Mississippi State University

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1 The Role of Mississippi State University in Helping to Grow the State s Economy

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3 Economic Impact of Research The Role of Mississippi State University in Helping to Grow the State s Economy The role of Mississippi State University in helping to grow and strengthen the state s economy can be identified and measured in several ways. Ultimately, a major goal of the university is to help retain, recruit, and create high-tech and high-wage jobs. The purpose of this report is to illustrate the university s contributions to local and regional economic development in the state. The report includes information regarding several components; a pilot Economic Development Assistance Network (EDAN) initiative, economic impact of university research funding, analysis of university-industry collaborations, innovation-based job creation data, industry recruitment assistance, and an overview of the Thad Cochran Research Technology and Economic Development Park. Economic Development Assistance Network (EDAN) Currently, the MSU Office of Research and Economic Development is piloting its Economic Development Assistance Network (EDAN) that is designed to provide stakeholders a user-friendly in-reach system that serves several functions. First, it increases awareness of the university s vast research and outreach programs. Second, it identifies a central point of contact for connecting to target resources and services. Finally, it provides rapid responses to inquiries. Initial assessments of the EDAN have been extremely positive. Over the years, officials at local, regional, and state levels have looked for clear indicators of the impact of university research funding on the economy. Examples of economic impacts of universities can be found in the literature for selected states. The results of a recent economic impact model of Mississippi State University s research funding showed that for every $1 million increase in funding sustained over period , the local area could expect an estimated 22 new jobs with an average salary of $36,825. In FY11, the university received more than $167 million in grants and contracts from federal agencies and private companies. Based on the results of the REMI impact model, it is estimated that MSU research funding impact is potentially equivalent to creating between 3,000 to 4,000 jobs in the state, at the average salary level listed above. Industry Collaborations In FY11, Mississippi State University centers and institutes were active providers of a broad array of assistance to industries across the state, nation, and globe. Data for this section of the report were gleaned from a survey of university centers and institutes. In FY11, there were 39 eligible units. Each unit director was asked to complete and return a survey

4 responding to the following questions/items: 1) Name of Company, 2) Location of Company, 3) Number of employees impacted, and 4) Dollar value of the services provided. Of the 39 units surveyed, seven (18%) indicated having industry collaborations during the specified time period. The State Chemical Laboratory analyzes thousands of samples for companies and other entities annually. Its data was not included in this report. Another eight units responded but did not provide relevant data resulting in a 38.5% response rate. Major Industry Recruitment The Results The results of the data analysis show that Mississippi State University s industry outreach resulted in 401 completed collaborations that spanned the globe, with projects in both China and Canada. Domestically, projects with industry customers were completed in 13 states: Mississippi, Utah, Wisconsin, California, Maryland, Texas, Tennessee, Alabama, Virginia, Georgia, Florida, Indiana, and Louisiana. By far, Mississippi companies benefited most from collaborations with university centers and institutes. Assistance was provided throughout the state. The number of employees impacted was significant in local communities around Mississippi with projects in 59 out of 82 counties (See figure 1, page 6). Industry outreach was provided in a number of areas including but not limited to mobility, renewable energy, problem-solving, wastewater systems, workforce development, lean manufacturing, health and safety consultation, marketing, new product development and testing, and plant layout. Unfortunately, missing data limited the analysis of responses to the other questions/items included in the survey. However, it should be noted that the Center for Advanced Vehicular Systems Extension Office collaborations are evaluated by a third-party contractor as part of the United States Department of Commerce s Manufacturing Extension Program (MEP). The unit has collaborated with numerous companies, and its impact, over the last five years, has been estimated to average approximately $1 billion annually. Since the late 1990s, Mississippi State University has worked closely with local, state, and federal officials to help recruit industries and foreign domestic investments to the state. High-profile success stories include Nissan, American Eurocopter, PACCAR, GE-Aviation, Stark Aerospace, and Aurora Flight Sciences. (See figure 2, page 7) Between FY10 and FY11, the university participated in the recruitment of Twin Creek, a next-generation solar panel manufacturer, and KiOR, a biomass-based renewable energy company. Cumulatively, these projects have resulted in thousands of new jobs and billions in capital investments in the state. Participation in the recruitment process is by invitation only. Routinely, senior university administrators, academic colleges, research centers, and other entities are included in the recruitment process. Attractive university-based incentives include collaborations with a leading research university and access to faculty, student interns, alumni, and state-of-the-art equipment. Entrepreneurship and Technology Commercialization Small- and medium-size businesses are the economic engines of local and regional economies. Drivers of entrepreneurship and technology commercialization include strong research programs, motivated faculty and student entrepreneurs, a supportive entrepreneurial ecosystem, and access to affordable capital. Recent data show that MSU faculty and students are actively engaged in the creation of startup companies in the state. Since FY94, MSU has generated 33 startups. With relatively higher median salaries, MSU startups employed nearly 100 high-tech workers in FY10. Companies have emerged in several business sectors, including renewable energy, biotechnology, social media, defense, power electronics, geospatial software, and semiconductors.

5 Thad Cochran Research, Technology and Economic Development Park Several new projects were initiated in FY11 to increase the park s national visibility and competitiveness. The master plan was updated to include an additional 45 acres along with the infrastructure layout for the phase II expansion. A contract for the new Technology Boulevard that will connect Highway 182 to the current loop road in the park was awarded. In addition, to accommodate II-VI Inc. s growth in the area, construction was initiated on a 20,000 square foot building to include 10,000 square feet for II-VI Inc., 8,500 square feet for a business incubator, and 1,500 square feed for a food service vendor. The CONCLUSION The Thad Cochran Research, Technology and Economic Development Park continues to serve as a catalyst for economic development in the region. The park is an outgrowth of collaborations between the federal government, city, county, and the university and it is the most competitive research park in the state. The initial footprint of the park was comprised of approximately 220 acres. In FY11, there were eight buildings totaling almost 400,000 square feet of research and office space in the park. Buildings currently located inside the park include the Institute for Clean Energy Technology, High Performance Computing Collaboratory, Center for Advanced Vehicular Systems, Tennessee Valley Authority, Sitel, Multitenant Building, Ralph E. Powe Center for Innovative Technology, and the Industry Partners building. In addition, the park is home to a growing number of businesses, including SemiSouth Laboratories, Camgian Microsystems, HBM ncode Federal LLC, Renasant Bank, Spatial Information Solutions, and II-IV Inc. A survey of companies in the park revealed that they had private capital investments in excess of $80.2 million. Even more promising is the finding that 12 of the 16 park tenants provided median income data with a range between $35,000 and $114,000. It should be noted that the median household income for Mississippi and the United States is $37,881 and $51,914, respectively. Mississippi State University s research enterprise and economic development outreach programs are vital to the growth and sustainability of regional economies in the state. By working with local, state, and federal economic development officials, university centers and institutes continue to help retain, recruit, and create jobs across the state. For additional information, please contact: Dr. David Shaw Vice President for Research and Economic Development dshaw@research.msstate.edu Office (662) Allen Hall, Room 617 Dr. Melvin Ray Associate Vice President for Economic Development Melvin@research.msstate.edu Office (662) Allen Hall, Room 617

6 >> FIGURE 1

7 COMPANY YEAR RECRUITED INVESTMENT # OF JOBS PAY RATE PRODUCTS II-VI 2012 $18,400, $55,400/yr Laser Optic Materials, Optics, Components, Electro-optical products, Radiation detection devices GreenTech Automotive 2011 $1,000,000, $40,396/yr KiOR 2011 $575,000,000 1,000 $90,000/yr Renewable Gasoline, Diesel Blendstocks Twin Creeks 2010 $225,000, $109,500/yr Photovoltaic Solar Panels, Hyperion, Monocrystalline Wafers GE Aviation 2008 $90,000, NA Composite Engine Computers Stark Aerospace 2008 $30,000, $50,000/yr Unmanned Aerial Systems, Sensors PACCAR 2007 $500,000,000 *500 $40,000/yr Power Trains for Heavy Trucks Aurora Expansion* 2007 $17,000, $17-40/hr Composite Cargo Plane for Air Force Aurora Flight Sciences 2006 $8,000, $17-40/hr Unmanned Aircraft (UAV s) American Eurocopter Expansion* 2004 $30,000, Helicopters American Eurocopter 2003 $14,000, $18-20/hr Helicopters Service Zone/Sitel 2001 NA 900 $8-12/hr In-Bound Tech Support Nissan 2000 $1,400,000,000 5,000 NA Cars, Trucks, SUV s * These companies were expanded during the years provided. >> FIGURE 2

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