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Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative (1999)

Chapter: B. Overheads on the Research Triangle Experience

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Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
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Annex B
Overheads on the Research Triangle Experience

Prof Michael Luger

THE ROLE OF S&T PARKS:

The Research Triangle Experience with Lessons for Sandia

Presentation at NRC Symposium on Industry-Laboratory Partnerships:

The Role of S&T Parks

April 22, 1998

Prof Michael Luger

University of North Carolina at Chapel Hill

Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

Outline of presentation

I.

Basis for remarks

II.

Overview of S&T (research) parks in the US

III.

What makes them ''successful?''

IV.

The RTP phenomenon

V.

The rest of the world—further lessons

Basis for remarks

 

  • 1991 book on US parks, including case study of RTP
  • Subsequent work on S&T parks and S&T policy in US, Europe, and Asia
  • Subsequent work on the role of universities and research centers/labs in regional economic development
  • Economic studies of Research Triangle; most recently, At the Crossroads: North Carolina's Place in the Knowledge Economy of the 21st Century
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

Overview of S&T (research) parks in the US

Type of park

# of parks

Median Age, 1995

Mean # tenants, 1989

Mean # tenants, 1995

Fast growing

17

16

32

58

Growing

30

11

3

19

Stagnant

12

12

34

41

Declining

3

14

33

35

Early parks, no data

13

12.5

8

 

Later parks, no data

28

13

35

 

Newcomers

41

5

8

 

No longer park

4

 

10

 

Not located

16

12

18

 

Skipped in 1989

20

11

 

 

TOTAL

184

 

 

 

Overview of S&T (research) parks in the US

 

Type of park

% in NE and MA

% in S

% in W and NW

% with access to university

% with

infrastructure

Fast growing

42

29

12

88

76

Growing

10

30

24

80

80

Stagnant

25

33

33

58

33

Declining

 

67

 

67

33

Early parks, no data

30

38

15

77

62

Later parks, no data

18

25

21

 

 

Newcomers

35

34

9

66

59

No longer park

25

25

25

 

 

Not located

27

40

13

 

 

Skipped in 1989

44

17

22

 

 

Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

Overview of S&T (research) parks in the US

Specializations of different types of parks:

 

  • Fast growing
  • telecommunications
  • optics, lasers
  • medical research
  • biotech
  • software
  • chemical

 

  • Newcomers (>1988)
  • medical equipment
  • biomedical
  • information technology
  • software
  • environmental
  • health/medical/pharmaceutical
  • semiconductor/advanced materials

What makes parks "successful?"

 

  • "Success" is a normative concept; can be defined in several ways:

 

  • as a real estate project

 

  • in terms of "policy effectiveness" (outcomes vs. goals)

 

  • in terms of efficiency (is present value of net benefits > 0?)

 

  • in terms of ability to transform a regional economy (longer time horizon)
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

What makes parks "successful?"

The U.S. story, in brief

Our 1991 study used net induced job creation in the region as measure of success; outcomes varied among parks 

 

Research Park Success Indicators

NAME OF PARK

LOCATION

YEAR ESTABLISHED

DIFFERENCE (%)

Ada Research Park

Ada, OK

1960

-0.02

Ann Arbor Technology Park

Ann Arbor, MI

1983

-1.49

Arizona State University Research Park

Tempe, AZ

1984

-0.17

Carolina Research Park

Columbia, SC

1983

-0.16

Central Florida Research Park

Orlando, FL

1979

0.72

Charleston Research Park

Charleston, SC

1984

-1.20

Chicago Technology Park

Chicago, IL

1984

1.65

Clemson Research Park

Clemson, SC

1984

0.38

Connecticut Technology Park

Storrs, CT

1982

3.18

Cornell Research Park

Ithaca, NY

1951

9.48

Cummings Research Park

Huntsville, AL

1962

0.40

Engineering Research Center

Fayetteville, AR

1980

0.02

Great Valley Corporate Center

Malvern, PA

1974

0.08

Innovation Center and Research Park

Athens, OH

1978

1.94

Interstate Business Park

Tampa, FL

1983

-1.05

Johns Hopkins University Research Park

Baltimore, MD

1984

-0.64

Langley Research & Development Park

Newport News, VA

1966

-8.80

Maryland Science and Technology Center

Adelphi, MD

1982

1.44

Massachusetts Biotechnology Research Park

Worcester, MA

1984

3.48

Miami Valley Research Park

Kettering, OH

1981

0.11

Morgantown Industrial & Research Park

Morgantown, WV

1973

0.24

RTP DIFFERENCE is 4.45; DIFFERENCE is employment growth in park region minus employment growth in control counties after park opens.

Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

What makes parks "successful?"

Regression analysis of 70 parks (DIFF on explanatory variables and a hazards model), and case studies of 3 parks (RTP, Stanford, Utah) indicated the following common success factors:

 

  • -  

    parks had marketing and development strategy appropriate for region's resources and culture

  • -  

    parks provided services/infrastructure consistent with tenants' needs

  • -  

    park businesses and nearby university connected in meaningful ways

  • -  

    there was visionary leadership and cooperation

  • -  

    there were deep pockets and patience

  • -  

    there was good timing and good luck

The Research Triangle phenomenon

 

  • The region in 1959/early 1960s
    •  traditional, low wage manufacturing
    •  universities were regional
    •  severe brain drain as a consequence
    •  strategic location at doorstep of "new south"
    •  large tracts of centrally located land
    •  enlightened leaders from government and business: Sanford, Hodges, Guess
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

The Research Triangle phenomenon

 

  • Strategic decisions in park development
    •  get government anchors
    •  get blue chip corporate anchor; branch plant location as regional HQ
    •  sell land with covenants
    •  provide high level of services
    •  make sure universities have meaningful input in governance

RTP has used relatively little government assistance

The Research Triangle phenomenon

One out of 4 jobs created in the region between 1959-1990 traced to park (almost 60,000). INCLUDES:

 

  •  jobs in park businesses (>30K, many would not have been there otherwise)
  •  jobs created via spending multiplier from induced jobs in the park
  •  jobs created in businesses that provide goods and services to induced businesses in the park
  •  jobs in companies spun off from park businesses, and through that multiplier

We did not count jobs in businesses that moved to region not to be in park, but because of reputation of region, due to park

Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

The Research Triangle phenomenon

 

  • The region in 1998
  •  high tech employment in universities, labs, hospitals gives region one of highest ratios of Ph.D.s per capita
  •  three research universities are nationally ranked
  •  brain drain is now brain draw
  •  considerable volume of spin-off activity from industry and universities
  •  region is fast growing; 1.2 million population

Spin-offs

 

Recent research identified a total of 32 high-technology spin-offs from North Carolina universities between 1972 and 1997. Sixteen of those taken place since 1991, implying a considerable increase in spin-off activity in recent years, though trend is difficult to assess since older spin-offs are more difficult to identify. Unsurprisingly, the state's three largest research universities, UNC-CH, Duke, and NCSU, generated almost all the spin-offs, and most were located in the Research Triangle area.

Spin-off/start-up activity from industry comes from high-level scientists and engineers let go in restructuring. . . having severance, pensions, savings, and real estate to use as seed capital

Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

S&T parks worldwide

Sample of S&T parks elsewhere:

 

  • South Africa (4)
  • China (8)
  • Japan (7)
  • Thailand (2)
  • Russia (11)
  • Canada (18)

 

  • Finland (10)
  • France (53)
  • Italy (11)
  • United Kingdom (44)
  • Australia (15)
  • Brazil (3)

These countries differ widely in their levels of economic development

Principles: Knowledge Along the Economic Development Continuum

 

Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×

Policy: Services Along the Economic Development Continuum

 

Lessons for Sandia

 

  •  With proliferation of parks, it may be difficult to achieve success in conventional terms
  •  Park may help establish region as growth pole, substituting for urbanization economies
  •  Planners need to heed lessons from successes:
  •  parks had marketing and development strategy appropriate for region's resources and culture
  •  parks provided services/infrastructure consistent with tenants' needs
  •  there was visionary leadership and cooperation
  •  there were deep pockets and patience
  •  there was good timing and good luck
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 92
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 93
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 94
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 95
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 96
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 97
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 98
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 99
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 100
Suggested Citation:"B. Overheads on the Research Triangle Experience." National Research Council. 1999. Industry-Laboratory Partnerships: A Review of the Sandia Science and Technology Park Initiative. Washington, DC: The National Academies Press. doi: 10.17226/9661.
×
Page 101
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The Sandia National Laboratories asked the Board on Science, Technology, and Economic Policy (STEP) to hold a one-day symposium to review Sandia's proposal to develop a science and technology park. In light of the importance of industry-laboratory cooperation for the STEP Board's project on Government-Industry Partnerships for the Development of New Technologies, the Board convened a workshop bringing together executive branch officials, congressional staff, representatives from the private sector, and regional economists to discuss the Sandia S&T park initiative. The Sandia S&T Park, which Sandia National Laboratories, the City of Albuquerque, and the State of New Mexico are jointly developing, is a 285 acre site located adjacent to Sandia National Laboratories. Groundbreaking for the park took place in May, 1999.

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