1 Clusters 4 Kenn Morris

7/29/2019 1 Clusters 4 Kenn Morris

1/21

Borderless InnovationCrossborder Clusters,

Competitiveness,& Strategies for NewClusters


2/21

Introduction

Kenn Morris

President & CEO of CrossborderGroup Inc.

California-based crossborder marketresearch and strategic consulting firmspecializing in border business and policy

Former Director of UCSD San DiegoDialogues Crossborder Innovation &Competitiveness Initiative

Lead researcher and lead author ofBorderless Innovation report

Done in collaboration w/ Gobierno de

Baja California, y CENTRIS
http://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdf


3/21

Overview of Comments

Borderless Innovation &

Crossborder Technology

Clusters in San Diego-Baja California

Lessons for Crossborder

Technology Clusters inUS-Mexico Border

Growing New

Crossborder Cluster inLife Sciences


4/21

Borderless Innovation

www.SanDiegoDialogue.org/borderless.htm

English & Spanish (although)


5/21

A Regional Approach to

Borderless Innovation

San Diego & Baja California: region of innovation, R&D,technology manufacturing

Given economic & social linkages, felt that a latentopportunity to catalyze regional synergies was possible

But no comparable data existedacross the border

Crossborder Innovation & Competitiveness Initiative: identify

clusters of opportunityin high value-added sectors in thebinational region

Focus on selected technology intensive clusters: biomedical

devices, aerospace & defense, software, biotech, and others


6/21

SD-Baja Cluster Findings

Biomedical Devices

Over 30,000 employed in Cluster(2003)

San Diego: 6,800

Baja California: 23,700

BC: highest number of FDA-certified

BD companies in Mexico (65+)

Many: Class 10,000 & 100,000 clean rooms

13 had HQ or operations in SD County

Sophisticated range of products

heart pumps & stents, lenses,

pacemakers, more
http://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdfhttp://www.sandiegodialogue.org/pdfs/borderlessEngSpan.pdf


7/21

SD-Baja Cluster Findings

Aerospace & Defense

Over 23,000 employed in Cluster(2003)

San Diego: 18,300

Baja California: 4,800

BC has highest concentration of

aerospace companies in Mexico

Knew that San Diego was

regrowing cluster after major

declines in 1990s


8/21

Binational S&T Workforce

Larger than expected,and growing

Surveyed large regionaluniversities

More Borderlesstechnology graduatesthan known:

FACT: More engineering

degrees issued by majorBC universities than inSD (industrial)


9/21

Binational Software Degrees

A Perspective-

Changing Result Most of San Diegos

software industry leadersassumed very few

software graduates inBaja California

Very surprised that UABCgraduated more

individuals with softwaredegrees than UCSD


10/21

Why did we do theBorderless Innovation study?

What did we learn?


11/21

San Diego & Baja CA are worried aboutsustainable competitiveness

World is Flat : More than just China & India

Large number of existing and emerging regions of

technology & innovation across globe Next two decades: China & India.

After that?


12/21

Lesson: Broader Implications

Implications for

Californias tech

industries Biomedical devices: Over

53,000 employed in CA

Aerospace (SouthernCalifornia)

Automotive

Software

Semiconductors

and all other US-

Mexico border states


13/21

Example: Aerospace & Defense

Within 1000 miles ofPhoenix, most of US andMexico aerospaceemployment

35% of US aerospaceemployment in 4 US borderstates

Arizona & Sonora: Majorconcentration of aerospacecompanies (Raytheon,

Honeywell, Boeing, etc.)

With good data: potentialfor4 State AerospaceStrategy and Marketing


14/21

Example: Semiconductors & Silicon Border

Silicon Border Technology park in Mexicali, goal of 1-2 semiconductor fabrication facilities

If successfulpotential synergy with technology

industries in all US-Mexico border states


15/21

Growing New CrossborderLife Sciences Clusters

& Observations


16/21

New Cluster Research: Life Science

UCSD-Merck project

4 Regions (plus one): Nuevo Leon

Guanajuato

Jalisco

Morelos

Plus: Baja CA

Why these? Doctoral and Masters

degree graduates Existing facilities &

linkages to US-biotechindustry


17/21

Life Sciences: What Were Seeing

Excellent research, some facilitiesare world class, some haveincubator and contract researchspace

Science is world class, but smallnumber of highly capablescientists


18/21

Life Sciences: What Were Seeing

Increasing number of SNIresearchers in key states

Emerging risk capital insome regions (not all)

Need to communicate

better what resources theyhave (Google Metric)

Butlittle experience withcommercializinginnovationsand

Google Metric: "Biotechnology"

11,700,000

7,280,000

2,680,000

2,155,000

1,835,000

136,500

82,900

82,700

54,600

- 7,500,000 15,000,000

china biotechnology

california biotechnology

india biotechnology

"san diego" biotechnology

mexico biotechnology

monterrey biotechnology

guadalajara biotechnology

"baja california" biotechnology

"nuevo leon" biotechnology


19/21

Cluster Growth: A Culture of Innovation

Future cluster growth willrequire incentives andgrowing culture ofinnovation

Large part of this relates tonew innovations andpatents

Trend not positive Often, incentive is to publish,

not patent

Published research underminesIP of Mexican innovations

New mechanisms:provisional patents in Mex?

Patents by Mexican Innovators

(Mexico & US)

0

50

100

150

200

250

300

350

400

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Mex Patents Granted to Mex Applicants

US Patents Granted to Mex Applicants


20/21

Beyond Borderless Innovation

Potential for North American Crossborder Innovation &Competitiveness Initiative?

Take concept beyond San Diego-Baja California: Need

additional data and regional assessments in border states of clusters of innovation & opportunity

Some hope: North American Council on Competitiveness,and emerging regional economic development agreements

Such data is CRITICAL to civic and industry leaders topromote a new binational vision of clusters and economicdevelopment

Opportunity to catalyze technology clusters andcompetitiveness if we choose path ofBorderlessInnovation


21/21

Borderless InnovationThank You Gracias

Kenn [email protected]

Copies of Borderless Innovation report:www.sandiegodialogue.org
mailto:[email protected]://www.sandiegodialogue.org/http://www.sandiegodialogue.org/mailto:[email protected]

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