TCI 2014 Evolving the Regional Innovation Cluster Paradigm for an Innovation Driven Economy
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Evolving the Regional Innovation Cluster Paradigm for an Innovation Driven Economy Scott Dempwolf Academic 3: The Evolution of Cluster: from the Competitive Advantage of Nations to the Cluster Initiatives Greenbook 2.0 12 November 2014
TCI 2014 Evolving the Regional Innovation Cluster Paradigm for an Innovation Driven Economy
1. Evolving the Regional Innovation Cluster Paradigmfor an
Innovation Driven EconomyScott DempwolfAcademic 3: The Evolution of
Cluster: from the Competitive Advantageof Nations to the Cluster
Initiatives Greenbook 2.012 November 2014
2. Network Models of RegionalInnovation Clusters and
theirInfluence on Economic GrowthEvolving the Regional Innovation
Cluster Paradigmfor an Innovation Driven Economy17th TCI Global
ConferenceMonterrey MexicoNovember 12, 2014C. Scott Dempwolf,
PhDAssistant Research Professor& DirectorUMD Morgan State
JointCenter for Economic Development
3. Regional Innovation Clusters (RIC)A geographically-bounded,
active network of similar, synergistic or
complementaryorganizations in a sector or industry that leverages
the regions unique competitivestrengths to create jobs and broaden
prosperity. (EDA, 2011)This research Validates current
clustertheory and policies Exposes their limitation Offers useful
extensionsWe have an opportunity to takeRegional Innovation
Clusters tothe next level to respond toinnovation-driven
growthLimits of Cluster Analysis1. Active networks are not
geographicallybounded2. presence of networks is assumed butnot
measured3. NAICS-based clusters not sensitive toemergence4. based
on employment data; does notconnect economic growth to innovation5.
Backward-looking
5. Innovation Driven Growthhow do we measure it
now?InventionBasic ResearchProductionDevelopmentProduct
ImprovementResearch ParksIncubatorsProduction EmploymentFirst
Employment Data AvailableClusters defined by establishedIndustries,
not emerging technologiesBusiness AttractionBusiness
ExpansionBusiness Retention~ 5 years
+/-InnovationbasedProductionRegionalClusterAnalysisyearsBottom
LineIndustry clusters -by whatever name- reflectthe state of
innovation about five years ago
6. Innovation Driven Growthgaining early actionable
intelligenceInventionBasic ResearchProductionDevelopmentProduct
ImprovementProduction EmploymentFirst Employment Data AvailableThis
approach can shortenthe lag between real-timeinnovation and
actionableeconomic developmentintelligence by several yearswhile
also revealing richtalent pools, emergingtechnology trends,
andspecific E.D. targetsClusters defined by establishedIndustries,
not emerging technologiesResearch ParksPatentsSBIR AwardsNIH
AwardsNSF AwardsNASA Awards~ 5 years +/-InnovationbasedProductionA
NewApproachAvailable Data SetsInnovationNetwork Analysisyears~ 4
years +/-State Investment DataIncubatorsBusiness AttractionBusiness
ExpansionBusiness Retention
7. Networks & Network ModelsGeorgia Innovation Network 2008
2010Locations of selected actorsNetworks made up of nodes
(vertices)and links (ties, edges)Nodes are actors, agents or
objectsPeople, Organizations, Agencies,Documents, Places *Links are
the relationships thatconnect the nodesRegional innovation clusters
aregeographically concentrated but alsohave important ties to
distant actors
8. Analyzing Regional Innovation NetworksExtract relationships
from patent andresearch grant data - about 7M recordsUse social
network analysis (SNA) toanalyze and visualize network
structureTheoretical grounding in sociologyand science of
complexityBehavior of the core network guidesbehavior of whole
networkClustering based on intensity ofrelationshipsThis reveals
emerging technologies - whatpeople and firms are working on
andspecialized talent poolsBattelle Innovation Network 2005
2010Created with NodeXL
9. 1. Innovation is more global and moreinterconnected than
previouslythought2. Network structure influencesmanufacturing
employment growthwithin about 3 years of patentapplication (more
for med &pharma)3. Economic development strategiesthat enhance
innovation networksmay be a cost-effective alternativeto current
capital intensivestrategies.4. Innovation networks are (or could
be)drivers of economic development intier 2 manufacturing
regions.PA Innovation ClustersWestinghouseWestinghouse cluster,
Pittsburgh PA Dissertation ConclusionsNetwork graphics created with
NodeXLAllegheny CountyWestmoreland CountyCore2nd tier3rd tier
10. Regional Innovation Clustersare Complex, Emergent
SystemsNetworks are Ideal for Modeling Complex Systems: involve
many interconnected or interacting parts exhibit emergence -
behaviors that cannot be understood orpredicted by looking at the
components of the system alone Emergence is characteristicof
self-organizing networks The behavior of the wholenetwork is driven
by thebehavior of the core Thus we can focus on thecore and filter
out the noisePennsylvania Innovation Networks 1990 - 2007 in the
periphery
11. Applications1. Illinois Battery Cluster (2014) Identifying
emerging opportunities Combining cluster and network analysis to
develop targeted strategies2. Great Lakes Patent network (2011)
Finding current opportunity for growth in large active clusters
Identifying talent pools3. Georgia Tech Research Network (2013)
Visualizing & managing the research portfolio Identifying
University collaborations4. Maryland Innovation Network (2011)
Biotech & Pharma differentiating comingled clusters Zooming in
to look at Baltimores Clusters5. Startups, Venture Capital &
Accelerators (2014) The CrunchBase network for Maryland The
CrunchBase network for Illinois6. New Jersey Solar PV Research
& Manufacturing network (2012) Visualizing the university
industry gap Developing a targeted strategy
12. Illinois Battery ClusterThe Illinois Battery
Clusterillustrates how network analysiscan augment industry
clusteranalysis by identifying emergingtechnologies and
opportunitiesfor innovation led growth.Using network and
clusteranalysis together economicdevelopers can rapidly
developdetailed strategies, identifyingthe specific firms,
institutionsand agencies involved and howthey need to connect to
achieveeconomic growth.
16. Illinois Battery ClusterNetwork Analysis 2012 - $120M JCESR
created at Argonne 5-5-5 goal significant industry growth ~2017
Network identifies specific firms + real &potential research
ties in specifictechnologiesConclusion: The combination of
limitedproduction capacity (from cluster analysis),strong research
capacity & research investmentsuggest specific economic
developmentstrategies to capture future job growth. Build industry
partnerships around existingfirms & supply chains to facilitate
growth Target specific firms for attraction to growcluster
rapidly
17. Great Lakes Regional Innovation &Manufacturing Clusters
(core)
18. Great Lakes Innovation Clusters Impacton Planning
Practice
19. Potential University ApplicationsWell suited for
integrating andmanaging research acrossmultiple institutions via
opennetworks rather than institutionalstructureVisualizing a
Research PortfolioOffers both a big picture anddetails of
technologycommercialization areas andopportunities Georgia Tech
Innovation Network 2008 - 2010 (2 steps)Created with NodeXL
20. Maryland Innovation Clusters 2008 - 2010This analysis
showed that theclustering algorithm is sensitiveenough to
distinguish betweenpharma and biotech.Maryland Innovation Network
2008 2010Created with NodeXLBaltimore Innovation Network 2008
2010Created with NodeXL
21. CrunchBase startup networks 2005-2014Illinois Startup
NetworkAlthough similar in size the Illinoisnetwork exhibits more
robuststructureLittle discernable structure; clusteringappears
weakMaryland Startup NetworkSome structure and beginnings
ofclusters apparent
22. MarylandStartup Network (CrunchBase 2005 - 2014)When
clustered, spatial agglomeration is the main organizing factor
bothlocally and for distant capital sources; DBED & TEDCO
featureprominently, followed by a few investment firms.
23. MarylandStartup Network (CrunchBase 2005 - 2014)Removing
New York, Boston and San Francisco nodes diminishesspatial
influence as an organizing influence, allowing technology
clustersto emerge. (between-cluster ties hidden in this graph)
24. IllinoisStartup Network (CrunchBase 2005 - 2014)Spatial
agglomeration is an important factor in Chicago and North
Shoreclusters; Excelerate Labs & HealthBox are prominent
acceleratorslocally; Strong portfolio organization in remaining
clusters
25. New Jersey Solar PV Cluster 2008 - 2010Fruchterman-Reingold
layoutIn NodeXLThis analysis revealed significantgaps between solar
PV research& development and solar PVcomponent
manufacturing.Grid layout in NodeXLProduction CoreResearchCore
26. Next StepsAcademic Research Publications Presentations at
SSTI, TCI Global Complete County-level application St. MarysCounty,
MD CEDS Seek NSF SciSIP funding for additional networkresearch;
validation & calibration of theeconomic model Pending proposal
with NIST to evaluate theirimpact on innovation and
commercialization(alternative metrics to patent counts)
Collaboration with UMD HCIL on improvementsto visualizations and
NodeXL softwareCommercialization Launch startup company (fall 2014)
Engage ten pilot communities / regions over thenext two years Mix
of different sizes, scales, level of organization,density Focus
primarily on manufacturing regions Some with cluster strategies,
some without Pilot studies may include A network report (limited
version of IllinoisRoadmap) Traditional cluster analysis using the
Harvard toolfor regions that dont have it An interactive network
model On-site training & Technical Assistance Evaluation of
performance across all pilotregions