Institute for Commercialization of Florida Technology Delivers Nearly $1.4 Billion Economic Impact
Impacts Increased Significantly Due to Funded Companies’ Growth
Gainesville and Boca Raton, FL – October 18, 2018 – The Institute for Commercialization of Florida Technology (the Institute) announced today results of a new study conducted by The Washington Economics Group, Inc.® (WEG), a boutique economic consulting firm led by nationally recognized business economist Dr. J. Antonio (Tony) Villamil. The study measured economic impacts of the Institute during FY 2017-18 to update prior years’ studies, and concluded that the organization’s impact increased significantly as more companies continued to raise investment capital, create jobs, and bring innovative products to market.
The Institute supports new companies that create clean jobs in knowledge-based industries that are driving the global economy. By providing seed and early-stage funding, the organization enables businesses to develop and launch products in key industries, including life sciences, information technology, homeland security and defense, logistics and distribution, and manufacturing. Highlights of the new study include:
- overall economic impact for FY2017-18 of $408 million, a 20% increase over FY 2016-17;
- 2,636 total jobs supported in FY2017-18; a total of 8,940 between 2011 – 2018;
- average earnings per direct job created exceeded statewide average;
- capital raised in excess of $255 million, a ratio of 10:1 of additional private investment to State funds;
- GDP impacts of $214 million in FY17-18, a total of $725 million over the seven-year period;
- annual return on investment (ROI) to the state of Florida of over 31x.
"The economic impacts of the Institute increased again in 2018, marking the seventh year of growth and positive results for Florida’s economy,” said Dr. Tony Villamil, founder and senior advisor of The Washington Economics Group, Inc. “The organization supports the creation of an innovation and technology-driven economy in Florida, which is a key goal of the State's Economic Development Strategy, with positive outcomes including increases in high-wage employment in 21st century knowledge industries, household income for Florida's residents, and fiscal revenues to the State, all resulting from economic activity created by the Institute."
“Institute-funded companies are delivering an excellent return on the State’s investment in early-stage innovation companies, as they continue to raise private investment capital and create jobs in multiple industry sectors throughout Florida,” said Renee Finley, Institute Board Chair. “The resources provided by the Institute and its subsidiary, the Florida Technology Seed Capital Fund, have enabled many of Florida’s most promising companies to gain the traction and visibility they need in order to reach critical milestones and bring new products to market, and we are proud of the profound impact they are having not only in Florida, but globally as well.”
About the Institute
Formed by the Florida Legislature in 2007, the Institute for Commercialization of Florida Technology is a non-profit organization that works with research partners to leverage a $2.5B+ research base and form investable companies that create clean jobs in new industries that are driving the global economy. Through the generosity of mentors, advisors and donors, the Institute provides company building services, and seed funding through the Florida Technology Seed Capital Fund, to promising Florida startups. Seventy-two companies have been funded to date, and the Institute’s overall economic impact through June 30, 2018 was nearly $1.4 billion.
About the Washington Economics Group, Inc.®
Founded in 1993 in the City of Coral Gables, The Washington Economics Group is a boutique economic consulting firm specializing in comprehensive economic solutions for businesses. WEG engages a limited number of clients each year in order to ensure the best client experience within premiere areas of specialization, and possesses expertise in the economies of Florida, the U.S., Latin America as well as the global economy and emerging markets.