Iowa s Innovation & Entrepreneurship Ecosystem

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2 Iowa s Innovation & Entrepreneurship Ecosystem Anke Goebel, Director State of Iowa Europe Office, Frankfurt/Germany Iowa Economic Development Authority (IEDA) Symposium on Clusters and Regional Economic Development Warsaw, 8 th October 2015

3 Iowa is Centrally Located in North America

4 Iowa at a Glance» Population 3.0 million» Workforce 1.6 million» Iowa is a hub within a one day truck drive is: 9.5 million businesses 89.3 million people $3.3 trillion in personal income

5 Iowa s Economy» Iowa s GDP in 2014 was $170.6 billion» One of 15 US states currently holding a AAA rating» Among the top 5 for best run states Agriculture, forestry, fishing, and hunting Other Construction Manufacturing Government Finance and insurance Wholesale trade Health care and social assistance Retail trade Real estate and rental and leasing

6 Iowa s Key Industries

7 Small business is BIG business in Iowa: 97.2% of Iowa s employers are small businesses according to the federal definition (< 500 empl; < $ 7.5 m).

8 Education Iowa s three regent universities, 73 private colleges and 15 community colleges offer a full gamut of higher education opportunities to more than 313,000 students throughout the state.

9 Leaders in the Innovation Economy» Three public universities, research parks near both Iowa State University and the University of Iowa the Interstate 80/35 innovation corridor supports innovation for Iowa companies.» fiber-optic linked network of 15 community colleges and a variety of public-private partnerships, offer comprehensive R&D resources to develop and transfer new technologies to manufacturing operations

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11 IOWA STATE UNIVERSITY, Ames, Iowa College Numbers: Enrollment: 36,001 (fall 2015) Faculty & staff: 6,000 Alumni: 252,000 College pride points: Agriculture & Life Sciences Veterinary Medicine Engineering Business Design Human Sciences Liberal Arts & Sciences Center for Industrial Research and Service (CIRAS)

12 The University of Iowa, Iowa City Enrollment: 31,000 College pride points: 11 colleges Business, Dentistry, Education, Engineering, Graduate, Law, Liberal Arts and Sciences, Medicine, Nursing, Pharmacy, Public Health 200+ majors, minors, and certificate programs 5,000+ courses offered each year #1 writing programs in fiction and poetry (Iowa Writers' Workshop) and nonfiction (Poets & Writers) #4 on 2014 list of best colleges and universities (CollegeAtlas.org) 25 graduate programs ranked among the top 25 in the nation (U.S. News and World Report, 2015):

13 The Iowa Innovation Council» Working group of Iowa business leaders, public university and community college officials» Developing strategies to help Iowa s innovators entrepreneurs, researchers and businesses commercialize their ideas» Created in 2010 seeks to create an active partnership between state government, private industry and higher education» Provide the vision / advisory role: 29 members, 20 must be actively involved in management of a company; appointed by IEDA board; others from government or higher education

14 The Iowa Innovation Corporation» Private non profit organization (16 partners: DuPont Pioneer, John Deere, Kemin, Mid-American Energy, Cambrex, Vermeer,..)» Public-private partnership with the IEDA» Charged with being Iowa s innovation intermediary Four primary services: Access to funding Mentoring Aftercare Assistance with grant application Working with businesses, government, start-ups, existing companies, nonprofits, universities, community colleges and other Ensure funding available from proof to concept Mission statement: Grow Iowa s Own, Branding: Innovation Iowa Secured federally supported Innovation Manufacturing Institute Efforts for statewide Advanced Manufacturing Center Fill gaps in the funding continuum Create Iowa Innovation Fund

15 Programs Entrepreneurial /Commercialization Financial Assistance SBIR/STTR Outreach Programs: Objective: increase the rate of successful grant applications for Iowa s Businesses seeking federal grants - Administered by the Innovation Corporation - 3 components: - Concept reviews for Phase I and II proposals by 3rd party (contract) - Professional grant writing: contracted services (approved 3rd party) - Grant administration coaching: for Phase I awards (by 3rd party)

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17 Strategic Infrastructure Program (new in 2015)» Objective: to address competitive industry cluster development needs in a collective and collaborative way» Target growth opportunities led by industry consortium» Assists projects that develop commonly utilized assets that provide an advantage to one or more private sector entities» Reviewed by Iowa Innovation Council» Awards (forgivable loans) by the IEDA Board» Funded by loan repayments to the IEDA amount varies each year» Match required» 2 projects awarded in 2015: additive manufacturing projects at ISU and U. of Northern Iowa Metal Casting Center each required an industry consortium

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19 One of only a few states to offer refundable research activity credits, Iowa is driving innovation into industry 180 corporations and 860 individuals claiming $48.3 million in tax credits last year. Numerous public-private partnerships in Iowa focus on innovation and technology transfer, driving the commercialization of research and development initiatives with Iowa manufacturers.

20 Venture capital Iowa is among the nation s leaders in terms of average amount invested. During the past five years, Iowa ranks second in the U.S. with the average investment deal more than 20 percent larger than the U.S. norm.

21 Angel Credits Program improved, refundable, focus on individual angel investors, 25% tax credits; $ 2 m Innovation Fund Tax Credit Program To stimulate venture capital investment in innovative Iowa businesses: Individual investors can receive tax credits equal to 25% of an equity investment in a certified Innovation Fund Those Funds make investments in promising early-stage companies Total amount of tax credits available: $ 8 million (FY 16)

22 » IASourceLink: for start up or small business that is expanding or relocating online statewide information, connects entrepreneurs and small businesses to a network of over 300 Iowa resource providers» Startup Accelerators eg, Cedar Rapids national award for creating an environment that fosters the growth of tech entrepreneurships in the Corridor» Quad Cities Manufacturing Innovation Hub» Pappajohn Iowa Entrepreneurial Venture Competition

23 Iowa s Biorenewable Economy» The Iowa Biorenewable Economy is the conversion of agricultural crops, biomass and byproducts into bio-based products that produce bioenergy, bio-based chemicals, plastics, adhesives as well as novel food and feed products.

24 Iowa: Center of a Dynamic Biorenewables Industry Cluster» 100+ contributing companies have made over $3.5 billion in capital investment projects in recent years» Iowa s biofuels industry has added $13.1 billion to its economy» Created and supported 49,000 jobs» Iowa is #1 in ethanol production

25 Iowa Bioscience Industry R&D

26 Hub for Technological Innovations in Bio-based Manufacturing Farming Harvesting Storage Products Processing Utilization Source: Institute for Advanced Bio-based Manufacturing

27 Bio-based Opportunity Liquified Refinery Gases 2.3% Miscellaneous Products 0.4% Still Gas 4.1% Asphalt 3.0% Lubricants, Special Naphthas & Waxes 1.3% Residual Fuel Oil 3.8% Heavy Fuel Oil 6.1% Petroleum Coke 5.0% Source: U.S. Department of Energy, American Institute of Chemistry Petrochemicals 3.4% Ethylene Methylene Propylene Benzene Xylene Fuels 70.6% Gasoline Diesel Jet Fuel

28 Iowa s Incentive Programs» Based on: Numbers of Jobs Created more jobs, the greater the incentives Wage Rates & Fringe Benefits of Jobs the higher the wages, the greater the incentives Capital Investment Types & Amounts» Assist companies through: Income Tax Credits 1% to 10% of project capital expenditures Job Training Funding depends on jobs/wages Direct Financial Assistance average of $5,000 $8,000 per qualifying job

29 Thank you for considering Iowa Anke Goebel Director State of Iowa Europe Office, Frankfurt Iowa Economic Development Authority Office phone: iowaeconomicdevelopment.com