tci 2014 sba’s regional innovation clusters program
TRANSCRIPT
SBA’s Regional Innovation Clusters ProgramJohn Spears
Clusters in North America
13 November 2014
SBA’s Regional Innovation Clusters Program
John SpearsDirector of Clusters and Skills Initiatives
Agenda
• Cluster Initiative Mission
• SBA’s Work to Date
• Current Results
• Looking Ahead
4Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead
Mission of SBA’s Clusters Program
The ability of small businesses to drive innovation is critical to U.S. competitiveness.
The Small Business Administration Clusters Program connects and enhances innovation hubs so that small businesses can effectively leverage them to commercialize new technologies and expand into new markets, thereby positioning themselves and their regional economies for growth.
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 5
Defining Clustering and Cluster Initiatives
Small Businesses
Entrepreneurs Lenders
Venture Capital
Investors
Gov’t Agencies Community Leadership
Colleges Trade
Associations
Large Contractors
Cluster Initiative
Industry/Sector
Cluster initiatives build off organic clusters by
purposely integrating small, medium and large
companies and universities for business, funding and
research opportunities that create jobs, attract capital
and have long-term, positive economic impact. Its Core
functions:
Serves as a navigator/concierge to connect stakeholders
Maintain governance structure
Provide some in-house technical assistance and rely on outside service
providers
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 6
RICs Play an Important Role in Achieving President Obama’s Jobs Strategy
Regional Innovation Clusters:a core component of this Jobs
Strategy
Launch new ventures and grow existing businesses
Increase the depth and breadth of technical assistance to small businesses
Spur innovation and commercialization of new technologies
Enhance economic development and growth at the regional level
The Administration’s Priorities are focused on the following policy
elements:
Spurring innovation: making it easier and faster to turn new ideas into new jobs and
new businesses
Making the U.S. a magnet for long-term job creation and strengthening the middle class
Investing in place-based economic development
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 7
Three Main Functions of SBA Clusters Program
1. Directly support regional cluster initiatives: At a community level, SBA-funded cluster initiatives measurably connect sector-specific public and private resources to provide small businesses with specialized assistance, mentoring, showcasing, and access to capital.
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Three Main Functions of SBA Clusters Program
1. Directly support regional cluster initiatives: At a community level, SBA-funded cluster initiatives measurably connect sector-specific public and private resources to provide small businesses with specialized assistance, mentoring, showcasing, and access to capital.
2. Convene thought leaders, policy makers, and practitioners: In order to foster healthy innovation ecosystems for small businesses in advanced industries, the program convenes cluster leaders, shares best practices, and encourages collaboration between public and private partners at local, state and national levels.
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 9
Three Main Functions of SBA Clusters Program
1. Directly support regional cluster initiatives: At a community level, SBA-funded cluster initiatives measurably connect sector-specific public and private resources to provide small businesses with specialized assistance, mentoring, showcasing, and access to capital.
2. Convene thought leaders, policy makers, and practitioners: In order to foster healthy innovation ecosystems for small businesses in advanced industries, the program convenes cluster leaders, shares best practices, and encourages collaboration between public and private partners at local, state and national levels.
3. Evaluate performance: Fact based and data driven analysis drives investment.
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 10
53
B
8
5
1
6
7
9
4
2
10
3
36
30
32
29
28
27
34
37
38
39
26
33
22
24
35
21
31
40
23
20
19
18 17
16
15
11
1213
41
5251
50
49
48
47
46
45
44
4342
CA25
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SBA’s Pilot Contract Based Clusters (10), $14.7M• SBA
Jobs Accelerator Collaboration Clusters (20), $37M• EDA, ETA, SBA
Advanced Manufacturing Jobs Accelerator Collaboration Clusters (10), $20M • EDA, ETA, NIST, DOE, SBA
Rural Jobs Accelerator Collaboration Clusters (13), $9M• EDA, USDA, DRA, ARC
Initial Clusters (3), $134M • SBA, EDA, NIST, DOE, NASA, DOL, EPA
Nationwide: 56 Federally Funded Cluster Initiatives
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 11
53
B
36
30
32
29
28
27
34
37
38
39
26
33
22
24
35
21
31
40
23
20
19
18 17
16
15
1213
41
5251
50
49
48
47
46
45
44
4342
CA25
11
14
8
5
1
6
7
9
4
2
10
3
San Diego Advanced Defense Cluster (San Diego, CA)
Cluster Administrator:San Diego State University Research Center
Industry Focus:Autonomous systems, cybersecurity, and C4ISR
Enterprise for Innovative Geospatial Solutions Cluster
(MS, LA)
Cluster Administrator:Magnolia Business Alliance
Industry Focus: geospatial technologies
The Smart Grid Cluster(IL and Midwest)
Cluster Administrator:Illinois Institute of Technology
Industry focus:smart electrical grid equipment and technologies
Advanced Power & Energy Cluster(Upper Midwest)
Cluster Administrator:Minnesota Wire
Industry focus:Power and energy generation, storage, distribution, conservation, and supporting technologies
SBA’s Initial Regional Innovation Clusters
Huntsville Advanced Defense Technology Cluster (HADTC)(10 counties in Northern AL)
Cluster Administrator: HADTC
Industry Focus: Small spacecraft, environmental monitoring, C4ISR, robotics, and cybersecurity
Northeast Electrochemical Energy Storage Cluster
(New England, NY and NJ)
Cluster Administrator:Connecticut Center for Advanced Technology, Inc.
Industry focus:hydrogen and fuel-cell supply chain
FlexMatters – Northeast Ohio Technology Coalition (OH)
Cluster Administrator:NorTech
Industry focus: flexible electronic products
12Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead
Results from Three Years of Evaluations
Cluster Activity Impacts Small Businesses
of SBA’s Regional Innovation Clusters
new businesses started after founders’ first participation in their cluster
27
75% satisfaction from reporting small businesses.
87% of small businesses reported that the cluster services were unique and could not be found elsewhere.
Total small business participation increased 5X.
141682
785
Year 1 Year 2 Year 3
Number of Small Businesses
Of all small businesses active in Year 1, 96% remained active in Year 2.
76new patents acquired by participating small businesses
60% of participants agree that cluster participation resulted in the development of new products and services.
Nearly $4 billion in new economic activity (e.g., contracts, grants, loans) was generated by small businesses affiliated with the clusters
The number of times faster that cluster payrolls grew relative to their local region.4.4x
One-on-One Counseling More than 13,000 hours of one-on-one assistance delivered to more than 460 small businesses
84%
54%
42%
32%28%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Business
Networking
Access to
cluster services
Government
Procurement
Opportunities
Supply Chain
Integration
Access to New
Markets
Other
Reasons Small Businesses Participate in Clusters(Percent “Yes”)
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 13
Encouraging Momentum
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 14
JPMorgan Chase’s Small Business Forward
• Small Business Forward is JPMorgan Chase’s five year, $30 million initiative to support small businesses by connecting them to critical resources that help them grow faster, create jobs, and strengthen local economies.
• Small Business Forward supports program models including access to investor networks, cohort-based training, export promotion and customer acquisition, facilities expansion.
• The initiative is seeking additional grantees in key markets where the firm does business.
• Contact: [email protected]
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Current Challenges
• Sustainability of cluster initiatives
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 16
Current Challenges
• Sustainability of cluster initiatives
• Engaging underserved/underrepresented communities
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Current Challenges
• Sustainability of cluster initiatives
• Engaging underserved/underrepresented communities
• Common performance metrics
Mission Clusters Defined Why SBA SBA’s Work Results Looking Ahead 18
Current Challenges
• Sustainability of cluster initiatives
• Engaging underserved/underrepresented communities
• Common performance metrics
• Lack of effective, common messaging about what clusters are and how cluster strategies can drive regional economic growth