Table Of ContentBest Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
Charles W. Wessner, Editor
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
Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
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Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
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Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
Committee on Competing in the 21st Century:
Best Practice in State and Regional Innovation Initiatives*
Mary L. Good (NAE), Chair W. Clark McFadden II
Dean Emeritus, Donaghey College Senior Counsel
of Engineering and Information Orrick, Herrington & Sutcliffe LLP
Technology
Special Advisor to the Chancellor David T. Morgenthaler
for Economic Development Founding Partner
University of Arkansas Morgenthaler Ventures
at Little Rock
Edward E. Penhoet (IOM)
Michael G. Borrus Director
Founding General Partner Alta Partners
X/Seed Capital Management
Tyrone C. Taylor
William C. Harris President
President and CEO Capitol Advisors
Science Foundation Arizona on Technology, LLC
*As of May 2013
v
Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
PROJECT STAFF
Charles W. Wessner Sujai J. Shivakumar
Study Director Senior Program Officer
McAlister T. Clabaugh David E. Dierksheide
Program Officer Program Officer
David S. Dawson Thomas R. Howell
Senior Program Assistant Consultant
vi
Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
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:
Alan M. Garber (IOM)
Paul L. Joskow, Chair
Provost
President
Harvard University
Alfred P. Sloan Foundation
Ralph E. Gomory (NAS/NAE)
Ernst R. Berndt
Research Professor
Louis E. Seley Professor
Stern School of Business
in Applied Economics
New York University
Massachusetts Institute
of Technology
John L. Hennessy (NAS/NAE)
President
Jeff Bingaman
Stanford University
Former U.S. Senator, New Mexico
U.S. Senate
William H. Janeway
Managing Director
John Donovan
and Senior Advisor
Senior Executive Vice President
Warburg Pincus, LLC
AT&T Technology
and Network Operations
AT&T Inc.
Ellen Dulberger
Managing Partner
continued
Ellen Dulberger Enterprises, LLC
*As of May 2013.
vii
Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
Richard K. Lester Kathryn L. Shaw
Japan Steel Industry Professor Ernest C. Arbuckle Professor
Head, Nuclear Science of Economics
and Engineering Graduate School of Business
Founding Director, Industrial Stanford University
Performance Center
Massachusetts Institute Laura D'Andrea Tyson
of Technology S.K. and Angela Chan Professor
of Global Management
David Morgenthaler Haas School of Business
Founder University of California-Berkeley
Morgenthaler Ventures
Harold R. Varian
Luis M. Proenza Chief Economist, Google Inc.
President Professor Emeritus, University
University of Akron of California-Berkeley
William J. Raduchel Alan Wm. Wolff
Independent Investor/Director Senior Counsel
McKenna Long & Aldridge LLP
STEP Staff
Stephen A. Merrill Charles W. Wessner
Executive Director Program Director
Paul T. Beaton David S. Dawson
Program Officer Senior Program Assistant
McAlister T. Clabaugh David E. Dierksheide
Program Officer Program Officer
Aqila A. Coulthurst Sujai J. Shivakumar
Program Coordinator Senior Program Officer
viii
Copyright © National Academy of Sciences. All rights reserved.
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century
Contents
PREFACE xi
EXECUTIVE SUMMARY 1
I. INNOVATION AND PLACE-BASED ECONOMIC
DEVELOPMENT 5
Chapter 1: Innovation in the States 7
Parameters of this Study, 9
State-led Development of Innovation Clusters, 11
Identifying Best Practices, 15
Overview of the Report, 24
Chapter 2: State and Regional Development
and Clustering 27
Natural Development Advantages Enjoyed
by States and Regions, 28
The Innovation Cluster Phenomenon, 31
“History Matters”—Part Dependency
and Path Creation, 37
The Importance of Entrepreneurship, 43
Lessons Learned, 45
II. THE CATALYTIC ROLE OF PUBLIC PURPOSE
ORGANIZATIONS 47
Chapter 3: Universities as Innovation Drivers 49
Universities and Industrialization, 54
The Emergence of Cooperative Research Centers, 57
Challenges Facing Public Research Universities, 57
Harnessing the University of Hawaii
as an Engine of Growth, 59
The Growing Role of Community Colleges, 65
Lessons Learned, 68
ix
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