Transcript 02 - Arkansas II

Innovation U: Long and Winding
Road or Superhighway?
Leslie Boney
Vice President, UNC System
International, Community and Economic Engagement
Annual Arkansas Trustees Conference
December 5, 2014
UNC: A 17 Campus System
NCSSM
WSSU
UNCSA UNCG
NCA&TSU NCCU NCSU
ECSU
ASU
WCU
UNCC
UNCA
UNC-CH
221,000 students; 11,500 ft faculty
6 Doctoral/Research Universities
6 Master’s
3 Baccalaureate
1 Special Focus (art, music, and design)
ECU
FSU
UNCP
UNC-W
Getting started: problem statements
“Too many Southerners see their careers based
on their ability to do specific things: make
things, drive things, dig things, lift things or pick
things. The economy, meanwhile, is rewarding
those – regardless of race, gender or ethnicity –
who have the ability to think things.”
George Autry, Founder, MDC, Inc., 1998
“We are currently preparing students for jobs
that don’t yet exist, using technology that has
not yet been invented, in order to solve
problems we don’t know are problems yet.”
From “Shift Happens,” by Karl Fisch, 2006
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Getting Started:
NC Job Change 1990 to 2012
200,000
182,905
The loss of about 80% of our traditional
manufacturing jobs
Courtesy: Ted Abernathy
180,000
160,000
140,000
120,000
92,531
100,000
1990
86,962
2012
80,000
60,000
40,000
30,685
30,229
16,530
20,000
6,119
8,338
0
Textiles
Tobacco
App/Cut Sew
Furniture
Source: NCESC.com
A new model?
Not your father’s Oldsmobile… battery
• Alevo, a company formed by an international
management group, started with technology
originally developed in Norway, with principal clients
in China and Turkey, manufacturing new battery
technology in Concord NC
•
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$1 billion investment
2500 direct jobs
6000 indirect jobs
Near infrastructure, UNCC
One Solution: Relentless Innovation-The Modern Economy’s Fuel
1.
Innovation creates new products, services, practices that yield value
2.
Innovation comes from the application of science & technology
3.
Between ⅓ to ½ of U.S. economic growth comes from innovation
4.
Innovation has a big (5x) multiplier effect (across sectors & skill levels)
5.
High-tech companies’ biggest impact is to grow the labor market
Bottom line for states:
Best way to create jobs for all is to start/grow high-tech companies – relentlessly.
Courtesy John Hardin, NCOSTI: SOURCES: U.S. Department of Commerce; Moretti 2013, “The New Geography of Jobs.”
NC is Below Average
in High-Tech Companies
(NC’s economy is low on fuel)
US
NC
Yet NC is Above Average
in Academic R&D
NC
US
UNC Research Trends
and Innovation Snapshot
2013)
Invention
Disclosures
Doctoral Granting
Institutions
ECU
NCA&TSU
NCSU
UNCCH
UNCC
UNCG
US Patents Licenses or
Issued
Options
Executed
Start-ups
10
8
238
138
31
18
2
2
37
25
17
1
1
0
111
56
18
10
1
1
8
14
4
1
6
1
1
1
All other
Institutions
UNC and Innovation:
Governor One:
“The Entrepreneurial State” (May-July 2006)
“The Entrepreneurial University” (JulyDecember 2006)
11 UNC entrepreneurship “centers” form (20062010)
UNC and Innovation:
Governor Two:
• The Innovation Papers – blog series (2009-2010)
• Innovate, Collaborate, Accelerate report – UNC;
IBM; campus teams (2009)
• Application to i6 program – ACTION fellows,
shared services approach (2010)
• Individual campuses tweak RPT policy (ongoing)
• Governor’s Innovation Council (2010-2012)
• Blackstone Entrepreneurial Network (2011-)
• UNC Strategic Plan (2013)
“Innovate, Collaborate Accelerate”
recommendations (2009):
Figure out what we do well:
• ID system unique strengths in research and IP
• ID each campus strengths and role
Strengthen the culture:
• Support entrepreneurial faculty and offer mentoring
• Recognize entrepreneurial faculty and technology development
through RPT
Make the process work:
• Multiple models of relationships with businesses, focused on speed
• Look for shared services – assessment, consistent legal guidance,
toolbox
UNC Strategic Plan, 2013
• Support game-changing research that solves the
problems of North Carolina – and the world
• Recruit highly-entrepreneurial grad students and post
docs
• Improve REACH NC research expertise portal
• Connect campuses throughout the world
• Develop “innovation discovery teams”
• Advance early-stage ideas through proof of concept
fund
• Invest in commercialization of developed ideas
Windows of Opportunity
Windows of Opportunity Open – Two or more “streams” (i.e., arenas,
realms, contexts, etc.) converge – the streams include the problem,
politics, or policy
Problem Stream
Politics Stream
Window of
Opportunity
Policy Stream
From Birkland: “After Disaster,” Political Science
Quarterly, 1998
Courtesy Dr. John Hardin, UNC Chapel Hill and OSTI
Econ dev board
UNC Strategic Plan
Manufacturing
Energy
IT
Defense
Pharma
Tourism
Advanced mftg
Energy
Data Science
Defense, mil, security
Pharmacoengineering
Coastal and marine sci
UNC and Innovation:
Governor Three:
Governor convenes venture capital group (May 2013)
Innovation Index (November 2013 – also 2000, 2003, 2008)
Economic Development Board “Jobs Plan” (January 2014)
Governor convenes universities to highlight challenges (April 2014)
Governor forms Innovation to Jobs (I2J) committee, tasks OSTI, chief of staff
to manage; university and venture co-chair (June 2014- December 2014)
Survey of 1000 stakeholders (July 2014)
Governor declares NC vertex of “innovation triangle” (October 2014)
Governor speaks to UNC Board of Governors (January 2015)
Governor introduces specific legislation (February 2015?)
Emerging Issues Forum “Innovation Reconstructed” – 1300 attendees
(February 2015)
Major Innovation Challenges
(Components in short supply)
1. Translation – Insufficient development and/or dissemination of
university-based structures and practices for technology
commercialization
2. Capitalization – Insufficient funding for technology proof of
concept, validation, IP protection, commercialization, early and
mid-stage product development/production, and business
expansion
3. Operation – Insufficient number and utilization of seasoned,
mature, business professionals to run startups and guide
companies through growth and expansion
What Does Big Picture
Look Like?
Sequential Model of Innovation Commercialization
Pre-Commercial Arena
Invention/
Innovation
Proof of
Concept
Commercial Arena
Market
Validation
Product
Development
Company
Expansion
(Jobs)
What Interventions
Are We Working On?
Adapted from Innovation Index, Hardin
Pre-Commercial Arena
Invention/
Innovation
Proof of
Concept
Commercial Arena
Market
Validation
Campus culture, funding
for research in areas of
strength
Discovery teams, proof of concept fund
SBIR/STTR matching fund,
commercialization grants
Talent recruitment
Product
Development
Venture recruitment, some
campus
Tax policy
Company
Expansion
(Jobs)
Innovation U 2.0 (2014):
Themes for Success
 A loud priority from the top.
 A cultural shift towards entrepreneurship/risk-taking on all levels.
 Inclusion in Mission Statement.
 Senior management some private sector experience.
 Blurring of university/industry.
 Faculty with industry experience in hirings and promotion.
 Flexible faculty pay/time structures.
 Flexible requirements and class structures.
 Cooperative research projects.
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Innovation U 2.0:
Themes for Success
 Restructure into more functional units.
 A centralized point of contact for industry.
 Explosion of student entrepreneurship opportunities, which work as a
system:
 Curricular expansion (classes, minors and majors).
 Co-curricular (centers, incubators, accelerators, institutes, contests,
clubs, funds).
 Extra-curricular (internships, collaborative research).
 NOT JUST BUSINESS OR STEM STUDENTS.
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
Innovation U 2.0:
Getting Beyond Research
Universities
Loud, senior leadership makes commercialization a priority.
 Identify and utilize alumni and/or local business people as
mentors/facilitators.
 Campus-wide entrepreneurship classes/projects (requirement?).
 Funds/contests for students and faculty.
 Focus on one discipline with potentially strong industrial consequences in
hiring, internships….
 Hire faculty/leadership with some industry background.
 Create a system: strategy with several different parts.
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Points of Emphasis
for Universities and States:
Bring in, raise up talent – in university students, staff and faculty
Get data on where you are
Deal with culture – eliminate penalties; find rewards
Find way to assess what you have – create easy decision trees
Look for shared services – in assessment, legal, template
agreements
• Create different helps at different stages – proof of concept, seed,
growth
• Bring in, raise up talent – in universities, in investors, in managers
Extra slides for reference
NC General Assembly
SB 741
• “Game-Changing Research (16011) – Funds
focused investments in faculty, research and
scholarship in six priority areas: advanced
manufacturing; data sciences; defense, military,
and security; energy; marine and coastal science;
and pharmacoengineering. The investment in
data sciences shall include data sciences
programs at UNC Charlotte.- $3,000,000.
Recurring.”
ROI
RFP rules:
• Significantly advance UNC research and scholarship in
one or more of the six areas described above;
• Demonstrate the potential for near-term and longterm impact;
• Develop programs with high potential to leverage
significant internal support and external funding from
government, corporate, and foundation partners;
• Describe a realistic sustainability plan.
Prosperity Zone Comparisons
Total Job Growth 2000-2012
15%
9.2%
10%
6.4%
5.4%
5%
0%
-5%
-1.8%
-2.6%
-10%
-0.9%
-9.9%
-15%
-20%
-21.4%
-25%
Zone 1
Zone 2
Source: QCEW County Sector Data
Zone 3
Zone 4
Zone 5
Zone 6
Zone 7
Zone 8