The Science Center Unveils Bold New Strategic Direction
Transforming the Science Center into a world-class commercialization engine will have lasting benefits for the Greater Philadelphia region and the Commonwealth at large, including increased investment capital, job growth, higher real estate values, greater tax revenues, and improved quality of life for the local West Philadelphia community. It will also help regional educational and medical institutions win research grants, capitalize on early-stage research, and attract the finest faculty and brightest students.
"This region benefits from about $1 billion in NIH research grants and over $3 billion in corporate R&D annually, yet there is no organized mechanism to commercialize new inventions into thriving companies that contribute to the region's economic vitality," says Dr. Pradip Banerjee, CEO of the Science Center. "Our new strategy provides a systematic answer—from actively forming corporate concepts, to funding them, to providing management services, to providing the technology environment and the real estate to house them."
To implement this exciting new vision, the Science Center is introducing the following changes, including reorganization around two business platforms, a new $10 million investment capital fund, an expanded management support program for startup companies, and redevelopment of its real estate assets along Market Street to attract a greater number of life science and technology businesses:
--A New Business Cultivation Platform focused on creating startup ventures in the Greater Philadelphia area, and growing those entities through to mezzanine-level funding. A former IBM executive, Bill Sydnes, recently joined the Science Center as Senior Vice President of Commercialization. The Science Center's business cultivation platform will involve establishing more and stronger collaborative relationships with technology transfer operations, local universities, national laboratories, and corporate out-licensing groups (which spin companies and technologies out of larger corporations). In addition, the Science Center is establishing a Business Advisory Committee and a Scientific Advisory Committee, which will help identify candidates with the highest growth potential.
--A New $10 Million Investment Fund, tentatively named ‘Science Center Capital', has been approved by the Board of Directors to start new companies. The fund will be established from the Science Center's own funds, and will be fuel and nurture early-stage companies until they are investment-grade, after which the Science Center will either retain an equity position in the companies, or cash-out to recover some or all of the initial investment.
--A New Management Services Unit will shepherd startup companies through start-up and growth phases by providing acting temporary executive officers, such as CEO, CFO, and COO; and by providing fundamental leadership, management, information technology, fund raising, human resources, and finance management services crucial to the long-term success of young technology companies.
--An Enhanced Real Estate Business Platform, which will be run as an independent, self-sufficient, P&L oriented unit. Modeled on extraordinarily successful research park developments such as Boston's Kendall Square and Seattle's University District, the Science Center's enhanced real estate image will initially focus on developing vacant lots in the 37th and Market Street region. Plans are being drafted to add up to 2 million square feet of new laboratory, high-tech Class A office, retail, conference, and housing facilities to attract and sustain life science and technology startup operations. The goal: to create the ultimate community for life science and technology entrepreneurs to work, live, and play.
"This is a full lifecycle management of technology commercialization that's coming into place, and the result will absolutely transform the Greater Philadelphia community into something akin to the Cambridge/Boston environment," says Science Center Chairman Richard Jaffe. "Taken together, we expect to see 40 new companies operating at the Science Center by 2010, with a market cap of $1 billion. This is a great development for the local universities, communities, and entrepreneurs, and will boost the economic value of this entire region."