Urban Innovation21 s Inclusive Innovation Approach

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1 Urban Innovation21 s Inclusive Innovation Approach An economic development approach that is working to make sure that all communities are connected to the Pittsburgh Region s Economic prosperity. William Generett Jr., President and CEO Urban Innovation21 1

2 Background Information Urban Innovation21 is a unique public-private partnership that is supporting the growth of entrepreneurship in our region s innovation economy and connecting that growth to underserved communities and the residents that live in those communities. 2

3 The Pittsburgh Region s Economic Transformation Narrative Pittsburgh s New Economy: Today, the Pittsburgh region s prosperity is powered by five key industry sectors: advanced manufacturing, energy, financial and business services, health care and life sciences and information and communications technology. They are the result of an economic transformation launched in the early 1980s, as the steel industry restructured and the region lost more than 100,000 jobs. 3

4 Connecting Communities Left Behind Challenges: The region s economic transformation has not benefitted all communities. Despite our success, poverty exists throughout the region. This contrast can most readily be seen in Pittsburgh s diverse neighborhoods where high-income communities are directly adjacent to very low-income communities. 4

5 Inclusive Innovation Approach Goal Theory Model Pittsburgh Central Keystone Innovation Zone (PCKIZ) Incentives since 2007 KIZ Tax Credit Program $5.3M in direct cash assistance through the KIZ tax credit program PCKIZ Grant Program $462,000 in early stage grant funding to 24 PCKIZ companies PCKIZ Internship Program 600 paid internships Community Based Economic Development Raised over $4M in direct funding for Hill District Based Economic Development organizations PCKIZ Consortium Community partnerships to provide leadership & help coordinate economic development activities 5

6 Community Transformation Through Cluster Based Entrepreneurship Significant transformation that has occurred in the Greater Hill District from 2007 until today. PCKIZ has supported 106 companies since These companies include: The Resumator, NoWait, AllPoint Systems, Bit-x-Bit, Special Pathogens Laboratory, ShowClix, Ebenefits, Pikimal and dbmotion. 20 high growth companies have started up, relocated and are growing in the Hill District and Uptown Neighborhood image has changed for the better (i.e. business development and economic development can successfully occur) 6

7 Diverse internship and Workforce Development Training Programs 7

8 8

9 Creating an Inclusive Innovation Economy Successful Businesses that Support an Innovation Economy Ecosystem Successful Supply Chain Businesses that Connect to the Innovation Economy Successful Innovation Economy Businesses 9

10 Equitable Community Transformation Goal: Create a cluster of successful businesses owned by residents of underserved communities that are connected and profiting from our region s prosperity. Urban Innovation21 works with hundreds of community based entrepreneurs each year. Through its community based grant competitions Urban Innovation21 screens and provides approximately 30 of the most promising community based businesses with wrap around services. Successful Entrepreneurs are connected with contracts with small and large anchors. 10

11 Our Logic Model For Disciplined Business Creation CULTIVATE a pipeline of businesses via competitions and workshops MARKET AND ADVOCATE for local businesses FUND winning businesses and businesses showing promise from workshops MONITOR and hold businesses accountable for metrics and pro forma commitments SUPPORT businesses with wrap around services to minimize start up operating expense INCENTIVIZE complimentary businesses to locate in Homewood 11

12 Grace Security, LLC 12

13 Power59 Construction, LLC 13

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