Congressman LaFalce
September 18, 1990
Page 2

When I first joined INCSTAR in 1979, sales were approximately
1 million dollars with four people involved with R & D. Being
small at that time, and with limited funds, I found myself
frequently frustrated and hindered in attempts to gain access to
technology and information. The University of Minnesota
Medical Library thirty miles away was the closest available
information resource. Finally, in 1982, my boss realized the
need for and benefits of rapid easy access to technology
information. With his approval, I proceeded to learn how to use
an on-line computer database system called Dialog. Dialog was
a quantum leap in the right direction, although efficiency with
the system remained problematic. In 1987, our company was
introduced to a new information service available from a
company called Teltech. Exhibit 1 is a copy of what Teltech
believes that they have to offer. Although their data is meant as
an example, I agree with them in principal.

INCSTAR currently spends approximately $17,000 per year for
Teltech's service. We log about 120 interactive information
searches during the year equating to around $140 per
interaction. Our R & D budget is 2.7 million dollars and
Teltech's information access service amounts to 0.6% of our
budget. Management believes this small part of our R & D
investment provides an invaluable resource to help us maintain
a competitive advantage.

The main strength of a technology information access service should be the speed at which solutions to problems can be addressed and the quality of answers obtained. A professional information service, described in H.R. 4659, would aid key personnel in small businesses by helping them obtain solutions rapidly without the added pressure and time to search on their own. Small businesses tend to live and survive on their ability to solve highly technical problems in the shortest time possible. This allows them to hit the market rapidly with new products and, in many cases, before anyone else.

Typically, small, start-up businesses tend to stretch and maximize the use of their R & D dollars. Therefore, the use of an information access service would appear, on the surface, hard for them to justify. A bill such as H.R. 4659 would go a long way towards providing a critical asset to many small businesses that could undoubtedly play a role in success versus failure.

Congressman LaFalce
September 18, 1990
Page 3

Section 2 of H.R. 4659 allows any existing Small Business Development Center to apply for inclusion in the Technology Access Program. This seems very logical and common sense would lead one to visualize the important added impact such a program would have on those small businesses already involved in research funded by the Small Business Administration.

As you may already know, the State of Minnesota has made a commitment to a similar Technology Access Program as outlined in H.R. 4659. I have presented testimony on two occasions in 1989 to Minnesota legislative committees and I have followed the progress of the state's commitment. Candace Campbell is President of Minnesota Project Outreach (MPO). MPO is the functional outcome of legislation in Minnesota to develop a small business technology information access program. Exhibit 2 briefly describes MPO and I would encourage you to contact Ms. Campbell for ideas that may provide insight as the Federal Government attempts to set up a similar program.

Sincerely,

John W. Orf

JWO:sle

Enclosures

Minnesota Project Outreach represents the Minnesota legislature's commitment to maintaining the
competitiveness of small and medium sized businesses in Minnesota by making "state-of-the-
art" expertise and information readily available and easily accessible. Approved in 1989, its
purpose is:

To facilitate the transfer of technology and scientific advice from the University of
Minnesota and other institutions to businesses in the state that may make economic
use of the information, and

to assist small and medium-sized businesses in finding technical and financial
assistance providers that meet their needs.

These services are being made available on a subscription basis through Minnesota Project
Outreach Corporation and its sponsors: the University of Minnesota, the Minnesota Department of
Trade and Economic Development and the Greater Minnesota Corporation. The services available
immediately through Minnesota Project Outreach currently include:

Science and Technology Expert Network -- a network of over 5,000 experts in science and technology fields, willing and capable to provide answers to technical problems through direct telephone contact.

Literature Searching and Document Delivery -- working with experienced. technicallysavvy information specialists, users can electronically search hundreds of business and technical databases.

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Technical Help Staff Minnesota Project Outreach is committed to solutions. Through qualified MPO stiff each company's technical problem is narrowed and the appropriate expert or information source is tapped. And every interaction through the MPO system is followed up, to make sure the user gets what it called for -- a solution.

Within the next year, Minnesota Project Outreach will offer its subscribers the following new databases and services:

Business Assistance Information and Referral -- a database of public and non-profit technical and financial assistance providers and programs sponsored by federal agencies, state agencies, educational institutions, chambers of commerce, civic organizations, community developmem youps, local government, and private industry associations with an on-line interview system and a toll-free helpline designed to match business information needs with business assistance providers.

U of M Licensable Technology Database -- a database containing descriptive and technical information on hundreds of technologies, patents and/or inventions available for licensing from the University of Minnesota.

U of M Technical Research Projects -- a database containing a description of thousands of ongoing technical research projects of the University of Minnesota and their possible market applications and other commercial potential.

U of M Technical and Business Education -- a database containing the technical and business education opportunities including programs, workshops and seminars.

Greater Minnesota Corporation Services and Programs -- a database containing information about GMC-sponsored programs. i.e. business innovation centers, applied research institutes, advanced manufacturing technology centers, research grants and venture capital programs.

Minnesota Project Outreach's charter subscribers will include up to 75 public access sites and 400 small and medium sized Minnesota companies.

Linking Minnesota Business with Technology, Technical Experts and Business Assistance