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Energize & Examine Technology Leadership and Strategy Initiative 2010 Energize & Examine Technology Leadership and Strategy Initiative 2010 Energize & Examine 2 Council on Competitiveness Energize. Table of Contents 3 TLSI Dialogue Series 2010: Energize & Examine Table of Contents DIALOGUE 3: ENERGIZING COMMERCIALIZATION AND BUILDING THE 21ST CENTURY PUBLIC-PRIVATE COLLABORATORY TO DRIVE STRATEGIC TECHNOLOGIES Letter from the President 8 Executive Summary 10 PART 1: SETTING THE STAGE FOR TLSI DIALOGUE 3 Introduction 12 Getting Down to Business—TLSI Working Groups 14 Accelerating Innovation 14 Innovation Outreach 15 Regulation 16 Talent 17 Review of Public-Private Partnerships for Commercialization 18 Perspective & Overview 18 Components of R&D 18 Main Actors 19 Commercialization Models 24 Perspective for TLSI 27 Entrepreneurial Spin Outs, Job Creation and Risk Capital 27 U.S. Manufacturing Competitiveness Initiative 32 Overview 32 Role of TLSI 33 Industrial Policy 36 Current U.S. Policies 36 Conclusion 41 4 Council on Competitiveness 2010 PART 2: FINDINGS FROM TLSI DIALOGUE 3 Opening Remarks 43 More Effective Public-Private Collaboration and Preserving America’s 46 Technology Base for Security TLSI Working Groups 56 Intellectual Property Policy and Practices: How to Encourage Higher 58 Rates of Commercialization Conversation with Arun Majumdar, Director, Advanced Research Projects 68 Agency for Energy (ARPA-E) Commercialization Models and Mobilizing Capital for Innovation 73 Spirit of Innovation Awards 82 Spotlight Conversations with Vint Cerf of Google and Chris Scolese of NASA 84 Conclusion 91 TLSI Dialogue 3 Participants 92 Table of Contents 5 DIALOGUE 4: PRELIMINARY FINDINGS AND RECOMMENDATIONS FROM THE TLSI WORKING GROUPS Letter from the President 96 Executive Summary 97 PART 1: SETTING THE STAGE FOR TLSI DIALOGUE 4 Introduction 99 Preliminary Findings of the TLSI Working Groups 101 Talent Working Group 102 Accelerating Innovation Working Group 105 Regulation-Policy Working Group 110 Innovation Outreach Working Group 114 PART 2: FINDINGS FROM TLSI DIALOGUE 4 Opening Remarks 118 Reports of the TLSI Working Groups 119 Talent Working Group 119 Accelerating Innovation Working Group 123 Regulation–Policy Working Group 126 Innovation Outreach Working Group 128 U.S. Manufacturing Competitiveness Initiative 130 Conclusion 134 TLSI Dialogue 4 Participants 135 Technology Strategy Leadership Initiative Participants, 2010 136 Council on Competitiveness Membership 138 About the Council on Competitiveness 142 Energize. Dialogue 3: Energizing Commercialization and Building the 21st century Public-Private Collaboratory to Drive Strategic Technologies June 24, 2010 Washington, D.C. 8 Council on Competitiveness Energize. Letter from the President On behalf of the Council on Competitiveness, it is and explaining commercialization models. Angel my pleasure to release the third report of the Tech- and venture interests are explained, as is the nology Leadership and Strategy Initiative (TLSI). The relationship between the TLSI and the Council’s U.S. TLSI engages technology leaders from America’s Manufacturing Competitiveness Initiative. Finally, premier companies, universities and laboratories to Part 1 poses questions about how the U.S. should chart a course for more effective research collabora- promote key technologies. tion and greater commercialization of technologies. Part 2 reviews the third dialogue held June 24, The initiative is led by Ray Johnson, senior vice 2010, in Washington, highlighting the ideas put president and chief technology officer of the Lock- forward. We continued our discussion on improving heed Martin Corporation, and Mark Little, senior vice public-private collaboration, reviewed the working president and director of GE Global Research for the groups and examined how intellectual property poli- General Electric Company. The Council welcomes a cies could encourage higher commercialization rates. third co-chair to the TLSI leadership team by intro- Attendees also discussed commercialization models ducing Klaus Hoehn, vice president, advanced tech- and strategies for mobilizing capital for innovation. nology and engineering for Deere & Company. I would like to thank our featured speakers: Zach There is a growing interest in the TLSI from America’s Lemnios, Director, Defense Research and Engineer- top technologists and policymakers, as evidenced by ing; Brett Lambert, Deputy Assistant Secretary of the number and quality of participants and observers Defense for Industrial Policy; David Kappos, Under at the third dialogue. As we continue examining the Secretary of Commerce for Intellectual Property and state of American innovation and discuss the critical Director of the United States Patent and Trademark issues, our challenge will be to harness our momen- Office; Arun Majumdar, Director of the Advanced tum into priority recommendations and commit to the Research Projects Agency—Energy; Vint Cerf, vice hard work of implementing them. president and chief Internet evangelist, Google; and This report has two sections. Part 1 sets the stage Chris Scolese, the Associate Administrator of the for the dialogue. It outlines TLSI working groups National Aeronautics and Space Administration. that will dig deeper into subject areas raised The Council expresses its sincere thanks to the in the first two dialogues. Part 1 also presents U.S. Department of Defense for its support. The data on how America conducts research and Council is committed to help the Department bring development, breaking down the roles of different more technologies into practice faster and more actors, reviewing general stages of innovation efficiently—thereby strengthening our national and Letter from the President 9 economic security. The TLSI dialogues are designed to be an open exchange of ideas. The opinions and positions presented in this report are those of the Council or the individual who offered them. The opinions and positions in the report do not reflect official positions of the U.S. Department of Defense or other government agencies. America faces many challenges, but the Council is animated by our nation’s strengths and resilience. We should take heed of advice given by Thomas Edison, perhaps America’s greatest innovator. Edison said, “Be courageous. I have seen many depressions in business. Always America has emerged from these stronger and more prosperous. Be brave as your fathers before you. Have faith! Go forward!” Indeed, we will go forward and forge the next generation of American prosperity. Deborah L. Wince-Smith President & CEO 10 Council on Competitiveness Energize. Executive Summary The third dialogue of the Technology Leadership and Strategy Initiative aims to advance the ideas put forward in the first two dialogues by organiz- ing them into working groups that will develop actionable recommendations for various innovation stakeholders. The Council on Competitiveness also seeks in this dialogue to augment and refine those ideas by taking a closer look at commercialization models, the role of manufacturing in an advanced 21st century economy, and the role of government in promoting strategic technology investments to support national security and drive economic com- petitiveness. Executive Summary 11 Part 1: Setting the Stage for TLSI Dialogue 3 12 Council on Competitiveness Energize. PART 1: SETTING THE STAGE FOR TLSI DIALOGUE 3 Introduction The U.S. Navy had a problem—how to keep algae Based on this insight, Brennan founded Sharklet from coating the hulls of submarines and ships. Such Technologies and developed an innovative surface “fouling” reduces vessel speed and increases fuel technology that imitates the properties of a shark. consumption. That translates into extra fuel costs The shape and pattern disrupt algae and bacterial and maintenance for the Navy to keep its ships free growth without toxicity or the leaching of any chemi- of barnacles, oysters, algae and other debris. Toxic cals. The first test yielded impressive results, reduc- antifouling paints were typically used for this purpose, ing green algae settlement by 85 percent compared but organotin and copper compounds used in these to smooth surfaces. paints harm sea life and ecosystems as toxins leach Brennan and Sharklet Technologies understood that from the paint. The U.S. Office of Naval Research their innovation had other potential applications. solicited research to find new antifouling strategies People typically kill microorganisms to control them. to reduce use of toxic paints and to trim costs. Yet, overuse of antibiotics, disinfectants and other Dr. Anthony Brennan, a materials science and engi- kill strategies helped create superbugs such as neering professor at the University of Florida, visited methicillin-resistant Staphylococcus aureus (MRSA), the Pearl Harbor naval base in 2002 as part of this commonly found in hospitals. The Sharklet pattern antifouling research. He and several colleagues has been manufactured onto adhesive-backed skins watched an algae-coated nuclear submarine return that can be applied to high-touch areas to reduce to port. Brennan remarked that the submarine looked the transfer of bacteria among people. The company like a whale lumbering into the harbor. He asked also promotes the skins as ideal for public rest- which slow moving marine animals do not foul. The rooms, childcare facilities and other bacteria-prone only one? The shark.1 places where it is desirable to inhibit the survival, Brennan was inspired to examine shark skin, or transfer
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