SkySong deal to help Mexican companies expand

High-tech startups from Mexico will get help expanding into U.S. and global markets under an agreement Arizona State University announced Monday.

The deal will establish a technology business accelerator, to be called TechBA Arizona, at SkySong, the ASU Scottsdale Innovation Center.

The university is partnering on the program with the U.S.-Mexico Foundation for Science and with Mexico's ministry of the economy.

The accelerator will provide the Mexican companies with office space, a dedicated staff and consulting under a $200,000-a-year contract with ASU, said Julia Rosen, associate vice president for innovation and entrepreneurship at ASU. That leaves participating companies free to put their resources into marketing and product development. The companies will range from software and business services to manufacturing and renewable energy.

Between 10 and 20 companies will take part in a pre-accelerator educational program starting in January. About 10 companies will be selected after the four-month program to join the accelerator and begin expansion plans.

"They are seeking to lower the cost and risk of entering the U.S. market," Rosen said. The firms will hire employees and build their enterprises in the United States, she said.

TechBA Arizona will be the sixth such program worldwide. Others are in Silicon Valley; Austin; Detroit; Montreal; and Madrid, Spain.

Rosen said the local relationship began when representatives of the Mexican science foundation attended SkySong's grand opening in March. Rod Miller, vice president of international economic development for the Greater Phoenix Economic Council, then pitched metro Phoenix to the organization's board of directors.

The foundation chose the Valley over other locations in the Mountain West region because of ASU's efforts to build itself as an international university, said Barry Broome, chief executive officer of GPEC.

Broom said the deal capitalizes on foreign companies' interest in U.S. investments and helps develop more knowledge-oriented, high-paying jobs.

"We have to build economic development strategies where there is momentum," he said. "There is really an opportunity in foreign direct investment for Arizona."