The World’s Largest Science and
       Innovation Park

                               Presentation for:
         Seattle ...
Great Recession
Global Job Trends




US trailing major economies
      in restoring jobs



Source: Organization for Economic Cooperation...
Geography of WA Unemployment (May NSA)
Path to Recovery
Anticipated recovery time by revenue size
                                                (in millions)




Source: 2010 M...
The key to economic recovery
                                                                     2000s
There is no better...
Innovation Drives Economic Growth
• The societal rates of return to R&D are between
  two to four times private returns.

...
Actually we’re No. 6
           40 countries/regions
           16 Indicators
           Economic Structure
           ...
Overall Score
     Overall Score
80
70
60
50
40
30
20
10
 0



                                12
Decade Trend: The U.S. is Behind….
•   1. China             15. Latvia     28. UK
•   2. Singapore         16. Austria    ...
Average annual growth of R&D expenditures : 1996–2007




EU = European Union
Researchers in selected regions/countries/economies: 1995–2007




NOTES: U.S. data for 2007 estimated based on 2004–06 gr...
Market shares of computer and office machinery manufacturing: 1995–2007




           NOTES: EU = European Union. Asia-9 ...
Trade balance in high-technology goods 1995–2008




   NOTES: Asia-9 includes India, Indonesia, Malaysia, Philippines, So...
Plan for Washington
Washington: A History of
        Innovation
                        Commercial
                        Airplanes




COSTCO
States and regions can be powerful
    players in the innovation economy
• States, regions and smaller nations are:
  – La...
Geography of Knowledge Based Industries 2007                        Total
                                                ...
A New Innovation Growth Curve

                       We are here
PROSPERITY




               TIME
A Ten Year Vision
                   We should not fear to lead


 Make Washington State the most
attractive, creative and...
Entrepreneurs would appreciate this challenge.
The risks inherent to starting a thriving business
in today’s troubled wate...
Innovation Policy Framework
        Talent
                                      Education

                              ...
New Model for Economic Development
        Traditional Model                Innovation Driven Model
Attract and retain com...
Four Critical
 Challenges
Talent Challenge




                   28
Parents disagree about skills to drive
             innovation




             Newsweek-Intel Global Innovation Survey Se...
Investment Challenge
                   Transforming ideas
                   Into applications
                          ...
Infrastructure Challenge
Beyond Oil?




          Post “ICE” Age?
              Internal Combustion Engine



           ...
Export Challenge
Washington’s exports to Asia – per capita goods
                              exports, 2000-2008
             1,400

     ...
Washington
Innovation Ecosystem
Innovation Model is Shifting

    Linear Model             Collaborative Model

                                       Edu...
Innovation Ecosystems Evolve
                                                                             Innovation Ecosy...
Source: Washington Technology Industry Association (WTIA)
http://wtia.micromaps.com/
Emergent Innovation Ecosystems
                   (illustrative portfolio)

  SMART GRID/                                 ...
Marine
                        Agriculture,    World’s Largest Innovation Park
         Food           Composites
        ...
Extending the Innovation Ecosystem
PNWER GDP and Population
If PNWER were a separate country, it           PNWER Region (GDP/Pop.)
    would rank 13th in tot...
WEDC Strategy Timeline
                                   Apr 28
Preliminary Policy
     Priorities
                      ...
43
Egils milbergs 1 5 final  seattle chamber of commerce july 13 2010
Egils milbergs 1 5 final  seattle chamber of commerce july 13 2010
Egils milbergs 1 5 final  seattle chamber of commerce july 13 2010
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Egils milbergs 1 5 final seattle chamber of commerce july 13 2010

  1. 1. The World’s Largest Science and Innovation Park Presentation for: Seattle Chamber of Commerce Egils Milbergs Executive Director Washington Economic Development Commission July 13, 2010
  2. 2. Great Recession
  3. 3. Global Job Trends US trailing major economies in restoring jobs Source: Organization for Economic Cooperation and Brazil and Chile have seen Development and the International Labor Organization. strongest job growth. Asian economies bounce back
  4. 4. Geography of WA Unemployment (May NSA)
  5. 5. Path to Recovery
  6. 6. Anticipated recovery time by revenue size (in millions) Source: 2010 Manufacturing and Wholesale Distributions National Survey
  7. 7. The key to economic recovery 2000s There is no better time like Advantage is Innovation a downturn to innovate. Strategy is “Make something new” 1980s & 1990s Advantage is Quality Strategy is 1960s & 1970s “Make it Better” Advantage is Cost Over half of Fortune 500 and just under half of Strategy is 2008 Inc. list began during a recession or bear “Make it Cheaper” market. Dane Stangler, Kauffman Foundation
  8. 8. Innovation Drives Economic Growth • The societal rates of return to R&D are between two to four times private returns. • At least 2/3 of the increase in per-capita GDP is from innovation. • Jobs in technology industries pay approximately 70 percent more than other jobs. • Innovation is the key source of competitive advantage against low-wage nations. 10
  9. 9. Actually we’re No. 6  40 countries/regions  16 Indicators  Economic Structure • Human capital (college education; researchers) • Innovation capacity (corporate R&D; government R&D; scientific publications) • Entrepreneurship (new firms; venture capital) • IT infrastructure (e-government; corporate investment; broadband)  Economic Policy (corp. tax; ease of doing business)  Economic Performance (trade balance, FDI, GDP per worker, productivity)
  10. 10. Overall Score Overall Score 80 70 60 50 40 30 20 10 0 12
  11. 11. Decade Trend: The U.S. is Behind…. • 1. China 15. Latvia 28. UK • 2. Singapore 16. Austria 29. EU-15 • 3. Estonia 17. S. Korea 30. Mexico • 4. Denmark 18. Ireland 31. Netherlands • 5. Luxembourg 19. EU-10 32. Australia • 6. Slovenia 20. Spain 33. Finland • 7. Russia 21. Sweden 34. Canada • 8. Lithuania 22. France 35. Germany • 9. Cyprus 23. Portugal 36. Italy • 10. Japan 24. Malta 37. NAFTA • 11. Hungary 25. Belgium 38. Greece • 12. Slovakia 26. EU-25 39. Brazil • 13. Czech Republic 27. Poland 40. United States • 14. India 13
  12. 12. Average annual growth of R&D expenditures : 1996–2007 EU = European Union
  13. 13. Researchers in selected regions/countries/economies: 1995–2007 NOTES: U.S. data for 2007 estimated based on 2004–06 growth rate. EU includes all 27 member states. EU = European Union; FTE = full-time equivalent Source: NSF Science and Engineering Indicators 2010
  14. 14. Market shares of computer and office machinery manufacturing: 1995–2007 NOTES: EU = European Union. Asia-9 includes India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. China includes Hong Kong. EU excludes Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Slovenia. Source: NSF Science and Engineering Indicators 2010
  15. 15. Trade balance in high-technology goods 1995–2008 NOTES: Asia-9 includes India, Indonesia, Malaysia, Philippines, South Korea, Singapore, Taiwan, Thailand, and Vietnam. China includes Hong Kong. EU excludes Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Slovenia. Source: NSF Science and Engineering Indicators 2010
  16. 16. Plan for Washington
  17. 17. Washington: A History of Innovation Commercial Airplanes COSTCO
  18. 18. States and regions can be powerful players in the innovation economy • States, regions and smaller nations are: – Large enough to: • create intellectual capital • build innovation ecosystem(s) • connect globally • respond to innovation opportunities – Small enough for: • shared vision and achievable outcomes • trusted personal relationships • effective governance
  19. 19. Geography of Knowledge Based Industries 2007 Total Metro Area Milken Institute Rank Score San Jose – 1 Sunnyvale-Santa 100.0 Clara, CA Seattle-Bellevue- 2 Everett, WA 46.4 Cambridge-Newton- 3 Framingham, MA 45.2 Washington- Arlington- 4 Alexandria, DC-VA- 41.8 MD-WV Los Angeles – Long 5 Beach – Glendale, 40.2 CA Dallas – Plano - 6 Irving, TX 21.8 San Diego – Carlsbad 7 – San Marcos, CA 19.3 Santa Ana – 8 Anaheim-Irvine, CA 17.7 New York – White 9 Plains – Wayne, NY- 16.8 NJ San Francisco – San 10 Mateo-Redwood 16.1 City, CA
  20. 20. A New Innovation Growth Curve We are here PROSPERITY TIME
  21. 21. A Ten Year Vision We should not fear to lead Make Washington State the most attractive, creative and fertile investment environment for innovation in the world. …, we can’t rest on our laurels, so We must look over the horizon and let’s commit today to grooming a prepare for the new economy that workforce and leaders who are will emerge when this recession agile, creative, and embrace passes. innovation. Commerce Secretary Gary Locke Gov. Chris Gregoire March 18, 2009 March 10, 2009 23
  22. 22. Entrepreneurs would appreciate this challenge. The risks inherent to starting a thriving business in today’s troubled waters are immense, but the rewards have never been greater.
  23. 23. Innovation Policy Framework Talent Education Research Workforce Growth Investment Skills Employment Entrepreneurship Business Entrepre neurs Prosperity GSH Innovation Ecosystem Quality of Life Associations Competitiveness Capital Non- Infrastructure Gov’t Profits Innovation Innovation Ecosystem Innovation Drivers Outcomes
  24. 24. New Model for Economic Development Traditional Model Innovation Driven Model Attract and retain companies Invest in talent, ideas and infrastructure Jobs Quality of jobs, per capita incomes Lowest cost of business inputs Higher value inputs, increasing productivity and outcomes Top down economic development Bottom-up and organic growth Competing regions: zero sum game Collaborating regions: value creation Closed linear innovation system Open innovation ecosystem Single disciplines, functions Multiple disciplines, integration Locally linked clusters Globally linked clusters Strategize Organize Operationize
  25. 25. Four Critical Challenges
  26. 26. Talent Challenge 28
  27. 27. Parents disagree about skills to drive innovation Newsweek-Intel Global Innovation Survey Sept -Oct 4,800 adults
  28. 28. Investment Challenge Transforming ideas Into applications Creating business models Researchers and entrepreneurs create new ideas No capital No capital Firm creation Dead and innovation ideas success Dead firms Double “Valley of Death” Graphic concept adapted from Egils Milbergs Dr. Charles Wessner, National Academies 30
  29. 29. Infrastructure Challenge Beyond Oil? Post “ICE” Age? Internal Combustion Engine 31
  30. 30. Export Challenge
  31. 31. Washington’s exports to Asia – per capita goods exports, 2000-2008 1,400 1,200 1,000 US Dollars 800 China 600 1,151 Asia NICs* 827 891 400 655 200 365 304 0 2000 2004 2008 Data source: www.wisertrade.org *Newly industrialized countries: Hong Kong, Republic of Korea, Singapore, and China (Taiwan)
  32. 32. Washington Innovation Ecosystem
  33. 33. Innovation Model is Shifting Linear Model Collaborative Model Education Research Research Workforce Skills Entrepreneurs Development Business Innovation Ecosystem Commercialization Associations Capital Government Non- Profits
  34. 34. Innovation Ecosystems Evolve Innovation Ecosystem Innovation Accelerators Virtual Cluster Growth Node Many nodes Dense linkages Virtualized Talent Nascent Network to Network functions IPZs Cluster Accelerated STARS collaboration Few to many firms EIRs Fast growth Patents Key linkages None or few firms Incubators Growth potential Tax R&D Incentives Gap Funding SBIR
  35. 35. Source: Washington Technology Industry Association (WTIA) http://wtia.micromaps.com/
  36. 36. Emergent Innovation Ecosystems (illustrative portfolio) SMART GRID/ RENEWABLE CLOUD COMPUTING ENERGY EFFICIENCY ENERGY ELECTRIC VEHICLE ADVANCED GLOBAL HEALTH INFRASTRUCTURE MANUCTURING HEALTH IT WATER RESOURCES/ NEW MATERIALS MEDICAL DEVICES ENVIRONMENT LOGISTICS/ DEFENSE FOOD PROCESSING FREIGHT MOBILITY TECHNOLOGY
  37. 37. Marine Agriculture, World’s Largest Innovation Park Food Composites Tourism Marine Biomedical, “Twilight” Energy IT, gaming, Incubators Aerospace simulation Life Sciences, Medical Food Global Health Devices Processing Defense Environment Remediation Wind, Solar, Data Centers Clean IT State Fair New Forestry. Green Tech Electric Cars Wine, Water Clean Tech, Biotech, Energy Smart Grid, Biofuels
  38. 38. Extending the Innovation Ecosystem
  39. 39. PNWER GDP and Population If PNWER were a separate country, it PNWER Region (GDP/Pop.) would rank 13th in total GDP State/Prov. GDP* Population Country GDP* 1. US 13,811,200 Wash. 311,270 6,468,424 2. Japan 4,376,705 Alberta 259,900 3,585,000 3. Germany 3,297,705 Oregon 158,233 3,790,060 4. China 3,280,053 B.C. 150,412 4,310,305 5. U.K. 2,727,806 6. France 2,562,288 Idaho 51,149 1,523,816 7. Italy 2,107,481 Sask. 40,340 1,008,697 8. Spain 1,429,226 Alaska 44,517 686,293 9. Canada 1,326,376 Montana 34,253 967,440 10. Brazil 1,314,170 Yukon 1,767 32,714 11. Russia 1,291,011 12. India 1,170,968 13. PNWER 1,051,841 Total 1,051,841 22,372,731 *2007 GDP in $US Million *2007 population & GDP in $US Million
  40. 40. WEDC Strategy Timeline Apr 28 Preliminary Policy Priorities WEDC Meetings Innovation & Jobs Summit ED Inventory Update Aug 3 Research Reports Stakeholder Engagement Sept 14 Prepare Draft Dec 14 Final Review Roll-out
  41. 41. 43

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