Building the Arkansas
Innovation Economy
Summary of a Symposium
Charles W. Wessner, Rapporteur
Committee on Competing in the 21st Century:
Best Practice in State and Regional Innovation Initiatives
Board on Science, Technology, and Economic Policy
Policy and Global Affairs
NATIONAL RESEARCH COUNCIL
OF THE NATIONAL ACADEMIES
THE NATIONAL ACADEMIES PRESS
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NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.
This study was supported by: Contract/Grant No. DE-DT0000236, TO# 28, (base award DE-AM01-04PI45013), between the National Academy of Sciences and the Department of Energy; and Contract/Grant No. N01-OD-4-2139, TO# 250, between the National Academy of Sciences and the National Institutes of Health. This report was prepared by the National Academy of Sciences under award number SB134106Z0011, TO# 4 (68059) from the U.S. Department of Commerce, National Institute of Standards and Technology (NIST). This report was prepared by the National Academy of Sciences under award number 99-06-07543-02 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the National Institute of Standards and Technology, the Economic Development Administration, or the U.S. Department of Commerce. Additional support was provided by the Heinz Endowments, the Association of University Research Parks, Acciona Energy, Dow Corning, IBM, and SkyFuel, Inc.
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THE NATIONAL ACADEMIES
Advisers to the Nation on Science, Engineering, and Medicine
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences.
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The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council.
Committee on Competing in the 21st Century:
Best Practice in State and Regional Innovation Initiatives
Mary L. Good, Chair
Dean Emeritus, Donaghey College of Engineering and Information Technology
Special Advisor to the Chancellor for Economic Development
University of Arkansas at Little Rock
and STEP Board
William C. Harris
President and CEO
Science Foundation Arizona
W. Clark McFadden II
Senior Counsel
Orrick, Herrington & Sutcliffe
LLP.
Michael G. Borrus, Vice Chair
Founding General Partner
X/Seed Capital Management
David T. Morgenthaler
Founding Partner
Morgenthaler Ventures
Edward E. Penhoet
Director
Alta Partners
Tyrone C. Taylor
President
Capitol Advisors on Technology
PROJECT STAFF
Charles W. Wessner
Study Director
Alan H. Anderson
Consultant
McAlister T. Clabaugh
Program Officer
David S. Dawson
Senior Program Assistant
(from June 2010)
Sujai J. Shivakumar
Senior Program Officer
David E. Dierksheide
Program Officer
Adam H. Gertz
Program Associate
(through June 2010)
Thomas R. Howell
Consultant
For the National Research Council (NRC), this project was overseen by the Board on Science, Technology and Economic Policy (STEP), a standing board of the NRC established by the National Academies of Sciences and Engineering and the Institute of Medicine in 1991. The mandate of the Board on Science, Technology, and Economic Policy is to advise federal, state, and local governments and inform the public about economic and related public policies to promote the creation, diffusion, and application of new scientific and technical knowledge to enhance the productivity and competitiveness of the U.S. economy and foster economic prosperity for all Americans. The STEP Board and its committees marshal research and the expertise of scholars, industrial managers, investors, and former public officials in a wide range of policy areas that affect the speed and direction of scientific and technological change and their contributions to the growth of the U.S. and global economies. Results are communicated through reports, conferences, workshops, briefings, and electronic media subject to the procedures of the National Academies to ensure their authoritativeness, independence, and objectivity. The members of the STEP Board* and the NRC staff are listed below:
Paul L. Joskow, Chair
President
Alfred P. Sloan Foundation
Ernst R. Berndt
Louis E. Seley Professor in Applied Economics
Massachusetts Institute of Technology
John Donovan
Chief Technology Officer
AT&T Inc.
Alan M. Garber (IOM)
Provost
Harvard University
Ralph E. Gomory (NAS/NAE)
Research Professor
Stern School of Business
New York University
Mary L. Good (NAE)
Dean Emeritus, Donaghey College of Engineering and Information Technology
Special Advisor to the Chancellor for Economic Development
University of Arkansas at Little Rock
William H. Janeway
Partner
Warburg Pincus, LLC
Richard K. Lester
Japan Steel Industry Professor
Head, Nuclear Science and Engineering
Founding Director, Industrial Performance Center
Massachusetts Institute of Technology
*As of November 2012.
William F. Meehan III
Lecturer in Strategic Management
Raccoon Partners Lecturer in Management
Graduate School of Business
Stanford University
and
Director Emeritus
McKinsey and Co., Inc.
David T. Morgenthaler
Founding Partner
Morgenthaler Ventures
Luis M. Proenza
President
The University of Akron
William J. Raduchel
Chairman
Opera Software ASA
Kathryn L. Shaw
Ernest C. Arbuckle Professor of Economics
Graduate School of Business
Stanford University
Laura D’Andrea Tyson
S.K. and Angela Chan Professor of Global Management
Haas School of Business
University of California, Berkeley
Harold R. Varian
Chief Economist
Google, Inc.
Alan Wm. Wolff
Senior Counsel
McKenna Long & Aldridge LLP
STEP Staff
Stephen A. Merrill
Executive Director
Paul T. Beaton
Program Officer
McAlister T. Clabaugh
Program Officer
Aqila A. Coulthurst
Program Coordinator
Charles W. Wessner
Program Director
David S. Dawson
Senior Program Assistant
David E. Dierksheide
Program Officer
Sujai J. Shivakumar
Senior Program Officer
Contents
Session I: The Global Challenge and the Opportunity for Arkansas
Moderator: Mary Good, University of Arkansas at Little Rock
The Innovation Imperative: Global Best Practices
Charles Wessner, The National Academies
Innovation Infrastructure at the State and Regional Level: Some Success Stories
Richard Bendis, Innovation America
Innovation and Commercialization Successes in Oklahoma
David Thomison, Innovation to Enterprise (i2E)
California’s Innovation Challenges and Opportunities
Susan Hackwood, California Council on Science and Technology
Evolution of Innovation in Arkansas
Watt Gregory, Accelerate Arkansas
Session II: Cluster Opportunities for Arkansas
Moderator: Paul Suskie, Arkansas Public Service Commission
Arkansas and the New Energy Economy
Paul Suskie, Arkansas Public Service Commission
Gilbert Sperling, Energy Efficiency and Renewable Energy (EERE), U.S. Department of Energy
The Wind Energy Industry in Arkansas: An Innovation Ecosystem
Arkansas’s Role in Energy Transmission Management
Nick Brown, Southwest Power Pool
The State of Technology and Innovation in Arkansas
The Honorable Mike Beebe, Governor of Arkansas
Session II: Cluster Opportunities for Arkansas (continued)
Moderator: Charles Wessner, The National Academies
Research in Advanced Power Electronics: Status and Vision
Regional Initiation Clusters (RIC)
Ginger Lew, National Economic Council, The White House
Agriculture and Food Processing
Carole Cramer, Arkansas Biosciences Institute, Arkansas State University
Greg Salamo and Alex Biris, University of Arkansas at Fayetteville
Session III: Federal and State Programs and Synergies
The Role of the Economic Development Administration
Barry Johnson, Economic Development Administration, Department of Commerce
Initiatives of the Manufacturing Extension Program
Roger Kilmer, Manufacturing Extension Partnership, National Institute of Standards and Technology
University-Industry Partnerships
Marc Stanley, National Institute of Standards and Technology
University-Federal Government Partnerships
From University Research to Start-ups: Building Deals for Arkansas
Michael Douglas, UAMS BioVentures, University of Arkansas Medical Services
Session IV: Universities and Regional Growth
Moderator: John Ahlen, Arkansas Science and Technology Authority
Arkansas STEM Coalition Activities
Michael A. Gealt, University of Arkansas at Little Rock
State Initiatives for Research Funding and Their Role in Economic Development
William Harris, Science Foundation Arizona
Session V: Arkansas R&D Capacity: Universities, Research Labs, and Science Parks
Moderator: John Ahlen, Arkansas Science and Technology Authority
Infrastructure for High-Performance Computing
Jay Chesshir, Little Rock Chamber of Commerce
Understanding the Battelle Study
Responding to the challenges of fostering regional growth and employment in an increasingly competitive global economy, many U.S. states and regions have developed programs to attract and grow companies as well as attract the talent and resources necessary to develop innovation clusters. These state and regionally based initiatives have a broad range of goals and increasingly include significant resources, often with a sectoral focus and often in partnership with foundations and universities. These are being joined by recent initiatives to coordinate and concentrate investments from a variety of federal agencies that provide significant resources to develop regional centers of innovation, business incubators, and other strategies to encourage entrepreneurship and high-tech development.
PROJECT STATEMENT OF TASK
An ad hoc committee, under the auspices of the Board on Science, Technology, and Economic Policy (STEP), is conducting a study of selected state and regional programs in order to identify best practices with regard to their goals, structures, instruments, modes of operation, synergies across private and public programs, funding mechanisms and levels, and evaluation efforts. The committee is reviewing selected state and regional efforts to capitalize on federal and state investments in areas of critical national needs. This review includes both efforts to strengthen existing industries as well as specific new technology focus areas such as nanotechnology, stem cells, and energy in order to better understand program goals, challenges, and accomplishments.
As a part of this review, the committee is convening a series of public workshops and symposia involving responsible local, state, and federal officials and other stakeholders. These meetings and symposia will enable an exchange of views, information, experience, and analysis to identify best practice in the range of programs and incentives adopted.
Drawing from discussions at these symposia, fact-finding meetings, and commissioned analyses of existing state and regional programs and technology focus areas, the committee will subsequently produce a final report with findings and recommendations focused on lessons, issues, and opportunities for complementary U.S. policies created by these state and regional initiatives.
THE CONTEXT OF THIS PROJECT
Since 1991, the National Research Council, under the auspices of the Board on Science, Technology, and Economic Policy, has undertaken a program of activities to improve policymakers’ understandings of the interconnections of science, technology, and economic policy and their importance for the American economy and its international competitive position. The Board’s activities have corresponded with increased policy recognition of the importance of knowledge and technology to economic growth.
One important element of STEP’s analysis concerns the growth and impact of foreign technology programs.1 U.S. competitors have launched substantial programs to support new technologies, small firm development, and consortia among large and small firms to strengthen national and regional positions in strategic sectors. Some governments overseas have chosen to provide public support to innovation to overcome the market imperfections apparent in their national innovation systems.2 They believe that the rising costs and risks associated with new potentially high-payoff technologies, and the growing global dispersal of technical expertise, underscore the need for national R&D programs to support new and existing high-technology firms within their borders.
Similarly, many state and local governments and regional entities in the United States are undertaking a variety of initiatives to enhance local economic development and employment through investment programs designed to attract knowledge-based industries and grow innovation clusters.3 These state and regional programs and associated policy measures are of great interest for their potential contributions to growth and U.S. competitiveness and for the “best practice” lessons they offer for other state and regional programs.
STEP’s project on State and Regional Innovation Initiatives is intended to generate a better understanding of the challenges associated with the transition of research into products, the practices associated with successful state and regional programs, and their interaction with federal programs and private initiatives. The study seeks to achieve this goal through a series of complementary assessments of state, regional, and federal initiatives; analyses of specific industries and technologies from the perspective of crafting supportive public policy at all three levels; and outreach to multiple
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1 National Research Council, Innovation Policies for the 21st Century, Report of a Symposium, C. Wessner, ed., Washington, DC: National Academies Press, 2007.
2 For example, a number of countries are investing significant funds in the development of research parks. For a review of selected national efforts, see National Research Council, Understanding Research, Science and Technology Parks: Global Best Practices, Report of a Symposium, C. Wessner, ed., Washington, DC: National Academies Press, 2009.
3 For a scoreboard of state efforts, see Robert Atkinson and Scott Andes, The 2010 State New Economy Index: Benchmarking Economic Transformation in the States, Kauffman Foundation and ITIF, November 2010.
stakeholders. The overall goal is to improve the operation of state and regional programs and, collectively, enhance their impact.
THIS SUMMARY
The symposium reported in this volume convened state officials and staff, business leaders, and leading national figures in early-stage finance, technology, engineering, education, and state and federal policies to review challenges, plans, and opportunities for innovation-led growth in Arkansas. The symposium included an assessment of Arkansas’ natural, industrial, and human resources; an identification of key sectors and issues; and a discussion of how the state might leverage national programs to support its economic development goals.
This summary includes an introduction that highlights key issues raised at the meeting and a summary of the meeting’s presentations. This workshop summary has been prepared by the workshop rapporteur as a factual summary of what occurred at the workshop. The planning committee’s role was limited to planning and convening the workshop. The statements made are those of the rapporteur or individual workshop participants and do not necessarily represent the views of all workshop participants, the planning committee, or the National Academies.
ACKNOWLEDGMENTS
On behalf of the National Academies, we express our appreciation and recognition for the insights, experiences, and perspectives made available by the participants of this meeting. We are indebted to Alan Anderson for summarizing the proceedings of the meeting and to Tom Howell for preparing the draft introduction. We are also indebted to Sujai Shivakumar and David Dawson of the STEP staff for preparing the report manuscript for publication.
NATIONAL RESEARCH COUNCIL REVIEW
This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Academies’ Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for quality and objectivity. The review comments and draft manuscript remain confidential to protect the integrity of the process.
We wish to thank the following individuals for their review of this report: John Ahlen, Arkansas Science & Technology Authority; Edward Malecki, Ohio State University; Lora Lee Martin, California Council on Science and Technology; and Eric Sandgren, University of Arkansas, Little Rock.
Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the content of the report, nor did they see the final draft before its release. Responsibility for the final content of this report rests entirely with the rapporteur and the institution.
Charles W. Wessner
Mary L. Good