A Foundation for Innovation (OPINION)

Communities and regions across the United States, having learned from the cascading effects of a national economic recession, are turning to strategies focused on innovation and entrepreneurship. It is clear that developing a robust innovation network is the key to fostering, growing and sustaining new firms that augment the local and regional economic ecosystem.

A 2013 study prepared by Battelle Technology Partnership Practice for the Association of University Research Parks states, “University research parks provide a best-practice means of focusing on innovation and sustaining economic competitiveness.” The study continues, “While university research parks do involve the development of a physical setting proximate to a research driver and thus involve commercial real estate activities, it is commercial real estate with a purpose. And that purpose is to advance regional innovation ecosystems.”

When the Innovation Center was dedicated in October 2004 at the Arkansas Research and Technology Park, the University of Arkansas Technology Development Foundation, together with its local and regional partners, took the initial step in implementing a bold plan to broaden the economic ecosystem of Northwest Arkansas. Over the past 10 years, a dynamic environment for innovation has been established where university research is being translated into innovative products supporting high-skill, high-wage jobs.

Today, the research park is recognized as a regional hub for innovation where business enterprises benefit from collaborative opportunities that provide access to intellectual capital, leading-edge research resources and a technologically skilled workforce. Moreover, through value-added service offerings, coupled with leading-edge facilities and research infrastructure, the ARTP provides technology-intensive companies a unique advantage in commercializing their innovative ideas.

But aside from contributing to the innovation ecosystem, the ARTP is also making a sizeable economic impact on our local and state economy. Economic activities have had a combined economic output impact of $523 million on the state of Arkansas over the period covering 2003 to 2014, according to the Center for Business and Economic Research at the University of Arkansas. I will come back to that figure in a moment.

Technology-based economic development is highly dependent on the supply of skilled workers able to fill the demand of rapidly growing technology companies. For that reason, the primary thrust of the strategic plan for the ARTP is to create an environment that generates a demand for high-wage, high-skill jobs that provide University of Arkansas graduates more opportunities to live and work right here in Arkansas. In that regard, corporate partners of the ARTP have accounted for hundreds of jobs, paying well in excess of the per capita personal income recorded for the state.

In fact, for the period from 2005 to 2014, corporate partners of the ARTP were responsible for $125.1 million in direct labor income and the total generated by the economic activities of these corporate partners was $189.5 million. Importantly, graduates of the University of Arkansas are filling many of the jobs created at the ARTP.

By concentrating cutting-edge facilities together with a rich pool of talent and innovative technology, the ARTP has proved to be a regional economic driver as measured by its contribution to the regional and state economy. According to the Center for Business and Economic Research, the operations of the ARTP – including the business expenditures of our affiliate companies and the associated construction activity – have exceeded $185.8 million since 2003.

In addition, labor income generated by the park’s overall economic activities totaled $206.5 million. Overall, $18 million in state and local taxes were generated on production, employment and wages associated with ARTP operations.

Through collaboration that leads to innovation, the ARTP is laying a foundation that leads to sustained prosperity in Arkansas. More importantly, we are providing our state’s college graduates the high-paying professional career opportunities to enable them to build their future — our common future — in Arkansas. 

Phil Stafford is president of the University of Arkansas Technology Development Foundation, which manages the Arkansas Research and Technology Park in Fayetteville. He can be reached at 479-575-8411 or by email at [email protected].