Mr. Chairman and Members of the Committee, I am Phillip Stafford.  I am the President of the University of Arkansas Technology Development Foundation, a university-affiliated foundation charged with the duty of managing the Arkansas Research and Technology Park at the University of Arkansas in Fayetteville. Thank you for allowing me to provide my remarks before the Subcommittee on Science, Technology, and Innovation regarding the impact of research parks and the recently introduced legislation, S. 1373, sponsored by Senator Mark Pryor of Arkansas.   Thank you, Senator Pryor, for your steadfast support for the Arkansas Research and Technology Park and the University of Arkansas research programs in general.  We are extremely grateful.

 

Mr. Chairman, the Arkansas Research and Technology Park, is located in the City of Fayetteville, only five minutes from the heart of campus of the University of Arkansas.   The Arkansas Research and Technology Park, also known as the ARTP, is currently home to the GENESIS Technology Incubator, the Innovation Center, the Engineering Research Center, the High Density Electronic Center and the National Center for Reliable Electric Power Transmission.  The collective research and development capacity of the ARTP assets stands at approximately 220,000 square feet.

 

Since its inception, GENESIS has assisted a number of technology-based entrepreneurs in growing their firms to the point of economic viability. The incubator has an important role as the entry point to the ARTP for start-up companies that are working to develop emerging technologies in a variety of fields. Providing support to these young firms enables GENESIS to serve as a catalyst for increasing the number of knowledge-based jobs in Northwest Arkansas and for improving the economic base of the region and the state.

 

The University of Arkansas Innovation Center, also located in the Arkansas Research and Technology Park south of the UA main campus, is adjacent to the award-winning GENESIS Technology Incubator and the Engineering Research Center, which houses 173,000 square feet of multidisciplinary laboratories and equipment, including the High Density Electronics Center. The Innovation Center provides office and laboratory space for technology-intensive private companies that want to locate at the ARTP in order to partner with the University in collaborative research, which drives innovation and enhances their competitive position. The Innovation Center has received a design award from the Arkansas Chapter of the American Institute of Architects and is recognized as the first LEED Certified building in the state of Arkansas, as designated by the U.S. Green Building Council.

 

Since assuming management in November of 2004, the UATDF has overseen a rapid transformation of the ARTP, signifying that the research park is playing an important role in catalyzing technology-based economic development.  Over this period, public/private affiliates of the park have grown from 13 to 27 organizations paying an average annual salary of $80,000. Presently, the Technology Development Foundation has approximately 40,000 square feet under lease to its 27 public/private affiliates. At full build out, the total R&D capacity of the ARTP is expected to grow to approximately 700,000 square feet. 

A primary goal of the ARTP is to stimulate the formation of a collaborative community of companies linked interdependently with the University of Arkansas in research and development. Accordingly, the University has already identified several areas of innovation as the primary focus for partnerships, including:

Clustering innovative activities within these broad areas of research will afford companies the benefits derived from collaboration, labor-source pooling and supplier networks.

Mr. Chairman, science, technology and innovation have taken center stage in efforts to boost economic growth, particularly at places like research parks throughout the nation.   According to new data compiled by the Association of University Research Parks (AURP), research parks in the United States, like the Arkansas Research and Technology Park, and in Canada directly employ more than 350,000 people and contribute more than $31 billion annually to the economy in the United States and Canada.

 

Through the development of the Arkansas Research and Technology Park, the University of Arkansas Technology Development Foundation, the City of Fayetteville, the State of Arkansas, and region are building an economic development engine focused on innovation and Northwest Arkansas entrepreneurial strength that is able to attract and retain knowledge-based workers and induce technology-based business cluster formation.  Because research parks provide the physical infrastructure and environment to encourage research and development, the ARTP is viewed as the cornerstone toward developing the building blocks essential to growing and sustaining a knowledge-based economy in Arkansas. 

 

The City of Fayetteville, Arkansas has been an extraordinary partner in the development of the ARTP by providing the necessary resources to assist the Technology Development Foundation.  Not only has the city provided financial support for the planning and conceptual engineering for the ARTP, but it is currently designing the reconstruction of Cato Springs Road to serve as the Technology Corridor linking the ARTP and other privately held R&D companies to the University of Arkansas main campus.

 

True progress toward a knowledge-based economy in Arkansas and throughout the nation will require that select individuals and organizations commit to early-stage investment in emerging technology companies to enable these companies to bridge the gap between product development and commercialization.  The Technology Development Foundation has been active at the Arkansas Research and Technology Park in establishing and cultivating ties to organizations like the Arkansas Venture Forum, Accelerate Arkansas, Innovation to Return on Investment and the Fund for Arkansas’ Future to facilitate access to financial capital for its corporate partners.

 

Aside from the physical infrastructure supporting research and development, the Technology Development Foundation is leveraging spillovers of knowledge from the University and translating this knowledge into industrial innovation in the form of new companies concentrating in the areas of nanoscience, food safety, cell biology and detection and diagnosis of various diseases.  Moreover, to assure that promising innovations find their way into the commercial mainstream, the University of Arkansas Technology Development Foundation has implemented an intellectual property support system to assess, package and license new technologies to power the innovation cycle and sustain the competitiveness of its corporate partners.

The ARTP continues to spawn and nurture a growing entrepreneurial culture through the GENESIS Technology Incubator and the Innovation Center. Since January 2005, affiliates of GENESIS and the Innovation Center have accounted for approximately $36 million in Small Business Innovation Research grants and contracts. Not only does this federal program provide critical seed funding to ARTP companies, it serves to validate that the technologies under development are commercially important.

Through its corporate partners, ARTP is also contributing to the development of a technologically skilled workforce. The ARTP now provides direct employment for 215 highly trained knowledge-based workers, many of whom are graduates of the University of Arkansas.  It is further estimated that another 107 jobs have been created within the region in indirect support of ARTP research and development. Moreover, it is projected that the ARTP will contribute to the creation of 2,000 jobs at build out.

In addition, the Technology Development Foundation is developing a vital network of contacts in the entrepreneurial, finance, and professional service communities to sustain the growth of its corporate partners. In fiscal year 2008, the Technology Development Foundation will work closely with the organization selected to implement the new Innovate Arkansas initiative, designed to provide high-growth companies services to enhance their business plans and provide access to potential early stage investors. Innovate Arkansas will also provide other valuable services that can enhance the growth and development of emerging technology companies.

It is clear that university/industry research collaboration is evolving into a highly sophisticated platform for innovation. Why is this important? First, it makes good economic sense. Through collaboration that leads to innovation, we can start and grow new firms that augment the economic ecosystem, giving rise to new technology clusters that build on the base of technological expertise in place in Northwest Arkansas. Second, it’s good policy because university/industry research provides opportunities for students to make the connection between knowledge gained in the classroom and its application in business and industry. At the ARTP, we are doing our part to lay a foundation that leads to sustained prosperity in Arkansas. More importantly, we are providing our graduates high-paying professional career opportunities to enable them to build their future-- our common future—in Arkansas.

 

 

As a result of the success of the ARTP affiliate companies, both the Innovation Center and the GENESIS Technology Incubator are operating at full capacity.  Assuring continued success of the Tech Park and its affiliates will require further development of multi-tenant research facilities and associated primary and secondary infrastructure to support growth and expansion of the ARTP to meet the research and development requirements of our emerging technology companies.

 

I am, therefore, encouraged that the legislation, S. 1373, sponsored by Senator Mark Pryor will provide grants and loan guarantees for the development and construction of science parks to promote the clustering of innovation through high technology activities. Because university-related research parks typically involve small emerging technology companies, credit enhancements are often necessary to achieve financing of project facilities. Consequently, this legislation addresses a problem that is universal to many research parks.

 

The purposes outlined in S. 1373 are essential to support existing research parks in their activities to acquire more space and infrastructure to accommodate technology activities and encourage the inclusion of more companies to promote further economic growth.  Moreover, it is also essential to provide planning support to those areas with major research universities to conduct feasibility studies for science parks among various geographic areas. 

 

As one who has watched on the front lines the development of the Arkansas Research and Technology Park, I fully support the objectives of this legislation because of the enormous value it will provide to our universities, our national economy and our nation.

 

 

I would only add that the Committee may want to give consideration that a portion of these grants be directed to benefit areas and regions experiencing or threatened with substantial economic distress.  As defined by the Economic Development Administration at the Department of Commerce, distress may exist in a variety of forms, including, but not limited to, the following:

 

Mr. Chairman, the Arkansas Research and Technology Park is already having a positive impact on the economy of Arkansas and is contributing significantly to the development of the building blocks essential to growing and sustaining a knowledge-based economy.  I can only hope that more of these research parks will continue to play a significant role in the pace of innovation in our nation, accompanied by growth and expansion. 

 

Sustaining this momentum is essential to nurture areas of collaborative activity into clusters of companies working in a common area of interest.  Doing so will result in providing tangible benefits to the nation by attracting high paying jobs, providing professional opportunities for high technology workers, and forming clusters of expertise that are important for attracting additional high technology firms.

 

Mr. Chairman, thank you for allowing me to testify before your Committee today.  It has been an honor to participate in this hearing.  I am happy to answer any questions that you may have.  Thank you.