Leveraging Knowledge Assets for Wealth Creation

Alan W. Seadler Ph.D.Associate Academic Vice President –Research

Duquesne University

University roles in economic development

• Employer• Purchaser• Real Estate Developer• Workforce Developer• Advisor and Network Builder• Technology Transformer and Incubator

Porter, M. (2007) Forum Futures

“……Pittsburgh's eds and meds account for more than $11 billion in local salaries, 22 percent of the total salaries in the region.”

University of Pittsburgh 2009

• They've also spun off hundreds of companies in the last 15 years, driving Pittsburgh's technology boom. Since 2000, Pitt research alone has resulted in 373 new patents, 628 new license agreements, and 67 new companies.

University of Pittsburgh 2009

Technology Transfer University of Pittsburgh, CMU, Duquesne

Licen

ses & O

ptions Exe

cuted

Gross

License In

come (

$millions)

Patents

filed

Patents

issued

Start-

up Companies

0

50

100

150

200

250

2007200820092010

Pittsburgh Technology Council "2011 State of the Industry Report"

Economic Development Initiatives

• Technology Based Economic Development• Ben Franklin – Innovation Works

– Seed Capital– Entrepreneurial Support

• Greenhouse Initiative– Digital Greenhouse – Life Sciences Greenhouse

Leading Edge Technology People Space/Infrastructure Capital Industry

University/Research Startup Company Existing CompaniesOpportunity Fund

University Facilities

Industry Participation

Image and Marketing

Outreach

Entrepreneurial Training

Recruiting Services

Workforce Development

Executive Corps

Pre-Seed/Seed Fund

SBIR Services

University/Industry Research Partnership Fund

University Development Fund

Leasehold Improvements Fund

Expeditor

Incubator/Accelerator

Keystone Innovation Zone

• Leverage university technology transfer• Leverage university intellectual power and assets• Anchor zones around research universities

• Marketable tax credits• Business support • Innovation funding• Internships• Facilities

PCKIZ

CarlowUniversity

DuquesneUniversity

Point ParkUniversity

CCAC

Hill HouseAssociation

UPMCHealthPlan

AGH

UPMC/MercyHospital

PCKIZ

• 40 companies• Internships• Tax Credits

– Second highest amount in the Commonwealth– Marketable

• Business support– SBDC

• Location assistance– Uptown

The Pittsburgh region is as well-positioned competitively as we have been in a generation. Our economy is diverse, our workforce skilled, and our quality of life high.

Dennis Yablonsky CEO Allegheny Conference

“According to the U.S. Census Bureau, the Pittsburgh Region has the highest rate of poverty among working-age African Americans of any of the 40 largest metropolitan regions in the country. More than 1/4 (28%) of the region’s African Americans aged 18-64 lived in poverty in 2008. That’s twice as high as in regions such as Baltimore and Charlotte”

Harold Miller 2010

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$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000Median Income

American Communities Study US Census Bureau 2010

City of Pittsburgh 2010

City of Pittsburgh 2010

Evergreen Cooperative Initiative

• Catalyze creation of up to 10 for-profit cooperatives– 500 jobs– $65,000 equity per employee in 8 years

• Located in University Circle area of Cleveland• Creation of a $3 million Evergreen Cooperative

Development Fund– Revolving loan fund

Evergreen Cooperative Initiative

• Cleveland Clinic, Case Western Reserve University, University Hospitals, Cleveland Foundation

• Democracy Collaborative– Ted Howard

Evergreen Cooperative Laundry

• Started 2009• Green laundry• 10-12 million pounds of health care linen per year capacity• 50 employees

• James Anderson CEO

Ohio Solar Cooperative

• Started in 2009• Ohio Cooperative Solar owns and/or installs PV solar panel

arrays on institutional, government, and commercial buildings.

• Owns, Installs, and maintains large-scale solar panels and sells the electricity generated at a negotiated rate over a 15 yr period.

• Will employ 75 residents

• Stephen Kiel, President

Green City Growers

• Will start Fall 2012• Greenhouse with 3.25 acres under glass• Produce ~3 million heads of lettuce per year and several

hundred pounds of herbs.• Will employ 35 people

Pittsburgh Wealth Building Initiative

• Duquesne University• Carlow University• Point Park University• Community College of Allegheny County• UPMC Mercy• UPMC HealthPlan• PNC Bank• Pittsburgh Penguins• Hill House• Uptown Partners• Oakland planning and Development Corporation

PWBI objectives

• Understand the purchasing of anchor institutions• Develop a “Pittsburgh Cooperative Strategy”• Develop a list of candidate opportunities• Define start-up requirements and capital needs• Start Cooperatives in neighborhoods.

PWBI timeline

• Kick-off April 2012• Initial funding in place • Democracy Collaborative engaged• PWBI Project Manager hired• Survey to start May 2012• Study complete, initial candidates December 2012