MSU faculty members will benefit from the Ingham County regional SmartZone, which will help them research and start their own companies and support businesses in early stages.
The regional SmartZone is a designated area in which developing, technology-based businesses are "incubated," or fostered, by established corporations. The goal is to create more jobs in technology areas that are expected to grow and advance.
Both MSU and the surrounding cities agreed the SmartZone was necessary to help economic growth.
"We agreed that we wanted a regional SmartZone," East Lansing Mayor Mark Meadows said. "All of us want to take advantage of the growth in that area."
Meadows said this was an opportunity to replace the dwindling number of industrial jobs with technological-based businesses.
The Michigan Economic Development Corporation has helped develop 11 SmartZones around the state. According to Michigan's Strategic Budget, SmartZones have created $120 million in investments for Michigan.
Research provided by MSU is needed to create companies, which the university has done in the past.
Paul Hunt, associate vice president for research at MSU, said the university supports the regional SmartZone, which will help MSU spin-off companies.
A spin-off results when a faculty member has either an invention or idea that can be patented.
Instead of licensing the patent to another company, the faculty member takes his or her research and creates a company.
The invention or idea that is commercially marketed by the spin-off company is property of MSU, which receives royalties.
"We're trying to inspire this kind of entrepreneurial activity at MSU," Hunt said.
Two spin-off companies - AFID Therapeutics Inc. and Claytec Inc. - started by MSU faculty, are being incubated by Michigan Biotechnological Institute International, Hunt said. MBI International is a biotech firm which specializes in innovation and commercialization.
As an incubator, the institute consults and helps create the foundations of the company.
The regional SmartZone will not only attract more business and provide incentive for MSU faculty to start companies, it will give students a chance to interact and intern with businesses around the Lansing area, Hunt said.
Mark Stowers, president and CEO of MBI International in Lansing, said the institute's position as a member of the SmartZone initiative is to assist with starting businesses.
This would include helping register with the state, help create an accounting system, prepare tax information and provide technical support.
MBI will also help starting businesses with lab and office space and renting equipment time if equipment is too expensive to buy.
"We provide business planning functions," Stowers said.
Ron Averill, president and CEO of Red Cedar Technology Inc. in Lansing, said although his company has not been involved yet, he is still supportive of SmartZone.
"We're supporting it in the fact that we've been a small company in Lansing for the last five-and-a-half years," Averill said. "I think it's going to be very beneficial."
