The Legislative Roadmap

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The 2007 Innovation Plan

• The Legislative Roadmap
• to Create Jobs,
• Expand Markets and Compete in the Global Economy

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Why is Innovation Important?

• INNOVATION IS KEY
• Every industry in Oregon can and must use
  technology and innovation to enhance their
  competitiveness.
• Michael Porter, Harvard University

• Competitive firms that rely on innovation
• enhance
• productivity and
• increase profitability
• offer good jobs at
• nearly twice the
• average wage
• anchor key industries

3
Who is Oregon InC?

• MEMBERSHIP
• Council members
• include 40
• recognized state
• leaders from Oregon
• industries, higher ed
• government
• Serves as a statewide
• umbrella group,
• incorporating
• members from many
• of the states business
• education
• organizations

• HISTORY
• Created by the 2005
• Legislature to oversee
• state economic
• competitiveness
• strategy
• Charged to develop
• an innovation plan
• each biennium to
• guide governor
• legislature on
• policies and
• investments to grow
• Oregons economy

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What are the goals of the plan?

• KEY GOALS
• Expand Oregons economy by
• leveraging industry-supported
• initiatives with public seed investments
• Focus on areas where Oregon has a
• competitive advantage
• Prioritize based on return on states
• investment leverage of
• federal/private dollars and job
• potential in core Oregon industries across
• the state

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A Positive Editorial Oregons Sunny Day Package
September 30, 2006 Innovation development
package holds promise Visionaries of Oregon's
entrepreneurial scene were pretty frustrated
souls as recently as a decade ago, but they have
coalesced this year to achieve something that
they could only have dreamed of back then. They
have closed the chasm that separated them from
Salem by developing an intelligent, focused
business investment proposal that the governor
promises to put in his next budget. The
executives, investors and academics who make up
the Oregon Innovation Council have built on the
incomplete efforts of previous years to offer a
coherent but modest plan for the state to invest
up to 40 million in a few targeted industries,
both emerging and established. By guiding the
state to apply fiscal stimulus at a few strategic
points, they think they can accelerate the
development of a few job- and income-producing
"clusters." This is a more useful approach than
vague, top-down economic development schemes that
spray money in the general direction of a juicy
possibility, such as tempting a Scandinavian
manufacturer of wind-power generators to relocate
to Oregon. In this case, limited state resources
would be applied in a few places where they can
be leveraged to grow promising industries from
within. For example, the proposal the group
unveiled last week targeted a handful of sectors
where Oregon companies and

• Innovation development package holds promise
• While so many politicians and activists are
  talking about rainy-day funds, this is the sunny
  day package. More jobs and more revenues mean
  sunnier weather for the region, in terms of jobs
  and revenues.
• -Oregonian Editorial 9/30/06

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2007 Plan Recommendations

• RECOMMENDATIONS
• Provide adequate sources of gap funds (OGA, SB
  853)
• Increase entrepreneurial talent (statewide angel
  network)
• Streamline tech transfer
• Create innovation acceleration fund
• Invest in industry productivity research

• 5. Invest in industry productivity research
• Accelerate leadership in emerging industry Wave
  energy
• Help established industries enhance productivity
  Food processing manufacturing
• Expand Signature Research Centers
• Nanotech and micro products
• Drugs to fight infectious diseases
• Renewable industries such as alternative fuels,
  green architecture

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Emerging Industry Ocean EnergyFrom Waves to
Watts

• VISION
• Capitalize on Oregons ocean resources to make
  Oregon the national leader in ocean wave energy
  generation.
• ADVANTAGE
• Oregon has the best coastline in the country to
  generate wave power.

• GOALS
• Build first commercial wave energy park in US by
  2012
• Fund management team
• Provide production incentives
• Leverage OSU ocean and energy experts
• Leverage Oregon-based metals manufacturers

Oregon has great conditions for turning wave
power into an energy source.
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Emerging Industry Ocean EnergyFrom Waves to
Watts

• PARTNERS
• Oregon State University
• Private industry
• Utilities
• Nonprofits
• Local, state, federal government
• INVESTMENT
• Total 5.23 million
• 600K Administration
• 400K OSU research
• 1M Federal licensing
• 1M Research
• 2.23M Production incentives

• WHO BENEFITS
• Coast workers
• Offshore equipment technicians
• Utility employees
• Metals manufacturers
• Fabricate energy collection network components
• The state economy
• Estimated labor ROI
• 243 new jobs

Off shore energy devices must be manufactured and
serviced.
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Established Industry Food/SeafoodExpanding
Markets for Oregon Products

• VISION
• Help states food industry increase productivity
  and expand markets worldwide.
• ADVANTAGE
• The proposed investment will help a mature 6
  billion industry significantly grow and add jobs.
  

• GOALS
• Launch NW Visioning, Innovation and Productivity
  (VIP) Center in collaboration with Food
  Innovation Center
• Support seafood businesses through the Community
  Seafood Initiative

Produce growers need help finding new packaging
techniques and markets.
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Established Industry Food/SeafoodExpanding
Markets for Oregon Products

• PARTNERS
• Food Innovation Center
• Oregon State University
• OSU Seafood Lab
• Fisheries industry
• Agricultural industry
• INVESTMENT
• Total 4.6 million
• 3.7M Launch NW VIP Center
• 900K Community Seafood Initiative

• WHO BENEFITS
• Oregon Industries
• Dairy industry
• Exporters
• Farmers
• Fruit growers
• Orchardists
• Ranchers
• Seafood industry
• Specialty food packagers
• Winegrowers
• The state economy
• Estimated labor ROI
• 140 new jobs

How do we expand markets for Oregons famous wine
and cheese?
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Established Industry ManufacturingEnhancing
Competitiveness in a Core Oregon Industry

• VISION
• Ensure the industry has access to equipment,
  technology and skilled workers it needs to thrive
  in the 21st Century.
• ADVANTAGE
• One in seven Oregon workers are employed by the
  states manufacturing industry. Oregon can build
  on its reputation for innovation while creating
  family-wage jobs.

• GOALS
• Expand applied research capability by adding
  senior faculty at PSU
• Acquire new equipment used in existing
  laboratories
• Improve skills training
• Match funds with industry-funded university
  programs

Can we help Oregon Iron Works build streetcars in
America?
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Established Industry ManufacturingEnhancing
Competitiveness in a Core Oregon Industry

• PARTNERS
• OECDD
• Oregon University System
• Portland State University
• ETIC
• Mfg 21 Coalition
• INVESTMENT
• Total 3.37 million
• 1 M Increase Oregon Metals Initiative funding
• 500,000 Equipment for applied research
• 1.87 M - 3 new faculty

• WHO BENEFITS
• Oregon Industry
• Specialty instrument makers
• Metals fabricaters
• Recreational vehicle builders
• The state economy
• Estimated ROI
• 86 new jobs

Helping manufacturers stay competitivePSUs
engineering college will get specialized
equipment for applied research.
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Signature Research ONAMIOregons Successful
Nanotech Collaboration

• VISION
• Continue Oregons leadership in nanotechnology
  and create new companies and products based on
  ONAMI research.
• ADVANTAGE
• ONAMI helps industry in Oregon stay competitive
  while creating new tools for making materials
  stronger and more versatile.

• GOALS
• Hire 4-6 world-class researchers
• Leverage 40M in additional federal and private
  funding
• Add 3-8 new firms commercializing ONAMI
  technology
• Reduce need for state support in future
• 200K-500K in licensed revenue to State of
  Oregon

Oregons first Signature Research Center ONAMI
is about thinking small to achieve big results.
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Signature Research ONAMIOregons Successful
Nanotech Collaboration

• PARTNERS
• Oregon University System
• Oregon OHSU/OGI
• High technology industry
• PNNL
• INVESTMENT
• Total 10 million
• 2.5M - researcher recruiting
• 2M - match federal grants
• 3.5M - fund for commercialization
• 1M - facilities technology
• 1M - administration

• WHO BENEFITS
• Companies in Oregon
• Ascend Instruments
• ClearEdge Power
• Crystal Clear Technologies
• DeepPhotonics
• Electro Scientific Industries
• Merix Corporation
• Umpqua Research Co.
• Hewlett-Packard Co.
• The state economy
• Estimated ROI
• 998 new jobs

Researchers have created a credit card-sized
reactor that produces Biodiesel from canola oil
and alcohol great for Eastern Oregon farmers.
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Signature Research Bio-EconomyExpanding
Oregons Leadership in Renewable Industries

• VISION
• Create the Bio-Economy Sustainable Technologies
  (BEST) Center to develop technologies that have
  near-term impact for industries, such as
  bio-fuels and bio-products.
• ADVANTAGE
• BEST will leverage Oregons international
  leadership in sustainability natural resource
  base.

• GOALS
• Secure at least 1M in foundation funding for
  start-up
• Raise 5M in federal/private research funding by
  2009
• Establish a commercialization mechanism
• Develop sponsored research with at least 4 Oregon
  companies

Canola fields of Madison Farms in Eastern Oregon
a source for bio-diesel fuel?
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Signature Research Bio-EconomyExpanding
Oregons Leadership in Renewable Industries

• WHO BENEFITS
• Oregon Industry
• Alternative energy
• Forest products
• Green chemistry
• Horticulture
• Sustainable agriculture
• Urban planning
• The state economy
• Estimated ROI
• 187 new jobs

• PARTNERS
• OSU, PSU, U of O
• OR Institute of Technology
• ONAMI
• Portland Comm. College
• Mt. Hood Comm. College
• Industry partners
• INVESTMENT
• Total 3 million
• Business Plan
• Center Start-up

Renovated Blitz Weinhard brew house one of
Gerding Edlen Developments many green building
projects.
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Signature Research Infectious Disease Drug
Discovery Research for National Security Health

• VISION
• Help Oregon medical researchers create drugs that
  will fight infectious diseases by establishing
  OTRADI Oregon Translational Research Drug
  Development Institute (OTRADI).
• ADVANTAGE
• Builds on research expertise in infectious
  diseases and establishes leadership in developing
  licensing new drugs.

• GOALS
• Provide seed funds to create new Signature
  Research Center
• Expand university research capacity
• Leverage private and federal funding
• Generate state revenue through service and
  licensing fees

Creating OTRADI will help universities find new
ways to fight HIV, SARS, malaria and other
diseases.
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Signature Research Infectious Disease Drug
Discovery Research for National Security Health

• PARTNERS
• Oregon Drug Development Accelerator Company
  (ODAC)
• Oregon University System
• Oregon Health Science University/OGI
• INVESTMENT
• Total 7 million
• Equipment
• Personnel Operations
• Research Faculty

• WHO BENEFITS
• Oregon Industry
• Drug companies operating under license deals
• The state economy
• Estimated ROI
• 147 new jobs

Groups fighting infectious outbreaks can focus on
new approaches.
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Extensive Business Participation

• Columbia Forest Products
• Jeld-Wen
• Weyerhauser, Inc.
• Treasure Valley Renewable Resources, Inc.
• Madison Farms
• Pendleton Grain Growers
• SeQuential Biofuels
• IdaTech
• ClearEdge Power
• Century West Engineering
• Energy Outfitters
• PV Powered LLC
• The Mountain Group
• The Boeing Company
• Columbia Wire Iron
• ESCO Corporation
• Leupold Stevens, Inc.
• Monaco Coach
• IDC Architects

Trexler Climate Energy Svc. Clean Edge Celilo
Group Media Shore Bank Pacific Nth Power 3M
Precision Optics Barco Medical Imaging
Syst. CompView Enuclia Semiconductor Hewlett
Packard InFocus Intel Max Viz Pixelworks TekTronix
Chemica, Inc. Bend Research Siga Technologies,
Inc. Virogenomics, Inc. FEI .
AND MORE!

• More than 40 companies from around the state
  participated in proposals to Oregon InC.

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The Oregon InC Timeline

• SUCCESSES TO DATE
• Presented plan to
• Governor and
• Legislature in
• September
• Governors 2007-09
• Budget includes full
• 38.172 million
• package

• NEXT STEPS
• Legislative review and adoption
• OECDD/ council manages investments (quarterly
  audits against performance measures)
• Oregon InC
• develops 2009
• recommendations

Next stop State Capitol
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How can you get involved?
NOMINATE 1. Nominate a business or entrepreneur
to the Oregon Innovators Hall of Fame on our
website. 2. Encourage local industries to
develop proposals for the 2009 Innovation Plan.
All proposals and nominations should be directed
to Oregon InC staff contacts listed on next
page.

• ADVOCATE
• 3. Call, write or visit your
• legislator to let them
• know you support this
• important investment in
• Oregons economic
• future.
• 4. Spread the word about
• Oregon InC and the 2007
• Innovation Plan!

Visit our website! www.oregoninc.org
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For more information
Visit the Oregon InC website www.oregoninc.org
Or contact staff Marian HammondInnovation
Economic Strategies Division ManagerOregon
Economic Community Development
DepartmentPhone [phone]E-mail
marian.j.hammond_at_state.or.usSuzy
FunkhouserInnovation Council CoordinatorPhone
[phone]E-mail suzy.funkhouser_at_state.or
.us