Milbergs Tuesday Group Presentation 1.2 May 7 2010
Worlds Largest S&T Park May 7 2010
1. The World’s Largest Science and
Innovation Park
Egils Milbergs
Washington Economic Development Commission
May 7, 2010
Tuesday Group
Washington DC
V.1.2
2.
3. A History of Innovation
COSTCO
Commercial
Airplanes
4. 2007
Rank
Metro Area
Total
Score
1
San Jose –
Sunnyvale-Santa
Clara, CA
100.0
2 Seattle-Bellevue-
Everett, WA
46.4
3 Cambridge-Newton-
Framingham, MA
45.2
4
Washington-
Arlington-
Alexandria, DC-VA-
MD-WV
41.8
5
Los Angeles – Long
Beach – Glendale,
CA
40.2
6 Dallas – Plano -
Irving, TX
21.8
7 San Diego – Carlsbad
– San Marcos, CA
19.3
8 Santa Ana –
Anaheim-Irvine, CA
17.7
9
New York – White
Plains – Wayne, NY-
NJ
16.8
10
San Francisco – San
Mateo-Redwood
City, CA
16.1
Geography of Knowledge Based Industries
Milken Institute
4
9. 1960s & 1970s
Advantage is Cost
Strategy is
“Make it Cheaper”
1980s & 1990s
Advantage is Quality
Strategy is
“Make it Better”
2000s
Advantage is Innovation
Strategy is
“Make something new”
Innovation is key to economic recovery
Over half of Fortune 500 and just under half of 2008 Inc.
list began during a recession or bear market.
Dane Stangler, Kauffman Foundation
There is no better time like
a downturn to innovate.
10. The risks inherent to starting a thriving business
in today’s troubled waters are immense, but the
rewards have never been greater.
11. The Commission’s 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.
11
…, we can’t rest on our laurels, so
let’s commit today to grooming a
workforce and leaders who are
agile, creative, and embrace
innovation.
Gov. Chris Gregoire
March 10, 2009
We must look over the horizon and
prepare for the new economy that
will emerge when this recession
passes.
Commerce Secretary Gary Locke
March 18, 2009
14. Researchers and
entrepreneurs
create new ideas
Firm creation
and innovation
success
Transforming ideas
Into applications
No capital
Dead
ideas
No capital
Creating business
models
Dead
firms
Graphic concept adapted from
Dr. Charles Wessner, National Academies
Investment Challenge
Double “Valley of Death”
14Egils Milbergs
16. WEDC 2010 Scorecard Leg
Action
Notes
Talent & Workforce
Retrain dislocated workers in high demand fields and occupations..
Deploy education and training resources to meet specific needs of
employers
Sustain the capacity of our higher education system
Investment & Entrepreneurship
Expand STARS program and strengthen Innovation Partnership Zones.
Provide job creation incentives and integrated business services for small
business.
Compete for Federal R&D funds in strategic areas.
Infrastructure
Provide tax increment financing and other tools for local investment.
Streamline the regulatory process for significant projects and small
business
Develop state-wide energy strategy and plan.
Promote next generation broadband.
Apply economic development criteria to transportation projects.
17. 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
17
19. Emergent Innovation Ecosystems
(illustrative portfolio)
SMART GRID/
ENERGY EFFICIENCY
CLOUD COMPUTING
RENEWABLE
ENERGY
GLOBAL HEALTH
ELECTRIC VEHICLE
INFRASTRUCTURE
ADVANCED
MANUCTURING
NEW MATERIALS
HEALTH IT
MEDICAL DEVICES
WATER RESOURCES/
ENVIRONMENT
LOGISTICS/
FREIGHT MOBILITY
DEFENSE
TECHNOLOGY
FOOD PROCESSING
21. 21
Innovation Ecosystems Evolve
Growth Node
Innovation Ecosystem
Nascent Cluster
Virtual Cluster
None or few firms
Growth potential
Few to many firms
Fast growth
Key linkages
Virtualized functions
Accelerated
collaboration
Many nodes
Dense linkages
Network to Network
STARS
IPZs
R&D
EIRs
Patents
Incubators
Innovation
Accelerators
Tax
Incentives
Talent
Gap
Funding SBIR
22. Aerospace
IT, gaming,
simulation
Biomedical,
Incubators
Clean Tech, Smart
Grid, Biofuels
Defense
Biotech, Energy, Semi-
conductors, Exports
Wine, Water
Life Sciences,
Global Health
World’s Largest Innovation Park
Food Processing,
Rail Innovation
Wind, Solar,
Data Centers,
Adv. Mfg.
Marine
Food Tourism
Marine Energy
Agriculture,
Composites
New Forestry
“Twilight”
Medical
Devices
Environment
Remediation
Electric Cars
Clean IT
24. PNWER GDP and Population
If PNWER were a separate country, it
would rank 13th in total GDP
Country GDP*
1. US 13,811,200
2. Japan 4,376,705
3. Germany 3,297,705
4. China 3,280,053
5. U.K. 2,727,806
6. France 2,562,288
7. Italy 2,107,481
8. Spain 1,429,226
9. Canada 1,326,376
10. Brazil 1,314,170
11. Russia 1,291,011
12. India 1,170,968
13. PNWER 1,051,841
*2007 GDP in $US Million
PNWER Region (GDP/Pop.)
State/Prov. GDP* Population
Wash. 311,270 6,468,424
Alberta 259,900 3,585,000
Oregon 158,233 3,790,060
B.C. 150,412 4,310,305
Idaho 51,149 1,523,816
Sask. 40,340 1,008,697
Alaska 44,517 686,293
Montana 34,253 967,440
Yukon 1,767 32,714
Total 1,051,841 22,372,731
*2007 population & GDP in $US Million
25. 25
Your view of the Pacific Northwest
economy in the next 24 months?
A. Robust growth and
outperforming national
averages
B. Performance in line with
national economy trends
C. Underperforming in most
business sectors
D. Don’t know
43%
39%
17%
0%
0%
10%
20%
30%
40%
50%
26. 26
Will innovation be more important in the
next three decades than in the last three?
A. Yes
B. No
91%
9%
0%
20%
40%
60%
80%
100%
Yes No
27. 27
Are there significant opportunities in cross
border innovation and collaboration?
1. Yes
2. Maybe
3. No
74%
22%
4%
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes Maybe No (4)
28. 28
Which areas offer the biggest opportunity
for innovation collaboration?
1. Clean Energy
2. Information Technology
3. Health Services
4. Communications
5. Transportation/Logistics
65%
9% 4% 4%
17%
0%
10%
20%
30%
40%
50%
60%
70%
29. 29
What is the major factor limiting Pacific
Northwest’s innovation performance?
1. Schools lagging in science
and math education
2. Government not doing
enough to support
technological innovation
3. Business not investing
enough in technological
innovation
4. Workers lacking skills to be
technologically innovative
5. Don’t know
22%
26%
17%
26%
9%
0%
0%
5%
10%
15%
20%
25%
30%
30. 30
What primary skills will children need
to drive innovation in the future?
1. Math and science skills
2. Creative approaches to
problem-solving
3. Entrepreneurial and
business skills
4. Knowledge of the world’s
culture
4%
61%
22%
9% 4%
0%
10%
20%
30%
40%
50%
60%
70%
31. 31
How effective are your innovation and
R&D collaboration linkages with
neighboring states/ provinces?
1. Absolutely great
2. Good
3. Fair
4. Needs more attention
5. Poor
0%
4%
17%
43%
35%
0%
10%
20%
30%
40%
50%
32. 32
What is the biggest hurdle in forging
productive collaborations in the PNW?
1. Disseminating awareness of
opportunities
2. Overcoming cultural, political,
institutional rivalry
3. Finding funds for
collaborative projects and
ventures
4. Removing specific policy and
regulatory barriers
5. Adequately coordinating
relevant stakeholders
5%
27%
32%
14%
23%
0%
5%
10%
15%
20%
25%
30%
35%
33. 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
33
34. Considerations for organizing effective regional
innovation ecosystems
• make innovation a clear and central mission
• focus on outcomes and local, organic growth
• enhance the visibility of regional resources
• adapt policy to different economic structures
• enable regional leadership
• maximize results through collaboration
• rationalize government program structure
• creatively leverage public sector programs
• measure performance and outcomes
