The Washington Innovation Economy

A Strategy for Growth, Jobs and Competitiveness in a Time of Fiscal Constraint

Presentation for:
Regional Upward Spirals
Future Technologies, Skills, Jobs and Quality of Life IBM Almaden Research Center San Jose, CA September 27th, 2011

Egils Milbergs
Executive Director Washington Economic Development Commission 1.1 www.wedc.wa.gov

The Other Washington

Commercial Airplanes

COSTCO

We need to solve this problem

Source: Kriss Sjoblom [ksjoblom@researchcouncil.org]

10-4-57
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Sputnik Moments
1985 1957

2011

this is our generations Sputnik moment one small ball in the air Presidents Commission on Industrial Competitiveness

Where policy needs to go

FROM
Short-term fixes Public Sector Jobs Shovel Ready Expand Safety Net Consumption Foreign Debt

TO
Long-term policies Private Sector Jobs Innovation Workforce Skills Investment Exports
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Changing paths to competitiveness

2000s
There is no better time like a downturn to innovate.
Advantage is Innovation

1980s & 1990s

Advantage is Quality Strategy is Make it Better

Strategy is Make something new

1960s & 1970s

Advantage is Cost Strategy is Make it Cheaper

Over half of Fortune 500 and just under half of 2008 Inc. list began during a recession or bear market.
Dane Stangler, Kauffman Foundation

Why such intense interest in innovation?

The central theme in advanced and emerging economies. 2/3 of GDP per capita growth comes from innovation Social return is 2 to 4 times private return (spill-over effect) Technology industries pay 70% more than other jobs Determines country, regional and state rankings. Source of competitive advantage against low-wage nations Addresses needs in energy, health, transportation, water, education, etc.
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The World of R&D 2010

Washington Economic Development Commission

From Idea to Value

Public Policy Macro-Economic Conditions

Product

R&D
Process Infrastructure

Business Model
PUSH

Value
Outcomes

Market Demand
PULL

Mindset
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Evaluated 52 Public Reports, 3126 Indicators

Innovation Vital Signs (2008)

Benchmarking WA Innovation Performance: 2010 New Economy Index

26 indicators in five categories: 1. Knowledge Jobs 2. Globalization 3. Economic Dynamism 4. Digital Economy 5. Innovation Capacity

Source: ITIF
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STRATEGY: Make Washington theFramework Innovation Policy most attractive, creative

and fertile environment for innovation in the world by 2020 Talent
Workforce Skills

Education
Research

Growth
Entrepre neurs

Investment Entrepreneurship

Business

Innovation Ecosystem Associations

Employment GSH Prosperity Quality of Life Competitiveness

Capital NonProfits

Infrastructure

Govt

Innovation Foundations

Regional Innovation Ecosystems

Innovation Outcomes
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Innovation Ecosystems Evolve

Innovation Ecosystem

Innovation Accelerators
Growth Node

Virtual Cluster

Talent STARS IPZs EIRs

Nascent Cluster Few to many firms Fast growth Key linkages None or few firms Growth potential

Many nodes Dense linkages Virtualized functions Network to Network Accelerated collaboration

Patents

Incubators
R&D Tax Incentives

Gap Funding

SBIR

Strategies

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Talent Challenge

Egils Milbergs

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Partnerships: Next Phase of Growth

We are focusing here
Market Pull

Technology Push

PROSPERITY + JOBS

New, Radical, Disruptive GPT

TIME

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Disruptive Innovation Clusters

Global Health Nano Photonics Financial Services Defense Technology Marine Technology Medical Devices Freight Mobility Health Services

Bio-Fuels

Advanced Manufacturing Wine, Water Value-Add Food Smart Grid Clean Tech Advanced Materials
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Electric Car

Water Technology

Cloud Computing, Data Centers

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Innovation Partnership Zones

Bellingham Innovation Zone Aerospace Convergence Zone Sequim, North Olympic IPZ Tri-Cities Research District South Lake Union Life Science IPZ Spokane University District PZ Bothell Biomedical Manufacturing Corridor Central Washington Resource Energy Collaborative Grays Harbor Sustainable Industries Walla Walla IPZ

Global Health Ecosystem

Ecosystem

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Washington STARS
Smart Grid
UW
WSU BSEL Center for Bioproducts and Bioenergy
Hugh Hillhouse

Michael Hochberg Daniel Kirschen

Birgitte Ahring

WSU

Chen-Ching Liu

Entrepreneurs-in-Residence

Faces of Emerging Industries

Lars Johansson

Henry Berg

David Kaplan

Lewis Rumpler

Kevin Petersen

Chris Leyerle

Ronald Berenson Stephanie Amoss

David Croniser

Bryan Zetlan

Karen Fleckner

Terri Butler

Ken Myer

Thomas Schulte

Peter Quinn

Jeff Canin

Transforming Infrastructure
Leave oil before it leaves us!

Post ICE Age?

Internal Combustion Engine

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Pacific Northwest is an innovation powerhouse

PNWER Region (GDP/Pop.) State/Prov. GDP* Population

If PNWER were a separate country, it would rank 14th in total GDP

Wash. 322,778 Alberta 291,300 B.C. 191,006 Oregon 161,573 Idaho 52,747 Alaska 47,912 Sask. 41,296 Montana 29,885 NW Terr. 4,124 Yukon 2,026 Total 1,144,647

6,549,224 3,735,086 4,551,853 3,782,991 1,545,801 686,293 1,049,701 974,989 41,464 34,157 22,901,559

*2009 population & GDP in $US Million

Data provided by PNWER Pacific Northwest Economic Region WA Economic Development Commission 25

Brand Decade of Innovation

www.thenextfifty.org

Leverage the 2012 Worlds Fair Anniversary Launch WA innovation X Prize

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The best way to predict the future is to invent it.

There is an App for that

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