Optimistic Leaders Launch Spark

University, business people team up to foster tech growth
Ann Arbor News – May 27, 2005

By Scott Anderson

With plastic champagne glasses raised and flickering Fourth of July
sparklers planted in ivory-colored cake, Ann Arbor's corporate, academic and
governmental elite helped usher in what many see as the largest concerted
effort to advance this area's technology economy.

They call it Spark, a recently incorporated nonprofit group with ambitious
goals: To build the region's tech community by retaining workers, growing
new companies and transferring university technology to the marketplace.
On Thursday afternoon, academics, entrepreneurs and local investors who pour
millions into their tech concepts hobnobbed, sipped wine and spoke the
language of big ideas.

"We intend for Spark to ignite the imagination of future leaders," said
Fawwaz Ulaby, University of Michigan's vice president for research. "We have
the technology, we have the resources. Let's keep them here."

Spark organizers hope to accomplish that by becoming a central hub for the
whole technology community, serving as a resource for existing businesses,
connecting them to investors, helping early entrepreneurs get the type of
guidance they need and marketing the county as a innovative place to land a
business or find a high-skilled worker.

In Spark, many see the linking of U-M's mission with the fate of the local
economy as never before, with an eye toward transitioning Washtenaw County
from a manufacturing economy to an information or knowledge-based economy.
"We owe it to the public that established the university and continues to
support it, to keep giving back to society," Ulaby said.

The university has committed $1 million of the $2 million Spark has raised
thus far from donors. Local microsystems entrepreneur Rick Snyder, who is
conducting many of the meetings to raise private funds for Spark, hopes to
garner a total of $3 million.

"The work starts today," Snyder told an audience of more than 150. Snyder,
who is chairman of Spark's board and was recently named chairman of
computer-maker Gateway Inc., said ultimately Spark is not only about
creating an environment where residents and their children want to stay, but
where they can afford to stay. It was a sentiment echoed by several others.
"What we're talking about is a 10- to 15-year effort," said Washtenaw County
Administrator Bob Guenzel, also a member of the Spark board.

Spark will not be a dues-paying membership group, Guenzel said. Instead, it
will act as a vehicle to coordinate sometimes splintered technology and
business groups. Spark's still-to-be-hired CEO and staff will operate in
recently renovated space at 330 E. Liberty St., which has been dubbed Spark
Central. Most know that spot as home to the Ann Arbor IT Zone, which will
continue to operate there. But that nonprofit technology group will transfer
its business development, or "accelerator" services, to Spark.

IT Zone President Diane Durance said Spark's growth will benefit all of the
region's business groups.

"Spark has several million" in contributions, she said. "But that's not
enough to turn around an economy. Everybody has to be involved."
For many, the development of Spark marks the natural progression of the
home-grown technology community.

"It really is kind of the next step in terms of supporting innovation in
this region," said Jill Arnold of Internet2, a nonprofit Internet research
project based in Ann Arbor.

Others believe the idea is critical to helping universities expand a culture
of entrepreneurship.

Lt. Gov. John Cherry, speaking at Thursday's event, said Spark as a model
should be exported around the state. He said the state could help underwrite
the organization if the governor's $2 billion bond proposal, which would
borrow money to invest in technology jobs, is submitted to and passed by
voters this fall.

Despite the overwhelming enthusiasm at Thursday's event, some business
people expressed cautious views about the initiative. Several have privately
pointed out previously unsuccessful plans by university and business leaders
to launch marketing plans here.

But organizers say this time they have a strong business model, a marketable
concept and buy-in from more than two dozen business or nonprofit groups.
Ultimately, the proof will be in the action of Spark, observers said.
"Everybody hopes this thing is going to succeed," said Bill Orabone, a local
technology financier who helped launch U-M startup firm Polytorx. "It's all
about execution."

Orabone said he hopes Spark will operate the way he believes a successful
startup company should - with a lean staff and clearly understood goals.
"The more bureaucracy (in Spark), the greater the likelihood it will fail,"
he said. He later added: "It has to operate philosophically like a startup,
and if we do that the better chances it has for success."

David Mielke, dean of Eastern Michigan University's College of Business,
said the Spark board, of which he is a member, is an "aggressive" group
whose members aren't shy about expressing their opinions.

"We expect results," he said. "That's why I'm optimistic that is this going
to be more than a lot of fluff and a lot more talk."

EMU will donate $50,000 annually for three years for Spark. U-M's $1 million
will be distributed over three years as well. Drugmaker Pfizer Inc. will be
contributing a total of $300,000, also spread over three years.

Edward Pagani, senior director and head of strategic alliances for Pfizer
Inc.'s Michigan Laboratories, said a key element of Spark will be helping to
transfer technology in the university labs to companies that can more
quickly get it to consumers.

"That is the vision, to do it better and do it faster," he said. "Spark is
going to be there to help glue all of that together."

He added that it's in Pfizer's best interests to grow a strong tech
community as a means for recruiting scientists, as well as "trailing
spouses," who would also be in search of a job.

2006, The Ann Arbor News. All rights reserved. Reprinted with permission.

Scott Anderson can be reached at sanderson@annarbornews.com or at (734)
994-6843.