Navigating the Changes in Economic Development – Sighting for the

Collaborative Lighthouse

Federal Laboratory ConsortiumMid-Atlantic Regional Meeting

October 23, 2007

Jerry W. Giles

Director of Finance - Team Leader, Science and Research

Virginia Economic Development Partnership

Virginia’s Business ClimateVirginia’s Business Climate

# 1 Ranking

2007

# 1 Ranking

2007

# 1 Ranking

2007

Virginia ProfileVirginia Profile• 3rd in Federal R&D spending & SBIR awards

• Total R&D - $7.6 billion (12th rank)

• Industry R&D - $4 billion (16th rank)

• University R&D - $914 million (14th rank)

• Venture Capital Investments (11th rank)

• Highest concentration of tech workers in U.S.

• 11,300+ high-tech companies operate in Virginia

• 29 federal R&D centers in Virginia

• Market forces have shifted the paradigm. Some in policy making positions "get it" and some don't.

• Competitive arsenals for new attractions and existing expansions still reflect the older economic paradigm in many cases. Invest to retain and attract.

• States tax incomes; localities tax assets (real estate, machinery) - conflicting revenue streams and motivations will arise.

• Workforce, Workforce, Workforce and Operating Costs - The consistent drivers of location decisions.

Navigating the Changes in Economic DevelopmentNavigating the Changes in Economic Development

Advanced ManufacturingPlastics/Polymers Initiative

Fabricated Wood Initiative

Food Processing

Natural Resources

Chemicals

Security & ServicesDistributed Services Initiative

Modeling & Simulation Initiative

Federal Security Agencies & Providers

Information Technology

Finance, Insurance, HQ

Professional & Business Services

Science & ResearchEnergy Initiative

Life Sciences/Medical Devices

Nanotechnology

Emerging/Convergent Technologies

Corporate R&D/Federal Labs

TransportationGlobal Logistics Initiative

Automotive

Aerospace

Global Logistics

Distribution

Initiatives and Verticals

Virginia Private Sector R&D Facilities

R&D Focus:        

Region Number %   Life Sci IT Aerospace Energy Materials Other

Northern Virginia 87 40% 40% 37% 8% 5% -- 10%

Richmond 58 27% 69% 5% -- 2% 12% 12%

Charlottesville 23 11% 87% -- -- -- -- 13%

Hampton Roads 23 11% 35% 30% 22% -- 4% 9%

Blacksburg (SWVA) 12 6% 50% 33% 8% -- -- 8%

Valley 9 4% 33% 11% -- -- 11% 45%

Southside 3 1%   33% 67% -- -- -- --

Total 215 113 (53%) 46 (21%) 13 (6%) 6 (3%) 13 (6%) 24 (11%)

Data covers operations that conduct basic and/or applied research, and are both for-profit and non-profit. Data does not include

university or federal laboratories or research centers.

• Support technology, R&D emerging technology sectors that play to Virginia’s strengths and diversify state economy. Invest to retain and attract.

• Focus on Virginia’s R&D assets and possible collaborative outcomes.

• Find opportunities to connect complementary research among state universities, federal labs and industry and promote private sector investment.

• Leverage Virginia’s Center for Innovative Technology (CIT) and their expertise in SBIR/STTR and seed stage technology investment.

Collaborative Lighthouse Strategies Collaborative Lighthouse Strategies

Federal Labs and VEDPFederal Labs and VEDP

• Proactive collaboration opportunities.

• Facilitation and introduction of corporate/ academic entities with needs/solutions.

• Enhance marketing strategies for technology companies.

• Attract quality R&D players.

• Intellectual capital #1 resource.

• Interconnected global economy requires new solutions.

• Innovation enhances competitiveness and is critical to our shared success.

• Virginia’s growth and retention of high tech jobs and gazelle-like companies is the prize.

Embracing the Innovation EconomyEmbracing the Innovation Economy

For More Information

Jerry W. Giles

Director of Finance - Team Leader, Science & Research

Virginia Economic Development Partnership

P.O. Box 798

901 East Byrd Street

Richmond, VA 23218

Phone: 804-545-5703

Fax: 804-545-5701