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Prosthetic Research and Production Boosts Technology Industry

Orthocare Innovations aims to make Oklahoma City the top hot spot for research, development and production of high-end, sophisticated prosthetic research. In a time when the economy is throwing other industries down, the tech industry in Oklahoma seems to be holding strong.

In July, Orthocare Innovations unveiled not only two new prosthetic devices - Compas™ and Smart Pyramid™ - that will improve the fit and function of prosthetic limbs, but a new, 14,000-square-foot production facility

"These are the first products out for new lines we're developing," says Doug McCormick of Orthocare Innovations. "Our goal is that in a year and a half, we'll have the largest research and development team in the U.S."

The new production facility in the Presbyterian Health Foundation Research Park was supported in part by the Oklahoma City Urban Renewal Authority, PHF and Oklahoma EDGE Fund. Manufacturing of these two new products began in August in the new production facility.

This boom in business is good news to the state's economy. With an additional 80 new positions to be added over the next five years with an average salary of $50,000 at Orthocare Innovations, McCormick says the tech industry is already helping Oklahoma's economy by bringing in new faces and higher salaries.

TECHNICALLY ... THE NEWS IS GOOD
According to the annual i2E performance survey of 141 client companies from the i2E commercialization portfolio, FY 2008 saw $130 million in reported revenues; $40 million in reported annual payroll; $60,000 average salary per FTE; 304 new products created 998 in reported current jobs; and 253 new jobs in 2008.

"Compared to 2008, (the tech industry) is doing well," says Jim Rogers, director of Enterprise for i2E, a private, nonprofit Oklahoma corporation focused on growing the technology-based entrepreneurial economy within the state. "I would argue that in terms of sellers - the business-to-business side of things and the activity among new firms and expansions of existing firms - we are having a very healthy market. What we are seeing now is a lot of shops who relied on a single individual or company as their cash cow are now looking for smaller opportunities and capitalizing on that."

Because Oklahoma had "some catching up to do" in terms of a solid tech infrastructure in the state, it hasn't been overbuilt and isn't suffering as much as some states with an overabundance of tech firms, Rogers adds.

"Another reason Oklahoma is doing OK is that the vast majority of tech space requires a low infrastructure footprint. In other words, people are able to go to a 'spigot' model for services in that they can now pay just for what they need. Because you see more businesses doing that, it's easier to get in and try the market a lot quicker," he says.

However, Rogers did predict a flat market for 2009.

"A flat market in a downturn translates to an up market in normal times," he says.

ON THE EDGE
Oklahoma's governor and legislators also want a piece of the action. With an endowed fund dedicated to supporting research and tech commercialization, money is available to those with innovative ideas that boost the economy.

In June, the Economic Development Generating Excellence Policy Board received 64 pre-proposals seeking money to support new technology development for Oklahoma's economy. Although the board received 94 pre-proposals and made five awards totaling $12.5 million in 2008, this year, only $5 million will be awarded.

Paul Risser, executive director of the program, says the 64 proposals are another indication of the growing power of innovation and technology in the state.