innovation

There is now a clear consensus that

competitiveness and prosperity in the

21st century will be based on technology,

knowledge, and innovation. Innovation—the

process by which new ideas enter the economy

and change what is produced, how it is produced,

and the way production itself is organized1

—drives productivity growth, which in turn drives

economic growth. In fact, economists calculate

that roughly 50% of annual U.S. GDP growth is

attributable to increases in innovation.2

Innovation is not confined to “high tech”

industries or any particular type of company.

It impacts all industries—from agriculture to

aerospace and everything in between. While

commonly associated with start-up companies,

innovation is equally relevant to the continued

competitiveness of established companies.

The innovation process—taking an idea from

conception to success in the market—can be long

and complex. New technologies don’t appear

from nowhere, they are born out the creativity of

scientists and inventors, tested and developed,

invested in, refined, and brought to fruition

through the efforts of dedicated entrepreneurs,

technicians, and new companies and early

adopters. When any piece of this system is

missing, the process breaks down.

Accordingly, creating innovation-based growth

and developing the factors that generate and

support it must be at the heart of Florida’s

economic development efforts going forward.

innovation

38

STRATEGIC PRIORITY:

2010 -2015 Strategic Plan for Economic Development

“Innovation—not euros, yen, or dollars—is the currency of today’s global economy. Innovation fuels productivity, attracts investment, and stimulates economi c growth. Where innovation thrives, the successful enterprises of the 21st century will, too.”

eflorida.com

If Florida is to be a leading state in the innovation economy,

it must, at a minimum, be among leading U.S. states. Since

Florida is the nation’s 4th most populous state, based simply

on its size Florida must rank 4th among states to claim its

proportionate share of R&D, venture capital, and other

innovation inputs and outputs.

However, as the table shows, Florida is punching below its

weight across a variety of measures of its ability to support

innovation-based growth, from the beginning of the process

to the end.

Florida leaders have recognized the need to build a strong

innovation foundation in the state and taken significant steps

to do so. From its major investments in leading research

institutions—Scripps, Burnham, Max Planck, Torrey Pines, SRI,

and its own university system—to newly created gap funding

and venture capital programs, Florida is on the right track and

already seeing returns.

Where We Are Now Where We Need To Be

IndIcator

FlorIda’s rank

among states

IndIcator Value

Value oF 4th ranked

stategap

R&D Expenditures 16 $6.3 billion $17.1 billion $10.8 billion

Patents 12 2,046 3,517 1,471

SBIR 11 $46.1 million $86.8 million$40.7

million

Business Incubators 4 46 - -

University Start-ups 6 19 29 10 start-ups

Venture Capital 16 $239 million $1.3 billion $1.06 billion

Forum Photo

Where We Are Today and Where We Need to Be

What You Told UsEconomic development stakeholders from every part of the state called for an increased focus on innovation as the means of improving the competitiveness of Florida’s companies and regions. Innovation must become a new foundation of Florida’s economy, supplementing and enhancing the state’s long standing bases of activity in construction, tourism, and agriculture. Florida must make a sustained commitment to grow its innovation economy by investing in its research institutions, talent, and commercialization support structure, recognizing that many of the nation’s most successful innovation centers took decades to develop.

392010 -2015 St r ate gic Plan f o r Economic D eve lo p ment

96% of online survey respondents agree that investing in Florida’s innovation economy is still a leading priority and critical to the state’s economic future.

Above: Lieutenant Governor Kottkamp provided the keynote at the East Central Region Roadmap forum. He highlighted the need to grow Florida’s own ‘research triangle’.

Below: Innovation was an important topic at the Southeast Region Roadmap forum, which drew over 300 attendees.

2010 -2015 St r ate gic Plan f o r Economic D eve lo p ment40

GeNerATioN of

NeW ideAsCommerCiAlizATioN

• Patents

• Prototype/ ProofofConcept

• Pre-seedcapital/grants/gapfunding

• Startupformation

• Licensing

• Incubator&wetlabfacilities

• Technicalassistance/mentoring

• Start-up/earlystagecapital

• Financing/investment

• Seasonedmanagementtalent

• University-industrypartnership

GroWTh

INNOvATION

Recommendation#4

ExpandOutreachandSupport

StructurestoHelpCompaniesBeMore

Innovative

Recommendation#2

AccelerateCommercializationandStart-upActivity

Recommendation#3

ImproveAccesstoVentureCapital —EspeciallyEarlyStageCapital

Recommendation#1

ExpandR&DBaseasFoundationof

InnovationEconomy

SOURCES:

• UniversityR&D

• Non-profit/ResearchInstitutionR&D

• CorporateR&D

• Entrepreneurs

• Federal&MilitaryR&D

REQUIRES:

• Businessclimatethatpromotesinvestment&adoptionofinnovativetechnologies

• Continuousimprovement

• Appropriatelyskilledworkforce

COMMERCIALIZATIONPROCESSANDNEEDS:

R o A d m A p R e c o m m e N d A T i o N s

i n n o v a t i o n v a l u e c h a i n


R&D is the term applied to the efforts of scientists, engineers, entrepreneurs, and inventors to develop new knowledge and apply it to create new and improved products, processes, and services. It includes three levels of activity—basic research, applied research, and experimental development—conducted at academic institutions, corporations, research hospitals, non-profit research institutes, federal laboratories, military facilities, and more.

As the source of the ideas and discoveries that fuel the development of new products and services, R&D is the foundation of the innovation economy. Studies by the U.S. Department of Commerce’s Office of Technology Policy and others have found that all areas of technology-based economic development in the U.S. have strong concentrations of university and private research.

3 A Milken Institute study found that

research centers and institutes are “undisputedly the most important factor in incubating high tech industries”.

4 Without a strong R&D base, it is not

possible to build a robust innovation pipeline.

Unfortunately, according to the most recent data, Florida—the nation’s 4th most populous state—ranks 16th among states in total R&D spending (with $6.3 billion in R&D in 2006). Even more, Florida ranks 42nd in R&D intensity (R&D as a share of state GDP) at a level 65% below the national average. Its standing

has changed little over the last decade.

Action is needed to expand all types of R&D in Florida.

iNNovATioN RecommeNdATioN #1

Expand Florida’s R&D Base as the Foundation of the Innovation Economy

expand University and Non-profit R&dOne need only look to Silicon Valley, Boston/the Route 128 Corridor,

Austin, and the Research Triangle to understand the vital role that

strong academic and private research centers can play as engines

of economic growth. The research these institutions generate helps

both to enhance the competitiveness of regional industries, and to

attract and produce highly skilled workers.

Florida’s universities and colleges invest more than $1.5 billion in R&D

a year, ranking 10th among states.

In building Florida’s academic and non-profit R&D base, special

focus should be given to attracting larger shares of federal funding.

Florida currently claims only 3% of federal R&D funding—half of its

proportionate share (roughly 6%).5

Invest in the 21st Century World Class Scholars program. X

Attracting nationally prominent faculty has been shown to be

crucial to attracting external research funding and building

institutional R&D capacity, as more than 90% of the most

significant research is performed by less than 10% of faculty.6

World class/eminent scholar programs are tested, best practice

programs—used in Texas, Georgia, North Carolina, South

Carolina, and more with great success7 —that fund endowed

chairs to recruit faculty with proven records of successfully

competing for federal funding and R&D awards. Florida

provided a one-time appropriation for its own 21st Century

World Class Scholars program in 2006 that was used to attract

16 leading scientists to the state. Meanwhile, several other states

provide annual funding that in some cases exceeds Florida’s one

time investment of $20 million.8

Expand university Centers of Excellence. X Over the past

several decades states across the nation have invested in multi-

disciplinary university research “Centers of Excellence” designed

to build strengths in strategic areas aligned with key regional

and state industry needs, and charged with putting a special

emphasis on technology commercialization. Florida established

its own Centers of Excellence program in 2001, and between

2002 and 2007 invested $84.6 million to establish 11 centers

in fields ranging from photonics to ocean energy to hurricane

damage mitigation. These centers have proven successful

in leveraging federal research funding, generating start-up

companies, and producing highly trained graduates.9

ACTION ITEmS

expand university and non-profit r&d

expand corporate r&d

expand military r&d

# 1i N N o v A T i o N R e c o m m e N d A T i o N


Attract more federal R&D funding to Florida. X One often

cited reason for Florida’s failure to capture its proportionate

share of federal R&D funding is its lack of major federal

research facilities and federally funded research and

development centers (FFRDCs). For example, of the 39

FFRDCs—which alone claim approximately 15% of federal

R&D funding—Florida is home to none.10

Federal agencies regularly release proposal solicitations

for new research grants and centers to address emerging

federal research priorities. These opportunities are typically

administered by and/or housed at state research universities,

and their award requires matching funding from these

partner institutions. Florida should consider establishing a

special purpose fund—either through the expansion of the

Innovation Incentive Fund (see Business Climate section) or

the creation of a new academic fund— to help its universities

more effectively compete.

expand corporate R&dCompanies invest in R&D to develop new-to-the-world

technologies and improve existing products and services in order

to build and maintain their standing in increasingly competitive

global markets. The rise and ongoing success of companies such

as Intel, Cisco, Google, Boeing, Genentech, and countless others

owes to their commitment to innovation and ongoing research and

development.

In recognition of the vital role that R&D plays in supporting and

improving their continued competitiveness, U.S. businesses invest

more than $220 billion in R&D each year—approximately two-

thirds of total U.S. R&D spending.

Florida currently ranks 17th in corporate R&D investment and

36th in corporate R&D intensity (corporate R&D as a share of

GDP). Improving corporate R&D performance must be an area of

particular concern for Florida.

Enact a state R&D tax credit. X Research convincingly

shows that the federal R&D tax credit is an effective tool

for stimulating corporate R&D investment, which in turn

stimulates faster economic growth. Building on this success,

more than 30 states have created state-level R&D tax credit

programs. These state-level programs have also been shown

to increase corporate R&D investment and the number of

high technology establishments within a state.11

In fact, of

the 16 states that rank higher than Florida is corporate R&D,

only 1 does not have an R&D tax credit, and 9 of the top 10

states in R&D intensity have state R&D tax credit programs in

place.

Include transferability of credits to provide a revenue ystream for innovative young companies that often cannot secure traditional financing and face capital gaps

Please refer to the Business Climate section of this document for

further discussion.

Expand and invest in the Innovation Incentive Fund at a X

significant level.

Please refer to the Business Climate section of this document for

further discussion.

expand military R&dThe U.S. Department of Defense spent roughly $80 billion on R&D

in fiscal year 2008—about 60% of the entire federal R&D budget.

This massive and growing level of investment—combined with a

long and impressive track record of developing technologies with

enormous potential for commercial application (e.g. ARPANET

to internet and satellite technologies used across consumer

electronics and communications devices)—make maintaining

and expanding military R&D an important part of Florida’s R&D

strategy.

Leverage Florida’s existing military R&D and defense X

industry base. Florida is fortunate to have strong military

presence that includes major research facilities such as the

Naval Surface Warfare Center in Panama City, Team Orlando

(simulation and training), and Air Force Research Laboratory

Munitions Directorate at Eglin, as well as many of the

nation’s leading defense contractors. Enterprise Florida and

the Florida Defense Alliance should develop a strategy to

leverage defense industry and military R&D.


A good idea is not enough on its own to guarantee the development of a promising new technology or start-up. Before an idea can find its way into a new or improved product or service, or be “commercialized”, it must be refined and tested, demonstrate feasibility and market value, enter production, and more.

New ideas and their champions must be supported through the process with the right legal protections, business support services, facilities, talent, and early stage capital—all of which remains in too short a supply in Florida.

Accordingly, Florida must continue to build the foundations for increased technology commercialization activity statewide.


Accelerate the Commercialization Process & Support Start-up Activity

provide commercialization Funding AssistanceWithout financing at the earliest stages, many young ventures will

never be able to get off of the ground. Pre-seed /“gap” funding

is needed to secure patents, for business plan development, to

complete proof of concept testing, for prototype development, and

other core planning and business development milestones.

Both in Florida and in the U.S., gap funding is in short supply.

Especially after the dot com bust and recent economic crisis, many

venture capitalists prefer to invest in shorter-term and later stage

opportunities. Recognizing a need and an opportunity to help

support homegrown, innovation-based growth, it has become quite

common for states fill in the funding gap with small amounts of very

early stage funding.12

These efforts take shape as grant programs,

loan programs, equity investments, and more. Many of Florida’s

competitors invest in these programs on an annual basis and/or

have provided cumulative funding levels far in excess of Florida’s

investments to date.

Continue to fund the State University Research X

Commercialization Assistance Grant (SURCAG) program

on an annual basis. In 2007, the Florida legislature established

SURCAG to provide early stage funding to support the

development of products and services arising from university

research. SURCAG grants were awarded to support technology

transfer office and commercialization activities including

securing patents, establishing start-up companies, developing

licensing agreements, and attracting private investments.

The program received a one-time appropriation of $2 million

(reduced during special session from $4 million)—all of which

was awarded in 2008.

Create matching grant programs to leverage the U.S. X

Small Business Innovation Research (SBIR) program.

The U.S. SBIR program is the nation’s largest innovation and

commercialization assistance program, offering competitively

awarded contracts/grants to stimulate technological innovation

among small private-sector businesses while providing

government agencies with new, cost-effective, technical and

scientific solutions to meet their mission needs.13

In total, 11

agencies federal agencies participate in the program, disbursing

over $1.9 billion in competitive awards to innovative small firms

each year.

ACTION ITEmS

provide commercialization funding assistance

strengthen statewide commercialization infrastructure



Research has shown the program to be effective in increasing

private sector commercialization—helping small technology

companies to advance projects and ultimately create and

market new products and services.

To help give their businesses a leg up in winning SBIR

funding, states across the U.S. have implemented SBIR

assistance programs, providing bridge funding, matching

funding, and technical assistance through the application

process and different phases of the SBIR program.

Florida, the nation’s 4th largest state, ranks 11th in total SBIR

funding—meaning that its businesses are losing out on their

share of this vital funding.

Continue the Florida SBIR Phase 0 program. y

Create an SBIR Phase II matching grant program. The yFlorida Legislature has considered, but not passed a bill to create a $5 million statewide SBIR Phase II matching grant program during each of the last several sessions. The creation of an SBIR matching grant program remains a leading priority for Florida’s business and economic development communities.

Create an SBIR Phase I matching grant program. y

Establish a Small Business Technology Investment pilot X

program. Enterprise Florida should implement a pilot

program to provide equity capital to technology companies

in partnership with the Institute for Commercialization of

Public Research. The pilot program will have the following

requirements: (1) small business technology companies will

be recommended for investment by the Institute, and (2)

companies will have raised an equal amount of capital from

other sources (1:1 match) up to $50,000 per investment. This

program will demonstrate the desirability and effectiveness

of state sponsored, seed stage investment in nascent

companies commercializing technology from publicly

supported research in Florida. $1,000,000 will be committed

to this pilot program from the Small Business Technology

Growth Fund, and investment of funds will be under the

authority granted by 288.95155, F.S. No appropriation is

required for the pilot program, but if the pilot program is

efficacious, appropriations would be required to continue the

program in future years.

strengthen the statewide commercialization infrastructure Hard and soft commercialization infrastructure—including

incubators and associated business support services, research

parks, and commercialization assistance programs—provide and

connect entrepreneurs and emerging businesses with resources

that help increase their chances of success.

Expand the statewide network of incubators, X

accelerators, and research parks. While no single model

is used across all such facilities, in general, incubators,

accelerators, and research parks provide flexible, low cost

space and offer business development services to start-up

and young companies. There is substantial evidence that

incubator/accelerator graduates benefit from improved

business survival rates. Florida boasts significant incubator

and research park infrastructure, but still has gaps that need

to be filled to provide greater geographic access.

Expand the role of the Institute for the X

Commercialization of Public Research. The Institute for

the Commercialization of Public Research (the Institute) is

a collaboration between the state university technology

transfer offices (led by University of Florida’s Office of

Technology Licensing). It was created in 2007 to serve as a

one-stop-shop for investors, entrepreneurs, and corporate

partners looking to develop new ventures based on publicly-

funded research from Florida’s public universities. It has since

been expanded to promote research arising from the state’s

other non-profit institutions—including SRI International,

H. Lee Moffitt Cancer Center, NASA Kennedy Space Center,

Scripps Florida, the University of Miami, the National Center

of Excellence for Simulation and Training, and many others.

Continue the expansion of the Institute’s partnership ywith non-profit and non-university institutions.

Expand the Institute to vet companies for seed and yearly stage grant programs.

Reinforce a culture of commercialization at all academic X

institutions. For Florida’s universities and colleges to truly

become drivers of economic growth, their intellectual

property and technological breakthroughs must be

effectively transferred to and commercialized by private


Global Commerce Forum, Miami Gardens

Southwest Regional Forum, Fort Myers

East Central Forum, Orlando

companies, preferably via in-state start-up formation and/or

licensing.

While Florida earns royalties from licensing agreements it

executes with out of state companies, it does not capture

the full potential job creation, tax revenue, corporate profits,

and other economic benefits of university technology

commercialization. To help boost start-up creation and

stimulate in-state commercialization efforts, Florida should

ensure that commercialization becomes a part of the DNA of

all Florida academic institutions.


Access to significant, consistent risk capital at all stages of development is integral to the creation and growth of small companies and their maturation into the leading companies of tomorrow. After all, young companies have little to no collateral with which to secure traditional bank loans and limited assets and track records with which to attract financing from private equity firms.

14

Angel and venture capitalists (VCs) help fill this need while providing valuable guidance to their portfolio companies. VCs typically take seats on portfolio companies’ boards, connect companies with resources and expertise for production, provide counsel, and offer advice in marketing and hiring.

15 Research has

shown that VC-backed companies outperform their peers and the economy as a whole in creating jobs and growing revenues.

16

Unfortunately, Florida is not the natural home of the venture capital industry, and therefore faces a significant disadvantage in attracting venture capital

investment.

In 2008, Florida claimed less than 1% of total U.S. venture capital investment—attracting just $239 million out of a total $28 billion (ranking 16th among states).


Improve Access to Venture Capital—Especially Seed & Early Stage Capital

ACTION ITEmS

Increase seed and early stage capital availability

Build Florida’s pool of management talent

increase early-stage capital Availability Thanks to its tendency to stop the development of even promising

start-ups before they can pick up steam, the dearth of start-up and

early stage financing is commonly known as the “valley of death”. A

lack of start-up/early stage capital is a problem both at the national

level and in Florida—and has only been exacerbated by the recent

economic turmoil as venture investors have shifted toward shorter-

term and later stage investments. In 2008, roughly 24% of total U.S.

venture capital investment was at the start-up/seed and early stage

level. In Florida, that share stood at only 12%.17

Continue implementation of and expand the Florida X

Opportunity Fund. The Florida Opportunity Fund was created

to expand the availability of seed and early stage capital in

Florida.

Continue implementation of the Florida yOpportunity Fund and investment in early stage deals on a fund-of-funds basis.

Use newly approved authority to invest stimulus yfunding directly into early stage deals.

Make seed funding a part of the Florida yOpportunity Fund portfolio.

The Florida Opportunity Fund was funded with a one-

time appropriation of $29.5 million. Pending successful

implementation, further investment will be needed to

overcome the magnitude of Florida’s seed and early stage

funding challenge.

Encourage Florida Growth Fund investment in early stage X

deals. The Florida Growth Fund will have the ability to invest

up to $250 million of capital on behalf of the State Board of

Administration in technology and growth enterprises that have

a significant presence in Florida, and is a big step in the right

direction to expand venture capital availability in Florida. To

make sure that the effort helps to address Florida’s most critical

venture capital challenges, a portion of the fund should be

invested in early stage deals.

Support the development of regional and state angel X

investment networks. Angel investors are critical to

technology commercialization, filling the capital gap at the

earliest stages. Florida’s high tech entrepreneurs have benefited

from the involvement of individual angels and angel groups,



but many opportunities remain to tap into Florida’s large pool

of high net worth individuals and the experience of retired

executives now living in the state. Florida should facilitate the

recruitment of “latent angels” into organized angel networks

and assist in matching angel investors with technology

commercialization opportunities (for example, through the

Institute for the Commercialization of Public Research).

Build Florida’s pool of seasoned management TalentThe quality of a young venture’s management team is one of

leading criteria used by VCs in evaluating potential investments.

Experienced entrepreneurs and managers are needed to be

able to carry out a business plan and bring an innovative idea to

fruition. In many cases the developer of a technology does not

have the industry or financial background needed to navigate long

and complex commercialization processes and regulatory and

compliance issues.

The nation’s leading innovation centers boast strong pools of

“serial entrepreneurs”—executives who have learned through

trial, error, and success what it takes to launch and grow startup

companies. Florida’s technology commercialization professionals

and venture capitalists regularly cite Florida’s limited pool of

seasoned management talent as a competitive weakness in

growing its innovation economy and attracting a larger share of

U.S. VC investment.

Building the ranks of Florida’s experienced, serial entrepreneurs,

CEOs, and supporting talent will require that Florida:

Recruit experienced talent to meet immediate needs. X

Expand “Entrepreneur in Residence” programs yacross the state.

More effectively tap into the pool of retired yexecutives living in Florida.

More aggressively market Florida and yits regions as locations with significant entrepreneurial opportunities.

Build the entrepreneurial talent base through relevant X

degree programs and intensive training “camps”,

including:

Professional Science Masters degree programs y

Entrepreneurship degree programs y

Regional entrepreneur “boot camps”, yemerging companies academies, and similarly

focused efforts

fiNANCiNG sTAGeTime siNCe START-UP

formATioN

TyPICALAMOUNT

TyPICALFUNDINgSOURCES

Pre-Seedfinancing is invested to support applied research with the aim of developing a new product or startup. Often used for IP protection, feasibility study, and similar.

In process of formation or first few months of operation

$10,000 - $50,000

Public Sector, Founders,

Private Investors

Seed/Start-upfinancing is used by a company that has a product under development. Often used for prototype development, market research, initial marketing, staff, and similar.

Usually less than

18 months

$50,000 - $500,000

Founders, Angel Investors, Public

Sector, Venture

Capitalists

EarlyStagefinancing is working capital used by a company with product or service in testing or pilot production. Product may be available. May or may not be generating revenue.

Usually less than 3 years

$500,000 - $5,000,000

Venture Capitalists

ExpansionStageCapital is used by a company with a product or service that is in production/commercially avilable, and demonstrating significant revenue growth

Usually more than

3 years

$2,000,000 and up

Venture Capitalists

LaterStageFinancing is used by companies whose products or services are widely available and generating on-going revenue. May include spinouts of operating divisions of existing private companies and established private companies.

Usually more than

3 years

$5,000,000 and up

Venture Capitalists

Adapted from the National Venture Capital Association (NVCA) and National Association of Seed and Venture Funds (NASVF)


As previously noted, innovation is not just the domain of start-ups and is not confined to high tech industries—it is imperative for manufacturers and service providers across all industries to leverage opportunities to adopt new technologies.

However, a lack of organizational capacity and in-house expertise, unfamiliarity, high costs, and other factors can prevent firms from taking full advantage of innovation and adopting new technologies that can help boost competitiveness and productivity.

expand Technical Assistance and outreach for small Businesses

Leverage the Florida manufacturing Extension Partnership X

(mEP). The Florida MEP is part of a nationwide network of

technical, manufacturing and business specialists linked

together by the U.S. Department of Commerce and the National

Institute of Standards and Technology (NIST) to help improve

the competitiveness of small and medium sized manufacturers.

MEP staff help companies integrate new and innovative

technologies, assist with technology transfer, develop product

commercialization strategies, benchmark business practices,

improve production processes, and enhance technology core

competencies.

Leverage Florida’s Small Business Development Center X

(SBDC) Network. The Florida SBDC Network is a statewide

partnership between higher education and other stakeholder

organizations dedicated to providing entrepreneurs and

established businesses with the assistance needed to

start, grow and succeed. Through its Business Technology

Commercialization Program, Florida’s 35 SBDC’s link small and

medium enterprises to university resources and technology

licensing opportunities; business service providers; small

business incubators; technology networks, and the federal SBIR

and STTR programs.

Build Regional and inter-Regional innovation Networks statewide. Networks—both physical and virtual—are essential to spurring

technology commercialization and innovation-driven growth. When

researchers, entrepreneurs, and investors are in close contact and

have sufficient inputs at their disposal, innovation happens. Florida

universities and economic developers have been working for years

to build the state’s R&D and talent base, incubators, lab space, pilot

manufacturing/prototype facilities, entrepreneurial and business

development programs, and more. While much work remains to be

done in this area, much stands to be gained simply by bringing all of

these ingredients together and enhancing coordination among them

on a regional and inter-regional basis.

Regional and inter-regional innovation networks have formed in

several parts of the state, and generally take one of three forms:

Some networks, such as the Tampa Bay Technology Forum and yiTenWired, form virtual hubs that provide business outreach, assistance, and networking.

Others, like University of Florida Innovation Hub and University of y


Expand Outreach and Support Structures to Help Companies Be More Innovative

ACTION ITEmS

expand technical assistance and outreach for small business

Build regional and inter-regional innovation networks statewide

more effectively leverage universities as industry partners



Central Florida incubator network, are physical hubs that bring together entrepreneurs, resources, and business support services.

Others, such as the Florida High Tech Corridor yCouncil link a broad range of regional efforts and commercialization assets together across inter-regional corridors.

Innovation hubs tailored to address regional and X

inter-regional strengths and shared challenges

can help accelerate economic growth and develop

a more robust culture of innovation throughout

Florida. There is strong potential to establish

inter-regional networks along the state’s major

transportation corridors.

more effectively Leverage Universities as industry partnersFlorida’s academic institutions have significant resources to

bring to bear in helping companies address research and

technology needs and overcome obstacles to develop and

adopt new technologies.

Consider developing a one-stop entry point for X

businesses to access university programs and

expertise. To help make Florida’s network of 11 public

universities with their associated departments and

industry outreach programs easier for businesses

to navigate, Florida should consider establishing a

program within the Board of Governors modeled after

Georgia’s Intellectual Capital Partnership Program (see

sidebar). Program staff would help direct businesses

to appropriate resources within the university system,

meanwhile gaining valuable insight into industry

needs. This effort would build on existing BOG efforts,

including ExpertNet.

BESTPRACTICE:georgiaIntellectualCapitalPartnershipProgram(ICAPP)

the Intellectual capital partnership program (Icapp) is the economic development program of the university system of georgia. created by the georgia Board of regents in 1995, Icapp coordinates with economic development leaders from each of the state’s 35 public college and universities, as well as the state’s broad range of technology-based economic development programs, to help businesses effectively tap into the state’s higher education assets and innovation assistance programs. more specifically, Icapp provides one easy access point through which businesses of all sizes can:

• findordevelopspecialized,college-educatedemployeesthroughjust-in-timehiring and customized professional development programs

• accessthelatestresearch,universitytechnologies,andstarresearchers

• connectwiththestate’smanytechnologybusinessassistancetools,includingmanufacturing assistance, sBIr/sttr assistance, sBdcs, and incubators,

Icapp also conducts proactive outreach—surveying high tech businesses to identify most needed skills and valued worker quality to drive academic programming and

other strategic initiatives.

1 National Governors Association, A Call to Action: Why America Must Innovate, February 2007

2 Council on Competitiveness, Measuring Regional Innovation, October 2005

3 SSTI, A Resource Guide for Technology-based Economic Development, August 2006

4 Ibid.

5 If federal efforts to significantly expand funding for basic and applied scientific research come to fruition, Florida must be prepared to take advantage of the opportunity, or risk falling further behind.


7 Success stories and statistics available in SSTI, A Resource Guide for Technology-based Economic Development, August 2006.

8 For example, in May of 2008, the South Carolina legislature voted to provide $30 million annually to its Endowed Chairs program, exceeding the program’s original multi-year cap of $200 million. To date, Georgia has recruited 60 Eminent Scholars with a typical investment of $750,000 of state funding with a 1:1 university match. Georgia’s Eminent Scholars have attracted more than $350 million in federal, foundation and corporate research funding, fostered and led 20 centers of research excellence, and spun out more than 20 new technology start- up companies from their research and research centers.

BESTPRACTICE:FloridaHighTechCorridorCouncil

the Florida high tech corridor council (Fhtcc) is a partnership of the university of central Florida (ucF), the university of south Florida (usF) and the university of Florida (uF). It connects more than 20 local and regional economic development organizations (edos), 14 community colleges, and leaders from the high tech industry to attract, retain and grow high tech industry and help develop the workforce to support it within the 23-county corridor region. this nationally recognized partnership has resulted in initiatives including matching funds research, workforce development, and a marketing program that leverages governmental, edo and corporate budgets on a regional rather than local basis.

In recognition of its excellence in linking regional economic development and postsecondary education resources and strategies and supporting high tech economic growth, the International economic development council recently awarded the Florida high tech corridor council its top award in the category of partnerships with educational Institutions.

the Florida high tech corridor council is a state best practice model with potential applicability for other regions and state transportation corridors.

9 For further details, please refer to the Florida Board of Governor’s Florida 21st Century Technology, Research, and Scholarship Enhancement Act Programs Annual Report: Centers of Excellence, Research Commercialization Assistance Grants, and 21st Century Scholars, 2008

10 FFRDCs include national labs like Argonne, Ames, Lawrence Berkeley, Los Alamos, Oak Ridge, and Sandia.

11 Wu, Yonghong, The effects of state R&D tax credits in stimulating private R&D expenditure: a cross-state empirical analysis, Journal of Policy Analysis and Management, 24(4), 785-802, 2005; and Wu, Yonghong, State R&D tax credits and high-technology establishments, Economic Development Quarterly, 22(2), 136-48, 2008


13 Wessner Charles, ed., Committee on Capitalizing on Science, Technology, and Innovation: An Assessment of the Small Business Innovation Research Program, National Research Council

14 IHS and Global Insight, Venture Impact: The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy, 2009

15 Ibid.

16 Ibid. and Henry Chen, Paul Gompers, Anna Kovner, and Josh Lerner; Buy Local? The Geography of Successful and Unsuccessful Venture Capital Expansion, Harvard Business School, Working Paper 09-143, June 2009

17 Pricewaterhouse Coopers/National Venture Capital Association Money Tree™ Report based on data from Thomson Reuters, 2009

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