Borderless Innovation Maintaining Competitiveness in the 21st Century

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Borderless InnovationMaintaining
Competitiveness in the 21st Century
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Introduction

• Kenn Morris
• Founder Director of Crossborder Business
  Associates
• California-based crossborder market research and
  strategic consulting firm specializing in border
  business and policy
• Former Director of UCSD San Diego Dialogues
  Crossborder Innovation Competitiveness
  Initiative
• Lead researcher and lead author of Dialogues
  Borderless Innovation report

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Overview of Comments

• Context of Challenge Why Worry?
• Border NAFTA Outdated Paradigm
• Vision for Borderless Innovation in San
  Diego-Baja California Region
• Application of vision to Arizona-Mexico, border
  states, and North America

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21st Century Competitiveness Why Worry?

• World is Flat More than just China India
• China long term challenge
• Regional tech clusters Large number of existing
  and emerging regions of technology
  innovation across globe
• Many regional economic development strategies not
  prepared
• An issue for US, Mexicoand North America

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Why Worry?

• Despite existing economic social linkages,
  US-Mexico relationship stuck at border
• Few cases of open, public dialogue about
  weakening North American competitiveness
• Fewer examples of policy leaders working to
  foster new paradigm for North America
• New vision beyond NAFTA needed

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A Regional Approach to Borderless Innovation

• San Diego Baja California region of
  innovation, RD, technology manufacturing
• Given economic social linkages, felt that a
  latent opportunity to catalyze regional synergies
  was possible
• But no comparable data existed
• Crossborder Innovation Competitiveness
  Initiative identify clusters of opportunity
  in high value-added sectors in the binational
  region
• Focus on selected technology intensive clusters
  biomedical devices, aerospace defense,
  software, and others

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Cluster Findings

• Biomedical Devices
• Over 30,000 employed in Cluster (2003)
• San Diego 6,800
• Baja California 23,700
• BC highest number of FDA-certified BD companies
  in Mexico (65)
• Many Class 10,000 100,000 clean rooms
• 13 had HQ or operations in SD County
• Range of products heart pumps stents, lenses,
  pacemakers, more

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Cluster Findings

• Aerospace Defense
• Over 23,000 employed in Cluster (2003)
• San Diego 18,300
• Baja California 4,800
• BC has highest concentration of aerospace
  companies in Mexico
• Mexico 9th largest aerospace supplier to US
• US-MX BASA agreement pending

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Binational ST Workforce

• Larger than expected, and growing
• Surveyed large regional universities
• Issuance of engineering and software of note
• More engineering degrees issued by major BC
  universities than in SD (industrial)
• UABC graduated more individuals with software
  degrees than UCSD

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A New Regional Model for SD-BC

• Recommendations for San Diego-Baja California
• Crossborder Innovation Competitiveness Centers
  (leverage existing organizations and
  institutions)
• Research and comparable ST data (foster
  understanding)
• Private investor networks (foster investing)
• Increased educational linkages (physical
  online) and regional workforce training programs
• Promote shared infrastructure investments
  (energy, water, digital)
• Increased security integration enforcement

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Realized Broader Implications

• Implications for all of California
• Biomedical devices Over 53,000 employed in CA
• Aerospace (Southern California)
• Automotive
• Software
• Semiconductors
• As well as the US-Mexico border states

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Implications Aerospace Defense

• AZ Large concentation of aerospace companies
  (Raytheon, Honeywell, Boeing, etc.)
• Aerospace education Embry-Riddle, U of A,
  Maricopa Community Collegeand the ASU/ITESM
  crossborder Masters degree in Aerospace Logistics
• 35 of US aerospace employment in 4 US border
  states
• Within 1100 miles of Phoenix, most of aerospace
  employment in the US and Mexico
• Sept. 26th Mexican Aerospace Conferencein
  Scottsdale

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Implications Silicon Border

• Technology park in Mexicali, goal of 1-2 Fab
  facilities
• If successfulpotential synergy with CA and AZ
  semiconductor clusters (esp. Intel, Motorola, TI,
  Freescale, etc.)
• Not to mention concentration of semiconductor
  related employment (160k) in 4 US border states

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A Model for the 21st Century

• North American Crossborder Innovation
  Competitiveness Initiative?
• Take concept beyond San Diego-Baja California
• Requires regional assessments in border states,
  and analysis of city-city and region-region
  clusters of innovation opportunity
• Some hope
• North American Council on Competitiveness
• Emerging understanding of regional opportunities
  and economic development agreements (AZ-Sonora,
  maquiladora supplier promotion of TREO)
• Opportunity for Third Nation to catalyze
  technology manufacturing and competitiveness for
  21st Century if we choose path of Borderless
  Innovation

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Borderless Innovation Maintaining
Competitiveness in the 21st Century Thank You
GraciasKenn Morriskenn_at_crossborderbusiness.com
CrossborderBusiness.comCopies of Borderless
Innovation report www.sandiegodialogue.org