New Study Highlights Economic Impact of the Florida Economic Gardening Institute’s GrowFL Program

Feb. 4, 2011 - PRLog -- Results from a study commissioned by the Florida High Tech Corridor Council found that the state-funded economic gardening program, GrowFL, helped to create a total of 1,458 direct, indirect and induced jobs in its inaugural year.  According to the results of the study, GrowFL contributed a more than $280 million impact (direct and indirect) to the state’s economy.  

“The results of this program demonstrate how economic gardening can be used as part of a successful economic development strategy to grow jobs and strengthen the small business landscape,” said Randy Berridge, president of the Florida High Tech Corridor Council.  “Support for entrepreneurial initiatives is a major tenet of the Council’s mission to grow high tech industry and innovation, and we are a proud partner of the Florida Economic Gardening Institute’s GrowFL program.”

The study also found that GrowFL helped generate $8.4 million in state and local taxes, above and beyond the cost of the program, representing a nearly 6 to 1 return to the state’s original investment of $1.42 million.

Companies across the state have utilized the strategic decision-making resources and recommendations provided by GrowFL’s technical assistance and CEO Roundtable programs to increase their client base and add positions to their team.

“GrowFL has allowed me to take advantage of the downturn in the economy by providing strategic and tactical support through the technical assistance program and CEO Roundtables,” said Doug Brown, president of Hollywood-based Florida Supplement, who reported creating 20 additional positions since being accepted to the GrowFL program.  “In 2010, Florida Supplement grew by more than 80 percent and more than doubled the number of its employees.  Fortunately, the nutritional supplement industry has remained strong throughout these challenging times and Florida Supplement continues to grow and take market share with the help of a strong virtual team from GrowFL that costs us nothing.”  

Companies in the professional, scientific and technical services industry reported creating the most positions out of every business sector since first becoming engaged with the GrowFL program, a fact that suggests these industries may have the greatest job creation potential.  

About the Study
Lead researcher of the study, Guy Hagen, the founder of Innovation Insight Inc., explained how the different levels of economic activity mentioned in the study contribute to job creation.

Hagen explained that direct economic impact is akin to a tree trunk – it’s easy to see the direct impact job creation programs, such as GrowFL, have on participating companies.  Indirect activities are like the roots of a tree that reach unseen into the ground and constitute local demand for products and services from other companies and service providers.

“But if you have ever pulled a tree or shrub from the ground, you know that you pull up a lot more than clean roots ... you also get earth, weeds, grass, bugs, worms and everything else that makes up healthy soil.  All of this additional earth and life that depends on the tree is similar to what we call induced economic impacts of a company or project,” said Hagen.  “Induced impacts reflect everybody who relies on spending generated by direct and indirect activity.  They are job gains by people who have no direct connection to the company, but benefit from the money the company introduces into the local economy.”

GrowFL was funded in November 2009, following a special session of the Florida Legislature with the goal of stimulating investment in Florida’s economy by providing a free suite of economic gardening services.  Its one-on-one technical assistance program is complemented by other proven economic gardening services including CEO peer Roundtables, CEO forums and referral services, administered in conjunction with statewide economic development organization partners.

Impact   Measurement
Jobs (Direct/Indirect/Induced)   1,458
Income/Wages/Benefits resulting from Jobs Created   $71.3M
Sales/Output   $281.2M
GDP   $133.6M
Derived State and Local Tax Revenues   $8.4M

About the Florida High Tech Corridor Council
The Florida High Tech Corridor Council (FHTCC) is a regional economic development initiative of the University of Central Florida (UCF), the University of South Florida (USF) and the University of Florida (UF) whose mission is to grow high tech industry and innovation in the region through research, workforce and marketing partnerships.

The unique partnership involving more than 25 local and regional economic development organizations (EDOs) and 14 state and community colleges, has resulted in a strategic approach to high tech economic development that involves matching funds research, workforce development and a marketing program leveraging governmental, EDO and corporate budgets on a regional rather than local basis.

The Florida High Tech Corridor Council was the International Economic Development Council’s category winner for Partnerships with Educational Institutions during its 2009 Excellence in Economic Development Awards.  In 2010, the State Science and Technology Institute (SSTI) awarded the Council’s Matching Grants Research Program in the category of Improving Competitiveness of Existing Industries as part of its 2010 Excellence in Technology-Based Economic Development Awards. Additional information is available at www.floridahightech.com.

About GrowFL
GrowFL is the official Economic Gardening Technical Assistance Pilot Program for the State of Florida and a program of the Florida Economic Gardening Institute.  Created in 2009 to stimulate investment in Florida’s economy by providing technical assistance for expanding businesses in the state, the Florida Economic Gardening Institute is headquartered at the University of Central Florida under contract with the State of Florida’s Office of Tourism, Trade and Economic Development under the Executive Office of the Governor.  Additional information is available at www.GrowFL.com.

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Florida High Tech Corridor Council is an economic development initiative of University of Central Florida, University of South Florida & University of Florida whose mission is to attract, retain & grow high tech industry and the workforce to support it.