Only a handful of communities actively drive innovation at the municipal level. Innovation requires risk and risk plus public funds generally costs people their jobs. It's time to move beyond job security and look at the role innovation can play to foster systemic change. St. Louis, MO is positioned to capitalize on this opportunity and become a national leader in the area of government supported innovation efforts.

1. Building the Ecosystem
COMMITMENT TO
REGIONAL INNOVATION
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Sheridan, Travis A.

2. Overview
Over the past several years, St. Louis has made great strides in the development of the region. The following
document outlines an aligned and concentrated focus on innovation and entrepreneurship across seven key
sectors (referred to as the Seven Innovation Pillars). It should be noted that innovation does not simply
imply entrepreneurship or information technology. Innovation is a mindset.
There are currently only a handful of municipalities in the United States making a focus on regional
innovation a key component to their regional fabric. San Francisco, Philadelphia and the state of Maryland
have established municipal offices of innovation. While traditional innovation efforts have been internally
focused and fixated on improvements to core business functions, this document suggests that St. Louis can
assume a national leadership role with an innovation commitment based on the identification of new
business platforms which can be tested and proven within the region and then exported to solve similar
problems around the country. Imagine positioning St Louis as the nation’s test market. There is national
fight for regions to be considered entrepreneurial; however, there is a void in the area of being a community
of early-adopters. This is evidenced by entrepreneurs building in one community and flocking to another
community to follow capital or customers.
The presentation includes:
1) Overview of Innovation Ecosystem
2) Areas to Measure
3) Alignment with current Efforts
4) Positioning/Campaigns
5) Seven Innovation Pillars
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“Innovation
challenges
existing
processes
and
systems, resulting in the injection, rapid execution and
validation of new ideas into the ecosystem.”
Bryan Sivak, Chief Innovation Officer for the State of Maryland
Sheridan, Travis A.
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3. Why Now?
Industry
Evolution
Political
Alignment
Current
Rebranding
Efforts
Econ Dev
Partnership
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Status Quo
Less
Effective
Innovation
Focus
Sheridan, Travis A.
Market
Readiness
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4. Innovation Ecosystem
Regional Innovation Czar
Conceive It
Build It
Prove It
Scale It
Ideas and
Research
Entrepreneurs
Customers
Workforce
Risk
Value
Capital Access
The current ecosystem falls short in connecting entrepreneurs and innovations to actual
customers (there is no “prove it” function currently available). Subsequently, the capital
resources available earlier in the process represent significantly greater risk and cost the
founders a larger stake in the venture. In an effort to attract less expensive capital, the
ecosystem needs to include customers who are early adopters and potential proof of concept
partners.
Creating a culture of innovation requires a commitment to support the testing (prove it)
phase of innovation. Capital secured following proof of concept or secured to fulfill a
customer’s order represents lower risk and is less dilutive to the founders.
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5. Key Components
•
•
•
•
•
•
Innovative Platforms become Ventures
Real Companies | Real Jobs | Real Revenue
Become the Nation’s Test Market
Work with Clients to secure Customer #1
Create a Community of Early Adopters (#TryLocal)
Innovate in Seven Key Areas
– Municipal Services, Manufacturing &
Logistics, Education, Healthcare, Renewable Energy, Agriculture, and
Retail/Consumables
• Unlock Funding for Growth and Scale
• Make Innovation part of the Regional Fabric
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6. Measuring Innovation
• New Ventures (created or attracted)
– Can be segmented by Pillars
•
•
•
•
•
•
•
•
Jobs Created/Retained
Capital Raised (sources & type)
Revenue (new contracts secured)
Patents Filed
Market Growth/Expansion
Early Adopters (#TryLocal)
Increase Revenue/Decreased Costs
Industry Engagement
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7. Align & Maximize Current Physical Resources
• Incubators, Accelerators & Co-work spaces become the hubs
for innovation
• Connect clients/members to Customer #1
• Provide mentors & programming to build customer readiness
(customer readiness includes revenue readiness)
• Maximize connections & relationships to go beyond Customer
#1
• Manage Innovation Pipeline for targeted industries
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8. St. Louis as the home
for Fastest Growing
Companies.
This is a byproduct of the shift in
focus from St. Louis as a desirable
market to St. Louis as a dynamic
platform. Innovation fuels fastgrowing companies to meet needs
beyond demographic and
geographic boundaries of the St.
Louis region. The region serves as a
testing ground; however, as
innovation is exported, revenue is
imported. As revenue is
imported, jobs are created.
Imagine being known as the
region with the most ventures
on the annual Inc. list of
Fastest Growing Companies.
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9. Market vs. Platform
St. Louis as a Market
St. Louis as a Platform
• Draws from internal economy
• Subject to saturation
• Requires repeatedly selling to
local market
• Limits St. Louis as a source of
revenue
• We buy products
• Draws from external economy
• Opportunity for expansion
• Export solutions to similar
markets
• Positions St. Louis as a source
of growth
• We build ventures
The region’s aggressive commitment to shift from problems to a perspective of innovation
platforms will attract higher-quality options and more community goodwill. As an economic
driver, the solutions tested and successfully proven in the St. Louis region can be exported to
communities facing similar situations.
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10. Positioning – Gateway to the Best
• Use the Seven Pillars to launch successful innovations in
specific industries that have appeal beyond the region
• Create a look-toward-St. Louis mindset as it relates to
innovation in critical areas
• Export solutions while importing revenue and without
exporting jobs
• Use innovation-based
competitions to solve
industry-identified problems
connected to actual customers
• The prize can be a contract to
fulfill instead of cash to spend
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11. Positioning – The Nation’s Test Market
• Build off of the “Show Me” motto and foster a “Test it in St.
Louis. If it works, we will buy it.” environment
• Create pilot opportunities for locally-developed or locallybased innovations
• Maximize the region’s diversity (in several areas) to attract
innovators who wish to engage a cross-section of the US
demographic
The Nation’s Test Market
Conceive It
Build It
Prove It
Scale It
Ideas and
Research
Entrepreneurs
Customers
Workforce
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12. Positioning – TryLocal
• Community members can opt in to become beta testers of
new products, innovations, businesses
• Companies must be vetted and approved before seeking
users
– Must be actual businesses and not just technologists with a new
application
– Must offer FREE trial or product for testing; the goal is generating
buzz, testing assumptions, securing first batch of users
While many communities promote Buy Local campaigns, a
willingness to try something is a necessary psychological and
behavioral precursor to purchase. St. Louis can take an
innovative approach to remove barriers to trial and increase
community engagement.
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#TryLocal
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13. 12/5/2013
Sheridan, Travis A.
Retail & Consumables
Agriculture
Renewable Energy
Healthcare
Education
Manufacturing & Logistics
Municipal Services
Seven Pillars of Innovation
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14. Seven Pillars of Innovation - Rationale
•
•
•
•
Historically many of these areas lack innovation
The seven areas represent opportunities beyond the region
Future-proofing job creation in existing (known) fields
These seven areas will position St. Louis as a national leader
in innovation
• Pillars are grounded in industries that impact the community
Leaders from each area would chair an Innovation Cluster from their particular arena.
Furthermore, these leaders, along with representatives from the areas of technology and capital, will
serve as an advisory committee for the overall effort.
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15. Pillar-based Innovation Clusters
• Each Innovation Cluster is a microcosm of the Innovation
and Entrepreneurship Ecosystem
– Lead by Industry Leadership
• Identifies and sets Innovation Agenda
• Builds an Innovation Pipeline
– Facilitates RFP-type Innovation Process
• Provides Pilot-Project Opportunities
• Clarifies ongoing workforce needs
Innovation Cluster
Conceive It
Build It
Prove It
Scale It
Ideas and
Research
Entrepreneurs
Customers
Workforce
Value
Risk
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This model works at the
macro level as well as
the micro level.
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16. Municipal Services
There is an opportunity to lead by example. The City and County can identify
opportunities for innovation that exist within each system. Furthermore, both the City
and County will benefit from a shared focus on innovation. Government is often
viewed as a late adopter and stagnated by bureaucratic red tape. A focus and
commitment to innovation communicates to the region and nation that business-asusual is not the regional mindset. This allows for the problems within the region to be
viewed as potential platforms for innovation.
Objective: Infuse innovation into the municipal services arena. Identify areas where
innovators can pilot various products/solutions. Promote innovation challenges
within the pillar.
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17. Manufacturing & Logistics
Given the region’s history and centralized location, this sector is positioned perfectly
for innovation. Manufacturing and logistics also represent opportunities for
significant job creation. Identifying innovative solutions that increases revenue and/or
decreases operating costs in this sector can result in more sustainable ventures.
Objective: Increase the level of advanced manufacturing solutions being employed
by the industry. Build solutions that decrease costs and improve margins for the
sector. Redefine manufacturing and logistics to meet 21st century reality.
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18. Education
If any sector was in need of innovation, it’s education. Education is a volatile sector
and provides a significant opportunity for the adoption of innovative solutions. The
nature of education in the St. Louis region, while imperfect, is a microcosm of the
challenges facing education on a national level. St. Louis can pioneer new innovative
solutions that can have a national impact.
Objective: Employ innovations that directly impact student outcomes and
performance. Position regional education as a place that is welcoming for
innovative educators and administrators.
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19. Healthcare
St. Louis is a leader in the healthcare arena and there is already a lot of innovation
occurring in this sector. This sector should continue to be an area of focus. The
innovation from this sector can be exported on a broader scale while being tested and
proven locally.
Objective: Build off of the current healthcare and life-science focus. Identify targeted
solutions that can be exported to medical center beyond the region. Develop
innovations that improve community health.
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20. Renewable Energy
The St. Louis region, like many others around the nation, has an interest in
clean/renewable energy innovation. Given the urban, suburban and rural landscape
within the region, there are opportunities to launch innovative energy solutions that
meet a variety of needs.
Objective: Maximize the region’s diverse energy needs in a way that exports
solutions to other markets. Develop innovations that reduce overall energy
consumptions and costs.
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21. Agriculture
Much like the healthcare sector, agriculture represents significant opportunities for
platform-based innovation. Solutions in this sector have international opportunities
and the region provides significant testing and chances for early adoption.
Objective: Create ventures that directly increase revenue and/or decrease costs
associated with agriculture. Develop innovations that can be adopted by current
and future agriculture leader.
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22. Retail & Consumables
In a region with significant economic disparity, the opportunity exists to innovate in
the retail sector. Solutions that reduce the costs of goods sold or increase the buying
power within the region can serve as models on a national level.
Objective: Identify innovation that will help local retailers reach new customers and
reduce the cost of good sold.
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23. Innovation Inputs
Retail &
Consumables
Agriculture
Renewable
Energy
Healthcare
Education
Manufacturing &
Logistics
Municipal
Services
Talent | Technology | Capital
All to often, innovation is seen as synonymous with technology. In reality, St.
Louis can foster and embrace technology and talent development with a focus
on targeted application. The Seven Pillars represent areas in which
talent, technology and capital can be leveraged for the strongest result.
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24. Connected & Engage
@TravisSheridan
travis@travissheridan.me
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Sheridan, Travis A.