Innovation : Innovation + Job News

The state and five universities are spending upwards of $5.8 million to help startups move from a concept to a company.  

Senate Bill 239/House Bill 442 establishes the Maryland Innovation Initiative Fund under the aegis of the Maryland Technology Development Corporation, or TEDCO. The bill passed the Maryland House and Senate and awaits the signature of Gov. Martin O'Malley, who is expected to sign it. 

“Maryland has premiere research universities but it ranks low on technology transfer,” Brian Levine, vice president, government relations, Tech Council of Maryland, says of the fund, which is intended to remedy that situation.
 
To participate in the fund, five universities are contributing to it. Johns Hopkins University, University of Maryland College Park and University of Maryland, Baltimore will each contribute at least $200,000 per year. The University of Maryland, Baltimore County and Morgan State University will contribute at least $100,000 per year. The state has allocated $5 million to the fund, which will begin operating July 1.
 
Calling the fund “a great benefit for the state,” Rob Rosenbaum, TEDCO’s president and executive director, says. “We have so much research but commercialization is needed. We have to stimulate that activity.”

TEDCO is establishing an office to administer the fund. The fund helps technology concepts reach the startup phase by providing marketing and supporting the the technology transfer offices that already exist at the participating universities.
 
Rosenbaum says the fund intends to work with 40 projects per year that will result in 12 to 15 new companies. Startup companies initially generate 2.5 jobs on average, with salaries the first year of more than $75,000 per job.
 
Rosenbaum says that “all policies of the fund have not yet been defined” but the hope is that the startups it helps stay in Maryland.
 
Ronald Wineholt, vice president of government affairs of the Maryland Chamber of Commerce, says the legislation provides better coordination of the universities’ transfer efforts. “Now that it’s under TEDCO, it’s a state-wide effort rather than an individual university,” he says.
 
Sources: Brian Levine, Tech Council of Maryland; Rob Rosenbaum, Maryland Technology Development Corporation (TEDCO); Ronald Wineholt, Maryland Chamber of Commerce
Writer: Barbara Pash

Newly passed legislation allows the state to review tax credits for individuals and businesses and to evaluate whether the credits are benefiting the state. 

The legislation eliminated a provision to "sunset", or automatically terminate, tax credits after businesses initially opposed the bill.

Tax credits have become a powerful tool in attracting businesses in film, biotech and other industries. Though the tax revenue lost from the credits are small, the number of business tax credits have increased, according to a legislative report on Senate Bill 739/House Bill 764. There are now a total of 30 different tax credits in Maryland, the report states.

The 2012 General Assembly passed the Maryland Program Evaluation Act. Gov. Martin O'Malley has not yet signed the legislation but is expected to do so. The business community opposed one of its provisions, to automatically end tax credits for about 20 to 30 entities on a rolling, five-year basis. The provision was deleted from the final bill.

"Not only would the provision have killed the tax credit, but in order to get the tax credit restored, the General Assembly would have had to act legislatively," says Brian Levine, vice president government relations, Technology Council of Maryland Inc. "The portion [of the bill] that impacted business negatively was removed."

About 70 entities and business-related activities are subject to periodic evaluation for tax credits. Originally opposed by the business community, the Maryland Program Evaluation Act went through several changes before getting the business community’s approval.  

The provision for automatic termination was removed from the bill, which, instead, sets up a process and an evaluation committee of members appointed by leaders of the Senate and House of Delegates that works in consultation with state agencies.
 
The committee must submit reports to the General Assembly if the tax credit should be continued, with or without changes, or terminated. Public hearings are also required. The onus is on the committee to show why the tax credit should be removed, says Levine, rather than having it happen automatically.

Levine says that legislators “worked with the business community to craft a compromise. We are pleased with the outcome. In the end, we did not oppose the bill.”
 
Levine says the Tech Council and the business community opposed the automatic termination provision.

For example, he says, the state has an $8 million biotechnology tax credit to help early-stage companies. In the original statue, the biotech tax credit does not have a termination date. Had the provision remained in the bill, it would have meant that "every five years, this tax credit would be terminated automatically and could only be revived through legislative action,” says Levine. “We felt that was untenable.”
 
Ronald Wineholt, vice president government relations for the Maryland Chamber of Commerce, calls the tax credits “one of the most important economic development” tools.

But, he says of the original bill, “We were concerned that automatic termination of tax credits could limit the usefulness of businesses that were considering coming to Maryland.”
 
 
Sources: Brian Levine, Tech Council of Maryland; Ronald Wineholt, Maryland Chamber of Commerce
Writer: Barbara Pash
 
 
 
 

Parks aren’t just for beauty and relaxation anymore. In this environmentally-conscious era, they play a role in sustainability as well.

Just how that is accomplished is the subject of a talk on new trends in park design, to be held on Wed. April 25 at the University of Maryland, Baltimore BioPark, 829 West Baltimore Street.
 
Joan Floura, of Baltimore-based Floura Teeter Landscape Architects, and Glenn Marschke, of Wallace Montgomery, will review environmental site design and what it means for public parks. The hour-long event is being held in a Floura Teeter-designed pocket park. It is free and open to professionals, civic leaders and the public.
 
In particular, the speakers will focus on Maryland’s 2007 Stormwater Management Act and Environmental Site Design, says Kathy Walsh, Floura Teeter’s marketing coordinator.
 
“The regulations are intended to prevent storm water runoff going into the Chesapeake Bay. They will talk about the types of plants, the design and irrigation,” says Walsh.
 
The state regulations as well as those in Baltimore City and other local jurisdictions “affect landscape design, especially in urban parks,” she says.
 
The talk is part of Baltimore Green Works’ 9th Annual Green Week and features a variety of programs through Sat. April 28.
 
Among them: Wed. April 25, 7 p.m. film premiere and panel discussion of “Green Fire,” life of Aldo Leopold, founder of the modern green movement, at Cylburn Arboretum, 4915 Greenspring Ave.; Thurs. April 26, 6 p.m., social mixer sponsored by Civic Works, at The Red Maple, 930 N. Charles St.; Sat. April 28, 8:30 a.m. urban farming workshops and tours, at Civic Works’ Real Food Farm in Clifton Park.
 
Source: Kathy Walsh, Floura Teeter Landscape Architects
Writer: Barbara Pash
 
 

A scientific study of the change in the seasons has implications for the tourism and travel industries. Researchers at the University of Maryland Center for Environmental Science found that spring is arriving earlier – and autumn will be later – in the suburbs of Baltimore and Washington, D.C.
 
“Spring is arriving earlier in the cities relative to the rural areas, the reason being the cities have warmer climates because of rooftops and asphalt” streets and parking lots, says Andrew Elmore of the University of Maryland Center for Environmental Science. “Also, the cities don’t have vegetation around them, which has a cooling effect.”
 
Elmore conducted the research with Steven Guinn, of the UMd. Center, Burke Minsley of the U.S. Geological Survey and Andrew Richardson of Harvard University.

Using high resolution satellite data of trees and forests in the region collected over the past 25 years, the group found that the urban landscape traps heat in the summer and holds it throughout the winter, triggering leaves to turn green earlier in the spring and to stay green later into the fall.

The urban heat islands affected the growing season in areas within 20 miles of the cities, allowing for a longer growing season and the cultivation of new varieties.

Elmore says that temperature difference can have an economic impact. “If spring comes earlier, that’s an important time for tourism,” he says. “There are so many people living in urban areas and they are responding to an earlier spring.”
 
The study did not address climate change specifically, although Elmore may examine that in the future.
 
Source: Andrew Elmore, University of Maryland Center for Environmental Science
Writer: Barbara Pash
 
 

A newly released nationwide survey ranks Maryland in the top five states for the number of “green” jobs.
 
The U.S. Bureau of Labor Statistics’ first-ever Green Goods and Services Service is based on 2010 data. The state’s workforce came in fourth, with 87,000 Marylanders, or 3.6 percent of the workforce, holding jobs in green services and goods production.
 
“The green economy is thriving in Maryland, and it’s almost certain to expand in the future,” according to Stuart Kaplow, immediate past chair of the Green Building Council of Maryland.
 
Kaplow said he wasn’t surprised by Maryland’s high ranking. “But it’s nice to be validated” by an official survey, he says.
 
Of the green jobs in the state, the largest percent was in utilities, accounting for 13.6 percent of all employment in that sector. Almost 9 percent of all workers in the construction industry were “green,” as were those in transportation and warehousing.

California had the most green jobs, 338,000 workers or 2.3 percent of the state’s workforce. Vermont had the highest proportion of green jobs, 13,000 workers or 4.4 percent.

In the mid-Atlantic, Washington, D.C. had more green jobs than Maryland, 3.9 percent of its workforce, mainly because of the many public employees who were involved in green goods and services. Pennsylvania was the only other state in the mid-Atlantic that ranked in the top 10.

Green jobs accounted for 2.4 percent, or 3.1 million jobs, of all workers nationwide.  

Source: U.S. Bureau of Labor Statistics; Stuart Kaplow, Green Building Council of Maryland
Writer: Barbara Pash

It would be hard to find a more unlikely theme but, nonetheless, the gb.tc (formerly, Greater Baltimore Technology Council) is hosting its first local “fail conference,” officially titled Bmore Fail.
 
The event takes place on Fri. April 20 from 11 a.m. to 5 p.m. at an indoor soccer field, the Clarence Du Burns Area, 1301 South Elmwood Ave., Baltimore.
 
“The idea is to create an environment where risk-taking is okay and safe to do,” says Sharon Paley of gb.tc. “To succeed in business, you have to be prepared to fail.”
 
Bmore Fail welcomes entrepreneurs, investors, developers, designers, students, artists and others in the innovation and creative communities. Activities for “communal sharing” include a “failure wall,” where attendees can write about their personal experiences, and a “fail off,” where stories of failure and redemption will be told and the audience will vote.
 
“We’re saying, ‘This happens to everyone,’ so let’s come together and learn from each other’s mistakes,” says Paley, who expects 300 people to attend Bmore Fail.
 
The agenda is still tentative. There will be speakers, question-and-answer periods, breaks and a performance by the Baltimore Improv Group.
 
Talks will be on: “Virtues of Failure” by Ron Schmelzer, Bizelo; “Psychology of Fear of Failure” by Dr. Daniel Wagner, clinical psychologist; “Extreme Consequences” by Joe Bocuzzi, airline safety expert, and Dr. Paul Foster, GBMC; “Taking the Plunge” by Tracy Gosson; “Capital Failure” by Rob Rosenbaum, TEDCO; “Security Failure” by Hart Rossman, Cyber Security Services & Solutions at SAIC; “Learn to Fail” by Andrew Coy and Pat O’Shea; and “Peaks and Valleys” by Bryan Sivak, CIO for State of Maryland.
 

 
Source: Sharon Paley of gb.tc
Writer: Barbara Pash

Two Baltimore City public high school students are representing Charm City at the prestigious Intel International Science and Engineering Fair in May.

The students, both grand prize winners in the Baltimore Science Fair, are enrolled in a little-known nonprofit, the Ingenuity Project. The project spends $1 million a year to encourage middle and high school students in Baltimore City public schools to excel in science.

"We're one of the best-kept secrets in the city," says Karen Footner, Ingenuity's spokesperson.
 
Footner, an educational consultant, says the project dates to 1993 when educators and advocates of the city school system asked why Baltimore had never had a winner in the Intel Science Talent Search, the nation’s oldest and best known youth science competition.
 
Acceptance into the project is competitive, based on school grades and multiple tests. Students apply in 5^th and 8^th grades. The project is held at three middle schools (Roland Park, Hamilton and Mount Royal) and one high school (Baltimore Polytechnic Institute).  If accepted into the project, students have to request to attend those schools.
 
“The money is spent mainly for teachers for accelerated math and science classes,” says Footner, noting that 80 percent of the funding comes from the Abell Foundation and Baltimore City Public Schools.
 
There are currently 486 students in the program, split evenly boys and girls and of whom half are African-Americans.
 
Since 2005, seven Ingenuity students have been semifinalists, and three have been among the top ten winners nationally in the Intel Science Talent Search. “For Baltimore City kids, that’s extraordinary,” Footner says.
 
The Ingenuity Project will host a fundraiser April 17 at the Frederick Douglass-Isaac Myers Maritime Park Museum, featuring  science writer Flora Lichtman.
 
Source: Karen Footner, educational consultant
Writer: Barbara Pash

The University of Maryland has begun a new master’s degree program in applied economics for working professionals looking to advance their careers. The program is designed to train people in the economic analysis of policy issues.
 
After completing core courses, students choose a specialty in environment economics, health economics, law economics, marketing design and game theory, and program analysis and evaluation, says Marianne Ley Hayek, executive director of professional masters programs at the University of Maryland College Park’s department of economics.
 
“Any government agency increasingly has to justify and measure results,” says Hayek.
 
The program is designed to be convenient for working professionals. Classes are held at the Ronald Reagan Building in Washington, D.C., near a metro stop. Classes are offered in the evenings and are taught by people with “real-life experience,” she says.
 
The first class in the program enrolled 25 students. Hayek expects the program to grow but class size will be kept small.  
 
Candidates for the program must have a bachelor of arts degree, taken two economic courses during their undergraduate years and meet other requirements. The 15-month-long program consists of 10 courses, at a fee of $2,750 per course. There is no difference in the fee for in-state and out-of-state students. The University of Maryland issues the diploma.
 
The fall 2012 program is accepting online registration by June 1.

Source: Mariane Ley Hayek, executive director of professional masters programs, University of Maryland, College Park department of economics
Writer: Barbara Pash

Follow the sun could be the motto of Advanced Technology & Research, a firm that a few years ago developed a product to do just that.

Instead of stationary solar panels, an increasingly familiar sight on rooftops, the Columbia-based company makes a solar tracking device that rotates as the sun moves. The rotation of the device allows for maximum performance, capturing 30 to 45 percent more energy than stationary solar panels aligned at an optimal angle to the sun, says Robert Lundahl, Advanced Technology's vice president for energy systems and automation.
 
Lundahl says the device has residential and commercial use as an energy-saving measure. But it is being bought and installed for other uses as well. Mid-Atlantic Terminal at the Port of Baltimore recently installed three devices to power electric vehicles operated by Wallenius Wilhelmsen Logistics. Wallenius Wilhelmsen is powering two electric vehicles to move personnel and material around the port, and has indicated it may order more devices in the future.
 
Another recent installation was a row house residence in Federal Hill, where the company's distributor NEXUS Energy Homes installed one on the rooftop. It was the first sun-tracking device installed on a Federal Hill residence.
 
Advanced Technology's device can be ordered with one standard-size, 235-Watt solar panel (known as a single tracker) or with two 235-Watt solar panels (dual tracker). The tracker is connected to a mounting. The mounting can be placed on a rooftop or on the ground. A GPS-controlled drive unit rotates the panels to follow the sun.
 
Like solar panels, the device is then connected to an electric grid; accumulated energy reduces the electric bill.
 
The basic cost of the ATR device is $2,895 before installation. The number of devices is determined by roof size and budget. The devices are eligible for state and federal renewable energy tax credits. 
 
Advanced Technology & Research is a 38-year old engineering company that traditionally works with military and coastal agencies. It began making the solar device four years as a response to the increased demand for energy-efficient products, Lundahl says.
 
Landahl says the company is focusing on the mid-Atlantic region now but may go nationwide as the market increases. 
 
Source: Robert Lundahl, vice president for energy systems and automation at Advanced Technology & Research
Writer: Barbara Pash

Only six face transplant surgeries have been performed in the entire U.S., one of them earlier this month on a 37-year-old male at the University of Maryland Medical Center. It was the first such procedure in the state and took place over 72 hours. 

Now Johns Hopkins Medical Institutions is following suit and expects to get approval within the next few months to perform the rare and complicated surgery. 

The request from Hopkins Department of Plastic and Reconstructive Surgery  is being considered by a Johns Hopkins University board, which has already approved its hand transplant surgery. Such boards are fairly standard among facilities that perform research on humans, the goal being to ensure the safety of the subjects.

Face transplant surgery is a medical procedure that replaces all or part of a person's face with facial tissue from a deceased human donor. Although at this point Hopkins does not have a specific candidate for the surgery, "many patients have expressed interests, and we plan to screen patients for face transplantation" as soon as approval is given, says W.P. Andrew Lee, M.D., director of the Department of Plastic and Reconstructive Surgery, who has formed a face transplant team.

Besides Lee, key faculty members on the team are Dr. Chad Gordon, assistant professor of plastic and reconstructive surgery, who was involved in the country's first face transplant at Cleveland Clinic; Dr. Gerald Brandacher, visiting associate professor of plastic and reconstructive surgery; and Dr. Patrick Byrne, associate professor of otolaryngology�head and neck surgery. 

"There are many patients with significant facial disfigurement that cannot be adequately reconstructed with conventional means.  Face transplant offers the best reconstructive option for them," says Lee. "In addition, we have an immune modulation protocol that allows us to perform such transplants with much reduced anti-rejection medication, thus minimizing their side effects. 

Source: Dr. Andrew Lee, director, Department of Plastic and Reconstructive Surgery, Johns Hopkins Medical Institutions
Writer: Barbara Pash

Hagerstown Community College, in Washington County, is turning itself in the high tech center of Western Maryland. Next month, the college will open a $25 million complex that includes the Science, Technology, Engineering and Math (STEM) Building, laboratories and a classroom building.
 
The new STEM building will house the college’s biotechnology, alternative energy technology, cybersecurity, math and engineering degree programs. In the fall the college will begin offering its science classes online, and is in the process of getting approval for online degree programs.
 
The college campus is also the site of the Technical Innovation Center, a self-sustaining entity that promotes technology development and the creation of technology jobs in the area.
 
Toxpath Specialists, a toxicological pathology firm, is the latest graduate of the Technical Innovation Center. It left the business incubator this year for commercial space, creating 10 new jobs in the county’s biotechnology community.
 
P. Chris Marschner, manager of the Technical Innovation Center, says the center currently houses 15 companies, among them medical software, wireless technology, biotechnology and cybersecurity. Since the center began in 1994, 50 to 60 startups have graduated, creating a total of over 400 jobs in the Western Maryland region.
 
Sources: Elizabeth Stull, Hagerstown Community College; P. Chris Marschner, Technical Innovation Center
Writer: Barbara Pash

Wine lovers can now taste a new local label on the market.

Open Door Cellars is offering three varietals -- chardonnay, cabernet sauvignon and merlot. And the wines come in a box, not a bottle. The wines are being made at a winery in California under the supervision of Michael Fishman, a wine connoisseur and company co-founder with Greg Rochlin.
 
“We are starting distribution in Maryland, Delaware and Washington, D.C. We intend to make it a national brand. As we grow, we will take office space,” says Fishman who, with Rochlin, also co-owns Quarry Wine & Spirits.
 
Prestige Beverage Group is distributing the wines in liquor stores, wine shops and restaurants. They come in bag-the-box packaging that, Fishman says, preserves freshness longer after opening than a bottle. It's also more eco-friendly, the business owners say, yielding 85 percent less packaging compared with bottled wines. 
 
The boxes are available in two sizes: 3-liter (equivalent to 4 bottles), priced in the mid-$30s, and 1.5-liter (two bottles), in the low $20. The price is the same for all the varietals.
 
Fishman says they started Open Door Cellars in response to a need they saw in the market for such wines in the convenience and affordability of bag-in-the-box packaging.
 
“There are other bag-in-the-box competitors but not as this price point,” he says. “Our goal is to provide broadly distributed, high-quality wines.”
 
Fishman declined to provide financial figures for Open Door Cellars. The privately-held company has hired one full-time employee, a sales representative, and two part-time employees, to conduct in-store wine tastings. He expects to hire more employees as the company grows.
 
 
Source: Michael Fishman, Open Door Cellars
Writer: Barbara Pash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Calling all entrepreneurs.  A national organization, Startup America Partnership, is launching a regional initiative called Startup Maryland at a March 30 event.
 
Julie Lenzer Kirk, director of the Maryland Center for Entrepreneurship and a co-chair of the launch of Startup Maryland, says the goal of the nonprofit advocacy group is “to bring together the entrepreneurial system in the state” and to create a community of entrepreneurs.
 
Startup Maryland aims to provide entrepreneurs access to capital, mentoring, clients and a celebration and awareness of entrepreneurship through success stories.
 
While the state has “incredible resources,” Kirk says, “they’re in pockets, independent of each other and entrepreneurs are not working together.”
 
Startup Maryland aims to change that. “We want to leverage the best projects and promote them across the entire state,” says Kirk, noting that at the event, attendees will decide on specific projects for the future. Possibilities include a regional conference in which potential customers talk about their needs or a meeting about state and local resources.
 
Startup America Partnership began a year ago and the brainchild of two foundations: the Steven Case Foundation and the Kauffman Foundation. The alliance of universities, foundations and entrepreneurs are forming local chapters around the country. The White House has launched a similar initiative. 
 
Startup America does not offer funding, but it does provide access to the large corporations that are backing it. They include American Express, American Airlines, the New York Stock Exchange, Dell Computers and Microsoft.
 
In preparation for the March 30 launch at the University of Maryland College Park, two “town hall” meetings were held – in Howard County on February 10 and Baltimore City on March 1.
 
“We had 90 people at each. We had to cut off registration because we ran out of space,” says Kirk. “That told us there is interest” in Startup Maryland.
 
Membership in Startup Maryland is free. Register on the website. So far, even before the official launch on March, Kirk says some 200 companies have registered.
 
Source: Julie Lenzer Kirk, Startup Maryland
Writer: Barbara Pash
 
 
 
 

Thirteen companies from Israel will convene in Baltimore at the end of the month to gain familiarity with the nuances of doing business and living in one of the country’s top markets for high-tech and medical innovations.
 
The Maryland-Israel Development Center’s MarketReach symposium is a yearly event that brings together companies that have already received funding from private investors but are looking to test their business and fundraising mettle in Maryland.
 
In the past, medical innovation companies have dominated MarketReach events, but the 2012 crop of participants includes Organis, developer of an environmentally friendly insect repellent platform, Sol Chip, a company that makes clean energy systems for low-power applications, and Novospeech, which produces speech recognition software.
 
The event is meant to increase the Israeli companies’ awareness of the US and Maryland markets and create excitement among Maryland-based investors, researchers, and entrepreneurs. Maryland's research base includes Baltimore's Johns Hopkins University and University of Maryland professional schools, and the Bethesda-based National Institutes of Health, among others.
 
The impact of MarketReach companies' arrival to explore their options is intended to result in local US bases for the Israeli enterprises. Barry Bogage, Executive Director of the Maryland-Israel Develoment Center, says, "As companies grow, we'll bring them here to open offices in Baltimore and Maryland in general."

More information on participating companies and attending MarketReach America 2012 on March 29 is available at the MIDC website:

Writer: Sam Hopkins
Source: Nancy Boguslaw, Maryland-Israel Development Center

An Atlanta software company and a Bethesda mobile security firm are the newest companies to join a University of Maryland, Baltimore County incubator sponsored by Northrop Grumman.

Both AccelerEyes and KoolSpan Inc. say they plan to grow their staff at the Northrop Grumman Cync Program, which looks for startups in the cybersecurity arena.

AccelerEyes currently has one employee at the Catonsville school but its Director of Business Development Scott Blakeslee says it could add sales and engineering staff in the next six months to a year as it hopefully makes inroads in the defense industry.

Late last year, AccelerEyes launched a new product called ArrayFire, a software library that speeds up application development. It also offers a consulting service to help businesses speed up their development of software code.

Blakeslee says the company joined the incubator to take advantage of the technical resources and research assistance thatUMBC and Northrop Grumman provide.

AccelerEyes employs 10 in Atlanta.

KoolSpan, which employs around 25 in total, also has just one employee at UMBC. But CEO Gregg Smith says he hopes to add software talent from UMBC as the company expands its mobile security products worldwide. With clients in 42 countries,KoolSpan is “aggressively growing its international business,” Smith says. 

Writer: Julekha Dash
Sources: Gregg Smith, KookSpan; Scott Blakeslee, AccelerEyes