THE “INCLUSIVE INNOVATION” APPROACHWILLIAM GENERETT JR., PRESIDENT & CEO

An economic development approach that is working to make sure that all communities are connected to the

Pittsburgh Region’s Economic prosperity.

BACKGROUND INFORMATION

Urban Innovation21 is a unique public-private partnership that is supporting the growth of entrepreneurship in our region’s innovation economy and connecting that growth to underserved communities and the residents that live in those communities.

PITTSBURGH’S NEW ECONOMY

Today, the Pittsburgh region’s prosperity is powered by five key industry sectors: advanced manufacturing, energy, financial and business services, health care and life sciences and information and communications technology. They are the result of an economic transformation launched in the early 1980s, as the steel industry restructured and the region lost more than 100,000 jobs.

CONNECTING COMMUNITIES LEFT BEHIND

CHALLENGES:

The region’s economic transformation has not benefitted all communities. Despite our success, poverty exists throughout the region. This contrast can most readily be seen in Pittsburgh’s diverse neighborhoods where high-income communities are directly adjacent to very low-income communities.

PITTSBURGH CENTRAL KEYSTONE INNOVATION ZONE

INCENTIVES SINCE 2007

KIZ TAX CREDIT PROGRAM PCKIZ INTERNSHIP PROGRAMPCKIZ GRANT PROGRAM$6.5 million in direct cash assistance to over 50 companies

$462,000 in early-stage grant funding to 24 companies

600+ paid student internships- 55% female, 38% underrepresented minorities

PCKIZ CONSORTIUMCommunity partnerships to provide leadership & help coordinate economic-development activities

COMMUNITY-BASED ECONOMIC DEVELOPMENT

$4m+ in direct funding for Hill District-based economic-development organizations

The Pittsburgh Central Keystone Innovation Zone is a program of Urban Innovation21. Urban Innovation21 is a public-private partnership that boosts regional economic development through 21st-century innovation-driven entrepreneurship.

PITTSBURGH CENTRAL KEYSTONE INNOVATION ZONE

Significant transformation has occurred in the Greater Hill District from 2007 until today.

▸ PCKIZ has supported 115 companies since 2007. These include: The Resumator/Jazz, NoWait, AllPoint Systems, Bit-x-Bit, Special Pathogens Laboratory, ShowClix, Pikimal/WebKite, and dbMotion.

▸ 36 high-growth companies have started up, relocated, or are growing in the Hill District and Uptown. The neighborhood image has changed for the better (i.e. business development and economic development can successfully occur)

PCKIZ COMPANIES

PCKIZ COMPANIES

DIVERSE INTERNSHIP AND WORKFORCE-DEVELOPMENT TRAINING PROGRAMS

INCLUSIVE INNOVATION INTERNSHIP PROGRAM

▸ Largest, most diverse innovation economy internship program in Pittsburgh region

▸ Students from Duquesne, Point Park, Carlow, CCAC

▸ PCKIZ companies, UPMC/Alcoa (Pittsburgh Promise), Community Partner Orgs

▸ 561 internship experiences at 126 companies*

▸ 55% female, 38% underrepresented minorities

▸ 84% graduated or will graduate from a 4-year program

▸ 79% graduated or will graduate from CCAC, 43% continuing to 4-year programs

▸ 80+% employer satisfaction (80% would hire, 87% “built capacity”)

▸ 68 interns hired by internship co.’s (69% women, 46% African American)

▸ 80% of employed alumni stay in Pittsburgh region

*As of December 2015

CREATING AN INCLUSIVE INNOVATION ECONOMY

SUCCESSFUL BUSINESSES THAT SUPPORT AN

INNOVATION-ECONOMY ECOSYSTEM

SUCCESSFUL SUPPLY-CHAIN BUSINESSES

THAT CONNECT TO THE INNOVATION ECONOMY

SUCCESSFUL INNOVATION-ECONOMY BUSINESSES

INCREASE IN NUMBER OF MINORITY- &

WOMEN-OWNED BUSINESSES

OUR LOGIC MODEL FOR DISCIPLINED BUSINESS CREATION

CULTIVATE A PIPELINE OF BUSINESSES VIA

COMPETITIONS AND WORKSHOPS

FUND WINNING BUSINESSES AND BUSINESSES SHOWING

PROMISE FROM WORKSHOPS

SUPPORT BUSINESSES WITH WRAPAROUND SERVICES TO

MINIMIZE START-UP EXPENSEINCENTIVIZE

COMPLEMENTARY BUSINESSES TO LOCATE IN UNDERSERVED

COMMUNITIES

MARKET AND ADVOCATE FOR LOCAL BUSINESSES

MONITOR AND HOLD BUSINESSES ACCOUNTABLE FOR METRICS & PRO FORMA

COMMITMENTS

SUCCESSFUL COMMUNITY-BASED ENTREPRENEURS

▸ GOAL: Create a cluster of businesses, owned by residents of underserved communities, that are connected to and profiting from our region’s new prosperity.

▸ UI21 works with hundreds of community-based entrepreneurs

▸ Successful entrepreneurs are connected through contracts with anchor institutions

▸ Grant competitions provide wraparound services to dozens of businesses annually

▸ KivaZip crowdfunding

▸ $46k in zero-interest loans to 11 borrowers

SUCCESSFUL COMMUNITY-BASED ENTREPRENEURS

▸ Since 2012*:

▸ Hill District: $135,000 in grants to 22 businesses

▸ 77% still in business

▸ 27 new jobs

▸ $767,000 in increased gross revenue

▸ Homewood: $250k in grants to 32 businesses

▸ 87.5% still in business

▸ 14 new jobs

▸ $247,000 in increased gross revenue

*As of March 2016

HILL DISTRICT COMMUNITY-BASED BUSINESSES

▸ Cupcakes Most Wanted

▸ Ma’ats Righteous Sweets

▸ Olmec Development

▸ Society Men’s Grooming Lounge

▸ The Legacy Cafe

▸ EZDUZIT Commercial Cleaning

▸ Jessie Mae Peoples Construction

▸ On The Go Fitness

▸ Power 59 Construction

▸ Uniqueca Dry Cleaning

▸ Vision Towards Peace

▸ Artistry Greenscapes

▸ Cameron Professional Services

▸ Enjoyourself

▸ Grace Security

▸ Silq Concrete LLC

▸ The Pittsburgh Spot

HOMEWOOD COMMUNITY-BASED BUSINESSES

▸ A. Tyler Landscaping

▸ American Drain Cleaners

▸ Carter & Associates LLC

▸ Day La Soul

▸ Indulge With Mo

▸ KnotzLand

▸ Massage on the GO by Teesha

▸ Rug Lab Carpet Cleaning

▸ SJ Designs

▸ Team PGH iPhone Fix

▸ The Green Empress Food Truck

▸ The Rebellious Lotus

▸ Williams Flagger Logistics

▸ Be Smart Energy

▸ Cutting Edge Lawn Care

▸ Homewood Purpose

▸ In A Reel LLC

▸ K-Theatre Dance Complex

▸ Pittsburgh Barber College

▸ Productivity LLC

▸ SHINE Society of Excellence

▸ The Wheel Mill

▸ Wine and Words Pittsburgh

▸ Dorsey Records

▸ East End Notary

▸ Hajj Media

▸ Jones Printing

▸ Lady D’s Mini Mart

▸ Lively Roots

▸ Sustainable Homecare Solutions

▸ Uncle Mike’s Sandwich Shop

HOMEWOOD INNOVATION ZONE

▸ GOAL: Replicate the success of the PCKIZ model to build a healthy business ecosystem in Homewood through cluster creation.

▸ Successful clusters create a supportive business environment, increasing cluster members’ chances of success

▸ Employees of cluster businesses support ancillary/supply-chain businesses

▸ Supply-chain businesses employ community residents

▸ High-growth clusters develop partnerships with community groups, giving residents access to jobs

▸ A strong business ecosystem creates & sustains jobs

▸ Successful clusters provide entrepreneurial opportunities for community residents:

▸ Cooperative businesses

▸ Equity stakes in new business ventures

▸ Traditional business ownership opportunities

HOMEWOOD INNOVATION ZONE - PROGRAMS AND INITIATIVES

▸ Small Business Grant Competition

▸ $100k in annual awards to Homewood entrepreneurs & business owners

▸ Over 50 grant recipients since 2013

▸ Support for newly-formed Homewood-Brushton Business Association

▸ Network of over 80 Homewood entrepreneurs & business owners

▸ Connections to citywide business-development resources & services

▸ CUE Pittsburgh, in partnership with City of Pgh, Google, Carnegie Library of Pittsburgh, Chatham CWE, & others

▸ 12-week “Digital Upgrade” workshop to improve businesses’ online presence

▸ Community-Based Intern Program

▸ Paid interns for local businesses & nonprofits, including TEKStart LLC, SHINE Society of Excellence, Homewood Children’s Village

▸ Business Development Consultation

▸ UI21 CEO-In-Residence evaluates the business, identifies required resources for expansion/stabilization, connects to UI21 partners, & provides entrepreneurial education through workshops and one-on-one consultations

REED SMITH PRO BONO LEGAL SERVICES PROGRAM

▸ Pro bono legal services for qualifying community-based businesses

▸ Formal attorney/client relationships identical to those of paying Reed Smith clients (including Fortune 1000 companies)

▸ Since inception in 2013:

▸ 35 participating community-based businesses

▸ $700k+ in services provided

CITIZEN SCIENCE LAB

▸ Unique, state-of-the-art life sciences lab open to the community

▸ STEM/STEAM programs during and after school

▸ Weekend workshops for adults

▸ Summer camps

▸ Available resources for individuals and businesses

OUR PARTNERS