The StARTup Incubator in the Erie Times-News

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Published: August 11, 2013 12:01 AM EST
Updated: August 9, 2013 7:30 AM EST

Guest Voice of Terry Smith: Innovate to grow jobs in Erie

Erie Times-News

By TERRY SMITH
Contributing writer

Northwestern Pennsylvania allows one of its greatest resources to slip through its fingers annually on a predictable cycle.

Each December and May, several thousand bright, well-educated adults graduate from the region's colleges and universities. Most of them leave the area because too few attractive jobs exist that would utilize their newly gained knowledge and appetites for achievement.

Many of those who remain wind up taking jobs that require less -- and reward less -- than the fruitful roles for which their education has prepared them.

This demand gap, a corollary to the much-discussed skills gap, was clear in the Federal Reserve Bank of Cleveland's recent analysis of education and employment in the state and western Pennsylvania. Among the conclusions, the report projected:

- An increase in demand for workers in jobs requiring long-term training.

- A shift of workers with higher educational levels into lower-skilled jobs.

The first reflects the skills gap; the second, the demand gap. Considerable attention is being paid locally to addressing the skills gap. However, focusing solely on the needs of our current employers, even if successful, is an incomplete strategy for economic development. The region must also promote innovation that yields products and builds companies that will provide our next great pool of quality jobs.

The nearly 20,000 students enrolled in higher education in Erie and Crawford counties are an enormous asset for the region. They are the foundation upon which an innovation-rich regional economy can be built.

Edinboro University of Pennsylvania, Allegheny College, Mercyhurst University, Gannon University and Penn State Behrend all offer programs that would lend themselves to the development of new, job-creating businesses. For example, we at Edinboro University know that art, especially our nationally recognized animation program, offers unique opportunities to pair innovative talent with the region's low cost of living to create viable new enterprises.

Former students of Edinboro's art program already have created well-known area businesses, such as Campbell Pottery, Relish beach glass jewelry, MoreFrames Animation and Flexcut Tool Co., and more success stories are possible. Over the past decade, the university also has been a catalyst in bringing together private and public funding to create the Startup Incubator, a nonprofit corporation dedicated to supporting the growth of arts-based businesses.

In just two years since its grand opening, the Startup Incubator has helped numerous artists start businesses. Successful products have earned their creators money and supported jobs in plastic molding and other industries. One of them, a pour cap for Mason jars created by Karen Rzepecki, was among the top sellers of the past Christmas season on Amazon.com, according to a congratulatory message from the online retailer.

I'm especially excited about the potential for animation to create well-paying jobs. Away from high-cost, high-pressure living on the East and West coasts but closely connected through digital communication, local animation firms could subcontract with film, television and commercial studios.

I know that similar potential exists for graduates at the other colleges and universities in our region. A modern economy thrives upon innovation, and the most valuable forms of innovation are knowledge-based. Northwestern Pennsylvania has a disproportionately large higher education community. What is missing is an equal-sized determination to put this resource into action.

I have listened carefully to the dialogue about the region's economy. I agree that we need a skilled workforce to sustain our region's resilient manufacturing industry. And yes, we should capitalize on our geographical advantage by encouraging businesses in the areas of logistics and recreation. But the greatest return on investment is knowledge-based innovation.

Our higher-education community provides an ample supply of knowledge. If we can provide a commensurate degree of support to its emerging business ideas, our region will turn the corner from mere survival to prosperity.

TERRY SMITH, Ph.D., Dean of the College of Arts and Sciences at Edinboro University of Pennsylvanian, is retiring after 16 years with the university.

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Published: September 15, 2013 12:01 AM EST
Updated: September 13, 2013 12:24 PM EST

Guest Voices: How to spark entrepreneurship in Erie

Erie Times-News

 

By BETH ZIMMER
and BRIAN SCOTT
Contributing writers

Net job growth occurs in the U.S. economy only through startup firms. So what is a "startup firm"?

A company that is in the first stages of its operations. They are initially bankrolled by their risk-taking, entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand.

There are two important concepts to consider for northwestern Pennsylvania's ability to prosper into the future that hold more relevance than much else.

The first is the fact that net job growth occurs only through startups. U.S. Census Bureau data reveals that, both on average and for all but seven years between 1977 and 2005, existing firms are net job destroyers, losing 1 million jobs net combined per year.

By contrast, in their first year, new firms add an average of 3 million jobs.

The second concept is even more sobering. Our "startup sector" or "entrepreneurial ecosystem" is definitely in need of serious upgrades. According to the 2012 "Generation Innovation" white paper and confirmed in the Destination Erie data, northwestern Pennsylvania is far behind the rest of the nation, as well as our own state, when it comes to the statistics that are used to gauge the health of a regional economy.

So what is the solution? The Innovation Collaborative is an initiative that is being led by the Technology Council of Northwest PA, known as the Tech Council. We have begun the work that is necessary to create a thriving entrepreneurial ecosystem here.

Northwestern Pennsylvania is privileged to have some excellent tools for entrepreneurs in place. Our universities provide entrepreneurship courses.

Organizations such as Small Business Development Centers, incubators, economic development agencies, funders like Ben Franklin Technology Partners, Bridgeway Capital and BlueTree Allied Angels, and other resources such as Athena PowerLink and Score all provide entrepreneurial support.

So with all of this, why do we still lag behind the rest of Pennsylvania and the U. S.?

This is the main question that the Innovation Collaborative is working to answer and eliminate. One of the reasons may be the fact that our culture doesn't perceive startups and their founders as the rock stars (wealth and job creators) that they really are. Therefore, the support and celebration of these activities is lacking in our region.

Another reason may be that, though the support assets that are in place work very hard, some important necessities are missing. Maybe most importantly, not enough is being done to leverage the collective value of all of the good work that is being done.

We have found that other regions across the country have come before us. Close to home, check out Pittsburgh's humming startup community. Northeastern Ohio is another great example. Our neighbors in western New York are about two years into their solution. Farther from home, Boulder, Colo., and Austin, Texas, have answered their challenges. Of course, Silicon Valley figured it all out a long time ago.

The IC team has been benchmarking these areas and talking to organizations across the U.S. that "coach" other regions about this challenge.

We are engaging with one of these coaches to start by clearly identifying the real strengths that currently exist within the startup sector here. With that, we'll also identify what these assets need to be even more effective. Concurrently, we will be learning what gaps exist and need to be filled. Our work will be prioritized based on the best possible impacts to our regional economy, through supporting our high-growth potential startups and their founders.

It is important to note that the Innovation Collaborative's entrepreneurial spirit takes this vision and plan well beyond studies. The team has begun to attract angel capital and to connect these angel groups with local startups. We are also connecting founders with other resources, including key mentors and potential customers from within and outside of the region. The Innovation Collaborative is a results-oriented group that is making a difference now.

Currently, the IC is made up of volunteers including private and nonprofit sector leaders, professors, university leaders, intellectual property and business attorneys, entrepreneurs, angel investors, government and economic development representatives, and philanthropists. Additional financial and human capital supports are needed. If you or someone you know is able to help in this important work, please contact us at your earliest convenience.

When the region is humming with high-growth startups, words like "brain drain" and "high unemployment" will be replaced with "brain gain" and "startups." Northwestern Pennsylvania's increase in net new jobs will be coming from thriving companies that are less than 5 years old.

BETH ZIMMER and BRIAN SCOTT are leading the Technology Council of Northwest PA's Innovation Collaborative. Zimmer is interim director of the Tech Council and has worked as an executive recruiter. Scott, an entrepreneur, is a former mergers and acquisitions executive. They can be reached on LinkedIn, Twitter or by calling 459-6262.

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Published: September 15, 2013 12:01 AM EST
Updated: September 13, 2013 2:30 PM EST

Our View: How to grow Erie jobs

Erie Times-News

Editorial

 

How do we grow jobs in Erie and lay the foundation for a prosperous future for our region?

One way is to celebrate and share the stories of today's successful businesses. That's the idea behind the second annual Commitment to Erie awards, a recognition program that the Erie Times-News began in 2012.

On Wednesday night at the Ambassador Center, two companies will receive our overall award: one with 50 or fewer employees and one with more than 50 employees. The finalists in the first group are Brewerie at Union Station, Lincoln Recycling, and Duskas-Martin Funeral Home and Crematory. The finalists in the second group are Lord Corp., Scott Enterprises Inc. and FMC Technologies.

Awards are also given for workplace of the year community service, new business of the year and nonprofit of the year. E.E. Austin & Son, Nick Scott Jr. of Scott Enterprises Inc., and Industrial Sales & Manufacturing Inc. are finalists for the Legacy Award, a new honor to recognize an individual, company or organization that has improved the region's economy and helped to transform the Erie community.

Five judges reviewed nearly 100 nominees to select 23 Commitment to Erie finalists. The large number of entries is a good sign for our region, where we are still struggling to regain our economic footing after the recession. Judges evaluated patterns of innovation and service to help businesses succeed into the future.

Even as we honor the successful employers of today, local leaders are also working hard to identify where the success stories of the future will develop. A common theme is that Erie needs to nurture entrepreneurs and help them secure the tools and investment they need to grow.

Beth Zimmer and Brian Scott help to spark that conversation in today's Guest Voice column. They amplify a theme that Terry Smith sounded in his Aug. 11 Guest Voice column. Now retired as dean of the College of Arts and Sciences at Edinboro University of Pennsylvania, Smith identified the challenges and opportunities our region faces. "A modern economy thrives upon innovation, and the most valuable forms of innovation are knowledge-based. Northwestern Pennsylvania has a disproportionately large higher education community. What is missing is an equal-sized determination to put this resource into action," he wrote.

Smith cited the success of the Startup Incubator, which helps artists to make and market their products. The InnovationErie Design Competition has been described as Erie's idea Olympics, and the winner of the Applied Media Arts track receives a Startup membership. Four finalists and a grand prize winner will be announced later this month. Today is the last day for the public to vote on Best in Show from 12 semifinalists at the Erie Art Museum.

The Commitment to Erie awards program is part of a broad movement to recognize and support innovation and entrepreneurship in Erie. Let's keep the conversation flowing and the momentum going.