“We felt that as a technical, innovative company, this was the type of environment we needed,” said Rand, co-owner of Phoenix Analysis & Design Technologies. “We are in a setting that has like-minded companies, plus the fact that the park is just beautiful, more pleasing to the eye than your typical industrial park.”

The park’s university connection has also proved vital. The company hires professors to work during their sabbaticals and employs graduates. It uses university test equipment and its employees teach in campus classrooms.

And, as a company that seeks and receives federal grants, the location doesn’t hurt.

“It’s a great address,” Rand said. “I think our address [on Research Drive] lends credibility to our proposals.”

Companies around the world are benefiting from their locations in university research parks. Some partner with the schools in research contracts. Others move to a park to supply companies that are already on site. Those that lack formal university relationships often take advantage of informal networking opportunities that bring fresh workers and business opportunities their way.

University Privileges

Although some research parks require contractual agreements between the university and the company, Arizona State University has no such requirement. But even without a formal agreement, there is plenty of cooperation. One tenant uses the university’s clean room, while several firms hire interns from the school. Park management organizes luncheons to introduce engineering and business faculty to its tenants.

Arrangements in other parks are similar. Businesses often get access to university libraries, fitness centers and other amenities. Still, strategic business needs are the main draw.

“The bottom line reason that tenants are [at research parks] is because there is something the university environment brings to what they are trying to do as a company,” said William Drohan, executive director of the Association of University Research Parks in Reston, Va.

Ambryx Biotechnology, a company seeking cures for cancer and obesity, moved from Irvine, Calif., to University Research Park in Riverside, Calif., last year. The move was prompted, in part, by the company’s desire to be located in a university environment. The park is associated with the University of California-Riverside.

“The biotech industry started off as a spin-off of academia,” said Helen Chen, vice president of development for the company. “We want to have access to academia locally.”

Chen said library services give the company the opportunity to review medical and research journals. Without university privileges, the company would have to pay up to $75 per article. As a tenant, she has access to expensive testing equipment on campus. She also hopes to be able to collaborate with, or hire, faculty members for contract research.

“The University of California-Riverside has been more than gracious,” she said.

Environment and Facilities

A research park differs from an industrial or office park in that it is an extension of a university or federal lab. As a result, the grounds and facilities are often stellar.

Arizona State University’s park, for example, contains tennis courts, picnic areas, three lakes, 6 miles of jogging trails and a child care center.

“[Research park] facilities are all state of the art,” Drohan said. “When a university is involved in building it and putting the money up, they are looking at the long term. Many of these facilities, particularly in biotech, are absolutely top of the line. It’s not just a reflection on the park, but the university.”

Drohan said universities generally prefer leasing instead of selling, but offer rates that are competitive with local market conditions. In addition, about 70 percent of parks have business incubator programs that offer discounted lease rates to startup companies.

For example, the Thad Cochran Research, Technology and Economic Development Park in Starkville, Miss., offers below market prices and shared office services in its incubator program. Companies must leave the facility, which is affiliated with Mississippi State University, after they generate $1 million in revenue or hire 10 employees.

State and local tax incentives may also be available in research parks. Arizona State University’s park grants tenants a 100 percent real estate tax abatement. And although the city of Tempe regulates health and safety, the park’s board of directors governs building design and construction, allowing for a speedier approval process than is provided by most cities.

Tenants in Riverside’s University Research Park may benefit from economic development utility rates. The park is also within the Agua Mansa Enterprise Zone, which offers five types of tax credits and deductions to qualified companies.

Breaking Out of the Incubator

SemiSouth, in Starkville, was launched by two Mississippi State University faculty members and an outside partner in 2000. Its story illustrates how companies can make the most of park incentive programs and relationships with schools and other park tenants.

The firm, which develops silicon carbide electronics materials and electrical components, is poised to outgrow the incubator building it occupies.

In addition, II-VI Inc., a Saxonburg, Pa.,-based crystal growth technology firm, is expanding into the park to supply SemiSouth.

The company’s relationship with the university is a key to its success. For one, it partners with the school on government research contracts.

“It is very easy to do that when we’re sitting just off campus,” said Keith Nootbar, vice president of sales and marketing for SemiSouth.

The company also benefits from its relationship with the school’s Center for Advanced Vehicular Systems, which is also located in the park.

“We work with them very closely on where advanced vehicular systems are heading,” Nootbar said. “It does give us some synergy.”

Proximity to the university has also resulted in several solid hires.

“From a hiring perspective we have an ongoing internship program,” he said. “That is one very large advantage. Many of our engineers under age 25 came out of Mississippi State.”

Although the company started out in an incubator, it’s taking full management responsibility for its building and may have to leave the facility altogether if its rapid growth continues.

“We’ve kind of broken out of the egg,” Nootbar said.