Innovation by sofiaie

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									North Texas Commission
 Innovation Task Force

    Initial Report to the
    Board of Directors

    September 18, 2008
“If the pace of change inside the
organization is slower than the pace of
change outside the organization…
the end is near.”

                                 Jack Welch
                                 Retired CEO
                                 General Electric
  “In the next 10 years emerging
technologies will create $10 trillion
            in wealth.”

               Governor Rick Perry
               October 24, 2005
               Fort Worth Petroleum Club
        Understanding the
       Innovation Economy

Historically, research and technology have been the
primary drivers of economic growth and development
Technology-led economic development has “clustered”
around and been driven by major research universities
Research that supports and/or has commercial application
is the basic cornerstone in the creation of technology
start-ups supporting the growth of industry clusters
     Case for Support:
       North Texas
North Texas is the fourth largest metropolitan
MSA in the United States, with a population
of 6 million
The region boasts the largest technology
trained workforce in the U.S. other than
Silicon Valley
We have 27 four year colleges & universities;
however, no university has emerged as a
primary driver of “tech transfer”

The NTC Innovation Task Force,
appointed by the Board of Directors
March 25, 2008, is charged with
developing recommendations to the
Board, relative to the Commission’s role
in maintaining and enhancing North
Texas’ competitiveness in a “globally
competitive, innovation driven” economy

Given the Commission’s mission it is
important to acknowledge the importance
of incentivizing regional collaboration,
and that the Commission consider its
primary role as a convener, facilitator,
and process manager to establish and
support the framework need to support
regional collaboration
   Aligning with Texas

Texas Technology Initiative
State Cluster Initiatives
Emerging Technology Fund
Regional Center for Innovation &
 Commercialization (RCIC)
     Aligning with
    Washington, D.C.
Support of commercializable research
Formation of industry/academic research
Federal research grants evolving to
venture funding/commercialization
        Initial Findings of
          the Task Force

Task force has met three times
We have identified three “strategic goals”
critical to North Texas’ competitiveness
For each goal we have provided:
 1.   Metrics
 2.   Activities, initiatives, and/or projects
 3.   Listing of potential partners
We have not defined specific roles for the
        Strategic goals
for North Texas’ Competitiveness

  1. Enhance the research capability of our
  2. Enhance the commercialization of
  3. Develop and market our regional
            Goal 1
enhance the research capability
     of our Universities
 The most successful “Innovation Economies”
 have been the result of effective partnerships
 between universities and the private sector,
 focused on technology transfer “from the lab
 to the market place.”
  Stanford University and the University of California,
   Silicon Valley
  MIT and Harvard, Boston Biotech Corridor
  Duke and the University of North Carolina, Research
     Initiative: Enable Regional
        University Excellence
 Metrics:
   • External research funding secured
   • R & D spending at universities with focus on commercialization
   • University tech transfer
 Activities
   • Identify ways to support aspirations of North Texas’ universities seeking Tier One
     research status
   • Encourage collaboration among and between our region’s universities (document
     the efforts, consider securing funds in support)
   • Develop one or more models to enable regional university excellence through
   • Resources are “locked up” in how universities/university systems operate (is this a
     state policy issue?)
 Suggested partners
   • UT Arlington
   • UT Dallas
   • UT Southwestern
   • University of North Texas
   • University of North Texas Health Science Center
              Define the Challenge &
             Opportunities for Tier One
               Research Universities
    Texas Tech               UT San Antonio
    UT Arlington             University of Houston
    UT Dallas                University of North Texas
    UT El Paso

                    Public            Private            Total

    California       6                 3                  9
    New York         2                 5                  7
    Pennsylvania     2                 2                  4
    Texas            2                 1                  3
    Massachusetts    0                 3                  3
  Initiative: Enhance federal
funding in support of regional
     university excellence
   • Regional applications submitted (collaboration)
   • Federal funds secured
   • Seek federal funding in support of university research collaboration and
     academic/industry partnerships
   • Engage universities to define, develop the model(s)
   • Identify and aggregate current research funding received, to better compare
     and sell region
   • Include concept of regional collaboration for state, federal funds, that could
     link to RCIC
 Suggested partners
   • Regional Incubators
   Defining the Challenge &
Opportunity for Federal Funding
             for Texas
  Energy technology
   Department of Energy funding
    •   University of California   $ 4.0 billion
    •   University of Tennessee    $530 million
    •   Stanford                   $330 million
    •   Texas                      $120 million
    •   University of Chicago      $ 80 million
             Goal 2
enhance the commercialization of
    Historically, research and technology have
    been the drivers of wealth creation
    Three critical components
     1.   Technology discoveries
     2.   Venture capital
     3.   Entrepreneurs

    The critical success factor is the means to
    bring these three key elements together
  Initiative: Thicken spine of
value chain from lab to market
 Metrics:
   • VC funding in region
   • Other early stage funding in region
 Activities
   • Identify specific areas that could be pursued through collaboration, such as clinical
     research trials
   • Identify specific areas that represent opportunities for joint industry/academic research
     partnerships, such as energy technology, medical devices
   • Work with RCIC to enhance access to venture funds in our region
   • Develop examples of “lost technology” from North Texas, as a result of not having
     adequate venture capital
   • Work on the “culture of commercialization” in universities
   • Encourage faculty tenure based on research activity
 Suggested partners
   •   RCIC
   •   World’s Best Technologies Showcase (March 23-25, 2009)
   •   Metroplex Technology Business Council
   •   Center for Innovation
 Defining the Challenge &
 Opportunity for Venture
     capital for Texas
VC investment in Texas $6 billion in 2000
Down 76% since 2002
VCs invested $7.4 billion in 990 deals in 2nd
quarter ’08 - Texas received $257 million;
VCs invested $1.513 billion in energy in 2nd
quarter ’08 - Texas received $35 million;
    Initiative: Focus on disruptive
   technologies that stimulate new
industries, new product concepts, new
            business models
   Metrics:
    • New firm starts
    • Productivity enhancements
    • Gazelle companies formed
   Activities
    • Identify and support research focused on and/or leading to disruptive
      technologies, to include efforts to secure research funds
    • Identify and support one or two “pilot projects” that represent the creation
      of regional capacity to drive commercialization of innovation that are
      inclusive of the region’s universities or incubators
  Suggested partners
    •   Center for Innovation at Arlington
    •   Metroplex Technology Business Council
    •   Regional Universities
    •   Chambers of Commerce
                 The Collaborative
To lead innovation and maintain a competitive edge in the global economy,
successful industry “clusters” build infrastructures or mechanisms that:
  Speed the movement of new ideas into the marketplace
  identify the expertise and resources that exist and their geographic proximity to one
  Allow for individuals to form partnerships and solve problems together

Academia is the nations’ greatest untapped resource and must become an
integral part of the marketplace. The expertise and resources within academia
are not well organized nor easily known. There are common resources within
academia which can be linked and organized for the marketplace to consume
and collaborate with for spurring innovation, solve problems or efficiently
  People with Know-how (expertise)
  Research Centers, Laboratories, Collaborative Groups
  Technologies and Patents
  Research Facilities and Equipment
            Goal 3
      Develop & Market our
        regional assets
In September 2002 the Dallas Citizens Council
released a comprehensive Benchmarking Analysis of
the Metroplex by SRI International which clearly
identified challenges, as well as resources available

In May of 2004, the UT System released the results of
The Washington Advisory Group’s assessment of
UT Arlington; this provides a “blueprint” for the
development of a comprehensive plan to achieve “Top
Tier” status
 Initiative: Market the north
Texas region’s assets relative
  to the innovation economy
   • Growth in technology companies
   • Growth in venture funding
   • Aggregate university R&D
   • Promote regional assets at national forums, events
   • Develop literature promoting the region’s assets
 Suggested partners
   • Center for Innovation at Arlington
   • Metroplex Technology Business Council
   • Chambers of Commerce
Initiative: Assess the needs of the region’s
     primary clusters in order to remain
      competitive relative to innovation
    • Defined needs of clusters (to be determined)
    • Secure grant funding to support regional planning
    • Work with region’s industry cluster leaders to identify needs
    • Utilize previous benchmarking (SRI, Washington Group, Texas
      Industry Cluster Report, etc) as starting point
    • Link universities to industry clusters, relative to research
    • Identify funding models that support the needs of faculty, facilities,
      and students
  Suggested partners
    • Regional Workforce Leadership Council
 Proposed roles for NTC
  partnership with RCIC In
Formation of Venture Funds
Engage Incubators (there are currently four)
Engage Angels (there are currently five – LA
has 160)
Engage VCs (there are a limited number)
Engage region in Worlds Best Technologies
Showcase (WBT), which represents an
opportunity to develop relationships with
more than 100 venture funds.
 Proposed next steps for the
   Innovation Task Force

Present interim task force report to NTC Executive
Committee (September 11) and Board (September 18) for
input and direction (Ken Barr)
Share NTC report with RCIC (David Chappell) September 23
Identify initial pilot project(s) (Wes Jurey, Don Hicks)
Aggregate regional R&D data (staff)
Develop key contact list of individuals and organizations to
engage in the region to inform of our work (Marcy Sherman)
Identify examples of “lost” technology (Ruben Esquivel)
It should be clearly understood by the Board that the
Commission’s engagement in any or all of the three identified
areas will require the Commission to secure additional funding
and staff resources

This could initially be accomplished through (1) one or more
grants to jump start the Commission’s involvement; (2) through
the North Texas Futures Fund, or (3) supported through a
special assessment to members of the Commission interested in

These are, however, only suggestion for start up funding; over
the long term, these needs will have to be addressed through the
Commission’s operating budget
     Telling the Story

Our success will also depend on our
ability to tell our story in a way that
engages regional leaders. To do so, we
propose to develop a ten year vision to
utilize in informing the region, in order
to ensure buy in and to cultivate support
     Our Opportunities

Energy technology
Renewable energy
Nano energy
Medical devices
Micro manufacturing
Nano fabrictaion
Clinical trials
      Our Challenge

U.S. is 4% of the world market,
consuming 26% of the available
Most of the planet’s natural resources,
people, and capital are somewhere else
Our competitive advantage has been and
must remain at the leading edge of
technology innovation
“ Change is debilitating when
done to you… but exhilarating
when led by you.”

 To succeed, we must effect a
        cultural change.
         “It’s how
Northern California became
 known as Silicon Valley.”

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