Purdue News

August 3, 2000 Purdue Research Park launches 36 high-tech companies WEST LAFAYETTE, Ind. – With the help of Purdue Research Park's business incubation complex, new ventures are hitting the ground rolling as they commercialize technologies, create jobs and build wealth. The park's complex is one of more than 800 business incubators now located throughout North America, a band that has grown from just 12 incubators in 1980, according to the National Business Incubation Association (NBIA). Purdue Research Park and 40 percent of other NBIA member incubators focus on high-tech ventures with the potential to create plenty of jobs, bring in out-of-state revenue and diversify the area's economy. "More than 36 companies that did not exist prior to 1993 have been launched at our park," said Stan Mithoefer, director of real estate for the Purdue Research Foundation. "These start-ups have hired more than 221 employees – jobs that would not be in this community or possibly elsewhere without our incubator system." Mithoefer continued, "Also located in the park are 20 high-tech companies operating independently from the incubator system, which employ a total of 654 people. Many of these companies are spin-offs from Purdue-licensed technology or companies that have graduated out of the incubators." Purdue's figures mirror those in 1998 studies conducted by the NBIA and by the U.S. Department of Commerce, which estimate that incubator clients and graduates have created approximately a half-million jobs since 1980. The studies also reveal that 84 percent of incubator graduates stay in their communities and continue to provide a return to their investors. The success of the park's incubated businesses is due, in part, to the Purdue Gateways Program, which connects start-up's early in their development with mentors who help them identify market prospects, develop prototypes, launch marketing activities and develop financial resources, Mithoefer said. "Our model provides high-tech entrepreneurs with a professional atmosphere to conduct business, but also offers them the expertise, networks and tools they need for success," said Sam Florance, Gateways Program director. "Because the park is aligned with Purdue, these fledgling companies benefit from the valuable advice of Purdue faculty and alumni who have distinguished themselves in specific areas." A task force of accountants, attorneys and bankers also provide a diverse perspective in response to new ventures. Companies also benefit from attractive rental rates and access to various amenities such as two-way video-conferencing, flexible office and lab space, and high speed Internet access. To provide a place for faculty who wish to commercialize their ideas or companies who want to develop businesses based on licensed Purdue technologies, the Purdue Research Foundation founded the park's first incubator in 1993. Since then, the foundation has built 60,000 square feet of additional incubator space, turned another existing building into an incubator, and funded construction of the Innovation Center. Incubator tenants whose success requires quite a bit more office or lab space, but also allows them to afford higher rental rates, graduate to this facility. The buildings, however, are being leased as fast as they can be built. Both the one-year-old Purdue Technology Center and the Innovation Center will be fully committed to tenants by year's end as new ventures sign on and successful start-ups expand. For example, Solid State Chemical Information Inc., a company started a few years ago by Purdue Professor Stephen Byrn and his wife Sally, has moved from a few rooms in one of the incubators to 20,000 square feet at the Innovation Center. To fill the demand for more space, a group of Lafayette investors is responding with plans to build 48,000 square feet of office and lab space in the park for technology-based companies referred by the incubator complex. For information on how to become a mentor, invest in a company or join a start-up's management team, call Florance at (765) 496-6246; florance@purdue.edu. Writer: Jeanine Smith, (765) 496-3133; jsmith@purdue.edu Purdue News Service: (765) 494-2096; purduenews@purdue.edu To the Purdue News and Photos Page