A New Model for Economic Development: The University and Greenhouse Roles

1
A New Model for Economic Development The
University and Greenhouse Roles

• Don Smith
• VP for Economic Development, MPC
• University Director of Economic Development
• University of Pittsburgh and Carnegie Mellon
  University
• January 31, 2005

2
Why are the Universities playing a bigger role?

• The economy has changed
• Talent, Technology play central role
• Universities are more important than ever
• There is great interdependence with the region
• A stronger Pittsburgh aids faculty and student
  recruitment
• Local company partners improve the research and
  education quality
• University leadership understands their roles

3
A New Collaboration

• Newly formed collaboration on economic
  development
• Designed to make actively the connections with
  the private economy
• The friendly front door to the universities
• Actively seek collaborative opportunities
• Sharpen focus on economic development
• Leverage complementary strengths
• Focus on Oakland for physical development

4
University Resources Students Alumni
Networks Faculty Experts Specialized
Equipment Research and Technology Entrepreneurial
Education Technology Transfer
University Innovators Faculty Innovators Staff
Innovators Student Entrepreneurs
Tech Commercialization Alliance Innovation
Exchange
JEDI
Businesses and the Community Regional
Entrepreneurs Regional Companies Venture
Capitalists Companies in other regions
Economic Development Pittsburgh
Greenhouses Pittsburgh Regional
Alliance Innovation Works Technology
Council Commonwealth
5
Technology Commercialization

• Major Changes Underway
• Innovation Exchange at CMU
• Technology Commercialization Alliance at Pitt
• Both take a more holistic approach to tech
  commercialization
• Focus on startups
• Streamline the process
• Provide access to additional resources
• Improve the entrepreneurial culture at both
  universities

6
Whats a Region to Do?

• Utilize Cluster Strategies to leverage Innovation
• Invest in Technology Development linked to
  Technology Commercialization
• Focus development around Technology/Talent
  Districts
• Invest in Amenities tied to local clusters

7
PLSG Mission

• The PLSG Exists to Create an Environment to
• Grow Pittsburghs Life Sciences Economy
• The PLSGs Mission
• Accelerate the creation of new Start-Ups
• Retain and grow the existing base of regional
  companies
• Invest in academic facilities and research
  facilities
• Attract companies to the Region

8
PLSG Mission and Programs
People
Space
Capital
Connectivity
University/Research
Startup Company
Existing Companies
PLSG Stars
PLSG Talent
PLSG Executive Corps
PLSG Seed Fund
PBDC
PLSG TechnologyDevelopment Fund
University Development Fund
PLSG SBIR Advance
PLSG VC Outreach
PLSG Attraction
PLSG PTC Biomedical Network
PLSG Facilities
PLSG Incubator
9
Cluster Initiatives Pittsburgh Digital
Greenhouse

• Cluster development targeting Chip Design
• www.digitalgreenhouse.com

Academic Research amd Talent Strength
Market Growth Opportunities
Regional Industry Strength
10
Digital Greenhouse

• Partnership of State, 3 Universities, Local
  Economic Development/Civic Organizations
• All about market focus, and making the linkages
• 25 member companies
• 6.2M in research
• Tech transfer focus

11
Bridging the Party Lines

• Universities
• Fund research and economic development will
  happen
• But, weak local absorptive capacity
• Community
• Universities have money, we can just build
  outside and ask them to give us the technology
• But, value is still inside the castle
• Have to build on both sides of the wall, as well
  as building portals through the walls

12
Making it Work Principles

• Build regions capacity to capture innovation
• Must invest in both sides of the equation
• Create the relationships that transfer knowledge
• Make contact with universities easier and more
  collaborative

13
What are the net outcomes?

• Higher leverage of university assets
• Greater connection to regional economy
• More and better jobs
• Greater investment in the region
• Lower costs to working with the universities

14
Enlightened Self Interest

• Not doing good for its own sake. Rather,
• Doing well by doing good
• Benefits to university
• Access to state and federal funds
• Traction with benefactors
• Links to alumni, business and civic leaders
• More research, new faculty slots, better
  students, additional infrastructure

15
Community Benefits

• Strengthen Key Institutions
• Leverage university assets for regional growth
• Integrate Economic-Education-Cultural drivers
• Neutral broker for regional organizing
• Catch Basin for the fountain of youth,
  innovation, and wealth flowing from universities