After years of planning, workers will shortly break ground on a project that will transform an old, city-owned public school into a bustling technology hub.
Called Innovate Newport, the finished product will feature roughly 34,000 square feet of incubator and accelerator space for startups and small businesses focused in the underwater technology, marine science, cybersecurity and environmental resiliency sectors.
The $7.1 million public-private venture is a collaboration between the city of Newport, the Newport County Chamber of Commerce and the Economic Development Fund of Rhode Island.
The project also received $2.1 million in Rebuild Rhode Island tax credits through the Rhode Island Commerce Corporation.
“This project is a microcosm of a strategy that we in commerce are trying to employ to help the state economy grow: Invest in innovative, catalytic projects that help the state grow,” Jesse Saglio, managing director and head of the investments group at the Rhode Island Commerce Corporation, told Rhode Island Inno. “Startup and existing small companies will be the driver of growth for the state and country’s economy as a whole.”
Innovate Newport will help Rhode Island as it looks to bolster its advanced industries economy, which includes segments such as manufacturing and energy.
“It became clear this was a gap in the Aquidneck [Island] microeconomy, and we thought there would be substantial demand.”
According to a Brookings report created in 2016 on the Rhode Island economy, advanced industries employment in Rhode Island has fallen well behind the national rate, as well as the general employment rates in the state and nationally.
This is a lost opportunity because 50 percent of advanced industries jobs require less than a bachelor's degree, yet offer a significant wage premium, according to the report.
Due to this erosion of the advanced industry base, the Brookings analysis recommended the state “build more resilient, future oriented industry specializations to secure the next generation of prosperity.”
Although many future tenants are unknown, The Providence Journal reported in December 2016 that the city of Newport had reached an agreement with the Naval Undersea Warfare Center to work together on licensing of Navy technology at the facility.
In addition, an economic impact analysis of the construction of the facility will result in a $4.1 million, one-time GDP boost, 49 jobs and a $7.8 million economic output.
The same analysis shows that annual operations of Innovate Newport once up and running will result in 184 full time jobs, $25.2 million in annual statewide economic output, a $14.7 million increase in Rhode Island’s annual GDP and more than $650,000 in annual state tax revenue.
But the incubator will do more than just create jobs and increase output; it will also solve a capacity issue.
“We were excited about the project because there seemed to be a need for office space in general but particularly innovation-focused office space,” said Saglio. “It became clear this was a gap in the Aquidneck [Island] microeconomy, and we thought there would be substantial demand.”
Saglio said the project is supposed to be open later this year.
Editor’s Note: Innovate Newport is a Rhode Island Inno 50 on Fire finalist. Read the whole story on the awards event here.
