Innovation Waits

8/14/2019 Innovation Waits

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PromotingInnovationThe Role of R&D Investment

NGAs Innovation America Initiative Kick-Off

Phoenix, December 5, 2006

Mary Jo Waits, Center Director Pew Center on the States


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The Idea-Driven Economy

The first 100 years of our countryshistory were about who could build the

biggest, most efficient farm.

The second 100 years were about the raceto build efficient factories.

The third 100 years are about ideas .-- Seth Godin

Fast Company, August 2000


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New Growth Theory:Stanford Economist Paul Romers Perspective

Ingredients

Intellectual capital

Human capital

Financial capital

Recipes

New ideas

Entrepreneurs

Networks

Results

Productivity

Prosperity

Cluster vitality

Source: Collaborative Economics


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In 1971, a small coffee shopstarts in Seattles funky PikePlace Market with a newrecipe

Recipes combine resources innew and different ways


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Recipes combine resources innew and different ways

Nanotech : You start with building blocks likenanowires, nanotubes, and nanoparticles. Puttogether one way, these building blocks make acomputer. Put together in a different way, they makea biological sensor.

Biology is another example. You have a limitednumber of building blocks, like proteins and DNA.

Depending on how you put them together, you endup with a tissue, a worm, or a human being.

Charles Lieber, Harvard Chemistry Professor & co-founder, Nanosys


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Implications for Companies

New Business ModelCompanies and entrepreneurs moving fromclosed innovation (in-house researchcapability) to open innovation model.

Many companies are starting to innovatewith research discoveries of others.

Harvard Professor Henry Chesborough, Open Innovation, 2003


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Small-sized research facilities adjacentto top university research centers

Intel expects to benefit from proximity:gain early access to promising new

technologies

Intels lablets


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Applies to all companies,not just high-tech

Procter & Gamble names director of externalinnovationGoal: 50% of its innovation fromoutside the company in 5 years

Why? Inside more than 8,600 scientistsadvancing the industrial knowledge thatenables new offerings; outside are 1.5 million.

So why try to invent everything internally?


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Implications for WorkRe-Valuing the Right Brain.

LogicalMathematical

Linear SequentialVerbalRationalSerious

Intuitive

Artistic

NonlinearSimultaneous

Visual

Emotional

Playful

See Daniel Pink, The Whole Mind: Moving from the Information Age to the ConceptualAge

Can StayWill Go


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Implications for StatesShifting Sources of Wealth

Created Assets

Top universitiesResearch centersTalented peopleEntrepreneurial cultureNetworksVibrant downtowns

Inherited Assets

GeographyClimateNatural ResourcesPopulation

From: To:


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Three Things to Remember

1. The 21 st century will be driven by innovation.

2. Many of the factors that give regions and states an innovativeedge are creatednot inherited.

3. The new century will be a highly competitive oneespecially asplaces realize that key features are buildable and thus can behad by nearly any place that puts its mind to it.


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Big Money is being Investedin R&D Assets

California: $3 B for Stem Cell research

Florida: $ 800 M for East Coast facility for Scripps ResearchInstitute and Burnham Institute for Medical Research ; statecovers operating costs for 7 years ($310 M)

Georgia: $400 M for Georgia Research Alliance allocated toendowed chairs

Kansas: American Century Funds founder is spending $1 B to build mega-biomedical research complex

Indiana: Lilly Endowment offers $100 M to recruitintellectual capital to state colleges and universities


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Question is, will research turninto enterprises ?


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Important to have StrategicContinuum of Programs

Arizona BioscienceResearchEnhancementFund

Gaps: Tactics:Drivers: Drivers:ResearchTechnology

DevelopmentBioFirm

Formation

FirmExpansion/Attraction

Consortia/Centersaround TechPlatforms

Federal Funds

MatchingChallengeProgram

TechnologyCommercializationProof of ConceptFund

Bioscience SBIRSupport

BioscienceEntrepreneurAssistance Cntr.

Technology Zones

Incubators

University Equity

BioSeed Fund

Accelerators

Research Parks

Incentives/ TaxStudy Reviews

Marketing & Brand

K-12 & WorkforceDevelopment

P r o p o s e

d A c t

i o n s

Source: Battalle, 2002


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Expertise Diversity

Interaction

Creativity

EXPERTISE means talentedpeopleINTERACTION when peoplecome together, theres abetter chance for thepassionate exchange of ideas & synergies that createnew business models,marketing plans or productsDIVERSITY is important in

generating the Next BigThing; people learn most byinteracting with people lesslike themselves.

Just as important tounderstand Must-Haves for Innovation


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Building Expertise

State-sponsored Research Funds : CA, GA,TX, NJ,NY, MI, AZ, OH, OKStrategic, Focused Excellence : Georgia ResearchAlliance, CA Institutes for Science and InnovationTalent: Lilly Endowments $100 M for intellectualcapital, Georgia's 100 eminent scholars, ScienceFoundation Ireland recruiting 50 world-class scholarsby 2008New Fields and Young Talent: ASUs new mastersin genomics and biotech law; new era medicalschools; research funds marked for younginvestigators


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Orchestrating Interaction

Networks: UCSD CONNECT Meet the Researcher,BIOCOM ASUs supercomputer and Engineering schoolmoves to main street TempeInnovation Districts: Atlantas Technology Square,San Diego Torrey Pines, Research Triangle Park, PAsKeystone Innovation ZonePartnerships: Georgia Cancer Coalition, JointMedical School University of AZ and ASU, CITRIScombines 4 CA universitiesBerkley, Davis, Merced,Santa Cruz-- St. Louis Coalition for Plant and LifeSciences, more and more international partnerships


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The Proximity Edge


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Today: 3rd Biotech hub behind San Francisco & Boston

North Torrey Pines Road: Densely packed 2-mile stretch w/ ScrippsResearch Institute, Salk Institute for Biomedical Studies, UCSD

We can throw a rock and hit UCSD. I can hit a golf ball and hit Scripps.Everything is within walking distance. That means more heads gettogether and we do a lot of collaboration. VP at Salk Institute

San Diego: Rise of a BioTechCluster


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Putting people from Diverseknowledge fields and cultures

together Silo, Solo is PassAZ Biodesign Instituteco-locates researchers from 3fields; designed for interaction

UC Discovery Grants stress industry-universitycollaborationIncentives to encourage interdisciplinary researchRight brain and left brainMFA is the new MBAWanted: Charismatic, Collaborative scientists andresearchers


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Arizonas Strategic Moves

Five Big Bets on an

innovation future

Top Down andBottom Up


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Five Big Bets

Big Bet No. 1Target export-oriented, knowledge intensiveclusters to build strengths in:

Electronics/Information TechnologyAerospaceSoftwareAdvanced Business ServicesOpticsBiosciences


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Five Big Bets

Big Bet No. 2Prop 301, a sales tax increase which citizensapproved in 2000, earmarks $1 billion over 20years, distributed among the states 3universities

Arizonans recognized that K-12, community colleges, top-tier universities are a critical infrastructure for the 21 st century

In 2003, AZ legislature approved $440 million in researchfacilities at 3 universities12 new research facilities


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Five Big Bets

Big Bet No. 3Genomics $90M raised in 2002 to jumpstartthe bioscience industry with attraction of TGenand IGC

Battelle Biosciences Roadmap to develop 3areas:

Cancer therapeuticsNeurological sciencesBioengineering


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Five Big Bets

Big Bet No. 4Personalized MedicineThe Virginia G. Piper Foundation creates a $50 million fund for purposes of attracting to AZs publicuniversities, research institutes, and medicalcenters 10 world class scientists, engineers,

researchers and physicians to make AZ apioneer in personalized medicine


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Five Big Bets

Big Bet No. 5

Science Foundation Arizonastateallocates $35 million to make investments innew medical, scientific and engineeringresearch and to attract top-notch research

talent. Business leadership agree to raise$15 million over 5 years to support SFAzsoperation.


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Lots of Alignment

Biodesign Institute at ASUBIO5 at University of ArizonaTechnopolis entrepreneurial supportArizona Board of Regents - metrics for 301 funds

Arizona Biomedical Collaborative3 universitiesLegislature passes Angel Investor tax creditMaricopa Community College district-- $100 M of bondissue slated for bioscience workforce prepFoundations continue to support TGen and top talentGreater Phoenix LeadershipBioscience Task ForceScience Foundation ArizonaASU first to introduce a masters program in genomicsand biotech law


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Cities connecting to AZs BigBets

Phoenix commits land and $50 M to secure TGen in downtownPhoenix uses $250 M of voter-approved bond money to bring ASUdowntownScottsdale invests $125 M in Los Arcos for new ASU-ScottsdaleCenter for New Technology and Innovation and provides support for Mayo Clinic R&DTucsons UA Research Park and new Critical Path InstituteFlagstaffs NAU partners with TGenSurprise opens biotechnology incubator

More Big BetsUA/ASU Medical SchoolTribes plan biomedical campus

Maricopa Partnership for Arts and CultureDiscovery Triangle- Phoenix, Scottsdale & Tempe


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Key Success Factors

Requiring funding mechanisms that createcollaborative research with tangible incentivesImproving the interface between academia andindustryFacilitating contact between researchers andentrepreneursFocusing on areas of strength and relevanceNecessitating excellence as a driver of research

Using metrics that drive innovation andcompetitiveness


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Strategic, Sustained Effort

There was no single defining action,no grand program no solitary lucky

break, no wrenching revolution.Good to great comes about by acumulative process--step by step,action by action, decision by decision,turn by turn of the flywheelthat addsup to sustained and spectacular

results.


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Documents

Innovation Waits