REGIONAL INNOVATIONNATIONAL PROSPERITY

Presented by Charles J. Brown IIIHRQMC Regional Agenda

The Challenge Large industrial operations or headquarters

Tax incentives Inexpensive labor

Production shifted elsewhere Intellectual Capital (Knowledge)

Quality of employees Reputation of a brand Skills and knowledge about how to make goods or

services Success critical individuals or groups Aggregation of information of value that is not common

knowledge

The Challenge

Economic development strategies Incentive-based strategies

The Answer: Innovation

The nature of Innovation is changing Faster Multidisciplinary Collaborative Democratized Global

The Risk

50% of all U.S. patents are foreign Japan, Korea, and Taiwan are 25% of that

Sweden, Finland, Israel, Japan, and S Korea each invest more in R&D to GDP than U.S.

2004 China became world leader of exporting ICT e.g., Mobile phones, laptops, digital cameras

6 of the 25 leading IT companies are in the U.S.

14 are based in Asia

The Conclusion

“The capacity for innovation is going global — and we must pick up the pace … today, the forces of global economic integration and advances in technology are creating a different and more complex challenge. Sustaining competitive advantage will require moving beyond efficiency and quality toward creating new markets, increasing choice and value to customers, and innovating continuously on a global basis.”

The Paradox: The Region

Proximity Contact

Suppliers Customers Industry Academia

Industry clusters Diversification and Differentiation

Diverse people, land, services, etc. Specialized infrastructure educational

institutions, and workforces

The Five Common Challenges

Promoting regionalism Building and retaining talent Transitioning to advanced manufacturing Networking knowledge assets Energizing the entrepreneurial economy

Innovation-based Regional Economic Development Model

Innovation

Productivity

Prosperity

Measuring Regional Innovation

Key objectives for the Regional Innovation Initiative Improving awareness among federal, state,

and local stakeholders of the conditions necessary to promote innovation-based economic development

Catalyzing consensus on policy priorities and practices to strengthen the regional platforms for innovation

Measuring Regional Innovation

Key objectives for the Regional Innovation Initiative Supporting a forum for business, academia,

government, and supporting organizations to build partnerships by sharing new ideas and best practices;

Providing tools and techniques that allow states and regions to inventory, evaluate and benchmark their innovation capacity

Accelerating implementation of local economic development initiatives

Measuring Regional Innovation

Review of Previous Data Comparative Data Analysis Regional Business Survey Community Leadership Interviews

Inputs to Innovation Capacity

Assets Human Capital Research and Development Institutions Financial Capital Industrial Base Physical Infrastructure Legal and Regulatory Environment Quality of Life

Inputs to Innovation Capacity

Networks Collaborative economic development

partnerships Angel capital networks Research partnering

Universities Businesses Workforce development programs

Informal networks City sports leagues University alumni associations

Inputs to Innovation Capacity

Culture Collaborating and sharing with competitors Attitude toward risk Appreciation of diverse experiences and

background

Regional Innovation Environment

Innovation Productivity ProsperityCulture

Networks

Assets

Regional Innovation

Environment

Outputs

Inputs

Websites

www.HRQMC.org www.compete.org

www.compete.org/publications/idea/7/regional-innovation Regional Innovation National Prosperity Measuring Regional Innovation