Phoenix Convention Center • Phoenix, Arizona

Regional Innovation Clusters

Track 10: Innovation Regional Innovation in Arizona

Michelle De BlasiGammage and Burnham

August 12, 2015

Energy Exchange: Federal Sustainability for the Next Decade2

What is a Regional Innovation Cluster?

• Regional Innovation Cluster = geographically concentrated companies, suppliers, and support entities in a particular industry that develop due to mutual benefits and synergies

• Renewed interest due to:– Mirrors real-world business interaction– Stronger approach to economic development– Involvement of private and public sectors– More focused policymaking

Energy Exchange: Federal Sustainability for the Next Decade3

Why develop Regional Innovation Clusters?

• Regional clusters serve as targeted incubator to accelerate regional economic growth– Provide certainty in policymaking– Encourage investment in start-ups– Drive educational/workforce development– Enhance job growth

Energy Exchange: Federal Sustainability for the Next Decade4

Importance of Public Sector Participation

• Formation of clusters should be led by private industry, however…the public sector is necessary to provide:– Incentive programs (R&D tax credits, grants, small

business financing) – Workforce training– Supportive policies– Access to key data

Energy Exchange: Federal Sustainability for the Next Decade5

Cooperation Is Critical

• All sectors must be committed and coordinated:– Private industry– Federal, state and local governments– Economic development organizations– Public demand

Energy Exchange: Federal Sustainability for the Next Decade6

Examples of Regional Innovation Clusters

Energy Exchange: Federal Sustainability for the Next Decade7

Examples of Federal Involvement in Innovation Clusters

Source: https://www.sba.gov

Energy Exchange: Federal Sustainability for the Next Decade8Source: https://www.sba.gov

Examples of Federal Involvement in Innovation Clusters

Energy Exchange: Federal Sustainability for the Next Decade9

• Economic Development Administration’s i6 Program: Includes $10 MM to support two grant opportunities – i6 Challenge: national competition based on the most

impactful national models for startup creation, innovation, and commercialization

– Seed Fund Support: grants provide funding for technical assistance to support feasibility, planning, formation, or launch of cluster-based seed capital funds that are offered to innovation-based, growth-oriented start-up companies in exchange for equity

Examples of Federal Involvement in Innovation Clusters

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• 24 Incubator and Accelerator Programs– Includes BioAccel (recipient of i6 Challenge Grant)

• Aerospace and Defense– Southern AZ A&D Cluster: recipient of Federal Jobs

Accelerator Advanced Manufacturing Incentives• Bioscience• Technology & Innovation

Examples of Arizona Regional Innovation Clusters

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• City of Phoenix – John Trujillo, City of Phoenix Public Works

• Arizona State University– Teresa Wu, PhD

• Science Foundation Arizona– Ken Quartermain, Director of AZ STEM Network

Specific Players in Arizona’s Regional Cluster Development

Energy Exchange: Federal Sustainability for the Next Decade12

QUESTIONS?

Contact Information:Michelle De Blasi, Esq.

Gammage and Burnhammdeblasi@gblaw.com