµ ZLWK WKH UHVW RI WKHLU FRXQW\ VKRZV LPSDFW FRPPXQLWLHV KDYH

681< LPSDFW FRPPXQLWLHV DUH« DQG PRUH HGXFDWHG

\RXQJHU

PRUH GLYHUVH 3RSXODWLRQ $JH

681< LPSDFW FRPPXQLWLHV KDYH IRXU WLPHV DV PDQ\ \HDU ROGV FRPSDUHG ZLWK WKH UHVW RI WKHLU FRXQW\

0LQRULW\ 3RSXODWLRQ

5DFLDO DQG HWKQLF PLQRULW\ SRSXODWLRQV DUH JUHDWHU LQ 681< LPSDFW FRPPXQLWLHV UHODWLYH WR WKH UHVW RI WKHLU FRXQW\

7KH SRSXODWLRQ RI QRQ 8 6 FLWL]HQV LQ 681< LPSDFW FRPPXQLWLHV LV KLJKHU WKDQ WKH UHVW RI WKHLU FRXQW\

5HPDLQGHU RI &RXQW\

1RQ 8 6 3RSXODWLRQ

681< ,PSDFW &RPPXQLW\

$GXOWV ZLWK D 3RSXODWLRQ $JH %DFKHORU¶V (QUROOHG LQ 'HJUHH RU +LJKHU +LJKHU (G

,Q 681< LPSDFW FRPPXQLWLHV RQH LQ WKUHH DGXOWV KROGV D EDFKHORU·V GHJUHH RU KLJKHU FRPSDUHG ZLWK RQH LQ ÀYH DGXOWV LQ WKH UHVW RI WKHLU FRXQW\ $GGLWLRQDOO\ PRUH WKDQ VL[ WLPHV DV PDQ\ DUH SXUVXLQJ D FROOHJH GHJUHH

$ FULWLFDO PDVV RI \RXQJ HGXFDWHG DQG GLYHUVH VWXGHQWV DWWHQGLQJ 681< LQVWLWXWLRQV WUDQVODWHV LQWR GLVFUHWH FRQFHQWUDWHG GHPRJUDSKLF LPSDFWV RQ 681<·V KRVW FRPPXQLWLHV

6RXUFH $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ´'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


$Q (FRQRPLF )RUFH LQ LWV 2ZQ 5LJKW

IRXU WLPHV DV PDQ\ \HDU ROGV SURSRUWLRQDOO\ PRUH UDFLDO DQG HWKQLF PLQRULWLHV SHUFHQW YV SHUFHQW DQG QRQ 8 6 FLWL]HQV SHUFHQW YV SHUFHQW DQG D KLJKHU SURSRUWLRQ RI DGXOWV ZLWK D EDFKHORU·V GHJUHH RU KLJKHU SHUFHQW YV SHUFHQW 681< LQVWLWXWLRQV DOVR SOD\ DQ LPSRUWDQW $V 681< LQVWLWXWLRQV UROH LQ EXLOGLQJ HFRQRPLFDOO\ DQG FXOWXUDOO\ IDFXOW\ VWXGHQWV DQG YLEUDQW FRPPXQLWLHV DQG GHÀQLQJ D GLVWLQFW DOXPQL HQJDJH ZLWK VHQVH RI SODFH 681<·V FDPSXVHV VLW ZLWKLQ DQG VHUYH WKHLU KRVW D GLYHUVH UDQJH RI FRPPXQLWLHV IURP WKH FRPPXQLWLHV WKH\ VWDWH·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

,,PSDFW &RPPXQLWLHV &

681< ,PSDFW &RPPXQLW\ 5HPDLQGHU RI &RXQW\

681< LPSDFW FRPPXQLWLHV KDYH« JUHDWHU ´ZDON DELOLW\µ :$/. 6&25(

/HDVW :DONDEOH

5HPDLQGHU RI &RXQW\

0RVW :DONDEOH

681< ,PSDFW &RPPXQLW\

681< LPSDFW FRPPXQLWLHV DUH PRUH ´ZDON DEOH µ ZLWK FRUH DPHQLWLHV VXFK DV FRIIHH VKRSV ERRNVWRUHV JURFHULHV DQG WKHDWHUV ZLWKLQ ZDONLQJ GLVWDQFH RI ZKHUH SHRSOH OLYH 2Q D VFDOH RI WKH DYHUDJH ´ZDONµ VFRUH IRU 681< LPSDFW FRPPXQLWLHV LV ´9HU\ ZDONDEOH µ ZLWK PRVW GDLO\ GHVWLQDWLRQV ZLWKLQ ZDONLQJ GLVWDQFH ZKLOH WKH VXUURXQGLQJ FRXQWLHV DYHUDJH RQO\ ´&DU GHSHQGHQW µ ZLWK VRPH DPHQLWLHV UHDFKDEOH E\ IRRW 6RXUFH :DON6FRUH FRP 6HH ³:DON 6FRUHV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

IHZHU UHVLGHQWV OHDYLQJ WKH FRXQW\ IRU ZRUN /LNHO\ GXH WR JUHDWHU HPSOR\PHQW RSSRUWXQLWLHV LQ WKH FRPPXQLW\ D JUHDWHU SURSRUWLRQ RI UHVLGHQWV RI 681< LPSDFW FRPPXQLWLHV DUH DEOH WR ZRUN ZLWKLQ WKH VDPH FRXQW\ FRPSDUHG ZLWK WKRVH LQ WKH UHVW RI WKH FRXQW\

DQG ORZHU KRXVLQJ YDFDQF\ UDWHV 681< ´OLYHVµ LQ WKH FRPPXQLW\ DQG KHOSV GUDZ RWKHUV WKHUH WR OLYH DQG ZRUN FRQWULEXWLQJ WR ORZHU KRXVLQJ YDFDQF\ UDWHV UHODWLYH WR WKH VXUURXQGLQJ FRXQW\

&RPPXWLQJ RXW RI WKH &RXQW\

+RXVLQJ 9DFDQF\ 5DWH

6RXUFH $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ´'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

5HODWHG )LQGLQJ 2QH LQ ¿YH EXVLQHVVHV LQ 1<6 LV ZLWKLQ D PLOH UDGLXV RI D 681< 6RXUFH 8 6 &HQVXV %XUHDX 2Q WKH 0DS 6HH ³(PSOR\PHQW /RFDWLRQV LQ 1HZ <RUN 6WDWH´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


DQG LQIRUP SXEOLF SROLF\ 8VLQJ WKHLU FRPPXQLWLHV DV ODERUDWRULHV VWXGHQWV DQG IDFXOW\ VXSSO\ QHZ XQGHUVWDQGLQJ DQG NQRZOHGJH WKURXJK DSSOLHG UHVHDUFK 681< VWXGHQWV IDFXOW\ DQG VWDII OLYH LQ WKH FRPPXQLW\ DQG VXUURXQGLQJ UHJLRQ %XVLQHVVHV FDWHULQJ WR 681< VWXGHQWV IDFXOW\ VWDII DQG YLVLWRUV ³ IURP FXOWXUDO FHQWHUV WR FRIIHH VKRSV ³ DUH GUDZQ WR WKH DUHD FUHDWLQJ D FULWLFDO PDVV RI MREV VHUYLFHV DQG DPHQLWLHV IRU WKH SRSXODWLRQ 7KHVH LPSDFWV DUH FOHDUO\ HYLGHQW ZLWKLQ WKH QLQH 681< LPSDFW FRPPXQLWLHV DFURVV VHYHUDO PHDVXUHV RI HFRQRPLF YLEUDQF\ DQG FRPPXQLW\ YLWDOLW\ 7KHVH FRPPXQLWLHV DUH PRUH SHGHVWULDQ IULHQGO\ WKDQ DUH

+2: VXUURXQGLQJ DUHDV ZLWK GLYHUVH DPHQLWLHV ZLWKLQ ZDONLQJ GLVWDQFH RI ZKHUH SHRSOH OLYH LQFOXGLQJ 0$77(56 FRIIHH VKRSV JURFHU\ VWRUHV DQG 72 7 72 7+( WKHDWHUV )HZHU UHVLGHQWV HVLGHQWV &20081,7< &200 LQ WKHVH FRPPXQLWLHV LWLHV OHDYH WKH FRXQW\ IRU IRU ZRUN FRPSDUHG 681<·V ZLWK UHVLGHQWV RI FDPSXVHV DWWUDFWHG WKH UHVW RI WKH PRUH WKDQ FRXQW\ (YHQ PLOOLRQ YLVLWRUV WR KRXVLQJ YDFDQF\ WKHLU FDPSXVHV DQG UDWHV DUH ORZHU FRPPXQLWLHV LQ LQ 681< LPSDFW LQFOXGLQJ QHDUO\ FRPPXQLWLHV DV RYHUQLJKW IDFXOW\ DQG VWXGHQWV QWV YLVLWRUV OLYH LQ WKH FRPPXQLW\ XQLW\ DQG RWKHUV DUH GUDZQ DZQ WKHUH WR OLYH DQG ZRUN ZRUN

&RPPXQLW\ 9LWDOLW\ 681< &RUWODQG¶V 0DLQ 6WUHHW RXWUHDFK IDFLOLW\ KRXVHV FLYLF HQJDJHPHQW DFWLYLWLHV DQG HFRQRPLF GHYHORSPHQW SURJUDPPLQJ SURYLGHG E\ WKH &LW\ RI &RUWODQG¶V 'RZQWRZQ 3DUWQHUVKLS $OOLDQFH LQFOXGLQJ VSDFH IRU FROOHJH FRPPXQLW\ QHWZRUNLQJ DQ DUW JDOOHU\ FODVVURRPV DQG SURJUDPV VSRQVRUHG E\ WKH &RUWODQG &HQWHU IRU (FRQRPLF (GXFDWLRQ DQG RWKHUV 681< &RUWODQG DOVR KDV ORQJ EHHQ HQJDJHG LQ D FRPPXQLW\ ZLGH OHDGHUVKLS WDVN IRUFH V\VWHP WKDW VHWV SULRULWLHV IRU DGGUHVVLQJ FRPPXQLW\ QHHGV 681< 'HOKL¶V 2¶&RQQRU &HQWHU IRU &RPPXQLW\ (QJDJHPHQW GHYRWHV VRPH KRXUV RI VHUYLFH IURP VWXGHQWV IDFXOW\ DQG VWDII WR D ZLGH DUUD\ RI FLYLF JURXSV HYHU\ \HDU 7KH VFKRRO KDV EHHQ QDPHG WR WKH 3UHVLGHQW¶V +LJKHU (GXFDWLRQ &RPPXQLW\ 6HUYLFH +RQRU 5ROO IRU D IRXUWK FRQVHFXWLYH \HDU 681< *HQHVHR RSHUDWHV D WKULYLQJ GHVWLQDWLRQ UHVWDXUDQW LQQ DQG EDQTXHW ZHGGLQJ PHHWLQJ IDFLOLW\ WKDW GUDZV IURP IRXU FRXQWLHV SURYLGHV HPSOR\PHQW RSSRUWXQLWLHV DQG DQFKRUV WKH *HQHVHR EXVLQHVV GLVWULFW

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¿FDQFH LQ DUHDV VXFK DV UHJLRQDO ZHOO EHLQJ LQWHUJRYHUQPHQWDO FROODERUDWLRQ DQG HI¿FLHQF\ DQG ZDWHU TXDOLW\ &55(2 UHVHDUFK SURYLGHV QXPHURXV RSSRUWXQLWLHV IRU VWXGHQW SDUWLFLSDWLRQ LQ WKHVH SURMHFWV

681< 3ODWWVEXUJK¶V 7HFKQLFDO $VVLVWDQFH &HQWHU KHOSV SXEOLF DJHQFLHV QRQSUR¿WV EXVLQHVVHV DQG LQGXVWULHV LQ QRUWKHUQ 1HZ <RUN DFKLHYH WKHLU SODQQLQJ DQG GHYHORSPHQW JRDOV E\ SURYLGLQJ DSSOLHG UHVHDUFK HFRQRPLF DQDO\VLV DQG SURMHFW LPSOHPHQWDWLRQ DQG PDQDJHPHQW 'UDZLQJ IURP 3ODWWVEXUJK IDFXOW\ WKH FHQWHU SURYLGHV WKH FRPPXQLW\ ZLWK VXEVWDQWLDO H[SHUWLVH LQ HFRQRPLF DQG FRPPXQLW\ GHYHORSPHQW SODQQLQJ GHPRJUDSKLFV HFRQRPLF LPSDFW DQDO\VLV ZRUNIRUFH GHYHORSPHQW WRXULVP PDUNHWLQJ UHVHDUFK DQG UXUDO EURDGEDQG

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


0DVVHQD

681< &DPSXV 6HFWRUV

1RUWK 2JGHQVEXUJ 2 HQVEXU &RXQWU\2JGH

&HQWUDO 1HZ <RUN

8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV

6DUDQDF /DNH

681< $GPLQLVWUDWLRQ

:DWHUWRZQ

)LQJHU /DNHV

:HVWHUQ 1HZ <RUN

+RUQHOO

2OHDQ

6DUDWRJD 6SULQJV

$OEDQ\

1RUZLFK

,WKDFD

:HOOVYLOOH

7UR\

2QHRQWD

%DWK 6LGQH\

-DPHVWRZQ

7KH FROOHJHV DQG XQLYHUVLWLHV RI 681< DUH LQ PDQ\ ZD\V UHÁHFWLRQV RI WKH FRPPXQLWLHV WKH\ VHUYH 5HVLGHQWV LQGXVWULHV DQG EXVLQHVVHV VKDSH DFDGHPLF SURJUDPV HQULFK WKH H[FKDQJH

*ORYHUVYLOOH -RKQVWRZQ $PVWHUGDP

6FKHQHFWDG\ &RUWODQG

'DQVYLOOH

)UHGRQLD UHGRQ

,OLRQ

*HQHYD

*HQHVHR

'XQNLUN ' 'XQNL

681< KDV D SUHVHQFH LQ HYHU\ FRUQHU RI 1HZ <RUN 6WDWH ZLWK LQVWLWXWLRQV VHUYLQJ FRPPXQLWLHV RI HYHU\ W\SH IURP WKH VPDOO YLOODJH RI $OIUHG LQ :HVWHUQ 1HZ <RUN WR WKH UXUDO WRZQ RI &OLQWRQ LQ 1RUWK &RXQWU\ WR GHQVHO\ SRSXODWHG 1DVVDX &RXQW\ RQ /RQJ ,VODQG <HW DFURVV WKH UHJLRQV RI 1HZ <RUN 6WDWH WKH 681< SUHVHQFH YDULHV LQ LWV PL[ RI LQVWLWXWLRQV SURJUDPV DQG VHUYLFHV ERWK WR ÀW WKH XQLTXH HFRQRPLF ZRUNIRUFH DQG FRPPXQLW\ QHHGV RI LWV KRVW UHJLRQ DQG WR VXSSRUW D FRPSUHKHQVLYH 681< V\VWHP RI KLJKHU HGXFDWLRQ

6\UDFXVH

6HQHFD )DOOV

%XIIDOR

*OHQV )DOOV

5RPH 8WLFD

1HZDUN 1H 1HZDUN DUN

&KHHNWRZDJD

/RQJ /DNH

)XOWRQ

5RF FKHVWH 5RFKHVWHU

1RUWK K ZD DQGD D 7RQDZDQGD

0RKDZN 9DOOH\

/DNH 3ODFLG

2VZHJR

,URQGHTXRLW ,URQGH QGH QGHTXRL GHTXRL TXR RLWW R

/RFNSRUW RUW

681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV

3ODWWVEXUJK

7XSSHU /DNH

7HFKQRORJ\ &ROOHJHV

1LDJDUD )DOOV

0DORQH 3RWVGDP

&RUQLQJ

(OPLUD LUD D (QGLFRWW (QG GLFRWW G

&DWVNLOO VNLOO OO

%LQJKDPWRQ %LQJKD

&DSLWDO 'LVWULFW

.LQJVWRQ RQ

6RXWKHUQ 7LHU

+2:

+XGVRQ +XG GVRQ

3RXJKNHHSVLH 3RXJ J 0RQWLFHOOR 0RQWLF

1HZEXUJK

+XGVRQ 9DOOH\

0LGGOHWRZQ 0LGG 0 L

3HHNVNLOO

:KLWH 3ODLQV :

0RQWDXN

<RQNHUV

0$77(56

/HYLWWRZQ

1HZ <RUN 1H 1HZ HZ H Z< <RUN RUN R RUN

1HZ <RUN &LW\

+HPSVWHDG DG G

/RQJ ,VODQG

RI LGHDV DQG NQRZOHGJH DQG OHQG D FXOWXUDO HQULFKP FXOWXUDO HQULFKPHQW $W WKH VDPH GLVWLQFW VHQVH RI SODFH DQG FXOWXUDO WLPH WKH DFDGHPLF VSHFLDOL]DWLRQV DQG Á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

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


681< $)),/,$7(6

681<·V ,PSDFWV $FURVV 5HJLRQV $W D *ODQFH IRU

678'(176

(03/2<((6

681< DI¿OLDWHV DV D RI WKH UHJLRQ¶V SRSXODWLRQ

$/801,

`

`

)LQJHU /DNHV

`

+XGVRQ 9DOOH\

`

`

0RKDZN 9DOOH\

`

1HZ <RUN &LW\

`

1RUWK &RXQWU\

`

6RXWKHUQ 7LHU

`

`

&DSLWDO 'LVWULFW S

&HQWUDO 1HZ <RUN

S

S

S

/RQJ ,VODQG

S

S

S

S

S

:HVWHUQ 1HZ <RUN S

RI PLOOLRQ SRSXODWLRQ

RI SRSXODWLRQ

RI PLOOLRQ SRSXODWLRQ

(FRQRPLF LPSDFW RI UHJLRQ¶V 681<V RQ 1<6 HFRQRP\

ELOOLRQ

ELOOLRQ

ELOOLRQ

RI WRWDO JUDGV LQ UHJLRQ

RI WRWDO JUDGV LQ UHJLRQ

RI WRWDO JUDGV LQ UHJLRQ

ELOOLRQ

RI PLOOLRQ SRSXODWLRQ

RI WRWDO JUDGV LQ UHJLRQ

ELOOLRQ

PLOOLRQ

ELOOLRQ

PLOOLRQ

RI SRSXODWLRQ

ELOOLRQ

RI WRWDO JUDGV LQ UHJLRQ

ELOOLRQ

RI PLOOLRQ SRSXODWLRQ

RI SRSXODWLRQ

RI PLOOLRQ SRSXODWLRQ

RI SRSXODWLRQ

RI PLOOLRQ SRSXODWLRQ

7KH IROORZLQJ SDJHV IUDPH WKH 681< HFRQRPLF IRRWSULQW ³ LWV LQVWLWXWLRQV VWXGHQWV IDFXOW\ DQG VWDII DQG DOXPQL ³ LQ WKH FRQWH[W RI WKHVH UHJLRQV HDFK XQLTXHO\ GHÀQHG E\ LWV HFRQRPLF VWUXFWXUH LQGXVWULDO IRXQGDWLRQ DQG SRSXODWLRQ PDNHXS 7KH DVVRFLDWHG LPSDFWV DUH H[SORUHG ZLWK NH\ IDFWV ÀJXUHV DQG DQDO\VLV 'ULYLQJ WKH (FRQRP\ 7KH HFRQRPLF LPSDFW RI HDFK UHJLRQ·V 681< LQVWLWXWLRQV DQG WKHLU FRQWULEXWLRQV WR WKH LQQRYDWLRQ HFRQRP\

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

3UHSDULQJ WKH .QRZOHGJH :RUNIRUFH 6NLOOV DQG FDSDFLWLHV SURYLGHG E\ 681< DOXPQL OLYLQJ LQ WKH UHJLRQ DQG JUDGXDWHV RI WKH UHJLRQ·V 681< LQVWLWXWLRQV

RI WRWDO JUDGV LQ UHJLRQ

RI WRWDO JUDGV LQ UHJLRQ

RI WRWDO JUDGV LQ UHJLRQ

RI WRWDO JUDGV LQ UHJLRQ

RI WRWDO JUDGV LQ UHJLRQ

7KH VXP RI UHJLRQDO HFRQRPLF LPSDFWV LV VOLJKWO\ OHVV WKDQ WRWDO VWDWHZLGH HFRQRPLF LPSDFWV GXH WR URXQGLQJ ZLWKLQ WKH VHSDUDWH LPSDFW PRGHOV

&DVHV LQ 3RLQW 6HOHFW SURJUDPV RI 681< LQVWLWXWLRQV SURÀOHG IRU LQQRYDWLYH DSSURDFKHV WR HFRQRPLF GHYHORSPHQW

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV &DSLWDO 'LVWULFW

:$55(1

$GLURQGDFN 6$5$72*$

:$6+,1*721

(PSLUH 6WDWH QHFWD HFWDG\ FWD 6FKHQHFWDG\ W W\ &RXQW\

&DSLWDO 'LVWULFW

6&+(1(&7$'< '< <

+2:

$OEDQ\\

5(166(/$(5

+XGVRQ 9DOOH\ 681< $GPLQLVWUDWLRQ

681<V

$/%$1<

0$77(56

*5((1(

&2/80%,$

&ROXPELD *UHHQH

681< 7<3( 8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV

681< LQ WKH &DSLWDO 'LVWULFW 7KH &DSLWDO 'LVWULFW RI 1HZ <RUN 6WDWH LV KRPH WR VL[ 681< LQVWLWXWLRQV LQFOXGLQJ WKH 8QLYHUVLW\ DW $OEDQ\ WKH V\VWHP·V WKLUG ODUJHVW UHVHDUFK XQLYHUVLW\ IRXU FRPPXQLW\ FROOHJHV RQH WHFKQRORJ\ FROOHJH DQG 681< $GPLQLVWUDWLRQ 7KH UHJLRQ·V PRUH WKDQ 681< VWXGHQWV KDLO SUHGRPLQDQWO\ IURP ZLWKLQ WKH HLJKW FRXQW\ UHJLRQ ZLWK OHYHOV RI LQWHUQDWLRQDO DQG RXW RI VWDWH HQUROOPHQW LQ OLQH ZLWK WKH 681< DYHUDJH 0RUH WKDQ 681< DOXPQL OLYH LQ WKH UHJLRQ WKH ÀIWK ODUJHVW FOXVWHU RI 681< JUDGV LQ WKH VWDWH 7RJHWKHU WKHVH 681< VWXGHQWV DOXPQL DQG IDFXOW\ DQG VWDII FRPSULVH DERXW SHUFHQW RI WKH &DSLWDO 'LVWULFW·V WRWDO SRSXODWLRQ

7KH &DSLWDO 'LVWULFW (FRQRP\

%LOOHG DV WKH ´7HFK 9DOOH\µ RI 1HZ <RUN 6WDWH WKH &DSLWDO 'LVWULFW KDV HPHUJHG DV WKH VWDWH·V KRWEHG RI LQQRYDWLRQ DQG LQYHQWLRQ DQG 681< LV DW WKH IRUHIURQW SURYLGLQJ WKH HGXFDWLRQ WUDLQLQJ DQG EXVLQHVV VXSSRUW WR IRVWHU HQWUHSUHQHXUVKLS QHZ WHFKQRORJ\ GHYHORSPHQW DQG GLUHFW HFRQRPLF JURZWK *HQHUDWLQJ D ELOOLRQ HFRQRPLF LPSDFW WKLV UHJLRQ·V 681< LQVWLWXWLRQV DOVR SUHSDUH JUDGXDWHV IRU VWUDWHJLF LQGXVWU\ FOXVWHUV LQ HOHFWURQLFV DQG LPDJLQJ $PRQJ 681<·V OHDGLQJ HFRQRPLF GHYHORSPHQW HIIRUWV LQ WKH UHJLRQ DUH WKH 8QLYHUVLW\ DW $OEDQ\·V &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ D QH[XV IRU UHVHDUFK WHFK WUDQVIHU DQG QHZ EXVLQHVV FUHDWLRQ +XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH·V 7(& 60$57 FHQWHU WUDLQV EXVLQHVVHV LQ WKH UHQHZDEOH WHFKQRORJLHV LQGXVWU\ DQG 6FKHQHFWDG\ &RPPXQLW\ &ROOHJH LV UDPSLQJ XS WKH KHDOWK FDUH ZRUNIRUFH E\ EXLOGLQJ VNLOOV DPRQJ ORZ LQFRPH LQGLYLGXDOV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU HP RI WKH &DSLWDO 'LVWULFW·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D &DSLWDO 'LVWULFW 681< VFKRRO :KHUH WKHVH VWXGHQWV RULJLQDWHG IURP IURP IURP IURP ZLWKLQ HOVHZKHUH HOVHZKHUH HOVHZKHUH WKLV UHJLRQ

(03/2<((6

LQ 1<6

LQ 8 6

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ WKH &DSLWDO 'LVWULFW 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

LQ ZRUOG

7RS &RXQWULHV &KLQD 6 .RUHD &]HFK 5HSXEOLF *UHHFH ,QGLD

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ WKH &DSLWDO 'LVWULFW

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL GDWD DV RI 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7< '

0LQRULW\ VWXGHQWV 0L

1RQ WUDGLWLRQDO VWXGHQWV DJH

6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV &DSLWDO 'LVWULFW

+2:

&DSLWDO 'LVWULFW 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

7KH ELOOLRQ HFRQRPLF LPSDFW RI 681< LQ WKH &DSLWDO 'LVWULFW VXSSRUWV QHDUO\ MREV LQ UHODWHG EXVLQHVVHV RQ WRS RI IDFXOW\ DQG VWDII $ERXW WZR LQ WKUHH GROODUV RI WKLV RXWSXW VWD\V LQ WKH &DSLWDO 'LVWULFW HFRQRP\ $QQXDO WD[ LPSDFWV IURP WK WKH KH WKHVH 681< ,QQRYDWLRQ LQVWLWXWLRQV DV ZHOO DV 681< (FRQRP\ $GPLQLVWUDWLRQ ,Q WKH EHVW RI WKH ODVW DSSURDFK WKUHH \HDUV &DSLWDO PLOOLRQ

+HUH·V KRZ LW KDSSHQV ELOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWV WV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

'LVWULFW 681<V JHQHUDWHG«

$ PDMRU IDFWRU LQ 681<·V LQYHQWLRQ LPSDFW LQ WKH GLVFORVXUHV &DSLWDO 'LVWULFW SDWHQW WKH 8QLYHUVLW\ DSSOLFDWLRQV DW $OEDQ\ LV GLVWLQJXLVKHG SDWHQWV QRW RQO\ E\ LWV VSLQ RIIV VL]H EXW DOVR VWDUW XSV LQ LWV DWWUDFWLRQ RI WKH PRVW OLFHQVHV VSRQVRUHG 6RXUFH ,QWHUYLHZ DQG UHVHDUFK GROODUV VXUYH\ GDWD IURP 681< LQVWLWXWLRQV RI DQ\ 681< LQVWLWXWLRQ 2YHUDOO VSRQVRUHG UHVHDUFK GROODUV UHSUHVHQW SHUFHQW RI UHYHQXHV IRU WKLV UHJLRQ·V 681<V FRPSDUHG WR DQ SHUFHQW DYHUDJH VWDWHZLGH %HKLQG WKLV LPSDFW LV WKH 8QLYHUVLW\ DW $OEDQ\·V 1DQR7HFK &RPSOH[ D QHWZRUN RI KLJK WHFK UHVHDUFK EXLOGLQJV KRXVLQJ WKH VFKRRO·V &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ DQG PRUH WKDQ VFLHQWLVWV UHVHDUFKHUV DQG WHFKQLFLDQV

ELOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ WKH &DSLWDO 'LVWULFW (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH &DSLWDO 'LVWULFW 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

% 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 1RWH WKDW WKHVH GDWD GR QRW LQFOXGH WKH LPSDFW RI VSHQGLQJ E\ EXVLQHVVHV DOOLHG ZLWK RU VHUYHG E\ 681<V ± VXFK DV WKH YHU\ ODUJH FRUSRUDWH SUHVHQFH DW $OEDQ\ 1DQR 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


FROODERUDWLQJ RQ LQQRYDWLYH QHZ WHFKQRORJLHV DQG GLVFRYHULHV 6XFK 681< OHG HFRQRPLF GHYHORSPHQW KDSSHQV LQ PDQ\ RWKHU ZD\V ODUJH DQG VPDOO LQ WKLV UHJLRQ )RU LQVWDQFH &ROXPELD *UHHQH &RPPXQLW\ &ROOHJH·V 3URIHVVLRQDO $FDGHPLF &HQWHU SURYLGHV HTXLSPHQW WUDLQLQJ UHVRXUFHV DQG PHHWLQJ VSDFHV IRU EXVLQHVVHV ZKLOH +XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH RIIHUV DQ DOWHUQDWLYH HQHUJ\ WUDLQLQJ FHQWHU DW WKH 6DUDWRJD 7HFKQRORJ\ DQG (QHUJ\ 3DUN 681< DOVR PDNHV LPSRUWDQW FRQWULEXWLRQV WR FRPPXQLW\ YLWDOLW\ WKURXJK LWV SURJUDPV $V RQH H[DPSOH WKH UHJLRQ·V 681< FDPSXVHV OXUHG QHDUO\ YLVLWRUV LQ WKURXJK FXOWXUDO DVVHWV VSHFLDO HYHQWV DQG DFWLYLWLHV VXSSRUWLQJ ORFDO EXVLQHVVHV IURP KRWHOV WR UHVWDXUDQWV 681< $GPLQLVWUDWLRQ ORFDWHG LQ $OEDQ\ LV DOVR DQ LPSRUWDQW SDUW RI WKH 681< HFRQRPLF LPSDFW LQ WKLV UHJLRQ (PSOR\LQJ PRUH WKDQ DQG ZLWK D EXGJHW RI URXJKO\ PLOOLRQ WKLV RIÀFH FRQWULEXWHV IURP SHUFHQW WR SHUFHQW RI WKH UHJLRQ·V WRWDO 681< HFRQRPLF LPSDFW 7KLV RIÀFH·V VSHQGLQJ DQG UHYHQXH SLFWXUH DOVR DFFRXQWV IRU WKH UHJLRQ·V VOLJKWO\ KLJKHU UHOLDQFH RQ 1HZ <RUN 6WDWH DSSURSULDWLRQV JUDQWV DQG FRQWUDFWV UHODWLYH WR RWKHU UHJLRQV RI WKH VWDWH 6HH DOVR 681< DW :RUN $OEDQ\ 1DQR 7KH 6WRU\ RI 2QH (QWUHSUHQHXULDO 3K\VLFV 3URIHVVRU S

&$6( ,1 32,17 +XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH

+XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH *HDUV 8S WR )LOO +LJK 7HFK 1HHGV :KHQ *OREDO)RXQGULHV DQQRXQFHG LW ZRXOG EXLOG D ELOOLRQ FKLS IDE SODQW LQ 6DUDWRJD &RXQW\ LW ZDV ERWK D FKDOOHQJH DQG DQ RSSRUWXQLW\ IRU ZRUNIRUFH GHYHORSPHQW LQ WKH &DSLWDO 'LVWULFW 7KH FKDOOHQJH ZDV WKDW WKH UHJLRQ¶V OHDGHUV NQHZ WKH\ GLG QRW \HW KDYH HQRXJK ZRUNHUV WUDLQHG WR PHHW WKH QHHGV RI WKH SURPLVHG QHZ IDFLOLW\ 7KH RSSRUWXQLW\ ZDV WKLV QHHG WR WUDLQ WKRVH ZRUNHUV FRXOG WKUXVW WKH UHJLRQ¶V ZRUNIRUFH GHYHORSPHQW SURJUDPV WR D ZKROH QHZ OHYHO 2QH NH\ UHVSRQVH FDPH TXLFNO\ IURP +XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH ZKLFK ODXQFKHG ZKDW EHFDPH NQRZQ DV 7(& 60$57 D ZKROH QHZ IDFLOLW\ ZKLFK LW RSHQHG LQ -DQXDU\ 7KH IDFLOLW\ WKH IXOO QDPH LV 7UDLQLQJ DQG (GXFDWLRQ &HQWHU IRU 6HPLFRQGXFWRU 0DQXIDFWXULQJ DQG $OWHUQDWLYH DQG 5HQHZDEOH 7HFKQRORJLHV LV D MRLQW LQLWLDWLYH EHWZHHQ WKH FROOHJH DQG WKH 1HZ <RUN 6WDWH (QHUJ\ 5HVHDUFK DQG 'HYHORSPHQW $XWKRULW\ ,W LV ORFDWHG DW WKH 6DUDWRJD 7HFKQRORJ\ DQG (QHUJ\ 3DUN ZKLFK LV QH[W WR WKH /XWKHU )RUHVW 7HFKQRORJ\ &DPSXV ZKHUH WKH *OREDO)RXQGULHV SODQW LV XQGHU FRQVWUXFWLRQ %XW LWV PLVVLRQ LV QRW OLPLWHG WR WUDLQLQJ ZRUNHUV MXVW IRU WKDW FKLS IDE SODQW ,QVWHDG WKH FROOHJH KDV WDNHQ WKH RSSRUWXQLW\ SRVHG E\ WKDW LPPHGLDWH WUDLQLQJ QHHG WR FUDIW D ORQJHU WHUP VWUDWHJ\ IRU D FHQWHU WKDW ZLOO DOVR WUDLQ VNLOOHG WHFKQLFLDQV IRU WKH JURZLQJ UHQHZDEOH HQHUJLHV ¿HOG KHOSLQJ WR DFFHOHUDWH WKH UHJLRQDO JURZWK RI WKDW LQGXVWU\ DV ZHOO 7(& 60$57 IHDWXUHV PRUH WKDQ D GR]HQ VWDWH RI WKH DUW FODVVURRPV DQG ODERUDWRULHV WKDW ZLOO EH XVHG WR WUDLQ WKH ZRUNIRUFH LQ VHPLFRQGXFWRU PDQXIDFWXULQJ JUHHQ WHFKQRORJLHV LQFOXGLQJ SKRWRYROWDLF DQG LQ KRPH HQHUJ\ HI¿FLHQF\ JHRWKHUPDO DOWHUQDWLYH IXHOV DQG ZLQG HQHUJ\ ,W KDV WZR IRRW KLJK ZLQG WXUELQHV WKDW ZLOO EH XVHG IRU WUDLQLQJ DQG WKDW ZLOO DOVR JHQHUDWH QHDUO\ NLORZDWW KRXUV RI HQHUJ\ WR KHOS SRZHU WKH FDPSXV ,Q DGGLWLRQ WKH FROOHJH VD\V WKH IDFLOLW\ ZLOO RIIHU FRXUVHV LQ EXVLQHVV DQG LQ WKH OLEHUDO DUWV DQG VFLHQFHV DUHD LQFOXGLQJ (QJOLVK SV\FKRORJ\ DQG PDWK PDNLQJ LW HDVLHU IRU VWXGHQWV ZKR JR WKHUH ZLWK D YRFDWLRQ LQ PLQG WR WDNH WKH EURDGHU FXUULFXOXP WKDW ZLOO TXDOLI\ WKHP IRU IXOO DVVRFLDWH¶V GHJUHHV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV &DSLWDO 'LVWULFW

$/801,

+2:

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ WKH &DSLWDO 'LVWULFW

0$77(56

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV 2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

7RWDO 681< GHJUHHV

\U \U

$UW

&RPPXQLFDWLRQV 0HGLD

/DZ 3XEOLF 6HUYLFHV

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

6RFLDO 6HUYLFHV

+RVSLWDOLW\ 6HUYLFH

(GXFDWLRQ

+HDOWK

&RPSXWHU 0DWKHPDWLFV

7HFKQLFDO 7UDGHV

%XVLQHVV )LQDQFH

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

7KH &DSLWDO 'LVWULFW·V PRUH WKDQ 681< DOXPQL DUH D FULWLFDO VRXUFH RI ODERU IRU WKH UHJLRQ·V H[SORVLYH LQQRYDWLRQ DQG WHFKQRORJ\ EDVHG HFRQRP\ :LWK D VLJQLÀFDQW WZR \HDU FROOHJH SUHVHQFH DV ZHOO DV RQH RI WKH VWDWH·V ODUJHVW XQLYHUVLW\ FHQWHUV WKH &DSLWDO 'LVWULFW LV EROVWHUHG E\ D GLYHUVH 681< WUDLQHG ZRUNIRUFH 7KH 681< DOXPQL KROGLQJ GHJUHHV LQ VFLHQFH HQJLQHHULQJ HQYLURQPHQWDO ÀHOGV FDQ ÀOO PRUH WKDQ WKUHH TXDUWHUV RI UHODWHG GHJUHH UHTXLULQJ MREV LQ WKH UHJLRQ 0RVW RI WKHVH GHJUHHV DUH UHODWHG WR HQJLQHHULQJ DQG ELRPHGLFLQH UHÁHFWLQJ WKH UHJLRQ·V JURZLQJ QDQRWHFK LQGXVWU\ 5HSUHVHQWDWLYH RI WKH JRYHUQPHQWDO IXQFWLRQV RI WKH &DSLWDO 'LVWULFW ODUJH QXPEHUV RI DOXPQL ZLWK ODZ DQG SXEOLF VHUYLFH GHJUHHV UHVLGH LQ WKH UHJLRQ 7KHVH LQFOXGH DOXPQL RI WKH 8QLYHUVLW\ DW $OEDQ\·V SROLWLFDO VFLHQFH DQG SXEOLF DGPLQLVWUDWLRQ SURJUDPV DV ZHOO DV JUDGXDWHV RI WKH 8QLYHUVLW\ DW %XIIDOR /DZ 6FKRRO )URP WKH UHJLRQ·V FRPPXQLW\ FROOHJHV FRPH PDQ\ DOXPQL ZLWK GHJUHHV UHODWHG WR FULPLQDO MXVWLFH DQG SDUDOHJDO VHUYLFHV ([WHQVLYH YRFDWLRQDO SURJUDPV LQ WKH WUDGHV DQG KRVSLWDOLW\ LQ WKH UHJLRQ FRQWULEXWH WR DQ DOXPQL SRRO ZLWK WKH SRWHQWLDO WR ÀOO VL[ LQ DQG QLQH LQ GHJUHH UHTXLULQJ MREV LQ WKHVH ÀHOGV UHVSHFWLYHO\ *UDQWLQJ GHJUHHV HYHU\ \HDU 681< DFFRXQWV IRU DERXW RQH LQ WKUHH FROOHJH JUDGXDWHV LQ WKH &DSLWDO 'LVWULFW +LVWRULF DOXPQL SDWWHUQV VKRZ MXVW RYHU RQH WKLUG VWD\ LQ WKH &DSLWDO 'LVWULFW WR OLYH DQG ZRUN DQG QHDUO\ WKUHH LQ IRXU VWD\ LQ WKH VWDWH VXJJHVWLQJ WKH PDMRU UROH WKHVH 681<V SOD\ LQ VXSSO\LQJ NQRZOHGJH ZRUNHUV VWDWHZLGH


$OEDQ\·V &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ JHQHUDWHV JUDGXDWHV SULPHG IRU ZRUN LQ WKH &DSLWDO 'LVWULFW·V QDQRWHFKQRORJ\ LQGXVWU\ LQFOXGLQJ WKH UHJLRQ·V SURSRUWLRQDOO\ KLJK QXPEHU RI GHJUHHV UHODWHG WR HOHFWURQLFV LPDJLQJ D VWUDWHJLF VWDWH FOXVWHU LQGXVWU\ 7KURXJK DQ DUUD\ RI FRRUGLQDWHG WUDLQLQJ DQG VNLOOV EXLOGLQJ SURJUDPV IRU HPHUJLQJ LQGXVWULHV DQG PRVW LPPHGLDWHO\ WKH H[SDQVLRQ RI *OREDO)RXQGULHV LQ 0DOWD 1 < 681< KDV WDNHQ RQ WKH OHDG UROH LQ ZRUNIRUFH SUHSDUDWLRQ LQ WKH &DSLWDO 'LVWULFW )RU LQVWDQFH 681< $GLURQGDFN·V

7HFK 9DOOH\ 7UDFN HPSKDVL]HV HQJLQHHULQJ VFLHQFH WHFKQRORJ\ DQG PDWKHPDWLFV DV ZHOO DV ´PXVW KDYHµ FRPSOHPHQWDU\ VNLOOV LQ SUREOHP VROYLQJ SURDFWLYH GHFLVLRQ PDNLQJ RSSRUWXQLVWLF FROODERUDWLRQ LQWHUSHUVRQDO DFFRXQWDELOLW\ EXVLQHVV HWKLFV DQG D JOREDO RXWORRN LQ WKH ZRUNSODFH +XGVRQ 9DOOH\ &RPPXQLW\ &ROOHJH KDV GHYHORSHG 7(& 60$57 WR WUDLQ VNLOOHG WHFKQLFLDQV IRU *OREDO)RXQGULHV 0HDQZKLOH RWKHU SURJUDPV DGGUHVV ZRUNIRUFH VKRUWDJHV LQ FRUH LQGXVWULHV VXFK DV 6FKHQHFWDG\ &RXQW\ &RPPXQLW\ &ROOHJH·V HIIRUWV WR WUDLQ KHDOWK FDUH ZRUNHUV

&DSLWDO 'LVWULFW 681<V *HQHUDWH D /DUJH 6KDUH RI 'HJUHHV IRU 1<6 &OXVWHU ,QGXVWULHV

(OHFWURQLFV ,PDJLQJ ,QIRUPDWLRQ 7HFKQRORJ\ %DFN 2IÀFH

681< SUHSDUHV WKH VWDWH·V ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ JUDQWLQJ GHJUHHV UHTXLUHG E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV LQGLFDWHV WKLV UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO

6FKHQHFWDG\ &RXQW\ &RPPXQLW\ &ROOHJH

6FKHQHFWDG\ &RXQW\ &RPPXQLW\ &ROOHJH /DXQFKLQJ 1HZ 3URJUDP WR )LOO +HDOWK &DUH 1HHGV

&$6( ,1 32,17 3KRWR FRXUWHV\ RI (OOLV 0HGLFLQH

+HDOWK FDUH HPSOR\HUV KDYH D KDUG WLPH ¿QGLQJ WUDLQHG ZRUNHUV ² DQG ZHOIDUH UHFLSLHQWV QHHG MREV 7KLV SURMHFW SXWV WKH WZR WRJHWKHU

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

6FKHQHFWDG\ &RXQW\ &RPPXQLW\ &ROOHJH KDV REWDLQHG D PDMRU JUDQW IURP WKH IHGHUDO 'HSDUWPHQW RI +HDOWK DQG +XPDQ 6HUYLFHV WR WUDLQ KHDOWK FDUH ZRUNHUV 7RWDOLQJ PLOOLRQ WKH JUDQW LV WKH ODUJHVW VXFK JUDQW LQ 1HZ <RUN 6WDWH DQG LV GHVLJQHG WR WUDLQ 7HPSRUDU\ $VVLVWDQFH WR 1HHG\ )DPLOLHV 7$1) UHFLSLHQWV DQG ORZ LQFRPH LQGLYLGXDOV IRU SURIHVVLRQDO MREV LQ WKH KHDOWK +2: FDUH ¿HOG 7KHVH LQFOXGH &HUWL¿HG 1XUVLQJ $VVLVWDQW &1$ /LFHQVHG 3UDFWLFDO 1XUVH /31 5HJLVWHUHG 1XUVH 51 DQG (PHUJHQF\ 0HGLFDO 7HFKQLFLDQ (07 6FKHQHFWDG\ 0$77(56 ZLOO DOVR GHYHORS D +HDOWK ,QIRUPDWLRQ 7HFKQRORJ\ +,7 72 7+( WUDLQLQJ SURJUDP 7KH &HQWHU IRU :RUNIRUFH +HDOWK 6WXGLHV &20081,7< GRFXPHQWHG WKH KLJK GHPDQG IRU WUDLQHG HPSOR\HHV LQ WKHVH RFFXSDWLRQV LQ WKH &DSLWDO 'LVWULFW 6FKHQHFWDG\ ZLOO SDUWQHU ZLWK FRPPXQLW\ DJHQFLHV RQ WKH SURMHFW QDPHG +HDOWK &DUH 2SSRUWXQLWLHV 'XULQJ LWV ¿YH \HDU OLIH WKH HIIRUW ZLOO WUDLQ VRPH LQGLYLGXDOV DQQXDOO\ 7KH SURMHFW LQFOXGHV RXWUHDFK HIIRUWV VNLOOV DVVHVVPHQW RQJRLQJ FDVH PDQDJHPHQW VXSSRUW WUDQVSRUWDWLRQ GHSHQGHQW FDUH DQG WHPSRUDU\ KRXVLQJ VR VWXGHQWV FDQ PDLQWDLQ HPSOR\PHQW DQG SXUVXH FDUHHU DGYDQFHPHQW -RE UHWHQWLRQ DQG FDUHHU DGYDQFHPHQW RXWFRPHV ZLOO DOVR EH WUDFNHG

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV &HQWUDO 1HZ <RUN

681< 7<3( 8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

&HQWUDO 1HZ <RUN

2VZHJR 26:(*2

+2: 0$77(56

2QRQGDJD &D\XJD &RXQW\

8SVWDWH 0HGLFDO 8QLYHUVLW\

681<V

(QYLURQPHQWDO 6FLHQFH DQG )RUHVWU\

2121'$*$

0$',621

0RUULVYLOOH

&$<8*$

&RUWODQG &257/$1'

681< LQ &HQWUDO 1HZ <RUN &HQWUDO 1HZ <RUN·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ÀIWK RI WKH UHJLRQ·V SRSXODWLRQ

7KH &HQWUDO 1HZ <RUN (FRQRP\

681< LV D ELJ SDUW RI WKH UHJLRQ·V WUDQVLWLRQ WR D NQRZOHGJH EDVHG HFRQRP\ IRVWHULQJ JURZWK LQ VXFK LQGXVWULHV DV KHDOWK FDUH DQG PHGLFDO GHYLFHV ELRSURFHVVLQJ HOHFWURQLFV DQG FOHDQ HQHUJ\ WHFKQRORJLHV $PRQJ LWV HFRQRPLF GHYHORSPHQW VXSSRUW SURJUDPV DUH &D\XJD &RPPXQLW\ &ROOHJH·V HQWUHSUHQHXULDO WUDLQLQJ DQG D PDMRU 681< SDUWQHUVKLS ZLWK SULYDWH XQLYHUVLWLHV WR EXLOG D ELRWHFKQRORJ\ LQFXEDWRU $W WKH VDPH WLPH 681< VXSSRUWV DGYDQFHV LQ WKH UHJLRQ·V PDQXIDFWXULQJ EDVH WKURXJK YRFDWLRQDO GHJUHH SURJUDPV WKDW UHWRRO WKH VNLOOHG ZRUNIRUFH $V WR WKH ERWWRP OLQH WKHVH LQVWLWXWLRQV SXPS ELOOLRQ LQWR WKH VWDWH DQG UHJLRQDO HFRQRPLHV RQ DQ DQQXDO EDVLV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI &HQWUDO 1HZ <RUN·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

VWXGHQWV DWWHQGHG D &HQWUDO 1HZ <RUN 681< VFKRRO

678'(176

:KHUH WKHVH VWXGHQWV RULJLQDWHG IURP IURP IURP ZLWKLQ HOVHZKHUH HOVHZKHUH WKLV UHJLRQ

(03/2<((6

LQ 1<6

LQ 8 6

681< IDFXOW\ DQG VWDII HPSOR\HG LQ &HQWUDO 1HZ <RUN

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

LQ ZRUOG

7RS &RXQWULHV &KLQD &DQDGD ,QGLD -DSDQ 6 .RUHD

DWWHQGHG D \U DWWHQGHG D \U

IURP HOVHZKHUH

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ &HQWUDO 1HZ <RUN

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL GDWD DV RI 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV 6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

1RQ WUDGLWLRQDO VWXGHQWV DJH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV &HQWUDO 1HZ <RUN

+2:

&HQWUDO 1HZ <RUN 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

&HQWUDO 1HZ <RUN 681<V· ELOOLRQ HFRQRPLF LPSDFW LQFOXGHV D ELOOLRQ LPSDFW RQ WKH UHJLRQDO HFRQRP\ ,Q WKLV HFRQRPLF DFWLYLW\ VXSSRUWHG PRUH WKDQ MREV LQ UHODWHG LQGXVWULHV DFURVV WKH WK WKH KH VWDWH LQ ,QQRYDWLRQ DGGLWLRQ WR IDFXOW\ (FRQRP\ DQG VWDII HPSOR\HG E\ ,Q WKH EHVW RI WKH ODVW WKUHH 681< LQ WKLV \HDUV &HQWUDO UHJLRQ 7D[HV 1HZ <RUN 681<V JHQHUDWHG IRU JHQHUDWHG« ORFDO DQG VWDWH LQYHQWLRQ JRYHUQPHQW GLVFORVXUHV WRWDOHG PLOOLRQ SDWHQW DSSOLFDWLRQV 7KH SULPDU\ GULYHU RI WKH SDWHQWV ELOOLRQ VSLQ RII &HQWUDO 1HZ OLFHQVHV <RUN 681< 6RXUFH ,QWHUYLHZ DQG VXUYH\ LPSDFW LV GDWD IURP 681< LQVWLWXWLRQV WKH 8SVWDWH 0HGLFDO 8QLYHUVLW\ ZKLFK HQUROOV MXVW RYHU VWXGHQWV DQG LQFOXGHV D PDMRU XQLYHUVLW\ KRVSLWDO 7KH XQLYHUVLW\ DFFRXQWV IRU PRUH WKDQ KDOI RI 681<·V HFRQRPLF LPSDFW LQ WKLV UHJLRQ GHULYHG SULPDULO\ IURP UHYHQXHV IRU KRVSLWDO VHUYLFHV

+HUH·V KRZ LW KDSSHQV ELOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWVV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

ELOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ 6WXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ &HQWUDO 1HZ <RUN (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG &HQWUDO 1HZ <RUN 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

% 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

7KH UHJLRQ·V XQLYHUVLW\ FHQWHUV DUH SUROLÀF JHQHUDWRUV RI UHVHDUFK DQG LQQRYDWLRQ ZLWK LQYHQWLRQ GLVFORVXUHV VHYHQ SDWHQWV DQG RQH VSLQ RII LQ RQH \HDU $GGLWLRQDOO\ 8SVWDWH 0HGLFDO DQG WKH &ROOHJH RI (QYLURQPHQWDO 6FLHQFH DQG )RUHVWU\ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


DUH SDUWQHULQJ ZLWK 6\UDFXVH 8QLYHUVLW\ DQG VHYHUDO RWKHU SULYDWH FROOHJHV LQ WKH UHJLRQ WR GHYHORS D %LRWHFKQRORJ\ 5HVHDUFK &HQWHU WR QXUWXUH VWDUW XS YHQWXUHV 681< VXSSRUWV FRPPXQLW\ YLWDOLW\ LQ &HQWUDO 1HZ <RUN WKURXJK DQ DUUD\ RI VSHFLDO SURJUDPV DQG VHUYLFHV )RU LQVWDQFH 681<V LQ WKLV UHJLRQ DUH IUHTXHQW DQG FRPPLWWHG SDUWQHUV RQ FRPPXQLW\ GHYHORSPHQW LQLWLDWLYHV 0RUULVYLOOH 6WDWH &ROOHJH RSHUDWHV D IRRG SURFHVVLQJ IDFLOLW\ IRU ORFDO IDUPHUV DQG SURGXFHUV DQG 681< &RUWODQG·V 0DLQ 6WUHHW RXWUHDFK IDFLOLW\ RIIHUV FLYLF HQJDJHPHQW RSSRUWXQLWLHV FXOWXUDO VSDFHV DQG HFRQRPLF GHYHORSPHQW SURJUDPV 7KH ÀYH 681< LQVWLWXWLRQV RI &HQWUDO 1HZ <RUN FRPELQHG WR GUDZ RYHU YLVLWRUV WR WKHLU FDPSXVHV LQ ZLWK PRUH WKDQ RYHUQLJKW YLVLWRUV VSHQGLQJ PLOOLRQ DW ORFDO KRWHOV UHVWDXUDQWV DQG DWWUDFWLRQV

&$6( ,1 32,17 681<¶V 8SVWDWH 0HGLFDO 8QLYHUVLW\ DQG WKH &ROOHJH RI (QYLURQPHQWDO 6FLHQFH DQG )RUHVWU\

681< ,QVWLWXWLRQV ,Q 6\UDFXVH 3RRO (IIRUWV 7R %XLOG %LRWHFKQRORJ\ %ULQJLQJ DGYDQFHV LQ ELRWHFKQRORJ\ WR WKH FRPPHUFLDO PDUNHWSODFH LV WKH JRDO RI WKH &HQWUDO 1HZ <RUN %LRWHFKQRORJ\ 5HVHDUFK &HQWHU %5& /HG E\ 681<¶V 8SVWDWH 0HGLFDO 8QLYHUVLW\ DQG WKH &ROOHJH RI (QYLURQPHQWDO 6FLHQFH DQG )RUHVWU\ (6) WKH %5& DOVR LQFOXGHV 6\UDFXVH 8QLYHUVLW\ /H0R\QH &ROOHJH DQG SULYDWH LQWHUHVWV &RQVWUXFWLRQ RI WKH %5& ZDV IXQGHG E\ WKH 6WDWH 8QLYHUVLW\ &RQVWUXFWLRQ )XQG DQG RWKHU VWDWH PRQLHV 7KH PLOOLRQ EXLOGLQJ ZLOO KRXVH ZHW ODE RI¿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± 8VHV RI %LRWHFKQRORJ\ WR ,PSURYH +HDOWK &DUH DQG (QYLURQPHQWDO %LRWHFKQRORJ\ $SSOLFDWLRQV ± DUH EXLOW DURXQG WKH V\QHUJ\ EHWZHHQ 8SVWDWH 0HGLFDO DQG (6)

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV &HQWUDO 1HZ <RUN

+2:

$/801,

0$77(56

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ &HQWUDO 1HZ <RUN

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV 2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

7RWDO 681< GHJUHHV

\U \U

$UW

/DZ 3XEOLF 6HUYLFHV

&RPPXQLFDWLRQV 0HGLD &RPSXWHU 0DWKHPDWLFV

+HDOWK

6RFLDO 6HUYLFHV

(GXFDWLRQ

+RVSLWDOLW\ 6HUYLFH

7HFKQLFDO 7UDGHV

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

%XVLQHVV )LQDQFH

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

1XPEHULQJ RYHU 681< DOXPQL LQ &HQWUDO 1HZ <RUN UHSUHVHQW RQH LQ IRXU PHPEHUV RI WKH UHJLRQ·V VNLOOHG ODERU VXSSO\ ,Q IDFW 681< DOXPQL DORQH FRXOG ÀOO HYHU\ GHJUHH UHTXLULQJ MRE LQ WKH UHJLRQ LQ ÀHOGV DV GLYHUVH DV DUW DQG HQJLQHHULQJ &RPSXWHU PDWKHPDWLFV D W\SLFDOO\ ODERU VWUDSSHG ÀHOG EHQHÀWV IURP D SRRO RI 681< DOXPQL ZLWK UHODWHG GHJUHHV DQG HQRXJK FDSDFLW\ WR ÀOO IRXU RXW RI ÀYH MREV LQ WKLV LQGXVWU\ 7KH UHJLRQ·V VSHFLDOL]HG XQLYHUVLW\ FHQWHUV SOD\ DQ LPSRUWDQW UROH LQ WKLV DEXQGDQW VXSSO\ RI KLJKO\ WUDLQHG ZRUNHUV )RU LQVWDQFH QHDUO\ JUDGXDWHV IURP 681< 8SVWDWH 0HGLFDO 8QLYHUVLW\ DUH VWLOO LQ WKH UHJLRQ KROGLQJ GHJUHHV LQ PHGLFLQH PHGLFDO WHFKQRORJLHV RU WKHUDSLHV DQG QXUVLQJ 7KHVH KHDOWK JUDGXDWHV DORQJ ZLWK DOXPQL IURP RWKHU 681<V FRPELQH WR DOXPQL ZLWK WKH FDSDFLW\ WR ÀOO PRUH WKDQ WZR RXW RI WKUHH KHDOWK GHJUHH UHTXLULQJ MREV :LWK DOXPQL LQ &HQWUDO 1HZ <RUN 681< &RUWODQG LV WKH JUHDWHVW VRXUFH RI 681< EDFKHORU·V GHJUHHV LQ WKLV UHJLRQ 2YHU WZR WKLUGV RI WKHVH DOXPQL KROG GHJUHHV LQ HGXFDWLRQ FRQWULEXWLQJ VLJQLÀFDQWO\ WR WKH UHJLRQ·V DPSOH VXSSO\ RI WHDFKHUV DQG HGXFDWLRQ H[SHUWV 1RWDEO\ 681< DOXPQL LQ &HQWUDO 1HZ <RUN KDYH OHVV FDSDFLW\ IRU ÀOOLQJ MREV LQ WKH KRVSLWDOLW\ VHUYLFH DQG WHFKQLFDO WUDGHV LQGXVWULHV ERWK RI ZKLFK GHSHQG IDLUO\ KHDYLO\ RQ WKRVH KROGLQJ WZR \HDU GHJUHHV :KLOH WKH UHJLRQ·V VHYHQ 681< LQVWLWXWLRQV PLQW PRUH WKDQ JUDGXDWHV HYHU\ \HDU PRVW RI WKHVH DERXW WZR LQ WKUHH ZLOO OHDYH WKH UHJLRQ IRU ZRUN OLNHO\ D IDFWRU RI WKLV XSVWDWH UHJLRQ·V HFRQRPLF FKDOOHQJHV +RZHYHU 681< LQVWLWXWLRQV DUH ZRUNLQJ DJJUHVVLYHO\ WR SURSHO LQGXVWU\ JURZWK WKURXJK VWUDWHJLF


ZRUNIRUFH GHYHORSPHQW )RU LQVWDQFH 8SVWDWH 0HGLFDO LV H[SDQGLQJ DFFHVV WR LWV SURJUDPV WKURXJK EUDQFK &HQWUDO 1HZ <RUN 681<V *HQHUDWH FDPSXVHV D /DUJH 6KDUH RI DFURVV XSVWDWH 'HJUHHV IRU 1<6 1HZ <RUN DQG &OXVWHU ,QGXVWULHV 681< 2VZHJR &RPPXQLFDWLRQV FRXQVHOV 6RIWZDUH FRPPXQLW\ 0HGLD 6HUYLFHV PHPEHUV RQ 681< SUHSDUHV WKH VWDWH·V ZRUNIRUFH IRU VWUDWHJLF VPDOO EXVLQHVV FOXVWHU LQGXVWULHV E\ JUDQWLQJ GHJUHHV UHTXLUHG E\ MREV LQ VWDUW XSV WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG 2QRQGDJD GHJUHHV LQGLFDWHV WKLV &RPPXQLW\ UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ PRUH WR &ROOHJH·V 681<·V WRWDO GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR 6PDOO %XVLQHVV WR 681< GHJUHHV RYHUDOO 'HYHORSPHQW &HQWHU KDV RQH WR RQH FRXQVHOLQJ DQG JURXS WUDLQLQJ UDQJLQJ IURP ´)DVW 7UDFNµ IRU VWDUW XSV WR EXVLQHVV VNLOOV UHÀQHPHQW IRU FRQWUDFWRUV $GGLWLRQDOO\ &D\XJD &RPPXQLW\ &ROOHJH SURYLGHV D FXVWRPL]HG WUDLQLQJ SURJUDP LQ OHDQ PDQXIDFWXULQJ

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

&$6( ,1 32,17 &D\XJD &RPPXQLW\ &ROOHJH

&D\XJD &RPPXQLW\ &ROOHJH /D\V D )RXQGDWLRQ IRU (QWUHSUHQHXUVKLS LQ $XEXUQ +2: 7KH 6WDUGXVW (QWUHSUHQHXULDO ,QVWLWXWH D WKUHH VWRU\ IDFLOLW\ LQ GRZQWRZQ $XEXUQ KRXVHV &D\XJD &RPPXQLW\ &ROOHJH¶V ZRUNIRUFH GHYHORSPHQW SURJUDP ,W DOVR KRXVHV ¿YH 0$77(56 EXVLQHVV LQFXEDWRU VSDFHV D ³VPDUW URRP´ IRU FRQIHUHQFHV 72 7+( DQG FODVVHV &20081,7< WKH FRXQW\ HFRQRPLF &DQ D FRPPXQLW\ FROOHJH GHYHORSPHQW DJHQF\ SDUWQHU FUHDWLYHO\ ZLWK RWKHU DQG WKH &D\XJD FRPPXQLW\ RUJDQL]DWLRQV WR &RXQW\ &KDPEHU RI HQKDQFH HFRQRPLF DQG VRFLDO &RPPHUFH 7KLV SK\VLFDO SUR[LPLW\ DQG FORVH FRRUGLQDWLRQ DPRQJ WKH LQVWLWXWH¶V GHYHORSPHQW RSSRUWXQLWLHV" SDUWQHUV ² LQFOXGLQJ WKH 6WDUGXVW )RXQGDWLRQ ² HQDEOHV WKH RUJDQL]DWLRQ WR RIIHU ZRXOG EH DQG QHZ HQWUHSUHQHXUV D ³¿UVW VWRS´ VHW RI UHVRXUFHV &D\XJD H[SDQGHG RQ WKLV DSSURDFK DQG XVHG DQ ³LQIXVLRQ PRGHO´ WR HPEHG DQ HQWUHSUHQHXULDO DSSURDFK WKURXJKRXW LWV DFDGHPLF FXUULFXOXP 7KH FROOHJH RIIHUV QRW RQO\ GHGLFDWHG HQWUHSUHQHXULDO FODVVHV EXW DOVR RSSRUWXQLWLHV WR DSSO\ HQWUHSUHQHXULDO SULQFLSOHV LQ RWKHU DFDGHPLF SURJUDPV LQFOXGLQJ (QJOLVK WHOHFRPPXQLFDWLRQV FULPLQDO MXVWLFH HDUO\ FKLOGKRRG HGXFDWLRQ DQG DUW $QG VSHFL¿F FRQWUDFW EDVHG WUDLQLQJ LV SURYLGHG WR ORFDO HPSOR\HUV WKURXJK &D\XJD¶V %XVLQHVV DQG ,QGXVWU\ &HQWHU

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV )LQJHU /DNHV

681< 7<3( 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV %URFNSRUW

)LQJHU /DNHV

25/($16 02152(

+2:

*(1(6((

*HQHVHH

681<V

0RQURH )LQJHU /DNHV

0$77(56 :<20,1*

:$<1(

*HQHVHR /,9,1*6721

217$5,2

6(1(&$

<$7(6

681< LQ WKH )LQJHU /DNHV :LWK 5RFKHVWHU DV LWV PHWURSROLWDQ FRUH WKH )LQJHU /DNHV UHJLRQ KROGV ÀYH 681< LQVWLWXWLRQV LQFOXGLQJ WZR XQLYHUVLW\ FROOHJHV DW %URFNSRUW DQG *HQHVHR ,WV VWXGHQW SRSXODWLRQ RI RYHU PDNHV WKH )LQJHU /DNHV WKH IRXUWK ODUJHVW FRQFHQWUDWLRQ RI 681< VWXGHQWV LQ WKH VWDWH 0RUH WKDQ 681< DOXPQL KDYH VHWWOHG LQ WKH UHJLRQ ZLWK DOPRVW WZR LQ WKUHH RI WKHVH D SURGXFW RI D )LQJHU /DNHV 681< $ERXW RQH LQ ÀYH RI WKH )LQJHU /DNHV SRSXODWLRQ LV DIÀOLDWHG ZLWK 681< DV D VWXGHQW HPSOR\HH RU DOXPQXV

7KH )LQJHU /DNHV (FRQRP\ 7KH )LQJHU /DNHV UHJLRQ LV GLVWLQJXLVKHG E\ LWV LQGXVWU\ EDVH LQ RSWLFV LPDJLQJ KLJK WHFK HOHFWURQLFV PDQXIDFWXULQJ OLIH VFLHQFHV LQIRUPDWLRQ WHFKQRORJ\ DJULFXOWXUH DQG WRXULVP DOO RI ZKLFK VLJQLÀFDQWO\ UHO\ RQ 681< IRU D FRQVWDQW VXSSO\ RI QHZ LGHDV DQG NQRZOHGJH ZRUNHUV :KLOH WKLV UHJLRQ KDV D VL]HDEOH SUHVHQFH RI SULYDWH KLJKHU HGXFDWLRQ LWV 681<V SURYLGH FRUH HFRQRPLF GHYHORSPHQW VXSSRUW )URP D VPDOO EXVLQHVV GHYHORSPHQW FHQWHU DW 681< %URFNSRUW WR 0RQURH &RPPXQLW\ &ROOHJH·V SDUWQHUVKLS ZLWK ORFDO KRVSLWDOV WR ERRVW HQUROOPHQW LQ LWV QXUVLQJ SURJUDP )LQJHU /DNHV 681<V DUH SXUVXLQJ D GLYHUVH UDQJH RI SURJUDPV DQG SROLFLHV WKDW WDS HPHUJLQJ HFRQRPLF RSSRUWXQLW\ ZKLOH DGGUHVVLQJ FULWLFDO JDSV LQ WDOHQW DQG UHVRXUFHV $GGLWLRQDOO\ WKHVH VFKRROV VHUYH DV DQ HFRQRPLF HQJLQH JHQHUDWLQJ RYHU D ELOOLRQ GROODUV DQQXDOO\

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI WKH )LQJHU /DNHV SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D )LQJHU /DNHV 681< :KHUH WKHVH VWXGHQWV RULJLQDWHG

(03/2<((6

IURP ZLWKLQ WKLV UHJLRQ

IURP IURP IURP HOVHZKHUH HOVHZKHUH HOVHZKHUH LQ 1<6

LQ 8 6

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ WKH )LQJHU /DNHV 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

LQ ZRUOG

7RS &RXQWULHV -DSDQ &DQDGD &KLQD 6 .RUHD 9LHWQDP

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ HUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD H LQIRUPDWLRQ 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ WKH )LQJHU /DNHV

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV

1RQ WUDGLWLRQDO VWXGHQWV DJH

6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV )LQJHU /DNHV

+2:

)LQJHU /DNHV 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

)LQJHU /DNHV 681<V VHQG ELOOLRQ LQWR WKH VWDWH HFRQRP\ DQQXDOO\ ZLWK WKHLU VSHQGLQJ DQG VSLQRII HFRQRPLF DFWLYLW\ VXSSRUWLQJ QHDUO\ MREV DERYH DQG EH\RQG IDFXOW\ DQG VWDII $ERXW PLOOLRQ RI WKHVH LPSDFWV WKH WK H RU DOPRVW ,QQRYDWLRQ SHUFHQW RI WKH (FRQRP\ WRWDO LPSDFW VWD\V ZLWKLQ WKH )LQJHU ,Q WKH EHVW RI WKH ODVW WKUHH \HDUV /DNHV UHJLRQDO )LQJHU /DNHV 681<V HFRQRP\ JHQHUDWHG« 7KHVH 681<V DOVR VXSSRUWHG LQYHQWLRQ RYHU GLVFORVXUHV PLOOLRQ LQ SDWHQW VDOHV LQFRPH DSSOLFDWLRQV DQG SURSHUW\ VSLQ RII WD[HV IRU VWDWH DQG ORFDO 6RXUFH ,QWHUYLHZ DQG VXUYH\ GDWD IURP 681< LQVWLWXWLRQV JRYHUQPHQW LQ

+HUH·V KRZ LW KDSSHQV PLOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWVV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

PLOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

)LQJHU /DNHV 681<V PDNH LPSRUWDQW FRQWULEXWLRQV WR FRPPXQLW\ YLWDOLW\ LQ WKH UHJLRQ 5HFUHDWLRQDO DQG FXOWXUDO DPHQLWLHV DQG RWKHU FDPSXV HYHQWV DQG DWWUDFWLRQV KHOSHG GUDZ URXJKO\ YLVLWRUV LQ 7KH DSSUR[LPDWHO\ HVWLPDWHG WR VWD\ RYHUQLJKW VSHQW PLOOLRQ RQ ORGJLQJ IRRG DQG HQWHUWDLQPHQW SULPDULO\ EHQHÀWWLQJ ORFDO EXVLQHVVHV

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU PLOOLRQ LQ WKH )LQJHU /DNHV (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH )LQJHU /DNHV 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

% 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

681< LQVWLWXWLRQV LQ WKH )LQJHU /DNHV UHJLRQ DOVR DGGUHVV UHJLRQDO HFRQRPLF FKDOOHQJHV E\ SURYLGLQJ EXVLQHVVHV DQG FRPPXQLW\ PHPEHUV ZLWK WHFKQLFDO DVVLVWDQFH DQG UHVRXUFHV )RU LQVWDQFH 0RQURH &RPPXQLW\ &ROOHJH SDUWQHUV ZLWK D 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


QRQSURÀW LQ WKH UHJLRQ WR VSRQVRU VWXGHQWV LQWHUHVWHG LQ FDUHHUV LQ FRQVWUXFWLRQ 7KH FROOHJH SURYLGHV D ULJRURXV WUDLQLQJ SURJUDP ZKLOH WKH QRQSURÀW IROORZV XS ZLWK UpVXPp GHYHORSPHQW LQWHUYLHZLQJ VNLOOV DQG MRE SODFHPHQW *HQHVHH &RPPXQLW\ &ROOHJH·V %XVLQHVV DQG (PSOR\HH 6NLOOV 7UDLQLQJ &HQWHU RIIHUV FRXQVHOLQJ WUDLQLQJ DQG LQGXVWU\ UHVHDUFK IRU HQWUHSUHQHXUV DQG RUJDQL]DWLRQV 681< *HQHVHR RSHUDWHV D GHVWLQDWLRQ UHVWDXUDQW DQG LQQ WKDW GUDZV YLVLWRUV WR WKH DUHD DQG VHUYHV FRPPXQLW\ PHPEHUV

&$6( ,1 32,17 3KRWR FRXUWHV\ 1HZGLJV FRP

681< *HQHVHR

*HQHVHR )RFXVHV 2Q (QWUHSUHQHXUVKLS ± IRU %XVLQHVV DQG IRU WKH &RPPXQLW\ )RU PRUH WKDQ VHYHQ \HDUV 681< *HQHVHR DQG LWV 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU 6%'& KDYH ZRUNHG ZLWK 5RFKHVWHU¶V 6RXWK :HGJH 3ODQQLQJ &RPPLWWHH 6:3& WR FUHDWH DQ HFRQRPLF GHYHORSPHQW PRGHO WKDW KDV GHOLYHUHG VXSHULRU UHVXOWV LQ RQH RI 5RFKHVWHU¶V GHVLJQDWHG UHGHYHORSPHQW DUHDV 7KH 6%'& HQFRXUDJHG 6:3& D QHLJKERUKRRG SUHVHUYDWLRQ FRPPLWWHH WR DGRSW D FRPSUHKHQVLYH DSSURDFK WR UHGHYHORSPHQW WKDW KDV UHVXOWHG LQ WKH 6RXWK :HGJH DUHD EHFRPLQJ D PRGHO IRU RWKHU DUHDV RI WKH FLW\ 7KH 6RXWK :HGJH WRGD\ LV UHFRJQL]HG DV WKH ³KRWWHVW´ GHYHORSPHQW DUHD LQ WKH FLW\ ZLWK LQFUHDVHG UHVLGHQW VDWLVIDFWLRQ ULVLQJ SURSHUW\ YDOXHV DQG D SHUFHQW VXFFHVV UDWH LQ QHZ EXVLQHVV VWDUW XSV DIWHU WKUHH \HDUV *HQHVHR VWXGHQW WHDPV XQGHU 6%'& GLUHFWLRQ KDYH EHHQ SURYLGLQJ EXVLQHVV VXSSRUW VHUYLFHV WR WKH 6:3& DQG WR LQGLYLGXDO HQWUHSUHQHXUV LQ WKH DUHD VWUHQJWKHQLQJ WKHVH EXVLQHVVHV ZKLOH HQJDJLQJ LQ PHDQLQJIXO H[SHULHQWLDO OHDUQLQJ 7KLV VXSSRUW KDV HQJDJHG SURIHVVRUV DQG VWXGHQWV LQ FRPPXQLW\ ZLGH PDUNHW UHVHDUFK DQG PDUNHWLQJ SODQQLQJ WKDW KDV LGHQWL¿HG DQG SULRULWL]HG EXVLQHVVHV GHVLUHG E\ DUHD UHVLGHQWV DQG VKRSSHUV IURP VXUURXQGLQJ DUHDV 7KH VWXGHQWV¶ UHVHDUFK DQG SODQQLQJ OHG WR WKH FUHDWLRQ DQG LPSOHPHQWDWLRQ RI D YHU\ VXFFHVVIXO PDUNHWLQJ FDPSDLJQ HQWLWOHG ³6DYRU 2XU )ODYRU ´ ZKLFK KDV QRZ EHHQ DGRSWHG E\ WKH FRPPXQLW\ WR FHOHEUDWH DQG SURPRWH WKH DUHD¶V HWKQLF DQG FXOWXUDO GLYHUVLW\ DV ZHOO DV WR SURPRWH EXVLQHVV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV )LQJHU /DNHV

+2:

$/801,

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ WKH )LQJHU /DNHV

0$77(56

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV

2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

7RWDO 681< GHJUHHV

\U \U

$UW

&RPPXQLFDWLRQV 0HGLD

/DZ 3XEOLF 6HUYLFHV

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

6RFLDO 6HUYLFHV

+HDOWK

%XVLQHVV )LQDQFH

(GXFDWLRQ

+RVSLWDOLW\ 6HUYLFH &RPSXWHU 0DWKHPDWLFV 7HFKQLFDO 7UDGHV

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

5HSUHVHQWLQJ RQH WKLUG RI WKH )LQJHU /DNHV UHJLRQDO ODERU VXSSO\ WKH 681< DOXPQL OLYLQJ LQ WKLV UHJLRQ DUH D PDMRU IDFWRU LQ LWV QDVFHQW NQRZOHGJH HFRQRP\ )RU LQVWDQFH WKH QHDUO\ GHJUHH KROGHUV LQ VFLHQWLÀF DQG HQJLQHHULQJ ÀHOGV DUH HQRXJK WR ÀOO HYHU\ UHODWHG MRE LQ WKH UHJLRQ UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO ,Q IDFW WKH UHJLRQ·V 681< DOXPQL UHSUHVHQW D ODERU SRRO ODUJH HQRXJK WR ÀOO DW OHDVW KDOI WKH MREV DFURVV LQGXVWULHV 7KH RQO\ ÀHOGV ZKHUH WKH\ UHSUHVHQW D UHODWLYHO\ PLQRU VKDUH RI WKH UHJLRQ·V ODERU SRRO DUH FRPSXWHU PDWKHPDWLFV DQG WHFKQLFDO WUDGHV 7KH )LQJHU /DNHV UHJLRQ PLUURUV WKH UHVW RI WKH VWDWH LQ WHUPV RI WKH GLVWULEXWLRQ RI GHJUHHV DFURVV DOXPQL ZLWK WRS ÀHOGV RI VWXG\ LQFOXGLQJ HGXFDWLRQ EXVLQHVV KHDOWK VFLHQFH DQG ODZ 681< *HQHVHR DQG %URFNSRUW FRQWULEXWH VLJQLÀFDQWO\ WR WKH UHJLRQ·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ÁHFWLQJ D FULWLFDO PDVV RI ZRUNIRUFH DVVHWV


$PRQJ WKH FRQWULEXWLRQV RI WKLV UHJLRQ·V 681<V WR FOXVWHU LQGXVWULHV WDUJHWHG E\ WKH VWDWH DUH JUDGXDWHV SUHSDUHG IRU ZRUN LQ WUDYHO WRXULVP D PDMRU LQGXVWU\ LQ WKLV UHJLRQ NQRZQ IRU LWV VFHQLF ODNHV DQG YLQH\DUGV 7KH UHJLRQ·V FRPPXQLW\ FROOHJHV RIIHU D UDQJH RI UHODWHG )LQJHU /DNHV GHJUHH SURJUDPV 681<V *HQHUDWH D /DUJH 6KDUH RI DQG QRQ FUHGLW 'HJUHHV IRU 1<6 FRXUVHV &OXVWHU ,QGXVWULHV

7KH )LQJHU /DNHV &RPPXQLFDWLRQV 6RIWZDUH UHJLRQ IDFHV PDQ\ FKDOOHQJHV 0HGLD 6HUYLFHV 681< SUHSDUHV WKH VWDWH·V FRPPRQ ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ WR XSVWDWH JUDQWLQJ GHJUHHV UHTXLUHG FRPPXQLWLHV EXW E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU 681< LV KHOSLQJ UHODWHG GHJUHHV LQGLFDWHV WKLV UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ WR EULGJH JDSV PRUH WR 681<·V WRWDO LQ HFRQRPLF GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR WR RSSRUWXQLW\ 681< GHJUHHV RYHUDOO WKURXJK VHYHUDO LQQRYDWLYH ZRUNIRUFH GHYHORSPHQW SURJUDPV )RU LQVWDQFH 681< *HQHVHR·V 0LFURHQWHUSULVH $VVLVWDQFH 3URJUDP SURYLGHV ORZ DQG PRGHUDWH LQFRPH HQWUHSUHQHXUV ZLWK IUHH WUDLQLQJ DQG WHFKQLFDO DVVLVWDQFH WR VWDUW DQG PDLQWDLQ EXVLQHVVHV 0RQURH &RPPXQLW\ &ROOHJH FRPELQHV FRPPXQLW\ EXLOGLQJ ZLWK ZRUNIRUFH GHYHORSPHQW E\ DVVLVWLQJ ORZ LQFRPH DQG HFRQRPLFDOO\ GLVDGYDQWDJHG SRSXODWLRQV LQFOXGLQJ LQFDUFHUDWHG DGXOWV DQG \RXWK ZLWK WUDLQLQJ LQ FRQVWUXFWLRQ DQG WKH WUDGHV

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

&$6( ,1 32,17 )LQJHU /DNHV &RPPXQLW\ &ROOHJH

)LQJHU /DNHV &RPPXQLW\ &ROOHJH )RFXVHV &ROODERUDWLRQ WR +HOS %XLOG 6NLOOV )LQJHU /DNHV &RPPXQLW\ &ROOHJH LQ &DQDQGDLJXD RIIHUV ERWK FUHGLW DQG QRQ FUHGLW FRXUVHV WKDW \LHOG D PRUH FRPSHWLWLYH HI¿FLHQW ZRUNIRUFH ERWK E\ GHYHORSLQJ QHZ VNLOOV DQG KRQLQJ FXUUHQW RQHV .H\ WR LWV SODQQLQJ DUH FROODERUDWLRQV ZLWK SDUWQHUV VXFK DV WKH )LQJHU /DNHV )LQJHU /DNHV &RPPXQLW\ :RUNIRUFH ,QYHVWPHQW %RDUG WKH &ROOHJH ZRUNV FORVHO\ )LQJHU /DNHV $GYDQFHG 0DQXIDFWXUHUV¶ ZLWK FRPPXQLW\ SDUWQHUV (QWHUSULVH DQG LQGLYLGXDO HPSOR\HUV WR LGHQWLI\ NH\ ZRUNIRUFH 7ZR SURJUDPV LOOXVWUDWH WKH UDQJH RI QHHGV LQ WKH UHJLRQ LWV RIIHULQJV 7KH FROOHJH¶V 9LWLFXOWXUH DQG :LQH 7HFKQRORJ\ GHJUHH LV WKH RQO\ IRUPDO WZR \HDU WUDLQLQJ SURJUDP IRU YLQH\DUG PDQDJHUV ZLQHPDNHUV DQG RWKHUV ZLWK WKH VSHFLDOL]HG VNLOOV QHFHVVDU\ WR PDLQWDLQ JURZWK LQ WKH )LQJHU /DNHV ZLQH LQGXVWU\ 6WXGHQWV VWXG\ WKH VFLHQFH RI ZLQH PDNLQJ REWDLQ KDQGV RQ H[SHULHQFH LQ FRPPHUFLDO YLQH\DUGV IRFXV RQ VXVWDLQDELOLW\ DQG OHDUQ ZLQH WDVWLQJ DW WKH QHDUE\ 1HZ <RUN :LQH DQG &XOLQDU\ &HQWHU LQ &DQDQGDLJXD 0HDQZKLOH +2: WKH FROOHJH¶V QHZ WZR \HDU ,QVWUXPHQWDWLRQ DQG &RQWURO 7HFKQRORJLHV GHJUHH ZLOO WUDLQ VWXGHQWV IRU ZHOO SD\LQJ MREV 0$77(56 LQ KLJK WHFKQRORJ\ PDQXIDFWXULQJ 7KH SURJUDP VWUHVVHV DQ LQWHJUDWHG DSSURDFK WR FRXUVHV LQ PDWKHPDWLFV SK\VLFV 72 7+( FRPSXWDWLRQDO VNLOOV DQG VXEVHTXHQW FRXUVHV LQ HOHFWURQLFV &20081,7< GHVLJQ SURFHVV LPSURYHPHQW GDWD DFTXLVLWLRQ DQG DXWRPDWLRQ 6WXGHQWV SDUWLFLSDWH LQ KDQGV RQ SUREOHP VROYLQJ FDVH VWXGLHV MRE VKDGRZLQJ DQG UHTXLUHG LQWHUQVKLSV

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV +XGVRQ 9DOOH\

8/67(5

8OVWHU &RXQW\ 6XOOLYDQ &RXQW\

+XGVRQ 9DOOH\

1HZ 3DOW]

68//,9$1

+2:

'XWFKHVV '87&+(66

2UDQJH &RXQW\

681<V 3871$0

0$77(56

25$1*(

5RFNODQG

681< 7<3(

52&./$1'

:(67&+(67(5

:HVWFKHVWHU 3XUFKDVH

8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV

681< LQ WKH +XGVRQ 9DOOH\ -XVW QRUWK RI 1HZ <RUN &LW\ DUH WKH HLJKW 681< LQVWLWXWLRQV RI WKH +XGVRQ 9DOOH\ UHJLRQ 7KH 681< SUHVHQFH KHUH LV SUHGRPLQDQWO\ DW WKH WZR \HDU OHYHO ³ VL[ RI WKH UHJLRQ·V HLJKW VFKRROV DUH FRPPXQLW\ FROOHJHV LQFOXGLQJ :HVWFKHVWHU &RPPXQLW\ &ROOHJH RQH RI WKH VWDWH·V ODUJHVW $V D FRPPXQLW\ FROOHJH FHQWHU DQ RYHUZKHOPLQJ PDMRULW\ RU SHUFHQW RI WKH UHJLRQ·V 681< VWXGHQWV DUH IURP ZLWKLQ WKH UHJLRQ $SSUR[LPDWHO\ 681< DOXPQL OLYH DQG ZRUN LQ WKH UHJLRQ ZLWK WZR LQ WKUHH RI WKHVH JUDGXDWHV RI D +XGVRQ 9DOOH\ 681< ,Q WKLV KLJKO\ SRSXODWHG UHJLRQ 681< VWXGHQWV HPSOR\HHV DQG DOXPQL UHSUHVHQW DERXW SHUFHQW RI +XGVRQ 9DOOH\ UHVLGHQWV

7KH +XGVRQ 9DOOH\ (FRQRP\

7KH +XGVRQ 9DOOH\ UHJLRQDO HFRQRP\ LV HIIHFWLYHO\ OHYHUDJLQJ JURZWK RSSRUWXQLWLHV LQ VWUDWHJLF LQGXVWULHV VXFK DV DOWHUQDWLYH HQHUJ\ DQG JUHHQ WHFKQRORJ\ LQ DGGLWLRQ WR DQ H[LVWLQJ LQGXVWU\ EDVH LQ ELRWHFKQRORJ\ DQG PDQXIDFWXULQJ 7KH UHJLRQ·V HLJKW 681<V DUH SURDFWLYH SDUWQHUV LQ HFRQRPLF GHYHORSPHQW ZLWK HIIRUWV DV GLYHUVH DV D EXVLQHVV VXSSRUW FHQWHU IRU WKH HPHUJLQJ VRODU HQHUJ\ LQGXVWU\ LQ GHYHORSPHQW DW 681< 1HZ 3DOW] DQG HOGHU FDUH WUDLQLQJ DW 5RFNODQG &RPPXQLW\ &ROOHJH 7KHVH LQVWLWXWLRQV FRQWULEXWH GLUHFWO\ WR WKH UHJLRQ·V HFRQRP\ VXSSRUWLQJ ELOOLRQ LQ HFRQRPLF RXWSXW DQG SUHSDULQJ PRUH WKDQ QHZ JUDGXDWHV IRU WKH VWDWH DQG UHJLRQDO ZRUNIRUFH HYHU\ \HDU

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H HP RI +XGVRQ 9DOOH\·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D +XGVRQ 9DOOH\ 681< :KHUH WKHVH VWXGHQWV RULJLQDWHG IURP IURP IURP IURP ZLWKLQ HOVHZKHUH HOVHZKHUH HOVHZKHUH WKLV UHJLRQ

(03/2<((6

LQ 1<6

LQ 8 6

7RS &RXQWULHV ,QGLD 7XUNH\ 6 .RUHD -DSDQ &KLQD

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ WKH +XGVRQ 9DOOH\

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

LQ ZRUOG

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ WKH +XGVRQ 9DOOH\

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV

6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

1RQ WUDGLWLRQDO VWXGHQWV DJH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV +XGVRQ 9DOOH\

+2:

+XGVRQ 9DOOH\ 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

7KH +XGVRQ 9DOOH\ 681<V· ELOOLRQ HFRQRPLF LPSDFW LQFOXGHV D ELOOLRQ LPSDFW RQ WKH UHJLRQDO HFRQRP\ 7KLV UHJLRQ·V 681< LPSDFW RIIHUV WKH VWDWH WKH VHFRQG KLJKHVW UHWXUQ RQ LQYHVWPHQW LQ RXWSXW IRU HYHU\ GROODU WKH WK H UHFHLYHG LQ ,QQRYDWLRQ 1HZ <RUN 6WDWH (FRQRP\ DSSURSULDWLRQV JUDQWV DQG ,Q WKH EHVW RI FRQWUDFWV WKH ODVW WKUHH +XGVRQ 9DOOH\ \HDUV +XGVRQ 681<V DOVR 9DOOH\ 681<V JHQHUDWHG« JHQHUDWHG PRUH WKDQ PLOOLRQ LQYHQWLRQ LQ SURSHUW\ GLVFORVXUHV LQFRPH DQG SDWHQW VDOHV WD[HV IRU DSSOLFDWLRQV VWDWH DQG ORFDO SDWHQWV JRYHUQPHQW LQ VWDUW XSV (FRQRPLF OLFHQVHV DFWLYLW\ 6RXUFH ,QWHUYLHZ DQG VXUYH\ DVVRFLDWHG ZLWK GDWD IURP 681< LQVWLWXWLRQV +XGVRQ 9DOOH\ 681<V VXSSRUW PRUH WKDQ MREV DFURVV WKH UHJLRQ DQG VWDWH DERYH DQG EH\RQG WKH IDFXOW\ DQG VWDII WKDW ZRUN IRU WKHVH LQVWLWXWLRQV

+HUH·V KRZ LW KDSSHQV PLOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWVV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

PLOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV 0 YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ WKH +XGVRQ 9DOOH\ (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH +XGVRQ 9DOOH\ 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

%

1RWDEO\ WXLWLRQ DQG IHHV SOD\ D SURSRUWLRQDOO\ JUHDWHU UROH DV D UHYHQXH VRXUFH IRU +XGVRQ 9DOOH\ 681<V DFFRXQWLQJ IRU SHUFHQW RI WRWDO UHYHQXHV FRPSDUHG ZLWK SHUFHQW IRU 681< RYHUDOO 7KLV LV D SURGXFW RI +XGVRQ 9DOOH\·V KLJK HQUROOPHQW OHYHOV LW·V WKLUG LQ WKH VWDWH FRPELQHG ZLWK SURSRUWLRQDOO\

0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


IHZHU UHVHDUFK GROODUV JHQHUDWHG E\ D SUHGRPLQDQWO\ FRPPXQLW\ FROOHJH EDVH 2YHUDOO VWXGHQW VSHQGLQJ LQ WKH UHJLRQ LV ORZHU UHODWLYH WR WKH 681< DYHUDJH JLYHQ WKH SUHGRPLQDQFH RI SDUW WLPH VWXGHQWV DW WKH UHJLRQ·V VL[ FRPPXQLW\ FROOHJHV +XGVRQ 9DOOH\ 681<V VXSSRUW D YLWDO UHJLRQDO HFRQRP\ SULPDULO\ WKURXJK EXVLQHVV DVVLVWDQFH ZRUNIRUFH WUDLQLQJ DQG FRPPXQLW\ HQJDJHPHQW )RXU RI WKHVH VL[ LQVWLWXWLRQV KDYH D VPDOO EXVLQHVV GHYHORSPHQW FHQWHU LQFOXGLQJ WKDW RI 8OVWHU &RPPXQLW\ &ROOHJH ZKLFK KDV ZRUNHG ZLWK FOLHQWV VLQFH LW RSHQHG VHH &DVH LQ 3RLQW 8OVWHU 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHU S )HDWXULQJ WZR SURIHVVLRQDO VFKRROV LQ WKH ÀQH DQG SHUIRUPLQJ DUWV DQG WKH 3HUIRUPLQJ $UWV &HQWHU DW 681< 3XUFKDVH +XGVRQ 9DOOH\·V 681< LQVWLWXWLRQV RIIHU D ULFK YDULHW\ RI FXOWXUDO DPHQLWLHV WKDW KHOSHG DWWUDFW PRUH WKDQ PLOOLRQ YLVLWRUV WR WKH UHJLRQ LQ WKH VHFRQG KLJKHVW YLVLWRU OHYHO RI DOO UHJLRQV 0RUHRYHU WKHVH DWWUDFWLRQV EXLOG RQ WKH UHJLRQ·V GUDZ DV D GHVWLQDWLRQ IRU FXOWXUDO WRXULVP IXUWKHULQJ D VWURQJ DQG YLEUDQW VHQVH RI SODFH LQ WKH +XGVRQ 9DOOH\ UHJLRQ

&$6( ,1 32,17 8OVWHU 'XWFKHVV 6XOOLYDQ 2UDQJH 5RFNODQG DQG :HVWFKHVWHU &RPPXQLW\ &ROOHJHV

7UDLQLQJ &RQVRUWLXP +HOSV µ&OHDQ (QHUJ\¶ %XVLQHVVHV 7UDLQ WKHLU :RUNIRUFH 6HHGHG E\ D JUDQW IURP WKH 1HZ <RUN 6WDWH (QHUJ\ 5HVHDUFK DQG 'HYHORSPHQW $XWKRULW\ 8OVWHU 'XWFKHVV 6XOOLYDQ 2UDQJH 5RFNODQG DQG :HVWFKHVWHU FRPPXQLW\ FROOHJHV KDYH IRUPHG D &OHDQ (QHUJ\ 7HFKQRORJ\ 7UDLQLQJ &RQVRUWLXP KHOSLQJ HPHUJLQJ :RUNHUV LQ WKH HPHUJLQJ FOHDQ HQHUJ\ DQG HQHUJ\ HI¿FLHQF\ ³FOHDQ HQHUJ\´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

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV +XGVRQ 9DOOH\

+2:

$/801,

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ WKH +XGVRQ 9DOOH\

0$77(56

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV 2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

\U \U

7RWDO 681< GHJUHHV

$UW

6RFLDO 6HUYLFHV

/DZ 3XEOLF 6HUYLFHV

(GXFDWLRQ

+HDOWK

&RPSXWHU 0DWKHPDWLFV

+RVSLWDOLW\ 6HUYLFH

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

7HFKQLFDO 7UDGHV

&RPPXQLFDWLRQV 0HGLD

%XVLQHVV )LQDQFH

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

72 7+( :25.)25&(

3UHSDULQJ WKH :RUNIRUFH

2YHUDOO 681< SOD\V DQ LPSRUWDQW EXW UHODWLYHO\ VPDOOHU UROH LQ ODERU VXSSO\ LQ WKH +XGVRQ 9DOOH\ UHJLRQ JLYHQ WKH SUHYDOHQFH RI SULYDWH KLJKHU HGXFDWLRQ KHUH 7KH PRUH WKDQ 681< DOXPQL OLYLQJ LQ WKH +XGVRQ 9DOOH\ UHJLRQ DFFRXQW IRU SHUFHQW RI WKH UHJLRQ·V WRWDO ODERU VXSSO\ 1RQHWKHOHVV D FORVHU ORRN VKRZV 681< LV IXQGDPHQWDO WR ZRUNIRUFH SUHSDUDWLRQ LQ WKH +XGVRQ 9DOOH\ )RU LQVWDQFH WKH QHDUO\ 681< DOXPQL LQ WKH +XGVRQ 9DOOH\ KROGLQJ VFLHQFH DQG HQJLQHHULQJ GHJUHHV KDYH WKH SRWHQWLDO WR ÀOO WZR LQ WKUHH MREV LQ WKLV ÁRXULVKLQJ VHFWRU IRU WKH UHJLRQ 7KHVH VFLHQFH DQG HQJLQHHULQJ DOXPQL DUH SULPDULO\ JUDGXDWHV RI 681< XQLYHUVLW\ FHQWHUV RXWVLGH WKH UHJLRQ DV ZHOO DV 681< 1HZ 3DOW]·V 6FKRRO RI 6FLHQFH DQG (QJLQHHULQJ 7KH UHJLRQ·V WZR \HDU LQVWLWXWLRQV DOVR SOD\ DQ LPSRUWDQW UROH LQ ZRUNIRUFH SUHSDUDWLRQ +XGVRQ 9DOOH\·V VL[ FRPPXQLW\ FROOHJHV KDYH FROOHFWLYHO\ HGXFDWHG DERXW RU PRUH WKDQ RQH LQ WKUHH DOXPQL UHVLGLQJ LQ WKH UHJLRQ 7KHVH DOXPQL DUH HVSHFLDOO\ FULWLFDO WR WKH KHDOWK KRVSLWDOLW\ DQG WHFKQLFDO WUDGHV LQGXVWULHV 0RUHRYHU DERXW RQH LQ ÀYH 681< VWXGHQWV LQ +XGVRQ 9DOOH\ LV QRQ WUDGLWLRQDO WKH KLJKHVW VXFK HQUROOPHQW OHYHO LQ WKH VWDWH DQG LQGLFDWLYH RI WKH SURPLQHQW UROH FRPPXQLW\ FROOHJHV SOD\ LQ HTXLSSLQJ WKH ZRUNIRUFH ZLWK WKH ODWHVW VNLOOV DQG H[SHUWLVH 7KLV ODERU VRXUFH LV VXSSOHPHQWHG HYHU\ \HDU E\ PRUH WKDQ QHZ JUDGXDWHV HPHUJLQJ IURP WKH UHJLRQ·V 681< LQVWLWXWLRQV :LWK PRVW +XGVRQ 9DOOH\ VWXGHQWV IURP ZLWKLQ WKH UHJLRQ DQG PRUH WKDQ KDOI RI +XGVRQ 9DOOH\ 681< JUDGXDWHV HVWLPDWHG WR UHPDLQ LQ WKH UHJLRQ WKHUH LV D WUHPHQGRXV RSSRUWXQLW\


WR QXUWXUH FUDGOH WR FDUHHU ZRUNIRUFH GHYHORSPHQW LQ VXSSRUW RI HPHUJLQJ GHPDQG IRU VNLOOV DQG HGXFDWLRQ ,Q WHUPV RI SUHSDULQJ JUDGXDWHV IRU ZRUN LQ WKH VWDWH·V WDUJHWHG FOXVWHU LQGXVWULHV ³ JURXSV RI UHODWHG LQGXVWULHV WKDW VKDUH D QHHG IRU WDOHQW ³ +XGVRQ 9DOOH\ 681<V SURYLGH D ODUJH VKDUH RI 681< JUDGXDWHV KROGLQJ GHJUHHV UHODWHG WR WUDYHO WRXULVP FRPPXQLFDWLRQV VRIWZDUH PHGLD VHUYLFHV ÀQDQFLDO VHUYLFHV DQG EDFN RIÀFH 7KURXJK D YDULHW\ RI SURJUDPV 681< LV UHDFKLQJ RXW WR EXVLQHVVHV DQG LQWR WKH FRPPXQLW\ WR +XGVRQ 9DOOH\ EXLOG ZRUNIRUFH 681<V *HQHUDWH D /DUJH 6KDUH RI FDSDFLW\ 'HJUHHV IRU 1<6 &OXVWHU ,QGXVWULHV $PRQJ WKHVH 7UDYHO 7RXULVP HIIRUWV LV &RPPXQLFDWLRQV 5RFNODQG 6RIWZDUH 0HGLD &RPPXQLW\ )LQDQFLDO 6HUYLFHV &ROOHJH·V %DFN 2IÀFH /LWHUDF\

,QVWLWXWH SURYLGLQJ ORZ FRVW WUDLQLQJ LQ (6/ (QJOLVK DV D 6HFRQG /DQJXDJH WR WKH UHJLRQ·V LPPLJUDQW FRPPXQLW\ PHQWRULQJ DQG PDQDJHPHQW WUDLQLQJ IRU VWDUW XS FRPSDQLHV DW 6XOOLYDQ &RPPXQLW\ &ROOHJH·V +XGVRQ 9DOOH\ &HQWHU IRU ,QQRYDWLRQ DQG JUHHQ WHFKQRORJ\ WUDLQLQJ DW 'XWFKHVV &RPPXQLW\ &ROOHJH

+XGVRQ 9DOOH\ 681<V $VVLVWLQJ %XVLQHVVHV RI FRPPXQLW\ FROOHJHV KDYH DQ RI¿FH GHGLFDWHG WR VPDOO EXVLQHVV DVVLVWDQFH

681< SUHSDUHV WKH VWDWH·V ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ JUDQWLQJ GHJUHHV UHTXLUHG E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV LQGLFDWHV WKLV UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO

2UDQJH 5RFNODQG 6XOOLYDQ DQG 8OVWHU &RPPXQLW\ &ROOHJHV

+XGVRQ 9DOOH\ (GXFDWLRQ &RQVRUWLXP ,QLWLDWHG LQ WKH +XGVRQ 9DOOH\ (GXFDWLRQ &RQVRUWLXP LV GHVLJQHG WR OHYHUDJH DFDGHPLF DQG SURIHVVLRQDO WUDLQLQJ SURJUDPV DPRQJ 2UDQJH 5RFNODQG 6XOOLYDQ DQG 8OVWHU &RPPXQLW\ &ROOHJHV WKDW DUH OHDGLQJ HGJH DQG UHOHYDQW WR EXVLQHVVHV WKURXJKRXW WKH UHJLRQ %\ DOORZLQJ DOO IRXU FROOHJHV WR MRLQWO\ UHJLVWHU SURJUDPV ZLWK RQH FDPSXV GHVLJQDWHG DV OHDG WKLV PRGHO SDUWQHUVKLS VLJQL¿FDQWO\ H[SDQGV VWXGHQW DQG HPSOR\HU DFFHVV WR VLJQDWXUH SURJUDPV DYDLODEOH WKURXJKRXW WKH UHJLRQ OHYHUDJLQJ LQYHVWPHQWV PDGH LQ DUHDV RI VWUHQJWK DQG DYRLGLQJ WKH XQQHFHVVDU\ FRVWV RI SURJUDP GXSOLFDWLRQ /HDGHUV RI WKHVH FROOHJHV FKRVH WR IRUHJR FRPSHWLWLRQ IRU VKRUW WHUP LQVWLWXWLRQDO UHYHQXH LQ IDYRU RI WKH FROOHFWLYH LQWHUHVWV RI +XGVRQ 5LYHU 9DOOH\ UHVLGHQWV DQG 1HZ <RUN 6WDWH WD[SD\HUV

&$6( ,1 32,17

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

&$6( ,1 32,17 681< 3XUFKDVH

$UWV DW 3XUFKDVH 7KH DUWV KDYH KHOSHG VKDSH WKH +XGVRQ 9DOOH\¶V HFRQRP\ IRU RYHU \HDUV D KHULWDJH JLYHQ QHZ OLIH WKURXJK 3XUFKDVH &ROOHJH ,WV 3HUIRUPLQJ $UWV &HQWHU D IRXU WKHDWUH FRPSOH[ LV WKH IRUHPRVW SUHVHQWHU RI SHUIRUPLQJ DUWV LQ WKH UHJLRQ 7KH FHQWHU KDV KDG D VWURQJ LQÀXHQFH RQ WKH GHYHORSPHQW RI WKH DUWV DV D FRUQHUVWRQH RI WKH UHJLRQ¶V HFRQRP\ DQG TXDOLW\ RI OLIH 0RUH WKDQ SHRSOH DWWHQG VRPH SHUIRUPDQFHV EHQH¿WV DQG HYHQWV WKHUH HDFK \HDU 7KH FHQWHU¶V $UWV LQ (GXFDWLRQ SURJUDP SUHVHQWV ZRUNVKRSV LQ VFKRRO SURJUDPV DQG VSHFLDO SHUIRUPDQFHV IRU PRUH WKDQ VFKRRO FKLOGUHQ DJHV IURP VFKRROV LQ WKH VL[ FRXQW\ DUHD HDFK VHDVRQ 0HDQZKLOH WKH FROOHJH¶V 1HXEHUJHU 0XVHXP RI $UW RIIHUV JXLGHG H[SHUW WRXUV SURJUDPV IRU VFKRRO FKLOGUHQ DQG FRPPXQLW\ DFFHVV SURJUDPV VXFK DV ³1HX ([SHULHQFHV ´ D SURJUDP IRU SHRSOH ZLWK $O]KHLPHU¶V 7KHVH SURJUDPV HPSOR\HG RYHU LQGHSHQGHQW DUWLVW HGXFDWRUV PXVLFLDQV FULWLFV VFKRODUV DQG H[KLELWLQJ DUWLVWV DQG DERXW ORFDO SURYLGHUV IRU SULQWLQJ GHVLJQ FDUSHQWU\ DUW LQVWDOODWLRQ DQG HYHQW VHUYLFHV

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV /RQJ ,VODQG

681< 7<3(

/RQJ ,VODQG

681<V

8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV 8QLYHUVLW\ &ROOHJHV +2:

&RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

0$77(56

6WRQ\ %URRN 2OG :HVWEXU\ 68))2/.

1DVVDX

6XIIRON &RXQW\

)DUPLQJGDOH

1$66$8

681< RQ /RQJ ,VODQG ,Q QR RWKHU UHJLRQ LV WKH 681< SUHVHQFH ODUJHU WKDQ LQ /RQJ ,VODQG 7KLV UHJLRQ LV KRPH WR ÀYH 681< LQVWLWXWLRQV WKUHH RI ZKLFK DUH DPRQJ WKH WRS ÀYH LQ WKH VWDWH IRU HQUROOPHQW /RQJ ,VODQG·V 681< VWXGHQWV FRQVWLWXWH QHDUO\ SHUFHQW RI RYHUDOO 681< HQUROOPHQW 0RUH WKDQ RQH LQ WKUHH RI WKHVH VWXGHQWV LV D UDFLDO RU HWKQLF PLQRULW\ PDNLQJ /RQJ ,VODQG WKH PRVW GLYHUVH 681< UHJLRQ LQ WKH VWDWH 2YHU SHUFHQW RI WKH 681< DOXPQL OLYLQJ RQ /RQJ ,VODQG ³ WKH ODUJHVW FRQFHQWUDWLRQ RI 681< DOXPQL LQ WKH VWDWH ³ JUDGXDWHG IURP D /RQJ ,VODQG 681< 7KHVH 681< DIÀOLDWHV UHSUHVHQW SHUFHQW RI /RQJ ,VODQG·V PLOOLRQ UHVLGHQWV

7KH /RQJ ,VODQG (FRQRP\

&ORVHO\ WLHG WR WKH 1HZ <RUN &LW\ HFRQRP\ /RQJ ,VODQG LV DOVR GLVWLQJXLVKHG E\ DQ LQGXVWU\ PL[ RI DHURVSDFH GHIHQVH SKDUPDFHXWLFDO ÀQDQFLDO VHUYLFHV ELRWHFK ELRPHGLFDO DJULFXOWXUH VRIWZDUH DQG LQIRUPDWLRQ WHFKQRORJ\ DQG WUDYHO DQG KRVSLWDOLW\ 7KH ÀYH 681< LQVWLWXWLRQV RI /RQJ ,VODQG EROVWHU WKLV GLYHUVH HFRQRP\ WKURXJK D ZLGH UDQJH RI SURJUDPV IURP 6XIIRON &RPPXQLW\ &ROOHJH·V H[SDQGHG FXOLQDU\ DQG QXUVLQJ SURJUDPV WR PHHW UHJLRQDO ZRUNIRUFH VKRUWDJHV WR )DUPLQJGDOH 6WDWH &ROOHJH·V FRPSUHKHQVLYH EXVLQHVV VXSSRUW VHUYLFHV /RQJ ,VODQG·V 681< LQVWLWXWLRQV JHQHUDWH ELOOLRQ DQQXDOO\ ZLWK MREV VXSSRUWHG DERYH DQG EH\RQG 681< HPSOR\PHQW 6HUYLQJ DV D UHDG\ VXSSO\ RI ODERU ZLWK WKH ODWHVW VNLOOV DQG NQRZOHGJH DUH PRUH WKDQ DQQXDO JUDGXDWHV RI /RQJ ,VODQG 681<V

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI /RQJ ,VODQG·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D /RQJ ,VODQG 681< :KHUH WKHVH VWXGHQWV RULJLQDWHG

(03/2<((6

IURP ZLWKLQ WKLV UHJLRQ

IURP IURP IURP HOVHZKHUH HOVHZKHUH HOVHZKHUH LQ 1<6

LQ 8 6

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG RQ /RQJ ,VODQG

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

LQ ZRUOG

7RS &RXQWULHV &KLQD 6 .RUHD ,QGLD +DLWL -DPDLFD

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH RQ /RQJ ,VODQG

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV 6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

1RQ WUDGLWLRQDO VWXGHQWV DJH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV /RQJ ,VODQG

+2:

/RQJ ,VODQG 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

7KH ÀYH 681<V RI /RQJ ,VODQG FRPELQH WR VXSSRUW WKH ODUJHVW DEVROXWH DQG SURSRUWLRQDO LPSDFW RI DOO UHJLRQV ZLWK ELOOLRQ LQ RXWSXW DFFRXQWLQJ IRU SHUFHQW RI WKH 681< WRWDO LQ $ERXW SHUFHQW RI WKLV ÀJXUH ³ RU ELOOLRQ ³ IXHOV WKH /RQJ ,VODQG HFRQRP\ $OUHDG\ WKH ELJJHVW 681< HPSOR\HUV ZLWK QHDUO\ WK WKH KH IDFXOW\ ,QQRYDWLRQ DQG VWDII (FRQRP\ /RQJ ,VODQG 681<V ,Q WKH EHVW RI WKH DGGLWLRQDOO\ ODVW WKUHH \HDUV /RQJ ,VODQG 681<V VXSSRUW RYHU JHQHUDWHG« MREV LQ UHODWHG LQYHQWLRQ LQGXVWULHV GLVFORVXUHV DFURVV 1HZ SDWHQW <RUN 6WDWH DSSOLFDWLRQV 7KH UHJLRQ·V SDWHQWV 681<V FUHDWH D VWDWH DQG VSLQ RIIV ORFDO WD[ VWDUW XSV LPSDFW DW OLFHQVHV PLOOLRQ

+HUH·V KRZ LW KDSSHQV ELOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWV WV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

ELOOLRQ LQ VSHQGLQJ % E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ /RQJ ,VODQG (PSOR\PHQW ,PSDFW 681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG /RQJ ,VODQG

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

% 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

6WRQ\ %URRN 8QLYHUVLW\ LV E\ IDU WKH ELJJHVW FRQWULEXWRU WR WKLV UHJLRQ·V 681< LPSDFW DFFRXQWLQJ IRU DERXW SHUFHQW RI UHYHQXHV JHQHUDWHG DQG GROODUV VSHQW 6LPLODU WR RWKHU 681<V ZLWK DIÀOLDWHG KRVSLWDOV 6WRQ\ %URRN JHQHUDWHV WKH EXON RI LWV UHYHQXHV WKURXJK WKH 6WRQ\ %URRN 8QLYHUVLW\ 0HGLFDO &HQWHU :LWK KLJK OHYHOV RI UHVHDUFK DQG

6RXUFH ,QWHUYLHZ DQG VXUYH\ GDWD IURP 681< LQVWLWXWLRQV

MREV

0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

'ULYLQJ WKH (FRQRP\

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


DX[LOLDU\ UHYHQXHV /RQJ ,VODQG 681<V DUH VLJQLÀFDQWO\ OHVV GHSHQGHQW RQ VWDWH JRYHUQPHQW DV D UHYHQXH VRXUFH ZLWK RQO\ SHUFHQW FRPLQJ IURP 1HZ <RUN 6WDWH DSSURSULDWLRQV JUDQWV DQG FRQWUDFWV FRPSDUHG WR D SHUFHQW 681< ZLGH DYHUDJH /RQJ ,VODQG 681<V OHG E\ 6WRQ\ %URRN DUH WKH VWDWH·V PRVW SUROLÀF LQ UHVHDUFK FRPPHUFLDOL]DWLRQ ZLWK LQYHQWLRQ GLVFORVXUHV SDWHQWV DQG ÀYH VSLQ RIIV &ROOHFWLYHO\ WKHVH LQVWLWXWLRQV DOVR VHFXUHG WKH PRVW UHVHDUFK GROODUV RI DOO 681< UHJLRQV 2Q WRS RI LWV SRZHU DV DQ HFRQRPLF HQJLQH /RQJ ,VODQG 681<V UHJXODUO\ ZRUN ZLWK EXVLQHVVHV DQG FRPPXQLW\ OHDGHUV WR DGYDQFH HFRQRPLF GHYHORSPHQW VWUDWHJLHV DQG FRPPXQLW\ YLWDOLW\ )RU LQVWDQFH 2OG :HVWEXU\ UHTXLUHV ÀUVW \HDU VWXGHQWV WR SURYLGH DW OHDVW KRXUV RI FRPPXQLW\ VHUYLFH LQ D FLYLF HQJDJHPHQW FDSDFLW\ WR DUHD QRQSURÀWV RYHU VWXGHQWV KDYH DOUHDG\ SURYLGHG LQ H[FHVV RI VHUYLFH KRXUV 2WKHU HIIRUWV LQFOXGH 6WRQ\ %URRN·V ,QFXEDWRU DW &DOYHUWRQ ZKLFK VSHFLDOL]HV LQ DJULFXOWXUH DTXDFXOWXUH DQG HQYLURQPHQWDO WHFKQRORJLHV DQG )DUPLQJGDOH 6WDWH &ROOHJH·V SURYLVLRQ RI IDFXOW\ DQG VWXGHQW H[SHUWLVH ODE VSDFH DQG HTXLSPHQW WR ORFDO EXVLQHVVHV 6HH DOVR 681< DW :RUN 6WRQ\ %URRN·V ,QQRYDWLRQ )RRWSULQW )URP ; 5D\V WR 6XSHUFRPSXWLQJ S

&$6( ,1 32,17 3KRWR FRXUWHV\ RI )DUPLQJGDOH 6WDWH &ROOHJH

)DUPLQJGDOH 6WDWH &ROOHJH

7KH /RQJ ,VODQG (FRQRP\ LV &KDQJLQJ &RQVWDQWO\ ± DQG )DUPLQJGDOH .HHSV 8S 7KH HFRQRPLF GHYHORSPHQW PLVVLRQ DW 681<¶V )DUPLQJGDOH 6WDWH &ROOHJH KDV DGDSWHG FRQWLQXRXVO\ WR NHHS SDFH ZLWK WKH FKDQJLQJ /RQJ ,VODQG HFRQRP\ $V WKH UHJLRQ HYROYHG IURP DQ HDUO\ IRFXV RQ DJULFXOWXUH WR JLDQW GHIHQVH ¿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¶V DELOLW\ WR DGDSW TXLFNO\ WR HPHUJLQJ LQGXVWU\ WUHQGV DQG QHHGV 7KH ,QVWLWXWH IRU 5HVHDUFK DQG 7HFKQRORJ\ 7UDQVIHU ,577 DIIRUGV LQGXVWU\ ZLWK DFFHVV WR VSHFLDOL]HG HTXLSPHQW DQG IDFXOW\ WR LPSURYH SURGXFWLYLW\ DQG FRQGXFW DSSOLHG UHVHDUFK ,577 VWUHVVHV DXWRPDWHG PDQXIDFWXULQJ DQG GHYHORSV DQG WUDQVIHUV QHZ WHFKQRORJ\ WR LQGXVWU\ IRU FRPPHUFLDO DSSOLFDWLRQV 6WXGHQWV ZRUN RQ UHDO ZRUOG LQGXVWU\ SUREOHPV LQFOXGLQJ SURMHFWV LQ IXHO FHOO WHFKQRORJ\ &$' &$0 DQG URERWLFV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV /RQJ ,VODQG

+2:

$/801,

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV RQ /RQJ ,VODQG

0$77(56

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV 2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO

'HJUHH W\SH

\U \U

$UW

7RWDO 681< GHJUHHV

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

6RFLDO 6HUYLFHV

/DZ 3XEOLF 6HUYLFHV

&RPPXQLFDWLRQV 0HGLD

+HDOWK

&RPSXWHU 0DWKHPDWLFV

%XVLQHVV )LQDQFH

7HFKQLFDO 7UDGHV (GXFDWLRQ

+RVSLWDOLW\ 6HUYLFH

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

681< LV D FRUH DVVHW LQ ZRUNIRUFH SUHSDUDWLRQ IRU /RQJ ,VODQG WUDLQLQJ D ODUJH VXSSO\ RI NQRZOHGJH ZRUNHUV IRU WKH UHJLRQ·V DQG VWDWH·V IDVWHVW JURZLQJ LQGXVWULHV (YHQ LQ DQ HFRQRP\ DV ODUJH DV WKDW RI /RQJ ,VODQG 681< DOXPQL UHSUHVHQW PRUH WKDQ SHUFHQW RI WKH WRWDO ODERU VXSSO\ *LYHQ /RQJ ,VODQG·V SUR[LPLW\ WR DQG HFRQRPLF LQWHUGHSHQGHQFH ZLWK 1HZ <RUN &LW\ WKHVH 681< DOXPQL DUH D FULWLFDO VXSSO\ RI ODERU IRU ERWK UHJLRQV

:LWK WKH ÀQDQFLDO FDSLWDO RI WKH ZRUOG QH[W GRRU /RQJ ,VODQG KDV LWV JUHDWHVW DOXPQL FRQFHQWUDWLRQ LQ WKH ÀHOG RI EXVLQHVV ÀQDQFH 0RUH WKDQ RU FORVH WR SHUFHQW RI WKH UHJLRQ·V DOXPQL KROG WZR RU IRXU \HDU GHJUHHV LQ WKLV ÀHOG 7KHVH DOXPQL QXPEHU HQRXJK WR ÀOO DSSUR[LPDWHO\ RQH WKLUG RI UHODWHG GHJUHH UHTXLULQJ MREV RQ /RQJ ,VODQG +HDOWK LV /RQJ ,VODQG·V ODUJHVW HPSOR\PHQW VHFWRU ZLWK 681< DOXPQL VHUYLQJ DV D GHHS SRRO RI ODERU IURP ZKLFK WR GUDZ 7KHVH JUDGXDWHV ³ HQRXJK WR ÀOO PRUH WKDQ SHUFHQW RI GHJUHH UHTXLULQJ KHDOWK MREV RQ /RQJ ,VODQG ³ DUH ODUJHO\ SURGXFWV RI KHDOWK DQG PHGLFDO SURJUDPV DW 6WRQ\ %URRN 8QLYHUVLW\ DQG 1HZ <RUN &LW\·V 'RZQVWDWH 0HGLFDO &HQWHU DV ZHOO DV QXUVLQJ SURJUDPV DW )DUPLQJGDOH 6WDWH &ROOHJH DQG 1DVVDX DQG 6XIIRON FRPPXQLW\ FROOHJHV 5HÁHFWLQJ RWKHU GRPLQDQW LQGXVWULHV LQ WKH EURDGHU 1HZ <RUN &LW\ UHJLRQ VFLHQFH DQG HQJLQHHULQJ DUW VRFLDO VHUYLFHV DQG ODZ DUH DOVR DPRQJ WKH PRVW IUHTXHQW GHJUHHV KHOG E\ /RQJ ,VODQG 681< DOXPQL 7KH UHJLRQ·V DOXPQL VXSSO\ LV UHODWLYHO\ VPDOOHU IRU WKH ÀHOGV RI KRVSLWDOLW\ HGXFDWLRQ DQG WKH WHFKQLFDO WUDGHV /RQJ ,VODQG 681<V JUDGXDWHG LQ UHSUHVHQWLQJ QHDUO\ KDOI RI DOO FROOHJH GHJUHHV JUDQWHG LQ WKLV


UHJLRQ $PRQJ WKHVH GHJUHH KROGHUV DUH D VLJQLÀFDQW QXPEHU SUHSDUHG WR ZRUN LQ FOXVWHU LQGXVWULHV WDUJHWHG IRU GHYHORSPHQW E\ WKH VWDWH 7KH ÀHOGV WR ZKLFK WKH UHJLRQ FRQWULEXWHV WKH PRVW JUDGXDWHV UHODWLYH WR WKH WRWDO 681< SRRO RI FOXVWHU JUDGXDWHV SRLQW WR DFDGHPLF VWUHQJWKV DW WKH UHJLRQ·V 681<V LQFOXGLQJ KHDOWK DQG PHGLFLQH VFLHQFH DQG HQJLQHHULQJ DQG LQIRUPDWLRQ WHFKQRORJ\ :LWK WZR LQ WKUHH 681< JUDGXDWHV VHWWOLQJ KHUH WKH KLJKHVW JUDGXDWH UHWHQWLRQ UDWH LQ WKH VWDWH 681< ZLOO FRQWLQXH WR SOD\ D FRUH UROH LQ ZRUNIRUFH SUHSDUDWLRQ IRU /RQJ ,VODQG 681<V *HQHUDWH /RQJ ,VODQG D /DUJH 6KDUH RI

'HJUHHV IRU 1<6 681< LV DOVR &OXVWHU ,QGXVWULHV ZRUNLQJ LQ 'LVWULEXWLRQ RWKHU ZD\V %LRPHGLFDO WR SURYLGH ,QIRUPDWLRQ WUDLQLQJ DQG 7HFKQRORJ\ ZRUNIRUFH (OHFWURQLFV VXSSRUW WR ,PDJLQJ /RQJ ,VODQG 681< SUHSDUHV WKH VWDWH·V LQGXVWULHV ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ 7KHVH LQFOXGH JUDQWLQJ GHJUHHV UHTXLUHG )DUPLQJGDOH·V E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU VNLOOV EXLOGLQJ UHODWHG GHJUHHV LQGLFDWHV WKLV UHJLRQ·V 681<V SURJUDPV IRU FRQWULEXWH SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO WKH JURZLQJ GHJUHHV IRU RQH RU PRUH HQHUJ\ VHFWRU DQG FOXVWHUV WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO 6XIIRON &RXQW\ &RPPXQLW\ &ROOHJH·V VSHFLDOL]HG SURJUDPV WR DGGUHVV UHJLRQDO ZRUNIRUFH VKRUWDJHV

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

&$6( ,1 32,17 6XIIRON &RXQW\ &RPPXQLW\ &ROOHJH

6XIIRON &RXQW\ &RPPXQLW\ &ROOHJH 7DFNOHV $FXWH 6KRUWDJHV LQ WKH /RQJ ,VODQG :RUNIRUFH +2: )RU \HDUV /RQJ ,VODQG IDFHG D VHULRXV VKRUWDJH RI QXUVHV WR VWDII LWV ODUJH KHDOWK FDUH LQGXVWU\ 6XIIRON &RXQW\ &RPPXQLW\ &ROOHJH SDUWQHUHG ZLWK *RRG 6DPDULWDQ +RVSLWDO 0HGLFDO &HQWHU 0$77(56 LQ DQ LQQRYDWLYH DSSURDFK WR KHOS DGGUHVV WKLV SUREOHP 7KH 72 7+( KRVSLWDO SUHVFUHHQV VWXGHQW DSSOLFDQWV DQG FRPPLWV WR KLULQJ &20081,7< WKHP DIWHU WKHLU WUDLQLQJ DW 6XIIRON /HYHUDJLQJ WKLV PXOWL \HDU FRQWUDFW ZLWK WKH KRVSLWDO 6XIIRON KLUHG PRUH IDFXOW\ DQG OHDVHG VSDFH LQ D GLVWUHVVHG GRZQWRZQ QHLJKERUKRRG IRU WUDLQLQJ 6XIIRON EXLOW RQ WKLV PRGHO ZLWK VL[ RWKHU KHDOWK FDUH IDFLOLWLHV QRZ 6XIIRON¶V QXUVLQJ HGXFDWLRQ SURJUDP LV WKH ODUJHVW VXFK FDPSXV EDVHG HIIRUW LQ 1HZ <RUN ² DQG WKH QLQWK ODUJHVW LQ WKH QDWLRQ 6XIIRON &RXQW\ &RPPXQLW\

&ROOHJH KDV ZRUNHG ZLWK HPSOR\HUV WKH 'HSDUWPHQW RI /DERU DQG ORFDO GHYHORSPHQW DJHQFLHV WR VHFXUH IXQGLQJ IRU ZRUNIRUFH SURJUDPV LQ VNLOO DUHDV QHHGHG LQ WKH /RQJ ,VODQG HFRQRP\

6LPLODUO\ 6XIIRON JUHDWO\ H[SDQGHG LWV &XOLQDU\ $UWV SURJUDP WR PHHW WKH JURZLQJ QHHGV RI 6XIIRON &RXQW\¶V KRVSLWDOLW\ DQG WRXULVP LQGXVWU\ 7KH FROOHJH SDUWQHUHG ZLWK D SULYDWH GHYHORSHU ZKR EXLOW D IDFLOLW\ WR KRXVH 6XIIRON¶V &XOLQDU\ $UWV DQG +RVSLWDOLW\ &HQWHU /LQNDJHV KDYH EHHQ IRUPHG ZLWK WKH ORFDO ZLQH LQGXVWU\ KRWHOV VXSSOLHUV DQG FDWHULQJ ¿UPV DQG 6XIIRON DGGHG WZR QHZ GHJUHHV DQG WKUHH FHUWL¿FDWHV 8VLQJ WKH VSDFH OHDVHG IURP LWV SULYDWH SDUWQHU 6XIIRON KDV EHHQ DEOH WR H[SDQG HQUROOPHQW WR VWXGHQWV HLJKW WLPHV WKH VWXGHQWV ZKR FRXOG EH DFFRPPRGDWHG DW WKH FROOHJH¶V RZQ IDFLOLW\

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 0RKDZN 9DOOH\

21(,'$

681<,7

0RKDZN 9DOOH\

+(5.,0(5

+HUNLPHU &RXQW\

)8/721

+2:

)XOWRQ 0RQWJRPHU\

0RKDZN 9DOOH\

0$77(56

681<V

0217*20(5<

&REOHVNLOO 276(*2

2QHRQWD

6&+2+$5,(

681< 7<3( 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

681< LQ WKH 0RKDZN 9DOOH\ 6SDQQLQJ VL[ FRXQWLHV LQ FHQWUDO 1HZ <RUN 6WDWH WKH 0RKDZN 9DOOH\ KROGV VL[ GLYHUVH 681< LQVWLWXWLRQV LQFOXGLQJ WKUHH FRPPXQLW\ FROOHJHV WZR WHFKQRORJ\ FROOHJHV DQG RQH XQLYHUVLW\ FROOHJH 7KH 0RKDZN 9DOOH\ 681<V GUDZ WKHLU VWXGHQWV SULPDULO\ IURP ZLWKLQ WKH UHJLRQ DQG WKLV UHJLRQ LV RQH RI WKH VPDOOHU RQHV IRU HQUROOPHQW 7KH UHJLRQ·V 681<V DUH WKH DOPD PDWHU IRU DERXW WZR LQ WKUHH RI WKH 681< DOXPQL OLYLQJ LQ WKH UHJLRQ D SURSRUWLRQ KLJKHU WKDQ PRVW UHJLRQV $ERXW SHUFHQW RI WKH UHJLRQ·V SRSXODWLRQ LV FRQQHFWHG WR 681< DV D VWXGHQW HPSOR\HH RU DOXPQXV

7KH 0RKDZN 9DOOH\ (FRQRP\

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·V HPSOR\HHV 681< DOVR SURYLGHV D FULWLFDO VXSSO\ RI DSSUR[LPDWHO\ QHZ JUDGXDWHV HYHU\ \HDU

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI 0RKDZN 9DOOH\·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D 0RKDZN 9DOOH\ 681< :KHUH WKHVH VWXGHQWV RULJLQDWHG IURP IURP IURP IURP ZLWKLQ HOVHZKHUH HOVHZKHUH HOVHZKHUH WKLV UHJLRQ

(03/2<((6

LQ 1<6

LQ 8 6

7RS &RXQWULHV -DSDQ ,QGLD %RVQLD DQG +HU]HJRYQLD &KLQD %HODUXV

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ WKH 0RKDZN 9DOOH\ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

LQ ZRUOG

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ WKH 0RKDZN 9DOOH\

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV

1RQ WUDGLWLRQDO VWXGHQWV DJH

6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 0RKDZN 9DOOH\

+2:

0RKDZN 9DOOH\ 681<V *HQHUDWH D 0LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

0RKDZN 9DOOH\ 681<V· PLOOLRQ HFRQRPLF LPSDFW DFFRXQWV IRU D UHODWLYHO\ VPDOO SRUWLRQ RI 681<·V RYHUDOO VWDWHZLGH LPSDFW DW SHUFHQW <HW IURP D UHJLRQDO SHUVSHFWLYH 0RKDZN 9DOOH\ 681<V DUH D SRZHUIXO HFRQRPLF WKH WK KH ,QQRYDWLRQ HQJLQH 0RVW GLUHFWO\ (FRQRP\ PLOOLRQ RU SHUFHQW RI WKH ,Q WKH EHVW RI WKH ODVW WKUHH \HDUV WRWDO LPSDFW 0RKDZN 9DOOH\ JRHV LQWR 681<V JHQHUDWHG« WKH UHJLRQDO LQYHQWLRQ HFRQRP\ GLVFORVXUHV $GGLWLRQDOO\ 0RKDZN SDWHQW 9DOOH\ 681<V DSSOLFDWLRQ JHQHUDWHG 6RXUFH ,QWHUYLHZ DQG VXUYH\ PLOOLRQ GDWD IURP 681< LQVWLWXWLRQV LQ SURSHUW\ VDOHV DQG LQFRPH WD[HV IRU ORFDO JRYHUQPHQWV LQ WKH UHJLRQ DV ZHOO DV VWDWH JRYHUQPHQW 6SLQ RII HFRQRPLF DFWLYLW\ IURP 0RKDZN 9DOOH\ 681<V VXSSRUWHG PRUH WKDQ DGGLWLRQDO MREV LQ WKH UHJLRQ DQG DFURVV WKH VWDWH RQ WRS RI 681< IDFXOW\ DQG VWDII

+HUH·V KRZ LW KDSSHQV PLOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWVV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

PLOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

PLOOLRQ LQ 1<6 DQG RU PLOOLRQ LQ WKH 0RKDZN 9DOOH\ (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH 0RKDZN 9DOOH\ 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

0

681< DOVR ÀOOV D SURPLQHQW UROH LQ EXLOGLQJ FRPPXQLWLHV DQG VXSSRUWLQJ EXVLQHVVHV LQ WKH 0RKDZN 9DOOH\ 7KHVH LQVWLWXWLRQV GUHZ PRUH WKDQ YLVLWRUV WR WKHLU FDPSXVHV IRU DUWV FXOWXUDO UHFUHDWLRQDO DQG RWKHU HYHQWV DQG UHVRXUFHV LQ ZLWK DQ HVWLPDWHG PLOOLRQ VSHQW RQ ORGJLQJ IRRG DQG HQWHUWDLQPHQW

0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


LQ WKH UHJLRQ 6SHFLÀF LQLWLDWLYHV DQG SURJUDPV DW 0RKDZN 9DOOH\ 681<V DOVR FRQWULEXWH WR VWURQJHU FRPPXQLWLHV :KHWKHU WUDLQLQJ XQHPSOR\HG DQG XQGHUHPSOR\HG LQGLYLGXDOV DW 0RKDZN 9DOOH\ &RPPXQLW\ &ROOHJH RU GHYHORSLQJ QHZ WHFKQRORJLHV WR FRQYHUW DJULFXOWXUDO ZDVWH WR FOHDQ HQHUJ\ DW WKH &ROOHJH RI $JULFXOWXUH DQG 7HFKQRORJ\ DW &REOHVNLOO 681< LV KHOSLQJ WR LPSURYH WKH TXDOLW\ RI OLIH DQG HFRQRPLF RSSRUWXQLW\ IRU WKH 0RKDZN 9DOOH\

&$6( ,1 32,17 681< &REOHVNLOO

$ &ROOHJH 7KDW %ULQJV )RRG 0XVLF DQG 7UDQVSRUW WR LWV 'RZQWRZQ 681< &REOHVNLOO RSHUDWHV D GRZQWRZQ GLQHU &RE\¶V WKURXJK LWV DX[LOLDU\ VHUYLFHV FRUSRUDWLRQ ,W FRQVWLWXWHV WKH RQO\ FRIIHH VKRS LQ WKH 9LOODJH RI &REOHVNLOO¶V KLVWRULF GLVWULFW 7KLV YHQXH KDV KHOSHG VSXU DGGLWLRQDO HFRQRPLF GHYHORSPHQW RQ 0DLQ 6WUHHW DQG DOVR VHUYHV WR 5XUDO YLOODJHV GRQ¶W DOZD\V VXSSRUW WKH DUWV E\ VKRZFDVLQJ DUHD ¿QG LW HDV\ WR GHYHORS DQ PXVLFLDQV DQG DUWLVWV 7KH FROOHJH DOVR DWWUDFWLYH GRZQWRZQ 681< FRQWUDFWV ZLWK &REOHVNLOO KDV VWHSSHG LQ WKH 6FKRKDULH +2: &RXQW\ 3XEOLF WR KHOS 7UDQVLW $XWKRULW\ 0$77(56 WR H[WHQG SXEOLF EXV URXWHV DQG KRXUV IRU VWXGHQWV DQG WKH SXEOLF DW 72 7+( ODUJH ZKLFK HQDEOHV VWXGHQWV WR YLVLW DUHD PHUFKDQWV DQG &20081,7< HPSOR\HUV LQ WKH YLOODJH DQG VXUURXQGLQJ UHJLRQ PRUH FRQVLVWHQWO\ WKURXJKRXW WKH DFDGHPLF \HDU

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 0RKDZN 9DOOH\

+2:

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ WKH 0RKDZN 9DOOH\

$/801,

0$77(56

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV S J

J 2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

7RWDO 681< GHJUHHV

\U \U

$UW

&RPPXQLFDWLRQV 0HGLD

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

7HFKQLFDO 7UDGHV

&RPSXWHU 0DWKHPDWLFV

(GXFDWLRQ

/DZ 3XEOLF 6HUYLFHV

+HDOWK

6RFLDO 6HUYLFHV

+RVSLWDOLW\ 6HUYLFH %XVLQHVV )LQDQFH

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

72 7+( :25.)25&(

3UHSDULQJ WKH :RUNIRUFH

$OWKRXJK RQH RI WKH VPDOOHVW FRQFHQWUDWLRQV RI 681< DOXPQL LQ WKH VWDWH WKH 681< JUDGXDWHV OLYLQJ LQ WKH 0RKDZN 9DOOH\ DUH WKH NH\ ODERU VXSSO\ IRU WKLV UHJLRQ 681< LV WKH SULPDU\ KLJKHU HGXFDWLRQ SURYLGHU LQ WKH UHJLRQ ZLWK QHDUO\ SHUFHQW RI FROOHJH JUDGXDWHV LQ WKH 0RKDZN 9DOOH\ WLHG WR 681< )RU LQGXVWULHV UDQJLQJ IURP WHFKQLFDO WUDGHV DQG HGXFDWLRQ WR FRPSXWHUV DQG ODZ WKHVH DOXPQL KDYH WKH FDSDFLW\ WR ÀOO D PDMRULW\ RI GHJUHH UHTXLULQJ MREV

6SHFLÀFDOO\ WKH UHJLRQ·V DOXPQL KROGLQJ GHJUHHV LQ WKH WHFKQLFDO WUDGHV DQG ZLWK VFLHQFH HQJLQHHULQJ GHJUHHV FRXOG ÀOO SHUFHQW RI UHODWHG GHJUHH UHTXLULQJ MREV LQ WKH UHJLRQ 7KH SURSRUWLRQDOO\ KLJK QXPEHU RI DOXPQL WUDLQHG LQ WKHVH ÀHOGV FDQ EH DWWULEXWHG WR WKH ODUJH SUHVHQFH RI WZR \HDU FROOHJHV LQ WKH UHJLRQ SDUWLFXODUO\ 0RKDZN 9DOOH\ &RPPXQLW\ &ROOHJH ZKLFK IHDWXUHV DFDGHPLF DQG FHUWLÀFDWH SURJUDPV LQ DLU FRQGLWLRQLQJ ZHOGLQJ FDUSHQWU\ DQG PDVRQU\ DV ZHOO DV HQJLQHHULQJ DQG WKH SK\VLFDO VFLHQFHV ,Q IDFW WKLV VFKRRO DORQH DFFRXQWV IRU RU PRUH WKDQ RQH LQ IRXU RI DOO 681< DOXPQL OLYLQJ LQ WKH UHJLRQ 681< 2QHRQWD DQG 681< &RUWODQG LQ &HQWUDO 1HZ <RUN VXSSO\ WKH EXON RI WKH UHJLRQ·V 681< WHDFKLQJ GHJUHHV 681< &REOHVNLOO LV WKH SULPDU\ VRXUFH RI WKH 0RKDZN 9DOOH\·V DEXQGDQW VXSSO\ RI DOXPQL ZLWK IRXU \HDU DJULFXOWXUDO GHJUHHV (YHU\ \HDU WKHVH 681<V JUDGXDWH NQRZOHGJH ZRUNHUV DUPHG ZLWK WKH GHJUHHV DQG VNLOOV QHHGHG PRVW E\ HPSOR\HUV /LNHO\ DQ LQGLFDWRU RI WKLV UHJLRQ·V VORZ HFRQRPLF JURZWK DERXW WKUHH TXDUWHUV RI WKHVH JUDGXDWHV ZLOO OHDYH WKH UHJLRQ WR ÀQG ZRUN WKRXJK PRVW ZLOO VWD\ LQ WKH VWDWH


7KH UHJLRQ·V FRQWULEXWLRQV WR ZRUNIRUFH SUHSDUDWLRQ LQ WKH VWDWH·V FOXVWHU LQGXVWULHV RU JURXSV RI UHODWHG LQGXVWULHV WDUJHWHG IRU GHYHORSPHQW E\ WKH VWDWH VXJJHVW 681< LV VHUYLQJ ERWK WKH 0RKDZN 9DOOH\·V FRUH LQGXVWU\ EDVH ³ PDQXIDFWXULQJ DQG WRXULVP ³ ZKLOH EXLOGLQJ FDSDFLW\ IRU HPHUJLQJ LQGXVWULHV VXFK DV HOHFWURQLFV LPDJLQJ DQG LQIRUPDWLRQ WHFKQRORJ\ 7KH VDPH EURDG DSSURDFK LV EHLQJ DSSOLHG WKURXJK WKH ZRUNIRUFH GHYHORSPHQW DQG WUDLQLQJ SURJUDPV RIIHUHG E\ WKHVH LQVWLWXWLRQV )RU LQVWDQFH WKH 681< ,QVWLWXWH 0RKDZN 9DOOH\ 681<V *HQHUDWH RI 7HFKQRORJ\ DW D /DUJH 6KDUH 8WLFD 5RPH LV RQ RI 'HJUHHV IRU WKH FXWWLQJ HGJH 1<6 &OXVWHU ,QGXVWULHV LQ LWV SDUWQHUVKLS ZLWK WKH 8QLYHUVLW\ 'LVWULEXWLRQ DW $OEDQ\·V &ROOHJH %LRPHGLFDO ,QIRUPDWLRQ RI 1DQRVFDOH 7HFKQRORJ\ 6FLHQFH DQG (OHFWURQLFV (QJLQHHULQJ ,PDJLQJ WR GHYHORS 681< SUHSDUHV WKH QDQRWHFKQRORJ\ VWDWH·V ZRUNIRUFH ZRUNIRUFH WUDLQLQJ IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ JUDQWLQJ SURJUDPV )XOWRQ GHJUHHV UHTXLUHG E\ MREV LQ WKRVH LQGXVWULHV 0RQWJRPHU\ $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV &RPPXQLW\ LQGLFDWHV WKLV UHJLRQ·V 681<V FRQWULEXWH &ROOHJH LV DOVR SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO GHJUHHV UHVSRQGLQJ WR IRU RQH RU PRUH FOXVWHUV WKH EXUJHRQLQJ WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO WHFKQRORJ\ LQGXVWU\ $W WKH VDPH WLPH 0RKDZN 9DOOH\ &RPPXQLW\ &ROOHJH UHFHQWO\ PHW WKH QHHGV RI D PDMRU DLUFUDIW UHSDLU HPSOR\HU ZLWK D FXVWRPL]HG FHUWLÀFDWH SURJUDP LQ DLUSODQH UHSDLU DQG PDLQWHQDQFH DQG 681< 2QHRQWD LV ZRUNLQJ ZLWK ORFDO VFKRROV WR HQFRXUDJH \RXWK LQ SXUVXLQJ FDUHHUV LQ VFLHQFH WHFKQRORJ\ DQG PDWKHPDWLFV

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

&$6( ,1 32,17 )XOWRQ 0RQWJRPHU\ &RPPXQLW\ &ROOHJH

)XOWRQ 0RQWJRPHU\ :RUNV WR 3URYLGH +DQGV 2Q ([SHULHQFH LQ 6NLOOV (PSOR\HUV 1HHG /DXQFKHG ZLWK D IHGHUDO JUDQW RI QHDUO\ PLOOLRQ WKH QHZ &HQWHU IRU (QJLQHHULQJ DQG 7HFKQRORJ\ LV SDUW RI )XOWRQ 0RQWJRPHU\ &RPPXQLW\ &ROOHJH¶V UHVSRQVH WR WKH EXUJHRQLQJ WHFKQRORJ\ LQGXVWU\ VSUHDGLQJ RXW IURP WKH JUHDWHU &DSLWDO UHJLRQ 7KH FHQWHU LV DQ LQQRYDWLYH FROODERUDWLRQ RI SURJUDPV LQ VFLHQFH DQG WHFKQRORJ\ 5DWKHU WKDQ D VLQJOH EXLOGLQJ WKH LQLWLDWLYH LQFOXGHV HTXLSPHQW FODVVURRPV D PRGL¿HG FOHDQ URRP DQG D PDQXIDFWXULQJ ODE ²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¿HOGV LQFOXGLQJ HQJLQHHULQJ WHFKQLFLDQ FOHDQ URRP WHFKQLFLDQ FRPSXWHU DLGHG GHVLJQ &$' WHFKQLFLDQ ODE DVVLVWDQW DQG VHUYLFH WHFKQLFLDQ 5HVSRQVLYH WR HPHUJLQJ HPSOR\PHQW QHHGV DW WKH FKLS IDE SODQW EHLQJ EXLOW LQ QHLJKERULQJ 6DUDWRJD &RXQW\ DQG LWV H[SHFWHG VXSSOLHUV DQG WKH 8QLYHUVLW\ DW $OEDQ\¶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¶V GHJUHH LQ (OHFWULFDO (QJLQHHULQJ 7HFKQRORJ\

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1HZ <RUN &LW\

1HZ <RUN &LW\

+2:

0DULWLPH &ROOHJH 2SWRPHWU\

0$77(56

%521;

681<V

1(: <25.

)DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\

5,&+021'

681< 7<3(

48((16 .,1*6

'RZQVWDWH 0HGLFDO &HQWHU

8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

681< LQ 1HZ <RUN &LW\ 1HZ <RUN &LW\ LV WKH QDWLRQ·V ODUJHVW FLW\ DQG WKH FRUH RI HFRQRPLF DFWLYLW\ LQ WKH VWDWH ,WV &LW\ 8QLYHUVLW\ RI 1HZ <RUN HQUROOV D TXDUWHU RI D PLOOLRQ VWXGHQWV <HW HYHQ KHUH 681< LV D IRUFH ,WV IRXU LQVWLWXWLRQV LQ WKH FLW\ RIIHU KLJK TXDOLW\ VSHFLDOL]HG GHJUHH SURJUDPV DPRQJ WKHP IDVKLRQ PHGLFLQH PDULWLPH WUDQVSRUWDWLRQ DQG RSWRPHWU\ OXULQJ VWXGHQWV IURP IDU DQG ZLGH 0RUH WKDQ RQH LQ ÀYH RI WKH UHJLRQ·V 681< VWXGHQWV KDLOV IURP DFURVV WKH 8QLWHG 6WDWHV DQG SHUFHQW IURP RWKHU SDUWV RI WKH JOREH 1HZ <RUN &LW\ DOVR KDV WKH ODUJHVW FOXVWHU RI 681< DOXPQL IURP RWKHU SDUWV RI WKH VWDWH XQGRXEWHGO\ GUDZQ E\ WKH FLW\·V GLYHUVH DQG SHUHQQLDOO\ VWURQJ HFRQRP\ DQG GLVWLQFW TXDOLW\ RI OLIH 1RW VXUSULVLQJ JLYHQ WKH FLW\·V VL]H WKH 681< VWXGHQWV HPSOR\HHV DQG DOXPQL LQ 1HZ <RUN &LW\ UHSUHVHQW MXVW SHUFHQW RI 1HZ <RUN &LW\·V WRWDO SRSXODWLRQ

7KH 1HZ <RUN &LW\ (FRQRP\ 681< LV D FULWLFDO DVVHW IRU ZRUNIRUFH WUDLQLQJ DQG HFRQRPLF VXSSRUW LQ QLFKH LQGXVWULHV IRU 1HZ <RUN &LW\ DV ZHOO DV D VLJQLÀFDQW HFRQRPLF JHQHUDWRU IRU WKH VWDWH DV D ZKROH ,WV ÀYH VPDOO LQVWLWXWLRQV VHQG ELOOLRQ LQWR WKH VWDWH HFRQRP\ RQ DQ DQQXDO EDVLV $QG WKH VWXGHQWV JUDGXDWLQJ IURP WKHVH 681<V HYHU\ \HDU UHSUHVHQW QHDUO\ RQH LQ RI DOO QHZ JUDGXDWHV LQ WKH FLW\ ZLWK YRFDWLRQDO GHJUHHV RU FHUWLÀFDWH WUDLQLQJ )URP WKH )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\·V UREXVW LQWHUQVKLS SURJUDP DQG FXVWRPL]HG WUDLQLQJ WR 'RZQVWDWH 0HGLFDO &HQWHU·V LQLWLDWLYH WR QXUWXUH UHVHDUFK DQG GHYHORSPHQW LQ ELRWHFKQRORJ\ 1HZ <RUN &LW\·V 681<V SURYLGH VWDWH RI WKH DUW ZRUNIRUFH WUDLQLQJ IRU FRUH LQGXVWULHV ZKLOH DGYDQFLQJ WKH VWDWH·V LQQRYDWLRQ HFRQRP\

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H HP RI 1HZ <RUN &LW\·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D 1HZ <RUN &LW\ 681< :KHUH WKHVH VWXGHQWV RULJLQDWHG

(03/2<((6

IURP ZLWKLQ WKLV UHJLRQ

IURP IURP IURP HOVHZKHUH HOVHZKHUH HOVHZKHUH LQ 1<6

LQ 8 6

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ 1HZ <RUN &LW\

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

LQ ZRUOG

7RS &RXQWULHV 6 .RUHD 7XUNH\ &DQDGD &KLQD ,QGLD

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ 1HZ <RUN &LW\

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV 6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

1RQ WUDGLWLRQDO VWXGHQWV DJH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1HZ <RUN &LW\

+2:

1HZ <RUN &LW\ 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

7KH ELOOLRQ HFRQRPLF LPSDFW JHQHUDWHG E\ 1HZ <RUN &LW\ 681<V UHSUHVHQWV DERXW SHUFHQW RI WKH RYHUDOO 681< LPSDFW D SRZHUIXO FRQWULEXWLRQ WR WKH VWDWH HFRQRP\ IRU D UHJLRQ WKDW DFFRXQWV IRU OHVV WKDQ WKH WK H SHUFHQW RI ,QQRYDWLRQ RYHUDOO 681< VWXGHQW (FRQRP\ HQUROOPHQW ,Q WKH EHVW RI WKH ODVW 7KLV 681< WKUHH \HDUV 1HZ LPSDFW LV <RUN &LW\ 681<V EXR\HG E\ JHQHUDWHG« UHODWLYHO\ LQYHQWLRQ KLJK ZDJHV GLVFORVXUHV SDLG WR 681< HPSOR\HHV SDWHQW LQ RQH RI WKH DSSOLFDWLRQV FRXQWU\·V SDWHQWV PRVW VSLQ RII H[SHQVLYH SODFHV WR OLFHQVHV OLYH 7KH 6RXUFH ,QWHUYLHZ DQG VXUYH\ DYHUDJH IXOO GDWD IURP 681< LQVWLWXWLRQV WLPH ZDJH IRU D 681< HPSOR\HH LQ 1HZ <RUN &LW\ LV DOPRVW GRXEOH WKH DYHUDJH 681< HPSOR\HH ZDJH &RQWULEXWLQJ WR KLJKHU ZDJHV LV WKH DFDGHPLF IRFXV DUHDV RI WKH VFKRROV DQG WKH KLJKO\ VSHFLDOL]HG NQRZOHGJH DQG VNLOOV QHHGHG E\ IDFXOW\ DQG VWDII

+HUH·V KRZ LW KDSSHQV ELOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWVV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

ELOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ 1HZ <RUN &LW\ (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH 1HZ <RUN &LW\ 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

%

,Q DGGLWLRQ WR ELOOLRQ LQ HFRQRPLF RXWSXW WZR WKLUGV RI ZKLFK JRHV GLUHFWO\ LQWR WKH 1HZ <RUN &LW\ HFRQRP\ WKHVH LQVWLWXWLRQV JHQHUDWH PLOOLRQ LQ VWDWH DQG ORFDO WD[HV DQG VXSSRUW MREV DFURVV WKH

0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


VWDWH RYHU DQG DERYH 681< HPSOR\HHV 5HYHQXHV IURP KRVSLWDO VHUYLFHV FRQQHFWHG ZLWK 'RZQVWDWH 0HGLFDO &HQWHU DFFRXQW IRU DERXW KDOI RI RYHUDOO UHYHQXHV IRU WKH À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·V 8QLYHUVLW\ (\H &HQWHU SURYLGH ZLGHO\ DFFHVVLEOH KHDOWK FDUH VHUYLFHV URRWHG LQ WKH ODWHVW UHVHDUFK 7KH )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ EULQJV QHZ LGHDV DQG H[SHUWLVH WR PRUH WKDQ LQGXVWU\ SDUWQHUV WKURXJK LWV KLJKO\ VXFFHVVIXO LQWHUQVKLS SURJUDP 6HH DOVR 681< DW :RUN 'RZQVWDWH 0HGLFDO &HQWHU $ )XWXUH LQ %LR7HFK *URZV LQ %URRNO\Q S

&$6( ,1 32,17 )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\

)DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ 6XSSRUWV WKH 1HHGV RI 1HZ <RUN¶V *DUPHQW ,QGXVWU\ 7KH )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ KDV UREXVW SDUWQHUVKLSV ZLWK PRUH WKDQ FRPSDQ\ VSRQVRUV DQG RYHU DFWLYH LQWHUQVKLS SRVLWLRQV $ERXW RQH WKLUG RI LWV LQWHUQVKLS SODFHPHQWV OHDG GLUHFWO\ WR RIIHUV RI IXOO WLPH HPSOR\PHQW 7KH SURJUDP FRPELQHV RQ VLWH SURIHVVLRQDO ZRUN H[SHULHQFH VXSHUYLVHG E\ DQ RUJDQL]DWLRQ H[HFXWLYH ZLWK FODVVURRP LQVWUXFWLRQ DW ),7 RQ EHVW SUDFWLFHV DQG WUHQGV WKDW SODFH WKH LQWHUQVKLS H[SHULHQFH LQ FRQWH[W

7KH ,QWHUQVKLS &HQWHU DW 681<¶V )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ KHOSV WUDLQ WKH QH[W JHQHUDWLRQ RI IDVKLRQ LQGXVWU\ OHDGHUV ² VHUYLQJ FRPSDQLHV IURP ODUJH WR VPDOO DQG ORFDO WR LQWHUQDWLRQDO LQFOXGLQJ 0DUF -DFREV 'RQQD .DUDQ +DUSHU¶V %D]DDU DQG %ORRPLQJGDOHV

6SRQVRUV EHQH¿W IURP WKH HQHUJ\ RI HQWKXVLDVWLF \RXQJ WKLQNHUV ZLWK IUHVK DSSURDFKHV DQG +2: IURP EHLQJ WKH ¿UVW WR HQFRXUDJH WDOHQWHG 0$77(56 \RXQJ SHRSOH WR HQWHU WKHLU LQGXVWULHV 72 7+( &20081,7< ,QWHUQV HDUQ FROOHJH FUHGLW ZKLOH JDLQLQJ YDOXDEOH H[SHULHQFH WKDW KHOSV WKHP PDNH EHWWHU LQIRUPHG FDUHHU GHFLVLRQV DQG WR LPSURYH WKHLU PDUNHWDELOLW\ XSRQ JUDGXDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1HZ <RUN &LW\

+2:

$/801,

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ 1HZ <RUN &LW\

0$77(56

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV 2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO

+HDOWK

(GXFDWLRQ

&RPPXQLFDWLRQV 0HGLD

\U \U

%XVLQHVV )LQDQFH

+RVSLWDOLW\ 6HUYLFH

&RPSXWHU 0DWKHPDWLFV

7HFKQLFDO 7UDGHV

'HJUHH W\SH

/DZ 3XEOLF 6HUYLFHV

7RWDO 681< GHJUHHV

$UW 6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

6RFLDO 6HUYLFHV

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

7KH VRXUFH RI MXVW SHUFHQW RI FROOHJH GHJUHHV JUDQWHG LQ 1HZ <RUN &LW\ 681< FHUWDLQO\ LV QRW D GRPLQDQW IDFWRU LQ WKH FLW\·V RYHUDOO ZRUNIRUFH FKDUDFWHULVWLFV DQG ODERU VXSSO\ +RZHYHU ZLWKLQ FHUWDLQ LQGXVWULHV ³ IDVKLRQ LQ SDUWLFXODU ³ 681<·V ZRUNIRUFH LPSDFWV DUH XQGHQLDEOH 1HDUO\ RQH LQ IRXU RI WKH FLW\·V 681< DOXPQL KDYH HDUQHG WKHLU GHJUHH IURP WKH 681< )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ UHSUHVHQWLQJ SHUKDSV WKH VLQJOH PRVW LPSRUWDQW VRXUFH RI ODERU IRU WKLV PDMRU LQGXVWU\ 7KH FLW\·V DUWV LQGXVWU\ DOVR GUDZV 681< DUW JUDGXDWHV IURP RXWVLGH WKH UHJLRQ ZLWK RYHU OLYLQJ LQ WKH ÀYH ERURXJK UHJLRQ &RQVHTXHQWO\ 681< JUDGXDWHV OLYLQJ LQ 1HZ <RUN &LW\ QXPEHU HQRXJK WR ÀOO WKUHH LQ IRXU GHJUHH UHTXLULQJ MREV LQ WKH DUWV VHFWRU 0RVW RI WKH FLW\·V UHPDLQLQJ 681< DOXPQL KDYH PLJUDWHG LQ IURP RWKHU UHJLRQV ZLWK WKH EXON RI WKHVH KROGLQJ GHJUHHV LQ EXVLQHVV ÀQDQFH /DUJH QXPEHUV RI DOXPQL DOVR FRPH WR WKH FLW\ HTXLSSHG ZLWK GHJUHHV LQ VFLHQFH HQJLQHHULQJ KHDOWK ODZ DQG VRFLDO VHUYLFHV 7KH GUDZ RI 1HZ <RUN &LW\ DOVR KHOSV UHWDLQ FORVH WR SHUFHQW RI WKH FLW\·V DQQXDO 681< JUDGXDWHV $V SDUW RI 681<·V RYHUDOO HIIRUWV WR SULPH D ZRUNIRUFH IRU WKH VWDWH·V VWUDWHJLF FOXVWHU LQGXVWULHV 1HZ <RUN &LW\·V LQVWLWXWLRQV DUH LPSRUWDQW FRQWULEXWRUV %H\RQG IDVKLRQ WKHVH 681<V JHQHUDWH D KLJK OHYHO RI JUDGXDWHV UHDG\ IRU ZRUN LQ WKH PDQXIDFWXULQJ FOXVWHU WKURXJK 681< 0DULWLPH &ROOHJH·V PDULWLPH LQGXVWU\ DQG WUDQVSRUWDWLRQ SURJUDPV


1HZ <RUN &LW\·V VSHFLDOL]HG 681< LQVWLWXWLRQV DUH XQGHUWDNLQJ FUHDWLYH DSSURDFKHV WR ZRUNIRUFH GHYHORSPHQW E\ ZRUNLQJ FORVHO\ ZLWK LQGXVWU\ OHDGHUV DQG PDMRU HPSOR\HUV )RU LQVWDQFH WKH )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ KDV SDUWQHUHG ZLWK WKRXVDQGV RI IDVKLRQ HQWHUSULVHV 1HZ <RUN &LW\ 681<V *HQHUDWH WR FXOWLYDWH D +LJK 6KDUH RI 'HJUHHV IRU 1<6 SUDFWLFDO VNLOOV &OXVWHU ,QGXVWULHV PDQDJHPHQW )DVKLRQ FDSDFLW\ DQG HQWUHSUHQHXUVKLS 0DQXIDFWXULQJ 7UDYHO $OVR 'RZQVWDWH 7RXULVP 0HGLFDO &HQWHU·V )URQW 2IÀFH $GYDQFHG 3URGXFHU %LRWHFKQRORJ\ 6HUYLFHV ,QFXEDWRU LV FROODERUDWLQJ 681< SUHSDUHV WKH VWDWH·V ZRUNIRUFH ZLWK RWKHU IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ JUDQWLQJ KLJKHU HGXFDWLRQ GHJUHHV UHTXLUHG E\ MREV LQ WKRVH LQGXVWULHV $ LQVWLWXWLRQV LQ WKH ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV LQGLFDWHV DUHD WR SURYLGH WKLV UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ MRE WUDLQLQJ IRU PRUH WR 681<·V WRWDO ELRVFLHQFH DQG GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR WR ELRWHFKQRORJ\ 681< GHJUHHV RYHUDOO WHFKQLFLDQV

&$6( ,1 32,17 )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\

7KH )DVKLRQ ,QGXVWU\ &KDQJHV )DVW ± DQG 681<¶V )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ +HOSV LW .HHS 8S 7KH JDUPHQW LQGXVWU\ ZHDYHV WKURXJK WKH KLVWRU\ RI 1HZ <RUN &LW\ UHPDLQLQJ D PDLQVWD\ RI WKH PDQXIDFWXULQJ DQG H[SRUW HFRQRP\ RI WKH UHJLRQ DQG D GRRUZD\ ZHOFRPLQJ JHQHUDWLRQV RI QHZ $PHULFDQV 7KH )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\¶V 6FKRRO RI &RQWLQXLQJ DQG 3URIHVVLRQDO 6WXGLHV SURYLGHV FXVWRPL]HG SURJUDPV IRU EXVLQHVVHV DQG LQGLYLGXDOV LQ IDVKLRQ DQG UHODWHG LQGXVWULHV 7KH VFKRRO¶V &HQWHU IRU ,QQRYDWLRQ 0DQDJHPHQW RIIHUV FXVWRPL]HG DQG RQ VLWH WUDLQLQJ SURJUDPV IRU VHQLRU PDQDJHPHQW LQ ODUJH RUJDQL]DWLRQV VXFK DV &XLVLQDUW &URVFLOO +DGGDG DQG /DID\HWWH DOLJQ SURFHVVHV ZLWK NH\ RSHUDWLRQDO JRDOV FUHDWH KLJK SHUIRUPDQFH WHDPV ZLWK XQL¿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³JUHHQ HQWUHSUHQHXUVKLS ´

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1RUWK &RXQWU\

3ODWWVEXUJK

3RWVGDP

)5$1./,1

&OLQWRQ

&DQWRQ

&/,1721

1RUWK &RXQWU\ 67 /$:5(1&(

1RUWK &RXQWU\

-())(5621

+2:

-HIIHUVRQ

0$77(56

/(:,6

681< 7<3(

(66(;

681<V +$0,/721

8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

681< LQ WKH 1RUWK &RXQWU\ 6LWXDWHG DW WKH QRUWKHUQ WLS RI 1HZ <RUN 6WDWH DUH VL[ 681< LQVWLWXWLRQV RI WKH 1RUWK &RXQWU\ UHJLRQ LQFOXGLQJ WKUHH FRPPXQLW\ FROOHJHV WZR XQLYHUVLW\ FROOHJHV DQG RQH WHFKQRORJ\ FROOHJH $PRQJ WKH VWDWH·V VPDOOHU 681< IRRWSULQWV 1RUWK &RXQWU\ LQVWLWXWLRQV HQUROO DQG HPSOR\ IDFXOW\ DQG VWDII 7KH UHJLRQ LV KRPH WR 681< DOXPQL ZLWK WKUHH LQ IRXU RI WKHVH SURGXFWV RI 1RUWK &RXQWU\ 681<V $V D VSDUVHO\ SRSXODWHG UHJLRQ WKH 1RUWK &RXQWU\ LV FORVHO\ OLQNHG WR LWV 681< LQVWLWXWLRQV ³ SHUFHQW RI WKH SRSXODWLRQ LV D 681< VWXGHQW HPSOR\HH RU DOXPQXV WKH KLJKHVW RI DOO UHJLRQV RI WKH VWDWH

7KH 1RUWK &RXQWU\ (FRQRP\ 7KH 1RUWK &RXQWU\ HFRQRP\ LV GHÀQHG E\ LQGXVWU\ FOXVWHUV LQ PDQXIDFWXULQJ GLVWULEXWLRQ WUDQVSRUWDWLRQ DQG WRXULVP DV ZHOO DV DQ HPHUJLQJ DOWHUQDWLYH HQHUJ\ VHFWRU 681< KDV EHHQ D NH\ SDUWQHU RQ HFRQRPLF DQG FRPPXQLW\ GHYHORSPHQW HIIRUWV LQ WKH UHJLRQ ³ IURP &OLQWRQ &RPPXQLW\ &ROOHJH KHOSLQJ WR OXUH 1RYD %XV WR WKH UHJLRQ WKURXJK FXVWRPL]HG WUDLQLQJ WR 681< 3ODWWVEXUJK H[SDQGLQJ KHDOWK FDUH DFFHVV WKURXJK DGYDQFHG WHFKQRORJ\ $GGLWLRQDOO\ WKHVH VL[ VFKRROV DUH D GLUHFW IRUFH RQ WKH VWDWH DQG UHJLRQDO HFRQRP\ VXSSRUWLQJ PLOOLRQ LQ HFRQRPLF DFWLYLW\ DQG MREV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,,Q · · 681< VWXGHQWV Q HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI 1RUWK &RXQWU\·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D 1RUWK &RXQWU\ 681< :KHUH WKHVH VWXGHQWV RULJLQDWHG

(03/2<((6

IURP ZLWKLQ WKLV UHJLRQ

IURP IURP IURP HOVHZKHUH HOVHZKHUH HOVHZKHUH LQ 1<6

LQ 8 6

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ WKH 1RUWK &RXQWU\

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

LQ ZRUOG

7RS &RXQWULHV %RVQLD DQG +HU]HJRYLQD &DQDGD -DSDQ &KLQD 6 .RUHD

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ WKH 1RUWK &RXQWU\

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV

1RQ WUDGLWLRQDO VWXGHQWV DJH

6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1RUWK &RXQWU\

+2:

1RUWK &RXQWU\ 681<V *HQHUDWH D 0LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

7KH PLOOLRQ HFRQRPLF LPSDFW OHYHUDJHG E\ 1RUWK &RXQWU\ 681< LQVWLWXWLRQV DFFRXQWV IRU D SURSRUWLRQDOO\ VPDOO SHUFHQW VOLFH RI WKH RYHUDOO 681< HFRQRPLF LPSDFW +RZHYHU DW WKH UHJLRQDO WKH WK H VFDOH 1RUWK ,QQRYDWLRQ &RXQWU\ (FRQRP\ 681<V SOD\ D FHQWUDO ,Q WKH EHVW RI WKH ODVW HFRQRPLF WKUHH \HDUV 1RUWK UROH )LIW\ &RXQWU\ 681<V QLQH SHUFHQW JHQHUDWHG« RI WKLV LQYHQWLRQ HFRQRPLF GLVFORVXUHV RXWSXW ³ RU PLOOLRQ SDWHQW ³ FLUFXODWHV DSSOLFDWLRQ WKURXJKRXW SDWHQW WKH UHJLRQDO 6RXUFH ,QWHUYLHZ DQG VXUYH\ HFRQRP\ GDWD IURP 681< LQVWLWXWLRQV $FURVV WKH UHJLRQ DQG VWDWH WKHVH 681<V VXSSRUW RYHU MREV LQ UHODWHG LQGXVWULHV LQ DGGLWLRQ WR GLUHFW HPSOR\HHV

+HUH·V KRZ LW KDSSHQV PLOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWVV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

PLOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

PLOOLRQ LQ 1<6 DQG RU PLOOLRQ LQ WKH 1RUWK &RXQWU\ (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH 1RUWK &RXQWU\ 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

0 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKH (FRQRP\

6LPLODU WR RWKHU UHJLRQV ODFNLQJ D 681< XQLYHUVLW\ FHQWHU WKH 1RUWK &RXQWU\ VHHV UHODWLYHO\ IHZ UHVHDUFK GROODUV DV D UHVXOW RI LWV 681< LQVWLWXWLRQV :KLOH JHQHUDWLQJ À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¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


UXUDO UHJLRQ $OVR 681< 3RWVGDP ZDV DKHDG RI LWV WLPH ZKHQ LW LQVWLWXWHG \HDUV DJR D EX\ ORFDO SROLF\ IRU IRRG VHUYLFH WR VXSSRUW ORFDO IDUPHUV DQG SURPRWH VWXGHQW DQG FRPPXQLW\ KHDOWK &XOWXUDO SHUIRUPDQFHV DW 681< 3RWVGDP·V KLJKO\ UHJDUGHG &UDQH 6FKRRO RI 0XVLF DQG FDPSXV FRQQHFWLRQV WR WKH UHJLRQ·V RXWGRRU DWWUDFWLRQV FRQWULEXWH WR D KLJK GUDZ RI 681< YLVLWRUV WR WKH 1RUWK &RXQWU\ UHJLRQ ³ RYHU LQ 3URSRUWLRQDOO\ PRUH RI WKHVH YLVLWRUV DUH HVWLPDWHG WR VWD\ RYHUQLJKW UHODWLYH WR RWKHU UHJLRQV EROVWHULQJ HFRQRPLF YLWDOLW\ LQ WKH UHJLRQ WKURXJK PRUH WKDQ PLOOLRQ LQ KRWHO IRRG DQG HQWHUWDLQPHQW SXUFKDVHV IURP ORFDO EXVLQHVVHV

&$6( ,1 32,17 681< 3ODWWVEXUJK

681< 3ODWWVEXUJK +HOSV %ULQJ $GYDQFHG 0HGLFDO .QRZOHGJH WR WKH 1RUWK &RXQWU\ 2UJDQL]HG DQG PDQDJHG E\ WKH 7HFKQLFDO $VVLVWDQFH &HQWHU DW 681< 3ODWWVEXUJK D VWDWH RI WKH DUW ¿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¶V KDUGHVW WR FRPH E\ LQ 0HGLFDO &HQWHU $OLFH +\GH 0HGLFDO WKH UXUDO DUHDV WKDW QHHG LW &HQWHU $GLURQGDFN 0HGLFDO &HQWHU WKH PRVW (OL]DEHWKWRZQ &RPPXQLW\ +RVSLWDO WKH 6DLQW 5HJLV 0RKDZN 7ULEH +HDOWK &HQWHU &OLQWRQ &RPPXQLW\ &ROOHJH 1RUWK &RXQWU\ &RPPXQLW\ &ROOHJH DQG 681< 3ODWWVEXUJK

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 1RUWK &RXQWU\

+2:

$/801,

2FFXSDWLRQDO 'HJUHH &DWHJRU\

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ WKH 1RUWK &RXQWU\

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV

$JULFXOWXUDO 'HJUHH W\SH

7RWDO 681< GHJUHHV

\U \U

$UW

&RPSXWHU 0DWKHPDWLFV

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

&RPPXQLFDWLRQV 0HGLD (GXFDWLRQ

+HDOWK

6RFLDO 6HUYLFHV

/DZ 3XEOLF 6HUYLFHV

7HFKQLFDO 7UDGHV

%XVLQHVV )LQDQFH +RVSLWDOLW\ 6HUYLFH

0$77(56

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

6XSSO\LQJ PRUH WKDQ VHYHQ LQ FROOHJH GHJUHHV LQ WKH 1RUWK &RXQWU\ 681< LV HVVHQWLDO WR EXLOGLQJ D SUHSDUHG ZRUNIRUFH LQ WKLV UHJLRQ 7KH 681< DOXPQL OLYLQJ LQ WKH UHJLRQ HLWKHU PHHW ODERU GHPDQG RU DSSURDFK IXOO ODERU VXSSO\ IRU QHDUO\ HYHU\ LQGXVWU\ LQFOXGLQJ WKRVH ZKHUH ZRUNHU VKRUWDJHV DUH FRPPRQ VXFK DV FRPSXWHU PDWKHPDWLFV DQG KHDOWK 681< 3RWVGDP DQG 3ODWWVEXUJK DUH WKH PDLQ VRXUFH RI WKH UHJLRQ·V HGXFDWLRQ DOXPQL HQRXJK WR ÀOO IRXU RI HYHU\ ÀYH GHJUHH UHTXLULQJ MREV LQ WKLV À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·V HPHUJLQJ LQGXVWULHV LQ QDWXUDO UHVRXUFHV DQG DOWHUQDWLYH HQHUJ\ DUH OLNHO\ IDFWRUV LQ UHWDLQLQJ DQG DWWUDFWLQJ WKHVH DOXPQL +RVSLWDOLW\ VHUYLFHV LV WKH LQGXVWU\ IRU ZKLFK 681< DOXPQL KROG WKH OHDVW FDSDFLW\ WR ÀOO UHODWHG MREV SHUKDSV LQGLFDWLYH RI WKH KLJK GHPDQG IRU WDOHQW WR VHUYH WKH UHJLRQ·V JURZLQJ UHFUHDWLRQDO WRXULVP QLFKH $ UHPRWH UXUDO UHJLRQ WKH 1RUWK &RXQWU\ IDFHV VLJQLÀFDQW HFRQRPLF KXUGOHV LQFOXGLQJ KLJK SRYHUW\ OHYHOV DQG GHFOLQLQJ SRSXODWLRQ 7R WKLV SRLQW RQO\ RQH LQ IRXU RI WKH


DQQXDO JUDGXDWHV RI 1RUWK &RXQWU\ 681<V ZLOO VHWWOH LQ WKH UHJLRQ <HW 681<V LQ WKH 1RUWK &RXQWU\ DUH SOD\LQJ D FULWLFDO UROH LQ H[SDQGLQJ HFRQRPLF RSSRUWXQLW\ LQ WKH UHJLRQ WKURXJK ZRUNIRUFH GHYHORSPHQW )RU LQVWDQFH WKHVH 681<V SURGXFH VLJQLÀFDQW QXPEHUV RI JUDGXDWHV WUDLQHG LQ FOXVWHU LQGXVWULHV RU JURXSV RI UHODWHG LQGXVWULHV WKDW DUH WKH IRFXV RI VWDWH HFRQRPLF GHYHORSPHQW HIIRUWV 7KHVH LQFOXGH FRPPXQLFDWLRQV WUDYHO WRXULVP EDFN RIÀFH DQG ÀQDQFLDO VHUYLFHV $OVR 1RUWK &RXQWU\ 681<V HQUROO KLJK OHYHOV RI VWXGHQWV IURP ORZ LQFRPH FRPPXQLWLHV DV ZHOO DV QRQ WUDGLWLRQDO VWXGHQWV VHHNLQJ XSGDWHG RU QHZ VNLOOV 0DQ\ GHJUHH DQG WUDLQLQJ SURJUDPV RIIHU ÁH[LEOH VHUYLFHV DQG SUHSDUH JUDGXDWHV IRU ZRUN LQ 1RUWK &RXQWU\ 681<V *HQHUDWH ÀHOGV ZLWK D /DUJH 6KDUH RI VXVWDLQDEOH 'HJUHHV IRU 1<6 ZDJHV 7KHVH &OXVWHU ,QGXVWULHV LQFOXGH D &RPPXQLFDWLRQV ZHHNHQG 6RIWZDUH QXUVLQJ 0HGLD SURJUDP DW 6HUYLFHV %DFN -HIIHUVRQ 2IÀFH 7UDYHO &RPPXQLW\ 7RXULVP &ROOHJH DQG )LQDQFLDO 1RUWK &RXQWU\ 6HUYLFHV &RPPXQLW\ 681< SUHSDUHV WKH VWDWH·V &ROOHJH·V ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ SURJUDPV LQ JUDQWLQJ GHJUHHV UHTXLUHG VSRUWV DQG HYHQW E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV LQGLFDWHV PDQDJHPHQW WKLV UHJLRQ·V 681<V 0HDQZKLOH FRQWULEXWH SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO LQQRYDWLYH GHJUHHV IRU RQH RU PRUH SURJUDPV VXFK FOXVWHUV WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO DV FXVWRPL]HG WUDLQLQJ LQ LQGXVWULDO WHFKQRORJ\ DW &OLQWRQ &RPPXQLW\ &ROOHJH VXSSRUW FRUH LQGXVWULHV LQ WKH UHJLRQ

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

&$6( ,1 32,17 &OLQWRQ &RPPXQLW\ &ROOHJH

&OLQWRQ &RPPXQLW\ &ROOHJH +HOSV WKH 1RUWK &RXQWU\ $WWUDFW D 1HZ 0DQXIDFWXULQJ 3ODQW &OLQWRQ &RPPXQLW\ &ROOHJH SOD\HG D NH\ UROH LQ KHOSLQJ 1HZ <RUN 6WDWH DQG WKH 3ODWWVEXUJK DUHD DWWUDFW D QHZ PDQXIDFWXULQJ IDFLOLW\ ± 1RYD %XV 2ZQHG E\ 9ROYR DQG 4XHEHF¶V 3UpYRVW &DU 1RYD %XV PDQXIDFWXUHV VXVWDLQDEOH EXVHV LQFOXGLQJ KLJK FDSDFLW\ DQG HQYLURQPHQWDOO\ IULHQGO\ YHKLFOHV 1RYD %XV VHDUFKHG IRU D PDQXIDFWXULQJ VLWH LQ WKH 8QLWHG 6WDWHV WR LQFUHDVH FDSDFLW\ EH\RQG LWV 4XHEHF IDFLOLW\ DQG VWUHQJWKHQ LWV DELOLW\ WR FRPSHWH IRU 8 6 SURFXUHPHQW FRQWUDFWV &RPSDQ\ RI¿FLDOV LQYHVWLJDWHG VHYHUDO 8 6 ORFDWLRQV EXW FKRVH 3ODWWVEXUJK DQG RSHQHG D VTXDUH IRRW SODQW LQ /DQGLQJ 1RYD ZDV WKH UHVXOW RI D FRQFHUWHG HIIRUW LQYROYLQJ WKH FROOHJH 1HZ <RUN 6WDWH 7KH 'HYHORSPHQW &RUSRUDWLRQ RI &OLQWRQ &RXQW\ DQG RWKHUV &OLQWRQ &RPPXQLW\ &ROOHJH ZRUNHG FORVHO\ ZLWK WKH DUHD :RUNIRUFH ,QYHVWPHQW %RDUG RWKHU WUDLQLQJ RUJDQL]DWLRQV DQG WKH ¿UP WR SURYLGH QHZ HPSOR\HHV ZLWK FXVWRPL]HG WUDLQLQJ VSHFL¿FDOO\ JHDUHG WR 1RYD DQG WKH QHZ SODQW LQFOXGLQJ WUDLQLQJ LQ LQGXVWULDO WHFKQRORJ\ EOXHSULQW UHDGLQJ PDQDJHPHQW VNLOOV DQG 1RYD¶V FRUSRUDWH FXOWXUH &OLQWRQ GHYHORSHG D WUDLQLQJ VFKHGXOH WKDW ZDV ÀH[LEOH DQG WDLORUHG WR 1RYD¶V SODQ WR KLUH ZDYHV RI QHZ WUDLQHHV DW UHJXODU LQWHUYDOV DQG WKDW FRXOG EH DGDSWHG WR UHYLVH RU DGG WUDLQLQJ PRGXOHV DV QHHGHG 5HOHYDQW WUDLQLQJ ZDV DOVR SURYLGHG WR 1RYD VXSSOLHUV WKDW KDYH FOXVWHUHG DURXQG WKH 3ODWWVEXUJK VLWH 7KDQNV LQ ODUJH SDUW WR &OLQWRQ &RPPXQLW\ &ROOHJH¶V HIIRUWV 1RYD DORQH QRZ HPSOR\V PRUH WKDQ SHUPDQHQW ZRUNHUV DW LWV QHZ 3ODWWVEXUJK IDFLOLW\ DQG VHYHUDO 1RYD VXSSOLHUV KDYH ORFDWHG LQ 3ODWWVEXUJK DV ZHOO

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 6RXWKHUQ 7LHU

681<V

6RXWKHUQ 7LHU

&RUQHOO 8QLYHUVLW\ $JULFXOWXUH /LIH 6FLHQFHV +XPDQ (FRORJ\ ,QGXVWULDO /DERU 5HODWLRQV 9HWHULQDU\ 0HGLFLQH

+2:

7RPSNLQV &RUWODQG

0$77(56

7203.,16

&+(1$1*2

6&+8</(5

%URRPH

67(8%(1

&RUQLQJ

681< 7<3(

&+(081*

7,2*$

%5220(

'HOKL '(/$:$5(

%LQJKDPWRQ

8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

681< LQ WKH 6RXWKHUQ 7LHU 7KH 6RXWKHUQ 7LHU KDV ERWK WKH XQLYHUVLW\ FHQWHU DW %LQJKDPWRQ DQG 681<·V VWDWXWRU\ FROOHJHV DW DQRWKHU PDMRU UHVHDUFK XQLYHUVLW\ &RUQHOO ,WV 681< RIIHULQJV DOVR LQFOXGH WKUHH FRPPXQLW\ FROOHJHV DQG RQH WHFKQRORJ\ FROOHJH 681<·V SUHVHQFH DW &RUQHOO 8QLYHUVLW\ D SUHGRPLQDQWO\ SULYDWHO\ IXQGHG LQVWLWXWLRQ LQFOXGHV IRXU VWDWH IXQGHG FROOHJHV WKH 6FKRRO RI ,QGXVWULDO DQG /DERU 5HODWLRQV DQG WKH &ROOHJHV RI $JULFXOWXUH DQG /LIH 6FLHQFHV 9HWHULQDU\ 0HGLFLQH DQG +XPDQ (FRORJ\ /DUJHO\ EHFDXVH RI %LQJKDPWRQ DQG &RUQHOO 681< LQ WKH 6RXWKHUQ 7LHU KDV D EURDG VWXGHQW GUDZ ³ SHUFHQW RI LWV VWXGHQWV KDLO IURP DQRWKHU VWDWH DQG SHUFHQW IURP DQRWKHU FRXQWU\ WKH KLJKHVW OHYHO RI LQWHUQDWLRQDO HQUROOPHQW LQ WKH 681< V\VWHP 7KH 6RXWKHUQ 7LHU LV DOVR KRPH WR 681< DOXPQL $OWRJHWKHU WKH UHJLRQ·V 681< SUHVHQFH ³ LQFOXGLQJ VWXGHQWV HPSOR\HHV DQG DOXPQL UHSUHVHQWV PRUH WKDQ SHUFHQW RI WKH 6RXWKHUQ 7LHU SRSXODWLRQ

7KH 6RXWKHUQ 7LHU (FRQRP\

7KH 6RXWKHUQ 7LHU HFRQRP\ OHYHUDJHV LWV VWUDWHJLF ORFDWLRQ DORQJ WKH 3HQQV\OYDQLD ERUGHU ZLWK PDMRU LQGXVWULHV LQFOXGLQJ PDQXIDFWXULQJ DQG GLVWULEXWLRQ DV ZHOO DV ÁLJKW VLPXODWLRQ DQG GHIHQVH 681< DGYDQFHV WKH UHJLRQDO HFRQRP\ WKURXJK FXWWLQJ HGJH HFRQRPLF GHYHORSPHQW SURJUDPV DQG LQLWLDWLYHV )RU LQVWDQFH %LQJKDPWRQ 8QLYHUVLW\·V 6PDOO 6FDOH 6\VWHPV ,QWHJUDWLRQ DQG 3DFNDJLQJ &HQWHU 6 ,3 FXOWLYDWHV WKH HPHUJLQJ PLFURHOHFWURQLFV LQGXVWU\ LQ WKH UHJLRQ WKURXJK LQQRYDWLYH UHVHDUFK 0HDQZKLOH FRPPXQLW\ DQG WHFKQRORJ\ FROOHJHV SURYLGH ZRUNIRUFH WUDLQLQJ IRU D UDSLGO\ HYROYLQJ PDQXIDFWXULQJ EDVH 7KHVH 681<V· ERWWRP OLQH FRQWULEXWLRQ WR WKH HFRQRP\ WRWDOV RYHU ELOOLRQ DQQXDOO\

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI WKH 6RXWKHUQ 7LHU·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D 6RXWKHUQ 7LHU 681< VFKRRO :KHUH WKHVH VWXGHQWV RULJLQDWHG IURP IURP IURP IURP ZLWKLQ HOVHZKHUH HOVHZKHUH HOVHZKHUH WKLV UHJLRQ

(03/2<((6

LQ 1<6

LQ 8 6

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ WKH 6RXWKHUQ 7LHU

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

LQ ZRUOG

7RS &RXQWULHV 6 .RUHD &KLQD 7XUNH\ 7DLZDQ &DQDGD

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ WKH 6RXWKHUQ 7LHU

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL GDWD DV RI ([FOXGHV DOXPQL IURP VWDWH IXQGHG FROOHJHV DW &RUQHOO 8QLYHUVLW\ 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV 6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

1RQ WUDGLWLRQDO VWXGHQWV DJH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 6RXWKHUQ 7LHU

+2:

6RXWKHUQ 7LHU 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

0$77(56

72 7+( (&2120<

6RXWKHUQ 7LHU 681<V FUHDWH D ELOOLRQ DQQXDO HFRQRPLF IRUFH RQ WKH VWDWH HFRQRP\ ELOOLRQ RI ZKLFK GLUHFWO\ EHQHÀWV WKH UHJLRQDO HFRQRP\ 7KLV HFRQRPLF DFWLYLW\ VXSSRUWHG QHDUO\ MREV LQ UHODWHG LQGXVWULHV DFURVV WKH VWDWH LQ ZLWK GLUHFW 681< HPSOR\PHQW DW QHDUO\ 6WDWH DQG ORFDO WD[HV JHQHUDWHG WRWDOHG QHDUO\ PLOOLRQ

+HUH·V KRZ LW KDSSHQV ELOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWV WV 0 RWKHU VRXUFHV 6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

WKH WKH ,QQRYDWLRQ (FRQRP\

ELOOLRQ LQ VSHQGLQJ 0 E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ WKH 6RXWKHUQ 7LHU (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG WKH 6RXWKHUQ 7LHU 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

'ULYLQJ WKH (FRQRP\

% 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

'ULYLQJ WKLV ELOOLRQ HFRQRPLF LPSDFW DUH ,Q WKH EHVW RI WKH WKH RXW ODVW WKUHH \HDUV RI VWDWH 6RXWKHUQ 7LHU 681<V UHYHQXHV JHQHUDWHG« 6RXWKHUQ LQYHQWLRQ 7LHU 681<V GLVFORVXUHV UHFHLYH WKH KLJKHVW OHYHO SDWHQW LQ WKH VWDWH DSSOLFDWLRQV DW SHUFHQW SDWHQWV RI WRWDO VSLQ RIIV UHYHQXHV 7KLV FDQ EH VWDUW XS DWWULEXWHG OLFHQVHV SULPDULO\ WR 6RXUFH ,QWHUYLHZ DQG VXUYH\ WKH UHJLRQ·V GDWD IURP 681< LQVWLWXWLRQV ³ PRUH VSHFLÀFDOO\ &RUQHOO·V ³ KLJK GUDZ RI RXW RI VWDWH VWXGHQWV SD\LQJ KLJKHU OHYHOV RI WXLWLRQ $GGLWLRQDOO\ LQ VWDWH WXLWLRQ IRU &RUQHOO·V IRXU FRQWUDFW VFKRROV LV JUHDWHU WKDQ WKDW RI RWKHU 681< FROOHJHV )LQDOO\ UHVHDUFK GROODUV DQG IHGHUDO JUDQWV JHQHUDWHG E\ &RUQHOO %LQJKDPWRQ 8QLYHUVLW\ DQG 681< 'HOKL EROVWHU RXW RI VWDWH UHYHQXHV 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


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·V EXVLQHVV VXSSRUW VHUYLFHV DQG ZRUNIRUFH WUDLQLQJ LQFOXGLQJ 7& EL] DW 7RPSNLQV &RUWODQG &RPPXQLW\ &ROOHJH NHHS LQGXVWULHV IURP PDQXIDFWXULQJ WR DHURVSDFH PRYLQJ IRUZDUG ZLWK WKH ODWHVW H[SHUWLVH DQG VNLOOV 0RUHRYHU 681< XQGRXEWHGO\ VKDSHV WKH FRPPXQLW\ LQ WKH 6RXWKHUQ 7LHU ³ E\ EXLOGLQJ GLYHUVLW\ ZLWK PRUH WKDQ RXW RI VWDWH DQG LQWHUQDWLRQDO VWXGHQWV VXSSRUWLQJ IDUPHUV WKURXJK DGYDQFHV LQ WHFKQRORJ\ DW WKH &RUQHOO &ROOHJH RI 9HWHULQDU\ 0HGLFLQH DQG HQULFKLQJ FXOWXUH WKURXJK GDQFH PXVLF DQG DUW DW %LQJKDPWRQ·V $QGHUVRQ &HQWHU IRU WKH 3HUIRUPLQJ $UWV 7KHVH 681<V DWWUDFWHG RYHU YLVLWRUV WR WKHLU FDPSXVHV LQ ZLWK WKRVH VWD\LQJ RYHUQLJKW VHQGLQJ PLOOLRQ LQWR WKH HFRQRP\ WKURXJK SXUFKDVHV RQ KRWHOV IRRG DQG HQWHUWDLQPHQW 6HH DOVR 681< DW :RUN %LQJKDPWRQ 8QLYHUVLW\ 6WUHQJWKHQLQJ WKH 6RXWKHUQ 7LHU·V +LJK 7HFK ,QGXVWULHV S

&$6( ,1 32,17 7RPSNLQV &RUWODQG &RPPXQLW\ &ROOHJH

7RPSNLQV &RUWODQG &RPPXQLW\ &ROOHJH 3RVLWLRQV ,WVHOI WR 0HHW (PSOR\HUV¶ 7UDLQLQJ 1HHGV 7RPSNLQV &RUWODQG &RPPXQLW\ &ROOHJH¶V ZRUNIRUFH DQG HFRQRPLF GHYHORSPHQW DUP RIIHUV D ZLGH DUUD\ RI VHUYLFHV WR D EURDG UDQJH RI FOLHQWV 7KH SURJUDP 7& EL] VWUHVVHV D ³FXVWRPHU GULYHQ´ DSSURDFK WR SURJUDPPLQJ DQG GHSOR\V PRUH WKDQ WUDLQLQJ VSHFLDOLVWV ZLWK GLYHUVH EDFNJURXQGV DQG VNLOOV 7UDLQLQJ SURJUDPV DUH +2: RIIHUHG DW WKUHH ORFDWLRQV DQG RQ WKH HPSOR\HUV¶ VLWH DQG FDQ UDQJH IURP D KDOI GD\ WR WKUHH \HDUV &OLHQWV UXQ WKH 0$77(56 JDPXW IURP EXVLQHVVHV ,WKDFR 6SDFH 6\VWHPV &DUJLOO DQG WKH ,WKDFD -RXUQDO WR HGXFDWLRQ &RUQHOO 8QLYHUVLW\ DQG 72 7+( &20081,7< ,WKDFD &ROOHJH WR JRYHUQPHQW 8 6 *HRORJLFDO 6XUYH\ VWDWH DJHQFLHV DQG DUHD ORFDO JRYHUQPHQWV DQG VFKRRO GLVWULFWV WR QRQSUR¿WV $PHULFDQ 5HG &URVV WR KHDOWK FDUH &D\XJD 0HGLFDO 7RPSNLQV &RUWODQG RIIHUV &HQWHU DW ,WKDFD %RUJ:DUQHU D )RUWXQH HPSOR\HUV ZKDW LW FDOOV FRPSDQ\ KDV VHYHUDO IDFLOLWLHV FXVWRPHU GULYHQ WUDLQLQJ LQ WKH UHJLRQ DQG KDV ZRUNHG FORVHO\ VHUYLFHV ² ZLWK ORWV RI ZLWK WKH FROOHJH WR PHHW LWV FRQWLQXLQJ ÀH[LELOLW\ DV WR WRSLF SODFH ZRUNIRUFH GHYHORSPHQW QHHGV 5HFHQWO\ OHQJWK RI WLPH DQG PRUH 7& EL] FRQGXFWHG D VNLOOV DVVHVVPHQW IRU DSSUR[LPDWHO\ QHZ %RUJ:DUQHU HPSOR\HHV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV 6RXWKHUQ 7LHU

+2:

+RZ 681< JUDGXDWHV PDWFK XS ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ WKH 6RXWKHUQ 7LHU

$/801,

0$77(56

72 7+( :25.)25&(

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV

2FFXSDWLRQDO 'HJUHH &DWHJRU\

$JULFXOWXUDO 'HJUHH W\SH

7RWDO 681< GHJUHHV

\U \U

$UW

&RPPXQLFDWLRQV 0HGLD

&RPSXWHU 0DWKHPDWLFV

/DZ 3XEOLF 6HUYLFHV

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

7HFKQLFDO 7UDGHV

+HDOWK

%XVLQHVV )LQDQFH

(GXFDWLRQ

6RFLDO 6HUYLFHV

+RVSLWDOLW\ 6HUYLFH

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

6RXWKHUQ 7LHU 681<V DUH D FULWLFDO XQGHUSLQQLQJ RI WKH UHJLRQDO DQG VWDWH ZRUNIRUFH SUHSDULQJ DQ DPSOH VXSSO\ RI JUDGXDWHV ZLWK WKH VNLOOV DQG GHJUHHV UHJLRQDO HPSOR\HUV GHPDQG 7KH 681< DOXPQL UHSUHVHQW DERXW RQH WKLUG RI WKH HQWLUH 6RXWKHUQ 7LHU ODERU IRUFH

5HVSRQGLQJ WR ODUJH UHJLRQDO WHFKQRORJ\ EDVHG HPSOR\HUV OLNH &RUQLQJ /RFNKHHG DQG 6LNRUVN\ DQG D EXUJHRQLQJ LQGXVWU\ EDVH LQ HOHFWURQLFV DQG LPDJLQJ DOXPQL ZLWK GHJUHHV LQ HQJLQHHULQJ H[LVW LQ ODUJH QXPEHUV LQ WKH UHJLRQ ,Q IDFW WKHUH DUH HQRXJK 681< WUDLQHG VFLHQWLVWV DQG HQJLQHHUV ³ RYHU ³ WR ÀOO QHDUO\ HYHU\ MRE LQ WKH 6RXWKHUQ 7LHU UHTXLULQJ GHJUHHV LQ WKHVH ÀHOGV $ VLPLODUO\ KHDOWK\ VXSSO\ RI 681< DOXPQL KROGLQJ FRPSXWHU PDWKHPDWLFV GHJUHHV OLYHV LQ WKH 6RXWKHUQ 7LHU PDWFKHG QHDUO\ RQH WR RQH WR MREV LQ UHODWHG ÀHOGV 681<V LQ WKH 6RXWKHUQ 7LHU DUH SOD\LQJ D FULWLFDO UROH LQ SUHSDULQJ WKH KHDOWK ZRUNIRUFH 7KH UHJLRQ·V 681< DOXPQL KROGLQJ KHDOWK UHODWHG GHJUHHV IURP QXUVLQJ WR PHGLFLQH KDYH WKH FDSDFLW\ WR ÀOO WKUHH TXDUWHUV RI UHODWHG MREV LQ WKH 6RXWKHUQ 7LHU ,Q DGGLWLRQ WR %LQJKDPWRQ WKH UHJLRQ·V WZR \HDU LQVWLWXWLRQV FRQWULEXWH VLJQLÀFDQWO\ WR WKH UHJLRQ·V ODUJH VKDUH RI KHDOWK DOXPQL 681< DOXPQL DUH OHVV GRPLQDQW DV D VRXUFH RI ODERU LQ WKH ÀHOGV RI KRVSLWDOLW\ ³ D JURZLQJ LQGXVWU\ LQ WKH UHJLRQ ³ DQG VRFLDO VHUYLFHV 7KH VL[ 681< LQVWLWXWLRQV RI WKH 6RXWKHUQ 7LHU JHQHUDWH DSSUR[LPDWHO\ QHZ JUDGXDWHV D \HDU WKRXJK KLVWRULF DOXPQL SDWWHUQV VXJJHVW WKHVH JUDGXDWHV ZLOO PLJUDWH RXW RI WKH UHJLRQ WR D JUHDWHU GHJUHH WKDQ RWKHU UHJLRQV ZLWK RQH LQ WKUHH DOXPQL RI 6RXWKHUQ 7LHU 681<V VHWWOLQJ RXWVLGH WKH UHJLRQ


,Q WHUPV RI SULPLQJ WKH VWDWH·V ZRUNIRUFH IRU VWUDWHJLF LQGXVWU\ FOXVWHUV 681<·V 6RXWKHUQ 7LHU LQVWLWXWLRQV FRQWULEXWH WKH PRVW LQ WKH ÀHOGV RI LQIRUPDWLRQ WHFKQRORJ\ EDFN RIÀFH DQG HOHFWURQLFV LPDJLQJ ZKLFK DOVR DOLJQ ZLWK WKH UHJLRQ·V KLJK JURZWK LQGXVWULHV %H\RQG GHJUHHV 681<V LQ WKH 6RXWKHUQ 7LHU RIIHU D UDQJH RI VSHFLDOL]HG ZRUNIRUFH WUDLQLQJ SURJUDPV WR SURSHO EXVLQHVVHV DQG HPHUJLQJ LQGXVWULHV 7KHVH UDQJH IURP 681< 'HOKL·V VRODU HQHUJ\

WHFKQLFLDQ SURJUDP WR FRXUVHV DQG WUDLQLQJ SURJUDPV IRU VLQJOH HPSOR\HUV RU HQWLUH LQGXVWULHV 6RXWKHUQ 7LHU 681<V *HQHUDWH D /DUJH 6KDUH RI 'HJUHHV IRU 1<6 &OXVWHU ,QGXVWULHV

'LVWULEXWLRQ %LRPHGLFDO (OHFWURQLFV DQG ,PDJLQJ )LQDQFLDO ,QIRUPDWLRQ 7HFKQRORJ\ %DFN 2IÀFH 681< SUHSDUHV WKH VWDWH·V ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ JUDQWLQJ GHJUHHV UHTXLUHG E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV LQGLFDWHV WKLV UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO

%URRPH &RPPXQLW\ &ROOHJH

%URRPH &RPPXQLW\ &ROOHJH 0HHWV 5HTXLUHPHQWV RI 0DQXIDFWXUHUV ³&RQVRUWLXP´ WUDLQLQJ UHSUHVHQWV D NH\ SDUW RI WKH HFRQRPLF DQG ZRUNIRUFH GHYHORSPHQW VWUDWHJ\ HPSOR\HG E\ %URRPH &RPPXQLW\ &ROOHJH 0DQXIDFWXULQJ FRQWLQXHV WR EH D VLJQL¿FDQW GULYHU RI WKH 6RXWKHUQ 7LHU HFRQRP\ DQG WKH FRQVRUWLXP LGHD SOD\V WR WKDW VWUHQJWK 8QGHU WKLV DSSURDFK %URRPH RIIHUV WUDLQLQJ LQ ³OHDQ´ PDQXIDFWXULQJ DGYDQFHG PDQXIDFWXULQJ OHDGHUVKLS 6L[ 6LJPD DQG FRPPXQLFDWLRQV WR JURXSV RI LQGLYLGXDOV IURP PXOWLSOH HPSOR\HUV 7KDW¶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¿FDWLRQ 3URJUDP WKDW SURYLGHV WUDLQLQJ LQ WKRVH VNLOO VHWV ,QGLYLGXDOV ZKR HDUQ WKH FHUWL¿FDWH DUH UHIHUUHG WR ORFDO PDQXIDFWXUHUV UHDG\ IRU HPSOR\PHQW 7KH SURJUDP VHUYHV UHVLGHQWV RI ¿YH FRXQWLHV

&$6( ,1 32,17

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV :HVWHUQ 1HZ <RUN

1LDJDUD &RXQW\ %XIIDOR R 6WDWH H

8 %XIIDOR 8

(ULH

:HVWHUQ 1HZ <RUN

+2:

681<V

)UHGRQLD )

0$77(56

-DPHVWRZQ

681< 7<3(

$OIUHG HG 6WDWH H

$OIUHG 8QLYHUVLW\ &HUDPLFV &HUUUDP &H

8QLYHUVLW\ &HQWHUV 'RFWRUDO *UDQWLQJ ,QVWLWXWLRQV 8QLYHUVLW\ &ROOHJHV &RPPXQLW\ &ROOHJHV 7HFKQRORJ\ &ROOHJHV

681< LQ :HVWHUQ 1HZ <RUN :HVWHUQ 1HZ <RUN KDV RQH RI WKH ODUJHVW 681< IRRWSULQWV LQ 1HZ <RUN 6WDWH ZLWK HLJKW LQVWLWXWLRQV VSDQQLQJ ÀYH FRXQWLHV 7KH V\VWHP·V ODUJHVW VFKRRO WKH 8QLYHUVLW\ DW %XIIDOR VLWV LQ LWV PHWURSROLWDQ FRUH :HVWHUQ 1HZ <RUN·V VWXGHQW SRSXODWLRQ LV DW RQFH WKH VWDWH·V PRVW KRPH JURZQ WZR LQ WKUHH VWXGHQWV DUH IURP ZLWKLQ WKH UHJLRQ DQG RQH RI LWV PRVW JOREDO LQWHUQDWLRQDO HQUROOPHQW KHUH LV GRXEOH WKH 681< DYHUDJH :LWK PRUH WKDQ IDFXOW\ DQG VWDII :HVWHUQ 1HZ <RUN LV WKH VHFRQG ODUJHVW FULWLFDO PDVV RI 681< HPSOR\PHQW $QG PRUH WKDQ SHUFHQW RI WKH 681< DOXPQL OLYLQJ LQ WKH UHJLRQ DUH SURGXFWV RI :HVWHUQ 1HZ <RUN 681<V D OHYHO KLJKHU WKDQ DQ\ RWKHU UHJLRQ LQ WKH VWDWH

7KH :HVWHUQ 1HZ <RUN (FRQRP\

:HVWHUQ 1HZ <RUN LV UDSLGO\ HPHUJLQJ DV D IRUFH LQ WKH LQQRYDWLRQ DQG NQRZOHGJH EDVHG HFRQRP\ DQG LWV 681< LQVWLWXWLRQV DUH OHDGLQJ WKH ZD\ )URP WKH 8QLYHUVLW\ DW %XIIDOR·V LQFXEDWLRQ RI OLIH VFLHQFHV DQG ELRWHFKQRORJ\ HQWHUSULVHV WR 1LDJDUD &RXQW\ &RPPXQLW\ &ROOHJH·V SODQV WR EXLOG D KRVSLWDOLW\ FHQWHU LQ GRZQWRZQ 1LDJDUD )DOOV 681< LV D SRZHUIXO HFRQRPLF GULYHU LQ :HVWHUQ 1HZ <RUN 7KH HLJKW LQVWLWXWLRQV SXPS ELOOLRQ LQWR WKH VWDWH DQG UHJLRQDO HFRQRP\ HYHU\ \HDU DQG VXSSRUW RYHU MREV $ZDUGLQJ FROOHJH GHJUHHV HYHU\ \HDU 681< LV WKH VRXUFH RI WZR LQ WKUHH QHZ JUDGXDWHV LQ WKH UHJLRQ DQG WKXV WKH NH\ IDFWRU LQ SUHSDULQJ WKH ´QHZ HFRQRP\µ ZRUNIRUFH

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


,Q ,,Q · · 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQWHG IRU H P RI :HVWHUQ 1HZ <RUN·V SRSXODWLRQ 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW DQG HPSOR\HH FRXQWV &XUUHQW DOXPQL FRXQWV DUH IURP 681< FDPSXVHV 3RSXODWLRQ GDWD DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³$OXPQL 'DWD´ DQG ³'HPRJUDSKLF +RXVLQJ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

678'(176

VWXGHQWV DWWHQGHG D :HVWHUQ 1HZ <RUN 681< VFKRRO :KHUH WKHVH VWXGHQWV RULJLQDWHG

(03/2<((6

IURP ZLWKLQ WKLV UHJLRQ

IURP IURP IURP HOVHZKHUH HOVHZKHUH HOVHZKHUH LQ 1<6

LQ 8 6

LQ ZRUOG

7RS &RXQWULHV ,QGLD 6LQJDSRUH &KLQD 6 .RUHD &DQDGD

DWWHQGHG D \U DWWHQGHG D \U

681< IDFXOW\ DQG VWDII HPSOR\HG LQ :HVWHUQ 1HZ <RUN

3HUPDQHQW KRPH DGGUHVV RI 681< VWXGHQWV E\ =,3 FRGH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 DQG 681< 5HVHDUFK )RXQGDWLRQ 6HH ³(PSOR\PHQW E\ 681<´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

%\ FRQFHQWUDWLRQ RI LQFRPLQJ VWXGHQWV /2:

+,*+

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQWV 681< $GPLQLVWUDWLRQ SURYLGHG VWXGHQW =,3 FRGHV DQG FRXQWU\ RI RULJLQ IRU LQWHUQDWLRQDO VWXGHQWV 6HH ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

$/801,

681< DOXPQL OLYH LQ :HVWHUQ 1HZ <RUN

JUDGXDWHG IURP D 681< LQ WKLV UHJLRQ DQG VWD\HG LQ WKLV UHJLRQ

JUDGXDWHG IURP D 681< HOVHZKHUH LQ 1<6 DQG QRZ OLYH LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL GDWD DV RI ([FOXGHV DOXPQL IURP VWDWH IXQGHG FROOHJHV DW $OIUHG 8QLYHUVLW\ 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

',9(56,7<

0LQRULW\ VWXGHQWV 6WXGHQWV IURP D ORZ LQFRPH =,3 FRGH FKLOGUHQ OLYH EHORZ SRYHUW\ OLQH

1RQ WUDGLWLRQDO VWXGHQWV DJH

6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH DUH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ³'LYHUVLW\ RI 681< 6WXGHQWV´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV :HVWHUQ 1HZ <RUN

:HVWHUQ 1HZ <RUN 681<V *HQHUDWH D %LOOLRQ (FRQRPLF ,PSDFW

+2: 0$77(56

72 7+( (&2120<

:LWK LWV VL]DEOH 681< SUHVHQFH :HVWHUQ 1HZ <RUN LV WKH VHFRQG ODUJHVW FRQWULEXWRU WR WKH V\VWHP·V RYHUDOO HFRQRPLF LPSDFW ,WV HLJKW FROOHJHV DQG XQLYHUVLWLHV VHQW ELOOLRQ LQWR WKH VWDWHZLGH HFRQRP\ LQ RU DERXW SHUFHQW RI 681<·V WRWDO LPSDFW VHFRQG RQO\ WR /RQJ ,VODQG 7KH EXON RI WKLV HFRQRPLF DFWLYLW\ ³ RU WK WKH KH ELOOLRQ ,QQRYDWLRQ ³ VWD\V LQ (FRQRP\ WKH :HVWHUQ 1HZ <RUN ,Q WKH EHVW RI WKH ODVW UHJLRQ WKUHH \HDUV :HVWHUQ :HVWHUQ 1HZ <RUN 681<V JHQHUDWHG« 1HZ <RUN 681<V LQYHQWLRQ VXSSRUW GLVFORVXUHV RU GLUHFWO\ SDWHQW SURYLGH RYHU DSSOLFDWLRQV MREV DQG JHQHUDWH SDWHQWV PLOOLRQ VSLQ RIIV LQ ORFDO DQG VWDUW XSV VWDWH WD[HV OLFHQVHV +RPH WR WKH V\VWHP·V 6RXUFH ,QWHUYLHZ DQG VXUYH\ GDWD IURP 681< LQVWLWXWLRQV ODUJHVW UHVHDUFK XQLYHUVLW\ :HVWHUQ 1HZ <RUN LV DOVR RQH RI WKH WRS UHJLRQV IRU JHQHUDWLQJ UHYHQXHV WKURXJK UHVHDUFK

+HUH·V KRZ LW KDSSHQV PLOOLRQ LQ UHYHQXHV 681< DWWUDFWV UHYHQXHV IURP D UDQJH RI SXEOLF DQG SULYDWH VRXUFHV«

0 WXLWLRQ IHHV 0 DX[LOLDU\ VHUYLFH VDOHV 0 1<6 DSSURSULDWLRQV JUDQWV FRQWUDFWV 0 IHGHUDO DSSURSULDWLRQV JUDQWV FRQWUDFWV WV 0 RWKHU VRXUFHV

6SRQVRUHG UHVHDUFK GROODUV (VWLPDWHG RXW RI VWDWH UHYHQXHV

681< FDPSXVHV HPSOR\HHV VWXGHQWV DQG YLVLWRUV SXUFKDVH JRRGV DQG VHUYLFHV

ELOOLRQ LQ VSHQGLQJ % E\ 681< RQ HPSOR\HH ZDJHV EHQH¿WV V 0 E\ 681< RQ RWKHU LQVWLWXWLRQDO SXUFKDVHV HV 0 E\ VWXGHQWV 0 E\ RYHUQLJKW YLVLWRUV 0 YLVLWRUV RYHUQLJKW

(VWLPDWHG VSHQGLQJ LQ 1<6 (VWLPDWHG VSHQGLQJ LQ UHJLRQ

(FRQRPLF 2XWSXW (

7KRVH GROODUV FLUFXODWH WKURXJK WKH VWDWH DQG UHJLRQDO HFRQRP\ VWLPXODWLQJ DGGLWLRQDO HFRQRPLF DFWLYLW\ DQG JUHDWHU WRWDO LPSDFWV

ELOOLRQ LQ 1<6 DQG RU ELOOLRQ LQ :HVWHUQ 1HZ <RUN (PSOR\PHQW ,PSDFW

MREV

681< HPSOR\PHQW -REV LQGLUHFWO\ VXSSRUWHG 7D[HV *HQHUDWHG

0 LQ WRWDO WD[HV JHQHUDWHG IRU 1<6 DQG :HVWHUQ 1HZ <RUN 0 LQFRPH WD[HV 0 VDOHV WD[HV 0 SURSHUW\ WD[HV

6XP WRWDO PD\ GLIIHU VOLJKWO\ GXH WR URXQGLQJ

'ULYLQJ WKH (FRQRP\

% 0

5HSUHVHQWV HSUHVHQWV D UHWXUQ RQ LQYHVWPHQW IRU HYHU\ GROODU RI VWDWH IXQGLQJ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

6SRQVRUHG UHVHDUFK DFFRXQWV IRU SHUFHQW RI 681< UHYHQXHV LQ :HVWHUQ 1HZ <RUN VLJQLÀFDQWO\ PRUH WKDQ WKH SHUFHQW DYHUDJH DFURVV DOO 681<V VWDWHZLGH 0DQ\ RI WKHVH UHVHDUFK GROODUV IXQG DFDGHPLF UHVHDUFK WKDW LV FRPPHUFLDOL]HG WKURXJK LQYHQWLRQV 6RXUFH 8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV UHYHQXHV VSHQGLQJ DQG HPSOR\PHQW FRXQWV 681< FDPSXVHV SURYLGHG GDWD RQ RXW RI VWDWH UHYHQXH DQG VSHQGLQJ ,PSDFWV KDYH EHHQ FDOFXODWHG XVLQJ ,03/$1 7D[ LPSDFWV DUH EDVHG RQ GDWD IURP 1<6 'HSW RI 7D[DWLRQ DQG )LQDQFH DQG 1<6 2I¿FH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 6HH ³(FRQRPLF ,PSDFW ´ ³(PSOR\PHQW E\ 681< ´ ³5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV ´ ³6WXGHQW 6SHQGLQJ ´ ³6XUYH\ RI 681< &DPSXVHV ´ ³7D[ ,PSDFWV´ DQG ³9LVLWRU 6SHQGLQJ´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ


SDWHQWV DQG EXVLQHVV VWDUW XSV ³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·V ODUJHVW FRQFHQWUDWLRQ RI VWXGHQWV :HVWHUQ 1HZ <RUN DFFRXQWV IRU RQH ÀIWK RI DOO 681< VWXGHQW VSHQGLQJ :HVWHUQ 1HZ <RUN 681<V DOVR GUDZ PRUH WKDQ D PLOOLRQ YLVLWRUV WR WKHLU FDPSXVHV IRU VSHFLDO HYHQWV DQG DWWUDFWLRQV IURP 681< )UHGRQLD·V 5RFNHIHOOHU $UWV &HQWHU WR 'LYLVLRQ , DWKOHWLFV DW WKH 8QLYHUVLW\ DW %XIIDOR 7KRVH YLVLWRUV VWD\LQJ RYHUQLJKW VSHQW DQ HVWLPDWHG PLOOLRQ RQ KRWHOV IRRG DQG RWKHU H[SHQVHV LQ $GGLWLRQDO FRQWULEXWLRQV WR YLEUDQW FRPPXQLWLHV LQFOXGH 1LDJDUD &RXQW\ &RPPXQLW\ &ROOHJH·V SODQV WR EXLOG LWV +RVSLWDOLW\ DQG 7RXULVP &HQWHU LQ DQ DEDQGRQHG PDOO LQ GRZQWRZQ 1LDJDUD )DOOV DQG KRPH EXLOGLQJ LQLWLDWLYHV DW $OIUHG 6WDWH 6HH DOVR 681< DW :RUN 7KH %URDG (FRQRPLF 5HDFK RI WKH 8QLYHUVLW\ DW %XIIDOR S

681< )UHGRQLD

)UHGRQLD %XLOW D 1HZ ,QFXEDWRU WR +HOS LW 6WDUW *URZ DQG .HHS %XVLQHVVHV LQ :HVWHUQ 1HZ <RUN

&$6( ,1 32,17

681< )UHGRQLD D IRXU \HDU OLEHUDO DUWV VFKRRO LQ D SLFWXUHVTXH VPDOO WRZQ VRXWK RI %XIIDOR LV SHUKDSV EHVW NQRZQ IRU WKH TXDOLW\ RI LWV SURJUDPV LQ WKH DUWV PXVLF DQG RWKHU KXPDQLWLHV

%XW 'HQQLV / +HIQHU WKH SUHVLGHQW RI WKH VWXGHQW FDPSXV KDV ORQJ VRXJKW WR LGHQWLI\ ZD\V LQ ZKLFK WKH FROOHJH FRXOG KDYH D GLUHFW LPSDFW RQ EXVLQHVV GHYHORSPHQW LQ WKH UHJLRQ $IWHU DQ H[WHQVLYH SHULRG RI IXQGUDLVLQJ DQG QHJRWLDWLQJ LQ 'HFHPEHU KH FXW WKH ULEERQ RQ D QHZ EXVLQHVV LQFXEDWRU EXLOW QRW RQ WKH FDPSXV LWVHOI EXW RQ D IRUPHUO\ DEDQGRQHG SORW RQ 0DLQ 6WUHHW LQ WKH QHDUE\ LQGXVWULDO FLW\ RI 'XQNLUN 7KH SXUSRVH KH VDLG ZDV ³WR DWWUDFW DQG EXLOG QHZ EXVLQHVVHV LQ WKH WHFKQRORJ\ VHFWRU WR RXU UHJLRQ DQG WKHQ KHOS WKHP ÀRXULVK KHUH ´ $IWHU QRW PXFK PRUH WKDQ D \HDU )UHGRQLD¶V QHZ %XVLQHVV 7HFKQRORJ\ ,QFXEDWRU LV ZHOO RQ LWV ZD\ WR VXFFHVV ZLWK VPDOO EXVLQHVVHV LQ UHVLGHQFH DQG PRUH RQ WKH ZD\ :KDW PDNHV WKH SURMHFW SDUWLFXODUO\ LQWHUHVWLQJ LV WKDW UDWKHU WKDQ D W\SLFDO LQFXEDWRU RSHQHG E\ D WHFKQRORJ\ RU HQJLQHHULQJ RULHQWHG XQLYHUVLW\ IRU EXVLQHVVHV WKDW DUH FRPPHUFLDOL]LQJ LGHDV WKDW FDPH IURP WKH FDPSXV WKH )UHGRQLD LQFXEDWRU LV EXLOW DURXQG EXVLQHVVHV WKDW GLGQ¶W QHFHVVDULO\ JURZ RXW RI WKH FROOHJH ² EXW WKDW ZDQW WR WDNH DGYDQWDJH RI EXLOGLQJ D UHODWLRQVKLS ZLWK LW ³7KH LQWHUVHFWLRQ RI WHFKQRORJ\ WKH DUWV DQG EXVLQHVV LV WKH VZHHW VSRW IRU )UHGRQLD ´ VD\V 5REHUW )ULW]LQJHU ZKR GLUHFWV WKH LQFXEDWRU DQG LV KLPVHOI D VXFFHVVIXO HQWUHSUHQHXU 7HQDQWV LQ WKH LQFXEDWRU KDYH DFFHVV WR )UHGRQLD ODEV DQG RWKHU UHVRXUFHV KH VD\V DQG DUH ³WKULOOHG DW WKH TXDOLW\ RI WKH LQWHUQV´ WKH\ FDQ UHFUXLW IURP WKH FROOHJH¶V EXVLQHVV DUWV DQG VFLHQFH SURJUDPV ³)RU D VWDUW XS FRPSDQ\ WKDW¶V IRFXVHG RQ WKH :HE ´ KH VD\V ³DQ LQWHUQ ZKR¶V VDYY\ LQ WKH DUWV DQG QHZ PHGLD FDQ EH D KXJH DGYDQWDJH ´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¶V ODUJH IRRG SURFHVVLQJ VHFWRU 7KH IDFLOLW\ LV ¿UVW UDWH EXW WKH QHWZRUNLQJ DQG VXSSRUW DYDLODEOH DUH HYHQ EHWWHU VD\V )ULW]LQJHU ³,Q DQ LQFXEDWRU WKH FOLHQWV VWDUW WR DGG YDOXH WR HDFK RWKHU ´ KH VD\V ³$QG IRU PH WKLV LV D WHDFKLQJ MRE ² , VSHQG PRVW RI P\ WLPH FRDFKLQJ WKHP RQ KRZ WR UDLVH PRQH\ ´

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


681< DQG 1HZ <RUN·V 5HJLRQDO (FRQRPLHV :HVWHUQ 1HZ <RUN

+RZ 681< JUDGXDWHV PDWFK XS +2: ZLWK ZRUNIRUFH QHHGV DFURVV WKH UDQJH RI LQGXVWULHV LQ :HVWHUQ 1HZ 0$77(56 <RUN

$/801,

2FFXSDWLRQDO 'HJUHH &DWHJRU\

'HJUHHV KHOG E\ 681< DOXPQL DV D SURSRUWLRQ RI MREV UHTXLULQJ D GHJUHH RU DGYDQFHG VNLOO LQ UHODWHG LQGXVWULHV

$JULFXOWXUDO

7RWDO 681< GHJUHHV

$UW 'HJUHH W\SH

&RPPXQLFDWLRQV 0HGLD

\U \U

6FLHQFH (QJLQHHULQJ (QYLURQPHQWDO

/DZ 3XEOLF 6HUYLFHV

(GXFDWLRQ

6RFLDO 6HUYLFHV

+HDOWK

7HFKQLFDO 7UDGHV &RPSXWHU 0DWKHPDWLFV +RVSLWDOLW\ 6HUYLFH %XVLQHVV )LQDQFH

72 7+( :25.)25&(

:KLOH EULQJLQJ LPSRUWDQW FDSDFLWLHV WR WKH ZRUNIRUFH OLEHUDO DUWV GHJUHHV DUH WRR EURDG WR EH PDWFKHG WR D VSHFL¿F RFFXSDWLRQDO ¿HOG DQG ZHUH WKXV H[FOXGHG IURP WKLV DQDO\VLV 6RXUFH 681< LQVWLWXWLRQV SURYLGHG DOXPQL =,3 FRGHV DQG ¿HOG RI VWXG\ RFFXSDWLRQDO GDWD DUH IURP 1<6 'HSW RI /DERU 6HH ³$OXPQL 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

3UHSDULQJ WKH :RUNIRUFH

7KH PRUH WKDQ 681< DOXPQL OLYLQJ LQ :HVWHUQ 1HZ <RUN VXSSO\ D GLYHUVHO\ WUDLQHG ODERU VXSSO\ IRU WKH UHJLRQ·V ZRUNIRUFH QHHGV FRQVWLWXWLQJ RQH WKLUG RI WKH UHJLRQ·V RYHUDOO ODERU SRRO ,Q IDFW IRU DOO MRE FDWHJRULHV LQ :HVWHUQ 1HZ <RUN 681< DOXPQL UHSUHVHQW DW OHDVW SHUFHQW RI WKH UHJLRQ·V ODERU VXSSO\ 6XSSRUWLQJ HPHUJLQJ LQGXVWULHV LQ WKH OLIH VFLHQFHV DQG ELRPHGLFLQH DUH ODUJH FRQFHQWUDWLRQV RI 681< DOXPQL ZLWK GHJUHHV LQ VFLHQFH DQG HQJLQHHULQJ 7KHVH DOXPQL DUH HQRXJK WR ÀOO HYHU\ UHODWHG MRE UHTXLULQJ D FROOHJH GHJUHH RU DGYDQFHG VNLOO LQ :HVWHUQ 1HZ <RUN 2YHU DOXPQL KROGLQJ KHDOWK GHJUHHV PRUH WKDQ KDOI RI WKHVH DW WKH WZR \HDU OHYHO DUH DOVR D FULWLFDO VRXUFH RI ODERU IRU WKLV PDMRU LQGXVWU\ LQ :HVWHUQ 1HZ <RUN 7KH UHJLRQ·V WZR \HDU LQVWLWXWLRQV DOVR SOD\ D VLJQLÀFDQW UROH LQ SUHSDULQJ WKH ZRUNIRUFH IRU MREV LQ WKH WHFKQLFDO WUDGHV ZLWK DOXPQL DEOH WR ÀOO DERXW WZR LQ WKUHH UHODWHG MREV $V ZLWK PRVW RWKHU UHJLRQV DFURVV WKH VWDWH :HVWHUQ 1HZ <RUN·V EDVH RI 681< DOXPQL LQFOXGHV D ODUJH SRRO RI WHDFKHUV DQG HGXFDWRUV 7KH 681< WUDLQHG HGXFDWRUV KDYH WKH FDSDFLW\ WR ÀOO RYHU HLJKW LQ UHODWHG GHJUHH UHTXLULQJ MREV LQ :HVWHUQ 1HZ <RUN %XIIDOR 6WDWH &ROOHJH·V ORQJ KLVWRU\ DQG VSHFLDOL]DWLRQ LQ HGXFDWLRQ LV DQ LPSRUWDQW VRXUFH RI WKLV ODERU DV KDOI RI WKHVH DOXPQL JUDGXDWHG IURP WKLV LQVWLWXWLRQ $V WKH RQO\ ODZ VFKRRO LQ WKH 681< V\VWHP WKH 8QLYHUVLW\ DW %XIIDOR /DZ 6FKRRO LV D FULWLFDO VRXUFH RI ODZ SURIHVVLRQDOV VWDWHZLGH EXW HVSHFLDOO\ LQ :HVWHUQ 1HZ <RUN 2YHU KDOI RI WKH VFKRRO·V DOXPQL KDYH UHPDLQHG LQ WKH UHJLRQ (YHU\ \HDU PRUH WKDQ QHZO\ PLQWHG JUDGV HPHUJH IURP WKH UHJLRQ·V 681<V ZLWK WKH ODWHVW


VNLOOV HDJHU WR ÀOO MREV LQ IDVW JURZLQJ NQRZOHGJH LQGXVWULHV 7KRVH JUDGXDWHV DFFRXQW IRU WKH EXON ³ DERXW SHUFHQW ³ RI DOO UHFHQW FROOHJH JUDGXDWHV LQ WKH UHJLRQ LQGLFDWLYH RI WKH SURPLQHQW UROH 681< SOD\V KHUH LQ HFRQRPLF DQG ZRUNIRUFH GHYHORSPHQW $ERXW WZR LQ ÀYH RI WKHVH ZLOO VWD\ LQ WKH UHJLRQ WR OLYH DQG ZRUN VXJJHVWLQJ ERWK FKDOOHQJHV LQ WKH VXSSO\ RI MREV LQ WKH UHJLRQ DV ZHOO DV SRWHQWLDO WR LQFUHDVLQJO\ OHYHUDJH 681< DV D NQRZOHGJH ZRUNIRUFH UHVRXUFH IRU :HVWHUQ 1HZ <RUN :HVWHUQ 1HZ <RUN DFFRXQWV IRU D ODUJH VKDUH RI 681< JUDGXDWHV WUDLQHG IRU ZRUN LQ FOXVWHU LQGXVWULHV WKDW DUH WKH IRFXV RI VWDWH HFRQRPLF GHYHORSPHQW HIIRUWV 1HDUO\ RQH LQ

IRXU RI 681<·V RYHUDOO FOXVWHU UHODWHG GHJUHHV LV JUDQWHG E\ D 681< LQVWLWXWLRQ LQ :HVWHUQ 1HZ <RUN 7KH UHJLRQ LV WKH ELJJHVW SURGXFHU RI FOXVWHU UHODWHG GHJUHHV LQ DOO EXW WZR RI WKH LQGXVWULHV H[DPLQHG ³ WKDW LV IDVKLRQ DQG GLVWULEXWLRQ 681< LV SDUWQHULQJ ZLWK LQGXVWU\ WR DOLJQ WUDLQLQJ ZLWK HPSOR\HU QHHGV )RU H[DPSOH (ULH &RPPXQLW\ &ROOHJH KDV IRUPHG LQQRYDWLYH SDUWQHUVKLSV WR KHOS VWXGHQWV DFKLHYH VXFFHVV 7KH 0DFKLQLQJ DQG 0DQXIDFWXULQJ $OOLDQFH RIIHUV D FUHGLW FHUWLÀFDWH WKDW LV ERWK D NH\ FUHGHQWLDO IRU HPSOR\PHQW DQG D VWHSSLQJ VWRQH IRU DQ DVVRFLDWH·V GHJUHH LQ ,QGXVWULDO 7HFKQRORJ\ 7KH &LVFR 1HWZRUNLQJ $FDGHP\ WUDLQV VWXGHQWV WR GHVLJQ EXLOG DQG

PDLQWDLQ FRPSXWHU QHWZRUNV ZKLOH WKH ,QGXVWULDO 5HIULJHUDWLRQ SURJUDP WUDLQV SHUVRQQHO QHHGHG IRU WKH IRRG SURFHVVLQJ UHIULJHUDWHG ZDUHKRXVLQJ SHWURFKHPLFDO DQG SKDUPDFHXWLFDO LQGXVWULHV

:HVWHUQ 1HZ <RUN 681<V *HQHUDWH D /DUJH 6KDUH RI 'HJUHHV IRU 1<6 &OXVWHU ,QGXVWULHV %LRPHGLFDO 0DQXIDFWXULQJ

(OHFWURQLFV ,PDJLQJ ,QIRUPDWLRQ 7HFKQRORJ\ %DFN 2IÀFH )URQW 2IÀFH 3URGXFHU 6HUYLFHV )LQDQFLDO 6HUYLFHV &RPPXQLFDWLRQV 6RIWZDUH 0HGLD 681< SUHSDUHV WKH VWDWH·V ZRUNIRUFH IRU VWUDWHJLF FOXVWHU LQGXVWULHV E\ JUDQWLQJ GHJUHHV UHTXLUHG E\ MREV LQ WKRVH LQGXVWULHV $ ´ODUJH VKDUHµ RI FOXVWHU UHODWHG GHJUHHV LQGLFDWHV WKLV UHJLRQ·V 681<V FRQWULEXWH SURSRUWLRQDOO\ PRUH WR 681<·V WRWDO GHJUHHV IRU RQH RU PRUH FOXVWHUV WKDQ WKH\ GR WR 681< GHJUHHV RYHUDOO

-DPHVWRZQ &RPPXQLW\ &ROOHJH

-DPHVWRZQ &RPPXQLW\ &ROOHJH &ROODERUDWHV ZLWK 0DQXIDFWXUHUV WR $GGUHVV :RUNIRUFH 1HHGV 'RQ¶W WHOO SHRSOH LQ WKH 6RXWKHUQ 7LHU WKDW WKH GD\V RI PDQXIDFWXULQJ DUH RYHU 7KH VHFWRU VWLOO DFFRXQWV IRU SHUFHQW RI WKH MREV LQ &KDXWDXTXD &RXQW\ ² FRPSDUHG WR D 1HZ <RUN 6WDWH DYHUDJH RI RQO\ SHUFHQW %XW ZLWK D %DE\ %RRP JHQHUDWLRQ RI ZRUNHUV QHDULQJ UHWLUHPHQW DJH ORFDO HPSOR\HUV DUH FRQFHUQHG DERXW ZKHWKHU WKH\¶OO KDYH WKH VNLOOHG ZRUNHUV WKH\ QHHG LQ WKH \HDUV DKHDG 6R -DPHVWRZQ &RPPXQLW\ &ROOHJH ZRUNHG ZLWK WKH 0DQXIDFWXUHUV¶ $VVRFLDWLRQ RI WKH 6RXWKHUQ 7LHU WR RSHQ D QHZ 0DQXIDFWXULQJ 7HFKQRORJ\ ,QVWLWXWH 07, ² VWXIIHG ZLWK PDFKLQH WRROV FRPSXWHUV ZHOGLQJ HTXLSPHQW DQG SURWRW\SLQJ JHDU RQ ZKLFK &$6( VWXGHQWV FDQ WUDLQ 7KH FROOHJH QRZ RIIHUV DVVRFLDWH¶V GHJUHH SURJUDPV LQ HQJLQHHULQJ ,1 32,17 VFLHQFH GLJLWDO FRPSXWHU WHFKQRORJ\ ZHOGLQJ DQG PHFKDQLFDO WHFKQRORJ\ ZLWK FHUWL¿FDWH SURJUDPV LQ FRPSXWHU DLGHG GHVLJQ FRPSXWHU QXPHULFDO FRQWURO HOHFWULFLW\ HOHFWURQLFV DQG PDFKLQH WRRO WHFKQRORJ\ &KDXWDXTXD &RXQW\ KDV D VWRULHG UHFRUG DV D

PDQXIDFWXULQJ FHQWHU 7KH &UHVFHQW ZUHQFK ZDV LQYHQWHG LQ -DPHVWRZQ WR JLYH MXVW RQH H[DPSOH 'LHVHO HQJLQHV PDFKLQH WRROV IXUQLWXUH DQG IRRG SURFHVVLQJ DUH VWLOO VWUHQJWKV WRGD\ %XW ZLOO WKH UHJLRQ KDYH WKH VNLOOHG ZRUNIRUFH LW QHHGV WR FRPSHWH WRPRUURZ"

%< 7+( 180%(56

681< DOXPQL OLYLQJ LQ UHJLRQ DV RI UHJLRQ¶V WRWDO ODERU VXSSO\

%XVLQHVV OHDGHUV FUHGLW WKH 07, SDUWQHUVKLS ZLWK DGGUHVVLQJ DUHD PDQXIDFWXUHUV¶ QHHGV ZLWK DFDGHPLF SURJUDPV WKDW FDUU\ FROOHJH FUHGLWV DQG GHJUHHV ² VRPHWKLQJ WKH\ VD\ KHOSV FRQYLQFH \RXQJ SHRSOH WKDW D PDQXIDFWXULQJ FDUHHU FDQ EH DWWUDFWLYH

7RWDO GHJUHHV IURP UHJLRQ¶V 681<V

681< JUDGV DV D RI WRWDO JUDGV LQ WKLV UHJLRQ

6RXUFH 681< LQVWLWXWLRQV SURYLGHG FXUUHQW DOXPQL GDWD ODERU VXSSO\ LV IURP 1<6 'HSW RI /DERU 'HJUHHV DZDUGHG DUH IURP 8 6 'HSW RI (GXFDWLRQ ,3('6 6HH ³$OXPQL 'DWD´ DQG ³6WXGHQW /RFDWLRQ 'DWD´ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


+2: 0$77(56

&RQFOXVLRQV 7KLV VWXG\ LV WKH PRVW FRPSUHKHQVLYH DQDO\VLV WR GDWH RI WKH HFRQRPLF UROHV SHUIRUPHG E\ WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN ,W LQFOXGHV DQ HFRQRPLF LPSDFW DQDO\VLV ZKLFK À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³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

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


%DVHG RQ DQDO\VHV RI WKHVH GDWD VHYHUDO FRQFOXVLRQV VWDQG RXW

(YHQ XVLQJ FRQVHUYDWLYH DVVXPSWLRQV 681< VSHQGLQJ DQG HPSOR\PHQW H[HUW ODUJH HIIHFWV RQ ORFDO DQG VWDWH HFRQRPLHV DQG JLYH 1HZ <RUN 6WDWH JRYHUQPHQW D VWURQJ UHWXUQ RQ LWV LQYHVWPHQW

2QH VHW RI TXDQWLÀDEOH LPSDFWV ÁRZV IURP 681< UHYHQXHV DQG H[SHQGLWXUHV (DFK 681< FDPSXV DWWUDFWV IXQGV IURP IDPLOLHV VWXGHQWV JRYHUQPHQWV UHVHDUFK JUDQWV DQG RWKHU VRXUFHV 7KH FROOHJH RU XQLYHUVLW\ WKHQ VSHQGV WKHVH GROODUV RQ QHZ EXLOGLQJV DQG IDFLOLWLHV HTXLSPHQW ZDJHV DQG VDODULHV IRU IDFXOW\ DQG VWDII ZRUN VWXG\ ZDJHV IRU VWXGHQWV ZLWK ÀQDQFLDO QHHGV DQG RWKHU LWHPV 7KHVH H[SHQGLWXUHV FRQWLQXH WR FLUFXODWH JHQHUDWLQJ WD[ GROODUV IRU VWDWH DQG ORFDO JRYHUQPHQWV DQG FRQWULEXWLQJ WR UHJLRQDO DQG VWDWH HFRQRPLHV 7KLV DQDO\VLV HVWLPDWHV WKH LQSXW RXWSXW HIIHFW RI 681<·V H[SHQGLWXUHV³WDNLQJ LQWR DFFRXQW GLUHFW DQG LQGLUHFW HIIHFWV³LV ELOOLRQ DQG MREV VWDWHZLGH LQ 7KLV LPSDFW ZDV IXHOHG E\ WKH QHDUO\ ELOOLRQ 681< UHFHLYHG LQ UHYHQXHV IURP D ZLGH YDULHW\ RI VRXUFHV 2I WKHVH UHYHQXHV ELOOLRQ FDPH IURP UHVHDUFK JUDQWV DQG FRQWUDFWV DERXW KDOI RI ZKLFK ZHUH DZDUGHG E\ WKH IHGHUDO JRYHUQPHQW 7KLV LV D FDUHIXO HVWLPDWH PRUH SUXGHQW WKDQ WKRVH LQ PDQ\ VWXGLHV RI XQLYHUVLWLHV· HFRQRPLF HIIHFWV L ,W XVHV FRQVHUYDWLYH DVVXPSWLRQV LQ WKH LQSXW RXWSXW PRGHO DQG LW GRHV QRW LQFOXGH PDQ\ HIIHFWV WKDW DUH KDUG WR PHDVXUH DFURVV PXOWLSOH FDPSXVHV VXFK DV WKH LPSDFWV RI LQFXEDWHG EXVLQHVVHV SURGXFWLYLW\ JDLQV IURP EXVLQHVVHV WKDW GUDZ GLUHFWO\ IURP 681<·V ZRUNIRUFH WUDLQLQJ DQG HQWUHSUHQHXULDO VHUYLFHV DQG EXVLQHVVHV DWWUDFWHG WR D FRPPXQLW\ EHFDXVH RI 681<·V SUHVHQFH 'HVSLWH WKHVH FDXWLRXV DVVXPSWLRQV WKLV VWXG\ IRXQG WKDW VWDWH VSHQGLQJ RQ 681< \LHOGV D VWURQJ UHWXUQ 1HZ <RUN 6WDWH JRYHUQPHQW SURYLGHG ELOOLRQ RI 681<·V UHYHQXHV LQ DSSURSULDWLRQV JUDQWV FRQWUDFWV DQG RWKHU W\SHV RI VXSSRUW LQ ,Q OLJKW RI WKH HFRQRPLF LPSDFW HVWLPDWH WKDW LV D WR UHWXUQ UDWH IRU VWDWH VSHQGLQJ (FRQRPLF LPSDFWV YDU\ DFURVV UHJLRQV 7KH ODUJHVW LPSDFWV ZHUH IRXQG LQ /RQJ ,VODQG ELOOLRQ DQG :HVWHUQ 1HZ <RUN ELOOLRQ %XW WKRXJK WKHVH WZR UHJLRQV ZHUH PXFK KLJKHU WKDQ DQ\ RWKHUV D VWULNLQJ ÀQGLQJ ZDV WKDW RXW RI UHJLRQV LQ WKH VWDWH VL[ KDG LPSDFWV RI QHDUO\ ELOOLRQ RU PRUH

681< SURYLGHV D ODUJH VKDUH RI WKH ZHOO HGXFDWHG ZRUNIRUFH LQ WKH VWDWH WKRXJK LWV UROH YDULHV JUHDWO\ IURP RQH UHJLRQ WR DQRWKHU

7KH V\VWHP·V SULPDU\ PLVVLRQ LV HGXFDWLRQ DQG 681<·V HGXFDWLRQDO UROH LQ 1HZ <RUN LV LPPHQVH $V RI PLOOLRQ 681< DOXPQL OLYH LQ 1HZ <RUN PDNLQJ XS D ODUJH SDUW RI WKH VWDWH·V KLJKO\ HGXFDWHG ZRUNIRUFH 7ZR RXW RI WKUHH RI DOO 681< GHJUHHV DZDUGHG ZHUH LQ ÀHOGV UHODWHG WR WKH FOXVWHUV WKDW WKH VWDWH JRYHUQPHQW KDV LGHQWLÀHG DV NH\ WR WKH VWDWH·V IXWXUH JURZWK 681< DOXPQL RIWHQ VWD\ LQ WKHLU FRPPXQLWLHV DQ LPSRUWDQW FRQWULEXWLRQ LQ WKH 1RUWKHDVW ZKHUH SRSXODWLRQ ORVVHV KDYH EHHQ ZLGHVSUHDG 681< VWXGHQWV HPSOR\HHV DQG DOXPQL DFFRXQW IRU ODUJH VKDUHV RI WKH SRSXODWLRQV LQ PRVW PDMRU UHJLRQV VXFK DV SHUFHQW RI WKH SRSXODWLRQ LQ /RQJ ,VODQG WR SHUFHQW LQ WKH &DSLWDO 'LVWULFW &HQWUDO 1HZ <RUN )LQJHU /DNHV 6RXWKHUQ 7LHU DQG :HVWHUQ 1HZ <RUN DQG SHUFHQW LQ WKH 1RUWK &RXQWU\ 1HZ <RUN &LW\ VKRZV WKH ORZHVW SHUFHQWDJH RI 681<

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


&RQFOXVLRQV

´DIÀOLDWHVµ³RQO\ SHUFHQW RI WKDW DUHD·V ODUJH SRSXODWLRQ LQ %XW HYHQ KHUH 681<·V LPSDFW LV JUHDW ,WV )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ LV WKH JDUPHQW LQGXVWU\·V PRVW LPSRUWDQW VRXUFH RI VNLOOHG ZRUNHUV DQG 'RZQVWDWH 0HGLFDO &HQWHU DQG WKH &ROOHJH RI 2SWRPHWU\ SURYLGH YLWDO VRXUFHV RI KHDOWK FDUH ZRUNHUV IRU WKH UHJLRQ

681< XQLYHUVLWLHV DQG FROOHJHV SURYLGH DQ H[WUDRUGLQDU\ UDQJH RI GLUHFW VHUYLFHV WR VWDWH DQG ORFDO EXVLQHVVHV ³ RIWHQ WDLORUHG WR PHHW WKH SDUWLFXODU QHHGV RI VSHFLÀF EXVLQHVVHV DQG DGGUHVV WKH FKDOOHQJHV DQG RSSRUWXQLWLHV RI GLIIHUHQW UHJLRQV

$OO W\SHV RI 681< FDPSXVHV W\SLFDOO\ KDYH RIÀFHV WKDW DVVLVW VPDOO EXVLQHVVHV DQG RIIHU WUDLQLQJ SURJUDPV ÀWWHG WR WKH VSHFLDO QHHGV RI LQGLYLGXDO HPSOR\HUV ([DPSOHV DUH IRXQG WKURXJKRXW WKH VWDWH DQG LQ DOO W\SHV RI 681< FROOHJHV DQG XQLYHUVLWLHV )RU LQVWDQFH ‡ ,Q WKH &DSLWDO 'LVWULFW FRPPXQLW\ FROOHJHV KDYH DGGHG WUDLQLQJ SURJUDPV DQG IDFLOLWLHV WR HQDEOH ORFDO ZRUNHUV WR WDNH DGYDQWDJH RI WKH MREV FUHDWHG E\ WKH 8QLYHUVLW\ DW $OEDQ\·V &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ ‡ ,Q WKH )LQJHU /DNHV 681< *HQHVHR·V 0LFURHQWHUSULVH $VVLVWDQFH 3URJUDP SURYLGHV ORZ DQG PRGHUDWH LQFRPH HQWUHSUHQHXUV ZLWK IUHH WUDLQLQJ DQG WHFKQLFDO DVVLVWDQFH WR VWDUW DQG PDLQWDLQ EXVLQHVVHV ‡ ,Q WKH +XGVRQ 9DOOH\ VL[ FRPPXQLW\ FROOHJHV KDYH FUHDWHG D &OHDQ (QHUJ\ 7HFKQRORJ\ 7UDLQLQJ &RQVRUWLXP WKDW SRROV WKHLU UHVRXUFHV WR SURYLGH WKH WUDLQLQJ QHHGHG E\ WKH UHJLRQ·V JURZLQJ ´JUHHQµ EXVLQHVVHV ‡ 2Q /RQJ ,VODQG )DUPLQJGDOH 6WDWH &ROOHJH RSHUDWHV DQ ,QVWLWXWH IRU 5HVHDUFK DQG 7HFKQRORJ\ WKDW JLYHV LQGXVWU\ DFFHVV WR VSHFLDOL]HG HTXLSPHQW DQG IDFXOW\ FRQVXOWDWLRQ ‡ ,Q 1HZ <RUN &LW\ 681<·V )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ KDV SDUWQHUVKLSV ZLWK PRUH WKDQ FRPSDQ\ VSRQVRUV DQG ÀOOV RYHU LQWHUQVKLS SRVLWLRQV ‡ ,Q WKH 1RUWK &RXQWU\ &OLQWRQ &RPPXQLW\ &ROOHJH GHYHORSHG D VSHFLDOL]HG WUDLQLQJ SURJUDP WKDW ZDV HVVHQWLDO LQ DWWUDFWLQJ D QHZ EXV PDQXIDFWXUHU WR WKH UHJLRQ ‡ $QG LQ WKH 6RXWKHUQ 7LHU 7RPSNLQV &RUWODQG &RPPXQLW\ &ROOHJH RIIHUV HPSOR\HUV FXVWRPL]HG VSHFLDOL]HG WUDLQLQJ SURJUDPV DW WKUHH VLWHV RU DW D FRPSDQ\·V RZQ ORFDWLRQ 2WKHU H[DPSOHV RI GLUHFW EXVLQHVV DVVLVWDQFH LQFOXGH KHOS LQ À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ÀFH RI (FRQRPLF (QJDJHPHQW WR JLYH EXVLQHVVHV D KHOSIXO HDV\ WR XVH SRLQW RI HQWU\³RU LQ WKH ZRUGV RI RQH FRXQW\ HFRQRPLF GHYHORSPHQW RIÀFLDO D ´SHUPHDEOH PHPEUDQH EHWZHHQ WKH XQLYHUVLW\ DQG WKH FRPPXQLW\ µ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


6RPH 681< FDPSXVHV DOUHDG\ KDYH H[SHULHQFH ZRUNLQJ ZLWK 1HZ <RUN 6WDWH DQG ORFDO JRYHUQPHQW DJHQFLHV LQ SHUIRUPLQJ HFRQRPLF DQG ZRUNIRUFH GHYHORSPHQW IXQFWLRQV

1HZ <RUN·V VWDWH HFRQRPLF DQG ZRUNIRUFH GHYHORSPHQW DJHQFLHV DQG LWV SXEOLF XQLYHUVLWLHV KDYH QRW ZRUNHG FORVHO\ WRJHWKHU LQ WKH SDVW LQ FRQWUDVW WR WKH SUDFWLFHV LQ D JURZLQJ QXPEHU RI VWDWHV LL 1RQHWKHOHVV ZH IRXQG LPSRUWDQW H[DPSOHV RI ORFDO OHYHO FROODERUDWLRQ ZKLFK RIIHU XVHIXO PRGHOV DQG H[SHULHQFHV WR EXLOG RQ LI DQG ZKHQ WKH VWDWH FKRRVHV WR VWUHQJWKHQ DQG H[SDQG VXFK UHODWLRQVKLSV &D\XJD &RPPXQLW\ &ROOHJH IRU LQVWDQFH EULQJV WRJHWKHU WKH FROOHJH FRXQW\ DQG WRZQ·V HFRQRPLF GHYHORSPHQW HIIRUWV ZLWKLQ D VLQJOH IDFLOLW\ LQ GRZQWRZQ $XEXUQ WKH 6WDUGXVW (QWUHSUHQHXULDO ,QVWLWXWH &RUQLQJ &RPPXQLW\ &ROOHJH DQG &ROXPELD *UHHQH &RPPXQLW\ &ROOHJH RSHUDWH RQH VWRS FHQWHUV WKDW SURYLGH VWDWH DQG IHGHUDO ZRUNIRUFH GHYHORSPHQW SURJUDPV IRU WKHLU UHVSHFWLYH UHJLRQV 681< &RUWODQG·V 0DLQ 6WUHHW RXWUHDFK IDFLOLW\ KRXVHV HFRQRPLF GHYHORSPHQW SURJUDPV RIIHUHG E\ WKH &LW\ RI &RUWODQG·V 'RZQWRZQ 3DUWQHUVKLS $OOLDQFH $QG 681< SURYLGHV IHGHUDOO\ IXQGHG VHUYLFHV WR HQWHUSULVHV DFURVV WKH VWDWH WKURXJK 6PDOO %XVLQHVV 'HYHORSPHQW &HQWHUV PRVW RI ZKLFK DUH ORFDWHG RQ 681< FDPSXVHV 7KHVH VHUYLFHV KHOS HQWUHSUHQHXUV ZULWH EXVLQHVV DQG PDUNHWLQJ SODQV ÀQG SRWHQWLDO VRXUFHV RI IXQGLQJ DVVHVV WKH YLDELOLW\ RI DQ LQYHQWLRQ SUHSDUH IRU H FRPPHUFH DQG FRPSO\ ZLWK JRYHUQPHQW OLFHQVLQJ DQG UHJXODWRU\ UHTXLUHPHQWV

681< XQLYHUVLW\ FHQWHUV KDYH GHYHORSHG H[WHQVLYH VXSSRUWV IRU HQWUHSUHQHXULDO HIIRUWV WR GUDZ RQ QHZ NQRZOHGJH WR SURGXFH FRPPHUFLDO LQQRYDWLRQV

´8QLYHUVLWLHV DV KXEV RI FUHDWLYLW\ DUH WKH NHHSHUV RI DQ HQGXULQJ FXOWXUH RI LQQRYDWLRQ WKDW LV XQLTXH DPRQJ WKH ZRUOG·V JUHDW LQVWLWXWLRQV µ ZULWH +ROGHQ 7KRUS FKDQFHOORU RI WKH 8QLYHUVLW\ RI 1RUWK &DUROLQD DW &KDSHO +LOO DQG %XFN *ROGVWHLQ XQLYHUVLW\ HQWUHSUHQHXU LQ UHVLGHQFH DW &KDSHO +LOO LLL %XW WR EULQJ WKLV FXOWXUH RI LQQRYDWLRQ WR EHDU RQ WKH VWDWH QDWLRQ DQG ZRUOG·V JUHDW SUREOHPV UHTXLUHV PRUH WKDQ JUHDW UHVHDUFK LW DOVR UHTXLUHV DV 7KRUS DQG *ROGVWHLQ DUJXH HQWUHSUHQHXUVKLS D IRFXVHG SHUVLVWHQW HIIRUW WR DSSO\ QHZ LGHDV WR FRQFUHWH SUREOHPV $V WKLV VWXG\ VKRZV VHYHUDO 681< LQVWLWXWLRQV KDYH GRQH D JUHDW GHDO WR SURYLGH LQVWLWXWLRQDO VXSSRUWV IRU DFDGHPLF HQWUHSUHQHXUVKLS³IRU WUDQVIRUPLQJ QHZ NQRZOHGJH LQWR PDUNHW LQQRYDWLRQV 1HDUO\ DOO XQLYHUVLW\ FHQWHUV DQG VRPH XQLYHUVLW\ FROOHJHV KDYH LQFXEDWRUV WR KRXVH QHZ VWDUW XS FRPSDQLHV ÀQDQFLDO VXSSRUW IRU SDWHQW DQG FRS\ULJKW DSSOLFDWLRQV DQG ODERUDWRULHV RU RIÀ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·V 7HFKQRORJ\ ,QFXEDWRU KDV KRXVHG FRPSDQLHV VLQFH LW ZDV HVWDEOLVKHG LQ ZLWK PRUH WKDQ WZR RXW RI WKUHH JUDGXDWLQJ DQG JHQHUDWLQJ DERXW MREV DPRQJ WKHP 6WRQ\ %URRN EXLOGV RQ /RQJ ,VODQG·V OHDGHUVKLS UROH LQ WKH FRPPXQLFDWLRQV LQGXVWU\ LQ LWV &HQWHU IRU ([FHOOHQFH LQ :LUHOHVV DQG ,QIRUPDWLRQ 7HFKQRORJ\ ,W DOVR RIIHUV VHYHUDO RWKHU VXSSRUWV IRU KLJK WHFK HQWUHSUHQHXUVKLS WKURXJK LWV LQFXEDWRUV VXFK DV WKH /RQJ ,VODQG +LJK 7HFKQRORJ\ ,QFXEDWRU DQG LWV WHFKQRORJ\ DVVLVWDQFH

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


&RQFOXVLRQV

3HWHU 'UXFNHU RQ HQWUHSUHQHXUVKLS

´(QWUHSUHQHXUVKLS « LV QRW D SHUVRQDOLW\ WUDLW LQ WKLUW\ \HDUV , KDYH VHHQ SHRSOH RI WKH PRVW GLYHUVH SHUVRQDOLWLHV DQG WHPSHUDPHQWV SHUIRUP ZHOO LQ HQWUHSUHQHXULDO FKDOOHQJHV 7R EH VXUH SHRSOH ZKR QHHG FHUWDLQW\ DUH XQOLNHO\ WR PDNH JRRG HQWUHSUHQHXUV « %XW HYHU\RQH ZKR FDQ IDFH XS WR GHFLVLRQ PDNLQJ FDQ OHDUQ WR EH DQ HQWUHSUHQHXU DQG WR EHKDYH HQWUHSUHQHXULDOO\ (QWUHSUHQHXUVKLS WKHQ LV EHKDYLRU UDWKHU WKDQ SHUVRQDOLW\ WUDLW $QG LWV IRXQGDWLRQ OLHV LQ FRQFHSW DQG WKHRU\ UDWKHU WKDQ LQ LQWXLWLRQ « ´(QWUHSUHQHXUVKLS LV ¶ULVN\· PDLQO\ EHFDXVH VR IHZ RI WKH VR FDOOHG HQWUHSUHQHXUV NQRZ ZKDW WKH\ DUH GRLQJ 7KH\ ODFN WKH PHWKRGRORJ\ « +LJK WHFK HQWUHSUHQHXUVKLS QHHG QRW EH ¶KLJK ULVN· « ,W GRHV QHHG KRZHYHU WR EH V\VWHPDWLF ,W QHHGV WR EH PDQDJHG $ERYH DOO LW QHHGV WR EH EDVHG RQ SXUSRVHIXO LQQRYDWLRQ µ ² ,QQRYDWLRQ DQG (QWUHSUHQHXUVKLS

RIIHULQJV IRU LQVWDQFH LWV 6WUDWHJLF 3DUWQHUVKLS IRU ,QGXVWULDO 5HVXUJHQFH ³DOO DV SDUW RI LWV ´FUDGOH WR )RUWXQH µ DSSURDFK WR VXSSRUWLQJ EXVLQHVVHV DW DQ\ VWDJH RI WKHLU GHYHORSPHQW %LQJKDPWRQ GUDZV RQ LWV KLVWRULFDO FRQQHFWLRQ ZLWK WKH HOHFWURQLFV LQGXVWU\ LQ RSHUDWLQJ WKH 6PDOO 6FDOH 6\VWHPV ,QWHJUDWLRQ DQG 3DFNDJLQJ &HQWHU ZKLFK IRFXVHV RQ HOHFWURQLFV UHVHDUFK ZLWK FRPPHUFLDO SRWHQWLDO DQG RIIHUV ODE IDFLOLWLHV DQG KLJK HQG HTXLSPHQW WR D ZLGH DUUD\ RI ÀUPV LQ WKH 6RXWKHUQ 7LHU·V HOHFWURQLFV LQGXVWU\ 2WKHU 681< LQVWLWXWLRQV DOVR VXSSRUW WHFKQRORJ\ WUDQVIHU LQ &HQWUDO 1HZ <RUN IRU LQVWDQFH 8SVWDWH 0HGLFDO 8QLYHUVLW\ DQG WKH &ROOHJH RI (QYLURQPHQWDO 6FLHQFH DQG )RUHVWU\ DUH FUHDWLQJ D QHZ ELRWHFKQRORJ\ UHVHDUFK FHQWHU WR KRXVH FRPSDQLHV VSXQ RII IURP WKHLU UHVHDUFK 7KHVH DQG RWKHU FHQWHUV IDFLOLWLHV DQG SURJUDPV KDYH SURGXFHG PDQ\ SDWHQWV FRPSDQLHV MREV LPSURYHPHQWV LQ SURGXFWV DQG SURFHVVHV DQG RWKHU HFRQRPLF VXFFHVVHV 7KH\ DFFRXQW IRU D ODUJH VKDUH RI 681<·V VXFFHVV ZLWK LQQRYDWLRQV VXFK DV RXU VXUYH\·V WDOO\ RI LQYHQWLRQ GLVFORVXUHV ZLWK SRWHQWLDO FRPPHUFLDO LPSDFW SDWHQWV VSLQ RIIV RI FRPSDQLHV VWDUW XSV RI QHZ FRPSDQLHV DQG VRPH OLFHQVHV WKDW \LHOG UHYHQXH IRU WKH FRPPHUFLDO XVH RI XQLYHUVLW\ GLVFRYHULHV

2SSRUWXQLWLHV IRU VXFFHVVIXO DFDGHPLF HQWUHSUHQHXUVKLS DUH QRW OLPLWHG WR VLWXDWLRQV ZKHUH VXSSRUWLYH IDFLOLWLHV DQG VHUYLFHV DUH DOUHDG\ DYDLODEOH ZKHUH HIIRUWV FDQ GUDZ RQ IDFXOW\ LQ ´WUDQVODWLRQDO GLVFLSOLQHVµ RU HYHQ ZKHUH QHZ LGHDV RU WHFKQRORJLHV H[LVW $FDGHPLF HQWUHSUHQHXUVKLS FDQ HPHUJH DQG VXFFHHG XQGHU PDQ\ FLUFXPVWDQFHV

$OWKRXJK DQDO\VHV VXFK DV WKRVH RI 7KRUSH DQG *ROGVWHLQ VXJJHVW WKDW LQQRYDWLRQ LV PRVW OLNHO\ WR HPHUJH RXW RI ´WUDQVODWLRQDO GLVFLSOLQHV µ VXFK DV HQJLQHHULQJ DQG PHGLFLQH WKLV VWXG\ UHYHDOV WKDW 681<·V PRVW VWULNLQJ HQWUHSUHQHXULDO VXFFHVV VWRU\ FRPHV RXW RI D EDVLF VFLHQFH GHSDUWPHQW OHDGLQJ WR 8$OEDQ\·V HYHQWXDO FUHDWLRQ RI WKH &ROOHJH RI 1DQRVFDOH 6FLHQFH DQG (QJLQHHULQJ &16( 1RU ZDV WKHUH H[WHQVLYH LQVWLWXWLRQDO VXSSRUW LQ WKH EHJLQQLQJ ZKHQ $ODLQ .DOR\HURV D QHZ DVVLVWDQW SURIHVVRU LQ WKH 3K\VLFV 'HSDUWPHQW XVHG ERUURZHG RU GRQDWHG ROG SDUWV WR VWDUW EXLOGLQJ D GHYLFH WR ZRUN ZLWK DQG DVVHVV FKLS PDNLQJ PDWHULDOV LQ D VXSHU FOHDQ YDFXXP HQYLURQPHQW ,Q IDFW LW LV QRW HYHQ QHFHVVDU\ WR KDYH D QHZ LGHD RU WHFKQRORJ\ WR EH D VXFFHVVIXO HQWUHSUHQHXU 681< )UHGRQLD·V QHZ %XVLQHVV 7HFKQRORJ\ ,QFXEDWRU KRXVHV EXVLQHVVHV WKDW ZDQWHG D UHODWLRQVKLS ZLWK WKH FROOHJH DQG LWV FUHDWLYH LQWHUQV LWV ODERUDWRULHV DQG WKH RSSRUWXQLW\ WR QHWZRUN ZLWK RWKHU KLJK WHFK VWDUW XSV ,Q WKH FDVH RI 681< 'RZQVWDWH 0HGLFDO &HQWHU WKH VHHG IRU LWV %LRWHFK ,QLWLDWLYH ZDV ODUJHO\ WKH UHFRJQLWLRQ E\ (YD &UDPHU DQG KHU FROOHDJXHV RI WZR FRPSDWLEOH DQG FRPSHOOLQJ QHHGV WKH GHPDQG IRU DIIRUGDEOH VSDFH DPRQJ ORFDO ELRWHFK VWDUW XSV DQG PDWXULQJ ÀUPV DQG DQ LQWHUHVW DPRQJ IDFXOW\ DQG VWXGHQWV LQ ZRUNLQJ ZLWK VXFK FRPSDQLHV 7KH VSDFH ZDV QRW DW ÀUVW DYDLODEOH %XW OHDGHUVKLS DW 'RZQVWDWH DQG DPRQJ %URRNO\Q PHPEHUV RI WKH VWDWH /HJLVODWXUH OHG WR WKH FUHDWLRQ RI D UHVHDUFK SURMHFW IXQGHG E\ WKH VWDWH DQG 1HZ <RUN &LW\ 3ULYDWH VHFWRU OHDVLQJ DQG GHYHORSPHQW IROORZHG TXLFNO\ ZKLFK WKHQ OHG WR WKH FRQVWUXFWLRQ RI D ODUJH ODERUDWRU\ 7KLV KHOSHG GUDZ DGGLWLRQDO VXSSRUW IURP 1HZ <RUN 6WDWH 1HZ <RUN &LW\ DQG WKH IHGHUDO JRYHUQPHQW WR FUHDWH DQ LQFXEDWRU DQG VSDFH IRU H[SDQGLQJ ÀUPV LQ WKH UHIXUELVKHG %URRNO\Q $UP\ 7HUPLQDO

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


%XLOGLQJ RQ LQQRYDWLRQV DQG WKHLU HIIHFWV LQ VXFFHVVLYH VWHSV FDQ SURGXFH YHU\ ODUJH HFRQRPLF LPSDFWV 7KLV SURFHVV RI ´LQQRYDWLYH S LQFUHPHQWDOLVPµ PD\ EH XVHG E\ HQWUHSUHQHXUV WR UHDFK D WLSSLQJ SRLQW EH\RQG ZKLFK D YLEUDQW DQG VXVWDLQDEOH HFRORJ\ RI RUJDQL]DWLRQV DQG SHRSOH JHQHUDWHV QHZ DFWLYLWLHV DQG LQQRYDWLRQV RQ WKHLU RZQ 7KLV SURFHVV KLJKOLJKWV WKH XWLOLW\ RI SHUVLVWHQFH DQG IRFXV DPRQJ DFDGHPLF HQWUHSUHQHXUV

$V ERWK WKH 'RZQVWDWH 0HGLFDO &HQWHU DQG &16( H[SHULHQFHV LOOXVWUDWH D SURFHVV RI LQQRYDWLYH LQFUHPHQWDOLVP ³ WKH ´VWUDWHJLF GHFLVLRQ WR PRYH IRUZDUG LQ VWDJHV DV TXLFNO\ DV IXQGLQJ DQG GHPDQG DOORZHGµ ³ SHUPLWV SURMHFWV WR VKRZ SURJUHVV WR SRWHQWLDO IXQGHUV DQG FOLHQWV DQG DYRLG RYHU H[WHQVLRQ DQG GHEW 7R SURGXFH WKLV VXVWDLQHG DQG FXPXODWLYH SURFHVV DQ HVVHQWLDO LQJUHGLHQW ZDV D ´QXFOHXV RI FRPPLWWHG SHUVLVWHQW SHRSOHµ ZKR ´ZRUNHG ZLWKLQ DQ RUJDQL]DWLRQDO FXOWXUH WKDW HQFRXUDJHG DQG YDOXHG HQWUHSUHQHXUVKLS µ 1HZ DFWLYLWLHV DQG RUJDQL]DWLRQV ZHUH EURXJKW LQWR WKH IROG DQG QHZ IDFLOLWLHV ZHUH EXLOW ZKLFK LQ WXUQ FUHDWHG D QHZ HFRORJ\ RI RUJDQL]DWLRQV IDFLOLWLHV SURMHFWV DQG SHRSOH 7KLV RXWFRPH WKHQ RIIHUHG DGGLWLRQDO RSSRUWXQLWLHV WR EULQJ RWKHU DFWLYLWLHV DQG RUJDQL]DWLRQV RQ ERDUG MXVW DV .DOR\HURV DQG KLV FROOHDJXHV XVHG WKHLU VXFFHVV LQ EXLOGLQJ QHZ LQIUDVWUXFWXUH WR VHHN DGGLWLRQDO SDUWQHUV DFURVV WKH 8QLWHG 6WDWHV DQG DURXQG WKH ZRUOG 0RUH UHFHQWO\ $OEDQ\ 1DQR LV ZRUNLQJ WR FUHDWH D UHJLRQDO ´FOXVWHUµ RI EXVLQHVVHV FRQQHFWHG WR DOWHUQDWLYH HQHUJ\ RXWVLGH WKH VPDOO LQFXEDWRU LW QRZ KDV 'RZQVWDWH DOVR EXLOW XS DQ DUUD\ RI RUJDQL]DWLRQV VWHS E\ VWHS XQWLO LW JUHZ WR ÀOO QRW RQO\ DQ HQRUPRXV VSDFH EXW DOVR HVWDEOLVKHG UHODWLRQVKLSV DQG LQWHUGHSHQGHQFLHV WKDW KHOSHG NQLW WKH FRPPXQLW\ WRJHWKHU 7KLV LQFUHPHQWDOLVP PD\ RIWHQ EH D QHFHVVLW\ DW ÀUVW EXW LW LV DOVR QRW D EDG VWUDWHJ\ RYHUDOO $V 3HWHU 'UXFNHU QRWHV ´HYHQ KLJK WHFK HQWUHSUHQHXUVKLS QHHG QRW EH ¶KLJK ULVN ·µLY ,QFUHPHQWDOLVP PD\ EH D ÀQH ZD\ WR PDQDJH ULVN ³ RI GHDOLQJ ZLWK WKH HQRUPRXV XQFHUWDLQWLHV UHJDUGLQJ DQ\ HIIRUW WR SURGXFH ELJ FKDQJH E\ OHWWLQJ H[SHULHQFH UHYHDO ZHDNQHVVHV DQG VWUHQJWKV DQG E\ DVVHPEOLQJ D FRPPXQLW\ WKDW WKHQ PLJKW UHDFK D WLSSLQJ SRLQW ZKHUH LW EHJLQV WR EH DQ DWWUDFWLRQ WR RWKHU HQWHUSULVHV DQG HQWUHSUHQHXULDO HIIRUWV RQ LWV RZQ $V .DOR\HURV QRWHG LW ZDV OLNH UHFUXLWLQJ EXVLQHVVHV IRU D VKRSSLQJ PDOO RQFH KH DQG KLV FROOHDJXHV JRW VRPH DQFKRU WHQDQWV WKH VPDOOHU RQHV FDPH DORQJ $QG DV (YD &UDPHU RI 'RZQVWDWH REVHUYHG WKH DGGLWLRQ RI WKH ,QWHUQDWLRQDO $,'6 9DFFLQH ,QLWLDWLYH DQG LWV ODE WR WKH %URRNO\Q $UP\ 7HUPLQDO ´ZDV OLNH KDYLQJ D PRGHO KRPH LQ D QHZ GHYHORSPHQWµ ³ LW ZDV DQ H[DPSOH WKDW ´UHDOO\ VKRZHG WKH LGHD RI ZKDW FDQ EH GRQHµ WR RWKHU SRWHQWLDO WHQDQWV 7KLV G\QDPLF DOVR VXJJHVWV WKDW WKH ODUJHVW HFRQRPLF SD\RIIV PD\ DFFUXH ZKHQ WKH PRVW VXFFHVVIXO HFRQRPLF GHYHORSPHQW HIIRUWV DUH GLVFHUQHG DQG IROORZHG XS

2QH RI 681<·V VWUHQJWKV LV LWV FDSDFLW\ IRU MRLQW SURMHFWV DFURVV FDPSXVHV 6XFK FROODERUDWLRQV FDQ PXOWLSO\ WKH UHVRXUFHV EURXJKW WR EHDU RQ HFRQRPLF GHYHORSPHQW HIIRUWV

681<·V FDPSXVHV QHHG QRW DFW DORQH DQG PDQ\ WLPHV WKH\ GRQ·W 7KH VWXG\ XQFRYHUHG QXPHURXV LQVWDQFHV RI FRRSHUDWLYH YHQWXUHV DFURVV VHYHUDO FDPSXVHV 2QH H[DPSOH LV WKH UHFHQWO\ DQQRXQFHG GXDO GHJUHH SURJUDP LQ PHGLFLQH DQG QDQRVFDOH VFLHQFH DQG HQJLQHHULQJ MRLQWO\ RIIHUHG E\ 'RZQVWDWH DQG 8$OEDQ\ $QRWKHU LV WKH 6WUDWHJLF 3DUWQHUVKLS IRU ,QGXVWULDO 5HVXUJHQFH ZKLFK OLQNV XQLYHUVLW\ HQJLQHHUV DW 6WRQ\ %URRN 8% DQG %LQJKDPWRQ ZLWK KLJK WHFK HPSOR\HUV 7KLV VWXG\ DOVR LGHQWLÀHG FRRSHUDWLRQ DPRQJ VL[ FRPPXQLW\ FROOHJHV LQ WKH +XGVRQ 9DOOH\ UHJLRQ LQ WKHLU FUHDWLRQ RI WKH &OHDQ (QHUJ\ 7HFKQRORJ\ 7UDLQLQJ &RQVRUWLXP D SDUWQHUVKLS EHWZHHQ WKH 8SVWDWH 0HGLFDO 8QLYHUVLW\ DQG WKH &ROOHJH RI (QYLURQPHQWDO 6FLHQFH DQG )RUHVWU\ LQ EXLOGLQJ WKH %LRWHFKQRORJ\

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


Conclusions

Research Center in Syracuse; and coordination between Tompkins Cortland Community College and SUNY Delhi around workforce development and business assistance programs in the Southern Tier. While many individual campuses may be limited in their capacity to link faculty, curricula, businesses and students, SUNY’s great variety of institutions offers entrepreneurs rich opportunities to make connections, achieve economies of scale and create the kind of multidisciplinary teams that some analysts argue are critical for innovation.v

9

Another great strength of SUNY is the pluralism and diversity of its campuses. The 64-campus system offers many independent, potential sources of initiative, and the diversity of campuses and their specializations means that a wide range of economic needs may be recognized and addressed. In sum, opportunities for innovation, entrepreneurship and economic leadership are widespread in the SUNY system — and can be exploited more fully.

Although SUNY campuses need not act alone, another strength of the system is the fact that they can. The large number of campuses means that SUNY offers many potential sources of economic responsiveness and leadership. If one campus does not see and act on an opportunity, another campus may do so, perhaps because the latter’s specializations, educational mission and local circumstances make it more sensitive to certain economic needs or solutions. This diversity of perspective, when joined with the large number of campuses, may be one of SUNY’s greatest assets in promoting growth. Suffolk County Community College, for instance, saw a shortage of nurses on Long Island and partnered with a local hospital to devise an innovative program that offers prospective nursing students multi-year contracts with assured jobs after graduation. SUNY Plattsburgh helped meet the acute need in the North Country to link widely dispersed health facilities by organizing and managing a fiber optic network among providers. And Stony Brook, with help from New York State, established the Center of Excellence in Wireless and Information Technology, in partial response to Long Island’s growing role in the communications industry. A rich variety of such responses may emerge out of a pluralistic system of semi-autonomous campuses, each of which is receptive to different economic opportunities. Some raise the question, “Where will New York State find the next Nano?” But that’s probably the wrong question — or at least one that probably will not be answered until it’s too late, that is, until someone else answers it through their actions. The real question is whether SUNY can find, nurture, develop and unleash the next dozen or two dozen or 200 faculty entrepreneurs; and give those who have some initial success the opportunity to pyramid those into much larger agglomerations of mutually strengthening academic and commercial activities. There is little likelihood that some think tank or planner in state government — or even administrator within a university — could predict which efforts will succeed or fail, much less the magnitude of growth. Perhaps the clearest lesson is to create a context in which such risky efforts are feasible and follow-ups are encouraged. “It’s a struggle to be entrepreneurial,” says Kaloyeros. “Getting the culture right is difficult — the people, the leadership, the accountability, the willingness to take some risk… Part of changing the culture is realizing that our target is not tenure — our target is being successful. Remember our job is to educate, and innovate. If we do that, economic development will follow.”

116

Economic Impacts of the State University of New York | June 2011


7KHUH PD\ QRW EH DQRWKHU KRPH UXQ RQ WKH VFDOH RI $OEDQ\ 1DQR %XW RXW RI D WRWDO 681< IDFXOW\ RI VRPH LW ZRXOG WDNH RQO\ RQH RXW RI HYHU\ WKRXVDQG IDFXOW\ PHPEHUV HDFK EXLOGLQJ D VXFFHVV VWRU\ RQH WHQWK WKH VL]H RI 1DQR WR HTXDO WKUHH WLPHV LWV LPSDFW 6WXGHQWV RI HQWUHSUHQHXUVKLS JHQHUDOO\ ³ DQG HVSHFLDOO\ RI LWV SUDFWLFH RQ XQLYHUVLW\ FDPSXVHV ³ VD\ HQWUHSUHQHXULDO VXFFHVVHV ODUJH DQG VPDOO DUH WKLQJV WKDW KLJKHU HGXFDWLRQ V\VWHPV FDQ FRQVFLRXVO\ HQFRXUDJH WHDFK DQG JURZ $V 7KRUS DQG *ROGVWHLQ QRWH WKH 8QLYHUVLW\ RI 1RUWK &DUROLQD·V EXUJHRQLQJ HQWUHSUHQHXUVKLS SURJUDP KDV GHPRQVWUDWHG ´WKDW DOO NLQGV RI SHRSOH FDQ EH WDXJKW WR WKLQN OLNH HQWUHSUHQHXUV « 7KH IXQGDPHQWDO HQWUHSUHQHXULDO PLQGVHW DQG WKH WHFKQLTXHV WKDW JR ZLWK LW DUH WKH VDPH QR PDWWHU ZKDW \RXU LQWHUHVWV GUHDPV DQG YDOXHV KDSSHQ WR EH µ ´,I HQWUHSUHQHXULDO WKLQNLQJ FDQ EH LQWURGXFHG DQG LQWHJUDWHG LQWR WKH GLDORJXH RI WKH FDPSXVHV RI RXU JUHDW XQLYHUVLWLHV µ 7KRUS DQG *ROGVWHLQ FRQWLQXH ´WKHVH LQVWLWXWLRQV FDQ HPHUJH DV WUXH HQJLQHV RI LQQRYDWLRQ ³ MXVW ZKDW VRFLHW\ H[SHFWV RI WKHP µYL

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


(QGQRWHV

(QGQRWHV $ERXW WKLV 5HSRUW L

&RPSDUDWLYH MRE JURZWK GDWD DUH IURP WKH 8 6 %XUHDX RI /DERU 6WDWLVWLFV HVWDEOLVKPHQW GDWD VXUYH\ WRWDO QRQ IDUP HPSOR\PHQW VHDVRQDOO\ DGMXVWHG KWWS GDWD EOV JRY FJL ELQ VXUYH\PRVW"FH DQG KWWS GDWD EOV JRY SGT TXHU\WRRO MVS"VXUYH\ VP 3RSXODWLRQ GDWD DUH IURP WKH 8 6 &HQVXV %XUHDX KWWS ZZZ FHQVXV JRY SURG FHQ EULHIV F EU SGI ,QFRPH DQG ZDJH GDWD DUH IURP WKH 8 6 %XUHDX RI (FRQRPLF $QDO\VLV KWWS ZZZ EHD JRY UHJLRQDO

0DQDJHPHQW &RUSRUDWLRQ 7KH 5HVHDUFK )RXQGDWLRQ RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN 8VH RI 6WDWH )XQGLQJ IRU 5HVHDUFK LQWR (PHUJLQJ 7HFKQRORJLHV DW WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN DW $OEDQ\ 1DQRWHFKQRORJ\ µ UHSRUW 6 $SULO L[

$ODLQ .DOR\HURV ´7KH QDQRWHFKQRORJ\ UHYROXWLRQ LV 1HZ <RUN·V ¶PRRQ VKRW· IRU WKH VW &HQWXU\ µ 6\UDFXVH 3RVW 6WDQGDUG ZZZ V\UDFXVH FRP )HE [

3DXO *URQGDKO ´$ODLQ .DOR\HURV µ $OEDQ\ 7LPHV 8QLRQ 6HSW [L

%XLOGLQJ DQ ,QQRYDWLRQ (FRQRP\ IRU 1HZ <RUN 6WDWH L ´+LJKHU (GXFDWLRQ DQG 5HJLRQV µ 2(&' 2EVHUYHU 6HSWHPEHU LL

(GZDUG / *ODHVHU DQG $OEHUW 6DL] ´7KH 5LVH RI WKH 6NLOOHG &LW\µ 'LVFXVVLRQ 3DSHU 1R +DUYDUG ,QVWLWXWH RI (FRQRPLF 5HVHDUFK

´$ %LRWHFK 3DUN *URZV LQ %URRNO\Q µ 3URÀOHV LQ ,QQRYDWLRQ 5HVHDUFK 'RZQVWDWH [LL

KWWS ZZZ GRZQVWDWH HGX QHZVB UHOHDVHV QHZVBUHOHDVHBIXOO KWPO [LLL

&16( DQG 681< 'RZQVWDWH 0HGLFDO &HQWHU 3DUWQHU WR /DXQFK )LUVW (YHU 0' 3K' 3URJUDP &16( SUHVV UHOHDVH SRVWHG 0DUFK

LLL

8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH ´,QQRYDWLRQ ,PSDFW $Q ,PSDFW $QDO\VLV RI 8QLYHUVLW\ LQGXVWU\ ,QQRYDWLRQ µ 2FW

LY

0DWW *O\QQ ´0DQXIDFWXULQJ D WXUQDURXQG +HEHOHU &RUS ZHQW IURP ¶ZRUVW YHQGRU· WR ZLQQLQJ DZDUGV µ 7KH %XIIDOR 1HZV -XO\ Y

´8$OEDQ\ QDQRWHFK H[SHUW GLVFXVVHV FRQFHUQV IRU WKH IXWXUH µ ZZZ \QQ FRP -DQ YL

0DU\ )LHVV ´3URÀOH $ODLQ .DOR\HURV µ 5HVHDUFKHU )DOO 8QLYHUVLW\ DW $OEDQ\ YLL

)LHVV ´%XLOGLQJ D %HWWHU &RPSXWHU &KLS µ $OEDQ\ PDJD]LQH 6SULQJ 8QLYHUVLW\ DW $OEDQ\

YLLL

2IÀFH RI WKH 1HZ <RUN 6WDWH &RPSWUROOHU ´)XOOHU 5RDG

$Q (FRQRPLF )RUFH LQ ,WV 2ZQ 5LJKW L

)LJXUH UHÁHFWV ´FDSWXUH UDWH µ RU SHUFHQWDJH RI 1HZ <RUN 6WDWH KLJK VFKRRO JUDGXDWHV HQUROOLQJ LQ D 681< LQVWLWXWLRQ LQ )URP ´681< )DVW )DFWV µ KWWS ZZZ VXQ\ HGX $ERXWBVXQ\ IDVWIDFWV LQGH[ FIP LL

8 6 'HSW RI (GXFDWLRQ ,3('6 SURYLGHV VWXGHQW HQUROOPHQW E\ UDFH HWKQLFLW\ DQG DJH 6WXGHQWV IURP ORZ LQFRPH =,3 FRGHV DUH IURP VWXGHQW =,3 FRGHV IURP 681< $GPLQLVWUDWLRQ DQG SRYHUW\ GDWD E\ =,3 FRGH IURP $PHULFDQ &RPPXQLW\ 6XUYH\ 6HH ´'LYHUVLW\ RI 681< 6WXGHQWVµ LQ 'DWD 1RWHV IRU PRUH LQIRUPDWLRQ

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH

&RQFOXVLRQV L

-RKQ - 6LHJIULHG $OOHQ 5 6DQGHUVRQ DQG 3HWHU 0F+HQU\ ´7KH (FRQRPLF ,PSDFW RI &ROOHJHV DQG 8QLYHUVLWLHV µ :RUNLQJ 3DSHU 1R : 1DVKYLOOH 71 'HSDUWPHQW RI (FRQRPLFV 9DQGHUELOW 8QLYHUVLW\ LL 'DYLG ) 6KDIIHU DQG 'DYLG - :ULJKW $ 1HZ 3DUDGLJP IRU (FRQRPLF 'HYHORSPHQW $OEDQ\ 1 < 5RFNHIHOOHU ,QVWLWXWH SS LLL

7KRUS DQG *ROGVWHLQ (QJLQHV RI ,QQRYDWLRQ 7KH (QWUHSUHQHXULDO 8QLYHUVLW\ LQ WKH 7ZHQW\ )LUVW &HQWXU\ 7KH 8QLYHUVLW\ RI 1RUWK &DUROLQD 3UHVV &KDSHO +LOO S

LY

3HWHU ) 'UXFNHU ,QQRYDWLRQ DQG (QWUHSUHQHXUVKLS 1HZ <RUN +DUSHU S Y 7KRUS DQG *ROGVWHLQ (QJLQHV SS YL

7KRUS DQG *ROGVWHLQ (QJLQHV


'DWD 1RWHV

$OXPQL 'DWD 6RXUFH DQG 6FRSH 'XULQJ 681< LQVWLWXWLRQV SURYLGHG IRU HDFK OLYLQJ DOXPQXV RQ UHFRUG WKHLU =,3 FRGH DQG WKH À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

'DWD 1RWHV

:RUNIRUFH &DSDFLW\ 7R GHWHUPLQH SRWHQWLDO ZRUNIRUFH FDSDFLWLHV RIIHUHG E\ 681< DOXPQL VWLOO UHVLGLQJ LQ WKH VWDWH D JHQHUDO GHJUHH RFFXSDWLRQ W\SRORJ\ ZDV FUHDWHG WKDW LQFRUSRUDWHV H[LVWLQJ RFFXSDWLRQDO FODVVLÀFDWLRQV DQG WKH PL[ RI GHJUHHV HDUQHG E\ 681< DOXPQL (DFK 681< DOXPQXV HQWU\ ZDV FRGHG EDVHG RQ WKH PDMRU VWXG\ RI GHJUHH HDUQHG DQG PDWFKHG WR D UHVSHFWLYH FDWHJRU\ &HUWDLQ OLEHUDO DUWV DQG RWKHU GHJUHHV ZKLOH EURDGO\ XVHIXO GR QRW VSHFLÀFDOO\ SUHSDUH JUDGXDWHV IRU D SDUWLFXODU OLQH RI ZRUN DQG ZHUH H[FOXGHG IURP WKLV DQDO\VLV %HFDXVH GHJUHHV IURP -DPHVWRZQ &RPPXQLW\ &ROOHJH DQG 1LDJDUD &RPPXQLW\ &ROOHJH ZHUH XQDYDLODEOH HVWLPDWHV ZHUH JHQHUDWHG EDVHG RQ WKH GLVWULEXWLRQ RI GHJUHHV DW RWKHU VFKRROV 'HJUHHV IURP WKH )DVKLRQ ,QVWLWXWH RI 7HFKQRORJ\ VRPH RI ZKLFK ZHUH XQDYDLODEOH ZHUH FRGHG XQGHU WKH FDWHJRU\ ¶$UW·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ÀQHG E\ WKH %XUHDX RI /DERU 6WDWLVWLFV DV UHTXLULQJ YRFDWLRQDO WUDLQLQJ RU DQ DVVRFLDWH·V GHJUHH RU KLJKHU $OVR LQFOXGHG DUH D SHUFHQWDJH RI WKH MREV WKDW UHTXLUH PRGHUDWH WHUP RU ORQJ WHUP RQ WKH MRE WUDLQLQJ FRUUHVSRQGLQJ WR WKH SURSRUWLRQ RI GHJUHH KROGHUV ÀOOLQJ WKHVH MREV DFURVV WKH QDWLRQ

&OXVWHU ,QGXVWULHV RI 1HZ <RUN 6WDWH 6RXUFH DQG 6FRSH ,Q FRQMXQFWLRQ ZLWK WKH 1HZ <RUN 6WDWH 'HSDUWPHQW RI /DERU 1HZ <RUN 6WDWH (PSLUH 6WDWH 'HYHORSPHQW KDV LGHQWLÀHG LQGXVWU\ FOXVWHUV LPSRUWDQW WR WKH VWDWH·V HFRQRP\ IRU WKH FRQWULEXWLRQV WKH\ PDNH WR WRWDO HPSOR\PHQW HPSOR\PHQW FRQFHQWUDWLRQ ZDJHV DQG WKH JHQHUDWLRQ RI JRRGV DQG VHUYLFHV WKDW FDQ EH H[SRUWHG RXWVLGH 1HZ <RUN 6WDWH WR FUHDWH LQFRPH DQG ZHDOWK 7KHVH LQGXVWULHV DUH %DFN 2IÀFH 2XWVRXUFLQJ %LRPHGLFDO &RPPXQLFDWLRQV 6RIWZDUH 0HGLD 6HUYLFHV 'LVWULEXWLRQ (OHFWURQLFV ,PDJLQJ )DVKLRQ $SSDUHO 7H[WLOHV )LQDQFLDO 6HUYLFHV )RRG 3URFHVVLQJ )RUHVW 3URGXFWV )URQW 2IÀFH 3URGXFHU 6HUYLFHV ,QGXVWULDO 0DFKLQHU\ 6HUYLFHV ,QIRUPDWLRQ 7HFKQRORJ\ 6HUYLFHV 0DWHULDOV 3URFHVVLQJ 0LVFHOODQHRXV 0DQXIDFWXULQJ 7UDQVSRUWDWLRQ (TXLSPHQW DQG 7UDYHO 7RXULVP 7KHVH FOXVWHUV UHSUHVHQW RYHU LQGXVWULHV ZLWK HDFK FOXVWHU GHÀQHG E\ (PSLUH 6WDWH 'HYHORSPHQW WR LQFOXGH VSHFLÀF LQGXVWULHV DW WKH VL[ GLJLW 1RUWK $PHULFDQ ,QGXVWU\ &ODVVLÀFDWLRQ 6\VWHP 1$,&6 FRGH RU SRUWLRQV RI LQGXVWULHV

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


'DWD 1RWHV

5HJLRQDO 6SHFLDOL]DWLRQ $QDO\VLV 7R GHWHUPLQH WKH QXPEHU RI FOXVWHU UHODWHG GHJUHHV 681< VFKRROV DUH SURGXFLQJ D 1$,&6 WR 6WDQGDUG 2FFXSDWLRQDO &ODVVLÀFDWLRQ 62& FURVVZDON PDWFKHG WKH LQGXVWULHV DVVRFLDWHG ZLWK WKH FOXVWHUV WR MRE WLWOHV FRPPRQ WR WKRVH LQGXVWULHV )RU SXUSRVHV RI WKLV DQDO\VLV WKH VL[ PDQXIDFWXULQJ DQG PDWHULDOV SURFHVVLQJ FOXVWHUV )RRG 3URFHVVLQJ )RUHVW 3URGXFWV 0DWHULDOV 3URFHVVLQJ ,QGXVWULDO 0DFKLQHU\ 7UDQVSRUWDWLRQ DQG (TXLSPHQW DQG 0LVFHOODQHRXV 0DQXIDFWXULQJ ZHUH FRPELQHG LQWR RQH $IWHU PDWFKLQJ FOXVWHU UHODWHG 1$,&6 FRGHV WR UHODWHG RFFXSDWLRQDO 62& FRGHV WKH UHVXOWLQJ OLVW RI MRE WLWOHV ZDV ÀOWHUHG IRU WKRVH UHTXLULQJ D FROOHJH GHJUHH DQG DFFRXQWLQJ IRU DW OHDVW SHUFHQW RI WKDW LQGXVWU\·V HPSOR\PHQW WKHUHE\ LVRODWLQJ GHJUHH UHTXLULQJ MREV WKDW DUH VRPHZKDW XQLTXH WR WKH LQGXVWU\ YHUVXV DOO MREV SUHVHQW LQ DQ LQGXVWU\ $ 62& WR &,3 &ODVVLÀFDWLRQ RI ,QVWUXFWLRQDO 3URJUDPV FURVVZDON WKHQ PDWFKHG GHJUHH UHTXLULQJ MRE WLWOHV E\ FOXVWHU WR ÀHOGV RI VWXG\ DQG GHJUHH SURJUDPV 7KLV ZDV XVHG WR FDOFXODWH D EDVHOLQH QXPEHU RI GHJUHHV SURGXFHG E\ FOXVWHU E\ ERWK 681< VFKRROV DQG DOO FROOHJHV DQG XQLYHUVLWLHV DFURVV WKH VWDWH DQG IRU HDFK RI WKH UHJLRQV LQ )RU VHYHUDO FOXVWHUV 'LVWULEXWLRQ 7UDYHO 7RXULVP )DVKLRQ DQG D FRPELQHG 0DQXIDFWXULQJ 0DWHULDOV 3URFHVVLQJ WKLV FURVVZDON PHWKRGRORJ\ ZDV H[SDQGHG WR LQFRUSRUDWH ÀHOGV RI VWXG\ DQG GHJUHHV VTXDUHO\ UHODWHG WR RQH RI WKH FOXVWHUV EXW QRW SLFNHG XS E\ WKH FURVVZDON PHWKRGRORJ\ $ UHJLRQDO FOXVWHU LQGXVWU\ VSHFLDOL]DWLRQ ZDV FDOFXODWHG DV EHLQJ SUHVHQW LI 681< SURGXFHG D SHUFHQWDJH RI GHJUHHV IRU D FOXVWHU WKDW ZDV JUHDWHU WKDQ 681<·V SHUFHQW RYHUDOO SHUFHQWDJH RI WRWDO GHJUHHV SURGXFHG DFURVV DOO RI KLJKHU HGXFDWLRQ LQ 1HZ <RUN 6WDWH

'HÀQLQJ 681< )RU SXUSRVHV RI WKLV VWXG\ 681< LV GHÀQHG DV WKH RSHUDWLRQV DQG HPSOR\PHQW DVVRFLDWHG ZLWK WKH FDPSXV 681< V\VWHP DQG LWV DGPLQLVWUDWLYH RIÀ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·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ÀQDQFLDO UHODWLRQVKLSV WR DFFXUDWHO\ FDSWXUH GDWD IURP XQLYHUVLW\ IRXQGDWLRQV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


'HPRJUDSKLF +RXVLQJ 'DWD :LWK WKH H[FHSWLRQ RI SRSXODWLRQ FRXQWV IRU ZKLFK HVWLPDWHV DUH DYDLODEOH IURP WKH 8 6 &HQVXV %XUHDX WKH DQDO\VLV XVHG WKH PRVW UHFHQW $PHULFDQ &RPPXQLW\ 6XUYH\ $&6 ÀYH \HDU HVWLPDWHV IURP WKH 8 6 &HQVXV %XUHDX IRU DOO GHPRJUDSKLF DQG KRXVLQJ GDWD

'LYHUVLW\ RI 681< 6WXGHQWV 6RXUFH DQG 6FRSH 'DWD RQ PLQRULW\ DQG QRQ WUDGLWLRQDO VWXGHQWV DUH IURP WKH 1DWLRQDO &HQWHU IRU (GXFDWLRQ 6WDWLVWLFV ,QWHJUDWHG 3RVWVHFRQGDU\ 'DWD 6\VWHP ,3('6 SURYLGLQJ FRXQWV RI DOO VWXGHQWV HQUROOHG GXULQJ IDOO E\ UDFH HWKQLFLW\ DQG DJH FDWHJRU\ 'DWD RQ 681< VWXGHQWV IURP KLJK SRYHUW\ FRPPXQLWLHV FRPH IURP PDWFKLQJ VWXGHQWV· KRPH UHVLGHQWLDO =,3 FRGHV SURYLGHG E\ 681< $GPLQLVWUDWLRQ WR =,3 FRGHV ZLWK FKLOG SRYHUW\ UDWHV LQ H[FHVV RI SHUFHQW DV GHWHUPLQHG IURP DQ DQDO\VLV RI 8 6 &HQVXV GDWD 'HÀQLQJ 0LQRULW\ DQG 1RQ 7UDGLWLRQDO 6WXGHQWV ,Q DVVHVVLQJ WKH SURSRUWLRQ RI 681< VWXGHQWV WKDW UHSUHVHQW UDFLDO DQG RU HWKQLF PLQRULWLHV RQO\ VWXGHQWV HQUROOHG GXULQJ IDOO ZKR LGHQWLÀHG WKHPVHOYHV DV QRQ ZKLWH RU +LVSDQLF ZHUH LQFOXGHG 6WXGHQWV ZKRVH UDFH HWKQLFLW\ ZDV XQNQRZQ ZHUH FRXQWHG DV ZKLWH QRQ +LVSDQLF VWXGHQWV IRU SXUSRVHV RI FDOFXODWLQJ WKH SHUFHQWDJH RI PLQRULW\ VWXGHQWV 7KH SURSRUWLRQ RI QRQ WUDGLWLRQDO VWXGHQWV UHÁ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·V VWDWXWRU\ VFKRROV DW $OIUHG 8QLYHUVLW\ DQG &RUQHOO 8QLYHUVLW\ ZHUH HVWLPDWHG E\ WDNLQJ SHUFHQW DQG SHUFHQW UHVSHFWLYHO\ RI WRWDO VWXGHQW HQUROOPHQW DW WKHVH VFKRROV ,W ZDV DVVXPHG WKDW WKH GHPRJUDSKLFV RI WKLV VXEVHW ZRXOG UHÁHFW WKRVH RI WKH HQWLUH VWXGHQW SRSXODWLRQ DW WKHVH WZR VFKRROV

(FRQRPLF ,PSDFW (FRQRPLF LPSDFWV DUH FDOFXODWHG XVLQJ ,03/$1 ,PSDFW $QDO\VLV IRU 3ODQQLQJ DQ LQSXW RXWSXW PRGHOLQJ V\VWHP WKDW WUDFHV WKH ÁRZ RI VSHQGLQJ LQ VHOHFWHG HFRQRPLF VHFWRUV DFURVV LQWHU UHODWHG LQGXVWULDO VHFWRUV XQWLO WKHVH GROODUV OHDN RXW RI D VWXG\ DUHD $OO RI WKLV VSHQGLQJ DQG UH VSHQGLQJ SURGXFHV GLUHFW LQGLUHFW DQG LQGXFHG HFRQRPLF LPSDFWV 'LUHFW LPSDFWV UHÁHFW WKH LQLWLDO URXQG RI VSHQGLQJ DQG WKH GROODUV WKDW DUH LQMHFWHG LQWR WKH HFRQRP\ WKURXJK VSHQGLQJ E\ 681< IDFXOW\ VWDII VWXGHQWV DQG YLVLWRUV 2QO\ SXUFKDVHV PDGH ZLWKLQ D JLYHQ VWXG\ DUHD FRXQW DV GLUHFW LPSDFWV ZKHQ HFRQRPLF LPSDFWV DUH DVVHVVHG ,QGLUHFW LPSDFWV UHÁHFW VXFFHVVLYH URXQGV RI VSHQGLQJ FDXVHG E\ EXVLQHVVHV EX\LQJ JRRGV DQG VHUYLFHV IURP RQH DQRWKHU GXH WR FKDQJHV LQ GHPDQG IRU WKHLU SURGXFWV DQG VHUYLFHV )RU LQVWDQFH 681<·V GLUHFW H[SHQGLWXUHV RQ SULQWLQJ FUHDWH EXVLQHVV IRU ORFDO SULQWHUV DQG RIÀFH VXSSOLHUV VHOOLQJ FRSLHUV DQG UHODWHG VHUYLFHV %HFDXVH RI WKLV GHPDQG WKHVH FRPSDQLHV SXUFKDVH HYHU\WKLQJ WKH\ QHHG WR PHHW 681<·V SULQWLQJ GHPDQG IURP SDSHU WR SULQWLQJ PDFKLQHV WR LQN

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


'DWD 1RWHV

7KLV JHQHUDWHV GHPDQG IRU RWKHU VXSSRUWLQJ ORFDO EXVLQHVVHV DQG WKH F\FOH FRQWLQXHV ,QGLUHFW LPSDFWV UHÁHFW WKH DFWLYLW\ DVVRFLDWHG ZLWK WKHVH VHFRQG WKLUG DQG IXUWKHU URXQGV RI VSHQGLQJ E\ LQWHUFRQQHFWHG FRPSDQLHV ,QGXFHG LPSDFWV UHSUHVHQW WKH UHFLUFXODWLRQ RI ODERU LQFRPH DVVRFLDWHG ZLWK LPSDFWV RQ HPSOR\PHQW )RU LQVWDQFH FRQWLQXLQJ ZLWK WKH H[DPSOH DERYH WKH SULQWLQJ DQG RIÀFH VXSSO\ FRPSDQLHV WKDW 681< SXUFKDVHV IURP SD\ ZDJHV WR WKHLU HPSOR\HHV ZKR LQ WXUQ VSHQG WKHVH GROODUV RQ KRPHV LQ WKH DUHD PHDOV RXW FORWKHV ERRNV IXUQLWXUH DQG PRUH 7KLV HPSOR\HH SXUFKDVLQJ FUHDWHV GHPDQG LQ VXSSRUWLQJ LQGXVWULHV ZLWK HPSOR\HHV RI WKHLU RZQ WKHUHE\ DGGLQJ WR WKHVH ODERU LQFRPH UHODWHG LPSDFWV ,QGXFHG LPSDFWV UHÁHFW WKH GHPDQG IRU JRRGV DQG VHUYLFHV FUHDWHG E\ WKH HPSOR\HHV LQ DOO LQGXVWULHV WKDW GLUHFWO\ RU LQGLUHFWO\ VXSSRUW 681< 7RWDO HFRQRPLF RXWSXW DQG HPSOR\PHQW LPSDFWV UHÁHFW WKH VXP RI GLUHFW LQGLUHFW DQG LQGXFHG LPSDFWV DVVRFLDWHG ZLWK 681<·V SD\UROO DQG QRQ ZDJH SXUFKDVLQJ DV ZHOO DV RII FDPSXV VSHQGLQJ RI VWXGHQWV DQG YLVLWRUV (FRQRPLF RXWSXW ÀJXUHV DUH LQ GROODUV (PSOR\PHQW LPSDFWV UHSUHVHQW WKH WRWDO QXPEHU RI IXOO DQG SDUW WLPH MREV VXSSRUWHG E\ WKLV OHYHO RI HFRQRPLF DFWLYLW\ JLYHQ ZDJHV DFURVV WKH YDULRXV LQGXVWULHV ZLWKLQ D VWXG\ DUHD 5HJLRQDO &DOFXODWLRQV ,Q FDOFXODWLQJ 681<·V HFRQRPLF LPSDFW IRU WKH UHJLRQV RQO\ VSHQGLQJ E\ WKH VFKRROV IDFXOW\ VWDII VWXGHQWV DQG YLVLWRUV ZLWKLQ WKDW UHJLRQ DUH FRXQWHG DV GLUHFW LPSDFWV DQG PRGHOHG XVLQJ ,03/$1 2XW RI UHJLRQ VSHQGLQJ LV WKHUHIRUH ORVW LQ WKH UHJLRQDO LPSDFW DQDO\VHV EXW FDSWXUHG E\ WKH VWDWHZLGH LPSDFW DQDO\VHV DVVXPLQJ LW ZDV VSHQGLQJ WKDW VWD\HG ZLWKLQ WKH VWDWH )RU WKLV UHDVRQ 681<·V WRWDO VWDWHZLGH LPSDFW LV VRPHZKDW ODUJHU WKDQ LWV LPSDFW DFURVV WKH UHJLRQV 5HWXUQ RQ ,QYHVWPHQW 5HWXUQ RQ LQYHVWPHQW ZDV FDOFXODWHG E\ GLYLGLQJ WKH WRWDO VWDWHZLGH HFRQRPLF RXWSXW DVVRFLDWHG ZLWK 681< UHODWHG VSHQGLQJ E\ WKH VWDWH·V WRWDO VXSSRUW RI 681< YLD DSSURSULDWLRQV JUDQWV DQG FRQWUDFWV

(PSOR\HH /RFDWLRQ 'DWD =,3 FRGH OHYHO GDWD RI ZKHUH 681< HPSOR\HHV UHVLGH FRPH IURP 681< $GPLQLVWUDWLRQ DQG WKH 681< 5HVHDUFK )RXQGDWLRQ IRU ERWK VWDWH DQG 5HVHDUFK )RXQGDWLRQ HPSOR\HHV ZRUNLQJ DW D 681< LQVWLWXWLRQ &RPPXQLW\ FROOHJH GDWD UHÁHFW FRXQWV IURP H[FHSW IRU &OLQWRQ 1DVVDX 2UDQJH 6XIIRON DQG :HVWFKHVWHU ZKHUH WKH PRVW FXUUHQW GDWD ZHUH IURP 6WDWH HPSOR\PHQW =,3 FRGH GDWD IRU DOO UHPDLQLQJ VFKRROV DUH IURP =,3 FRGH GDWD IRU 681< 5HVHDUFK )RXQGDWLRQ HPSOR\HHV UHÁHFW IDOO HPSOR\PHQW

(PSOR\PHQW E\ 681< 6RXUFH DQG 6FRSH (PSOR\HH FRXQWV E\ FDPSXV DQG IRU 681< $GPLQLVWUDWLRQ DUH IURP WKH 1DWLRQDO &HQWHU IRU (GXFDWLRQ 6WDWLVWLF·V ,QWHJUDWHG 3RVWVHFRQGDU\ (GXFDWLRQ 6\VWHP ,3('6 SURYLGLQJ HPSOR\PHQW FRXQWV IRU ERWK IXOO DQG SDUW WLPH HPSOR\HHV DV ZHOO DV HPSOR\PHQW E\ SRVLWLRQ W\SH VXFK DV LQVWUXFWLRQ UHVHDUFK DGPLQLVWUDWLYH SURIHVVLRQDO DQG QRQ SURIHVVLRQDO (PSOR\PHQW FRXQWV DVVRFLDWHG ZLWK 681<·V FRQWUDFW VFKRROV DW $OIUHG 8QLYHUVLW\ DQG &RUQHOO 8QLYHUVLW\ ZHUH SURYLGHG E\ 681< $GPLQLVWUDWLRQ LQ WKH IRUP RI =,3 FRGHV IRU WKHVH HPSOR\HHV

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


681< 5HVHDUFK )RXQGDWLRQ (PSOR\PHQW RI 681< EDVHG IDFXOW\ DQG VWDII HPSOR\HG E\ WKH 681< 5HVHDUFK )RXQGDWLRQ DUH QRW UHSRUWHG E\ ,3('6 DQG ZHUH SURYLGHG VHSDUDWHO\ E\ FDPSXV E\ 681< 5) IRU IDOO 7KLV GDWDVHW LQFOXGHG WKH UHVLGHQWLDO =,3 FRGHV IRU DOO IRXQGDWLRQ HPSOR\HHV DQG WKHLU IXOO RU SDUW WLPH VWDWXV 7RWDO HPSOR\PHQW FRXQWV UHÁHFW IXOO DQG SDUW WLPH VWDWH 681< HPSOR\HHV DV ZHOO DV WKRVH HPSOR\HG E\ 681< 5) GXULQJ IDOO 5HJLRQDO &DOFXODWLRQV (PSOR\PHQW FRXQWV E\ UHJLRQ ZHUH FDOFXODWHG E\ WRWDOLQJ HPSOR\PHQW IRU 681< VFKRROV ORFDWHG LQ WKH UHJLRQ )RU (PSLUH 6WDWH &ROOHJH WRWDO HPSOR\PHQW FRXQWV ZHUH GLVWULEXWHG DFURVV WKH UHJLRQV EDVHG RQ ZKHUH WKHVH HPSOR\HHV OLYH DV GHWHUPLQHG E\ DQ DQDO\VLV RI WKHLU UHVLGHQWLDO =,3 FRGHV SURYLGHG E\ 681< $GPLQLVWUDWLRQ

(PSOR\PHQW /RFDWLRQV LQ 1HZ <RUN 6WDWH /RFDWLRQV RI MREV LQ 1HZ <RUN 6WDWH DUH IURP WKH 8 6 &HQVXV %XUHDX ´2Q WKH 0DSµ SURJUDP ZKLFK SURYLGHV HPSOR\HH ZRUNSODFH ORFDWLRQV EDVHG RQ 8QHPSOR\PHQW ,QVXUDQFH :DJH 5HFRUGV UHSRUWHG E\ HPSOR\HUV :RUNSODFH ORFDWLRQ GDWD ZHUH DFFHVVHG IRU DOO RI 1HZ <RUN 6WDWH DQG DQDO\]HG XVLQJ *HRJUDSKLF ,QIRUPDWLRQ 6\VWHPV VRIWZDUH WR GHWHUPLQH WKH QXPEHU RI MREV LQ JHRJUDSKLF SUR[LPLW\ WR 681< FDPSXVHV

2FFXSDWLRQDO 2SHQLQJV LQ 1HZ <RUN 6WDWH $QQXDO MRE RSHQLQJV LQ 1HZ <RUN 6WDWH DUH IURP WKH 2FFXSDWLRQDO (PSOR\PHQW 6WDWLVWLFV 6XUYH\ DV SXEOLVKHG E\ WKH 1HZ <RUN 6WDWH 'HSDUWPHQW RI /DERU %DVHG RQ SURMHFWLRQV JHQHUDWHG IRU WKH \HDU SHULRG FRYHULQJ DQQXDO RSHQLQJV ZHUH DJJUHJDWHG IRU MREV UHTXLULQJ YRFDWLRQDO WUDLQLQJ RU DQ DVVRFLDWH·V GHJUHH RU KLJKHU DV GHÀQHG E\ WKH %XUHDX RI /DERU 6WDWLVWLFV )RU FRQVLVWHQF\ SXUSRVHV DQDO\VHV XVHG WKH VDPH JHQHUDO GHJUHH RFFXSDWLRQDO W\SRORJ\ HPSOR\HG LQ WKLV UHSRUW·V DOXPQL ZRUNIRUFH FDSDFLW\ DQDO\VLV 'DWD RQ DQQXDO GHJUHHV JUDQWHG E\ 681< DUH IURP WKH 1DWLRQDO &HQWHU IRU (GXFDWLRQ 6WDWLVWLF·V ,QWHJUDWHG 3RVWVHFRQGDU\ (GXFDWLRQ 6\VWHP ,3('6 DQG UHÁHFW GHJUHHV JUDQWHG LQ 'HJUHHV ZHUH FDWHJRUL]HG EDVHG RQ WKHLU UHODWLYH DSSOLFDWLRQ WR FDWHJRULHV HVWDEOLVKHG LQ WKH RFFXSDWLRQDO DQDO\VLV 7KLV VWXG\·V PDWFK RI MRE RSHQLQJV WR 681< GHJUHH W\SHV H[FOXGHV OLEHUDO DUWV GHJUHHV EHFDXVH VXFK GHJUHHV DUH WRR EURDG WR EH PDWFKHG ZLWK D VSHFLÀF RFFXSDWLRQDO ÀHOG ,W VKRXOG EH QRWHG KRZHYHU WKDW OLEHUDO DUWV GHJUHHV TXDOLI\ JUDGXDWHV IRU PDQ\ MREV LQ ZKLFK VSHFLÀF RFFXSDWLRQDO WUDLQLQJ LV QRW DV LPSRUWDQW DV EURDGHU LQWHOOHFWXDO VNLOOV DQG 681< OLEHUDO DUWV JUDGXDWHV ÀOO PDQ\ VXFK MREV HYHU\ \HDU

5HYHQXHV DQG 6SHQGLQJ RI 681< ,QVWLWXWLRQV 6RXUFH DQG 6FRSH 'DWD RQ WKH UHYHQXHV DQG H[SHQGLWXUHV RI 681< VFKRROV DQG 681< $GPLQLVWUDWLRQ FRPH SULPDULO\ IURP WKH 1DWLRQDO &HQWHU IRU (GXFDWLRQ 6WDWLVWLF·V ,QWHJUDWHG 3RVWVHFRQGDU\ (GXFDWLRQ 6\VWHP ,3('6 SURYLGLQJ ERWK UHYHQXHV DQG RWKHU DGGLWLRQV E\ VRXUFH DQG H[SHQVHV DQG RWKHU GHGXFWLRQV E\ FDWHJRU\ IRU ÀVFDO \HDU HQGLQJ LQ 5HYHQXHV DQG H[SHQGLWXUHV E\ UHJLRQ ZHUH FDOFXODWHG E\ WRWDOLQJ WKRVH DVVRFLDWHG ZLWK DOO 681< FROOHJHV DQG XQLYHUVLWLHV ORFDWHG LQ WKDW UHJLRQ %HFDXVH ZDJHV DQG VDODULHV DFFRXQW IRU RYHU KDOI RI 681< VSHQGLQJ UHYHQXHV DQG H[SHQVHV IRU (PSLUH 6WDWH &ROOHJH ZHUH GLVWULEXWHG DFURVV WKH UHJLRQV EDVHG RQ WKH SHUFHQWDJH RI (PSLUH 6WDWH HPSOR\HHV OLYLQJ LQ WKH UHJLRQ

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


'DWD 1RWHV

681< &RQWUDFW 6FKRROV 5HYHQXH DQG H[SHQVHV DVVRFLDWHG ZLWK 681<·V FRQWUDFW VFKRROV DW &RUQHOO 8QLYHUVLW\ ZHUH HVWLPDWHG WR EH SHUFHQW RI &RUQHOO 8QLYHUVLW\·V WRWDOV 7KLV UHSUHVHQWV WKH PLGSRLQW RI D SHUFHQW WR SHUFHQW UDQJH SURYLGHG E\ WKH VHQLRU YLFH SURYRVW DW &RUQHOO 681<·V FRQWUDFW VFKRRO DW $OIUHG 8QLYHUVLW\ ZDV HVWLPDWHG WR FRQWULEXWH WR SHUFHQW RI WRWDO XQLYHUVLW\ H[SHQVHV EDVHG RQ WKH IDFW WKDW WKHVH VWXGHQWV UHSUHVHQW SHUFHQW RI WRWDO VWXGHQWV HQUROOHG DW WKH XQLYHUVLW\ 5HYHQXHV JHQHUDWHG E\ $OIUHG &HUDPLFV ZHUH HVWLPDWHG WR LQFOXGH WKH VWDWH DSSURSULDWLRQ WKH VFKRRO UHFHLYHG LQ DORQJ ZLWK SHUFHQW RI WKH WXLWLRQ DQG RWKHU UHYHQXH VRXUFHV 7KLV SHUFHQWDJH UHÁHFWV WKH WXLWLRQ JHQHUDWHG E\ $OIUHG &HUDPLFV VWXGHQWV ZKR SD\ WXLWLRQ DQG IHHV URXJKO\ SHUFHQW RI ZKDW RWKHU $OIUHG 8QLYHUVLW\ VWXGHQWV SD\ 681< 5HVHDUFK )RXQGDWLRQ 7KH SHUFHQWDJHV RI 681< UHYHQXHV DQG H[SHQGLWXUHV DVVRFLDWHG ZLWK WKH 681< 5HVHDUFK )RXQGDWLRQ ZHUH FDOFXODWHG E\ GLYLGLQJ WRWDO UHYHQXH DQG VSHQGLQJ ÀJXUHV SURYLGHG E\ 681< 5) IRU HDFK FDPSXV E\ WRWDO UHYHQXHV DQG H[SHQGLWXUHV REWDLQHG WKURXJK WKH 1DWLRQDO &HQWHU IRU (GXFDWLRQ 6WDWLVWLFV ZKLFK LQFOXGHG UHYHQXHV DQG H[SHQVHV RI WKH 681< 5) 7KLV ÀJXUH UHÁ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ÀF UHVHDUFK SURMHFWV DQG RU RWKHU W\SHV RI SURJUDPV $V FODVVLÀHG DQG GHÀ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· KRPH UHVLGHQFHV DV SURYLGHG E\ 681< $GPLQLVWUDWLRQ 7KH SHUFHQWDJH RI SULYDWH JUDQWV DQG JLIWV D VFKRRO UHFHLYHV IURP RXW RI VWDWH VRXUFHV LV IURP D VXUYH\ RI 681< VFKRROV FRPSOHWHG LQ HDUO\ ([SHQGLWXUH ([FOXVLRQV 7RWDO LQVWLWXWLRQDO H[SHQVHV UHSRUWHG E\ ,3('6 LQFOXGH GHSUHFLDWLRQ RU WKH DOORFDWLRQ RI WKH FRVW RI D SULRU FDSLWDO LQYHVWPHQW RU DVVHW SXUFKDVH RYHU WKH XVHIXO OLIH RI WKH DVVHW 2Q DYHUDJH GHSUHFLDWLRQ UHSUHVHQWV DERXW SHUFHQW RI 681< VSHQGLQJ %HFDXVH LW UHÁ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

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


681< VSHQGLQJ ZLWKLQ HDFK RI WKH UHJLRQV ZDV VLPLODUO\ GHWHUPLQHG E\ WRWDOLQJ ERWK ZDJH DQG QRQ ZDJH VSHQGLQJ ZLWKLQ WKH UHJLRQ ZKHUH HDFK 681< ZDV ORFDWHG ,Q FDOFXODWLQJ ´LQ UHJLRQµ VSHQGLQJ RQO\ VSHQGLQJ RI WKH 681<V ORFDWHG LQ WKDW UHJLRQ ZDV FDSWXUHG 7KXV VSHQGLQJ E\ 681<V RXWVLGH D KRVW UHJLRQ EXW LQVLGH 1HZ <RUN 6WDWH LV FDSWXUHG LQ VWDWHZLGH VSHQGLQJ WRWDOV EXW LQ QRQH RI WKH UHJLRQDO VSHQGLQJ WRWDOV

6WXGHQW /RFDWLRQ 'DWD 6RXUFH DQG 6FRSH 2YHUDOO VWXGHQW HQUROOPHQW FRXQWV IRU HDFK UHJLRQ DUH IURP 1DWLRQDO &HQWHU IRU (GXFDWLRQ 6WDWLVWLFV ,QWHJUDWHG 3RVWVHFRQGDU\ 'DWD 6\VWHP ,3('6 7KH SURSRUWLRQ RI VWXGHQWV PLJUDWLQJ LQWR 1HZ <RUN 6WDWH WR DWWHQG D 681< VFKRRO IURP ERWK RWKHU VWDWHV LQ WKH 8QLWHG 6WDWHV DQG QDWLRQV DEURDG LV EDVHG RQ ,3('6 GDWD RI RULJLQV RI ÀUVW \HDU VWXGHQWV DQG DSSOLHG WR WRWDO HQUROOPHQW ÀJXUHV /RFDWLRQ RI ZKHUH VWXGHQWV RULJLQDWH IURP ZLWKLQ 1HZ <RUN 6WDWH LV IURP D GDWDEDVH SURYLGHG E\ 681< $GPLQLVWUDWLRQ WKDW LQFOXGHV WKH =,3 FRGH RI HDFK VWXGHQW·V SHUPDQHQW KRPH DGGUHVV ,Q DGGLWLRQ FRXQWV E\ VFKRRO DQG FRXQWU\ RI RULJLQ ZHUH SURYLGHG IRU LQWHUQDWLRQDO VWXGHQWV DQG ZHUH XVHG WR GHWHUPLQH WKH WRS FRXQWULHV IHHGLQJ VWXGHQWV LQWR 681< LQVWLWXWLRQV 7KH QXPEHU RI VWXGHQWV DWWHQGLQJ D 681< SURJUDP DW &RUQHOO 8QLYHUVLW\ RU $OIUHG 8QLYHUVLW\ ZDV JHQHUDWHG IURP WKH GDWD SURYLGHG E\ 681< $GPLQLVWUDWLRQ DQG DSSOLHG WR HQUROOPHQW FRXQWV $VVXPLQJ PRVW VWXGHQWV IURP (PSLUH 6WDWH DWWHQG DQ (PSLUH FDPSXV LQ WKH UHJLRQ LQ ZKLFK WKH\ OLYH HQUROOPHQW ÀJXUHV IRU (PSLUH VWXGHQWV ZHUH GLVWULEXWHG DFURVV WKH UHJLRQV EDVHG RQ VWXGHQW UHVLGHQWLDO ORFDWLRQ

6WXGHQW 6SHQGLQJ 6RXUFH DQG 6FRSH 6WXGHQW VSHQGLQJ FRPHV SULPDULO\ IURP &ROOHJH%RDUG D QRQSURÀW RUJDQL]DWLRQ SURYLGLQJ D UDQJH RI GHWDLOHG LQIRUPDWLRQ LQFOXGLQJ DQQXDO FRVW RI DWWHQGDQFH RQ PRVW FROOHJHV DQG XQLYHUVLWLHV LQ WKH 8QLWHG 6WDWHV ,Q DGGLWLRQ WR WXLWLRQ DQG IHHV WKH FRVWV RI URRP DQG ERDUG ERRNV DQG VXSSOLHV SHUVRQDO H[SHQVHV DQG WUDQVSRUWDWLRQ DUH SURYLGHG RQ D SHU VWXGHQW EDVLV IRU VWXGHQWV OLYLQJ RQ FDPSXV OLYLQJ DW KRPH DQG OLYLQJ RII FDPSXV EXW QRW DW KRPH 7KHVH À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´RII FDPSXVµ HYHQ WKRXJK WKHVH ERRNVWRUHV DUH JHQHUDOO\ ORFDWHG RQ FDPSXV 6WXGHQW VSHQGLQJ RQ RII FDPSXV URRP DQG ERDUG UHÁHFWV D YDULHW\ RI IDFWRUV LQFOXGLQJ PD[LPXP GRUP FDSDFLW\ DW HDFK VFKRRO WKH QXPEHU RI ´RXW RI UHJLRQµ VWXGHQWV DQG WKH QXPEHU RI VWXGHQWV XQGHU WKH DJH RI 6SHFLÀFDOO\ LW ZDV DVVXPHG WKDW ZKHUH RQ FDPSXV KRXVLQJ LV DYDLODEOH LW ZRXOG EH ÀOOHG WR LWV PD[LPXP FDSDFLW\ ÀUVW ZLWK IXOO WLPH VWXGHQWV IURP RXWVLGH WKH UHJLRQ DQG WKHQ E\ IXOO WLPH VWXGHQWV IURP WKH ORFDO DUHD 'RUP FDSDFLW\ DQG FRXQWV RI VWXGHQWV E\ DJH FDWHJRU\ IRU HDFK FDPSXV ZHUH REWDLQHG IURP WKH 1DWLRQDO

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


'DWD 1RWHV

&HQWHU IRU (GXFDWLRQ 6WDWLVWLFV· ,QWHJUDWHG 3RVWVHFRQGDU\ (GXFDWLRQ 6\VWHP ,3('6 ZKLOH WKH SHUFHQWDJH RI VWXGHQWV IURP RXWVLGH HDFK RI WKH UHJLRQV LV EDVHG RQ DQ DQDO\VLV RI WKHLU UHVLGHQWLDO =,3 FRGHV SURYLGHG E\ 681< $GPLQLVWUDWLRQ ´2XW RI UHJLRQµ VWXGHQWV XQDEOH WR ÀQG KRXVLQJ RQ FDPSXV ZHUH DVVXPHG WR OLYH LQ WKH UHJLRQ DQG WKHUHIRUH QRW DW KRPH :KHUH WKHUH ZDVQ·W VXIÀ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· VFKRRO LV ORFDWHG 6SHQGLQJ DVVRFLDWHG ZLWK VWXGHQWV HQUROOHG DW 681< (PSLUH 6WDWH ZDV GLVWULEXWHG DFURVV WKH UHJLRQV EDVHG RQ WKH ORFDWLRQ RI WKHVH VWXGHQWV DV GHWHUPLQHG IURP DQ DQDO\VLV RI WKHLU SHUPDQHQW UHVLGHQWLDO =,3 FRGHV SURYLGHG E\ 681< $GPLQLVWUDWLRQ

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

7D[ ,PSDFWV 7KH IROORZLQJ VWDWH DQG ORFDO WD[ LPSDFWV ZHUH HVWLPDWHG RQ WKH LQFRPH DQG VSHQGLQJ DVVRFLDWHG ZLWK 681< IDFXOW\ VWDII VWXGHQWV DQG YLVLWRUV 3URSHUW\ 7D[HV ,PSDFWV ZHUH HVWLPDWHG XVLQJ UHVLGHQWLDO SURSHUW\ WD[ GDWD IURP WKH 1HZ <RUN 6WDWH 2IÀFH RI 5HDO 3URSHUW\ 7D[ 6HUYLFHV 0XQLFLSDO 3URÀOHV UHSRUWLQJ DYHUDJH FRXQW\ ZLGH UHVLGHQWLDO WD[ ELOOV E\ FRXQW\ EDVHG RQ DVVHVVPHQW UROOV )LJXUHV SHU SDUFHO LQFOXGH FRXQW\ FLW\ WRZQ DQG VFKRRO SURSHUW\ WD[HV %HFDXVH GDWD ZHUH QRW DYDLODEOH IRU 1HZ <RUN &LW\ DQG 1DVVDX &RXQW\ SURSHUW\ WD[HV DVVRFLDWHG ZLWK UHVLGHQWLDO KRPHRZQHUV LQ WKHVH DUHDV DUH IURP DQ HDUOLHU VWXG\ FRQGXFWHG E\ WKH 1HZ <RUN 6WDWH &RPSWUROOHU ´3URSHUW\ 7D[HV LQ 1HZ <RUN 6WDWH µ $SULO 3URSHUW\ WD[ LPSDFWV UHÁHFW WKRVH JHQHUDWHG E\ KRPH RZQLQJ 681< HPSOR\HHV (VWLPDWHV IRU WKH QXPEHU RI 681< HPSOR\HH KRPHRZQHUV ZHUH FDOFXODWHG E\ PXOWLSO\LQJ IXOO WLPH HPSOR\PHQW FRXQWV E\ FRXQW\ RI UHVLGHQFH E\ FRXQW\ OHYHO UDWHV RI KRPH RZQHUVKLS DPRQJ KLJKHU LQFRPH KRXVHKROGV DQG XS DQG WKH DYHUDJH UHVLGHQWLDO SURSHUW\ WD[ EXUGHQ IRU WKDW FRXQW\ +RPH RZQHUVKLS UDWHV ZHUH FDOFXODWHG XVLQJ KRXVLQJ WHQXUH HVWLPDWHV IURP WKH

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


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·V ,QWHJUDWHG 3RVWVHFRQGDU\ (GXFDWLRQ 6\VWHP ,3('6 $QQXDO ZDJH SHU SDUW WLPH 681< ZRUNHU ZDV HVWLPDWHG WR EH KDOI RI WKDW IRU D IXOO WLPH HPSOR\HH 1HZ <RUN 6WDWH LQFRPH WD[ LPSDFWV DW WKH UHJLRQDO OHYHO UHÁHFW WKRVH JHQHUDWHG E\ DOO 681< HPSOR\HHV HPSOR\HG DW WKH 681<V ORFDWHG LQ WKDW UHJLRQ LQFOXGLQJ HPSOR\HHV ZKR OLYH RXWVLGH WKH UHJLRQ 6DOHV 7D[HV 6DOHV WD[ LPSDFWV RQ VSHQGLQJ E\ 681< HPSOR\HHV VWXGHQWV DQG YLVLWRUV ZHUH HVWLPDWHG XVLQJ VDOHV WD[ UDWHV E\ FRXQW\ IURP WKH 1HZ <RUN 6WDWH 'HSDUWPHQW RI 7D[DWLRQ DQG )LQDQFH 5DWHV UHÁ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ÁHFWLQJ HQWHUWDLQPHQW FORWKHV UHVWDXUDQWV GULQNV HWF DQG SHUFHQW RI WKHLU VSHQGLQJ RQ ERRNV DQG VXSSOLHV DV WH[W ERRNV DUH H[HPSW IURP WKH VDOHV WD[ )RU RYHUQLJKW YLVLWRUV LW ZDV DVVXPHG WKDW DOO VSHQGLQJ RQ KRWHO VWD\V SUHSDUHG IRRG DW UHVWDXUDQWV DQG FRIIHH VKRSV DQG WUDQVSRUWDWLRQ ZRXOG EH WD[DEOH ,W ZDV DVVXPHG WKDW DOO WD[DEOH VSHQGLQJ RI 681< VWXGHQWV DQG RYHUQLJKW YLVLWRUV ZRXOG RFFXU LQ WKH FRXQW\ ZKHUH WKH UHODWHG VFKRRO ZDV ORFDWHG

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ 7KH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH


'DWD 1RWHV

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ÁHFW WKH SULFH WKDW FXVWRPHUV DFWXDOO\ SD\ )RU 681< VFKRROV LQ UHJLRQV ZKHUH QR PDMRU FLW\ LV ORFDWHG DQG DQ DYHUDJH SULFH ZDVQ·W UHSRUWHG WKH DYHUDJH SULFH DFURVV DOO KRWHOV LQ PDMRU FLWLHV LQ XSVWDWH 1HZ <RUN ZDV DSSOLHG )RRG DQG WUDQVSRUWDWLRQ GXULQJ RYHUQLJKW YLVLWRUV·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

:DON 6FRUHV 6RXUFH DQG 6FRSH 'DWD DUH IURP :DON 6FRUH :DON6FRUH FRP SURYLGLQJ D VFRUH RU D PHDVXUH RI ´ZDON DELOLW\µ RI DQ\ DGGUHVV RU ORFDWLRQ WR QHDUE\ DPHQLWLHV VXFK DV UHVWDXUDQWV JURFHULHV VKRSSLQJ HQWHUWDLQPHQW DQG SDUNV $FFRUGLQJ WR :DON 6FRUH D VFRUH EHWZHHQ DQG UHSUHVHQWV D ´ZDONHU·V SDUDGLVHµ ZKHUH GDLO\ HUUDQGV ZRXOG QRW UHTXLUH D FDU DQG FRXOG EH FRQGXFWHG RQ IRRW $W WKH RWKHU HQG RI WKH VSHFWUXP LV D VFRUH RI LQGLFDWLQJ WKDW DOPRVW DOO HYHU\GD\ GHVWLQDWLRQV UHTXLUH D FDU :DON VFRUHV IDOOLQJ EHWZHHQ WKHVH WZR H[WUHPHV UHSUHVHQW YDU\LQJ GHJUHHV RI ZDON DELOLW\ ZLWK KLJKHU VFRUHV LQGLFDWLQJ PRUH QHDUE\ DPHQLWLHV DQG OHVV UHOLDQFH RQ D FDU 7R PHDVXUH WKH YLWDOLW\ DQG DPHQLWLHV DYDLODEOH E\ IRRW LQ 681< FRPPXQLWLHV YHUVXV FRPPXQLWLHV ZLWKRXW D 681< WKH ZDON VFRUH ZDV UXQ IRU WKH ´FHQWHU RI WRZQµ RI HDFK RI WKH QLQH VHOHFWHG 681< LPSDFW FRPPXQLWLHV DV ZHOO DV WKH ´FHQWHU RI WRZQµ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

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN _ -XQH


+RZ 681< 0DWWHUV

+2:

0$77(56

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN

7KLV UHSRUW LV D MRLQW HIIRUW RI WKH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW RI WKH 8QLYHUVLW\ DW $OEDQ\ DQG WKH 8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH &RPPLVVLRQHG E\ WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN WKH UHSRUW SUHVHQWV D GHWDLOHG DQDO\VLV RI WKH HFRQRPLF LPSDFW DQG HFRQRPLF GHYHORSPHQW UROH RI WKH HQWLUH 681< V\VWHP LQ 1HZ <RUN 6WDWH DQG HVWDEOLVKHV D EHQFKPDUN IRU PRYLQJ IRUZDUG

7KH 1HOVRQ $ 5RFNHIHOOHU ,QVWLWXWH RI *RYHUQPHQW 8QLYHUVLW\ DW $OEDQ\ 7KH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN 6WDWH 6WUHHW $OEDQ\ 1< 3KRQH ( PDLO LQIR#URFNLQVW RUJ :HE ZZZ URFNLQVW RUJ 7KRPDV *DLV 'LUHFWRU 3URMHFW 'LUHFWRU /LVD 0 0RQWLHO 5HVHDUFK 6FLHQWLVW 5HVHDUFKHU 'DYLG ) 6KDIIHU 6HQLRU )HOORZ &R DXWKRU DQG UHVHDUFKHU 'DYLG - :ULJKW 'LUHFWRU 8UEDQ DQG 0HWURSROLWDQ 6WXGLHV &R DXWKRU DQG UHVHDUFKHU

8QLYHUVLW\ DW %XIIDOR 5HJLRQDO ,QVWLWXWH 7KH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN 8% 'RZQWRZQ *DWHZD\ *RRGHOO 6WUHHW 6XLWH %XIIDOR 1< 3KRQH ( PDLO UHJLRQDO LQVWLWXWH EXIIDOR HGX :HE ZZZ UHJLRQDO LQVWLWXWH EXIIDOR HGX .DWKU\Q $ )RVWHU 'LUHFWRU 3URMHFW 'LUHFWRU 6KDURQ $QD (QWUHVV 6HQLRU 3ROLF\ $VVRFLDWH 5HVHDUFKHU %DUW 5REHUWV 3ROLF\ $VVRFLDWH 5HVHDUFKHU %UHQGD $ 6W\QHV *UDSKLF DQG ,QIRUPDWLRQ 'HVLJQHU *UDSKLF GHVLJQHU 5DFKHO 0 7HDPDQ 'LUHFWRU RI 3URJUDPV DQG &RPPXQLFDWLRQV &R DXWKRU DQG HGLWRU


+2: 0$77(56

(FRQRPLF ,PSDFWV RI WKH 6WDWH 8QLYHUVLW\ RI 1HZ <RUN


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.