AICUP Economic Development Institute Cluster, Ecosystems and Collaborators (OH MY!) Prepared by: Fourth Economy Consulting Rich Overmoyer President & CEO November 4 th, 2010

Topics 2009 – The year of collaboration Clusters Innovation Ecosystems Collaboration for success What’s ahead 2

The Year of Collaboration Suddenly the Federal Agencies are working together +Department of Energy +Department of Labor +Department of Agriculture +National Science Foundation +National Institutes of Health The Recovery Act has supported some new program development Additional programs are planned as part of FFY 2011 budget More to be done between Federal and State coordination 3

Economic Clusters Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field that are present in a region. Higher education can be an important anchor and/or supporting instruction of a cluster Federal funding is increasingly being directed to supporting clusters as opposed to individual entities Some resources for learning more at: +Harvard Institute for Strategy and CompetivenessHarvard Institute for Strategy and Competiveness +Economic Development AdministrationEconomic Development Administration 4

Example: SBA Cluster SBA awarded $6M for “innovative Economies” initiative on Awards support activities in +Energy, Agriculture, Green Innovation, Defense Includes small and large entities working together in regional partnerships Focus is on providing opportunities for small businesses Region III – Bridget Bean (Acting Director) Parkview Tower 1150 First Avenue - Suite 1001 King of Prussia, PA (610)

Innovation Ecosystems Similar to Clusters but not as geographically dependent. Ecosystems recognize diverse contributions of academic institutions, private companies, services providers, capital sources and community assets Federal context is around creation enhanced ecosystems to bring ideas and technology to market Evolve, like an environmental ecosystem Resources +Where Good Ideas Come from: The Natural History of InnovationWhere Good Ideas Come from: The Natural History of Innovation +Department of Energy: Innovation EcosystemsDepartment of Energy: Innovation Ecosystems 6

Example: DOE Innovation Ecosystem Awarded 5 Proposals on Clean Energy Trust – Chicago: Several University partners +Fraunhofer Center for Sustainable Energy Systems – Cambridge, Mass +University of California – Regional Energy Innovation Challenge +University of Central Florida – university teams compete in MegaWatt Ventures +University of Utah – commercialize regional energy technologies 7

Collaboration Individual proposals increasingly difficult to get funded Identification of partners within community, region, ecosystem is critical Proactive approach is critical – competition is intense EDA Investment Priorities: +Collaborative Regional Innovation +Public/ Private Partnerships +National Strategic Priorities +Global Competiveness +Environmentally Sustainable Development +Economicall Distressed and Underserved Communities 8

An Example: Collaboration I6 Challenge +Department of Commerce with NIH and NSF +$12,000,000 effort to support technology commercialization and entrepreneurship +One per Economic Development Administration Region: –Atlanta: Global Center for Medical Innovation –Austin: New Mexico – SBIR initiative –Chicago: University of Akron – Biomedical Innovation –Denver: St. Louis Universities aligned for medical innovation –Philadelphia: Carnegie Mellon University and Innovation Works –Seattle: University of Oregon – three technology clusters The Curtis Center, Suite 140 South 601 Walnut Street Philadelphia,PA Willie C. Taylor, Regional Director, 9

Government Funding Roadmap Interdisciplinary and Multi-pronged Approach Financially Matched +Applications often have to match at least 20% Impactful +Job creation +Environmental benefits +Social benefits Community Supported +Multiple partners +Political buy-in Sustainable +Program will eventually pay for itself beyond the grant +Regional wealth and expertise creation 10

Discussion… Fourth Economy Consulting Web: Phone: