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Egils Milbergs Executive Director
Washington Economic Development Commission
Olympia, Washington
www.wedc.wa.gov
360-586-5661
Innovation Partnership ZonesBuilding a World Class Innovation Ecosystem
Presentation for :Innovation Awards
The Council of State GovernmentsEdmonton, Alberta
July 19, 2012
1
A Ten Year VisionMake Washington the most attractive, creative and fertile
environment for innovation in the world by 20203
New Economic Development Model
Traditional Model Innovation Driven Model
Attracting companies Investing in talent, ideas
and infrastructure
Jobs Incomes
Top down development Bottom-up organic growth
Closed innovation Open innovation
Competing regions Collaborating regions
4WA Economic Development Commission
What do we need to do? Progress needed along four dimensions
Intellect
Investment
Infrastructure
International
Emphasize career transition, access to learning
resources and the skills that employers need.
Create innovation ecosystem to foster
new products, start-ups and manufacturing.
Design a 21st century infrastructure, an efficient
regulatory system and align to local objectives.
Grow the global presence of Washington’s business.
5WEDC 2.0
Aerospace
Interactive
Media
Biomedical
District
Clean Tech, Smart
Grid, Biofuels
Defense
Technology
Biotech, Energy, Semi-
conductors, Exports
Wine, Water
Global Health
World’s Largest Innovation Park
Food Processing,
Rail Innovation
Wind, Solar,
Data Centers,
Adv. Mfg.
Marine
Ocean Energy
Agriculture,
Composites
Sustainable
Industries
“Twilight”
Medical
Devices
Financial
Services
Electric Cars
Clean IT
Urban Clean
Water
7
Innovation Partnership Zones
WA Economic Development Commission
• 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.
IPZ
Universities
Community and Technical
Colleges
Private sector businesses
Ports
TribesChambers
Local government
Local development organizations
Other stakeholders
Communit
y colleges
Universities
Tribes
Ports
Local
governmentPrivate
sector Non-
profits
8
Case Study #1: Walla Walla
WA Economic Development Commission
• 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.
• City of Walla Walla
• Confederated Tribes of theUmatilla 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)
• Training: WWCC’s Enology
& Viticulture Program
includes a two-year, full-time
course of study, designed for
students pursuing careers in
the wine industry.
9
Case Study #2: Tri-Cities Research District
WA Economic Development Commission
• Zone Objective(s): Energy storage, smart grid, and
biofuels.
• 1,700-acre area located in North Richland.
• PNNL as anchor tenant.
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.
• 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
10
Case Study #3: Grays Harbor Sustainable
Industries IPZ
WA Economic Development Commission
• 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.
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.
• 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
Regional Innovation Clusters Evolve
Growth
Transformational
Nascent
Emerging
None or few firms
Growth potential
Few to many firms
Fast growth
Some linkages
Accelerated
collaboration
Many linkages
Attraction of firms
Many nodes
Dense linkages
Region to Region
Next generation
STARSIPZs
R&D
EIRsPatents
Incubators
Innovation
Assets
Tax
Incentives
Talent
Gap
Funding SBIR
11WA Economic Development Commission
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
WEDC 2.0 13
Metrics
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.
IPZ Performance Metrics
• Additional investment– Private sector investment
– Investment from outside the zone
• Job creation / retention– # of jobs created
– # of jobs retained within wage range
• Increased commercialization activity– $ increase in sales or sales orders associated
with IPZ research
– # of licenses, patents, applications for innovation research
• Increased collaboration and/or community partnerships
– Zone-hosted conferences, creation of incubator, visiting scholars
• Unique criteria– Formation of an advisory board
– Incorporation as a non-profit
– Launching and IPZ website
• Creation of tailored curriculum
WEDC 2.0 16