New network to speed growth of innovative firms: Team to support incubator services
BYLINE: John Gallagher, Detroit Free Press
Mar. 28--A coalition of regional economic development leaders unveiled a plan Tuesday to accelerate the growth of small, promising companies in metro Detroit.
To create this Accelerator Network, the coalition hopes to raise $50 million to support four existing incubator-type organizations and to help create two more.
Doug Rothwell, president of the corporate leadership group Detroit Renaissance, said he was optimistic the money could be raised over the next two to three years, mostly from the federal and state governments.
"It represents a really great team collaborative effort," Rothwell said at a news conference announcing the goal.
To obtain the goal, the network proposes getting $30 million from the federal government with the help of Michigan's congressional delegation, $15 million from the state's economic development funds and $5 million from donations.
Up to 20% of the money would go for new buildings, with the rest used to establish an operations endowment.
Tuesday's announcement was the latest in a string of efforts by the region's many economic development agencies to work together.
Rothwell emphasized that the Accelerator Network is a loose coalition rather than a new organization. The network has no staff and no offices.
"By speaking in one voice, southeastern Michigan is cutting through the clutter that stalls or delays actions," said Jim Croce, chief executive of NextEnergy. "Business as usual simply isn't going to get the job done anymore."
Among the participants in the Accelerator Network are Wayne, Oakland, and Macomb counties, the City of Detroit, Detroit Renaissance, the Detroit Regional Chamber, the Detroit Economic Growth Corp. and the Tourism Economic Development Council.
The four existing accelerators that would benefit from the fund-raising are Troy-based Automation Alley, Ann Arbor SPARK, and NextEnergy and TechTown in Detroit.
The ones the network hopes to help create would be the Wayne County Aerotropolis near Metro Airport and a Macomb County Accelerator at a site to be chosen.
"Increased federal funding to support accelerators like Automation Alley, NextEnergy, Ann Arbor SPARK and others will provide a cornerstone from which to transform the economy of southeast Michigan," Rothwell said.
How it could work
Gearing its efforts heavily toward the high-tech, life science and other high-growth industries of tomorrow, the network hopes to provide an array of services for entrepreneurs.
Among those services: office and lab space for start-ups and joint ventures; networking for entrepreneurs; business planning and marketing advice; talent recruitment, and management development.
Getting access not just to one member's advice but sharing in the multiple and overlapping programs offered by various members is key to the concept.
For example, an entrepreneur working with Ann Arbor SPARK would be encouraged to attend professional conferences hosted by the Detroit Convention and Visitors Bureau.
Similarly, a business working with Automation Alley in Oakland County might share its best practices with start-ups at TechTown or the planned Macomb County Accelerator.
Contact JOHN GALLAGHER at 313-222-5173 or gallagher@freepress.com.
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