Science in the Triangle

… Continued from Part I of this two-part series:

While it would be impossible to separate the global from the state-level issues discussed at the forum, some of the local business people offered examples for specific challenges to innovation that they faced.

Alexander Macris is the president of Themis Group which is based in Durham, N.C. and is a strong example of the power of a science park like RTP to attract additional tech-based businesses to the region. Macris said that the Triangle region is one of the largest concentrations of gaming companies in the U.S. Most of the innovation potential in gaming is at the gaming engine and software level, he said, and the average median income of someone in the gaming industry is about $75,000. He expects to see about 300 to 400 new gaming-related jobs in the area over the next three to five years, he said, because the industry is growing in the double digits. But at the same time, the cost of game development is going up – whereas a decade ago it may have cost $1 million to develop a game, it costs $20 to $30 million to do so today, Macris said. Foreign countries give more tax credits to their gaming companies, he said, which makes them more competitive in the global field and is hurting U.S.-based gaming companies. “Targeted tax credits are a huge attractant to small and start-up businesses in the gaming industry,” Macris said. “And cool downtowns, the creative class really likes a vibrant downtown too.”

While deeper tax credits may help some start-ups get a toe-hold in emerging markets, retaining the best talent is necessary to sustain them over time. And while uber cool downtowns like the American Tobacco District in Durham are one component of enticements to retain the best brains, it’s a smaller part of the issue. Read more…

Representatives of businesses and research organizations in the Triangle met Friday April 16 at Research Triangle Foundation Headquarters to explore the role of government in spurring homegrown global innovation. The meeting was the first of a handful planned by the National Foreign Trade Council, a Washington DC-based organization that advocates for both domestic and foreign trade policies favorable to its member businesses.

“We’re here today to learn from you so that we can go back to Washington and do what we do,” said NFTC president Bill Reinsch in his opening remarks. “We want to build relationships with companies and open a conversation with them to develop stronger links.” Reinsch said that his group was traveling to technology-innovation clusters like RTP and Silicon Valley to find out first-hand from companies what sort of policies were encumbering them from doing business globally, which were helping, and what sort of ideas they had for the future.

How to create and sustain jobs and businesses is a question that both federal and local governments have wrestled with sharply and frequently since the economic downturn. Research Triangle Park, NC has long been a technology-hub and economic engine for the state, noted RTP CEO Rick Weddle, and the area has excelled in life sciences, information technology, and biotech markets, but capturing emerging markets like gaming and clean energy technologies will be vital to RTP maintaining its vitality in the future. But how can science parks like RTP, and the states they’re rooted in, cultivate homegrown small businesses (and they jobs and economic resilience they generate) in emerging and established markets, especially when the banks are slow to lend — if they lend at all — and cash is plain hard to come by? Read more…