HTDC: Hawaii Incubator Companies Added $213.7M to Economy

Cash Money

From an announcement just released by HTDC:

HONOLULU, HI — The state received $11.1 million in taxes generated by the more than 90 companies that responded to the 2014 High Technology Development Corporation (HTDC) Annual Economic Survey. The companies also delivered a total economic impact of $213.7 million, based on a multiplier that includes direct revenue, spending by the company and spending by the employees.

A total of 141 companies (31 tenant companies at Manoa Innovation Center, 17 virtual clients and 93 graduate companies) were surveyed, and 93 companies reported their numbers to HTDC, which found that the companies had an estimated $124.3 million in total revenue and generated $66.8 million in income. The 93 companies provide jobs for 832 employees.

“Manoa Innovation Center houses some of Hawaii’s top intellectual and physical resources, and HTDC contributes by providing an environment that allows these startups to focus on their R&D business,” said Robbie Melton, HTDC executive director. “We’ve heard from many tenants that our mentoring, support staff and infrastructure reduces the burden on their operations and other functional areas of their business.”

HTDC also administers a Hawaii Small Business Innovation Research (SBIR) matching grant program to enable Hawaii companies to compete for larger awards. Twenty-nine companies receiving SBIR funds reported a total economic impact of $89.7 million, with an estimated $50.5 million in total revenue for 2014. By providing competitive grant and contract award opportunities, the SBIR program encourages domestic small businesses to engage in federal research and research & development with the potential for commercialization. These companies have 324 employees and paid $4.9 million in state taxes, according to the survey.

Overall, 18 companies received $16.5 million in outside investment from angels, venture capitalists and joint ventures in 2014, and 20 companies received $21 million in SBIR and other grants.

“Blue Planet Software benefitted from HTDC by being part of a group of startup companies at Manoa Innovation Center and getting lots of free services that would have been a great financial burden,” said Henk Rogers of Blue Planet Software.

The investment into these high-tech companies is not lost on these businesses. “Without HTDC’s excellent support staff and infrastructure, I would never have been able to achieve what I did with my company,” said Bruce Kim of Inovaware, a worldwide leader in subscription billing and customer management solutions. “A high-tech industry in Hawaii is possible but doing business in Hawaii is challenging so we need to do everything possible to nurture our startups.”

HTDC said providing a nurturing environment for startups supports its ambitious plan to create 80,000 new technology and creative industry jobs earning $80,000 or more in the state by 2030. Objectives of the 80/80 plan include job creation, attracting new startups and increasing the survival rate of Hawaii tech companies. For every state dollar invested in HTDC, the agency received an additional $8 in revenue from other sources.

HTDC is sharing the results of the economic impact survey to legislators as they seek support for more matching funds in the Hawaii SBIR program.

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About HTDC (High Technology Development Corporation)

HTDC is a state agency established by the Hawaii State Legislature in 1983 to facilitate the development and growth of Hawaii’s commercial high technology industry. The state views high technology as an important driver in the diversification of Hawaii’s economy and one that provides quality, high-paying jobs for Hawaii residents.

For more information, visit www.htdc.org. Find us on Facebook or Twitter at @HTDCorg.