Innovation Partnership Zones

Building a World Class Innovation Ecosystem Presentation for :

Innovation Awards The Council of State Governments Edmonton, Alberta July 19, 2012

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

[email protected]

360-586-5661

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The Problem We Need to Solve

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A Ten Year Vision

Make Washington the most attractive, creative and fertile environment for innovation in the world by 2020

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New Economic Development Model

Traditional Model Attracting companies Jobs Top down development Closed innovation Competing regions Innovation Driven Model Investing in talent, ideas and infrastructure Incomes Bottom-up organic growth Open innovation Collaborating regions

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What do we need to do?

Progress needed along four dimensions

Intellect Emphasize career transition, access to learning resources and the skills that employers need.

Investment Create innovation ecosystem to foster new products, start-ups and manufacturing.

Infrastructure Design a 21 st century infrastructure, an efficient regulatory system and align to local objectives.

International Grow the global presence of Washington’s business.

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Marine Ocean Energy “Twilight” Global Health Defense Technology Agriculture, Composites Aerospace World’s Largest Innovation Park Interactive Media Medical Devices Financial Services Food Processing, Rail Innovation Wind, Solar, Data Centers, Adv. Mfg. Biomedical District Clean IT Urban Clean Water Sustainable Industries Electric Cars Wine, Water Biotech, Energy, Semi conductors, Exports Clean Tech, Smart Grid, Biofuels

Innovation Partnership Zones

• • • Challenge: lots of innovation assets at the local level, but no coordination.

Assumption: innovation happens at the grassroots level.

Solution: identify a consensus vision based on local assets and capabilities and create organizational, leadership structure to coordinate and align local efforts among businesses, ports, higher education, local government, tribes, and other stakeholders.

Other stakeholders Universities Community and Technical Colleges Local development organizations IPZ Private sector businesses Local government Ports Chambers Tribes Communit y colleges Tribes Universities Private sector Local government Non profits Ports 7 WA Economic Development Commission

Case Study #1: Walla Walla

• • • • • • • • • • City of Walla Walla Confederated Tribes of the Umatilla Indian Reservation (CTUIR) ETS Laboratories Port of Walla Walla Walla Walla County Commissioners Walla Walla Valley Wine Alliance Nelson Irrigation Corporation Walla Walla Watershed Alliance Walla Walla Watershed Management Partnership Walla Walla Community College (WWCC) • • • • Zone Objective(s): Water resource management and viticulture promotion.

Region is home to more than 100 wineries.

Sustainable Living Center (SLC) is a new nonprofit educational tenant of the Water Center. Nelson Irrigation Corporation is a private sector partner that engineers irrigation equipment and systems internationally and has developed groundbreaking products for water efficiency utilization.

• Training: WWCC’s Enology & Viticulture Program includes a two-year, full-time course of study, designed for students pursuing careers in the wine industry.

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Case Study #2: Tri-Cities Research District

• • • • • • • • • • • • • • • City of Walla Walla Confederated Tribes of the (WWCC) Port of Benton Columbia Basin College Benton Franklin Workforce Development Council Pacific Northwest National Laboratory (PNNL) YAHSGS LLC Western Sintering Co., Inc.

Science Applications International Corporation Moravek Biochemicals, Inc.

Isoray Medical Innovatek, Inc.

Areva NP Surgical Implant Generation Network Energy Northwest • • •

Zone Objective(s): Energy storage, smart grid, and biofuels.

1,700-acre area located in North Richland.

PNNL as anchor tenant.

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Highlights

Leveraged $155,000 of state capital grant funds with federal stimulus, port, and City of Richland funds for a total investment of $2.4 million for infrastructure and road construction.

Innovatek, a tenant of the IPZ, has a Department of Energy Phase Three Accelerant Grant for production of stand-alone electrical generation fuel cells.

PNNL received $14.2 million for its role in two biofuels research consortia funded by the Department of Energy.

Includes “STAR Researcher” Brigitte Ahring. Dr. Ahring is the Battelle Distinguished Professor of Chemical Engineering and serves as the director of the Center for Bio-products and Bio-energy for all WSU campuses.

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Case Study #3: Grays Harbor Sustainable Industries IPZ

• • • • • • • • • Port of Grays Harbor Grays Harbor Public Development Authority: Satsop Development Park Grays Harbor College Grays Harbor EDC Pacific Mountain Workforc Development Council Imperium Renewables Paneltech International Wishkah River Distillery • • •

Zone Objective(s): Green and sustainable industries

Received $1 million at the time of designation in 2007 to build the lab and incubation space and leveraged with a 2010 federal Small Business Administration (SBA) grant ($427,500), allowing for acquisition of a 20,000-square-foot building on port property.

IPZ branding helps port’s efforts in leveraging assets and attracting new businesses.

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Highlights

Establishing a regional partnership to capture industrial byproducts as resources and share research and development efforts among a group of companies.

Grays Harbor Paper generates green paper byproducts that have been used by Paneltech in the manufacturing of their products.

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Regional Innovation Clusters Evolve

Transformational Innovation Assets Growth Emerging Talent STARS Patents IPZs EIRs Incubators R&D Gap Funding Tax Incentives SBIR Nascent None or few firms Growth potential Few to many firms Fast growth Some linkages Accelerated collaboration Many linkages Attraction of firms

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Many nodes Dense linkages Region to Region Next generation

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Going Forward

1. Relationship capital is the secret sauce 2. More focus on local vision, plans and metrics 3. Operational funding is critical 4. New financing resources and tools e.g. TIF 5. Aligning agency programs to local priorities 6. “Porous” boundary definitions 7. Leveraging assets between IPZs 8. Web based collaboration platforms 9. Best practices clearinghouse 10.Rigorous evaluation of outcomes

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September 2012 celebrates Commerce & Innovation Economy

www.thenextfifty.org

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Thank You!

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• • • • • •

Metrics

IPZ Performance Metrics

Additional investment

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Private sector investment

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Investment from outside the zone Job creation / retention

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# of jobs created

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# of jobs retained within wage range Increased commercialization activity

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$ increase in sales or sales orders associated with IPZ research

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# of licenses, patents, applications for innovation research Increased collaboration and/or community partnerships

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Zone-hosted conferences, creation of incubator, visiting scholars Unique criteria

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Formation of an advisory board

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Incorporation as a non-profit

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Launching and IPZ website Creation of tailored curriculum

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IPZ Annual Reporting

Number of trained workers added to state workforce as a result of training provided within IPZ Number of potential business sites added (commercial and industrial building developed, redeveloped or newly occupied) attributable to IPZ innovation, research, and commercial application Number and type of other assets developed (to retain, grow and attract business) Dollar value of infrastructure and other investments completed Evidence of commercialization of IPZ research (licenses, patents, trademarks, etc.) Descriptions of research being conducted within the IPZ and potential commercial applications Other reasonable performance criteria that may be developed by Commerce.

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