As used in this part:

1. (1) “AEDC” means the Arkansas Economic Development Commission;
2. (2) “Applied research” means any activity which seeks to utilize, synthesize, or apply existing knowledge, information, or resources to the resolution of a specific problem, question, or issue;
3. (3) “Basic research” means any original investigation for the advancement of scientific or technical knowledge;
4. (4) “Board” means the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission;
5. (5) “Business incubator” means a facility in which the success and growth of technology-based enterprises are fostered;
6. (6) “Center for applied technology” means a college or university or university-affiliated unit, or a consortium of such units, which conducts a continuing program of basic research and applied research, development, and technology transfer in one (1) or more technological areas in collaboration with and through the support of private enterprises;
7. (7) “Commercialization Committee” means a standing committee selected by the Chair of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission that shall review funding program applications and make funding recommendations to the Executive Director of the Arkansas Economic Development Commission in accordance with program-specific review criteria;
8. (8) “Deployment” means the effective transfer of knowledge, information, or resources from qualified applicants for the resolution of technology-based problems;
9. (9) “Director” means the Director of the Division of Science and Technology of the Arkansas Economic Development Commission;
10. (10) “Division of Science and Technology of the Arkansas Economic Development Commission” means the Arkansas Economic Development Commission division designated by the Executive Director of the Arkansas Economic Development Commission to administer funding programs of the Division of Science and Technology of the Arkansas Economic Development Commission authorized under Arkansas Code § 15-3-101 et seq.;
11. (11) “Enterprise” means a business with its principal place of business in Arkansas and which is or proposes to be engaged in this state in manufacturing, research and development, or the provision of services involving a significant amount of technology;
12. (12) “Executive director” means the Executive Director of the Arkansas Economic Development Commission;
13. (13) “External expert” means a representative, selected at the discretion of the Executive Director of the Arkansas Economic Development Commission, from state or federal government, academia, private industry, and/or the private sector who provides knowledge or experience useful in analysis and review of funding program applications of the Division of Science and Technology of the Arkansas Economic Development Commission in accordance with criteria defined under program-specific review criteria;

14. (14) “Facility” means any real property, personal property, or mixed property of any and every kind that can be used or that will be useful in securing or developing industry, including science and technology, including without limitation:

    1. (A) Rights-of-way;
    2. (B) Roads;
    3. (C) Streets;
    4. (D) Pipes;
    5. (E) Pipelines;
    6. (F) Reservoirs;
    7. (G) Utilities;
    8. (H) Materials;
    9. (I) Equipment;
    10. (J) Fixtures;
    11. (K) Machinery;
    12. (L) Furniture;
    13. (M) Furnishing; and
    14. (N) Instrumentalities;
15. (15) “Industry” means manufacturing facilities, warehouses, distribution facilities, repair and maintenance facilities, agricultural facilities, and corporate management offices for industry;
16. (16) “Initial capitalization” means financing that is provided for the development, refinement, or commercialization of a product or process and other working capital needs;
17. (17) “In-kind services” means scientific or technological equipment or suppliers, or both, release time, and indirect costs approved by the Arkansas Economic Development Commission;
18. (18) “Investment agreement” means a written agreement between the Arkansas Economic Development Commission and an enterprise or qualified applicant which stipulates the terms and conditions of a qualified security purchase by the Arkansas Economic Development Commission;
19. (19) “Machinery and equipment” means tangible personal property used in connection with a qualified education program or a qualified research program which has been approved for a tax credit under rules prescribed by the Department of Finance and Administration;

20. (20) “New” means machinery and equipment that is state-of-the-art machinery and equipment which has:

    1. (A) Never been used except for normal testing by the manufacturer to ensure that the machinery or equipment is of a proper quality and in good working order; or
    2. (B) Been used by the retailer or wholesaler solely for the purpose of demonstrating the product to customers for sale;
21. (21) “Principal place of business” means the physical location in this state where the eligible business maintains its principal business office;

22. (22) “Qualified applicant” means:

    1. (A) Under the Technology Development Program, one (1) or more Arkansas-based inventors representing small businesses, colleges or universities, and federal laboratories engaged in innovation;
    2. (B) Under the Technology Transfer Assistance Grant Program, one (1) or more technology transfer resource providers who possess or have the capability to identify and transfer innovative technology to provide a technical solution to a specific problem identified by an Arkansas-based enterprise; and
    3. (C) Under the Basic Research and Applied Research Grant programs, a designated individual associated with an Arkansas-based college or university who enters into a contractual partnership with an industry to provide basic or applied research to stimulate the transfer of science and technology through the provision of matching services, equipment, or both;

23. (23) “Qualified security” means any:

    1. (A) Note;
    2. (B) Stock;
    3. (C) Treasury stock bond;
    4. (D) Debenture;
    5. (E) Evidence of indebtedness;
    6. (F) Certificate of interest or participation in any profit-sharing agreement;
    7. (G) Preorganization certificate or subscription;
    8. (H) Transferable share;
    9. (I) Investment contract;
    10. (J) Certificate of deposit for a security;
    11. (K) Certificate of interest or participation in a patent or application therefore, or in royalty or other payments under such a patent or application; or
    12. (L) In general, any interest or instrument commonly known as a security or any certificate for, receipt for, guarantee of, or option, warrant, or right to subscribe to or purchase any of the foregoing, provided that in the valuation of qualified security, no value shall be placed on in-kind services;
24. (24) “Qualified technology” means a technical or science-based product or process;
25. (25) “Research Committee” means a standing committee selected by the Chair of the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission that shall review Basic Research Grant Program and Applied Research Grant Program applications and make funding recommendations to the Executive Director of the Arkansas Economic Development Commission in accordance with program-specific review criteria;
26. (26) “Royalty agreement” means a written agreement between the Arkansas Economic Development Commission (licensor) and an enterprise or qualified applicant, or both (licensee), specifying the conditions by which payments shall be made by the licensee to the licensor as a percentage of the revenues obtained using the investments made by the licensor to the licensee to commercialize a product, process, or both;
27. (27) “Scientific and technological project” means a project undertaken in Arkansas by an enterprise, which project the Board of Directors of the Division of Science and Technology of the Arkansas Economic Development Commission shall have determined promotes the purposes of science and technology as defined under Arkansas Code § 15-3-101 et seq.;

28. (28) “Technology development” means the evolution of innovative products and processes through the following stages:

    1. (A) The laboratory/workshop stage of development, usually before a working prototype is developed, during which evaluation and protection of the idea are paramount and a market application is identified;
    2. (B) The workshop/early startup stage of development during which the production and testing of a working prototype are paramount; and
    3. (C) The late startup/setup stage of development during which limited production and market testing of products are paramount;
29. (29) “Technology transfer” means the match, deployment, or implementation of innovative knowledge, information, or resources from a technology transfer resource provider to an enterprise for the resolution of technology-based problems, issues, or concerns; and
30. (30) “Technology transfer resource provider” means any public or private Arkansas-based enterprise, college or university, or laboratory that has the capability to identify and transfer innovative technology.