Emerging Tech Firms Being Courted By Government? Really?

By, Mary Scott Nabers

It has become commonplace for cities and states to seek out and court entrepreneurs and startup firms. Regions compete aggressively and many offer attractive incentives to startups, especially emerging technology firms.

But, how does a city or a state really deal with startups? Not too well in most cases. Public officials who make contracting decisions often see merit in new technology solutions but most are risk-averse and resist opportunities to contract with young companies.

Government culture tends to clash with anything moving too quickly. And entrepreneurs, in spite of their brilliance, are often difficult. Patience is not one of their greatest virtues.

There’s an answer somewhere and the good news is that a few visionaries appear determined to find it!

In 2014, the city of San Francisco launched an Entrepreneurship-in-Residence program with the objective of cultivating relationships with emerging tech companies. The city wanted to challenge government officials to think beyond typical constraints.

The program involved a four-month collaboration process that matched six tech startups with city departments to develop technology tools to improve and expand citizen services. The STIR (Startup in Residence) program was designed to bridge the gap between new technological advancements and operations within the government ecosystem.

The six startups were chosen from around the world. One company headquartered in Austria opened an office in San Francisco as a result of the successful collaboration. Another company, headquartered in Ireland, regularly traveled to San Francisco to meet with the city’s Municipal Transportation Agency.

Throughout the program, a collaborative group of tech firms and city officials worked to develop solutions to improve services. The success resulted in a $474,453 grant from the U.S. Department of Commerce. The funding went to the City and County of San Francisco to expand the STIR program to Oakland, San Leandro and West Sacramento.

The newest rendition of the STIR program involves 14 startups: six companies assigned to San Francisco, two with Oakland, three with San Leandro and three with West Sacramento. The program addresses a broad range of civic challenges, developing solutions for law enforcement, procurement, education and more.

As the digital revolution spreads across the nation, other cities have looked to San Francisco as a model for innovation. After acknowledging there was no mechanism for startups to connect with government, the city of Pittsburgh, Penn., developed its own program. The mayor announced the creation of what is called the PGH Lab.

Under the new program, the city selected three technology firms from a pool of more than 25 applicants. The companies will work in certain areas of interest to Pittsburgh – climate change and the environment, city operations and citizen engagement. One of the technology firms chosen develops smart vents and sensor networks that will save energy and protect equipment.

Another company develops technology solutions related to transit issues and problems. Both city officials and private-sector partners are enthusiastic and optimistic about great outcomes.

Civic technology is still an emerging trend – but definitely an encouraging one. It meshes innovation, collaboration and new technology. Successes such as the ones in San Francisco and Pittsburgh will serve to encourage even more acceptance of the trend.

One immediate outcome will likely be a change in public procurement processes. The slow and sometimes bureaucratic processes that have been problematic for small companies of all types are being streamlined.

It will soon be much less costly and time consuming to compete for government contracts. That’s a very good thing. More competition reduces costs for taxpayers and more collaboration improves citizen services. That’s visionary! 

This article originally published by Strategic Partnerships Inc.