Central Indiana Corporate Partnership

RETHINKING CLUSTER INITIATIVES

CASE STUDY

CENTRAL INDIANA CORPORATE PARTNERSHIP

Joseph Parilla July 2018 HIGHLIGHTS

GEOGRAPHY

The Central Indiana Corporate Partnership (CICP) is located in the state of Indiana (population 6.7 million people), and is headquartered in the Indianapolis region (population 2 million people).

CLUSTER TYPE

CICP defines clusters based on linkages between industries but also their joint reliance on technologies and talent; clusters include life sciences, technology, advanced manufacturing/ logistics, agbiosciences, and energy technology.

ORGANIZATIONAL STRUCTURE

CICP has developed six talent and industry sector initiatives that focus on a combination of interventions, including talent development; technology development; capital provision; district/ infrastructure development; and research, information provision, and education. CICP operates as a CEO-led holding company that houses six distinct initiatives, which each have their own mission, board, resources, and partnership networks. CICP operates as a (c)(3) and (c)(6) organization, with some for-profit organizational structures within the CICP umbrella.

RESOURCES AND KEY ASSETS

Key organizational resources include a prestigious board of 65 members, all executives at companies, educational institutions, and philanthropies; unique levels of catalytic funding from Lilly Endowment Inc.; and a highly competent staff that have launched transformative initiatives that attract significant resources and attention from the private sector (e.g., 16 Tech innovation district, Indiana Biosciences Research Institute, etc.).

BROOKINGS METROPOLITAN POLICY PROGRAM

2 BACKGROUND

t the turn of the 21st century, Indiana These major civic wins focused the region’s Afound itself in a moment of transition. business and political leadership on the Economically, the state had relied upon necessary next step: a fundamental agriculture in the 19th century and transformation of the region’s economy towards manufacturing in the 20th century to supply innovation-based economic growth. Drawing large numbers of good-paying jobs, drawing on the recommendations of a task force put on a combination of plentiful land, a strong together by Clay Robbins, the chairman, labor pool, and the ingenuity of entrepreneurs, president and CEO of the Lilly Endowment such as James Allison, Clessie Cummins, Inc.—one of the nation’s largest philanthropic and Eli Lilly. It was clear that agriculture and foundations, separate from the pharmaceutical manufacturing would remain important sources giant Eli Lilly and Company, but organized by of jobs (although at a smaller base), exports, members of the Lilly family in the 1930s—and and economic growth, but maintaining their local business leaders Larry O’Connor and competitiveness would require the adoption Sallie Rowland, Central Indiana’s corporate of new technologies. In addition to building on leaders recommended forming an invitation- these historic strengths, it was clear that Indiana only CEO group to guide the region’s economic would need to develop new specializations. Life development. The Central Indiana Corporate sciences represented the state’s clearest bridge Partnership (CICP) was founded in 1999 “to from the 20th to the 21st century, but how transform the economy of Indiana in order to would Indiana be positioned to take advantage create a more sustainable prosperity and quality of emerging platforms such as information of life for our citizens and future generations.” technology? As CICP President and CEO David Johnson In other words, the state and region’s foothold recalls, the organization’s original intent was to in the modern economy was far from certain. be an extremely rigorous advisor and advocate, In their book The New Localism, Bruce Katz drawing on the best thinking in the private, and Jeremy Nowak write that Indianapolis philanthropic, and university sectors to inform in the 1970s was “flat on its back, weakened investments and strategies led by policymakers by deindustrialization and excessive at the local and state level. Very quickly, suburbanization.” In a case study of Central however, CICP realized that transformative Indiana’s market evolution, Katz and Nowak note initiatives would require a combination of that the initial market momentum in the region private and philanthropic investment along with came through a series of signature investments support from the public sector. Organizations to become the “Amateur Sports Capital of the outside of government had to become active World,” including successfully building the participants and investors, in addition to RETHINKING Hoosier Dome in the 1980s and attracting the advisors. The question was what investments the CLUSTER NCAA’s headquarters in the 1990s. region should prioritize to solidify its economic INITIATIVES future.

CASE STUDY: CENTRAL INDIANA CORPORATE PARTNERSHIP

3 CLUSTER IDENTIFICATION AND PRIORITIZATION

he process of identifying and prioritizing 2007), energy technology (Energy Systems Teconomic opportunities in the Central Network, 2009), agbiosciences (AgriNovus Indiana economy has evolved over time, but Indiana, 2015), and talent development (Ascend three core elements define CICP’s process: Indiana, 2015). Several individual project efforts an appreciation for rigorous research and complement these six pillar initiatives, such as data; a deep commitment to delivering the Indiana Biosciences Research Institute, 16 value for its members, and therefore local Tech innovation district, and Indiana Innovation industries; and an operational ethos that values Institute. continuous improvement, meaning a collective acknowledgement that the region’s innovation CICP’s mandate is to identify and prioritize and industrial strengths could be improved by pressing issues and then channel resources bringing together institutions and firms with a from the business, university, and philanthropic shared interest in the competitiveness of key communities toward solutions. The organization industry clusters. is business- and civic-led, but there is intentional engagement with the public sector, In 2000, CICP obtained some funding from the given government’s ability to scale through Lilly Endowment to commission a report from policy and regulatory change. Every initiative the Battelle Technology Partnership Practice the organization supports is vetted by its on the region’s economy. That report argued 65-member board of directors, whose support that the competitiveness of two legacy industry typically requires rigorous, independent research clusters (advanced manufacturing and life that identifies opportunities and challenges sciences) and one emerging cluster (information within a key industry cluster (or group of technology) would determine the future of clusters) and offers a plan to address them. Central Indiana’s economic prosperity. However, it would be simplistic to characterize the CICP process as a rote series of research The Battelle report provided a roadmap that reports followed by strategic implementation. could galvanize leadership around a shared set Three CICP initiatives reveal the diversity of of facts, but it required an incredible breadth approaches through which the organization of organizations to act in service of its findings. identifies and prioritizes interventions. CICP became the much-needed organization to help coordinate the actions of employers, BioCrossroads is CICP’s longest running and philanthropies, and universities that together arguably most impactful cluster initiative and could push transformative economic change. provides one example of the organization’s identification, decisionmaking, and strategic Rather than an organization devoted to a single implementation process. cluster initiative, CICP has proven over the past two decades to be the rare organization The identification and prioritization of the life that can seed several high-capacity industry sciences cluster resulted partly from the 2000 interventions that address the weaknesses Battelle report mentioned above and partly and build on the strengths of Central Indiana’s from broader civic dynamics. That report used regional economy. As of 2018, CICP housed six various metrics—employment concentrations, BROOKINGS initiatives related to life sciences (BioCrossroads, productivity levels, and the share of the regional METROPOLITAN 2003), technology (TechPoint, 2006), advanced economy accounted for by life sciences—to argue POLICY manufacturing and logistics (Conexus Indiana, for life sciences as a pillar cluster, one that had PROGRAM

4 an enormous impact throughout the region saw the link between agricultural sciences, and state. Yet, while boasting Eli Lilly and Co., human health, and life sciences. Roche Diagnostics, the Cook Group, Corteva Agriscience, Agriculture Division of DowDuPont, The work to prioritize the cluster began with Zimmer, Biomet, Anthem, and the Indiana David Johnson asking Beth Bechdol to conduct University School of Medicine, the report also an initial exploration to determine whether a identified untapped potential. cluster initiative made sense. Bechdol had grown up on a farm, worked in agribusiness, spent Specifically, it cited four key areas: time in Washington, D.C. working on agriculture strengthening the sector’s brand, ensuring policy, and then served as the deputy director the talent supply was sufficient, linking of the Indiana State Department of Agriculture. university and business leaders through shared She had a deep knowledge of the industry opportunities, and building a local market of and strong professional networks within the startups and scale-ups that can access growth agribusiness community, two elements that capital. made conducting dozens of interviews with firms and researchers across the state a doable In response, Indiana University, Purdue and valuable exercise. Along with her review, University, Eli Lilly and Co., the Indiana Health CICP received funding for a report from the Lilly Industry Forum, and the Indianapolis mayor’s Endowment to hire Battelle to examine industry office, with support from the Lilly Endowment, trends and state advantages and conduct a established BioCrossroads to address these landscape analysis of key stakeholders, from imperatives. Anne Shane, a long-standing large firms (e.g., Corteva Agriscience, Agriculture civic leader in Indianapolis who was integral Division of DowDuPont) to universities (e.g., to the founding of BioCrossroads, recalls a Purdue University) to smaller and mid-sized convergence of political and institutional factors companies (e.g., Whiteshire-Hamroc). that led to BioCrossroads’ creation: a new mayor interested in economic development, What emerged from the quantitative inquiry the recognition among university leaders and and interviews was that Indiana indeed had scientists that they were being held accountable notable strengths in not only agricultural for the commercialization of their research production, but also agriculture-related research (partly due to changes in National Institute of and development and science, as measured Health requirements), and the interest on the by local patents, research publications, and part of younger faculty members to engage in university scientific discovery. Bechdol took the industry-relevant research. white paper she had produced and translated it into a business plan that resulted initially in AgriNovus Indiana, CICP’s cluster initiative the Indiana Food and Agriculture Innovation devoted to food and agricultural innovation Initiative. That organization eventually evolved (the “agbiosciences”), emerged in 2014. into AgriNovus Indiana, a cluster initiative that Ongoing research by BioCrossroads on the life focuses on promoting the agbioscience sector’s RETHINKING sciences cluster had revealed the convergence assets, building talent pipelines, and supporting CLUSTER of Indiana’s legacy advantages in agriculture the formation of new, innovative companies. INITIATIVES and life sciences and a notable opportunity Those interventions are outlined in more detail to recognize and build upon a specialization in the next section. CASE STUDY: in agricultural technology and innovation. CENTRAL Key employers that were already members Ascend Indiana, CICP’s workforce development INDIANA of BioCrossroads, like Corteva Agriscience, initiative, represents a third type of origin story. CORPORATE Agriculture Division of DowDuPont, very clearly PARTNERSHIP

5 Rather than focus on an individual cluster, many Hoosiers struggling economically, even as Ascend sits as a supportive “horizontal” firms sought to make job-creating investments initiative across CICP’s cluster verticals. Its in the city. Specifically, he recalled a firm that formation resulted partly from conversations wanted to invest in Indianapolis and create 400 amongst CEOs at CICP board meetings. A jobs, but with very particular knowledge and common refrain among executives was that skills requirements. Yet, there was no “turnkey their businesses were struggling to find qualified mechanism” to deliver on talent requests workers in a competitive environment and that from employers. Similar to AgriNovus Indiana, employers could grow more rapidly if we could Johnson asked Kloth to put together a white fill our open positions and reduce turnover. paper to go deeper on his perspective. Using detailed labor market analysis, the white paper Meanwhile, then Indianapolis Deputy Mayor for confirmed the feedback from private sector Education Jason Kloth met with David Johnson leaders: Labor market supply and demand to discuss what to do after Mayor Greg Ballard’s suffered from misalignment in key areas of term ended. During that conversation, Kloth the Central Indiana economy. Armed with that summarized his conclusions from his time with information, Kloth raised nearly $1 million dollars the city about the state of Central Indiana’s to found Ascend Indiana and form a CEO-level workforce, noting the frustrating dual reality of steering committee.

BROOKINGS METROPOLITAN POLICY PROGRAM

6 IDENTIFYING INTERVENTION POINTS AND STRATEGY DEVELOPMENT

ICP’s development of cluster initiatives Biosciences Research Institute (IBRI). The Crequired not only cluster identification, establishment of IBRI is one of BioCrossroads’ but also a clear set of identifiable trends, most significant accomplishments. In opportunities, or challenges to be addressed 2011, Battelle conducted yet another by strategy. Once again, rigorous research and study examining the state’s scientific and intelligence gathering from public, private, and innovation strengths and weaknesses within civic stakeholders were critical to identifying life sciences, this time being able to draw these steps, which did not necessarily occur on much more granular data measuring separately from the prioritization of the clusters. scientific publications and patents (data that was not available during the 2000 BioCrossroads: At the core of BioCrossroads’ study). Armed with new data, BioCrossroads efforts to identify opportunities for intervention brought together industry leaders, university within the life sciences cluster is what David scientists, and institutions in the ecosystem Johnson calls the “innovation-addition problem” to discuss shared research needs. What they of developing not only effective clusters of learned was that many of these organizations existing industry and research assets, but then had similar research interests but were not also driving these clustered institutions further leveraging one another, and that much of to push innovative startups on the landscape. the research and development conducted by Research from Battelle revealed that Indiana’s major life sciences companies was going to success in life sciences required seeding new researchers outside the state. companies that could commercialize new discoveries, in addition to the stable of very IBRI was a response to “localize more of large companies that Indianapolis already that R&D spend” by recruiting leading had. The challenge, as Johnson notes, is that researchers to Indianapolis to work in close “innovation is typically expensive, risky by proximity with companies in the life sciences definition, and requires sustained investments cluster. BioCrossroads—in tandem with the over many years (and often, substantial good R&D departments of major companies and luck).” More specifically, this meant efforts to the leading labs at the state’s universities— “shoulder the risks of the ‘innovation-addition identified shared interests in metabolic problem’” by: disorders, nutrition, and obesity. Importantly, the research needs under these areas were ►►Investing in startups and scale-ups through noncompetitive, meaning that the cluster’s its for-profit BC Initiative, which houses three firms had incentives to jointly fund these seed funds for biotechnology and medical ideas. Johnson calls IBRI the “ultimate technology growth companies. Anne Shane intermediary,” meaning that it situates RETHINKING commented that capital provision was critical cleanly within the shared objectives of CLUSTER in setting BioCrossroads apart from previous academic and industry players. INITIATIVES attempts to support life sciences that could not draw on a large base of resources: Given this position, IBRI preferred to be CASE STUDY: “Money on the table makes it real.” located in a physical space surrounded by CENTRAL labs and startups interested in technological INDIANA ►►Connecting life sciences companies and development and research collaboration. CORPORATE research universities to pursue applied As IBRI was under development, so was PARTNERSHIP research together through the Indiana an idea called 16 Tech that would develop

7 an innovation district in the urban core, AgriNovus, advancing public understanding surrounded by Indiana University-Purdue of the agbiosciences sector and showcasing University Indianapolis (IUPUI) and IU Health the competitive assets and strengths of and very close to Eli Lilly and Co. and Cook the state stood out as a clear desire among Regentec, to anchor the region’s advanced stakeholders. AgriNovus is working to build industries. 16 Tech’s development, which awareness of the industry’s ingenuity and is now underway, was solidified by IBRI’s value through the branding and advancement decision to serve as its first anchor tenant. of Indiana’s agbiosciences innovation. This required generous support from the city Specifically, this is being accomplished of Indianapolis, including $75 million in bonds through the social media campaign of to support the public infrastructure needed #timetotell which highlights the state’s to support the district. companies, universities, and business landscape in addition to the hosting of new ►►Educating industry leaders, potential industry events. investors, and the public through white papers, trend reports, and partnerships ►►Talent Development: AgriNovus’ Do What with higher education institutions to train Matters talent initiative targets, informs, Hoosiers in the STEM fields. While not as and engages with individuals on the career flashy, this function remains very important and professional opportunities in the for BioCrossroads. It is seen as both a agbiosciences. This includes promoting jobs knowledge resource for the public and non- in agbiosciences through an extensive career experts—to galvanize support for investments awareness program, an industry-relevant in the cluster—but also providing research certificate program, and an agbiosciences and expertise for executives within the life fellows program to attract more young people sciences industry. to the field.

AgriNovus: The opportunities in the ►►Entrepreneurship: In order to cultivate an agbiosciences—defined as the field where agbiosciences entrepreneurial ecosystem, food, agriculture, science, and technology AgriNovus is focused on fostering food and converge—also arose from the detailed industry agriculture business growth by directing study by Battelle. The overall takeaway of businesses to growth capital opportunities, that study was that the agriculture sector mentors, and potential partners, in in Indiana had the potential for significantly coordination with other entrepreneurship more innovation and greater statewide impact. organizations. That research effort involved interviews to determine the primary needs and interests Ascend Indiana: To address the commonly of key stakeholders in the cluster, from which held notion that businesses were struggling to AgriNovus and Battelle identified four key find the talent they need, Ascend’s leadership areas: greater collaboration between firms and assembled research to make the case for a public/educational institutions, more early stage new commitment to talent development. This technology commercialization, general sectoral involved a rigorous review of the workforce promotion and support, and the development landscape and reports from leading education of new capabilities in big data analytics for food and labor market scholars and think tanks. It and health. AgriNovus has since implemented also involved a deep review of labor market BROOKINGS around three key functions: trends using data form EMSI, Burning Glass, and METROPOLITAN Monster in addition to a review of educational POLICY ►►Public Education and Awareness: When institutions. From that research, Ascend PROGRAM forming the initial set of priorities for projected that by 2025, 60 percent of jobs in

8 Central Indiana will require a postsecondary but CICP identified a niche for Ascend to education or credential, but that only 41 percent work with individual employers and education of workers would have those skill levels. This providers to align the supply of talent with jobs resulted from 1) too few students enrolling demanded from employers. Specifically, Ascend in higher education, 2) too few students seeks to: concentrating in high-demand fields, 3) too few students completing postsecondary credentials, ►►Engage employers to understand their and 4) too few students finding a job and staying needs and the skills and abilities needed in Indiana. Within Central Indiana, that meant to fill positions by working with real-time about 215,000 adults would need to obtain a labor market data and feedback from human postsecondary credential to meet labor market resources departments, demands. ►►Identify and connect talent by working with RETHINKING universities and colleges to support career CLUSTER Ascend’s solutions built from these findings, services offices in the job search process, INITIATIVES but also from a review of the existing regional ►►Build talent pipelines by recruiting and economic and workforce development launching training programs that lead to CASE STUDY: infrastructure in Central Indiana. Many relevant postsecondary credentials, and CENTRAL organizations were already working on issues of ►►Provide research and thought leadership to INDIANA talent development and labor market alignment, inform public policy. CORPORATE PARTNERSHIP

9 ORGANIZATIONAL STRUCTURE

ICP: The Central Indiana Corporate investors supporting its for-profit and CPartnership operates under the following seed funding programs. Since its founding, organizational structure. CICP itself is a BioCrossroads has seeded nearly a dozen 501(c)(6) business league entity led by David separate sub-initiatives. Most of these are not- Johnson, who also leads BioCrossroads. The for-profit efforts focused on research, education, CICP Foundation is a 501(c)(3) public charity and collaboration. However, the BC Initiative that supports the charitable and educational includes three for-profit seed funds focused programs of CICP. Finally, CICP has ownership on early-stage biotechnology, pharmaceutical, stakes in four for-profit C corporations housed medical device, diagnostics, agbiotech and within their various cluster initiatives. health information technology products. A seven-member investment committee manages CICP funds its operations through membership each of those seed funds. BioCrossroads has dues, which supports 13 staff members and also organized two venture capital funds totaling one consultant. Those staff support the $131 million. AlpInvest Partners, one the largest umbrella organization. Across all initiatives, private equity companies in the world, manages the staff increases to 73 individuals, including both funds. consultants. CICP’s leadership consists of 65 board members 55 corporate CEOs, three AgriNovus: AgriNovus employs five employees philanthropic leaders, and seven university and has 20 board members that meet quarterly, presidents. The board meets three times per with representation from public, private, civic, year, nominates and elects new members and academic institutions. The Lilly Endowment from time to time, and maintains fiduciary provided AgriNovus with a $4.2 million grant to responsibility for CICP, CICP Foundation, and fund its operations, which included a $500,000 talent and sector initiatives. Within the board, investor match. there is a seven-member executive committee, elected by the 65-member board. The executive Ascend Indiana: One of CICP’s newest committee meets four times per year. In its initiatives, Ascend is also its largest. With a review of CICP, Katz and Nowak’s The New budget of $9 million, led by a $5 million grant Localism stresses the importance of CICP’s from the Lilly Endowment and $1 million in board: “CEOs are not only pulled together to funding from employers, Ascend employs discuss, they convene to decide.” This structure about 40 people, including interns, and is has allowed the institution to maintain rigor, led by a 33-member board of directors. Like exclusivity, and nonpartisanship. BioCrossroads, Ascend operates a mix of nonprofit (Ascend Network) and for-profit BioCrossroads: BioCrossroads is one of (Ascend Services) efforts. The Ascend Network CICP’s most comprehensive cluster initiatives. is a system that Ascend has built to prequalify It employs seven staff and has 21 board early-in-career candidates (college students members representing business, philanthropy, and graduates early in their careers) and and academia. The board meets three times match them to the right employers using an per year. The organization’s funding comes intuitive software interface, combined with from philanthropic sources, such as the Lilly human interaction. Ascend Services works BROOKINGS Endowment and the Richard M. Fairbanks with employers for eight to 14 months to build METROPOLITAN Foundation, and through capital investments customized talent pipelines. POLICY from corporations and other institutional PROGRAM

10 IMPLEMENTATION AND PROGRESS

ICP remains one of the most impactful In a positive feedback loop at the heart of strong Cbusiness and civic leadership groups in institutions, smart, hardworking individuals the nation. Katz and Nowak called CICP a are drawn to one another—the board’s ability nationwide best practice “for its collaborations to support and implement initiatives attracts within sectors, technological innovations and mission-oriented staff looking to strengthen the investment in the workforce of the future— Indiana economy. In turn, the competence of the launched into the global sphere through civic staff ensures value to the board, solidifying their efforts and strong local leadership.” interest and resources. This dynamic has allowed CICP to implement and demonstrate progress When asked what makes CICP unique, David consistently across multiple cluster initiatives. Johnson responds with two characteristics. First, The three initiatives profiled here are at various the board: CICP has been able to assemble the stages of implementation, based on the length chief executives of the state’s most important, of their existence and their size. well-endowed companies and education and research institutions. CICP’s process reflects BioCrossroads: The impact of BioCrossroads the rigor of corporate decisionmaking, and its has been striking, especially in regards to board’s willingness to commit resources ensures research and development, growth capital, that whatever decisions the process yields have and industry intelligence gathering. On the a good chance at successful implementation. former, BioCrossroads helped form the Indiana Both elements give CICP distinct levels of Biosciences Research Institute (IBRI) in 2012, credibility within the region and state. which has received $150 million (including nearly $80 million from the Lilly Endowment) The second characteristic is the organization’s in an effort to attract star scientists to staff. Johnson described them as “75 to 80 Indianapolis to conduct industry-sponsored incredibly smart, analytical, and driven people life sciences research. While IBRI is no longer that have the capabilities to move a research housed within BioCrossroads, the organization report into action.” Leaders of the individual was instrumental in establishing the institute, initiatives bring deep industry expertise and which has since received support from the success in the private sector, but also often state of Indiana and involves major private have picked up an understanding of public and educational partners, such as Eli Lilly and sector dynamics through a stint in government. Co., Roche Diagnostics, Corteva Agriscience, Attracting strong initiative leads also stems Agriculture Division of DowDuPont, Cook from the respect that Johnson has within the Medical, Indiana University School of Medicine, state and nationally within the life sciences and Indiana University Health, one of the state’s space. At the staff level, CICP attracts project- largest hospital and health systems. RETHINKING driven, outcome-oriented individuals with CLUSTER many of the same skills and attributes as In regards to capital access, BioCrossroads INITIATIVES management consultants. The competence has launched and managed three for-profit and professionalism of the staff, coupled with seed funds, the first two of which have CASE STUDY: the intellect and gravitas of the organization’s together dispensed $12 million in seed capital CENTRAL leadership, provides an environment that to 26 Indiana-based startup companies. A INDIANA matches the exceedingly high expectations of third seed fund of $9 million is beginning CORPORATE the high-level CEOs and university presidents on active investments in 2018. In addition, two PARTNERSHIP its board. BioCrossroads-sponsored venture capital funds

11 have dispensed more than $131 million in capital AgriNovus: AgriNovus’ implementation since 2003. Taken together, these BioCrossroads strategy includes promotion, convening, career seed and early-stage investment vehicles have awareness, and entrepreneurship support. In made investments that have in turn attracted 2017, the organization focused on telling the an additional $450 million for the development story of its cluster via a #timetotell campaign of more than 40 Indiana companies, three of that explains how agbiosciences operates at which have gone public. An additional portfolio the intersection of agriculture, life sciences, company has been acquired for nearly $1 billion and science and technology. Major CEOs and by Eli Lilly and Co. to support a new product Governor Eric Holcomb participated in a short line. Finally, BioCrossroads continues to be video communicating their commitment to the authoritative data source and information agbiosciences. AgriNovus also hosted several engine for the state’s life sciences sector. In 2017, promotional summits and showcases. The BioCrossroads launched www.biospeakindiana. Indiana Agbiosciences Innovation Summit com, a hub for Indiana life sciences company brought together 350 industry, policy, academic, and research news and event announcements. and scientific leaders to discuss the latest

BROOKINGS METROPOLITAN POLICY PROGRAM

12 sector trends. AgriNovus also hosted its second already recruited 62 employers and 14 higher startup showcase, which attracted over 200 education institutions. Pilot employer partners attendees. The organization is now moving include Roche Diagnostics, OneAmerica, Ontario toward promoting careers in agbiosciences Systems, Cook Medical, and the United Way of through an extensive career awareness program, Central Indiana. Pilot education partners include an industry relevant certificate program, and Butler University, Indiana University, Purdue an agbiosciences fellows program to attract University, and Ivy Tech Community College. more students to the field. Finally, AgriNovus collaborates with organizations like The Foundry Second, through Ascend Services, Ascend at Purdue University to provide entrepreneurial provides tailored consulting services to support to young companies and introduce them help employers develop talent pipeline to business and investment groups. solutions. Essentially, Ascend Services acts as an intermediary between employers and Ascend Indiana: Since its October 2016 launch, higher educational institutions. It enters into Ascend has implemented interventions in three contractual agreements to deliver customized areas. First, through Ascend Network, it seeks to talent pipelines for individual companies and profile and connect employers and candidates then works with higher education institutions to through an algorithm-driven online platform. educate and connect younger workers. Ascend The platform breaks jobs into character traits has either completed, or is in the process of and then seeks to match them to early-in-career completing, talent pipeline strategies with candidates based on information gathered about the Community Health Network’s Nursing candidates’ skills and interests. The platform Academy and Behavioral Health Academy, Roche was a highly technical undertaking, which Diagnostics, and College for America. As an required support from software developers and example, the Roche partnership will work with user experience and user interface consultants. the University of Indianapolis to build a pipeline CICP’s deep ties to the local business community of “early-in-career biomedical equipment proved integral in obtaining the technical technicians with the potential to produce 25-30 expertise to launch the platform. A local venture work-ready hires per year.” capital investor and entrepreneur, Mark Hill, serves as the Ascend board chair, and another Third, Ascend is providing a thought leadership, board member, Mike Reynolds, runs a digital research, and public policy function within product development and user experience Indiana. The organization partners with national firm that was integral in helping create the research organizations to conduct research on platform. The Network is still in its pilot phase, the regional and state labor market and seeks which will continue through 2018, but it has to inform broader public policy debates about education and workforce development.

RETHINKING CLUSTER INITIATIVES

CASE STUDY: CENTRAL INDIANA CORPORATE PARTNERSHIP

13 CONCLUSION

ICP’s strategic approach offers several resources in service of shared goals and, in the Cconclusions for public, private, and civic process, cement CICP’s reputation as a table leaders stewarding their economies in other where big things can be accomplished, which markets. First, CICP is the rare organization further attracts and solidifies board buy-in. that is not devoted to a single issue or cluster, but rather has developed the reputation and Third, CICP has been able to garner significant abilities to seed several well-respected initiatives resources to do its work. It is hard to understate over time. It has become a durable institution the importance of the Lilly Endowment in this because it values professional and technical regard, as the philanthropy has provided the guidance, continuous assessment and learning, seed funding necessary to get CICP and most of and rapid adaptation, if necessary. its initiatives off the ground. The critical role of philanthropies should not mask that a majority Second, to build and steward this type of of resources come from the business community. institution requires a significant amount of This is because CICP constructs strategies a) to staff expertise and strong leadership. CICP appeal to bottom-line interests such as research, has been selective and strategic about who it technology commercialization, and talent puts in positions of leadership. At the initiative development; b) in ways that yield collaboration level, they have been able to find systems within industries, rather than competition; and entrepreneurs that have significant subject c) at the front end, in conjunction with the matter expertise and the personal presence to very same businesses and higher education connect with C-suite executives. At the staff institutions from which it needs to establish level, CICP has been able to attract, partly buy-in to implement. All of this demands the due to its strong leadership, a crop of young, requisite technical expertise to engage in motivated, outcome-oriented individuals to conversations with businesses about the frontier implement its activities. CICP’s boards—those of of their R&D operations or the challenges in both the overall organization and the individual worker training and development. In this way, initiatives—are the final piece of the leadership CICP’s talent base and resource base—like many triangle. They have assembled individuals strong institutions—are intimately connected and who run organizations that can move major mutually reinforcing.

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14 SOURCES

AgriNovus Indiana, “Annual Report” (2017).

Ascend Indiana, “Annual Report” (2017).

Ascend Indiana, “Labor Market Research” (2016).

Bruce Katz and Jeremy Nowak, The New Localism: How Cities Can Thrive in the Age of Populism (Washington: Brookings Press, 2018).

BioCrossroads, “Annual Report” (2017).

Central Indiana Corporate Partnership, “Annual Report” (2017).

David Lawther Johnson, “Clusters, Communities, and Competitiveness: An Emerging Model from America’s Midwest” In eds. David B. Audretsch, Albert N. Link, and Mary Lindenstein Walshok, The Oxford Handbook of Local Competitiveness (Oxford: Oxford University Press, 2015).

ACKNOWLEDGEMENTS

The author would like to thank the following individuals for generously providing their insights and feedback on this case:

CICP: Raquel Bahamonde, Beth Bechdol, David Johnson, Jason Kloth, Betsy McCaw, and Anne Shane Brookings: Ryan Donahue, Brad McDearman, and Mark Muro

PHOTO CREDITS

Drew Hays (cover) and Zac Ong (page 14) via Unsplash, Pexels (page 6), Erwan Hesry (page 9), and Rawpixel (page 12). RETHINKING CLUSTER INITIATIVES

CASE STUDY: CENTRAL INDIANA CORPORATE PARTNERSHIP

15 1775 Massachusetts Avenue, NW Washington, D.C. 20036-2188 telephone 202.797.6139 fax 202.797.2965 brookings.edu/metro