Research Parks and Universities - The Economic Drivers of Tomorrow

If the United States hopes to pull itself out of itsWhat's needed? Buckets of money, such as grants
economic quagmire, both in the short- and long-term,that award $25,000 to hundreds, if not thousands, of
the success of that effort may hinge on thepeople in each community each year to get ideas off
successful partnership of research parks andthe ground. We know most will fail. What we don't
universities. And with good reason. Research parksknow is which ones will be wildly successful or which
have proven to be valuable job creators andentrepreneurs will learn from their failure and come up
economic development machines in the past decade.with even better ideas.
While their success has largely been dependent on theSome critics would argue that the role of government
drive and perseverance of highly motivatedshouldn't compete with angel investors. True enough.
entrepreneurs and venture capitalists, cities andBut what if by earmarking dollars for the very
universities alike have aligned to develop environmentsbeginning of the company-generating process and
which foster such innovation and creativity. But there'staking the biggest risks, angel investors could reap the
still a lot of work to be done as numerous roadblockrewards of that strategy by then investing in those
stand in the way of accelerating these efforts.companies that emerge from the trial-by-fire with
Perhaps the biggest roadblock is simply a lack oflegitimate products and viable markets? In other words,
capital.let government money reduce some of the risk by
For all of the talk of implementing innovation "zones"investing in the riskiest of ventures - the unproven
that trigger an avalanche of great business ideas, thebusiness plan. That's win-win and a good use of
fact remains that money available to support andgovernment resources.
nurture entrepreneurial pursuits is woefully inadequate,How can universities and research parks help? By
particularly in a weak economy. Outside of a fewcreating a nurturing, positive environment. People like
locations such as Silicon Valley, Boston and perhapsbeing in and around universities. In addition to the
Austin, can any city or county (or state for thatnumerous opportunities to learn new skills, hear bold
matter) say they are adequately supporting theideas and take advantage of rich cultural resources,
growth of new ventures? Take the Triangle area ofuniversities foster a cross pollination of people with
North Carolina, for example. Considered by many todifferent backgrounds. This open avenue keeps ideas
be a hub of entrepreneurial activity in the state,flowing and innovation on the minds of the young and
especially in biotechnology, the amount of dollars readilyold alike. And by putting a research park inside the
available to entrepreneurs is minuscule. Not only areboundaries of a university, even greater cross
there few subsidized rent opportunities, but actual cashpollination occurs between researchers, students and
awards from grants or endowments don't measure upbudding entrepreneurs.
to the need.Centennial Campus, the research park and campus of
Some say that nurturing startups is a role best suitedNC State, is good example. Land that was initially
to angel investors and venture capitalists and that'ssought to expand the main campus turned into a vision
true - in a booming economy when money just seemsand bold experiment for government leaders in the
to flow out of the trees. But in bad times, the VCmid-1980s. The idea - to create a physical location for
community retreats and nurtures its current crop ofcollaboration to occur, which would result in
holdings or it chooses its opportunities even moreaccelerated innovation. And it has occurred, as
carefully. And angel investors - they're even worse off,companies start and leave on campus as they grow
having been singed by the drop in their portfolios. Theor stay put and take advantage of the research at
end result - few deals get made and those that aretheir doorstep.
done - call them "near sure things" that have a decentBut it's not enough, even at Centennial Campus, where
chance of success compared to the risk. To say thatincubator space only scratches the surface at
investors are risk averse in a down economy is anproviding needed space for the many would-be
understatement. Everybody hunkers down.entrepreneurs in the Triangle area. Dollars and space. If
Of course, many people would argue that regardlessthe U.S. is serious about investing in its future, then the
of the economy entrepreneurs will always find a wayplace to start is in the current and planned university
to start and build companies. That's true. Bootstrappingowned or operated research parks. Provide dollars for
can often be the best course for a startup, even if itstartups. Make subsidized rent available. Give them
starts out as an absolute necessity and then becomesevery chance to succeed.
a force of habit. But that won't cut if the U.S. as aAll large companies first started small. They first had
whole hopes to compete with China's boomingfive or six or seven employees and then grew.
economic activity or it hopes create meaningful,Universities and their research parks have an
sustainable jobs. The fact of the matter is - economicenormous role to play in that economic sandbox. We
policy at all levels of government - is not providing theshould be accelerating their contribution with
necessary "juice" for entrepreneurs to try to getmuch-needed capital to startups and entrepreneurs.
projects off the ground at an accelerated pace.