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Egils Milbergs Executive Director
Washington Economic Development CommissionOlympia, Washington
360-586-5661
Innovation Partnership ZonesInnovation Partnership ZonesBuilding a World Class Innovation EcosystemBuilding a World Class Innovation Ecosystem
Presentation for :Presentation for :Innovation AwardsInnovation Awards
The Council of State GovernmentsThe Council of State GovernmentsEdmonton, AlbertaEdmonton, Alberta
July 19, 2012
1
The Problem We Need to Solve
2WEDC 2.0
A Ten Year VisionMake Washington the most attractive, creative and fertile
environment for innovation in the world by 2020 3
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
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
AerospaceInteractive
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 EnergyAgriculture,Composites
Sustainable Industries
“Twilight”
Medical Devices
Financial Services
Electric Cars
Clean IT
Urban Clean Water
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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.
Community colleges
Universities
Tribes
Ports
Local governmentPrivate
sectorNon-profits
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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 the
Umatilla 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)
• City of Walla Walla• Confederated Tribes of the
Umatilla 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
• 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
• 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
EmergingTrajectory
None or few firmsGrowth potential
Few to many firmsFast growth
Some linkages
Accelerated collaborationMany linkages
Attraction of firms
Many nodesDense linkagesRegion to RegionNext generation
STARSIPZs
R&D
EIRsPatents
Incubators
JOBS Potential
InnovationAssets
Tax Incentives
Talent
Gap Funding SBIR
11WA Economic Development Commission
Going Forward1. Relationship capital is the secret sauce2. More focus on local vision, plans and metrics3. Operational funding is critical4. New financing resources and tools e.g. TIF5. Aligning agency programs to local priorities6. “Porous” boundary definitions7. Leveraging assets between IPZs8. Web based collaboration platforms9. Best practices clearinghouse10.Rigorous evaluation of outcomes
WEDC 2.0 13
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September 2012 celebrates Commerce & Innovation Economywww.thenextfifty.org
WEDC 2.0
Thank You!
WEDC 1.1 15
MetricsIPZ 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
