Egils Innovation 2.0 presentation 2 15-11


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Innovation 2.0: Egils Milbergs presentation to the Washington Economic Development Association Winter Meeting, Olympia, Washington, February 15 2011

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Egils Innovation 2.0 presentation 2 15-11

  1. 1. Innovation 2.0 A Winning Strategy for Driving Growth A Policy Reset in Time of Fiscal Constraint Prepared for:Washington Economic Development Association Winter Legislative Conference February 15, 2011 Egils Milbergs Executive DirectorWashington Economic Development Commission 1.1 WA Economic Development Commission 1
  2. 2. SummaryThis generation’s “Sputnik moment.” New global and nationaleconomic realities challenge Washington State to start,nurture and transform industries driven by innovation.Innovation has been a focus of Washington’s high-techindustries. The focus needs to be broadened to all people,industries and geographies of the state to expand our overallability to provide high value jobs.Washington possesses substantial assets and initiatives relatedto innovation, but the state is far from reaching its potential.A comprehensive economic growth strategy focused oninnovation and catalyzing “bottom-up” collaboration amongindustries, universities, laboratories, regions, etc., can transformWashington into a model 21st century innovation economy.
  3. 3. Sputnik Moments 2011 1985 1957 “this is our generations’ Sputnik moment” President’s Commission on“one small ball in the air” Industrial Competitiveness
  4. 4. The World is Changing “not your father’s economy” InnovationOur Goal: Make Washington the most attractive, creativeand fertile environment for innovation in the world by 2020 Washington Economic Development 4 Commission
  5. 5. 2010 New Economy Index Overall Scores26 indicators in five categories: 1. Knowledge Jobs 2. Globalization 3. Economic Dynamism 4. Digital Economy Source: ITIF 5. Innovation Capacity Development Commission WA Economic 5
  6. 6. Knowledge-based Competition China is now the world’s second largest economySoaringR&D in China
  7. 7. We are in tough hole ……..Peak totrough joblosses1981-82:2.9% oflabor forceThis time:5.5% oflabor force WA Economic Development Commission 7
  8. 8. The Great Reset FROM TO• Public Sector Jobs • Private Sector Jobs• Shovel Ready • Innovation• Expand Safety Net • Upgrading Skills• Consumption • Investment• Debt • Exports• Competing Regions • Collaborating Regions• Top-down macro • Bottom-up cluster strategies strategies WA Economic Development Commission 8
  9. 9. WEDC Innovation Strategy Public Impact Business PerformanceWorld Greatest Innovation Ecosystem Talent & Investment &Workforce Entrepreneurship Infrastructure
  10. 10. Innovation Clusters Matter • New industries and JOBS Education • Grow faster Workforce Research • Pay higher wages Start-ups • More spin-off and start-upBusiness opportunities Regional Innovation • Offset advantages of low Clusters wage competitionCapital Associations • Attract talent and Non- investment Gov’t Defense Profits • Solve social, energy, Military environmental problems • Maintain defense and homeland security WA Economic Development Commission 10
  11. 11. Marine Medical Freight Global Health Technology Devices Mobility Health Nano Services Photonics Bio-Fuels DefenseTechnology Advanced ManufacturingElectric Car Wine, WaterEnvironment Value-Add Smart Grid Advanced Cloud Technology Food Clean Tech Materials Computing, Data Centers Economic Development Commission WA 11
  12. 12. Designated Innovation Partnership Zones Bellingham Innovation Zone Aerospace Convergence Zone Sequim, North Olympic Innovation Partnership Zone Tri-Cities Research District South Lake Union Life Science Innovation Partnership Zone Spokane University District Innovation Partnership Zone Bothell Biomedical Manufacturing Corridor Central Washington Resource Energy Collaborative Grays Harbor Sustainable Industries Pullman Innovation Partnership Discovery Corridor Innovation Zone: Steinmueller Innovation Park Walla Walla Innovation Partnership Zone WA Economic Development Commission 12
  13. 13. Major WA Military Installations 191,000 jobs Whidbey Island $12.2 billion in output Naval Air $10.5 billion in labor income Naval Station Everett $5.2 billion in defense contractsNaval Submarine Base Bangor Spokane Fairchild AFB US Coast Guard Intelligence, Surveillance, and Recon WA Nat’l Guard Special forces and special operations Network-centric operations Puget Sound Cyber security Naval Shipyard Composite materials Joint Base Lewis McChord  Unmanned systems – both air and sea Madigan Medical Center  Energy efficiency and alternatives Health care for veterans US Army, Yakima US Marine Corps WA Economic Development Commission 13
  14. 14. Washington Economic Development 14 Commission
  15. 15. Key PolicyStrategies Washington Economic Development 16 Commission
  16. 16. TALENT: New Pathways for Learning • Protect training capacity for high demand occupations • Increase production of science & engineering and innovation graduates • Expand use of on-line education • Reduce K-12 drop-out rate 17
  17. 17. INVESTMENT: Accelerate Commercialization • Compete aggressively for Federal R&D funds • Double recruitment of STARS and EIRs • Double start-ups by access to expertise and entrepreneurial capital • Make permanent R&D tax credit • Clean Energy Public- Private Partnership 18
  18. 18. Infrastructure & Regulations • Expand local infrastructure financing tools (e.g. TIF) • Define infrastructure to include “intangible” capital • Build-out broadband(wired & wireless) • Create mechanism for self-financing of industry clusters • Reduce regulatory barriers and uncertainty 19
  19. 19. Seize Global Markets • Implement Governor’s export assistance initiative • Invest in freight mobility & infrastructure • Focus trade promotion on competitive clusters, not national markets • Improve foreign market intelligence and on-line tools Washington Economic Development 20 Commission
  20. 20. World’s Greatest Innovation Park Collaboration across regional boundaries • Provide operational funding for IPZs • Strengthen links with defense and mfg. sectors • Pursue Federal funding of regional innovation clusters • Create mechanism for self- financing of industry clusters 21
  21. 21. Brand “Decade of Innovation” • Utilize media to promote how WA innovates • Leverage the 2012 World’s Fair Anniversary • Define metrics to track trends, inputs & outcomes • Launch innovation “X” Prize 22
  22. 22. Innovation ecosystem is even bigger…. 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 22,372,731If Pacific Northwest Economic Region *2007 population & GDP in $US Millionwere a separate country, it would rank 13th in total GDP
  23. 23. Setting Priorities….. Reduce Create EconomicDevelopment Tough Choices Programs Eliminate Invest WA Economic Development Commission 24
  24. 24. WA Economic Development Commission 25
  25. 25. The risks inherent to starting a thriving enterprisein today’s troubled waters are immense, but therewards have never been greater. Washington Economic Development 26 Commission
  26. 26. Thank You 27