Innovation-Based Economic Development SUMMARY PRESENTATION 2008
TTDC Exists to Modernize the State’s Economy <ul><li>Balanced approach to economic development yields the greatest returns...
TTDC Background and Aspirations <ul><li>Revitalized in 2007 with $5M investment from the Tennessee Department of Economic ...
3  Focused Initiatives for  3  Critical Needs TN Entrepreneurship Network TN Capital Formation Board TN Strategic Research...
TTDC Board of Directors <ul><li>Thomas Ballard Director, Partnerships Directorate Oak Ridge National Laboratory </li></ul>...
Competitiveness Expectations for TN <ul><li>When risk capital is as accessible as comparable locations across the US </li>...
New Economic Realities in 21 st  century <ul><li>New economic realities are changing the nature of business competition an...
*Tennessee TBED budget represents one time funding allocation of $5M expended over two fiscal years for program demonstrat...
Tennessee Rankings  (2007) <ul><li>Per capita income and income growth are good indicators of economic dynamism and divers...
*Academic R&D only – does not include organizations like ORNL, St. Jude, AEDC . Comparison of Academic R&D to Venture Capi...
Take Away Message <ul><li>TTDC is tasked with designing and implementing an innovation-based economic development strategy...
<ul><li>Eric Cromwell, President 615-673-4419 www.tntechnology.org  </li></ul>Innovation-Based Economic Development in Ten...
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TTDC Summary Presentation

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TTDC Summary Presentation

  1. 1. Innovation-Based Economic Development SUMMARY PRESENTATION 2008
  2. 2. TTDC Exists to Modernize the State’s Economy <ul><li>Balanced approach to economic development yields the greatest returns on investment: Business Recruitment, Expansion AND Innovation Capacity Building Strategies </li></ul><ul><li>For Tennessee to thrive in the 21 st century, the state must improve competitiveness in three areas: </li></ul><ul><ul><li>Research & Development </li></ul></ul><ul><ul><li>Venture Capital Formation </li></ul></ul><ul><ul><li>Entrepreneurial Environment </li></ul></ul>
  3. 3. TTDC Background and Aspirations <ul><li>Revitalized in 2007 with $5M investment from the Tennessee Department of Economic & Community Development. Funding provided to demonstrate program value. </li></ul><ul><li>Private, 501(c)(3) corporation created by State Legislature and tasked with innovation-based economic development agenda </li></ul><ul><li>Aligned with and complementary to State Economic Development Department Programs </li></ul><ul><li>Exceed expectations on returns for state investments in innovation economic development </li></ul><ul><li>Earn reputation of doing “more with less” </li></ul>
  4. 4. 3 Focused Initiatives for 3 Critical Needs TN Entrepreneurship Network TN Capital Formation Board TN Strategic Research Board <ul><li>R&D2020: Coordinated federal funding strategy </li></ul><ul><li>SBIR/STTR Grants </li></ul><ul><li>Proof of Concept/Tech Transfer Fund </li></ul><ul><li>Research SuperStars </li></ul><ul><li>Entrepreneurship education and outreach </li></ul><ul><li>Business leaders and mentors network </li></ul><ul><li>Statewide business plan competition </li></ul><ul><li>Innovation Grants </li></ul><ul><li>VC2020: capital supply and accessibility study </li></ul><ul><li>Innovation and capital formation conference </li></ul><ul><li>Network of technology business acceleration services </li></ul>Deepen R&D Base Statewide Accelerate Entrepreneurship Increase Access to Risk Capital PURPOSE AUTHORITY ACTIONS
  5. 5. TTDC Board of Directors <ul><li>Thomas Ballard Director, Partnerships Directorate Oak Ridge National Laboratory </li></ul><ul><li>Robert Covington Partner SSM Partners </li></ul><ul><li>Bruce Doeg Managing Shareholder, Baker Donelson </li></ul><ul><li>William Evans, Pharm.D. Director and CEO St. Jude Children's Research Hospital </li></ul><ul><li>Craig Fitzhugh Representative Tennessee State Legislature </li></ul><ul><li>James Frierson Executive Director Advanced Transportation Technology Institute </li></ul><ul><li>Kenneth Holroyd, M.D., M.B.A. Assistant Vice Chancellor, Research Vanderbilt University Medical Center </li></ul><ul><li>Kevin Humphries Sr. Vice President, Technology FedEx </li></ul><ul><li>Matthew Kisber Commissioner, Tennessee Department of Economic & Community Development </li></ul><ul><li>Mark Maddox Representative Tennessee State Legislature </li></ul><ul><li>Margaret Mahery Executive Director Tennessee Municipal League </li></ul><ul><li>Dan Marcum Managing Partner Marcum Capital </li></ul><ul><li>Ted Nelson Chairman Mill Masters, Inc. </li></ul><ul><li>James Phillips Managing Partner Pinnacle Investments </li></ul><ul><li>Paula Short, Ph.D. Vice Chancellor, Academic Affairs Tennessee Board of Regents </li></ul><ul><li>J. Daniel Stewart, Ph.D. Associate Vice President, Research The University of Tennessee </li></ul><ul><li>Ron Washington Councilmember Murfreesboro City Council </li></ul><ul><li>Leslie A. Wisner-Lynch, D.D.S., D.M.Sc. Director of Applied Research BioMimetic Therapeutics, Inc. </li></ul><ul><li>J. Stewart Witzeman, Ph.D. Director, Research Division Eastman Chemical Company </li></ul>The Tennessee Strategic Research Board, Tennessee Capital Formation Board and Tennessee Entrepreneurship Network currently being chartered with leadership appointed from a pool of recognized experts from across the state.
  6. 6. Competitiveness Expectations for TN <ul><li>When risk capital is as accessible as comparable locations across the US </li></ul><ul><li>When entrepreneurs can easily connect with talent, expertise, and support services to scale operations </li></ul><ul><li>When division is replaced by coordination </li></ul><ul><li>When institutional investors harbor no reservations about investing in TN funds </li></ul><ul><li>When TN becomes a destination for high potential entrepreneurs </li></ul><ul><li>When TN fully capitalizes on the potential of existing innovation infrastructure </li></ul>
  7. 7. New Economic Realities in 21 st century <ul><li>New economic realities are changing the nature of business competition and economic development strategies. </li></ul><ul><li>Technology </li></ul><ul><li>Globalization </li></ul><ul><li>Economies will rise or fall based on : </li></ul><ul><ul><li>Education and Training [TALENT] </li></ul></ul><ul><ul><li>The creation of knowledge </li></ul></ul><ul><ul><li>The useful transfer of knowledge </li></ul></ul><ul><ul><li>Technology diffusion and adoption </li></ul></ul><ul><ul><li>Control of Intellectual Property </li></ul></ul><ul><li>How has Tennessee invested in a coordinated innovation agenda? </li></ul>
  8. 8. *Tennessee TBED budget represents one time funding allocation of $5M expended over two fiscal years for program demonstration. ^New Economy Ranking by the Kauffman Foundation and Information Technology and Innovation Foundation (2007) Innovation-Based Economic Development Funding Comparison   Georgia Kansas Kentucky Maryland Tennessee Population (2006 Est.) 9,363,941 2,764,075 4,206,074 5,615,727 6,038,803 GSP (2006 Est.) $331B $95B $126B $220B $207B State Budget (FY07 Est.) $18.6B $6.5B $9.3B $20.2B $13.9B TBED Annual Budget $19M $11.37M $8.5M $5.9M $2.5M* Historical TBED funding $450M $220M $34M $42M $8.0M New Economy Ranking^         Overall 18 34 45 3 36 Knowledge Jobs 20 28 45 4 43 Globalization 14 42 10 30 19 Economic Dynamism 17 45 49 2 20 The Digital Economy 13 21 45 11 38 Innovation Capacity 26 27 47 3 41
  9. 9. Tennessee Rankings (2007) <ul><li>Per capita income and income growth are good indicators of economic dynamism and diversity – more high wage jobs are needed in Tennessee. </li></ul><ul><li>TN population = 6.15 million </li></ul><ul><li>Rank: 17 th </li></ul><ul><li>TN Gross State Product =$210 billion </li></ul><ul><li>Rank: 18 th </li></ul><ul><li>TN per capita income = $33,280 </li></ul><ul><ul><li>Rank: 40 th </li></ul></ul><ul><li>TN per capita income growth = 3.4% </li></ul><ul><li>Rank: 49 th </li></ul>
  10. 10. *Academic R&D only – does not include organizations like ORNL, St. Jude, AEDC . Comparison of Academic R&D to Venture Capital Investment State University R&D per capita* % of U.S. average Venture Capital per capita % of U.S. average Alabama 130.06 82.10% 10.11 10.00% Florida 83.70 52.90% 32.00 31.60% Georgia 136.47 86.20% 49.07 48.50% Kentucky 113.00 71.40% 32.39 32.00% Mississippi 126.47 79.90% 3.43 3.40% North Carolina 188.77 119.20% 65.80 65.10% South Carolina 118.89 75.10% 19.31 19.10% Tennessee 120.67 76.20% 20.47 20.20% Total Southeast $122.58 77.40% $34.39 34.00% California 177.64 112.20% 399.14 394.60% Massachusetts 334.70 211.40% 560.02 553.70% Total U.S. $158.35 100.00% $101.15 100.00%
  11. 11. Take Away Message <ul><li>TTDC is tasked with designing and implementing an innovation-based economic development strategy with statewide impact – a balanced approach to econ. dvlp. </li></ul><ul><li>TTDC is capitalized with a $5M state investment, and the focus of the organization is improving competitiveness in: RESEARCH, VENTURE CAPITAL, & ENTREPRENEURSHIP </li></ul><ul><li>Tennessee has impressive infrastructure in place, and with marginal investments in strategic programs, Tennessee can cross the chasm from good to great. </li></ul>
  12. 12. <ul><li>Eric Cromwell, President 615-673-4419 www.tntechnology.org </li></ul>Innovation-Based Economic Development in Tennessee

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