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Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
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Building the Illinois
Innovation Economy

Summary of a Symposium

Charles W. Wessner, Rapporteur

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

NATIONAL RESEARCH COUNCIL
OF THE NATIONAL ACADEMIES

THE NATIONAL ACADEMIES PRESS

Washington, D.C.

www.nap.edu

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

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. Additional support was provided by The International Institute for Nanotechnology at Northwestern University, The Illinois Science and Technology Coalition, the Heinz Endowments, the Association of University Research Parks, Acciona Energy, Dow Corning, IBM, and SkyFuel, Inc.

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: 978-0-309-27869-0
International Standard Book Number 10: 0-309-27869-4

Additional copies of this report are available for sale from the National Academies Press, 500 Fifth Street, NW, 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

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

THE NATIONAL ACADEMIES

Advisers to the Nation on Science, Engineering and Medicine

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

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
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Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

Committee on Competing in the 21st Century:
Best Practice in State and Regional Innovation Initiatives*

Mary L. Good (NAE), Chair

Dean Emeritus, Donaghey College of Engineering and Information Technology

Special Advisor to the Chancellor for Economic Development

University of Arkansas at Little Rock

Michael G. Borrus

Founding General Partner

X/Seed Capital Management

William C. Harris

President and CEO

Science Foundation Arizona

W. Clark McFadden II

Senior Counsel

Orrick, Herrington & Sutcliffe LLP

David T. Morgenthaler

Founding Partner

Morgenthaler Ventures

Edward E. Penhoet (IOM)

Director

Alta Partners

Tyrone C. Taylor

President

Capitol Advisors on Technology, LLC

*As of December 2012

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

PROJECT STAFF

Charles W. Wessner

Study Director

Alan H. Anderson

Consultant

McAlister T. Clabaugh

Program Officer

Sujai J. Shivakumar

Senior Program Officer

David S. Dawson

Senior Program Assistant

David E. Dierksheide

Program Officer

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

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

President

Alfred P. Sloan Foundation

Ernst R. Berndt

Louis E. Seley Professor in Applied Economics

Massachusetts Institute of Technology

John Donovan

Chief Technology Officer

AT&T Inc.

Alan M. Garber (IOM)

Provost

Harvard University

Ralph E. Gomory (NAS/NAE)

Research Professor

Stern School of Business

New York University

Mary L. Good (NAE)

Dean Emeritus, Donaghey College of Engineering and Information Technology

Special Advisor to the Chancellor for Economic Development

University of Arkansas at Little Rock

William H. Janeway

Partner

Warburg Pincus, LLC

Richard K. Lester

Japan Steel Industry Professor

Head, Nuclear Science and Engineering

Founding Director, Industrial Performance Center

Massachusetts Institute of Technology

*As of September 2012.

Page viii Cite
Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
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William F. Meehan III

Lecturer in Strategic Management

Raccoon Partners Lecturer in Management

Graduate School of Business

Stanford University

and

Director Emeritus

McKinsey and Co., Inc.

David T. Morgenthaler

Founding Partner

Morgenthaler Ventures

Luis M. Proenza

President

The University of Akron

William J. Raduchel

Chairman

Opera Software ASA

Kathryn L. Shaw

Ernest C. Arbuckle Professor of Economics

Graduate School of Business

Stanford University

Laura D’Andrea Tyson

S.K. and Angela Chan Professor of Global Management

Haas School of Business

University of California, Berkeley

Harold R. Varian

Chief Economist

Google, Inc.

Alan Wm. Wolff

Senior Counsel

McKenna Long & Aldridge LLP

STEP Staff

Stephen A. Merrill

Executive Director

Paul T. Beaton

Program Officer

McAlister T. Clabaugh

Program Officer

Aqila A. Coulthurst

Program Coordinator

Charles W. Wessner

Program Director

David S. Dawson

Senior Program Assistant

David E. Dierksheide

Program Officer

Sujai J. Shivakumar

Senior Program Officer

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×
Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
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Page xiii Cite
Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

Preface

Responding to the challenges of fostering regional growth and employment in an increasingly competitive global economy, many U.S. states and regions have developed programs to attract and grow companies as well as attract the talent and resources necessary to develop innovation clusters. These state and regionally based initiatives have a broad range of goals and increasingly include significant resources, often with a sector focus and often in partnership with foundations and universities. These are being joined by recent initiatives to coordinate and concentrate investments from a variety of federal agencies that provide significant resources to develop regional centers of innovation, business incubators, and other strategies to encourage entrepreneurship and high-tech development.

PROJECT STATEMENT OF TASK

An ad hoc committee, under the auspices of the Board on Science, Technology, and Economic Policy (STEP), is conducting a study of selected state and regional programs to identify best practices with regard to their goals, structures, instruments, modes of operation, synergies across private and public programs, funding mechanisms and levels, and evaluation efforts. The committee is reviewing selected state and regional efforts to capitalize on federal and state investments in areas of critical national needs. This review includes both efforts to strengthen existing industries as well as specific new technology focus areas such as nanotechnology, stem cells, and energy in order to improve our understanding of program goals, challenges, and accomplishments.

As a part of this review, the committee is convening a series of public workshops and symposia involving responsible local, state, and federal officials and other stakeholders. These meetings and symposia will enable an exchange of views, information, experience, and analysis to identify best practice in the range of programs and incentives adopted.1

___________________

1To date, the Committee has convened meetings to review state and regional programs in Arkansas, Hawaii, Michigan, and Ohio. See for example, National Research Council, Building the Arkansas Innovation Economy: Summary of a Symposium, Charles W. Wessner, Rapporteur, Washington, DC:

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
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Drawing from discussions at these symposia, fact-finding meetings, and commissioned analyses of existing state and regional programs and technology focus areas, the committee will subsequently produce a final report with findings and recommendations focused on lessons, issues, and opportunities for complementary U.S. policies created by these state and regional initiatives.

THE CONTEXT OF THIS PROJECT

Since 1991, the National Research Council, under the auspices of the Board on Science, Technology, and Economic Policy, has undertaken a program of activities to improve policymakers' understandings of the interconnections of science, technology, and economic policy and their importance for the American economy and its international competitive position. The Board's activities have corresponded with increased policy recognition of the importance of knowledge and technology to economic growth.

One important element of STEP’s analysis concerns the growth and impact of foreign technology programs.2 U.S. competitors have launched substantial programs to support new technologies, small firm development, and consortia among large and small firms to strengthen national and regional positions in strategic sectors. Some governments overseas have chosen to provide public support to innovation to overcome the market imperfections apparent in their national innovation systems.3 They believe that the rising costs and risks associated with new potentially high-payoff technologies, and the growing global dispersal of technical expertise, underscore the need for national R&D programs to support new and existing high-technology firms within their borders.

Similarly, many state and local governments and regional entities in the United States are undertaking a variety of initiatives to enhance local economic development and employment through investment programs designed to attract

_____________________________________________

The National Academies Press, 2012. See also National Research Council, Building Hawaii’s Innovation Economy: Summary of a Symposium, Charles W. Wessner, Rapporteur, Washington, DC: The National Academies Press, 2012. The Committee has also convened meetings to review federal and state policies to encourage the development of innovation clusters. See National Research Council, Growing Innovation Clusters for American Prosperity: Summary of a Symposium, Charles W. Wessner, Rapporteur, Washington, DC: The National Academies Press, 2011.

2For a review of growth of national programs and policies around the world to support research and accelerate innovation, and the resulting challenges facing the United States, see National Research Council, Rising the Challenge: U.S. Innovation Policies for the Global Economy, Charles W. Wessner and Alan Wm. Wolff, eds., Washington, DC: The National Academies Press, 2012.

3For example, a number of countries are investing significant funds in the development of research parks. For a review of selected national efforts, see National Research Council, Understanding Research, Science and Technology Parks: Global Best Practices—Report of a Symposium, Charles W. Wessner, ed., Washington, DC: The National Academies Press, 2009.

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

knowledge-based industries and grow innovation clusters.4 These state and regional programs and associated policy measures are of great interest for their potential contributions to growth and U.S. competitiveness and for the “best practice” lessons that they offer for other state and regional programs.

STEP’s project on State and Regional Innovation Initiatives is intended to generate and share a better understanding of the challenges associated with the transition of research into products, the practices associated with successful state and regional programs, and their interaction with federal programs and private initiatives. The study seeks to achieve this goal through a series of complementary assessments of state, regional, and federal initiatives; analyses of specific industries and technologies from the perspective of crafting supportive public policy at all three levels; and outreach to multiple stakeholders. The overall goal is to improve the operation of state and regional programs and, collectively, enhance their impact.

THIS SUMMARY

The symposium reported in this volume convened state officials and staff, business leaders, and leading national figures in early-stage finance, technology, engineering, education, and state and federal policies to review challenges, plans, and opportunities for innovation-led growth in Illinois. These symposium participants assessed Illinois’ academic, industrial, and human resources, identified key policy issues, and engaged in a discussion of how the state might leverage regional development organizations, state initiatives, and national programs focused on manufacturing and innovation to support its economic development goals. The conference agenda, listing the speakers and their presentations, is found in Appendix A of this volume. Appendix B provides the biographies of these speakers. A full list of participants is found in Appendix C of this report.

This conference, as with any single meeting, was necessarily limited in its scope. While it did not (and indeed could not) develop in-depth analyses of the full variety of industries present in the state, the conference did focus on the biotechnology sector as a leading exemplar of an innovation driven industry. The emerging partnerships among academia, industry, and government in biotechnology are, in particular, illustrative of a wider set of initiatives underway in Illinois to grow the state’s innovation ecosystem. A more complete list of Illinois innovative industries would include advanced manufacturing, bio-fuels, renewable energy, digital media, financial technologies, and retail and consumer businesses.

This summary includes an introduction that highlights key issues raised at the meeting and a summary of the meeting’s presentations. This workshop

___________________

4For a scoreboard of state efforts, see Robert Atkinson and Scott Andes, The 2010 State New Economy Index: Benchmarking Economic Transformation in the States, Washington, DC: Kauffman Foundation and ITIF, November 2010.

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
×

summary has been prepared by the workshop rapporteur as a factual summary of what occurred at the workshop. The planning committee’s role was limited to planning and convening the workshop. The statements made are those of the rapporteur or individual workshop participants and do not necessarily represent the views of all workshop participants, the planning committee, or the National Academies.

ACKNOWLEDGMENTS

On behalf of the National Academies, we express our appreciation and recognition for the insights, experiences, and perspectives made available by the participants of this meeting. We would particularly like to recognize the vision and initiative of Jerry Lee and Larry Nagahara of the National Cancer Institute, and the leadership and support of Chad Mirkin of Northwestern University. We would also like to express the Academies’ appreciation of Kathleen Cook of Northwestern University and Ted Fetters of the Illinois Science & Technology Coalition. Their support and interest were instrumental to the quality and high-level participation of the conference. Special thanks are also due to McAlister Clabaugh of the STEP staff, for his many contributions to the organization of the conference.

We are also indebted to Alan Anderson for preparing the draft introduction and summarizing the proceedings of the meeting, as we are to Sujai Shivakumar for his substantive contributions and editorial skills.

NATIONAL RESEARCH COUNCIL REVIEW

This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Academies’ Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for quality and objectivity. The review comments and draft manuscript remain confidential to protect the integrity of the process.

We wish to thank the following individuals for their review of this report: Amy Francetic, Clean Energy Trust; Lisa Freeman, Northern Illinois University; Neil Kane, Illinois Partners Executive Services; and Jan Youtie, Georgia Institute of Technology.

Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the content of the report, nor did they see the final draft before its release. Responsibility for the final content of this report rests entirely with the rapporteur and the institution.

Mary L. Good

Charles W. Wessner

Suggested Citation:"Front Matter." National Research Council. 2013. Building the Illinois Innovation Economy: Summary of a Symposium. Washington, DC: The National Academies Press. doi: 10.17226/14684.
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Responding to the challenges of fostering regional growth and employment in an increasingly competitive global economy, many U.S. states and regions have developed programs to attract and grow companies as well as attract the talent and resources necessary to develop innovation clusters. These state and regionally based initiatives have a broad range of goals and increasingly include significant resources, often with a sector focus and often in partnership with foundations and universities. These are being joined by recent initiatives to coordinate and concentrate investments from a variety of federal agencies that provide significant resources to develop regional centers of innovation, business incubators, and other strategies to encourage entrepreneurship and high-tech development.

Building the Illinois Innovation Economy is a study of selected state and regional programs to identify best practices with regard to their goals, structures, instruments, modes of operation, synergies across private and public programs, funding mechanisms and levels, and evaluation efforts. This report reviews selected state and regional efforts to capitalize on federal and state investments in areas of critical national needs. This review includes both efforts to strengthen existing industries as well as specific new technology focus areas such as nanotechnology, stem cells, and energy in order to improve our understanding of program goals, challenges, and accomplishments. As a part of this review, The Committee on Competing in the 21st Century: Best Practice in State and Regional Innovation Initiatives is convening a series of public workshops and symposia involving responsible local, state, and federal officials and other stakeholders. These meetings and symposia will enable an exchange of views, information, experience, and analysis to identify best practice in the range of programs and incentives adopted.

Building the Illinois Innovation Economy summarizes discussions at these symposia, fact-finding meetings, and commissioned analyses of existing state and regional programs and technology focus areas, the committee will subsequently produce a final report with findings and recommendations focused on lessons, issues, and opportunities for complementary U.S. policies created by these state and regional initiatives.

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