When it comes to maintaining a good ecosystem, diversity is key. Houston learned that the hard way. Photo by Tim Leviston/Getty Images

Hello Bay Area! We Houstonians are concerned about you.

We think your economy is becoming overly dependent on Silicon Valley. In 2018, the technology industry accounted for around 62 percent of all office leasing activity in San Francisco. From September 2017 to September 2018, tech companies and realty investors bought $1.43 billion worth of San Jose downtown properties, nearly three times what they spent the year before on property in the city.

Some of your biggest search, social media, and database companies are expanding their headquarters in San Jose, San Francisco, and the rest of Silicon Valley. This is causing the construction industry to become more dependent on tech. But it's not just the construction industry that is becoming attached at the hip with Silicon Valley. According to the Bay Area Council, for every one high tech job created in the U.S., four more are created in industries as varied as education, law, dentistry, retail, and food. That means a lot of jobs in the Bay Area are, and are going to be, dependent on Silicon Valley.

Meanwhile, the Bay Area's high cost of living is pushing low and middle-income people further and further away from the state to places like Colorado, New York, and Texas (thanks for that by the way). The Bay Area had the highest income disparity between those migrating into the area and those leaving it than any major metro area in the country between 2010 and 2016. An economy can't last with just high-salaried tech workers.

We here in Houston have seen what happens when a metropolitan area becomes overly dependent on its dominant industry.

The 1980s were a tough time in Houston's history due to the huge fall in oil prices. In 1986, crude oil prices fell 52 percent to about $27 a barrel in today's dollars. The majority of Houston's economy was centered around the oil business at that time. The industries that were not directly related to energy, such as restaurants, car dealerships, and real estate were in a symbiotic relationship and were in some cases catastrophically hurt. When the oil industry took a hit, the entire economy took a hit. During this time, Houstonians lost 225,000 jobs, or one in eight jobs in the city.

Many young workers in petroleum engineering, geophysics, and other energy positions were laid off, many leaving the industry altogether. Older workers retired. In the mid-2000s, when the shale drilling revolution began, the needed manpower was just not there to meet the demand and it was expensive to hire and train a new workforce.

We were able to recover. Some 175,000 Houstonians are now working in oil production, oil field services, materials, and fabricated metals, and tens of thousands more are working as suppliers and contractors. We're more ethnically and industrially diverse than we ever were before, but it took time.

What did we learn from the 1980s?

First, diversify.

While we still have a vibrant oil and gas business in Houston, we've also expanded further into our other core industries: health care, technology and space. The Bay Area is fortunate in that it has strong banking, agriculture, and tourism industries. It ought to be putting more TLC into these industries or expanding into other fields.

We learned not to keep all of our wealth in the oil and gas companies in which we work. It's far too common for Silicon Valley workers to have too much trust in the companies they work for, hoping that their stock options will propel them to riches one day. As we learned in Houston, this can lead to disastrous results. Diversify your portfolios, but be careful. Houstonians over invested in real estate in the 1980s and miscalculated the future of that industry.

Second, Houston has also learned to keep well-educated professionals trained and capable of finding support for those in between jobs. Luckily this doesn't seem to be a problem for the Bay Area. While the Greater Houston Region keeps roughly 66.1 percent of its four-year college graduates in the area, the Bay Area keeps 65.2 percent of its graduates around. So, Bay Area, never take your universities, like U.C. Berkeley and Stanford, for granted.

We know the Bay Area has seen its own troubles before. The dotcom bust of the early 2000s was devastating to the local economy. We're just especially sensitive to what happened to us in 1980s and we'd hate to see the Bay Area go through something similar again.

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Elizabeth Biar is vice president of Strategic Public Affairs, a government elations and PR/communications firm based in Houston. Sam Felsing is a former reporter and who currently works as a senior account executive at Telegraph, a political consulting and public relations firm based in Oakland, California.

The Bayou City has been named the top Texas metro for minority entrepreneurial success. Photo by Zview/Getty Images

Houston named a top city for minority entrepreneur success

Melting pot

Houston reigns as the top major metro area in Texas for successful minority entrepreneurs, a new study shows.

The Houston area ranks No. 11 in the study, done by lending marketplace LendingTree, with Dallas-Fort Worth at No. 17, Austin at No. 29, and San Antonio at No. 34. In all, the study measures the success of minority entrepreneurs in the country's 50 largest metro areas.

Houston is no stranger to high marks for its minority-entrepreneur environment.

In 2017, Expert Market ranked Houston the No. 1 city in the U.S. for minority entrepreneurs. A year earlier, Rice University's Kinder Institute noted that the Houston area ranked sixth in the U.S. for metro-area concentrations of minority entrepreneurs.

For its ranking, LendingTree looked at four metrics:

  • Percentage of self-employed minorities in each metro area. (It's 2.5 percent in Houston).
  • Minority businesses ownership parity. A metro area scores well in this regard if the share of minority-owned businesses aligns with the percentage of minority residents. (Houston received a score of 59 in this category, with 100 being a perfect score.)
  • Percentage of minority-owned businesses that posted at least $500,000 in annual revenue. (It's 46.7 percent in Houston.)
  • Percentage of minority-owned businesses that have operated for at least six years. (It's 56.2 percent in Houston).

Ingrid Robinson, president of the Houston Minority Supplier Development Council, credits the Houston area's strong showing in the LendingTree study to a number of factors.

For one thing, minority entrepreneurs in Houston enjoy access to a vast array of resources at each stage of a business' growth, she says. For example, Houston Minority Supplier Development Council tailors its programs, seminars, and services to minority businesses in four revenue categories, ranging from less than $1 million a year to more than $50 million a year.

Furthermore, Robinson says, business development groups in the Houston area work more collaboratively than they do in many other regions.

"We truly try not to duplicate efforts, but to support one another and direct minority entrepreneurs to the appropriate organization that can best meet their needs," she says.

Robinson underscores the diversity of industries in the Houston area, including energy, healthcare, and aerospace. This diversity helps sustain business activity during tough economic times, she says.

Then, there's the fact that Houston is diverse in its demographics. A report released by Rice University proclaimed Houston is the most racially and ethnically diverse major metro area in the U.S. More than 145 languages are spoken throughout the region by a robust mix of white, Hispanic, African-American, and Asian residents.

"Houston is the only place in America that you can go to today that reflects the demographics projected for our entire country in 20 years," Robinson says. "So we have the opportunity to lead the way in showing the rest of our nation that minority business is good business for everyone."

Minority-owned businesses in the Houston area enjoy strong support from local, county, and state elected officials, Robinson says.

"The tone set by our governing bodies to ensure the broadest inclusion of minority entrepreneurs in governmental contracts makes Houston attractive to individuals seeking opportunities," Robinson says.

During his 2015 election campaign, Houston Mayor Sylvester Turner stressed that a competitive business environment — including a thriving community of minority-owned, woman-owned and small businesses — "is critical to Houston's future economic health."

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Houston engineers develop breakthrough device to advance spinal cord treatment

future of health

A team of Rice University engineers has developed an implantable probe over a hundred times smaller than the width of a hair that aims to help develop better treatments for spinal cord disease and injury.

Detailed in a recent study published in Cell Reports, the probe or sensor, known as spinalNET, is used to explore how neurons in the spinal cord process sensation and control movement, according to a statement from Rice. The research was supported by the National Institutes of Health, Rice, the California-based Salk Institute for Biological Studies, and the philanthropic Mary K. Chapman Foundation based in Oklahoma.

The soft and flexible sensor was used to record neuronal activity in freely moving mice with high resolution for multiple days. Historically, tracking this level of activity has been difficult for researchers because the spinal cord and its neurons move so much during normal activity, according to the team.

“We developed a tiny sensor, spinalNET, that records the electrical activity of spinal neurons as the subject performs normal activity without any restraint,” Yu Wu, a research scientist at Rice and lead author of the study said in a statement. “Being able to extract such knowledge is a first but important step to develop cures for millions of people suffering from spinal cord diseases.”

The team says that before now the spinal cord has been considered a "black box." But the device has already helped the team uncover new findings about the body's rhythmic motor patterns, which drive walking, breathing and chewing.

Lan Luan (from left), Yu Wu, and Chong Xie are working on the breakthrough device. Photo by Jeff Fitlow/Rice University

"Some (spinal neurons) are strongly correlated with leg movement, but surprisingly, a lot of neurons have no obvious correlation with movement,” Wu said in the statement. “This indicates that the spinal circuit controlling rhythmic movement is more complicated than we thought.”

The team said they hope to explore these findings further and aim to use the technology for additional medical purposes.

“In addition to scientific insight, we believe that as the technology evolves, it has great potential as a medical device for people with spinal cord neurological disorders and injury,” Lan Luan, an associate professor of electrical and computer engineering at Rice and a corresponding author on the study, added in the statement.

Rice researchers have developed several implantable, minimally invasive devices to address health and mental health issues.

In the spring, the university announced that the United States Department of Defense had awarded a four-year, $7.8 million grant to the Texas Heart Institute and a Rice team led by co-investigator Yaxin Wang to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation.

That same month, the university shared news that Professor Jacob Robinson had published findings on minimally invasive bioelectronics for treating psychiatric conditions. The 9-millimeter device can deliver precise and programmable stimulation to the brain to help treat depression, obsessive-compulsive disorder and post-traumatic stress disorder.

Houston clean hydrogen startup to pilot tech with O&G co.

stay gold

Gold H2, a Houston-based producer of clean hydrogen, is teaming up with a major U.S.-based oil and gas company as the first step in launching a 12-month series of pilot projects.

The tentative agreement with the unnamed oil and gas company kicks off the availability of the startup’s Black 2 Gold microbial technology. The technology underpins the startup’s biotech process for converting crude oil into proprietary Gold Hydrogen.

The cleantech startup plans to sign up several oil and gas companies for the pilot program. Gold H2 says it’s been in discussions with companies in North America, Latin America, India, Eastern Europe and the Middle East.

The pilot program is aimed at demonstrating how Gold H2’s technology can transform old oil wells into hydrogen-generating assets. Gold H2, a spinout of Houston-based biotech company Cemvita, says the technology is capable of producing hydrogen that’s cheaper and cleaner than ever before.

“This business model will reshape the traditional oil and gas industry landscape by further accelerating the clean energy transition and creating new economic opportunities in areas that were previously dismissed as unviable,” Gold H2 says in a news release.

The start of the Black 2 Gold demonstrations follows the recent hiring of oil and gas industry veteran Prabhdeep Singh Sekhon as CEO.

“With the proliferation of AI, growth of data centers, and a national boom in industrial manufacturing underway, affordable … carbon-free energy is more paramount than ever,” says Rayyan Islam, co-founder and general partner at venture capital firm 8090 Industries, an investor in Gold H2. “We’re investing in Gold H2, as we know they’ll play a pivotal role in unleashing a new dawn for energy abundance in partnership with the oil industry.”

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This article originally ran on EnergyCapital.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes an e-commerce startup founder, an industrial biologist, and a cellular scientist.

Omair Tariq, co-founder and CEO of Cart.com

Omair Tariq of Cart.com joins the Houston Innovators Podcast to share his confidence in Houston as the right place to scale his unicorn. Photo via Cart.com

Houston-based Cart.com, which operates a multichannel commerce platform, has secured $105 million in debt refinancing from investment manager BlackRock.

The debt refinancing follows a recent $25 million series C extension round, bringing Cart.com’s series C total to $85 million. The scaleup’s valuation now stands at $1.2 billion, making it one of the few $1 billion-plus “unicorns” in the Houston area.

Cart.com was co-founded by CEO Omair Tariq in October 2020. Read more.

Nádia Skorupa Parachin, vice president of industrial biotechnology at Cemvita

Nádia Skorupa Parachin joined Cemvita as vice president of industrial biotechnology. Photo courtesy of Cemvita

Houston-based biotech company Cemvita recently tapped two executives to help commercialize its sustainable fuel made from carbon waste.

Nádia Skorupa Parachin came aboard as vice president of industrial biotechnology, and Phil Garcia was promoted to vice president of commercialization.

Parachin most recently oversaw several projects at Boston-based biotech company Ginkjo Bioworks. She previously co-founded Brazilian biotech startup Integra Bioprocessos. Read more.

Han Xiao, associate professor of chemistry at Rice University

The funds were awarded to Han Xiao, a chemist at Rice University.

A Rice University chemist has landed a $2 million grant from the National Institute of Health for his work that aims to reprogram the genetic code and explore the role certain cells play in causing diseases like cancer and neurological disorders.

The funds were awarded to Han Xiao, the Norman Hackerman-Welch Young Investigator, associate professor of chemistry, from the NIH's Maximizing Investigators’ Research Award (MIRA) program, which supports medically focused laboratories. Xiao will use the five-year grant to advance his work on noncanonical amino acids.

“This innovative approach could revolutionize how we understand and control cellular functions,” Xiao said in the statement. Read more.