Lessons from the U.S. Innovation System Fred Block University of California, Davis May 2011

R&D 100 Awards "The Oscars of Invention"- The Chicago Tribune For 45 years, the prestigious R&D 100 Awards have been helping companies provide the important initial push a new product needs to compete successfully in the marketplace. The winning of an R&D 100 Award provides a mark of excellence known to industry, government, and academia as proof that the product is one of the most innovative ideas of the year.

2008 Winners Include: Antibody Profiling Indentification-AbP ID Idaho National Laboratory, Idaho Falls, ID Identity Sciences, Alpharetta, GA Rynaxypyr Insecticide DuPont Crop Protection, Newark, DE Formulator Formulatrix, Inc., Waltham, MA Berkeley Lab PhyloChip Lawrence Berkeley National Laboratory, Berkeley, CA

SBIR: Set-aside program for small business concerns to engage in federal R&D --with potential for commercialization. STTR: Set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization. Program Descriptions

SBIR/STTR: 3-Phase Program PHASE I Ü Feasibility study Ü $100K and 6 months (SBIR) or 12 months (STTR) PHASE II Ü Full R/R&D Ü 2-Year Award and $750K (SBIR) or $500K (STTR) PHASE III Ü Commercialization Stage Ü Use of non-SBIR Funds

Industry/ University Cooperative Research Centers (I/UCRC) National Science Foundation

NUMBER OF CENTERS

Firm Size by number of employees Figure 1: Thousands of Full Time Equivalent Scientists and Engineers in R&D Performing Companies, by Firm Size,

Figure 4: Trends in SBIR Awards and Ph.D. Technologists Employed by Small-Firms

Figure 5: Number of Early Stage and Seed Funding Awards, SBIR and Venture Capital Sources: VC investment data from PWC Moneytree; SBIR data from Wessner 2008

Figure 6: Percentage of Venture Capital Investments to Firms with Prior SBIR Award(s) – Life Sciences

Network Failures Occur in decentralized production systems when: 1.Firms cannot find the partners they need. 2.The potential partners lack the needed competence. 3.The potential partners lack integrity and honesty. Public programs can help participants with all of these issues. Source: Josh Whitford and Andrew Schrank.

Relational Work “ the creative effort people make establishing, maintaining, negotiating, transforming, and terminating interpersonal relations. Relational work goes on continuously, shaping boundaries which differentiate relations that might become with deleterious consequences for one party, both parties, or third parties.” Zelizer, forthcoming.

Relational Work in the Innovation System New Relational Packages For government officials. For university and federal lab technologists. For private sector scientists and engineers