UI21 Inclusive Innovation Approach rev2016.key

An economic development approach that is working
to make sure that all communities are connected to the
Pittsburgh Region’s Economic prosperity.
THE “INCLUSIVE INNOVATION”
APPROACH
WILLIAM GENERETT JR., PRESIDENT & CEO
BACKGROUND INFORMATION
Urban Innovation21 is a unique public-private partnership
that is supporting the growth of entrepreneurship in our
region’s innovation economy and connecting that growth to
underserved communities and the residents that live in those
communities.
PITTSBURGH’S NEW ECONOMY
Today, the Pittsburgh region’s prosperity is powered by five
key industry sectors: advanced manufacturing, energy,
financial and business services, health care and life sciences
and information and communications technology. They are
the result of an economic transformation launched in the
early 1980s, as the steel industry restructured and the region
lost more than 100,000 jobs.
CONNECTING COMMUNITIES LEFT BEHIND
CHALLENGES:
The region’s economic transformation has not benefitted all
communities. Despite our success, poverty exists throughout
the region. This contrast can most readily be seen in
Pittsburgh’s diverse neighborhoods where high-income
communities are directly adjacent to very low-income
communities.
PITTSBURGH CENTRAL KEYSTONE INNOVATION ZONE
INCENTIVES SINCE 2007
KIZ TAX CREDIT PROGRAM
$6.5 million in direct cash
assistance to over 50
companies
PCKIZ GRANT PROGRAM
$462,000 in early-stage grant
funding to 24 companies
COMMUNITY-BASED ECONOMIC
DEVELOPMENT
$4m+ in direct funding for Hill
District-based economicdevelopment organizations
PCKIZ INTERNSHIP PROGRAM
600+ paid student internships55% female, 38%
underrepresented minorities
PCKIZ CONSORTIUM
Community partnerships to
provide leadership & help
coordinate economicdevelopment activities
The Pittsburgh Central Keystone Innovation Zone is a program of Urban Innovation21. Urban Innovation21 is a publicprivate partnership that boosts regional economic development through 21st-century innovation-driven entrepreneurship.
PITTSBURGH CENTRAL KEYSTONE INNOVATION ZONE
Significant transformation has occurred in the Greater Hill District
from 2007 until today.
▸ PCKIZ has supported 115 companies since 2007. These include:
The Resumator/Jazz, NoWait, AllPoint Systems, Bit-x-Bit, Special
Pathogens Laboratory, ShowClix, Pikimal/WebKite, and
dbMotion.
▸ 36 high-growth companies have started up, relocated, or are
growing in the Hill District and Uptown. The neighborhood
image has changed for the better (i.e. business development
and economic development can successfully occur)
PCKIZ COMPANIES
PCKIZ COMPANIES
DIVERSE INTERNSHIP AND WORKFORCE-DEVELOPMENT TRAINING PROGRAMS
INCLUSIVE INNOVATION INTERNSHIP PROGRAM
▸ Largest, most diverse innovation economy internship program in Pittsburgh region
▸ Students from Duquesne, Point Park, Carlow, CCAC
▸ PCKIZ companies, UPMC/Alcoa (Pittsburgh Promise), Community Partner Orgs
▸ 561 internship experiences at 126 companies*
▸ 55% female, 38% underrepresented minorities
▸ 84% graduated or will graduate from a 4-year program
▸ 79% graduated or will graduate from CCAC, 43% continuing to 4-year programs
▸ 80+% employer satisfaction (80% would hire, 87% “built capacity”)
▸ 68 interns hired by internship co.’s (69% women, 46% African American)
▸ 80% of employed alumni stay in Pittsburgh region
*As of December 2015
CREATING AN INCLUSIVE INNOVATION ECONOMY
SUCCESSFUL
BUSINESSES THAT SUPPORT AN
INNOVATION-ECONOMY ECOSYSTEM
SUCCESSFUL
SUPPLY-CHAIN BUSINESSES
THAT CONNECT TO THE INNOVATION
ECONOMY
SUCCESSFUL INNOVATIONECONOMY BUSINESSES
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OUR LOGIC MODEL FOR DISCIPLINED BUSINESS CREATION
CULTIVATE A PIPELINE OF
BUSINESSES VIA
COMPETITIONS AND
WORKSHOPS
MARKET AND ADVOCATE FOR
LOCAL BUSINESSES
FUND WINNING BUSINESSES
AND BUSINESSES SHOWING
PROMISE FROM WORKSHOPS
MONITOR AND HOLD
BUSINESSES ACCOUNTABLE
FOR METRICS & PRO FORMA
COMMITMENTS
SUPPORT BUSINESSES WITH
WRAPAROUND SERVICES TO
MINIMIZE START-UP EXPENSE
INCENTIVIZE
COMPLEMENTARY BUSINESSES
TO LOCATE IN UNDERSERVED
COMMUNITIES
SUCCESSFUL COMMUNITY-BASED ENTREPRENEURS
▸ GOAL: Create a cluster of businesses, owned
by residents of underserved communities, that
are connected to and profiting from our
region’s new prosperity.
▸ UI21 works with hundreds of communitybased entrepreneurs
▸ Successful entrepreneurs are connected
through contracts with anchor institutions
▸ Grant competitions provide wraparound
services to dozens of businesses annually
▸ KivaZip crowdfunding
▸ $46k in zero-interest loans to 11 borrowers
SUCCESSFUL COMMUNITY-BASED ENTREPRENEURS
▸ Since 2012*:
▸ Hill District: $135,000 in grants to 22 businesses
▸ 77% still in business
▸ 27 new jobs
▸ $767,000 in increased gross revenue
▸ Homewood: $250k in grants to 32 businesses
▸ 87.5% still in business
▸ 14 new jobs
▸ $247,000 in increased gross revenue
*As of March 2016
HILL DISTRICT COMMUNITY-BASED BUSINESSES
▸ Cupcakes Most
Wanted
▸ Ma’ats Righteous
Sweets
▸ Olmec Development
▸ Society Men’s
Grooming Lounge
▸ The Legacy Cafe
▸ EZDUZIT
Commercial
Cleaning
▸ Jessie Mae Peoples
Construction
▸ On The Go Fitness
▸ Power 59
Construction
▸ Uniqueca Dry
Cleaning
▸ Vision Towards
Peace
▸ Artistry Greenscapes
▸ Cameron
Professional Services
▸ Enjoyourself
▸ Grace Security
▸ Silq Concrete LLC
▸ The Pittsburgh Spot
HOMEWOOD COMMUNITY-BASED BUSINESSES
▸ A. Tyler Landscaping
▸ American Drain Cleaners
▸ Carter & Associates LLC
▸ Day La Soul
▸ Indulge With Mo
▸ KnotzLand
▸ Massage on the GO by
Teesha
▸ The Green Empress Food
Truck
▸ The Rebellious Lotus
▸ Williams Flagger Logistics
▸ Be Smart Energy
▸ Cutting Edge Lawn Care
▸ Homewood Purpose
▸ In A Reel LLC
▸ The Wheel Mill
▸ Wine and Words Pittsburgh
▸ Dorsey Records
▸ East End Notary
▸ Hajj Media
▸ Jones Printing
▸ Lady D’s Mini Mart
▸ Lively Roots
▸ Rug Lab Carpet Cleaning
▸ K-Theatre Dance Complex
▸ SJ Designs
▸ Pittsburgh Barber College
▸ Sustainable Homecare
Solutions
▸ Team PGH iPhone Fix
▸ Productivity LLC
▸ Uncle Mike’s Sandwich Shop
▸ SHINE Society of Excellence
HOMEWOOD INNOVATION ZONE
▸ GOAL: Replicate the success of the PCKIZ model to build a healthy business ecosystem in
Homewood through cluster creation.
▸ Successful clusters create a supportive business environment, increasing cluster members’ chances
of success
▸ Employees of cluster businesses support ancillary/supply-chain businesses
▸ Supply-chain businesses employ community residents
▸ High-growth clusters develop partnerships with community groups, giving residents access to jobs
▸ A strong business ecosystem creates & sustains jobs
▸ Successful clusters provide entrepreneurial opportunities for community residents:
▸ Cooperative businesses
▸ Equity stakes in new business ventures
▸ Traditional business ownership opportunities
HOMEWOOD INNOVATION ZONE - PROGRAMS AND INITIATIVES
▸ Small Business Grant Competition
▸ $100k in annual awards to Homewood entrepreneurs & business owners
▸ Over 50 grant recipients since 2013
▸ Support for newly-formed Homewood-Brushton Business Association
▸ Network of over 80 Homewood entrepreneurs & business owners
▸ Connections to citywide business-development resources & services
▸ CUE Pittsburgh, in partnership with City of Pgh, Google, Carnegie Library of Pittsburgh, Chatham CWE, & others
▸ 12-week “Digital Upgrade” workshop to improve businesses’ online presence
▸ Community-Based Intern Program
▸ Paid interns for local businesses & nonprofits, including TEKStart LLC, SHINE Society of Excellence, Homewood
Children’s Village
▸ Business Development Consultation
▸ UI21 CEO-In-Residence evaluates the business, identifies required resources for expansion/stabilization, connects to
UI21 partners, & provides entrepreneurial education through workshops and one-on-one consultations
REED SMITH PRO BONO LEGAL SERVICES PROGRAM
▸ Pro bono legal services for qualifying community-based
businesses
▸ Formal attorney/client relationships identical to those of
paying Reed Smith clients (including Fortune 1000
companies)
▸ Since inception in 2013:
▸ 35 participating community-based businesses
▸ $700k+ in services provided
CITIZEN SCIENCE LAB
▸ Unique, state-of-the-art life
sciences lab open to the
community
▸ STEM/STEAM programs during
and after school
▸ Weekend workshops for adults
▸ Summer camps
▸ Available resources for individuals
and businesses
OUR PARTNERS