Accelerating Innovation

Lantern Lighting Ceremony Honors US and Japan Friendship

The annual National Cherry Blossom Festival in Washington DC is underway and we will miss it---- necessarily ensconced in Washington State. This once a year beauty is a must see attraction. Peak blooming times are forecasted to start April 1, 2009, and run for up two weeks. In previous years Egils Milbergs had the honor being the master of ceremonies for the lantern lighting ceremony. Every year a 350-year-old stone lantern is lit in the Thomas Jefferson Tidal Basin across from the Jefferson Memorial commemorating the 1912 gift to Washington D.C. of 3000 cherry trees from Mayor Yukio Ozaki of Tokyo to recognize the growing friendship between the United States and Japan. The event includes traditional Japanese performers, the Japanese Ambassador, Washington dignitaries and the Cherry Blossom princesses representing states, territories, and embassies. The lighting ceremony is held at the site of the first two cherry trees planted by Mrs. William Howard Taft and Viscountess Chinda in 1912. Mark Rhoads of the Illinois State Society Home has been a long time organizer of this event. Links below will give you history and flavor of this year's activities:

• National Conference of State Societies: 700 Attend NCSS and NPS ...
• Official Website of the National Cherry Blossom Festival ...
• Bloom Watch
• 2009 Cherry Blossom Festival: Washington D.C. (washingtonpost.com)
• Lantern Lighting Ceremony
• Somewhat Frank's photostream
• www.washingtontimes.com/photos/galleries/cherry-blossom-festival/
• In DC, cherry blossoms share the spotlight with new attractions

Recovery or Reinvention?

When the U.S. economy starts moving again, will it be back to business as usual, or will we be forced to devise new economic strategies? On March 3^rd Washington State University brought together leading experts in innovation, economic development, and personal investing to answer questions about how to chart a sustainable path to prosperity. Egils Milbergs, executive director, Washington Economic Development Commission brings insider knowledge of both federal and state stimulus plans. He was joined by John Gardner, WSU vice president for economic development and extension, and John Nofsinger, WSU business professor and author of The Psychology of Investing and Infectious Greed: Restoring Confidence in America's Companies. PowerPoint presentation

 

To see video of the presentations click on the image below or GO »

The Innovators lecture series highlights Washington State University's research achievements and promotes informed discussion about matters of vital importance in the twenty-first century. Home page link: http://theinnovators.wsu.edu/default.aspx

Innovators recognized in Seattle by Washington Technology Industry Association

Some more positive news from the well-attended Annual Industry Achievement Awards (IAAs) presented by the Washington Technology Industry Association at the Paramount Theatre March 25 in Seattle. The awards program recognized local companies, individuals and students who best demonstrate innovation and excellence in creating new technologies, applications and services. Check out the 2009 winners, as determined by online votes at www.washingtontechnology.org "We've watched the local technology community grow exponentially during our 25 years as an organization, and we believe this year's winners demonstrated that Washington continues to be a home for world class-innovations," said Ken Myer, president and CEO of WTIA. An informal survey of the companies nominated for awards indicated many are hiring workers. "Creating new value for customers is how new jobs are created." said Egils Milbergs, executive director of the Washington Economic Development Commission. "Innovative companies will be a major dynamic in Washington State's economic recovery."

 

Not everyone is signing up for the recession

Bruce Kendall, president and CEO of EDB for Tacoma-Pierce County proffered some good news at the packed annual EDB meeting under the theme of resilience and innovation. He also chairs the Washington Economic Development Commission Link: www.wedc.wa.gov. He highlighted ten projects that are tacking against the headwinds of recession. Here is the list (as reported by Dan Voelpel of the News Tribune):

1. Saint-Gobain Performance Plastics, which recently announced a move to Puyallup. The company, which makes high performance products for the aerospace industry, will employ 115 people.

2. IKEA, the Swedish products retailer, which opened a regional distribution center that serves seven stores in the U.S. and Canada from Frederickson.

3. Art Morrison Enterprises, the maker of top-notch hot rod frames and parts, which plans a move to a $6 million plant in Frederickson later this year.

4. St. Anthony Hospital, the new Franciscan medical center that opened this month in Gig Harbor.

5. Multicare Health Systems' ambulatory surgery center in Gig Harbor, which employs 200 people in a $51 million medical park.

6. South Hill Business & Technology Center, a former microchip manufacturing plan now owned by Benaroya Co., which has started remodeling it into an office and tech center.

7. Pacific Plaza, the former downtown Tacoma eyesore parking garage undergoing an adaptive reuse for office and retail space by PCS Structural Solutions and Absher Construction.

8. The Joy Building, a University of Washington Tacoma building on Tacoma's Pacific Avenue that has renovation funding included in the proposed state budget.

9. Hotel Murano, the former Tacoma Sheraton Hotel, which underwent a massive remodeling into a glass art-oriented destination hotel.
10. Chambers Bay, the Pierce County golf course in University Place, which will host the 2015 U.S. Open.

 

Billy Glover, managing director-environmental strategy for Boeing gave a keynote speech focusing on the company's commitment to a carbon free future. Of particular interest was developing aviation fuels from various kinds of biomass that does not compete as food source (e.g. algae, camellia, and halophytes).

Accelerating Spokane’s Innovation Economy in Health

The Washington Economic Development Commission (www.wedc.wa.gov) is testing its innovation strategy with local communities. The WEDC approach is to build the innovation economy from the ground up by collaborating with local communities to accelerate their innovation objectives. "Innovation cannot be commanded from the center," said WEDC executive director Egils Milbergs, "it must be inspired and enabled at the edge." The first beta was launched March 24 in Spokane when business, academic and civic leaders were convened by Rich Hadley, president and CEO of Greater Spokane Incorporated Link: www.greaterspokane.org. Utilizing a highly interactive discussion format the group articulated Spokane's vision for being a regional medical center for the future.

Some highlights and priorities from the Spokane forum:

• Bolstering the Spokane Riverpoint Campus including four year schools for medical, dental, pharmacy and public health education. The local leadership is advocating for the acceleration of the Biomedical & Health Sciences building within the State's higher education capital program.  http://www.riverpointcampus.org/
• INHS - Inland Northwest Health Services in Spokane is one of the nation's best models for the electronic medical record that the Obama Administration is advocating and funding.  Spokane is a leader in health information technology which is a priority within the stimulus funding.  INHS sponsors a national conference on bioinformatics

• Spokane has four institutes related to the health sciences: Institute for Systems Medicine, Sleep and Performance Research Center, Institute of Shock Physics Applied Sciences Lab (ASL) and a prominent mental health program.

• Sirti is a Washington State economic development agency that focuses on accelerating the development and growth of innovative technology-based companies for health related devices and software in the Inland Northwest.  Entrepreneurial based start-ups and high growth companies can access business coaching and support, tap into the Sirti Technology Growth Fund and SBIR grant expertise, or locate their companies in the Sirti incubation facilities.
• On-going development and recruitment of talent in the health professions and allied health is a top priority.  Community Colleges of Spokane is a key partner in allied health programs.  Corporate Site - Community Colleges of Spokane There is a possible stimulus funding for a Health Science Academy in conjunction with seven K-12 school districts through the Spokane Area Skills Center.
• WSU Pullman, Tri-Cities and Spokane are a research and innovation triangle in the making and desire to explore opportunities.
• Additional discussions during the day focused on energy, advanced manufacturing, workforce development and aerospace as innovation sectors for the Spokane region.

The WEDC will integrate these ideas as part of the strategic plan update, communicate this vision and collaborate with Spokane's leadership to strengthen relationships for the region's innovation ecosystem. Similar innovation roadmapping forums are planned across the Washington state in the next two months. Check the WEDC website for schedule. www.wedc.wa.gov

Washington legislators to unveil budget proposals next week.

The state is facing the largest budget balancing challenge in its history. According to the latest forecast by the Economic and Revenue Forecast Council , the revenue picture continues to worsen and if current spending trends continue the deficit will be over $9 billion through mid 2011. House and Senate legislators are expected to announce their versions of the 2009-11 budgets early next week. Although the state will be getting billions in federal help, it will not make up the shortfall and there will be significant cuts proposed. The pressure will be on to make wise decisions and not undermine the foundations for a sustainable economic recovery. The Washington Economic Development Commission will track the legislative process and assessing the implications for long term innovation performance and pace of economic recovery. Of particular interest will be decisions focused on talent and workforce development, entrepreneurship, regional innovation initiatives, technology commercialization and smart, clean, green infrastructure.

The Economic and Revenue Forecast Council no longer believes that the state economy will lead the national economy in the recovery. Instead, the state economy will recover at about the same time as the national economy. "…Our new baseline forecast assumes that the U.S. and Washington economies will be in recession for most of this year, flattening out sometime late in the third quarter. Growth will remain flat in the first half of 2010, and improve only in the second half of the year. Job losses will continue even after the economy is in recovery…. The forecast for the 2009-11 biennium is $27.9 billion, which is $2.1 billion less than expected in the November forecast. Compared to the unofficial "early guidance" forecast presented in February, the forecast for the current biennium is down $15 million and the forecast for the next biennium is down $538 million." Excerpt Economic and Revenue Forecast Council (March 19, 2009)

 

 

Charging ahead with electric cars

The economic recovery legislation that President Obama signed on February 17th invests more than $5 billion in plug-in vehicles and will increase the numbers and kinds of plug-in electric vehicles on the road. The President has called for one million plug-ins by 2015. The Pacific Northwest is poised to win big in this alternative to vehicles solely powered by internal combustion engines. At least nine car companies worldwide say that by 2013 they will offer plug-in vehicles that use electric motors as their primary means of propulsion, according to Plug-in America, an activist group. (See the list here.) Some will be all-electric drive vehicles (EV). Most will be plug-in hybrid electric vehicles (PHEV) that use small gasoline engines as a backup. The auto companies that have announced delivery dates so far are GM, Chrysler, Ford, Toyota, Nissan, Mitsubishi, Hyundai and BMW. The legislation has a tax credit of up to $7,500 per vehicle. An amendment by Sen. Maria Cantwell (D-WA) extended a 10% plug-in car tax credit to all-electric motorcycles, three-wheeled enclosed electric vehicles, Neighborhood Electric Vehicles, and plug-in cars that have been converted from gas cars or hybrids such as the Toyota Prius. Tax credits were also boosted for advanced battery manufacturing and plug-vehicle infrastructure.

Egils Milbergs, executive director of the Washington Economic Development Commission noted, "The legislation is a significant investment toward reducing our dependence on foreign oil, cleaning up the environment and deploying a more intelligent and efficient transportation system. This public commitment will spur entrepreneurial opportunities, jobs in manufacturing and accelerate implementation of smart energy systems." Milbergs, who commuted in an all electric vehicle (ELCAR) in the 1970s in Palo Alto, California, concluded, "Washington State is well positioned to be an innovation leader in this burgeoning market."

Washington State: Top ranking in the Innovation Economy

U.S. News & World Report integrated two comprehensive studies to measuring the friendliness of the 50 states to entrepreneurs: the 2008 New State Economy Index, by the Kauffman Foundation and the Information Technology and Innovation Foundation, and the Small Business Survival Index 2008, by the Small Business and Entrepreneurship Council. Washington State tops the list by coming in second on the New State Economy Index and fifth on the Small Business Survival Index. Washington is first among the states in steps toward energy efficiency and using more alternative-energy sources. It also has a highly productive manufacturing sector, signaling high wages and a tech-intensive economy. Washington leads the nation in value added per production hour as a percentage of the national average—the difference in value between inputs in the production process and the value of the units as finally sold. But in addition to these nonpolitical factors, Washington also has very low taxes, making the costs of growing a business quite low. It does not have its own income or capital-gains taxes, either personal or corporate. This map lets you click on a state and see where it measures up in the overall rankings of these studies and in some of their most important indicators. Link: View Larger Map

• Read the article in U.S. News & World Report
• The 2008 State New Economy Index from the ITIF

  Small Business Survival Index 2008 from the SBE Council

Entrepreneurs' Role in Economic Downturns

CNBC's "Street Signs" with Erin Burnett featured a segment on how the economic downturn can spark innovation that leads to a new generation of entrepreneurial icons and job creators. Burnett interviewed Kauffman Foundation president and CEO Carl Schramm, who talked about the critical role entrepreneurs play in recessions and the increasing demand for entrepreneurial training such as the Foundation's FastTrac LaunchPad program. Burnett's other guest was Daniel Kivatinos, a laid-off information technology worker, who, after taking a FastTrac class, started his company, Dr. Chrono.

 

Watch Segment (here or below)

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Data Visualizations of the Economy, Recession and Recovery

Some great new data visualization tools are coming along and have the potential to enlighten and inform policy choices.

The American Recovery and Reinvestment Act of 2009 is meant to channel funds into areas critical to both the short- and long-term health of the US economy. See www.recovery.gov. With the national unemployment rate now at 8.1%, the fundamental mission is jobs.

 

UUorld (pronounced "world") is in the business of providing an immersive mapping environment, high-quality data, and critical analysis tools. See www.uuorld.com Based on estimates released by the White House (link here) and other government datasets George Massey has produced some interesting maps. To pique your interest here is one below that shows the number of jobs projected to be created or saved over the next two years, as a percentage of total employment in a state. http://www.uuorld.com/blog/?p=937

Various visualizations of employment losses are being posted on the web. The current pattern (job losses from peak employment in percentage terms) suggests that the recovery is not coming anytime soon. See chart below. We are on a similar path as the 1981 recession, and it is clear that later recessions (1990, 2001) each took longer to return to pre-recession employment. A lot will depend on how and when the stimulus program kicks in.

 

 

 

OECD has a new regional visualization interactive tool—very impressive. Take a look at the classic Gapminder tool.  A must see. Another interesting tool is www.many-eyes.com . Lots of interesting charts and data sets at Visualizing Economics. Smashing magazine tracks the visualization world and is worth checking out: www.smashingmagazine.com . Another terrific resource is FlowingData: www.flowingdata.com

 

I am interested in your suggestions and links to data visualizations of the US economy. Send them in.