Innovation Futures

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

http://whatmatters.mckinseydigital.com/author/Andr%C3%A9+Andonian,+Christoph+Loos,+and+Luiz+Pires/










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











http://whatmatters.mckinseydigital.com/flash/innovation_clusters/

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













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


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.