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Best Practices in State and Regional Innovation Initiatives: Competing in the 21St Century

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Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century Charles W. Wessner, Editor Committee on Competing in the 21st Century: Best Practice in State and Regional Innovation Initiatives Board on Science, Technology, and Economic Policy Policy and Global Affairs Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century THE NATIONAL ACADEMIES PRESS 500 Fifth Street NW Washington DC 20001 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This study was supported by: Contract/Grant No. DE-DT0000236, TO #28 (base award DE-AM01-04PI45013), between the National Academy of Sciences and the Department of Energy; and Contract/Grant No. N01-OD-4-2139, TO #250 between the National Academy of Sciences and the National Institutes of Health. This report was prepared by the National Academy of Sciences under award number SB134106Z0011, TO# 4 (68059), from the U.S. Department of Commerce, National Institute of Standards and Technology (NIST). This report was prepared by the National Academy of Sciences under award number 99-06- 07543-02 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the National Institute of Standards and Technology, the Economic Development Administration, or the U.S. Department of Commerce. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provided support for the project. International Standard Book Number 13: 978-0-309-28734-0 International Standard Book Number 10: 0-309-28734-0 Library of Congress Control Number: 2013941001 Additional copies of this report are available for sale from the National Academies Press, 500 Fifth Street, N.W., Keck 360, Washington, DC 20001; (800) 624-6242 or (202) 334-3313; http://www.nap.edu/ . Copyright 2013 by the National Academy of Sciences. All rights reserved. Printed in the United States of America Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council. www.national-academies.org Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century Committee on Competing in the 21st Century: Best Practice in State and Regional Innovation Initiatives* Mary L. Good (NAE), Chair W. Clark McFadden II Dean Emeritus, Donaghey College Senior Counsel of Engineering and Information Orrick, Herrington & Sutcliffe LLP Technology Special Advisor to the Chancellor David T. Morgenthaler for Economic Development Founding Partner University of Arkansas Morgenthaler Ventures at Little Rock Edward E. Penhoet (IOM) Michael G. Borrus Director Founding General Partner Alta Partners X/Seed Capital Management Tyrone C. Taylor William C. Harris President President and CEO Capitol Advisors Science Foundation Arizona on Technology, LLC *As of May 2013 v Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century PROJECT STAFF Charles W. Wessner Sujai J. Shivakumar Study Director Senior Program Officer McAlister T. Clabaugh David E. Dierksheide Program Officer Program Officer David S. Dawson Thomas R. Howell Senior Program Assistant Consultant vi Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century For the National Research Council (NRC), this project was overseen by the Board on Science, Technology and Economic Policy (STEP), a standing board of the NRC established by the National Academies of Sciences and Engineering and the Institute of Medicine in 1991. The mandate of the Board on Science, Technology, and Economic Policy is to advise federal, state, and local governments and inform the public about economic and related public policies to promote the creation, diffusion, and application of new scientific and technical knowledge to enhance the productivity and competitiveness of the U.S. economy and foster economic prosperity for all Americans. The STEP Board and its committees marshal research and the expertise of scholars, industrial managers, investors, and former public officials in a wide range of policy areas that affect the speed and direction of scientific and technological change and their contributions to the growth of the U.S. and global economies. Results are communicated through reports, conferences, workshops, briefings, and electronic media subject to the procedures of the National Academies to ensure their authoritativeness, independence, and objectivity. The members of the STEP Board* and the NRC staff are listed below: Paul L. Joskow, Chair Alan M. Garber (IOM) President Provost Alfred P. Sloan Foundation Harvard University Ernst R. Berndt Ralph E. Gomory (NAS/NAE) Louis E. Seley Professor Research Professor in Applied Economics Stern School of Business Massachusetts Institute New York University of Technology John L. Hennessy (NAS/NAE) Jeff Bingaman President Former U.S. Senator, New Mexico Stanford University U.S. Senate William H. Janeway John Donovan Managing Director Senior Executive Vice President and Senior Advisor AT&T Technology Warburg Pincus, LLC and Network Operations AT&T Inc. Ellen Dulberger Managing Partner Ellen Dulberger Enterprises, LLC continued *As of May 2013. vii Copyright © National Academy of Sciences. All rights reserved. Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century Richard K. Lester Kathryn L. Shaw Japan Steel Industry Professor Ernest C. Arbuckle Professor Head, Nuclear Science of Economics and Engineering Graduate School of Business Founding Director, Industrial Stanford University Performance Center Massachusetts Institute Laura D'Andrea Tyson of Technology S.K. and Angela Chan Professor of Global Management David Morgenthaler Haas School of Business Founder University of California-Berkeley Morgenthaler Ventures Harold R. Varian Luis M. Proenza Chief Economist, Google Inc. President Professor Emeritus, University University of Akron of California-Berkeley William J. Raduchel Alan Wm. Wolff Independent Investor/Director Senior Counsel McKenna Long & Aldridge LLP STEP Staff Stephen A. Merrill Charles W. Wessner Executive Director Program
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