Migration: Maine: +6.3/ 1,000. El Salvador -3.5/ 1,000
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1 Business Incubation: Concepts and Key Players Tech Parks, Centers & Universities Seed Capital & Government Support Case Study: Maine Eric Howard Executive Director Fulbright Academy of Science & Technology
2 El Salvador State of Maine 20,720 sq.km 80,277 sq.km. 7.0 million people 1.3 million Median age: 22 yrs. 41 yrs; (US=36)
3 Photo Mike Woodward Cold, Flat, 88% Forest
4 Demographics & Migration Ages : 205, : 158, Generation X is smaller 2. Out-migration after high school % of total population lowest in US
5 Maine A Nice Place to Live Migration: Maine: +6.3/ 1,000 El Salvador -3.5/ 1,000
6 Necessary Components for Economic Development Have a Nice Place to Life Skilled entrepreneurs & employees Physical Environment / Infrastructure Local Climate for Investment Nice has many meanings Urban jungle - New York City Endless suburbs - Silicon Valley
7 My work in the Wood Industry Manufacturers of Furniture Wood Turnings Log Homes Tooth picks The 3 M s Manufacturing Management Marketing Photo Sugarwood Gallery
8 I m a Scientist by training Zoologist might ask: Why did these species evolve into this form? Source: National Geographic
9 Social Scientist / Economist Why does the economy have this form? How can government enhance business growth and retain entrepreneurs and young people? Dallas-Fort Worth, TX Source: Texas Wesleyan University
10 Factors influencing economy Location & natural resources Political & legal systems Land tenure & financial systems Human resources & demographics Stability or predictable change Physical infrastructure Some factors can be changed by government policy or private action
11 Example: Two Maine Firms Innovation & New Products Burt s Bees (1984) Value & Customer Service LL Bean (1912)
12 #1 - New Products: Burt s Bees 1983 idea to sell candles made from beeswax, a waste product from the production of honey ,000 candles, plus some personal care products (soap)
13 Growth Period Not in Maine Year 10 in 1993 Company leaves Maine; moves to business- and community-friendly North Carolina Year /99 - $8 million in sales 100 products in 4,000 stores add e-commerce & relocate to an even larger community (more employees) Now $250 million in sales 30,000 retail outlets, in U.S., U.K., Ireland, Canada, Hong Kong, and Taiwan.
14 Corporate Valuation 20 years after start & 10 after departure: 2003 Valuation: $220 million Founders sell 80% of firm for $177 million to a NYC venture capital firm. 24 years after start 2007 valuation: $925 million Sold last month to Chlorox for $925 million in cash, increase of $700 million.
15 #2 - Customer Service: LL Bean Maine s best known company Clothing & outdoor gear Online, Retail, Mail Order "Sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more." - Leon Leonwood Bean, 1912
16 LL Bean $1.5 billion in annual sales 3.5 million store visitors/year Ship 16 million packages/year (50,000/day average) 985,000 customer contacts during the second week of December. Shipping 200,000 packages/day in the Christmas rush.
17 Working for LL Bean 4,300 year-round round employees 6,000 additional staff in Nov./Dec. Portland area population is 230,000 5 seasonal call centers around the state Customers expect Maine-based staff Computer literacy is necessary.
18 Learning Technology Initiative 243 Middle schools Maine s seventh- and eighth-grade grade students each got a laptop in 2002 Cost is about $10 million/year 38,000 new ibook laptops plus training and technical support
19 Equality among Citizens The days are gone when our kids could learn math and reading and go out into the world and be successful. Whether going on to a four-year college, or to a job in an automotive shop, our students need problem- solving skills, the ability to research, experience working in teams, and other critical 21st century skills. Maine Commissioner for Education
20 Necessary Components Skilled entrepreneurs & employees Physical Environment / Infrastructure Local Climate for Investment
21 A Framework for Development Business Parks Tech Centers & Universities Seed Capital & Support for innovation and growth
22 Research Infrastructure A Magnet for the Best and Brightest Outstanding researchers with diverse cultures to create highly inventive environment Bringing Technology From the labs to Your Daily Experience experimental place to innovate and create ideas for R&D and new applications Singapore s most powerful Computers driving innovations Science meets business Partnering industry in joint development of next generation technologies Fusionopolis-Singapore Phase 1: $550+ million Area of Phase 1 : 120,000 m2 Area of Phase 2 : 103,688m2 No. of Researchers : > 1600
23 Business Incubation Centers Independent entities Private sector Affiliated with universities Government sponsored Examples from Chile, Colombia, Israel Texas, European Union, Costa Rica
24 Business Support in Maine Physical Infrastructure: Small-scale incubators University research & testing facilities Intellectual & Financial: Community College System Maine Investment Exchange: MIX Forum Maine Technology Institute Maine Patent Program
25 Physical Infrastructure Contracting out the R&D R&D Lab space for rent Low-cost office space
26 Intellectual Infrastructure Schools Maine Laptop Initiative Community Colleges Adult education Specialized training Low barrier to entry Universities Research Specialized training
27 Seed Capital & Govt. Support Maine Technology Institute Seed grants of up to $12,500 6 times/year, 100% match Development Awards up to $500,000 3 times/year Cluster Enhancement up to $200,000 Open applications, 100% match 6 employees 80 volunteers conduct the reviews 148 projects, $5.9 million (FY06)
28 Seed Capital isagacity started in Silicon Valley Software to remotely analyze process efficiency Crossrate Technology started in PA Radio navigation devices (GPS+) The Sunrise Guide Coupons and info on sustainable living Concept from Oregon, applied to Maine
29 Source: Maine Community College System Invest in People
30 People are critical to success
31 Thank you Prepared by the Fulbright Academy of Science & Technology (FAST). FAST is an global organization created by Fulbright Scholars to support international collaboration and advancement of science, technology, business and government. FAST is not affiliated with the US Dept. of State or the Fulbright Exchange Program.
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