BUSINESS SENSITIVE 1 West Virginia Blueprint for Technology-Based Economic Development Marianne Clarke Battelle Technology Partnership Practice March 2009

BUSINESS SENSITIVE 1

West Virginia Blueprint forTechnology-Based Economic Development

Marianne ClarkeBattelle Technology Partnership Practice

March 2009

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Battelle

Who is Battelle?

• One of world’s largest non-profit R&D organizations ($4 billion in R&D activity annually)

• Worldwide leader in development, commercialization, and transfer of technology (50 – 100 patents annually)

• Contract research with nearly 1,100 government and industry clients annually

• Manager of national labs (Brookhaven, Idaho, Pacific Northwest, Oak Ridge, National Renewable Energy, Lawrence Livermore, National Biodefense)

• More than 20,000 employees worldwide

Battelle’s Products• Annually develop R&D Funding

Forecast for U.S.

• Technology forecasts (Top Ten Products; Top Ten Home Products)

• Rapid product development for firms (toothbrushes to insulin pens) resulting in many product awards annually

• Commercializing technologies and establishing firms

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Battelle’s Technology Partnership Practice

Demonstrated track record in translating technology strengths into development strategies and designing and evaluating key initiatives from research parks to incubators to research centers

Broad breadth – TPP projects acrossthe nation in the past 9 years

Areas of Expertise– Core Competency Identification – Cluster Analysis– Economic Impact Assessment– Technology Talent & Workforce

Development– Entrepreneurial Development/

Venture Financing– Technical Assistance and

Problem Solving– Program Design and

Implementation – Benchmarking

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Why Develop a Blueprint for Technology-Based Economic Development

New dollars into state viaexternal funding of R&D(federal, non-profit, andcommercial)

• Economic expansion (output) • Direct employment in R&D• Enhanced workforce education• Innovation and intellectualproperty generation

• Enhanced image and awarenessof state

• New and improved products for industry• Enhanced production technology and productivity• Technology-based solution to problems • Output and employment expansion • Exports and income generation for state• Enhanced local and state tax base• Economic sustainability

• New business development and business sectors• Economic diversification• Output and employment expansion • Exports and income generation for state• Enhanced local and state tax base

Research& Development

TechnologyCommercialization

Enhanced Productivity

and Value-Added for Existing

Industry

New dollars into state viaexternal funding of R&D(federal, non-profit, andcommercial)

• Economic expansion (output) • Direct employment in R&D• Enhanced workforce education• Innovation and intellectualproperty generation

• Enhanced image and awarenessof state

• New and improved products for industry• Enhanced production technology and productivity• Technology-based solution to problems • Output and employment expansion • Exports and income generation for state• Enhanced local and state tax base• Economic sustainability

• New business development and business sectors• Economic diversification• Output and employment expansion • Exports and income generation for state• Enhanced local and state tax base

Research& Development

TechnologyCommercialization

Enhanced Productivity

and Value-Added for Existing

Industry

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How the Blueprint Was Developed

Core Competency Assessment

and Identification of

Technology Platforms

• Quantitative Analysis

• Interviews

Assess Competitive

Position of WV

•Review previous Analysis•Supplement with additional data

West Virginia Technology

Blueprint Plan

• Mission/Vision• Strategies• Actions• Priorities• Financial Resources• Timeline• Implementation Plan• Measures of Success

Communication and Roll-Out

Stakeholder Interviews and Gap Analysis

Phase I Phase II

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Identifying Strategic Focus Areas

• To determine WV’s technology strengths, Battelle asked three core questions:– What are the established and emerging science and

technology R&D core competencies in WV?

– Which of these core competencies coincide with significant market opportunity – thereby constituting key technology niches or “technology platforms” that may drive technology-based economic development for WV?

– What is West Virginia’s current competitive position for technology-based economic development?

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Discerning Technology Research Strengths: Quantitative/Qualitative Analysis

Qualitative Analysis• Use of extensive field interviews

to identify how core competencies can be translated into sources of innovative technologies/products for development (platforms).

• Key characteristics:– Applications orientation

– Address current as well as new, emerging market opportunities

– Interdisciplinary and often cross-institutional

• Picks up emerging areas not always captured in quantitative data

• Links research to platforms through market analysis

Quantitative Analysis• Identifies research strengths

through statistical analysis that includes the following:

– Extramural Grants

– Publications

– Reputation Rankings

– Patents

• Use of OmniViz clustering analysis of patent and grant awards to identify research and technology areas where both concentration of activity and excellence are demonstrated.

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Strategic Focus Areas for WV

Objective

Subjective

Core Competency Areas

WV Technology Platforms

Energy EnvironmentPublic health/Occup. health

Materials Neuroscience Cancer

Nanotech &applications

Diagnostics andDrugs

Visualization &Imaging

AdvancedEnergy and

Energy-RelatedTechnology

MolecularDiagnostics,

Therapeutics andTargeted Delivery

Systems

Identification,Security & Sensing

TechnologyMaterials

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Strengths on which to build and challenges to address

Presence of a large number of non-profit and federal research institutions

Growing academic research base Increased focus on tech transfer and

commercialization at MU and WVU

Growing technology sector, particularly in North Central WV

Highly productive workforce/strong college graduates

Growing entrepreneurial support infrastructure Quality of life that is attractive to many people

Competitive Advantages

Small base of technology industry Low educational attainment of population Insufficient sources of risk capital,

particularly at the commercialization, pre-seed and seed stages

Lack of entrepreneurial and management talent

Little regional collaboration due to both geography and tradition

Conservative and risk-averse population Image of WV is not consistent with a tech-

based economy

Challenges

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Blueprint Phase II – Developing Strategies and Actions to Grow West Virginia's Technology Economy

• Capitalize on strengths– Initial focus on two platforms: Advanced Energy and

Identification, Security and Sensing Technology

• Address gaps

• Propose implementation steps

Support and oversight provided by: TechConnectWV

Vision Shared TeamWV Coalition for Technology Based Economic Development – 2007TechConnectWV – 2008


Key Gaps Facing WV in Building its Technology Economy


Many West Virginian’s provided input in developing the proposed strategies and actions

• In-depth interviews with key stakeholders

• Regional focus groups with representatives from universities, economic development groups, technology companies, government agencies and others

• Platform focus groups – Biometrics

– Energy

• Extensive input from TechConnectWV Executive Committee and staff

Focus Group Sessions to Address West Virginia’s Gaps

Eastern Panhandle (Martinsburg)

Mid State (South Charleston)

Northern Counties (Morgantown)

Southern Counties (Beckley)


Build a culture that supportsinnovation and entrepreneurship

Grow West Virginia’stechnology clusters

Ensure access to capitalat all stages of development

Promote a pro-active businessclimate with incentives that willgrow attract and retaintechnology-based companies

General Strategies Proposed for West Virginia

Strategies to Grow West Virginia Technology Clusters

Advanced Energy Platform• Bring key stakeholders together• Establish WV as a leader in advanced energy• Facilitate university, national lab and non-profit

engagement with industry for technology development and commercialization

Identification, Security and Sensing Technology Platform

• Bring key stakeholders together to guide biometrics sector development

• Build a stronger commercial biometrics base• Aggressively promote WV as the international

hub for biometrics — identity, security and sensing technologies

Molecular Diagnostics Therapeutics and Targeted Delivery Systems Platform

• To be developed

Advanced Materials and Chemicals Platform• To be developed


General Strategies and Actions to Boost Technology-Based Economic Development in West Virginia

Support and expand TechConnect WV

Support and expand a statewide network providing comprehensive commercialization services and support to technology entrepreneurs and early-stage start-up companies

Encourage the state’s universities to continue to increase support for technology transfer and commercialization

Create a university-industry matching grant program

Publicize and celebrate TBED success

Continue to provide support for the WV Research Trust Fund

Establish an Innovation Institute Program focused on the technology platforms

Form technical networks around each of the platform areas

Provide funds to match SBIR and STTR Phase I awards received by WV companies

Increase funding for INNOVA’s seed and early-stage investment fund

Use tax credits to make capital available to early-stage technology companies

Attract venture fund investments in WV technology companies

Invest in technology infrastructure, including research parks, incubators, and laboratories

Maintain the state’s refundable R&D tax credit and Economic Opportunity Tax Credit

Develop a branding and marketing strategy that builds on the technology and location strengths of WV

Identify and build awareness of 21st Century Skills

Facilitate and expand talent recruitment efforts

Undertake a communications campaign

Build a culture that supports innovation and entrepreneurship

Grow WV’s technology clusters around the targeted technology platforms

Ensure access to capital at all stages of firm development

Promote a proactive business climate


Opportunities in the Identification,Security and Sensing Technology

Electronicsand nano-materials

Identification,Security, and

Sensing Technology

Biosensorsand

nano-deliverysystems

Molecularrecognition

sensors

Security anddefense

systems andapplications

Integratedmolecular

recognitionsystems

Environmentalmonitoring and

sensingsystems


Biometrics PlatformStrategies and Actions

Fund the West Virginia Biometrics initiative to form the platform steering committee comprising representatives from industry, government, nonprofit, and R&D institutions

Continue to identify and promote opportunities and high-value projects with alignment to existing capabilities in identification, security and sensing technology areas

Continue to develop and implement plans, projects or activities focused on high-priority theme areas

Integrate biometric applications and technologies within state controlled facilities to spur development of West Virginia biometrics companies and industry

Encourage intellectual property development and technology transfer at West Virginia universities and invest in biometrics products from West Virginia R&D institutions

Provide funds to small West Virginia biometrics companies to support joint R&D projects with area universities and user organizations specific to commercial product development

Recruit a product-based company in the biometrics space

Provide funding through the West Virginia Department of Commerce to support and expand the West Virginia Biometrics Initiative’s sector-promotion activities

Bring key stakeholders together to guide biometrics sector development

Build a stronger biometrics base Aggressively promote West Virginia as the international hub for biometrics— identification, security and sensing technology


Opportunities in the Advanced Energy Platform

EnergyRecovery and

Distributiontechnology

Advanced Energy and

Energy-related Technology

Carbonmaterials and

byproduct materials

Powerrecognition/combustiontechnology

Energypollution

prevention and mitigation

Energy-useefficiency

technology

Alternativeenergy and

fuels


Energy PlatformStrategies and Actions

Hold a series of forums/events in which energy-sector industry representatives outline their needs to the university, national lab, and nonprofit research leaders

Seek establishment of a nationally recognized (such as NSF) industry-university collaborative center in advanced energy technologies to be located at WVU and to focus on commercialization

Encourage commercialization of intellectual property from the National Energy Technology Laboratory

Build an active and strong portfolio of advanced research projects funded by the federal government under its advanced energy program initiatives

Establish a significant level of nationally known technology programs funded by industry and venture capital firms

Develop capability to write position papers on economic and/or policy issues related to energy across the spectrum of state government, universities, nonprofits, and industry sectors

Take a leadership role in promoting interstate programs for energy research, demonstration, or deployment of advanced technologies

Implement advanced energy initiatives throughout governmental, government-related, industrial, and private sector sites to promote energy conservation and efficiency or deploy more environmentally friendly technologies

Increase West Virginia’s non-fossil fuel and energy portfolio

Form platform steering committee comprising representatives from industry, government, and R&D institutions

Develop opportunities and high-value technology areas with alignment to existing energy-related statewide strategic plans

Develop key stakeholder groups or subcommittees that are chartered with developing and implementing plans, projects, or activities focused on specific high-priority theme areas (e.g., clean coal technology, carbon sequestration, combustion technology)

Hold a series of forums/events in which energy-sector industry representatives outline their needs to the university, national lab, and nonprofit research leaders

Seek establishment of a nationally recognized (such as NSF) industry-university collaborative center in advanced energy technologies to be located at WVU and to focus on commercialization

Encourage commercialization of intellectual property from the National Energy Technology Laboratory

Build an active and strong portfolio of advanced research projects funded by the federal government under its advanced energy program initiatives

Establish a significant level of nationally known technology programs funded by industry and venture capital firms

Develop capability to write position papers on economic and/or policy issues related to energy across the spectrum of state government, universities, nonprofits, and industry sectors

Take a leadership role in promoting interstate programs for energy research, demonstration, or deployment of advanced technologies

Implement advanced energy initiatives throughout governmental, government-related, industrial, and private sector sites to promote energy conservation and efficiency or deploy more environmentally friendly technologies

Increase West Virginia’s non-fossil fuel and energy portfolio

Form platform steering committee comprising representatives from industry, government, and R&D institutions

Develop opportunities and high-value technology areas with alignment to existing energy-related statewide strategic plans

Develop key stakeholder groups or subcommittees that are chartered with developing and implementing plans, projects, or activities focused on specific high-priority theme areas (e.g., clean coal technology, carbon sequestration, combustion technology)

Facilitate university, national lab, and nonprofit engagement with industry for technology development and commercialization

Establish West Virginia as a leader in advanced energy

Bring key stakeholders together to guide advanced energy sector development

Facilitate university, national lab, and nonprofit engagement with industry for technology development and commercialization

Establish West Virginia as a leader in advanced energy

Bring key stakeholders together to guide advanced energy sector development


Measures of Success

• Continue to grow the West Virginia academic R&D base at a pace that significantly exceeds that of the nation, with a target of $360 million by 2015

• Increase R&D funding in platform areas in all sectors (academia, nonprofits, and industry)

• Increase industry-supported R&D at West Virginia’s universities and colleges to match the national average by 2020

• Increase the number of technology-based companies in West Virginia at a rate higher than the national average

• Increase employment in private-sector, technology-based companies in West Virginia to reach the national average by 2020

• Increase the number of spin-off companies developed from technology created at West Virginia’s universities to achieve the national average by 2020


Conclusion

West Virginia must build innovation infrastructure to compete and to grow and diversify economy

West Virginia is positioned to grow the technology sector by building on strengths in advanced energy, biometrics, materials, and biomedical fields

To succeed, WV must commit to making a significant investment over an extended period of time

The Benefits of Technology-Based Economic Development ... in a Nutshell

People of West Virginia

More jobs and more high-paying jobs

Enhanced educational

opportunities Improved quality of life

Higher per capita incomes

Increased tax base and

revenues WV’s best and brightest

stay—or return—home

State of West Virginia


EXECUTIVE SUMMARY

MATERIALS & CHEMICALS REPORT Strategies to Grow WV’s Advanced

Materials and Chemicals Platform

ADVANCED ENERGY REPORT Strategies to Grow WV’s

Advanced Energy Platform

BIOTECHNOLOGY REPORT Strategies to Grow WV’s Molecular

Diagnostics, Therapeutics & Targeted Delivery Systems Platform

BIOMETRICS REPORT Strategies to Grow WV’s Identification

Security and Sensing Platform

GENERAL REPORT

General Strategies to Grow WV’s Overall Technology Economy

Copies of these reports can be found at www.techConnectWV.com


Marianne Clarke

Director, Washington Office

Technology Partnership Practice

Battelle

Voice: (301) 270-6245

E-mail: [email protected]

Documents

BUSINESS SENSITIVE 1 West Virginia Blueprint for Technology-Based Economic Development Marianne Clarke Battelle Technology Partnership Practice March 2009