strategic intent - business oregonoregon economic & community development department strategic...

Oregon Innovation Plan 2.0

Accomplishments

Proposed Investments

Strategic intentOregon Economic & Community Development Department 121 SW Salmon Street, Suite 205

Portland, OR 97204 503–229–6051 • fax 503–222–5050

www.oregoninc.org

Strategic intent

For more information on Oregon’s innovation initiatives, visit:

• OregonInnovationCouncil......................................................................................... http://www.oregoninc.org/

• OregonNanoscienceandMicrotechnologiesInstitute(ONAMI)................................. http://www.onami.us/

• OregonTranslationalResearchandDrugDevelopmentInstitute(OTRADI)................. http://www.otradi.org/

• OregonBuiltEnvironmentandSustainableTechnologies(BEST)................................ http://www.oregonbest.org

• OregonWaveEnergyTrust.......................................................................................... http://www.oregonwave.org

• TheCommunitySeafoodInitiative.............................................................................. http://www.heads-up.net/csi/

• TheFoodProcessingInitiative...................................................................................... http://www.foodipc.org/

• OregonForestryInnovationInitiative.......................................................................... http://owic.oregonstate.edu/

Proposed Funding

Appendix C

Recommendations

2009 Innovation Plan SummaryInitiative Funding

Industry initiative1. FoodProcessing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2.7M

2. Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2.6M

3. Manufacturing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1.05M

4. Seafood. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$.75M

5. WaveEnergy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3.85M

Research CentersOregonBEST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3.525M

ONAMI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6.825M

OTRADI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4.6M

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26M

photo creditsCover:MinagdiYan,ONAMI.Insidefrontcover:HaystackRock,photocourtesyVickieNissen.TableofContents:HaystackRock.Backoftableofcontents:HikeronMt.Hood,photocourtesyVickieNissenPagei:ProfessorKaichangLi,photocourtesyOSU.Pageii:HemConbandage,photocourtesyHemConMedicalTechnologies.Oceanbeach,photocourtesyVickieNissen.Page2:PearlBakery,photobyJamieFrancis.Bottles,photocourtesyNorthwestFoodProcessingAssociation.Page3:FoodInnovationCenter.PearlBakery,photobyJamieFrancis.Page4:Boeingplane,photocourtesyofBoeing.EscoMetalFoundry,leanmanufacturingcompanyinnorthwestPortland.PhotosbyFredrickJoe,TheOregonian.Page5:Oysters,photocourtesyLynnKetchum,OSU.Page6:Off-loadingfrozenAlbacoretuna,photocourtesyOSU.barcode,photocourtesyOSU.RosaleeRasmussenfillingcansatAstoriaCanFood.

Page7:Finaverabouy.Waveenergyresearch,photocourtesyOSU.Page8:VignolaPVpanel.Page9:St.Helenswindturbine.Page10:PSUlabequipmentintheONAMIlab.GoranJovanovic,photocourtesyOSU.Page11:ShaliniPrasad,ONAMI.JohnDash,ONAMIlab.OTRADIlab.Page14:Preparedmincedfish(surimi)pressedintoblocksandfrozenforshipmentfromthePacificSeafoodprocessingplantinWarrenton,Oregon.PhotocourtesyOSU.Lokeylab,ONAMI.Labtech,OTRADI.Page15:Marina,photocourtesyVickieNissen.Page17:TomAllen,VoxtelStaff,ONAMIlab.Lillisbuilding,photocourtesyOSU.JohnDash,ONAMIlab.Page18:Lake,,photocourtesyVickieNissen.Page21:SunriseatCraterLake,photobyStevenNehl,TheOregonian.

summary of

21

With a deep commitment to Oregon’s prosperity and long term economic growth, we are submitting the Oregon Innovation

Council’s 2009 Oregon Innovation Plan.

In 2005, with the inception of the Oregon Innovation Council, the Legislature and the Governor made clear the mandate

for the council: to develop, champion and implement an ongoing set of strategic initiatives that would leverage and harness

Oregon’s strengths to tap into expanding global markets. The heart of our council’s work is the belief that applied innovation

drives competitiveness.

These initiatives, if successful, would attract outside investment capital, create new companies, increase the state’s overall

competitiveness and grow family wage jobs in both our rural and urban communities.

We put in place a public and transparent process that (1) allowed the best ideas for Oregon growth to emerge; (2) defined a

way-of-doing-things that leveraged in each of the initiatives a partnership between government, private industry, not-for-profit

organizations, our community and the universities to create new innovation-driven new opportunities and (3) focused on

implementation, monitoring results and tying on-going funding to deliverable results.

Working together, we grew to understand what a profound responsibility we had been given: the investments we make today

are building a foundation for the prosperity of Oregon’s next generation. Our 2009 Plan is the product of a hard-headed

analysis of accomplishments and lessons learned to date, and a competitive process that calls for existing initiatives to reach

higher and provides a jump-start for new ones. It also reflects an increased emphasis on the relationship between initiatives—

strengthening Oregon’s innovation ecosystem.

As we submit this plan, the economy of our state (and the nation) has shifted, taking a decidedly more ominous turn. We

anticipate leaner budgets and tighter purse strings in the public and private sectors going forward. However, we believe that

investing in work that generates growth and results—finding better ways to grow, employ, power, feed and train our

communities—is a part of a balanced strategy for our economy. As we focus on the near term budgetary challenges and

realities, we need to carve out a small but highly leveraged investment in the future. This recession will end, and when it does,

we want to make sure that Oregon has the ability to grow with the upward momentum of a recovering economy.

We believe the Oregon Innovation Plan is one of the state’s most important economic initiatives, uniquely leveraging Oregon’s

natural resources, industrial base, investor community, research and development networks, and the talent and

commitment of so many Oregonians. We trust that you will find the overall plan a compelling roadmap to a world-class

innovation economy and a prosperous Oregon future.

David Chen, Chair

Oregon Innovation Council

Corrective Process Summary

Corrective Process SummaryIn the event that an initiative funded through Oregon InC fails to perform as expected, the Audit and Accountability Committee has established the following corrective action process:

• If an initiative is not meeting the performance measures established in the contract, the Oregon InC designee on the initiative’s board of directors notifies the Audit Committee in the quarterly report.

• The Audit Committee provides the initiative a timeframe for addressing problem issues, informs the Oregon InC Executive Committee, and works with the Oregon InC board designee to develop a remediation plan.

• The Oregon InC Executive Committee notifies OECD Commission if any initiative is under-performing and briefs the commission on the plan for resolution.

– Corrective Action Step #1 (informal): Audit committee advises the initiative on the corrective action to be taken, including a deadline by which the actions must be completed. Liaison monitors and reports back.

– Corrective Action Step #2 (formal): If the initiative continues to be non-compliant, the Audit Committee can recommend (in writing) to OECD Commission that funding be suspended. Also must notify initiative of this recommendation. A formal remediation plan is then developed by the Audit and Accountability Committee. At any time after written notification of termination, funding can be recommended; final determination is made by OECD Commission.

• Oregon InC and the OECD Commission jointly notify the Legislature (via the appropriate interim committee) of the decision to terminate funding should this become necessary. At the end of the biennium, any unexpended funds would be returned to the Legislature.

The members of the Audit Committee include:

John Morgan (Chair), CEO, HemCon Medical Technologies Inc.

Michelle Girts, EnTranRight, LLC

Steve Stadum, Chief Administrative Officer, OHSU

Sheila Martin, Director, Institute of Portland Metropolitan Studies

Ryan Deckert, President, Oregon Business Association

Senator Betsy Johnson

Senator Frank Morse

Representative Vicki Berger

Representative Tobias Read

20

Audit and Accountability Members &

Appendix B

Solar takes center stage

Connectivity is a key goal of the 2009 Innovation Plan and that connectivity

is best showcased in the synergy between ONAMI and Oregon BEST in their

work with solar energy technology. Oregon BEST was originally designed to

both build on Oregon’s existing international reputation as a leader in

renewable energy and leverage ONAMI’s technology platforms. It has worked

seamlessly to help take ONAMI technology platforms from traditional

industry sectors to new renewable energy partners.

In the case of solar energy, both are working together to make Oregon a

leader in solar manufacturing and next generation solar technology research.

ONAMI provides the research and technology in solar energy materials, and

Oregon BEST helps take those materials and integrate them into solar energy

systems. While this might seem like a nuanced point, the reality is without the

work of both ONAMI and Oregon BEST we are only addressing half of the

industry needs and wasting Oregon’s opportunity to be a leader in today’s

renewable energy market but also poised to take advantage of future

renewable energy needs.

Appendix AOregon InC Members

and their affiliations

Voting MembersDavid Chen (Chair), Equilibrium Capital Group LLC

Ryan Deckert (Vice Chair), Oregon Business Association

Rich Bader, EasyStreet Online Services

Matt Donegan, Forest Capital Partners LLC

Mark Edlen, Gerding Edlen Development

Randall Edwards, Oregon State Treasurer

Tim McCabe, Oregon Economic and Community Development Department

John Morgan, HemCon Medical Technologies Inc.

Terry Oftedal, YoCream International

George Pernsteiner, Chancellor, Oregon University System

Camille Preus, Oregon Community Colleges

Steven Stadum, Oregon Health and Science University

Fred Ziari, EZ Wireless and Engineering & Technology Industry Council

Non-Voting Members: Legislators and Ex-OfficioRepresentative Vicki Berger, State House District 20

Senator Betsy Johnson, State Senate District 16

Senator Frank Morse, State Senate District 8

Representative Tobias Read, State House District 27

Ann Bunnenberg, Electrical Geodesics, Inc.

Kirby Dyess, State Board of Higher Education

Kevin Matheny, Oregon Independent College Foundation

Wally Van Valkenburg, Stoel Rives and Oregon Economic & Community Development Commission

Duncan Wyse, State Board of Education and Oregon Business Council

Technical AdvisorsDavid Almodovar, Credit Suisse

Pat Becker Jr., Becker Capital Management

Chandra Brown, Oregon Iron Works

Bill Campbell, Ater Wynne

John Cassady, Oregon State University

Scott Dawson, Portland State University

Jon DeVaan, Microsoft

Dan Dorsa, Oregon Health and Science University

Steve Eichenlaub, Intel Capital

Steve Emery, EartH20

Bill Feyerherm, Portland State University

Don Gerhart, University of Oregon

Michelle Girts, EnTranRight LLC

Gordon Hoffman, Northwest Technology Ventures

Ilene Kleinsorge, Oregon State University

Donald Krahmer, Jr., Schwabe Williamson & Wyatt

Rich Linton, University of Oregon

Sheila Martin, Portland State University

Bill Newman, Northwest Technology Ventures

Rod Quinn, Pacific Northwest National Laboratory

Steve Rice, Umpqua Bank

Adrian Roberts, Battelle

Tom Sass, Gunderson

Tim Stout, Oregon Health and Science University

Rick Warren, IBM

John Wilson, Beef Northwest

19

Contents

Executive summary ..........................................................i

Section 1: Innovation Plan 2.0 .........................................1

Section 2: Strategic intent ..............................................13

Section 3: How we arrived here:

Oregon InC’s first biennium ..........................................15

Appendix A: Oregon Innovation Council Members ......19

Appendix B: Corrective process summary ......................20

Appendix C: Summary of proposed funding .................21

Oregon’s innovation economy in a nutshell

Key industries:TheleadingindustriesthatdrivemuchofOregon’semploymentandincomegrowthincludetraditionalmanufacturingindustriessuchaswoodandpaperproducts,transportationequipment,machinerymanufacturingandmetals,andnewtechnologysectorssuchassemiconductors.Withintheservicesector,professional,business,educationandhealthcareservicescontinuetodrivehighemploymentandwagelevels.Source:OECDDAnalysisusingEmploymentDepartmentData

Trade:Oregonistheninthmosttrade-dependentstateinthenation,withexportstotaling$16.5billionin2007.Thestate’smajortradingpartnersareCanada($2.8billion),Japan($1.5billion),China($1.4billion),SouthKorea($1.3billion),Malaysia($1.1billion)andMexico($954million).Ofthenearly4,200companiesthatexportedgoodsin2006,88percentweresmall–andmedium–sizedenterprises.Source:OfficeofTradeandIndustryInformation,InternationalTradeAdministration,U.S.DepartmentofCommerce

Research and development (R&D):WhileacademicR&DexpendituresinOregonhaveincreasedoverall,thestateandlocalgovernmentshareoftotalacademicR&Dfundinghasbeendecliningsince2001.Whilemoststateshaveexperiencedadeclineinthestateandlocalgovernmentsharesoftotalacademicfunding,15statesincreasedtheirsharebyanaverageofonepercentagepointduringthesameperiod.Source:NationalScienceFoundation,AcademicR&DExpenditures

Venture capital:Afterseveralyearsofmodestventurecapitalinvestment,Oregonsawalargeincreasein2007.Since2004,Oregon’saverageinvestmentperventurecapitaldealhadsteadilyrisenfrom$4.6millionperdealto$7.5millionperdeal.WhileOregonattractslowerlevelsofventurecapitalthatneighboringandcompetitorstates,Oregon’spercentageoftotalventurecapitalinvestmentintheU.S.grewtonearrecordlevelsin2007.Source:PriceWaterhouseCooper,NVAC,MoneyTreeReport

Job growth:Oregon’sseasonallyadjustedjobgrowthwasessentiallyflatfromAugust2007toJuly2008(-0.1%).Thestate’sunemploymentrateinAugust2008was6.5%(themostrecentmonthforwhichdataisavailable),thehighestithasbeensinceJanuary2005.Source:OregonEmploymentDepartment

Wages:In2006Oregon’saveragewagewasapproximately$37,000peryearcomparedtotheUSaverageof$42,000.Since2000,Oregon’srealaveragewagehasremainedrelativelyflat.Asaresult,Oregon’spercapitaincomeasashareoftheUSpercapitaincomehasfallensignificantlysince2000.Source:OregonEmploymentDepartmentandBureauofLaborStatistics

18

Table of

Oregon’s key economic assets

• A rich and diverse natural resource base.Oregon’sproductiveforestsandunusuallydiverseagriculturalsystemssupportathriving$2.2billionvalue-addedexportmarket,whilethestate’sexceptionalhydropowerresources,abundantwindandsunshine,andpowerfuloceancurrentanchoragrowingportfolioofrenewableenergytechnologies,productsandservicesatatimewhenworldwideenergydemandisskyrocketing.

• Strong public research and education institutions.TheOregonUniversitySystemboastsdistinguishedresearchersforgingpublic-privatepartnershipsinsectorssuchasnanotechnology,waveenergyandbio-basedproducts,andtop-notchfacultytrainingthenextgenerationofinventorsandentrepreneurs.TogetherwiththePacificNorthwestNationalLaboratory,1theseinstitutionspromoteinnovationandentrepreneurshipinOregonindustriesandprovideeducationalresourcesandlearningopportunitiestostudents,firmsandcommunitiesalike.

• People.Oregonmaintainsadeepbaseoftalentinmanykeyindustries,includingmanufacturing,energyandnaturalresourcemanagement,andinformationandcomputertechnologyresearch,designanddisplaysystems.Thistalent,togetherwithaculturalpenchantforsustainability,afrontierorientationtowardentrepreneurship,andopennesstonewideasandwaysofdoingthings,makesOregonianscentraltothestate’sinnovationagenda.

• A distinctive industrial base. Whilemanufacturingisimportantinmanystates,Oregon’suniquemixofmetals,machinery,transportationequipment,woodproductsandsemiconductormanufacturershaveseenjobgrowthinrecentyears,evenasthemanufacturingindustryasawholewasexperiencingsignificant,structural,joblosses.Ournichesectors—athleticfootwear,creativeservices,design,organics,recreationequipmentandapparel,opensourcetechnologies,andevenbreweriesandbottlers—havenotonlycreatedjobsbutputOregononthemapof“placestobe”fortheirrespectivenationalandinternationalcommunitiesofinterest.

1 AlthoughthePacificNorthwestNationalLaboratory(PNNL)islocatedinRichland,Washington,itsresearchers,scientistsandsupportstaffregularlycollaboratewithstakeholdersallovertheNorthwest.

Section 3

The Innovation Council developed an open application process in which industry partnerships could request support for projects that advanced the council’s objectives. Once the initiative proposals were accepted, an Audit and Accountability Committee was established to manage fund transfer, track performance on a quarterly basis, provide access to technical assistance, and insure overall accountability. The committee also established a multi-step corrective action procedure for initiatives that are not able to achieve planned performance targets. This process is described in Appendix B.

During the first year, all Oregon InC initiatives were required to include an Oregon Innovation Council member on their governing boards. The Signature Research Centers were required to include both an Oregon Innovation Council member and an Oregon legislator on their board. Finally, all projects submitted both narrative performance reports and fiscal status summaries on a quarterly basis.

The innovation agenda is not simply a new program or initiative; it is a commitment to Oregon’s economic competitiveness, and the promise of opportunity for our next generation.

Creating the Oregon Innovation Council was a bold expression of confidence in the ingenuity, tenacity, and collaborative orientation of Oregon’s people.

They did not disappoint.

In the three years since Oregon InC was established and given the responsibility for stewarding the first Oregon Innovation Plan, our members have engaged, advised and supported some of the most ingenious minds, capable hands and collaborative spirits we have ever encountered. We are awed by their commitment to excellence, and humbled by their dedication to our state’s prosperous future.

As this plan demonstrates, Oregon InC has recommended a sound package of strategic investments that promise to deliver both tangible economic benefit—jobs and economic growth—across the state, and the capacity to repurpose, reinvent and reimagine our economies and communities over and over again.

The Oregon Innovation Council’s mission is to

expand markets for Oregon

companies, create jobs across

the state and leverage Oregon’s

strengths to compete in the

global economy.

17

At its heart, innovation is the ability to generate value by doing old things in new ways, or by doing entirely new things.

Innovation is the new “currency of competition” for industry and government. Innovation inspires workers and customers, makes businesses more competitive and creates new—and better—jobs.

In 2005, the Governor and the Legislature put Oregon ahead of the curve when they worked with innovation leaders from across the state to create the Oregon Innovation Council (Oregon InC).

A year later, Oregon InC boasted more than 50 senior executives, university leaders, venture capitalists and legislators, and with support from the Oregon Economic and Community Development Department. Oregon InC saw itself as a catalyst for innovation. It sought to play a critical role in convening industry leaders, practitioners, researchers and investors, cultivating a sort of innovation ecosystem; and investing in ways that increase the state’s overall innovation capacity.

In 2007, the Oregon Legislature approved a $28.2 million package that included investments in seven programs supporting innovation in established and emerging industries, including operating support for three Signature Research Centers.

In launching the first Innovation Plan, state leaders adopted five

positions that were crucial to the plan’s success:

1) A comprehensive definition of innovation that avoided a narrow focus on technology-transfer or commercialization efforts alone

2) A goal of increasing the state’s capacity for innovation—the ability to innovate not once, but over and over again, across all industries and diverse Oregon communities

3) A focus on Oregon’s key, hard-to-replicate assets—specialized capacity in critical industries, top-notch talent, diverse natural resources and a culture that values collaboration

4) The ability to leverage additional resources, investing in efforts to increase connectivity or address strategic gaps, rather than support a host of disparate efforts; and

5) Balance—between existing and emerging industries,

between incremental and disruptive innovations, and between short–, medium– and long–range develop-ment efforts

Oregon’s leaders also avoided the “experts-only” model of innovation, boldly committing to the idea that innovation is the job of every Oregonian.

Results and lessonsBy nearly all measures, the inaugural 2007 Oregon Innovation Plan was a success. In the short time since the initiative was launched, it has:

• Attracted $23.7 million in new federal grants and contributions to the state

• Leveraged $36.7 million in industry resources (cash, staff, equipment, facilities and other support)

•Launched 10 new companies—all spun out of research, development and commercialization efforts

It also offered three major lessons to carry into the future.

First, cultivating innovation takes time. Most innovations are the result of many small discoveries over time, rather than a single “Eureka!” moment. HemCon Medical Technologies, for example, was founded in 2001—with funding from the US Army—as it launched the HemCon© Bandage, a breakthrough life-saving technology that employs chitosan2 to promote blood-clotting in cases of severe arterial bleeding common in combat situations. The firm’s products have penetrated accident, trauma and first-responder units, medical and dental offices, and even over-the-counter markets. Today, HemCon Technologies is a world leader in chitosan research and development, and has won numerous industry awards and accolades. But even this meteoric rise took seven years, after company founders Dr. Kenton Gregory and Dr. Bill Wiesmann had spent a combined seven decades becoming degreed professionals and

Section 3 “In our review of state-based innovation efforts, we found stars in unexpected

places. Oregon, for example, has made a firm commitment to innovation by

launching the Oregon Innovation Council and subsequent Innovation Plan.”Chris hayter, Program DireCtor, NatioNal goverNor’s assoCiatioN

Oregon’s Signature Research Centers

AcriticalaimoftheOregonInnovationPlanistoimproveOregon’sinnovationcapacitybyconnectingthestate’suniversity,industryandgovernmententerprisesinwaysthathelpOregoncompeteeffectivelyinkeyemergingindustries.OurinvestmentinthreeSignatureResearchCentersthatbuildonouruniversityandindustryexpertise,environmentalassetsanduniquetalentisthecenterpieceofthiscapacitybuildingeffort.

• TheOregonBuiltEnvironmentandSustainableTechnologiesCenter(BEST)deployssustainabletechnologiestoconserveandrenewenergy,anddevelopmaterialstoenhancethebuiltenvironment.

• TheOregonNanoscienceandMicrotechnologiesInsti-tute(ONAMI)putsnanotechnologyandmicrotechnologytoworkinelectronics,energygeneration,environmentalconservationandmedicaldevices.

• TheOregonTranslationalResearchandDrugDevelopmentInstitute(OTRADI)screenscompoundsandsupportsthecollaborativedevelopmentofpharmaceuti-calsthatfightinfectiousdiseases.

ThethreeCentersfunctionsasresearchanddevelopmenthubs,andconnectorsofindustry,universityandcommunitypartners.Followingwhatweknowtobeexemplarypractices,thesecentersfollowathree-stagedevelopmentprocess:

• Research and development—includingtheconstructionoffacilities,buildingoftechnologycapacityandcultivationoftalent

• Outreach, application and discovery—focusedonconnectingideasandtechnologiestoreal-worldproblemsandforgingcross-disciplinaryandcross-industrypartnerships

• Commercialization—takingnewtechnologiestomarketintheformofnewproductsandservices,andthelaunchofnewenterprises

Whiletherolesofpartnersandlevelofinvestmentchangeovertime,thelongviewisessentialtothesuccessofthismodel.Wearenotjustinventingnewwidgets.Weareadvancinghumanknowledge,cultivatingsustainableenterprisesandcreatingtomorrow’sinnovationindustries.

• Signature Research Centers

− The Oregon Built Environment and Sustainable Technologies Center (BEST). A $2.5 million seed grant to accelerate cutting-edge research in sustainable technology areas like green building, renewable energy systems and bio-based products.

− The Oregon Nanoscience and Microtechnologies Institute (ONAMI). A $9 million investment in the state’s first Signature Research Center to support the commercialization and applications of the center’s technologies across a range of industries.

− The Oregon Translational Research and Drug Development Institute (OTRADI). A $5.25 million seed grant to provide development, commercialization and business support to small firms engaged in drug research and product development aimed at infectious diseases.

Also included in the plan were two regulatory changes designed to increase the availability of capital to help Oregon firms grow:

•Senate Bill 582 enabled universities in Oregon to solicit tax-credit eligible donations to establish university venture funds

•Senate Bill 579 expanded the right of the Oregon Growth Account Board to make early-stage investments in emerging Oregon firms

AccountabilityFrom the moment the Oregon Innovation Council was established, members began to build a culture of trust, transparency and accountability. Each member of the council—and the state staff dedicated to supporting them—understands and takes seriously her or his responsibility to invest limited state resources wisely and in ways that maximize the benefits of innovation in Oregon industries, firms and communities.

i16

Executive Sum

mary

Why innovation?

2 Aderivativeofachitin,apolymer(foundontheexoskeletonsofshellfish(shrimp,crab,lobster,etc.).

ii 15

Section 3

Duetothepotentialconflictsoveroceanuse,OWEThelpedtoorganize,fundandstaffthreecommunityworkinggroupsontheOregoncoast.TheseworkinggroupsareincreasingthedialogueaboutwaveenergybetweenthestakeholdergroupsandcreatingameaningfuldialogueaboutthebenefitsofawaveenergyindustryinOregon.

experts in their respective fields of practice. Our charge as the Oregon Innovation Council is to create an environment that makes stories like HemCon’s more likely, more often. This calls for time and patience.

Second, as with any investment strategy, diversification is important. No one knows ahead of time what value new discoveries will bring. But balanced investing is key.

• Balanced across different time horizons. Investments

focused on improving how existing firms in key industries work are likely to result in a steady stream of jobs created or retained, and incremental industry growth, with occasional high-value breakthroughs. Investments focused on Signature Research Centers are likely to generate matched funds and patent applications in the short–term, with new technologies, firms and jobs created over a longer period of time as new research is commercialized.

• Balanced value across existing industries as well as new ideas. The Innovation Council’s job is not to “pick winners” but we understand that particular innovations will impact some of Oregon’s key firms and industries more than others. We have made every effort to balance investments in innovation and technology likely to benefit Oregon’s current industries (e.g., manufacturing) with those likely to seed emerging industries with the potential to increase the state’s overall competitiveness in the future (e.g., sustainable technologies).

• Balanced benefits across the state’s diverse communi-ties. While Oregon’s population is concentrated along the I–5 corridor, its economic and environmental assets are not. The council is committed to using its invest-

ments in innovation to connect disparate parts of Oregon around a common innovation and prosperity agenda. The map on page iii illustrates the benefits Innovation Council invest-ments have already delivered to Oregon communities.

Third, community engagement is crucial. The Oregon Innovation Council’s job isn’t to control how Oregon innovates. Its job is to raise awareness of innovation efforts, invest in ways that connect

more industries, firms, individuals and communities to these efforts, and accelerate the benefits for everyone—helping more firms and communities capitalize on the value of innovation wherever it comes from.

Perhaps most significant, the most important lesson is that a new kind of leadership makes innovation possible—leadership that uses convening, conversation and collaboration as its tools.

Innovation policy today is about trusted partners making catalytic investments of resources—money, time, expertise and drive—in specific activities that have a positive effect on the wider economy. Where there are highly networked, cross-disciplinary clusters of talent and technology, innovation policy-makers can be powerful agents of change.

Oregon’s new innovation partnerships—comprising government, universities and industry—reflect this new understanding of leadership:

• Universities serving as research engines, developing new ideas and technologies and preparing the talent to deploy them in Oregon industry.

• Industry developing and deploying new technologies by launching new products and services for the global market, or by building entirely new firms and industries—increasing exports and creating new Oregon jobs.

• Government as an enabler, developing supportive tax, regulatory and incentive policies, as well as a convener and connector.

These are the building blocks of the innovation ecosystem we imagined in 2006 and are building in 2009.

BackgroundIn 2005, the Governor and the Oregon Legislature, together with innovation leaders from across the state, created the Oregon Innovation Council (Oregon InC), challenging this new partnership to craft the state’s first innovation strategy.

In 2006, Oregon InC boasted more than 50 senior executives, university leaders, venture capitalists and legislators. With support from the Oregon Economic and Community Development Department, they created an innovation framework, defined its objectives, and developed and implemented a competitive process that resulted in the state’s inaugural Innovation Plan.

Oregon InC saw itself as a catalyst for innovation. It sought to play a critical role in convening industry leaders, practitioners, researchers, and investors, cultivating a sort of innovation ecosystem; and investing in ways that increase the state’s overall innovation capacity.

Oregon’s first Innovation PlanIn 2007, the Oregon Legislature approved a $28.2 million package that included investments in seven programs supporting innovation in established and emerging industries, including operating support for three Signature Research Centers:

• The Food Processing Initiative—A $3.43 million investment in helping Oregon food producers pioneer new processing and packaging technologies aimed at expanding markets and retaining jobs.

• The Manufacturing Competitiveness Initiative—A $2.87 million effort to expand the Oregon Metals Initiative matching grant program and increase research and development capacity at Portland State University, and improve collaboration around manufacturing across the Oregon University System.

• The Seafood Industry Initiative—A $900,000 investment in seafood harvesting and processing technologies aimed at maximizing economic returns for the industry while preserving the marine environment.

• The Wave Energy Initiative—A $4.2 million seed grant to help Oregon develop a first-in-the-nation network of offshore devices designed to carry ocean power to the electrical grid.

Executive Sum

mary

in·no·va·tion (i-n ´va-sh n) n. 1. The introduction of something new. 2. A new idea, method, or device.

e e˘

first bienniumHow we arrived here: Oregon Inc’s

iii14

Section 2

Improving Oregon’s innovation capacityThe Oregon Innovation Council’s charge is to improve Oregon’s innovation capacity. This means improving our state’s ability to cultivate smart people with good ideas, translate those ideas into new businesses, and grow those businesses. Innovation capacity is not about a single program or investment, but about the overall innovation ecosystem—how the parts work together to deliver a greater whole.

This biennium, Oregon InC offers two recommendations for improvement:

• Endorsing the Oregon University System’s recommendations of removing barriers and eliminating unnecessary processes for technology transfer agreements

• Improving Oregon companies’ access to federal research and business develop grants

Technology transfer agreementsCurrently, under Oregon Revised Statutes 190 and 191, the Oregon Attorney General (or authorized representative) must review and approve all inter-governmental agreements, including technology transfer agreements of more than $100,000—and those agreements must comply with all Oregon Department of Justice requirements.

While this is inefficient and slows the technology transfer agreements the state is otherwise working to accelerate, the more significant challenge is that the firms may not even en-ter into such agreements because of the review requirement.

Typically, a technology transfer agreement is negotiated after a partnership between a university lab (and its researchers) and a firm or firms (and its researchers) is long established. Sending an agreement that’s near completion to the Attorney General (who has not been involved in the project) undermines the relationship between negotiating parties. Further, when private sector partners learn this step is required, they may shy away from the very resources the

state has developed to support their growth and expansion. Finally, this is a very unusual requirement—there is no such parallel in most other states, and none in states with exemplary technology-transfer practices.

The Oregon Innovation Council recommends a review of this statue and associated practices, and hopes to work in concert with the Attorney General’s office and the Oregon University System to remove barriers and make Oregon a leader in technology transfer practices.

Accessing federal grantsOregon businesses are increasingly interested in federal grant programs to support research and development and commercializa-tion. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are key funding sources for firms looking to commercialize new technologies. The US Department of Agriculture’s Rural Business Enterprise Programs and the National Institute of Standards’ Technology Innovation Program offer additional resources.

The state provides limited support for firms applying for federal grants, but demand for these services had outstripped supply. Moreover, Oregon universities and some entrepreneurship support organizations offer advice, but these services are not well coordinated, and intelligence about the particular services offered by each is available only by word of mouth.

The Oregon Economic and Community Development Department (OECDD) has proposed an investment of $500,000 to increase the level of support the state can offer Oregon businesses seeking federal grants.

This investment would support staff, a coordinated marketing and outreach effort, and a small matching grant “bridge” program to help firms transition from Phase I to Phase II funding under the SBIR/STTR programs.

The Oregon Innovation Council supports OECDD’s proposal and recommends funding at the $500,000 level to demonstrate the state’s commitment to Oregon’s new knowledge-driven enterprises.

“Innovation—creating what is new and valuable—is not a narrowly defined

technical area of competence … rather, innovation emerges when different

bodies of knowledge, perspectives and displines are brought together.”JohN Kao, author of iNNovatioN NatioN

Executive Sum

mary

Oregon InC’s Statewide Impact

Potential companies to benefit from Oregon InC initiatives

ManufacturingCompetitiveness OceanWaveEnergy OregonBEST OTRADI FoodProcessing

1–5 5–10 >10 1–5 5–10 >10 1–5 5–10 >10 1–5 5–10 >10 1–5 5–10 >10

13

The Oregon Innovation Council’s initiatives represent a diverse portfolio of strategies to grow Oregon’s economy, retain existing jobs and create those that will shape our future. But at their core they represent an interconnected set of ideas that leverage Oregon’s commitment to becoming a leader in green, sustainable industries. As Oregon BEST helps foster research in renewable energy, OWET is making wave energy a reality. The Forest Initiative will help Oregon’s

timber industry ship products more cheaply and efficiently—which also is of critical interest to the state’s seafood industry and the thousands of jobs that depend on it. ONAMI’s successful model of commercializing research in nanotechnology will help OTRADI bring new disease-fighting medicines to the market. The ideas that drive the Oregon Innovation Council are working together to keep Oregon growing.

Section 2

Strategic intentIn all of these proposals, the Oregon Innovation Council’s goals remain those identified at the council’s inception:

• Increase wages for Oregon workers

• Create new, high-quality jobs for Oregon communities

• Cultivate a stronger research base capable of enabling innovation

• Increase the availability of venture, seed, and private and public

capital for Oregon entrepreneurs

• Increase high-value exports

• Grow and sustain high-wage jobs in the state’s rural areas, linked to key sectors

• Enhance Oregon’s reputation as a global leader in emerging industries including nanoscience, renewable energy, and bio-based products and sustainable technologies

• Make innovation the job of every Oregonian

These goals are bold and ambitious. But with one successful plan having generated solid results, we are confident that the model we have developed and put into practice is working and will achieve these bold results.

The proposed 2009 Innovation Plan also reflects important shifts in three areas:

• A better understanding of what we mean by sustainability. Sustainability has two dimensions. On the one hand, it refers to the ability of the Oregon InC initiative to sustain innovation itself, through fund development and commercialization of products, spin-offs and the creation of other revenue generators. On the other hand, as Oregonians, we maintain a strong commitment to environmentally- and socially-conscious business approaches that achieve “triple- bottom-line” results and not just profit. This too is sustainability. Both of these dimensions are better addressed in the 2009 Plan than its predecessor.

• A more sophisticated approach to government-university- industry (GUI) partnerships. Our experience with the Signature Research Centers in particular have provided a

deeper understanding of how to structure and support such efforts, and why they are so critical to our overall approach.

• A more systemic approach to the plan overall. This year, we were more intentional in connecting the initiatives in the plan with each other. Oregon Nanosceince and Microtechnologies Institutes’ (ONAMI) projects, for example, are under development in several of our key industries and firms partnering with other initiatives. This enables the investments and the technologies to leverage each other as well as resources generated outside, and helps us move closer to the innovation ecosystem we envisioned in 2006.

Finally, the Innovation Plan calls for the streamlining of technology transfer and supports the Oregon Economic and Community Development Department’s request to increase support for firms applying for federal grants like the SBIR/STTR (Small Business Innovation Research/Small Business Technology Transfer Research) programs.

The Oregon Economic and Community

Development Department recently

commissioned a study on the economic

impact of ONAMI, the first of Oregon’s

Signature Research Centers. Investigators

found that for every $1 received, ONAMI

has leveraged $5.30 in resources

coming into the state.

112

Section 1

To generate specific proposals for inclusion in the 2009 Innovation Plan, the council used a process similar to that used in 2006, inviting proposals from existing and emerging industries to support collaborative efforts aimed at the council’s goals.

Oregon InC received 17 proposals. After a rigorous review process, the Oregon Innovation Council recommends a package of $26 million in state resources be invested in five industry initiatives and the state’s three Signature Research Centers. This request is 32 percent lower than the prior funding request because previously funded initiatives have been largely successful in attracting additional resources, reducing their dependence on state resources and moving them toward sustainability.

Proposed Investment 1: ForestryOregon is the nation’s number one producer of lumber. Despite structural changes and cyclical ups and downs in recent years, the in-dustry supports more than 50 percent of traded sector employment in 15 of Oregon’s 36 counties. Recent efforts to combat climate change, combined with rapid development and an accompanying increase in the demand for wood products, have again raised the profile of Oregon forests as a critical economic (and environmental) resource.

The forestry industry has not received Oregon InC resources to date. This year, the industry submitted a proposal emphasizing research, technology and efficiency efforts. Oregon InC recommends this $2.6 million proposal for inclusion in the Oregon Innovation Plan.

The project focuses on three areas:

• Developing silviculture technologies to increase the productivity of the industry and raise the value of forest products as a result

• Improving transportation efficiency to reduce the cost of moving materials

• Transferring technology—the commercialization of new forest products

Innovation Plan 2.0

Proposed outcomesThe project’s investment in silviculture technologies will emphasize the integration of technologies developed in different labs and departments, and their widespread application in Oregon’s forests. The goal is to improve what we know about specific forest environments, so that we can maximize tree growth on those sites. This both increases the value of each tree and allows us to better target trees with particular characteristics for manufacturing into the kinds of products for which those characteristics are important. The project seeks to increase productivity of the sites engaged in the project by 20 percent, a value of nearly $1 million.

The project also targets improvements in transportation efficiency, including adjusting trailer, axle and packing designs and configurations to increase the value of each flatbed or container load, reducing overall fuel consumption by 15 percent, for a savings of $1.6 million.

Silviculture is the art and science of

controlling the establishment, growth,

composition, health and quality of forests

to meet the diverse needs of landowners,

industry and community simultaneously. Based

on the principles of forest ecology and

ecosystem management, silviculture is at the

heart of sustainable forestry.

Section 1

The Oregon Translational Research and Drug Development Institute (OTRADI)Oregon’s third Signature Research Center, the Oregon Translational Research and Drug Development Institute (OTRADI), was launched in 2007 with support from the Oregon Innovation Council. OTRADI’s focus is the commercialization of therapeutics, vaccines and diagnostics for the growing market of healthcare professionals and officials seeking to combat infectious diseases.

A partnership between university scientists and researchers, bioscience and pharmaceutical companies, and the state of Oregon, OTRADI’s intellectual foundation is the infectious disease expertise of more than 70 researchers and scientists in the state’s partner universities—Oregon Health Sciences University, Oregon State University, Portland State University and the University of Oregon.

The global infectious disease market, which was estimated at $38 billion in 2006, has significant unmet needs for new anti-infective drugs, including those needed to treat emerging threats and drug-resistant pathogens. With its

combination of $80 million in Infectious Disease research funding, more than 70 PhDs involved in infectious disease studies, and one-of-a-kind facilities such as OHSU’s Primate Center, Oregon is uniquely situated to meet the growing needs of the infectious disease market. OTRADI provides the previously missing components—a state-of-the-art translational facility, high-throughput drug screening and commercialization capabilities—necessary to translate Oregon’s university research into tomorrow’s drugs, vaccines and diagnostics. In addition, OTRADI is building a library of potential therapeutic targets and chemical compounds that show promise as future development opportunities.

As a drug commercialization accelerator, OTRADI fills a critical gap in Oregon’s drug development pipeline by providing state-of-the-art high-capacity screening to identify compounds with drug activity. For the first time, OTRADI provides Oregon research laboratories and companies with access to previously out-of-reach drug screening

and testing equipment as well as the expertise necessary to analyze results and quickly bring products to market. Researchers at Oregon universities and companies can leverage OTRADI’s cutting-edge world-class scientific equipment and expertise to, 1) attract more/new federal funding for drug discovery, 2) increase the speed, number and quality of scientific products commercialized in Oregon and 3) translate these licensable products into new Oregon-based biotech companies, resulting in a net increase in high-paying sustainable jobs. OTRADI adds intrinsic value to Oregon researchers’ scientific intellectual property, which will accelerate external licensing of products and advance business and job creation in Oregon.

Proposed outcomesBuilding on its initial progress, OTRADI proposes a next phase of development to focus on:

• Increasing the operational capacity of the Institute by adding

staff and recruiting new business

• Attracting new federal research funds to Oregon universities and firms

• Growing the Oregon Collection of unique chemical compounds

The Oregon Innovation Council understands that drug discovery and development is a lengthy process. And OTRADI has already demonstrated tremendous potential to accelerate it, targeting a service in demand for a market niche in which Oregon is uniquely competitive.

Oregon InC recommends an investment of $4.6 million for OTRADI’s next phase of development, to support its capacity to bring new drugs to market and new jobs to Oregon.

Select accomplishments of OTRADI 2006–08

• Incorporatedin2007,leasedfacilities(atPortlandStateUniversity)in2008,hiredthreescientistsandestablishedastate-of-the-arthigh-throughputdrugdiscovery&screeninglaboratorycapableoftestingmorethan10,000chemicalsadayfordrug-likeactivity.

• AssembledthefirstphaseoftheOregonCollection,alibraryoftherapeutictargetsanduniquechemicalcompounds,andcompleted

fourscreensforanti-malarial,anti-bacterialandanti-fungaldrug-likeactivity.

• Identifiedmorethan50novelchemicalsforpossibleuseinfightinginfectiousdiseases,includingMalaria,Staphbacteria,fungalinfectionsandfoodpoisoningcausedbyE.colibacteria.

The oregon

112

Section 1

Finally, the project will focus on innovation and com-mercialization of new forest products, conducting market assessments and user-focused research, providing technical assistance and offering a competitive grant program for new product development. The project expects a return of $1.2 million in market value.

Importantly, Oregon State University is a principal partner in the project. The university maintains relationships with more than 50 forest products firms, public agencies and research partners. Consequently, we expect the research and technology developments in this proposal to quickly penetrate not just the industry, but the entire forest-products supply chain.

Proposed Investment 2: Food ProcessingFood Processing is a $6.1 billion industry in Oregon, with 530 establishments employing 23,000 workers. Importantly, Oregon’s agricultural exports totaled $2.2 billion in 2007, up nearly 50 percent from the year before.

The Northwest Food Processors Education and Research Institute received $3.43 million from the Oregon Innovation Council in 2007. The Institute established an Innovation Productivity Center (IPC) that provided technical support and training to food processing firms, and cultivated research and development and workforce strategies to ensure the industry’s competitiveness in the future. In the past two years, it has made solid progress, consistently achieving planned milestones.

The Oregon Innovation Council recommends an additional $2.7 million be invested in the project to support its next phase of development. The project will increase its focus on innovation activities and will continue to address productivity with innovative solutions and approaches.

Building on its success in developing and implementing an innovative productivity improvement process, the project proposes to engage ten or more new firms per year. The project intends to reduce the cost of goods sold by those firms by two to five percent and to assist industry to create new occupations in continuous improvement and energy management.

The project will advance innovation in three ways: first, by implementing its innovation continuous improvement workshop in partnership with the Food Innovation Center; second, by aggressively pursuing both the use of new technologies and open-source innovation and collaboration across the industry; and third, through delivery of a new training tool developed by the IPC for Oregon food cluster innovation.

WhenanOregonfoodprocessingcompanywasfacingtremendousfinancialproblemstheyturnedtotheInnovationandProductivityCenter(IPC)forhelp.IPCwasabletoprovidethemwithaproductivityimprovementauditandprovidedthatcompanywithestimatedsavingsofmorethan$100,000permonth.Now,thatcompanyisonitswaytostablefooting.

Section 1

In addition, ONAMI will enhance its support of shared user facilities through the addition of a High Tech Extension Director position This position will coordinate outreach to Oregon industry on behalf of the shared user facilities, with the goal of growing the level of collaboration between the Universities and industry, and growing the customer base for the facilities. ONAMI will continue to provide critical proposal matching grant dollars to Oregon researchers to bring crucial federal research dollars into Oregon.

ONAMI provides a unique asset for the state in retaining, expanding and recruiting new companies to the state. As stated earlier, companies around the globe are moving their research and development activities out of their internal research centers and are partnering with universities. The companies that we are attracting to the state want to see a direct link between industry and the university system. ONAMI provides this direct link, in addition to the state-of-the-art equipment that is housed within its shared user facilities.

For the 2009–11 biennium, ONAMI proposes to:

• Attract $60 million in federal grants and private research dollars to Oregon

• Leverage $15 million in philanthropic contributions, primarily new donated equipment and expanded facilities

• Raise $20 million in private capital as a result of the gap fund program for new companies

• In addition, ONAMI expects job growth among new firms

already launched as well as the launch of up to 6 new firms (for a cumulative total of 20)

Oregon InC recommends an investment of $6.825 million to continue ONAMI’s important work, and support expansion into new areas.

Select accomplishments of ONAMI 2006–08

• Launched10newstart-upcompaniesbycommercializingtechnologyorprovidingtechnicalassistanceandresearchsupport.Threeofthesecompaniesareventure-ready.

• Attracted$21.6millioninfederalfundingtoOregonandleveraged$32.5millioninprivateinvestments.

• SupportedtheUniversitiesinrecruiting5ONAMISignatureFacultyFellows,bringingadditionalworld-classresearchersandtheirworktoOregon.

• PlacedOregononthenationalnanotechnologymapbytestifyingbeforeCongressonfederalnanotechnologypolicy,andtalkingaboutOregon’snanotechnologyresourcesatindustrygatheringsacrossthecountry.

OHSUVAmedicalresearcherDr.MartySmilksteinhasbeenconductinganti-malarialresearchforyears,butafterusingOTRADI’sstateoftheartequipmentandscreeninghisworkagainstotherOregonresearchers’work,hefound8newandunexpectedanti-ma-larialhits.Thisnewinformation,bornoutofOTRADI’swork,allowedMartytoreceiveover$600,000fromtheGatesFoundation.

310

Section 1

In particular, technology efforts will emphasize:

• The transfer of energy saving and green technologies from the

food processors towards new energy occupations in energy management, renewable energy technicians and new energy management technology;

• Sustainability—reducing water and other natural resource consumption, integrating non-thermal processing technologies, implementing ultra efficient transportation and product distribution methods and improving food safety; and

• Business support and workforce development strategies to recruit and retain firms, and respond effectively to food processors at risk from regulatory and economic challenges.

Importantly, the project will not just provide services, but document the methodologies and processes it uses so they can be disseminated and used by firms as needed, independent of the IPC.

Proposed outcomes• New partnerships with research centers, universities and

colleges, environmental and energy organizations, and other sectors that are linked to the food processing clusters (e.g. transportation)

• An annualized savings of $8.7 million for 45 food processing

firms that complete the IPC continuous improvement process

• $1.97 million in leveraged support from a combination of public and private organizations and institutions

Select accomplishments of Oregon’s InC’s Food Processing Initiative 2006–08

• Developedaninnovativeplan,fundedbyU.S.DepartmentofEnergyandNorthwestEnergyEfficiencyAlliance(NEEA)forthefoodprocessingclustertobethefirstindustry-sectorinthenationtoadoptthegoalofreducingenergyutilizationby25%in10years.

• Broughtout-of-statefederalR&Dfindings,throughanindustrydriventaskforce,tonewOregonscientificprojects,suchasquickdetectionofListeriapathogenandenergyefficiency.

• InstitutedGreenEnergyManagementSystem(GEMS)inOregonmanufacturingplantstoassistwithenergyefficiencyandgreenhousegasmanagement.

• LocatedafoodindustryscientificofficeattheFoodInnovationCenterandareactivelyworkingonprivate-publicinnovationandtechnologyco-sponsoredevents.

• Educatedandworkedwithmorethan30Oregonfirmsonaproductivityimprovementprocessinthefirsttwelvemonthsofactivity.

Oregon Nanoscience and Microtechnologies Institute (ONAMI)Oregon’s first Signature Research Center, the Oregon Na-nosciences and Microtechnologies Institute (ONAMI), was launched in 2003. In five short years, it has grown into a nationally recognized initiative, and was recently identified by the President’s Council of Advisors on Science and Technology (PCAST) as an example of the kind of innovative partnership that can successfully bridge the gap between basic research and market commercialization.

Established as a not-for-profit 501(c)(3) organization, ONAMI offers:

• Opportunities for deep collaboration among scientists at all four Oregon research Universities and the Pacific Northwest National Laboratories. ONAMI’s collaborative environment not only provides talented individuals access to world-class colleagues and research facilities, but enables our region to build highly competitive research teams that are attracting federal dollars and private investment. Numerous analyses—and the university officials themselves—have praised the unusual collaborative environment that the ONAMI partners have been able to build

• A “gap” fund to support commercialization of Oregon-based technology in collaboration with entrepreneurial

startups and private investors. The fund’s stated objective is to leverage private capital, and position companies for job-creating revenue growth

• A high-tech extension service that makes state-of-the-art campus facilities available to university researchers and (at market rates) private companies of all sizes

The organization is guided by an active board of directors—most of its members from the private sector—and proven executive leadership.

Section 1

Proposed outcomesONAMI has vastly improved Oregon’s competitiveness in nano-science and micro-technologies, supporting successful research advances and technology commercialization. Research and commercialization efforts have been particularly successful in the fields of nanostructure materials, biomaterials, alternative energy technology, green chemistry and green nanomanufacturing.

This biennium, ONAMI proposes to accelerate commercialization and business growth in its current areas of specialization, and advance materials research and device technology development in areas of interest to Oregon’s emerging solar energy and renewable fuels industries. While renewable fuels have been volatile in the short-term, their long-term outlook is strong. Oregon faces a once-in-a-generation opportunity to become a leader in the global photovoltaics and solar power industry, creating jobs not just in photovoltaics technologies, but in the plants that design and manufacture them and the service industries that install and support them.

ONAMI will expand the very successful commercialization gap-funding program to enable more Oregon technologies to be commercialized by Oregon companies.

WhenOregonStateUniversityProfessorGoranJovanovichdiscoveredamicroreactortechnologythatcouldvastlyacceleratetheproductionofbiodieselfuel,hewenttoONAMIforhelp.ONAMIassembledateamofadvisorsandprovidedaninitialgranttotransformtheideaintoaworkingmodel—andMTEK,Jovanovich’snewventurewasborn.NowMTEKisincubatingatONAMIandpreparingforanunveilingdesignedtoattractinvestors.

4

Section 1

9

WhenBoeingwaslookingforanewtitaniumalloythatcouldwithstandhightemperatures,theywenttothePSUMaterialsandManufacturingResearchInstitutetousetheirspecializedequipment.PSUinturn,modifiedtheirequipmenttothespecificheattreatmentspecificationsthatBoeingneededandconductedtheresearch,givingBoeingthenecessaryinformationforanewmaterial.

Section 1

Select accomplishments of Oregon BEST 2006–08

• Receiveda$75,000grantfromMeyerMemorialTrustanda$250,000commitmentofresourcesfromtheOregonUniversitySystemtosupportBEST’soperationalinfrastructureandresearchanddevelopment.

• Providedseedgrantsfor10universityresearchprojects,includingfoursharedequipmentacquisitions,togrowOregonBEST’sresearchnetworkandengageinterestedfaculty.Developingstrategyforadditionalcapacity-buildingequipmentandlabeinfrastrcutureinvestmentstoenableOregonfacultytomoreeffectivelycompeteforoutsideresearchfunding.

• HelpedPSUgreenroofresearchersDavidSailorandGraigSpolekdoubletheirOregonBESTseedgrantintheformofa$150,000grantfromtheU.S.GreenBuildingCouncil.

• AssistedinOregonEconomicandCommunityDevelopmentDepartment(OECDD)effortstorecruitsolarenergyandmanufacturingfirmstoOregon.

In addition, BEST is helping to recruit solar manufacturing and other clean technology firms to Oregon by connecting industry partners with Oregon’s faculty expertise and laboratory resources. This accelerates the time-to-market for these firms, and provides a local resource for solving the inevitable technical challenges new ventures (in new industries) face.

Proposed outcomesGoing forward, Oregon BEST proposes to focus on building collaborative partnerships and attracting new business support resources to the state.

Specifically, Oregon BEST will:

• Cultivate inter-university collaboration for research in solar

energy, green building products and services, biofuels, biomass energy, bio-based products and other renewable energy technologies to identify opportunities for joint development and commercialization efforts

• Enable university faculty to attract significant federal, foundation, and industry funding for research projects that will build Oregon’s capacity to attract and support new and existing companies that will be the core of Oregon’s success as a leader and exporter of sustainability technologies and deployment models

• Launch a “gap grant” program (similar to ONAMI’s) that will help attract private capital to firms with sustainable products, services and technologies, accelerating the commercialization process and preparing these firms for growth

• Establish a premier research hub for solar energy, biofuels/biomass, and green building technology firms that will help Oregon continue to grow companies in these industries while supporting innovation that makes renewable energy increas-ingly cost-competitive and green building more ubiquitous.

Oregon BEST is building on Oregon’s international reputation as a leader in sustainability and renewable energy—in the commercial and retail environments, in the public sector, and within the state’s regions and communities. The center has established a clear technol-ogy/research focus, created specific programs for engaging industry and universities in collaborative activities, and defined a compel-ling value proposition for its key partners. The Oregon Innovation Council recommends an investment of $3.525 million to help it advance the state’s economic development and renewable energy goals in the 2009–11 biennium.

Proposed investment 3: ManufacturingOregon’s manufacturing industry is the backbone of the state’s economy, employing more than one in ten Oregon workers and paying up to 35 percent more than the state’s average wage. The industry is large, diverse and innovation-driven. But like their peers elsewhere, Oregon manufacturers are facing competitive pressures—low-cost Asian producers, increased transportation and raw-material costs, the integration of new technologies, and the need for a leaner, more skilled workforce.

The Oregon Manufacturing Innovation initiative is a proposed $1.05 million initiative that builds on key manufacturing investment made under the first Oregon Innovation Plan. The initial investment of $2.87 million supported the addition of new materials science faculty at Portland State University and the purchase of new equipment and facilities upgrades in the university laboratories, in conjunction with the Manufacturing 21 Initiative. In addition, investments were made in the Oregon Metals Initiative (OMI) to support industry-university research partnerships through a matching grants program.

Building on the success of its first initiative, the Oregon Innovation Plan calls for an additional $1.05 million investment at the Portland State University Institute for Manufacturing and Materials Science.

Proposed outcomesIn service of a commitment to a sustainable manufacturing economy, PSU’s proposed project will build the capac-ity of the university’s research, education and training in surface engineering, metals processing and fabrication, and reliability and material health assessment. Materials and coatings that are well designed for their intended use and for

repurposing can be more durable, easier to maintain, safer

and better for the environment than those in use today. Oregon’s development and application of materials science and technol-ogy—and the monitoring and assessment tools to measure their effectiveness—can keep our manufacturing industry competitive in a world where sustainable design is central to economic, social and environmental health. The investment will support the addition of facilities, the purchase and installation of assessment and systems tools and software, and the development of new workshops and industry research projects.

The Oregon Innovation Council recommends advancing $1.05 million for the Oregon Manufacturing Innovation Initiative as a part of the 2009 Innovation Plan. It promotes exactly the kind of ingenuity—reflected in the focus on sustainability, emphasis on industry-university partnerships and interdisciplinary integration of new technologies—that can help keep Oregon manufacturing thriving.

Select accomplishments the Oregon Manufacturing Initiative 2006–08

• Establishednewmulti-disciplinaryInstituteforManufacturingandMaterialsScienceatPortlandStateUniversity.

• Supportedmorethan30appliedresearch,developmentandtestingprojectswith28Oregonfirms,insupportofnewprocesses,productsorinnovations.

58

Section 1Proposed Investment 4: SeafoodThe seafood industry in Oregon has weathered tough times. In 2006, owing to a severe shortage of salmon in the Klamath River, the season was cancelled, causing an estimated $16 million loss to the industry and economic hardship for coastal Oregon communi-ties. In 2008, the number of salmon spawning in the Sacramento River plummeted to less than 10 percent of normal levels. The commercial fishing season was over before it began, causing at least $9 million in losses to Oregon alone. At the same time, the crab harvest has been increasing steadily for the past five years—this year crab anchored the Oregon seafood industry. This kind of volatility is endemic to the industry. It is, in part, what has driven massive consolidation. Oregon’s Community Seafood Initiative is helping workers, processors and communities use innovation to help harvesters, processors, distributors and others strengthen the industry’s ability to manage through volatility and turn its structural challenges into opportunities.

The Community Seafood Initiative received $900,000 in 2007 through the Oregon Innovation Plan to support research and training, and provide technical and capital access assistance to industry stakeholders interested in increasing their competitiveness.

Building on the success of the Community Seafood Initiative’s first phase, the Oregon Innovation Council recommends a $750,000 investment in support of a second phase.

The Community Seafood Initiative proposes to support industry advances in four areas:

• Information and intelligence that helps firms in the industry better manage their business and target their efforts, including the launch of a web service that provides real-time information

about fish stocks and ocean conditions with the precision to enable immediate decision making.

• Research leading to commercialization of products that improve seafood safety, increase seafood nutrient content and improve the quality of particular low-value species.

• Training and development for industry statekholders—from harvesters to retailers—on industry trends, innovative technologies and emerging business opportunities.

• Product and market development services for businesses in the seafood industry. While the services themselves are fee-based, Oregon InC resources will subsidize the total cost, making the fee within reach of even small companies in need of these services. The investment also will cover the purchase of new equipment for the Oregon State University Seafood Lab, a Community Seafood Initiative partner.

Select accomplishments of the Community Seafood Initiative (CSI) 2006–08

• Launchedfourindustry-leduniversityresearchprojectsincludingthedevelopmentofacost-effectivespeciesidentificationtool(topreventfraudandabuse)andexperimentswithchitosan-basedcoatingstoenhancethenutritionalbenefitofseafood.

• Convenedtwoindustry-wideworkshops—oneonseafoodtraceabilityandtheotheronproductinnovation—inwhichmorethan50industryprofessionalsparticipated.

• Provideddirectproductandmarketdevelopmentsupportto27seafoodbusinessesemployingnearly200Oregonians.

• Leveraged$558,000inadditionalrevenuetosupportCSI’swork.

Section 1

• Advancing policy and market development strategies, including price support mechanisms and marketing programs—in collaboration with federal policy makers and local utilities—and capital access and financing strategies for commercial scale projects.

• Convening community forums and educational opportunities to raise the level of interest in and knowledge about wave energy among consumers and coastal communities, and inform Oregonians of the

potential job opportunities that could be generated in as little as five years—and many of these jobs would be

located in the rural parts of the state.

• Building relationships with industry members that will lead to recruitment opportunities and industry investment in the state.

The Oregon Wave Energy Trust proposes an ambitious agenda aimed at balancing the needs of ocean communities, businesses whose livelihoods depend on the ocean, and the environment on and around the coastline with the demands

of an emerging industry with the potential to bring unprecedented opportunity to coastal communities, and to Oregon’s sustainable brand. The Oregon Innovation Council recommends an investment of $3.85 million in this unique endeavor.

WhenOregonlostouttoNewMexicoonalargesolarmanufacturingcompanyrecruit-mentbecauseofaperceivedlackofinvest-mentandcapabilityinhighereducation,BESTsteppedintoshowcasetheOregonUniversitySystem’sexpertiseinsolarandmanufacturingtechnologyandcollaborationwiththeindustry.Throughthisonesmallact,Oregonwasabletorepositionitsleadershipinsolarmanufacturingandhassincesuccessfullyrecruitedseveraltopsolarmanufacturerstothestate,creatinghundredsofjobs.

Proposed Investments in Oregon’s Signature Research Centers

The Oregon Built Environment and Sustainable Technologies Institute (BEST)3

The Oregon Built Environment and Sustainable Technologies Center (BEST) was established in 2007 under the first Oregon Innovation Plan, with a focus on green building/infrastructure and renewable energy systems. Like all of Oregon’s Signature Research Centers, Oregon BEST is expanding and leveraging the research capabilities of Oregon’s universities to create and support economic development throughout the state. Oregon BEST is focused on two areas:

• Green Building Products and Services (performance assessment, energy systems and efficiency, green building materials and building/community design)

• Renewable Energy Generation (solar, biofuels/biomass, wind, wave and geothermal)

Oregon BEST is uniquely positioned to establish partnerships with firms and industries not typically positioned as “innovators,” but for whom materials, process and technology innovations could have a dramatic and far-reaching positive impact. These industries—build-ing design, engineering, materials and construction, energy sys-tems—lack the research and development resources their high-tech counterparts are able to maintain. However, by creating and leading collaborative projects that connect Oregon’s research faculty with its business leaders, Oregon BEST is helping the state’s green businesses develop new products and services in a cost-competitive way.

3 Shortlyafterlaunch,theBio-EconomyandSustainableTechnologiesCenteroptedtofocusmorespecificallyonthebuiltenvironment.BecauseinterestinsustainabletechnologieshasskyrocketedsincethefirstInnovationPlan,Oregon’smanysustainabilityassets(researchcenters,businesssupportprograms,etc.)begantonichethemselves—identifyingwhattheywereuniquelysuitedtodo,anddoingit.Aconcentrationofassetsfocusedonthebuiltenvironmentemerged.BESTneededanamethatmoreaccuratelyreflectedthisfocus.Thecenterchangeditsname,replacing“bio-economy”with“builtenvironment,”althoughthecentercontinuestoincludebio-basedproductswithinthescopeofbothsustainabletechnologiesandthebuiltenvironment.Thechangeisreflectedintheremainderofthisdocument.

76

Section 1Whencustomersofalocalseafoodprocessingcompanybeganaskingaboutalternativestothebulkyandcostlypackagingofacannedtunaproduct,theseafoodcompanyusedresearchbeingdoneattheCommunitySeafoodInitiativetoreplacetheoldpackagingwithnewflexible,lessespensive,easy-to-storepackaging.

Proposed outcomesThe Community Seafood Initiative proposes specific outcomes in each of the proposed program areas.

Information and intelligence. The project will launch NWFishtracks, a web-based tracing system intended to improve the management of Oregon fisheries and provide the information available to retailers and consumers about the products they buy.

Research. The project will launch four research efforts that result in measurable gains to firms. These projects will build on current efforts including the development of a DNA test kit, and chitosan-based films than enable nutraceutical products with higher value in the marketplace.

Training and development. The project will convene four industry workshops with an estimated attendance of 30 industry professionals each.

Product and market development. The project will provide product and market development services to 50 seafood-related businesses, launch and develop up to 12 new seafood products, and commercialize two additional product lines.

In total, the project aims to assist 100 seafood businesses, add or retain 200 jobs and leverage $500,000 in new capital investments in Oregon seafood companies.

The Oregon Innovation Council recommends advancing this high-performing initiative. It supports an industry central to the economic health of our coastal communities in a way that values and promotes cross-disciplinary university-business partnerships, incents cross-industry collaboration, and makes Oregon seafood workers central to the innovation process.

Proposed investment 5: Wave energyWave energy is a young sector within the renewable energy industry that offers Oregon an opportunity to deepen its portfolio of sustainable development assets and raise its profile as a hub of next-generation solutions to global energy needs.

While the idea is simple—tapping into the energy generated by ocean waves and converting it to usable power—the technology needed to enable conversion is only now emerging. There are three important elements needed for successful development of the renewable wave energy industry—an abundance of ocean energy, the right technologies to harness that energy and the ability to supply that energy to the grid. Oregon’s coastline is among a handful of locations in the world that possess these three attributes. Further, Oregon’s manufacturing industry—with its deep knowledge of materials science, expertise in metals and manufacturing, collaborative orientation and commitment to sustainability—is ideally positioned to develop and commercialize the technologies, equipment and instruments necessary to advance the wave energy industry worldwide.

Section 1

One hundred megawatts of installed capacity could create 50 high-paying

jobs in wave energy, and 200 in supporting industries, like manufacturing.

Oregon could have such capacity in five to seven years.

uC-BerKeley stuDy reNewaBle eNergy

Select accomplishments of the Oregon Wave Energy Trust 2006–08

• Convenedworkshopsandcommunitygatheringstoraisetheawarenessofthepotentialforwaveenergy,identifycon-cernsofcommunitiesandothercoastalindustries,andprioritizeenvironmentalissuesthatshouldbeconsideredaspartofanoveralleffectsanalysis.

• Establishedpartnershipswithmultiplestate,localandfederalagenciestocoordinateregulatorycomplianceissuesandlicensingprocess.

• Hostedthe3rdannualinternationalOceanRenewableEnergyConferenceinSeptember2008.

• CollaboratedwithOregonStateUniversityandwiththeU.S.DepartmentofEnergytodevelopthenation’sfirstmulti-disciplinaryNationalMarineRenewableEnergyCenter—thecenterreceiveda$6.25milliongrantfromtheDepartmentofEnergyinSeptember2008.

• Engagedindirectbusinessdevelopment,playingsignificantrolesin:

− RecruitingFinaveraRenewablesOceanEnergyheadquarterstoPortland,creating5newjobsandinvestingover$2millioninresearchandtechnology.

− LocatingOceanPowerTechnologies’firstcommercialscaleprojectsinOregon.TheNewJerseycompanyplansa$50millioninvestmentinresearchandprojectdevelopmentinReedsportandinCoosBay.

− Hostedan18–membertradedelegationfromtheUK.

The Oregon Wave Energy Trust (OWET) was established in 2007 under the first Oregon Innovation Plan. A public-private partnership, the organization was charged with making Oregon a leader in the emerging industry and developing a roadmap whereby Oregon would develop 500 megawatts of (ocean wave) power by 2025.

During its initial two years, OWET focused on conducting applied research, environmental study, raising community awareness, industry-wide licensing and regulatory issues, utility integration and business development. In effect, the Trust also has functioned as a connector—taking an ecosystem view of nascent wave and marine power industry and linking its disparate components to accelerate development.

The Oregon Wave Energy Trust plans to build on its early success, investing $3.85 million in a second phase aimed at positioning Oregon as the North American leader in researching, testing and deploying wave energy technologies, and delivering business investment and new jobs to the state.

Proposed outcomes The proposed Oregon Innovation Plan investment will support work in four interrelated areas: developing an environmental monitoring program, research and development, market and workforce development, and community outreach. Specific proposed outcomes

include:

• Developing a comprehensive environmental monitoring program that will include studying the social, environmental, and economic impact of pilot technologies on the seabed, marine mammals, salmon and other fishstock, and seabirds. This research will inform the design, development and location of future wave energy technologies, and possible environmental preservation and economic development strategies.

76

Section 1

Whencustomersofalocalseafoodprocessingcompanybeganaskingaboutalternativestothebulkyandcostlypackagingofacannedtunaproduct,theseafoodcompanyusedresearchbeingdoneattheCommunitySeafoodInitiativetoreplacetheoldpackagingwithnewflexible,lessespensive,easy-to-storepackaging.

Proposed outcomesThe Community Seafood Initiative proposes specific outcomes in each of the proposed program areas.

Information and intelligence. The project will launch NWFishtracks, a web-based tracing system intended to improve the management of Oregon fisheries and provide the information available to retailers and consumers about the products they buy.

Research. The project will launch four research efforts that result in measurable gains to firms. These projects will build on current efforts including the development of a DNA test kit, and chitosan-based films than enable nutraceutical products with higher value in the marketplace.

Training and development. The project will convene four industry workshops with an estimated attendance of 30 industry professionals each.

Product and market development. The project will provide product and market development services to 50 seafood-related businesses, launch and develop up to 12 new seafood products, and commercialize two additional product lines.

In total, the project aims to assist 100 seafood businesses, add or retain 200 jobs and leverage $500,000 in new capital investments in Oregon seafood companies.

The Oregon Innovation Council recommends advancing this high-performing initiative. It supports an industry central to the economic health of our coastal communities in a way that values and promotes cross-disciplinary university-business partnerships, incents cross-industry collaboration, and makes Oregon seafood workers central to the innovation process.

Proposed investment 5: Wave energyWave energy is a young sector within the renewable energy industry that offers Oregon an opportunity to deepen its portfolio of sustainable development assets and raise its profile as a hub of next-generation solutions to global energy needs.

While the idea is simple—tapping into the energy generated by ocean waves and converting it to usable power—the technology needed to enable conversion is only now emerging. There are three important elements needed for successful development of the renewable wave energy industry—an abundance of ocean energy, the right technologies to harness that energy and the ability to supply that energy to the grid. Oregon’s coastline is among a handful of locations in the world that possess these three attributes. Further, Oregon’s manufacturing industry—with its deep knowledge of materials science, expertise in metals and manufacturing, collaborative orientation and commitment to sustainability—is ideally positioned to develop and commercialize the technologies, equipment and instruments necessary to advance the wave energy industry worldwide.

Section 1

One hundred megawatts of installed capacity could create 50 high-paying

jobs in wave energy, and 200 in supporting industries, like manufacturing.

Oregon could have such capacity in five to seven years.

uC-BerKeley stuDy reNewaBle eNergy

Select accomplishments of the Oregon Wave Energy Trust 2006–08

• Convenedworkshopsandcommunitygatheringstoraisetheawarenessofthepotentialforwaveenergy,identifycon-cernsofcommunitiesandothercoastalindustries,andprioritizeenvironmentalissuesthatshouldbeconsideredaspartofanoveralleffectsanalysis.

• Establishedpartnershipswithmultiplestate,localandfederalagenciestocoordinateregulatorycomplianceissuesandlicensingprocess.

• Hostedthe3rdannualinternationalOceanRenewableEnergyConferenceinSeptember2008.

• CollaboratedwithOregonStateUniversityandwiththeU.S.DepartmentofEnergytodevelopthenation’sfirstmulti-disciplinaryNationalMarineRenewableEnergyCenter—thecenterreceiveda$6.25milliongrantfromtheDepartmentofEnergyinSeptember2008.

• Engagedindirectbusinessdevelopment,playingsignificantrolesin:

− RecruitingFinaveraRenewablesOceanEnergyheadquarterstoPortland,creating5newjobsandinvestingover$2millioninresearchandtechnology.

− LocatingOceanPowerTechnologies’firstcommercialscaleprojectsinOregon.TheNewJerseycompanyplansa$50millioninvestmentinresearchandprojectdevelopmentinReedsportandinCoosBay.

− Hostedan18–membertradedelegationfromtheUK.

The Oregon Wave Energy Trust (OWET) was established in 2007 under the first Oregon Innovation Plan. A public-private partnership, the organization was charged with making Oregon a leader in the emerging industry and developing a roadmap whereby Oregon would develop 500 megawatts of (ocean wave) power by 2025.

During its initial two years, OWET focused on conducting applied research, environmental study, raising community awareness, industry-wide licensing and regulatory issues, utility integration and business development. In effect, the Trust also has functioned as a connector—taking an ecosystem view of nascent wave and marine power industry and linking its disparate components to accelerate development.

The Oregon Wave Energy Trust plans to build on its early success, investing $3.85 million in a second phase aimed at positioning Oregon as the North American leader in researching, testing and deploying wave energy technologies, and delivering business investment and new jobs to the state.

Proposed outcomes The proposed Oregon Innovation Plan investment will support work in four interrelated areas: developing an environmental monitoring program, research and development, market and workforce development, and community outreach. Specific proposed outcomes

include:

• Developing a comprehensive environmental monitoring program that will include studying the social, environmental, and economic impact of pilot technologies on the seabed, marine mammals, salmon and other fishstock, and seabirds. This research will inform the design, development and location of future wave energy technologies, and possible environmental preservation and economic development strategies.

58

Section 1

Proposed Investment 4: SeafoodThe seafood industry in Oregon has weathered tough times. In 2006, owing to a severe shortage of salmon in the Klamath River, the season was cancelled, causing an estimated $16 million loss to the industry and economic hardship for coastal Oregon communi-ties. In 2008, the number of salmon spawning in the Sacramento River plummeted to less than 10 percent of normal levels. The commercial fishing season was over before it began, causing at least $9 million in losses to Oregon alone. At the same time, the crab harvest has been increasing steadily for the past five years—this year crab anchored the Oregon seafood industry. This kind of volatility is endemic to the industry. It is, in part, what has driven massive consolidation. Oregon’s Community Seafood Initiative is helping workers, processors and communities use innovation to help harvesters, processors, distributors and others strengthen the industry’s ability to manage through volatility and turn its structural challenges into opportunities.

The Community Seafood Initiative received $900,000 in 2007 through the Oregon Innovation Plan to support research and training, and provide technical and capital access assistance to industry stakeholders interested in increasing their competitiveness.

Building on the success of the Community Seafood Initiative’s first phase, the Oregon Innovation Council recommends a $750,000 investment in support of a second phase.

The Community Seafood Initiative proposes to support industry advances in four areas:

• Information and intelligence that helps firms in the industry better manage their business and target their efforts, including the launch of a web service that provides real-time information

about fish stocks and ocean conditions with the precision to enable immediate decision making.

• Research leading to commercialization of products that improve seafood safety, increase seafood nutrient content and improve the quality of particular low-value species.

• Training and development for industry statekholders—from harvesters to retailers—on industry trends, innovative technologies and emerging business opportunities.

• Product and market development services for businesses in the seafood industry. While the services themselves are fee-based, Oregon InC resources will subsidize the total cost, making the fee within reach of even small companies in need of these services. The investment also will cover the purchase of new equipment for the Oregon State University Seafood Lab, a Community Seafood Initiative partner.

Select accomplishments of the Community Seafood Initiative (CSI) 2006–08

• Launchedfourindustry-leduniversityresearchprojectsincludingthedevelopmentofacost-effectivespeciesidentificationtool(topreventfraudandabuse)andexperimentswithchitosan-basedcoatingstoenhancethenutritionalbenefitofseafood.

• Convenedtwoindustry-wideworkshops—oneonseafoodtraceabilityandtheotheronproductinnovation—inwhichmorethan50industryprofessionalsparticipated.

• Provideddirectproductandmarketdevelopmentsupportto27seafoodbusinessesemployingnearly200Oregonians.

• Leveraged$558,000inadditionalrevenuetosupportCSI’swork.

Section 1

• Advancing policy and market development strategies, including price support mechanisms and marketing programs—in collaboration with federal policy makers and local utilities—and capital access and financing strategies for commercial scale projects.

• Convening community forums and educational opportunities to raise the level of interest in and knowledge about wave energy among consumers and coastal communities, and inform Oregonians of the

potential job opportunities that could be generated in as little as five years—and many of these jobs would be

located in the rural parts of the state.

• Building relationships with industry members that will lead to recruitment opportunities and industry investment in the state.

The Oregon Wave Energy Trust proposes an ambitious agenda aimed at balancing the needs of ocean communities, businesses whose livelihoods depend on the ocean, and the environment on and around the coastline with the demands

of an emerging industry with the potential to bring unprecedented opportunity to coastal communities, and to Oregon’s sustainable brand. The Oregon Innovation Council recommends an investment of $3.85 million in this unique endeavor.

WhenOregonlostouttoNewMexicoonalargesolarmanufacturingcompanyrecruit-mentbecauseofaperceivedlackofinvest-mentandcapabilityinhighereducation,BESTsteppedintoshowcasetheOregonUniversitySystem’sexpertiseinsolarandmanufacturingtechnologyandcollaborationwiththeindustry.Throughthisonesmallact,Oregonwasabletorepositionitsleadershipinsolarmanufacturingandhassincesuccessfullyrecruitedseveraltopsolarmanufacturerstothestate,creatinghundredsofjobs.

Proposed Investments in Oregon’s Signature Research Centers

The Oregon Built Environment and Sustainable Technologies Institute (BEST)3

The Oregon Built Environment and Sustainable Technologies Center (BEST) was established in 2007 under the first Oregon Innovation Plan, with a focus on green building/infrastructure and renewable energy systems. Like all of Oregon’s Signature Research Centers, Oregon BEST is expanding and leveraging the research capabilities of Oregon’s universities to create and support economic development throughout the state. Oregon BEST is focused on two areas:

• Green Building Products and Services (performance assessment, energy systems and efficiency, green building materials and building/community design)

• Renewable Energy Generation (solar, biofuels/biomass, wind, wave and geothermal)

Oregon BEST is uniquely positioned to establish partnerships with firms and industries not typically positioned as “innovators,” but for whom materials, process and technology innovations could have a dramatic and far-reaching positive impact. These industries—build-ing design, engineering, materials and construction, energy sys-tems—lack the research and development resources their high-tech counterparts are able to maintain. However, by creating and leading collaborative projects that connect Oregon’s research faculty with its business leaders, Oregon BEST is helping the state’s green businesses develop new products and services in a cost-competitive way.

3 Shortlyafterlaunch,theBio-EconomyandSustainableTechnologiesCenteroptedtofocusmorespecificallyonthebuiltenvironment.BecauseinterestinsustainabletechnologieshasskyrocketedsincethefirstInnovationPlan,Oregon’smanysustainabilityassets(researchcenters,businesssupportprograms,etc.)begantonichethemselves—identifyingwhattheywereuniquelysuitedtodo,anddoingit.Aconcentrationofassetsfocusedonthebuiltenvironmentemerged.BESTneededanamethatmoreaccuratelyreflectedthisfocus.Thecenterchangeditsname,replacing“bio-economy”with“builtenvironment,”althoughthecentercontinuestoincludebio-basedproductswithinthescopeofbothsustainabletechnologiesandthebuiltenvironment.Thechangeisreflectedintheremainderofthisdocument.