Creating Regional Innovation Clusters:Lessons from the U.S. Experience

ByRay Smilor, PhD

Schumacher Fellows in Innovation and TechnologyProfessor of Professional Practice

Neeley School of BusinessTexas Christian University

Senior Fellow, CFE

Agenda

I. The U.S. Regions– Research Triangle Park, North Carolina– Austin, Texas– San Diego, California

II. Framework for Cluster DevelopmentIII. Lessons from the U.S. Experience

I. The U.S. Regions

* San Diego, CA* San Diego, CA

*Austin, TX*Austin, TX

*Research Triangle Park, NC*Research Triangle Park, NC

I. The U.S. Regions

Research Triangle Park, NC•1950 – present•3 leading research universities•Spin-out companies•Culture of innovation

I. The U.S. Regions

Austin, Texas•1970s – present•Unique culture (Keep Austin Weird)•Collaborative environment•Creation of venture capital

I. The U.S. Regions

San Diego, California•1960 – present•Creation of research university•Focus on life sciences/defense•Vibrant tourism industry

II. Framework for Cluster Development

RegionalCluster

II. Framework for Cluster Development

RegionalCluster

TalentVisionary Leadership

(internal)Entrepreneurs

(external)

PartnershipsCorporations

Catalyst OrganizationsLocal/State Government

Incendiary Event

Mobilization of Business,

Academia, Government

II. Framework for Cluster Development

RegionalCluster

TalentVisionary Leadership

(internal)Entrepreneurs

(external)

PartnershipsCorporations

Catalyst OrganizationsLocal/State Government

Incendiary Event

Mobilization of Business,

Academia, Government

Culture for InnovationRole Models

Tolerance/DiversityNetworks

Capital

II. Framework for Cluster Development

RegionalCluster

TalentVisionary Leadership

(internal)Entrepreneurs

(external)

PartnershipsCorporations

Catalyst OrganizationsLocal/State Government

Incendiary Event

Mobilization of Business,

Academia, Government

Culture for InnovationRole Models

Tolerance/DiversityNetworks

Capital }Outcomes

Technology DevelopmentTech Transfer

Job GenerationWealth Creation

Recognition/Prestige

III. Lessons from the U.S. Experience

1. Visible, visionary, and passionate leadership– Bridged worlds of

business/academia/government– Brought credibility to efforts– Exerted influence due to their stature, success

and personal persuasiveness

III. Lessons from the U.S. Experience

2. An incendiary event– Ignited coordinated strategy

• RTP Structure• Recruitment of major company• Launch of new university

– Brought disparate groups/interests together– Generated excitement

III. Lessons from the U.S. Experience

3. A catalyst organization– Unconventional organization to catalyze

community• Council for Entrepreneurial Development• IC2 Institute• CONNECT

– Built networks among investors, entrepreneurs, academics, service providers

– Provided training, conferences, competitions

III. Lessons from the U.S. Experience

4. The role of corporations– Drawn to region by high quality of life, tax

incentives, access to talent– Brought technical expertise, resources,

experienced managers– Partnered with universities

III. Lessons from the U.S. Experience

5. Compelling role models– Identified, recognized, celebrated people worthy

of emulation– Reflected values of region– Showed success could be achieved – provided

information, insight, inspiration

III. Lessons from the U.S. Experience

6. Increasing financial base– Funding difficult at the start– Chicken or egg – money or deal– Growth of business angels and venture capital

III. Lessons from the U.S. Experience

7. Culture for innovation– Promotion of creative class– Tolerance/diversity– Quality of life