The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement



Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 37
II PROCEEDINGS

OCR for page 37

OCR for page 37
DAY 1: APRIL 3, 2013 Welcome Drew Matonak President Hudson Valley Community College (HVCC) Dr. Matonak greeted the attendees to Hudson Valley Community College (HVCC), in Troy, New York, and expressed his pleasure at hosting a symposium on nanotechnology, a topic “of such significance to the Capital District and surrounding communities and businesses.” He pointed out that the rapid development of nanoscience and nanotechnology in the region was a function of successful partnerships among business, education, and government, which “need to work together to make things happen. And we have great evidence that things are happening here in the capital region.” First, he said, the New York higher educational system, and particularly its community colleges, have been “workforce development assets and economic engines” for the state, and HVCC itself had been a “powerful provider of on-demand workforce training” since its creation 60 years ago. “We’ve partnered with local, regional, state, and international companies to learn what is required by each of them, and how we can help those companies grow. At the same time, we identify specifically what our students need to be valuable employees.” He defined the mission of HVCC as working in partnership with organizations in other sectors, especially businesses, to help them meet their workforce needs. In pursuing that mission, HVCC relies on a diverse group of advisory committee members who offer council on making sure the curriculum is relevant and current. “What is important for us,” he said, “is to be able to change as the demands in our region change. To be flexible is a huge part of our mission.” Among the examples Dr. Matonak offered was the development of a semiconductor manufacturing program a dozen years ago, ”before a lot of this effort we’re seeing today came about.” More recently, he said, the college sent several faculty members to Dresden, Germany, to learn more about the workforce needs of GLOBALFOUNDRIES, a large chip maker then owned by Advanced Micro Devices (AMD) and soon to be part of the 39

OCR for page 37
40 NEW YORK’S NANOTECHNOLOGY MODEL GLOBALFOUNDRIES company that has recently arrived in the Albany region. “What we learned by working with the folks in Dresden,” he said, “was that we had some skill gaps between our program designed for the global workforce needs in our area and the specific workforce needs of GLOBALFOUNDRIES. We brought that back and our school of engineering and industrial technologies developed a specific gap certificate that ensures that students at the point of graduation are well matched with the specific workforce needs of GLOBALFOUNDRIES.” Other programs, he said, such as the advanced manufacturing program, reach for similar goals by working closely with business and industry. As a result, many students receive job offers and accept employment even before finishing their programs. Other examples are the allied health and industrial technology programs. In 2010, HVCC applied for a National Science foundation grant to train students in biomanufacturing and biotechnology “to open a path toward these emerging fields.” The school has also opened a new facility called Tech Smart to train students in the GLOBALFOUNDRIES semiconductor manufacturing program, photovoltaics, geothermal energy, and wind technology. For each of these fields the school works closely with General Electric, GLOBALFOUNDRIES, IBM, and other companies to determine and meet their workforce needs. Dr. Matonak repeated his welcome to all attendees, and invited them to tour the HVCC campus to see school programs in action. “The real magic happens in our classrooms,” he said, adding that the school was finishing construction of a new science center just to the south of the meeting site that would provide “state-of-the-art facilities.” He then introduced the Hon. Paul Tonko, Representative for the 20th Congressional District, whom he characterized as “a strong and vocal advocate for higher education, especially in fields of science and technology that are vital to the continued growth and economic development of our region.”

OCR for page 37
PROCEEDINGS 41 Introductory Remarks The Honorable Paul Tonko U.S. House of Representatives Representative Tonko repeated Dr. Matonak’s welcome of the participants and thanked them “for recognizing this region” as a place he characterized as “one of the hottest hubs in the country, if not in the world, for clean energy, innovation, and job growth.” He said that the region is “truly a collaborative at work,” and said that his service on the House Energy and Commerce Committee was a “perfect fit” for the district, with its rapidly growing reputation as an innovation leader. “It’s important for us to tailor public policy with the work we are doing here and the challenges that present themselves in a very welcoming fashion.” He noted that Forbes magazine in 2012 had ranked the Capital District of New York fourth on its list of best cities for jobs, praised its commitment to a green economy, and stated that no other region had more workers employed in “fields with environmental benefits.”1 He also said that a Brookings Institution report had ranked the Albany metro region first in the nation in its share of clean-economy jobs.2 “These accolades should not come as a surprise to those of us who have lived here for many years and understand that our workforce, our schools, and colleges, especially our community colleges, are key ingredients to the success that we now taste.” He also noted that President Obama had visited the region three times since September 2009, and said that the Administration “recognizes the incredible clustering and collaboration here resulting from unique partnerships between the private sector, New York State government, and the higher education community. Nowhere else in the country and perhaps in the world,” he continued, “have we seen such seamless integration between cutting-edge research, private investment, and government-inspired job creation.” The President discussed those themes at HVCC in September, 2009, at General 1 Daniel Fisher, “Washington, Des Moines best cities for Jobs,” Forbes February 27, 2012. 2 Mark Muro, Jonathan Rothwell, and Devashree Saha, Sizing the Clean Economy: A National and Regional Green Jobs Assessment, Washington, DC: The Brookings Institution, 2010.

OCR for page 37
42 NEW YORK’S NANOTECHNOLOGY MODEL Electric in Schenectady in February, 2011, and at SUNY’s College of Nanoscale Science and Engineering in May 2012. ATTRACTING MORE JOBS, EQUIPPING MORE PEOPLE WITH SKILLS Rep. Tonko also quoted the State of the Union message of 2013, when the President said, “A growing economy that creates good middle-class jobs: that must be the North Star that guides our efforts. Every day we should ask ourselves three questions as a nation: How do we attract more jobs to our shores, how do we equip our people with the skills needed to do these jobs, and how do we make sure that hard work leads to a decent living.” He also discussed the country’s new initiatives in advanced manufacturing, biomedical research, clean energy, and updating the aging infrastructure. Rep. Tonko said that the Albany region “will be a contender in any of these fields,” and that the region had a track record of success through a new model of collaboration “that is second to none.” The challenge, he said, was to “continue to leverage our assets and to maintain our competitive edge over the next 10, 25, and 50 years.” This record of success had been built on a few key elements, he said, including “our people, and our workforce, as well as our educational institutions.” These were “the best foundation for which we could ask.” From that foundation, he said, the region had developed a model for building upon clusters of industry and research, which included a shared vision and open dialogue across industry, government, and higher education. He attributed much of the credit to the Center for Economic Growth (CEG), and its director Michael Tucker, “for serving as facilitator of that dialogue.” He also extended praise to “dozens of individuals who work tirelessly toward achieving a common vision, many times sacrificing their own success or recognition for that greater effort.” To maintain our competitive edge for the long term, he added, “we must keep that sense of humility. Our achievements cannot be sustained or built upon without these co-equal partnerships. Success inevitably brings competition, and we must confront this with a continued laser-sharp focus on preparing our region for the opportunities of tomorrow.” He said that the success of the region “did not happen overnight or in a vacuum,” but was the result of many years of careful planning and investment by the private sector, higher education, and state government—led by the administrations of three different Governors and the State Assembly—which promoted the initial investments in a then-little-known field of nanotechnology. Having served in the state assembly for nearly 25 years, he praised Speaker Sheldon Silver’s large role in promoting technological development. “Having this high level of investment and potential for great growth is a great feeling,” he said, “and I do want to credit the State Assembly for the role it played. New York State led the way in promoting and encouraging grass-roots technology investments, versus a more traditional, trickle-down approach of depending on the federal government.”

OCR for page 37
PROCEEDINGS 43 Rep. Tonko also saw parallels between President Obama’s “laser-sharp focus” on strengthening technological innovation in the country and President Kennedy’s response to the “embarrassing Sputnik moment” of the 1950s. “We dusted off our backsides and said never again. And through the leadership of a president, this country came together with passionate resolve. We need to have that passion again today. The President is calling upon us to enter in with a sort of reverence for training so we can win this race and stay a kingpin of the international economy. As a region, we can’t afford to be complacent. If we are to retain our competitive edge in this international sweepstakes for jobs, innovation, and investment, we have to win, not simply be listed as a participant. And having a competitive edge means research.” He recalled the role of his region even farther back in history, when New York was a “donor state to the westward movement, the Industrial Revolution of ages past.” New Yorkers then were proud participants in that movement, he said, inspiring great progress, academic prowess, and creative ingenuity. He recalled the blue-collar workers of the Erie Canal, the capacity for work as “part of our DNA,” the evolution of a “little town, New York City,” that became a huge metropolitan area, just as the banks of the canal gave birth to a “necklace of communities, dubbed mill towns,” that became the epicenters of invention and innovation. “So we know what research, investment, and worker strength mean to success,” he said, “and the growth that is tethered to reality. So let’s make it happen with a competitive design that embraces research, that inspires additional sophistication, solutions, and good-paying jobs. A sophisticated society such as ours is challenged with this moment not to fall back but look forward to the sense of product discovery and product delivery that only a sophisticated nation can accomplish.” WORLD LEADERSHIP BEGINS WITH INVESTMENT To be world leaders, he said, begins with investment. “I don’t want to hear about cuts to research, cuts to innovation. It is deplorable how that environment grips our nation’s capital. This President is calling for a plan of action; this country deserves nothing less.” This plan requires a workforce that can attract and sustain the industries of the future, he said. “And we must remember that we do not compensate our workforce by a race to the bottom, but by competitive wages.” He said that international companies no longer make labor costs the driving factor in locating their business. Much more important, he said, is proximity to higher education and research institutions, especially in the form of a technology cluster like the Capital District. In terms of workforce development, he said, a sound education must begin at an early age. He said that he had helped to create the region’s Tech Valley High School to provide opportunities for science- and technology- minded students, and that the legislation was supported by both Houses, working with the governor. He also commended GLOBALFOUNDRIES for its

OCR for page 37
44 NEW YORK’S NANOTECHNOLOGY MODEL efforts in local workforce development. This included the Tech Valley Connection for Education and Jobs, led by GLOBALFOUNDRIES and CEG to develop “the workforce of tomorrow through government, industry, and educational collaboration.” The CEO of GLOBALFOUNDRIES, Ajit Manocha, he said, was “someone who recognizes the value of the local workforce and who has worked hard to not only hire local workers but to encourage the Tech Valley Connection to develop a pipeline of talent.” Rep. Tonko closed by noting that his colleagues in Washington are envious of the President’s three visits to the Capital District, and of its “growing sophistication in this competitive sweepstakes.” He predicted “tremendous opportunities for Tech Valley to embrace exciting initiatives that lie just around the corner,” and urged continued participation “from top to bottom.” The achievements so far, he emphasized, “belonged to the people of Tech Valley, New York,” including New York’s state and local governments. “Our state government recognized the value of this cluster of business and research, and invested in higher education in Tech Valley.” He singled out the research universities, including Rensselaer Polytechnic Institute (RPI), the nation’s oldest technological research university, the State University of New York (SUNY), and the College of Nanoscale Science and Engineering, which had “broken new ground in what an institution of higher education could do,” as well as the strong network of Hudson Valley, Schenectady, and Fulton- Montgomery Community Colleges. The academic sector was complemented by a growing technological private sector, led by both international-scale organizations, including IBM, GLOBALFOUNDRIES, SEMATECH, and GE, and scores of small startups, such as Ecovative Designs. Most importantly, he concluded, “our people are Tech Valley. We are Tech Valley, and we will continue to be, and this is why it will continue to grow stronger from top to bottom.” DISCUSSION Dr. Wessner thanked the Congressman for his inspiring talk, Dr. Matonak for hosting the symposium, Mr. Russo of GLOBALFOUNDRIES for co-organizing the conference, and all the participants. He introduced the keynote speaker, Ajit Manocha of GLOBALFOUNDRIES, by reviewing the purpose of the symposium. In part, he said, it was an effort to understand not only what other countries are doing by way of innovation, but also various regions of the country. One survey of the innovation strategy, he said, had just been released by the National Academies: Rising to the Challenge: U.S. Innovation Policy for the 21st Century. The report described innovation activities in many countries, including China, Germany, Singapore, and Belgium, as well as those in more than half a dozen regions of the United States. The Capital District of New York was chosen to conclude the series of regional studies, he said, because of both its success and its lessons for other regions.

OCR for page 37
PROCEEDINGS 45 He characterized Dr. Manocha as one driver of that success, and “one of leading CEOs in the U.S.” who had been named by EE Times to its Top 40 Innovators list.3 Dr. Manocha, he said, had successfully navigated the challenges of growing a major company “despite incredibly fierce competitors” who often have significant government support. The success of GLOBALFOUNDRIES, he said, had significant implications not only for the region’s economic development but also for U.S. economic competitiveness and national security. 3 .

OCR for page 37
46 NEW YORK’S NANOTECHNOLOGY MODEL Keynote Address Ajit Manocha CEO GLOBALFOUNDRIES In his introduction, Dr. Manocha thanked Dr. Matonak of Hudson Valley Community College for being a “great partner and ally of GLOBALFOUNDRIES” and for “bringing the education, infrastructure, and research to prepare people for the countless jobs that GLOBALFOUNDRIES is creating. Without this kind of flexible program we would not be starting all this.” He also thanked Gov. Andrew Cuomo for his consistent leadership in supporting the public-private partnership and for “driving the state agenda for high-tech manufacturing and innovation.” He began with an update on Fab 8, the GLOBALFOUNDRIES building where ground was broken in 2009. “We have come from basically forest land to the most advanced wafer fab in the world today.”4 He said that an indication of the fab’s importance is that he is often recognized by cab drivers when returning from the airport. Dr. Manocha said that while “building a fab is easy if you have money,” the real key to a state-of-the-art fab is leadership in technology, and that GLOBALFOUNDRIES had become the “champion of the most advanced technology.” The company had begun operation in December 2011 by producing 32 nanometer (nm) 5silicon-on-insulator technology for IBM, with which it has a close working relationship. Within a year it had launched 48 nm, 40 nm, and 14 nm technology as well. He noted that chip features as small as 14 4 GLOBALFOUNDRIES, since breaking ground for Fab 8 in 2009, has quickly climbed into a leadership position among the top dozen semiconductor manufacturers in the world. It is now second only to industry leader Taiwan Semiconductor Manufacturing Company. Source: Gartner Group, 2013. 5 A nanometer is a billionth of a meter, from the Greek nanos, dwarf, and metron, unit of measurement.

OCR for page 37
PROCEEDINGS 47 nm are very difficult to realize, comparing it for illustration with the width of an average human hair, which is about 75,000 nanometers. This ability, he continued, is a result of not only GLOBALFOUNDRIES’ expertise, but also its close relationships with IBM, CNSE, RPI, the community colleges, and other partners. “This is called a true partnership,” he said, “and because of it we have been extremely successful.” He also said that Tech Valley itself is effectively a partnership for promoting economic growth, as is the Tech Valley Connection for Education and Jobs, launched by GLOBALFOUNDRIES. “Tech Valley Connection,” he said, “is driving President Obama’s agenda about developing the workforce and skill sets of people, and driving advanced manufacturing in this country.” Dr. Manocha reviewed current plans for expanding the GLOBALFOUNDRIES facility in Malta. Two months previously the company had announced plans for a new research facility called the Technology Development Center on the Fab 8 campus adjacent to the fab itself. The purpose of this $2 billion investment, he said, was to drive the specific research and development programs relevant to the work of the fab. “That’s the proof point for us to drive innovation,” he said, “and the proof point that we are committed to this business for a long time to come.” To audience applause, he said that “$2 billion is not a small amount,” and that the new investment is expected by the end of next year to create an additional 1,000 jobs inside the Fab 8 campus, along with 5,000 more indirect jobs in the region. CREATING NEW JOBS IN MALTA, NEW YORK Creating these new jobs in Malta, he argued, both “stresses” the education system and enhances it at all levels, from K-12 to continuing ed. The Tech Valley Connection for Education and Jobs (TVCEJ) connects all training levels, developing and improving the skills to support the “high-level, high- quality manufacturing jobs we need in this country.” A benefit of this strategy, he said, “is that we are now awake. Thirty years ago, I don’t know how it happened, we started shipping all those jobs to overseas. The time has come that we are reversing that trend. We’re bringing the pride back into this nation. The pride of advanced manufacturing and innovation.” We know that research and innovation fuels GDP growth, he continued, but that growth has faded in recent years.6 He expressed confidence that GDP growth would return. GLOBALFOUNDRIES itself, he said, is “driving GDP growth by supporting advanced manufacturing,” producing products not only for the semiconductor industry, but for many sectors, including mobility, automotive, medical science, consumer products, and industrial applications. 6 For the first time, exports of high-technology exports began to decline more than a decade ago, and have not yet recovered.

OCR for page 37
140 NEW YORK’S NANOTECHNOLOGY MODEL new “phase space” that represents the interface of biology, chemistry, and materials science. There is knowledge about the edge of this space: how the materials interact, how nanomaterials can be dispersed within polymers to generate homogeneous materials with great strength, allow sensors to function, and so on. “But we are missing the inside,” he said, “and that’s critical. Without it, biomanufacturing lags far behind. When we understand the inside, we’ll be able to process biological-material hybrid systems and manufacture them in ways that parallel what is done in microelectronics.” This work on the missing inside has been a major focus at RPI, he said. Over the last 10 years, the NSF funded Nanoscale Science and Engineering Center has built up a better understanding of to manufacture functional materials. “Collaborations are not only critical, they’re required. We can’t do everything. That could be said for every university and every discipline. We need to be able to develop materials that provide form, function, and can be tailored for applications important in human health, industrial processes, consumer products, etc. We also need to discover better drugs, and bring them to market faster to make it possible to have more affordable health care technologies. The Challenge of Infection One of the largest challenges, he said, is infection, which is going to become even more critical. “In hospitals, the biggest problem is not what the surgeon does; it’s what the bacteria do if they get into the patient. Hospital- acquired infections are the 4th or 5th leading cause of preventable death in the United States. The WHO said if we can’t solve this problem we’ll go back to early 20th century, when routine surgeries were so often fatal that many were simply left undone.” A second problem is food supply, especially processing and packaging. “Food poisoning has a massive economic impact; a quarter of all fresh water use goes to dealing with food spoilage.” In another nanobiotechnology project in our group, he said, we have produced a paint that kills the lethal bacterium MRSA.38 We focused on using nature to defend ourselves from nature’s pathogens. We turned to viruses of bacteria, or phages, which infect specific bacteria. An interesting question that drives this work is how does the phage progeny that are being made within the bacteria get out of the cells and infect other cells? We know the answer—the phage genome codes for an enzyme that is generated in the bacterium. This enzyme effectively drills holes in the bacterial cell wall, which ultimately causes the cell to “blow up and release phage progeny, thus leading to infection of neighboring cells.” 38 Methicillin-resistant Staphylococcus aureus. Resistance makes MRSA infection more difficult to treat with standard types of antibiotics and thus more dangerous.

OCR for page 37
PROCEEDINGS 141 “We asked, how can we do that from the outside in, to destroy the pathogenic bacteria before they can get out of control? And we asked whether we could use our approach to protect societal infrastructure, including hospitals, from dangerous pathogens. We knew we had to stabilize the phage enzymes so they would remain viable until needed, so we put them onto materials roughly the same size as the enzymes themselves, 5 to 10 nanometers. Then we mixed them into paint. When MRSA bacteria hit the paint, they stick and die. We can do this with Listeria, too, which is a major pathogen in the food industry, and also with bacillus spores.” ‘The Pharmaceutical Industry Has Critical Problems’ Given the challenges faced by the pharmaceutical industry, he said, the outlook for new drug development is uncertain. He showed a chart for the years 1996-2006 depicting a steep upward slope of R&D spending that is matched almost exactly by the steep decline of new drug approvals over the same period. From 2009 to 2011, he said, fewer than 60 drugs were approved by the FDA, and the cost for approval is now close to $2 billion per drug. “This is not sustainable,” he said. “Patents covering over $50 billion in drug revenue expired in 2010. The pharmaceutical industry has huge problems. Who’s going to be able to develop the new drugs?” And why is drug development so difficult to do, he asked? First, biology is complex. He said that the human cell and a Boeing 787 have basically the same number of parts. “We can design and build a 787, but we can’t design and build a cell. We barely understand how some of the parts work.” It is equally difficult to make drugs safe, he said. “There isn’t much difference between what is effective and what is toxic. However, this is a major opportunity for personalized therapies” Personalized Medicine Through Interdisciplinary Partnerships He offered a vision of personalized medicine, and emphasized that this will require the kinds of interdisciplinary partnerships that were being discussed at the symposium. “We have a chip that mimics how the body deals with a drug,” he said. “It has pillars or wells of enzymes, and calculates how well the drug is metabolized by the liver. It can determine whether a drug candidate is likely to be toxic, so that the candidate can be tailored to people with the appropriate genetic make-up, and perhaps one day to an individual person.” He said that in the mid-2000s a public-private partnership set off on the path toward commercializing this chip. Finally, he said, more than ever, drug development requires big data— first unstructured data. This can be coupled with systems biology and computational approaches. The high-performance and cognitive computing capabilities at RPI, he said, make possible the beginnings of a better

OCR for page 37
142 NEW YORK’S NANOTECHNOLOGY MODEL understanding of how an individual patient’s data can be used to develop new drugs or therapeutics. These emerging opportunities to combine big data with nanotechnology and biotechnology can be of benefit in three areas, he said. In R&D, the combinations can improve the understanding of the nature of therapeutic molecules, perhaps re-purposing drugs no longer in use. Second, they can help develop new visualization tools that, especially in clinical areas, advance understanding and make possible not only the brain-computer interface, but also the “whole body-computer interface.” Such advances can lead to more personalized clinical trials. Third, the benefits can improve health care infrastructure by developing networks of sensors shared by multiple hospitals, new patient treatment regimens, and ultimately lower costs. “New York State can certainly leverage its investment in microelectronics to develop the new biotechnology, which must be highly collaborative,” he said. . “The expertise exists here in nanotech, biotech, biomedical research, emerging big data, and so forth.” He expressed excitement about the new venture fund described earlier by Mr. Adams of the Empire State Development Corporation, which responded to an urgent need for seed funding in the region. Hope for a New Treatment Scenario He concluded by sketching out his hope for a new medical treatment scenario. “Our goal is that one day soon you will be able to go to the doctor or hospital where your genetic makeup is known; this data will tell your doctor about the nature of your disease. We know enough about how to put molecules together, and how they fit into the proteins of your body, that we can imagine making a drug specifically for you, at very small scale, perhaps with the help of bacteria—just as in nature. We can do virtually all of this today, so it is not far- fetched to imagine that one day soon you will be able to have your own drug made just for you in the amounts you need and available on the day you need it.” He closed on a note of gratitude for the support his university has received from several New York State agencies. “RPI is fortunate to have such a good partnership with the state,” he said. “You heard yesterday about our supercomputer, which we will expect by the end of this year will rank among the top in university-run computational facilities. Our biotech center, which is where my research resides, was supported by RPI in terms of the building, but much of the equipment was funded by New York State, and most recently our stem cell research center was supported by NYSTEM, the New York State Stem Cell Science program. So the public-private partnerships we’ve been discussing have real and positive outcomes at the level where they matter.”

OCR for page 37
PROCEEDINGS 143 CONVERGENCE IN THE SEMICONDUCTOR, PHARMACEUTICAL, AND MEDICAL DEVICE INDUSTRIES Brian Toohey President & CEO, Semiconductor Industry Association (SIA) Mr. Toohey began by observing how “impressive is what has been built here,” and said it was especially encouraging to see it from the perspective of Washington. “We recently had our international SIA meeting not far from here,” he said, “and after the meeting, all the international delegates wanted to talk about was what is happening in Albany. It is truly spectacular.” Can Pharma Use a Collaborative Research Model? Mr. Toohey said that before coming to the SIA, he had spent many years in the pharmaceutical and device industry at the association, regulatory, and product development levels. Given that background, he said, he had been asked to consider whether a collaborative research model can be built for the pharmaceutical industry that is similar to those emerging in nanotechnology, semiconductors, and biotechnology. He said that “the short answer is yes,” but offered several trends that are likely to give shape to a new model. From this perspective, he said, he had seen that several strong trends were characterizing current healthcare. The first was an aging population. By 2025, he said, about 1.2 billion people will be older than age 50, twice as many as in 2006. The second is rising health care costs, which now account for more than 18 percent of GDP. Third, spending on health care is rising in emerging countries as well. In China, healthcare expenditure increased from 3.7 percent of GDP in 1995 to 5.6 percent in 2007. Finally, healthcare is becoming more personal; 33 percent of medical semiconductor revenue in 2008 went into consumer medical devices. Semiconductors in Medical Apps Another trend is the increasing use of semiconductors in healthcare. Just as semiconductors transformed computing and communications, he said, they are beginning to transform healthcare. For example, the value of semiconductors in medical apps is expected to rise by a factor of about 2.5 between 2008 and 2016. Among other trends increasing the demand for semiconductors is 100 percent monitoring for more patients in hospital settings, and bringing ultrasound devices to the point of care in applications such as emergency rescue, military operations, and recreation. Increasing numbers of devices are being used in clinical patient monitoring, health and chronic disease management, and vital signs monitoring. One advantage of new technologies is convenience. For example, non- invasive devices for blood glucose monitoring are available using silicon bio-

OCR for page 37
144 NEW YORK’S NANOTECHNOLOGY MODEL sensors. Another is insertion into body organs with unprecedented access to conditions, such as retinal implants, deep brain stimulation, cochlear implants, gastric pacemakers, neuro-stimulators, and other implantable technologies. Extending the Benefits of Industry-university Collaboration One reason for optimism about extending the benefits of industry- university collaboration in pharma, he said, is the multi-decade success of the semiconductor collaborations. In that sector, industry consortia support for university basic research had led to 10-fold declines in costs every six years. He argued that a similar pattern in semiconductors and synthetic biology, or synbio, can be seen in a series of breakthroughs during the last decade. These include the first chemical synthesis of polio virus, chip-based high-throughput DNA synthesis, MEMS DNA synthesis, DNA “origami,” the first synthesis of a bacterial genome, DNA-assembled carbon nanotube field effect transistors, a cytomorphic electronics concept, and DNA information storage. Another example, he said, is semiconductor/biological circuits, in which cellular material is used as intelligent components of electronic circuits. These circuits can be used for digital, analog, and sensing functions, and interfaces between biological and semiconductor components. He noted that “a crisis is a horrible thing to waste,” and reiterated that the pharmaceutical industry is in crisis, especially with respect to new drug approvals and the cost of research and development. “That will motivate these companies to sit down and have this discussion,” he said. Two Barriers to a Semiconductor-Pharma Convergence He said that discussions with several friends indicated the likelihood of two barriers to a semiconductor-pharmaceutical convergence. The first, he said, is a mechanism for sharing intellectual property. “The models for pharma are very different from those in the semiconductor industry. In semiconductors we have a great history of showing that it can be done, and now it needs to be solved for pharma.” The second barrier, he said, is how to merge the microelectronics technologies that already exist into pharmaceutical discovery and therapy. A big issue is the regulatory approvals—“not because the FDA or other regulators would try to be an obstacle. They simply don’t have an appropriate framework from which to look at safety aspects of these types of convergent technologies.” One suggestion, he said, is to bring the industries together first and try to set a framework of safety and reliability which can then be taken to the regulatory authorities.

OCR for page 37
PROCEEDINGS 145 Closing Roundtable: New York’s Innovation Future Moderator: Charles Wessner Director, Technology, Innovation, and Entrepreneurship The National Academies Dr. Wessner moderated a roundtable discussion to conclude the symposium. He began by asking Johanna Duncan Poitier, the SUNY Vice- Chancellor for Community Colleges, for her comments. Strengthening the Link Between Nanotech and Healthcare Dr. Poitier said that “at end of the day, one thing we all know is that the jobs are here. Business and industry want an educated workforce. We also know that more has to be done to build the educated workforce we need. Some of us are part of the $15 million federal grant to support a consortium of all 30 community colleges in advanced manufacturing. We’re building an infrastructure to make sure that more people who graduate from our colleges are prepared for the workforce, especially in advanced manufacturing. We are also going to build a consortium in health care. What I hadn’t expected before today is the link between nanotechnology and health care—a huge link that can maximize resources and opportunities.” More Emphasis on Leadership Kathleen Kingscott, Senior Director for Strategic Partnerships at IBM, said she would like to highlight the importance of leadership in building collaborations. “In my experience, visionary leaders have personal relationships with one another. Because doing technology development partnerships is very difficult and there are lots of moving parts at certain times things can get stuck. Good leaders often have the ability to work through problems and get things restarted.

OCR for page 37
146 NEW YORK’S NANOTECHNOLOGY MODEL She also referred to the comment by Mr. Russo that the rush of people coming from around the world to visit GLOBALFOUNDRIES made him “feel like the Department of State.” This area has won the first lap and we are very pleased to see the growth the Albany area is enjoying. Yet we at IBM also see tremendous opportunities around the world; in fact in the last year we have opened our first two labs below the equator, one in Australia one in Brazil, because the market opportunities are excellent and governments often offer investment incentives. The playing field is really not level for the United States. Governments around the world see the value of the semiconductor industry, and make an effort to recruit companies. A third point, she said, is that the role of government and its decision making are very important. She reiterated the point that “With the stroke of a pen, the environment in which business is done can be changed, for better or for worse. Tax policy, immigration policy, regulatory review, the ease of getting permits to build infrastructure; water, roads, and electricity; all these are choices government makes.” Dr. Wessner agreed that “we may want to give serious emphasis in the report on the importance of infrastructure, permitting, and speed, which are often stronger in other countries.” ‘IBM’s Role Has Been Critical’ Michael Liehr, Executive Vice-President of Innovation and Technology at CNSE, agreed that the role of federal government reached far beyond financial support to include immigration and other policies. As a takeaway, he said, he was impressed by the success of CNSE in taking advantage of all the legs of the innovation stool—not only the federal government but also state government, academia, and industry. He also affirmed, “IBM’s role and the role of the Governor of New York have been absolutely critical. Without IBM’s presence and without the continued support of several Governors, CNSE would not be what it is.” Dr. Wessner added that the ability of CNSE to move more quickly than most universities had also added to its success. Dr. Liehr agreed that CNSE “does move fast, because private firms have no patience in waiting for us when millions of dollars are at stake. And it’s educational for the folks at the college to see what speed will be expected of them in industry. It’s the speed of business, and if we as universities want to play a role, we’ve got to learn how to move at that speed.” Development Models Need to be Shaped by Local Circumstances Dr. Wessner next called on Clark McFadden, Senior Counsel at Orrick, Herrington & Sutcliffe, LLP, and Member of the National Academies’ Committee on State and Regional Innovation. Mr. McFadden said he was impressed by the variety of catalysts the area has had to generate “an enormous amount of economic development.” But he said that the area must be prepared to

OCR for page 37
PROCEEDINGS 147 move from the support of catalysts to sustainability. He found several encouraging signs. One is the region’s flexibility and adaptability in approaching economic development. “There isn’t a specific formula,” he said. “The models need to be derived from the circumstances you face. I have the feeling that’s how you’ve been proceeding, and maintaining that flexibility is important. In looking for a best practice for initiatives such as the NNMI, he suggested care in “not allowing the investment or the concept to outrun the industry and its needs. This means it is crucial to maintain local connections to what you’re doing, build on your local capabilities, and make sure your infrastructure is actually co-located with your industry.” The Need to Tolerate Failures Also, he noted that the subject of failure had not been discussed at the symposium. “Anything of this scale is very risky,” he said, “If it’s going to be successful in the aggregate, it has to take major risks, and you’re bound to have failures. One thing government doesn’t deal well with is failure. Their tendency is to shun it, and focus blame without gaining any learning. A quality of other successful areas is that they’ve been able to learn from things that didn’t work well. You do have to have accountability and measure what you do, but you don’t want to treat a failure as something you should never have tried.” Jonathan Dordick of RPI reminded his audience that “everything we’ve been talking about, mainly the application and transfer of technology, is built on the basic research enterprise that exists in this country, funded primarily by the federal government. This funding is being squeezed more than ever, and we will lose the sustainability of our R&D if this continues.” Dr. Wessner agreed, and added that support was needed to sustain not only basic research, but applied research and development as well. Without stronger development and commercialization, he said, U.S. innovations are likely to be developed and commercialized by other countries, which has been the case for many years. “The assumption that what’s invented here gets made here has evaporated.” Mike Russo of GLOBALFOUNDRIES said that the speakers had been effective in characterizing the Albany cluster and the spirit of its activities. “I think what people have articulated is the value of innovation. While some innovation is a natural part of most research, the vast majority takes collaborative effort and funding. We’re happy to have the Academies come here, and look forward to a conference report that can help us to communicate that message to policy makers.” Innovation Requires Leaving Our Comfort Zones His take-away, he said, was that moving forward to innovate “is more than risk taking. It’s getting out of your comfort zone and your vested interest.”

OCR for page 37
148 NEW YORK’S NANOTECHNOLOGY MODEL He mentioned the example of the medical device, pharmaceutical, and semiconductor industries and their discussion of a possible collaboration. “I would argue that many entities that might not be inclined to support collaboration would actually enjoy an ancillary benefit down the road: it would not only help business, but it would advance health care and help human kind. I would encourage us to get out of our business comfort zones and contribute to those initiatives. That’s kind of a takeaway, but also a challenge to the region.” Dr. Wessner concluded the symposium by agreeing that “we have some people committed to working very hard to make that happen.” He thanked the participants, and “all the people who made this meeting work, and also Alexis de Tocqueville, “who wrote about the ability of Americans to self-assemble and cooperate.” He complimented Mike Russo of GLOBALFOUNDRIES for not simply “identifying problems, but for working out solutions.” As for leaders of the regional effort around Albany, he suggested that their task “is not over,” and that they are just “getting into the low hills of what is possible to do once you reach the mountain.” But he was also effusive in his praise for the collaborators. “One thing that fascinates us at the National Academies is that you did this on your own, at the local, state, regional, and corporate levels, and that’s why we’re here from Washington. The problem solving you’ve done is truly innovative. There is a lot of electricity in the room; no one is sleeping. I congratulate you.”

OCR for page 37
III APPENDIXES

OCR for page 37