March 2006

Certified Technology Parks spark growth for the future

In West Lafayette, En'Urga Inc. is developing equipment that ensures the consistent coating of arterial stints. In Anderson, Xtreme Alternative Defense Systems produces non-lethal "directed-energy" weapons. And in Merrillville, 21st Century Systems is making real-time information software that lets drivers know what's happening on the road ahead of them.

What do these groundbreaking companies have in common? They all operate out of Indiana Certified Technology Parks. And like the scores of other firms based in these parks across the state, as they develop new technologies, they're laying the foundation for Indiana's economic future.

It was three years ago in May that the state of Indiana launched the Certified Technology Park program by christening Purdue Research Park as the state's first economic development hotbed. A product of the 2002 tax restructuring legislation, the program has since expanded to 13 other locations, from Evansville to Fort Wayne and Terre Haute to Richmond.

The reason for creating the parks is obvious: Indiana must continue to move beyond its rust belt heritage and encourage the development of high-tech, high-wage and high-growth industries in order to remain competitive in the 21st century. While it would be nice to think we could attract large, established firms to our state, realistically, we must expect a lot of our economic growth to come from homegrown businesses.

In creating the Certified Technology Park program, the state's economic development leaders hoped to create places where entrepreneurial and innovative companies could take root, develop their products and technologies, and prosper. To make this possible, they focused on some basic tactics: leverage and support the enthusiasm and innovation of entrepreneurs; create technologically advanced environments where high-tech businesses can prosper and spur development in their communities; and facilitate collaboration between the state's academic and corporate sectors, making it possible for university research advances to translate into commercial ventures.

To ensure the program's success, the state created stringent certification requirements and provided incentives for holding to those requirements.

In order to receive state certification, a park has to agree to a number of clear directives: be connected to a research university, commit to developing marketable products, present a business plan, find development capital, include a business incubator, secure a commitment from one established high-tech business creating a significant number of jobs, and commit to installing a cutting-edge communications system.

If these requirements are met and certification is received, the park is eligible for hundreds of thousands of dollars in grants, and the increased tax revenues the park's tenants generate (up to $5 million over the life of the park) can be reinvested in the park and applied to infrastructure improvements, bond and interest payments, facility maintenance, and other business-related costs.

The longer-term pay off? The development and growth of firms like the ones mentioned at the open of this article – firms that might seem relatively small now but could well be the Fortune 500 companies of tomorrow.

Today, while some of the certified parks are barely beyond the blueprint stage, others are already driving economic development in their communities. Like the Purdue Research Park, which employs some 2,500 people at 90 firms — they're creating new jobs and attracting employers that otherwise might have gone to other states. Like Ameriplex at the Crossroads, part of the Purdue Technology Park of Northwest Indiana – the newest Certified Technology Park – they're attracting federal funding that helps to support smart growth (the Merrillville park opened early last year with help from $6.9 million in federal funds secured in part by Congressman Pete Visclosky).

And they're also attracting businesses – from Starbucks outlets to hotels to other high-tech firms – that simply want access to the parks, their people and amenities. Through all of this, they help their communities and the state by generating tax dollars that support the development of schools, roads and other infrastructure improvements.

If Indiana is to prosper into the future, we must all put innovation on a fast track, drive the development of small companies, and encourage their expansion and success. We must harness the power of entrepreneurs and fuel that power by facilitating collaboration and ongoing growth.

Through the Certified Technology Park program, the state of Indiana is doing all of that and more, creating environments where companies like En'Urga Inc., Xtreme Alternative Defense Systems and 21st Century Systems can flourish. And where, as a result, the industrial leaders of tomorrow can take root.