Daraius Irani, PhD RESI of Towson University

Daraius Irani, PhD RESI of Towson University

How does Research & Development fit into Technology-Led Economic Development in a Knowledge Economy?

Objectives in a Knowledge Economy Capture and commercialize innovations R&D Advance competitiveness of traditional industries Grow a visible globally-competitive cluster in new knowledge enterprises Create and sustain a highly skilled work force IEDC Baltimore; Sept 9, 2005

Characteristics of a successful knowledge economy: Convenience Quality Flexibility Customization Human capitol Entrepreneurship Collaboration Networks IEDC Baltimore; Sept 9, 2005

Research and Development is a big player in the emerging Success in a Knowledge Economy is dependent on 3 variables: 1. Technology and Capital 2. Quality of Place 3. Talent IEDC Baltimore; Sept 9, 2005

IEDC Baltimore; Sept 9, 2005 To succeed, a community needs. Funding for investment into new opportunities Aid in creation and development of innovations and entrepreneurship Tech-savvy infrastructure and support high-tech companies To support research and development: Resources: laboratories, Broadband, IT companies, etc. Services: machine and glassblowing shops

To succeed, a community needs. Amenities and resources to attract the young and wealthy Hip Community Support from local colleges/ universities Quality of life Commute times/distance IEDC Baltimore; Sept 9, 2005

To succeed, a community needs. Knowledge workforce High level of education throughout the community Retention of the current highly educated population To support research and development: Encourage research at local universities to build a workforce with in-lab experience IEDC Baltimore; Sept 9, 2005

The Knowledge Workforce Manipulators of ideas, not objects Paid to think Valued for abilities in Life long learning Application of acquired judgment creatively Complex problem solving Provide intellectual capitol to there employers More than half of America s work force IEDC Baltimore; Sept 9, 2005

Regionalism Cluster Creative Class Hidden Technology Companies IEDC Baltimore; Sept 9, 2005

Natural economic region with city or college as center Create a global regional identity Create regional alliance and organization to proactively pursue economic goals Market region as a whole Devise end to end strategy Expand aid to entrepreneurship (incubators) Expand knowledge infrastructure (research parks) IEDC Baltimore; Sept 9, 2005

Groups of related businesses Close proximity Collaboration and competition Snowball Effect Creates economic growth Promotes regional identity IEDC Baltimore; Sept 9, 2005

Considers the creative class the driving force to expanding economies College graduates and other educated people Promoters of innovation and growth Closely related to the knowledge workforce Responsible for drawing on knowledge for complex problem solving Makes up about 12% of the U.S. workforce Florida, R. (2002). The Rise of the Creative Class: And How it s transforming work, leisure, community and everyday life. New York: Perseus Book Group

National trend toward self employment Trend beginning of tech workers moving away from tech hot spots Starting new businesses outside of traditional tech locations Join with others like them to form larger alliances Made possible buy internet and cheaper technology capital IEDC Baltimore; Sept 9, 2005

3.00% Ratio R&D Employment to Total Workforce by County 2.50% 2.00% 1.50% 1.00% Fredrick Montgomery Charles 0.50% 0.00% 0.03% 0.03% 0.03% 0.01% N/A 0.12% 2004 2005 2006 2007 2008 2009 United States Bureau of Labor Statistics, 2009

Naval Support Facility at Indian Head Base Residents 360 Jobs 3,472 Infrastructure Investments in construction and infrastructure improvements Investments in environmental compliance and protection initiatives Location Plant asset value 1,700 buildings containing specialized equipment $74 Million (FY93-FY03) $89.5 million (FY93-FY03) 3400-acre peninsula, 30 miles south of Washington, DC $1.85 billion DCMillitary.com (2008)

Medical Facility Estimate Employee s Civista Medical Center 805 Genesis Health Care 320 Charles County Nursing and Rehab Center 232 Waldorf Healthcare Center 110 Maryland Department of Business and Economic Development (2005-2010)

Respective Knowledge Workforce 250000 200000 218,700 150000 136,600 Total Population 100000 50000 0 24.1% 32,920 36.4% 79,606 At least a Bachelor's Degrees Charles County Frederick County U.S. Bureau of the Census

Educational Attainment People Over the Age of 25 Highest Level of Education Number of people Percent of population Less than 9th grade 3,235 3.5% 9th to 12th grade, no diploma 5,181 5.6% High school graduate (includes equivalency) 30,377 33.0% Some college, no degree 23,212 25.2% Associate's degree 6,524 7.1% Bachelor's degree 14,224 15.5% Graduate or professional degree 9,241 10.0% U.S. Bureau Of the Census (2009)

Higher Education Enrollment Degree Programs for R&D (Associate s and Bachelor s Transfer Programs) College of Southern Maryland 8,240 -Biological Sciences -Biotechnology -Environmental Technology -Applied Science and Technology -Electrical Engineering -Mathematics/Physical -Sciences Engineering Waldorf Center For Higher Education 3,000* Programs through UMUC -Biotechnology -Laboratory Management -Microbiology -Natural Science -Mathematical Sciences -Computer and Information Science ChooseMaryland.org, 2010

Indian Head Science and Technology Park 250+ acres Waldorf Technology Park 56 acres 300,000+ SF ChooseMaryland.org, 2010

Laboratory Cost by County Rent per square foot 30 25 20 15 10 5 Charles County Frederick County Montgomery County 0 Low End High End Average ChooseMaryland.org, 2010

Central Laboratories Located in close proximity to Company Headquarters Easy and more cost effective provision of expensive services Large presence in the local science community Can include a production facility Close location for technical support from lab personnel at HQ LabManager.com; 2009

Smaller, Scattered R&D Labs Smaller R&D firms and start-up companies Can be located in or adjacent to production facilities Renting of lab spaces create advantages for small scattered labs which: Reduces costs of relocation Retains talent Integrate new ideas Avoids problems and time to get permits Allows new tenant access to established utilities LabManager.com; 2009

Locating Labs in Hot Spots Areas with businesses and schools of same focus Greater communication between universities and companies Appeals to students through proximity Overpopulated hot spots have companies opting for cheaper land a further distance from a hub Less over head from land cost and easier commute But less influence within the hotspot LabManager.com; 2009

Factors companies look for in domestic locations (poled by importance) 1 st -Proximity to R&D Personnel 2 nd -Proximity to customers 3 rd -Collaborating Firms 3 rd -Proximity to Universities 3 rd -Sponsored University research 4 th -Internet based searches** 4 th -Proximity to competitor The National Academies Press

DECO Blog

You re Invited! Economic Outlook Conference February 16, 2011 9 11:30 a.m. BWI Hilton Highlights Economic Forecast for the Region, Dr. Daraius Irani, Towson University Moderator and Commentator, Jeff Salkin, Maryland Public Television