Purdue Research Park's economic development model featured in international journal

Published: October 13, 2010

WEST LAFAYETTE, Ind. - Securing intellectual property, networking and finding funding are pivotal for an entrepreneur, but it is the extra amenities that can take a new company to the next level, says a Purdue Research Park official.

Joseph B. Hornett, senior vice president, treasurer and COO of the Purdue Research Foundation, published the article "Entrepreneurial Success" in the International Economic Development Council Journal. Research shows that startups can have a greater success rate if they are based in a site that provides amenities such as shared business centers, business diagnostic programs, venture capital opportunities, human resources, and marketing and communications assistance.

"The tangibles such as business plan, patents and funding are important, but we've found that companies that have strong business support in place have a greater chance for long-term success," Hornett said.

Well-known angel investors Paul Graham and Ron Conway report that about 40 percent of all new companies established between 2002 and 2010 have been, or will be, successful.

"During the past decade, 85 percent of startups in the Purdue Research Park are still in operation after three years and longer," Hornett said. "We decided to find out what we were doing that helped these companies and share that information with other entrepreneurs and investors."

The article, which focuses on university-affiliated research parks, showed that successful incubator sites have the following attributes in common:

* Established programs to move university discoveries to the public through technology-transfer avenues.

* Intellectual property is protected through patents and licensing of new innovations.

* Optimal infrastructure is developed and maintained for business incubation.

* Collaborations are encouraged among the university, companies and public entities.

* Extra amenities are provided, such as a receptionist to direct clients to entrepreneurs.

* Avenues to secure angel investments or venture funding.

With 165 companies and about 3,200 jobs, the Purdue Research Park of West Lafayette is the largest university-affiliated park in the United States. The park has opened similar sites in Indianapolis, northwest Indiana and southeast Indiana. Combined, the sites serve 200 companies and support 4,000 jobs that pay an average annual salary of $54,000, nearly double the Indiana average wage.

"It's not just about the services that we offer. Clustered together, our firms create an entrepreneurial spirit amongst themselves that is conducive to information sharing through networking, as well as a larger pool of highly skilled labor," Hornett said. "Clustering also encourages the development of additional on-site amenities such as trail systems, fitness centers, child care and restaurants."

Cook Biotech Inc., founded in 1995, is one of the first companies to be based in the Purdue Research Park. Cook Biotech licensed a tissue-engineering technology discovered in the laboratory of Leslie Geddes (1921-2009), Purdue's former Showalter Distinguished Professor Emeritus of Biomedical Engineering. The company employs about 130 people, and its technology helps regenerate human tissue. More than 1 million people around the world have been helped with the technology.

"Cook Biotech is an outstanding example of a successful enterprise, but just as often we have entrepreneurs building startups like InSpace, which has four employees doing important research in rocket propulsion," Hornett said. "We also have international companies like Dow AgroSciences doing agricultural research. The combination of these small startups with businesses that have moved into the public realm and international companies provides the right environment for entrepreneurs to succeed."

Contact: Cynthia Sequin, 765-588-3340, casequin@prf.org

Source: Joseph B. Hornett, 765-588-1140, jbhornett@prf.org

Note to Journalists: A copy of the article is available from Cynthia Sequin, 765-588-3340, casequin@prf.org

ABSTRACT

Entrepreneurial Success: Purdue Research Foundation Finds the Right Formula

Joseph B. Hornett

Entrepreneurs are some of the hardest working and motivated individuals you will ever know, and they need the right environment, support system and professional guidance to be successful. Entrepreneurs must have an avenue for technology transfer to protect their intellectual property through patents and licensing, they need space to work and opportunities to network, and venues to secure venture funding and angel investments. This article explains how the Purdue Research Foundation provides the important amenities like a shared business center, business diagnostic program, venture capital opportunities, human resources, communications and marketing, and tech-transfer activities to help entrepreneurs succeed. The foundation received the International Economic Development Council's 2009 top award in regionalism and cross-border collaboration.