Regional Economic Vitality Conversations Summary Report Briefing For Governor Schwarzenegger’s Cabinet

Presented by the California Center for Regional LeadershipIn Cooperation with Regional Civic Leadership Organization Sponsors

March 3, 20051:00 – 4:00 p.m.

Made possible through generous support from Pacific Gas and Electric Company and Bank of America

WELCOMEWELCOME

Regional Economic Vitality

Briefing – Action Agenda

California Center for Regional LeadershipCalifornia Center for Regional Leadership

March 3, 2005

Innovation, Investment, Collaboration

Governor Schwarzenegger elected – makes economy a priority

Secretary Sunne Wright McPeak convenes first statewide Economic Vitality Conversation—December 2003

California Center for Regional Leadership (CCRL) asked to convene Regional Economic Vitality Conversations

Regional Economic Vitality Conversations

Antelope Valley Central San Joaquin Inland Empire Northern Central Coast Northern San Joaquin Orange County Sacramento Southland Silicon Valley San Francisco Bay Area Tri-Valley San Diego

Innovation, Investment, Collaboration

Conversations convened by CCRL’s network of Regional Collaboratives, with many local partners

Conversations facilitated by the Cabinet, framed by economic overview, and addressed 3 questions:

- What state actions will have the most immediate impact on California’s economic recovery?

- What state actions will result in the most significant long-term improvement to California’s economic competitiveness and comparative advantage

- How do we best structure an effective partnership between the Regions and the State around economic strategy?

Regional Conversations: Presenting Economists

Jack Kyser, Sr. VP & Chief Economist: Los Angeles EDC Christopher Thornberg, Senior Economist: UCLA Forecast Joe Hurd, Senior Economist: UCLA Anderson Business Forecast

Project Doug Henton, President: Collaborative Economics Stephen Levy, Dir. & Sr. Econ: Ctr. for Continuing Study of the CA

Econ. Michael Locke, President & CEO: San Joaquin Partnership Robert Fountain, Director: Sacramento Regional Research

Institute Don Perry, Senior Economist: California Labor & Workforce Dev.

Agency John Lehn, CEO: Kings County Economic Development Corporation Anil Puri, Dean, College of Bus. & Econ: CSU Fullerton Marney Cox, Chief Economist: San Diego Association of

Governments John Husing, Vice President: Economics & Politics, Inc.

California Regional Economies Project

California Regional Economies Project, a partnership between the California Workforce Investment Board and the California Economic Strategy Panel, provides systematic analysis of distinct regional economies

Collaborative Economics Center for Continuing Study of the California

Economy

Regional EVC Reports

Regional reports, economist presentations, and Conversation notes can be found on CCRL’s website: www.calregions.org

From Dialogue to an Action Agenda

Recommendations synthesized and reviewed in 3 cross-regional meetings (San Francisco, Stockton, Orange County) with economic development experts

Commonly shared issues lifted up into “Innovation, Investment, Collaboration” report

Bringing it all back together: Cabinet briefing March 3, 2005

A Framework for California’s Prosperity

The Building Blocks of California’s Comparative Economic Advantage

State of the State’s Economy

Modest economic recovery underway Economic restructuring is taking place in

every region and requires continuous attention

California is a global leader in key sectors

State government has a critically important role to play to maintain and enhance leadership

The key framework for State action:

Innovation, Investment, Collaboration

Competing on Innovation – the Competing on Innovation – the “Complete Business Climate”“Complete Business Climate”California is not a low-cost state and cannot compete California is not a low-cost state and cannot compete by lowering costs aloneby lowering costs alone

To compete and raise standard of living: State needs a To compete and raise standard of living: State needs a “pro-innovation” strategy“pro-innovation” strategy

Yield: productivity growth across all industries-- leading Yield: productivity growth across all industries-- leading to increased investment , return on investment and to increased investment , return on investment and prosperityprosperity

State’s role: State’s role:

- Create fair & balanced regulatory & tax policiesCreate fair & balanced regulatory & tax policies- Support essential investments in human and physical Support essential investments in human and physical

infrastructure – the key production factors of people, research infrastructure – the key production factors of people, research and technology, and placeand technology, and place

The Complete Business The Complete Business Climate ApproachClimate Approach

Action Agenda Framework:Action Agenda Framework:Key ThemesKey Themes

Emphasize and promote the positives -Emphasize and promote the positives -California Assets California Assets

Understand fundamental changes in Understand fundamental changes in growth and demographics growth and demographics

Retain and grow current employers as Retain and grow current employers as the first priority -- by improving the the first priority -- by improving the business climatebusiness climate

Action Agenda Framework:Action Agenda Framework:Key ThemesKey Themes

Focus strategically on important regional Focus strategically on important regional and cross-regional “traded” industry and cross-regional “traded” industry clusters clusters

Invest in the workforce (short- and long-Invest in the workforce (short- and long-term)term)

Invest in housing, transportation, and Invest in housing, transportation, and other important infrastructure, including other important infrastructure, including quality communitiesquality communities

Action Agenda Framework:Action Agenda Framework:Key ThemesKey Themes

Government streamlining : focus on customer Government streamlining : focus on customer service and accountabilityservice and accountability

Government innovation: remove barriers to Government innovation: remove barriers to governmental efficiencygovernmental efficiency

Government stability and sound decisions: Government stability and sound decisions: solve the structural budget deficit and reform solve the structural budget deficit and reform state-local fiscal relationshipstate-local fiscal relationship

Government alignment: state policies and Government alignment: state policies and investments must “fit” regional differences, investments must “fit” regional differences, needs and opportunitiesneeds and opportunities

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

Marketing CaliforniaMarketing California- Build on assetsBuild on assets- Communicate re: problem solvingCommunicate re: problem solving- Focus on existing businesses, especially small Focus on existing businesses, especially small

businesses – the source of most job creationbusinesses – the source of most job creation- Attract and retain intellectual assets -- the source Attract and retain intellectual assets -- the source

of innovationof innovation- Support and align with local and regional marketing Support and align with local and regional marketing

effortsefforts- Goal: Sustainable, competitive industries and good Goal: Sustainable, competitive industries and good

quality jobs with good benefitsquality jobs with good benefits

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

Critical IndustriesCritical Industries- Ongoing data/analytic process to identify growing Ongoing data/analytic process to identify growing

clusters of opportunityclusters of opportunity- Use data to guide state policies and investmentsUse data to guide state policies and investments- Develop a State R&D StrategyDevelop a State R&D Strategy- Promote collaboration with and among research Promote collaboration with and among research

institutions and other innovation partnersinstitutions and other innovation partners- Reinstate and better target the Manufacturing Reinstate and better target the Manufacturing

Investment Tax (MIC) Credit; assess cap on MIC Investment Tax (MIC) Credit; assess cap on MIC and R&D Tax Creditsand R&D Tax Credits

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

Education and Workforce InvestmentEducation and Workforce Investment- Develop a “seamless” workforce Develop a “seamless” workforce

development system, from K-12 to post-doc development system, from K-12 to post-doc and lifelong learningand lifelong learning

- Identify critical skills gaps for key industries; Identify critical skills gaps for key industries; target state funds for job and career target state funds for job and career advancement advancement

- Promote public-industry partnerships to Promote public-industry partnerships to meet industry and worker training needsmeet industry and worker training needs

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

Growth and Infrastructure Planning Growth and Infrastructure Planning and Investmentand Investment

- Create regional infrastructure plans linking jobs, housing, Create regional infrastructure plans linking jobs, housing, transportation, ”green” space and land usetransportation, ”green” space and land use

- Use these plans to determine State funding prioritiesUse these plans to determine State funding priorities- Reward jurisdictions for collaboration on regional planning and Reward jurisdictions for collaboration on regional planning and

developmentdevelopment- Improve CEQA for better housing and development outcomes Improve CEQA for better housing and development outcomes

while maintaining high environmental qualitywhile maintaining high environmental quality- Explore and promote options for innovative local “self help” Explore and promote options for innovative local “self help”

measures for infrastructure financingmeasures for infrastructure financing

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

HousingHousing- Take all measures necessary to assure a Take all measures necessary to assure a

sufficient long-term supply of decent sufficient long-term supply of decent housing, affordable to all income levelshousing, affordable to all income levels

- Address prevailing wage rates for Address prevailing wage rates for construction – determine and use residential construction – determine and use residential rates for residential developmentrates for residential development

- Support fiscal reform to encourage housing Support fiscal reform to encourage housing productionproduction

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

Economic Leadership NetworkEconomic Leadership Network- Collaborate with and support the Regions to Collaborate with and support the Regions to

prepare and implement economic strategiesprepare and implement economic strategies- On-going link among Economic Strategy On-going link among Economic Strategy

Panel, Workforce Investment Board, Panel, Workforce Investment Board, Commission on Jobs and the Economy, and Commission on Jobs and the Economy, and other state entities -- and with Regionsother state entities -- and with Regions

- Leverage existing network of regional and Leverage existing network of regional and local organizations and explore the potential local organizations and explore the potential for more formal partnershipsfor more formal partnerships

Action Agenda Framework:Action Agenda Framework: Specific Recommendations Specific Recommendations

Federal AgendaFederal Agenda- Organize California Congressional Organize California Congressional

Delegation for strong leadership and Delegation for strong leadership and coordinated efforts to obtain California’s fair coordinated efforts to obtain California’s fair share of funding and appropriate treatment in share of funding and appropriate treatment in federal regulationsfederal regulations

- In particular, State leaders should work with In particular, State leaders should work with Delegation to promote federal research Delegation to promote federal research funding for California – to leverage our funding for California – to leverage our intellectual infrastructureintellectual infrastructure

The Complete Business The Complete Business Climate ApproachClimate Approach

We are your PartnersWe are your Partners

What Makes a Region Competitive? Highlighting our Innovation Assets

• San Diego Regional Prosperity Index – Competing on the Three E’s – Economy, Environment (Place), Equity (People)

• Economic Opportunity in the Sacramento Region – Biotechnology/Life Sciences and U.C. Davis Partnerships

• University of California and NASA Partnerships – Bio-Info-Nano Research & Development Institute

Sustainable CompetitivenessSustainable Competitiveness

The Three “E” ConceptThe Three “E” Concept

Sustainable Competitiveness requires a Sustainable Competitiveness requires a balance of:balance of:− EEconomyconomy

− EEnvironmentnvironment

− EEquityquity All three are important for Quality of LifeAll three are important for Quality of Life

Strengths of Three E ApproachStrengths of Three E Approach

Consensus on QOL essential Elements Consensus on QOL essential Elements No internal conflict between ElementsNo internal conflict between Elements Maintaining status quo not acceptableMaintaining status quo not acceptable Focus political will and initiate actionsFocus political will and initiate actions

Economic Element - 2000divergence from US score

NORFOLK

MIAMI

TAMPA

SACRAMENTO

USA

PHOENIX

PITTSBURGH

ATLANTA

BALTIMORE

ORANGE

HOUSTON

PORTLAND

RALEIGH

BOSTON

WASHINGTON

AUSTIN

DENVER

MINNEAPOLIS

SEATTLE

SAN JOSE

SAN FRANCISCO

SAN DIEGO - 10th

-80 -60 -40 -20 0 20 40 60 80

Below US score

Above US score

BETTERWORSE

Environment Element - 2000divergence from US score

BOSTON

WASHINGTON

BALTIMORE

HOUSTON

USA

SAN JOSE

PITTSBURGH

ATLANTA

SACRAMENTO

TAMPA

ORANGE

MINNEAPOLIS

RALEIGH

MIAMI

SEATTLE

PHOENIX

NORFOLK

PORTLAND

SAN FRANCISCO

DENVER

AUSTIN

SAN DIEGO - 3rd

-25 -20 -15 -10 -5 0 5 10 15 20 25

Below US score

Above US score

BETTERWORSE

Equity Element - 2000divergence from US score

SAN FRANCISCO

PORTLAND

PHOENIX

HOUSTON

SACRAMENTO

ORANGE

DENVER

BALTIMORE

SEATTLE

USA

MINNEAPOLIS

MIAMI

RALEIGH

TAMPA

SAN JOSE

BOSTON

AUSTIN

WASHINGTON

ATLANTA

NORFOLK

PITTSBURGH

18th - SAN DIEGO

-30 -20 -10 0 10 20 30 40

Below US score

SAN DIEGO

San Diego

Above US score

BETTERWORSE

Combining The EsCombining The Es

Each “E” is important, but the strongest Each “E” is important, but the strongest regions do well regions do well in all three…in all three…

Sustainable Competitiveness-2000divergence from US score

MIAMI

PHOENIX

TAMPA

SACRAMENTO

USA

NORFOLK

HOUSTON

BALTIMORE

PITTSBURGH

BOSTON

SAN FRANCISCO

PORTLAND

SAN JOSE

WASHINGTON

ATLANTA

ORANGE

SEATTLE

DENVER

MINNEAPOLIS

RALEIGHAUSTIN

SAN DIEGO - 9th

-40 -30 -20 -10 0 10 20 30 40

Below US score

Above US score

BETTERWORSE

SUMMARYSUMMARY

Evaluation tool is a work in progressEvaluation tool is a work in progress Common theme among California regionsCommon theme among California regions

www.sandag.org

Our Economic Opportunity in the Greater Sacramento Region:

Focus on Biotechnology/Life Sciences

Our Economic Opportunity in the Greater Sacramento Region:

Focus on Biotechnology/Life Sciences

Judith A. Kjelstrom, PhD Director, UC Davis Biotechnology Program

Director, Advanced Degree Program for Corporate EmployeesLecturer in Microbiology and Molecular & Cellular Biology

www.biotech.ucdavis.eduMarch 3, 2005

To the Regional Economic Vitality Briefing:

To the Regional Economic Vitality Briefing:

There is nothing so powerful as an idea whose time has come.

Victor Hugo

• Biotechnology is no longer a fledging technology….

• It is a economic driving force in the region and the state, as well as the world.

Additional background materials are in packet

California is the sixth-largest economy in the world. The state is the arguable biotechnology leader with clusters in the Bay Area and San Diego. The public and private university systems are some of the best in the nation. California universities oversee $3 billion in academic R&D annually. California has more degreed professionals, managers, and engineers than any other state.

California is the sixth-largest economy in the world. The state is the arguable biotechnology leader with clusters in the Bay Area and San Diego. The public and private university systems are some of the best in the nation. California universities oversee $3 billion in academic R&D annually. California has more degreed professionals, managers, and engineers than any other state.

The Greater Sacramento Region is poised to become a Mixed Biotech/Life Science Cluster.

As of 2004:

Over 100,000 Jobs!per EDD

~100 Life Sciences companies exist in the Valley

UC is a Key Player in these Clusters: Provide Intellectual & Human CapitalUC is a Key Player in these Clusters: Provide Intellectual & Human Capital

• The recent UC Impact Study 2003: California’s Future: It Starts Here demonstrates the economic impact on California.– Through 2011, UC’s contribution is estimated to

total more than 34,000 undergraduates in science and engineering jobs.

– The impact of UC grads in industry clusters is estimated at $887 million in Gross Regional Product for 2002 and $7.4 billion between 2002-2011.

– The value and economic contribution of UC related start-ups and spin-offs are great. California headquartered companies founded by UC graduates, had combined revenues exceeding $1.2 billion in 2001.

UC Davis Economic Impact Brochure is included in packets

UC Davis has Strong Intellectual Capital in the Biosciences

UC Davis has Strong Intellectual Capital in the Biosciences

• UC Davis Genome Center in the new 6-story Genome and Biomedical Sciences Facility

• Center for Biostabilization – blood products• Center for Biophotonics Science and Technology• UC Davis Cancer Center – NCI designated cancer

facility• California National Primate Research Center• Center for Comparative Medicine & Mouse Biology

Program• Center for Metabolomics• National Center of Excellence in Nutritional

Genomics –focus on minority health• M.I.N.D Institute – focus on autism• UC Systemwide Biotechnology Research &

Education Program (UCBREP)

Interdisciplinary Collaboration is a Hallmark of UC Davis Teaching and Research

UC Davis PartnershipsUC Davis Partnerships• Education/Training

– CSU, Sacramento, local Colleges, and K-12 schools

• Technology Transfer– Office of Research: Technology-

Industry Alliances (TIA) – UC Davis CONNECT

– GSM’s Big Bang Business Plan Competition

– SARTA (Sacramento Area Regional Technology Association) www.sarta.org

– UC Discovery Grants– Collaborations with other academic

institutions such as UC Merced, LLNL, UCSF, etc.

• UCD Research Park & McClellan Park– To promote research collaborations– To launch spin-off companies

– Division of Biological Sciences• Numerous outstanding majors: Plant Biology;

Biochemistry; Molecular & Cellular Biology; Genetics; Microbiology…

– College of Agricultural & Environmental Sciences • Undergraduate Biotechnology major is one of the fastest

growing majors on campus. – School of Medicine– School of Veterinary Medicine– College of Engineering

• Biophotonics and Biomedical Engineering are examples of cross-disciplinary areas.

The Strength of UC Davis is in the Life Sciences

The Strength of UC Davis is in the Life Sciences

The Designated Emphasis in Biotechnology is an innovative program for

PhD students (www.deb.ucdavis.edu)

The UC Davis Biotechnology Program is active in Education & Training

The UC Davis Biotechnology Program is active in Education & Training

• Co-PI on an NSF grant-Tools to Teach Molecular Biology & Bioinformatics “Train the Trainers”– Courses for Community College and AP High School Biology teachers– Joint project with American River College

• Coordinate the NIH Biotechnology Training Grant & DEB (Designated Emphasis in Biotechnology) www.deb.ucdavis.edu– Interdisciplinary training for predoctoral graduate students – Industry internships (3-6 months) & corporate fellowships

• The Advanced Degree Program (ADP) for corporate employees– A PhD program for the working professional

• Member of Biotech Advisory Committees– California State University, Sacramento– American River, Solano and Merced Community Colleges– Davis Senior High School

Biotech Workforce NeedsBiotech Workforce Needs

• The U.S. is moving toward a knowledge-based economy that requires higher skills.

• According to the Economic Development Department, California’s biotechnology firms currently employ 100,000 workers: – 14% are vocational and community college grads, 50%

BS, 17% MS and 19% PhD (Steven Dahms, CSU). • One estimate is that the Bay Area biotechnology companies

will need 150,000 more biotechnology workers by 2015 (Sakai and Markland Day, City of Fremont: Life Sciences Industry Scoping Report, Sept. 2004, p 22)

Where will we find Biomanufacturing Technicians?

Where will we find Biomanufacturing Technicians?

• Hundreds of biotech jobs in Alameda, Contra Costa and Solano counties go begging due to a lack of qualified talent; the most-difficult positions to fill involve skilled technicians with two years of community college or the equivalent laboratory training, who can expect earning $35,000 per year. (“A Critical Analysis of the Local Biotechnology

Industry Cluster in Alameda, Contra Costa & Solano Counties,” 2002.)

Genentech (Vacaville’s Manufacturing Facility) is doubling in size in the next 4 yrs and will hire close to 600 new workers!

(Barbara Smith, The Reporter, July 16, 2004)

Training Facilities are NeededTraining Facilities are NeededWorkforce training in biomanufacturing is a critical need, especially for

displaced workers. • UC Davis (in consultation with Solano Community College and CSU,

Sacramento) has developed a pilot plant proposal – CIBER: California Institute for Bioprocess Education and Research.– Multi-disciplinary Center for advanced bioprocess training that includes

pilot-scale equipment for all unit operations common in the production of purified recombinant proteins and other biological products from microbial fermentation and cell culture.

– Will be used as a training facility for biochemical engineers and scientists who will be employed in the pharmaceutical and agricultural biotechnology industries, as well as a continuing education resource for the West Coast Biotech industry.

– Would also allow strategic training collaborations to be established between the University of California and the surrounding community colleges (especially Solano Community College that also has an established program for training the biotechnology workforce) and the California State University system.

• Investment is needed through innovative partnerships: industry, federal, and state to raise $4-5M.

If We Build it; Will the Students Come??

If We Build it; Will the Students Come??

• Biotech is Hot, but many students don’t know about it!

• We must reach out to the K-12 teachers to help.

• We must instill the Ah-Ha experience early (by 5th grade)…. Hands-on learning, discovery-based labs, guest instructors from industry or university, mentoring and job shadowing. Before- or After-School Science Programs.

• Community colleges can offer general education courses on Biotech Issues to hook undeclared majors. It can also educate the community about Biotech.

See the NSF report on science education: www.nsf.gov/sbe/src/seind02/start.htm

Call to Action for the Biotech WorkforceCall to Action for the Biotech Workforce

• Increase the effectiveness of publicly funded training programs;

• Promote alternative education and training opportunities;

• Keep older workers engaged in the labor force; • Consider changing immigration policies to better

meet future workforce needs;• Need more coordination between academia and

industry in creating relevant curriculum Create Regional Life Science Working Groups

THANK YOU

• Please contact me at: email: jakjelstrom@ucdavis.edu

telephone: 530-752-8228

University of California / University of California / NASA PartnershipsNASA Partnerships

Dr. Robert C. MillerDr. Robert C. MillerMarch 3, 2005March 3, 2005

California’s Financial CrisisCalifornia’s Financial CrisisContributing FactorsContributing Factors

Loss of high revenues from capital gains on Loss of high revenues from capital gains on stock options stock options widely used in Silicon Valley to increase productivity widely used in Silicon Valley to increase productivity

and innovationand innovation Job losses in Silicon Valley totaled 211,740 from Job losses in Silicon Valley totaled 211,740 from

the peak in employment in 2001 to 2004the peak in employment in 2001 to 2004 The State’s emphasis must be on job creation The State’s emphasis must be on job creation

and wealth creationand wealth creation

Economic Development Economic Development Contributions Universities and GovernmentContributions Universities and Government

The key to job creation and wealth creation in California is The key to job creation and wealth creation in California is innovation and technology developmentinnovation and technology development

Research Universities and Federal government laboratories Research Universities and Federal government laboratories significantly contribute to state and regional economic significantly contribute to state and regional economic development both directly and though creation of venture development both directly and though creation of venture opportunitiesopportunities Venture capital in Silicon Valley 4Q 2004 was $1.7B representing 32% Venture capital in Silicon Valley 4Q 2004 was $1.7B representing 32%

of the national venture capital investment (ref. Mercury News, February of the national venture capital investment (ref. Mercury News, February 13, 2005)13, 2005)

NASA Ames economic impact in California is estimated at $1B NASA Ames economic impact in California is estimated at $1B annually and creation of 10,000 jobs (ref. Economic Benefit Study, annually and creation of 10,000 jobs (ref. Economic Benefit Study, BAE, July 2004)BAE, July 2004)

Compounding the impact of universities and federal Compounding the impact of universities and federal laboratories through innovative partnerships creates laboratories through innovative partnerships creates expanded economic contributions expanded economic contributions ““The whole is greater than the sum of its parts”The whole is greater than the sum of its parts”

UCSC/NASA ARC PartnershipUCSC/NASA ARC PartnershipUniversity Affiliated Research Center (UARC)University Affiliated Research Center (UARC)

Partnership between NASA Ames and UCSC to enhance Partnership between NASA Ames and UCSC to enhance

and assist in NASA’s Research Missionand assist in NASA’s Research Mission NASA Ames $700M R&D program/2500 FTE on-site workforce/$2B land NASA Ames $700M R&D program/2500 FTE on-site workforce/$2B land

assetsassets $330M ten year performance-based task order research contract$330M ten year performance-based task order research contract Conduct world class research aligned to mission and programs of Conduct world class research aligned to mission and programs of

AmesAmes UCSC manages the UARC contract for UC SystemUCSC manages the UARC contract for UC System

Serves as a portal to entire UC System for AmesServes as a portal to entire UC System for Ames Conducts work at Ames, NASA Research Park and UC System wideConducts work at Ames, NASA Research Park and UC System wide Provides access to faculty, staff and facilities at campuses and national Provides access to faculty, staff and facilities at campuses and national

labslabs Creates opportunities for new partnershipsCreates opportunities for new partnerships

Innovative research collaborations between UC and AmesInnovative research collaborations between UC and Ames Development of new research capabilities in the NASA Research ParkDevelopment of new research capabilities in the NASA Research Park Build industry relationships in Silicon Valley for UC and NASABuild industry relationships in Silicon Valley for UC and NASA

UCSC/NASA ARC PartnershipUCSC/NASA ARC PartnershipBio-Info-Nano Research & Development Institute Bio-Info-Nano Research & Development Institute

(BIN-RDI)(BIN-RDI)

A proposed partnership of government, academia A proposed partnership of government, academia and industry to form an exemplar institute in the and industry to form an exemplar institute in the Silicon Valley with significant national influence Silicon Valley with significant national influence on the progression of nano-science, technology, on the progression of nano-science, technology, education and socio-economic policyeducation and socio-economic policy Research architecture tailored to increase the Research architecture tailored to increase the

effectiveness of multi-sector R&D investments through effectiveness of multi-sector R&D investments through leveraged resources and standardized IP transaction leveraged resources and standardized IP transaction frameworksframeworks

Positioned to exert national influence on nanotechnology Positioned to exert national influence on nanotechnology policy, anticipate societal impacts and influence business policy, anticipate societal impacts and influence business commerce and ethics commerce and ethics

Self-sufficient membership-based business structureSelf-sufficient membership-based business structure Broad regional support for BIN-RDI formationBroad regional support for BIN-RDI formation

Dedicated-UseFacilities

Multi-TenantFacility

PolicyInstitute

EducationPartnerships

ResearchCommons

UARC

UCSC/NASA ARC PartnershipUCSC/NASA ARC PartnershipVenture Center ConceptVenture Center Concept

Multi-sector partnerships focused on increasing the pipeline Multi-sector partnerships focused on increasing the pipeline of emergent technologies available to venture capital of emergent technologies available to venture capital investmentsinvestments Increase the permeability of universities for use-inspired-science and Increase the permeability of universities for use-inspired-science and

science-inspired-use through targeted investmentscience-inspired-use through targeted investment Government mission requirements provide initial technology-use Government mission requirements provide initial technology-use

challengeschallenges Apply the disciplined techniques of venture funding earlier Apply the disciplined techniques of venture funding earlier

in the formation of technical innovation to increase the in the formation of technical innovation to increase the economic effectiveness of the strategic research investmenteconomic effectiveness of the strategic research investment Leveraged, phased investment and critical evaluation Leveraged, phased investment and critical evaluation Resource needs identification, access and infusionResource needs identification, access and infusion Transfer strategy for effective implementationTransfer strategy for effective implementation

Key technology areasKey technology areas Bio-Info-Nano, next generation computing, intelligent systems and Bio-Info-Nano, next generation computing, intelligent systems and

robotics, complex systems design and managementrobotics, complex systems design and management

Fueling Pre-Venture InvestmentFueling Pre-Venture InvestmentLand Asset LeveragingLand Asset Leveraging

Reliance solely on government R&D investment for strategic Reliance solely on government R&D investment for strategic research is inadequateresearch is inadequate

Land Asset Leveraging through public/private partnerships has Land Asset Leveraging through public/private partnerships has the potential to provide continuing revenue to support strategic the potential to provide continuing revenue to support strategic researchresearch NASA projects that development of the NASA Research Park NASA projects that development of the NASA Research Park

will contribute an addition $2.3B in economic output and 29,000 will contribute an addition $2.3B in economic output and 29,000 jobs to California annually at full development (ref. Economic jobs to California annually at full development (ref. Economic Benefits Study, BAE, July 2004)Benefits Study, BAE, July 2004)

BenchmarksBenchmarks Land asset leveraging has been Land asset leveraging has been

successfully employed to support successfully employed to support strategic researchstrategic research

Discovery Parks, Vancouver, B.C.Discovery Parks, Vancouver, B.C. Irvine Company/ UCI Irvine Company/ UCI Mission Bay/UCSF/QB3Mission Bay/UCSF/QB3

State as a PartnerState as a Partner

State government must be actively State government must be actively involved in nurturing R&D partnerships involved in nurturing R&D partnerships that contribute to regional, state and that contribute to regional, state and national economic health and national economic health and development development Supporting not only the R&D relationship but Supporting not only the R&D relationship but

also the more aggressive use of capital assets also the more aggressive use of capital assets for the benefit of research for the benefit of research

Report from Governor Schwarzenegger’s Cabinet

Update on Cabinet Activities and Response to Action Recommendations from Cabinet Members

What’s Next

Where do we go from here? Continued outreach and partnership on

implementation Rural EVC

California Endowment Humboldt Area Foundation

How can we collaborate? Economic Strategy Panel Commission on Jobs and the Economy Inter-Agency Collaboration on A-Team

Regional Economic Vitality Conversations Summary Report Briefing For Governor Schwarzenegger’s Cabinet

Presented by the California Center for Regional LeadershipIn Cooperation with the Regional Civic Leadership Organizational Sponsors

March 3, 20051:00 – 4:00 p.m.

Made possible through generous support from Pacific Gas and Electric Company and Bank of America

Thank You!Thank You!