tacoma military affairs presentation 1.3 oct 13 2010 milbergs

8/8/2019 Tacoma Military Affairs Presentation 1.3 Oct 13 2010 Milbergs

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Innovation and WashingtonsDefense Economy

Presentation for:

Tacoma-Pierce County ChamberMilitary Affairs Forum

Egils MilbergsExecutive Director

Washington EconomicDevelopment CommissionOctober 13, 2010


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reatRecession


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Geography of WA Unemployment(Aug. NSA)

8.9% State-wide


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ath toRecovery


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1960s & 1970sAdvantage is Cost

Strategy isMake it Cheaper

1980s & 1990sAdvantage is Quality

Strategy isMake it Better

2000sAdvantage is Innovation

Strategy isMake something new

Changing paths to economic recovery

.a l f o f Fo r t u n e 5 0 0 a nd j u s t u nd e r h al f o f 20 08 I n c l i s t b e g a n d

e re i s no be t te r t im e li k e.ow nt u r n t o i nn o va te


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40 countries/regions

16 Indicators

Economic StructureHuman capital (college

education; researchers)

Innovation capacity(corporate R&D;government R&D;

scientific publications)Entrepreneurship (new

firms; venture capital)

IT infrastructure (e-government; corporateinvestment; broadband)

Economic Policy (corp. tax; easeof doing business)Economic Performance (trade

balance, FDI, GDP per worker,productivity)

ow are we doing?


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0

10

20

30

40

50

60

70

80

Overall Scorectually we are.o 6

9


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1. China

2. Singapore

3. Estonia

4. Denmark

5. Luxembourg

6. Slovenia

7. Russia

8. Lithuania

9. Cyprus

10. Japan

11. Hungary

12. Slovakia

13. Czech Republic

14. India

15.Latvia

16.Austria

17.S. Korea

18.Ireland

19.EU-10

20.Spain

21.Sweden22.France

23.Portugal

24.Malta

25.Belgium26.EU-25

27.Poland

28.

. .Behind.

28.UK

29.EU-15

30.Mexico

31.Netherlands

32.Australia

33.Finland

34.Canada35.Germany

36.Italy

37.NAFTA

38.Greece39.Brazil

40.United States

10


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Category FiveRising Above the Gathering Storm, Revisited

& %n g in e e rin g R D in U S d o w n 5 1 in.r p la n ts b e in g b u ilt O n e in U S

, ,rts 6 0 0 0 su p p lie rs 5 0 0 0 in C h in aEF ranks US 48th n science and math ed

S ranks 22nd .n broadband 72nd n

S ranks 40th n rate of innovation in&ies plan R D facilities in China and India

.places US as No 1 exporter

.S mfg companies suffer skills shortages


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. .10 4 57


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lan forWashington


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A Ten Year VisionWe should not fear to lead

Make Washington State the mostattractive, creative and fertileinvestment environment for

innovation in the world.

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, we cant rest on our laurels, solets commit today to grooming aworkforce and leaders who areagile, creative, and embraceinnovation.

Gov. Chris GregoireMarch 10, 2009

e m u s t l oo k o ve r t h eo ri z o n a nd p r ep a re f or

h e n e w e co no m y t ha t wi l lm er g e w h en t h is

.e ce ss io n p as seso m m e r c e S e c re t a r y G a r yL o c k e

,a r ch 1 8 2 0 0 9

Wh t ill th W ld b lik i


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What will the World be like in

10 years?Prediction is difficult especially when its about the

future What talent, investment and

infrastructure will we need tosucceed in that world?

Is Washington prepared?

What do we need to do?

How will we pay for it? How will we know if we are making

progress?


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A New Innovation GrowthCurve

TIME

PR

OS

PER

ITY

We are here


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ome riticalChallenges


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Marine


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Aerospace

IT, gaming, simulationBiomedical, Incubator

Clean Tech, Smart Grid, Biofuels

Defense

Medical

Biotech, Energy

Wine, Water

Sciences, Global Health

Worlds Largest Innovation Network

Food Processing

Wind, Solar, Data Centers

Marine

Food TourismMarine Energy

Agriculture,Composites

w Forestry. Green Tech

Twilight

MedicalDevices

EnvironmentRemediation

Electric Highway

Clean ITState Fair


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Source: Washington Technologie Industry Association (WTIA)

http://wtia.micromaps.com/
http://wtia.micromaps.com/http://wtia.micromaps.com/


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Talent Challenge

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What has changed in 700 years?


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Gap Funding

n rastructure


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n rastructureChallenge

Post ICE Age? InternalCombustion Engine

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Beyond Oil?


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Export Challenge


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Trade balance in high-technology goods 19952008

NOTES: Asia-9 includes India, Indonesia, Malaysia, Philippines, South Korea, Singapore, Taiwan, Thailand, and Vietnam.China includes Hong Kong. EU excludes Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Slovenia.

Source: NSF Science and Engineering Indicators 2010


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a sh in g to nD e fe n seE co n o m y


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ROJECT OBJECTIVESEconomic impact of Washingtonsbases and defense-related economy.Identify emerging opportunitiesfor Washington-based businessesbased on trends in defense strategyand mission.

Develop recommendations for astatewide economic developmentstrategy and expanding WA share ofdefense contracting.


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hidbey Island Naval Air

uget Sound Naval Shipyard oint Baseewis McChordadigan Medical Center

al Submarine Base Bangor

poka ne Fairchi ld AFB

S Coast Guard A Nat l Guard

,S Army YakimaS Marine Corps

ajor WA Military Installations

,91 000 jobs.12 2 billion in output.10 5 billion in labor income.5 2 billion in defense contracts


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E i T d i N ti l


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Emerging Trends in NationalDefense Strategy

Decline in overall defense budget, whileWest Coastincreasingly important strategic location. Smaller scale threats and responses and on emerging

technologies:

Intelligence, Surveillance, and Reconnaissance

Special forces and special operationsNetwork-centric operationsCyber securityComposite materials

Unmanned systems both air and sea

A focus on energy efficiency and alternative energy. Ongoing role in peacekeeping and nation building. Caring forveterans and wounded warriors.

Promote WAs Defense Related


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Promote WAs Defense RelatedEconomy

A.Explicitly include defense in the

States economic developmentstrategy.

B.Promote the economic benefits ofthe defense economy into stakeholdergroups in the State.

C. Elevate and communicate theStates commitment through creation

of central office focused on themilitary, and high level participationin trade shows and relationship-building in Washington D.C.

D.Communicate whats happening and

St t id d I d t


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Statewide and Industry-Specific Efforts

A . -upport emerging defense specific economic:evelopment efforts the Pacific Northwestefense Coalition and Washington Defense.artnership . upport local economic development efforts

, ,y sharing information analysis andpportunities with Associate Development( )rganizations ADOs and other economic.evelopment partnersC . aise awareness of business opportunities

.mong Washington s strong economic clustersD . ake a proactive approach to growing -ashington s defense related economy through- ,luster specific initiatives including an.mmediate pilot effort


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Support Contract Bids and R&DProposals

. n cre a se b u sin e ss tra in in g a n du p p o rt re so u rce s b yn h a n cin g fu n d in g fo rro cu re m e n t Te ch n ica l( )ssista n ce C e n te rs P TA C s. u p p o rt th e d e ve lo p m e n t o f

n lin e re so u rce s a n d to o lk its. tre n g th e n W a sh in g to n s a b ilityo a ttra ct re se a rch a n de v e lo p m e n t fu n d in g


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h e risk s in h e re n t to sta rtin g ah riv in g b u sin e ss in to d a y s ,ro u b le d w a te rs a re im m e n se b u th e re w a rd s h a v e n e v e r b e e n


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DISCUSSION

tacoma military affairs presentation 1.3 oct 13 2010 milbergs

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