2013 Report to the. Community
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1 2013 Report to the Community
2 Table of Contents 2 Letter to Our South Florida Stakeholders 3 Research Park Dashboard 4 Strategic Vision 6 Association of University Research Parks 8 Awards & Recognitions 9 Research Park Company News 13 The Technology Business Incubator 16 Research Park Partnerships 19 Economic Impact Study 21 The Research Park Team Vision To be recognized as Florida s premier R&D destination for innovative technology businesses to thrive. Mission To create and sustain the best R&D park environment, maximizing the academic talent and regional resources in South Florida, and to accelerate economic development and 1
3 Letter to Our South Florida Stakeholders Dear South Florida Stakeholders, It only takes a moment s review to see how successful 2013 was for the Research Park at Florida Atlantic University. Employment in the Research Park s companies has increased, the average salary rebounded from last year s level and our overall economic impact has increased 64% to approximately $450M. In 2013 we asked our startup companies in the Technology Business Incubator (TBI) to quantify their contribution for the first time, to get a better idea of our overall results. Between them and the Research Park s mature companies 43 new patent applications were filed with the US Patent & Trademark Office. The level of innovation here is impressive, made more so by the involvement of the 190 FAU graduates and interns who work day in and day out at these cutting-edge companies. Many of the companies in the Research Park and graduates of the TBI were recognized and honored for their work in technology in LinguaSys was profiled by the South Florida Business Journal as it graduated the TBI and grew into a second stage company in Boca Raton; the Journal also again honored Modernizing Medicine as one of the fastest growing companies in South Florida. Its CFO Karen O Byrne was honored as a top CFO and Influential Business Woman in our region, and its Chief Medical Officer Dr. Michael Sherling was recognized in the 2013 Class of 40 Under 40 achievers. This report highlights the successes that are the culmination of our strategic plan, and the Board of Directors has now embraced a new plan to take us to the next stage of our growth. We are planning to extend our presence within South Florida, to help more startup companies innovate in conjunction with our institutions of higher education and research. In addition we plan to embark on a research project with Florida Atlantic University and Florida Power & Light to test a new solar array will be an exciting year for the Research Park and for South Florida. The Research Park will host two important events in South Florida, bringing substantial outside interest to our region to learn best practices. In March we will host the Florida Business Incubation Association annual meeting, and in December we will host the Association of University Research Parks international conference. The latter will bring approximately 250 university, research and business leaders to Boca Raton to experience our great region. I hope you will join me in celebrating our successes, working for our future, and welcoming our guests. Yours, Bruce Rosetto, Esq Chairman Andrew Duffell President and CEO 2
4 The Research Park Dashboard Research Park Companies Employ: 1164 Technology Business Incubator Companies Employ: 143 Total Research Park Employment: 1307 Average Salary: $78, % increase from % higher than the average Palm Beach County salary $47,086 FAU Graduates and Interns Employed: 190 Patents Filed: 43 Investment Capital Raised: Research Park and TBI Company Annual Revenue: $30.9 million $2.5 billion Total Economic Impact: $449.1 Million 64% increase from 2012 Research Park Companies by Industry The Research Park occupies approximately 100 acres on its Boca Raton and Deerfield Beach campuses Biotechnology, Engineering Research & Services Development 6% 4% Financial Services 15% Research Park and TBI companies expect to create more than 325 new direct jobs in 2014 Healthcare and Healthcare IT 23% Miscellaneous Professional Services 8% Marketing Services 13% Manufacturing and Sales 6% Computer and Technology Services 25% 3
5 Strategic Vision In 1985, the Palm Beach and Broward county commissions took the visionary step to create the Florida Atlantic Research and Development Authority (FARDA), to create and sustain research parks in the two counties. The Research Park at Florida Atlantic University, with campuses in Deerfield Beach and Boca Raton, exists to provide a supportive environment in which companies engaged in the research and development of new and innovative products and services can thrive. The Research Park has repositioned itself in the wake of the economic downturn of and the revenue trends for our companies reflect this renewed focus on growing our brand. We have recruited successful and high profile companies involved in the development of industry-changing technologies and the reputation of the Research Park has been enhanced by renewing and deepening the links between our companies and the faculty at Florida Atlantic University. With the increased focus of the University on research commercialization and community engagement, the Research Park holds a unique position as a gateway to the private sector. As we look to the year ahead, a strong focus will be placed on finding appropriate users to develop our existing portfolio of land in both locations, to build upon our successes integrating our resources with those of Florida Atlantic University, to increase the scope and enhance the results of our Technology Business Incubator, and to continue developing the sense of place and community at the Research Park for all of our tenants and partners. RESEARCH PARK STATISTICS AS OF 12/31/13 Acres: 100 Square feet: 349,503 sf Additional entitlements: 535,000 sf Research Park tenants: 22 Technology Business Incubator tenants: 35 4
6 Strategic Vision: Jupiter Expansion The Research Park at Florida Atlantic University is scouting sites in Jupiter in hopes of building a biotech incubator for companies that emerge from Scripps Florida and Max Planck Florida, Florida s two most prominent biotech research institutes. A completed building of about 10,000 square feet of biotech incubator space is perhaps three years away. The idea is to build on the growth and success already achieved in the Boca Raton campus Technology Business Incubator by providing start-ups with affordable quarters, shared equipment and financial advice. While the Research Park controls roughly 100 acres in Boca Raton and Deerfield Beach, a foray into Jupiter would be the Research Park s first presence in northern Palm Beach County. The presence of Scripps Florida and Max Planck Florida in Jupiter presents a Max Planck in Jupiter, FL logical imperative for the Research Park to expand its portfolio of incubators. Given President and CEO of the Research Park, Andrew Duffell s involvement with bringing Max Planck to South Florida, and the existing affiliation between Florida Atlantic University s Jupiter Campus, an expansion of the Research Park s facilities is a natural next step. The genesis of this type of facility offers tremendous growth potential both for the Research Park as well as the local community and creates a strong incentive for new entrepreneurial bio-research firms to remain in South Florida. 5
7 The Association of University Research Parks In December 2013, the Research Park hosted the Association of University Research Parks (AURP) Southeast Regional Meeting. This year's Southeast Regional Meeting focused on a research park's physical development aspects, updates from the aviation and healthcare/it industries, as well as interactive discussion on current Research Park trends. Some of this year s speakers included AURP President Kevin T. Byrne, Research Park CEO Andrew Duffell, and Modernizing Medicine CEO and founder Daniel Cane. The Research Park was also selected to host the 2014 AURP International President and CEO Andrew Duffell with AURP president, Kevin Byrne at the Southeast Regional Conference held in Boca Conference. Each year, the AURP International Conference focuses on a theme, and this year s theme will be Regionalism for Innovation and Growth. The Research Park at Florida Atlantic University, as a leader in the dynamic South Florida economy is well positioned to highlight and demonstrate the importance of place as a driver for economic growth and innovation. At this annual meeting, research park executives gather to share best practices and build an exceptional network that can be called on throughout the year. Attendees will have the opportunity to witness Florida s initiatives to transform its economy, using scientific and technology research as a catalyst. 6
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9 Awards & Recognitions The Research Park at Florida Atlantic University received a Silver Excellence in Economic Development Award for its project in the category of Partnerships with Educational Institutions for communities with populations greater than 500,000 from the International Economic Development Council (IEDC). The honor was presented at an awards ceremony during the IEDC Annual Conference. The Excellence in Economic Development Awards recognize the Research Park at Florida Atlantic University as being one of the leading organizations in the industry for innovation, creativity and successful strategies, said Paul Krutko, IEDC chair. The Research Park uses creative solutions and inventive ideas, and offers other regions a wonderful example to learn and benefit from. The award represents an acknowledgment and appreciation for the Research Park at Florida Atlantic University s dedication to continuous growth within itself, as well as improving the industry overall. The Florida Economic Development Council (FEDC) named Andrew Duffell, President & CEO of the Research Park at Florida Atlantic University, the 2013 Young Professional of the Year at the its annual conference in Orlando, Florida. 8
10 Research Park Company News Life of Purpose, a treatment facility that provides a research-based solution for young adults who have had their academic careers disrupted by substance abuse, opened a 6,000 square foot facility in the Research Park in the Boca Raton campus in May This new tenant provides many exciting opportunities for new research and collaborations with Florida Atlantic University faculty and students in a range of fields from social work and counseling to psychology, nursing, and partnership with the College of Medicine. Even before joining the Research Park, Life of Purpose was already closely linked with Florida Atlantic University. The facility s clinical director, Andrew Burki, is an FAU alumnus and the facility s medical director, Dr. Charles Norris Jr. is a current professor at FAU s Charles E. Schmidt College of Medicine. The establishment of a company Life of Purpose s Facility in the Research Park that is combining innovative and cross-disciplinary research, dynamic business growth, and products that result in social welfare improvement represents a valuable new asset in the Research Park s growing portfolio of successful tenants. 9
11 Research Park Company News Electronic Payment Systems Global (EPS) joined the Research Park at Florida Atlantic University on the Boca Raton Campus. EPS moved into an approximately 12,000 square foot space in March EPS is using its proprietary technology to revolutionize the way health insurance claims are processed and creating new areas of health-care law. EPS is projecting revenue growth of more than 500% in the coming year and expects to hire more than 100 additional employees. Founder of EPS, Bobbie Celler, Esq. cites the close proximity to FAU as one of the main reasons for locating EPS at the Research Park. The natural alignment between FAU s dynamic Business Management, Accounting, Healthcare, and Technology programs and EPS Global s business interests represents tremendous new opportunities for future collaboration. EPS will offer paid co-op and internship opportunities to FAU undergraduate and graduate students, leading to practical real-world skill accumulation and providing a constant talent pool for new hires. Plans for future collaborations include partnerships with FAU s Master of Health Administration program to educate students on healthcare claims processing procedures and with FAU faculty and students to create new healthcare information systems and research into healthcare efficiency in hospitals. EPS Global s business and its relationship with the Research Park and Florida Atlantic University represents a model for aligning public and private interests in a practical way to create broad -based economic benefit while also tackling relevant social challenges. 10
12 Research Park Company News People s Trust Insurance People s Trust Insurance Company has located its new headquarters facility in the Research Park in Deerfield Beach. The company, which provides homeowner's insurance to more than 75,000 policyholders, is currently located in Boca Raton and employs 400 statewide. About 200 of those workers will move to a 40,000-square-foot space at the Research Park at Florida Atlantic University in Deerfield Beach and the company plans to hire about 100 additional full-time employees to staff the new location. Artist s Rendering of the redesigned People s Trust Insurance Building at the Deerfield Branch of the Research Park In Other News: University MRI University MRI s longtime affiliation with FAU continues with Dr. Leblang serving as an instructor of anatomy at Florida Atlantic University s Charles E. Schmidt College of Medicine 11
13 Research Park Company News Palm Beach Institute of Sports Medicine Dana van Pelt consulted with the Division of Research and its Technology Development Committee to evaluate the invention of an undergraduate student to measure range of motion in patients undergoing physical therapy. Pace Americas President and CEO, Tim O Loughlin was a keynote speaker in the Executive Forum for the Florida Atlantic University College of Business. President and CEO of Pace and FAU Graduate, Tim O Loughlin Pace acquired Aurora Networks, Inc. a leading developer and manufacturer of advanced, optical transport and access network solutions for broadband networks that support the convergence of video, data, and voice applications. Modernizing Medicine Modernizing Medicine Received South Florida Business Journal s Fast 100 award. The award recognizes Florida s fastest growing businesses and Modernizing Medicine ranked 3rd in this prestigious group. CEO of Modernizing Medicine Dan Cane was appointed to FAU s Board of Trustees by Governor Rick Scott. 12
14 The Technology Business Incubator The Technology Business Incubator (TBI) is a location and knowledge resource center for entrepreneurs emerging from Florida Atlantic University students, recent graduates and faculty as well as regional entrepreneurs. The TBI is currently home to 35 early stage high-tech companies as well as the New World Angels, the Florida Institute for Commercialization of Public Research, and newly arrived this year, the South Florida Technology Alliance (SFTA). The TBI has a good track record of successful tenants. Some of our noteworthy graduates include Linguasys, HiConversion, and Flagship Solutions Group. These businesses are thriving in the South Florida market and serve as an example of the power of business incubation to facilitate company growth. The benefits for TBI tenants include access to private conference rooms, access to Florida LambdaRail, and for emerging companies requiring advanced broadband capabilities, usage of the data room. The data room accommodates large servers for technology/research use and is wired with Gigabit Ethernet cabling and optic fiber. It includes a server room with back-up battery power and a generator available to host resident company servers. 13
15 The Technology Business Incubator In the spring of 2013, the Research Park at Florida Atlantic University expanded space for the Technology Business Incubator from 14,000 to 25,000 square feet in order to accommodate a rapidly growing need for additional space for current client companies and to house new companies. The expansion is paying divi- Server Room located in the Technology Business Incubator dends. Several TBI startups have made incredible technological advances, recruited prominent advisory board members, and secured $8.1 million in investment capital. The South Florida Technology Alliance (SFTA) joined the TBI. SFTA s move to the TBI is a winwin for both entities and offers distinct advantages: SFTA is in close proximity to and can draw on talent from multiple tech entrepreneurs, and TBI tenants can be mentored by SFTA s established tech experts. SFTA promotes the growth, success and awareness of the regional technology community. Through events, networking, programs and education, they provide South Florida s technology-related companies, academic institutions, entrepreneurs, governments and related organizations with an active forum to grow the business of technology in our region. By bringing SFTA in the TBI, the Research Park is building on its strategic infrastructure of mentors and resources for Incubator tenants. 14
16 Technology Business Incubator: Company Highlights TBI company, LinguaSys graduated from the Technology Business Incubator this year. CEO of LinguaSys, Brian Garr credits his company s beginnings with the Technology Business Incubator as being a crucial part of their long-term success. LinguaSys is an international provider of human language technologies, producing highly customized text analytics, translation and natural language user interface software. Their customer portfolio includes some of the largest global technology and mutual fund companies, commercial banks, as well as government and military organizations. LinguaSys unique translation technology has also attracted venture capital funding from Dallas Maverick s owner and television series Shark Tank owner, Mark Cuban. LinguaSys is an excellent example of how the Technology Business Incubator can nurture a startup, allowing a new venture to hone and perfect technology, and ultimately launch into a successful enterprise. LinguaSys success represents not only a strategic victory for the company and the Research Park but an inspiration for current and future residents of the Technology Business Incubator. Linguasys CEO Brian Garr, explaining how the company s translation software works 15
17 Expanding Partnerships: Florida Atlantic University The Research Park began a relationship with the Florida Atlantic University College of Business Economics Department. Partnering with Associate Dean of the College, Rupert Rhodd, the relationship is creating new linkages between the Research Park, its tenants, and students in the College of Business. All graduating Economics majors are required to take the senior capstone course, Cases in Economic Analysis. The final assignment for this course is a group project in which the students write a comprehensive case study of a private company by applying economic and competitive analysis. This year, graduating seniors conducted their analyses on three Research Park tenants: ATG, MobileHelp, and Modernizing Medicine. The students listened to presentations and conducted a Q&A with ATG s CEO Simon Kay, MobileHelp s President Rob Flippo, and Modernizing Medicine s CFO Karen O Byrne. By partnering with the Research Park, students are provided with opportunities to test their analytical skills through interaction with actual firms competing in the South Florida market. Through this project, the class is able to engage in dynamic learning, create networking opportunities for students, and strengthen ties between the University and the Research Park. 16
18 Expanding Partnerships: Florida Atlantic University Modernizing Medicine engaged in a new data project with students and faculty at FAU. The data project aimed to give physicians clinical decision support tools at the point of care based on research performed by the data mining and machine learning researchers at FAU and FIU. The Boca Raton Airport Authority collaborated with Florida Atlantic University s College of Civil, Environmental, and Geomatics Engineering (CEGE) professor Dan Meeroff to help design its new administration building. The students created a fully Leadership in Energy and Environmental Design (LEED) certified building. We were very happy with the results, said Janet Eaton Sherr, Executive Deputy Director for Landslide Operations and Facilities for Boca Airport Authority. They did a great job. While funding restrictions kept the Authority from incorporating the full design, several of the student s design features were incorporated into the plans for the final building. Future Site of the Boca Raton Airport Authority s Administration Building 17
19 Expanding Partnerships: TecnoCampus Mataró President of the Research Park, Andrew Duffell with Miquel Rey, President of the TecnoCampus Mataró Foundation The Research Park at Florida Atlantic University entered into a new affiliation with Tecnocampus in Mataró, Barcelona, Spain. The new partnership will establish a collaborative framework to enhance internationalism through the sharing of best practices, facilities, and resources with the end goal being economic growth and job creation The agreement will create opportunities for new and existing Research Park affiliated firms to expand into international markets by utilizing the same competitive advantages offered by the domestic Technology Business Incubator: office space, shared resources, and IT support, With a young and educated workforce, Spain represents a wealth of new entrepreneurial resources and the partnership itself represents a milestone in the Research Park s strategic plan to create an international network of incubators, entrepreneurs, and research facilities. SLID is a company being incubated in Mataró that has already visited the TBI. The TBI Is mentoring the company and helping it evaluate its market opportunity in Florida 18
20 Economic Impact Study The analysis was performed using the Regional Economic Model, Inc. (REMI) Policy Insight Model designed for the South Florida Economic Forecasting Partnership. This is a model that has been built and calibrated for the Southeast Florida region, which includes specific inputs and data for seven counties, including Palm Beach County. The customized county model utilizes data from the Bureau of Economic Analysis, the Bureau of Labor Statistics, the Department of Energy, the U.S. Census Bureau and other public sources. The businesses located in the Research Park at Florida Atlantic University listed in the preceding table, currently have 1307 direct full-time equivalent jobs with an average salary of $78,813. In order to illustrate the total impact of these businesses in the county, REMI developed a model with detailed employment, population, personal income and other data specific to Palm Beach County. REMI provides a year-by-year comparison of the effects of the businesses against a baseline control. REMI generates the regional baseline forecast and then uses the information to develop an alternative forecast that occurs due to the type and location of the businesses. The results in the table that follows measure/quantify both the direct and indirect impacts of these businesses on the economy of the county, regardless of whether it is projected to grow or contract. Year Employment (Direct & Indirect) 2,719 2,744 2,737 2,710 2,664 Personal Income ($) M M M M M Total Output ($) M M M M M Total M 2,719 jobs M 2,744 jobs M 2,737 jobs M 2,710 jobs M 2,664 jobs 19
21 Economic Impact Study Employment The businesses located within the Research Park at Florida Atlantic University generate an additional 1,412 jobs beyond the 1,307 jobs which result from direct employment by the Research Park businesses, for a total of 2,719 jobs in 2013 (base year of the analysis). The 1,412 indirect jobs are a result of both an intermediate effect (employment that satisfies demand for the provision of goods and services to the businesses) and an induced effect (resulting from the spending of disposable income). Output Total economic output in Palm Beach County is estimated to be $449.1 Million in base year Output measures the amount of production in dollars, including all intermediate goods purchased, as well as compensation and profits. This can be expressed as additional sales in the county. Similar to the concept of indirect employment, it provides a sense of the multiplier effect that takes place when businesses such as those in the Research Park are a part of the local economy. 20
22 Research Park Team 2014 Board of Directors Bruce Rosetto Esq, Chair Robert D. Parks, Ed.D., Vice-Chair Michael I. Daszkal, CPA, Treasurer Roxanna Trinka Bob Swindell Lonnie H. Maier, MBA John Newcomer, M.D. General Counsel Research Park Staff Andrew Duffell, President & CEO Christine Burres, Director of Operations Jonathan Grabis, Intern J. Freddy Perera, Esq 21
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