Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter.
Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.
OCR for page R1
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
OCR for page R2
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 num-
ber 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 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: 978-0-309-25663-6
International Standard Book Number 10: 0-309-25663-1
Limited copies are available from Board on Science, Technology, and Economic Policy,
National Research Council, 500 Fifth Street, NW, W547, Washington, DC 20001;
202-334-2200.
Additional copies of this report are available 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 2012 by the National Academy of Sciences. All rights reserved.
Printed in the United States of America
OCR for page R3
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 examina -
tion 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 Na -
tional 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
OCR for page R4
OCR for page R5
Committee on
Competing in the 21st Century:
Best Practice in State and Regional Innovation Initiatives*
William C. Harris
Mary L. Good, Chair
President and CEO
Donaghey University Professor
Dean, Donaghey College of Science Foundation Arizona
Engineering and Information
W. Clark McFadden II
Technology
University of Arkansas at Little Rock Partner
and STEP Board Dewey & LeBoeuf, LLP
Richard A. Bendis David T. Morgenthaler
President and CEO Founding Partner
Innovation America Morgenthaler Ventures
Michael G. Borrus Edward E. Penhoet
Founding General Partner Director
X/Seed Capital Management Alta Partners
Susan Hackwood Tyrone C. Taylor
Executive Director President
California Council on Science and Capitol Advisors on Technology, LLC
Technology
*As of January 2011.
v
OCR for page R6
PROJECT STAFF
Charles W. Wessner Sujai J. Shivakumar
Study Director Senior Program Officer
Alan Anderson David S. Dawson
Consultant Senior Program Assistant
McAlister Clabaugh David E. Dierksheide
Program Officer Program Officer
vi
OCR for page R7
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 STEP Board 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 competitive -
ness 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 Ralph E. Gomory (NAS/NAE)
President Research Professor
Alfred P. Sloan Foundation Stern School of Business
New York University
Lewis W. Coleman and
President & CFO President Emeritus
DreamWorks Animation Alfred P. Sloan Foundation
John Donovan Mary L. Good (NAE)
Chief Technology Officer Donaghey University Professor
AT&T Dean, Donaghey College of
Engineering and Information
Alan M. Garber (IOM) Technology
Henry J. Kaiser, Jr. Professor University of Arkansas at Little Rock
Professor of Medicine
Richard K. Lester
Director, Center for Primary Care
and Outcomes Research Japan Steel Industry Professor
Stanford University Head, Department of Nuclear
Science and Engineering
Faculty Co-chair and Founding
Director, Industrial Performance
Center
Massachusetts Institute of
Technology
*As of January 2011.
vii
OCR for page R8
Amory Houghton, Jr. Arati Prabhakar
Former Member of Congress General Partner
U.S. Venture Partners
William F. Meehan III
William J. Raduchel
Lecturer in Strategic Management
Raccoon Partners Lecturer Chairman
in Management Opera Software ASA
Stanford University
Laura D’Andrea Tyson
and
Director Emeritus S.K. and Angela Chan Professor
McKinsey and Co., Inc. of Global Management
Haas School of Business
David T. Morgenthaler University of California, Berkeley
Founding Partner
Hal R. Varian
Morgenthaler Ventures
Chief Economist
Joseph P. Newhouse (IOM) Google, Inc.
John D. MacArthur Professor
Alan Wm. Wolff
of Health Policy and
Management Of Counsel
Harvard Medical School Dewey & LeBoeuf LLP
Edward E. Penhoet (IOM)
Director
Alta Partners
viii
OCR for page R9
STEP STAFF
Stephen A. Merrill Charles W. Wessner
Executive Director Program Director
Adnan Aslam Aqila Coulthurst
Christine Mirzayan Science & Program Coordinator
Technology Policy
David S. Dawson
Graduate Fellow
Senior Program Assistant
Paul T. Beaton
David E. Dierksheide
Program Officer
Program Officer
McAlister T. Clabaugh
Sujai J. Shivakumar
Program Officer
Senior Program Officer
ix
OCR for page R10
OCR for page R11
Contents
PREFACE xv
I. OVERVIEW 1
II. PROCEEDINGS 15
DAY 1 17
Welcome 17
Howard Carr, Board of Regents, University of Hawaii
M.R.C. Greenwood, University of Hawaii
Mary Good, University of Arkansas at Little Rock
Opening Remarks 19
The Honorable Daniel K. Inouye, United States Senate
Presentation of The Hawaii Innovation Council Report 21
Moderator: M.R.C. Greenwood, University of Hawaii
Session I: The Global Challenge and the Opportunity
for Hawaii 31
Moderator: Tyrone Taylor, Capitol Advisors on Technology
The Innovation Imperative and Global Practices 31
Charles Wessner, The National Academies
xi
OCR for page R12
xii CONTENTS
State and Regional Economic Context 38
Carl Bonham, University of Hawaii Economy Research
Organization (UHERO), University of Hawaii at Mānoa
Focusing Federal Resources:
The Obama Administration Innovation Initiatives 45
Ginger Lew, White House National Economic Council
Luncheon Address 51
The Honorable Neil Abercrombie, Governor of the State of Hawaii
Session II: Leveraging Federal Programs and Investments
for Hawaii 53
Moderator: The Honorable Brian Schatz,
Lieutenant Governor of the State of Hawaii
The Manufacturing Extension Partnership:
The Network Effect 53
Roger Kilmer, Manufacturing Extension Partnership Program,
National Institute of Standards and Technology
DoD Strategic Technology Capability Thrusts:
Opportunities to Fuel Hawaii’s Innovation Economy 58
Starnes Walker, University of Hawaii
The Military and Higher Education 62
Vice Admiral Daniel Oliver, USN (Ret.), Naval
Postgraduate School, Monterrey, California
Infrastructure for the 21st Century Economy:
The Role of the Economic Development Administration 66
Barry Johnson, Economic Development Administration,
U.S. Department of Commerce
Session III: Small Business, Universities, and Regional Growth 72
Moderator: Keiki-Pua Dancil, Hawaii Science
and Technology Institute
40 Years of Experience with Technology Licensing 72
Katharine Ku, Office of Technology Licensing,
Stanford University
OCR for page R13
xiii
CONTENTS
Universities and Economic Development:
Lessons from the “New” University of Akron 76
Luis Proenza, The University of Akron
Converting University Research into Start-Up Companies 80
Barry Weinman, Allegis Capital LLC
Improving Industry Partnerships 83
Mary Walshok, University of California at San Diego
DAY 2 89
Welcome and Introduction 89
M.R.C. Greenwood, University of Hawaii
Opening Remarks 90
The Honorable Daniel K. Akaka, United States Senate
Session IV: University of Hawaii’s Current Research
Strengths and Security and Sustainability:
Energy and Agriculture Opportunity 92
Moderator: William Harris, Science Foundation Arizona
Hawaii’s Satellite Launch Program 92
Brian Taylor, School of Ocean and Earth Science
and Technology, University of Hawaii at Mānoa
Astronomy in Hawaii 96
Robert McLaren, Institute for Astronomy, University of Hawaii
Data Analytics: A Proposal 99
The Honorable Daniel S. Goldin, Intellisis Corporation, and
9th NASA Administrator (Ret.)
Hawaii: A Model for Clean Energy Innovation 102
Maurice Kaya, Hawaii Renewable Energy Development
Venture (HREDV)
Sustainable Agricultural Systems:
Challenges and Opportunities 105
Sylvia Yuen, College of Tropical Agriculture
and Human Resources, University of Hawaii at Mānoa
OCR for page R14
xiv CONTENTS
Session V: Medical Opportunities in Hawaii 110
Moderator: Virginia Hinshaw, University of Hawaii at Mānoa
Clinical Trials in Hawaii 110
Art Ushijima, Queen’s Health Systems/The Queen’s
Medical Center
University of Hawaii Medical Initiatives 113
Jerris Hedges, John A. Burns School of Medicine,
University of Hawaii at Mānoa
Advancing Innovation and Convergence in
Cancer Research 116
Jerry S. H. Lee, Center for Strategic Scientific Initiatives,
National Cancer Institute, National Institutes of Health
Biomedical Innovation with Global Impact in Hawaii 119
Hank Wuh, Skai Ventures and Cellular Bioengineering, Inc.
Session VI: Roundtable—Next Steps for Hawaii 125
Moderator: M.R.C. Greenwood, University of Hawaii
The Honorable Mazie Hirono, United States House of Representatives
The Honorable Colleen Hanabusa, United States House of Representatives
Peter Ho, Bank of Hawaii and APEC 2011 Hawaii Host Committee
Richard Rosenblum, Hawaiian Electric Company
Donald Straney, University of Hawaii at Hilo
Charles Wessner, The National Academies
III. APPENDIXES 133
A Agenda 135
B Biographies of Speakers 140
C Participants List 163
D Bibliography 176
OCR for page R15
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 sectoral 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, Tech-
nology, and Economic Policy (STEP), is conducting a study of selected state and
regional programs in order 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 better understand program
goals, challenges, and accomplishments.
As a part of this review, the committee is convening a series of public work -
shops and symposia involving responsible local, state, and federal officials and
xv
OCR for page R16
xvi PREFACE
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.
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 comple -
mentary 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 sci-
ence, 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.1 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 stra -
tegic sectors. Some governments overseas have chosen to provide public support
to innovation to overcome the market imperfections apparent in their national
innovation systems.2 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
knowledge-based industries and grow innovation clusters.3 These state and re-
gional 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 they offer for other state and regional programs.
1 National Research Council, Innovation Policies for the 21st Century: Report of a Symposium,
Charles W. Wessner, ed., Washington, DC: The National Academies Press, 2007.
2 For 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.
3 For a scoreboard of state efforts, see Robert Atkinson and Scott Andes, The 2010 State New
Economy Index: Benchmarking Economic Transformation in the States, Kauffman Foundation and
ITIF, November 2010.
OCR for page R17
xvii
PREFACE
STEP’s project on State and Regional Innovation Initiatives is intended to
generate 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 Hawaii. The symposium included
an assessment of Hawaii’s natural, industrial, and human resources; identifica -
tion of key sectors and issues; and a discussion of how the state might leverage
national programs to support its economic development goals.
This summary includes an introduction that highlights key issues raised at the
meeting and a summary of the meeting’s presentations. This workshop summary
has been prepared by the workshop rapporteur as a factual summary of what oc -
curred 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 in this meeting. We are especially indebted to M.R.C. Greenwood,
President of the University of Hawaii, for her leadership in organizing the event,
identifying topics, and generating interest across a broad spectrum of participants.
We are also grateful to Alan Anderson for preparing the draft introduction and
summarizing the proceedings of the meeting and to Sujai Shivakumar and David
Dierksheide of the STEP staff for preparing the report manuscript for publication.
SPONSORS
We are grateful to our project and event sponsors and extend particular
recognition to the National Institute of Standards and Technology, the Depart -
ment of Energy, the Economic Development Administration, the National Cancer
OCR for page R18
xviii PREFACE
Institute, the Heinz Endowments, the Association of University Research Parks,
Acciona Energy, Dow Corning, IBM, and SkyFuel, Inc. for their support of the
program. For the Hawaii conference, special recognition goes to the University of
Hawaii Foundation, Hawaiian Electric Company, the Weinman Innovation Fund,
American Savings Bank, the Queen’s Medical Center, HiBEAM (Hawaii Busi -
ness and Entrepreneur Acceleration Mentors), the Intellisis Corporation, HDTC
(High Technology Development Corporation), the Hawaii Business Roundtable,
Inc., Rainbowtique of the University of Hawaii, and Gebco Hawaii.
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 ap -
proved 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:
Saul Behar, Philadelphia Science Center; Keiki-Pua Dancil, Bio-Logical Capital;
Harold Masumoto, Pacific International Center for High Technology Research;
Stephanie Shipp, Institute for Defense Analyses; and Donna Vuchinich, Univer-
sity of Hawaii Foundation.
Although the reviewers listed above have provided many constructive com-
ments 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 con -
tent of this report rests entirely with the rapporteur and the institution.
Charles W. Wessner Mary L. Good
