Groups Call for National Innovation Focus

Innovation. Experts contend that the dominant role of the U.S. is in jeopardy as other countries accelerate their efforts and Americans lag behind.

Two organizations say a national focus is needed. Here is a quick summary from the State Science & Technology Institute.

The call is for the United States to create a national federal office of innovation to help focus and concentrate innovation across the country.

Following the election, the Information Technology and Innovation Foundation (ITIF) announced its policy recommendations for the administration in their weekly news publication as part of their "Winning the Race 2012" series. Among other recommendations to improve the country’s competitiveness, innovation, and productivity, ITIF calls for the creation of a National Innovation Foundation. Similar in scope and organization to the National Science Foundation, the National Innovation Foundation would support companies and other organizations in innovation activities. 

Similarly, OECD in a late November policy paper recommended establishing a national innovation agency, specifically, along with the proposed National Network for Manufacturing Innovation, within the National Institute of Standards and Technology. 

Both ITIF and the OECD note that many other countries with "advanced economies" have an agency that consolidates and coordinates a national innovation policy. Instead, the United States’ innovation policy is spread throughout White House offices and Department of Commerce agencies.

With the approach of the so-called "fiscal cliff" and a focus on creating a leaner government, it is unlikely that a new agency or office is realistic. Instead, it may be necessary to scale back the activities of other departments and agencies. 

Economic Energy? Look to Local Leadership

I read a recent post from the CEO of Gallup, who provided a good reminder that, like politics, ultimate business success is often locally driven. Yes, policies from Washington and state capitals make a big difference — but so does leadership in communities and companies.

A few highlights from Jim Clifton:

Throughout this year’s long election season, I was often asked: “Who will be better for jobs and the economy, President Obama or Governor Romney?” My reply most surely disappointed partisans from both sides: The president of the United States doesn’t make as much difference in terms of creating economic energy as you’d think, according to Gallup data.

In fact, if the president mattered that much, why is it that cities and states have such extreme variation in their local GDP and job growth? Shouldn’t they all go up or down together with each president?

Instead, Austin, Texas, and Nashville, Tenn., are booming, while Albany, N.Y., and Stockton, Calif., are failing. Texas is prospering while California is almost surely going broke. Austin’s jobless rate is around 5%, while the unemployment rate in Stockton is above 13%.

The difference, in my view, is that Austin has deeply caring, highly engaged business, political, and philanthropic leaders with principles, policies, beliefs, and values about human nature that work. They understand how to build a thriving, growing economy — one that welcomes business and entrepreneurship. Albany has the opposite, as I see it: Leaders with principles, policies, values, and beliefs that discourage business and entrepreneurship, if not outright scaring them away.

Cities across the country with great leadership are filled with booming startup companies, and those cities have thriving economies that create authentic, organically grown good jobs. These cities are saving America, while the others are letting the country down.

Great city leadership has never been so needed. Nationally, business startups are currently growing at under 400,000 annually. If this rate doesn’t double soon, in my view, absolutely nothing will fix our current nightmare of joblessness.

Of course good policy for small businesses is better than bad policy, but in my opinion, the estimated 10,000 business, political, and philanthropic leaders of all shapes and sizes who drive the performance of America’s top 100 cities are the most important people in our country right now. 

Are You Ready to Risk It?

Innovation. Maybe the most important combination of 10 (I counted several times) letters that are out there today. Companies must innovate to succeed; innovation is what drives many entrepreneurs each and every day.

Innovation is a huge part of the Indiana Chamber-led Indiana Vision 2025 plan. The mission statement: "Indiana will be a global leader in innovation and economic opportunity where enterprises and citizens prosper."

Innovative is how I would describe Risk It, a new regional business idea competition in the southeastern part of the state that is being presented by the Indiana Small Business Development Center. A three-minute pitch to a panel of judges and audience is accompanied by the opportunity for prizes that include visibility and expert assistance.

The initial event is October 25 at the Venture Out Business Center in Madison. An awards luncheon in New Albany is one of the following steps.

Are you ready to Risk It?

Ball State Geothermal Project Heats Up Reputation Even More

Considering my boss is a proud Ball State alum (actually, both of my bosses are) and he’s editor of BizVoice magazine, it’s no wonder I’ve gotten quite a few Cardinal-oriented story assignments in the last few years. However, the writing has really opened my eyes as to what an innovative institution the state has up in Muncie. While Ball State’s main claims to fame center around telecommunications and technology, their latest endeavor is in the field of on-campus energy production. Here’s text from a release from the school on its new geothermal program, and you can also read about its early stages in the July/August 2009 BizVoice:

In the shadow of two outdated smokestacks and four antiquated coal-fired boilers, Ball State has started the second and final phase of converting the university to a geothermal ground-source heat pump system – the largest project of its kind in the United States.

The conversion, started in 2009 to replace the coal boilers, now provides heating and cooling to nearly half the campus. This phase of the project will be dedicated in March.

When the system is complete, the shift from fossil fuels to a renewable energy source will reduce the university’s carbon footprint by nearly half while saving $2 million a year in operating costs.

Ball State is installing a vertical, closed-loop district system that uses only fresh water. The system uses the Earth’s ability to store heat in the ground and water thermal masses. A geothermal heat pump uses the Earth as either a heat source, when operating in heating mode, or a heat sink, when operating in cooling mode.

Under the direction of Jim Lowe, director of engineering, construction and operations, work has begun on Phase 2, which includes installation of 780 of the remaining 1,800 boreholes in a field on the south area of campus.

Construction will continue throughout 2013-2014 and will include a new District Energy Station South containing two 2,500-ton heat pump chillers and a hot water loop around the south portion of campus. The system will then connect to all buildings on campus – eventually providing heating and cooling to 5.5 million square feet.

"When costs began to escalate for the installation of a new fossil fuel burning boiler, the university began to evaluate other renewable energy options," Lowe says. "This led to the decision to convert the campus to a more efficient geothermal-based heating and cooling system."

The project has caught the attention of universities and communities across the nation. Lowe is sharing information about the university’s new operation with others who want learn how they too can benefit from a geothermal system.

Competing in the Manufacturing World

I see this phrase or a version of it often and use it myself occasionally: "In Indiana, we make things."

With that being the case, we (Indiana and the U.S.) need to be the best in the manufacturing business. According to a recent report from the Council on Competitiveness and Deloitte, it takes innovation and advanced skills development on one side of the equation complemented by research, technology and full commercialization.

The 16-page report is Ignite 2.0: Voices of American University Presidents and National Lab Directors on Manufacturing Competiveness. Five goals are outlined for colleges, universities and the national labs:

  • Continue to support the community colleges and universities though long-term government programs

  • Utilize community college more effectively to develop a skilled S&T workforce

  • Create conduits that connect talent and ideas at universities with the private sector and the local community in regional clusters

  • Implement university programs in math, science and manufacturing

  • Ensure that national laboratories develop mission-driven innovations and broaden the definition of national interests to include impactful economic development

The report also provides several recommendations to build a 21st century advanced manufacturing workforce and to fuel science, technology and innovation. In the coming months, the council is expected to release Ignite 3.0, which will highlight the perspectives of U.S. labor leaders.  

Keep Your Business Innovative to Separate You From the Rest

Interesting blog here from Copyblogger about how to keep your business from getting stuck in the mire of routine (and see today’s earlier post on GAP). All too often, businesses can fall victim to doing things like they’ve been done in the past, with little thought of what can be different in the future. Hopefully, these tips can get us all thinking in those terms:

Keep the innovative ideas flowing
Finally, it’s easier to keep the new ideas flowing in to your business if you have a structure in place that allows cross-pollination to happen on a regular basis. Here are some techniques:

Create an informal Board of Directors. Gather a group of 3-5 people who are willing to support your efforts. Meet with them in person or by phone at least four times a year. Update them on your goals, the progress you’re making, and your struggles. Let the ideas flow, and take good notes.

Join a Mastermind group. Many groups meet monthly, some more often. Some Chamber of Commerce organizations coordinate them, but you can also find virtual Mastermind groups with a quick web search. The group supports each member, so you’ll both offer and receive encouragement and ideas.

Join a virtual private community. Sites like Third Tribe are great places to connect with like-minded people and to generate exciting new business ideas.

Consider working with a coach. Because business coaches speak to many different clients, they’ll naturally cross pollinate your conversations with ideas they’ve picked up from helping other people.

Health Care: Fix What’s Broken, Don’t Break What’s Working

Reason.TV recently sat down with Cal State University – Northridge economist Glen Whitman, coauthor of the Cato Institute’s policy analysis paper, "Bending the Productivity Curve: Why America Leads the World in Innovation." Take a few minutes to hear his take on why the United States still sets the standard on medical research, even though health care in the country is far from ideal.

Patent Problem: Numbers Take a Big Drop

We’ve pondered in the past, both in this space and in BizVoice magazine, about what economic indicators people pay the most attention to. The same argument can apply to the innovation economy — which numbers and statistics are most important?

Tough call. One measure taking a rather significant drop through the middle portion of this decade is the number of patents produced per employee in each state. Two alphabetical groups provide the data: USPTO (U.S. Patent and Trademark Office) compiles the numbers and SSTI (State Science & Technology Institute) puts them in comparative form.

The results:

  • A total patent drop of over 10% between 2003 and 2007, with 43 states experiencing declines
  • Indiana’s performance over that period was even lower, a 19.9% decline, ranking it 35th over the five years. Overall, Indiana remained 25th in 2007, its same relative ranking as 2003
  • At the low end of patents per employees are Alaska, the District of Columbia, Hawaii, Arkansas and Louisiana
  • Idaho led the nation with 210 patents per 100,000 employees. Other in the top five (with a strong Western flavor) were Vermont, California, Washington and Oregon

An SSTI chart details the numbers.