Peoria NEXT Innovation Center: Frequently Asked Questions
Posted on April 7th, 2000
WHAT IS A TECHNOLOGY INCUBATOR?
A technology incubator provides specialized facilities and mentoring services to assist and accelerate the development of start-up companies.
WHAT IS THE PURPOSE OF A TECHNOLOGY INCUBATOR?
An incubator stimulates regional development and new economic growth sectors. Most incubators are not-for-profit entities that create jobs, attract private capital and build the tax base for the regions they serve.
HOW DOES AN INCUBATOR WORK?
The average start-up company matures in a technology incubator for roughly two to five years. During this time they hire employees and attract capital. Upon “graduation,” incubator companies establish their own facilities, expanding to benefit the local economy.
WHAT IS UNIQUE ABOUT A TECHNOLOGY INCUBATOR?
A technology incubator specializes in companies that offer products or services based on proprietary technology in fields such as life sciences, engineering and information technology. Technology companies are highly desirable from an economic perspective. They create a wide variety of jobs, including higher-paying professional jobs, and attract substantial private capital investment. These companies tend to be excellent corporate citizens in their communities, and are responsible environmental stewards.
WHO IS RESPONSIBLE FOR BUILDING THE INNOVATION CENTER?
The construction of the Innovation Center will occur as a collaborative partnership between Peoria NEXT and the Heartland Commerce & Economic Development Foundation.
WHAT WILL IT COST?
The cost of the Innovation Center is approximately $13 million.
WHERE WILL THE FUNDS COME FROM?
The following funding partners have contributed to the construction of the Peoria NEXT Innovation Center: The Illinois Department of Commerce and Economic Opportunity, the US Economic Development Administration, Caterpillar Inc., the Small Business Administration, Bradley University, Methodist Medical Center, and the US Department of Housing and Urban Development.
WHERE WILL THE INNOVATION
CENTER BE LOCATED?
The Innovation Center will be located on the 800 Block of West Main Street in the heart of Renaissance Park.
HOW LARGE WILL THE FACILITY BE?
The three-story Innovation Center will encompass 50,000 square-feet on approximately three acres (1 city block), fronting West Main Street.
Included in the Innovation Center will be individual tenant suites, wet lab space, dry lab space, shared-tenant conference rooms, shared common areas (business center, scientific equipment room, kitchen, etc.) and administrative/support office space.
WHO WILL OPERATE THE FACILITY?
The Heartland Commerce and Economic Development Foundation will own and operate the facility in collaboration with Peoria NEXT, Caterpillar Inc., and Bradley University.
HOW ARE OPERATIONS FUNDED?
Once they are up and running, many technology incubators are largely self-sustaining on rent from tenant companies. Rental income is normally sufficient, provided the cost of construction is covered by grants and donations without carrying forward debt and interest payments to burden future operations. During start-up years, operational funding may be supplemented by anticipated support from Peoria NEXT anchor organizations.
WHO WILL THE TENANTS BE?
Central Illinois has long thrived as an advanced entrepreneurial community. The Innovation Center will focus on the development of new technology companies from throughout the region.
For example, the USDA Ag Lab and the University of Illinois College of Medicine facilitate millions of dollars in annual technology research. Much of that research is well-suited for commercial viability. The Innovation Center will also leverage the strengths of Caterpillar Inc. and Bradley University to ensure the successful occupancy of the Innovation Center with appropriate innovators and business support resources.
Why a technology incubator?
Why is this critical to our region?
Facts about incubators
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