Maine Comprehensive Research

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Maine Comprehensive Research Development
Evaluation Innovation Index Overview Findings
Prepared for The Maine Economic Growth Council
Maine Development Foundation

• November 26 2007

Presented by Jim Damicis, Principal
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Evaluation Overview

• Legislatively mandated evaluation. (5 MSRA
  13108) started in 2001and done annually since
• Done in parallel with the MTI evaluation (same
  survey instrument)
• Done in accordance to detailed evaluation plan
  updated in 2006-07 tied to the States Science
  Technology Action Plan
• Managed by the Maine Office of Innovation and
  Conducted under contract with PolicyOne Research
  www.maineinnovation.com

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Evaluation Purpose 5-key questions

• Has Maines public investment in RD stimulated
  sustained consistent, competitive growth in
  Maines economy?
• Has Maines investment in public private
  university RD led to increased research
  capacity the development of an educated,
  technically skilled workforce increased
  commercialization of university technologies?

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Evaluation Purpose 5-key questions cont

• Are Maines investments in nonprofit research
  institutions broadening their impact on Maines
  economy?
• Is Maine fostering the growth of
  research-intensive companies, increasing private
  sector RD activity, building a
  technology-based entrepreneurial community?
• To what extent are these investments increasing
  the competitiveness of Maine in its key strategic
  technology industry areas?

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Evaluation Includes the Programs

• Maine Technology Institute
• Applied Technology Development Centers
• Center for Law and Innovation - Maine Patent
  Program
• Small Enterprise Growth Fund
• Seed Capital Tax Credit Program
• Maine Biomedical Research Fund
• Maine Marine Research Fund
• State EPSCoR Matching Funds
• State RD bonds
• State RD funding to the university system

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Evaluation Methods

• Annual Web survey of all recipients of support
  from Maines RD related programs (recipients are
  surveyed for 5 years following award/service)
• Company individual survey
• Research institution survey
• Case studies subject matter changes annually
• Innovation Index annual statewide indicator
  trends and benchmarks report

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Evaluation Major Findings 2006-07

• Maines investment has contributed to consistent
  growth in Maines economy and has increased
  competitiveness related to other states.
• Private sector recipients report higher job
  growth and much higher average wages than the
  Maine economy as a whole.
• The state investments have helped the
  universities build their research capacity and
  contribute to an educated workforce. But, results
  have diminished over time.

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Evaluation Major Findings 2006-07

• Some university centers such as AEWC work
  extremely well with industry, but other measures
  of technology transfer are low compared to
  national averages (except spin-off companies).
• The nonprofit research institutions have limited
  interaction with the private, research-intensive
  companies in the state and extremely limited
  formal technology transfer.
• The net effect has been to increase the
  university and non-profit share of RD in the
  state, while the private sector share of RD has
  gone down.

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Recommendations 2006-07

• Maine needs to accelerate its investment in RD
  to meet the goal of 1 billion in RD by 2010 and
  to improve its relative position in the
  innovation economy.
• Future investments should include a larger
  percentage for programs that support the private
  sector.
• Future RD investments should require more
  commercialization outcomes from university and
  non-profit-performed RD.

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Evaluation 2007-08 Process

• Private sector and institution survey completed
  and results being tabulated
• Most indicators have updated for Innovation Index
• Case study being conducted on understanding,
  measuring and growing private RD in Maine
• Reports to be issued by February 01, 2007 and
  presented to Governor, Legislature, Stakeholders

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Maine Innovation Index Overview

• Compilation of 24 indicators related sub
  indicators measuring Maines
• Research and Development Capacity
• Innovation Capacity
• Employment Output Capacity
• Education Capacity
• Connectivity Capacity
• Maine is compared to US, New England, and other
  EPSCoR states
• Trends are tracked over a 10-year period and most
  current year available

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Importance of Innovation

• Innovate America, Council of Competitiveness,
  2004 describes innovations as
• intersection of invention and insight, leading
  to the creation of social and economic value
• innovation is the single most important factor
  in determining Americas success through the 21st
  Century. It will drive productivity, standard of
  living, and leadership in the global economy

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Defining Innovation

• the development and adoption of new products,
  processes, and business models - State New
  Economy Index 2007, Information Technology and
  Innovation Foundation Kaufman Foundation

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Innovation Index Types of Indicators

• Input Measures - raw materials essential to the
  growth of Maines innovation economy. Examples
  RD spending, education attainment, venture
  capital investments, and Internet connectivity
• Output Measures Tell us how Maines innovation
  economy is performing and the degree to which
  inputs are starting to lead to desired outputs
  and outcomes. Examples include patents issued,
  technology-business establishments, and
  technology employment.
• End Outcome Higher incomes and better quality
  of life for Maine Citizens

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RD Capacity Indicators

• Total RD Performance
• Industry RD Performance
• Academic RD Performance
• Not-for-Profit Laboratory RD Performance
• Federal RD Obligations
• State RD Investments

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Maines Financial Commitment
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Maines RD Capacity
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Maines RD Capacity
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Maines RD Capacity
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Maines RD Capacity
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Maines RD Capacity
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Innovation Capacity Indicators

• SBIR/STTR Funding
• Venture Capital Investments
• Patents Issued

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Maines Innovation Capacity
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Maines Innovation Capacity
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Employment Output CapacityIndicators

• High Technology Employment - Change
• High Technology Business Establishments -
  Change
• SE Occupations in the Workforce
• Ph.D. Scientists and Engineers in the Labor Force
• Gross State Product - Change
• Per Capita Income

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Maines Employment Capacity
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Maines Employment Capacity
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Education Capacity Indicators

• Math Skills of 8th Grade Students
• Science Skills of 8th Grade Students
• Higher Education Enrollment among Young People
  Chance for College by Age 19
• Science and Engineering Graduate Enrollments
• Science and Engineering Degrees Awarded
• Education Attainment - of Population 25 and
  Older with Bachelors Degree or More

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Maines Education Capacity
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Maines Education Capacity
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Connectivity Capacity Indicators

• Household Connectivity
• High Speed Internet Access
• Classroom Connectivity

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Maines Connectivity Capacity
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Maines Connectivity Capacity
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Major ConclusionsInnovation Index

• Maine has made past progress at advancing its
  innovation driven economy
• However, many indicators point to Maine being at
  risk of losing ground

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Sources for Additional Indicators

• State New Economy Index, Information Technology
  and Innovation Foundation Kaufman Foundation
• Kaufman Entrepreneurial Index, Kaufman Foundation
• Development Report Card for the States,
  Corporation for Enterprise Development
• State Technology and Science Index, Milken
  Institute
• The Dynamics of Technology Based Economic
  Development, Technology Administration, Office of
  Technology Policy (defunct)
• Science and Engineering Indicators, National
  Science Foundation
• Tech-based Economic Development Resource Center,
  State Science Technology Institute

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State New Economy Index

• 2007 version produced by
• The Information Technology and Innovation
  Foundation (ITIF) (www.innovationpolicy.org)
• The Kauffman Foundation (www.kauffman.org)
• Indicator Categories with Data and Rankings for
  each State
• Knowledge Jobs
• Economic Dynamism
• Globalization
• The Digital Economy
• Innovation Capacity

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STATE NEW ECONOMY INDEX

• KNOWLEDGE JOBS
• Information Technology Jobs
• Managerial, Professional, and Technical Jobs
• Workforce Education
• Immigration of Knowledge Workers
• Manufacturing Value-Added
• High-Wage Traded Services
• ECONOMIC DYNAMISM
• Gazelle Jobs
• Job Churning
• Fastest Growing Firms
• Initial Public Offerings
• Entrepreneurial Activity
• Inventor Patents

• GLOBALIZATION
• Export Focus of Manufacturing and Services
• Foreign Direct Investment
• Package Exports
• THE DIGITAL ECONOMY
• Online Population
• Internet Domain Names
• Technology in Schools
• E-Government
• Online Agriculture
• Broadband Telecommunications
• INNOVATION CAPACITY
• High-Tech Jobs
• Scientists and Engineers
• Patents
• Industry Investment in RD
• Venture Capital

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Kaufman Entrepreneurial Index

• Produced by The Kauffman Foundation
  (www.kauffman.org)
• Based on new business creation
• Indicator Measurement percent of the population
  of adult non-business owners who start a business

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Development Report Card for the States

• Produced annually by Corporation for Enterprise
  Development (CFED) (www.cfed.org)
• 67 measures organized into a three-index
  framework with data and rankings for each State
  (includes traditional economic and community
  development and new economy indicators)
• Performance - "How well is the state's economy
  providing opportunities for employment, income,
  and an improving quality of life?"
• Business Vitality - "How dynamic are the state's
  large and small businesses?"
• Development Capacity - "What is the state's
  capacity for future development?"

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Development Report Card for the StatesIndicators
Related to Innovation

• Strength of Traded Sector
• New Companies
• Job Creation by Start-Up Businesses
• Technology Industry Employment
• Initial Public Offerings
• Venture Capital Investments
• PhD Scientists and Engineers
• Graduate Students in Science and Engineering

• Broadband Access
• Academic Research and Development
• Federal Research and Development
• Private Research and Development
• SBIR Grants
• Royalties and Licenses
• Patents Issued
• Business Created Via University RD

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State Technology and Science Index

• Produced by Milken Institute (www.milkeninstitute.
  org). Last done in 2004
• 75 indicators in five categories to measure how
  well a state will perform in todays
  knowledge-based economy.
• Research and development inputs
• Risk capital and entrepreneurial infrastructure
• Human capital investment
• Technology and science workforce and
• Technology concentration and dynamism.

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State Technology and Science Index

• Average Annual of STTR Awards
• STTR Awards (Award Dollars)
• SBIR Awards SBIR Awards per 10,000 Business
  Establishments (Phase I)
• SBIR Awards per 10,000 Business Establishments
  (Phase I)
• Competitive NSF Proposals Funding Rate
• Risk Capital Infrastructure
• Total Venture Capital Investment Growth
• of Companies Receiving VC Investment
• Venture Capital Investment
• Average Annual SBIC Funds Disbursed
• Number of Business Incubators
• Patents Issued
• Number of Business Starts
• IPO Proceeds

• RD Inputs
• Federal RD
• Industry R D
• Academic RD
• National Science Foundation Funding
• National Science Foundation Research Funding ,
  Percent
• RD Expenditures on Engineering
• RD Expenditures on Phys Sciences
• RD Expenditures on Environ Sciences
• RD Expenditures on Math Comp Sci
• RD Expenditures on Life Sciences
• RD Expenditures on Agricultural Sciences
• RD Expenditures on Biomedical Sciences

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State Technology and Science Index

• Human Capital Investment
• Bachelor's Degree or Greater
• Advanced Degree or Greater
• PhD Degrees
• Number of Students in Science Engineering
• State Spending on Student Aid
• Average Verbal SAT Scores
• Average Math SAT Scores
• Average ACT Scores
• State Appropriations for Higher Education (per
  Capita)
• State Appropriations for Higher Education
  (percent Change)
• Number of Doctoral Scientists
• Number of Doctoral Engineers
• Number of Science Engineering PhDs Awarded

• of Science Engineering Post doctorates
  Awarded
• of Bachelor's Degrees Granted in Sci Eng
• Recent Bachelor's Degrees in Sci or Eng
• Recent Master's Degrees in Sci or Eng
• Recent PhDs in Sci or Eng
• Households With Computers
• Households With Internet Access

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State Technology and Science Index

• Intensity of Computer Hardware Engineers
• Intensity of Biomedical Engineers
• Intensity of Agricultural Engineers
• Intensity of Other Engineers
• Technology Concentration
• Percent of Establishments in High-Tech SIC Codes
• Percent of Employment in High-Tech SIC Codes
• Percent of Payroll in High-Tech SIC Codes
• Percent of Establishment Births in High-Tech SIC
  Codes
• Net Formation of High-Tech Establishments
• Number of Technology Fast 500 Companies
• High-Tech industries (Average Yearly Growth)
• Number of High-Tech Industries Growing Faster
  than U.S.
• Number of High-Tech Industries With LQs Higher
  Than 1.0
• Number of Inc. 500 Companies

• Technology Science Workforce
• Intensity of Computer Information Scientists
• Intensity of Computer Programmers
• Intensity of Software Engineers
• Intensity of Computer Support Specialists
• Intensity of Computer Systems Analysts
• Intensity of Database Network Administrators
• Intensity of Agricultural Food Scientists
• Intensity of Biochemists and Biophysicists
• Intensity of Microbiologists
• Intensity of Medical Scientists
• Intensity of Physicists
• Intensity of Other Life, Phys Occupations
• Intensity of Electronics Engineers
• Intensity of Electrical Engineers

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The Dynamics of Technology Based Economic
Development

• Produced annually by the Federal Technology
  Administration, Office of Technology Policy,
  200-2003. (www.technology.gov)
• No defunct, but past reports provide good list of
  indicators and sources of data

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The Dynamics of Technology Based Economic
Development

• Total Performed RD Expenditures
• Industry-performed RD Expenditures
• Federally Performed RD Expenditures
• University-performed RD Expenditures
• Federal RD Obligations
• SBIR Awards
• SBIR Award Dollars
• STTR Awards
• STTR Award Dollars
• Mathematics Test Scores
• High School Completion Percent with a Bachelors
  Degree
• Associates Degrees Granted
• Bachelors Degrees Granted
• Percent of Bachelors Degrees in SE
• SE Graduate Students
• Computer Specialists in the Work Force Life
  Physical Scientists in the Work Force

• Engineers in the Work Force
• Recent SE Bachelors in the Work Force
• Recent SE Ph.D.s in the Work Force
• Venture Capital
• SBIC Funds
• IPO Funds
• Business Incubators
• High-technology Establishments
• High-technology Employment
• High-technology Payroll
• High-technology Establishment Births
• Net High-technology Business Formations
• U.S. Patents
• Technology Fast 500 Companies
• Inc. 500 Companies
• Average Annual Pay
• Population Above Poverty
• Per Capita Income
• Labor Force Participation

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Science and Engineering Indicators

• Produced annually by the National Science
  Foundation (www.nsf.gov)
• Includes 42 indicators group into the following
  categories
• Elementary and Secondary Education
• Higher Education
• Workforce
• Financial Research and Development Inputs
• Research and Development Outputs
• Science and Technology in the Economy

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Science and Engineering Indicators

• Elementary and Secondary Education
• Fourth grade mathematics performance
• Fourth grade mathematics proficiency
• Fourth grade science performance
• Fourth grade science proficiency
• Eighth grade mathematics performance
• Eighth grade mathematics proficiency
• Eighth grade science performance
• Eighth grade science proficiency
• Elementary and secondary public school current
  expenditures as share of gross state product
• Current expenditures per pupil for elementary and
  secondary public schools

• Share of public high school students taking
  Advanced Placement Exam
• Share of public high school students scoring 3 or
  higher on at least one Advanced Placement Exam
• Higher Education
• Bachelor's degrees conferred per 1,000
  1824-year-olds
• Bachelor's degrees in natural sciences and
  engineering conferred per 1,000 individuals 1824
  years old
• SE degrees as share of higher education degrees
  conferred
• SE graduate students per 1,000 2534-year-olds
• Advanced SE degrees as share of SE degrees
  conferred
• Average undergraduate charge at public 4-year
  institutions
• State expenditures on student aid per full-time
  undergraduate student

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Science and Engineering Indicators

• Workforce
• Bachelor's degree holders as share of workforce
• Individuals in SE occupations as share of
  workforce
• SE doctorate holders as share of workforce
• Engineers as share of workforce
• Life and physical scientists as share of
  workforce
• Computer specialists as share of workforce

• Financial Research and Development Inputs
• RD as share of gross state product
• Federal RD obligations per civilian worker
• Federal RD obligations per individual in SE
  occupation
• Industry-performed RD as share of
  private-industry output
• Academic RD per 1,000 of gross state product

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Science and Engineering Indicators

• Research and Development Outputs
• SE doctorate conferred per 1,000 SE doctorate
  holders
• Academic article output per 1,000 SE doctorate
  holders in academia
• Academic article output per 1 Million of
  academic RD
• Academic patents awarded per 1,000 SE doctorate
  holders in academia
• Patents awarded per 1,000 individuals in SE
  occupations

• Science and Technology in the Economy
• High-technology share of all business
  establishments
• Net high-technology business formations as share
  of all business establishments
• Employment in high-technology establishments as
  share of total employment
• Average SBIR program award dollars per 1 million
  of gross state product
• Venture capital disbursed per 1,000 of gross
  state product
• Venture capital deals as share of high-technology
  business establishments
• Venture capital disbursed per venture capital
  deal

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State Science Technology Institute

• National Non- profit entity that leads,
  supports, and strengthens efforts to improve
  state and regional economies through science,
  technology, and innovation (www.ssti.org)
• Runs the Web-based Tech-Based Economic
  Development Resource Center that provides access
  to more than 4,000 reports on TBED

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Why The Maine Economic Growth Council May Want to
Add Additional Innovation Indicators

• Provide insight and benchmarks for Maines
  potential new economy
• Link and align Maines past and current economy
  with new economy

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Issues to Consider When Selecting Indicators

• What it is you want to know
• Cost of gathering data
• Availability of data over time
• Availability of data for geographic comparisons
• How do you intend to use the data

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About PolicyOne Research

• PolicyOne specializes in research and analysis
  to support action in the areas of
• Economic and Community Development
• Technology and Innovation Based Economic
  Development
• Program and Service Planning Evaluation
• Fiscal, Economic, Demographic Analysis

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For More Information

• Jim Damicis
• PolicyOne Research
• Phone [phone]
• Email jim_at_policyoneresearch.com
• www.policyoneresearch.com