STRATEGIC PLAN ITEMS
ENTREPRENEURSHIP AND INNOVATION
In today's economy, economic success is being driven by innovation, not by capital accumulation or a reliance on natural resources. States and regions are adjusting their economic development strategies accordingly to meet this new challenge. With assets such as a major research university in LSU and a specialized life sciences research institute such as the Pennington Biomedical Research Center (PBRC), the Baton Rouge area has the possibility to spawn companies with disruptive technologies and the formation of significant, rapid job creation and wealth. The key element to enable this development is an ecosystem of entrepreneurial support, strong networks, risk capital, and creative talent that will make more of these companies likely to form and likely to succeed.
TOP PRIORITIES
Entrepreneurial support: serve twenty high-potential firms with entrepreneurial support services
With the formation of RIO, the Baton Rouge area has created an entity to link our research assets, incubators, and talent networks into a single over arching partnership focused on entrepreneurship and innovation. One of RIO's primary annual deliverables is support services to accelerate high-potential entrepreneurs.
Risk Capital: improve access to capital for entrepreneurial firms by pursuing creation of a seed fund, connecting angel investors, and building out-of-state capital relationships
Risk capital is oxygen to start-ups. Promising companies with great technologies, management, and new approaches to problems fail regularly due to limited or no access to the seed and growth capital they need to survive. BRAC and RIO will partner with the state and high-net-worth individuals to create stronger links between startups and potential investors. This should occur with in-state investors, as well as with out-of-state investors. The Baton Rouge area may have opportunities to create new seed capital funds as well, which it should pursue.
ACTIVE INITIATIVES
RIO: accelerate innovation and entrepreneurship in the nine-parish area
BRAC will lead RIO, which is tasked with identifying opportunities in the current service-delivery system to improve support for entrepreneurial growth companies. It will support collaboration between innovation assets in the Baton Rouge area, provide support services to high potential entrepreneurs, and seek to improve access to risk capital.
University research park: promote the development of a university research park at LSU's South Campus
Areas around the country like Raleigh-Durham, North Carolina, West Lafayette, Indiana (home of Purdue University), and Madison, Wisconsin (home of the University of Wisconsin) have succeeded in building best-in-class research parks that convert public-sector and university research strengths into private-sector investment and jobs. The development of a university-led research park organization, which would be established as a non-profit organization with active business representation, would allow for the cultivation of a valuable land asset that leverages the intellectual richness of LSU and Southern University and strengthens the state's innovation economy. As articulated in BRAC's Regional Innovation Strategy research paper, BRAC supports the formation of a research park by the LSU System under a foundation, as well as the identification of revenue streams to support its development.
Access to risk capital: support efforts to expand access to angel, seed, and venture capital funds in the Baton Rouge area and Louisiana, including continued implementation of the angel investor tax credit program
Access to angel, seed, and venture capital is one of the critical elements for start-up businesses, particularly in technology-intensive fields. While several incentive programs have been developed over the years to increase the availability of venture capital in Louisiana, few incentives are available to support capital formation today. Programs at the Louisiana Economic Development Corporation (LEDC) and the angel investor tax incentive should be continually evaluated to ensure they are achieving their goals and competitive with other states. Regional and state efforts should foster increased activity among angel investors and support the formation of professionally-managed, in-state venture capital funds. Linking risk capitalist to entrepreneurs in the Capital Region improves the business climate for private-sector start-ups and university researchers commercializing intellectual property. BRAC's research paper on state innovation policy recommended key strategies for capital formation, including strategies for supporting Small Business Innovation Research (SBIR) grants, angel capital incentive, and other efforts.
POLICY POSITIONS
LSU research: advance efforts to position LSU more competitively as a premier public research institution and support its engagement with the private sector
Research universities impact economic development in significant ways beyond simply the educating of students. The knowledge of professors and the innovation occurring in labs throughout the university can have a positive impact on the competitiveness of regional firms when there is a healthy connection between the university and the private sector. Through positive improvements in tech transfer including the use of template agreements and corporate relations staff to engage the business community, a research university can have a strong, positive engagement with the private sector.
Pennington Biomedical Research Center: aggressively pursue funding for continued growth of PBRC and encourage commercialization of PBRC intellectual property
As a premier biomedical research institution, PBRC has significant research capacity in the areas of nutrition, obesity, heart disease, and other nutrition-related illnesses. PBRC's impact as a hub of research and innovation can be enhanced with a renewed focus on opportunities for commercializing research to enhance the institution's economic impact. BRAC's research paper on PBRC called for additional revenues at levels competitive with their biomedical research institute peers, as well as enhancements to their research and commercial engagement enterprises.
State innovation strategy: support the development of a comprehensive, long-term, innovation agenda for Louisiana that advances the state and our regional economy in a globally competitive environment
With two research universities and strong concentration of engineering, science, and technology-driven industries, the Baton Rouge area benefits disproportionately from state and regional investments that foster innovation. Over the last decade, the state has moved to invest in research and research infrastructure, but it has not been consistent or significantly competitive with other state and regional efforts. The state would accelerate its innovation economy by launching a multi-faceted innovation agenda, focused on 1) attracting and commercializing more federal and private research; 2) recruiting top university research talent; 3) improving access to proof-of-concept funding and early stage risk capital; and 4) accelerating and launching innovative, high-growth companies. See BRAC's paper on the creation of a state innovation policy agenda.
Incentives for innovation-based economic development: support incentives that improve the business climate for innovation-driven firms with high-growth potential, such as the Research and Development Tax Credit, Digital Interactive Media Tax Credit, Angel Investor Tax Credit, and Technology Commercialization Tax Credit
Recruitment and development of new business enterprises, especially ventures that create knowledge-based jobs, is important to the economic development of the state and region. Continued support for and development of incentives focused on research and knowledge-based enterprises will strengthen our ability to accelerate the region's economic growth and compete for projects with high-wage jobs.
Commercialization and technology transfer: support efforts to streamline practices related to technology transfer and commercialization of university innovations
The process of technology transfer advances the innovation of research universities into the marketplace. The ease and predictability of the process is integral to its frequency and success. BRAC supports efforts to streamline these processes at our Baton Rouge area institutions, through the use of capable tech transfer office staff that are knowledgeable about enterprise formation and template agreements for spinouts; corporate relations staff who engage the regional business sector; and, more broadly, positive, collaborative relationships with the private sector.
PRIORITY PROJECTS
- Coordinating business incubators in the Baton Rouge area toward cooperative goals and services
- Developing business acceleration services model based on national models
- Continuing the Tech Tuesday events to provide opportunities for the current and future leaders of the technology sector to network
- Advocating on state legislation affecting innovation-related policy
- Highlighting and supporting the success of technology companies in the region through earned media
- Working with LSU and the PBRC to improve commercialization of intellectual property, including technology transfer and partnerships with business
- Participating on the Louisiana Innovation Council to spur the creation and development of a statewide innovation agenda
Download » BRAC's 2012 Strategic Plan