Trends in the Innovation Ecosystem:
Can Past Successes Help Inform Future
Strategies?

Summary of Two Workshops

Steve Olson and Maria Dahlberg, Rapporteurs

Committee on Science, Engineering, and Public Policy
Policy and Global Affairs

NATIONAL ACADEMY OF SCIENCES,
NATIONAL ACADEMY OF ENGINEERING, AND
INSTITUTE OF MEDICINE
OF THE NATIONAL ACADEMIES

THE NATIONAL ACADEMIES PRESS

Washington, D.C.

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Trends in the Innovation Ecosystem: Can Past Successes Help Inform Future Strategies? Summary of Two Workshops Steve Olson and Maria Dahlberg, Rapporteurs Committee on Science, Engineering, and Public Policy Policy and Global Affairs

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THE NATIONAL ACADEMIES PRESS 500 Fifth Street, NW Washington, DC 20001 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 Grant No. OIA-0834015 between the National Academy of Sciences and the National Science Foundation. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of the sponsors who provided support for the project. International Standard Book Number-13: 978-0-309-29304-4 International Standard Book Number-10: 0-309-29304-9 Additional copies of this report are available for sale from the National Academies Press, 500 Fifth Street, NW, Keck 360, Washington, DC 20001; (800) 624-6242 or (202) 334-3313; http://www.nap.edu. Copyright 2013 by the National Academy of Sciences. All rights reserved. Printed in the United States of America.

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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. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. C. D. Mote, Jr., is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. 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. C. D. Mote, Jr., are chair and vice chair, respectively, of the National Research Council. www.national-academies.org

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PLANNING COMMITTEE FOR WORKSHOPS ON TRENDS IN THE INNOVATION ECOSYSTEM RICHARD N. ZARE [NAS] (chair), Marguerite Blake Wilbur Professor, Stanford University PAUL CITRON [NAE], (Retired, Vice President, Technology Policy and Academic Relations, Medtronic, Inc.) GORDON R. ENGLAND [NAE], President, E6 Partners LLC C. D. MOTE, JR. [NAE] (ex-officio), President, National Academy of Engineering WILLIAM J. SPENCER [NAE], Chairman Emeritus, SEMATECH Staff KEVIN FINNERAN, Director GURU MADHAVAN, Program Officer MARIA LUND DAHLBERG, Research Associate and Rapporteur MARION RAMSEY, Administrative Associate Consultant STEVE OLSON, Consultant Writer and Rapporteur v

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COMMITTEE ON SCIENCE, ENGINEERING, AND PUBLIC POLICY RICHARD N. ZARE [NAS] (chair), Marguerite Blake Wilbur Professor, Stanford University LINDA M. ABRIOLA [NAE], Dean of Engineering, Tufts University SUSAN ATHEY [NAS], Professor, Graduate School of Business, Stanford University MOSES H.W. CHAN [NAS], Evan Pugh Professor of Physics, Pennsylvania State University RALPH J. CICERONE [NAS] (ex-officio), President, National Academy of Sciences PAUL CITRON [NAE], Vice President (Retired), Technology Policy and Academic Relations, Medtronic, Inc. DAVID DANIEL [NAE], President, The University of Texas at Dallas GORDON R. ENGLAND [NAE], President, E6 Partners LLC HARVEY V. FINEBERG [IOM] (ex-officio), President, Institute of Medicine DIANE E. GRIFFIN [IOM, NAS], Alfred and Jill Sommer Professor, Chair in Molecular Microbiology and Immunology, Johns Hopkins Bloomberg School of Public Health C. D. MOTE, JR., [NAE] (ex-officio), President, National Academy of Engineering PERCY A. PIERRE [NAE], Vice President and Professor Emeritus, Michigan State University E. ALBERT REECE [IOM], Vice President for Medical Affairs, Bowers Distinguished Professor and Dean, School of Medicine, University of Maryland Baltimore MICHAEL S. TURNER [NAS], Rauner Distinguished Service Professor, Kavli Institute for Cosmological Physics, The University of Chicago NANCY S. WEXLER [IOM], Higgins Professor of Neuropsychology, Colleges of Physicians and Surgeons, Columbia University PETER WOLYNES [NAS], D.R. Bullard-Welch Foundation Professor of Chemistry, Center for Theoretical Biological Physics-BCR, Rice University Staff KEVIN FINNERAN, Director TOM ARRISON, Senior Program Officer GURU MADHAVAN, Program Officer NEERAJ GORKHALY, Research Associate MARIA LUND DAHLBERG, Research Associate RICHARD-DUANE CHAMBERS, Christine Mirzayan Science & Technology Policy Graduate Fellow (until December 2012) MARION RAMSEY, Administrative Associate vi

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Reviewer Acknowledgments 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: Michael G. Borrus, X/Seed Capital Management; Brian Darmody, University of Maryland; James D. Plummer, Stanford University; Leon Sandler, Massachusetts Institute of Technology; William J. Spencer, SEMATECH (retired); and Eli Yablonovitch, University of California, Berkeley. 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 rapporteurs and the institution. vii

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Contents 1 INTRODUCTION ........................................................................................ 1 2 THE ELEMENTS OF SUCCESS................................................................. 5 3 DIFFERENCES AMONG TECHNOLOGIES ........................................... 11 4 THE ROLES OF UNIVERSITIES ............................................................. 17 5 THE ROLE OF RESEARCH PARKS........................................................ 25 6 PUBLIC POLICIES TO SUPPORT INNOVATION ................................. 33 APPENDIXES ................................................................................................... 41 A WORKSHOP AGENDAS ......................................................................... 43 B SPEAKERS AT THE WORKSHOPS ....................................................... 47 C SPEAKERS BIOGRAPHIES..................................................................... 49 ix

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