Missouri’s Innovation Ecosystem

Innovation, broadly understood, might be a little too broad to describe as an attribute that helps define a state. But if you don’t try to eat the elephant at once, and instead look at individual bites, it soon becomes clear that Missouri has a robust web of interconnected publicly funded, private-sector operated and university-level research entities. While they don’t all march to the same beat, they are responding to a shared understanding that if the state is to remain an attractive place to own and operate and grow a business, innovation in many forms must be the operating standard.

Through various cabinet-level agencies and departments, that clarion call is answered with public dollars, some directed toward enterprises that promote innovation; some steered to research universities, and some going directly to fledgling companies to help get their visions off the ground. Through private investment, especially from foundations, dollars are steered toward programs that foster innovation and provide resources for start-ups and the next generation of “gazelles” to thrive. Across a network of more than a dozen state-funded universities, new products and production processes are being researched that can create new industries and completely transform existing ones.

The beauty of that innovation ecosystem is that there is no one entity pulling all the levers—each part of the system operates, sometimes independently, often collaboratively, to drive progress and growth. Here are some of the state’s high-profile ventures, and some whose work may soon earn that level of recognition.

Cortex Innovation Community

In St. Louis, Cortex is a 20-year-old innovation hub that has earned recognition nationally and internationally for its work in technology commercialization. It was founded as a collaborative venture by Washington University in St. Louis, BJC Healthcare, the University of Missouri-St. Louis, Saint Louis University, and the Missouri Botanical Garden. 

From the wreckage of a blighted, 200-acre parcel and an abandoned warehouse, its backers have created the largest regional anchor of a growing ecosystem of innovative startups and established technology companies. Since its founding in 2002, Cortex has developed 2 million square feet that are home to 430 tech-commercial companies, university academic units, residential developments, and additional supporting retail. Those entities, combined, have 6,000 employees working within the district, with a goal of building on the original bioscience focus to include all technologies today.

And it’s still growing: By the time the site is fully built out, it will double from its present size to more than 4 million square feet of new and rehabilitated facilities, $2.5 billion of facility investment, up to 15,000 permanent jobs, and more than 600 companies.

T-REX

A few miles to the east of Cortex, near the banks of the Mississippi River, stands T-REX, a non-profit innovation and entrepreneur development center that attracts innovation to Downtown and the urban core of St. Louis. With co-working space, technology incubator, and entrepreneur resource center, it now serves more than 400 founders, developers, designers, mentors, educators and others. With a motto of “Building the future of St. Louis, one start-up at a time,” T-Rex has facilities where entrepreneurs can operate in a reduced-risk environment, with lower capital and operating costs. 

More than two dozen start-ups currently call the T-Rex site their home, and 10 others that found their bearings there have moved on to other locations. Among those housed there are innovative firms exploring private-jet mid-air refueling technologies, greenhouses on a classroom scale to introduce students to farming and agricultural concepts, fintech and home-health enterprises and wireless railcar monitoring systems.

Missouri Technology Corporation

The Missouri Technology Corporation is a public-private partnership tasked with supporting entrepreneurship and supporting new and emerging high-tech companies. With its strategic investments in tech-based Missouri companies, MTC funds several statewide programs, including Missouri IDEA Fund and the Missouri Technology Incentive Program.  

MTC has invested nearly $44 million in over 135 early-stage, high growth tech companies, which have leveraged those contributions into more than $1 billion in additional private capital. A distinguishing feature of MTC is its reach across the breadth of the state. Through its Innovation Center Program, which commercializes research, discoveries and innovations by working closely with various universities. 

At innovation centers across they state, program participants enjoy business counseling and development guidance, plus financial assistance to move their concepts from the lab or garage into formal business settings, with a goal of producing more high-paying jobs.  In addition to St. Louis and Kansas City, the innovation centers operate in Cape Girardeau, Columbia, Joplin, Kirksville, Rolla, Springfield and St. Joseph.

MOSourceLink

Expanding on its success in the Kansas City area with KCSoureLink, this UMKC-sponsored initiative helps entrepreneurs and small businesses in Missouri by connecting them to elements across the entrepreneurial spectrum. Many of those are non-profit organizations that provide business-building services to more than 6,000 Show-Me State entrepreneurs each year.

Aspiring business owners can either call or go on-line to use the agency’s Resource Navigator to help establish connections that can assist with financial planning and borrowing needs, sales and marketing strategies, technical issues and product development, operations, educational resources and information about government contacting opportunities.

KCSourceLink

Like it’s statewide cousin, KCSourceLink connects entrepreneurs to resources—coaches and mentors, funding and educational tools—and also helps them navigate events like Global Entrepreneurship Week. The program uses data to measure outcomes, identify gaps in resources and connects companies to various grant-writing organizations and government offices.

It encompasses more than 240 entities that make up the regional ecosystem in an 18-county area serving both Missouri and Kansas, and it curates an online directory of support organizations and information on how to connecting with them to promote collaboration and system-wide efficiency. KCSourceLink also compiles a comprehensive business calendar.

IT Entrepreneur Network

In 2008, the St. Louis IT Coalition and Innovate St. Louis joined forces to create the ITEN, shorthand for the IT Entrepreneur Network. As the founders like to say, it’s “designed by entrepreneurs for entrepreneurs.” ITEN is a nonprofit focused on the needs of the IT ecosystem in Missouri, offering instructional programs, events, and access to resources that help tech startups get up and running. 

More than 220 start-up ventures are operating under the ITEN umbrella, which includes more than 120 volunteer mentors who can coach participants through each step of the process, from concept through design, launch, capital formation and funding and, importantly, rapid scaling. That thought leadership helps entrepreneurs laser in on completion of the most essential, efficient tasks and processes.

A goal is to eliminate barriers to rapid growth by providing access to investors, service providers and qualified talent. The best part? It requires neither payment nor demands an equity stake in exchange for its services.

Codefi Rural Foundation

Another effort to expand business development into every corner of the state, the Codefi Foundation on Rural Innovation seeks to accelerate economic development outside the major population centers. It offers access to education, mentoring, technology and capital, and provides a higher level of Internet and tech connectivity to promote business growth.

Recent initiatives include a grant-funded effort across southern Missouri involving a new pre-accelerator and venture investor network, plus an expansion of the Redhawks Startup Fellowship to steer more highly qualified interns and prospective hires to startups.

eFactory

Nearly a decade ago, Missouri State University in Springfield became home to eFactory, which serves entrepreneurs and business owners throughout the southwest corner of the state. It operates programs designed to support businesses of all sizes, from pre-production entrepreneurs to large employers seeking to solve the work-force challenge riddle. 

It’s part of the IDEA Commons district, MSU’s vision for an urban innovation park. Its Code Labs is an immersion-training program formed to meet the needs of employers and startups seeking qualified software developers. And its Youth Coding League is the only extracurricular coding program designed for middle school and junior high students, introducing students to computer science by combining project-based learning with a competitive youth sports model.

Digital Sandbox KC

Expert feedback is always vital to startups, but Digital Sandbox KC takes the next crucial step by providing funding of up to $20,000 for companies to help innovate and commercialize their research and production. That includes access to technology, experts who can assist with  market validation, and prototyping and beta testing services. It also provides proof-of-concept support for projects that will generate additional investment and jobs for Missouri.

The Ewing Marion Kauffman Foundation

Last, though certainly not least of the business-development assets in Missouri is the Kauffman Foundation, which administers a wide range of research and entrepreneurial development programming focuses on Kansas City, but with a reach that is often national, even global.

It’s the business and civic legacy of the late Ewing Kauffman, who made his fortune in the pharmaceutical realm before becoming an enduring figure to this region by leaving the major-league Kansas City Royals to the community after his death in 1993. Today, the foundation funds its programming through the $2.6 billion in assets grown from the bequest Kauffman made to spur business growth in the region.

While the foundation’s work in public policy research and advocacy carries national implications, much of its programming is focused at the grassroots level. Just one example: 1 Million Cups. It grew out of the idea that entrepreneurs discover solutions and engage with their communities over a million cups of coffee, and launched the effort a decade ago. It helps entrepreneurs around the country build networks and collaborations with educational and inspirational programming. And, true to the benevolent spirit of Ewing Kauffman himself, it’s entirely free.