Jobs and Innovation Ecosystems - Connecticut Technology Council

Jobs and Innovation Ecosystems - Implementation within TECNA Regions -

June 1, 2011

Principal author: Jack Antonich President, Sales Leverage Group Support and consultation from: Matthew Nemerson President, Technology Councils of North America (TECNA) 2009-2011 President & CEO, Connecticut Technology Council

Jobs and Innovation Ecosystems – Implementation within TECNA Regions – June 1, 2011 © TECNA 2011

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Table of Contents

I. Introduction/Background - page 3 National Focus on programs aimed at creating jobs The White House – Office of Science & Technology Policy (OSTP) Economic Development Administration (EDA) State Science & Technology Institute (SSTI)

II. The Regional Innovation Ecosystem - page 4 Focus on Entrepreneurship, Innovation, Collaboration The Regional Innovation Acceleration Network (RIAN) Regions Assets Organizations Funding Metrics

III. TECNA – Member Highlights - page 18 Involvement in Innovation Ecosystems Mission Selected examples of successful situations:

IV. Developing a Model(s)/Template(s) - page 35

V. Observations/Best Practices/Summary - page 40 VI. Thank you to TECNA members who participated - page 43


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I. Introduction/Background There have been many calls for answers to the question: What can we, as a nation, do to satisfy the need to create jobs for our citizens and restore our economy to a robust condition? Until recently, there has not been clarity surrounding this issue, and countries, world-wide, have continued to grapple with trying to identify and implement the actions that must be taken to move forward. On January 31, 2011, the White House announced a new initiative called Startup America and an associated public/private effort named Startup America Partnership. The primary goal of these programs is to increase the number of new high-growth firms; the ones that spur economic growth, promote innovation, and create jobs. For detailed information, visit: www.StartupAmerica.org and www.StartupAmericaPartnership.org. Startup America puts the emphasis on three ingredients for success: Entrepreneurship, Innovation and Collaboration. In line with this direction, the U.S. Department of Commerce’ Economic Development Administration (EDA) has provided the State Science & Technology Institute (SSTI) in Columbus, OH, with a grant to work on describing and planning for implementation of a Regional Innovation Acceleration Network (RIAN) This project melds with the thrust of Startup America in that it is focused on determining the requirements for creating an environment that is conducive to entrepreneurial development, and supports the start-up and growth of companies that have the potential to develop innovative products and services and scale to a size that will produce a significant number of job opportunities. EDA’s mission is to assist underserved regions. There are approximately 350 identified regions in the United States. Of those, a small percentage of large regions have made significant strides toward building Innovation Ecosystems. The plan would be to learn from those that have demonstrated success and assemble information, guidelines and best practices; and possibly create models that would be useful to regions that have not yet developed in this area. John R. Fernadez, Assistant Secretary of Commerce for Economic Development, in testimony to the U.S. House of Representatives subcommittee on Commerce, Manufacturing and Trade 3/3/11, described the EDA’s Jobs and Innovation Partnership program as being designed to “increase the effectiveness of EDA’s investments by cultivating public/private partnerships and supporting strategies that capitalize on regional assets and collaboration to create jobs and encourage business expansion.” The EDA RIAN project, in support of EDA’s goals and objectives, is focused on two main areas: The Innovation Ecosystem and the Assets it comprises.


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II. The Regional Innovation Ecosystem The word ecosystem is an apt metaphor describing the inter-relationships and inter-dependencies of elements within an environment. When applied to an economy, it relates to all the people and organizations that add value in the economic system to produce income and wealth accumulation that ultimately contributes to the prosperity of all. In some regions it is referred to as an Innovation, Entrepreneurial, Business or Economic Ecosystem or possibly Tech-based economy or Tech Based Economic Development (TBED). The differences appear to reflect individual focus. For example, one area might want to emphasize the tech sector which is looked to for coming up with new ideas and commercialization prospects. In another area, the thinking and message may be more focused on attracting and encouraging entrepreneurs who they want to start and grow businesses. (see Figure 1.) Clusters, for instance, typically have an industry orientation such as Software/IT, Bioscience, Manufacturing, etc. but, in some instances, reference will be made to Innovation Clusters which may be more general, in nature. (see Figure 2.) For example, the Administration’s initiatives describe Regional Innovation Clusters (RICs) as “a geographically-bounded, active network of similar, synergistic or complementary organizations which leverage their region’s unique competitive strengths to create jobs and broader prosperity.” When innovation is viewed by the scientific or academic community, the emphasis would probably be on research and development, invention and scientific breakthrough. For instance a PowerPoint presentation given by Thomas W. Peterson AD, Engineering titled “Creating an Innovation Ecosystem” 10/29/2009 puts forth the idea of “NFS Centers as a Hub for Regional Innovation Clusters’” states that “University Research is key and that Faculty are involved along the innovation continuum, working with industry at all stages.” However, a business person’s view of Innovation might be very different. In 2006, in an IBM survey, 765 business leaders and CEOs were asked to identify the most significant sources of innovative ideas. Many business leaders said employees, business partners, and customers—and far fewer identified internal R&D, sales, or service units. (see Figure 4.) In any event, there are more similarities than differences in their objectives, and what is identified within a region as being the necessary ingredients to accomplish them. For simplicity sake, we will use the term “Innovation Ecosystem” in this report but it is intended to reflect most of what would be included in ecosystems, networks or clusters that are labeled differently.


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Figure 1. Innovation Ecosystem – Innovation Coalition

Regional Innovation Clusters Five Key Components to Consider When Defining Unique Regional Assets What you make, including your existing & prospective industry clusters What you do: your workforce skills & human capital base

ECONOMIC BASE

TALENT

ENTREPRENEURSHIP

INNOVATION & IDEAS

Your capacity to create companies wholly new or from existing firms

Your capacity to innovate and generate new ideas

Location, Infrastructure, Amenities, Factor Costs, Natural Resources

EDA

The basic conditions defining the economic milieu of the region

Figure 2. Regional Innovation Cluster - EDA

Figure 3.Babson Global – © 2009 2010 2011 - Daniel Isenbersg


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EMPLOYEES -

BUSINESS PARTNERS -

CUSTOMERS -

CONSULTANTS -

COMPETITORS -

ASSOCIATIONS, TRADE SHOWS INTERNET SALES & SERVICE UNITS INTERNAL R&D ACADEMIA 0%

10%

20%

30%

40%

Source: IBM "The Global CEO Study 2006: base on interviews with 765 CEOs and business leaders

Figure 4. Most significant sources of Innovative Ideas

Regions Ecosystems appear to develop within geographic areas that are defined by the proximity of the players. We refer to theses areas in this report as regions. Regions, in the context of this report, typically encompass a 25 miles radius of a hub city within a state or province (A few people, interviewed, indicated an influence of up to 50 miles). Even in smaller states, like Connecticut, where the Connecticut Technology Council operates state-wide, regions exist in Greater Hartford, Greater New Haven and Greater Stamford. Beyond that, smaller regions develop around other cities that are somewhat distant from the major areas. This seems to be pretty much dictated by convenience and unwillingness to travel beyond a certain distance in order to be associated with a particular region.


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Assets Like the word Innovation, the word asset can mean different things to different people. It is important to achieve a common understanding of what is included under this heading because it really speaks to what exists, and what needs to exist, in a functioning Innovation Ecosystem. Following are two examples of how assets are described: 1. SSTI has developed the following list for Innovation Asset Requirements “For an entrepreneurial ecosystem to flourish, the following assets must exist within a region:” Tangible Assets • Entrepreneurial Capacity • Business Acumen • Risk Capital • R&D Enterprise • Technology Commercialization • Human Capital • Physical Infrastructure • Industrial Base • Global Linkages Intangible Assets • “A Buzz” • Networking Opportunities • Culture that is Supportive of Innovation • Community Mindset Business Climate Assets • Government Policies • Quality of Life SSTI has created detailed descriptions of each of the above elements and has also developed metrics that can be used to determine the presence of an asset within a region. SSTI also prepared a “Resource Guide for TBED” for the EDA in which they say: “Based on the experience of tech-based economies like Silicon Valley, Research Triangle, and Route 128, it is generally acknowledged now that the following elements are required for a tech-based economy: • •

An intellectual infrastructure, i.e. universities and public or private research laboratories that generate new knowledge an discoveries Mechanisms for transferring knowledge from one individual to another or from one company to another


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• • • • • •

Physical infrastructure that includes high quality telecommunications systems an affordable high speed Internet connections Highly skilled technical workforce Sources of risk capital Quality of life, and Entrepreneurial culture”

2. A second description comes from Communitech, a technology organization in the Waterloo region of Ontario which describes itself as an Enabling Organization and Ecosystem Catalyst. They describe the core elements of an ecosystem which support a tech cluster as including the following five C’s: Culture • Risk-taking • Entrepreneurship Connectedness • Uber-networks • Partnerships – usual and unusual Capability • System-wide i.e. Tech talent and business talent Capital • The right kind at the right time Community • Identification with industry/ cluster as well as company So; assets appear to be a combination of organizations, resources and a supporting structure or foundation which is both tangible and intangible. As we’ll see, further on, one of the first steps in defining the Innovation Ecosystem, within a region, will be to inventory or “map” the existing assets. It is at this point, and beyond, that there must be a level of common language and detail that can be easily understood and agreed to by all stakeholders in the region. Another way to view the landscape is through the eyes of the entrepreneur. In simple terms, they want to know what resources and services are available, and who provides them. Keeping in mind the objective of supporting entrepreneurs who are thinking and acting innovatively to start and grow companies with high scaling potential, there must, first of all, be understanding of the kinds of resources and services that would be of most use to that contingent. Resources seem to be able to be grouped into six or so categories. This first level grouping usually reflects what the entrepreneur is looking for, in general, and provides the first step toward being able to funnel them to the specific resource or service for which they are searching. A breakdown of categories and some of the sub-offerings might be:


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NETWORKING: Events/Conferences: Assist Entrepreneurs in connecting CAPITAL: Provide direct funding to entrepreneurs Facilitate connection to funding providers REPRESENTATION: Perform lobbying activities on behalf of entrepreneurs Promote companies, industry, economic development Coordinate with other organizations that lobby KNOWLEDGE: Seminars Webinars Programs/Courses Web resources Newsletters, Magazines, Alerts, Announcements Coordinate with other organizations that supply SERVICES: Incubator (office space plus) CEO in Residence Mentors/Coaches/Counselors Peer-to-Peer Groups Website services (jobs, internships, directories, calendar, etc.) Coordinate with other organizations that supply SUPPORT: Promote Innovation & Commercialization Publicity and Recognition Ecosystem Development Developing / Maintaining Culture of ……………… Workforce development, attraction & retention


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Organizations Organizations, of course, already exist in every area and they came into existence because of some need that was identified, and a decision that was made to do something that would satisfy that need. Some have a narrow focus and others a broader one. Some provide a single service while others work more expansively. Using a list of assets / resources / services previously described, it now falls to identifying the organizations that are in a position to supply some, most or all of them. Following are descriptions and examples of types of organizations that can be considered.

Venture Development Organization (VDO) SSTI uses this description of what has become an increasingly used term to describe the type of organization that is needed to achieve stated goals. It states: “A VDO is a public or nonprofit organization that contributes to economic development by providing a portfolio of services, including:

assisting in the creation of high-growth companies; providing expert business assistance to those companies; facilitating or making direct financial investments in companies; and, speeding the commercialization of technology.”

“A high-performing VDO will draw on the existing strengths of the region’s innovation system and develop programs and initiatives targeted to overcome the system’s weaknesses.”

Enabling Organizations Communitech provides the following description. “An enabling organization is one that provides leadership to a specific industry, effectively bridging, bonding and directing multiple partners in delivering toward a common agenda. They assume responsibility for being ahead of the curve, taking on issues and opportunities at an industry level. Different than old-style associations, enabling organizations think deeply about industry and company needs, and apply considerable strategy and intentionality in engineering outcomes that deliver robust tech clusters, resulting in more jobs, more companies and more wealth. They’re key players in the business ecosystem.” “There’s no one model that defines an enabling organization. They can be: • • • • •

Business Incubators Economic Development Agencies Trade Associations Off-shoots of Universities Tech Councils”


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Other Organizational examples: - JumpStart, Inc.- www.jumpstartinc.org Located in Cleveland, JumpStart is part of Northeast Ohio’s entrepreneurial and innovation ecosystem and they state that: “Supporting entrepreneurs with high growth companies in Northeast Ohio by providing intensive technical assistance and investment dollars has been, and continues to be, at the core of our mission.” Their aim is to “transform the economic impact of entrepreneurial ventures and the ecosystems supporting their growth.” There are three ways in which they do this. “First, JumpStart provides intensive entrepreneurial development assistance to Northeast Ohio entrepreneurs leading high potential, early-stage companies.” “Those services are delivered by former successful entrepreneurs (called Venture Partners and Entrepreneurs-in-Residence) who work one-on-one with entrepreneurs to establish and achieve valuecreating milestones of growth, such as raising capital, generating revenues, testing the commercial viability of their product or service, and moving the product or service into the market.” •

JumpStart Ventures guides entrepreneurs with highpotential businesses down the path toward wealth creation by providing seed capital, experienced advisors, and a network of vital resources. JumpStart Ventures invests in innovative, early-stage companies that are positioned to excel in high opportunity markets, focusing on entrepreneurs with breakthrough, marketdriven technologies likely to create high growth companies.

•

JumpStart Inclusion Advisors guides high impact minority and women entrepreneurs seeking to raise capital from private investors in order to grow their companies into larger scale national and international firms. It also works with entrepreneurs leading high impact companies located in the urban centers of Northeast Ohio.


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“Second, JumpStart supports the growth and strengthening of Northeast Ohio’s innovation and entrepreneurial ecosystem, which supports entrepreneurial ventures. An ecosystem is all the elements necessary for the creation of a thriving entrepreneurial economy. There’s no one element and no one organization that supports entrepreneurship on its own. JumpStart advocates for the entrepreneurial economy to secure a continuous stream of resources for entrepreneurs, engaging and acting with federal, state, and community policy makers, civic leaders, and leaders in the venture capital and angel investing communities.” “Often the resources go to the entrepreneurs directly or are deployed by other non-profit economic development organizations or investors. Examples of this work include: •

• • •

Launching and managing the JumpStart Entrepreneurial Network, a network putting entrepreneurs front and center in Northeast Ohio by creating a collaboration between Ohio Third Frontier-funded entrepreneurial support organizations. Leading the creation of North Coast Angel Fund, Northeast Ohio’s first managed angel fund which has invested in over 17 companies. Leading the Venture Capital Advisory Task Force to further entrepreneurial investment and success in the region. Securing over $18 million for the region’s entrepreneurs through successful funding proposals to Ohio Third Frontier.”

JumpStart Entrepreneurial Network

“The JumpStart Entrepreneurial Network is a connected group of Northeast Ohio entrepreneurial support organizations, all funded by Ohio Third Frontier. The Network provides entrepreneurs with one easy point of entry – www.jumpstartnetwork.orghttp://www.jumpstartnetwork.org/ – to connect with the right resources to start. Once in the Network, entrepreneurs continue to be connected to the right at the right time, all to grow their business.” “The Network members include pre-seed and seed funds, business advisors, accelerators, and incubators. Network members include:”


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JumpStart Entrepreneurial Network Ray Leach, JumpStart’s CEO has recently announced “JumpStart America”, a 501c3, which is an initiative of the Startup America Partnership. JumpStart America’s activities will be aimed at “raising and aggregating financial resources to further the creation and development of entrepreneurial ecosystems, and serving as a national best practice in venture development …”

- TechStars Techstars is a mentorship-driven seed stage investment program run in four locations: Boston, Boulder, New York and Seattle. Programs are three months long and about ten companies participate in each one. They provide up to $18,000 ($6,000 x 3 founders) in seed funding for the three months spent at a startup accelerator. The program stresses coaching, mentoring and preparation for raising capital from angels and venture capitalists. Techstars wants to be viewed as a co-founder and takes an equity position in the startup. Recently, TechStars has joined Startup America Partnership and announced the creation of “TechStars Network” which includes 15 independently owned and operated regional organizations that seek to replicate the TechStars model. “The TechStars Network will provide significantly expanded best practice sharing, networking opportunities, training and ongoing support for members of this regionally diverse network, from Miami to Seattle and from Nashville to New Orleans. Over the next three years, the TechStars Network will ensure that 5,000 successful and experienced entrepreneurs and investors will mentor and support 6,000 promising young entrepreneurs, increasing their success rate tenfold and creating 25,000 new jobs by 2015, while creating a sustainable engine for growing these figures over time.”


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- Y Combinator Since 2005, Y Combinator, Mountain View, CA provides a similar offering of seed funding and mentoring as TechStars does. Startups spend 3 months in Silicon Valley refining their business plans and preparing to pitch to investors. There is an alumni network which support continuation of support beyond the end of the program

- Mass Challenge “Mass Challenge is a non-profit organization, located in Boston, that connects early stage entrepreneurs to the resources they need to launch high-growth, high-impact businesses immediately.” Primary activities included running an annual global startup competition and an accelerator program which focuses on organizing and documenting key resources, and organizing training and networking events. In January, 2011, it was announced that Mass Challenge would be a partner in the new Startup America Partnership. “As a partner organization, Mass Challenge is engaged in a coordinated public/private effort that brings together an alliance of the country’s most innovative entrepreneurs, corporations, universities, foundations, and other leaders, working in concert with a wide range of federal agencies to dramatically increase the prevalence and success of American entrepreneurs.” Other Stakeholder Organization Categories

• • • • • • • • • • • • • • •

Colleges and Universities State Government - Executive/Eco. Dev. Agencies Venture Capital Angel Investor Groups Lending Institutions Foundations Chambers of Commerce Local Economic Development Entities Incubators/Accelerators Federal - SBA, SBDC, WBDC, SCORE Trade Organizations Service Providers Corporations Entrepreneurs & Small-business Executives Media


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Organizations in the same category (Chambers of Commerce, Universities) should not be treated alike. In different regions they can operate in completely different ways. Some Chambers run incubators; others do not. Some Universities provide direct funding; others do not. This relates to the asset mapping step where there needs to be an understanding of what resources/services are being searched for, and which of those resources/services might be supplied by a particular organization. It is unlikely that only one organization in a region will supply all necessary elements.

Funding Most Tech Councils generate revenue from a combination of sponsors, event proceeds membership dues and grants. The amount in each of these categories varies widely and also does the presence or absence of grant money. Without having much detail for support, it appears that the degree of implementation of Innovation Ecosystems has been in direct relation to funding from public sources at the federal, state, provincial, regional and local levels. Canada appears to have taken the lead in this area based on their accomplishments across the country. In the United States, there is strong interest by the Administration and the EDA to have economic accelerators like Innovation Ecosystems implemented throughout the country. Budget battles will most likely determine the extent of funding that will become available, but it is expected that some significant amount of money will be made available for this purpose.

Metrics The basic driver for implementation of Innovation Ecosystems is job creation and so it follows that is the bottom line of any program. However, because programs such as these do not produce results overnight, most programs track progress by measuring the number of new start-ups and reporting on the activities and actions surrounding the support that has been provided to them.

Following are two examples of reported results along with some stated goals going forward.


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StartUp Tulsa “A publicly and privately funded, entrepreneurial, economy-building endeavor of the Tulsa Economic Development Commission who’s mission is to accelerate the growth of a culture of startups generating locally grown jobs, enhancing and expanding Tulsa’s entrepreneurial economy.” Five-year goal: Generate 226 new operating startups, resulting in 949 new locally grown jobs with average salaries of $46,043. Entrepreneurial Ecosystem by the numbers 2007-2010 – (Results) • • • • • •

Startups inspired to participate……..615 Startups operating…….64 Jobs created…..269 Amount added to Tulsa’s annual payroll…..$12,376,358 Average Salary…..$46,043 Money raised…..$14,875,000

Measuring success: (Goals) • • • • •

Add $43.7 million to Tulsa’s annual payroll. Inspire 2,200 new entrepreneurial startups. Support the creation of six new entrepreneurial programs. Grow 1,518 indirect jobs. Grow Tulsa Global Entrepreneurship Week participation by 35 percent.

Information: www.startuptulsa.com Waterloo Region Tech Ecosystem Snapshot – 2009

• • • • • • • •

$18B tech sector revenue $84 million deal flow in 2009 alone 711 tech firms employing 30,000 people $350M worth of private sector R&D conducted in the Region 631 patents granted per million (3x national average) 200+ tech start-ups benefitted from more than 7,000 hours of venture services offered free of charge by Communitech and the Accelerator Centre $300M venture and angel financing raised funds in 14 months 2,000 tech jobs currently available; tech sector has experienced 7% employment growth in five years


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Waterloo Region Tech Digital Media and ICT

#firms % 356

50

Mobile

71

10

Software

92

13

Internet Software

57

8

Other (mfg, telecom, IT, etc.)

71

10

Clean Tech

21

3

Life/Health Science

43

6

711

100

Total


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III. Technology Councils of North America (TECNA) – Member Highlights What are TECNA members doing in their regions? This report is the result of research on technology councils in regions throughout the United States and Canada, and interviews with 39 tech council CEOs and Executive Directors. Following is information gathered from the interviews and from Tech Council websites which reflect what a selected number of Technology Councils have already been doing relative to the creation and nurturing of Innovation Ecosystems.

The Technology Councils of North America demonstrate broad coverage across the U.S. and Canada as reflected in the following maps. This is not only meaningful in terms of the number of regions but also in the fact that they are located in areas of greater population density and represent a large number of the innovative technology companies that are being relied upon to achieve success, grow, and provide the jobs of the future.

WA MT

ME

ND MN

VT NH

OR WI

ID

SD

NY

MI

MA RI

WY PA NV

IA

NE

NJ

UT CO

IL

OH

IN

DE WV

CA

CT

KS

MO

TN

AZ NM

MD VA

KY NC

OK AR

SC GA

MS AL LA TX

FL

Technology Council Regions in United States TECNA CEO Retreat Austin, TX 4/10/11 – 4/12/11


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Technology Council Regions . in Canada . TECNA CEO Retreat

Austin, TX

4/10/11 – 4/12/11

TECNA Member Highlights Communitech – Waterloo Region, Ontario, CA

www.communitech.ca

Communitech is truly representative of an organization that has embraced the idea and concept of the regional ecosystem with a focus on delivery of needed resources to innovators and entrepreneurs through collaborative efforts of regional partners. They have gone beyond successful implementation and have already taken steps to share their experiences in a way that can be useful to other organizations desiring to create a similar environment in their regions. “In brief, Communictech has evolved. From our early days as a trade association representing a handful of tech companies, we’ve become an enabling organization that is a key driver of dynamic growth and success for tech companies in Waterloo Region.” “In 2010, Comminitech is: A CATALYST for technology-focused economic development in Waterloo Region, VESTED in every organization with potential to impact the success of our companies. We know what they do and how they help, RESPONSIBLE for community awareness of tech sector needs, and tech sector involvement in community needs, FIRMLY COMMITTED to the needs of tech companies at all levels, and to continually improving our capacity to deliver.”


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Communitech, in 2010, hosted a conference called “Enable U. – Get Your Tech Ecosystem MBA “, covering what a successful ecosystem looks like and what it takes to build enabling organizations. In addition, a follow-on, 34 page report titled “Building Better Ecosystems: a handbook for tech cluster growth and success” was released; describing, in detail, the steps required to understand the composition of an ecosystem, how to go about building an enabling organization, and how to identify and engage partners to work in a collaborative manner. The PowerPoint presentation slides used at the conference and the handbook can both be accessed through the online community at www.technologycouncils.org.

Enabling organizations

Entrepreneur The Company

Government

Venture Services/EiRs

Knowledge Creation

Angels

Financial Institutions

550 Tech Firms

Venture Capital Firms

Public Listing Agencies

Financing Expertise Professional Services Firms

Entrepreneurial Culture TECNA CEO Retreat

Austin, TX

4/10/11 – 4/12/11

Waterloo Region Ecosystem Communitech is proud of its Accelerator Centre which is home to 25 start-ups who are able to take advantage of a team of mentors and advisors, and be part of an innovation community. Likewise, another popular program has created, and manages 24 different peer groups based on special interest, job function and industry. Communitech is also a member of the Ontario Network of Excellence (ONE). This is a network of 19 regional not-for-profit organizations throughout Ontario, which provide services similar to those described above. More information can be found at www.oneinnovation.ca.


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Automation Alley, Troy, MI

www.automationalley.com

“Automation Alley exists to grow the innovation cluster of Southeast Michigan. We create business development opportunities and results for our members and stakeholders who share our values. Our vision is that Southeast Michigan will be globally acknowledged as the leading technology and innovation region in the United States by 2020.” “Automation Alley brings together businesses, educators and government to help entrepreneurs accelerate the commercialization of new technologies and services. With our support and resources, ideas are turned into usable, marketable technology solutions. To date, the Alley has invested more than $6 million in 29 technology-driven companies across Southeast Michigan. Spurred by the rapid growth of Automation Alley, the business acceleration program was conceived as a nucleus for technology commercialization activities. It draws on the region’s prolific state-of-the-art resources, high-tech innovation, highly educated workforce and outstanding academic, business and entrepreneurial talent. Serving a wide variety of clients and customers: • • • • •

Innovators and entrepreneurs seeking to turn ideas into profits Businesses and government organizations seeking new technology solutions High tech start-ups Investors interested in new enterprises University research facilities and technology transfer offices

In addition, Automation Alley provides a variety of services designed to help Southeast Michigan's entrepreneur succeed: • • • • •

Business coaching to help companies succeed Entrepreneurial resources that offer a variety of local partners and resources Seed funding for local technology start-up companies Entrepreneur's Initiative of Southeast Michigan (EISEM), a series of programs that works to highlight regional entrepreneurs and their businesses EntrepreNews (a monthly entrepreneur-focused eNewsletter)”

In June 2010, the New Economy Initiative for Southeast Michigan, a philanthropic organization comprising ten national and local foundations, awarded a $3 million grant to a newly formed Business Accelerator Network for Southeast Michigan. Automation Alley is one of four key business accelerators which will work collaboratively to focus on workforce and business issues. Within the first six months after founding the Business Accelerator Network, the Kauffman Foundation completed a mapping of the existing assets that exist in the network in the areas of education, coaching, funding, university relationships and use of volunteers. They found that the organizations supply the services and support that are necessary to sustain a strong entrepreneurial ecosystem. Now, by working collaboratively and leveraging their capabilities through the network, they will be able to extend the assistance to entrepreneurs that will help them grow their businesses faster.


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TechColumbus, Columbus, OH

www.techcolumbus.org

“TechColumbus accelerates the growth of the innovation economy by providing vital resources and assistance to people and enterprises that depend on technology to achieve their business goals.” “TechColumbus is the catalyst for technology-driven economic growth in Central Ohio. We work to create new companies, strengthen existing businesses, open doors to technology resources, help promote and attract the next generation of high-wage/high-growth industry sectors, support the attraction and retention of talented people, and promote opportunity for all citizens. Within a decade, Central Ohio will be widely recognized as one of the premier technology-enriched communities in the world and a leader in tech-related business formation, expansion, and attraction. Growth drives everything we do. We help start-ups grow their concepts, their maturity, their abilities, and their ambitions. We help established companies grow their business, their capabilities, their connections, and their knowledge. And we help individuals grow their careers, their expertise, their networks, and their confidence. Every day, TechColumbus provides the people, information, and funding critical to a thriving innovation economy. Our ultimate goal is to accelerate business growth, job creation, and prosperity in the 15-county region of Central Ohio. TechColumbus runs a world-class technology business incubator and works with entrepreneurs and investors to develop and launch technology start-up companies, as well as grow young companies that will provide the jobs of tomorrow. Connecting the region's world-class tech assets They are the envy of most U.S. cities: OSU - a top 10 research university, Battelle, Columbus Children's Research Institute, OhioHealth, 15 Fortune 1,000 companies, thousands of small and large tech-based and tech-enabled companies, and a large, growing young professional community. TechColumbus facilitates collaboration among these tech assets and provides the resources and assistance needed to accelerate business and overall economic progress. Leading regional initiatives TechColumbus advocates for major regional initiatives that strengthen the tech economy. One example is talent development and attraction -- many Central Ohio companies (large and small) are growing rapidly and can’t find the technical talent they need to fill existing openings. Working with the Chamber and others, TechColumbus provides programming and services that develop and retain the current workforce and help attract young professionals to the community to fill essential roles in our economy. The TechStart program is the result of millions of dollars invested in the central Ohio innovation economy by the Ohio Entrepreneurial Signature Program, the Third Frontier Project, and other partners. From world class incubator and office space, to access to federal grants, we provide additional services and resources that help central Ohio start ups succeed.


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We give innovative companies what they need to grow: start-up mentoring and consulting, business plan development, a strong pathway to capital investment, marketing assistance, and affordable, high-end office, meeting, and lab facilities for our incubator clients. TechStart’s commercialization experts help evolve innovations into real products in the fields of Information Technology, Bioscience, and Advanced Materials. Experienced guidance is just as important as funding. So we strengthen emerging technology leaders with ongoing mentoring, resident programs, and commercialization efforts. Access to capital. It’s what every tech startup needs to grow — and it’s a major component of what we provide, from public and private investment sources.”

SIRTI, Spokane, WA

www.sirti.org

“Sirti is a Washington State economic development agency that accelerates the development and growth of innovative technology companies in thehttp://www.sirti.org/Portals/0/Images/area-servedmap.jpg Inland Northwest — especially in Eastern Washington. Through a collaboration of business, higher education and government, Sirti fosters an environment where entrepreneurs and small start-up companies can flourish and high-growth companies can focus on their efficient growth.” “Sirti’s roots are in the transformative thinking that changed the region’s business climate from one that was natural resource driven to one that is now technology-based. Today our region’s community leaders and stakeholders enthusiastically embrace and promote this evolution in regional economic goals and achievements. This spirit of cooperation between government and civic organizations, colleges and universities, and leading technology-based businesses results in a creative business environment where Sirti clients learn from experts, contribute innovative ideas, and with hard work, inspired coaching and collective support, grow and prosper”

“


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Arizona Technology Council, Phoenix / Tucson, AZ

www.aztechcouncil.org

The Arizona Technology Council acts in a number of different areas to promote connections and interactions between members of the innovation community in the state. This manifests itself in their support of the Arizona Science and Engineering Fair, the Arizona Science Bowl, the www.GetSTEM-az.com website for collaboration of industry and educators and support for “Project Lead the Way” middle and high school engineering and bio-medical science programs. The 2012 Arizona Science & Technology Festival, a two-week event, is a grassroots public-private collaboration of the Tech Council, Arizona State University, and dozens of organizations across industry, business, education, philanthropy, and the community. Its aim is to expand science, technology and innovation, build local capacity, inspire a competitive workforce and draw world-leading talent to Arizona. Addressing the importance of jobs and economic development, a comprehensive technology workforce study was completed. The purpose was to assess the balance, past and future, between supply and demand for technology workers in Arizona and the likelihood that there will be a shortage of technical workers over the next decade. The information will be valuable in determining what workforce training and development will be needed to keep pace with the needs of industry. Actively advancing technology throughout the state, the Arizona Technology Council provides resources and business development opportunities to its members through: • •

Public policy initiatives that promote the technology industry's interests to elected officials Educational forums, networking opportunities and company-showcase events that connect and educate the technology community

Innovation has been identified as one of the key drivers in job creation and economic development. So, what does it mean to be innovative and how does one go about it? The answer might come from the new Arizona Innovation Institute. This initiative of the Arizona Technology Council Foundation, offers groundbreaking training in creativity and decision-making methodologies to Arizona businesses and organizations, large and small alike. Previously, this training, which has proved to increase profits, drive innovation and create jobs, was only available to major organizations. The Institute's classes and on-site sessions address innovation by developing new ways to discover important and emerging customer needs, processes for creating business strategy, and methods for creating breakthrough solutions to existing business challenges. Participants also benefit from skill training for new product and service development. The Institute, in collaboration with the renowned Dr. George Land and Dr. Beth Jarman’s FarSight Group, Inc., is now offering Arizonans this proprietary, systematic approach for organizational transformation and innovation, which has boosted the bottom line for major organizations throughout the world. And, on the heels of a successful inaugural trade delegation to China, the Arizona Technology Council has teamed with the Arizona Chamber of Commerce and Industry to provide another exploratory mission to China for Arizona business leaders in 2011. Jobs and Innovation Ecosystems – Implementation within TECNA Regions – June 1, 2011 © TECNA 2011

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i2E, Oklahoma City

www.i2E.org

“i2E, Inc. is a private not-for-profit corporation focused on growing technology-based companies in Oklahoma and making a positive impact on the state’s economy. i2E’s stated mission is “Home grown economic development by fostering the birth and nurturing the growth of advanced technology companies in Oklahoma.” “We achieve our mission by working directly with entrepreneurs, researchers and companies to help them commercialize their technologies, launch and grow new businesses and access needed capital. Our clients like the fact that our staff consists of experienced entrepreneurs and investors who have walked in their shoes. Busy entrepreneurs tell us that our model works for them because we not only provide high quality business advice, capital and entrepreneurial development, we act as a portal to other private and public resources — making it easier to access the right information, expertise and investment at the right time. At i2E, we are not only in business to help entrepreneurs and investors turn ideas into successful companies; we are in business to grow Oklahoma’s economy. Our clients provide well-paying jobs, bring new wealth into the state, and attract top tier talent. We are proud of our results, and our strong track record has made us a national model for other states and regions. Each year, we serve more than 200 entrepreneurs, inventors and companies representing biotechnology and life sciences, IT and software, energy, advanced materials and manufacturing, and more. Our clients are in all stages of business development; ranging from proof of concept and seed stages to start-up and early stage growth. Some are producing sales revenues and others are still in pre-revenue stages. And, our clients are found in all regions of our state — both urban and rural. Our services act as a catalyst for Oklahoma’s economy. While you can find more details in our full Impact Reports, here are a few highlights of how we leverage our resources into economic results:

http://www.i2e.org/library/2009-annual-report/ - Growing Jobs: While Oklahoma’s job base has grown less than 5 percent each year since 2003, our clients added jobs to their payroll at a rate more than 20% each year. - Fostering Livable Wages: Average wages of client companies are more than 60% higher than the state average wage.


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- Creating New Wealth: While less than half our clients are typically in revenue producing stages, those that do produce report more than 90% of revenues from markets out of state – which means new wealth in being brought into the state. - Expanding Access to Capital: Between 40-50% of our clients raise equity capital. Through the Technology Business Finance Program (TBFP) and the Oklahoma Seed Capital Fund (OSCF), companies have used $26,553,345 to attract $238,603,738 in private investment. That’s new investment into our state’s economy. - Leveraging Private Investment: The TBFP has been in operation long enough to calculate its return on public investment. To date, over $9.5 million has been loaned to 100 Oklahoma-based companies. These companies have used TBFP funds to leverage more than $221.5 million in private sector capital—that’s $23.32 of private capital for every TBFP (public) dollar invested.

Illinois Technology Association, Chicago, IL

www.illinoistech.org

“The Illinois Technology Association (ITA) is a driving force behind the growth of Illinois' vibrant technology industry. ITA’s agenda is simple – grow technology companies by fostering deep collaboration among the diverse industry all in support of developing the ecosystem necessary to foster the success of member companies. All the while, tirelessly advocating for the industry to raise the awareness of Illinois as a leading technology community. Members of ITA benefit from unlimited access to strategic development programs, services, resources and events that support all members of their team. ITA leverages peer-to-peer collaboration and one-onone mentoring with leaders from the technology industry to drive companies forward. In addition, ITA’s education, events, networking, access to facilities at TechNexus and much more are all focused on growing members businesses. Simply put, collaboration is working together. And we all know two heads are better than one! ITA programs and events bring together a network of experts and peers to address the latest evolutions in the industry.

http://www.technexus.org/Developed in partnership with the Illinois Technology Association (ITA), TechNexus is a 22K sq ft clubhouse for the Illinois technology community that is part incubator, part conference and training center and part co-working space. Located in the Loop across from the Willis (Sears) Tower, over 2000 individuals come through the TechNexus each month in one capacity or another. TechNexus is the physical embodiment of the Illinois technology community. ITA members can drop in and use the space for co-working or hotdesks at no charge and can rent the office and conference space at discounted rates.” Jobs and Innovation Ecosystems – Implementation within TECNA Regions – June 1, 2011 © TECNA 2011

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Wisconsin Technology Council, Madison, WI

www.wisconsintechnologycouncil.org

The Wisconsin Technology Council is the science and technology advisor to the Governor and the Legislature. Launched in 2001, the Tech Council was created by a bipartisan act of the governor and the Legislature. It is an independent, non-profit and non-partisan board with members from tech companies, venture capital firms, all levels of education, research institutions, government and law. The Tech Council has three main functions: 1) It provides policy guidance to lawmakers, the governor, state agencies and other institutions in Wisconsin. It has most notably done so through “Vision 2020: A Model Wisconsin Economy” and white papers that have served as background for policymakers. 2) It serves an important in-state networking role through Wisconsin Innovation Network (WIN), a community-based organization dedicated to fostering innovation and entrepreneurship. It also works with other statewide and local affiliates. And it provides out-of-state networking through its "I-Q Corridor" activities and other events. The Wisconsin Innovation Network (WIN) is The Tech Council's membership subsidiary - a communitybased economic development organization dedicated to fostering innovation and entrepreneurship. In association with the Tech Council, WIN programs focus on the needs and challenges faced by new and growing technology-based businesses in Wisconsin. WIN is the Wisconsin Innovation Network, the membership subsidiary for the Wisconsin Technology Council. There are WIN chapters in Chippewa Valley, Lake Superior Region-Ashland, Madison, Milwaukee, Northeast Wisconsin and Central Wisconsin. WIN exists to serve as an educational and networking resource for entrepreneurs and people who work for high-growth firms, large and small. It can provide one more link the global economy, which is where Wisconsin must compete in order to thrive in the 21st century. Wisconsin will not get ahead by competing with the Twin Cities or Chicago – it will get ahead by producing globally competitive goods and services, and by working as part of a larger region.”

Tech South East, Moncton, NB

www.techsoutheast.ca

Tech South East is an enabling organization working with the ICT and health and life science sectors to accelerate the growth of innovation-based entrepreneurship and economic development in South East New Brunswick.


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“Tech South East is an innovation intermediary focused on South East New Brunswick’s technology and health science sectors with the goal of aligning companies, assets and resources to work together on advancement and growth. As a catalyst and facilitator, Tech South East brings together industry, government, academia and the financial community to develop and implement the region’s innovation acceleration strategy. In working with its partners, TSE is the leading advocate for the needs, interests and opportunities of the stakeholders in the region’s innovation system.” Strategic Partners At the heart of successful innovation systems and cluster initiatives around the world are the business, institutional and public sector leaders who understand the importance of harnessing their strengths and energies toward the realization of a common vision. Collaboration and cooperation were central to the development of Tech South East and are the key drivers in our efforts to accelerate the growth of innovation-based entrepreneurship and economic development in South Eastern New Brunswick. Together we create a network of support and services for our technology and health sciences entrepreneurs and develop better ways to drive the growth of tomorrow’s business leaders. Initial efforts to foster accelerated Technology-Based Economic Growth and Entrepreneurship in Greater Moncton go back to December 2006 with the release of a strategy developed in partnership with the IC2 Institute of the University of Texas at Austin. Two identified keys to success were: A common vision and action plan to mobilize key local partnerships and collaboration and cooperation among Greater Moncton’s business, academic and government sectors. In March of 2007, a mission team traveled to Oulu, Finland; a city that has “… experienced exceptionally strong technological transformation over the past thirty years from large-scale industries that use natural resources to knowledge-based industries.” It was recommended to be used as a benchmark city and model for success for Moncton. “The team came away with the overwhelming impression that the power in the Oulu success story is attributable to the high degree of coordination and collaboration among the many players in the Oulu innovation system.” This became an overarching objective in the Moncton strategy as stated in the IC2 report: “…the importance of collaboration and cooperation among Greater Moncton business, academic and government sectors. The effectiveness of these partnering activities will largely determine the region’s ability to create high-value jobs, educate, attract, and retain talent, an to accelerate economic growth while sustaining a high quality of life for all citizens.”1

1. “Accelerating technology-based economic growth and entrepreneurship in Greater Moncton” June 2007

Moncton Technology Planning Group –


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Washington Tech. Industry Assn., Seattle, WA

www.washingtontechnology.org

“Washington Technology Industry Association is the largest state-wide association of technology companies and executives in the world. With more than 1,100 member companies representing more than 125,000 technology sector employees in Washington State, Washington Technology Industry Association is a catalyst for setting new industry directions, sharing expertise, fostering collaboration, delivering key business services, and advancing the economic value and global impact of technology companies doing business in Washington. By joining Washington Technology Industry Association, members are connected with a powerful group of technology http://www.washingtontechnology.org/documents/PSBJ_WA_Best_Workplaces.pdfcompanies and leaders from around the state. Through face-to-face events and online communities, Washington Technology Industry Association creates an environment that enables you to effectively network with peers, exchange best practices, gain new business insights and achieve professional goals. Washington Technology Industry Association is a technology trade association that represents industryleading technology companies and leaders who share a singular mission: to help Washington state technology innovators succeed. Members recognize that a vibrant technology industry in Washington is critical to the economic success of our entire region.

As a statewide association, the Washington Technology Industry Association is dedicated to promoting technology leadership and growth throughout Washington. The WTIA supports regional communities that contribute to the economic growth and vitality of technology centers across the state. WTIA Regional Communities are either volunteer driven or an affiliated organization that commit to organizing events of interest to the local technology and business community. Regional Communities promote WTIA’s business services, can tap into WTIA’s advocacy agenda and help grow membership in its geographic area. • • • •

Northwest Regional Community Olympic Regional Community Southeast Regional Community Inland NW Regional Community”

The Puget Sound area has a reputation for housing recognizable high-tech companies like Boeing, Microsoft, McCaw Cellular, Aldus and Amazon to name a few. In 2007, research on the part of a Virginia Tech project that examines the emergence of high-tech regions, and data collected through an online survey of technology firms, resulted in WTIA creating a poster titled “Puget Sound Tech Universe, A visual history of the technology industry”. In it can be see a graphical representation of the genealogy of 711 firms and institutions in the Puget Sound region. In addition to the major companies and their spinoffs, the University of Washington (1861), is prominent in its contribution to the creation of new companies. Jobs and Innovation Ecosystems – Implementation within TECNA Regions – June 1, 2011 © TECNA 2011

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A Visual History of the Technology Industry in Puget Sound

Idaho Technology Council, Boise, ID

www.idahotechcouncil.org

“The Idaho Technology Council exists to connect, inform and promote the technology companies in Idaho and is dedicated to foster the growth of technology companies in the state, primarily in the areas of information technology, agriscience, and energy. The ITC provides a valuable forum for industry, research, educators, investors, and government throughout the state. The ITC advocates for creating a strong, innovative technology ecosystem and a high quality, high paid workforce. IDAHO INNOVATION ECOSYSTEM Provide a valuable networking resource for industry executives, potential partners, academic leaders, investors, government and customers. The Idaho Technology Council will focus on developing the Idaho Innovation Ecosystem including: 1. 2. 3. 4. 5. 6.

Industry Capital Talented workforce Research Technology Commercialization Government


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Technology Association of Georgia (TAG), Atlanta, GA

www.tagonline.org

TAG educates, promotes, and unites Georgia’s technology community to foster an innovative and connected marketplace that stimulates and enhances a tech-based economy. “When we first started out, TAG was focused on connecting the technology community in Georgia. We’ve grown up and, with more than 13,000 members and growing, we have expanded our focus to also include educational programming, government relations and general promotion of Georgia as a top state for technology.” TAG enhances Georgia’s technology ecosystem by supporting technology companies at all stages of growth, from concept to maturity, but it is particularly proud of its efforts to support and bring together the entrepreneurial community. Concept: We support entrepreneurial initiatives through programs like the GRA/TAG Business Launch Competition, Venture Atlanta Conference and through work with our partners like Georgia Tech and the Atlanta Technology Development Center (ATDC) to ensure that early stage companies have the access to information, people and venture capital they need to get off the ground.

•

GRA/TAG Business Launch Competition: Since it was founded in 2006, the GRA/TAG Business Launch Competition has become one of largest competitions of its kind in the United States, providing $450,000 in cash and over $1,000,000 in donated services, and has helped more than 130 young entrepreneurs connect with successful entrepreneurs and investors in mentoring relationships.


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•

Venture Atlanta: Venture Atlanta, Georgia’s technology innovation event, is where Georgia’s top technology innovators meet the country’s top-tier investors. As the state’s largest investor showcase, Venture Atlanta connects Georgia’s entrepreneurs with venture capitalists, bankers, angel investors and others who can help them raise the capital they need to grow their businesses. The annual non-profit event is a collaboration of three leading Georgia business organizations: Atlanta CEO Council, Metro Atlanta Chamber and the Technology Association of Georgia (TAG).

•

Community and Government Involvement: TAG has also been instrumental in helping lead the charge for a number of initiatives geared towards raising awareness and building community and government support for the entrepreneurial community. Those initiatives include helping bring Startup America (an Obama administration program focused on improving the business environment for entrepreneurs) to Atlanta, helping the community build a calendar of resources and events for entrepreneurs and driving a legislative agenda that includes incentives like an angel tax credit.

Growth: We help companies continue to blossom through our Economic Gardening program. By supporting second-stage companies, we help them take the steps necessary to reach full maturity which, in turn, supports the development of our state’s economy. Through the Economic Gardening program, TAG and its partners provide growing companies with resources like market research and connections with the people, businesses and organizations that can take them to the next level.

Maturity: We support the continued success of established businesses and corporations by helping them connect with talent, potential customers and other companies that can support or even eventually become a part of the larger companies. •

Where Georgia Leads: Part of our mission is to promote Georgia’s technology prowess. TAG is embarking on a program to educate Georgians and technology stakeholders, aficionados and media nationwide about the innovation, companies and talent clustered in our state.

•

Senate Resolution 68: Among the legislative issues we drive and support is a resolution to create a commission to help develop a strategic plan for science and technology in Georgia. This is the first of its kind for the state and we believe having a plan will support even more growth for Georgia in technology.

•

Industry Events and Awards: TAG also works to promote our technology industry to outsiders to help attract new companies and talent to Georgia and further enhance our state’s ecosystem. TAG promotions include the annual Georgia Technology Summit, the Georgia Technology Hall of Fame (in partnership with PriceWaterhouseCoopers), the TAG Top 40 Innovative company awards and a host of other events recognize and honor those who are contributing to the growth of Georgia’s technology footprint.


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The following graphic represents the evolution of TAG.

About The Technology Association of Georgia (TAG) TAG is a leading technology industry association dedicated to the promotion and economic advancement of the state's technology industry. TAG provides leadership in driving initiatives in the areas of policy and education and brings the technology community together through events, initiative programs and networking opportunities. TAG serves as an umbrella organization for 30 special interest groups, or societies, including Women in Technology (WIT). Additionally, TAG’s charitable arm, the TAG Education Collaborative, is focused on helping science, technology, engineering and math (STEM) education initiatives thrive. For more information visit the TAG website at www.tagonline.org or TAG’s community website at www.TAGthink.com.

Mass Technology Leadership Council, Burlington, MA www.masstlc.org Massachusetts and, in particular, Greater Boston and “route 128” has been at the forefront of technological innovation for decades and this leadership shows no sign of letting up. It is also an example of a true tech community that is defined by the companies, organizations and educational institutions that abound. What exists is a concentration of venture capitalists, universities like MIT, Public economic development agencies like The Mass. Technology Collaborative, companies like EMC, Boston Scientific, non-profits like MassChallenge, which runs the largest-ever global startup competition, and technologyfocused organizations like The Mass Technology Leadership Council which fosters entrepreneurship and promotes the success of companies that develop and deploy technology across industry sectors.


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The Mass Technology Leadership Council has put forth a dynamic vision for the future of Massachusetts technology by calling for private and public sector influencers to creatively and effectively leverage Massachusetts’ unique assets. The 2020 Challenge is aimed at creating 100,000 new technology jobs, instate, by the end of the decade. Recently, an optimistic note was sounded relative to results that point to a belief that progress could be two or three times faster this year that the annual rate needed to achieve the goal. There is an expectation from the Council that “…with the right level of commitment and focus from all our members, we can capture tremendous growth by riding a new wave of innovation in mobile, data analytics, robotics, digital media and other sectors.” “The Mass Technology Leadership Council conducts educational programs, hosts industry events, facilitates networking, sponsors research, advocates in favor of technology policies that promote innovation, entrepreneurship and competition, and recognize industry-leading companies and people.


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IV. Developing a Model(s)/Template(s) A few organizations have, after successfully demonstrating the viability of establishing an innovation ecosystem and producing desired results, reviewed their experiences and documented both best practices and processes for replicating the effort. This may be considered as a model for others to follow or, perhaps it will end up as a framework, design or blueprint from which to build a new structure in a region that will certainly have some unique characteristics and requirements. JumpStart, Inc. and Communitech have both taken this step and information about what they’ve done and are doing.

A. JumpStart, Inc., Cleveland, OH

www.jumpstartinc.org

JumpStart, and the Northeast Ohio Ecosystem have been identified as success stories and are being examined as models and examples of best practices. The EDA has asked JumpStart to work with other communities in MN, IN, MI, and NY to explore how they might create action plans to promote innovation and entrepreneurship in their regions.

As a result, JumpStart, Inc. launched JumpStart Community Advisors, a team that collaborates with community and regional leaders interested in expanding and enhancing their region’s entrepreneurial capacity. They engage with regions across the U.S. who desire to develop, fund and execute regional entrepreneurial action plans that will lead to the creation of a high-performance entrepreneurial ecosystem. Regions in: Minnesota, Indiana, Michigan, New York, Ohio

From JumpStart presentation – Nov 10, 2010

Mike Mozenter President, JumpStart Community Advisors


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An article found in http://elmwood.wgrz.com/content/445000-federal-grant-awarded-regional-projectsupport-develop-new-high-tech-businesses provides one example of progress that is being made toward extending the program. “Congressman Brian Higgins (NY-27), Senator Charles Schumer, Senator Kirsten Gillibrand, Congresswoman Louise Slaughter (NY-28) and Congressman Chris Lee (NY-26) announced $445,000 for a new joint initiative covering nineteen counties in Western and Central New York to support new economy business development and job growth across the region. The funding awarded to the Erie County Industrial Development Agency (ECIDA) and JumpStart Inc. through the U.S. Economic Development Administration (EDA) will provide the resources for the New York counties to create a Regional Entrepreneurship Action Plan (REAP) modeled after a successful program creating jobs and boosting economic growth in Northeast Ohio.” Some aspects of the Regional Entrepreneurship Action Plan (REAP) process are: • Plan and Develop: Form an advisory group of regional commercial and community leaders and build a Regional Entrepreneurship Action Plan (REAP) • Fund: Engage with local, regional, state and national organizations who desire to support the implementation of the REAP • Implement: Work with the regional partners and collaborators to put in place the capabilities identified in the REAP. Partners’ Goals • • • • • •

Regional Collaboration Measurable Results Inclusion (minorities and women) Accountability Operational Excellence Catalyst (Entrepreneurial Ecosystem)

B. Communitech, Waterloo, ON www.communitech.ca As mentioned earlier, Communitech has assembled a handbook titled: “Building Better Ecosystems: a handbook for tech cluster growth and success”. In the “Getting Started” section, five steps are listed which are necessary to “get the ball rolling”.


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Getting Started A successful enabling organization is created by bringing a broad spectrum of network partners together, figuring out where your strong suits are and where you have weaknesses, assuming a leadership role in the enabling process, tirelessly working with your network partners, and finally, defining a program suite that best meets the needs of the tech companies you represent.

STEP 1: Asset Inventory Assess the offering of every player in your universe: •

Partners

•

Technology capability of small/medium/large firms

•

Other enabling organizations

•

Companies

STEP 2: Missing Elements Take note of what you need, and be creative about getting it: •

Money

•

Talent

•

Space

•

Strategic business acumen

•

Voice

STEP 3: Leadership Step into the void. •

Waiting for the stars to align doesn’t help grow companies; action does!

STEP 4: Engagement Collaborate. •

Find a way to get everybody on the bus – procedurally, structurally and culturally.

•

Focus on win-wins, common enemies, and one team.

STEP 5: Build A sustainable tech cluster requires a strong enabling organization. •

Build you program, your profile and your team.


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13

In the “What it takes to build the Enabling Organization” section, five P’s provide an effective framework for building a strong enabling organization: Five P’s • • • • •

Place and profile Programs Partners Pennies and People Proof 1. Place and Profile Where you’re from gives weight to your activities. If you’re in tech, a Silicon Valley street address provides instant credibility. If you’re in finance, it’s a New York City address. If you’re in entertainment, it’s a Hollywood address. But you’re from Milton, Ontario; or Saskatoon, Saskatchewan, or Jacksonville, Mississippi. The companies you represent are up against bigger players from well-known places. What can you do as an enabling organization for the tech cluster in your region? Employ effective strategies to give your companies a street address that matters via: • • •

Global Promotion Local Promotion Real Estate

2. Programs Beginning and ending with strategic alignment, effective program development for the enabling organization includes the right line card for each level of enterprise, as executed through: • • • • • • •

Events Government Relations Peer learning Venture Support Workforce Development Youth Outreach Export Support

3. Partners Your ecosystem partners – whether they are other enabling organizations, government, academia, financing players, knowledge creators, non-tech enterprises or technology entrepreneurs – all play a role in the potential for technology based economic development. The relationship between partners must therefore be clearly beneficial to both parties. Getting there requires a clear understanding of:


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•

Who your organization is, what you do and for whom

•

How that meshes with what a partner organization does

•

Where you both fit within the ecosystem

4. Pennies and People To be able to help tech businesses grow, you need to run your enabling organization as a business. That means having the right financial and human resources in place to be effective. Effective management of pennies and people relies on delivery across four key service platforms : 1. 2. 3. 4.

Talent Business Development Visibility Government Relations

5. Proof The right measurement varies by region and by program area. The key is to set your bench marks, check in with stakeholders regularly, report back and look ahead. Start the process by taking stock of where you are today, and where you see yourself in the future. How does your enabling organization stack-up?


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V. Observations /Best Practices/Summary Observations: 1. The “Innovation Ecosystem” is alive and well in many regions throughout the U.S. and Canada, where Tech Councils currently operate. 2. Innovation Ecosystems seem to mostly function within a geographic region reaching a 25 mile radius of a hub city. 3. Many Tech Councils have already played a prominent role in both establishing the Innovation Ecosystem and acting as a Venture Development Organization; supplying entrepreneurs with needed services and access to resources. 4. Collectively, Tech Councils provide virtually every combination of services and access to resources which are required by innovative entrepreneurs. 5. Regions that have made the greatest strides toward having well-functioning Innovation Ecosystems, are well funded. 6. Innovation Ecosystems were initiated and grew because there was top-level support and visibility given to the project. 7. Innovation Ecosystems, that have established themselves, can point to one person, or a few people, who assumed leadership roles. 8. Thriving Innovation Ecosystems resulted from successfully getting disparate organizations to collaborate. 9. Although the Innovation Ecosystem identifies the organizations it comprises, the level of cooperation and collaboration between those organizations varies from region to region and typically reflects the degree of collaborative attitude in a region. 10. Documentation exists that reflects experience with creating Innovation Ecosystems along with associated best practices. 11. Most regions indicated that more could be done to reach out to entrepreneurs with information and directions on where resources reside within the region and how to access them.


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12. The Innovation Ecosystem clearly describes the relationship between economic development oriented organizations supplying needed resources to entrepreneurs so they can make their companies grow and create the jobs and income that strengthens the economy. 13. Many Tech Councils have shifted from being trade organizations, providing services and networking opportunities to their members, to assuming an expanded role in overall economic development, while still focusing on the contributions from, and benefits to, the companies in the technology sectors that they represent.

Best Practices: 1. Use a model or template as a starting point for creating an Innovation Ecosystem but retain flexibility to suit the needs of a particular region. 2. Identify the primary stakeholder organizations within a region that should form the core of the Innovation Ecosystem and act in a partnering and collaborative manner. 3. Solicit endorsement and involvement of top-level and visible individual to introduce and spearhead an initiative, and communicate focus, urgency and reliance on participating stakeholders to work-as-one to accomplish stated goals and objectives. 4. Undertake actions and activities that will maintain high visibility of the initiative, contributions of the partners, and progress made toward achieving goals and objectives. 5. Map the existing assets and resources available in the regions and identify major gaps. 6. Establish clear, achievable, measurable and agreed upon goals and objectives. 7. Seek funding opportunities from federal and state governments, and nationwide foundations but, at the same time, plan for becoming self-sustaining. 8. Continue to access the deep pool of information and experience that exists in other regions.

Summary: In collecting and assembling information for this report, relating to the Impact of Innovation Ecosystems on economic development, the author was reminded of the 50’s song “Two Different Worlds; We Live In Two Different Worlds”. It wasn’t too long ago that technology councils were primarily trade organizations that represented the best interests of their members, and economic development organizations at federal, state, and local levels were focused on creating environments conducive to promoting commerce and providing incentives to business and industry to locate in a particular place or take a particular course of action. Jobs and Innovation Ecosystems – Implementation within TECNA Regions – June 1, 2011 © TECNA 2011

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No longer can we afford to function in this way. Competition, from throughout the world, has had an unanticipated, and profound, effect on our domestic economy. The results for many citizens who have been negatively impacted are: incomes either lost or reduced, standard of living impaired, and future opportunities made unclear. And; this does not appear to have only current consequences. Loss, or reduction, of income makes it difficult, if not impossible, to save for children’s education or for retirement which can translate into a greater burden on society in the future. So; in a certain respect, what we’re really talking about is competing more effectively in the global marketplace. In the past, our rivals took over manufacturing many of the products we consume, and took advantage of technological advances to provide services to us. They accomplished this, for the most part, by capitalizing on lower cost human and physical resources and, in some cases, manipulating currency and creating trade barriers. Overcoming the advantages they possess, represents a formidable challenge which, as has been proven in the past, cannot be overcome by individual action. This is the time when people in a position to make a difference have to come together and become part of something bigger. And, the people coming together must be the ones that recognize what is meant by being innovative in the twenty-first century. In a world of extreme high-tech and science, the winners will be those who discover, create, and deliver the advanced products and services of tomorrow. Thus, the idea of bringing together members of organizations focused on the technology community with those in economic development can produce a synergistic effect that will power our competitiveness and restore our economic strength. As with most things, it’s a matter of will. It’s been shown in this report that Innovation Ecosystems exist and are producing results. The next step is to expand on what’s already been accomplished by spreading the word, getting more players on board, deepening our understanding of what needs to be done and how to do it and, most importantly, doing it. We’ll finish with the old sales adage: “There are no Problems, only Opportunities”. Seizing the opportunity and helping to bring our country back to a strong economic condition can be fulfilling and rewarding. It offers an opportunity to leaders with foresight, courage, conviction and stamina to step up to the challenge and effect change. Did we just describe you?


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VI. Thank you to TECNA members who participated The insight gained from conversations with CEOs and Partners was extremely helpful in structuring this report and selecting content that, hopefully, will add value to the ongoing discussion. Overall, the level of cooperation and sharing was excellent and all of you are to be commended for your contributions. Tom Anderson Maxine Ballen Greg Brand Matt Cookson Cory Donovan Tim Early Tod Fetherling Ted Ford Catrina Gruver-Luedtke Rachel Hack Su Hawk Fred Hoch Tom Hopcroft Leann Jacobson Jim Jay Iain Klugman Mark Lewis Keanin Loomis Tino Mantella Dean Miller Donn Morrill Mike Mozenter Brad Nellis Matthew Nemerson Amy Norman Cindy Pearson Robert Philips Brooks Raiford Eric Renz-Whitmore Doug Robertson Audrey Russo Susan Sigl Mark Skinner Bill Sproull Tom Still Kris Valerio Tom Walker Joe Wiggins Perry Wood Kim Zentz Steve Zylstra

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