Catalyzing  Innova.on-­‐Oriented  Growth,  Opportunity,  and  Prosperity  

A  Strategy  for  Sustainable  Manufacturing  in  the  21st  Century  by  Leveraging  Water  and  Loca.on    

“It is not the strongest of species that survive, nor the most intelligent, but the ones most responsive to change.”

Change is Inevitable: But How Are We Prepared?

Charles Darwin

3  

Innovation is not technology – it is new ways of doing business, new governance structures, new partnerships, new strategies.

Innovation is a social process – not just technology development but commercialization based on networks of competencies and insights.

Innovation is based on meritocracy – what you bring to the table is far

more important than location, demographics, assets!

The Innovation Economy= Churning Economy

• Businesses start & fail

• Businesses locate & re-locate

• Jobs are created & lost

• Skills are acquired, then become outdated

• Workers come, workers go

• Occupations grow & decline

• Corporations grow & downsize

5  

Innovation Thrusts and National Drivers

Biotechnology & Life Science

Information Technology

Nanotechnology & Materials

“Regionalism” on the Rise

6  

7  

A New Regional Model Emerging

Then….

Manufacturing

Research

Development

Trials/Testing

Services

Self-contained regional clusters

DFW

Texas-Mexico Border

Paris Texas

Houston

Texarkana

Tyler

Shreveport

Now….

Specialized, networked regions:

Global Hubs & Nodes

8  

Old Paradigm •  Job creation •  Funding competitions •  Individual projects •  Funding research projects through competitions •  Managing the budget process •  Bureaucracy •  Inputs and activities •  Linear commercialization process

New Paradigm   Wealth creation   Flexible investment   A balanced portfolio of investments   Investing in commercialization of technology   Maximizing the return on investment   Entrepreneurial environment   Results and outcomes   Dynamic innovation process

A New Paradigm of the Innovation Process

9  

Business Value Chain is Decoupled

The decoupling of traditional value chain activities leads to specialization of business activities…and new innovation models

Research Product

Development Testing &

Evaluation

Market Trials

Manufacturing & Marketing

CRO’s Tool

Companies Outsource

testing services

Contract manufacturing

Clusters of Knowledge

Industry Clusters Production Strengths •  Build-What

Industry and occupational employment remain the foundation for competencies:

Occupational Clusters Skill Strengths •  Know-How •  Know-Whom •  Know-What

+

=

“Competencies” Examples: •  Aerospace engineering •  Consumer product dev. •  Optics research •  Drug design clinical trials •  Bioinformatics •  Materials logistics

Competitive Competencies

Additional databases: •  Patents •  R&D •  Asset Inventory •  VC

Further refine Competency definitions or benchmarking

Connecting Innovation-Related Competencies and Assets As Competitive Advantage for Regional Progress: An Application Example

Information Technology/

Computing/Digital Tools

Aligned Workforce Training & Skill Creation-Monitoring

Unique Infrastructure, Specialize Equipment,

Programs

Regional & Global Networks/ Markets

Industry Sector Specific R&D/

Commercialization

Conversion of Ideas Into Products, Services Leading to Economic

Opportunity for All

Social Networks, Leadership, Civic Stewardship

Laboratories, research parks, Incubators, Centers of Excellence

21st Century Knowledge

Competencies

Gap? Early stage, seed capital

Gap? Advanced manufacturing, logistics

Gap? High School-Community College Academy

Gap? Value proposition for outreach to non-resident CEOs, decision-makers

Water,  water  every  where….  So  how  do  we  make  it  our  compe==ve  and  innova=ve  

advantage?  

The  Scien=fic  Perspec=ve  of  Water  Use  

It  is  not  some  far-­‐fetched,  ‘tree-­‐hugger’  philosophy…this  is  a  permanent  business  model  

Food  Produc=on,  Manufacturing  and  Delivery:    A  New  Sustainable  Model    

Water  and  the  Supply  Chain  

Underpinning of the Logistics Industry

Industrial Design Linking creative services, architecture, and engineering – especially engineering in the creation of new approaches, techniques, systems (physical, infrastructure, product such as devices, drug development)

Adv. Manufacturing Linking top 3-5 targets of opportunity around regional competencies in know-how/technical areas as well as legacy industries and the future of value chains in emerging sectors

Delivery-Distribution Link Information Technologies with Intermodal, Surface, and Air transportation systems

+ +

Information Technology/ Electronics Software and electronics for logistics functions such as tracking and real-time processing

Source: DOL 21st Century Logistics Workshop

Aerotropolis Schematic

Source: Aerotroplis.com

Loca=on  remains  vital  in  a  strategy  

Project  Criteria  (Musts  &  Wants)  

Macro  Screening  &  Logis.cs  

Micro  Screening  &  Compara.ve  Analysis  

Community  Visits  

Risk  Analysis  

Final    Community    

Recs    

Site  Decision  

Prospec.ve  Communi.es  

Current  Site  Selec=on  Process  

Criteria  

1.  Property  Size  

2.  Rail  Available  

3.  Airport  -­‐  1  hour  

4.  Water  Available  

5.  Gas  Available  

Yes    Yes    No    No    Yes  

Internal  to  company  –  “must”  criteria  are  absolutely  essen.al  to  success  and  cannot  be  compromised  

Go/No  Go  Screen  

Alterna.ve  Eliminated  

Project Criteria – “Musts”

Criteria  1.  Labor  Size  (40%)  

2.  Opera.ng  Cost  (25%)  3.  Logis.cs  Cost  (15%)  

4.  Incen.ves  (10%)  5.  Compe.tor  Loca.ons  (5%)  

10              9              8                7                6                5              4                3                2              1  Most  Important   Least  Important  

Internal  to  company:  Important  to  business,  but  not  absolutes;  Willing  to  concede  in  one  area  to  gain  in  another  

City  A  

City  B  

With  musts,  companies    indifferent  between  City  A  &  City  B  

Project Criteria – “Wants”

Beyond  Water….Human  Capital  

Sources: Paris Junior College A&M Commerce A&M Extension UT Tyler Partners: Army Corp of Engineers Dept. of Interior EPA State of Texas

28  

A Project Approach: Red River Sustainability and

Innovation Initiative

What  is  the  “Vision”?  •  Paris  and  the  Red  River  Region  will  reach  2.5%  of  the  Na=onal  

Market  Share  for  Sustainable  Food  and  Consumer  Good  Manufacturing  

•  Personal  Incomes  will  rise  by  20%  as  result  of  skill  upgrade,  employment  opportunity  in  Corporate  America  en==es  as  well  as  growth  and  startup  enterprises  

•  Public  sector  revenues  will  increase  in  parallel  to  investments  in  infrastructure,  facili=es,  and  opera=ons  suppor=ve  of  the  agenda    

•  Na=onal  and  State  pilot  projects  for  evalua=on  of  new  techniques,  technologies,  and  trade  will  be  based  in  Paris  and  the  Red  River  Region  

•  The  ‘Paris’  Brand  will  be  equated  with  innova=on  and  quality  of  life  through  a  21st  Century  Sustainability  Model  

Lessons  Learned:  Best  Principles    

The Austin Network – Overall Role among Civic, Academic, Public Sector Leaders

Catalyst  for  Connec5ng  –  CEOs,  tech  community,  larger  community,  passions  

 Crea5ve  Force  for  Innova5on  –  leveraging  assets,  ins=tu=ons,  

community,  entrepreneurs    Facilitate  New  Roles  –  heroism,  stakeholders,  new  philanthropy,  

crea=ve  civics    Engage  Networks  –  linking  exis=ng  and  emerging  leaders  first  then  

organiza=ons/  ins=tu=ons,  move  on  Internet  =me,  collabora=ve  forum  for  the  region  using  entrepreneurial  mindset  

Innovation Advocates: Collaboration Council Agenda

  Comprised  of  12-­‐15  Civic  Stewards    Act  like  Civic  Venture  Capitalists  –  invest  =me,  reputa=on  

and  monies  into  those  ac=ons  that  produce  the  MOST  CRITICAL  OUTCOMES  

  Breakdown  barriers  and  resistance  to  transforma=on      Form  Hot  Teams  on  and  around  key  projects    Produce  Annual  Performance  Report    Unabashedly  FOCUSED  ON  RESULTS  aligned  and  

coordinated  among  several  organiza=ons,  ins=tu=ons,  and  en==es    

  Consistently  advancing  IMPLEMENTATION  OF  BIG  IDEAS  

3-Step Process to a Regional Innovation SWOT

33  

1) DEFINE DEMAND: Determine how demographic, economic and industry conditions are driving demand for new technologies, for new skills and competencies, and for expanded assistance from the regional eco-system…within the Red River Region (Texas, Oklahoma, Arkansas, Louisiana). 2) ASSESS SUPPLY: Determine what the current innovation capacity – assets, institutions, organizations, and individuals – must be positioned to meet this demand and how well the innovation “system” is prepared to meet the needs of companies, innovators, entrepreneurs, and citizens. 3) IDENTIFY GAPS and STRATEGIES: Determine what gaps exist in the supply-demand relationships of both the current and the future/required innovation eco-system, and identify strategies and programs to fill these gaps.

Innovation Capacity Analysis

Regional Asset Inventory and Context of Brain Power

Colleges and Universities

Public Sector Entities and Programs

Commercial and Corporate

Know “Who”

Alignment with Clusters of Competency

Degree Programs Skill Validation Output

Know “What”

Ability to Attract, Recruit, and Grow Innovation

Outreach Support Delivery

Know “How”

Page  35  

Define the Opportunities • Orient team members • Define desired Outcomes • Present strategic Recommendations • Begin prioritization

Form Business Plans • Select priorities • Identify resources/ timeframes • Identify cross-cutting business and social issues

Finalize & Execute • Gain consensus on each element of plans • Select performance metrics • Finalize implementation strategy

Steering Committee member org. implements

Non-Steering Committee member org. implements

Cross-cutting partnership implements

Finish Date Start Date

Interim Meeting Assignments

Implementation Teams present business plans to Steering Committee.

The Approach to Consensus Building: Implementation Teams

Regionnovate has had continued and proven success with the application of its “implementation team” process to multiple regions and industries. Implementation Teams consist of 15-25 leaders from business, academia, government, and various supporting institutions that are committed to change, and focused on leveraging critical federal, state and regional resources in areas with the most likelihood of success. The chart below depicts the general work plan.

Innova5on  Measures    Factor  Analysis    Asset  Review    

Local  Assessment  

 Strategic  Findings:  Strengths,  Weaknesses  and  overall  Compe==ve-­‐ness    

Compe=tor  Regions  

Economic  History    Compara8ve  Site-­‐Selec8on  Factor  Analysis    Target  Industry  Benchmarks  

Target  Iden=fica=on  

   Priori=zed  List  of  

Recommend-­‐a=ons      

Strategic  Plan  for  Enhancing  Compe..veness  

Interview  Input  

Local  Employers    Research  and  Training  Ins5tu5ons    Planning/ED  Leaders    

Including:  •   Ac=ons  Teams  with  Business  Plans  

• Organiza=onal  Structure  

• Innova=on/Entrepreneurship  Strategy  

• Regional  Collabora=on  Plan  

• Budget  priori=za=on  

PHASE  ONE:  INNOVATION  EVALUATION  AND  ASSESSMENT  

PHASE  TWO:  BENCHMARKING  AND  STRATEGIC  PLANNING  

Leadership  Input  

Compe==ve  “Reality  Check”  

37  

Next Steps

  Create a Fact-Based Value Proposition

  Identify Immediate, Near-Term, Long-Term Results and Costs Associated with Initiatives

  Form the Implementation Action Team

  Target, Target, Target

Thank  you  for  your  interest  in  Regionnovate  and  our  ideas  

 Email  rss@regionnovate.com  

Website  www.regionnovate.com