SSTI Digest

Offering customized workspace such as wet laboratories and specialized research equipment is one of the many benefits provided by technology-focused incubators. Access to university research, business mentoring and administrative support services often accompany the reduced rent facilities with the goal of growing technology companies into successful, self-sustaining enterprises. Following are select announcements of recently launched incubators and partnerships from across the nation. 
 
GateWay Community College recently received a recommendation from the Phoenix Parks, Education, Bioscience and Sustainability subcommittee of the Phoenix City Council to enter into an intergovernmental agreement with the college to build a bioscience incubator laboratory with wet lab space, the Arizona Republic reports. The wet lab would be a minimum of 5,000 sq. ft. and located near the Phoenix Biomedical Campus.
 
Colorado’s first aerospace business incubator will provide services, less the office space, for companies involved in space technology and resource development. The 8th Continent Project at the Colorado School of Mines announced a $150,000 grant from the Colorado Economic Development Commission will be used to serve 14-15 start-up companies per year. Funding from the commission is being matched two-and-a-half dollars for every one dollar through cash and in-kind contributions from 8th Continent’s founding partners.
 
Enterprise Florida, a public-private partnership serving as the state’s primary organization devoted to statewide economic development, announced last month the new Florida Institute for Commercialization of Public Research will be based at the Florida Atlantic University Research & Development Park. Created by the legislature last year, the institute is a “one-stop shop” to facilitate new venture creation and showcase technology and product development growing out of research from Florida’s public universities.
 
The Tavistock Group announced plans to build a $50 million, 100,000-square-foot wet lab and biotech incubator facility in Lake Nona, situated near the University of Central Florida College of Medicine and the Burnham Institute for Medical Research, reports the Orlando Business Journal. Construction is expected to begin in 2009.
 
An initial $1.15 million grant from the Indiana Economic Development Corporation will provide start-up costs related to The Hammond INnovation Center, an 8,200-square-foot incubator designed to support high tech start-up companies. Purdue University-Calumet will manage the facility. 
 
Purdue Research Park broke ground last month on its third building, a 105,000-square-foot technology incubator dubbed Purdue Technology Center II. The Purdue Research Foundation hopes to attract businesses in the fields of life sciences, information technology, and advanced manufacturing and logistics. A $3 million donation from a Purdue University alumnus is helping to finance the $14.5 million project, according to the Journal and Courier.
 
The University of Kansas Medical Center will build a regional wet lab incubator for life sciences start-up companies with help from a $3 million federal grant, according to the Kansas City Business Journal. The planned 40,000-square-foot incubator will house companies started by faculty researchers from universities in the region and entrepreneurs who license locally generated research, the article states. The Kansas Bioscience Authority and Kansas University Medical Center announced they will finance the remaining cost, which is expected to be another $3.25 million.
 
To accelerate Baltimore’s bioscience industry, an agreement was signed earlier this year by the developer of Baltimore BioPark and Baltimore City’s technology incubator, the Emerging Technology Center (ETC), to coordinate incubation and leasing activities for early-state bioscience companies. The new BioInnovation Center provides flexible, modular lab suites with wet lab and office space. Under the agreement, ETC will provide business mentoring and incubation assistance to early-stage life science and bioscience companies. In return, Bio Park will promote ETC services to tenants and prospects and offer laboratory space to tenant companies, according to a press release.
 
The new Business Engagement Center at the University of Michigan (UM) opened earlier this month. The center shares 17,000 sq. ft. with the recently relocated UM Office of Technology Transfer. The two offices will work together to strengthen UM ties to business and community partners.
 
Missouri Gov. Matt Blunt announced a North Kansas City nonprofit organization was approved for $150,000 in tax credits through the state’s Small Business Incubator Program. The facility will provide incubator services for businesses in technology and life sciences. In collaboration with the University of Central Missouri Innovation Center and the Small Business Technology Development Center, the new Avvio Center will provide training, workshops and seminars to tenants.
 
Farleigh Dickinson University in New Jersey launched a business incubator last month focusing solely on sustainable start-up and early-stage companies in alternative energy, the environment, waste reduction, urban agriculture, transportation, and business information.
 
A new round of federal funding earlier this year prompted construction of a new technology incubator at SUNY Fredonia State College. Previously operating within a temporary facility, the $150,000 earmark enables construction of the new 21,000-square-foot incubator in Dunkirk, reports Buffalo Business First. An extension of the university’s main campus in Fredonia, the incubator will house approximately 30 start-up companies within varied technology sectors. Completion is slated for next year.
 
A new 300-acre corporate campus being developed by Triangle North in partnership with Vance-Granville Community College will include a biotech incubator for start-ups in the biotechnology industry. 
 
Clemson University received final approval from the State Budget and Control Board on its request of $5 million to begin construction on a new Innovation Center at the Clemson University Advanced Materials Center. The 28,000-square-foot facility will house Clemson University spin-off companies, entrepreneurial start-ups and larger companies relocating to South Carolina that focus on advanced materials, nanotechnology and biomaterials.
 
Marshall University and the Huntington Area Development Corporation entered into an agreement last month to build a new biotech incubator, reports The State Journal.  Located near the university’s Forensic Science Center, the incubator will serve biotechnology spin-off companies that originated at Marshall University.
 
University Research Park in Madison, Wis., announced in March plans to build a new, 65,000-square-foot accelerator building to house life sciences companies that have moved beyond early-stage development. The building will be located south of the MGE Innovation Center, a larger incubator facility designed for early-stage companies.

Early-stage Colorado bioscience companies and researchers in clean and alternative energy working to commercialize new technologies are among the victors of Colorado’s legislative session that ended last week.
 
To encourage bioscience research and speed technology commercialization, Gov. Bill Ritter signed into law HB 1001, establishing the Colorado Bioscience Research Grant Program. The grant program will provide $26.5 million over five years to research institutions and private companies, beginning with $5.5 million this year. Unveiled by the governor last fall, the program is the first portion of the administration’s business development package to be approved by legislators (see the Oct. 3, 2007 issue of the Digest).
 
The legislation mandates that at least 30 percent of the funds go toward university and research institution technology transfer offices to accelerate the development of research projects focusing on life sciences, engineering, material sciences, computer sciences, photonics or nanotechnology. Another 30 percent of the funds will go to early-stage bioscience companies that are commercializing technology from a Colorado research institution or technology transfer office. Other funds will be distributed for infrastructure development.
 
Research institutions are eligible for $150,000 per project, and grants of up to $250,000 per project will be awarded to Colorado companies that have received no more than $5 million in funding and employ 20 or fewer people. The program will be administered by the Colorado Office of Economic Development.
 
Adding to the excitement surrounding the bioscience industry throughout the state, Colorado State University announced in March a new Clean Energy Supercluster, dubbed "Cenergy," to help accelerate the university’s clean energy research to the marketplace. Superclusters are an alliance of academic researchers, economists and business experts organized to address global challenges and encourage collaboration among business and academia.
 
Gov. Bill Ritter also signed the fiscal year 2008-09 budget into law last week, providing $7.65 million for the Clean Energy Fund, $2 million for the Colorado Renewable Energy Authority, and $2 million for solar incentives.
 
The Clean Energy Fund appropriation will be used to attract renewable energy industry investment, assist researchers in transferring technology to the marketplace, and provide incentives for the use of energy efficient and renewable energy products, according to the governor’s office.
 
The enacted budget, HB 1375, may be viewed through the Colorado General Assembly at: http://www.leg.state.co.us/

John Austin is the newly appointed executive director of the New Economy Initiative for Southeast Michigan.

Publisher's Note: SSTI notes with much sadness the March 5 passing of Indiana State Sen. David Ford, following a battle with pancreatic cancer. David was a good friend not only of SSTI's, but also of the tech-based economic development community across the nation. In addition to being a tireless and cheerful advocate for investing in science and technology, he was also a gentleman in the true sense of the word, and we miss him greatly.

The second installment of the Tech Talkin’ Govs series includes highlights from state-of-the-state, budget and inaugural addresses from Arizona, Colorado, Louisiana, Missouri, Nebraska, South Dakota, Vermont, and West Virginia.

In support of his New Energy Economy Initiative, Gov. Bill Ritter introduced last week a statewide action plan to expand renewable energy opportunities and reduce the impact of climate change.

 

Two key components of the plan include R&D for coal, natural gas and renewable energy and fostering an educated workforce. Under the plan, the state will partner with research institutions and industry to expand R&D in these areas and develop clean-coal technologies. No additional funding is requested in the governor’s fiscal year 2008-09 budget proposal for these initiatives; however, the key departments involved in the action plan have committed to using existing funds to implement the action items.

 

The plan also calls for promoting the R&D of new energy resource technologies through the Colorado Renewable Energy Collaboratory -- a partnership between the National Renewable Energy Laboratory and Colorado’s three science research universities established in 2006. Gov. Ritter signed HB 1322 last year, allocating up to $2 million per year for three years to the partnership. 

 

The Governor’s Jobs Cabinet, consisting of business leaders and representatives from higher education and K-12, was created last year to develop a well trained workforce for the New Energy Economy. The plan calls for partnering with higher education to train the workforce needed for the New Energy Economy and partnering with K-12 educators to develop and teach sustainability criteria.

 

Gov. Ritter calls on the federal government to “step up its obligation and provide national leadership on this front.” Recommendations for federal support include providing funding for the following:

Ryne Johnson was named the new director of the Center for Entrepreneurship at Chico State University.

While dozens of states have instituted clean-tech strategies in order to cash in on the high-tech wave of the future, some are looking even further ahead. In several western states, private space travel and companies are drawing the attention of political leaders, researchers and investors eager to pioneer an industry that may still be many years away from creating dividends. California has long been involved in promoting space technology companies through the California Space Authority, which offers workforce training and business support opportunities. In New Mexico, Virgin Galactic plans to begin construction on Spaceport America next year with $67 million in state funds once the project is approved by the Federal Aviation Administration (see the Dec. 19, 2005 issue of the Digest).

 

Colorado also has entered the arena with the launch of the Eighth Continent Project, hosted at the Colorado School of Mines Center for Space Resources. The project has assembled an array of services, including a trade association, a planned incubator and venture fund, and a collaborative research program for private space enterprises. Project Director Burke Forke believes the program will help position Colorado as a leader in 'Space 2.0' in which the industry will be dominated by venture-backed entrepreneurs instead of large government projects.

 

The Eighth Continent Project differs from other state and university initiatives because of its focus on the private space flight industry and its commercialization services. The nation's 52 space grant consortia, based at universities around the country and administered by the National Aeronautics and Space Administration, promote space research and education, but few of these offer services tailored to the needs of space entrepreneurs. The project will offer workshops and conferences for researchers and entrepreneurs and will launch a venture fund next year, along with its space-tech incubator and a workforce development program.

 

Partners in the program include Colorado's CTEK, the Governor's Office of Economic Development, the Colorado School of Mines, the University of Colorado Leeds School of Business Deming Center, the Keirestu Forum, and several existing space businesses.



Find out more about the Eighth Continent Project at: http://www.8cproject.com

Andre Pettigrew was named the new head of economic development for the City of Denver. Pettigrew replaces John Huggins, who left earlier this year.

Seth Porter was selected as deputy director for Colorado Gov. Bill Ritter's Energy Office.

Bills have been passed and budgets approved with the close of several 2007 legislative sessions in the western states. The below article is part of the Digest's continuing coverage of the legislative outcomes of some of what governors proposed in their State of the State and budget addresses (see SSTI’s Tech Talkin’ Govs Series in the Jan. 8, Jan. 15, Jan. 29 and Feb. 19, 2007 issues of the Digest).

 

Washington

The 2007 legislative session ended last month with the approval of the first installment of $70 million over the 2007-09 biennium for the Life Sciences Discovery Fund. Created in 2005, the fund provides grants for promising life science university research within the state. The bill allocates $35 million per year from strategic tobacco settlements for 10 years beginning in 2008 (see the May 16, 2005 issue of the Digest).

 

Legislation was passed to fund Innovation Partnership Zones (HB 1091) at the request of Gov. Christine Gregoire and the Global Competitiveness Council. The fiscal year 2007-09 capital budget includes $5 million for the zones — designated areas of Washington where globally competitive companies, research institutions and advanced training are creating a special competitive advantage for the state. The $5 million allocation will fund five grants over the next two years to help pay for buildings and infrastructure. In addition, the capital budget includes $58 million for Washington State University to complete the Pullman Life Sciences Building and $5 million for broadband infrastructure in rural parts of the state.

 

Idaho

In 2006, the Governor’s Science and Technology Advisory Council - along with former Gov. Jim Risch - agreed upon a $38.8 million economic development package consisting of several recommendations to attract and grow new technology businesses that was contingent upon approval by the newly elected governor (see the Oct. 2, 2006 issue of the Digest). In his FY 2008 budget recommendation, Gov. C.L. “Butch” Otter endorsed only one of the recommendations — $15 million for the Higher Education Research Council, which could be spent on both infrastructure costs and research. However, the legislature appropriated only $1.56 million in the FY08 budget.

 

Also included in the budget is $1 million for the Business and Jobs Development Fund, with a maximum amount of $250,000 per recipient and $300,000 for the state’s Tech Connect program, the same level as FY07. The program provides assistance to technology companies with commercialization and entrepreneurial development.

 

The legislature also passed HB 222, separating the state’s departments of commerce and labor at the request of Gov. Otter, which previously were combined by former Gov. Dick Kempthorne. According to the bill, separating the departments will allow the Director of Commerce more time to focus on recruiting and retention of small businesses, international trade and other specific issues related to economic development.

 

Oregon

In March, Sen. Kurt Schrader (D-Canby) and Rep. Mary Nolan (D-Portland) unveiled the Co-Chairs’ 2007-09 Recommended Budget, which counters several recommendations offered in Gov. Ted Kulongski’s budget released in 2006.

 

Gov. Kulongoski’s budget proposal included full funding for a $38 million economic stimulus package at the request of the Oregon Innovation Council. The Co-Chair’s budget only includes half of that amount.

 

Some of the initiatives funded under the council’s plan include a continued investment of $10 million for the Oregon Nanoscience and Microtechnologies Institute (ONAMI); $10 million to support two new signature research centers; $7 million for an infectious disease drug development research center; and, $3 million for the Bio-Economy and Sustainable Technologies Center to focus on R&D in clean energy, bio-based products and green building materials (see the Dec. 18, 2006 issue of the Digest). Under the Co-Chair’s budget, ONAMI and Signature Research Centers would receive $19 million.

 

Hearings on the budget will continue until the 2007 Legislative Session closes in June.

 

Colorado

Last week, the General Assembly passed HB 07-1060, transferring $2.5 million of the general fund portion of limited gaming fund money to the Colorado Bioscience Discovery Evaluation Grant Program. The program will provide grants of up to $100,000 for an SBIR or STTR project and up to $150,000 for other research projects. Additionally, the bill increases the amount the Office of Economic Development may spend in administering the program. The program was created in 2006 with a one-time appropriation of $2 million for the advancement of new bioscience discoveries at Colorado research institutions (see the June 12, 2006 issue of the Digest).

 

Utah

The Utah Science, Technology and Research Initiative (USTAR) received $19.3 million, the proposed operating budget amount for FY08, and an additional $74,500 for compensation adjustments. USTAR was created by the legislature in 2006 to leverage the state’s research universities in creating and commercializing technologies. The legislature appropriated $50 million for start-up costs, $15 million for hiring “all-star” research teams and $4 million to provide funding for a technology outreach program. 

Whether you call it an incubator, accelerator, technology center or innovation zone, most communities actively engaged in promoting tech entrepreneurship can point to a building or group of buildings that houses some of those efforts. These facilities increase the success of budding tech firms by providing some combination of low-cost space, shared resources, business assistance, intellectual property assistance, and access to capital. 

 

For incubators alone, the National Business Incubation Association tallied more than 1,400 public and private facilities as of October, 2006.

 

And each month there are more announcements of construction of a new center or expansion of an existing effort. Here are just four recent examples of the cornerstone of many TBED strategies: