South Carolina Program Strives to Make Start-ups Successful

Marketing tech-based economic development (TBED) programs can be challenging, particularly with the diverse nature of its target audiences of entrepreneurs, existing companies, financial sources, university researchers and, oftentimes, legislators. Sometimes, even the name of the program can cause misconceptions, particularly when a new initiative is outside the traditional services or roles offered by the TBED organization. A recent example of this comes from South Carolina.

Striving to change the public’s perception of a program designed to invest in and support start-up companies, the South Carolina Research Alliance (SCRA) renamed its Innovation Centers program to SC Launch! last winter.

The concept of Innovation Centers give the impression of bricks and mortar, said Jim Stritzinger, executive vice president and general manager of SCRA’s Public Interest Research department. "The intent of the program is not to build buildings, but to make companies successful," Stritzinger said. "The buildings will come later."

The legislature passed the South Carolina Innovation and Research Centers Act http://www.scstatehouse.net/sess116_2005-2006/bills/3794.html ast year, mandating that SCRA invest $12 million in operating costs and direct investments through innovation centers at the state’s three research universities. According to Stritzinger, SCRA is trying to take the legislative intent and wrap it around the best resources the state can provide in order to make start-up companies in the state successful.

For example, SCRA is utilizing intellectual property attorneys, financial institutions, and building partner networks to align with Launch! clients. SCRA currently has 42 existing and potential Launch! clients in the areas of advanced energy, automotive, advanced materials and nanotechnology, and health sciences and biotechnology. They also are in the process of collecting new proposals, Stritzinger said.

The mandate has enabled SCRA to do something they were not able to in the past – make direct equity investments in companies. To help start-up companies bridge between "friends and family" investments to angel and venture capital, the program provides investments of up to $200,000 in each company as loans or equity investments.

The state is divided into three zones, with each zone housing one of the state’s three research universities. The upper zone houses Clemson University, the midlands zone houses the University of South Carolina, and the coastal zone houses the Medical University of South Carolina.

According to an article in the Post and Courier, the South Carolina Innovation and Research Centers Act is one of several efforts underway to create better jobs and expand the tax base by matching publicly funded research with private-sector needs. Other related measures include the creation of endowed professorships. More information on SC Launch! is available through SCRA at: http://launch.scra.org/

***

Copyright State Science & Technology Institute 2006. Redistribution to all others interested in tech-based economic development is strongly encouraged. Please cite the State Science & Technology Institute whenever portions are reproduced or redirected.