Looking for business opportunities? Check out your local STP

By Bud Gayhart

Those old enough to remember Andy Granatelli, former CEO of STP Corp., often referred to as Mr. Indy 500, recall that this flamboyant icon transformed a lackluster business into a formidable manufacturer. Back then, STP was recognized as an abbreviation for Studebaker Tested Products. Today, the term STP is an acronym for “Science and Technology Park,” a powerful driver of economic activity worldwide.

Science and technology parks got started in 1951 as “Silicon Valley” became a reality in Palo Alto, Calif. Technology advancements originating in this region are legendary. Companies like Hewlett-Packard, Apple, Intel, Advanced Micro Devices, Cisco Systems, Silicon Graphics and Sun Micro Systems are just a few of the success stories that originated in Silicon Valley.

Today, STPs are everywhere. Members of the International Association of Science Parks (IASP), based in Malaga, Spain, include more than 350 parks in 72 countries. Hundreds more science and technology parks are not members of IASP. New parks continue to be planned, constructed and launched worldwide.

The economic impact of STP business is staggering. More than 200,000 companies providing millions of jobs are located within STPs. While the number of employees is amazing, and the economic impact of salary/wage dollars flowing into local economies is huge, the greater value comes from the development of new products and technologies.

So how can a regional STP generate a positive impact for your company? Your business might be in a position to become a supplier of goods or services to STP tenants. As new technology businesses get started, they often need equipment and other fixed assets to support that launch. Other start-up needs may include office supplies, insurance, legal advice, accounting assistance, marketing help and other ancillary support.

New business ventures have limited internal resources and often rely on collaboration with other companies to make things run smoothly. Having a large number of STP businesses means many opportunities for other companies to serve as external resources. Examples of subcontracted services include machining work, assembly expertise, sourcing help, sales support and consulting assistance. Some subcontracted work can be extensive, providing a significant source of revenue.

New technology companies may grow rapidly depending on their products and services, and the advantage their technology provides. A rapidly growing business needs even more outside assistance. As these ventures expand and hire employees, additional dollars flow into the area economy.

Often a technology park will have an incubator facility where startup companies get launched. These incubator facilities usually have a manager with whom you can meet, discuss your services and see if there may be opportunities for you to connect with some of the tenant companies. Some of these incubator operations hold events or monthly activities, and these gatherings may be open to the public. If that is the case, attend these meetings, meet some of the business owners, and begin to establish links.

New technology parks encourage networking activities between business owners of enterprises within the building. Collaboration with businesses outside of the park is also encouraged. Incubator managers realize that their tenant companies thrive on innovation, and that sometimes innovation is spawned, encouraged and advanced through serendipitous discussions that occur around a water cooler, over coffee, or between dissimilar businesses. The sharing of ideas frequently results in new concepts bubbling to the surface, and sometimes, solutions to longstanding challenges can be discovered. These are more reasons for you to be involved in activities at incubators within science and technology parks.

If you have not been doing business with STP-based companies, I recommend you begin making connections. Businesses in Madison and the surrounding area may connect with the University Research Park (URP), which features an innovation center incubator and a collection of high-tech businesses. Their Web site, www.universityresearchpark.org, states that URP houses 115 tenants employing more than 3,500 people with an annual payroll that exceeds $260 million. If you are interested in conducting business with URP tenants, I recommend that you, at a minimum, apply to be listed in the URP “Business Directory.”

New business does not often find you. It needs to be discovered, and that happens when you become proactive. Don’t let new opportunities pass you by. Get involved and take an active role in expanding your company by connecting in creative ways with businesses within science and technology parks. The future is being created there. Become a part of it.
 

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