OrthoWorx, AcceLINX Fuel Education, InnovationThis is not your grandparents’ orthopedic capital of the world. It might not even be your parents’. For decades, Warsaw’s biggest makers of orthopedic implants were left to their own devices, except for an occasional request for tax abatement or a state grant offered when the firms were expanding. But that began to change about eight years ago, when the community discovered a new outlook. A conversation spurred by Grace College President Ron Manahan and community leaders led to a fundamental question: What can be done to further nurture the industry? The discussion led to a study by BioCrossroads, an organization that oversees Indiana’s biosciences sector. The study was funded by the Lilly Endowment and led to the establishment of the Warsaw-based OrthoWorx and AcceLINX. OrthoWorx has been working for about six years to attract and develop talent, and fuel innovation. AcceLINX, a separate entity within OrthoWorx, is taking shape with a mission to nurture innovation. OrthoWorx is led in part by President and Chief Executive Officer Sheryl Conley and Executive Director Brad Bishop. They have four other employees with offices on the third floor of Warsaw’s city hall. OrthoWorx has already made significant inroads in reshaping education opportunities. Those include: • Working with Ivy Tech on the Orthopedic Advanced Manufacturing Training Center where high school students can take classes and receive credit toward a certificate. • Serving as a driving force behind the establishment of a Clinical and Regulatory Affairs master’s degree program at Grace College. • Lobbying and assisting in revising the curriculum at Warsaw Community Schools, chiefly the establishment of STEM — science, technology, engineering and math – education. “Pretty much from top to bottom, I think they’ve done an incredible job,” said Warsaw Mayor Joe Thallemer. OrthoWorx also has played a role in quality-of-life endeavors such as the Buffalo Street project, which proposes to develop condominiums and stores just south of Center Lake. The organization also plays an ongoing role in supporting possible upgrades in transportation. “All those things may not seem to the average citizen to make a lot of difference, but it’s a foundational support to the community,” Thallemer said. But what might be the most exciting aspect of OrthoWorx — and certainly the biggest financial risk — is AcceLINX. While many communities have established incubators, accelerators aim for the next level. Instead of providing short-term facilities that help companies get off the ground, accelerators provide expertise and are more selective in the companies they choose to work with, Conley said. The plan to establish AcceLINX came with a funding goal of more than $4.5 million. Last year, Kosciusko County agreed to provide $1 million and Warsaw agreed to dedicate $600,000 over six years. Another $1.2 million came from the Indiana Economic Development Corp. Fort Wayne and Allen County pitched in another $600,000. AcceLINX is expected to formally begin work within a few months. It has been working to establish a network of nearly 100 sources that can provide expertise in a range of areas. Already, AcceLINX is seeing some momentum. Even without marketing, it is working with six companies, including four in Indiana, according to Conley. Government officials were borderline giddy about the developments when Conley updated them earlier this month. “There was a leap of faith that all these companies would be interested,” said Kosciusko County Commissioner Ron Truex. “We were betting blind and it was a pretty good bet.” “We’re pleased as punch,” said Thallemer. “I see that as just the beginning.” Warsaw is supporting AcceLINX with revenues captured from its tech park under an arrangement established through the state. The park’s first tenant, Banner Medical, which opened its 42,000-square- foot manufacturing facility last summer, significantly increased revenues flowing in to cover the city’s cost. The county, meanwhile, tapped into its Economic Development Income Tax fund, which saw a big spike in revenues following the merger between Zimmer and Biomet in 2014. Much of that is believed to have come from large compensation packages given to Biomet executives who left after the merger. Meanwhile, BioCrossroads reports continued growth among its five sectors, of which orthopedics is viewed as the biggest, said Lori LeRoy, a spokesperson for BioCrossroads. AcceLINX is also working toward agreements with universities that can assist with research efforts. Indiana’s life sciences are seeing growing sales and an increasing global presence, LeRoy said. In a recent 12-year period, the economic impact across the state increased from $32 billion to $62 billion, BioCrossroads reported. “We just have a really unique mix of industry, entrepreneurs and midsize companies, and then you’ve got the anchors of the research institutions at Notre Dame, Purdue and IU School of Medicine that really bolster that,” she said. The orthopedic industry is expected to benefit from the statewide collaboration, she said. “We have a very collaborative environment, which is fairly unique on a national and probably a global scale as well, and that begets some really great things that are adding to the growth.”
