Mary Jo Waits

National Governors Association

Director, Economic Development, Human Services, and Workforce Development

GLOBAL 1000: Meet|Partner|Deal

State Innovation and Entrepreneurship Initiatives

“ALL-Hands-On-Deck” to Boost State Economic Growth • Growth will need to accelerate sharply to undo the

damage caused by one of the worst recessions in modern times

• America gradually losing its pre-eminent position in innovation

• Mature industries needing to upgrade to realize growth potential

• Widespread abandonment of properties occurring in states and cities

• Education producing too many workers who have low skills, poor skills, or the wrong skills

Where Does Growth Come From?Where Does Growth Come From?Six Factors to Consider in Designing Policy and InvestmentSix Factors to Consider in Designing Policy and Investment

Strategic Framework for Policy Decisions and Investment

Diversity

Application

Interaction

Expertise

Innovation

Focus on the Four Components of Innovation

Strategic Framework for Policy Decisions and Investments

• Build Expertise: strong research capabilities and world-class talent in strategic areas.

• Facilitate Interaction: collaboration among universities and others, strong networks, shared research facilities and compact geographical areas.

• Link diverse knowledge fields and industry sectors together: multidisciplinary institutions, well-designed research facilities, and mixed-use research parks to ensure that creative “sparks fly.”

• Push the application of technology and commercialization of research: university-industry partnerships, open IP policies and faculty tenure changes, and priority on entrepreneurship.

Building Expertise

• Unique Institutions that attract and support the people with the talent and foresight to create new ideas, CA Institutes for Science and Innovation, Colorado Clean Energy Collaborator, Arizona Bioscience Roadmap

• State-sponsored Research Funds: CA, GA,TX, NJ, NY, MI, AZ, OH, OK , VA, WA, MD, KS

– Build upon priorities of local industries: Re-enforce existing innovation clusters as well as developing new cluster

– Emphasize applied research rather than basic research (proof of relevance and market pull)

– Seed research that helps solve local problems (better health outcomes, economic transformation, tariff congestion)

– Align university priorities with economic development goals

• Research Talent: Lilly Endowment’s $100 M for “intellectual capital,” Georgia Research Alliance’s 100 Eminent Scholars, Kentucky “Bucks for Brains” $120 M in 1998, 2000 and 2005; Utah Science Technology & Research (USTAR) world-class research teams in 6 strategic areas, including nanotechnology, imaging technology, biomedical technology

Building Expertise• Workers and Skills: Goals for higher education to meet STEM job needs;

Credentials and Degrees for Veterans; Washington’s 10 Centers of Excellence, each located at a community or technical college; Apprenticeship Carolina (SC) $1M plus annual employer tax credits of $1,000 per apprentice has more than doubled the number

• New Fields and Young Talent: ASU’s new master’s in genomics and biotech law; State University of New York, College of Nanoscale Science and Engineering, a global first, and center of excellence in nanoelectronics; Indiana’s Polytechnic Institute Applied Bachelor Degree in 3-5 years starting in 11th grade; research funds marked for young investigators

• High-Growth Firms: Nebraska, Tennessee, Michigan, Pennsylvania and others emphasize finding and providing services to companies with high growth potential; Kansas PIPELINE Entrepreneurial Fellows; NE partnership with Gallup to identify/strengthen entrepreneurs’ talents and “high-growth” strategies

• Entrepreneurial Immigrants: Midwestern cities (Chicago, St Louis, Dayton and Detroit) efforts to jumpstart growth by attracting entrepreneurial immigrants. MI visa plan to bring 50,000 immigrants with advanced or exceptional abilities in science, business or the arts

Facilitating Interaction and Collaboration• Networks: dense localized networks of trust, reciprocity and cooperation

associated with robust innovation clusters—UCSD CONNECT “Meet the Researcher”; BIOCOM; Bay Area Science and Innovation Consortium (BASIC)

• Mega-Partnerships: Georgia Cancer Coalition, CITRIS combines 4 CA universities—Berkley, Davis, Merced, Santa Cruz; CU-ICAR—Clemson University and BMW, Michelin and others partner for education and research; PA Nanotechnology Institute: 12 research institutions with over 4,000 researchers and $1 B of research; Commonwealth Center for Advanced Manufacturing (CCAM) to align research and education with industry needs/global standards

• Innovation Vouchers: spur collaboration between SMEs and universities and others to encourage SMEs to take up regular R&D and innovation activities, CT and Iowa, Netherlands model

Facilitating Interaction and Collaboration

• Shared Facilities: MA’s High Performance Computing Center—state, 5 universities and companies; ASU’s supercomputer and engineering school moves to main street Tempe; test sites such as Verizon’s Innovation Center in Waltham, MA offers space, troubleshooting, and certification tools to partner companies creating advanced 4GLTE network applications, such as Ericsson, Cisco and Samsung

• Innovation Hubs or Districts: Atlanta’s Technology Square, San Diego Torrey Pines, Research Triangle Park, PA’s Keystone Innovation Zone, WA’s Innovation Partnership Zones, Ohio Innovation Hubs; CA Institute for Quantitative Biosciences (QB3) San Francisco’s Mission Bay

• New Institutions/Intermediaries: “Institutes of Collaboration” or Smart Agents—Oregon Nanoscience and Microtechnologies Institute (ONAMI), QB3, MA’s Life Sciences Center, Science Foundation Arizona (SFAz)

• AZ Biodesign Institute co-locates researchers from 3 fields designed for interaction, NC State Centennial Research Park, ASU SkySong-China, Georgia Tech-Korea Institute for Advancement of Technology

• Incentives (R&D funds, new colleges) to encourage cross-disciplinary research and interaction--University of Akron & P&G Bioinnovation Institute, linking materials science with biomedicine to become #1 in biomaterials and orthopedic research

• Right brain and left brain— Designers and Engineers (new ASU degree)

• Entrepreneurship across the university and particularly in S&T colleges

• Entrepreneurial “boot camps”—New England Clean Energy Council’s Clean Energy Fellowship Program, UCDavis

• Charismatic, Collaborative scientists and researchers; Silo, Solo is Passé

Putng Diverse Knowledge Fields and Cultures Together

Pushing Commercialization/Entrepreneurs • University-industry Partnerships, Industry and Peer Review —that force

an outside look (e.g., venture capitalists, out-of-state reviewers) Washington Life Sciences Discovery Fund; Science Foundation Arizona; Utah Science Technology and Research (USTAR) “small-light-fast money” for startups and researchers

• New Model for Entrepreneurial Training: AZ, Utah etc. use Steve Blank’s Lean-Start-Up Model; NSF’s Innovation Corps improving success with SBIR/SBTT funds; Jobs4TN Regional Accelerators competitive grants to create business accelerators in each of 9 Tennessee regions

• Update Patent, IP, Tenure Policies—master agreements to fit open-innovation business model, reward faculty entrepreneurs

• Regulations and Procurement— public sector procurement for green technologies, energy efficiencies, e.g., 22 state MOU to purchase natural gas vehicles; Michigan multi-year initiative focused on business-to-business procurement opportunities

• Venture Financing—Oregon, Maryland, Connecticut; United States Treasury Department’s $1.5 billion State Small Business Credit Initiative (SSBCI); MassChallenge; Arizona Innovation Challenge

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Who Coordinates Key Elements of an Innovation Ecosystem?

Key Elements of Innovation Ecosystems

Leaders who proactively find and nurture connections across the boundaries and know who to connect with whom. Companies and entrepreneurs need one point of contact that will connect them with all the diverse resources they need.

Speed and Flexibility in working with industry. For this reason, non-profit organizations that operate outside of the university/government orbit may be needed, but they must excel at bringing together the resources of several universities.

Industry Focus that allows innovation to be strategically targeted at sectors that are promising to the state or region. However, there is also a balancing act between being sector-focused and bringing together research and companies from different disciplines and industries.

Space That Crosses traditional academic boundaries so that innovation results from different disciplines working together. Shared research facilities push researchers, entrepreneurs and industries beyond their specializations and allow for discoveries at the boundaries of disciplines.

These Organizations Require Experiments are Bubbling Up in States—with common characteristics

Oregon: Intermediaries to Bootstrap Innovation Ecosystems

“ONAMI has emerged as a microcosm of a complete innovation strategy for a single technology area.”

--Shelia Martin, Portland State University

Oregon Nanoscience and Microtechnologies Institute

• Fostering R&D capacity among Oregon’s four research universities, the Pacific Northwest Laboratory, and the state’s “Silicon Forest” high-technology industry cluster (250 researcher in 5 institutions)

• Invests in a number of programs to develop expertise, encourage interaction, and drive commercialization: match for large-scale collaborations in research, workforce development, and equipment purchases

• “High-tech extension services”—200 companies of all sizes on fee-for-services basis

Virginia: Advanced Manufacturing Innovation Zone

INDUSTRY OWNED INDUSTRY OWNED AND OPERATEDAND OPERATED

UNIVERSITY DRIVENUNIVERSITY DRIVENINDUSTRY DRIVENINDUSTRY DRIVEN

INDUSTRY / COMMUNITY INDUSTRY / COMMUNITY COLLEGE DRIVENCOLLEGE DRIVEN

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Virginia Center for Advanced Manufacturing

• Bridge the gap between fundamental research and commercialization

– Accelerate technology into markets

– Demonstrate on real problems

• Foster collaboration among diverse industry sectors

– Directed Research for the exclusive proprietary benefit of a member

– Generic Research for the benefit of all members

• Lower R&D costs for member companies

– Shared facilities and personnel

– Shared pre-competitive research

• Train next generation of technology leaders

– Provide market ready experience

– Connect industry with students16

Washington’s 15 Innovation Partnership Zones

⑮ Walla Walla Wine and Hospitality, Water Management, Alternative Energy

Walla Walla Community College in Washington state earns the rare distncton of being an insttuton of higher educaton that is reinventng the regional economy from the bottom up.

National Journal When Ordinary Americans Accomplish What the Government Can't

June 13, 2013

The Natonal Journal names Walla Walla Community College one of the top 50 innovators in the U.S. and one of four fnalists in the Regional Economic Strategies category.

A High Value-Added Industry

When processed, 300 acres of wine grapes generates the same revenue as 20,000 acres of 100 bushel/acre wheat.

Wine production contributes $5 billion to Washington's economy (Washington Wine Commission 2012).

Wine production in Walla Walla County contributes over $500 million to the local economy (Washington Wine Commission 2012).

Tourism is anticipated to produce more revenue than wine production. A wine tourist spends approximately 2.5 times as much as the average tourist at their destination.

Walla Walla Vision: Wine / Food / Art

WWCC Center for Enology & ViticultureCenter of Innovation for the Wine Industry

2006 Governor’s Workforce and Economic Development Best Practice Award

WWCC Enology StudentsLearning While Creating College Cellars Wine

ETS Laboratories is the leading independent laboratory serving the global wine industry today. ETS is unique in its ability to ofer wineries a combination of routine analytical services and proprietary, accredited analytical methods. These tools assist wineries in the consistent production of better wines. ETS is accredited to ISO Guide 17025 standards by the American Association for Laboratory Accreditation (A2LA), and is the nation's only independent wine laboratory so designated.

Port of Walla WallaWine Incubators

“Wine Expo Draws Buyers FromAround World to Walla Walla”

Source: Walla Walla Union Bulletin, May 11, 2006

Projected IPZ EmploymentWith and Without the Wine Cluster

_____With _____Without _ _ _ _ 2006 Projections

WWCC Water & Environmental CenterCenter of Innovation for Water and Environment

2010 Governor’s Workforce and Economic DevelopmentBest Practice Award

&2011 Columbia River Inter-Tribal Fish Commission Leadership

Award

Enhancing the Energy Cluster in Southeastern Washington

California’s Institutes for Science and Innovation

Source: Regis Kelly, QB3

Source: Regis Kelly, QB3

QB3 in San Francisco’s Mission Bay

QB3: A Vision of Success Through Collaboration

Source: Regis Kelly, QB3

Mission: Discover, Develop, Deploy to Marketas quickly as possible

Source: Regis Kelly, QB3

QB3 in San Francisco’s Mission Bay

Source: Regis Kelly, QB3

And Revitalizing Abandoned Spaces and Communities

Reinventing Downtown Phoenix “Eds and Meds” Anchor an Innovation HubDowntown Phoenix

Seven Priority Themes•Knowledge Anchors•Downtown Living•Great Neighborhoods•Arts and Cultural Hub•Distinctive Shopping•Great Places/Great Spaces•The Connected Oasis

2004 Vision

ASU Downtown Phoenix20 acre mixed-use campus, 15,000 students, 4,000 student housing, $223 M investment

Phoenix Biomedical Campus28 acres land, $51 M for facility for TGEN headquarters, $7.5 M bond funds for projects

Reinventing Downtown PhoenixReinventing Downtown Phoenix