Global Economic Battlefield of the Future
Jeff Amerine, PMPUniversity of Arkansas
Innovate ArkansasNovember 4, 2010
Future “Economic Arms Race”: The Global Innovation Battleground
Arkansas’ Challenge and Opportunity
Societal Impacts
Workforce Education Implications
“But they should not lose sight of innovation: managers know that
the future of their businesses depend on it, and government leaders
understand that the long-term growth prospects of cities and
nations are tied to it. Even—perhaps especially—in times of economic
turbulence, innovation remains the most important differentiator
separating economic winners from also-rans.”
André Andonian, Christoph Loos, and Luiz PiresBuilding an innovation nation, Mckinsey & Company
Ideation Innovation Commercialization EconomicGrowth
Time
◦ Sustained Economic Growth = Continuous Innovation Cycle
Advanced Car Batteries
Renewable Energy Storage
Advanced Biofuels
Carbon Capture
Solar Power: Thin Film and Space-based Solar
Source: Michael Totty, Five Technologies that Could Change Everything , October 29, 2009, Wall Street Journal
Who will win the new global innovation race in green technologies?
Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company
Prerequisites
◦ Physical Infrastructure ◦ Rule of Law◦ Government Stability◦ Focus: World-class
Technology Sector◦ Innovation Culture
Innovation Hot Spring
•Small, fast growing hub•Reliant on a few firms•Narrowly focused
Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company
Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company
http://whatmatters.mckinseydigital.com/flash/innovation_clusters/
Fayetteville, Arkansas
Interactive “Innovation Heat Map” View:
Three Growth PathsGovernment IncentivesGeographic DifferentiatorsUniversity Hub
Dynamic Ocean
•Sustained Innovation•Significant Start-up Churn•Innovation Culture•Multiple Sectors/Clusters
Source: Building an innovation nation, André Andonian, Christoph Loos, and Luiz Pires , Mckinsey & Company
Innovation Hot Spring
•Small, Fast Growing Hub•Reliant on a Few Firms•Narrowly Focused
Mostly not in Arkansas…but progress is happening
UniversityR&D
InnovationEngine
EntrepreneurialCulture
AvailableCommercialization
Finance
UniversityR&D
InnovationEngine
EntrepreneurialCulture
AvailableCommercialization
Finance
$$
Time
Seed Early Growth Mature / Expansion
AngelsVenture Capital
Strategic InvestorsDebt Investors
Revenues
Expenses
Mezzanine Finance
Bootstrap – Self FinancingGov Grants
Concept
Basic Research
Applied Research
Validation – Mkt & Tech
Patent Application/Licensing
Pre-Seed Funding & Skill Gaps = Commercialization
Friction Points
Grant Proposal Dev
Inadequate Patent & Technology Understanding
1-2 Big Hits per DecadeSignificant Employment,
& Royalties
7 Licenses
$120+ Million in UA Research
30 Invention Disclosures
10 Patent Applications
5 AR Start-ups
CommercializationEducation & Evangelism
Faculty Tenure / Rewards
Technology & PatentValidation Funding
MarketValidation Funding
Grant Coaching & MentoringBusiness Plan Competitions
Lack of Researcher Awareness &Compliance
Inadequate Market Understanding
Inadequate Grant SkillsInsufficient Access to Venture Funding
Filling the Funding/Skill Gap
UA Validation Fund & NSF Grants
More QualityArkansasVentures
• Commercialization Education• Market Validation• Technology Validation• Government Grant Coaching/Mentoring• Patentability Validation• Business Plan Competitions
Innovation-based economies will prosper
Pace of innovation accelerates and product lifecycles shorten even further
Capital and talent migrate toward innovative regions with high quality of life
Institutional unemployment occurs in stagnate regions
Government, business, and individuals compete globally based on their “innovation quotient (IQ)”*
Regional workforce education must be visionary, agile, and proactive in curriculum development, recruitment, and retention
* Source: Mochari, I., (2002) The Innovation Factor: What's Your Innovation Quotient?, Inc. Magazine Online.
Filling the Talent/Skill Gap
SustainableEconomic Clusters
• Recruiting, Retaining Best and Brightest• Convert Student Visas to H1B Visas • Innovation Education• Government Grant Coaching/Mentoring• Green Technology Education• Commercialization Education• Business Plan Competitions
Curriculum & Policy Imperatives= “Dynamic
Ocean”
Innovation will be the key strategic global differentiator
McKinsey’s “Innovation Heat Map” shows challenges and opportunity for Arkansas
Green, sustainable technologies will drive the next economic boom
Economic growth requires early-stage funding to bridge the “Valleys of Death” in the innovation to commercialization process
Regional workforce education must be visionary, agile, and proactive in curriculum development, recruitment, and retention
References
Amerine, J., (2010) NSF PFI Grant Slide Materials.
Andonian, A., Loos, C., & Pires, L. (2009) Building an Innovation Nation, Mckinsey & Company Online. Retrieved from: http://whatmatters.mckinseydigital.com/innovation/building-an-innovation-nation
Mochari, I., (2002) The Innovation Factor: What's Your Innovation Quotient?, Inc. Magazine Online.
Totty, M., (2009) Five Technologies that Could Change Everything , Wall Street Journal, October 29, 2009.
Top Related