NBIA

Keelin O'Leary, Memorial University of NewfoundlandTom O’Neal, University of Central Florida

Joel Stevenson, University of South Carolina, Columbia

The role of University Affiliated Incubators in economic development strategies

Commercialization & Incubation at a UniversityCommercialization & Incubation at a UniversityCommercialization & Incubation at a UniversityCommercialization & Incubation at a University

Quality Relevant Quality Relevant Research Research

Quality Relevant Quality Relevant Research Research

Proactive Proactive Technology Technology

Transfer Transfer

Entrepreneurship Entrepreneurship

Licenses Licenses

UCF Spin offsUCF Spin offs

Leaders to create Leaders to create new companiesnew companies

Rich Academic Rich Academic Programs Programs

CommercializationCommercialization

New CompaniesNew Companies

Stronger existing companiesStronger existing companies

High Paying jobsHigh Paying jobs

PartnershipsPartnerships

Economic DevelopmentEconomic Development

Diversified EconomyDiversified Economy

Core Activities

ContributionInfluence Secondary affect

Idea Basic Research Applied ResearchPrototype Products

What do Incubators do?What do Incubators do?What do Incubators do?What do Incubators do?

MarketingMarketing SalesSales DistributionDistribution FinancialFinancial TechnicalTechnical IPIP CashCash ManagementManagement ManufacturingManufacturing ContactsContacts

MarketingMarketing SalesSales DistributionDistribution FinancialFinancial TechnicalTechnical IPIP CashCash ManagementManagement ManufacturingManufacturing ContactsContacts

Incubator staff

Community Political support

Technical Expertise

Business Expertise

Networking

Regional Professional Service Providers

University resources

Focus

Tactics

Strategy

Connectivity

New Client Identify and fill in the holes

Add Value

Graduate Companies poised for success

MarketingMarketing SalesSales DistributionDistribution FinancialFinancial TechnicalTechnical IPIP CashCash ManagementManagement ManufacturingManufacturing ContactsContacts

Why IncubationWhy IncubationWhy IncubationWhy Incubation

87% of incubator graduates are still in business87% of incubator graduates are still in business vs 80% that fail during the first 5 yearsvs 80% that fail during the first 5 years

84% of incubator graduates stay in their 84% of incubator graduates stay in their communities and continue to provide a return to communities and continue to provide a return to their investors. their investors.

For every $1 of estimated annual public For every $1 of estimated annual public investment, clients and graduates incubators investment, clients and graduates incubators generate approximately $45 in local tax generate approximately $45 in local tax revenue. revenue.

Every 50 jobs created by an incubator client Every 50 jobs created by an incubator client generate another 25 jobs in the community. generate another 25 jobs in the community.

Source: National Business Incubator AssociationSource: National Business Incubator Association

87% of incubator graduates are still in business87% of incubator graduates are still in business vs 80% that fail during the first 5 yearsvs 80% that fail during the first 5 years

84% of incubator graduates stay in their 84% of incubator graduates stay in their communities and continue to provide a return to communities and continue to provide a return to their investors. their investors.

For every $1 of estimated annual public For every $1 of estimated annual public investment, clients and graduates incubators investment, clients and graduates incubators generate approximately $45 in local tax generate approximately $45 in local tax revenue. revenue.

Every 50 jobs created by an incubator client Every 50 jobs created by an incubator client generate another 25 jobs in the community. generate another 25 jobs in the community.

Source: National Business Incubator AssociationSource: National Business Incubator Association

Kinds of IncubatorsKinds of IncubatorsKinds of IncubatorsKinds of Incubators Technology IncubatorsTechnology Incubators

University AffiliatedUniversity Affiliated

Mixed UseMixed Use

EmpowermentEmpowerment

Niche industryNiche industry

Kitchen IncubatorsKitchen Incubators

ArtsArts

Construction Construction

Technology IncubatorsTechnology Incubators

University AffiliatedUniversity Affiliated

Mixed UseMixed Use

EmpowermentEmpowerment

Niche industryNiche industry

Kitchen IncubatorsKitchen Incubators

ArtsArts

Construction Construction

Finding an IncubatorFinding an IncubatorFinding an IncubatorFinding an Incubator

Go to the national or State Web site firstGo to the national or State Web site first

www.nbia.orgwww.nbia.org

www.fbiaonline.orgwww.fbiaonline.org

Ask you local Economic Development Ask you local Economic Development

OrganizationOrganization

Go to the national or State Web site firstGo to the national or State Web site first

www.nbia.orgwww.nbia.org

www.fbiaonline.orgwww.fbiaonline.org

Ask you local Economic Development Ask you local Economic Development

OrganizationOrganization

Getting into an IncubatorGetting into an IncubatorGetting into an IncubatorGetting into an Incubator Incubators normally have selection processIncubators normally have selection process

ApplicationApplication

InterviewInterview

May or may not require business planMay or may not require business plan

Usually require full time commitmentUsually require full time commitment

UCF Technology Incubator requires UCF Technology Incubator requires

participation in a 7 session program called participation in a 7 session program called

“Excellence in Entrepreneurship”“Excellence in Entrepreneurship”

Incubators normally have selection processIncubators normally have selection process

ApplicationApplication

InterviewInterview

May or may not require business planMay or may not require business plan

Usually require full time commitmentUsually require full time commitment

UCF Technology Incubator requires UCF Technology Incubator requires

participation in a 7 session program called participation in a 7 session program called

“Excellence in Entrepreneurship”“Excellence in Entrepreneurship”

ExpectationsExpectationsExpectationsExpectations Incubation is a process, not a placeIncubation is a process, not a place

Don’t expect too much. This is support, Don’t expect too much. This is support,

coaching – not life supportcoaching – not life support

You’re still in chargeYou’re still in charge

Reduces riskReduces risk

Usually allows you to grow or contractUsually allows you to grow or contract

Adds credibility - to a pointAdds credibility - to a point

Usual term is 3 – 5 yearsUsual term is 3 – 5 years

Incubation is a process, not a placeIncubation is a process, not a place

Don’t expect too much. This is support, Don’t expect too much. This is support,

coaching – not life supportcoaching – not life support

You’re still in chargeYou’re still in charge

Reduces riskReduces risk

Usually allows you to grow or contractUsually allows you to grow or contract

Adds credibility - to a pointAdds credibility - to a point

Usual term is 3 – 5 yearsUsual term is 3 – 5 years

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Incubators often fill gaps in a region’s Eco Incubators often fill gaps in a region’s Eco SystemSystemIncubators often fill gaps in a region’s Eco Incubators often fill gaps in a region’s Eco SystemSystem

Steeples of Excellence

Economic Development

Research, IP Creation & Management

Innovation

Realization

Result

Commercialization Licensing / Start-up / Incubation

Areas addressed by Incubator

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Center of Excellence

The underlying foundation is keyThe underlying foundation is keyThe underlying foundation is keyThe underlying foundation is key

SponsoredResearch

IP Creation &Management

Strategy DevelopmentAssessment / Marketing/Technology Maturation

Commercialization Licensing / Start-up / Incubation

Economic Development

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

UCF Incubation ProgramUCF Incubation ProgramUCF Incubation ProgramUCF Incubation Program

UCFUCF 50,000 Students50,000 Students $130M in Research (Med School just started)$130M in Research (Med School just started)

Orlando, Known for what?Orlando, Known for what?

UCFUCF 50,000 Students50,000 Students $130M in Research (Med School just started)$130M in Research (Med School just started)

Orlando, Known for what?Orlando, Known for what?

Current Incubator ClientsCurrent Incubator ClientsCurrent Incubator ClientsCurrent Incubator Clients

100 Companies served 100 Companies served Created more than Created more than

900 jobs900 jobs Average salary of Average salary of

$60,000$60,000 Raised $200M+ in Raised $200M+ in

venture capitalventure capital Generate more than Generate more than

$500M in annual $500M in annual revenuesrevenues

100 Companies served 100 Companies served Created more than Created more than

900 jobs900 jobs Average salary of Average salary of

$60,000$60,000 Raised $200M+ in Raised $200M+ in

venture capitalventure capital Generate more than Generate more than

$500M in annual $500M in annual revenuesrevenues

0

20

40

60

80

100

120

140

Companies Graduates

Number of Clients/Graduates

GoalsGoals Expand high tech industry in Central FloridaExpand high tech industry in Central Florida Help UCF meet its goal to be America’s leading Help UCF meet its goal to be America’s leading

partnership universitypartnership university Facilitate tech transfer, collaboration and Facilitate tech transfer, collaboration and

economic development in the technology sectoreconomic development in the technology sector Provide business training and support to:Provide business training and support to:

Technology Start-UpsTechnology Start-Ups University spin-offsUniversity spin-offs Existing companies, restartingExisting companies, restarting Existing company with new project/productExisting company with new project/product SBIR / STTR start-upsSBIR / STTR start-ups

ServicesServicesServicesServices

On-site business coaching and mentoringOn-site business coaching and mentoring Entrepreneurship curriculum, seminarsEntrepreneurship curriculum, seminars Access to community leaders and an exceptional Access to community leaders and an exceptional

advisory boardadvisory board Adaptable space, flexible leasesAdaptable space, flexible leases Shared resourcesShared resources

Reception, conference rooms, business library, Reception, conference rooms, business library, high speed internet access, work / break high speed internet access, work / break rooms, office equipmentrooms, office equipment

Networking, close proximity to UCF technology, Networking, close proximity to UCF technology, expertiseexpertise

Access to interns and graduate student support Access to interns and graduate student support

On-site business coaching and mentoringOn-site business coaching and mentoring Entrepreneurship curriculum, seminarsEntrepreneurship curriculum, seminars Access to community leaders and an exceptional Access to community leaders and an exceptional

advisory boardadvisory board Adaptable space, flexible leasesAdaptable space, flexible leases Shared resourcesShared resources

Reception, conference rooms, business library, Reception, conference rooms, business library, high speed internet access, work / break high speed internet access, work / break rooms, office equipmentrooms, office equipment

Networking, close proximity to UCF technology, Networking, close proximity to UCF technology, expertiseexpertise

Access to interns and graduate student support Access to interns and graduate student support

Evolution (UCF Example)Evolution (UCF Example)Evolution (UCF Example)Evolution (UCF Example) Program/ActivityProgram/Activity StartedStarted

Central Florida Research Park 100 companies, 10,000 jobsCentral Florida Research Park 100 companies, 10,000 jobs 19811981

UCF Research FoundationUCF Research Foundation 19911991

Technology Transfer ProgramTechnology Transfer Program 19921992

Technology IncubatorTechnology Incubator 19991999

Industry match grants program (SBIR External investment)Industry match grants program (SBIR External investment) 20002000

Establish Office of Economic DevelopmentEstablish Office of Economic Development 20022002

Technology Entrepreneurship:Technology Entrepreneurship:

Emerging Business NetworkEmerging Business Network 19961996

Excellence in Entrepreneurship Excellence in Entrepreneurship 20002000

Boot-camps for EntrepreneursBoot-camps for Entrepreneurs 20002000

Entrepreneurship graduate courseEntrepreneurship graduate course 20032003

Business Plan CompetitionBusiness Plan Competition 20042004

Technology Venture LabTechnology Venture Lab 20042004

Established Center for Innovation and EntrepreneurshipEstablished Center for Innovation and Entrepreneurship 20052005

Establishment of Angel fundEstablishment of Angel fund 20062006

Program/ActivityProgram/Activity StartedStarted

Central Florida Research Park 100 companies, 10,000 jobsCentral Florida Research Park 100 companies, 10,000 jobs 19811981

UCF Research FoundationUCF Research Foundation 19911991

Technology Transfer ProgramTechnology Transfer Program 19921992

Technology IncubatorTechnology Incubator 19991999

Industry match grants program (SBIR External investment)Industry match grants program (SBIR External investment) 20002000

Establish Office of Economic DevelopmentEstablish Office of Economic Development 20022002

Technology Entrepreneurship:Technology Entrepreneurship:

Emerging Business NetworkEmerging Business Network 19961996

Excellence in Entrepreneurship Excellence in Entrepreneurship 20002000

Boot-camps for EntrepreneursBoot-camps for Entrepreneurs 20002000

Entrepreneurship graduate courseEntrepreneurship graduate course 20032003

Business Plan CompetitionBusiness Plan Competition 20042004

Technology Venture LabTechnology Venture Lab 20042004

Established Center for Innovation and EntrepreneurshipEstablished Center for Innovation and Entrepreneurship 20052005

Establishment of Angel fundEstablishment of Angel fund 20062006

Creating New Business OpportunitiesCreating New Business Opportunities

Proactive Tech TransferProactive Tech Transfer

UCF Orange County Venture Lab

UCF Orange County Venture Lab

Technology Entrepreneurship Center

Technology Entrepreneurship Center

Savvy EntrepreneursSavvy Entrepreneurs

Solid Market ResearchSolid Market Research

NCIIA E-TeamsNCIIA E-Teams

Entrepreneurship ProgramsEntrepreneurship Programs

Business Plan CompetitionsBusiness Plan Competitions

Helping to Plant 1,000 SeedsHelping to Plant 1,000 SeedsHelping to Plant 1,000 SeedsHelping to Plant 1,000 Seeds Technological Entrepreneurship Technological Entrepreneurship

CenterCenter Entrepreneurship educationEntrepreneurship education Business plan showcases Business plan showcases Technology Business ForumTechnology Business Forum

UCF Orange County Venture Lab UCF Orange County Venture Lab 100 students and faculty, 100 students and faculty,

7 companies started7 companies started

Small Business Development CenterSmall Business Development Center 6,000 individuals trained and counseled6,000 individuals trained and counseled 78 business starts78 business starts 904 jobs created or retained904 jobs created or retained

Technological Entrepreneurship Technological Entrepreneurship CenterCenter Entrepreneurship educationEntrepreneurship education Business plan showcases Business plan showcases Technology Business ForumTechnology Business Forum

UCF Orange County Venture Lab UCF Orange County Venture Lab 100 students and faculty, 100 students and faculty,

7 companies started7 companies started

Small Business Development CenterSmall Business Development Center 6,000 individuals trained and counseled6,000 individuals trained and counseled 78 business starts78 business starts 904 jobs created or retained904 jobs created or retained

Help New and Small Companies Grow Strong

Help New and Small Companies Grow Strong

UCF IncubatorUCF IncubatorUCF IncubatorUCF Incubator Disney/SBA National Disney/SBA National Entrepreneur CenterEntrepreneur CenterDisney/SBA National Disney/SBA National Entrepreneur CenterEntrepreneur Center

Florida HighFlorida HighTech CorridorTech CorridorFlorida HighFlorida HighTech CorridorTech Corridor

Student InternsStudent Interns

Seed / Gap FundingSeed / Gap Funding

Networking EventsNetworking Events

Service Provider Support

Service Provider Support

SBIR CollaborationsSBIR Collaborations

Early Stage SupportEarly Stage SupportEarly Stage SupportEarly Stage Support UCF Technology IncubatorUCF Technology Incubator

100 companies, 900 Jobs, $60K average 100 companies, 900 Jobs, $60K average

salarysalary

Disney/SBA National Entrepreneur CenterDisney/SBA National Entrepreneur Center

26,000 clients, 214 startups served26,000 clients, 214 startups served

2,400 jobs retained2,400 jobs retained

Florida High Tech CorridorFlorida High Tech Corridor

Supporting workforce development Supporting workforce development

Matching research fundingMatching research funding

615 projects with 250 local companies 615 projects with 250 local companies

worth $130M worth $130M

UCF Technology IncubatorUCF Technology Incubator

100 companies, 900 Jobs, $60K average 100 companies, 900 Jobs, $60K average

salarysalary

Disney/SBA National Entrepreneur CenterDisney/SBA National Entrepreneur Center

26,000 clients, 214 startups served26,000 clients, 214 startups served

2,400 jobs retained2,400 jobs retained

Florida High Tech CorridorFlorida High Tech Corridor

Supporting workforce development Supporting workforce development

Matching research fundingMatching research funding

615 projects with 250 local companies 615 projects with 250 local companies

worth $130M worth $130M

ContactsContactsContactsContacts

Tom O’NealTom O’Neal

407 882-1120407 882-1120

[email protected]@mail.ucf.edu

Associate Vice President for Research &Associate Vice President for Research &CommercializationCommercialization

Director UCF Incubator ProgramDirector UCF Incubator Program

President, Florida Business Incubator AssociationPresident, Florida Business Incubator Association

Tom O’NealTom O’Neal

407 882-1120407 882-1120

[email protected]@mail.ucf.edu

Associate Vice President for Research &Associate Vice President for Research &CommercializationCommercialization

Director UCF Incubator ProgramDirector UCF Incubator Program

President, Florida Business Incubator AssociationPresident, Florida Business Incubator Association

Where (Context)

Why (Purpose)

Who (Admission process / clients)

What (Desired results)

How (Support provided)

Outline

Context:Newfoundland &

Labrador• Population– ~500,000– land area of California

• One university– 18,500 students– $85m research budget

• Econ. devt. mandate enshrined in University Act

• Located in tech. transfer group• Opened February 1997• Technical support for knowledge-based

businesses

Preparing them for private investment

The Genesisof the Genesis

Centre

• Nfld./Lab. ventures:1. Technology (knowledge) -

based product2. High growth potential

(multi-million $ revenue)3. ENTREPRENEURIAL

ABILITY

• Selection Board - private sector

Entrance to the Centre

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

(4)• Biomedical (4)

Clients to Date (38)From community & university:

• Investment-readiness:– experienced management

team– active Board of Directors– comprehensive business plan

$ (venture) capital

Desired Results

graduation

• 38 clients– 23 graduates– 7 current clients> $11 million in private equity

secured

• Over 660 employed

• Rutter Technologies Inc.– public– annual revenue >$72 million

Results to Date

A. TechnicalB. BusinessC. PhysicalD. Intangible

Resources Provided

Examples:• Manufacturing Technology

Centre• Videoconferencing (comm. &

mkting.)• Lab space & equip.• Medical School• Technical Services• Business courses

A. Technical Resources“Engineering the product”

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

Events- Roundtables- Networking

luncheons

“Engineering the company”

B. Business Resources

C. Physical Resources• Office space, furniture &

equipment• High-speed network• Board & meeting rooms• Videoconferencing• Computer & AV equip.• Admin. assistance

• Credibility

• Synergy

• Vision

• Confidence

D. Intangibles

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!

Campus IncubationConsortium

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

Genesis Centre -Results for University

1. Good PR, locally & nationally2. Strengthened network in

local business community3. Strengthened univ. culture

of innovation & entrepreneurship

4. Contribution towards ED mandate

ContactInformatio

nKeelin O’LearyManager - Genesis Centre

Director –National Business Incubation

Assn.Canadian Assn. Business

[email protected]

www.genesis.mun.ca

USC – Technology

USC/Columbia Technology USC/Columbia Technology IncubatorIncubator

Non-Traditional Economic Non-Traditional Economic DevelopmentDevelopment

USC – Technology

The USC/Columbia The USC/Columbia Technology IncubatorTechnology Incubator

Founded in 1998 in the USC’s College of Engineering & Information Technology.

USC – Technology

MissionMission

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.

USC – Technology

Values we followValues 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

USC – Technology

Progress since Incubator Progress since Incubator inception in 1998inception 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

USC – Technology

This is truly a public private This is truly a public private partnership that is workingpartnership 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.)

USC – Technology

Incubator in NumbersIncubator in Numbers

73 companies admitted since 1998

605 Jobs created

171 Minority jobs created

43 Current Companies

20 Graduates