Transcript Innovation II: Six Big Ideas

Innovation 2.0
A Winning Strategy for Driving Growth
A Policy Reset in Time of Fiscal Constraint
Prepared for:
Washington Economic Development Association
Winter Legislative Conference
February 15, 2011
Egils Milbergs
Executive Director
Washington Economic Development Commission
www.wedc.wa.gov
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Summary
This generation’s “Sputnik moment.” New global and national
economic realities challenge Washington State to start,
nurture and transform industries driven by innovation.
Innovation has been a focus of Washington’s high-tech
industries. The focus needs to be broadened to all people,
industries and geographies of the state to expand our overall
ability to provide high value jobs.
Washington possesses substantial assets and initiatives related
to innovation, but the state is far from reaching its potential.
A comprehensive economic growth strategy focused on
innovation and catalyzing “bottom-up” collaboration among
industries, universities, laboratories, regions, etc., can transform
Washington into a model 21st century innovation economy.
Sputnik Moments
2011
1985
1957
“this is our generations’
Sputnik moment”
“one small ball in the air”
President’s Commission on
Industrial Competitiveness
The World is Changing
“not your father’s economy”
Innovation
Our Goal: Make Washington the most attractive, creative
and fertile environment for innovation in the world by 2020
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Commission
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2010 New Economy Index
Overall Scores
26 indicators in five categories:
1. Knowledge Jobs
2. Globalization
3. Economic Dynamism
4. Digital Economy
5. Innovation Capacity
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Source: ITIF
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Knowledge-based Competition
China is now the world’s second largest economy
Soaring
R&D in
China
We are in tough hole ……..
Peak to
trough job
losses
1981-82:
2.9% of
labor force
This time:
5.5% of
labor force
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The Great Reset
FROM
•
•
•
•
•
•
•
TO
Public Sector Jobs
Shovel Ready
Expand Safety Net
Consumption
Debt
Competing Regions
Top-down macro
strategies
•
•
•
•
•
•
•
Private Sector Jobs
Innovation
Upgrading Skills
Investment
Exports
Collaborating Regions
Bottom-up cluster
strategies
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WEDC Innovation Strategy
Public Impact
Business
Performance
World Greatest Innovation Ecosystem
Talent &
Workforce
Investment &
Entrepreneurship
Infrastructure
Innovation Clusters Matter
Education
Research
Workforce
Business
Capital
Gov’t
Start-ups
Regional
Innovation
Clusters
Defense
•
•
•
•
•
Associations
NonProfits
•
•
Military
•
New industries and JOBS
Grow faster
Pay higher wages
More spin-off and start-up
opportunities
Offset advantages of low
wage competition
Attract talent and
investment
Solve social, energy,
environmental problems
Maintain defense and
homeland security
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Global Health
Marine
Technology
Medical
Devices
Freight
Mobility
Health
Services
Nano
Photonics
Bio-Fuels
Defense
Technology
Advanced
Manufacturing
Electric Car
Wine,
Water
Environment
Technology
Value-Add
Smart Grid
Cloud
Food
Clean Tech
Computing,
Data Centers
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Advanced
Materials
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Designated Innovation Partnership Zones
 Bellingham Innovation Zone
 Aerospace Convergence Zone
 Sequim, North Olympic Innovation Partnership Zone
 Tri-Cities Research District
 South Lake Union Life Science Innovation Partnership Zone
 Spokane University District Innovation Partnership Zone
 Bothell Biomedical Manufacturing Corridor
 Central Washington Resource Energy Collaborative
 Grays Harbor Sustainable Industries
 Pullman Innovation Partnership
 Discovery Corridor Innovation Zone: Steinmueller Innovation Park
 Walla Walla Innovation Partnership Zone
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Major WA Military Installations
Whidbey Island
Naval Air
Naval Submarine
Base Bangor
Naval Station
Everett
191,000 jobs
$12.2 billion in output
$10.5 billion in labor income
$5.2 billion in defense contracts
Spokane
Fairchild AFB
US Coast Guard
WA Nat’l Guard
Puget Sound
Naval Shipyard
Joint Base
Lewis McChord
Madigan Medical Center
Intelligence, Surveillance, and Recon
Special forces and special operations
Network-centric operations
Cyber security
Composite materials
 Unmanned systems – both air and sea
 Energy efficiency and alternatives
Health care for veterans
US Army, Yakima
US Marine Corps
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Key Policy
Strategies
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TALENT: New Pathways for Learning
• Protect training capacity for
high demand occupations
• Increase production of
science & engineering and
innovation graduates
• Expand use of on-line
education
• Reduce K-12 drop-out rate
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INVESTMENT: Accelerate Commercialization
• Compete aggressively for
Federal R&D funds
• Double recruitment of
STARS and EIRs
• Double start-ups by
access to expertise and
entrepreneurial capital
• Make permanent R&D tax
credit
• Clean Energy PublicPrivate Partnership
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Infrastructure & Regulations
• Expand local infrastructure financing
tools (e.g. TIF)
• Define infrastructure to include
“intangible” capital
• Build-out broadband(wired & wireless)
• Create mechanism for self-financing of
industry clusters
• Reduce regulatory barriers and
uncertainty
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Seize Global Markets
• Implement Governor’s
export assistance initiative
• Invest in freight mobility &
infrastructure
• Focus trade promotion on
competitive clusters, not
national markets
• Improve foreign market
intelligence and on-line
tools
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Commission
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World’s Greatest Innovation Park
Collaboration across regional boundaries
• Provide operational funding
for IPZs
• Strengthen links with
defense and mfg. sectors
• Pursue Federal funding of
regional innovation clusters
• Create mechanism for selffinancing of industry clusters
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Brand “Decade of Innovation”
• Utilize media to promote
how WA innovates
• Leverage the 2012 World’s
Fair Anniversary
• Define metrics to track
trends, inputs & outcomes
• Launch innovation “X”
Prize
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Innovation ecosystem is even bigger….
PNWER Region (GDP/Pop.)
State/Prov. GDP*
Population
Wash. 311,270
Alberta 259,900
Oregon 158,233
B.C.
150,412
Idaho
51,149
Sask.
40,340
Alaska 44,517
Montana 34,253
Yukon
1,767
Total 1,051,841
If Pacific Northwest Economic Region
were a separate country, it would rank
13th in total GDP
6,468,424
3,585,000
3,790,060
4,310,305
1,523,816
1,008,697
686,293
967,440
32,714
22,372,731
*2007 population & GDP in $US Million
Setting Priorities…..
Reduce
Economic
Development
Programs
Create
Tough
Choices
Eliminate
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Invest
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The risks inherent to starting a thriving enterprise
in today’s troubled waters are immense, but the
rewards have never been greater.
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Commission
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Thank You
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