How can rural America compete?Public Domain http://minimediaguy.org/2007/02/21/the-amish-approach-to-new-media/
Driving Economic Objective• Enhance the global competitiveness of rural technology-based businesses
KOIN Objective• Generate the core benefits of industry clusters in areas where critical innovation resources are sparse.
KOIN Strategy• Create proactive, open collaboration networks, that generate competitive advantage through: • Facilitating connections that drive successful partnerships • Identifying and exploiting opportunities
Discussion Outline• Deep Collaboration Between an Economic Development District and a University Center: • Merging of Competencies and Perspectives • A Pilot Endeavor • KOIN: Adding to the Rural Development Economic Development Portfolio
A migration to a complementaryrelationship AMI Tech Development Innovation-based Regional ED Regional NCRPC Development
AMI: Who We Are…• Mission: to advance technologies, people, and companies through collaborative engineering and business partnerships.• Clients: Startups, small companies, large corporations, and community partners
Who Uses AMI Services? AMI has completed more than 2,500 projects nationwide with more than 500 different companies in the last 15 years.
AMI is an Early Stage TechnologyDevelopment agent for researchers,entrepreneurs, and existing businesses. Technology Product & Process Research Development Development Commercialization Innovation: Successful Market Entry ESTD Initial (Early Stage Technology Development) Product and Basic Concept/ Process Market Research Invention Development Entry Invention: Protectable Promising Idea AMI Focus
AMI Core Competencies Custom Product Equipment and Advanced Bioprocessing/ Development & Process Design ChemicalCommercialization Development Verification Engineering
AMI’s Professional Consulting Staff• 13 full-time experienced technical/business professionals • 9 engineers: Mechanical, Chemical, and Industrial • 1 Product designer • 1 Product development specialist • 1 Commercialization/business planning professional • 1 Economic analyst
The AMI Internship Experience – A Hands-onProgram• Since 1995 more than 450 students have interned at AMI• Modeled after the proven “teaching hospital” mentoring approach• Students have been from all the manufacturing-related engineering disciplines and school of business• Experience focus is on developing: • Technical skills • Business perspective • Communications skills • Professionalism
AMI TBED Goal: Increase Impact Community: Regional Innovation/ Collaboration Company: Strategic Competitive Advantage Project: Product, Process, Technology Development Development Technology Industry Process Expertise Expertise Expertise
The Relationship Enabler: The EDA U/C Program UC 1 UC 2 UC 32005 2008 2011
UC1: Bridging the Gap Between NewTechnologies and Commercialization • Develop new productsESTD Agent • Develop new processes and technologies Market Need • Develop the means to bring products to market more rapidly • Develop the means to produce products Technological Feasibility Business Viability more efficiently. Technology Product & Process Research Development Development Commercialization
Integrated Business and TechnologyDevelopment Services
Kansas Livestock Foundation TEXASAMI Phosphorus Recovery AMANA FARMSTechnology Development TCFA
Questions AMI Asked at the end of UC1:• How can AMI: • help more Kansas companies systematically connect to and accelerate top-line growth opportunities? • help companies connect to required elements for growth regardless of location? • Source of Ideas/Technologies • Capital • Infrastructure • Expertise • Workforce • facilitate greater connectedness of Kansas companies to identify and pursue new growth opportunities? • impact more than one company at a time?
Initial Regional Pilot Project Origins Questions / Requests posed of AMI • What business clusters are operating in NCK? • Which business sectors are growing and which business sectors are fading? • What linkages exist between the various business sectors present? • Is there a way to illustrate the data in map form that makes it easier for local leadership to better understand the regional economy?
Motivation• “Cooperation … comes when it is in the best interests of all those involved.”“Collaborating is ultimately about relationships, and relationships do not thrive based on a rational calculus of costs and benefits but rather because of genuine caring and mutual vulnerability.” Peter Senge, The Necessary Revolution
Underlying Assumptions…Basis of IBED Strategy Driving Questions Innovation enables sustaining How can we best assist Kansas global competitiveness. companies to increase innovation capacity? There are key elements required What can we do to level the playing for successful tech ventures. field for tech ventures? Technology-based companies How can we best help rural should not be location limited. communities to grow tech-based businesses? “Blue ocean” opportunities exist How can we bring resources where boundaries are spanned. together to exploit “blue ocean” opportunities ? Successful entrepreneurs are not How can we facilitate greater necessarily smarter…just better connectedness to new growth connected. opportunities?
North Central KansasRegional Industry ClusterAnalysis and InnovationNetworking Project(A Core Component of AMI’s UC2 Grant)
Rural Development is a Wicked Problem Linear Method• Don’t understand the Designer/subject 1 problem until have Designer/subject 2 developed a solution Problem Gather Data• Have no stopping rule Analyze Data• Solutions not right-or-wrong, but better-or-worse• Can’t learn about the Formulate Solution problem without trying solutions –likely to spawn Implement Solution new problems Solution Time• Unique and novel• Symptom not the problem• Social complexity – people!
What is a region? Eco Dev Community Nation 5% Multiple States 5% State 0% Multi-city across… 5% Multi-city within… 5%Multiple Counties 20% County Limits 50% City Limits 10% 0% 20% 40% 60%
Landscape Perspective Single Business Employees
Regional Analysis – Where to Start?• Focus on traded industries• What do we: • Preserve ? • Extend ? • Combine ?• Assess innovation readiness• Need to redefine clusters in rural regions• Visualization can reshape the discussion AMI.NCRPC.ORG
What strengths are there in KS?The mean or the sum?
What does this mean?• Every region is unique• Every region has similarities• Uniqueness and similarities both create opportunities• Next question – How can we explore these opportunities and decide on the best opportunities to pursue• Answer – By understanding the region, the interdependences and innovation capabilities
Mapping Potential IndustryMapping Social Connections Connections
Building Connectedness to Business Opportunities Based on input from our partners and clients, a viable “connectedness” solution must: • Weave peer to peer business development opportunity networks • Focus on clustering need and competencies, not just industries • Connect to global market development opportunities/infrastructure • Focus entrepreneurship on traded industries (wealth generators) • Level competitive playing field (urban, global) with hub and node approach vs. traditional clusters • Create “hard-to-copy” regional competitiveness • Attract/retain skilled people • Engage regional wealth and investment capital
KARDO• Kansas Association of Regional Development Organizations• Founded in 2008• Founding members • Economic development districts (7) • University centers (2)• Goals • Shared experience and talents • Cooperative and collaborative ventures
UC3: Kansas Opportunity Innovation Network :Rethinking What Critical Mass Means UC 1 UC 2 UC 32005 2008 2011
• Leverage AMI’s integrated technology/business development competencies • Profile innovation capabilities and needs of regions and local companies • Scout new global opportunitiesKOIN will create an environment • Actively weave networks ofthat transcends geographic technology providers, expertiseisolation, discovers new markets, and capitalinnovates openly and fosters • Span boundaries to build ”hard-global competitiveness to be at to-replicate” regional advantagethe intersection of great ideasand new opportunities. It is all about identifying and processing new business opportunities.
KOIN spans Economic Development Strategies • Spur new businessIntermediary Innovation • Improve business competitiveness Market Need • Vet opportunities • Foster open innovation • Develop and leverage networks Technological Feasibility Business Viability Start Organic Regional New Incubate Recruit Growth Innovation
The Networked Ecosystem Approach • Relationship Focused • Generates benefits of clusters w/o the critical mass of clusters • Volume of opportunities • Density of expertise • Diversity of interactions • Proximity to markets • Challenges • Requires a strong and deep information network
KOIN Services/Tools Under Development• Planning Assistance• Mapping & Analysis Service and Tools• Asset Mapping Tools• Business and Innovation Profiling• Opportunity Scouting• Networking• Business Development Assistance
Business Profiling/Supply KTEC Technology Business Profiling and Chain Network Development Cluster Strategy Innovation Networking Partner: KDOC Development Partner: North Central Partner: KTEC Regional Planning CommissionRegional ProjectsEnable “Learning byDoing” ApproachRegional Asset Mapping Regional Manufacturing Wind Supply Chain ID and Kansas Army AmmunitionPartner: Great Plains Park/Incubator IBED Strategy Pre-profiling Assessment Plant BusinessDevelopment Inc. and Business Development Partner: South Central Redevelopment Partner: Harvey County Kansas Economic Partner: Great Plains Economic Development Development District Development Authority Council
Innovation ProfilesAiming for adiverse ecosystem Invena Corporation• There is no Technical 7 Inovation 6 7 one way to 6 5 4 iSi Environmental Services contribute to 4 3 3 2 Central Plains Steel Co. innovation 2 1 1 Miniature Plastic Molding LLC 0 0 0 CECO, Inc 1 1 2 3 Customer 4 Business 5 Centered Driven Design 7 Decisions
Connecting Through Competencies Business Profiles/Clusters not Based on Final Product/Service Technical Business User Capabilities Expertise Understanding Repeatable R & D Ready Access to Programmatic and/or highest markets and capital, system for gathering First Tier quality production capable of serving and using new user capabilities new markets information Capable of either Competent using Collects existing high production or standard business customer data to Second Tier high precision methods and serving occasionally production existing market improves offerings Struggles with Struggles with Assumes customer production, hangs on forecasting and Third Tier actions are random to outdated resource or unchanging technologies management
Connectedness - Mapping Industry ConnectionsUsing SNA Methods
Network Weaving: Knitting Connectedness• Most networks are fragmented unless deliberately developed• Thicker networks help us learn faster, spot opportunities faster, align resources faster, and act faster. They Scattered Fragments Hub and Spoke Network accelerate innovation.• Regional assets connected in new open innovation networks will expand opportunities Core Periphery Network Multi-Hub Small World Network
AMI Wind Industry Manufacturing Supply Chain Initiative Wind FarmSupply Chains Additional Company 14 County Region Pre-Assessment Project Full Profiles
Wind Farm C&L Supply Chain DevelopmentGoal: Increase local labor content of regional wind farm construction projects • Provide wind farm developers and contractors with qualified “local” suppliers • Proposed to adapt GLWN mfg. supply chain concepts to wind farm supply chain • Education • Capability profiling • Business development networking • Partnered with KS Dept. of Commerce to provide initial education workshop – Green jobs funding • Seeking funding to develop the balance of the wind farm supply chain services
The KLP’s OpportunityDevelopment Network• Leverages regional assets • Natural/man-made • Public/private• Targeted business development KS• Building global connections Logistics Park• Wrapped innovation/growth services• Team-based approach• Strategic partnering inside and outside region• Partners not geography limited
The KLP Team Secures Second Wind Company• A proven rural development regional approach• County population: 33,700 (Harvey)• Largest community: Newton – 17,000• Invested over $15M to develop park to date• Received EDA infrastructure investment• New Millennium: 350 jobs, $40M investment
South Central Kansas Rural Innovation Accelerator Rural Business Enterprise GrantGoal: Grow a renewing stream of next generation regional goods producers• Evaluates feasibility of manufacturing incubator serving nine rural counties• Identifies business and technology needs of small emerging mfgers• Support established manufacturers’ “skunk work” development projects• Develops plans to deliver sustainable incubation services• Assesses the region’s innovation readiness (ecosystem assessment)• Compliment’s region attraction/expansion efforts with top-line growth• Synergizes organization missions, regional assets, and investments
Great Plains Industrial Park Development• Collaboratively develop a three year strategic marketing plan• Virtually extend market research and business development functions of staff• Build networks to accelerate the search for opportunities• Build recruiting team to respond to prospect opportunities• Explore feasibility of non- traditional strategies to address park’s previous mission• Facilitate creative reuse thinking Kansas Army through visualizations Ammunition Plant - Parsons, KS
KOIN’s Objective:Overcome Critical Mass Challengeswith Critical Connection Strategies
Level the Playing Field http://blog.voucherme.my/category/funny-stuff/By spurring open To Increase Market Needinnovation, providing Competitiveness inaccess to innovation Technology-Basedresources, and finding Technological Feasibility Business Viability Businessesblue ocean opportunity
John R. Cyr, Executive Director Kansas Association of Regional Development Organizations (785) 738-2218 email@example.com Brad Kramer, Director Advanced Manufacturing Institute Kansas State University (785) 532-3722 firstname.lastname@example.orgPlease visit • www.gpdionline.com• www.innovatekansas.com • www.ncrpc.com• www.amisuccess.com• www.kansaslogisticspark.com • www.networkkansas.com• www.greatplainsindustrialpark.com • www.sckedd.com• www.ami.ncrpc.org • www.sekrpc.com