Illinois Manufacturing Extension Center

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Illinois ManufacturingExtension Center

• Technology Transfer, Manufacturing, and Economic
  Development
• Presentation by
• Bob Weinstein, Ph. D.
• IMEC President
• December 13, 2002

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Presentation Elements

• The importance of technology transfer
• The importance of manufacturing to technology
  transfer
• A brief overview of IMEC
• Recommendations

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Why are we interested in Technology Transfer?

• For Economic Growth
• Technology transfer is the key driver of economic
  growth and rising prosperity
• For Business Retention
• To remain competitive, Illinois existing
  companies must adopt new technologies
• For Employee Productivity
• Technology transfer causes continuous change in
  the workplace, demanding new skills, and
  impacting training and education requirements for
  workers

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Technology Transfer and Economic Development

• It is important for the state to support
  technology transfer and commercialization
• Those states that lead in the adoption and
  diffusion of new technologies will experience
  faster economic growth and higher levels of
  economic prosperity
• The failure to adopt new technologies can cause
  entire sectors to lose their competitive
  advantage, leading to job losses and resulting
  economic costs on the state and its citizens

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Why is manufacturing important?

• Manufacturing companies produce over 15 of Gross
  State Product and provide over 15 of the states
  employment
• Manufacturing is a cornerstone of the states
  economic base, generating from 2 to 5 secondary
  jobs in other sectors for every job in
  manufacturing
• Manufacturers are critical to the economic
  vitality of communities and rural areas
  throughout Illinois
• Manufacturers are critical to the development and
  commercialization of new technologies

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Why is manufacturing important to technology
transfer?

• Manufacturing companies are consumers of new
  technologies
• They use new technologies to improved
  productivity and produce products that are
  consumed in Illinois, the US and throughout the
  world
• They produce new products that are the result of
  new technological advances
• They are partners with the states research
  institutions in the development of new
  technologies
• They are among the states leading developers of
  new technologies

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IMEC OverviewWho are we?

• IMEC was established in 1996 through merger of 4
  independent regional manufacturing extension
  centers
• Non-profit corporation (501c3)
• Self-perpetuating Board of Directors
• 17 voting Directors (only manufacturers)
• 9 non-voting Representatives (stakeholders)
• 4 primary subrecipients/employer hosts
• Bradley, NIU, SIU, and U of I
• Funding provided by the state, U.S Dept. of
  Commerce, manufacturers (project fees)

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IMECs Mission

• to provide tactical and strategic
• assistance to help Illinois small and
• mid-sized manufacturers improve their
• productivity and competitiveness
• We accomplish this mission by providing timely
  information, technical assistance, and
  implementation support for the transfer of new,
  more advanced manufacturing technologies,
  techniques, and best manufacturing practices

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Relationship between IMEC and NIST-MEP
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Who does IMEC serve?

• About 9,000 SMEs (over 700 annually)
• Major concentrations in Rockford, Peoria, Rock
  Island-Moline, Metro-East St. Louis
• Over 60 in rural/small communities
• Highly diverse industry distribution with major
  concentrations in
• Construction/agricultural equipment
• Automobile/transportation
• Aerospace
• Food processing
• electronics equipment
• Numerous support industries

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IMEC Services Address Manufacturing Needs

• Diagnostic Assessments
• Lean Manufacturing/Process Improvement
• Eliminating waste, containing costs
• Strategic Management Services
• Strategic planning, succession planning and
  change management
• Information Technology/e-Business
• Integrating management and operating systems
  through effective use of computer technology and
  the internet
• Quality improvement
• Documenting systems and procedures
• Technology Transfer
• Helping companies innovate and integrate new
  technologies into their operations
• Marketing and sales
• Developing marketing strategy and diversifying
  customer base

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Annual IMEC Service Impacts on Illinois Economy
FY 2002 and Cumulative
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Technology Development--Transfer Process and
State Economic Development Programs

• Basic Research
• Early stage applied research
• Prototype development and testing
• Initial commercial applications
• Diffusion of initial commercial applications
• Development of spin-off applications
• Broad diffusion across all sectors

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Technology Development--Transfer Process and
State Economic Development Programs

• Basic Research
• Funding for higher education research
• Tax incentives for industrial R D
• Early stage applied research
• Advanced Technology Program, SBIR, STTR
• Tax incentives for industrial R D
• Prototype development and testing
• Venture capital funds
• Manufacturing Extension and ITECs
• Initial commercial applications
• Loans and training subsidies (eg. ITP)
• Technology incubators and research parks
• Diffusion of initial commercial applications
• Manufacturing and Agricultural Extension
• Development of spin-off applications
• Tax incentives for industrial R D
• Broad diffusion across all sectors
• Manufacturing and Agricultural Extension

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Potential Impact of State Programs on the
Diffusion Process

• Phase 1 Applied Research
• Programs that reduce financial risk of tech dev
• Validation/testing support

Phase 1
Phase 3
Phase 2
Phase 4
of Potential Market

• Phase 2 Early Implementations
• Assistance for new enterprise and joint venture
  development

• Phase 3 Commercialization
• Info dissemination
• Technical assistance
• Job training

Time
OVERALL Goal Accelerate the Rate of
Technology Diffusion

• Phase 4 Broad diffusion
• Technical assistance
• Job training

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What needs to be done to accelerate technology
transfer?

• Build on the foundation of programs that have
  demonstrated economic impact
• Manufacturing Extension
• Cooperative (Agricultural) Extension
• Job training support programs
• Continue support for new initiatives that support
  the technology transfer process (eg. Illinois
  Technology Enterprise Centers)
• Implement new programs that will address critical
  gaps in the technology transfer process

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Recommendation Illinois Needs a Balanced
Economic Development Portfolio (Continued)

• The states economic development strategy needs
  to include balanced investments in
• maintaining the competitiveness of the states
  economic base
• supporting the growth of new companies in the
  state
• through technology transfer and entrepreneurship
• through business attraction

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Recommendation Illinois Needs a Balanced
Economic Development Portfolio (Continued)

• The states economic development strategy needs
  to include balanced investments in
• transfer/diffusion of new technologies
• making Illinois employers productive, lean
  (cost-competitive), and clean (minimizing waste
  and energy consumption)
• improving access to national and international
  markets (through both transportation and
  telecommunications)
• ensuring that our employees are well educated and
  trained

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Recommendation Illinois Needs a Balanced
Economic Development Portfolio (Continued)

• Balance is needed between short and long term.
• In the short term, tax revenues are limited and
  need to be spent on programs that can document
  short term tangible benefits for economic
  recovery
• New and continuing initiatives that hold promise
  for long term benefits may need to be deferred or
  focussed on planning for implementation, once tax
  revenues recover
• Short term initiatives also need to be selected
  that will generate economic benefits without
  undermining the states economic base in the long
  term

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Recommendation Illinois Needs a Balanced
Economic Development Portfolio (Continued)

• In both the short and long run, Illinois
  economic prosperity will depend on the states
  ability to maintain a diverse economy with a
• strong manufacturing sector
• strong agricultural sector
• strong professional services sector (finance,
  insurance, higher education)
• positive business climate
• The states economic development strategy needs
  balanced investment in business retention and
  business expansion in the key sectors that
  provide Illinois citizens with jobs, our
  children with career opportunities, and our state
  and local governments with tax revenues needed to
  support essential programs/services

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Comments and Questions?