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Egils Milbergs Executive Director Washington State Economic Development Commission
Ten Year Vision
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- Make Washington State the most
The Washington Innovation The Washington Innovation Economy - - PowerPoint PPT Presentation
The Washington Innovation The Washington Innovation Economy - - PowerPoint PPT Presentation
The Washington Innovation The Washington Innovation Economy Economy Recovery or Reinvention? Egils Milbergs Executive Director Washington State Economic Development Commission 1 Ten Year Vision Make Washington State the most
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$787 Billion Federal Stimulus
Innovation
$8+ Billion State Deficit
=
Crisis Or Opportunity? "never allow a crisis to go to waste,"
Rahm Emanuel
3 Washington Economic Development Commission
“Fasten your seat belts. Its going to be a bumpy night.”
Bette Davis All About Eve, 1950
Context
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Shifting of Competitive Advantage Shifting of Competitive Advantage
1960s & 1970s Advantage is Cost
Strategy is “Making it cheaper”
1980s & 1990s Advantage is Quality
Strategy is “Making it better”
2000s Advantage is Innovation
Strategy is “Making something new”
WEDC 4
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Nature of Innovation is Changing Nature of Innovation is Changing
WEDC 5
Development
Linear Model Ecosystem Model
Research Commercialization
- Single discipline
- Hierarchical governance
- Closed system
- Internal talent
- Controlled process
- IP hoarded
- Product centric
- Forecasting demand
- Multidisciplinary
- Self organizing
relationships
- Open innovation
- Access talent everywhere
- IP commons
- Customer centric
- Sense and respond
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Researchers and Entrepreneurs Create New I deas Firm Creation and I nnovation Success Transform ing I deas into Applications
No Capital
The Double “Valley of Death”
Dead Ideas
No Capital
Creating Business Models
Dead Firms
Graphic concept adapted from
- Dr. Charles Wessner, National Academies
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New Model for Economic Development New Model for Economic Development
Traditional Model Innovation Driven Model
Attracting companies Investing in talent and infrastructure Jobs Quality of jobs, per capita incomes Lowest cost of business inputs Higher value inputs, increasing productivity Focus on skills and single occupation Focus on learning and career flexibility Large corporations, economies of scale Entrepreneurs, agile businesses, free agents Top down economic development Bottom-up partnerships and organic growth Investing in technology inputs--Linear Investing in innovation outcome--Ecosystem Competing regions: zero sum game Collaborating regions: value creation game Closed innovation system Open innovation systems, networks Locally focused clusters Globally focused clusters
Washington Economic Development Commission
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Talent Investment & Entrepreneurship Infrastructure
Grow talent in strategic industries and high demand
- ccupations
Diversify R&D base, ignite local innovation and entrepreneurship Invest in smart, clean, and green infrastructure
Develop home-grown talent and continue attracting talent globally Coordinate economic and workforce development Reduce K-12 drop-outs Strengthen post-secondary pipeline Adult learning skills Market life-long learning, discovery, creativity and entrepreneurship Facilitate job transitions Strengthen apprenticeship programs Compete for federal R&D Funds Expand STARS Program and entrepreneurs in residence Strengthen Innovation Partnership Zones Create innovation awards Implement real-time innovation dashboard Increase access to risk capital Focus on infrastructure for innovation Leverage transportation stimulus Implement “”smart utility” services Accelerate transition from oil Deploy next generation broadband Enhance air and marine facilities Ensure infrastructure financing tools Streamline regulatory process Define criteria for innovation projects
“Make Washington State the most attractive, creative and fertile investment environment for innovation in the world”
WEDC Vision
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Education
Economic Development
Companies
Government
Funders
Innovation Ecosystem
R&D
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Deepening Relationships in Washington’s Deepening Relationships in Washington’s Innovation Innovation Ecosystem Ecosystem
IPZs IPZs ADO ADO ADO ADO ADO ADO ADO
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Talent
- Supply of middle skills
- S&E attainment
- Verbal, math, science proficiency
- Educational attainment
- R&D personnel
- Life long learning
Innovation Drivers Business Performance Economic Growth and Competitiveness allows investment in
leads to necessary for
Investment
Entrepreneurship
- University R&D
- Private R&D intensity
- Intellectual property generated
- Company startup
Investment
- Equity investment
- Federal investment
- Foreign capital attracted
Infrastructure
Transport
- Freight
- Information delivery
- Commuting
Business Climate
- Cost of business
- Business attractiveness
Competitive Companies
- Market share
- Productivity growth
- Trade growth
- High impact firms
- Profitability
Increased, Better Employment
- Income growth
- Employment
- Reduced income disparity
Increased State Revenue
- Aligned policy & investment
- State revenue generated
Wealth Generated
- GDP by state
- Standard of living
Economic Growth and Vitality
Metrics for Washington state
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The Innovation Ecosystem Shifts the Debate
WEDC
Federal R&D Offshoring Entrepreneurship Workforce Training K-12 Education Higher Education Broadband Business- University Collaborations Transportation Regional Economic Development Taxes & Regulations Intellectual Property Manufacturing Health
INNOVATION STRATEGY
Policymaking Tends to Focus on Discrete Issues With Narrow Constituencies Alternative is Single Innovation Policy with a Broad Constituency
Energy Trade Cultural Assets Technology Transfer Business Start-ups Seed Capital
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Summary
No one factor independently leads to superior economic
performance--rather it is the interaction of policies and processes that lead one region to outperform others.
Many are well known—sound macro fiscal and monetary
conditions, flexible labor markets, access to capital.
What is new is the growing role of knowledge, human
talent, entrepreneurship, technology investment and rise
- f innovation ecosystems.
And other states and nations are giving innovation top
level policy attention as the driver of future growth.
Implication: A Washington innovation strategy is needed
to come out of the “Great Recession” more stronger, innovative, competitive and prosperous.
WEDC
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14 14 Washington Economic Development Commission 14
It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.
— Charles Darwin