The Foundation for Job Creation — JobCreation.us
The idea behind the Foundation

The prototype lab

Tradespeople invent constantly. Almost none of it ever becomes anything — and the reason is rarely the idea.

An invention, and what happened to it

Years before the Foundation, the founder developed a system called MagKinetics — a way of generating electricity from the magnetic attraction between moving vehicles and a magnetized rotor. Traffic goes past; the road makes power. A patent application was filed in 2006.

The application was allowed. Then the allowance was withdrawn. No patent was ever granted.

Contesting that withdrawal meant going to court, and going to court meant money that wasn't there. So the idea stopped — not because it was wrong, and not because it lost on the merits, but because the person holding it couldn't afford the next step.

That is the ordinary way a working person's idea dies. Not in a lab and not in the market — in a filing cabinet, for want of a few thousand dollars and somebody who knows the process.

Interview by Daniel Cox, formerly deputy editor in chief at Variety

The prototype lab, discussed

Why tradespeople invent constantly and almost none of it ever gets built.

Why a lab

Anyone who has spent a career on roofs or job sites has watched a guy rig something on a Tuesday that solves a problem the manufacturers never solved. Almost none of it becomes anything. There is no shop to build a real version, no money for a patent attorney, and nobody to explain what a provisional application is or what happens after you file one.

So part of the original vision was a prototype lab: a place where somebody with an idea and calluses could build a working version of it, get it protected, and put it in front of people who buy things — instead of describing it in a bar for twenty years.

What the IRS said

The IRS approved the education mission. It did not approve the lab. The reasoning is straightforward and, honestly, defensible: a tax-exempt charity generally cannot spend charitable money developing inventions that end up privately owned by individuals. The public subsidizes the nonprofit, so the public can't then hand the upside to one person.

We accepted the ruling. We did not stop believing in the idea.

Then Washington built them

Here is the part that still stings.

In March 2012 — three years after a small New Jersey nonprofit was told it could not have a prototype lab — President Obama announced a plan to invest $1 billion in a national network of up to fifteen manufacturing innovation institutes: regional hubs to help move ideas out of the lab and into production. The pilot opened in Youngstown, Ohio that August with $30 million in federal money matched by $40 million from its consortium. The program grew into Manufacturing USA, sixteen institutes across the country.

Same idea. Bridge the gap between somebody's working concept and something that actually gets made. Different scale, and a completely different door.

Three years

Sit with the timing.

The Foundation's exemption took effect in March 2009. The plan was announced in March 2012. Three years, to the month — and the pilot institute didn't open its doors until that August.

Those were the three years of the worst job losses since the Depression. Unemployment hit ten percent. Crews that had worked together for twenty years came apart. Whole trades emptied out and never refilled.

That is how long it takes to build consensus in Washington, run the interagency process, and hold a competitive award. It is a reasonable pace for government. It is not a reasonable pace for a laid-off crew.

Meanwhile there was a nonprofit, already approved, already funded out of one man's pocket, saying the same thing in plain language: give working people a place to build their ideas and they will build their own way out.

Nobody had to wait three years for that. It was sitting right there.

We are not claiming the IRS treated us unfairly compared to the federal government — those are different bodies under different rules. Charity law asks whether tax-exempt money ends up in private hands. Federal industrial policy asks whether the country can still make things. Both answers can be correct at once.

But the effect is worth saying out loud: the country decided prototyping infrastructure was worth a billion dollars, and the people who most need it — tradespeople with an idea and no capital — still have nowhere to go.

It works when somebody builds it

Chicago's mHUB is proof the model isn't fantasy — a serious prototyping facility where people with ideas get real equipment and real guidance, at scale, with a city behind it. What's missing in most places isn't the concept. It's that nobody built one where the tradespeople are.

What we can do inside the rules

Education. Teaching a tradesperson how to develop an idea, how the patent process actually works, what a filing costs and what it protects, and how to pitch it to someone who can make it. That sits squarely within an educational mission — and it is the piece that would have changed the MagKinetics outcome.

We're calling it The Bench, an extension of RooferSchool, teaching the part nobody teaches. It is the closest thing to the original lab that the law allows, and it may turn out to be the more useful half. A shop builds one prototype. Knowing the process builds every one after it.