NGA – Eastern Regional Competitiveness Forum June 7, :30 am – 10:00 am

New Economy Linkages….

Define it…….. What is the New Economy?

Industry Clusters 2/3 –Local Clusters  Local firms that serve local customers  Average Wage - $26K 1/3 –Trading Clusters  Average Wage - $42 K  This is where Innovation is  This is where Growth can occur  This is where Wealth is created

How does one proceed ?

Kentucky Innovation Regions Cincinnati St. Louis Nashville South Central North Central Eastern Western

Key Elements of the Strategic Plan Commercialization R & D Workforce

R & D

University Corporate Federal Laboratories R&D

R&D Funding Goals The University of Kentucky and the University of Louisville will increase federal and other extramural (non-institutional) annual research expenditures from $173 million in 2000 to $500 million by 2010 and to $1 billion by 2020.

Technology Clusters Human Health and Development Biosciences Information Technology & Communications Environmental & Energy Technologies Materials Science & Advanced Manufacturing

Opportunity Areas  Kentucky Center for Natural Products  Center for Cardiac Assist Devices  Kentucky First  Kentucky Visioning Center  Energy and Environmental Consortium  Rural Business Building Initiative  Safety and Security

Industry Cluster Formation Technology Clusters I.Human Health and Development II.Biosciences III.Information Technology and Communications IV.Environmental and Energy Technologies V.Materials Science and Advanced Manufacturing Opportunities 1.Natural Products Center 2.Center for the Development of Circulatory Assist Devices 3.Kentucky First 4.Kentucky Visioning Center 5.Kentucky Energy and Environmental Consortium 6.Safety and Security 7.Rural New Economy Business Building Initiative New Economy Industry Clusters

Empowering Kentucky $11.2 to $32.6 billion in increased economic output $3 to $10.1 billion in increased household earnings 73,000 to 317,000 additional jobs The value to Kentucky’s economy of using domestic reserves of coal to generate electricity in the year 2010 will be between:

Commercialization

ICC’s –Satellites IT Resource Network Venture Capital

Executive Director provides support services Northern Kentucky The Kentucky Innovation and Commercialization Center (ICC) Model LouisvilleLexington Central Eastern Western

Commonwealth Seed Capital LLC

Commonwealth Seed Capital Fund State Investment $10 million Private Venture Capital Firm Statewide Investment Group Private Venture Capital Firm Statewide Fund $6 million Eastern Region $500,000 Western Region $500,000 South Central Region $500,000 Life Science Fund $2.5 million

Human Capital Workforce

Role Models Program “ Kentucky can win at other things besides basketball.” -- Lee Todd, President, University of Kentucky

Governor’s Young Entrepreneurs Competition Scholarships to attend Ernst and Young Entrepreneur of the Year Award

Assessing Kentucky’s High- Tech Infrastructure Statewide assessment of Kentucky’s network infrastructu re, access, and usage. Connect entucky

Policy

Bringing the New Economy to Existing Kentucky Businesses  Manufacturing Modernization Initiative  IT Resource Center services  Center for Information Technology Enterprise, Inc.

Monitoring Return on Investment Kentucky must work smarter Kentucky must deploy its resources strategically so that it maximizes return on investment.