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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
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Key Gaps Facing WV in Building its Technology Economy
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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)
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Marianne Clarke
Director, Washington Office
Technology Partnership Practice
Battelle
Voice: (301) 270-6245
E-mail: [email protected]