egils milbergs 1 5 final seattle chamber of commerce july 13 2010

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  • 1.The Worlds Largest Science andInnovation Park Presentation for:Seattle Chamber of CommerceEgils Milbergs Executive DirectorWashington Economic DevelopmentCommissionJuly 13, 2010

2. Great Recession 3. Global Job Trends US trailing major economies in restoring jobsSource: Organization for Economic Cooperation and Brazil and Chile have seen Development and the International Labor Organization. strongest job growth. Asianeconomies bounce back 4. Geography of WA Unemployment (May NSA) 5. Path to Recovery 6. Anticipated recovery time by revenue size (in millions) Source: 2010 Manufacturing and Wholesale Distributions National Survey 7. The key to economic recovery2000s There is no better time likeAdvantage is Innovation a downturn to innovate. Strategy isMake something new1980s & 1990sAdvantage is Quality Strategy is 1960s & 1970sMake it BetterAdvantage is CostOver half of Fortune 500 and just under half of Strategy is 2008 Inc. list began during a recession or bearMake it Cheapermarket. Dane Stangler, Kauffman Foundation 8. Innovation Drives Economic Growth The societal rates of return to R&D are between two to four times private returns. At least 2/3 of the increase in per-capita GDP is from innovation. Jobs in technology industries pay approximately 70 percent more than other jobs. Innovation is the key source of competitive advantage against low-wage nations. 10 9. Actually were No. 6 40 countries/regions 16 Indicators Economic Structure Human capital (collegeeducation; researchers) Innovation capacity (corporateR&D; government R&D; scientificpublications) Entrepreneurship (new firms;venture capital) IT infrastructure (e-government;corporate investment; broadband) Economic Policy (corp. tax; ease of doing business) Economic Performance (trade balance, FDI, GDP per worker, productivity) 10. Overall ScoreOverall Score 80 70 60 50 40 30 20 10012 11. Decade Trend: The U.S. is Behind. 1. China 15. Latvia 28. UK 2. Singapore 16. Austria29. EU-15 3. Estonia 17. S. Korea 30. Mexico 4. Denmark 18. Ireland31. Netherlands 5. Luxembourg19. EU-1032. Australia 6. Slovenia20. Spain33. Finland 7. Russia21. Sweden 34. Canada 8. Lithuania 22. France 35. Germany 9. Cyprus23. Portugal 36. Italy 10. Japan24. Malta37. NAFTA 11. Hungary25. Belgium38. Greece 12. Slovakia 26. EU-2539. Brazil 13. Czech Republic 27. Poland 40. United States 14. India 13 12. Average annual growth of R&D expenditures : 19962007 EU = European Union 13. Researchers in selected regions/countries/economies: 19952007 NOTES: U.S. data for 2007 estimated based on 200406 growth rate. EU includes all 27 member states. EU = European Union; FTE = full-time equivalent Source: NSF Science and Engineering Indicators 2010 14. Market shares of computer and office machinery manufacturing: 19952007NOTES: EU = European Union. Asia-9 includes India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand,and Vietnam. China includes Hong Kong. EU excludes Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Slovenia. Source: NSF Science and Engineering Indicators 2010 15. Trade balance in high-technology goods 19952008NOTES: Asia-9 includes India, Indonesia, Malaysia, Philippines, South Korea, Singapore, Taiwan, Thailand, and Vietnam.China includes Hong Kong. EU excludes Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Slovenia. Source: NSF Science and Engineering Indicators 2010 16. Plan for Washington 17. Washington: A History of Innovation Commercial Airplanes COSTCO 18. States and regions can be powerful players in the innovation economy States, regions and smaller nations are: Large enough to: create intellectual capital build innovation ecosystem(s) connect globally respond to innovation opportunities Small enough for: shared vision and achievable outcomes trusted personal relationships effective governance 19. Geography of Knowledge Based Industries 2007Total Metro Area Milken Institute Rank Score San Jose 1Sunnyvale-Santa 100.0 Clara, CA Seattle-Bellevue-2Everett, WA 46.4 Cambridge-Newton-3Framingham, MA45.2 Washington- Arlington-4Alexandria, DC-VA-41.8 MD-WV Los Angeles Long5Beach Glendale, 40.2 CA Dallas Plano -6Irving, TX21.8 San Diego Carlsbad7 San Marcos, CA19.3 Santa Ana 8Anaheim-Irvine, CA17.7 New York White9Plains Wayne, NY- 16.8 NJ San Francisco San10 Mateo-Redwood16.1 City, CA 20. A New Innovation Growth Curve We are here PROSPERITYTIME 21. A Ten Year VisionWe should not fear to leadMake Washington State the most attractive, creative and fertile investment environment for innovation in the world. , we cant rest on our laurels, soWe must look over the horizon andlets commit today to grooming a prepare for the new economy thatworkforce and leaders who arewill emerge when this recessionagile, creative, and embrace passes.innovation. Commerce Secretary Gary Locke Gov. Chris GregoireMarch 18, 2009March 10, 2009 23 22. Entrepreneurs would appreciate this challenge. The risks inherent to starting a thriving business in todays troubled waters are immense, but the rewards have never been greater. 23. Innovation Policy Framework Talent Education ResearchWorkforce GrowthInvestmentSkills Employment Entrepreneurship Business Entrepreneurs Prosperity GSH Innovation Ecosystem Quality of LifeAssociations CompetitivenessCapitalNon- Infrastructure GovtProfits InnovationInnovation EcosystemInnovationDriversOutcomes 24. New Model for Economic Development Traditional ModelInnovation Driven Model Attract and retain companies Invest in talent, ideas andinfrastructure Jobs Quality of jobs, per capita incomes Lowest cost of business inputs Higher value inputs, increasingproductivity and outcomes Top down economic developmentBottom-up and organic growth Competing regions: zero sum game Collaborating regions: value creation Closed linear innovation systemOpen innovation ecosystem Single disciplines, functionsMultiple disciplines, integration Locally linked clustersGlobally linked clustersStrategizeOrganizeOperationize 25. Four CriticalChallenges 26. Talent Challenge28 27. Parents disagree about skills to driveinnovationNewsweek-Intel Global Innovation Survey Sept -Oct 4,800 adults 28. Investment ChallengeTransforming ideasInto applications Creating business models Researchers and entrepreneurs create new ideas No capitalNo capitalFirm creation Dead and innovation ideassuccess Dead firms Double Valley of DeathGraphic concept adapted fromEgils Milbergs Dr. Charles Wessner, National Academies 30 29. Infrastructure Challenge Beyond Oil? Post ICE Age? Internal Combustion Engine 31 30. Export Challenge 31. Washingtons exports to Asia per capita goods exports, 2000-20081,400 1,200 1,000 US Dollars 800 China 600 1,151 Asia NICs*827 891 400655 200365304020002004 2008Data source: *Newly industrialized countries: Hong Kong, Republic of Korea, Singapore, and China (Taiwan) 32. Washington Innovation Ecosystem 33. Innovation Model is ShiftingLinear Model Collaborative Model Education Research ResearchWorkforceSkillsEntrepreneursDevelopmentBusiness Innovation Ecosystem Commercialization AssociationsCapitalGovernmentNon-Profits 34. Innovation Ecosystems EvolveInnovation Ecosystem InnovationAcceleratorsVirtualCluster Growth Node Many nodesDense linkages Virtualized Talent Nascent Network to Networkfunctions IPZs ClusterAccelerated STARScollaborationFew to many firms EIRs Fast growth PatentsKey linkagesNone or few firmsIncubatorsGrowth potential Tax R&D Incentives GapFundingSBIR 35. Source: Washington Technology Industry Association (WTIA) 36. Emergent Innovation Ecosystems(illustrative portfolio)SMART GRID/RENEWABLE CLOUD COMPUTING ENERGY EFFICIENCYENERGY ELECTRIC VEHICLE ADVANCEDGLOBAL HEALTHINFRASTRUCTUREMANUCTURING HEALTH ITWATER RESOURCES/NEW MATERIALSMEDICAL DEVICES ENVIRONMENT LOGISTICS/ DEFENSE FOOD PROCESSING FREIGHT MOBILITYTECHNOLOGY 37. Marine Agriculture,Worlds Largest Innovation ParkFood Composites TourismMarine Biomedical, Twilight EnergyIT, gaming,Incubators AerospacesimulationLife Sciences, MedicalFoodGlobal HealthDevices Processing Defense EnvironmentRemediation Wind, Solar,Data CentersClean ITState FairNew Forestry. Green Tech Electric Cars Wine, Water Clean Tech, Biotech, Energy Smart Grid,Biofuels 38. Extending the Innovation Ecosystem 39. PNWER GDP and Population If PNWER were a separate country, it PNWER Region (GDP/Pop.) would rank 13th in total GDPState/Prov. GDP* Population Country GDP* 1. US 13,811,200 Wash. 311,2706,468,424 2. Japan 4,376,705 Alberta 259,9003,585,000 3. Germany 3,297,705 Oregon 158,233 3,790,060 4. China 3,280,053 B.C.150,4124,310,305 5. U.K. 2,727,806 6. France 2,562,288Idaho51,1491,523,816 7. Italy 2,107,481 Sask.40,3401,008,697 8. Spain 1,429,226 Alaska 44,517686,293 9. Canada 1,326,376Montana 34,253 967,440 10. Brazil 1,314,170 Yukon 1,76732,714 11. Russia 1,291,011 12. India 1,170,968 13. PNWER 1,051,841Total 1,051,84122,372,731*2007 GDP in $US Million *2007 population & GDP in $US Million 40. WEDC Strategy TimelineApr 28 Preliminary PolicyPrioritiesWEDC Meetings Innovation & Jobs SummitED Inventory Update Aug 3Research ReportsStakeholder Engagement Sept 14 Prepare DraftDec 14 Final ReviewRoll-out 41. 43


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