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Transcript of Office of Economic Development [email protected] 510-981-2490 Overview of West Berkeley...
Office of Economic [email protected]
510-981-2490
Overview of West Berkeley Economy:Opportunities and Challenges
West Berkeley Area PlanGoals for Employment Growth
(from Preferred Land Use Concept and West Berkeley Area Plan, p. 33)
Office and laboratory jobs 1,200 Retail Jobs 1,200 Manufacturing Jobs: 700 TOTAL 3,100
The Plan’s land use policies were intended to allow at least this amount of employment growth.
1991 1991 2008 2008 % Change
Businesses Employees Businesses Employees EmploymentSector Agriculture 9 34 1 ***Construction 67 1,251 61 1,089 -15%Manufacturing 153 5,025 89 3,636 -38%Transportation & Public Utilities 24 463 5 100 -363%Wholesale Trade 100 1,488 61 1,078 -38%Retail Trade (inc. restaurants) 108 2,598 151 2,973 13%Finance, Insurance, Real Estate 25 160 45 308 48%Services 258 4,723 348 5,498 14%Unclassified 14 67 27 ***TOTAL 758 15,809 788 15,548 -2%
Sources: Figures for 1991 from West Berkeley Area Plan, Table 2-1, p. 65; Figures for 2008 from California EDD, Quarterly Census of Employment & Wages, 2nd quarter 2008
*** Sectoral employment suppressed for reasons of confidentiality but included in the total
Private Employment in the 94710 Zip CodeJune 1991 & June 2008
Manufacturing Employment in Berkeley,1958-2008
0
50
100
150
200
250
300
1958 1963 1967 1972 1977 1982 1987 1991 1992 1996 2000 2001 2002 2007 2008
Manufacturing Establishments
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1958 1963 1967 1972 1977 1982 1987 1991 1992 1996 2000 2001 2002 2007 2008
Sources: Economic Census (US Census Bureau): 1958, 1963, 1967, 1972, 1977, 1988, 1987, 1992; Other years- California EDD, Quarterly Census of Employment & Wages
0
50
100
150
200
250
300
1958 1963 1967 1972 1977 1982 1987 1991 1992 1996 2000 2001 2002 2007 2008
Sources: Economic Census (US Census Bureau): 1958, 1963, 1967, 1972, 1977, 1982, 1987, 1992; other years, California EDD, Quarterly Census of Employment and Wages
Number of Manufacturing Establishments in Berkeley,1958-2008
1990 2007Use Category Employees Firms Employees Firms % Change
Heavy Manufacturing 1,684 31 3,008 61 79%Light Manufacturing 3,097 266 1,753 130 -43%Office-Based 1,304 232 4,466 604 242%Other Industrial 2,385 310 1,042 171 -56%Retail Trade 1,923 272 2,165 323 13%Grand Total 10,393 1,111 12,434 1,289 20%
Sources: West Berkeley Area Plan, Table 1-1, p. 25 that used 1990 Berkeley business license data;Data for 2007 compiled by OED from 2007 business license data.
West Berkeley Employment by Use Category
Berkeley’s Economic Strengths
• Highly educated workforce
• Proximity to research institutions
• Close to sources of capital and entrepreneurship
• Geographic center of the Bay Area
• Green policy leadership
Educational Attainment Compared to Surrounding Jurisdictions
35.74%
14.80%8.77%
30.93%
17.98%
16.61%
18.10%
23.15%
8.44%
20.45%22.89%
6.78%
23.61%20.16%
31.57%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Berkeley Oakland Richmond
Graduate or Professional Degree Bachelor's Degree Some college or associates degree High School Graduate Less than High School Degree
Source: 2006 ACS Estimates, Bay Area Census
Berkeley Resident Occupations, 2006
Management & professional
63%
Sales and office occupations
20%
Service occupations
10%
Construction & repair
4%
Production & transportation
3%
Farming, fishing, and forestry
0%
Sources: US Census Bureau
Average Tax Burden by City
Source: Berkeley Economic Development: Attracting University Spin-off Businesses, David Agrawal, Elinor Buchen, Lauren Friedman, Chelsea MacMullan and Lin Tien (2006), p. 37 and Appendix 4
Berkeley’s Economic Strengths
• Highly educated workforce
• Proximity to research institutions
• Close to sources of capital and entrepreneurship
• Geographic center of the Bay Area
• Green policy leadership
UC Berkeley Start-Ups
The website for the UC Berkeley Office of Intellectual Property and IndustryResearch Alliances lists over 100 start-ups that have leveraged UC Berkeley intellectual property rights (patentable inventions and copyrightablesoftware) since the mid-1990s. Of those with known locations:
•24 are located in Berkeley
•13 are located in other Green Corridor cities
•54 are located elsewhere in California
•19 are located outside of California (including outside the U.S.)
Two-thirds of start-ups are now located outside Green Corridor cities
• Biofuels, including from innovative sources like algae
• Green construction materials
• Bioscience (biopharmaceuticals, drug discovery, diagnostics)
• Photovoltaics and other forms of solar energy
• Nanotechnology
Spin-Off Firms from UC Berkeley and LBNL
Diverse but concentrations in:
CNNSuperChip
UC Berkeley Spin-Off Companies that have UC Berkeley Spin-Off Companies that have Located Outside of the East Bay Green CorridorLocated Outside of the East Bay Green Corridor
Classification of Start-up firms
In NAICS (North American Industrial Classification System), many start-ups are classified in Industry 541710 Research and Development in the Physical, Engineering, and Life Sciences:
Establishments primarily engaged in conducting research and experimental development in the physical, engineering or life sciences…
In the Zoning Ordinance, the likely classification is Laboratories, Commercial Physical or Biological.
Allowed as an “Other Industrial Use” in MU-LI but cannot displace “protected” Use. Not allowed at all in the M District.
Problems with “Laboratory” Use Category for Start-ups
• Use allowed as “Other Industrial” in MU-LI and MM but not M
• In MU-LI and MM an “Other Industrial” Use cannot displace “Protected Uses”
• “Laboratory” Use Category not appropriate for many start-ups requiring flexible amounts of office and industrial space
Berkeley’s Economic Strengths
• Highly educated workforce
• Proximity to research institutions
• Close to sources of capital and entrepreneurship
• Geographic center of the Bay Area
• Green policy leadership
Berkeley’s Economic Strengths
• Highly educated workforce
• Proximity to research institutions
• Close to sources of capital and entrepreneurship
• Geographic center of the Bay Area
• Green policy leadership
Map courtesy of the East Bay EDA
Berkeley’s Economic Strengths
• Highly educated workforce
• Proximity to research institutions
• Close to sources of capital and entrepreneurship
• Geographic center of the Bay Area
• Green policy leadership
East Bay Green Corridor Partnership:UC Berkeley, Lawrence Berkeley National Lab and cities of
Oakland, Berkeley, Richmond and Emeryville
Regional Map
Local Consumer Demand (e.g. Berkeley Solar Financing Program)
Research Institutions
e.g UC Berkeley, LBNL
LocalGovernment
Emerging Green TechCompanies
Regional “Cradle to Scale”
Strategy
Professional Linkages
& Referrals
Research Space Needs
Land Use Policy
Training & Workforce Development
Business Assistance
Marketing
Regional Retention of
Green Industries
Presence of Green
Suppliers & Services
Employment in Emerging Green Jobs
Retaining & Building the East Bay’s Retaining & Building the East Bay’s Emerging Green-Tech EconomyEmerging Green-Tech Economy
East Bay Green Corridor Partnership
GREEN ACADEMY VISIONGREEN ENERGY EDUCATION PATHWAYS
In the East Bay Green CorridorEducation for Environmental Sustainability, Social Justice, and Community
Development
COMMUNITY COLLEGE PRE-BRIDGE AND BRIDGE PROGRAMS
OUTREACH, RECRUITMENT AND ASSESSMENT
CERTIFICATES & TECHNICAL EDUCATION
GREEN ENERGY MANAGEMENT, ENGINEERING, & ARCHITECTURE
FOUR-YEAR BACHELOR PROGRAMS
GREEN ENERGY EMPLOYERS (AND INCUMBENT WORKERS)*Internships *Employment *Apprenticeships * Mentoring
GREEN BUILDING TRADESLabor Union
Apprenticeship Programs
GREEN ENERGY AND GREEN BUILDING DESIGN
MASTERS & DOCTORAL DEGREES
Large Development Sites~28.18 Acres
University-Driven Local Economic Development:How to Birth, Catch & Keep (Green) Start-ups
City of BerkeleyPlanning Commission
February 2009
Michael CohenUC Berkeley
Office of IP & Industry Research [email protected]
510-643-7201
04/11/23
Page 27
Agenda: ~7 Minute Presentation• Highlight Opportunity
• Summarize 4 Paths for Commercializing Research
• Discuss 4 Steps of Locating in Community
04/11/23
Page 28
Opportunity: Start-up Pipeline• In most years, 10-20 start-ups based on UCB / LBL innovations
• In FY08, over 18* start-ups based on UCB / LBL innovations– At least 11 were green tech
o Now, at least 3 currently located in the 4 EBGC cities
o At least 6 were located in EBGC, but 3 moved..
• Many communities dream of this econ dev pipeline– Establish programs & protocols to attract & retain start-ups
– Encourage facilities to attract & retain emerging growth companies
* This number is comprised of the start-ups that licensed IP from UCB or LBL;The number doesn’t include other UCB or LBL spin-outs that didn’t license IP,nor does it include established companies that licensed IP from UCB or LBL.
04/11/23
Page 29
Opportunity: Start-up Econ Dev Models
Page 30
Commercializing: 4 Paths Out of Research
Push The extent that universitiesdrive the transition from
research to product
High
High
Low
Pull The extent that companiesdrive the transition from
research to product
Low
Morphed
Milked
Mined
Marketed
Organically out of researchby team member(s)
Systematically out of researchby corporate collaborators
Opportunistically byentrepreneurs (e.g. MBA students)that periodically scour campus
Methodically to industry by campus (e.g. PI, PR, IPMO, etc)
Page 31
Commercializing: Morphed, Mined, Milked, Marketed
PushHigh
High
Low
Pull
Low
Organically out of researchby team member(s)
Examples: Amyris, Calimetrics, CaliSolar, CellASIC, Chiron, Excellin, GoodGuide (TaoIt), Harmonic Devices, Inktomi, Integrated Diag, IntelliOne, Kalinex, Lumiphore, Mercator Med (EndoBionics), MicroClimates (Aptility), MicroFluiDX, OnWafer, ON Diagnostics, PhotoSwitch Bioscience, Redwood Bioscience, SiClocks, TheraFuse, Urban Scan, Verimetra Med, Wireless Industrial Tech, Dust Networks, Iris AO, SiTime
Drivers: Great Research
Entrepreneurial culture & eco-system
IP: Some obtain exclusive license to improve
biz plan & attract investors
Some ignore or abscond with IP
Morphed
Page 32
Commercializing: Morphed, Mined, Milked, Marketed
PushHigh
High
Low
Pull
Low
Examples: Adura Tech, Aurora Biofuels, CommandCAD, Euclid Media, Fluxion Biosystems, MediFuel, NanoRay, nanoPrint
Drivers: Great Research
MBAs, Biz plan comp, OTL mrktg
IP: Many obtain exclusive license to
improve biz plan & attract investors Some ignore or abscond with IP
Comments: Pathway with highest growth rate MBAs are the campus’s EIRs
Opportunistically byentrepreneurs (e.g. MBA students)that periodically scour campus
Mined
Page 33
Commercializing: Morphed, Mined, Milked, Marketed
PushHigh
High
Low
Pull
Low
Examples (that licensed IP): Analog Devices, Ecoprene (XL Tech), Google, Honeywell, Intel, Berkeley Bionics (first morphed then milked)
Drivers: Great sponsored research with optimized
terms (i.e. 1st access, NERF, open source, etc)
Off-campus corporate labs (i.e. BWRC, Intel, Cadence, Yahoo, Starkey, etc)
IP: Some jointly own IP Some obtain a license to legally use
IP or thwart competitors Some ignore or abscond with IP
Systematically out of researchby corporate research sponsor
Milked
Page 34
Commercializing: Morphed, Mined,
Milked, Marketed
PushHigh
High
Low
Pull
Low
Examples: Arkal Medical, Cisco, ClimateCooler, FuelFX, Luminus Devices, Honeywell, Microchip Biotech, Renovis, Silicon Basis, Solexel, Vitesse, 3M
Drivers: Great Research Marketing (i.e. IP Licensing offices, University PR
programs, Faculty pubs & ppts, Patent pubs, etc)
IP: Most obtain exclusive license to stay
legal, improve BP, attract investment, or thwart competitors
Some ignore IP or abscond with IP
Comments: Didn’t get morphed, milked or mined because tech or market too nascent when invented
Methodically to industry by campus faculty & staff (e.g. PI, PR, OTL)
Marketed
04/11/23
Page 35
Locating: 4 Steps* Into Community
* Simplified Model
Locating into the Community
Baby Step(Free space:
Incubator, Garage, etc)
Virtual Step(Dorm, Apt,
Cafe, Libe, etc)
Big Step(Pay for space)
Big Leap(Pay for spacewith growth)
04/11/23
Page 36
Locating: Competitive Attributes
Locating into the Community
Baby Step(Free space:
Incubator, Garage, etc)
Capital(easy access to VC)
Collaboration(with UCB people)
Virtual Step(Dorm, Apt,
Cafe, Libe, etc)
Big Step(Pay for space)
Big Leap(Pay for spacewith growth)
Commute(finish degree/relocate)
Cost
Colleagues(recruiting, support services)
Credibility(proximity to known corps)
Coolness(of space & hood)
Customers(proximity / density)
Capacity(appropriate space)
Change(inertia of relocating)
Berkeley(campus vicinity)
04/11/23
Page 37
Locating: Baby Step
Locating into the Community
Baby Step(Free space:
Incubator, Garage, etc)
Virtual Step(Dorm, Apt,
Cafe, Libe, etc)
Capital(easy access to VC)
Collaboration(with UCB people)
Commute(finish degree/relocate)
Cost
Credibility(proximity to known corps)
Coolness(of space & hood)
Customers(proximity / density)
Capacity(appropriate space)
Change(inertia of relocating)
Colleagues(recruiting, support services) Leverage
these existing advantages
EBGC(including Berkeley)
04/11/23
Page 38
Locating: Big Step
Capital(easy access to VC)
Collaboration(with UCB people)
Commute(finish degree/relocate)
Cost
Credibility(proximity to known corps)
Coolness(of space & hood)
Customers(proximity / density)
Capacity(appropriate space)
Change(inertia of relocating)
Colleagues(recruiting, support services)
Locating into the Community
Baby Step(Free space:
Incubator, Garage, etc)
Virtual Step(Dorm, Apt,
Cafe, Libe, etc)
Big Step(Pay for space)
Establish these potentialadvantages
Berkeley(campus vicinity)
Leverage these existing advantages
Bay Area & beyond especially San Francisco & Silicon Valley;but including EBGC
EBGC(including Berkeley)
04/11/23
Page 39
Locating: Big Leap
Capital(easy access to VC)
Collaboration(with UCB people)
Commute(finish degree/relocate)
Cost
Credibility(proximity to known corps)
Coolness(of space & hood)
Customers(proximity / density)
Capacity(appropriate space)
Change(inertia of relocating)
Colleagues(recruiting, support services)
Locating into the Community
Baby Step(Free space:
Incubator, Garage, etc)
Virtual Step(Dorm, Apt,
Cafe, Libe, etc)
Big Step(Pay for space)
Big Leap(Pay for spacewith growth)
Can’t expect advantages with these attributes, but need to be competitive with alternatives
The only way to establish an advantage is to be the incumbent & minimize CHANGE
Berkeley(campus vicinity)
Establish these potentialadvantages
Leverage these existing advantages
04/11/23
Page 40
University-Driven Local Economic Development
• Michael Cohen
• UC Berkeley, Office of Intellectual Property & Industry Research Alliances (IPIRA)
• IPIRA.Berkeley.edu
• 510-643-7201
Within a 45 Minute CommuteIn
co
me
Younger Family Mature
Midlife Success (79)
Young Achievers (294)
Accumulated Wealth (74)
Affluent Empty Nests (280)
Young Accumulators
(137)
Conservative Classics (117)
Cautious Couples (28)
Mainstream Families (29)
Striving Singles (6) Sustaining
Families (66)Sustaining
Seniors (55)
Y1
Y2
Y3
F1
F2
F3
F4
M1
M2
M3
M4
The Aquatic Park Commute Shed is Wealthy & Educated
Five County Bay Area – Industry Size, Growth & Concentration
5 County Quad
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
-0.20 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80
Construction
Education and HealthServicesFinancial Activities
Government
Information
Leisure and Hospitality
Manufacturing
Natural Resources andMiningOther Services (exceptPublic Administration)Professional andBusiness ServicesTrade, Transportation,and Utilities