Innovation Ecosystems

Washington’s Economic Development Commission winds down. Remaining functions transition to Commerce Department.

It was a long and arduous legislative session in Washington state (167 days) but finally House and Senate legislators and the Governor came to an agreement on the operating budget for the next 2013-15 biennium. It is with great regret that funding for the Washington Economic Development Commission (WEDC) is eliminated. Furthermore, the STARS and Entrepreneurs in Residence program which the commission shepherded with outstanding results is also eliminated. The WEDC will no longer have an independent full time staff. The strategy, oversight and performance evaluation functions of the WEDC will be absorbed by the Department of Commerce. Modest transition funding of $75K is provided for convening a working group of former commissioners and Associate Development Organizations (ADOs) to address specified tasks.

The WEDC leadership worked hard at making the case that a non-partisan, public-private forum with an impartial view was worthy of continued state support. We emphasized the value of the private sector working jointly with the state's leading policymakers in shaping a long-term and cohesive economic growth strategy, establishing benchmarks for performance accountability and ensuring rigorous data standards for evaluating economic development programs, taxes and regulations. Many legislators appreciated the merits of an independent entity championing these values and goals—but in the end other priorities prevailed in budget deliberations.

It has been an honor to work with a fantastic group of commissioners in building a forward-looking strategy, organizing numerous innovation conferences and events, preparing research reports, managing policy development and engaging hundreds of business, education, and civic leaders in our priority-setting process. We covered every latitude and longitude of this wonderful state. Collectively we designed a potent policy framework for talent development, innovation and entrepreneurship, infrastructure, regulatory efficiency and international business. I am confident many elements of this policy framework will endure and help guide policymakers in the future.

We played a central role in designating 15 Innovation Partnership Zones across Washington State. The IPZ program garnered recognition as a best practice by the National Governors Association and in a national competition won a first place Innovation Award from the Council of State Governments. This bottom-up and essentially no-cost initiative has leveraged millions of federal, state and private sector resources for their unique innovation focused strategies.

Through our Entrepreneurs-in-Residence program dozens of new start-up companies were launched commercializing the intellectual capital of the University of Washington and Washington State University. The STARs program guided by the Innovation Advisory Committee provided the critical seed funding for recruiting world class entrepreneurial researchers and enabled the establishment of two outstanding research commercialization centers: Bio- products, Sciences and Engineering Laboratoryand the Energy Systems Innovation Center.

It was an impressive team effort facilitated greatly by the stewardship of Roger Woodworth (chair), Bruce Kendall (former chair) and Steve VanAusdle (vice-chair). I also salute my superb and productive staff—especially the amazing operational skills of Noreen Hoban who has been with me since the beginning and Spencer Cohen who set the bar for high quality analysis and rigorous standards for evaluation.

As the next steps are undertaken for the state's economic development, we should refresh our pledge to make Washington the leading birthplace of innovation and world changing ideas, business models, products and services. An enduring public-private commitment to action will be essential for this vision to be realized.

It has been a great honor and privilege to be of service to Washington State.

Warmest regards,

 

Egils Milbergs

Executive Director

Washington Economic Development Commission

Jobs Growth and Competitiveness Plan Released by the Washington Economic Development Commission

Washington State can accelerate job growth and become the leading innovation hotspot of the world. So concludes the Washington Economic Development Commission's final report, Driving Washington's Prosperity -- A Strategy for Job Creation and Competitiveness.

In accepting the commission's report, Governor Inslee observed: "This is a new era for economic development, an era where embracing innovation, inclusiveness and accountability brings out the best in us." He added, "I appreciate the Commission's efforts to set this foundation for our state's future economic opportunity, jobs and quality of life."

In short, the plan offers a roadmap for the state to differentiate itself, attract new investment and help grow family wage jobs. According to Commission chairman Roger Woodworth, "Growth is stronger when resources are leveraged for impact and aligned with a cohesive policy framework. A focus on fundamentals, coupled with leadership and a long view, will yield a more resilient economy for our state," he said.

Among the Commission's findings, the state's substantial economic development efforts have tended to be short-term, narrowly focused, and rarely coordinated across agencies. Commission Executive Director, Egils Milbergs observed that, "Rigorous evaluation of economic development programs is infrequent, limiting the evidence policy makers and taxpayers need to judge performance. We can and must do better if we're to unleash creativity, accelerate job growth, and secure our technological leadership over foreign competitors."

The Commission's report advances a strategy to overcome this fragmented approach to economic development, identifying five key drivers for ensuring job creation and competitiveness:

• Make talent a top priority
• Invest in entrepreneurship
• Connect through reliable infrastructure
• Regulate in the smartest ways
• Expand international business

The report includes an analysis of the State's competitive strengths (such as in research and development, patent production, technology jobs growth, venture capital investment, manufacturing and exports) and weaknesses (such as in the rate of jobs recovery particularly in rural regions, in-state production of scientists and engineers, workforce skills, household income, investment in transportation infrastructure and foreign direct investment).

The Commission prepares the legislatively authorized report every other year. This year's plan is the result of multi-stakeholder dialogue among leaders in business, education, labor, economic development, and government. More than 650 stakeholders participated at 15 regional strategy forums.

Below are links to the strategy report and the series of evaluation reports to inform the plan and economic development mission of the State.

Driving Washington's Prosperity: A Strategy for Job Creation and Competitiveness

http://www.wedc.wa.gov/Download%20files/2013StrategicPlan.pdf

Economic Development Programs and Investments: Review of Evaluation Practices in Washington State http://www.wedc.wa.gov/Download%20files/Evaluation_Practices.pdf

Vital Signs for Economic Development http://www.wedc.wa.gov/Download%20files/Vital_Signs_for_Economic_Development.pdf

Innovation Sources, Practices, and Economic Development Programs Serving the Needs of Businesses: A Survey of Businesses and Recommendations

http://www.wedc.wa.gov/Download%20files/WEDC_SURVEY_OF_BUSINESSES.pdf

The Washington Economic Development Commission (WEDC) is an independent, non‐partisan commission established to assist the governor and legislature by providing leadership, direction, and guidance on a long‐term and systematic approach to economic development that will result in enduring global competitiveness, prosperity and economic opportunity for all the state's citizens. For more information on the state's economic development strategy, policy reports, meeting schedules and status of recommendations visit Washington Economic Development Commission at www.WEDC.wa.gov.

Milbergs previews state innovation strategy before advanced manufacturing group

Egils Milbergs, executive director, Washington Economic Development Commission (WEDC)  previewed the state economic development strategy before manufacturing executives at a July 26th Center for Advanced Manufacturing Puget Sound (CAMPS) meeting in Kent, WA. The draft final strategy report was approved for public review. A road tour and series of community economic development forums are planned for August and September. The final report is expected to be completed before the end of the year. DOWNLOADS:

Download Milbergs CAMPS 1.1 KENT 7 26 2012

Download Innovation Pillars Schema 4 51

Download 2012StrategicPlanDraft.4.52 pdf

Priorities for Kick-starting Job Creation in Washington State

We cannot wait for national recovery. The state needs a job growth strategy. However, the task of kick-starting job creation is daunting when the state budget faces such huge fiscal constraints.  Policymakers must make difficult budget trade-offs in ways that do not undermine the future prosperity we seek. Generating more private sector investment and job creation requires that business have confidence in the state’s long term policies for economic development and innovation.

Offered below and in the attached statement are priorities in the context of advancing four key pillars of the innovation economy: talent, investment, infrastructure and exports. These are the pillars the Washington Development Commission adopted in its plan to make the state the most attractive, creative and fertile environment for innovation in the world. Focusing legislative activity on these longer term priorities and related actions will contribute to business confidence, economic recovery and job creation. Download Job Creation Priorities of the Economic Development Commission  

As a matter of priorities the state should focus efforts on the following:

 
1. Talent. Emphasize investments in career transition rather than in temporary income maintenance and reorient training and education priorities to meet employment demand.

 2. Investment and Entrepreneurship. Affirm commitment to policies that create an “innovation ecosystem” that fosters entrepreneurship, business investment and on-shore manufacturing.

 3. Infrastructure and Regulations. Design a 21^st century infrastructure and regulatory environment that enhances business investment and job creation and aligns with regional job creation objectives.

 4. Export. Intensify efforts to grow the national and global presence of Washington’s businesses.

Four Pillars for Economic Growth and Job Creation

Despite the official end of the recession, the economy recovery remains excruciatingly slow and Washington state is still more than 100,000 jobs in the hole. The overarching imperative is clear. We must urgently learn more, create more, make more and export more. Innovation will be the key driver in accelerating economic recovery. Four pillars underpin a 21^st century innovation economy: talent, investment and entrepreneurship, infrastructure and exports. Getting the economy back on a sustainable path will take extraordinary leadership from the private sector and every level of government—federal, state, local and tribal. Our new commissioners are in the process of updating the state’s economic development strategy and, in parallel, conducting an in-depth outcome evaluation of over 124 agency economic development programs.

To create jobs Washington must set itself apart and make our state the most attractive environment for innovation in the world. We invite your thoughts as we move forward. LINK: www.wedc.wa.gov

Powerpoint charts on Washington state's innovation plan.

Download Four Pillars for Economic Growth and Job Creation by Egils Milbergs

Egils Milbergs briefs Greater Seattle Chamber of Commerce on the "World's Largest Science and Innovation Ecosystem"

The Pacific Northwest region is a case study on creating the world's largest science and innovation ecosystem. In a special presentation at the Greater Seattle Chamber of Commerce, CEO Roundtable, Egils Milbergs highlighted the work of an 18 member public-private commission focused on transforming the Washington state’s economy to be more creative, open and collaborative. He discussed the dynamics of government, business, academia and philanthropy in bringing about this change. He presented a new public-private model for driving Washington's economic future and the requirements for economic recovery and job creation.  These topics will be integrated into the foundation for the next update of the State's long term economic development strategy and action recommendations to be presented to the Governor, legislature, congressional delegation and public later this fall. LINK to presentation slides: Download Egils Milbergs 1.5 Final Seattle Chamber of Commerce July 13 2010

Egils Milbergs is the executive director of the Economic Development Commission of Washington State. The Commission is charged with developing a long term economic development strategy and making the state the most innovative region in the world. He was appointed by Governor Chris Gregoire on January 23, 2008 after a nation-wide search. He is a noted thought leader in competitiveness policy and champions the vital importance of US technological, manufacturing and innovation leadership to long-term prosperity. In Washington State he is advancing the concept and practice of regional innovation ecosystems. He held previous positions as president and founder of the Center for Accelerating Innovation, president of the National Council for Advanced Manufacturing, president of the Institute for Illinois, Deputy Assistant Secretary for productivity, technology and innovation for the U.S. Commerce Department, and executive director the President's Commission on Industrial Competitiveness.

Marketplace for Idea-Sharing. Big Think Launches with 2292 Ideas (and counting)

(www.BigThink.com ) is an on-line beta site launched today for the growing global conversation about where we are and where we're headed. Harvard educated co-founders Victoria Brown and Peter Hopkins germinated the idea for Big Think while working together at PBS on the “Charlie Rose” show in 2006. Taking a cue from elite private institutions and conferences that convene thought leaders from a variety of backgrounds and perspectives to swap ideas about pressing global issues, Big Think is adapting this model to the more egalitarian Web medium. Combining journalistically produced interviews with user-generated content, and playing both moderator and mediator, Big Think is attempting to be a bridge between edited and so-called informed opinion and the less controlled freestyle of online social media – a potentially unique civic engagement platform.

"We live in a global age, and yet there is no central, global forum to exchange, discuss and debate the big issues and ideas of our time", says Big Think co-founder Victoria Brown. "Big Think is a needed social endeavor that will allow an engaged global audience to share the same platform as leading voices from around the world. Big Think is driven by the conviction that this conversation should be open across all geographies, boundaries and jurisdictions - not limited to one class, rank or station."

A formidable group of financial backers who share the founders' vision for raising the quality of media are investing in the project including Peter Thiel (PayPal, Facebook and Clarium Capital), Larry Summers (Former Secretary of the Treasury, Former President of Harvard), Tom Scott (Nantucket Nectars and Plum TV), and Gary David Goldberg (creator of Family Ties and Spin City). David Frankel, South African venture capitalist, is lead investor.

Link to New York Times article: Ex-Harvard President Meets a Former Student, and Intellectual ... New York Times

An Innovator On The Road Not Taken: Ken Hendricks

Ken Hendricks died December 21, 2007 after falling from a construction site at his home in Afton, Wisconsin. This is a real tragedy for his family and also for those of us who were working on one of his many projects and entrepreneurial ventures. His rise from a 11th grade drop-out to the founder of ABC Supply, the largest provider of roofing and siding materials to contractors in the United States and a Forbes listed billionaire, is testimony to the opportunities available to all hard working and talented individuals. He will certainly be missed.

One of the most compelling stories of his life is how he turned around the struggling community of Beloit, Wisconsin. He made a lot of friends and more money redeveloping older vacant properties such as the former Beloit Mall and Beloit Corp. The 450,000-square-foot mall is now the Eclipse Center and holds a banquet facility and convention center, Cardinal Stritch University, Energy Services Inc., department store Elder-Beerman and several public services. The 800,000-square-foot former Beloit Corp. is called Ironworks and was converted for industrial and office use with massive murals on the building. He dreamed a change in Beloit and now hundreds of people are living in his dream. He didn’t neglect the blue collar jobs in favor of white collar jobs—he created both. He was on the road to developing hundreds of new green collar jobs through his environmental/energy ventures. .

The Plot in Rockford, Illinois: A Prototype Innovation Ecosystem

Ken Hendricks  also saw opportunities in Rockford, Illinois, a community just south of Beloit and approximately 90 miles northwest of Chicago with a population of approximately 150,000. Rockford's 20th Century industry revolved around machine tools, heavy machinery, automotive, aerospace, fastener and cabinet hardware products, and packaging devices and concepts. During the 1980s the Rockford area went in to a severe economic decline as foreign competition and demand shifts in the manufacturing sector severely impacted the economy and employment structure. Rockford experienced one of the highest unemployment rates in the nation. In a typical American story of resilience, Rockford is re-inventing itself and is now in transition as the business, political and civic leadership look to new markets, entrepreneurship and innovation based businesses to drive the future economy.

Ken Hendricks worked closely with Rockford Area Ventures and

EIGERlab -- the creative forces for positioning Rockford as a global innovation hotspot. Ken believed that the huge inventory of abandoned industrial buildings and pool of highly skilled retired or unemployed workers in Rockford were not a liability, but an asset for the future. Ken acted on this insight and purchased the vacant Essex Wire plant on the 2800 block of North Main Street. He challenged us to make it a catalyst for a new Rockford entrepreneurial and collaborative spirit. Those involved with the project’s evolution were  excited about designing the facility as a global center for innovation, learning and advanced manufacturing. Ken was an inspirational character—little ego, optimistic, entrepreneurial and a man of great accomplishments. I remember a number of meetings with him as we discussed the EIGERDome project and issues important to Rockford—K-12 education, leadership, business incubators, emerging markets, green technology, alternative energy, wind turbines and broadband access. He was focused on catalyzing more collaboration between industry, education and government. His insights were respected and he was always encouraging those around him to get on with the job. He was a visionary and, more significant, an actionary. It is my hope that Ken’s life story, and legacy, will make the EIGERDome a launch platform for dozens of creative projects and entrepreneurial ventures.

 

2006 Governor's Awards Recipients: Ken and Diane Hendricks

29 Oct 2007 by [email protected] (wifoundationarts)  
An excerpt from Wisconsin's 2006 Governor's Awards in Support of the Arts, recognizing the life and work of Ken and Diane Hendricks of Beloit.

YouTube :: Tag // work - http://youtube.com/rss/tag/work.rss

Building Supply Billionaire Kenneth Hendricks, 66 - washingtonpost.com

Funeral Services for Ken Hendricks (December, 2007)

10 questions for Ken Hendricks - Entrepreneur of the Year

Billionaire made Beloit his business...Read Article
August 11, 2007 - The Wisconsin State Journal

Hendricks helping turn city around ...Read Article

October 10, 2007 - The Daily Gate City

The Roofer’s Son ...Read Article
September 2007 - Reader's Digest

Ken Hendricks in Forbes ...Read The Interview

The 400 Richest Americans 2007, Secrets Of The Self-Made Q&A
September 20, 2007 - Forbes

Hendricks: 'It's all about treating people right' ...Read Article
June 25, 2007 - The Janesville Gazette

Entrepreneur of the Year
December 2006 - Inc. Magazine ...Read Article

December 26, 2007 in Global Innovation, Innovation, Managing Innovation, Regional Innovaton | Permalink | Comments (0) | TrackBack (0)

University Research Generating More Patents, Licensing Income, Startups and Spinouts

The latest figures reported by the Association of University Technology Managers (AUTM) indicate that public and private sources spent more than $45 billion for R&D on university campuses in Fiscal Year 2006. Some statistics from the report:

• Managed 18,874 new invention disclosures

• Filed 15,908 total U.S. patent applications

• Saw 3,255 U.S. patents issued

• Signed 4,963 new licenses

• Managed 12,672 licenses and options that are yielding active income.

• Had 697 new products introduced to the market in 2006

• Introduced more than 4,350 new products into the market from FY1998 to FY2006.

• Launched 553 new startup companies in 2006.

• 5,724 new spinouts since 1980,

The top performers in licensing income include Duke, New York University, Stanford, the University of California system, the University of Wisconsin and Wake Forest University.

Download US Licensing Activity Survey FY2006

UK Gets a Taste of Open Innovation

A post by David Simoes-Brown about Open Innovation guru Henry Chesbrough’s visit to NESTA. NESTA is the National Endowment for Science, Technology and the Arts with a vision to transform the UK's capacity for innovation. Chesbrough has been described by the Economist as “the godfather of open innovation”.  Click here for a short video of him in action.

Henry Chesbrough opened the corporate lab with a presentation on the theory of open innovation, and lead the discussion on the implications for practice.  You could tell this subject is hot by looking at the quality and seniority of the audience from organisations as diverse as ARUP, AstraZeneca, BBC, BT, GSK, IDEO, RBS, Oracle Kodak, Capgemini, McLaren F1, Microsoft, Oracle, Unilever, P&G and Cancer Research UK.  Henry explained why open innovation was on the rise citing factors such as the explosion in venture capital, private funding of universities and increasing workforce mobility amongst others.  He then outlined four themes of the 'logic of open innovation':

· Good ideas are widely distributed and no-one has a monopoly;

· Not all the smart people work for us; 

· Companies must employ poker players as well as chess players;

· You must manage IP in order to manage research. 

Center for Open Innovation

About NESTA Connect

About NESTA

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NESTA Research Reports

The following links take you to a list of all NESTA's Policy and Research Unit's research reports. 

· Understanding UK innovation

Of particular interest is the Leading Innovation report on how to build effective regional coalitions for innovation. For regions without the extraordinary assets of Silicon Valley (what is termed here ‘ordinary’ regions), making the leap from an old-economy paradigm to one based on innovation in services and high-tech industries can seem impossible. But it isn’t. As shown in the report, it is made up of a series of smaller, more achievable steps. Two things stand out, however: this isn’t a fast process; and it requires deep regional knowledge and strong regional leadership.

The case studies presented in this report showcase seven European regions that have successfully made the transition from ordinary to innovative region; and four UK regions that are somewhere along that journey. It concludes by presenting a guide to the ‘regional innovation journey’ and an analysis of the types of leadership that may be required along the way.

Download the Leading Innovation