The importance of Innovation and Entrepreneurship

Tom O’Neal

Professor of Industrial Engineering and Management Systems

Associate VP for Innovation and Commercialization

A National Priority: US Department of Commerce• At the U.S. Department of Commerce and the Economic Development

Administration, we believe that universities have a critical role in securing America’s future innovation, economic competitiveness and prosperity in a global economy.

• Universities are the ideal location to connect knowledge creators with knowledge commercializers through technology incubators, entrepreneurial development curricula and nurturing relationships with community-based venture funds.

The State of Florida recognizes The Importance of its public universities and is committed to enhancing the state’s economy by appropriating funds for research, acquisition of equipment, and construction of facilities. Doing so makes Florida more attractive to world class scholars, top students, and the high tech companies that will improve the state’s competitiveness in the world market.

A Florida SUS BOG Priority

UCF’s Role in economic and community development

Rather than ask how a region can further the well-being of a college or university — and we can all name famous institutions that espouse that philosophy —our 21st century urban research university asks, “How can we align our teaching, research, and service with the needs of our local economy?”

President John C. Hitt, September 2017

UCF’s 5 goals

• Goal 1: Offer the best undergraduate education available in Florida

• Goal 2: Achieve international prominence in key programs of graduate study and research.

• Goal 3: Provide international focus to our curricula and research programs.

• Goal 4: Become more inclusive and diverse.

•Goal 5: Be America’s leading partnership University

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The Renaissance

Knowledge as an Economic Driver?

What does our economy look like by size of company?

US BUSINESSES % of TOTAL Running total Jobs % of Total Running total Jobs % of TotalRunning total

ALL 22,128,466.00 202,800,000 1,552,391 11,800,000

   Self Employed 12.10% 12.10% 1.30% 1.30% 10.7% 11% 1.40% 1.40%

   2-9 Employees 72.10% 84.30% 29.70% 31.00% 76.7% 87% 37.10% 38.50%

   10-99 Employees 14.70% 99.00% 38.60% 69.60% 11.7% 99% 34.30% 72.80%

   100-499 Employees 0.90% 99.90% 17.60% 87.20% 0.8% 100% 17.10% 89.90%

   500+ Employees 0.10% 100.00% 12.80% 100.00% 0.1% 100% 10.10% 100.00%

US:99% of firms 70 % of jobs

Florida:99% of firms 73 % of jobs

Firms with less that 100 employees 2016

Source: youreconomy.org

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Self Employed

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Entrepreneurial (growth oriented)

IP Train

ing an

d

Aw

areness

Top

Research

ers

Top

Stud

en

tsState o

f the art

facilities

Po

litical Sup

po

rt

Ind

ustry C

lusters

Wo

rkforce

D

evelop

me

nt

Bu

siness service

s

Tech

Savvy En

trepren

eurs

University role in Innovation Economy

Sponsored

Research

IP Creation and

Management

Strategy Development

Assessment and Marketing and

Technology Maturation

Commercialization

Incubation

Economic

Development

World class research

Must reach a critical mass of specialized supporting infrastructure,

talent, and opportunity to compete at highest level

Funding for Labs

Technology and Graduates

Company

Incubation

Product

Research Park

Jobs

Taxes

World Class Researchers and Faculty

Regional Innovation Ecosystem

Copyright © O’Neal 2011 1

FinancialCapital

IntellectualCapital

Advocatesand Champions

ResourceProviders and

Support

New IP and Technology

Early-stage Execs & C-level Mgrs

Corporate Partners

Policy Makers Government

Economic Development Organizations

Universities and Colleges

Service Providers

Workforce Chambers

SBDC SCORE

Angels, VCs, Private Equity

Banks

Government grant and loan programs

Philanthropy

Incubators and Accelerators

Peer Networking groups

Volunteer Mentors

Trade Associations

Non-profit Research Institutions and Hospitals

Talent Pool

Economic Gardening

State and Local Government Foundations and Individuals Businesses

Ecosystem Funding Sources

Entrepreneurs

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Innovation Support Florida High Tech Corridor Council (FHTCC)

Venture Lab – Research Park

National Entrepreneur Center – Downtown

Incubator Program – seven sites in five counties

Entrepreneurship Center – Colleges of Bus. and Eng.

Technology Transfer Office – Research Park

Research and Commercialization Office – Research Park

GrowFL – Research Park

FAN – Angel network

Examples – UCF Incubator

Highly visible Community Partnership with community funding the vast majority of costs

Regional Impact $2.5 Billion$7.95 return for every $1.00 investedSustained over 4,900 local jobs (Directly & Indirectly)

Research Collaborations with UCF!

GrowFL – Statewide program hosted by UCF

• Created a total of 10,942 net new jobs in the study area at the end of study period

• Directly created 4,067 net new Jobs in the study area at the end of study period, and

• Indirectly created 6,875 net new Jobs in the study area;

• The result of these net new jobs have:

• Had a total impact on regional GDP of over $ $941.60 million,

• Direct regional GDP of over $396.66 million, and

• Indirectly impacted of over $544.94 million of additional regional GDP

• Had a total impact on regional sales of over $1.8 billion,

• Direct regional sales of over $901 million, and

• Indirectly impacted over $980 million of additional regional sales

• Had a total impact on State and Local taxes of over $81.18 million

• Given a total time adjusted investment of $8.04 million, the NET ROI is $9.10 for every $1 of public investment

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Can we help the process?

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1

2

3

4

5

6

7

8

9

2003 2004 2005 2006 2007

Nu

mb

er

of

Emp

loye

es

Year

Knowledge Based Startup Firms

Inc

Non-Inc

0

100000

200000

300000

400000

500000

600000

700000

800000

2003 2004 2005 2006 2007

Sale

s

Year

Knowledge Based Startup Firms

Inc

Non-Inc

Source: O’Neal, Ford, Sivo, Lasrado

University incubator verses non-incubator companies

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Other benefits

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