Report: NCSU's Technology Incubator Helps Fuel Growth of Startups, Jobs

Research Triangle Park, N.C. — North Carolina State University’s technology incubator has helped create 26 companies that have generated more than 200 jobs and secured more than $36 million in funding, according to a new report from RTI international.

And more businesses are coming. The incubator, which is located on NCSU’s Centennial Campus in Raleigh, currently has 30 applicants. It was launched in 1999. More than 17,000 square feet of space, spread across two buildings, is devoted to the incubator.

NCSU’s Industrial Extension Service, which operates the incubator, commissioned RTI to conduct the survey. Its primary focus is the 26 companies that "graduated,” or left the incubator.

Incubator-related companies contributed $76 million to the North Carolina economy in 2007, the survey found. The businesses also were responsible for 900 jobs, including firms doing business with the graduates, and $6.5 million in state and local tax revenues.

Most of the startups’ funding came from out-of-state or foreign sources, with only $4 million generated in North Carolina. Foreign sources made up $5.5 million of the funding, and other U.S. sources were responsible for $15.2 million.

Of the 26 startups that have moved out of the incubator, 15 remain in business, the survey found. Five others merged or were acquired by other firms. Of the 15 still operating, 13 are still based in North Carolina, and 12 of those are in the Triangle.

Nine firms have licensed and are commercializing intellectual property developed at NCSU.

"NCSU strongly supports entrepreneurship and commercialization of technologies," Gene Fornaro, the incubator's director, said in a statement. "The incubator currently houses 30 start-up companies working on advanced textile technologies, genetic research, Information systems and advanced medical applications."

Among incubator graduates are:

• Nitronex (semiconductors)
• Sicel Medical Technologies (medical devices)
• BioResource International (biotechnology)
• Howstuffworks.com (media)
• Mi-Co (wireless data)
• Silicon Semiconductor (semiconductors)
• Athenix (biotechnology)
• Novovita (biotechnology)
• Pionic Technology (telecommunications)

According to the survey, companies cited several reasons for locating at the incubator:

• flexible and affordable lease terms
• access to NCSU-provided technical equipment and lab space
• access to NCSU faculty, staff and students

"The incubator helps small start-up companies bridge the challenging period between a great idea and a sustainable business," said study director Alan O'Connor, an economist in Technology Economics & Policy at RTI International. "The study showed how the incubator invigorates the local knowledge-based economy, attracting new business to North Carolina and home-growing higher-paying jobs."

NCSU paid RTI $21,000 to conduct the study.