NGA – Eastern Regional Competitiveness Forum

June 7, 2002 8:30 am – 10:00 am

New Economy Linkages….

Define it……..

What is the New Economy?

Industry ClustersIndustry Clusters

2/3 – Local Clusters Local firms that serve local

customers Average Wage - $26K

1/3 – Trading Clusters Average Wage - $42 K This is where Innovation is This is where Growth can

occur This is where Wealth is

created

How does one How does one proceed ?proceed ?

How does one How does one proceed ?proceed ?

Kentucky Innovation

Regions

Kentucky Innovation

Regions

Fulton

Hickman

Carlisle

Graves

Ballard

McCracken

Calloway

Marshall

Livingston

Clay

Harlan

Knox

Whitley

Letcher

Pike

Floyd

Knott

LeslieLaurel

McC

rear

yWayne

Pulaski

Roc

kcas

tle

Jackson

Russell

Casey

Lincoln

BoyleGarrard

Martin

Johnson

Magoffin

Lawrence

Boy

d

Carter

Elliott

Morgan

Rowan

Wolfe

BreathittLee

Owsley

Perry

Menifee

BathMont-

gomery

Powell

Estill

GreenupLewis

Fleming

MasonRobert-

son

Brack

en

Harrison

Nicholas

Pendle-ton

Bourbon

Campbell

Kenton

Grant

Boone

Gallatin

Trimble

Carroll

Owen

HenryOldham

Shelby

Frank

linScott

Clark

Fayette

Jessa-mine

Madison

Wo

odford

Ander-

son

MercerWashing-

ton

Spencer

Nelson

Jefferson

BullittMeade

Hardin

Hancock Breckinridge

LarueMarion

Taylor

GreenHart

Adair

Clinton

Cum

berlandMonroeAllen

Barren

Metcalfe

Warren

Simpson

Logan

Grayson

Edmon-son

Butler

Ohio

Daviess

McLean

Muhlen-berg

Hopkins

Webster

Henderson

Union

Critten-den

Cald-well

Lyon Christian

TriggTodd

Bell

CincinnatiCincinnati

St. LouisSt. Louis

NashvilleNashville

South CentralSouth Central

North CentralNorth Central

EasternEasternWesternWestern

Key Elements of the Strategic Plan

Key Elements of the Strategic Plan

Commercialization

R & D

Workforce

R & D

• University

• Corporate

• Federal Laboratories

R&D

R&D Funding GoalsR&D Funding Goals

The University of Kentucky and the University of

Louisville will increase federal and other extramural (non-

institutional) annual research expenditures

from $173 million in 2000 to $500 million by 2010

and to $1 billion by 2020.

Technology Clusters

• Human Health and Development

• Biosciences

• Information Technology & Communications

• Environmental & Energy Technologies

• Materials Science & Advanced Manufacturing

Opportunity Areas

Opportunity AreasKentucky Center for

Natural Products

Center for Cardiac Assist Devices

Kentucky First

Kentucky Visioning Center

Energy and Environmental Consortium

Rural Business Building Initiative

Safety and Security

Industry Cluster Industry Cluster FormationFormation

Technology Clusters

I. Human Health and Development

II. Biosciences

III. Information Technology and Communications

IV. Environmental and Energy Technologies

V. Materials Science and Advanced Manufacturing

Opportunities

1. Natural Products Center

2. Center for the Development of Circulatory Assist Devices

3. Kentucky First

4. Kentucky Visioning Center

5. Kentucky Energy and Environmental Consortium

6. Safety and Security

7. Rural New Economy Business Building Initiative

NewEconomyIndustryClusters

EmpoweringKentucky

• $11.2 to $32.6 billion in increased economic output

• $3 to $10.1 billion in increased household earnings

• 73,000 to 317,000 additional jobs

The value to Kentucky’s economy of using domestic reserves of coal to generate electricity in the year 2010 will be between:

Commercialization

Commercialization

• ICC’s

–Satellites

• IT Resource Network

• Venture Capital

Executive Director provides support services

Northern Kentucky

The Kentucky Innovation The Kentucky Innovation and Commercialization and Commercialization

Center (ICC) ModelCenter (ICC) Model

Louisville Lexington

Central

Eastern Western

Commonwealth Seed Capital LLC

Commonwealth Seed Capital FundState Investment

$10 million

Private Venture

Capital Firm

Statewide Investment

Group

Private Venture Capital

Firm

Statewide Fund

$6 million

Eastern Region

$500,000

Western Region

$500,000

South Central Region

$500,000

Life Science Fund

$2.5 million

Human Capital

WorkforceWorkforce

Role Models Program

“Kentucky can win at other things besides basketball.” --Lee Todd, President, University of Kentucky

Governor’s Young Entrepreneurs Competition

Scholarships to attend Ernst and Young Entrepreneur of the Year Award

Assessing Kentucky’s High-Tech Infrastructure

Assessing Kentucky’s High-Tech Infrastructure

Statewide assessment of Kentucky’s network infrastructure, access, and usage.

Connect entucky

Policy

Bringing the New Economy to

Existing Kentucky Businesses

Bringing the New Economy to

Existing Kentucky Businesses

Manufacturing Modernization Initiative

IT Resource Center services

Center for Information Technology Enterprise, Inc.

Monitoring Return on Investment

• Kentucky must work smarter

• Kentucky must deploy its resources strategically so that it maximizes return on investment.