October 10 2011 Ann Arbor SPARK 2006 Ann

Mission Statement “SPARK” will be the driving force in establishing the greater Ann Arbor region as a desired place for business expansion and location. . . by identifying and meeting the needs of business at every stage, from those that are established to those working to successfully © 2006 Ann Arbor SPARK commercialize innovations. 2

Organization • Merger of Washtenaw Development Council, Ann Arbor IT Zone and Ann Arbor SPARK • Public – Private partnership among academia, business, government and not-for-profit organizations • Governed by a dynamic board of directors • Led by superior caliber employees, consultants and volunteers © 2006 Ann Arbor SPARK • Stakeholders include: universities, businesses, state and local governments, regional innovation focused membership organizations 3

Guiding Principles ü High-value, knowledge-intensive, diverse workers ü Innovation in products, services and delivery ü Ann Arbor USA (brand entire region) ü Proactive versus reactive ü “Open Source Economic Development” © 2006 Ann Arbor SPARK • Statewide Collaboration/Partnerships 4

Open Source Partners Accelerate Michigan Ann Arbor Angels Ann Arbor Area CVB Ann Arbor Board of Realtors Ann Arbor Business Review Ann Arbor/Ypsilanti Chamber Ann Arbor Community Foundation Ann Arbor. com Ann Arbor-Ypsilanti, LDFA Automation Alley Business Accelerator Network for Southeast Michigan • Business Leaders for Michigan • • • County and Local Units of Government Detroit Regional Economic Partnership Eastern Michigan University Enterprise Group of Jackson Genesee/Flint Regional Partnership Home Builders Association of Washtenaw County • Macomb Oakland Incubator • Mich. Bio • Michigan Department of Labor and Economic Growth ü = Regional/State Partners • = Washtenaw County Partners © 2006 Ann Arbor SPARK • • • 5

Open Source Partners ü ü ü • ü Southwest Michigan First Tech. Town Traverse City Chamber of Commerce University of Michigan University Research Corridor Washtenaw Community College West Michigan Science & Technology Initiative • Washtenaw County United Way ü Wayne County EDGE ü Wayne State University • Ypsilanti CVB ü = Regional/State Partners • = Washtenaw County Partners © 2006 Ann Arbor SPARK ü Michigan Economic Development Corporation ü Michigan Manufacturing Technology Center ü Michigan Smart. Zones ü Michigan Venture Capital Association • Washtenaw County, Michigan Works!/ETCS ü New Economy Initiative for SE Michigan ü Next. Energy ü Small Business & Technology Development Centers 6

© 2006 Ann Arbor SPARK Municipal Funding Support 7

© 2006 Ann Arbor SPARK Vital Cycle of Success 8

Outward-Oriented Industries Drive Rest of the Economy © 2006 Ann Arbor SPARK 1. Advanced Automotive Manufacturing & Materials 2. Aerospace Engineering & Manufacturing 3. Cleantech 4. Homeland Security & Defense 5. IT/Software 6. Life Sciences 7. Optics/Measurement 8. Printing & Publishing 9

© 2006 Ann Arbor SPARK Community Success Factors Shaped By Our Public-Private Partnership 10

Targeted Industry Sectors Focus on a finite set of emerging technologies or industry sectors • Advanced Automotive Manufacturing and Materials • Aerospace Engineering and Manufacturing • Cleantech • Homeland Security and Defense • IT / Software • Life Sciences • Optics / Measurement © 2006 Ann Arbor SPARK • Printing and Publishing 11

Business Expansion and Attraction The SPARK expansion and attraction team services include: • Customized site searches of industrial and office buildings • Consulting and targeting of business incentives and tax credits • A database of employers and services in the region that is continually updated and expanded • Provision of business costs, demographics and other statistical data • Community tours and introductions to business leaders © 2006 Ann Arbor SPARK • Access to business, educational and community resources 12

Business Expansion and Attraction Mich. AGAIN • Target UM, MSU Alumni hot spots • Alumni Reception • Targeted Companies for One on One Meetings • Site Selection Consultants • Venture Capital Firms • 2010 -2011 -Austin, Chicago, Boston, San Francisco, San Jose • Successes-Cataphora-Languagemate © 2006 Ann Arbor SPARK • 2012 -Boston, Chicago, New York, San Francisco/San Jose, San Diego/LA, Denver 12

2010 Successes v A&D Technology, ACH Instruments, Adaptive Materials, Aeroflex Enmet, Amcor, Arbor Networks, Boro. Pharm, CEI Composites, Dexter Research, Diggy. POD, Edwards Brothers, Fastener Advance Products, Flatout Bread, Ford Rawsonville, Frame Hardwoods, Grand River, Heron Wind, Hygieia, i 3 D Technologies, Image Data, Integrated Sensing Systems, In. Touch Health, JAC Products, Masco Cabinetry, Nano. Bio, Phoenix Contact Inc, © 2006 Ann Arbor SPARK Quantum Signal, Retrosense, Robert Bosch, Saline Lectronics, Sheridan Books, Sun Engineering 13

Talent Services Companies • Recruiting services to candidates through targeted job postings • Workforce availability and compensation research • Access to pool of executive level candidates © 2006 Ann Arbor SPARK Entrepreneurs • Job/co-founder/advisory board members • Training programs • Access to pool of executive level candidates 14

Talent Services Opportunity Seekers • Job postings and opportunities • Networking events © 2006 Ann Arbor SPARK Community • Strategic workforce research and planning • University graduate talent attraction and retention programs 15

Business Accelerator SPARK’s Business Accelerator Services • Entrepreneur Boot Camp • Intensive one-on-one coaching • Attraction of funding via angels, VC’s, state/federal grants • Business-critical introductions • Market research and competitive analysis • Intellectual property validation • Talent needs assessment and recruitment • Review product plans, validation steps, and regulatory issues © 2006 Ann Arbor SPARK • Business plan review and assistance 16

Michigan Pre-Seed Capital/Microloan Fund ($16. 8 million) Eligibility: • Competitive edge technology sectors; life sciences, advanced automotive, manufacturing or materials, homeland security and defense and alternative energy • 20 Ann Arbor companies have received $3. 352 million of investment from this fund, matched with $6. 7 million • 98 jobs at time of investment, 138 jobs today © 2006 Ann Arbor SPARK • Ownership or license to innovative technology 17

Regional Incubator Network Project Goals: • Improve the business climate for competitive-edge technology companies in the Ann Arbor region • Preserve valuable wet laboratory space • Foster new life science, IT/software, alternative energy start-ups • Retain and attract highly skilled talent, creating new highwage employment opportunities • 4 SPARK Central tenants have “graduated” and located elsewhere in the city due to increased employment © 2006 Ann Arbor SPARK • Provide a competitive advantage to Ann Arbor start-up companies 18

2010 SPARK Success • 42 (15 in city) company growth projects creating: – $151 million in new investment commitments – 1, 425 new jobs • Assisted 62 innovation start-ups • Awarded 12 pre-seed investments – 3 in the city of Ann Arbor - $750, 000 • 30 microloans – 18 in the city of Ann Arbor – total loans $596, 000 • Nurturing 60 incubator tenants – 17 in SPARK Central © 2006 Ann Arbor SPARK • Assisted 400 companies with 1, 300 job postings 19

Ann Arbor Region ROI 2006 – 2010 YTD Results • 176 project successes - $1. 25 billion new investment commitments – 59 in the city, $165, 971, 869 new investment • 10, 474 new jobs and 6, 236 jobs retained – In Ann Arbor 3, 692 new jobs, 2, 072 retained Assisted 278 innovation start-ups 48 Microloans in 46 companies ($39 k/company average) 177 tenants in three regional incubators Leveraged community investments to over $34 million – through Federal and State grants, equipment donation to MIED, foundations and other sources • Assisted 1, 401 companies with 4, 105 job postings • Assisted 4, 300+ job seekers with employment searches © 2006 Ann Arbor SPARK • • 20