Economic Development

The Kentucky Innovation Act of 2000 directed the commissioner for the new economy, William Brundage, to develop a statewide strategic plan for the new economy. The strategic plan was completed in 2002 and identified those niches where the Commonwealth might gain a competitive edge within a decade and established a plan to build the infrastructure to accomplish results. The New Economy Initiative was built on three pillars: a thriving research and development capacity, an entrepreneurial business climate and an educated workforce.

One of the five special opportunity areas identified in the strategic plan is health care - specifically, the program that came to be called the Cardiovascular Innovation Institute. In support of this program, the Commonwealth provided $5 million to help construct the facility for the institute. In addition, The Office for the New Economy has established an entrepreneurial infrastructure in the form of the Innovation Commercialization Center in Louisville to help evaluate the market potential for new ideas, to help researchers develop business strategies and plans for bringing the most promising ideas to market, and to help secure venture capital funding to launch the projects.

The basic concept of economic development is to foster the commercialization of the core competencies developed at the institute. Some of these technologies may be licensed to existing companies in return for royalties that will help support the institute and the University of Louisville. In some cases, the researchers may want hands-on involvement in launching new companies based on their ideas. In other cases, the Innovation Commercialization Center will match up the researchers with entrepreneurs and experienced business managers to help create and manage the resulting enterprise.

Over the next decade, the goal is to create a cluster of new businesses in Louisville based on the work of the Cardiovascular Innovation Institute. These businesses will be good for the researchers involved, good for the university and good for the growth of a knowledge-based regional economy.

To facilitate the development of commercial opportunities, the institute will develop a “ user friendly” set of business practices that will make the institute attractive to corporate partners. Essentially, a master agreement of business practices consistent with university policies on intellectual property will be created that can be easily adapted to the specific needs of corporate partners and entrepreneurs.

“ A focused investment in biomedical research infrastructure will make Kentucky one of the leaders in cardiovascular research and provide an engine to drive our economy,” William Brundage, the commissioner of the Kentucky Office for the New Economy said. “In time, we hope the institute will make us as well known for our pioneering contributions in heart innovations as we are for the Kentucky Derby.”