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Slide 1: The 2007 Innovation Plan The Legislative Roadmap to Create Jobs, Expand Markets and Compete in the Global Economy
Slide 2: Why is Innovation Important? INNOVATION IS KEY “…Every industry in Oregon can and must use technology and innovation to enhance their competitiveness.” – Michael Porter, Harvard University Competitive firms that rely on innovation:  enhance productivity and increase profitability  offer good jobs at nearly twice the average wage  anchor key industries 2
Slide 3: Who is Oregon InC? HISTORY " Created by the 2005 Legislature to oversee state economic competitiveness strategy MEMBERSHIP • Council members include 40+ recognized state leaders from Oregon industries, higher ed & government " Charged to develop an innovation plan each biennium to guide governor & legislature on policies and investments to grow Oregon’s economy • Serves as a statewide “umbrella” group, incorporating members from many of the state’s business & education organizations 3
Slide 4: What are the goals of the plan? KEY GOALS " Expand Oregon’s economy by leveraging industry-supported initiatives with public seed investments " Focus on areas where Oregon has a competitive advantage " Prioritize based on return on state’s investment; leverage of federal/private dollars; and job potential in core Oregon industries across the state 4
Slide 5: Oregon’s Sunny Day Package September 30, 2006 A Positive Editorial Innovation development package holds promise Innovation development package holds promise Visionaries of Oregon's entrepreneurial scene were pretty frustrated souls as recently as a decade ago, but they have coalesced this year to achieve something that they could only have dreamed of back then. They have closed the chasm that separated them from Salem by developing an intelligent, focused business investment proposal that the governor promises to put in his next budget. The executives, investors and academics who make up the Oregon Innovation Council have built on the incomplete efforts of previous years to offer a coherent but modest plan for the state to invest up to $40 million in a few targeted industries, both emerging and established. By guiding the state to apply fiscal stimulus at a few strategic points, they think they can accelerate the development of a few job- and income-producing "clusters." This is a more useful approach than vague, top-down economic development schemes that spray money in the general direction of a juicy possibility, such as tempting a Scandinavian manufacturer of wind-power generators to relocate to Oregon. In this case, limited state resources would be applied in a few places where they can be leveraged to grow promising industries from within. For example, the proposal the group unveiled last week targeted a handful of sectors where Oregon companies and… “…While so many politicians and activists are talking about rainy-day funds, this is the sunny day package. More jobs and more revenues mean sunnier weather for the region, in terms of jobs and revenues.” -Oregonian Editorial 9/30/06 5
Slide 6: 2007 Plan Recommendations RECOMMENDATIONS 3. Provide adequate sources of gap funds (OGA, SB 853) Increase entrepreneurial talent (statewide angel network) Streamline tech transfer Create innovation acceleration fund 5. Invest in industry productivity & research " " Accelerate leadership in emerging industry: Wave energy Help established industries enhance productivity: Food processing & manufacturing Expand Signature Research Centers " Nanotech and micro products " Drugs to fight infectious diseases " Renewable industries such as alternative fuels, green architecture 4. 5. 6. " 7. Inves t in industry product ivit y & re sear ch 6
Slide 7: Emerging Industry: Ocean Energy From Waves to Watts VISION Capitalize on Oregon’s ocean resources to make Oregon the national leader in ocean wave energy generation. GOALS  Build first commercial wave energy park in US by 2012  Fund management team  Provide production incentives  Leverage OSU ocean and energy experts  Leverage Oregonbased metals manufacturers ADVANTAGE Oregon has the best coastline in the country to generate wave power. Oregon has great conditions for turning wave power into an energy source. 7
Slide 8: Emerging Industry: Ocean Energy From Waves to Watts PARTNERS Oregon State University Private industry Utilities Nonprofits Local, state, federal government WHO BENEFITS Coast workers Offshore equipment technicians Utility employees Metals manufacturers Fabricate energy collection & network components The state economy Estimated labor ROI: 243 new jobs INVESTMENT Total : $5.23 million $600K – Administration $400K – OSU research $1M – Federal licensing $1M – Research $2.23M – Production incentives Off shore energy devices must be manufactured and serviced. 8
Slide 9: Established Industry: Food/Seafood Expanding Markets for Oregon Products VISION Help state’s food industry increase productivity and expand markets worldwide. GOALS  Launch NW Visioning, Innovation and Productivity (VIP) Center in collaboration with Food Innovation Center Produce growers need help finding new packaging techniques and markets. ADVANTAGE The proposed investment will help a mature $6 billion industry significantly grow and add jobs.  Support seafood businesses through the Community Seafood Initiative 9
Slide 10: Established Industry: Food/Seafood Expanding Markets for Oregon Products PARTNERS Food Innovation Center Oregon State University OSU Seafood Lab Fisheries industry Agricultural industry WHO BENEFITS Oregon Industries Dairy industry Exporters Farmers Fruit growers Orchardists Ranchers Seafood industry Specialty food packagers Winegrowers INVESTMENT Total : $4.6 million $3.7M – Launch NW VIP Center $900K – Community Seafood Initiative How do we expand markets for Oregon’s famous wine and cheese? The state economy Estimated labor ROI: 140 new jobs 10
Slide 11: Established Industry: Manufacturing Enhancing Competitiveness in a Core Oregon Industry VISION Ensure the industry has access to equipment, technology and skilled workers it needs to thrive in the 21st Century. GOALS  Expand applied research capability by adding senior faculty at PSU  Acquire new equipment used in existing laboratories  Improve skills training  Match funds with industry-funded university programs ADVANTAGE One in seven Oregon workers are employed by the state’s manufacturing industry. Oregon can build on its reputation for innovation while creating family-wage jobs. Can we help Oregon Iron Works build streetcars in America? 11
Slide 12: Established Industry: Manufacturing Enhancing Competitiveness in a Core Oregon Industry PARTNERS OECDD Oregon University System Portland State University ETIC Mfg 21 Coalition WHO BENEFITS Oregon Industry Specialty instrument makers Metals fabricaters Recreational vehicle builders The state economy Estimated ROI: 86 new jobs INVESTMENT Total : $3.37 million $1 M – Increase Oregon Metals Initiative funding $500,000 – Equipment for applied research $1.87 M - 3 new faculty Helping manufacturers stay competitive…PSU’s engineering college will get specialized equipment for applied research. 12
Slide 13: Oregon’s Successful Nanotech Collaboration Signature Research: ONAMI VISION Continue Oregon’s leadership in nanotechnology and create new companies and products based on ONAMI research. GOALS  Hire 4-6 world-class researchers  Leverage $40M in additional federal and private funding  Add 3-8 new firms commercializing ONAMI technology  Reduce need for state support in future  $200K-$500K in licensed revenue to State of Oregon ADVANTAGE ONAMI helps industry in Oregon stay competitive while creating new tools for making materials stronger and more versatile. Oregon’s first Signature Research Center – ONAMI – is about thinking small to achieve big results. 13
Slide 14: Oregon’s Successful Nanotech Collaboration Signature Research: ONAMI PARTNERS Oregon University System Oregon OHSU/OGI High technology industry PNNL WHO BENEFITS Companies in Oregon Ascend Instruments ClearEdge Power Crystal Clear Technologies DeepPhotonics Electro Scientific Industries Merix Corporation Umpqua Research Co. Hewlett-Packard Co. The state economy Estimated ROI: 998 new jobs INVESTMENT Total : $10 million $2.5M - researcher recruiting $2M - match federal grants $3.5M - fund for commercialization $1M - facilities & technology $1M - administration Researchers have created a credit cardsized reactor that produces Biodiesel from canola oil and alcohol – great for Eastern Oregon farmers. 14
Slide 15: Expanding Oregon’s Leadership in Renewable Industries Signature Research: Bio-Economy GOALS VISION Create the Bio-Economy & Sustainable Technologies (BEST) Center to develop technologies that have near-term impact for industries, such as bio-fuels and bio-products. ADVANTAGE BEST will leverage Oregon’s international leadership in sustainability & natural resource base. Canola fields of Madison Farms in Eastern Oregon – a source for bio-diesel fuel?  Secure at least $1M in foundation funding for start-up  Raise $5M in federal/private research funding by 2009  Establish a commercialization mechanism  Develop sponsored research with at least 4 Oregon companies 15
Slide 16: Expanding Oregon’s Leadership in Renewable Industries Signature Research: Bio-Economy PARTNERS OSU, PSU, U of O OR Institute of Technology ONAMI Portland Comm. College Mt. Hood Comm. College Industry partners WHO BENEFITS Oregon Industry Alternative energy Forest products Green chemistry Horticulture Sustainable agriculture Urban planning Renovated Blitz Weinhard brew house – one of Gerding Edlen Development’s many green building projects. INVESTMENT Total : $3 million Business Plan Center Start-up The state economy Estimated ROI: 187 new jobs 16
Slide 17: Signature Research: Infectious Disease Drug Discovery Research for National Security & Health VISION Help Oregon medical researchers create drugs that will fight infectious diseases by establishing OTRADI – Oregon Translational Research & Drug Development Institute (OTRADI). GOALS  Provide seed funds to create new Signature Research Center  Expand university research capacity  Leverage private and federal funding  Generate state revenue through service and licensing fees ADVANTAGE Builds on research expertise in infectious diseases and establishes leadership in developing & licensing new drugs. Creating OTRADI will help universities find new ways to fight HIV, SARS, malaria and other diseases. 17
Slide 18: Signature Research: Infectious Disease Drug Discovery Research for National Security & Health PARTNERS Oregon Drug Development Accelerator Company (ODAC) Oregon University System Oregon Health & Science University/OGI WHO BENEFITS Oregon Industry Drug companies operating under license deals Groups fighting infectious outbreaks can focus on new approaches. INVESTMENT Total : $7 million Equipment Personnel & Operations Research & Faculty The state economy Estimated ROI: 147 new jobs 18
Slide 19: Extensive Business Participation Columbia Forest Products Jeld-Wen Weyerhauser, Inc. Treasure Valley Renewable Resources, Inc. Madison Farms Pendleton Grain Growers SeQuential Biofuels IdaTech ClearEdge Power Century West Engineering Energy Outfitters PV Powered LLC The Mountain Group The Boeing Company Columbia Wire & Iron ESCO Corporation Leupold & Stevens, Inc. Monaco Coach IDC Architects More than 40 companies from around the state participated in proposals to Oregon InC. Trexler Climate & Energy Svc. Clean Edge Celilo Group Media Shore Bank Pacific Nth Power 3M Precision Optics Barco Medical Imaging Syst. CompView Enuclia Semiconductor Hewlett Packard InFocus Intel Max Viz Pixelworks TekTronix Chemica, Inc. Bend Research Siga Technologies, Inc. Virogenomics, Inc. FEI …………. AND MORE! 19
Slide 20: The Oregon InC Timeline SUCCESSES TO DATE  Presented plan to Governor and Legislature in September  Governor’s 2007-09 Budget includes full $38.172 million package Next stop: State Capitol NEXT STEPS  Legislative review and adoption  OECDD/ council manages investments (quarterly audits against performance measures)  Oregon InC develops 2009 recommendations 20
Slide 21: How can you get involved? NOMINATE 1. Nominate a business or entrepreneur to the “Oregon Innovators Hall of Fame” on our website. 2. Encourage local industries to develop proposals for the 2009 Innovation Plan. All proposals and nominations should be directed to Oregon InC staff; contacts listed on next page. ADVOCATE 3. Call, write or visit your legislator to let them know you support this important investment in Oregon’s economic future. 4. Spread the word about Oregon InC and the 2007 Innovation Plan! Visit our website! www.oregoninc.org 21
Slide 22: For more information… Visit the Oregon InC website: www.oregoninc.org Or contact staff: Marian Hammond Innovation & Economic Strategies Division Manager Oregon Economic & Community Development Department Phone: (503) 229-5226 E-mail: marian.j.hammond@state.or.us Suzy Funkhouser Innovation Council Coordinator Phone: (503) 229-5116 E-mail: suzy.funkhouser@state.or.us