National Academies Press: OpenBook
« Previous: Panel III: U.S. Parks: The Laboratory Model
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 103
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 104
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 105
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 106
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 107
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 108
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 109
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 110
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 111
Suggested Citation:"Panel IV: U.S. Parks: University-Based Models." National Research Council. 2009. Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/12546.
×
Page 112

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Panel IV U.S. Parks: University-Based Models Moderator: Christina Gabriel The Heinz Endowments The Heinz Endowments is a $1.6 billion, Pittsburgh-based philanthropic foun- dation. The Endowments focuses its philanthropy on southwestern ­Pennsylvania, but in supporting the regional economy, said Dr. Gabriel, Heinz addresses “issues that are national in scope.” A challenge for the Pittsburgh region is to continue its transition from a steel-based economy to an innovation-based economy. Heinz promotes that transition by using philanthropic dollars to stimulate the regional economy. “All has to be done in partnership,” said Dr. Gabriel. “We’re well along the way, but we’re not there yet.” She then turned to invite Rick Weddle to the podium. Research Triangle Park: Past Success and the Global Challenge Rick L. Weddle Research Triangle Park Rick Weddle, president and CEO of the Research Triangle Foundation of North Carolina, described the Research Triangle Park (RTP) as centrally located among its three university partners—the University of North Carolina at Chapel 103

104 UNDERSTANDING RESEARCH, SCIENCE AND TECHNOLOGY PARKS Hill, Duke University, and North Carolina State University. RTP was founded in 1959 by business, government, and academic leaders, he said, although the universities were the key drivers of the concept.17 They saw the importance of stemming the brain drain from North Carolina and promoting a shift in the re- gional economy from agriculture, low-wage manufacturing, and government to a research and technology focus. Employment growth began at the park in the mid-1960s, a time when less than 12 percent of the employment in the region was in high-tech industries. After climbing slowly to around 10,000 jobs in the 1970s, the employee population grew rapidly during the 1980s and has continued to grow since then. Mr. Weddle projects about 45,000 S&T jobs in the park by 2016, spread among some 160 S&T-based firms. Economic Impact of RTP The park has had a long-term economic impact on the region. Per capita in- come growth in Raleigh-Cary and Durham were far below the state average and national averages before the park was formed; today the per capita income of the region significantly exceeds the U.S. average and far exceeds the North Carolina average. In the 1960s it was one of the poorest regions in the southeastern United States and today is among the wealthiest regions in the southeast. Mr. Weddle noted that “scale is important” and that RTP is a large park at 7,000 acres. The park did a survey and found that the average size of a research park among the membership of the Association of University Research Parks in the United States is 358 acres, and the average size of a park in the International Association of Science Parks is 708 acres. However, the average size of a park in China is 10,357 acres. “I thought we were a big park until I looked at that,” he said. The market share of RTP globally is about 4 percent with the RTP share of the U.S. market at roughly 15 percent; U.S. parks as a group have about 24 percent of the world market share, and International Association of Science Parks (IASP) member parks have about 72 percent of global share. “So we are not the center of the universe.” The park’s university connections are “rich and robust,” and each of the three university partners is involved in governance, leadership, and helping set strategy. The park employs some 40,000 full-time workers in 24.5 million square feet of developed space. The economic impact is $2.8 billion in capital investment and $2.7 billion in annual payroll. When the park began operation, about 11 percent of the employment in the region was in new-line or high-technology industries, and today this proportion exceeds 50 percent. 17  Founded in 1959, Research Triangle Park is the nation’s second oldest research park. Stanford Research Park—which was founded in 1951 as Stanford Industrial Park in Palo Alto, ­California—lays claim to be the world’s first technology-focused office park.

50,000 180 40,000 130 30,000 80 20,000 Number of Jobs Number of R&D Firms 30 10,000 0 –20 16 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 10 20 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 Year Number of Jobs Number of Projected Jobs Number of R&D Firms FIGURE 4 RTP’s growth trajectory. 105 PROC Figure 04 R01413 editable landscape

106 Per Capita Income Growth Long - term Impact The Triangle, North Carolina and Select Metropolitan Areas 15 10 Percent 5 Above/ 0 Below the National –5 Average –10 –15 –20 –25 1970 1975 1980 1985 1990 1995 2000 2005 United States North Carolina Raleigh-Cary MSA Durham MSA Greensboro-Winston Salem-High Point CSA Charlotte MSA FIGURE 5 Long-term impact. SOURCE: U.S. Bureau of Economic Analysis. PROC Figure 05 R01413

7,000 21,000,000 39,000 114 314,000 750 FIGURE 6 Size matters: RTP vs. other parks. SOURCE: Characteristics and Trends in North American Research Parks: 21st Century Directions, Prepared by Battelle, October 2007. NOTE: The “Typical North American Research Park” is defined here as the median research park. PROC Figure 06 R01413 107 landscape only partially editable--numbers above columns, but not any other type

108 UNDERSTANDING RESEARCH, SCIENCE AND TECHNOLOGY PARKS A Diverse Mix of Industries Mr. Weddle said that a strength of the park is its diverse industry mix: 29 percent of tenants specialize in life science, 21 percent in information technol- ogy, 13 percent in materials science and engineering, 15 percent in business and professional services, and 11 percent in scientific associations, foundations, and institutes. It was not always so: the early park was dominated by a few large com- panies. Between 1997 and 2007, the number of companies increased three-fold, with the number employing fewer than 250 employees rising from 53 to 150. Very large firms, employing more than 1,000, stayed relatively constant, with “good growth” in the 500-1,000-employee firms, “still our bread and butter.” He said he is pleased with the movement into smaller companies. One impact of the park has been the creation of some 1,500 start-ups by RTP companies and the three research universities since 1970. There are also four active incubators: Park Research Center, owned by the park; First Flight Distribution of RTP Companies (by number of employees) Number of Employees 1997 2007 > 10,000 1 1 5,000 - 10,000 1 1 1,000 - 5,000 5 7 500 - 1,000 1 5 250 - 500 9 8 < 250 53 150 Number of Companies 70 172 FIGURE 7 Diversity matters. PROC Figure 07 R01413 left side is editable

panel iv: U.S. PARKS: UNIVERSITY-BASED MODELS 109 Venture Center, a successful nonprofit; Becton Dickenson BioVenture Center; and Alexandria Innovation Center. Another impact of the park is “induced development.” In analyzing all proj- ects within a four-mile radius, the park found that in addition to 24.5 million square feet of built space, it has induced another 13 million square feet of built space. In addition, a great deal of residential development was transforming the landscape. Expected Challenges He listed several challenges expected to come from local and global changes: • Changing nature of science: Parks must be ready for new trends. • Shifts in corporate and government R&D: For example, Singapore’s strat- egy includes large investments of public R&D money. • Changing nature of work and the workforce: Of 10,000 employees at IBM, 40 percent of workers tele-work and do not come to the main campus in RTP every day. GlaxoSmithKline, with 6,000 employees, is “reconcentrating” its workers to spur innovation. “How can you be virtual and at the same time create face-to-face opportunities for synergies?” • Sustainability issues: Energy, climate change, the green movement. • Evolution of science parks as places to both work and live. • Endless need for infrastructure investments: “When you’re successful, traffic problems are your reward.” Mr. Weddle concluded by pointing out how important parks have become around the world. He said that while every park will have its own local challenges and mission, speakers at the symposium from diverse backgrounds had demon- strated the common need for parks in every country and the value of sharing best practices with others. Purdue Research Park Victor Lechtenberg Purdue University Purdue was established in 1869 as a land-grant university in Indiana.18 Today 18  The nation’s land-grant colleges were authorized under the Morrill Act, signed into law in 1862 by President Lincoln, “to teach such branches of learning as are related to agriculture and the mechanic arts….” With very few exceptions, almost all of the 106 land-grant colleges are public, and include

110 UNDERSTANDING RESEARCH, SCIENCE AND TECHNOLOGY PARKS it has about 39,000 students and 2,100 faculty. Dr. Lechtenberg noted that the Purdue University System—which includes its regional campuses statewide—is one of the largest public universities in the United States, with a reputation as a top engineering school. Purdue University has a three-part mission of “learning, discovery, and engagement.” It also has an economic development goal—to “advance Indiana’s economic prosperity and quality of life.” The Purdue Research Park supports this goal in several ways, through two separate legal entities: The Purdue Research Foundation and the Discovery Park. Purdue Research Foundation: Parent of the Park System The first, the Purdue Research Foundation, initiated a decade ago is situated on 725 acres near the main campus in West Lafayette, Indiana. The park missions are to train and empower students and faculty to develop and commercialize tech- nologies needed to help the Indiana economy. Park facilities include use of the Internet, specialized laboratories, professional conference facilities and manage- ment, and access to the technical equipment of Purdue University. The features of the Purdue Research Park include: • The largest technology incubation program in the United States (259,000 square feet). • 147 companies. • 57 incubator businesses. • Nearly 100 high-tech firms and entities. • 2,800 employees. • An average wage of $58,406 PTC. • $121 million of invested venture capital. • 52 separate facilities. • 1.5 million+ square feet under roof. The Purdue Research Park is the state’s first Certified Technology Park. 19 31 tribal colleges added in 1994. Some, including Purdue University, have developed far beyond their original mandate to include full arts and sciences curricula. 19  The goal of Indiana’s 2002 technology-park program is to boost high-tech economic develop- ment within specific areas identified by local development organizations. The program allows for the increased tax revenues generated by park tenants—including property, sales, and income taxes—to be reinvested into the park. The money can be used for lot improvements, facility operation and maintenance, payment on bonds, and other promotional activities. The program also offers grants of up to $500,000 to help get park development rolling. A host of requirements must be met before the state will declare an area a certified technology park. There must be significant support promised by a university and a commitment to the commercialization of products. A business incubator must be part of the plan, and local officials must line up at least one commitment by a high-tech company to

panel iv: U.S. PARKS: UNIVERSITY-BASED MODELS 111 There are now 18 such certified parks distributed all over the state, each of which must have a university partner; Purdue is the university partner for 10 or 11 certi- fied parks. Of these, half a dozen are doing quite well, said Dr. Lechtenberg; oth- ers are showing potential. The state did not put much money into the expansion but created a financing authority based on sales tax and income tax. Discovery Park: Integrated Centers Started in 2002, Discovery Park is a network of integrated research centers that are dedicated to large-scale, interdisciplinary research. Discovery Park has 11 core centers that are expected to have long or even indefinite life spans and focus on large research opportunities in biosciences, nanotechnology, advanced manufacturing, energy, oncology, and healthcare engineering. Discovery Park also has project-based centers. These are expected to be interdisciplinary in nature, sponsored by funders and affiliated with a core center. Their research is often based on emerging funding opportunities, including those in homeland se- curity, climate change, visualization, and analytics transportation. New initiatives are being discussed, including cancer care engineering, cytomics, air emission monitoring, coal technology, and hydraulics. Since its founding in 2002, funding for Discovery Park has grown to more than $50 million last year, and now represents a significant portion of the univer- sity’s research portfolio. The Lilly Endowment has been instrumental in provid- ing initial momentum. A major objective of Discovery Park is to seed and nurture start-up compa- nies. It has facilitated the start of 24 firms so far, as well as six start-ups initiated by students. This part of the program is called Interns for Indiana, another Lilly Endowment-funded project. Indiana’s Technical Assistance Program Dr. Lechtenberg closed by describing the Technical Assistance Program (TAP), which achieved a statewide reach in 2007. During that year 150 TAP faculty, students, and staff worked in 413 companies, hospitals, and other in- stitutions. The program develops consulting arrangements between universities and companies. Most of these have been in manufacturing fields until a few years ago, when a healthcare technical assistance program was added; last year a pharmacy TAP was begun. By mid-July 2008 the TAP will have offices at 12 locations around the state. The economic impact of this program on a small state has been significant, said Dr. Lechtenberg, with a cash value of over $80 million in increased sales, sales retained, cost savings, and capital investment. More than operate within the park. See Steve Kaelble, “Good Neighbors: Indiana’s Certified-Technology-Park Program,” Indiana Business Magazine, July 1, 2004.

112 UNDERSTANDING RESEARCH, SCIENCE AND TECHNOLOGY PARKS 2,700 people have gained advanced manufacturing certificates in the past year, and more received workforce training, often in very advanced skills. Discussion In response to a question, Dr. Lechtenberg said that Indiana’s Technical As- sistance Program is funded by a state appropriation that has not been increased since the mid-1980s. Program growth has come mostly in fees for services, con- tracts, and training programs. A questioner asked about park size, and Mr. Weddle said that the park measured about two by eight miles. “This makes for difficult collaboration from company to company, and between our owners and the tenants association, both operationally and around communities of interest.” He said that there is no one way to organize employees or incentives to improve interaction, but they are trying many approaches. The most popular park program has proven to be the softball league, with shortage of fields and a waiting list to enter a team. They also have other programs to encourage cross-company collaboration, including monthly mixers for the tech workers that are catered by restaurants from around the region. “We once hired someone to do salsa dancing lessons. Have you ever seen 300 people with pocket protectors doing salsa dancing?” Groups also formed online, including a wiki group, and task forces were set up to share best practices. “We’re just beginning to dialogue with other parks,” he said. “We’re all collaborating, working hard to find ways to reduce the sensitivity around basic competition, and learning to work together.” On the topic of collaboration among institutions, he said that it is a chal- lenging issue. Mr. Weddle of RTP said that the three universities “worked better with each other than most institutions work within themselves.” He said that this collaboration was embedded early, when the state would fund facilities—such as the first supercomputer in the region—only if they were shared. When the biotech center was established in 1984, a single center had to be shared by the universi- ties. “It is an institutionalized level of collaboration,” he said. “The beneficiaries of our foundation are the three universities. We have a mechanism whereby we use our proceeds to fund demonstration projects that all agree on.” Dr. Lechtenberg of Purdue noted the challenge of assembling a critical mass of scientists and engineers on the smaller campuses. “What will be the emphases in smaller communities?” he asked. “The challenge is not in finding capital, but in finding the entrepreneurial talent locally.”

Next: Panel V: The Evaluation Challenge and Policy Synergies »
Understanding Research, Science and Technology Parks: Global Best Practices: Report of a Symposium Get This Book
×
Buy Hardback | $60.00 Buy Ebook | $47.99
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

Many nations are currently adopting a variety of directed strategies to launch and support research parks, often with significant financial commitments and policy support. By better understanding how research parks of other nations operate, we can seek to improve the scale and contributions of parks in the U.S. To that end, the National Academies convened an international conference on global best practices in research parks.

This volume, a report of the conference, includes discussion of the diverse roles that research parks in both universities and laboratories play in national innovation systems. The presentations identify common challenges and demonstrate substantial differences in research park programs around the world.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook, NAP.edu's online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!