A Proposal from the University of New Mexico
To the Kauffman Collegiate Entrepreneurial Initiative
June 12, 2003
The proposal is divided into three phases each targeting a segment of the transition of the entrepreneurial experience for a college student as depicted in Figure 1.
Figure 1
Phase I deals with the first stage of entrepreneurial training, namely awareness. In this phase the would-be entrepreneur goes through a realization stage of the entrepreneurial opportunity and identification with that career path. If such identification occurs, a serious interest in business subjects follows. Phase II is intended to fulfill that desire for more business training that, for the typical college student, would accompany primary studies in a non-business subject. Finally, for those students who go on to form or join an entrepreneurial team, Phase III offers business incubation services for the start-up associated with the entrepreneurial team. Hence, the phases are integrated by a process that progressively addresses the needs of the prospective entrepreneur during his/her college tenure.
The business school at UNM, namely the Anderson Schools of Management (ASM), already has established undergraduate and graduate degreed programs that properly prepare their graduates for entrepreneurial careers in business. ASM currently offers coursework in entrepreneurial studies or Management of Technology to those enrolled in its graduate MBA program. In addition, a 3-2 MBA program has been initiated for students who wish to complete an undergraduate degree in engineering and an MBA in five academic years. What is proposed here, however, is a comprehensive academic program for offering entrepreneurial training to undergraduate or graduate students who do not enroll in existing ASM programs. Further, the programs being proposed in Phase I, II and III do not overlap or supplant coursework or activities in existing ASM curricula.
A. Phase I: University College – Entrepreneurial Training for Freshmen/Sophomores
Phase I of the proposal involves the development and deployment of a one semester long course (credit of 3 semester hours) made available to all freshmen and sophomores enrolled at UNM. The course is made part of the University College curriculum that targets primarily (but not exclusively) undergraduates who have not enrolled in a degree granting college. These undergraduates are often in the latter stages of their career planning and would benefit from a course that exposes them to the opportunities of an entrepreneurial career path. The placement of this course in the University College is strategic in the sense that a percentage of these undergraduates choose not to finish their college education for a variety of reasons. Thus, exposure to a possible entrepreneurial career path at this stage is critical for those students.
Course: Innovation 201 : Innovation in Society – Economic Contributions of Entrepreneurs
Purpose:
Expose value of entrepreneurialism to freshman or sophomore level students
Credit Value: 3 semester hours
Topics: Creation of Economic Value in Business; Societal Enablers to Innovation; How to Start a Business in New Mexico; Functions of a Business - Accounting & Finance, Marketing & Sales; Customers and Employees; the Business Plan. E-Team Formation and other material from the National Collegiate Inventors and Innovators Alliance.
B. Phase II. Upper Division & Graduate Studies - Entrepreneurial Training
The Phase II segment of the proposal involves the development and deployment of entrepreneurial training aimed at university upperclassmen, transfer and graduate students and faculty members. The first course, Innovation 455 targets graduate students, researchers and faculty members who wish to orient their research to those fields of endeavor that are more likely to result in discoveries that realize commercial value in the near term.
Course-Innovation 455:
Purpose:
Train researchers, graduate students and faculty members on the creation of intellectural property and its commercialization.
Credit Value: 3 semester hours
Topics: Discovery and Innovation & Commercialization of Technology – A Guide to the Creation of Intellectual Property with Commercial Value. Guest speakers will include venture capitalists, IP attorneys, entrepreneurs.
The second part of the Phase II proposal establishes a year-long course sequence for upperclassmen, graduate students and faculty members. The sequence has two versions, one for students with a technology based curriculum and one for students who choose to follow a non-technology based curriculum. Both sequences amount to intensive business training and hence require prerequisite courses in economics and statistics.
Courses - Innovation 456-7:
A two course, six semester hour overview of innovation subjects and business training in accounting & finance, marketing and sales, business formation and strategy. Aimed as an accelerated entrepreneurial course sequence for those non-technology students who are about to enter the commercial or industrial sector. Entrepreneurial team formation, business case studies and the development of a business plan are part of the course design. (Aimed at those students who intend to graduate from a curriculum in humanities, education, social sciences and other non-technology intensive areas) Econ 300 or equivalent and Statistics 345 or equivalent are prerequisites.
Courses - Innovation 458-9:
A two course, six semester hour overview of innovation subjects and business training in accounting & finance, marketing and sales, business formation and strategy. Entrepreneurial team formation, business case studies and the development of a business plan are part of the course design. (Aimed as an accelerated entrepreneurial course sequence for those students who intend to graduate from a technology intensive curriculum from the pure sciences, engineering, pharmacy, nursing, medical fields) Econ 300 or equivalent and Statistics 345 or equivalent are prerequisites..
The following is a graduate level sequence of business training courses the successful completion of which earns a Certificate in Management and Innovation; a total of 15 semester hours is required. An undergraduate degree, Econ 300 or equivalent and Statistics 345 or equivalent are prerequisites for any of these courses.
Innovation 501: Practices in Accounting and Finance
Innovation 502: Practices in Marketing and Sales
Innovation 503: Business Law, Ethics and Organizational Behavior
Innovation 504: Innovation, Technology and Project Management
Innovation 505: Business Formation, Business Strategy and Global Competition
In implementing Phase I and II of the proposal, proceeds from the Kauffman grant and matching funds would be used to hire and retain professors with superior teaching, mentoring and motivational skills and significant entrepreneurial experience in industry. This professorial staff would develop the course sequence for both on-campus and web-based deployment. The web version of the course sequence would aid in an outreach instructional program to the UNM branch campuses, community colleges across the state and the business incubator described in Phase III.
C. Phase III. UNM Campus-Based Technology Business Incubator
Well documented studies have shown that incubated companies have a much higher rate of business success than those that have not had the benefit of services commonly associated with a full service business incubator. Technology incubators have developed rapidly in the last ten years due to the development of best practices that have proven effective in maximizing the chances of success for technology based start-ups. Accordingly, data compiled by the National Business Incubation Association has also shown that university based incubators have been more successful in incubating fledgling companies and developing entrepreneurial teams through the final stages of business formation. The lack of full incubator services for technology-based start-ups in the UNM serving area has severely inhibited the creation and development of companies by entrepreneurial teams that would diversify the economy of the region, create new jobs and employ technical personnel available from university and national laboratory programs.
What is proposed in Phase III is the establishment of a full service technology incubator – The Rio Grande Innovation Center (RGIC). The activity of Phase III would provide a final training ground for those entrepreneurs who have taken advantage of the experience made available in the Phase I-II training programs offered at UNM. As an example, target clients for the RGIC would be technology start-ups in the UNM serving area which utilize intellectual property directly or indirectly from the University of New Mexico, Sandia National Laboratories and Los Alamos National Laboratories. Such start-ups do not currently have access to comprehensive value added services commonly found in technology incubators. These services include flexible leased space with access to wet and dry laboratories, business training, long term mentoring from experienced business advisors, advice on sales and marketing plans, entrepreneurial team formation, project management, technology assessment, client networking opportunities, advice on product development or product management, formulation of manufacturing strategy and assistance in procurement of funding.
Use of proceeds from the Kauffman Collegiate Entrepreneurial Initiative and matching funds would include: first, developing a business plan for a full service incubator in partnership with other economic development agencies at the national, state and local level; Second, refurbishing an existing building(s) located on the UNM campus as a technology incubator; third, engaging technical, business and administrative services from faculty and student interns in the College of Engineering, Health Sciences Center, Anderson Schools of Management and fourth, recruiting and retaining technology start-ups that would utilize the full business services available from the technology incubator.
Specifically, biotechnology, Microsystems, software coupled with complexity algorithms are examples of technology resident in the UNM serving area.It is estimated that RGIC could house approximately 10 start-up businesses within 12 months.
D. A Five Year Budget for Proposal
Below is outlined a budget for the use of $20 million that would be used for planning and implementing the proposed Phase I, II and III of the plan described above. The grant of $5 million anticipated from the Kauffman Foundation would be augmented with a 3 to 1 match of funds sourced from national, state and local supporters of university programs. The New Mexico legislature, with recent passage of Senate Bill 14, already has allocated matching funds for endowed professorships at UNM provided outside funds are received from university supporters or grants from private foundations. In addition, it is anticipated that seed funds for incubator services and investment can be made available from state and national programs. UNM’s record in grant awards and money raising is exemplified by the yearly growth in revenue from both sources. Last year, UNM accepted $40 million in donations and received $250 million in grant awards.
5 Year Budget for Phases I, II, III (includes Kauffman $5M)
Phase / Purpose / AmountI. Undergraduate / Endowed Faculty Positions / $3M
II. Upper Division & Graduate / Endowed Faculty Positions / $10M
III Incubator - Operations / Staff Positions & Expenses / $1.33
III Incubator – Seed Fund / Start-up Venture Fund / $5.67M
Totals / $20M
Currently, supporters of the University of New Mexico contribute services, equipment, property and cash through various development offices administered by individual colleges and schools at UNM. The University of New Mexico Foundation coordinates campus wide fund raising and is charged with the administration of UNM’s endowment fund. Commitments for matching funds for a grant from the Kauffman Entrepreneurial Collegiate Initiative would be coordinated among these development offices and the UNM Foundation.
E. Program Model for Other Universities
Many of the western mountain states, including Arizona, Utah, Wyoming, Montana, Idaho, Colorado, Nevada and New Mexico share several economic attributes besides large geographical areas. Their economies are based largely on one or more of the following industries – mining, ranching, tourism, forest products and technology. Government, whether federal, state or local, is among the largest employers of the state’s citizens. Native Americans and people of Hispanic heritage often constitute a significant portion of the population especially in Colorado, Utah, Arizona and New Mexico. Such cultural diversity in those states often implies that English is learned as a second language. Because of the large land mass constituting the state, besides a handful of large cities, many of the settlements in the state are rural in nature, a feature that taxes the provisioning of services from the state government, including the state universities, numbering few in number, and often only one or two of any size.
In attempting to provide college level education and training to its widely dispersed citizens, each of the mountain states has encouraged its state universities to use distance learning techniques such as correspondence courses, ITV and videotaped lectures. The web has provided a new vehicle for distance learning and its flexible media capability and cheap transmission method offer great promise for wide acceptance.
Due to the common attributes outlined above, the entrepreneurial training programs outlined in Phase I, II and III of this proposal can be used as a comprehensive model for any state university in the mountain states to deploy.
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APPENDICES
- University of New Mexico – Profile
- Entrepreneurship in New Mexico
- Contact for Proposal at UNM – A BIO
Appendix A. University of New Mexico - Profile
The University of New Mexico (UNM) was founded in 1889 as the state’s flagship university and it currently occupies 600 acres along old Route 66 in the heart of Albuquerque, a city of half a million people situated on the banks of the Rio Grande river.In the fall of 2002, 24,705 students attended main campus and another 7,090 attended branch campuses and education centers. UNM houses the state’s only schools of medicine, pharmacy, nursing, architecture and law. UNM's main and branch campuses offer 88 certificates, 97 associate degrees, 145 bachelor's degrees, 83 master's degrees, 42 doctorate degrees, three professional degrees, 11 post-master's certificates and eight education specialists. In 2002 U.S. News & World Report listed three programs in the UNM School of Medicine among the top 10 in the country – rural medicine, primary care and family medicine. The UNM clinical law training program is in the top 10 while UNM's School of Engineering was among the top 50 engineering schools in the country.
Total budget revenue for UNM in 2002 was $1,267,900,000. The Health Sciences Center is the state's largest integrated health care treatment, research and education organization. Among the university's other outstanding research units are the High Performance Computing Center, New Mexico Engineering Research Institute, Center for High Technology Materials, Design Planning Assistance Center, Environmental Law and Policy and the Center for Non-Invasive Diagnosis. Significant technology research at UNM is carried out in joint partnership with the neighboring national laboratories – Sandia National Labs in Albuquerque and Los Alamos National Labs in Los Alamos.
The University has branch campuses in the northern part of the state - Gallup, Los Alamos, Taos and Valencia County. In addition, UNM offers graduate and upper division programs in Los Alamos and Santa Fe. UNM's libraries, museums, galleries and Center for the Arts form a rich cultural resource for the state.
UNM’s role as a flagship university in New Mexico is not unlike the role played by one or two state universities in each of the eight lightly populated “mountain” states – NM, AZ, NV, CO, MT, ID, WY and UT. Each major state university in these states has the challenge of serving its constituency over a large geographical area that is mainly rural in nature with few metropolitan centers.
Appendix B. Entrepreneurship in New Mexico
There are several technology clusters that have “sprouted” in New Mexico over the past 15 to 20 years partly due to technology transfer programs at its two national laboratories and its state universities. Companies in fuel cell energy conversion, opto-electronics, metrology have joined three major clusters described below that continue to prosper. None of the clusters, however, have produced a major corporation of any significant size nor been involved in a high profile IPO underwritten by a major investment bank. Undoubtedly, growth in each of these three clusters can be accelerated through university-based entrepreneurial programs and start-up nurturing services at a business incubator.
B1. Bio-technology
The Biomedical Research Corridor in New Mexico includes over 15 biotechnology companies, research centers and affiliates that exist, in part, due to the presence of the UNM Health Sciences Center (HSC) that includes its School of Medicine and Colleges of Pharmacy and Nursing and the University Hospital. HSC’s top rated programs in rural medicine, primary and family care have attracted world class researchers and physicians. Research grants of over $100 million support new research in infectious diseases, cancer, asthma, endocrine disorders, neurological diseases and environmental health. To maximize the impact that this new research can have on the lives of millions of people, the HSC has made a concerted effort to transition its research efforts into new products, new drugs and medical devices and procedures that create new medical knowledge, intellectual capital and jobs. This effort involves partnerships with industry in biomedical and biotechnology fields. Commercialization of HSC research and an accompanying entrepreneurial incentive have been made a priority for students and faculty. The development of the Biomedical Research Corridor has already created 1200 new jobs and promises to contribute to the diversification of New Mexico’s economy. This new biotechnology industry will provide jobs for graduates of New Mexico schools reversing the trend of having half of all UNM college graduates leave the state for gainful employment. To fuel the growth of the biotechnology cluster, UNM’s HSC has also teamed up with the Health Occupations Department at the Albuquerque Technical Vocational Institute to provide a training program for future biotechnicians.
B2. Microsystems
Central New Mexico has been identified as a region that has fostered growth in the microsystems industry in the US. Over 25 companies have identified themselves in the Albuquerque area as involved in microsystems or nanotechnology products or services.Although much of the microsystems research that contributed to the cluster’s growth originated at Sandia National Laboratories in Albuquerque, the University of New Mexico (UNM) has played a key role in fueling the growth in several ways. First, UNM has conducted open research in microsystems and nanotechnology fields within the School of Engineering and at its Center for High Technology Materials (CHTM).Second, training for “cleanroom” operations has been conducted at the School of Engineering’s Manufacturing Training and Technology Center (MTTC). This valuable semiconductor cleanroom operations experience has produced a “microsystems ready” workforce of engineers (graduate and undergraduate) as well as technicians from neighboring community colleges. The MTTC has also offered its microelectronics fabrication facilities to high-tech start-ups. Third, UNM’s business school, the Anderson Schools of Management (ASM), through its Management of Technology program (MOT), has focused on assisting a number of Albuquerque-based microsystems “start-ups” in writing business plans for soliciting funding from investors. Fourth, UNM’s south campus, location of both the CHTM and MTTC facilities, is the home of UNM’s Science and Technology Corporation (STC), a non-profit 501 (c ) (3) entity that (a) manages UNM’s intellectual property portfolio; (b) encourages start-ups and established companies to exploit UNM’s scientific patents; and (c ) leases office space to young companies, including those that have been founded by UNM researchers, faculty and students. In the past few years, five companies have been spun off from university based research efforts.