Intellectual Capital

Finally, the Southeast attracts some of the nation’s brightest scientists and engineers to its network of strong research centers, such as the Georgia Institute of Technology and the new $500 million Scripps Research Institute in Palm Beach, Florida. The region also hosts major Federal centers of innovation such as:

• Oak Ridge National Laboratory (Tennessee),
• Marshall Space Flight Center (Alabama),
• Kennedy Space Center (Florida),
• the Environmental Protection Agency (North Carolina),
• the Centers for Disease Control and Prevention (Atlanta),
• the newly-designated Savannah River National Laboratory (Georgia), and
• multiple military technology centers.

Example: Oak Ridge National Laboratory

As an example of the intellectual capital available in the Southeast, the Oak Ridge National Laboratory is located 200 miles north of Atlanta in East Tennessee. ORNL is the Energy Department’s largest multiprogram science laboratory, with a $1 billion annual budget and nearly 7,000 employees and guest researchers. The National Leadership Computing Facility has been funded for the task of building the world’s largest supercomputer in Oak Ridge. The $1.4 billion Spallation Neutron Source is the country’s largest civilian science project.

Unlike some of the weapons-focused laboratories (Sandia, Lawrence Livermore, etc.), Oak Ridge is focusing its research efforts on three areas: “info” (ultrascale computing and simulation), “nano” (nanoscale science and technology), and “bio” (complex biological systems). The intersection of info, nano, and biotechnologies matches well with EGL’s investment focus. ORNL has instituted an aggressive licensing and partnering program, and is working with venture firms nationwide to stay at the forefront of national technology trends.

Universities and research institutions in the area will keep EGL’s target sectors strong (information technology, telecommunications, and life sciences). All the pieces are in place to build attractive growth companies: technical innovation, experienced entrepreneurs, and all the required service industries—legal, banking, accounting, etc. We expect that venture capital will continue flowing to the region, as discussed in the next section.