Princeton vies to become the state’s next Innovation Zone
Gwen McNamara, Assistant Editor
It’s no secret that throughout the greater-Princeton area, businesses are at the forefront of improvement and innovation.
Up and down the Route 1 corridor, pharmaceutical companies, manufacturers, startups and high-tech firms are hard at work tackling a variety of challenges.
From historical innovations like the invention of the color television at Sarnoff Corp. in West Windsor, to more modern achievements like the improvement of DNA testing at Orchid BioSciences in Plainsboro, companies across the region have a lot to be proud of.
So why not recognize this area for its excellence?
That’s the question several local leaders are posing to state representatives as they try to position Princeton as the state’s next Innovation Zone.
Currently, New Jersey has three designated Innovation Zones — Newark, greater New Brunswick and Camden.
Created by an executive order signed by former Gov. James E. McGreevey in September, Innovation Zones are defined as areas near the state’s research universities and hospitals that will be the locus of partnerships with high-tech companies. The zones, run by the state Economic Development Authority with help from the Commission on Science and Technology, are expected to encourage the rapid transfer of ideas from the lab to the marketplace and present new opportunities for economic development and job growth.
Enhanced financial incentives, such as state Springboard funding, Business Employment Incentive Program grants and tax transfer opportunities, are available to help retain and attract businesses to these locations. The EDA and CST are also expected to build and manage "Commercialization Centers" — facilities with labs or office space.
"The Princeton area is a prime example of an Innovation Zone already," said Kristin Appelget, president and CEO of the Princeton Regional Chamber of Commerce. "Being designated as an Innovation Zone would not only help businesses here, but also leverage and increase the visibility of the other areas already designated.
"As part of an official Innovation Zone, businesses in this area could grow faster and the potential incentives could mean that added boost needed to bring a business looking at our area into the region," she continued.
Competition with nearby states like Pennsylvania and Delaware is fierce, she added.
"Companies currently located here are often courted to move elsewhere," Ms. Appelget said. "Innovation Zone designation could help us keep growing high-tech businesses in place."
The presence of several institutions of higher education, while not state oriented, are a plus as well.
"Princeton University, Rider University and The College of New Jersey could all fit in the Princeton-area zone," said Ms. Appelget. "Princeton University in particular has had a significant impact on the growth of technology and innovation in the area. They are one of the region’s largest employers and numerous companies have evolved from the university or are using university innovation."
Currently about seven startup companies, located along the East Coast, were formed around Princeton technologies, according to Princeton University’s Office of Research and Project Administration. Numerous others, like Plainsboro-based Princeton Power Systems, a company that aims to develop sources of clean, reliable power, have been formed by Princeton University graduates.
The designation of the greater Princeton area — roughly from New Brunswick south along Route 1 into Trenton — would also complement the Einstein’s Alley effort.
Einstein’s Alley, backed by U.S. Rep. Rush Holt (D-12), is a movement to turn the Route 1 corridor into a well-known high-tech center; the Silicon Valley of the East Coast.
"We’ve been trying to get the state to understand this for years," said Dick Woodbridge, of the Princeton law firm Synnestvedt, Lechner & Woodbrige and proponent of Einstein’s Alley. "We really ought to make an effort to encourage innovation in areas where there already is some traction.
"The tax incentives and other benefits of an Innovation Zone would really help," he continued. "Places like Silicon Valley didn’t start in urban centers. They went wherever the high-tech people wanted to go. The state shouldn’t be penalizing the winners."
Despite such insight, Caren Franzini, executive director of the EDA, says it’s simply too premature to tell if the Princeton area would be a good fit.
"The Innovation Zones are very new, they were just kicked off two months ago," she said. "Before we do anything we want to make sure the zones work. In six months to one year from now we plan to take a look and figure out what worked and what didn’t. We want to be sure they are effective before we add, if we need to add, any more zones.
"We’ve heard from Princeton loud and clear," she continued. "The area is high up on our list to consider, but remember the current sites were chosen on a selective basis — there had to be a research university, hospital and cluster of business. Once you have too many areas, the whole state becomes a zone and the program is ineffective."
But not everyone at the state level is so cautious. Virginia Bauer, state commerce secretary, has expressed support for creating an Innovation Zone in the Princeton area and is just waiting for the right time to start pushing for the cause.
"Just because the Princeton area is not an urban, deprived area shouldn’t penalize them from receiving financial incentives and other benefits associated with Innovation Zones," Ms. Bauer said. "The whole Einstein’s Alley concept makes so much sense. The area has great minds, an incredible university, great research infrastructure and a skilled workforce. All the tools are in place to make this become a reality.
"Because the three current zones are so new, the EDA and treasury are taking a wait-and-see approach," she continued. "I plan to wait a few more months, then I’ll start really banging on doors."
Some area businesses are hopeful the greater-Princeton area is designated as an Innovation Zone.
"We were lucky in that we actually got a lot of help from one of our professors," said Darren Hammell, president and CEO of Princeton Power Systems. "He gave us almost three months free of rent in a big building he leased here on the Forrestal Campus. Not everyone has great connections. It’s hard to find an office and get a decent short-term lease.
"The idea of an Innovation Zone, with office and lab space run by the EDA, would be an asset to startups like us," he continued.
Princeton Power Systems was formed by Mr. Hammell and partners Mark Holveck and Erik Limpaecher after winning Princeton University’s business plan contest in 2001.
Initially working out of dorm space, the trio got "angel funding" from Greg Olsen, CEO of Sensors Unlimited in West Windsor, and used the funding to move to the Plainsboro office space, hire staff and buy equipment.
"It seems to me that this area is already an unofficial Innovation Zone," Mr. Hammell said. "In our building alone there are two other startups. I think a lot of companies find this area attractive even without incentives."
"Anything to additionally highlight technology under development in this area would be great," said Janice Mahon, spokeswoman for Universal Display Corp., a Ewing-based company developing lighting and flexible displays using organic light-emitting diodes through a collaboration with research scientists at Princeton University and the University of Southern California.
"Additional funding options would create further opportunities for jobs and technological development," she said. "There are a lot of great seed technologies coming out of Princeton University and elsewhere. An Innovation Zone would definitely help them flourish."
"It’s not always easy to get started around here," added Aaron Wadell, spokesman for Global Photonic Energy Corp., another Ewing-based company partnered with both Princeton University and USC. Global Photonic, a privately held new-materials, science and technology company, is focused on funding, designing, developing and marketing organic-based solar cells and hydrogen production technologies.
"Because we’re a technology development company we don’t follow the typical business model," Mr. Wadell said. "We sponsor research that can take a long time to produce results. No venture capital investors are interested in a company that takes a really long time to get to market.
"At the same time, government programs aren’t always useful," he continued. "They often assume we’d have more ongoing revenue generation. Giving us incentives, like tax cuts against profits, are not useful if you’re far from generating any profits."
Anything to help companies hire people, build facilities and get started would be great, he said.
"A lot of companies are doing incredible, breakthrough work," said Mr. Wadell. "Funding programs and other efforts that allow companies like us to go after high-risk, high-return products would be huge."

