Creating the next technology boom: how do we ensure our region's economic future? Our long-term success will be measured by our ability to generate, attract and sustain companies in fields such as information technology and bioscience - Chief Executive Opinion

South Florida CEO, Feb, 2004 by Greg Nelson

More than those in almost any other field, technology companies find that in order to grow, they need outside expertise in specific, critical areas--such as intellectual property protection and venture capital fundraising. Having access to the right networks of information and resources can make a big difference in helping small businesses succeed.

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During the Internet craze of the late 1990's, it was almost a slam-dunk for start-up companies to find and pay a consultant to help them in those areas. After all, anything was possible. This was the age of technology, of the merger of the Internet with mainstream companies. Then reality set in, the bubble burst and growth gave way to mergers, acquisitions, bankruptcies and layoffs.

South Florida, or as it has come to be called, "The Internet Coast," was a major player in the boom. The abundance of a readily available workforce brought technology companies to the area in droves, and spawned the creation of new high-tech start-ups. The result: more than 6,000 technology companies generating over $29 billion in annual revenues in the region.

The growth of South Florida's technology industry did not happen by accident. It was fostered in part by the Enterprise Development Corporation of South Florida (EDC), a non-profit, public/private partnership founded in 1994, along with five similar entities statewide. Such collaborations had accelerated growth in areas such as California's Silicon Valley, North Carolina's Research Triangle Park and Massachusetts' Route 128 corridor, and Florida followed their lead to spur economic development in its high-tech sector.

While only three of the original Florida organizations remain active today, the "recession" has not slowed the EDC down. Since 2000 it has assisted more than 500 companies which have created more than 4,200 jobs and raised over $71 million in capital. Screening close to 200 companies each year in South Florida, the EDC provides free services to entrepreneurs working on technologies and products entering today's marketplace. Through its mentoring program, conferences and seminars, EDC is an incubator, both physical and virtual, that enables start-ups to grow. It is also a clearinghouse for much of the entrepreneurial activity that takes place in the region today, handling inquiries from investors and other business professionals who have an interest in South Florida.

For start-up companies, there is a correlation between funding and mentoring. Banks are reluctant to invest in the unknown. The backing and assistance of a main player like the EDC not only provides the new company with a steady stream of good advice, it also lets potential investors know that the start-up has a future. For example, the EDC helped NovaVision, a Boca Raton-based health sciences firm that provides therapy to restore vision lost to stroke or traumatic brain injury. The EDC assisted NovaVision with fundraising, resulting in a $6 million Series A round of financing. Visions East, a Ft. Lauderdale-based robotics company serving the maritime industry, raised $2 million with assistance from a contact made at an EDC event.

Beyond financing, entrepreneurs can't feel isolated, and organizations such as the EDC are an important way to bring them together with others in the field, and with both financial and non-financial resources. In addition to its blue-ribbon board of directors and its industrial partners, the EDC has developed relationships with area universities in order to stimulate technology commercialization and workforce preparedness. Since most of today's innovations--and tomorrow's technology workforce--come directly from academia, the organization's links to these institutions ensure that the public/private partnership model is complete. The EDC receives funding from local and federal agencies as well as corporate sponsors, making it a true model of community involvement and regionalism.

The EDC also manages the Technology Business Incubator in the FAU Research & Development Park in Boca Raton, where six young companies reside. In addition to the services that EDC directly provides, incubator companies benefit from flexible lease terms, shared facilities, and access to valuable FAU faculty and student resources. The combination of strong corporate and university partners, a mentoring program, and industry networking creates a synergy that supports technological growth.

Finally, in addition to capital and a vibrant university system, entrepreneurs need a sounding board for management to bounce ideas off, and the EDC helps fulfill this role with its staff, mentors and contacts. With support from some of the top organizations in the tri-county region, the EDC has amassed innumerable contacts in industry and academia that it calls on to assist in all aspects of technology research, development and commercialization.

To ensure that South Florida remains a strong and vital business location, it is not enough for business leaders to focus on their own bottom lines. They must find the time and make the effort to give birth to the next generation of the Internet Coast.