Illinois Cuts Funding for Tech Centers

Illinois Technology Enterprise Centers (ITEC) is an Illinois state-funded grant program designed to assist startup technology entrepreneurs. ITEC was established in 2000 when it opened two centers located in Evanston and Urbana-Champaign. Thereafter, in 2002, an additional six ITECs were opened at Argonne National Laboratory, Carbondale, Chicago, DuPage County, Peoria and Springfield.

For ITECs clients, at no cost or through subsidies, ITEC offers lab space, business advice and fund-raising help. ITEC normally assists companies focused in the following areas:

-information technology
-telecom/wireless
-industrial technology
-advanced materials
-engineered products
-drug diagnostics
-drug therapeutics
-medical devices and medical software

In the last three years, the ITEC centers helped start 185 companies, assisted in raising $157 million in financing and created or saved 1,190 Illinois jobs.

Unfortunately, these benefits may end if something isn't done. The 2007 Illinois state budget has decreased ITEC funding from about $2 million to $435,000. This reduction may result in some centers closing as soon as fall 2006.

Those at the Illinois Department of Commerce and Economic Opportunity (DCEO) that are involved in allocating ITEC funds promise to look for new funding. However, until any decisions are made, the benefits that the ITEC program has provided upstarts in new technology in Illinois may become extinct.