Milbergs Tuesday Group Presentation 1.2 May 7 2010
Innovation 2.0 Feb 15 2011
1. Innovation 2.0
A Winning Strategy for Driving Growth
A Policy Reset in Time of Fiscal Constraint
Prepared for:
Washington Economic Development Association
Winter Legislative Conference
February 15, 2011
Egils Milbergs
Executive Director
Washington Economic Development Commission
www.wedc.wa.gov
1
1.1
WA Economic Development Commission
2. Summary
This generation’s “Sputnik moment.” New global and national
economic realities challenge Washington State to start,
nurture and transform industries driven by innovation.
Innovation has been a focus of Washington’s high-tech
industries. The focus needs to be broadened to all people,
industries and geographies of the state to expand our overall
ability to provide high value jobs.
Washington possesses substantial assets and initiatives related
to innovation, but the state is far from reaching its potential.
A comprehensive economic growth strategy focused on
innovation and catalyzing “bottom-up” collaboration among
industries, universities, laboratories, regions, etc., can transform
Washington into a model 21st century innovation economy.
3. “one small ball in the air”
1957
1985
2011Sputnik Moments
“this is our generations’
Sputnik moment”
President’s Commission on
Industrial Competitiveness
4. The World is Changing
“not your father’s economy”
Washington Economic Development
Commission
4
Innovation
Our Goal: Make Washington the most attractive, creative
and fertile environment for innovation in the world by 2020
5. 2010 New Economy Index
Overall Scores
5
Source: ITIF
26 indicators in five categories:
1. Knowledge Jobs
2. Globalization
3. Economic Dynamism
4. Digital Economy
5. Innovation CapacityWA Economic Development Commission
8. The Great Reset
FROM
• Public Sector Jobs
• Shovel Ready
• Expand Safety Net
• Consumption
• Debt
• Competing Regions
• Top-down macro
strategies
TO
• Private Sector Jobs
• Innovation
• Upgrading Skills
• Investment
• Exports
• Collaborating Regions
• Bottom-up cluster
strategies
8WA Economic Development Commission
9. WEDC Innovation Strategy
World Greatest Innovation Ecosystem
Business
Performance
Public Impact
Talent &
Workforce
Investment &
Entrepreneurship Infrastructure
12. 12
Designated Innovation Partnership Zones
Bellingham Innovation Zone
Aerospace Convergence Zone
Sequim, North Olympic Innovation Partnership Zone
Tri-Cities Research District
South Lake Union Life Science Innovation Partnership Zone
Spokane University District Innovation Partnership Zone
Bothell Biomedical Manufacturing Corridor
Central Washington Resource Energy Collaborative
Grays Harbor Sustainable Industries
Pullman Innovation Partnership
Discovery Corridor Innovation Zone: Steinmueller Innovation Park
Walla Walla Innovation Partnership Zone
WA Economic Development Commission
13. Whidbey Island
Naval Air
Puget Sound
Naval Shipyard
Joint Base
Lewis McChord
Madigan Medical Center
Naval Submarine
Base Bangor Spokane
Fairchild AFB
US Coast Guard
WA Nat’l Guard
US Army, Yakima
US Marine Corps
Major WA Military Installations
191,000 jobs
$12.2 billion in output
$10.5 billion in labor income
$5.2 billion in defense contracts
13
Intelligence, Surveillance, and Recon
Special forces and special operations
Network-centric operations
Cyber security
Composite materials
Unmanned systems – both air and sea
Energy efficiency and alternatives
Health care for veterans
WA Economic Development Commission
Naval Station
Everett
17. TALENT: New Pathways for Learning
• Protect training capacity for
high demand occupations
• Increase production of
science & engineering and
innovation graduates
• Expand use of on-line
education
• Reduce K-12 drop-out rate
17
18. INVESTMENT: Accelerate Commercialization
• Compete aggressively for
Federal R&D funds
• Double recruitment of
STARS and EIRs
• Double start-ups by
access to expertise and
entrepreneurial capital
• Make permanent R&D tax
credit
• Clean Energy Public-
Private Partnership
18
19. Infrastructure & Regulations
• Expand local infrastructure financing
tools (e.g. TIF)
• Define infrastructure to include
“intangible” capital
• Build-out broadband(wired & wireless)
• Create mechanism for self-financing of
industry clusters
• Reduce regulatory barriers and
uncertainty
19
20. Seize Global Markets
20
Washington Economic Development
Commission
• Implement Governor’s
export assistance initiative
• Invest in freight mobility &
infrastructure
• Focus trade promotion on
competitive clusters, not
national markets
• Improve foreign market
intelligence and on-line
tools
21. World’s Greatest Innovation Park
Collaboration across regional boundaries
• Provide operational funding
for IPZs
• Strengthen links with
defense and mfg. sectors
• Pursue Federal funding of
regional innovation clusters
• Create mechanism for self-
financing of industry clusters
21
22. Brand “Decade of Innovation”
• Utilize media to promote
how WA innovates
• Leverage the 2012 World’s
Fair Anniversary
• Define metrics to track
trends, inputs & outcomes
• Launch innovation “X”
Prize
22
23. PNWER Region (GDP/Pop.)
State/Prov. GDP* Population
Wash. 311,270 6,468,424
Alberta 259,900 3,585,000
Oregon 158,233 3,790,060
B.C. 150,412 4,310,305
Idaho 51,149 1,523,816
Sask. 40,340 1,008,697
Alaska 44,517 686,293
Montana 34,253 967,440
Yukon 1,767 32,714
Total 1,051,841 22,372,731
*2007 population & GDP in $US Million
Innovation ecosystem is even bigger….
If Pacific Northwest Economic Region
were a separate country, it would rank
13th in total GDP
26. The risks inherent to starting a thriving enterprise
in today’s troubled waters are immense, but the
rewards have never been greater.
26
Washington Economic Development
Commission
