Tacoma Military Affairs Presentation 1.3 Oct 13 Milbergs

8/8/2019 Tacoma Military Affairs Presentation 1.3 Oct 13 Milbergs

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Innovation and Washingtons

Defense Economy

Presentation for:

Tacoma-Pierce County ChamberMilitary Affairs Forum

Egils Milbergs

Executive Director

Washington Economic

Development CommissionOctober 13, 2010


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Great Recession


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Geography of WA Unemployment (Aug. NSA)

8.9% State-wide


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Path to Recovery


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1960s & 1970s

Advantage is Cost

Strategy is

Make it Cheaper

1980s & 1990s

Advantage is Quality

Strategy is

Make it Better

2000s

Advantage is Innovation

Strategy is

Make something new

Changing paths to economic recovery

Over half of Fortune 500 and just under half of

2008 Inc. list began during a recession or bear

market.Dane Stangler, Kauffman Foundation

There is no better time like

a downturn to innovate.


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40 countries/regions

16 Indicators

Economic Structure

Human capital (collegeeducation; researchers)

Innovation capacity (corporateR&D; government R&D; scientificpublications)

Entrepreneurship (new firms;venture capital)

IT infrastructure (e-government;corporate investment;broadband)

Economic Policy (corp. tax; easeof doing business)

Economic Performance (tradebalance, FDI, GDP per worker,productivity)

How are we doing?


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0

10

20

30

40

50

60

70

80

Overall ScoreActually we are No. 6

9


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1. China

2. Singapore

3. Estonia

4. Denmark

5. Luxembourg

6. Slovenia

7. Russia

8. Lithuania

9. Cyprus

10. Japan

11. Hungary

12. Slovakia

13. Czech Republic

14. India

15. Latvia

16. Austria

17. S. Korea

18. Ireland

19. EU-10

20. Spain

21. Sweden

22. France

23. Portugal

24. Malta

25. Belgium

26. EU-25

27. Poland

Decade Trend: The U.S. is Behind.28. UK

29. EU-15

30. Mexico

31. Netherlands

32. Australia

33. Finland

34. Canada

35. Germany

36. Italy

37. NAFTA

38. Greece

39. Brazil

40. United States

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Category FiveRising Above the Gathering Storm, Revisited

Engineering R&D in US

down 51% in 25 years

60 nuclear plants

being built. One in US

Of Wal-Marts 6,000

suppliers, 5000 in China

US life expectancy

ranks 24th in world

WEF ranks US 48th in science

and math education

US ranks 22nd

inbroadband. 72nd in mobile.

US ranks 40th in rate of

innovation in past decade

77% of companies plan R&D

facilities in China and India

China replaces USas No. 1 exporter

Third of US mfg. companies

suffer skills shortages


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10.4.57


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Plan for Washington


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A Ten Year VisionWe should not fear to lead

Make Washington State the most

attractive, creative and fertileinvestment environment for

innovation in the world.

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, we cant rest on our laurels, so

lets commit today to grooming aworkforce and leaders who areagile, creative, and embraceinnovation.

Gov. Chris GregoireMarch 10, 2009

We must look over the horizon and

prepare for the new economy thatwill emerge when this recession

passes.

Commerce Secretary Gary LockeMarch 18, 2009


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What will the World be like in 10 years?Prediction is difficult especially when its about the future

What talent, investment and infrastructure

will we need to succeed in that world?

Is Washington prepared? What do we need to do?

How will we pay for it?

How will we know if we are making

progress?


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InnovationEcosystem

EducationResearch

Start-ups

Associations

Non-Profits

Defense

Military

Govt

Capital

Business

Workforce

21st Century Sputnik Challenge

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Talent

InfrastructureInvestment

PolicyEnvironment

RegionalGrowth,

Exports,Jobs and

Prosperity

Inputs when optimized in a regional innovation ecosystem (cluster) generates results


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Some Critical

Challenges


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Innovation is not just a stand alone place

Innovation Increasingly looks like

thisInnovation is 99% shared technology and

1% exclusive technology Phillips CEO

The innovation economy is organic,distributed, open, non-hierarchical.

Marine


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Aerospace

IT, gaming,simulation

Biomedical,Incubators

Clean Tech,Smart Grid,

Biofuels

DefenseMedical

Biotech, Energy

Wine, Water

Life Sciences,Global Health

Worlds Largest Innovation Network

FoodProcessing

Wind, Solar,

Data Centers

Marine

FoodTourismMarineEnergy

Agriculture,Composites

New Forestry.Green Tech

Twilight

MedicalDevices

EnvironmentRemediation

ElectricHighway

Clean ITState Fair


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Source: Washington Technologie Industry Association (WTIA)

http://wtia.micromaps.com/
http://wtia.micromaps.com/http://wtia.micromaps.com/


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Talent Challenge

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What has changed in 700 years?


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Infrastructure Challenge

Post ICE Age?

Internal Combustion Engine

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Beyond Oil?


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Export Challenge


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Trade balance in high-technology goods 19952008

NOTES: Asia-9 includes India, Indonesia, Malaysia, Philippines, South Korea, Singapore, Taiwan, Thailand, and Vietnam.China includes Hong Kong. EU excludes Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, and Slovenia.

Source: NSF Science and Engineering Indicators 2010


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Washingtons

Defense Economy


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PROJECT OBJECTIVES

Economic impact of Washingtonsbases and defense-related economy.Identify emerging opportunitiesfor Washington-based businessesbased on trends in defense strategyand mission.Develop recommendations for astatewide economic developmentstrategy and expanding WA share ofdefense contracting.


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Whidbey Island

Naval Air

Puget Sound

Naval ShipyardJoint Base

Lewis McChord

Madigan Medical Center

Naval Submarine

Base BangorSpokane

Fairchild AFB

US Coast Guard

WA Natl Guard

US Army, Yakima

US Marine Corps

Major WA Military Installations

191,000 jobs

$12.2 billion in output$10.5 billion in labor income

$5.2 billion in defense contracts


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Emerging Trends in National Defense Strategy

Decline in overall defense budget, while West Coastincreasingly important strategic location.

Smaller scale threats and responses and on emergingtechnologies:

Intelligence, Surveillance, and ReconnaissanceSpecial forces and special operationsNetwork-centric operationsCyber securityComposite materials Unmanned systems both air and sea

A focus on energy efficiency and alternative energy. Ongoing role in peacekeeping and nation building. Caring for veterans and wounded warriors.


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Promote WAs Defense Related Economy

A. Explicitly include defense in the States economic

development strategy.

B. Promote the economic benefits of the defense

economy into stakeholder groups in the State.

C. Elevate and communicate the States commitmentthrough creation of central office focused on the

military, and high level participation in trade shows

and relationship-building in Washington D.C.

D. Communicate whats happening and elevate the

States profile nationally


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Statewide and Industry-Specific Efforts

A. Support emerging defense-specific economic developmentefforts: the Pacific Northwest Defense Coalition and

Washington Defense Partnership.

B. Support local economic development efforts by sharing

information, analysis, and opportunities with AssociateDevelopment Organizations (ADOs) and other economic

development partners.

C. Raise awareness of business opportunities among

Washingtons strong economic clusters.

D. Take a proactive approach to growing Washingtons defense-

related economy through cluster-specific initiatives, including

an immediate pilot effort.


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The risks inherent to starting a thriving business

in todays troubled waters are immense, but the

rewards have never been greater.


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DISCUSSION

Tacoma Military Affairs Presentation 1.3 Oct 13 Milbergs

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