An Eco-System for Innovation

San Diego:

“Go to where the puck is going, not where it has been.”

– Wayne Gretzky

San Diego’s High Tech History

1960 1970 1980 1990 2010

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

Series of Catalytic Events

VC Funding

“The great enemy of truth is very often not the

lie … but the myth.” John Fitzgerald Kennedy

The Truth About San Diego

• No master plan• A series of ‘happy accidents’ • UCSD had no Business School or resident Tech

Transfer when CONNECT began• Simultaneous growth of research infrastructure (Salk

Institute, Scripps Research Institute, etc)• A region blessed with research leadership and vision• Decisions were made in the 50’s which put into

place the foundation for the future of San Diego

San Diego’s Transformation over the past 25 years

• Replaced 100,000 jobs lost in defense with 150,000 in new companies – 2/3 high wage

• 30,000+ employment in biotech; 25,000+ in IT; 12,000 attorneys – when started/800

• Highest concentration of biotech in U.S.• 600+ life sciences companies

• The wireless communications capital • 525 companies in the region• Global brands: Qualcomm, Motorola, Nokia

• $1.3 billion research base; more than doubled• $1.2 billion venture capital; increase of 8-10 fold

Engineering School

Computer Center

Venture Capitalists

Intellectual Property Lawyers

Angel Investor

M&A Expertise

Corporate Investor Human Resources

Workforce Development Initiatives

Medical School

Entrepreneurial Training & Mentorship

Accounting & Financial

Business Plan ExpertiseReal Estate

Public Relations

Biotech FacilitiesSmall Business AcceleratorsBig Pharma Collaborations

Research Institute

Foreign Investors

Cancer Research Institute

Presentation Skills

Access to university researchers

Dept. of Defense

Economic Development Agency

Assistance for getting Government. GrantsBiotech Incubators

Wireless Research Center

Software Development Consulting

Trade Organizations

Money

Entrepreneurs

Talent

Ideas & Inventions

Culture, Societal Values, Role Models, Rule of Law

Access to Global Markets & Supply Chains

Business SupportServices

Real Estate &Business Infrastructure

News and Media Outlets

Government

Education & Workforce Development

Academia & ResearchTrade and IndustryOrganizations

Coaches & Mentors

It takes a village (or rather, an ecosystem)

Key Conditions for Developing a Technology Cluster

Research

TalentMoney

Innovation Intermediary

Industry

Clusters

Industry

Clusters

Industry

Clusters

The Importance of Networks and ‘Boundary Spanners’

They facilitate access and flow of intellectual, financial, and human capital in order to:– Address economic transition– Capture the benefit of investments in R&D and higher

education– Build entrepreneurial cultures– Create Jobs– Help existing industries modernize– Diversify economies and create sustainable and renewable

wealth– Develop regional and global innovation networks– They break down hierarchies and allow knowledge to flow

http://www.jcvi.org/

Plantation Rain Forest

Economic Process

What’s in the rainforest

• Research capabilities and capacity• Potential for excellence in one or more areas of science

• Integrative regional and community infrastructure • Research, business services, industry participation, government.

• Significant private sector engagement• Multiple and continuous collaborations and alliances• Engagement of leaders and champions of innovation who

are not always the usual suspects• Adaptive and flexible environment • Multiple forms of investment

• Time, money, contacts, pro-bono services, facilities, etc• Talent development

Knowledge is the Key to Innovation

Information

Data

KnowledgeCreation

Application

Transfer

Principles and Values of Successful Innovation Systems

• People are the most important asset• Knowledge and creativity are the critical resources for

innovation• Science and Technology innovations are global from ‘birth’• Shared definitions matter• Networks must be established which serve to breakdown

social and professional hierarchies and drive lateral learning / knowledge transfer • Relationships Trust Transaction

• Mistakes ≠ Failures• Attitude = ‘Community over Company’

Principles and Values of Successful Innovation Systems

• Must develop the ability to mobilize diverse competencies quickly and efficiently

• Must be able to harness the ‘collective intelligence’ (i.e. ‘Wisdom of Crowds’)

• You must teach in the manner that entrepreneurs ‘learn’

• Non linear

• Just in time

• Peer network driven

• Curious and Passionate

• Companies are built by teams, not by individuals (teach teams)

Principles and Values (continued)

• Focus on outcomes, not just outputs• Shared Risk and Rewards…sustainability comes from

creating a collective sense of ‘ownership’• The ‘Parking Lot’ principle• Commercialization is a ‘Body Contact’ sport

Scripps Institution ofOceanography

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 ResearchInstitute

Gene Research Institute

Genomics Instituteof Novartis Foundation

Stein Clinical Research Facility

Hubbs-Sea World Research Institute

Juvenile Diabetes Foundation International

Torrey Pines Institutefor 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

San Diego

BioResearch Centers

Scripps Institution ofOceanography

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 ResearchInstitute

Gene Research Institute

Genomics Instituteof Novartis Foundation

Stein Clinical Research Facility

Hubbs-Sea World Research Institute

Juvenile Diabetes Foundation International

Torrey Pines Institutefor 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

San Diego

BioResearch Centers

La Jolla Mesa Zip Codes

4 Miles

28,867researcherswork within 4 mile radius

SD Total Research Base: 38,934

• 581 Life Science Companies have links to UC

• 1 in 4 Public Biotechs are within 35 miles of a UC Campus

• 1 in 6 Public Biotechs was founded by a UC scientists

• 1 in 3 California Biotechs was founded by UC scientists

Source: Industry-University Cooperative Research Program

The University of California is a key driver in California biotech

How it works

~ 1,500 companies > $10 billion in funding

• Founded in 1985 at UCSD as a ‘partnership of equals ‘ between • Entrepreneurs• Academia / Researchers• Industry• Government• Capital Providers• Business Services

• With the purpose of:• Commercialization of Research • Entrepreneurism education• Advocacy on behalf of innovation

A Brief History

San Diego’s ‘Incubator Without Walls’

• Facilitating the convergence of scientific invention, entrepreneurship, and smart capital

• Access to technology developments in all fields• Access to diverse forms of financing -- seed, angel, venture,

corporate, SBIR, grant/foundation• Business planning and market intelligence• Domain, business, and market expertise “know-how”

connecting to “know-who”• Lifelong education and training for professionals

Its Role in the Community

• An Independent, not for profit organization • A community resource dedicated to the creation, growth, and

sustainability of technology and life science businesses in the San Diego region

• Successfully harnessing and leveraging the best of San Diego’s talent, capital, and experience

• An honest, trusted, neutral broker of key relationships and access to resources for entrepreneurs

• An advocate addressing the unique issues facing entrepreneurs and SMEs

• ‘Community before company’

Numbers at a Glance

• 230+ Members• 16 Staff • 30 Programs• 150 EIRs; 200 Domain Experts• >1800 Volunteers• 330 Events• 15,000 Attendees• $3M budget

• Research Institution Support

• Business Creation and Development

• Entrepreneurial Learning

• Access to Capital

• Public Policy Advocacy

• Awards, Recognition, and Networking

Focus Areas

Assisting San Diego’s research institutions in promoting discoveries, recruiting and retaining key faculty, and accelerating innovation

Research Institution Support

• Frontiers in Science & Technology

• La Jolla Research & Innovation Summit

• Tech Transfer Roundtable• Regional IP / Seed Loan Program (i.e. – von Liebig Center)

• La Jolla Conference on Innovation Support for National Security

• CONNECT-assist (Development/Attraction/Growth)• Faculty Recruitment• Spousal Employment • New Research Institutions

Direct assistance in early stage discovery and technology transfer; formation and financing of local innovation in key industry clusters

Business Creation and Development

• Springboard

• Entrepreneurs in Residence

• Early Business Assessment• San Diego Innovation Report

• Cluster Incubation• Wireless-Life Sciences Alliance• Sports Innovators • Contract Services Organizations • Cyber Security • Advanced Autonomous Robotics Coming Soon

Results After Mentoring

70% received funding

$80M / year of economic

impact

$120Mcapitalraised

100% more talent hired

Accelerating the learning curve of innovators in the San Diego region

Entrepreneurial Learning

• FrameWorks Workshops

• CEO Strategy Forum

• MIT Enterprise Forum

• Workforce Development/ STEM:• CONNECT Young Innovators Program• San Diego Science Festival Participant

Outreach to key business groups, policy makers, and legislators regarding the systematic barriers facing innovators in successfully commercializing discoveries

Public Policy

• Policy Committee• State – Business Climate/Higher Education/Legislator Support • Local – Infrastructure and Workforce Development• Federal Innovation Support

• Washington Advocacy Initiative (In process)• Public Policy Forum

• Seminars, Conferences, Summits, on innovation-related policy issues• Early stage investment incentives policy

Global CONNECT• A Global Think Tank focused on Innovation Systems and their

applications to regional economic development• A research practice engaged in the assessment,

benchmarking, and comparative analysis of regional capabilities and capacity

• A consulting firm with applied expertise in program development, process engineering, economic development strategy, and policy

• A global workforce education delivery platform • 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

• ‘A network of networks’, currently numbering 50+ programs in more than 20 countries

The Global CONNECT Network• USA

– Boston– Washington– New York – New Mexico– Midwest (Illinois, Indiana, Wisconsin, Michigan)– Orange County, California– Los Angeles

• Canada– Toronto– Quebec– British Columbia

• Asia– Japan– Singapore– Korea– Taiwan – Malaysia – India

• Europe– England– Northern Ireland– Sweden– Scotland – Denmark – Estonia– Finland– Latvia– Germany

• Russia• Middle East

– Jordan– Israel

• Oceania– Australia– New Zealand

• Latin America– Colombia– Mexico

Innovation Today

• Innovation has become geographically agnostic

• What is driving this?

• The world wide web…information on demand

• Highly mobile and skilled workforce

• Evolution of social networks

• Cross disciplinary science

• Global research and commercialization alliances

• Acknowledgement of serendipity playing a role in success

The Future of Enterprise Creation

• The world is not flat….yet• Culture, Trust, and Integration as drivers• Emergence of the ‘micro-multinational’ and early bifurcation of business

processes• Single innovations will not be enterprise sustaining, and therefore will

lead to…• Increased bundling and convergence of innovation• Focus on cross disciplinary efforts• Embedded observation• People are the ultimate ‘technology transfer’• Companies relying more on ‘open innovation’• Businesses based upon intellectual assets vs. physical assets• Fierce competition for resources, particularly knowledge workers• Business Process Outsourcing Knowledge Process Outsourcing

Challenges in the Implementation of Regional Innovation Systems

• Why You?….Why Now?....and Why Bother?• ‘Layering’ regional collaboration activities upon existing

infrastructure• What is the role of government?• What feedback loops (client, supporter, stakeholder) do you

build into your system?• What is the appropriate model for funding?• How do you create a sense of urgency?• How do you start the process that allows the region to grow

into our destiny, rather than build it upon decades old models?

• What is the appropriate interface between technology transfer and technology commercialization

“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”)

Greg HorowittCo-Founder

Global CONNECTghorowitt@ucsd.edu

www.connect.orgwww.globalconnect.org

Thank you