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Innovation and US Manufacturing Competitiveness Tom Baruch Founder, CMEA Capital Innovators – SAMCEDA 2010 Awards of Excellence April 30, 2010. Venture Capital Investments by Region, 2009. Silicon Valley. PWC/NVCA MoneyTree Report. 1. Demise of Corporate Research. Bell Labs.
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Innovation and US Manufacturing Competitiveness Tom Baruch Founder, CMEA Capital Innovators – SAMCEDA 2010 Awards of Excellence April 30, 2010
Venture Capital Investments by Region, 2009 Silicon Valley PWC/NVCA MoneyTree Report 1
Demise of Corporate Research Bell Labs Pharma Patent Cliff: revenue coming off patent by 2012 $ Billion Datamonitor 2
Moore’s Law Meets Mendel’s Law For the past 50 years Moore’s Law has driven innovation in electronics and biotechnology Transistors per Chip; Bases/person/day Year R.H. Carlson (2010) Biologyis Technology Harvard University Press 3
Young Firms Account for the Bulk of Job Creation Percent Firm Age Share of annualized net job creation in 2007. Kauffman Foundation, U.S. Census Bureau 4
Job Creation by Startups Jobs (in millions) Kauffman Foundation, U.S. Census Bureau 5
VC’s as Brokers of Innovation Mid-size Companies Universities Venture Capital Large companies Startups 6
Innovation Agenda • K-12 education in reading, science and math • Basic research • R&D tax credits • Lower corporate taxes • Intellectual Property Protection • Ambassadors of entrepreneurship • Immigration 8
Energy Market is >$2 Trillion • Demand • BRIC Economies • Geopolitics • Energy Security • Supply • “Exponential Technologies” • Low Carbon Economy • Depletion of Non-Renewables • Global Scramble • Barrel of Oil @ $60-80 A $1 Trillion Opportunity in Renewables/Efficiency 9
Urgent New Applications in Climate Change and Energy Carbon Mitigation Initiative, Princeton University Tremendous Need for Low Carbon Technologies 10
Convergence and Innovation The next 50 years will require collaborative, global and multi-disciplinary processes Energy and Materials Life Science Information Technology Innovation will happen at the borders where different disciplines meet 11
Bottlenecks in Commercializing New Technology A Major Opportunity - Closing the Scale-Up Financing Gap Accelerated Commercialization will occur at the intersection of problems and markets Materials Discovery Applications Development Commercial Products 10 years 10 years 20 years Intimacy of problems and markets is key 12
Accelerating Materials Discovery with Combi Synthesis Create Library Assay the Library Select Winners • Representative • Predictive • Automated: uses computational analysis Build new library based on best-performing materials • Biological or Material • Automated High-throughput Synthesis • Introduces Complexity and Novelty Market input Market input Optimized Final Product Platforms enable discovery of new materials >1000x faster than traditional methods 13
Semiconductor Industry Challenge A Major Opportunity - Closing the Scale-Up Financing Gap New materials drive IC performance more than reductions in scale 14
Intermolecular’s Solution Massively Parallel Processing Enables Faster Cycles of Learning Conventional R&D Approach One Process/Wafer Combinatorial R&D Approach Many Processes/Wafer 15
Intermolecular: Representative Project A Major Opportunity - Closing the Scale-Up Financing Gap Molecular Masking Layer for 32nm Copper Interconnect 7,635 experiments (deposition conditions) on 60 molecular types 18,300 characterization experiments • Using conventional methods and the same number of people: • It would have taken 5 years instead of 5 weeks to run this number of experiments. • Only 140 process conditions could have been analyzed, instead of 7600 4 Engineers 5 Weeks 2 Hits for Scale-up Using Moore’s Law to Accelerate Moore’s Law 16
Wild type Enzyme Evolved Commercial Biocatalyst Codexis Technology Platform A Major Opportunity - Closing the Scale-Up Financing Gap ProSAR Analytics 17
Cellular Engineering A Major Opportunity - Closing the Scale-Up Financing Gap Proteomics Metabolomics Transcriptomics Fluxomics Genomics Cellular Engineering Input Product 18
Innovation and Entrepreneurship will… Revitalize the Commercial and Economic Power of Silicon Valley • Leadership • Top to Bottom Commitment • Platforms • Innovation Economy • Programs • Policies • Market Intimacy • Experienced Entrepreneurs 19