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Greg Horowitt

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Co-Founder, Global Connect, San Diego

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Greg Horowitt

  1. 1. An Eco-System for Innovation San Diego:
  2. 2. ...then how is it that some regions dominate the innovation landscape? If we agree that Science and Technology are the bedrock of innovation…
  3. 3. Our view of the innovation landscape <ul><li>Innovation is complex </li></ul><ul><ul><li>Serendipity happens </li></ul></ul><ul><ul><li>Regions that can quickly mobilize critical resources around opportunities will succeed economically </li></ul></ul><ul><ul><li>Critical mass of diverse assets </li></ul></ul><ul><li>You can’t have clusters of technological innovation without social and behavioral change </li></ul><ul><li>Networks that cross professional and social boundaries play a key role </li></ul><ul><ul><li>Shared definitions matter </li></ul></ul><ul><ul><li>Harnessing the collective intelligence </li></ul></ul><ul><ul><li>Incubate leadership </li></ul></ul><ul><ul><li>Reinforce innovative behavior </li></ul></ul><ul><ul><li>Provide opportunities for convergence </li></ul></ul><ul><ul><li>Increase readiness through trust-based relationships </li></ul></ul><ul><li>People are the most important IP </li></ul><ul><li>Failure can be a positive metric </li></ul><ul><li>Commercialization is a ‘body contact’ sport </li></ul>
  4. 4. One Region’s Story 1955 - General Atomics 1956 - Scripps Clinic & Research Center 1960 - UCSD Founded 1963 - Salk Institute 1968 - Linkabit 1978 – Hybritech 1985 – UCSD CONNECT and Qualcomm Founded 1990-93 – 63,000 Jobs Lost 1995 – New Boom 1960 1970 1980 1990 2000 Series of Catalytic Events VC Funding
  5. 5. “ The great enemy of truth is very often not the lie … but the myth.” John Fitzgerald Kennedy
  6. 6. The Truth About San Diego <ul><li>No master plan </li></ul><ul><li>A series of ‘happy accidents’ </li></ul><ul><li>UCSD had no Business School or resident Tech Transfer when CONNECT began </li></ul><ul><li>Simultaneous growth of research infrastructure (Salk Institute, Scripps Research Institute, etc) </li></ul><ul><li>A region blessed with research leadership and vision </li></ul><ul><li>Decisions were made in the 50’s which put into place the foundation for the future of San Diego </li></ul>
  7. 7. San Diego’s Transformation over the past 20 years <ul><li>Replaced 100,000 jobs lost in defense with 120,000 in new companies – 2/3 high wage </li></ul><ul><li>30,000+ employment in biotech; 25,000+ in IT; 12,000 attorneys – when started/800 </li></ul><ul><li>Highest concentration of biotech in U.S. </li></ul><ul><ul><li>500+ life sciences companies </li></ul></ul><ul><li>The wireless communications capital </li></ul><ul><ul><li>525 companies in the region </li></ul></ul><ul><ul><li>Global brands: Qualcomm, Motorola, Nokia </li></ul></ul><ul><li>$1.3 billion research base; more than doubled </li></ul><ul><li>$1.2 billion venture capital; increase of 8-10 fold </li></ul>
  8. 8. Engineering School Computer Center Venture Capitalist Intellectual Property Lawyer Angel Investor M&A Expertise Corporate Investor Human Resources Specialized Biotech Training Medical School Entrepreneurial Training Accounting Business Plan Expertise Real Estate Public Relations Biotech Facilities Small Business Think-Tank Big Pharma Collaborations Research Institute Foreign Investors Cancer Research Institute Presentation Skills Access to university researchers Dept. of Defense Government Relations Getting Gov’t. Grants Biotech Incubator Wireless Research Center Software Development Consulting
  9. 10. Plantation Rain Forest Economic Process
  10. 11. “ It is not the strongest of the species that survives, nor the most intelligent … … but the one most responsive to change.” - Charles Darwin
  11. 12. What’s in the rainforest <ul><li>Research capabilities and capacity </li></ul><ul><ul><li>Potential for excellence in one or more areas of science </li></ul></ul><ul><li>Integrative regional and community infrastructure </li></ul><ul><ul><li>Research, business services, industry participation, government. </li></ul></ul><ul><li>Significant private sector engagement </li></ul><ul><li>Multiple and continuous collaborations and alliances </li></ul><ul><li>Engagement of leaders and champions of innovation who are not always the usual suspects </li></ul><ul><li>Adaptive and flexible environment </li></ul><ul><li>Multiple forms of investment </li></ul><ul><ul><li>Time, money, contacts, pro-bono services, facilities, etc </li></ul></ul><ul><li>Talent development </li></ul>
  12. 13. Why do they participate? <ul><li>New definition of ROI…not Return on Investment…but Return on Involvement </li></ul><ul><ul><li>Opportunity to form new relationships </li></ul></ul><ul><ul><li>Being exposed to new ideas and talent </li></ul></ul><ul><ul><li>Identifying new ways to engage (or re-engage) </li></ul></ul><ul><ul><li>Learning from each other </li></ul></ul><ul><ul><li>Exposure to new / alternative perspectives </li></ul></ul><ul><ul><li>Efficient use of time </li></ul></ul><ul><ul><li>Trust based relationships lower eventual transaction costs </li></ul></ul>
  13. 14. Two Key driving principles <ul><li>The velocity of knowledge </li></ul><ul><li>The velocity of capital </li></ul>
  14. 15. Principles and Values of Successful Innovation Systems <ul><li>People are the most important asset </li></ul><ul><ul><li>People with money </li></ul></ul><ul><ul><li>People with ideas </li></ul></ul><ul><li>Knowledge as a Resource for Innovation </li></ul><ul><li>Culture is a ‘gating’ factor </li></ul><ul><li>Science and Technology innovations are global from ‘birth’ </li></ul><ul><li>Failure seen as a positive ‘metric’ </li></ul><ul><li>Growth and sustainability of new enterprise relies heavily on social infrastructure </li></ul><ul><li>‘ Community over Company’ </li></ul><ul><li>Companies are built by teams </li></ul>
  15. 16. Principles and Values of Successful Innovation Systems <ul><li>Relationships  Trust  Transactions </li></ul><ul><li>Networks which serve to breakdown social and professional hierarchies drive lateral learning and knowledge transfer </li></ul><ul><li>Diverse competencies that can be mobilized quickly </li></ul><ul><li>Efficient leveraging / allocation of regional assets & resources </li></ul><ul><li>Harnessing the collective intelligence (i.e. ‘Wisdom of Crowds’) </li></ul><ul><li>The ‘Porsche’ Principle </li></ul><ul><li>Understand the way entrepreneurs ‘learn’ </li></ul><ul><ul><li>Non linear </li></ul></ul><ul><ul><li>Just in time </li></ul></ul><ul><ul><li>Peer network driven </li></ul></ul><ul><ul><li>Curious and Passionate </li></ul></ul>
  16. 17. Principles and Values (continued) <ul><li>Focus on outcomes, not just outputs </li></ul><ul><li>Having a company and having a business are not the same thing </li></ul><ul><li>Shared Risk and Rewards…collective sense of ‘ownership’ </li></ul><ul><li>The ‘Parking Lot’ principle </li></ul><ul><li>Embedded Observation </li></ul><ul><li>People are the ultimate technology transfer </li></ul><ul><li>Commercialization is a ‘Body Contact’ sport </li></ul>
  17. 18. Scripps Institution of Oceanography Salk Institute UCSD Campus Scripps Research Institute Burnham Institute Sidney Kimmel Cancer Center Neurosciences Institute La Jolla Bioengineering Institute La Jolla Institute for Molecular Medicine Human Biomolecular Research Institute Gene Research Institute Genomics Institute of Novartis Foundation Stein Clinical Research Facility Hubbs-Sea World Research Institute Juvenile Diabetes Foundation International Torrey Pines Institute for Molecular Studies Moores Cancer Center Center for Molecular Medicine UCSD School of Medicine UCSD School of Pharmacy San Diego Supercomputer Center La Jolla Institute for Allergy & Immunology San Diego BioResearch Centers Scripps Institution of Oceanography Salk Institute UCSD Campus Scripps Research Institute Burnham Institute Sidney Kimmel Cancer Center Neurosciences Institute La Jolla Bioengineering Institute La Jolla Institute for Molecular Medicine Human Biomolecular Research Institute Gene Research Institute Genomics Institute of Novartis Foundation Stein Clinical Research Facility Hubbs-Sea World Research Institute Juvenile Diabetes Foundation International Torrey Pines Institute for Molecular Studies Moores Cancer Center Center for Molecular Medicine UCSD School of Medicine UCSD School of Pharmacy San Diego Supercomputer Center La Jolla Institute for Allergy & Immunology San Diego BioResearch Centers
  18. 19. La Jolla Mesa Zip Codes SD Total Research Base: 38,934 4 Miles 28,867 researchers work within 4 mile radius
  19. 20. <ul><ul><li>FFF (Friends, Family, and….fools) </li></ul></ul><ul><ul><li>Grants & Foundations </li></ul></ul><ul><ul><li>Business Angels </li></ul></ul><ul><ul><li>Institutional and Corporate Venture Capital </li></ul></ul><ul><ul><li>Public Markets </li></ul></ul>Sources of Financial Capital
  20. 22. How it works
  21. 29. <ul><li>Purpose- the acceleration of promising, innovative science </li></ul><ul><li>150 + CONNECT members create the “conditions” </li></ul><ul><li>Receptive environment for start-ups </li></ul><ul><li>Critical mass of Science + Money + Management </li></ul><ul><li>Landscape has evolved over 20 years </li></ul>1,000 companies - $10 billion in funding
  22. 30. <ul><li>250+ Members </li></ul><ul><li>25 Programs </li></ul><ul><li>100 EIRs; 100 Domain Experts </li></ul><ul><li>1,000 Volunteers </li></ul><ul><li>300 Events in ‘08 </li></ul><ul><li>10,000 Attendees </li></ul>CONNECT 2009
  23. 31. How we measure success <ul><li>Springboard </li></ul><ul><ul><li>Over 1000 companies assisted </li></ul></ul><ul><ul><li>350 companies graduated from Springboard </li></ul></ul><ul><ul><li>Over $600M early / seed stage investment attained </li></ul></ul><ul><ul><li>135 are still doing business </li></ul></ul><ul><li>Total jobs created >25,000 </li></ul>
  24. 32. Global CONNECT <ul><li>A Global Think Tank focused on Innovation Systems and their applications to regional economic development </li></ul><ul><ul><li>A research practice engaged in the assessment, benchmarking, and comparative analysis of regional capabilities and capacity </li></ul></ul><ul><ul><li>A consulting firm with applied expertise in program development, process engineering, economic development strategy, and policy </li></ul></ul><ul><ul><li>A global workforce education delivery platform </li></ul></ul><ul><ul><li>Hands-On Management of Global Partnering programs designed to link researchers and enterprise to critical global resources through ‘hub and spoke’ soft landing pads, and extended social and professional networks </li></ul></ul><ul><ul><li>‘ A network of networks’, currently numbering 18 countries and 25 cities internationally </li></ul></ul>
  25. 33. Innovation Today <ul><li>Innovation has become geographically agnostic </li></ul><ul><ul><li>What is driving this? </li></ul></ul><ul><ul><ul><li>The world wide web…information on demand </li></ul></ul></ul><ul><ul><ul><li>Highly mobile and skilled workforce </li></ul></ul></ul><ul><ul><ul><li>Evolution of social networks </li></ul></ul></ul><ul><ul><ul><li>Cross disciplinary science </li></ul></ul></ul><ul><ul><ul><li>Global research and commercialization alliances </li></ul></ul></ul><ul><ul><ul><li>Acknowledgement of serendipity playing a role in success </li></ul></ul></ul>
  26. 34. The Future of Enterprise Creation <ul><li>The world is not flat….yet </li></ul><ul><li>Culture, Trust, and Integration as drivers </li></ul><ul><li>Emergence of the ‘micro-multinational’ and early bifurcation of business processes </li></ul><ul><li>Single innovations will not be enterprise sustaining, and therefore will lead to… </li></ul><ul><li>Increased bundling and convergence of innovation </li></ul><ul><li>Focus on cross disciplinary efforts </li></ul><ul><li>Embedded observation </li></ul><ul><li>People are the ultimate ‘technology transfer’ </li></ul><ul><li>Companies relying more on ‘open innovation’ </li></ul><ul><li>Businesses based upon intellectual assets vs. physical assets </li></ul><ul><li>Fierce competition for resources, particularly knowledge workers </li></ul><ul><li>Business Process Outsourcing  Knowledge Process Outsourcing </li></ul>
  27. 35. Challenges in the Implementation of Regional Innovation Systems <ul><li>Why You?….Why Now?....and Why Bother? </li></ul><ul><li>‘ Layering’ regional collaboration activities upon existing infrastructure </li></ul><ul><li>What is the role of government? </li></ul><ul><li>What feedback loops (client, supporter, stakeholder) do you build into your system? </li></ul><ul><li>What is the appropriate model for funding? </li></ul><ul><li>How do you create a sense of urgency? </li></ul><ul><li>How do you start the process that allows the region to grow into our destiny, rather than build it upon decades old models? </li></ul><ul><li>What is the appropriate interface between technology transfer and technology commercialization </li></ul>
  28. 36. How to make these work elsewhere <ul><li>Platforms must be created that are inter-disciplinary, cross-functional, and boundary spanning </li></ul><ul><ul><li>This is essential in order to allow for scalability and sustainability </li></ul></ul><ul><ul><li>They must serve to break down traditional social and professional hierarchies, enabling lateral knowledge transfer and reach across existing ‘boundaries’ </li></ul></ul><ul><ul><li>They must embed translational capabilities (Talent and other resources that can ‘translate’ science into high impact market solutions) </li></ul></ul><ul><ul><li>They must connect to workforce development initiatives </li></ul></ul>
  29. 37. How do you incentivize the building of rainforests? <ul><li>Fund programs that involve diverse stakeholders in governance and implementation </li></ul><ul><li>Require matching funds from multiple investors </li></ul><ul><ul><li>ie . foundations, private sector, industry, regional agencies, etc </li></ul></ul><ul><li>Require the involvement of experienced and successful S&T entrepreneurs and innovators </li></ul><ul><li>Act like a venture investor: require clearly aligned milestones, outcomes and exit strategy </li></ul><ul><li>Require feedback mechanisms which allow programs to adapt as circumstances require </li></ul>
  30. 38. “ While we associate economic growth with technological development, organizational innovation has played an equal, if not more important role since the beginning of the industrial revolution.” Economic historians Douglass North and Robert Thomas (P47 of “Trust”)
  31. 39. Greg Horowitt Co-Founder & Director Global CONNECT [email_address] www.connect.org www.globalconnect.org Thank you

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