education technology · 2017-07-21 · education technology is a combination of learning with and...
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The Future of EdTech in Greater BaltimoreEducation Technology
Patrick Dougherty, Business Development
and Research Associate
Introduction
The development of Education Technology (EdTech) builds not only companies and products, but
the futures of students and the roots of an entrepreneurial ecosystem in Baltimore for years to
come. EdTech innovators and entrepreneurs are central to moving classrooms and the economy
into the 21st century and beyond. For instructors, EdTech is a revolutionary efficiency tool that can
be used to reshape the way classroom interaction is constructed. To students, it represents open
doors that were previously closed or even unimaginable. The users of EdTech garner massive gains
from the adoption of progressive technology in the classroom. Greater Baltimore is the ideal place
for technology developers with plans to improve education.
It is impossible to understate the importance of Education Technology use in the classroom and of
the need to adequately educate and prepare today’s students. Instead, this report seeks to highlight
Greater Baltimore as a premiere hub for the development of new EdTech. The Baltimore MSA offers
strengths and opportunities to entrepreneurs in or seeking to enter the EdTech industry. No region
is better positioned for the launch of a new EdTech company. Among the advantages of the
Baltimore region are:
First-class education in public schools, private schools, and numerous universities;
A wide variety of funding opportunities with a history of funding education initiatives;
A talented, educated workforce with a large number of tech professionals;
Fluid commuting patterns allow Baltimore labor market to extend into DC metro;
Well-connected region, with many options for transportation;
A storied history of being a receptive market for testing new technologies;
A vibrant and growing startup culture; and,
A network of advocates for tech in the classroom and teachers with ideas to share.
Defining the Industry
Education Technology is a combination of learning with and about technology. It enables current
and future entrepreneurs and innovators to adapt to the changing needs of today’s information
economy. EdTech bridges knowledge between traditional business education and the skills
necessary for jobs in today’s economy. Education Technology is essential to the growth and success
of a culture of innovation, the entrepreneurial ecosystem, and overall economic strength and
leadership. Students exposed to EdTech learn to creatively problem-solve, innovate, create, and
explore all skills and interests needed to be successful in the new economy.
The way students engage with Science, Technology, Engineering, and Mathematics (STEM) fields is
revolutionized through the use of Education Technology. It drives interest and enthusiasm in young
students that would otherwise be uninterested in science and technology. EdTech allows
innovation and creativity in the classroom: students can experiment, build models, run businesses,
and simulate practical uses of STEM knowledge at an incredibly low cost, but with great benefit.
The barriers to attracting, retaining, and teaching students in STEM fields are reduced through the
use of technology in the classroom. EdTech generates hands-on learning and experimentation,
which keeps students engaged and sparks a future interest for study of the most important subjects
of the changing economy.
Strength of the Region
Greater Baltimore features a unique mix of qualifications that gives it a head start in the impending
boom in Education Technology.
Well-Connected and Well-Positioned
Greater Baltimore benefits from its proximity to Washington, D.C. These two metro areas are often
combined when comparing the technology industry in the region to other economic hubs across the
country. The suburbs between Baltimore and Washington are home to a number of well-educated,
high-tech professionals. Over 100,000 residents of the Maryland/D.C. suburbs commute into
Greater Baltimore for work every day, more than the number of residents that travel to Northern
Virginia for work. The fluid movement of labor in the Baltimore-Washington CSA effectively
extends Greater Baltimore’s potential employment base well into the Washington, D.C. metro area.
Numerous transportation options in Greater Baltimore connect the region internally and to the rest
of the East Coast. BWI, one of America’s fastest growing airports, offers frequent flights around the
country and the world. Amtrak trains travel from Baltimore and Central Maryland to New York in
less than 2.5 hours. The MARC train offers low-cost transportation between Greater Baltimore and
Washington, D.C. The region has a comprehensive interstate highway system, with I-95 passing
directly through Baltimore to connect the major East Coast markets.
Successes
Greater Baltimore has been recognized as an emerging EdTech ecosystem (Wan, 2012). The region
is already home to a number of Education Technology success stories.
Laureate Education, Inc. plans to file an initial public offering (IPO) that is projected to
generate between $500 and $750 million (Kim, 2012) and boasts Former President Bill
Clinton as honorary chancellor (Olivia Oran, 2012).
Connections Education was recently acquired by Pearson, the largest digital content
provider in the industry by number of students reached, for a reported $400 million.
Connections Education operates in 21 states and serves 40,000 students every school year.
Moodlerooms was purchased by Blackboard in 2012.
StraighterLine is expanding from the Emerging Technology Centers incubator to a 6,000
square foot office. The company has raised $10.5 million from investors (Zaleski,
StraighterLine to Allow Professors to Pitch Courses, 2012) and is one of the first to offer
students college credit for their online enrollment.
Common Curriculum is launching as a full product after two successful pilot programs in
Baltimore City public schools. The startup has raised over $160,000 in funding
(FormDs.com, 2012). Teachers across the country have expressed interest in the program
(Zaleski, Common Curriculum Launches, 2012).
Unbound Concepts was selected as one of three Alva Emerging Fellows and will receive
$8,500 in seed grants to execute their proposed project (Glei, 2012). The company will also
be an inaugural member of the AccelerateBaltimore program.
Guaranteach was acquired by Sophia in 2011.
Curiosityville has partnered with National Geographic Kids, The Goddard School for Early
Childhood Development, and The Association of Children’s Museums (eSchool News, 2012).
National Geographic Little Kids has included a Curiosityville page on its website (Zaleski,
Startup Roundup, 2012).
Course Canary launched a pilot program in the spring of 2012 and is currently used at
schools such as Johns Hopkins University and Harvard University (Zaleski, 2012).
Educate, Inc. consists of Sylvan Learning Centers and Educate Online. Sylvan is a pioneer in
personalized education and tutoring, while Educate Online is an online educational
program. The offerings of Educate, Inc. reach Asia and the Middle East.
2Tor, based in Maryland in the neighboring Washington, D.C. metro, was recognized as one
of six fast-growing tech companies by Forbes (Pozin, 2012).
Funding
Many predict an influx of capital into the Education Technology sector because education is primed
for change. The educational system has failed to keep up with the new ways that children are
learning and significant opportunities for startups abound (GSV Advisors, 2012). Capital
investment in education in 2011 surpassed investment in education in 1999, previously the year
with the greatest volume of transactions. Investors rate Education Technology as a very attractive
emerging market (GSV Advisors, 2012).
Funding for the creation of Education Technology companies is available from a number of sources.
Over $368 million in venture capital was awarded to Information Technology services firms
between 2007 and 2012 in the DC/Metroplex region. This investment in IT is equivalent to over
half of all venture capital awarded to companies in the DC/Metroplex area. Most IT venture capital
in the region went to firms in the Software industry, as these companies received 34.2% of all
venture capital awarded. The mean IT services venture capital investment in the DC/Metroplex
region was worth $6.9 million, well above the national average of $6.3 million. One hundred forty-
six technology companies in the Baltimore-Washington corridor received VC investment in 2011,
more than in Los Angeles, Seattle, San Diego, Denver, or Austin. In 2011, investment in those 146
companies totaled $0.98 billion, more than in San Diego, Seattle, Chicaco, Austin, and Denver
(Florida, 2012).
The Maryland Technology Development Corporation (TEDCO) provides grants and loans for
technology companies in the Greater Baltimore area. The Propel Baltimore Fund, created through a
partnership between TEDCO and the Abell Foundation, offers angel investments to startups
(VentureBeat Staff, 2012).
Fifteen of the twenty-five largest charitable foundations in Greater Baltimore support education
(Baltimore Business Journal, 2011). The Abell Foundation, the third largest charitable foundation in
Baltimore, lists “technology-aided education” as one of its areas of interest (The Abell Foundation).
The region is home to the Baltimore Angels, a network of angel investors who focus on technology
startups. The organization is comprised of accomplished entrepreneurs seeking to help other
entrepreneurs advance their businesses and goals (Baltimore Angels, 2012).
Baltimore also has a number of private investors available to entrepreneurs. For example, Sterling
Partners in HarborEast has invested in Educate, Inc. and Laureate Education, Inc., two of the most
successful Education Technology companies founded in the region. Camden Partners, another
private equity firm based in Baltimore, targets the education sector to provide capital to growing
companies.
Talent
The talent pool in Greater Baltimore is the driving force behind the region’s position at the
forefront of the EdTech industry.
The real advantage for Education Technology entrepreneurs in Baltimore is the strength of the
region’s Education industry. Maryland ranks #1 in Education Week’s State Education Rankings.
Maryland is also #1 for percent of seniors passing AP exams. The 2011 graduating classes from
most counties in Greater Baltimore recorded SAT scores at or above the national average, with
some counties scoring well above average. (Maryland State Deartment of Education, 2011).
The best school system in the country is open to innovation and improvement. Many of the best
schools implement new technologies to adjust to the changing needs of the workforce and continue
to provide the best possible education. For instance, Towson University has funded and opened a
digital fabrication lab for student and educational use. Morgan State University has opened a $70
million center for STEM education (Bauer-Wolf, 2012). Forward thinking educators in the region
are concerned with educating students for a rapidly evolving workforce with greater expectations
for technological literacy. Schools and universities in the region have shown a dedication to
educating the next generation of visionaries.
The Baltimore area is filled with people that value education. The region produces some of the
most educated people in the country. Baltimore and neighboring Washington, D.C. both rank in
the top 10 metros nationally for percentage of people with college degrees. Both metros are in the
top 5 for percentage of people holding a graduate or professional degree.
Rank Metro Area %
1 Washington D.C. 48.0%
2 San Francisco 43.9%
3 Boston 43.1%
4 Minneapolis 38.5%
5 Denver 38.4%
6 Seattle 37.1%
7 New York 36.2%
8 Baltimore 35.8%
9 Atlanta 34.5%
10 Chicago 34.2%
US Average 28.5%
2011
Among the 25 Largest US Metro Areas
Percent with Bachelor's Degree
or Higher
Source: Census; American Community
Survey, 2011 1-Year Estimates
Rank Metro Area %
1 Washington D.C. 22.9%
2 Boston 19.0%
3 San Francisco 17.4%
4 Baltimore 15.1%
5 New York 14.9%
United States 10.6%
Source: Census; American Community
Survey, 2011 1-Year Estimates
2011
Among the 25 Largest US Metro Areas
Percent with Graduate or
Professional Degree
The Baltimore-Washington, D.C. corridor is the most densely concentrated region in the country
for Information Technology professionals. The region is second only to the New York CSA for
total number employed in IT occupations.
Information Technology is a growing field for rising professionals of Greater Baltimore: between
2005 and 2010, Greater Baltimore colleges and universities conferred over 24,000 Information
Technology degrees. In 2010, over 17,000 students were enrolled in Information Technology
programs.
Rank CSA LQ
Washington, D.C. MSA 2.78
1 Washington-Baltimore 2.35
2 San Francisco-San Jose 2.26
3 Austin MSA 2.19
4 Seattle 2.08
5 Raleigh-Durham 1.97
6 Denver 1.67
7 Boston 1.65
8 Minneapolis 1.45
Baltimore MSA 1.45
9 Dallas 1.36
10 Atlanta 1.35
11 Sacramento 1.30
12 San Diego MSA 1.26
13 Phoenix MSA 1.17
14 New York 1.13
15 Portland MSA 1.11
16 Detroit 1.03
17 Philadelphia 1.01
US Average 1.00
18 Tampa MSA 0.98
19 Chicago 0.96
20 Los Angeles 0.92
21 Miami MSA 0.77
Source: Economic Alliance assesment using Bureau of
Labor Statistics, Occupational Employment Statistics,
May 2011
Note: CSA data is not available; figures are derived
by adding core MSA components for each CSA.
IT Occupations 2011
Employment Concentration
Rank CSA
IT
Employment
1 New York 319,540
2 Washington-Baltimore 294,900
Washington, D.C. MSA 239,610
3 San Francisco-San Jose 219,260
4 Los Angeles 183,240
5 Boston 164,980
6 Chicago 123,730
7 Dallas 120,120
8 Seattle 115,080
9 Atlanta 93,560
10 Minneapolis 78,990
11 Denver 71,830
12 Detroit 64,230
13 Philadelphia 61,720
14 Phoenix MSA 59,560
Baltimore MSA 54,650
15 Austin MSA 51,790
16 Miami MSA 50,200
17 San Diego MSA 46,700
18 Raleigh-Durham 45,580
19 Sacramento 32,940
20 Portland MSA 32,570
21 Tampa MSA 32,270
Total Employment
IT Occupations 2011
Source: Economic Alliance assesment using Bureau of
Labor Statistics, Occupational Employment Statistics, May
2011
Note: CSA data is not available; figures are derived by
adding core MSA components for each CSA.
The Washington-Baltimore CSA conferred more than 5,300 computer and information sciences
bachelor’s degrees (or higher) in 2005. Both Baltimore and Washington rank among the top 10 US
regions in this category. Two universities ranked among US leaders in research and development
expenditures in computer science are located in Baltimore.
Opportunity
Baltimore has a history of fostering inventive ideas and acting as a test market for new products.
Beta testing is a time-honored tradition in the diverse Baltimore region. Pilot programs launched in
the area reach people of different cultures, socioeconomic levels, geographies, languages, and
educational backgrounds. The varied population makes for a valuable test market, as
innovators have the opportunity to see the value and effectiveness of their product to a number of
market segments. Highly successful pilot programs run in Baltimore include analog cellular,
cellular/PCS, and wireless data service.
EdTech startups can benefit from the schools across the region as well. While some counties excel
in producing prepared graduates, some districts have recognized challenges in maintaining student
engagement and graduating well-qualified students. Educators in these districts are actively
seeking a solution to achieve their goals, and many hope to utilize technology to inspire students.
An EdTech entrepreneur would not only have access to world-class universities and outstanding
public schools, but would also be able to gauge the effectiveness of their product in markets that
most need a new solution to educating youth in addition to making a positive impact on students.
Rank Institution
Dollars,
thousands
1 USC $93,042
2 Carnegie Mellon U $89,094
3 U Illinois $86,282
4 Johns Hopkins U $71,800
5 Georgia Tech $66,248
6 Penn State $56,880
7 U Texas $50,454
8 MIT $46,566
9 U Tennessee $45,602
10 U California $44,769
11 UMD College Park $31,736
Top Universities
R&D Expenditures, Computer Science
2009
Source: Survey of Research and
Development Expenditures at Universities
and Colleges, 2009 (most recent as of
2012), National Science Foundation
US # Degrees
Rank Metro Area Conferred
1 New York 3,953
2 Washington, DC 3,730
3 Chicago 3,067
4 Los Angeles 2,159
5 Atlanta 1,883
6 Boston 1,756
7 Baltimore 1,652
8 Pittsburgh 1,425
9 Philadelphia 1,350
10 Santa Ana-Anaheim 1,218
Source: Atlanta Regional Consortium for
Higher Education 2007 (most recent as of
2012)
Computer and Information
Bachelor's and Higher
2005
Already home to a strong technology cluster, Baltimore offers incubator and accelerator
programs to entrepreneurs looking to start a tech-based business. The Emerging Technology
Center (ETC) is the original incubator in Greater Baltimore and focuses exclusively on technology
startups. Betamore is an incubator and educational facility for technology startups.
AccelerateBaltimore helps entrepreneurs bring their technology to market.
A number of organizations and events in the region encourage Education Technology
innovation and development. The goal of these organizations is to inspire new startups in this
new industry.
The Digital Harbor Foundation (DHF) encourages the adoption of Education Technology through
local and global education initiatives. By fostering a community of innovation and entrepreneurship
in students, DHF seeks to create an ecosystem in which local EdTech startups provide inspiration
for future startups. DHF is also committed to ending digital inequity in an effort to close the
achievement gap and empowering teachers with technology to be leaders in education relevant to
the evolving demands of the modern workforce. As an advocate for the increased use of technology
in the classroom, DHF helps make Greater Baltimore an ideal place to create and to implement new
classroom technology. The EdTech Link program launched by DHF helps teachers learn new
technologies to incorporate into their classrooms and helps to foster relationships between
entrepreneurs and the educators whose problems they are trying to solve. Technology-literate
educators in the region can provide clear insight on changing needs in the classroom to innovators
who want to disrupt the traditional classroom environment.
Education Hack Day is a two-day event where software developers and designers take ideas from
local teachers and administrators and build applications that provide practical solutions for
education-related problems. Final products are demoed and graded, and winners are given help
generating startups. The goal of the competition is not only to solve classroom problems, but to
generate sustainable product companies in Greater Baltimore.
A number of MeetUp groups have been organized around the region have a specific technology and
entrepreneurship focus. Some, like Digital Harbor Foundation’s EdTech Link, look to specifically
encourage a mixture of technology and education.
The Future of Education Technology
Projected Growth
Education expenditures in the US in 2012 reached over $1.43 billion, and are expected to climb to
$1.8 billion in 2017 (GSV, 2012). The US eLearning market, worth $32.5 billion in 2012, is
expected to grow 15% in the next five years to $65.6 billion. This expansion is led by K-12
eLearning, a $5.4 billion market projected to grow 20% to $13.4 billion, and Higher Ed eLearning,
worth $17.4 billion now and a 2017 projected value of $39.8 billion (18% growth rate).
96% of teachers and 92% of parents believe that schools’ integration of technology into teaching
and learning is important to the education of students. 82% of teachers and 71% of parents believe
a greater use of technology would be helpful in connecting learning inside and outside the
classroom. There is substantial opportunity in this growing market moving forward: 96% of
teachers and 86% of parents think technology in the classroom will become more important in the
next ten years than it is now (Hart Research Associates for LEAD Commission, 2012). With the
prevailing notion that technology is indispensable to the education of current and future students,
the EdTech industry will grow to meet the desires of educators and parents.
Trends
The Education Technology industry is pushing all education into an era of unprecedented
personalization (EdSurge). The most exciting change associated with EdTech is adaptive learning.
As students use learning programs, the programs adjust based on student behavior to best tailor
the presentation of information to that specific student’s needs and learning style. The numerous
individualized pathways possible with EdTech have excited teachers since technology was
introduced to the classroom. That interest in reaching, motivating, and educating every student
possible has also invigorated entrepreneurs.
Education Technology will lead a change in schools and push students to solve real-world
problems. By providing a cost-effective means to simulate the world as it is, EdTech gives students
the opportunity to apply knowledge and learning to practical examples. EdTech startups will have
to meet the needs of educators and students inside and outside of the classroom and offer
innovative ways to blur the line between work and schoolwork.
For Greater Baltimore, and the Baltimore-Washington corridor to continue thriving as a technology
innovation hub and a central location for EdTech expansion, two things are necessary. First, the
region needs serial entrepreneurs that choose to reinvest time and money created in previous
successful ventures into new ones. Spin-offs and a reinvestment of resources are important to
creating a sustainable entrepreneurial economy. Fortunately, Baltimore has seen a recent
emergence of serial entrepreneurs and re-investors. This first wave of entrepreneurs dedicated to
innovation spurs the second great need of the region being a healthy startup ecosystem. Greater
Baltimore is seeing this ecosystem in its earliest stages begin to develop along with its serial
entrepreneurs. As these two connected and important pieces to a strong technology market further
materialize, EdTech and the technology industry in Greater Baltimore will continue to grow and
prosper.
Position of the Economic Alliance
The Economic Alliance of Greater Baltimore (EAGB) recognizes the need to shift to new education
standards in the face of changing industry needs. As the workplace becomes increasingly reliant on
science, technology, engineering, and mathematics disciplines for success in the New Economy, it is
imperative that the Greater Baltimore region provides its future innovators with relevant tools and
abilities to prosper.
To fulfill its mission to facilitate growth and foster economic development, EAGB is in support of the
growth of education technology both as a teaching instrument and a productive industry. Examples
of our commitment to Education Technology include:
Event and program sponsorship, internship referrals and professional staff support of
Digital Harbor High School and the Digital Harbor Foundation. This innovative,
technology-focused high school in Baltimore City prepares students for college through
rigorous English, mathematics, science, social studies, world and classical languages, health,
physical education, fine arts and technology curriculum;
Sponsorship and marketing for Betamore. This new technology accelerator project in
Baltimore City, including office and classroom space, was leased by serial technology
investors and entrepreneurs to stimulate the growth of technology-based startup
companies through business collaboration, incubation and mentorship programming.
Betamore also offers education and training programs to the community in an effort to
bridge the gap between the offerings of a traditional liberal arts education and the skills for
the twenty-first century jobs being created throughout the Baltimore region;
Hosting an executive mission to New York City. EAGB hosted a delegation of seventeen
regional executives and higher education leaders to learn more about education technology
and ecosystem development initiatives taking place in New York’s thriving innovation
community. Strategic visits were arranged with major employers, venture capitalists, local
government and education officials, leading entrepreneurs and growth companies;
Leading an effort to enhance awareness and opportunities with a Baltimore Regional
Education Technology Initiative. In October 2012, EAGB issued a report showcasing
Greater Baltimore as a hub for the developing education technology industry, where a
combination of learning, collaboration and innovation-based business creation services are
offered across a variety of technology-related disciplines; and,
Commissioning a study by Battelle Technology Practice to discern the educational and
workforce development needs of Aberdeen Proving Ground (APG) from the higher
education community. EAGB was awarded U.S. OEA funding to help complete the study,
entitled Accelerating Talent Development and Research & Development Partnerships at
Aberdeen Proving Ground. Particular focus will be paid to R&D partnership opportunities,
current and future workforce skills development, and value to establish a business case for
location of State and/or private University programs and resources in the APG community.
Education technology is important to the future of Greater Baltimore and the United States. EAGB
supports and promotes the growth of education technology in the classroom and amongst the
development, innovation and entrepreneurial communities.
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