University of Southern Indiana Measuring Innovation to Induce Innovation Universities are centers of data collection and scholarly output that serve the greater good by supplying communities with purposeful information to advance their innovation ecosystem. Sometimes tools are developed to provide structure, and it is up to the community to provide the function. The Indiana Business Research Center (IBRC) at Indiana University has developed a useful tool for economic development known as the Innovation Index. The Innovation Index was deployed to assist in a regional ecosystem initiative called the I-69 Innovation Corridor. Led by the University of Southern Indiana (USI), this application of the Innovation Index centered on 11 counties in Southwest Indiana with a focus on facilitating regional transformation. This presentation will cover the rationale for and use of the Innovation Index, the business case for applying the Innovation Index to the Southwest Indiana ecosystem, and its impact. Now in its fourth year the project has documented useful insights about the role of innovation measurement and has begun to see sustainable growth when the innovation index is applied to the ecosystem. The presentation will visually show four years of data about components of innovation in the context of an economic region and how this framework can be applied in other regions of the world. Michael Thissen, Innovation Corridor Manager, Interstate 69 Daniela Vidal, Director, Opportunity Development, University of Southern Indiana

1. Innovation Index

2. Opportunity
o USI & NSWC Crane
relationship since
2007
o Two certified
technology parks at
each end
(Westgate &
Innovation Pointe)
o New terrain
interstate – I69
o Increasing need for
STEM workers
o Strong
manufacturing
foundation and
R&D presence

3. Benchmarking
Innovation
Global Innovation
Index (GII)
• Concerned with
improving the
‘journey’ to better
measuring and
understanding
innovation
• Identify targeted
policies and good
practices
• Recognize important
qualitative aspects of
innovation policies
and processes that
are not captured
adequately within the
GII model.
Second Tier Regions
• Four premises:
– Silicon Valley is the
exception, not the
norm. Not a
replicable model
– Role of firms as
surrogate research
university
– Firms doing
economic
development &
entrepreneurship
– Policies linking
higher ed and
other institutions
The Innovation-
Entrepreneurship Nexus
• Investment in
innovation capacity
alone is not enough
• Need entrepreneurial
activity to convert
innovation assets into
long-term economic
gain
• Higher R&D,
educational
attainment,
manufacturing
concentration
needed for higher
entrepreneurial
activity

4. PHASE I
Convene
Leadership
Team

5. PHASE II
Build a Business Case
Widening Gap Pace of Change
NUTSHELL: We are growing, but at a slower
pace than the national indicators. We need
to address this before the gaps widen at an
exponential rate to a point of no return.

6. Innovation Index
Measures how well a regional economy translates
knowledge and innovative capacity into prosperity

7. Analyzing the Region
Regional Innovation Index
(2012):
81.6
Technical Workforce
Youth Migration
Clusters
Educational Attainment
Business Churn
Venture Capital and I.P.
Broadband
Job Growth
Diversification of Industry
Population decline

8. PHASE III
TASKFORCES
Brainpower
Civic Collaboration
Branding
Experiences
Quality, Connected
Places
Entrepreneurship &
Innovation Networks
INITIATIVES
2014 Technology Commercialization Academy
CHAMPIONS
Shared Strategic
Framework

9. I-69Innovation
Corridor
Vision:
Igniting prosperity in SW Indiana
and NW Kentucky.
Mission:
Regional initiative focused on
driving transformational change by
creating a culture and environment
supportive of innovative capacity
Goal:
Increase Innovation Index by
20% by 2025
Target Audience:
Local and Regional Community
Economic Development
Education
Business and Industry
Civic Community
Government

10. IMCP Proposal:
Network for
Distributed &
Sustainable
Manufacturing
Celebration of
Innovation

11. USI is connector
Gears working together to create traction
across the region
5 Regional Entities covering
23 Counties:
• Radius Indiana
• Southern Indiana
Development Commission
• Indiana 15 Regional Planning
Commission
• Southwest Indiana
• Econ Dev. Coalition
• Kyndle Kentucky Network
Higher Ed Institutions:
• University of Southern
Indiana
• Indiana University
• Ivy Tech
• University of Evansville
• Vincennes University
• Oakland City University
• Henderson Community
College
• Advantage Kentucky Alliance
– WKU
• Purdue

12. Moving the Needle
Regional Innovation Index (2012):
81.6
Regional Innovation Index
(2015):
86.3
• Overall increase
in educational
attainment
• 47% increase in
technology-
based
occupations
share of total
employment –
this determines
the innovative
Human Capital
• 45% increase in
broadband
penetration
• Still significant
gap in venture
capital
investment but
increase in
angel
investment
Economic Dynamics
• 5 counties
experienced
significant
growth in high
tech
employment
share
• 600% increase
in patents filed
Productivity &
Employment
• Reversed
average net
migration from -
10.5 to +1.5
• Proprietors
income
increased by
48.2%
Economic Well-being

13. Gaps
Next Steps
• Communication Platform
• Data Granularity
• Initiative Infrastructure
• Innovation Index 2.0

14. Changing the Culture

15. “Connectivity lays the
groundwork for empowerment
and the framework for
innovation.”