State incubators see growth in the first responder market

Published 17 April 2007

Local technology initiatives take off nationwide, with planners attracted by low start up costs and big payoffs; South Carolina sees $14 in local economic activity for every dollar invested

We have always made a special effort to point out the importance of regional technology development inititiatives such as the South Carolina Research Authority (SCRA) and Maryland’s Chesapeake Innovation Center (CIC). (California, Idaho, New York, and almost a dozen others have similar programs.) We have not, however, had the opportunity to point out to our loyal state and municipal readership exactly how inexpensive such initiatives can be — Michigan created its Homeland Security and Entrepreneurship Center (HSIEC) for only $350,000 — nor have we discussed how the unique contracting structure of DHS encourages local economic growth.

The federal government often has a significant small business set-aside in the major homeland security sectors,” HSIEC director Bret Johnson told Government Security News. “Large system integrators look for that; they don’t have all the answers. We’re focusing on assisting smaller entrepreneurial companies that are often part of a larger solution.” Doing so can mean a raft of different support services, from providing inexpensive research space, providing access to capital, and corporate mentoring. “We create partnerships for small businesses, providing them with access to revenues as well as business support,” said SCRA’s Bill Mahoney. The San Diego Defense & Space Consortium, for instance, not only has developed a “virtual environment” companies can use to learn about relevent government contracts, it also facilitates the created of strategic alliances between consortium members.

The payoffs can be significant, (though we should as a caveat point out that CIC has struggled as of late.) According to South Carolina authorities, SCRA has generated

$14 in local economic activity for every $1 invested, helping to create over 15,000 jobs.” As for the future, many local authorities are looking to the first responder market — a market ripe for smaller companies with contacts close to home. “The shift of money is going from response activities to prevention activities,” said HSIEC’s Johnson.