Global Economic Battlefield of the Future
Jeff Amerine, PMP
University of Arkansas
Innovate Arkansas
November 4, 2010
 Future “Economic Arms Race”: The Global
Innovation Battleground
 Arkansas’ Challenge and Opportunity
 Societal Impacts...
 “But they should not lose sight of innovation: managers know that the future of
their businesses depend on it, and gover...
Ideation Innovation Commercialization
Economic
Growth
Time
◦ Sustained Economic Growth = Continuous Innovation Cycle
 Advanced Car Batteries
 Renewable Energy Storage
 Advanced Biofuels
 Carbon Capture
 Solar Power: Thin Film and Spac...
Source: Building an innovation nation, André Andonian, Christoph
Loos, and Luiz Pires , Mckinsey & Company
Prerequisites
◦ Physical Infrastructure
◦ Rule of Law
◦ Government Stability
◦ Focus: World-class
Technology Sector
◦ Inno...
Source: Building an innovation nation, André Andonian, Christoph
Loos, and Luiz Pires , Mckinsey & Company
http://whatmatt...
Three Growth Paths
Government Incentives
Geographic Differentiators
University Hub
Dynamic Ocean
•Sustained Innovation
•Si...
 Mostly not in Arkansas…but progress is happening
University
R&D
Innovation
Engine
Entrepreneurial
Culture
Available
Commercialization
Finance
University
R&D
Innovation
Engine
Entrepreneurial
Culture
Available
Commercialization
Finance
$$
Time
Seed Early Growth Mature / Expansion
Angels
Venture Capital
Strategic Investors
Debt Investors
Revenues
Expenses
M...
Inadequate Patent &
Technology Understanding
1-2 Big Hits per Decade
Significant Employment,
& Royalties
7 Licenses
$120+ ...
Filling the Funding/Skill Gap
UA Validation Fund &
NSF Grants
More Quality
Arkansas
Ventures
• Commercialization Education...
 Innovation-based economies will prosper
 Pace of innovation accelerates and product lifecycles shorten even further
 C...
Filling the Talent/Skill Gap
Sustainable
Economic
Clusters
• Recruiting, Retaining Best and Brightest
• Convert Student Vi...
 Innovation will be the key strategic global differentiator
 McKinsey’s “Innovation Heat Map” shows challenges and oppor...
References
Amerine, J., (2010) NSF PFI Grant Slide Materials.
Andonian, A., Loos, C., & Pires, L. (2009) Building an Innov...
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Innovation Futures

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Overview of the importance of innovation and education in the global economy

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Innovation Futures

  1. 1. Global Economic Battlefield of the Future Jeff Amerine, PMP University of Arkansas Innovate Arkansas November 4, 2010
  2. 2.  Future “Economic Arms Race”: The Global Innovation Battleground  Arkansas’ Challenge and Opportunity  Societal Impacts  Workforce Education Implications
  3. 3.  “But they should not lose sight of innovation: managers know that the future of their businesses depend on it, and government leaders understand that the long- term growth prospects of cities and nations are tied to it. Even—perhaps especially—in times of economic turbulence, innovation remains the most important differentiator separating economic winners from also-rans.” André Andonian, Christoph Loos, and Luiz Pires Building an innovation nation, Mckinsey & Company
  4. 4. Ideation Innovation Commercialization Economic Growth Time ◦ Sustained Economic Growth = Continuous Innovation Cycle
  5. 5.  Advanced Car Batteries  Renewable Energy Storage  Advanced Biofuels  Carbon Capture  Solar Power: Thin Film and Space-based Solar Source: Michael Totty, Five Technologies that Could Change Everything , October 29, 2009, Wall Street Journal Who will win the new global innovation race in green technologies?
  6. 6. Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company
  7. 7. Prerequisites ◦ Physical Infrastructure ◦ Rule of Law ◦ Government Stability ◦ Focus: World-class Technology Sector ◦ Innovation Culture Innovation Hot Spring •Small, fast growing hub •Reliant on a few firms •Narrowly focused Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company
  8. 8. Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company http://whatmatters.mckinseydigital.com/flash/innovation_clusters/ Fayetteville, Arkansas Interactive “Innovation Heat Map” View:
  9. 9. Three Growth Paths Government Incentives Geographic Differentiators University Hub Dynamic Ocean •Sustained Innovation •Significant Start-up Churn •Innovation Culture •Multiple Sectors/Clusters Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company Innovation Hot Spring •Small, Fast Growing Hub •Reliant on a Few Firms •Narrowly Focused
  10. 10.  Mostly not in Arkansas…but progress is happening
  11. 11. University R&D Innovation Engine Entrepreneurial Culture Available Commercialization Finance
  12. 12. University R&D Innovation Engine Entrepreneurial Culture Available Commercialization Finance
  13. 13. $$ Time Seed Early Growth Mature / Expansion Angels Venture Capital Strategic Investors Debt Investors Revenues Expenses Mezzanine Finance Bootstrap – Self Financing Gov Grants Concept Basic Research Applied Research Validation – M kt & Tech Patent Application/Licensing Pre-Seed Funding & Skill Gaps = Commercialization Friction Points Grant Proposal Dev
  14. 14. Inadequate Patent & Technology Understanding 1-2 Big Hits per Decade Significant Employment, & Royalties 7 Licenses $120+ Million in UA Research 30 Invention Disclosures 10 Patent Applications 5 AR Start-ups Commercialization Education & Evangelism Faculty Tenure / Rewards Technology & Patent Validation Funding Market Validation Funding Grant Coaching & Mentoring Business Plan Competitions Lack of Researcher Awareness & Compliance Inadequate Market Understanding Inadequate Grant Skills Insufficient Access to Venture Funding
  15. 15. Filling the Funding/Skill Gap UA Validation Fund & NSF Grants More Quality Arkansas Ventures • Commercialization Education • Market Validation • Technology Validation • Government Grant Coaching/Mentoring • Patentability Validation • Business Plan Competitions
  16. 16.  Innovation-based economies will prosper  Pace of innovation accelerates and product lifecycles shorten even further  Capital and talent migrate toward innovative regions with high quality of life  Institutional unemployment occurs in stagnate regions  Government, business, and individuals compete globally based on their “innovation quotient (IQ)”*  Regional workforce education must be visionary, agile, and proactive in curriculum development, recruitment, and retention * Source: Mochari, I., (2002) The Innovation Factor: What's Your Innovation Quotient?, Inc. Magazine Online.
  17. 17. Filling the Talent/Skill Gap Sustainable Economic Clusters • Recruiting, Retaining Best and Brightest • Convert Student Visas to H1B Visas • Innovation Education • Government Grant Coaching/Mentoring • Green Technology Education • Commercialization Education • Business Plan Competitions Curriculum & Policy Imperatives = “Dynamic Ocean”
  18. 18.  Innovation will be the key strategic global differentiator  McKinsey’s “Innovation Heat Map” shows challenges and opportunity for Arkansas  Green, sustainable technologies will drive the next economic boom  Economic growth requires early-stage funding to bridge the “Valleys of Death” in the innovation to commercialization process  Regional workforce education must be visionary, agile, and proactive in curriculum development, recruitment, and retention
  19. 19. References Amerine, J., (2010) NSF PFI Grant Slide Materials. Andonian, A., Loos, C., & Pires, L. (2009) Building an Innovation Nation, Mckinsey & Company Online. Retrieved from: http://whatmatters.mckinseydigital.com/innovation/building-an- innovation-nation Mochari, I., (2002) The Innovation Factor: What's Your Innovation Quotient?, Inc. Magazine Online. Totty, M., (2009) Five Technologies that Could Change Everything , Wall Street Journal, October 29, 2009.

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