The agency, which operates incubators on O'ahu and Maui, also plans to offer entrepreneurial classes for a fee as it tries to take a more active role helping Hawai'i's fledgling technology industry grow despite budget cuts.

The announcements were made by HTDC Executive Director Phil Bossert during a luncheon sponsored by the Hawaii Venture Capital Association. Bossert said the goal is to increase the profile and effectiveness of HTDC, which primarily runs business incubators and provides courses in how to obtain federal research money.

The new strategy comes after a survey of about 100 Hawai'i technology companies last year found that few knew what HTDC did, Bossert said.

"It is an attempt to answer the question what does HTDC do, and to do more," he said. "We're trying to take a larger role and trying to bring more federal funding into the state to support technology."

HTDC also plans to partner with other economic development-related groups, including the University of Hawai'i-Hilo, to run its small-business incubator, which is expected to open by year's end. UH-Hilo is spending $3 million on the project, jointly financed by state sources and the federal Economic Development Administration. The building was donated to UH-Hilo by Bank of Hawaii in 1999.

Under terms of its Hilo agreement, HTDC will receive a fee to market and lease the facility with the potential to earn more based on the number of clients brought into the incubator. The facility will be augmented in the spring as HTDC starts marketing unused space at the Natural Energy Laboratory of Hawai'i Authority. The authority runs an ocean science and technology park in Kona.

HTDC said it also has started a so-called "virtual incubator" program to give startups access to facilities such as meeting rooms and services such as lawyers, accountants, marketing and human resources at reduced fees. Enrollment costs $100 a month.

The expansion of services comes as HTDC plans for a $260,000 cut over the next two years from its fiscal 2003 budget of $1.3 million.