Title
WearTech Research and Commercialization Center i6 Challenge Project Sponsorship (Ordinance S-45476)
Description
Request to authorize the City Manager, or his designee, to enter into a $90,000 sponsorship agreement with the Greater Phoenix Economic Council for the WearTech Research and Commercialization Center i6 Challenge Project. Further request authorization for the City Controller to disburse funds related to this item. There is no impact to the General Fund.
Report
Summary
In 2018, the Greater Phoenix Economic Council (GPEC), of which the City is a member, was awarded an i6 Challenge Grant from the U.S. Economic Development Administration (EDA). The i6 Challenge is designed to increase entrepreneurship that is driven by innovations, ideas, intellectual property, and applied research through the process of technology commercialization that results in new businesses, accelerated paths to export, increased foreign direct investment, and new jobs.
Through the i6 Challenge award, GPEC, and its project partners including Arizona State University (ASU), the Partnership for Economic Innovation (PEI), and the Center for Entrepreneurial Innovation (CEI), will establish the WearTech Research and Commercialization Center to further advance the Greater Phoenix region’s efforts to promote and grow innovative companies in the wearable and medical technology cluster.
Wearable technology is being used to manufacture activity tracking devices, pacemakers, and hearing aids. The future of wearable technology will have a role in patient-centered preventive care as they are increasingly used to clinically monitor heart rate, blood pressure, and other vitals, which could help transform healthcare from delivering reactionary care to preventive care. The wearable medical devices market is flourishing and is expected to continue its speedy growth.
The project will concentrate research and entrepreneurial assets and build an innovation hub. Recently, the PEI WearTech Center signed a lease for space at Park Central Mall, which has undergone a major conversion to support a technology-focused biomedical hub where the development of the future WearTech will occur.
Under the i6 Challenge Project, the existing PEI WearTech Center will be expanded to the Phoenix Biomedical Campus (PBC) where a new Validation Lab will be established. The Validation Lab will serve as the location for testing and validating the technologies developed at the WearTech Center, and will also function as the hub for the MedTech Ventures Program. The MedTech Ventures Program developed in partnership with ASU and CEI is a unique workshop driven experience where participants collaborate with venture capitalists, proven entrepreneurs, and industry experts as they team up with professionals and students from business, engineering, and medicine to design solutions, build products and create investment-ready ventures.
For over a decade, the PBC has served as the anchor for Greater Phoenix’s efforts to promote and grow innovative companies in the medical technology industry. The PBC has served as a catalyst in spurring biomedical jobs and generates a $1.3 billion annual economic impact to Arizona. The i6 Challenge Project will complement the City’s investments in the PBC and immediate surrounding areas by creating synergy and coordination across research, education and entrepreneurial assets.
The Community and Economic Development Department is requesting $90,000, to be spent over a period of three years at $30,000 a year, to sponsor entrepreneurship training from the MedTech Ventures Program. The City will benefit through this sponsorship by leveraging investments in the PBC to further assist in the growth of the wearable and medical technology cluster through public-private partnerships. The sponsorship agreement will contain other terms and conditions as deemed necessary by City staff.
It is anticipated that the i6 Challenge project will result in 45 new ventures, and more than 220 jobs created over the three-year grant period.
Financial Impact
There is no impact to the General Fund. Funding for this three-year annual sponsorship of $30,000, for a total amount not to exceed $90,000, is available in the Genomic Facilities and Operations Fund starting in fiscal year 2019.
Concurrence/Previous Council Action
This item was recommended for approval at the Planning and Economic Development Subcommittee meeting on March 13, 2019, by a vote of 4-0.
Location
Park Central Mall - 3121 N. 3rd Ave.
Phoenix Biomedical Campus - 850 N. 5th St.
Council Districts: 4 and 8
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.