Chicago and New York residents are eyeing Houston. Getty Images

Despite the current state of things — a pandemic, historic unemployment numbers, and an unstable economy — people are still thinking of moving. And, according to Apartment List, they have eyes on Texas.

The website's quarterly Renter Migration Report is out, using searches made on its platform between January 1 and April 15, 2020, to map where renters are looking to make their next move.

Chicago (3.3 percent), New York (3.4 percent), and San Antonio (22.8 percent) are also eyeing Houston, while H-Town residents are looking to keep it close in Dallas (8.9 percent), San Antonio (6.8 percent), and Austin (6.6 percent).

Austin is the most popular Texas city in the report, with the region increasingly being seen as an alternative to the expensive coastal metros where tech jobs have historically clustered. A staggering 70.9 percent of searches for apartments in Austin come from outside the metro, Apartment List reports, the highest share among the nation's 50 largest metros.

Aside from the 25 percent searching from San Antonio, the 4.6 percent from Dallas, and the 4.5 percent from Houston, 4.2 percent of renters searching for apartments in Austin currently live in the New York City metro. Furthermore, 2.5 percent of inbound searches to Austin are coming from Los Angeles and an additional 2.5 percent are coming from the San Francisco Bay Area.

For as many people who want to enter Austin from San Antonio, there's nearly the same amount that would be doing the opposite. Austin renters searched for San Antonio (16.8 percent), Dallas (7.9 percent), and College Station (6.4 percent).

While current Chicago residents and New Yorkers are typing "Dallas" into their search bars, accounting for 3.6 percent and 3 percent of data exploring Big D, respectively, it's San Antonians who are truly interested. A whopping 23.1 percent of current Alamo City residents made exploratory apartment searches in Dallas this past quarter. Overall, 32.8 percent of those looking for a place to live in Dallas are searching from outside the metro.

Meanwhile, 8.7 percent of apartment hunters currently living in Dallas are looking to move elsewhere. They searched for Houston (4.9 percent), San Antonio (4.8 percent), and Los Angeles (4.5 percent).

And though we've heard about it several times, where does San Antonio fall in all this? Turns out renters who currently live there are thinking about moving to Dallas (17.7 percent), followed by Houston (12.4 percent) and Austin (8.4 percent). Residents of McAllen (5 percent), Dallas (3.9 percent), and Houston (3.5 percent) are considering making San Antonio home.

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This article originally ran on CultureMap.

Houston usurped the Dallas metro to grab the No. 2 ranking in the United States for big cities attracting corporate relocation and expansion projects. Getty Images

Report: Houston ranked No. 2 in the country for corporate relocation, expansion projects landed in 2019

big business

In Texas, Houston rules the corporate relocation and expansion kingdom.

Site Selection magazine ranks Houston second among large U.S. metro areas for the number of corporate relocation and expansion projects landed in 2019. That's up two spots from the previous year's ranking.

On the new list, published in the magazine's March issue, Houston replaces Dallas-Fort Worth in the No. 2 spot among metros with at least 1 million residents, pushing DFW down to No. 3. Austin takes the No. 6 spot.

Last year, Houston landed 276 projects that met the magazine's ranking criteria. With 416 projects, Chicago earned the No. 1 spot. Dallas-Fort Worth scored 261 projects in 2019, while Austin snagged 95.

Qualifying projects for Site Selection's rankings must have a minimum investment of $1 million, create at least 20 new jobs, or involve at least 20,000 square feet of new space.

A couple of notable Houston corporate relocations or expansions in 2019 were:

"This latest ranking is more evidence of Houston's strength as a destination for corporate relocation and investment," Bob Harvey, president and CEO of the Greater Houston Partnership, says in a March 3 statement. "Our low cost of doing business, access to quality talent, and pro-growth mentality continue to make Houston an attractive place for companies across the country and around the world looking for expansion and relocation opportunities. Our strong, diverse economy is a big part of what makes Houston a great global city."

Commercial real estate services company Colliers International notes that Houston is one of the country's most competitive cities for corporate relocation and expansion.

"Houston's ability to foster continued expansion in future-growth industries responsible for generating high-quality, well-paid jobs across all business sectors has placed it in the top tier among U.S. cities," Colliers International says. "With its numerous business advantages, Houston is well positioned to successfully compete in today's global marketplace."

Among those advantages, Colliers says, are:

  • Two major airports
  • Massive seaport
  • Extensive rail and road infrastructure
  • 90 foreign consulates

In February 2019, René Lacerte, founder and CEO of Bill.com, said the Palo Alto, California-based company picked Houston for its first U.S. outpost following an "extensive national search." Bill.com settled on Houston because of its talent pool, quality of life, and business-friendly environment, he said.

Houston Mayor Sylvester Turner has said the Bill.com expansion represents a "another great example of Houston's building momentum as a leading digital tech hub."

A second example is Amazon Web Services' July 2019 expansion in Houston. Kris Satterthwaite, the company's Gulf Coast enterprise sales leader, praised the city as "a fantastic place to live and work," and as having "a strong local economy that we look forward to investing in and growing together [with]."

The Houston-DFW-Austin trifecta of top-performing markets for corporate relocation and expansion in 2019 helped propel Texas to win Site Selection's Governor's Cup Award for the eighth consecutive year.

In accepting the award, Gov. Greg Abbott called Texas "the most dynamic economy in the nation."

"Texas' skilled, diverse, and ever-expanding workforce drives our booming economy," Abbott said. "I want to thank all of our local, regional and statewide economic development teams for their work to expand economic opportunity in Texas, as well as the companies that continue to invest and create more jobs throughout the Lone Star State."

Houston's density is possibly its biggest challenge when it comes to developing its innovation ecosystem, says a Houston expert. Getty Images

Houston needs to overcome its lack of density to continue to develop as an innovation ecosystem, says expert

Guest column

From the front porch of Houston, Texas, we solve some of humanity's hardest challenges. We're the ones who put humans on the Moon and rovers on Mars, go subsea in search of hydrocarbons, and are discovering a cure for cancer. We solve complex challenges, because of a characteristic seemingly embedded deep within our DNA — we are all explorers of the unknown.

Today, a new challenge is rallying our attention, inspiring us to push the boundaries yet again. And, that's the hard challenge of population density. Houston is fourth in population in the country, and yet 89th in the number of people per unit of area.

Why is this an issue, one might ask? Houston, like many other cities around the world, is racing to become a hub for innovation, a critical catalyst fueling the next generation of growth and economic prosperity. And, density is a key component of innovation — it brings divergent mindsets together to look at challenges from multiple perspectives and creates an environment that brings big bold ideas to life.

However, the nature of our geography has created silos that are not easily broken down and separates us by industries, communities, interests, mindsets, and access to transportation, among other things.

But, let's not underestimate our true spirit — and our ability to explore the unexpected, push the boundaries and tackle the challenges the world throws at us.

If I learned anything from living here my entire life, Houston has grit, imagination, and motivation and knows what it means to be a trailblazer. Houston is the most diverse city in the United States. Our culinary landscape is constantly pushing the boundaries of creativity and imagination. Local graffiti and modern art installations are reshaping the visual identity of our community. Our sports and performing arts "rockstars" consistently deliver real-time experiential immersion.

We need to recognize and embrace how these colors of Houston connect us all regardless of our geographic silos and push innovation forward. Said another way, we have all the colors; we just need to converge and paint the canvas together.

True to our nature, some of our Houstonian friends have begun chipping away at this challenge already. Central Houston is attracting world-renowned incubators and accelerators like MassChallenge and Gener8tor — and this scene alone is ever-expanding. The Cannon, The Ion, Impact Hub, Launchpad, Headquarters, and other players are creating environments that bring people together and meet the needs of an ever-evolving workforce through experiential community. We even have a dedicated publication for all things innovation — Innovation Map — sharing resources across our vast city and ensuring no great story is left untold.

Our rich diversity means we have access to human beings from a multitude of backgrounds, which in itself is a force to be reckoned with. By interacting with a variety of human beings, we become more empathetic, understanding, and celebratory of new ideas. This is fundamental to continuous innovation — how we interact and approach challenges, engage in new experiences, and become an inspirational leader in life and work. So, break down the silos and access the diversity of thinking that's already outside the door.

At the same time, the challenge of density must be tackled not only physically but also digitally. By converging the physical and digital ecosystem through a neural network, we can intelligently connect the activity with centralized access to start-ups, corporations, nonprofits, free-lancers, incubators, accelerators, maker-spaces, academia, local influencers, and public partners. Digitally bridging all of us can make one of the largest and most spread-out cities in the U.S. feel like a small Texas town with big ideas and an ever-stronger dimension of inclusivity.

So, join the movement, strike up a conversation, grab your metaphorical spray paint and converge with all the vibrant colors of Houston as we energize the future of humanity, navigate to Mars and back safely, and annihilate the existence of cancer.

As Steve Jobs said: "The people who are crazy enough to think that they can change the world, are the ones who do." Are we ready?

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Brad Rossacci is creative director at Accenture's Innovation Hub in Houston.

As the city grows, Houston faces more and more challenges from transportation and infrastructure to gentrification and climate change. Getty Images

Overheard: Expert panel weighs in on the future of Houston — from mobility to climate change

Eavesdropping in houston

As technology and infrastructure evolves, Houston is growing and evolving with it — in both good ways and bad.

On October 30, Gensler hosted its annual Evolution Houston forum that brings together various personalities and industries to discuss the future of the city of Houston. The panelists discussed gentrification, climate change, mobility, smart cities, and so many other hot topics Houstonians hear or think about on a regular basis.

Missed the event? Here are some powerful quotes from the discussion.

“I like to think of Houston as an adolescent city, struggling for its identity.”

Peter Merwin, design principal at Gensler, who adds, "If you look at places like New York, London, Paris — those are all luxury cities. They are fully formed, and a consequence of that is that they become unaffordable. It's something that we have to be careful about in Houston."

“One of the things that has been echoed by many of the artists and many of the poor people over the last few years is, [people] ‘want the culture but they don’t want us.’ It’s very reflective when you go [into the communities.]”

Kam Franklin, activist and singer-songwriter of The Suffers. Franklin described how she would move from the various neighborhoods she's lived in after they've grown in culture. She would see such a huge increase in her rent as people were more willing to pay the premium to live in these newly desirable neighborhoods because of the culture, but its pricing out the original inhabitants. Franklin added, "I'm not going to tell any of y'all where I moved."

“We have to continue to support the diversification of mobility options.”

Abbey Roberson, vice president of planning at the Texas Medical Center. Roberson says transportation is something she particularly focuses on considering how many people filter in and out of the TMC on a daily basis. The medical center wouldn't be able to support the traffic with out various modes of transportation — busses, light rails, etc. Roberson adds that this translates to the rest of the city. "We can't just be doing one thing or the other."

“We’re creating this great culture of trail activation.”

Steve Radom, founder & managing principal at Radom Capital LLC, which developed Heights Mercantile off a bike path and is now building out The MKT, which is also along the same bike path. Radom notes that the city has seen a 300 percent year over year in walkability and a 70 percent increase in bike traffic.

“Climate change is not something the city of Houston can change alone.”

Lara Cottingham, chief of staff & chief sustainability officer at the city of Houston. The city's climate action plan is a result of the devastating floods has seen almost annually. The plan is still being drafted but a version is expected to be released before the end of the year. Every city is facing sustainability challenges, and partnerships are what's going to drive change. "In Houston success means partnership," Cottingham adds.

“How do you talk about a city this big and diverse — every neighborhood has its own identity.”

Jon Nordby, managing director of MassChallenge in Houston, discussed how Houston functions differently from other cities in that it its various neighborhoods — the Heights, Montrose, downtown — are different from each other.

Where are all those new Newstonians coming from? Texas. Photo by Scott Halleran/Getty Images

Houston named on a new list of most popular places to move to in the U.S.

Still booming

A new study shows Texas' major metros are some of the hottest places to move to in the U.S. — and Houston tops them all.

Real estate site CommercialCafe recently looked at "metro-to-metro" migration to see which areas are "winning" in terms of new residents, and a trio of Lone Star cities appears in the top five.

With an average net gain of 32,821 residents, Houston ranks third overall. Dallas-Fort Worth, with an average net gain of 30,639, follows at fourth. And Austin, with an average net gain of 26,733 people, is fifth. (The migration data was based on U.S. Census yearly average estimates for 2013-2017.)

"Among the three Texas metros on our list, Houston saw the largest population increase through metro-to-metro migration," says the report.

So where are these new residents coming from? Elsewhere in Texas. Houston gained the most new residents from DFW (16,306), followed by Austin (9,304) and San Antonio (7,443).

Those are also the most popular locations for Houston residents to move to. On average, more than 15,000 Houston residents relocated to DFW, followed closely by Austin (14,082) and San Antonio (8,692).

Houston's growth "is visible in Space City's many business districts, which added almost 18 million square feet of office space between 2013 and 2017, according to Yardi Matrix data," says the report. "This amount surpasses that of any other metro in the top 10. The Houston housing market is also on the upswing. The number of housing units here increased by an average of 2.1 percent — or 52,841 units — each year."

Outside of Texas, the report shows that folks are flocking to Phoenix (No. 1) and California's Inland Empire (No. 2).

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This article originally ran on CultureMap.

Houston's ready for the artificial intelligence revolution. Yuichiro Chino/Getty Images

Houston ranks among the top cities ready for the rise of artificial intelligence

Ready for it

How ready is Houston for the rise of artificial intelligence? More ready than you might think.

In the recently released Global Cities' AI Readiness Index, Houston ranks ninth in the world among large cities (those with 5 million to million residents). Singapore topped the large-city list; Dallas appeared at No. 8.

"The age of technology is here, and we cannot afford to sit idle," Houston Mayor Sylvester Turner says in a recent release. "We must leap, not stroll, into the future."

The Oliver Wyman Forum, part of management consulting firm Oliver Wyman, based its AI ranking on surveys of residents and leaders in 105 global cities, along with a review of publicly available socioeconomic data. The group says its goal in compiling the ranking was to "start a data-informed conversation about how to address the very real opportunities and challenges of AI disruption."

"Houston has been working diligently over the past several years to grow a robust digital tech ecosystem," says Susan Davenport, senior vice president of economic development at the Greater Houston Partnership. "Previously, most surveys ranked Houston in the 30s in this area. When we see ourselves ranked ninth among large global cities and U.S. metros in AI readiness, it's a positive signal of our trajectory."

Signs of Houston's trajectory in the AI universe abound:

"When you think about Houston's core industries like energy, life sciences, and manufacturing, these are all data-intensive businesses that are ripe for disruption by AI and other digital technologies," Davenport says. "There is significant activity with AI already happening in the market, but I think we're still early on the growth curve, with a great deal of upside potential."

A recent search of job website LinkedIn found more than 200 AI-focused jobs available in the Houston area at employers like Shell, Accenture, Deloitte, Capgemini, HP, and EY.

Over the past year, the Greater Houston Partnership has led several trips to Silicon Valley to meet with companies involved in AI, cloud computing, and other technologies that enable businesses to harness the power of data.

"We are finding these innovative companies are very interested in tapping into the customer base here in Houston," Davenport says, "and we expect to see growth in this sector to continue over the next few years."

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Statewide accelerator hires new Houston staffer and embraces 'virtual first' approach amid COVID-19

new hire

For years, Capital Factory has existed to promote innovation and grow startups across Texas and has expanded from its headquarters in Austin to Dallas, Houston, and beyond. In light of COVID-19, the organization has pivoted to make sure it can work with startups remotely and online.

"I think Capital Factory has successfully embraced virtual first," says Bryan Chambers, vice president of the accelerator and fund at Capital Factory. "I think it's gone well and it feels like we're just hitting our stride."

Chambers admits that the onset of the coronavirus had a great effect on Capital Factory — SXSW being canceled did its damage on the organization, which has a huge presence every year. However, cross-state startup collaboration is the driving force behind Capital Factory's Texas Manifesto.

"We're one big state, and we're one big startup ecosystem," Chambers says. "The resources across Dallas, Houston, Austin, North Texas, and San Antonio are available for everybody. Candidly, COVID aligns with that. There's no better time — COVID is erasing the boundaries in a virtual world."

In addition to navigating the transition to virtual operations, Capital Factory has also introduced its newest Houston staff member, as Adrianne Stone has started this week as venture associate for the organization. Stone received her Ph.D in Translational Biology and Molecular Medicine from Baylor College of Medicine before heading out to the West Coast and working at 23andme. She brings both her experience with health tech and Silicon Valley to her position.

"The mindset in Silicon Valley is different from how it is here in Texas — in good ways and bad ways. It was interesting to be exposed to a very potent startup vibe," Stone tells InnovationMap. "I'm looking forward to being able to meet all the cool companies, founders, and investors we have here in the Houston area."

Stone replaces Brittany Barreto, who helped in coordinating her replacement and is staying on part-time for the rest of August to help with training and immersion into the ecosystem. Barreto, who is one of the founders of the recently launched startup masterclass Founder's Compass, has also introduced a new brand called Femtech Focus, that includes a podcast where she talks to innovators in the women's health and wellness space.

"I'm ready to get back into the founder's saddle," Barreto says, adding that there's more to come for Femtech Focus.

Throughout her tenure, Barreto has overseen Capital Factory's Houston portfolio companies — both identifying potential investment opportunities and connecting startups to resources and mentors. She passes the torch to her former BCM classmate, and says she's excited to do so to a fellow Ph.D.

"The last year and a half, I've working really hard on laying this foundation. I don't want all that hard work to go away, so I cared a lot about who was going to take my position," she says. "I wanted to make sure that all my founders had someone who cared about them as much as I do."

Impact Hub Houston has new HQ, HCC creates AI program, and more innovation news

Short stories

Houston's innovation ecosystem has been booming with news, and not all make the news. For this roundup of short stories within Houston innovation, a Houston startup incubator has a new home, a local school creates AI-focused program, Astros manager taps into sports tech, and more.

Impact Hub Houston makes downtown partnership

Impact Hub Houston has a new headquarters in downtown. Photo courtesy of Central Houston

Impact Hub Houston, a nonprofit organization that promotes and accelerates sustainability-focused startups, is resident partner at Downtown Launchpad, according to Central Houston and the Downtown Redevelopment Authority.

The organization now has a 10-year lease and a new headquarters for its team and events. Impact Hub joins two accelerator programs — MassChallenge Texas and gener8tor — which both have a global presence and launched in Houston in the past two years.

"We celebrate Central Houston's vision in launching this 'vertical village' and appreciate their ongoing support in including Impact Hub Houston as a part of it," says Grace Rodriguez, CEO and executive director of Impact Hub Houston, in a news release. "It takes a village to raise an entrepreneur, and now we have that village with the infrastructure and community to raise generations of diverse innovators. It's another exciting step towards our goal to build an authentically inclusive and equitable entrepreneurial ecosystem that looks like Houston and works for all in our region."

HCC introduces artificial intelligence program

Data science startup based in Houston focus on neuroscience software nabs $3.78M grant

A local college system is training the future AI workforce. Getty Images

Houston Community College is the first community college in the state to introduce a new program focused on artificial intelligence. The new Associate of Applied Science degree program has been approved by Southern Association of Colleges and Schools Commission on Colleges, according to a press release from HCC, and is available for the fall 2020 semester at HCC Southwest, HCC Northeast and HCC Southeast.

"It is the latest of HCC's ongoing efforts to embrace new technologies and keep a pulse on the ever-changing needs of the industry," HCC Chancellor Cesar Maldonado says in the release. "Offering an innovative program like AI will allow our students to take advantage of all the accelerated job openings in Houston, in Texas and beyond."

The new program exists to fill the rising need for AI professionals. Last year, the job site indeed.com identified machine learning engineers at the top of its annual list of the 25 best jobs, citing a 344 percent increase in job postings from 2015 to 2018 with an annual base salary of $146,000.

"Because of a dire shortage of AI specialists, many companies are offering big salaries," says G. Brown, Ph.D., program coordinator of Networking and Telecommunications at HCC Southwest, in the release. "AI specialists are in high demand by companies like Microsoft, Apple and Amazon, as well as NASA and SpaceX."

Rice project re-envisions dorm layouts

The dorm design created socially-distant spaces that can be used in times of a pandemic. Photo via rice.edu

Two Rice University students received top marks in the 2020 American Institute of Architects Houston (AIAH) Gulf Coast Green Student Competition for their pandemic-proof dorm design. Carrie Li and Mai Okimoto, both 2022 Rice master's of architecture students, won first place in the competition that challenged students to design a dorm for the University of Houston-Downtown that would adhere to the Centers for Disease Control's social distancing guidelines.

"Carrie and Mai's timely and innovative proposal is beautifully conceived, highly resolved and elegantly presented," says interim dean, John J. Casbarian, in a news release. "I am particularly struck by how seamlessly it addresses the pressing issues of flooding, natural ventilation and social distancing, and how well sited it is in relation to UHD while mitigating the adversity of the freeway expansion.The competition consisted of eight teams from Texas and Louisiana which presented to judges from Kirksey, PDR Corporation, Gensler, Walter P Moore and UH-D. Li and Okimoto's project features 432 units across three villages and even factored in the area's flooding challenges.

"[Our design] aims to: allow social interaction to happen on different scales, from the one-on-one connection to larger scale gatherings; provide the users with safe but varied circulation paths, through which natural ventilation also occurs; treat dining as a key socializing program; and address the site's flooding risks and impacts of the I-45 corridor expansion," Li says in the release.

City of Houston passes small business-focused economic relief initiative

A new program from the city of Houston is helping to provide funds for businesses affected by COVID-19. Getty Images

Last week, Mayor Sylvester Turner and the Houston City Council passed the city's Small Business Economic Relief Program, funded with $15 million of the City's allocated CARES Act 2020 funds. Small businesses can apply for up to $50,000 and the grant can be used for payroll, accounts payable, rent, mortgage, PPE for employees, marketing strategies, including creating an online presence and other sales alternatives.

"We know small businesses throughout Houston have suffered greatly due to the global pandemic, and it could take months or years before the business climate returns to normal," says Mayor Sylvester Turner in a news release. "I thank Vice Mayor Pro-Tem Martha Castex Tatum and other council members for bringing this program forward. We are working on other relief packages that will keep us Houston Strong as we navigate the public health crisis."

The program will be administered by Houston's Office of Business Opportunity and the Houston Business Development Inc.

To qualify for the SBERP, businesses must be located in Houston, have been in business for at least one year, provide evidence for revenue decrease due to COVID-19-caused closures, have less than $2 million in gross annual revenue pre-COVID-19, be in good standing with the city, and commit to complete technical assistance.

"The SBERP will help all sizes of small businesses move one step closer toward financial recovery. This program is intended to maximize the long-term, positive impact of these small businesses on our local economy through their contribution to job retention and the continued availability of their services," says Marsha Murray, director for the Office of Business Opportunity, in the release. "If our local small businesses did not qualify for other federal or local programs, or did not receive enough funds to mitigate the impact of the crisis, we encourage them to apply for this program."

Astros manager joins venture capital firm

Not only is Dusty Baker at the helm of the 2017 World Series-winning Astros, but he's also a founding partner of a sports-focused venture capital firm. Getty Images

The Houston Astros manager, Dusty Baker, is a founding partner of a new venture capital firm focused on sports tech and innovation. New York-based Turn2 Equity Partners is a new fund is beginning with a focus on amateur and professional baseball markets.

"For decades, baseball players, managers and executives have lended their credibility to brands as endorsers," Baker says in a press release. "With the establishment of Turn2 Equity, for the first time, faces of the game have the opportunity to own and influence people at all levels."

Co-founded by sports venture capitalists Jarett Sims and Peter Stein, the firm's team also includes Jim Duquette, New York Mets general manager; Bobby Evans, who was formerly with the San Francisco Giants as general manager; and John Haegele, the former CEO of Van Wagner Sports & Entertainment.

GotSpot Inc. wins veterans competition

A Houston startup that's using technology to optimize short-term real estate space took home a prize in a virtual pitch competition. Image via LinkedIn

Houston-based GotSpot Inc. has claimed another pitching competition prize for veteran-owned businesses. Reda Hicks, founder of the Houston startup, received third place and $10,000 at the Ford Fund Virtual Pitch Competition last month. Memphis-based Pure Light Clean Air Services took first place and $15,000 and Raleigh, North Carolina-based Blue Recruit won second place and $10,000.

"The experiences, teamwork and skills learned in service of our country can serve as a solid foundation for these men and women as they build sustainable businesses," says Yisel Cabrera, manager of the Ford Motor Company Fund, in a news release. "We're proud to work with Bunker Labs to assist these inspiring entrepreneurs as they pursue new roads to success."

Calling all energy startups

Upstream startups can submit to a new virtual pitch competition. Photo via atce.org

The Society of Petroleum Engineers is calling for applications from energy startups to compete in a virtual pitch competition. Applications for the ATCE Startup Village, which is a collaboration between SPE and the Rice Alliance for Technology and Entrepreneurship, are live online and due by August 14. The competition will take place Tuesday, October 13.

The competition is free to compete and to apply, and open to early stage upstream technology companies. Each company selected to present will have 5 to 8 minutes to provide a "quick pitch" about their company to a group of venture capitalists, angel investors, and industry leaders. Judging will be based on innovative technology, commercial strategy and business plan, market potential, and management team and advisers.

Rice University research: Collaboration with the community can be key to success

houston voices

In Pittsburgh, a coalition of 100 community groups brokered a deal with developers of the Pittsburgh Penguins ice hockey team for $8.3 million in neighborhood improvements. In Oakland, California, developers of an $800 million high-tech complex promised local residents 50 percent of its construction jobs. And in Chicago, the Obama Presidential Center is working with residents to shield them from skyrocketing rents.

Community Benefits Agreements, or CBAS, as these agreements are called, are increasingly common between businesses and the places where they want to set up shop. But are they worth the money? To find out, Rice Business professor Kate Odziemkowska joined Sinziana Dorobantu of New York University to analyze market reactions to 148 CBA announcements between indigenous communities and mining firms in Canada. The financial value of these agreements, the researchers found, was real.

While it's easy to imagine that CBAs are just costly giveaways, they're more than goodwill gestures. Instead, they are legally enforceable contracts to distribute benefits from a new project and to govern the response to any potential social and environmental disruptions. For businesses, the researchers found, they are also good strategy, because they prevent costly, drawn-out conflict.

To conduct their research, Odziemkowska and Dorobantu analyzed a sample of 148 legally binding CBAs signed in Canada between mining firms and indigenous communities between 1999 and 2013. In Canada, mining companies and indigenous communities often hammer out agreements about extraction and use of local resources. Studying only the mining sector let the researches control for the economic variations that characterize different industries.

Since CBA negotiations cannot be disclosed, the announcement of such agreements represents new market information. To conduct their study, the researchers tracked the market reaction to these announcements, using a technique that measured short-term returns.

Creating CBAs from the start, they found, can head off catastrophic costs later. That's because even when a company has disproportionate economic strength, the public relations, legal and economic costs of community conflict can be draining. Consider the 1,900-kilometer Dakota Access oil pipeline, whose developers faced six months of round-the-clock protests that included nearly 15,000 volunteers from around the world. The drumbeat of litigation and negative news coverage still continues today.

In general, the researchers found, the more experience a community has with protests or blockades, the more firms gained from signing a CBA. Property rights protections also provide strong incentive for making a deal. Mining companies, for example, need access to land to do business. Communities with robust property rights to the resource or location sought by the firm have strong standing to stop that firm if they don't make a deal.

Because access to valuable resources like land or intellectual property can mean the difference between financial success or failure, Odziemkowska and Dorobantu said, the lesson from their findings extends far beyond Canadian mines. It's a lesson Disney learned the hard way when it failed to acknowledge the culture of Norway's Sami people in "Frozen." Assailed for cultural appropriation by using, but not crediting, traditional Sami music, Disney quickly made amends. After negotiating with the Sami people, Disney pledged to consult with them and portray them thoughtfully in the film's sequel.

The deal may have cost Disney on the front end, but it was nothing compared to the advantage of freezing out years of bad press.

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This story originally ran on Rice Business Wisdom. It's based on research by Kate Odziemkowska, an assistant professor of Strategic Management at Rice University's Jones Graduate School of Business.