Creating Regional Innovation Clusters: Lessons from the U.S. Experience

1. Creating Regional Innovation Clusters:Lessons from the U.S. Experience By Ray Smilor, PhD Schumacher Fellows in Innovation and Technology Professor of Professional Practice Neeley School of Business Texas Christian University Senior Fellow, CFE

2. Agenda • The U.S. Regions • Research Triangle Park, North Carolina • Austin, Texas • San Diego, California • Framework for Cluster Development • Lessons from the U.S. Experience

3. I. The U.S. Regions *Research Triangle Park, NC * San Diego, CA *Austin, TX

4. I. The U.S. Regions Research Triangle Park, NC • 1950 – present • 3 leading research universities • Spin-out companies • Culture of innovation

5. I. The U.S. Regions Austin, Texas • 1970s – present • Unique culture (Keep Austin Weird) • Collaborative environment • Creation of venture capital

6. I. The U.S. Regions San Diego, California • 1960 – present • Creation of research university • Focus on life sciences/defense • Vibrant tourism industry

7. II. Framework for Cluster Development Regional Cluster

8. II. Framework for Cluster Development Talent Visionary Leadership (internal) Entrepreneurs (external) Regional Cluster Incendiary Event Mobilization of Business, Academia, Government Partnerships Corporations Catalyst Organizations Local/State Government

9. II. Framework for Cluster Development Talent Visionary Leadership (internal) Entrepreneurs (external) Regional Cluster Incendiary Event Mobilization of Business, Academia, Government Culture for Innovation Role Models Tolerance/Diversity Networks Capital Partnerships Corporations Catalyst Organizations Local/State Government

10. II. Framework for Cluster Development Talent Visionary Leadership (internal) Entrepreneurs (external) Regional Cluster } Incendiary Event Mobilization of Business, Academia, Government Outcomes Technology Development Tech Transfer Job Generation Wealth Creation Recognition/Prestige Culture for Innovation Role Models Tolerance/Diversity Networks Capital Partnerships Corporations Catalyst Organizations Local/State Government

11. III. Lessons from the U.S. Experience • Visible, visionary, and passionate leadership • Bridged worlds of business/academia/government • Brought credibility to efforts • Exerted influence due to their stature, success and personal persuasiveness

12. III. Lessons from the U.S. Experience • An incendiary event • Ignited coordinated strategy • RTP Structure • Recruitment of major company • Launch of new university • Brought disparate groups/interests together • Generated excitement

13. III. Lessons from the U.S. Experience • A catalyst organization • Unconventional organization to catalyze community • Council for Entrepreneurial Development • IC2 Institute • CONNECT • Built networks among investors, entrepreneurs, academics, service providers • Provided training, conferences, competitions

14. III. Lessons from the U.S. Experience • The role of corporations • Drawn to region by high quality of life, tax incentives, access to talent • Brought technical expertise, resources, experienced managers • Partnered with universities

15. III. Lessons from the U.S. Experience • Compelling role models • Identified, recognized, celebrated people worthy of emulation • Reflected values of region • Showed success could be achieved – provided information, insight, inspiration

16. III. Lessons from the U.S. Experience • Increasing financial base • Funding difficult at the start • Chicken or egg – money or deal • Growth of business angels and venture capital

17. III. Lessons from the U.S. Experience • Culture for innovation • Promotion of creative class • Tolerance/diversity • Quality of life