Transcript Cabinet Briefing Presentation - California Center for Regional

WELCOME
Regional Economic Vitality Conversations
Summary Report Briefing
For Governor Schwarzenegger’s Cabinet
Presented by the California Center for Regional Leadership
In Cooperation with Regional Civic Leadership Organization Sponsors
March 3, 2005
1:00 – 4:00 p.m.
Made possible through generous support from
Pacific Gas and Electric Company and Bank of America
Regional Economic Vitality
Briefing – Action Agenda
California Center for Regional Leadership
March 3, 2005
Innovation, Investment, Collaboration
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Governor Schwarzenegger elected – makes
economy a priority
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Secretary Sunne Wright McPeak convenes
first statewide Economic Vitality
Conversation—December 2003
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California Center for Regional Leadership
(CCRL) asked to convene Regional Economic
Vitality Conversations
Regional Economic Vitality Conversations
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Antelope Valley
Central San Joaquin
Inland Empire
Northern Central Coast
Northern San Joaquin
Orange County
Sacramento
Southland
Silicon Valley
San Francisco Bay Area
Tri-Valley
San Diego
Innovation, Investment, Collaboration
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Conversations convened by CCRL’s network of
Regional Collaboratives, with many local partners
Conversations facilitated by the Cabinet, framed by
economic overview, and addressed 3 questions:
What state actions will have the most immediate impact
on California’s economic recovery?
- What state actions will result in the most significant longterm improvement to California’s economic
competitiveness and comparative advantage
- How do we best structure an effective partnership
between the Regions and the State around economic
strategy?
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Regional Conversations:
Presenting Economists
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Jack Kyser, Sr. VP & Chief Economist: Los Angeles EDC
Christopher Thornberg, Senior Economist: UCLA Forecast
Joe Hurd, Senior Economist: UCLA Anderson Business Forecast Project
Doug Henton, President: Collaborative Economics
Stephen Levy, Dir. & Sr. Econ: Ctr. for Continuing Study of the CA Econ.
Michael Locke, President & CEO: San Joaquin Partnership
Robert Fountain, Director: Sacramento Regional Research Institute
Don Perry, Senior Economist: California Labor & Workforce Dev. Agency
John Lehn, CEO: Kings County Economic Development Corporation
Anil Puri, Dean, College of Bus. & Econ: CSU Fullerton
Marney Cox, Chief Economist: San Diego Association of Governments
John Husing, Vice President: Economics & Politics, Inc.
California Regional Economies Project
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California Regional Economies Project, a
partnership between the California Workforce
Investment Board and the California Economic
Strategy Panel, provides systematic analysis of
distinct regional economies
Collaborative Economics
 Center for Continuing Study of the California Economy
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Regional EVC Reports
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Regional reports,
economist
presentations, and
Conversation notes
can be found on
CCRL’s website:
www.calregions.org
From Dialogue to an Action Agenda
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Recommendations synthesized and reviewed
in 3 cross-regional meetings (San Francisco,
Stockton, Orange County) with economic
development experts
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Commonly shared issues lifted up into
“Innovation, Investment, Collaboration”
report
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Bringing it all back together: Cabinet
briefing March 3, 2005
A Framework for
California’s Prosperity
The Building Blocks of California’s
Comparative Economic Advantage
State of the State’s Economy
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Modest economic recovery underway
Economic restructuring is taking place in
every region and requires continuous
attention
California is a global leader in key sectors
State government has a critically important
role to play to maintain and enhance
leadership
The key framework for State action:
Innovation, Investment, Collaboration
Competing on Innovation – the
“Complete Business Climate”
California is not a low-cost state and cannot compete
by lowering costs alone
To compete and raise standard of living: State needs a
“pro-innovation” strategy
Yield: productivity growth across all industries-- leading
to increased investment , return on investment and
prosperity
State’s role:
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Create fair & balanced regulatory & tax policies
Support essential investments in human and physical
infrastructure – the key production factors of people, research
and technology, and place
The Complete Business
Climate Approach
Action Agenda Framework:
Key Themes
Emphasize and promote the positives California Assets
Understand fundamental changes in
growth and demographics
Retain and grow current employers as
the first priority -- by improving the
business climate
Action Agenda Framework:
Key Themes
Focus strategically on important regional
and cross-regional “traded” industry
clusters
Invest in the workforce (short- and longterm)
Invest in housing, transportation, and
other important infrastructure, including
quality communities
Action Agenda Framework:
Key Themes
Government streamlining : focus on customer
service and accountability
Government innovation: remove barriers to
governmental efficiency
Government stability and sound decisions:
solve the structural budget deficit and reform
state-local fiscal relationship
Government alignment: state policies and
investments must “fit” regional differences,
needs and opportunities
Action Agenda Framework:
Specific Recommendations
Marketing California
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Build on assets
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Communicate re: problem solving
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Focus on existing businesses, especially small
businesses – the source of most job creation
Attract and retain intellectual assets -- the source
of innovation
Support and align with local and regional marketing
efforts
Goal: Sustainable, competitive industries and good
quality jobs with good benefits
Action Agenda Framework:
Specific Recommendations
Critical Industries
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Ongoing data/analytic process to identify growing
clusters of opportunity
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Use data to guide state policies and investments
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Develop a State R&D Strategy
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Promote collaboration with and among research
institutions and other innovation partners
Reinstate and better target the Manufacturing
Investment Tax (MIC) Credit; assess cap on MIC
and R&D Tax Credits
Action Agenda Framework:
Specific Recommendations
Education and Workforce Investment
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Develop a “seamless” workforce
development system, from K-12 to post-doc
and lifelong learning
Identify critical skills gaps for key industries;
target state funds for job and career
advancement
Promote public-industry partnerships to
meet industry and worker training needs
Action Agenda Framework:
Specific Recommendations
Growth and Infrastructure Planning
and Investment
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Create regional infrastructure plans linking jobs, housing,
transportation, ”green” space and land use
Use these plans to determine State funding priorities
Reward jurisdictions for collaboration on regional planning and
development
Improve CEQA for better housing and development outcomes
while maintaining high environmental quality
Explore and promote options for innovative local “self help”
measures for infrastructure financing
Action Agenda Framework:
Specific Recommendations
Housing
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Take all measures necessary to assure a
sufficient long-term supply of decent
housing, affordable to all income levels
Address prevailing wage rates for
construction – determine and use residential
rates for residential development
Support fiscal reform to encourage housing
production
Action Agenda Framework:
Specific Recommendations
Economic Leadership Network
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Collaborate with and support the Regions to
prepare and implement economic strategies
On-going link among Economic Strategy
Panel, Workforce Investment Board,
Commission on Jobs and the Economy, and
other state entities -- and with Regions
Leverage existing network of regional and
local organizations and explore the potential
for more formal partnerships
Action Agenda Framework:
Specific Recommendations
Federal Agenda
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Organize California Congressional
Delegation for strong leadership and
coordinated efforts to obtain California’s fair
share of funding and appropriate treatment
in federal regulations
In particular, State leaders should work with
Delegation to promote federal research
funding for California – to leverage our
intellectual infrastructure
The Complete Business
Climate Approach
We are your Partners
What Makes a Region Competitive?
Highlighting our Innovation Assets
• San Diego Regional Prosperity Index –
Competing on the Three E’s – Economy,
Environment (Place), Equity (People)
• Economic Opportunity in the Sacramento
Region – Biotechnology/Life Sciences and
U.C. Davis Partnerships
• University of California and NASA
Partnerships – Bio-Info-Nano Research &
Development Institute
Sustainable Competitiveness
The Three “E” Concept
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Sustainable Competitiveness requires a
balance of:
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Economy
Environment
Equity
All three are important for Quality of Life
Strengths of Three E Approach
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Consensus on QOL essential Elements
No internal conflict between Elements
Maintaining status quo not acceptable
Focus political will and initiate actions
Combining The Es
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Each “E” is important, but the strongest
regions do well
in all three…
SUMMARY
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Evaluation tool is a work in progress
Common theme among California regions
www.sandag.org
Our Economic Opportunity in the
Greater Sacramento Region:
Focus on Biotechnology/Life Sciences
Judith A. Kjelstrom, PhD
Director, UC Davis Biotechnology Program
Director, Advanced Degree Program for Corporate Employees
Lecturer in Microbiology and Molecular & Cellular Biology
www.biotech.ucdavis.edu
March 3, 2005
To the Regional Economic Vitality
Briefing:
There is nothing so powerful as an idea
whose time has come.
Victor Hugo
• Biotechnology is no
longer a fledging
technology….
• It is a economic driving
force in the region and
the state, as well as the
world.
Additional background materials are in packet
The Greater Sacramento Region
is poised to become a Mixed
Biotech/Life Science Cluster.
~100 Life Sciences
companies exist in
the Valley
As of 2004:
Over 100,000 Jobs!
per EDD
California is the sixth-largest economy in the world. The state is the
arguable biotechnology leader with clusters in the Bay Area and San
Diego. The public and private university systems are some of the best in
the nation. California universities oversee $3 billion in academic
R&D annually. California has more degreed professionals,
managers, and engineers than any other state.
UC is a Key Player in these Clusters:
Provide Intellectual & Human Capital
• The recent UC Impact Study 2003: California’s
Future: It Starts Here demonstrates the economic
impact on California.
– Through 2011, UC’s contribution is estimated to
total more than 34,000 undergraduates in science
and engineering jobs.
– The impact of UC grads in industry clusters is
estimated at $887 million in Gross Regional Product
for 2002 and $7.4 billion between 2002-2011.
– The value and economic contribution of UC related
start-ups and spin-offs are great. California
headquartered companies founded by UC graduates,
had combined revenues exceeding $1.2 billion in
2001.
UC Davis Economic Impact Brochure is included in packets
UC Davis has Strong Intellectual
Capital in the Biosciences
• UC Davis Genome Center in the new 6-story
Genome and Biomedical Sciences Facility
• Center for Biostabilization – blood products
• Center for Biophotonics Science and Technology
• UC Davis Cancer Center – NCI designated cancer
facility
• California National Primate Research Center
• Center for Comparative Medicine & Mouse Biology
Program
• Center for Metabolomics
• National Center of Excellence in Nutritional
Genomics –focus on minority health
• M.I.N.D Institute – focus on autism
• UC Systemwide Biotechnology Research &
Education Program (UCBREP)
Interdisciplinary Collaboration is a Hallmark
of UC Davis Teaching and Research
UC Davis Partnerships
• Education/Training
– CSU, Sacramento, local Colleges, and
K-12 schools
• Technology Transfer
– Office of Research: TechnologyIndustry Alliances (TIA) – UC Davis
CONNECT
– GSM’s Big Bang Business Plan
Competition
– SARTA (Sacramento Area Regional
Technology Association)
www.sarta.org
– UC Discovery Grants
– Collaborations with other academic
institutions such as UC Merced, LLNL,
UCSF, etc.
• UCD Research Park & McClellan Park
– To promote research collaborations
– To launch spin-off companies
The Strength of UC Davis is in
the Life Sciences
– Division of Biological Sciences
• Numerous outstanding majors: Plant Biology;
Biochemistry; Molecular & Cellular Biology; Genetics;
Microbiology…
– College of Agricultural & Environmental Sciences
• Undergraduate Biotechnology major is one of the
fastest growing majors on campus.
– School of Medicine
– School of Veterinary Medicine
– College of Engineering
• Biophotonics and Biomedical Engineering are examples
of cross-disciplinary areas.
The Designated Emphasis in
Biotechnology is an innovative program for
PhD students (www.deb.ucdavis.edu)
The UC Davis Biotechnology Program is
active in Education & Training
• Co-PI on an NSF grant-Tools to Teach Molecular Biology &
Bioinformatics
“Train the Trainers”
– Courses for Community College and AP High School Biology
teachers
– Joint project with American River College
• Coordinate the NIH Biotechnology Training Grant & DEB
(Designated Emphasis in Biotechnology) www.deb.ucdavis.edu
– Interdisciplinary training for predoctoral graduate students
– Industry internships (3-6 months) & corporate fellowships
• The Advanced Degree Program (ADP) for corporate employees
– A PhD program for the working professional
• Member of Biotech Advisory Committees
– California State University, Sacramento
– American River, Solano and Merced Community Colleges
– Davis Senior High School
Biotech Workforce Needs
• The U.S. is moving toward a knowledge-based economy
that requires higher skills.
• According to the Economic Development Department,
California’s biotechnology firms currently employ 100,000
workers:
– 14% are vocational and community college grads, 50%
BS, 17% MS and 19% PhD (Steven Dahms, CSU).
• One estimate is that the Bay Area biotechnology companies
will need 150,000 more biotechnology workers by
2015 (Sakai and Markland Day, City of Fremont: Life
Sciences Industry Scoping Report, Sept. 2004, p 22)
Where will we find
Biomanufacturing Technicians?
• Hundreds of biotech jobs in Alameda,
Contra Costa and Solano counties go
begging due to a lack of qualified
talent; the most-difficult positions
to fill involve skilled technicians
with two years of community
college or the equivalent
laboratory training, who can
expect earning $35,000 per year.
(“A Critical Analysis of the Local Biotechnology
Industry Cluster in Alameda, Contra Costa &
Solano Counties,” 2002.)
Genentech (Vacaville’s Manufacturing
Facility) is doubling in size in the next
4 yrs and will hire close to 600 new
workers!
(Barbara Smith, The Reporter, July 16, 2004)
Training Facilities are Needed
Workforce training in biomanufacturing is a critical need, especially
for displaced workers.
• UC Davis (in consultation with Solano Community College and CSU,
Sacramento) has developed a pilot plant proposal – CIBER:
California Institute for Bioprocess Education and Research.
– Multi-disciplinary Center for advanced bioprocess training that
includes pilot-scale equipment for all unit operations common in
the production of purified recombinant proteins and other
biological products from microbial fermentation and cell culture.
– Will be used as a training facility for biochemical engineers
and scientists who will be employed in the pharmaceutical and
agricultural biotechnology industries, as well as a continuing
education resource for the West Coast Biotech industry.
– Would also allow strategic training collaborations to be
established between the University of California and the
surrounding community colleges (especially Solano Community
College that also has an established program for training
the biotechnology workforce) and the California State
University system.
• Investment is needed through innovative partnerships:
industry, federal, and state to raise $4-5M.
If We Build it;
Will the Students Come??
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Biotech is Hot, but many students
don’t know about it!
We must reach out to the K-12
teachers to help.
We must instill the Ah-Ha
experience early (by 5th grade)….
Hands-on learning, discovery-based
labs, guest instructors from
industry or university, mentoring
and job shadowing. Before- or
After-School Science Programs.
Community colleges can offer
general education courses on
Biotech Issues to hook undeclared
majors. It can also educate the
community about Biotech.
See the NSF report on science education: www.nsf.gov/sbe/src/seind02/start.htm
Call to Action for the Biotech Workforce
• Increase the effectiveness of publicly funded
training programs;
• Promote alternative education and training
opportunities;
• Keep older workers engaged in the labor force;
• Consider changing immigration policies to better
meet future workforce needs;
• Need more coordination between academia and
industry in creating relevant curriculum
Create Regional Life Science Working Groups
THANK YOU
• Please contact me at:
email: [email protected]
telephone: 530-752-8228
University of California /
NASA Partnerships
Dr. Robert C. Miller
March 3, 2005
California’s Financial Crisis
Contributing Factors
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Loss of high revenues from capital gains
on stock options
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widely used in Silicon Valley to increase
productivity and innovation
Job losses in Silicon Valley totaled
211,740 from the peak in employment in
2001 to 2004
The State’s emphasis must be on job
creation and wealth creation
Economic Development
Contributions Universities and Government
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The key to job creation and wealth creation in California is
innovation and technology development
Research Universities and Federal government laboratories
significantly contribute to state and regional economic
development both directly and though creation of venture
opportunities
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Venture capital in Silicon Valley 4Q 2004 was $1.7B representing 32%
of the national venture capital investment (ref. Mercury News,
February 13, 2005)
NASA Ames economic impact in California is estimated at $1B
annually and creation of 10,000 jobs (ref. Economic Benefit Study,
BAE, July 2004)
Compounding the impact of universities and federal
laboratories through innovative partnerships creates
expanded economic contributions
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“The whole is greater than the sum of its parts”
UCSC/NASA ARC Partnership
University Affiliated Research Center (UARC)
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Partnership between NASA Ames and UCSC to enhance
and assist in NASA’s Research Mission
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UCSC manages the UARC contract for UC System
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NASA Ames $700M R&D program/2500 FTE on-site workforce/$2B land
assets
$330M ten year performance-based task order research contract
Conduct world class research aligned to mission and programs of
Ames
Serves as a portal to entire UC System for Ames
Conducts work at Ames, NASA Research Park and UC System wide
Provides access to faculty, staff and facilities at campuses and
national labs
Creates opportunities for new partnerships
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Innovative research collaborations between UC and Ames
Development of new research capabilities in the NASA Research Park
Build industry relationships in Silicon Valley for UC and NASA
UCSC/NASA ARC Partnership
Bio-Info-Nano Research & Development Institute
(BIN-RDI)
Research
Commons
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Multi-Tenant
Facility
Dedicated-Use
Facilities
Policy
Institute
A proposed partnership of government, academia
and industry to form an exemplar institute in the
Silicon Valley with significant national influence
on the progression of nano-science, technology,
education and socio-economic policy
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Education
Partnerships
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UARC
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Research architecture tailored to increase the
effectiveness of multi-sector R&D investments through
leveraged resources and standardized IP transaction
frameworks
Positioned to exert national influence on nanotechnology
policy, anticipate societal impacts and influence
business commerce and ethics
Self-sufficient membership-based business structure
Broad regional support for BIN-RDI formation
UCSC/NASA ARC Partnership
Venture Center Concept
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Multi-sector partnerships focused on increasing the pipeline
of emergent technologies available to venture capital
investments
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Apply the disciplined techniques of venture funding earlier
in the formation of technical innovation to increase the
economic effectiveness of the strategic research investment
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Increase the permeability of universities for use-inspired-science and
science-inspired-use through targeted investment
Government mission requirements provide initial technology-use
challenges
Leveraged, phased investment and critical evaluation
Resource needs identification, access and infusion
Transfer strategy for effective implementation
Key technology areas
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Bio-Info-Nano, next generation computing, intelligent systems and
robotics, complex systems design and management
Fueling Pre-Venture Investment
Land Asset Leveraging
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Reliance solely on government R&D investment for strategic
research is inadequate
Land Asset Leveraging through public/private partnerships has
the potential to provide continuing revenue to support strategic
research
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NASA projects that development of the NASA Research Park
will contribute an addition $2.3B in economic output and 29,000
jobs to California annually at full development (ref. Economic
Benefits Study, BAE, July 2004)
Benchmarks
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Land asset leveraging has been
successfully employed to support
strategic research
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Discovery Parks, Vancouver, B.C.
Irvine Company/ UCI
Mission Bay/UCSF/QB3
State as a Partner
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State government must be actively
involved in nurturing R&D partnerships
that contribute to regional, state and
national economic health and
development
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Supporting not only the R&D relationship but
also the more aggressive use of capital assets
for the benefit of research
Report from Governor
Schwarzenegger’s Cabinet
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Update on Cabinet Activities and Response
to Action Recommendations from Cabinet
Members
What’s Next
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Where do we go from here?
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Continued outreach and partnership on
implementation
Rural EVC
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California Endowment
Humboldt Area Foundation
How can we collaborate?
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Economic Strategy Panel
Commission on Jobs and the Economy
Inter-Agency Collaboration on A-Team
Thank You!
Regional Economic Vitality Conversations
Summary Report Briefing
For Governor Schwarzenegger’s Cabinet
Presented by the California Center for Regional Leadership
In Cooperation with the Regional Civic Leadership Organizational Sponsors
March 3, 2005
1:00 – 4:00 p.m.
Made possible through generous support from
Pacific Gas and Electric Company and Bank of America