It Takes Both

Under Secretary Sanchez

While “research” is our first name, the companies in the Research Triangle Park recognize the important linkage between innovation and R&D and manufacturing and actually making “stuff.” This point was made quite clear during a recent visit to the Park by Undersecretary for International Trade at the U.S. Department of Commerce, Francisco Sanchez.

At a White House Business Council Roundtable co-hosted with the Greater Durham Chamber of Commerce and the Greater Raleigh Chamber of Commerce, more than 25 representatives from companies and universities in the Research Triangle region—led by NC Department of Commerce Secretary Keith Crisco—came together to provide insights and ideas to the Undersecretary on ways the US Federal government can continue to help North Carolina companies make more and sell those goods to markets overseas.

Exports are a substantial part of the North Carolina economy and the ability to not only think up great products and therapies but produce them and sell them around the world will be key to our future competiveness (a side note and interesting factoid: if “exports”  were considered an industry, it would be our second largest in the State, producing sales of more than $31 billion annually).

One great example of this important relationship was illustrated by the experience of Protochips, an early-stage company that develops analytical tools for more targeted R&D of nano-scale materials, founded by a group of NC State grads. David Nackashi, the  company’s CEO and Co-founder, explained how his company gets excited about the cutting-edge ideas and technologies that Protochips is able to develop within the rich environment of the Research Triangle region. But, he gets even more excited when the company’s low-tech fax machine delivers new orders from customers in Japan and throughout the globe. He touted the great collaboration and programs within our region that allow his company to not only leverage the best of graduates and students of NC State and others around the region, but to work with the state and federal resources to  identify potential markets, make the connections and ultimately make the sale.

His comments echoed those of Beau Mills, the District Director for the Office of Congressman David Price, who noted that our state is a great model of how government, industry and academia work well together and how the partnerships that have grown over the years work to service the needs of not only well-established companies but small start-ups and new ones.

The entire roundtable discussion was a great testament to the talent and innovation in our state and region—and a great example of how the idea that started the Park—getting the public sector, academia and business to work towards an overall strategy—continues to create opportunity for North Carolina and businesses who call this state home.

Generosity of Spirit

Earlier this month I had the privilege of representing the Foundation at the International Affairs Council Citizen of the World Award dinner honoring Geomagic’s Ping Fu.

Geomagic (@Geomagic) has always been a favorite RTP company of mine given its work to leverage technology to change the way things are envisioned and made and to revolutionize medical treatments.

I have also enjoyed following the career of Ms. Fu who is a role model for women in science and a national thought leader in what it takes to be a successful entrepreneur and innovator. (She was also one of First Lady Obama’s guests at the 2010 State of Union address, is a member –with UNC-CH Chancellor Thorp – of the National Advisory Council on Innovation and Entrepreneurship, and has been a prominent figure with Start-up America Partnership).

But what struck me most about the dinner and Ms. Fu’s comments in accepting the award wasn’t so much the list of her accomplishments as a start-up and a leader in 3D imaging or that she was named a “Fast 50″ executive by Fast Company magazine and Entrebizneur of  the Year by Business Leader magazine. (Even the data points that Geomagic has attracted more than $8 million in capital from private and institutional investors, increased revenue by more than 2,000% during the last five years and has received millions of dollars in research innovation grants from NSF and NIST – while impressive – were not the most impactful.)

Rather, the message that Ms. Fu relayed — and the one I will remember for award dinners to come — was her emphasis on giving back. During her remarks, she described how after being “asked” to leave the People’s Republic of China, she came to this country to start anew. Unfortunately, the airfare to her final destination had increased, but thanks to the kindness of a total stranger who gave her $5 to make up the fare difference, she was able to attend an English as a second language program and begin her life in America…and a phenomenal career.

In her early endeavors and as she built Geomagic, she was guided by the idea that while the world is global, a company’s impact is first local. She stressed the importance that companies of all sizes give back to their communities and be an active part in them. In this vein, she noted Geomagic’s decision to expand and grow in the Research Triangle despite lower labor costs in other venues around the world for the talent the company needs. Echoing a quote she gave to an early news story announcing her role in the Start-up America campaign, that “It’s good will, and being a company that’s doing good things for society [that] will bring good things in return,”  she noted  how Geomagic is actively involved in all aspects of our regional community, from collecting unused soaps, shampoos and toiletries for the Durham Ronald MacDonald House to adopting a school to hosting school groups with an interest in engineering for an afternoon of 3D to
volunteering at Habitat for Humanity. They do this not because it’s a good thing to do, but because it’s the thing right thing to do.

Appropriately, she ended her comments at the IAC Dinner with the advice that when in doubt, we should all err on the “side of generosity.”

It struck me as more than a coincidence that she chose to use that term. Fifty three years ago, a group of visionaries were guided by the same principle in setting up the Research Triangle Park. As Professor Albert Link so aptly captured in his book detailing the founding of RTP – “A Generosity of Spirit” – the Park’s establishment was all about creating a highly ambitious “big bet” that served as a catalyst for aligning the region and state’s knowledge resources and business climate attributes to create jobs and opportunities for all of North Carolina.

As George Simpson (one of the first staff of RTP) noted, “There was a generosity of spirit that dominated from the beginning, and this was what enabled people to look beyond their own narrow interests for the benefit of the entire project.”

Whether creating a research park or providing the inspiration and passion to turn an idea into a start-up that has gained global recognition, the generosity of spirit lives on in the region. It’s what feeds the collaboration that fuels innovation…and what makes the Research Triangle such a unique place.

Importance of Investing

It was a busy week for the Research Triangle: in the span of five days, three Cabinet officials – Secretary of Education Duncan, Secretary of Homeland Security Napolitano, and US Treasury Secretary Geithner came to see first-hand what happens when you combine more than 50 years of investments in education and knowledge creation with activities to spur and nurture economic growth.

During Secretary Geithner’s visit, the Foundation had the privilege of hosting a small roundtable discussion before he headed to Wilmington to tour the Corning facility. The discussion was a chance to show off the enormous range of activity in the Park and region and for the participants to share their thoughts on the state of the economy and actions that could be taken to raise business confidence with the Secretary. The regular suspects of long-standing information technology and biotech firms were well represented (with IBM, RedHat and Biogen idec), as well as some of the region’s start-ups such as Appia, SciQuest and Advanced Liquid Logic and relative new comer to the region, IEM. Also included in the mix were representatives from the industries that help make the R&D happen: Progress Energy, ShopBot Tools and the Daniele company. Finally, the discussion included representatives from academia (the UNC-System and Duke), as well as the venture community  (InterSouth, Hatteras Venture Partners) and our statewide business organizations (the North Carolina Chamber and the North Carolina Technology Association).

Below are excerpts of a blog posted by Victoria Suarez-Palomo, Deputy Assistant Secretary
for Business Affairs and Public Liaison. For the original/full blog please visit the Department of Treasury’s news section).

This week, I joined Treasury Secretary Tim Geithner on a trip to North Carolina where we saw firsthand how critical innovation is to our economy. He heard from business leaders and university presidents at the Research Triangle Park and visited Corning Incorporated’s optical fiber manufacturing plant in Wilmington.

At the Research Triangle Park, one of the country’s largest R&D centers, Secretary Geithner engaged in a discussion about accelerating economic growth, putting more Americans back to work, and helping U.S. companies compete in the global marketplace.

This trip was a reminder that we are a country that invents, creates, and builds things here – things the world needs.

Deputy Assistant Secretary Suarez-Palomo closed her blog by noting that the visit emphasized something the Research Triangle region has recognized for more than 50+ years: the importance of investing in a strong workforce and favorable business climate to ensure our economy leverages our vast knowledge assets and operates at its full potential to create opportunities for the people and businesses in North Carolina.

HTCE: Another take on fostering innovation

Last month, the International Economic Development Council held its annual gathering of the nation/world’s economic development practitioners in Charlotte. In addition to being able to show off all that North Carolina has done to target and guide its economic development efforts to create more and better jobs, it was also a chance to catch up with others around the globe engaged in technology-based economic development (a practice in which RTP takes pride in being one of the first-movers).

One such peer is High Tech Campus Eindhoven. HTCE, as it is often referred to, lives up to its tagline of being  “The brainiest square kilometer in the Netherlands.” Originally the home of the Philips Research Laboratories, the campus was opened to other technology companies in 2003. Based on the idea of creating an open innovation ecosystem, it is currently home to 100 companies, including global players such as IBM (also an RTP tenant — celebrating 100 years this year), Philips, NXP, and ASML, as well as numerous incubators, start-ups and SMEs. It is also home to renowned research institutions such as the Holst Centre and enjoys proximity to the Eindhoven University of Technology.

Sound familiar? We thought so – in as much as RTP shares similar attributes of working to concentrate its region’s intellectual resources in a concentrated area and works to spur connections between the area universities and our companies. We also have similar aspirations of figuring out how to create an environment that caters to both the large and small players of our region/state’s knowledge ecosystem — both in the built space as well as in celebrating our natural environment.

To read more about HTCE, visit their website or a recent article on their globalization efforts.

Measuring RTP’s Impact

Population growth in the Research Triangle region over time

RTP. The Research Triangle Park.  The Research Triangle Region.  The Triangle.  Raleigh-Durham. 

Call it what you will, but the Research Triangle Park is the brand upon which our region is built. 

If the Park’s founders hadn’t made the big bet to create the Research Triangle Park, the region would have likely succeeded due to the local universities, but it would be a different market than we enjoy today.

Have you ever wondered what the region would be like if RTP was never established?

We have. That’s why we’ve commissioned HR&A Advisors to undertake an economic impact analysis of the Park and its effect on the surrounding region. Our hope is to begin to understand the impact of the Park and make sure that our future efforts continue to enhance it.

They looked at the comprehensive economic impact of the Park throughout the region, looking at things like the economic and fiscal benefits generated within the Park, historical economic and demographic growth patterns, and the growth of what they have termed our “innovation cluster.”

We’re still crunching the number that are directly attributable to the Park, but here’s a preview of some of the data points they’ve uncovered. (The results are still preliminary–in other words, we still need to vet them and make sure our assumptions in creating the model are valid from various perspectives). Nevertheless, they do validate the strategy that was launched 52 years ago to marshal the region’s knowledge assets and natural resources to change the economic base of the region.

Read more »

Enhancing US Competitiveness

President Obama’s Council on Jobs & Competitiveness visited the Research Triangle region last week. In addition to touring Cree’s manufacturing facilities, the Council had five listening sessions in the region and met as a full council for the second time.

Below is a compilation of links compiled by the Jobs Council to other agencies/initiatives working on issues related to increasing US competitiveness:

• Change the Equation: Change the Equation is a non-profit, non-partisan CEO-led initiative to solve America’s innovation problem. It answers the call of President Obama’s Educate to Innovate Campaign to move the U.S. to the top of the pack in science and math education over the next decade.
• U.S.- International Dialogue on Women in STEM: President Obama has made clear that as part of his commitment to “restore science to its rightful place” the United States needs to do more to engage young people and underrepresented groups in the pursuit of science, technology, engineering, and math (STEM) education and careers.
• Mentoring Our Future Generation of STEM Professionals: The STEM Programs works to ensure American competitiveness by promoting the fields of science, technology, engineering, and math.
• Better Building Initiative: President Obama’s Plan to Win the Future by Making American Businesses More Energy Efficient through the “Better Buildings Initiative.” The Better Buildings Initiative promotes investments in clean energy technologies.
• Smart Grid Technology Framework for the 21^st Century Grid: This policy framework describes the goals of the Obama Administration in meeting consumers’ energy needs, incentivizing renewable energy, and improving grid security. (Similarly, the N&O ran a story on NCSU’s research in the area).
• Startup America: The Startup America initiative connects entrepreneurs with successful businesses, opens up $2 billion in seed capital for emerging companies in fields of strategic importance, and aims to simplify tax policy.  A coalition of businesses led by AOL founder Steve Case has responded to the Administration’s effort with the private Startup America Partnership.  The Partnership held a meeting in Durham earlier this year. (Here’s a great blog post by Geomagic on the visit.)
• US Small Business Administration: The US Small Business Administrationprovides loans to establish a new business or to assist in the acquisition, operation, or expansion of an existing business. The SBA also provides customized counseling services for businesses through its Small Business Development Centers (SBDCs).
• Small Business Financing: The US Treasury has a variety of programs to help finance small business development.  The Small Business Lending Fund (SBLF) will provide up to $30 billion in capital to targeted lenders with assets of less than $10 billion and is structured to incentivize small business lending.  The State Small Business Credit Initiative (SSBCI) will spur up to $15 billion in lending by strengthening innovative state programs that support private sector lending to small businesses.
• Skills for America’s Future: President Obama created this initiative to improve industry partnerships with community colleges and ensure that America’s community college students are gaining the skills and knowledge they need to be successful in the workforce.
• The National Advisory Council on Innovation & Entrepreneurship (NACIE): NACIE has been charged by Secretary Locke to identify and recommend ways we as a nation remain the source and home of paradigm changing innovations and the companies that deploy them. NACIE will offer policy recommendations that facilitate economic growth through entrepreneurial activity, the commercialization of new ideas and technologies into high-growth, innovation-based businesses, and job creation. It also serves as a vehicle for ongoing dialogue with the entrepreneurship community and other stakeholders. (RTP’s Geomagic CEO Ping Fu and UNC-CH’s Chancellor Holden Thorp serve on the Council.)

Showing off “Research” in the Research Triangle

At the speech at CREE

Over the last 36 hours, the Research Triangle Region has been abuzz with the visit by President Obama and his Council on Jobs & Competitiveness. While his speech and the meeting with the Council on Jobs and Competitiveness were the culmination of the visit, a number of roundtables and site visits were held throughout the Research Triangle to tell the region’s story to Council members and staff.  

At Centennial Campus (via NCSU's Flickr page)

One group looked at entrepreneurship and was able to tour the unique vibe and atmosphere that has been created at the American Tobacco Campus’ Underground. Another visited NC Central University and discussed workforce development issues. Yet another went to the FREEDM Center at NC State’s Centennial Campus and heard how the region and state is leading the way in clean-tech and smart-grid technology. And finally, two groups visited the R&D and manufacturing facilities at DuPont and Biogen Idec in RTP and discussed the challenges to R&D, biotechnology, and innovation.

And if that weren’t enough to absorb in such a short time period, members of the Council and staff who arrived Sunday were able to meet with a group representing North Carolina’s burgeoning “fourth sector” — for benefit entities that are creating jobs and doing so in a ways that strengthen our community and protect our resources; attend the Durham Bulls game; and meet a cross section of the region’s innovators and entrepreneurs at a reception at American Tobacco. 

Miss the fun or need to catch up on all the “listening” sessions? Much of the conversation was captured via Twitter under the hashtags #ObamaRTP, #ObamaCree, #centcampus and/or #jobscouncil. Also check out the White House transcripts and press releases and a host of coverage via @WRAL, @CREE, @newobserver, @TheRTP,  and @crismulder. Finally, thanks to the Chapel Hill-Carrboro Chamber, here’s a quick list of the local press & blogs:

•  A corporate America’s ‘Who’s Who’ is visiting Triangle
• Jeff Immelt & Ken Chenault: How We’re Meeting the Job Creation Challenge (Wall Street Journal, 6/13/11)
• Obama council gets earful in Triangle (Triangle Business Journal, 6/13/11)
• Why has Obama chosen Cree? (Herald Sun, 6/12/11)
• Local biz leaders to feds: Don’t tread on us (News& Observer blog, 6/13/11)
• Presidential advisers discuss entrepreneurship at American Tobacco (Herald-Sun, 6/13/11)
• GE’s Immelt and other CEOs on White House panel make job-creation recommendations to Obama (LA Times, 6/13/11)

Triangle Startup Weekend: What did you do this weekend?

Last weekend, CED was one of the hosts for Triangle Startup Weekend – an event to build a company in 54 hours.  According to Joan Siefert Rose of CED, there where nearly 200 people for the kickoff, and more than 100 people worked over throughout the weekend in the American Underground to create their companies. Eighteen teams presented the result of their concentrated efforts Sunday afternoon.  Thanks to Joan for sharing news of the winners:

• First Place: YardSprout, a company matching homeowners with master gardeners to help cultivate part of their lawn to grow food
• Second Place: DoTheData, a company founded by Jenny Eigenrauch and Wendy Lybrand, counselors in Chapel Hill-Carrboro City Schools. The technology is designed to help counselors manage student records in a more efficient and actionable way.
• Third Place: Knackeo, a company dedicated to helping individuals develop the “knack” for certain skills by linking them with the right people and resources. 

Special kudos to the judges – Jason Caplain of Southern Capitol Ventures; Joe Colopy of Bronto; Brian Handly, advisor at RingLeader Digital; Joe Velk of Contender Capital; and Richard White of UserVoice. And special thanks to the other organizers: Triangle Interactive Marketing Association, Triangle Business Law, with help from Group Story and ReverbNation, in partnership with Startup Weekend, a nonprofit based in Seattle. 

Continued investments in University Research Key

Last week the Research Triangle Foundation participated in the annual Triangle Chambers visit to DC to brief our Congressional delegation on issues that impact the Research Triangle region’s economic competitiveness. In addition to infrastructure issues such as transportation funding, transit and high-speed rail, the group also reminded our representatives of the importance of strengthening one of our region’s strong assets – our university research system.

One of the participants noted that if the Research Triangle Region were a state, we’d rank 3^rd in terms of Federal Funding for university research. While that’s a good thing – and our universities have ample evidence of how they’ve positively leveraged those funding sources  – the forecast for continued strong Federal investment in university research and innovation funding is not very promising. In FY2011, Federal agencies proposed a total budget authority of $143.4 billion for federally funded research and development, a 2.3 percent decline in inflation–adjusted dollars.

A recent study by the Information Technology and Innovation Foundation (ITIF) sheds light on the implications of the decline. ITIF reports that the United States is falling behind its peers in the amount of government- and business-funded university research. In 2008, the United States ranked 18^th out of 30 in terms of growth in government-funded university research as a percentage of GDP. Countries like Sweden (1),  Ireland (4), and Singapore (7) had much stronger spending.

The trend is unfortunate given that, as ITIF suggests, the private sector often under-invests in innovation so that university research plays a key role in filling in the gap. Moreover, in the last three decades, the trend has been for large corporations to heavily downsize or repurpose their central research laboratories. University-based research has become increasingly important in basic and early-stage research, as ITIF notes, to expand “the knowledge pool from which the private sector draws ideas and innovation.”

The full ITIF report, “University Research Funding: The United States is Behind and Falling,” can be accessed here. For information about Research Triangle university research efforts, see:

• Duke University Research
• NC State University
• UNC Chapel Hill Research

Join RTP Companies to Aid Tornado Victims

In addition to its brand as one of the most high-tech regions in the country, the Research Triangle region is also known for the generosity and commitment of its corporate community. Whether mentoring student and enhancing STEM education, supporting budding entrepreneurs, or coming to assistance of the community in times of need, RTP companies and their employees give back to the region.

 The latest example of this is a food drive on Wednesday, May 4 at Lenovo to contribute to the many communities in the eastern part of the Research Triangle that were devastated by tornadoes last month. The donations will benefit the Food Bank of Central & Eastern North Carolina, the Food Bank of the Albemarle, and the Second Harvest Food Bank of Southeast North Carolina. Donations can be dropped off between 6:30 AM – 2:00 PM on May 4 at the Lenovo Headquarters, Building 1. (To read a summary of what has been collected thus far or for other ideas on how you can help, please visit the Food Bank Central & Eastern North Carolina website.)

Items most in need include: high-protein canned meals with  pop-top cans (ravioli, soups, etc.) that do not require refrigeration; other single serving meals that do not require refrigeration or cooking; single serving snacks (raisins, granola bars, etc.); cleaning supplies, disinfectant wipes; paper goods and products; and/or diapers and personal care products (shampoo, soap, toothpaste, toothbrushes, hand sanitizer, etc.)

 To further encourage participation, eligible individuals who donate at the Lenovo collection site on May 4 can be entered into a drawing for a chance to win a Lenovo computer.