AICUP Economic Development InstituteCluster, Ecosystems and Collaborators (OH MY!)

Prepared by: Fourth Economy Consulting

Rich OvermoyerPresident & CEO

November 4th, 2010

Topics

2009 – The year of collaboration

Clusters

Innovation Ecosystems

Collaboration for success

What’s ahead

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The Year of Collaboration

Suddenly the Federal Agencies are working together+ Department of Energy

+ Department of Labor

+ Department of Agriculture

+ National Science Foundation

+ National Institutes of Health

The Recovery Act has supported some new program development

Additional programs are planned as part of FFY 2011 budget

More to be done between Federal and State coordination

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Economic Clusters

Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field that are present in a region.

Higher education can be an important anchor and/or supporting instruction of a cluster

Federal funding is increasingly being directed to supporting clusters as opposed to individual entities

Some resources for learning more at:

+ Harvard Institute for Strategy and Competiveness

+ Economic Development Administration4

Example: SBA Cluster

SBA awarded $6M for “innovative Economies” initiative on 09.20.2010

Awards support activities in

+ Energy, Agriculture, Green Innovation, Defense

Includes small and large entities working together in regional partnerships

Focus is on providing opportunities for small businesses

Region III – Bridget Bean (Acting Director)Parkview Tower

1150 First Avenue - Suite 1001King of Prussia, PA  19406

(610) 382-3092

5

Innovation Ecosystems

Similar to Clusters but not as geographically dependent.

Ecosystems recognize diverse contributions of academic institutions, private companies, services providers, capital sources and community assets

Federal context is around creation enhanced ecosystems to bring ideas and technology to market

Evolve, like an environmental ecosystem

Resources

+ Where Good Ideas Come from: The Natural History of Innovation

+ Department of Energy: Innovation Ecosystems

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Example: DOE Innovation Ecosystem

Awarded 5 Proposals on 09.15.2010+ Clean Energy Trust – Chicago: Several University

partners+ Fraunhofer Center for Sustainable Energy Systems

– Cambridge, Mass+ University of California – Regional Energy

Innovation Challenge+ University of Central Florida – university teams

compete in MegaWatt Ventures+ University of Utah – commercialize regional energy

technologies

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Collaboration

Individual proposals increasingly difficult to get fundedIdentification of partners within community, region, ecosystem is criticalProactive approach is critical – competition is intenseEDA Investment Priorities:+ Collaborative Regional Innovation+ Public/ Private Partnerships+ National Strategic Priorities+ Global Competiveness+ Environmentally Sustainable Development+ Economicall Distressed and Underserved

Communities

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An Example: Collaboration

I6 Challenge+ Department of Commerce with NIH and NSF+ $12,000,000 effort to support technology

commercialization and entrepreneurship+ One per Economic Development Administration Region:

– Atlanta: Global Center for Medical Innovation– Austin: New Mexico – SBIR initiative– Chicago: University of Akron – Biomedical Innovation– Denver: St. Louis Universities aligned for medical

innovation– Philadelphia: Carnegie Mellon University and

Innovation Works– Seattle: University of Oregon – three technology

clustersThe Curtis Center, Suite 140 South601 Walnut StreetPhiladelphia,PA 19106-3821215-597-4603Willie C. Taylor, Regional Director, Wtaylor@eda.doc.gov

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Government Funding Roadmap

Interdisciplinary and Multi-pronged ApproachFinancially Matched+ Applications often have to match at least 20%

Impactful+ Job creation+ Environmental benefits+ Social benefits

Community Supported+ Multiple partners+ Political buy-in

Sustainable+ Program will eventually pay for itself beyond the

grant+ Regional wealth and expertise creation

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Discussion…

Fourth Economy Consulting

Email: rovermoyer@fourtheconomy.comWeb: www.fourtheconomy.comPhone: 412-251-1607