IN BUSINESS AND RESEARCH, Results

Iam a big fan of stories, and I find myself thinking about the type of stories that I remember. My hope is that the things that hook my attention incorporate something that I can repurpose to help motivate others. One, in particular, that has always stuck with me is the CFO asking the CEO, “What happens if we invest in developing our people and they leave?” to which the CEO responds, “What happens if we don’t, and they stay?”

Most successful enterprises invest in their people. Generally, it is good for the bottom line to recruit strong talent and invest in those already within.

This is absolutely true for the business of research.

Innovation and economic growth are inseparably linked to research. The investment made in research and development (R&D) not only drives technological advancements, it creates whole new industries. Pioneering research in pharmaceuticals has led to breakthroughs that have eradicated or controlled once-deadly diseases like polio, smallpox and more recently, provided rapid responses to global health crises such as the COVID-19 pandemic.

Beyond the health sector, research has transformed the way we communicate effectively (or don’t) with one another. Research talent is our primary tool to overcome global challenges, whether they are health-related, environmental or social. The value of research extends far beyond patents and products; it’s a tool for unlocking human potential and building a more resilient, prosperous future. Investing in research talent is investing in the solutions, innovations and opportunities that shape our world.

Exploring how others are recognizing this opportunity is instructive. For instance, in 1990 a group of Georgia leaders established the nonprofit Georgia Research Alliance (GRA) to help business, research universities and state government collaborate to build a technology-driven economy fueled by breakthrough university research. The GRA is connected to Georgia’s research universities, including the University of Georgia, Emory University, Georgia State University, Georgia Tech and others.

The goal set by GRA was ambitious: attract some of the world’s most brilliant scientists to establish new programs of research and development at affiliated Georgia institutions. The focus would be in areas with the most potential for generating new companies and creating new science and technology jobs. I recently had an opportunity to visit several of their eminent scholars and distinguished investigators to learn more about how the programs translate to tangible local impact.

The result of these meetings were personal stories that help add context to the $11,700,000,000 (yes, measured in billions!) of economic impact in Georgia attributed to investment in these individuals over 30 years. It is interesting to note that roughly 10 percent of the ROI is attributed to the last year reported. These are investments with returns that accumulate over time and where outsized value accrues to those who invest early.

The Arkansas Research Alliance (ARA) was established in 2008, modeled after GRA. Last month in this column, Bryan Barnhouse, ARA president and CEO, provided insight into the impact of ARA activities based on a third-party evaluation that is underway. The full report will be released soon.

The goal in establishing ARA and GRA is similar — advancing the states’ economies — but the methods to accomplish the goal are tailored to the unique environments in which the researchers operate. Both organizations work alongside research institutions to provide strategic investments into human and infrastructure capital. ARA efforts include supporting the translation of research to the private sector through industry engagement and/or new company formation along with working to facilitate collab- orative research across disciplines.

This is complemented by investing in the soft skills of our researchers to help ensure they can convey the importance of their work in venues like Arkansas Money and Politics

I am reminded of an oversimplified explanation of the venture capital model. In many ways, the goal is to find a machine where you can put in a dollar and get more than a dollar back in return. Once the model is proven scalable, you generally work to stuff as many dollars into the system as possible. We know that investing in Arkansas talent has a compelling multiplier, and we know the model has been proven to scale well. The question then is,

how much should we invest?

This is a question that cannot be answered in a vacuum. However, after this visit to GRA and sneak preview of ARA’s impact report, I find myself with a very tangible view of what is possible. The competitive side of me knows that Arkansas can accomplish the things we make a priority as well as anyone else in the world.

Douglas Hutchings was named the ARA Academy’s first director in July 2019. A graduate of Hendrix College in Conway, he holds a master’s and Ph.D. from the University of Arkansas, and is widely known for his active leadership in the state’s entrepreneurial community. Working closely with noted entrepreneurship educator Carol Reeves at the U of A, he founded a solar energy technology company and has mentored countless startup teams. His unique status as a citizen of both the business and academic communities brings authenticity, experience and vision to his important leadership roles.

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