regional innovation clusters: a new paradigm for federal economic development policy? the view from...

8/7/2019 Regional Innovation Clusters: A New Paradigm for Federal Economic Development Policy? The View from the Field

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Phillip A. Singerman, Ph.D

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Regional Innovation Clusters:

A New Paradigm for Federal EconomicDevelopment Policy?

The View from the Field


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Phillip Singerman Professional Profile 30 years economic development experience at local, state, and

federal levels, and in the private sector US Assistant Secretary of Commerce for Economic

Development, 1995-1999

Founding CEO of Maryland Technology DevelopmentCorporation, and Philadelphia Ben Franklin Technology Center(rated #1 and #3 by Entrepreneur Magazine for seed funding)

Managing Director of Toucan Capital, a $130 million private

venture capital firm Consultant to local governments, economic development

organizations, and universities on federal funding strategies Board of Directors, State Science & Technology Institute


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B&D Consulting

B&D Consulting is a national advisory and advocacy firm with a focus oninterdisciplinary services for growth sectors of the U.S. economy. Locatedin Washington, DC, B&D Consulting professionals have served private andpublic sector clients across the country since 1986.

B&D Consulting is a division of Baker & Daniels LLP, a full-service law firmwith more than 370 lawyers and consulting professionals serving clients inregional, national and international business and litigation matters fromoffices in Indiana, Chicago, Washington, D.C. and Beijing.

B&D Consultings 50 professionals have expertise in energy andenvironment, health and life sciences, insurance and financialservices, and local government.

B&D Consultings Public Sector Group develops federal funding strategiesfor economic development organizations, colleges and universities, localgovernments, and non-profit associations.


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Overview: Regional Innovation Clusters Regional innovation clusters have been adopted by the Obama

Administration as a key organizing principle of federal economicpolicy -

Concept brings together 3 economic development concepts Regional approaches to bridge the disjuncture between political

jurisdictions and economic regions Science and technology as drivers of innovation

Industry clusters offer competitive advantage Administration has implemented this approach in 2010 White House led inter-agency working groups Establishment of Office of Innovation and Entrepreneurship in

Commerce Department and appointment of high level AdvisoryCouncil

Funding notices for programs by DoE, SBA, EDA, NSF, USDA, DOC Authorization language in America Competes legislation Funding proposed in FY 2011 budget

Cluster approach encourages coordination of federal agencysolicitations to optimize use of constrained federal funds.

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Regional Innovation Clusters: Definition

Regional Innovation (or industry) clusters are geographicconcentrations of interconnected businesses, suppliers,service providers, coordinating intermediaries andassociated institutions like universities or communitycolleges.By facilitating such dynamics as market pooling, supplierspecializing, and knowledge spillovers, industry clustersbenefit all sorts of firms and regions by enhancing the localand innovative potential, encompassing entrepreneurshipand ultimately promoting growth, productivity, wages, andjobs.

- The New Cluster MomentMark Muro, Bruce Katz

Brookings, (September 21, 2010)5


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Four Practical Challenges: Applying science and technology strategies to drive economic recovery Promoting innovative energy technologies

Applying biomedical science and information technologies Assuring technologies needed to protect troops, citizens and national

interests

Four Cross Cutting Areas: Increasing productivity of our research institutions Strengthening STEM education Improving and protecting our information, commercialization and

transportation infrastructure Enhancing our capabilities in space

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Science & Tech Policies For FY 2011 Budget(8/4/09)


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Developing Effective Place Based Policiesin FY 2011 Budget (8/11/09)

To Heads of Executive Departments and Agencies From OMB Director, Domestic Policy Council, Office of Urban

Affairs, Natural Economic Council Objective is to advance Administrations policy priorities by

improving existing place based strategies or adoptingstrategies where there is significant potential for impact on aproblem.

Agency requested to identify the top 3-5 programs orinitiatives and describe Outcomes Indicators Options for improving coordination and effectiveness

Knowledge-building strategies 8


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A Strategy for American Innovation :Driving Toward Sustainable Growth and

Quality Jobs (9/09) National Economic Council and Office of Science & Technology Builds on $100 billion of Recovery Act Funds

Supports need for National Innovation StrategyInvest in Building Blocks of American Innovation Restore American leadership in fundamental research Educate the next generation onto 21st century knowledge and

skill Build leading physical infrastructure Develop an advanced informational technology ecosystem

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Restore American Leadership in Fundamental Research $18.3 billion research funding Double the R&D budget of NSF, DOE-Office of Science, NIST

Invest 3% of GDP on R&D Make the R&D tax credit permanent

Encourage High Growth and Innovation Entrepreneurship Increase access to capital for new businesses

Reduce SBA fees, increase guarantee levels SBIC Program

Provide training and mentoring to entrepreneurs SBA district offices

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Quality Jobs

Selected Detail


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Encourage High Growth and Innovation Entrepreneurship Create competitive communities by promoting regional innovation clusters

thru EDA budget (proposed, FY 10) $50 million for regional planning and matching grants $50 million for national network of business incubators

Stimulate entrepreneurship through increased access to government offices Protect small business from unfair business practices

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Quality Jobs

Selected Detail


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Policy Analysis Reports The Competitive Advantage of Nations , Michael Porter

(New York Free Press, 1990) Clusters and Competitiveness: A New Federal Role forStimulating Regional Economies, Karen Mills 1, ElizabethReynolds, Andrew Reamer(Brookings Institution, 2009)1 SBA Administrator

The Geography of Innovation The Federal Governmentand the Growth of Regional Innovation Clusters, JonathanSallet 2, Ed Paisley, Justin R. Masterman (Science Progress,2009)2 Former US Commerce Policy Director under PresidentClinton, active on Commerce Transition Team

The New Cluster Moment: How Regional InnovationClusters Can Foster the Next Economy, Mark Muro andBruce Katz 3 (Brookings Institution, September 2010)3 Former HUD Chief of Staff under President Clinton, active

on HUD Transition Team 12


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Joint Funding Opportunity Announcement (five year program) Department of Energy $22 million/yr (with 4 additional yrs at $25) Economic Development Administration $5 million NIST/Manufacturing Extension Partnership $500k (with 2 additional years) SBA/Small Business Development Center $300k (with 3 additional years) Support from DoL, DEd, NSF

One proposal, separate applications, individual agency eligibility

requirements, national review Application Deadline: May 6, 2010 Page limit: 350 pages

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Energy Efficient Building Systems - RegionalInnovation Cluster Initiative (E-RIC)


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Explicit set of application criteria Collaborative regional innovation

Public/private partnerships National strategic priorities Global competitiveness Environmentally sustainable development Economic distressed and underserved communities

11 Proposals received

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Energy Efficient Building Systems - RegionalInnovation Cluster Initiative (E-RIC), cont.


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DoE Award Greater Philadelphia InnovationCluster for Energy Efficient Buildings

Announced August 2010 $130 million 5-year award National R&D Consortium led by Penn State

Largest federal award ever won by PSU Located at Philadelphia Navy Yard

Clean Energy campus Navy Yard was closed in 1990s

R&D component linked to proposals to the EDA, SBA, &NIST-MEP

DoE science mission tied to economic developmentgoals

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SBA Innovative Economies Initiative

Goal: Support development and growth of smallbusiness create jobs, compete on a national and global scale,

attract further business investment $600,000/yr Regional Innovation Clusters, Advanced

Defense Technologies (173 Proposals)

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SBA Innovative Economies Initiative Awards announced, September 20,2010

Agriculture Innovative Cluster (Monterey, CA) Carolinas Nuclear Cluster (NC, SC) Connecticut Hydrogen Fuel Cell Coalition (New England) Enterprise for Innovative Geospatial Solutions (MS, LA) Illinois Smart Grid Regional Innovation Cluster (IL) Northeast Ohio Flexible Electronics (OH) Upper Michigan Green Aviation Coalition (MI) Defense Alliance of Minnesota (MN, ND, SD, WI) VonBraun Center for Science and Innovation (Huntsville,

AL) Advanced Defense Cluster (San Diego, CA)

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EDA - I6 Challenge:Innovative ideas to drive technology commercialization and

entrepreneurship

Reflects Administrations interest in prizes as astimulus to innovation (e.g., X Prize)

Joint funding opportunity $12 million competition administered by EDA in partnership with NIH

and NSF At least one winning team in each of EDAs six regions, up to a total of

$1 million per region NSF and NIH will award total of $6 million in supplemental funding to

current Phase II SBIR grantees associated with or partnering with

teams

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I6 Challenge Awards- Announced September 23, 2010

Global Center for Medical Innovation (Southeast) Medical Devices

New Mexico Technology Venture Corporation (Southwest) SBIR Commercialization

University of Akron Research Foundation (Midwest) Polymer Science

St Louis Area Universities and Local Economic DevelopmentOrganizations (Central Plains) Bioscience

Innovation Works and Carnegie Mellon University (Northeast)

Tech commercialization Oregon Transitional Research and Drug Development Institute

(Northwest) Commercialization of various clusters

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NSF Partnerships for Innovation

Goal: Support for innovation capacity to sustain,dynamic interactive knowledge-enhancingpartnership groups composed of academic

researchers and small businesses (new element) Only academic institutions may apply $7 million total - $600,000 per award

Oct 1: Letter of Intent (required) Dec 4: Proposal Deadline

Program has been in existence for 10 years

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NSF Partnerships for Innovation

Response to LOI by NSF Program Manager Purpose: Put the US back on its economic feet A very distinctive call Not basic research, not commercialization Research and Building of Innovation Capacity Close interaction between academic researchers

and small businesses

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