University Economic Development

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The role of University Affiliated Incubators in
economic development strategies
Keelin O'Leary, Memorial University of
Newfoundland Tom ONeal, University of Central
Florida Joel Stevenson, University of South
Carolina, Columbia
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Commercialization Incubation at a University
Idea Basic Research Applied Research Prototype Pr
oducts
Core Activities
Contribution
Secondary affect
Influence
Licenses
Commercialization New Companies Stronger
existing companies
Proactive Technology Transfer
High Paying jobs Partnerships Economic
Development Diversified Economy

• Quality Relevant Research

UCF Spin offs
Entrepreneurship
Rich Academic Programs
Leaders to create new companies
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What do Incubators do?
Graduate Companies poised for success
Identify and fill in the holes
New Client
Add Value
Incubator staff Community Political
support Technical Expertise Business
Expertise Networking Regional Professional
Service Providers University resources

• Marketing
• Sales
• Distribution
• Financial
• Technical
• IP
• Cash
• Management
• Manufacturing
• Contacts

• Marketing
• Sales
• Distribution
• Financial
• Technical
• IP
• Cash
• Management
• Manufacturing
• Contacts

Focus Tactics Strategy Connectivity
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Why Incubation

• 87 of incubator graduates are still in business
• vs 80 that fail during the first 5 years
• 84 of incubator graduates stay in their
  communities and continue to provide a return to
  their investors.
• For every 1 of estimated annual public
  investment, clients and graduates incubators
  generate approximately 45 in local tax revenue.
• Every 50 jobs created by an incubator client
  generate another 25 jobs in the community.
• Source National Business Incubator Association

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Kinds of Incubators

• Technology Incubators
• University Affiliated
• Mixed Use
• Empowerment
• Niche industry
• Kitchen Incubators
• Arts
• Construction

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Finding an Incubator

• Go to the national or State Web site first
• www.nbia.org
• www.fbiaonline.org
• Ask you local Economic Development Organization

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Getting into an Incubator

• Incubators normally have selection process
• Application
• Interview
• May or may not require business plan
• Usually require full time commitment
• UCF Technology Incubator requires participation
  in a 7 session program called Excellence in
  Entrepreneurship

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Expectations

• Incubation is a process, not a place
• Dont expect too much. This is support,
  coaching not life support
• Youre still in charge
• Reduces risk
• Usually allows you to grow or contract
• Adds credibility - to a point
• Usual term is 3 5 years

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Incubators often fill gaps in a regions Eco
System
Result
Economic Development
Commercialization Licensing /
Start-up / Incubation
Realization
Strategy Development Assessment /
Marketing/ Technology Maturation
Innovation
Steeples of Excellence
Ideas
Top Students
Research, IP Creation Management
Business services
Top Faculty
Tech Savvy Entrepreneurs
Political Support Regional support
State of the art facilities
Workforce Development
Industry Clusters
IP Training / Awareness
Infrastructure / resources
Areas addressed by Incubator
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The underlying foundation is key
Build Strong Foundation Strong Partnerships with
Industry and economic development
agencies Attract and retain the best
people Provide them the best facilities Give
them the opportunity to compete at the highest
level Provide a clear strategic vision - the
ultimate goal is economic development
Workforce Development
Business services
Patent Prosecution
IP Training / Awareness
Political Support Regional support
Tech Savvy Entrepreneurs
Top Students
Industry Clusters
Top Researchers Faculty
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UCF Incubation Program

• UCF
• 50,000 Students
• 130M in Research (Med School just started)
• Orlando, Known for what?

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Current Incubator Clients
Number of Clients/Graduates

• 100 Companies served
• Created more than 900 jobs
• Average salary of 60,000
• Raised 200M in venture capital
• Generate more than 500M in annual revenues

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Goals

• Expand high tech industry in Central Florida
• Help UCF meet its goal to be Americas leading
  partnership university
• Facilitate tech transfer, collaboration and
  economic development in the technology sector
• Provide business training and support to
• Technology Start-Ups
• University spin-offs
• Existing companies, restarting
• Existing company with new project/product
• SBIR / STTR start-ups

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Services

• On-site business coaching and mentoring
• Entrepreneurship curriculum, seminars
• Access to community leaders and an exceptional
  advisory board
• Adaptable space, flexible leases
• Shared resources
• Reception, conference rooms, business library,
  high speed internet access, work / break rooms,
  office equipment
• Networking, close proximity to UCF technology,
  expertise
• Access to interns and graduate student support

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Evolution (UCF Example)

• Program/Activity Started
• Central Florida Research Park 100 companies,
  10,000 jobs 1981
• UCF Research Foundation 1991
• Technology Transfer Program 1992
• Technology Incubator 1999
• Industry match grants program (SBIR External
  investment) 2000
• Establish Office of Economic Development 2002
• Technology Entrepreneurship
• Emerging Business Network 1996
• Excellence in Entrepreneurship 2000
• Boot-camps for Entrepreneurs 2000
• Entrepreneurship graduate course 2003
• Business Plan Competition 2004
• Technology Venture Lab 2004
• Established Center for Innovation and
  Entrepreneurship 2005
• Establishment of Angel fund 2006

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Creating New Business Opportunities
Proactive Tech Transfer
UCF Orange County Venture Lab
Technology Entrepreneurship Center
Solid Market Research
Entrepreneurship Programs
Savvy Entrepreneurs
NCIIA E-Teams
Business Plan Competitions
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Helping to Plant 1,000 Seeds

• Technological Entrepreneurship Center
• Entrepreneurship education
• Business plan showcases
• Technology Business Forum
• UCF Orange County Venture Lab
• 100 students and faculty, 7 companies started
• Small Business Development Center
• 6,000 individuals trained and counseled
• 78 business starts
• 904 jobs created or retained

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Help New and Small Companies Grow Strong
UCF Incubator
Disney/SBA National Entrepreneur Center
Florida HighTech Corridor
Seed / Gap Funding
Student Interns
Service Provider Support
Networking Events
SBIR Collaborations
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Early Stage Support

• UCF Technology Incubator
• 100 companies, 900 Jobs, 60K average salary
• Disney/SBA National Entrepreneur Center
• 26,000 clients, 214 startups served
• 2,400 jobs retained
• Florida High Tech Corridor
• Supporting workforce development
• Matching research funding
• 615 projects with 250 local companies worth
  130M

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Contacts

• Tom ONeal
• 407 882-1120
• oneal_at_mail.ucf.edu
• Associate Vice President for Research
  Commercialization
• Director UCF Incubator Program
• President, Florida Business Incubator Association

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Outline
Where (Context) Why (Purpose) Who (Admission
process / clients) What (Desired results) How
(Support provided)
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ContextNewfoundland Labrador
Where

• Population
• 500,000
• land area of California
• One university
• 18,500 students
• 85m research budget
• Econ. devt. mandate enshrined in
  University Act

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The Genesisof the Genesis Centre
Why

• Located in tech. transfer group
• Opened February 1997
• Technical support for knowledge-based businesses
• ? Preparing them for private investment

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Entrance to the Centre
Who

• Nfld./Lab. ventures
• Technology (knowledge) -based product
• High growth potential (multi-million revenue)
• ENTREPRENEURIAL ABILITY
• Selection Board - private sector

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Clients to Date (38)
Who
From community university

• IT (21)
• Engineering (9)
• Manufacturing (4)
• Biomedical (4)

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Desired Results
What

• Investment-readiness
• experienced management team
• active Board of Directors
• comprehensive business plan

? (venture) capital
graduation
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Results to Date
What

• 38 clients
• 23 graduates
• 7 current clients
• gt 11 million in private equity secured
• Over 660 employed
• Rutter Technologies Inc.
• public
• annual revenue gt72 million

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Resources Provided
How

• Technical
• Business
• Physical
• Intangible

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A. Technical Resources
How
Engineering the product

• Examples
• Manufacturing Technology Centre
• Videoconferencing (comm. mkting.)
• Lab space equip.
• Medical School
• Technical Services
• Business courses

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B. Business Resources
How
Engineering the company

• Human Resources
• Mentor
• Advisory Board
• Consultant
• Centre Staff

Events - Roundtables - Networking luncheons
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C. Physical Resources
How

• Office space, furniture equipment
• High-speed network
• Board meeting rooms
• Videoconferencing
• Computer AV equip.
• Admin. assistance

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D. Intangibles
How

• Credibility
• Synergy
• Vision
• Confidence

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SIFE Memorial

• Started incubator for students
• 2006 - Canadian Champions
• World Cup Round of 16
• 2007 - Canadian Champions
• World Cup 1st Runner-Up
• 2008 - Canadian Champions
• World Cup Champions!

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Campus IncubationConsortium

• Genesis Centre
• SIFE Incubator
• Faculty of Business
• Faculty of Engineering
• National Lab

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Genesis Centre -Results for University

• Good PR, locally nationally
• Strengthened network in local business community
• Strengthened univ. culture of innovation
  entrepreneurship
• Contribution towards ED mandate

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ContactInformation
Keelin OLeary Manager - Genesis Centre Director
National Business Incubation Assn. Canadian
Assn. Business Incubation
keelin_at_mun.ca 709-737-2365 www.genesis.mun.ca
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• USC/Columbia Technology Incubator
• Non-Traditional Economic Development

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The USC/Columbia Technology Incubator

• Founded in 1998 in the USCs College of
  Engineering Information Technology.

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Mission

• The mission of the USC/Columbia Technology
  Incubator is to increase the vitality of the
  regional economy by recruiting and nurturing
  start-up companies that advance technological
  development, employ highly skilled workers and
  contribute to the economic development of the
  area.

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Values we follow

• USCCTI believes in, and adheres to, the following
  core values within its structure, policies, and
  practices
• Integrity and Professionalism
• Teamwork and Loyalty
• Uncompromised Quality and Commitment to
  Excellence
• Innovation
• Respect and Diversity

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Progress since Incubator inception in 1998

• Growing from 3000 sq feet to a 40,000 sq foot
  facility
• Increasing the number of our supporters
• Improving our services
• Assisting in creating jobs (605 jobs to date)
• Increasing Average Salary per job to 48,7500

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This is truly a public private partnership that
is working

• How have we done this?
• City of Columbia
• The State of South Carolina
• Richland County
• Lexington County
• Corporate Partners (e.g. BellSouth, SCANA)
• Educational Institutions (e.g. USC, MTC)
• Private Partners (e.g. Tomlin Company, Inc.)

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Incubator in Numbers

• 73 companies admitted since 1998
• 605 Jobs created
• 171 Minority jobs created
• 43 Current Companies
• 20 Graduates