ABI tech incubator to open

In collaboration with the Arkansas Biosciences Institute, ASU will be opening a technology incubator on Sept. 23.

This 9,000-square-foot incubation center will be the third in the state, alongside the University of Arkansas-Fayetteville and the University of Arkansas for Medical Sciences in Little Rock.

It will serve as a way to provide local startup companies with adequate research space, as well as other resources to aid them in being able to thrive and remain centered in Jonesboro, as opposed to shifting their business to other areas of the South.

Brian Rogers, director of the Commercial Innovation Center, explained the importance of the incubator to ASU and what it will mean for students and faculty.

"Entrepreneurial faculties need a vehicle to form a company and commercialize their innovations to benefit the public.  Ultimately it's about driving economic development and stimulating job creation," he said.

In regards to the impact on students and faculty, Rogers felt that incubation will provide many opportunities both in interacting with the center's clients, as well as the potential to provide more jobs closer to the university.

"Students could work or intern for incubator client companies, such as business services, in addition to helping commercialize innovation(s) close to the university.  Students could also be innovators themselves."

With its primary focus on technologically and scientifically driven companies, specifically those geared towards agriculture and medicine, Rogers explained the different ways that companies could utilize their wet laboratory space.

"There are two basic arrangements that our clients can use.  First, if a company is working with researchers on campus, they can rent or lease land or office space so that they can remain close to the campus.  Second, true startup companies will pay rent, but will also receive business services."

Alan McVey, executive director for the Delta Center for Economic Development, noted that prospective clients would need to submit a business plan  complete with future plans for development and an estimation of when they will reach their goals, but there is no "set rate' for clientele.

"The incubator provides space for a company to grow financially.  Ideally, a client will be with us for three to five years, utilizing our provided workspace.  Then, hopefully, they will have amassed enough finances to outgrow us and will be stable enough to stand on their own,' McVey said.

In regards to obtaining the project's funding, McVey provided a timetable of production and explained how their grant was obtained.

"We wrote a proposal in 2009 and received funding from the EDA (Economic Development Administration) which arrived in 2010 specifically for construction."

Though they received a $1.75 million grant from the EDA, McVey noted that they are, "always looking for funding sources, as this is very valuable space for our region.  There was no opportunity to lease research space in this community, without going to Memphis or St. Louis because it didn't exist."

In regards to future plans, Rogers and McVey both spoke of possible discussions of creating a "research park," similar to the ones found at the two other major incubator sites in the state.

"A research park is an area of land that has been set aside for business to locate, whether it is multiple companies in close proximity, or one company setting up an office near the campus.  There's not a set definition of the concept.  This is all part of addressing the increased problems, such as research and higher development cost for scientific companies by providing a supportive environment at the innovation center."

McVey spoke of how the idea for the incubator came about a few years ago during ABI meetings.

Carol Cramer, then-director of ABI, and her husband David Raidin, realized that the research taking place at ABI had the potential to develop new innovations, new technologies and new companies.  They recognized that there would be a need for this type of facility to support these types of scientific companies. The decision was made around fall 2006 with cooperation from Len Friey, dean of the College of Business, to begin formal talks of a development plan.

Finally, McVey expressed hope that the incubation program would continue to grow and evolve in the future, providing ASU, and the state of Jonesboro, with a myriad of opportunities for a long time to come.

"It's really an investment in our future and making Northeast Arkansas companies mature.  Our focus is to further diversify our economy and to retain business and talent here within the state," he said.

McVey also noted that ABI is committed to cooperating with the three main incubation projects across the state, rather than trying to compete with them for clients.