Agenda 12/10/2013 Item #10C 12/10/2013 10.C.
EXECUTIVE SUMMARY
Recommendation that the Collier County Board of Commissioners accept the Collier
County Accelerator Feasibility White Paper and provide Staff direction based on the
report recommendations. The County is committed to fostering economic growth through
the development of an entrepreneurial accelerator which will house emerging businesses
that are deemed to have the greatest potential for successful growth. The project will be
designed to mirror the Community Innovation Collaboration and Masschallenge programs
in Cambridge, MA. This project will the first of its kind in the Southwest Florida region
and will include community partners such as Florida Gulf Coast University, the Chamber
of Commerce, venture capitalists and local business leaders. At the state level, support for
the project will be garnered from Enterprise Florida, the Office of Economic Development,
the legislature and the governor. The hope is that this project will become a model for
additional accelerators throughout the state, serving to advance the objective of job
creation.
OBJECTIVE: That the Board accepts the Collier County Accelerator Feasibility White Paper
as provided to the Office of Business and Economic Development on November 26, 2013, and to
provide staff future direction moving forward.
CONSIDERATIONS: As included in Board discussion from July 9, 2013 Agenda Item 10-D,
staff was encouraged to consider aggressively pursuing grant funding for a business incubator.
The county's state lobbyist firm, Fowler, White, & Boggs, was commissioned to provide a
feasibility analysis and in turn subcontracted with Dr. Marshall Goodman on behalf of the
County to assess the feasibility of creating a business incubator in Collier County. The contract
was to provide a White Paper and a Draft Legislative Budget Request in consideration of an
incubator and associated funding sources. The White Paper was required to be the culmination of
research and community input. Dr. Goodman has previously completed and submitted the
required Draft State Legislative Budget Request.
As an additional consideration, the Office of Business and Economic Development's FY 2014
Business Plan, and formally adopted by the Board on September 10, 2013, articulates that
developing an incubator/accelerator would advance a key economic development goal.
On November 26, 2013, Dr. Goodman delivered the final White Paper to the Office of Business
and Economic Development. The White Paper (attached) includes a brief history of incubators,
including return on investment estimates and proposed best practices. Additionally, the White
Paper supports the feasibility of a Collier-based incubator, while also noting the three primary
areas of focus for a Collier-based incubator. The White Paper also includes key strategies for the
County to consider in moving forward with any plan to create a business incubator.
Packet Page-366-
12/10/2013 10.C.
FISCAL IMPACT: None.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires
majority vote for approval. -JAK
RECOMMENDATION: Recommendation that the Collier County Board of Commissioners
accept the Collier County Accelerator Feasibility White Paper and provide Staff direction based
on the report recommendations. The county is committed to fostering economic growth through
the development of an entrepreneurial accelerator which will house emerging businesses that are
deemed to have the greatest potential for successful growth. The project will be designed to
mirror the Community Innovation Collaboration and Masschallenge programs in Cambridge,
MA. This project will the first of its kind in the Southwest Florida region and will include
community partners such as Florida Gulf Coast University, the Chamber of Commerce, venture
capitalists and local business leaders. At the state level, support for the project will be garnered
from Enterprise Florida, the Office of Economic Development, the legislature and the governor.
The hope is that this project will become a model for additional accelerators throughout the state,
serving to advance the objective of job creation.
Prepared by: Commissioner Georgia Hiller, Chair; County Manager Leo Ochs; Bruce Register,
Director- Office of Business&Economic Development
Attachments: Collier County Accelerator Feasibility White Paper,Related Presentation Power Point
Packet Page-367-
12/10/2013 10.C.
COLLIER COUNTY
Board of County Commissioners
Item Number: 10.10.C.
Item Summary: Recommendation that the Collier County Board of Commissioners accept
the Collier County Accelerator Feasibility White Paper and provide Staff direction based on the
report recommendations. The County is committed to fostering economic growth through the
development of an entrepreneurial accelerator which will house emerging businesses that are
deemed to have the greatest potential for successful growth. The project will be designed to
mirror the Community Innovation Collaboration and Masschallenge programs in Cambridge,
MA. This project will the first of its kind in the Southwest Florida region and will include
community partners such as Florida Gulf Coast University,the Chamber of Commerce,venture
capitalists and local business leaders. At the state level, support for the project will be garnered
from Enterprise Florida,the Office of Economic Development,the legislature and the governor.
The hope is that this project will become a model for additional accelerators throughout the
state, serving to advance the objective of job creation. (Commissioner Hiller)
Meeting Date: 12/10/2013
Prepared By
Name: BrockMaryJo
Title:Executive Secretary to County Manager, CMO
12/4/2013 11:26:59 AM
Submitted by
Title: Executive Secretary to County Manager, CMO
Name: BrockMaryJo
12/4/2013 11:27:00 AM
Approved By
Name: OchsLeo
Title: County Manager
Date: 12/4/2013 4:58:15 PM
Packet Page-368-
12/10/2013 10.C.
COLLIER COUNTY ACCELERATOR FEASIBILITY WHITE PAPER
Completed by Marshall Goodman, Ph.D.
November 26, 2013
4 11
y
i a
., ;*
n$•
r:nu w. . ?:P 4
1.. ,.. 3x _,.. _-i,x. s .uG ��I'E?.<�'S1N4.
This White Paper explores the feasibility of a soft-landing accelerator being
developed in Collier County Florida. The first of its kind in the South-West
Florida region as well as in the State of Florida, this accelerator would recruit,
develop, mentor, and graduate new private companies and organizations
1
Packet Page-369-
12/10/2013 10.C.
1
y
"If you have kt
r°4-r h is-. - ■
seen one
incubator, you
have seen I — mom
one =-'
incubator." -- =
•
„41,7
dedicated to creating new industry futures and employment opportunities in the
region.
This review and analysis took place over a four month period between August
2013-November 2013 and involved a review of relevant documents and reports,
as well as numerous in-depth one on one interviews and discussions with County
and local government officials, private sector organizations and individuals, non-
profits, and university and public and private K-12 education officials.
Background: The Need
A great deal of research has been performed and numerous books,
monographs and articles have been published that all have concluded that the
world's economy in the 21st century is dramatically different than just a decade
or two ago. From popular writers like Thomas Friedman (The World is Flat; That
Used to be Us), to a Nobel Prize winning economist like Joseph Stiglitz (Making
2
Packet Page-370-
12/10/2013 10.C.
Globalization Work; FreeFall:America, Free Markets, and the Sinking of the
World Economy), there is a recognition that at the grass-roots level, American
communities must foster a new level of entrepreneurship, support creative new
structures to help companies get their start and compete in an ever changing
global market-place.
One indicator of this local inventive effort comes from the National Business
Incubator Association that reports that over 1400 small business incubators are
now operational throughout the United States. Locally, interest in incubators was
clear when in 2008, the Southwest Florida Regional Planning Council sent out a
Request for Proposal for a planning study to be done that examined the efficacy
of business incubators within the region.
The Regional Economic Research Institute at Florida Gulf Coast University was
selected to perform the planning study and their comprehensive report,
Southwest Florida Regional Business Incubator Study, RFP#ED-03 provides
convincing data and arguments in support of the incubator concept and need
within the region. Incubators were seen as bringing forward a number of
positives: "a stronger competitive region, increased access to expertise,
resources, entrepreneurial education, and dollars; connections to educational
systems and institutions; creation of a regional center of excellence; increased
attractiveness to venture capital; expanding economic development efforts,
diversification of the economic base; and creation of cost savings through
coordinated efforts and economies of scale."
3
Packet Page-371-
12/10/2013 10.C.
Given these result from the planning study, it is no surprise that the Southwest
Florida Regional Planning Council made the development of regional incubators
one of their "vital" projects in their 2012-2017 Five Year Comprehensive
Economic Development Strategy. That report articulates the need for the
Southwest Florida region to build "pillars" to strengthen its economy and gives a
very stark analysis of the present situation:
Southwest Florida has developed with a precarious economic foundation
of agriculture, construction and tourism. This "three legged stool" was
successful for much of the 20th century. However, since the turn of the
century, the people and businesses of our region are reeling from the
consequences of suburban sprawl, housing market volatility, economic
downturn along with climate change and storm hazard vulnerability. The
imbalance between coastal communities where cultural and capital
resources are concentrated and rural communities where agriculture and
environmental resources are concentrated is growing, and pressure for
conventional sprawl threatens rural communities and the region.
The report articulates "pillars" that the region needs to develop, and all are
one's supported by the development of business incubators: "talent supply &
education, innovation & economic development, infrastructure & growth
leadership, business climate & competitiveness, civic & governance systems,
quality of life and quality places."
It has become clear that the growth of incubators and accelerators
across the country has tapped into a changing global economy. Recently, this
national trend, was cited by the online publication The Verge, that pointed out in
a 12 November 2013, article Startup Metropolis: Why So Many America Cities
Are Trying To Be Silicon Valley, that this is not simply a passing phenomenon,
but rather underlies something much more significant:
4
Packet Page-372-
12/10/2013 10.C.
This push is not a faddish response to the recent boom in startup
valuations and IPOs - it's a simple expression of the need for job growth in
post-manufacturing America. `What is happening now is that the nature of
economic growth in the US has fundamentally shifted,' says Dr. Michael
Mandel, chief economist at the Progressive Policy Institute. It's an
evolution from manufacturing to information and technology.
However, while there has been widespread growth of the incubator concept,
not all communities have invested in incubators for the same reason, recognizing
that not everyone is going to be the "next Silicon Valley" nor does everyone wish
to be.
Toward that end, it is interesting to review the results of a 1991 survey
conducted by the National Business Incubation Association, that showed that a
variety of objectives were being met through the development of incubators
across the nation. The survey found that the most important objectives of
incubators were economic development (91.3%) and economic diversification
(60.9%), followed by research commercialization, technology transfer, women/
minority opportunities, and neighborhood revitalization. The same survey also
showed that the most common type of companies housed in incubators were
service (36%), light manufacturing (20%), technology products (15.9%), R&D
(10.7%), and wholesaler/distributor (7.8%).
What Services Do Accelerators Provide?
In the 21st century, economic development business incubators/accelerators
have proven to be exceptionally effective organizations in providing companies
with business support during their initial start-up and growth stages. Incubators
provide key services to beginning companies that are just being hatched.
5
Packet Page-373-
12/10/2013 10.C.
Entrepreneurs at this stage may have a great idea, but lack a strong business
plan, initial capitalization, distribution plans, market research, and clients and
customers. Accelerators on the other hand, tend to deal with companies that are
more mature, have a very clear and specified product or service, have a
customer base, and are looking for a higher degree of business services,
expertise, and venture capital than normally found within incubators.
Typical accelerator services provided through core staff and a network of
paid and volunteer professionals would include:
* Enterprise and Business Plan Evaluation and Diagnosis
* Commercialization Feasibility Studies
* Market Channel Analysis
* Pricing Policies
* Integration of Supply Chains
* Cost Analysis
* Venture Capital Planning
In addition, because many start-up companies today are being "born" on the
internet, and engage exclusively in the provision of e-commerce services and
products, the information technology infrastructure provided by an accelerator is
of utmost importance. This importance is magnified for those firms from outside
the U.S., since they require reliable and highly secure connections back to their
central office or headquarters. The amount of data transmitted by these firms can
be extremely high, since in many cases their actual work-force is spread across
the world and many different time-zones. As a result, accelerators that can
6
Packet Page-374-
12/10/2013 10.C.
provide with a high degree of reliability the following type of services will be in
great demand:
• Off-site data replication for up to several terabytes
• 24 hour, 7 days per week monitoring and alerts
• Anti-virus management and software
• Backup and recovery services
• Network security management services
• Firewall monitoring and alerting services
• Patch and license management
• Inventory services
• Unlimited Help Desk support
• Troubleshooting and recommendations for hardware and software
Accelerators have the great advantage of purchasing the above services from
a single provider, allowing for a greater economy of scale, thereby significantly
lowering the cost per user company than if they sought to arrange for
these services on their own. Of course, companies in the accelerator are free to
select these group services or make their own individual arrangements.
Soft-Landing Services
In addition to all of the above services, the National Business Incubator
Association recognizes and certifies a special class of incubator/accelerator
know as "Soft-Landing" incubators and accelerator that provide even a greater
7
Packet Page-375-
12/10/2013 10.C.
level of specialized assistance to companies that are interested in moving their
present business into Florida or the United States. The range of soft-landing
services may include:
• Foreign Direct Investment, Tax, Wealth Management
• Intellectual Property (IP) and Patent
• Regulatory Issues (FDA; EPA; OSHA; NIH; DOL)
• Logistics
• Data Warehousing, Protection/Security, Backup
• High-speed Connectivity and Teleconference;
• Visa, Green Card, Work Permits;
• Human Resource and Labor Regulations;
• International Standards Organization (ISO) Compliance
Return on Investment
The above review makes clear that incubators and accelerators have gained in
popularity across the U.S., and that this business economic development model
is offering start-up and soft-landed companies a unique working environment and
suites of services. However, the question remains whether this concept will work
in S.W. Florida and what type of success communities within Florida and
elsewhere have had with them.
There is clear evidence that business incubators in Florida have proven to be
not only an effective means of creating new jobs, but as important, have shown
great success in keeping jobs in Florida by helping companies find the support
and venture capital they need to grow. As Florida Tax Watch has found, the type
8
Packet Page-376-
12/10/2013 10.C.
of programs, services, and mentoring that business incubators have provided
have shown a significant difference in the survival of Florida's small and growing
companies. Their review showed that "companies that use an incubator process
have doubled the likelihood of remaining in business."
Additional studies that Florida Tax Watch and others cite indicate "...incubator
companies hire more than double the average number of employees and have
twice the revenues of a comparable company. Even more significant is the
difference among these businesses in grants received - companies that use
incubators are approximately fifteen times more likely to receive a federal Small
Business Innovation Research (SBIR) grant."
One of the most thorough reviews of incubator success in Florida was
completed by the Florida High Tech Corridor Council that funded an economic
impact analysis of the 9 incubators in the Orlando region run by the University of
Central Florida Business Incubation Program. The 2012 analysis was completed
by W.H. Owen Consulting of Orlando Florida. Their analysis showed that the
total annual funding for all 9 facilities had reached slightly over $1.8 million in
2011, and that there had been over a ten year period a cumulative total of $6.45
million in public government funding commitments made.
The researchers used several different methodologies to calculate the return
on investment (ROI) of these public dollars. Their analysis reached the following
conclusions:
* Annual public revenues attributed to client and graduate companies of
the UCF Incubation Program are estimated to be at least $9.1 million
annually in 2011. This amount reflects an annual RO/ of 141% on the total
ten-year public investment to support UCF's incubator programs.
9
Packet Page-377-
12/10/2013 1 0.C.
* When the $9.1 million annual fiscal benefit is compared to the total public
funding in 2011 alone, it can be seen that the ROI is $5.04 for every$1.00
invested. The annual benefits are five times the annual investment, even
though five incubators are only just getting fully underway.
* When only the annual investment in the initial five incubators is
considered (2009 is the last year that only those facilities were operating) —
the source of all graduate companies -- the ROI in 2011 rises to more
than $10 for every$1.00 invested, (compared to $5.25 in the 2009
RERC impact study).
By any measure, the public ROI on the UCF incubator program investment
is remarkable. (Emphasis in the original)
Clearly the UCF Incubator program has not only been a success in terms of ROI,
but by building a core staff, they have been able to branch out and quickly bring a
start-up culture to communities and entrepreneurs throughout their region.
The Road To Accelerator Success: Key Attributes
Business incubators and accelerators come in many different forms and size
and have a wide variety of goals in helping individuals successfully start and
grow their ideas and companies. There is a common saying in the industry, that
"if you have seen one incubator, you have seen one incubator." That is, if there
are 1400 incubators in the U.S. today, there are likely to be 1400 different models
of incubators, because no two incubators will be exactly the same. The reason
for that is that incubators and accelerators need to be built for the attributes of
the community they are within, and since no two communities are going to be
exactly alike, neither will be the incubators. What works in one incubator, can
bring about a totally different result in the other, since incubators are a function of
the business community already in place, the demographics of the area, local
support from government, business, the non-profit community, and the education
10
Packet Page-378-
12/10/2013 10.C.
community that is in place.
The National Business Incubator Association has articulated a number of
suggestions for communities looking at starting incubators and accelerators, and
these include:
• Study the entrepreneurial climate in your community
The most successful business incubators match their services to the needs of
local entrepreneurs.
• Don't expect an incubator to cure decades of community decay
Business incubators can play a vital role in a community's economic
development efforts, but seldom can they turn around a local economy single-
handedly. Experts suggest making incubators/accelerators an important part of a
region's or a community's strategic economic development plan, something
Collier County has already adopted.
• Be creative, but realistic.
Incubators and their focus have to make sense for an area, and it is
exceptionally difficult to "import" a new industry or technology into an area that
does not have the infrastructure or human capital already in place to support it.
For example, while a number of communities would like to be a bio-technology
center, the reality is that companies within this sector require strong support from
a research infrastructure that already needs to be well established, such as those
provided by major research universities or laboratories.
• Don't let real estate drive the project
11
Packet Page-379-
12/10/2013 10.C.
Location is clearly important, but entrepreneurs will flock to the North Pole if the
incubator is well staffed and equipped with the right amenities as articulated
above, and most importantly of all, that there is access to venture capital. In
addition, incubators and accelerators do not have to have a single location in a
community or a region, but may be in several locations as seen in the University
of Central Florida model, with a core staff being shared among the facilities
through a rotating schedule. Indeed, an accelerator may have office space in
one location, manufacturing or fabrication space in another, and a culinary
kitchen, or an arts incubator in yet another. These spaces may be stand-
alone facilities, or could be partnerships with other area organizations such as
community groups, schools, and universities and colleges.
• Make sure you have a solid financial plan
Whether incubators are run as private for-profit or as public non-profit, they do
require seed funding up front just as you would need for any new business or
organization. Most incubators - and it does vary by focus - do not start generating
a sustainable income flow until 18-24 months after opening. The more technology
intensive the incubator, the longer the road to sustainability, so an equipment
and research focused bio-technology incubator will take far more time to show
sustainability than a software incubator would.
Here is what NBIA says on this point:
Creating an incubation program is not an inexpensive endeavor. From
conducting the feasibility study to launching the incubator, you must
piece together funds from a variety of sources to increase your
12
Packet Page-380-
12/10/2013 10.C.
program's chances of long-term success. A well-developed financial
plan that identifies how you intend to fund the project goes a long way
in attracting investors and other supporters.
Expenses for incubators tend to fall into three categories: (1) staff; (2) space:
lease cost, furniture and equipment; and (3) operations. Core staff tend to include
a director who is responsible for the overall operation of the incubator and the
recruitment of new companies, and an office manager responsible for overseeing
the day to day needs of the companies. In addition, incubators make use of a
wide variety of students from local high schools and universities interested in
doing internships at the incubator both for the companies themselves as well as
for the incubator. Partnerships between government, other local business and
non-profit organizations and groups as well as with schools and universities
within the area can also help to defray the costs of space, meeting rooms,
laboratories, and in certain instances specialized research equipment.
• Set realistic goals for the project
As mentioned previously, incubators/accelerators are just one element - albeit
an important one - of a community's strategic economic development plan. As
such, it should not be expected to quickly or dramatically change a business
climate overnight. NBIA in their experience notes the following:
Developing a successful incubation program— or a thriving business —
takes time. While it's important to reach out to civic leaders and
entrepreneurs as you plan your program (promote your incubator early
and often), don't expect to create large numbers of jobs or graduate
new firms within months of your incubator's opening. Your goal is the
ongoing support of community and business leaders and the long-term
success of local entrepreneurs.
13
Packet Page-381-
12/10/2013 10.C.
Collier's Comparative Advantages
Given the above incubator/accelerator attributes, the question remains whether
Collier County has the right comparative advantages for a soft-landing
accelerator to be successful and thrive. This review has clearly found that it
does. A Collier County soft-landing Accelerator would enjoy a number of
comparative advantages that greatly add to its probability of success:
* There exists an engaged County Commission interested in economic
development and a knowledgable and experienced County staff with a
focus on recruiting new companies to the region. The County has already
taken the important step in making the development of an economic
business incubator/accelerator one of its core strategies of its Economic
Development Plan.
* There exists a well respected and vibrant Greater Naples Chamber of
Commerce, as well as numerous other organization - public and private -
supportive of work-force enhancement and the betterment of the standard
of living in the region.
* There exist very well rooted and successful global companies in key
growth areas such as health care, medical manufacturing and software
and information technology.
* There are supportive and emerging regional alliances with local and
state organizations and officials to effectively and efficiently support
company growth needs.
* There exists a highly engaged and experienced non-profit sector with
motivated volunteers, with impressive international accomplishments and
networks of contacts.
* There exists a strong and accomplished public and private K-12 school
system, and a wealth of higher education institutions (Florida Gulf Coast
University; Edison State College; Hodges; University of Miami; University
of Florida) both public and private in the area.
It is equally clear that if Collier County were to pursue the development of a
soft-landing accelerator, it would carve out and fill an important niche in the
14
Packet Page-382-
12/10/2013 10.C.
state's economic development landscape. It would do so by taking advantage of
the following:
* By being a one stop shop for small to mid-size out of region and
international companies looking to enter the U.S market alone or interested
in finding a joint venture partner.
* By acting as a key conduit for companies looking for venture capital, and
for venture capital looking for companies.
* By creating a network of partnerships with educational providers that can
help companies looking for research and development support and
expertise.
* By utilizing a strong region to region association with strategically
selected "global mirror regions" that link key economic development tools:
sharing of economic intelligence, structured introductions and visits for
companies and entrepreneurs, joint development projects, joint symposium
and workshops. Such a partnership might begin with a strategic
relationship with the South of France, the French Innovation Network, and
the French High Tech Park Sophia Antipolis, since delegations from that
region have already made multiple visit to the County and shown great
interest in collaboration.
* By creating a structured and engaging mentor and investment
environment to involve a unique and important Collier asset: the large
number of former Fortune 500 executives who currently reside in the
County.
Finally, Collier County also has the great advantage that it is already home to a
number of entrepreneurial activities that can help create powerful synergies
between area organizations, from VentureX a private shared office incubator
concept located in the fashionable and attractive Mercato shopping district in
Naples, to the Tamiami Angel Fund that successfully grew out of the Gulf Coast
Venture Forum (a 501(c)6 non-profit founded by local business leaders,
economic development professionals and university administrators). Indeed,
performance data from the Tamiami Angel Fund provides some insight to the
15
Packet Page-383-
12/10/2013 10.C.
type of entrepreneurial marketplace that currently exists in the region. A review
of the number of successful venture deals since the Tamiami Angel Fund's
inception in August 2010, shows that the fund received 838 applications for
funding, approved 46 for presentation, entered due diligence with 21 applicants,
and invested in 6. Those 6 firms received $1,574,999 directly from the fund, and
five of the 6 received additional add-on investments of$1,430,000. With that
level of success and interest, the fund has recently become engaged in raising a
second round of funding.
Focus, Focus, Focus
While a Collier soft-landing accelerator would clearly enjoy the comparative
advantages noted above, one of the key's to an accelerator's success is having
a clear focus on the type of companies it seeks to recruit and support. Synergy
is one of the key features of accelerators in that they bring a number of like
minded individuals together to share ideas, so much so, that these entrepreneurs
often end up building additional companies togethers. Incubators and
Accelerators that achieve "critical mass" in the type of companies they host
quickly gain a reputation in the field, and attract even more such companies.
Incubators, shared office centers, and accelerators that do not have a
strong focus, can and do successfully recruit entrepreneurs, but turnover
tends to be high, with many moving outside of the community due to the lack of
a well formed collegial infrastructure of support for their particular business
needs.
It is also important to recognize that while the partnership with international
16
Packet Page-384-
12/10/2013 10.C.
organizational and incubators (such as the French Innovation Network) offer an
outstanding opportunity, the Collier Accelerator goal should be primarily on soft-
landing clients and companies from within Florida and across the United States.
Recruited companies may be new start-up companies as well as providing a soft
landing platform for more mature companies in need of an integrated set of
professional services and economic intelligence.
In addition, the accelerator should not simply be focused on newly minted
entrepreneurs or new college graduates, but given the region's demographic, it
has an exceptional opportunity to recruit experienced retirees who are interested
in pursuing what is popularly known as "Encore" careers. Accelerator staff should
be encouraged to reach out to a number of organizations in the region from
the various Chamber's of Commerce to organizations like Score, and others
supported by the U.S. Small Business Administration who presently provide
mentorship to new entrepreneurs and businesses.
Finally, a Collier Accelerator should seek to be a "grand central station" that
provides a clearinghouse service for the State of Florida and region when it
comes across companies whose business interest and sector needs would be
better served elsewhere in the state. The accelerator's structure should allow for
partnerships between counties in a soft-landing consortium, with each area
connected to core staff housed in the Collier/Naples region. For example, Florida
Gulf Coast University has moved forward with the exciting "Innovation Hub"
project that focuses on building a research park "dedicated to sustainability and
renewable energy research." At the same time Charlotte County has examined
utilizing a portion of the former IMPAC University campus as a site for a high-tech
17
Packet Page-385-
12/10/2013 10.C.
incubator and has sought to develop a public-private partnership to oversee it.
Much in the same way that the Florida High Tech Corridor Council, which is a
regional economic development initiative in Central Florida based in Orlando,
works "to grow high tech industry and innovation through partnerships that
support research, marketing, workforce and entrepreneurship", the Collier soft-
landing Accelerator can serve as a similar means of sharing staff resources,
information, equipment and programs, with these type of regional endeavors and
organizations.
Enabling Collier's Three-Legged Economic Development Stool
Collier County through a soft-landing accelerator has the opportunity to be a
focal point in the development of new technology firms in areas where it already
has a proven past and great depth of experience and expertise. Three focal
business sectors were clearly identified through the interviews, where
participants felt Collier had attained a critical mass of companies where it
could support new technology start-up companies: health care with a particular
focus on smart health technologies; tourism and hospitality with a focus on the
new technologies shaping that industry; and agribusiness and sustainability
technologies.
Smart Health
Collier is already the home to world-class and innovative health care. From
the superb medical community that is here through health professionals
18
Packet Page-386-
12/10/2013 10.C.
manufacturers and institutions, Collier County can capitalize on these assets by
attracting new players in health technology, as well as raise its "brand"
recognition, by adopting a focus that promotes smart health and living longer and
well. Through the adoption of highly innovative programs such as Blue Zones —
whose motto is "Live Longer, Better" - that promotes healthy lifestyle by
optimizing already existing resources, Collier can leverage already existing
assets, raise awareness, and create new business opportunities. New
developments in wireless technology from Radio Frequency Identifcation (RFID)
and Bluetooth technologies are leading towards a revolution in what is
commonly known as "wearables" - technology devices that you wear. These
devices can passively monitor heart rates and other human functions, take
video, and collect information from the environment around them, allowing these
streams of data to be immediately analyzed and utilized, for example by
physicians, clinics, and emergency responders.
Tourism & Hospitality Technology
The tourism and hospitality sectors are seeing rapid change due to new
technologies entering the marketplace. The internet has become the focal point
for how individuals gather information, become educated, and engage in virtual
experiences prior to travel. As they begin their travel, they check and change
reservations, keep track of finances, examine receipts, all from mobile devices.
With homes now wired with entertainment systems, high speed internet, and high
tech appliances throughout the home, expectations in this sector are continually
being raised by consumers, and when not met, feedback is instantly shared with
the world in widely read blogs and rating web sites.
Collier and its cities are one of Florida's and the nation's premier vacation
19
Packet Page-387-
12/10/2013 10.C.
centers with exceptional ecosystems and beaches, with 5 star hotel and
restaurant experiences. Maintaining strong brand identification, and keeping up
with the ever changing technology trends is critical. As such, the opportunity to
grow and attract companies innovating in this space has never been greater,
given the potential markets that Florida can offers these entrepreneurs.
Agribusiness and Sustainability Technologies
Collier County with over 2300 square miles of acreage is one of the largest
counties in the eastern United States. A large percent of the acreage is
conservation lands owned and protected by the either the U.S. government and
the State of Florida, but a large percent is still available and heavily utilized by
agriculture interests in the County. With new trends in organics and locally
grown produce, combined with a growing population and thriving hospitality
sector, Collier has an opportunity to help entrepreneurs innovate throughout this
sector. Indeed, Culinary incubators (also know as shared use commercial
kitchens) have begun to sprout across the country, helping small businesses get
started by providing an FDA approved and licensed facility, that empowers these
entrepreneurs to develop new food and beverage products and share business
ideas and costs with other start-up manufacturers.
GETTING STARTED
20
Packet Page-388-
12/10/2013 10.C.
Throughout the interviews there was a clear desire to starting a Collier
soft-landing Accelerator, an organization that most felt should be organized and
run as a public non-profit organization. No single existing entity was identified
as the locational home for the Accelerator, although various area universities, the
Greater Naples Chamber of Commerce, the city of Naples, and Collier County
government were frequently mentioned. There was a strong general sense that
Collier County would serve as the best organizing agent to help get the new
organization started, and that the County Commission should appoint a Board
consisting of governmental, private sector and non-profit representatives, that
would hire a Director that would work towards the goal of having the organization
fully sustainable within a two year period.
It is estimated that the funding necessary to get started, would be
approximately $400,000 a year for two years, and the investment costs could be
split equally between local government and the private sector. Funds would go
towards leasing a space of approximately 3000-4000 square feet to house 15-20
recruited companies, the leasing of furniture and equipment, the hiring of core
staff (Director; Accelerator Services Manager; Administrative IT Assistant),
specialized service contracts (IT Consulting, Data Cloud Storage and Security,
24/7 Help Desk), soft-landing consultant services, and office supply and utility
costs. It should be noted that through this interview process, there were
individuals who generously suggested that they would make in-kind donations of
reduced rates for rented space, equipment, furnishings, and IT infrastructure
support in order to help the accelerator get started.
21
Packet Page-389-
12/10/2013 10.C.
At the same time, Federal and State appropriations and grants should be
aggressively pursued. The U.S. Department of Commerce, quarterly makes
matching grants available to localities that in Florida have ranged from $1 million
to $6 million for the development of business and economic development
incubators. In addition, annually through the State Budget process, the State of
Florida has made substantial resources available to local governments and
entities to help support the state's economic development goals. State seed
funds should be requested to begin the development of infrastructure and
facilities that have proven critical in the aforementioned focal areas. Potential
projects might include a digital media production and visualization center,
a 3D print and fabrication studio, a Global Telepresence & Collaborative
Communication Center, and an Immokalee Culinary Experimental Food
Incubator.
Conclusion
22
Packet Page-390-
12/10/2013 10.C.
This feasibility paper has shown that Collier County has a unique and
strategic opportunity to help support the region's economic development and the
welfare of its citizen's and businesses by developing a certified soft-landing
economic development accelerator at the same time it pursues strategic
economic linkages with a variety of global partners. To move this effort forward, it
is recommended that the Manager be directed to work with County staff to
accomplish the following:
(1) Aggressively pursue a wide variety of sources of funding to build the long-
term innovative infrastructure necessary to support start-up and soft-landing
companies in the county and region. This would include state and federal
government appropriations and grants requests, as well as targeted funding
requests to local, state, and national foundations. An appropriation request of
no less than $2.5 million should be made during the 2014 Florida Legislative
Session to support the development of Accelerator programming, build-out of
space and the purchase of equipment critical to the support of recruited
companies.
(2) Work to develop within the next 30-60 days, and return to this commission
recommendations for a plan that would provide local public sector seed
funding for a period not to exceed 2 years in duration and not in excess of
$200,000 per year, to be equally matched by private sector contributions, that
would provide initial funding to begin operation through the hiring of core
staff, use of dedicated Class A office space and equipment, and provision of
required soft-landing services as articulated in this analysis. Included should
be a plan on governance that would provide for a Board composed of public
and private individuals, operational oversight, and fiscal controls that would
meet all of the County's rules and requirements.
(3) Strategically pursue international linkage opportunities and partnerships in
identified focal sectors where Collier County has a clear and substantive
comparative advantage, and work closely with local and state public and
private agencies and organizations to further the economic development
goals as identified and articulated by this Commission and the State of
Florida.
23
Packet Page-391-
4' i -, 12/10/201310.0.
•
:ill. ., •--,: • 1....: : ...i:lif
4al
:'kl yak'
•
, 4::,.
. ,... ...,....
,.
,. .. ,,,--t--q-u-A..:• -
p •
z •
t i: s Iw
F:1 e :g ..q' r i �'
" A p::; i fi a Ft•
�.�..:.... , f M' - •• ... e •
-•„ii F z °r •3f r bti -•
A r N G E
:
` -•€ ' ..•••••5' , � � •
`+'. 1 - i•
,:. ,-:,.. . ...1:::'
tp.,r- SY ; K F
• ra..j 1 '''' ±-4.1..:••• •,',Ii''',:,...'.':-...r.' '• -'•••''"•'• ,,..''' '. '.t r{
• ,°
R I d , 4.`
: 5 fir- .a«. -rye 'i'•
•
-
lilt ......
) ' : . 'UPI C ,Y2 s..4!' :e . , ii.........t...11
:it.- ,,...•......,.: ..t1:4.. • ,.... ..... . .4 -1,., . ,.1. • . .. ... • .,
,. .. , ... . P
, .• .:,..•
.......s. .
.... 1.,..,......,:: ,
.
J
J . .
J r
`' '
r
r'
r.. y a •dd! ti ;., , _ Packet Page -392 ' ....•
�r ` - 'i - •
t x
E
12/10/2013 10.C.
��a , ,
Vii:
...r._ '.
fi
} �- $ {.
0 1
-
iii - te
illisals t, ....„„..,
i
•M
- \ ----rn ,,, ,,,,,,v,,'-r4,5.1--,/-4'`tt.14-4,"ii:''',` '"4.,
,. ' '
\ ;11' 1 i G)
,_
, 01)
4, a .,,
i._
. ,, ,
,.
, .
' il
c
e 7'i .
f
`�y.
i,„'', - r"1t
wr7i7AAL ‘4114.
1 Packet Pare -393 - ,
12/10/2013 10.C.
ELI Cf)
1
U
< -5.
Et
Ct W
z
0 (/)
W z
•
W
! L.I.- �-
0
co a_ Q
• Q 11_ Ct
1,11 0 w
Ct < <
I F-
0 CC
.
0
U Q Q
CL. > W
D 0
CO a
• z w
�, f!) F a
H LU
) D Cat p co
) C.t 2
0
z W z
0 U J
•
® a fZ
Ct Q W
I-- i . . W W
) < Z Z
) 0 1- 1- fz
Et En
J w' Cf) E
O.
ail CO w
Packet Page-394-
t
s
E 12/10/2013 10.C.
E
CO
2....)
Q
CO
U
0
LL
•_ U c U
._ •� .- o
2 cu LL
L 0) ._.a.)
c abeam
0) CO
E >
o 0 0)
I = U o J
I j o- c _
o �0 4.)o
0 o CO o
o - CO co 0
I c o :�=
.
I a €, `� = ?...,N
C 03
co c
-- o U Go =
C!3 .s= _o
(T5 = 0
c - E o C ,
c
i D III
.- 1 o •
1 h Packet Page-395-
` I • •
pk
L.T.
a) 12/10/2013 10.C.
a) . ...
c....)
o
c....) 4_0
< C) co
a) ...c
.....
1,.... .......
,....
.......
CO
® o
co
a.,) 2
L
(..) •_
CO
Z
C
0
C a.)
a) ......
co E c
0... a.
....... 03
CI
CC 0- E
c LL1 0
0
0 0
C) C) CD (11•00)
CD CI
C En
CO 0 0 .-
Si. C) o r
I
a 1 1
..c III 11111111•11111 CO)
E
0 o 0
?' = -0
C
73 c)
C6)a)
1�
c) a.'st. >CAS
0
73 0
CO c
-4 -+ -
CD Packet Page-396-
X11 CO
ril
w Via._ , � < ,. 12/10/2013 10.C.
r
,j;
yg F
.d', H 9 a.se "
CD
CIO , 41c4-'-'1 .i.:,
0 � C a--, .4 .µ , t ,�
� k
a) •
.4—• C
— *
n CI *
C
0
'al.—a C) =
a) CO
W.
as •....,
cn - E cy)
L.,= o a.) c
......
0-. CY)
c
C13 0
0
>,
1 E 0 LLI ......1
L) CC5
morass
CO 1.
(f)
CD 0
(1) CC)
C3) a moss
(i) 1 2 ..c) c ›,
cti .,..
coA., 1 Sia. = ■—
o .-
-1 —+ s.-
0
(1)
an ac
Pk et Page -397- '
i