Thursday, Jan. 21, 2010, the University of Missouri System announced in a press release posted to the website that the System intended to spend up to $5 million to create an Enterprise Investment Program.
The program will create startup companies across Missouri that will help to increase the number of jobs available for Missouri citizens.
President of the UM System, Gary Forsee, announced in his annual “State of the University” speech that the System planned to begin to be “part of the solution” to improve the state’s current economy. In his speech, Forsee stressed the importance of the new program by pointing out the various ways in which it would aid the citizens of Missouri. Forsee said that not only would the new program help commercialize the products and discoveries of the UM System faculty, but it would also help to create jobs for Missourians, as well as help to increase the university’s expertise in new areas including the life sciences, nano science, information technology, engineering, medicine/medical devices and energy.
“It is imperative that we transform our Missouri economy so we are embracing the high-tech industries of the 21st century,” David Kerr, director of the Missouri Department of Economic Development, was quoted as saying in a press release posted on the website by the System. “An initiative such as the Enterprise investment program will merge the best minds in the University System with entrepreneurs at start-up companies across our state, which will create quality jobs for Missourians in the cutting-edge industries of the future.”
The System plans to begin work on the program this summer, beginning with an outside advisory panel that will be implemented to go over applications for funding and suggest which should receive funding. Right now, the System plans to give funding to the first eligible companies in the fall of 2010.
In order for a company to be considered eligible for funding, there are certain requirements—although some are still going through the process of becoming finalized—that the company will have to fulfill. Some of the key minimum requirements are that the business must be licensed to practice business in the state as well as all employees and assets must be “maintained” in Missouri, and the companies must agree to supplement the university with quarterly progress reports. The companies must also be aware that they will receive funding installments “based on achievement of agreed-upon milestones.”
President Forsee also expressed his opinion that, despite the economic challenges facing the state, the System should continue to invest in “moving innovation into the marketplace.”
“As the state’s largest public research university, we believe we are an engine for growth in Missouri,” Forsee said. “We are committed to investing in our economic development program across the state.”
Vice President of Economic Development, Michael F. Nichols, said that the UM System will be one of the first to create a program like this. Nichols said that because it is such a new program, the university wants to make sure everything is done right, even if it takes longer and is consulting with some other institutions that have put similar programs into place.
“[It’s] a new program, no one else has done this in the state, so we are taking our time to make sure we are getting [all] our factors considered,” Nichols said.
Nichols explained that one of the goals of the program is to make it self-sustaining, and he urged private individuals to think about supporting and investing in the projects.