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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/26/2016 - INNOVATION COMMUNITYDATE: STAFF: January 26, 2016 Sam Houghteling, Industry Cluster Coordinator Josh Birks, Economic Health Director Jackie Kozak-Thiel, Chief Sustainabillity Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Innovation Community. EXECUTIVE SUMMARY The purpose of this item is to discuss Innovation Community, which Council identified as a priority at its May 2015 retreat. In recent years, Fort Collins has received numerous accolades for its business-friendly climate, vibrant culture of innovation and entrepreneurship, and outstanding quality of life. The foundation for that success lies in a collective tenacity to take calculated risks and a community committed to collaboration and self-improvement. It is in this spirit that The City of Fort Collins and Colorado State University have recently embarked on an exciting partnership to assess and advance our regional Innovation Ecosystem, centered on two initiatives:  The City of Fort Collins is mapping the assets of our local innovation ecosystem, in an effort to identify regional strengths, address industry challenges, and developing a pipeline of impactful community investments.  CSU is seeking a 2016 Innovation & Economic Prosperity University Designation from the Association of Public and Land-grant Universities, which recognizes public universities working to become stronger local, regional, and state partners in economic and community development. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Is there more that Council feels staff should be doing? 2. Does Council think Fort Collins is well positioned to support and emphasize innovation in the community and region? 3. Is there a specific industry/sector (clean energy, bioscience, water technology, manufacturing, software/hardware, creative, health, etc.) that Council would like to see a more intentional focus on? BACKGROUND / DISCUSSION The City has historically supported the Innovation Ecosystem (defined as a complex network of interconnected systems and stakeholders) in a number of different ways, generally characteristic of three roles as a convener, collaborator, and a catalyst.  1998: City launches Fort Collins Technology Incubator Program, which would later become the Rocky Mountain Innosphere.  2004: City convenes the Economic Vitality & Sustainability Action Group.  2006-2015: City begins Industry Cluster financial support and convenes industry stakeholders in an effort to catalyze Clusters Initiative’s.  2007/2008: City collaborates with key community stakeholders in the formation of FortZED.  2009: City aids the construction of Innosphere through public financing support.  2012: City partners with CSU on Powerhouse Engines Campus.  2014: City supports first annual Fort Collins Startup Week.  2014: City participates in State Sector Partnership formation. January 26, 2016 Page 2  2015: City contributes financial contribution to Small Business Development Center through BFO.  2015: Economic Health Office revises strategic plan, which includes focus on innovation and entrepreneurship.  2015: City matches State funding for CSU Ventures Advanced Industries Grant program.  2015: City partners with Colorado State University on Innovation Asset Mapping efforts and Innovation and Economic Prosperity designation. CURRENT INITATIVES Innovation and Economic Prosperity Designation: The Association of Public and Land Grant Universities (APLU) is a research, policy, and advocacy organization dedicated to strengthening and advancing the work of public universities in North America. To recognize universities that are leaders in spurring and promoting regional economic development, APLU created the Innovation and Economic Prosperity Designation (IEP). The designation includes a comprehensive self- assessment and improvement plan, focused on outreach and engagement to both internal and external stakeholders. Criteria for evaluation will address five domains: 1. Institutional understanding of its economic engagement enterprise 2. Planning for economic engagement activities 3. Promotion of and communication about economic engagement 4. Advancement of university economic engagement among peers 5. Overall: innovation and economic prosperity “Innovation” in the context of economic development often refers to technology transfer and other ways of making the results of scientific research relevant and useful. More broadly, “innovation” means new or novel methods, ideas, products. Seven principles of economic engagement 1. The institution engages and asserts institutional leadership. 2. The institution creates a supportive culture. 3. The institution ensures that university activities benefit the public. 4. The institution contributes to the development of an innovation economy. 5. The institution provides relevant educational opportunities and programs. 6. The institution promotes openness, accessibility, and responsiveness. 7. The institution communicates contributions, successes and achievements that benefit the region. Innovation Asset Map (IAM) In an effort to better identify the current Innovation landscape and Ecosystem in Fort Collins and Northern Colorado, the Economic Health Office began the Innovation Asset Mapping project in July 2015, with an anticipated date of completion of April 2016. This project will primarily be an opportunity to map connections, inventory key stakeholders, identify industry challenges and gaps, and recommend future strategies and investments for continued success. Project Timeline • May 2015: Council Retreat identifying ‘Innovation Community’ as a priority • July 2015: Council Futures presentation on the Innovation Ecosystem • Sept – Nov 2015: Innovation Asset Map Literature Review and Data Collection • Oct – Dec 2015: IEP/IAM Process Refinement & Partnership Development • Dec 2015 – Jan 2016: IAM / IEP Stakeholder Engagement: Focus Groups, 1:1’s, and Online Surveys • Feb – March 2016: Create IEP / IAM Improvement Plans and Narrative • April 2016: Submittal of IEP/IAM self-assessments and improvement plans January 26, 2016 Page 3 • May 2016: Council Work Session to present final results of IEP and IAM projects DATA AND STATISTICS In order to quantify Innovation and Entrepreneurial vibrancy, we have identified a working list of seven performance measures. When the EHO office returns to speak with Council in May, we will have a finalized list of metrics. Summary of Metrics Explanations # Indicator Structural Emphasis Strategy Emphasized Measurement Sources 1. Innovation Output Density Industry Innovation Clusters Utility Patents Per 10,000 Employees Patents are a baseline indicator for innovation comparison between regions 2. Educational Attainment Density Triple-Helix Model, Creative Class Total # of Individuals Completing a Bachelor’s Degree as % of Population The more smart people there are in a concentrated area, the faster the development process moves 3. Population Flux Fluidity Industry Innovation Clusters, Triple Helix- Model, Creative Class Net Domestic Migration Rate as % of Total Population Mixing and remixing of people strengthens entrepreneurial ecosystem. 4. Business January 26, 2016 Page 4 # Indicator Structural Emphasis Strategy Emphasized Measurement Sources 7. Economic Growth Rate Prosperity, Growth Industry Innovation Clusters, Creative Class, Triple- Helix Model GDP Per Capita Most common standard by which to evaluate and measure output/productivity within an economy. Comparative City Analysis (Cross Section 2013) Literature Review In collaboration with students at Colorado State University, staff examined academic literature and practical strategies from the fields of Public Administration, Economics, and Business to identify best practices associated with catalyzing and supporting regional/metropolitan innovation. Three practices that emerged as highly regarded in practice and strategy were: 1. Agglomeration of geographically co-located private sector firms across a supply chain into industry clusters. Clusters are market driven developments which serve to promote efficiency and competition within a local economy due their interconnectedness. The first primary benefit of industry cluster formation is business growth. The second primary benefit of industry clusters results from increases in the overall level of employment. As industries are permitted to collaborate via the formation of industry clusters, an environment of idea sharing, collaboration, flexibility, and adaptability is promoted. Evidence indicates that the result is a healthier economy with greater employment, more availability of high quality jobs, and a more stable and fluid business environment. 2. Attraction and cultivation of new talent, a generally young and educated demographic commonly referred to as the “creative class”. Studies indicate that as high volumes of “creative” individuals begin to concentrate in one specific metropolitan area, certain multiplier effects begin to occur as a result of the talent clustering within these compact spaces. Overall, the cities with the greatest number of “creative” individuals were found to produce jobs at a rate almost three times that of cities which did not. 3. The establishment of a comprehensive local network known as the ‘triple-helix’, which encompasses public and private sector actors as well as members of a research university community. The first of January 26, 2016 Page 5 clear benefit of triple helix collaboration is the access to tremendous research and development (R&D) opportunities which the university provides to the public and private sector. Reports indicate that in 2004, the total amount of academic R&D which occurred was approximately $42 billion which made up 14% of the nation’s total R&D expenditures. This rate had increased from close to 10% in the 1970s and 8% in the 1950s. A second main benefit to investing in the triple-helix innovation model stems from the university’s role as a producer of human capital. It provides the surrounding community with an abundant supply of capable and knowledgeable workers. In essence, it attracts and develops specific types of talent to complement the ideas, knowledge, and inventions which it produces. NEXT STEPS Staff from the City of Fort Collins and Colorado State University will continue to conduct outreach related to the IEP and IAM Projects, and finalize the self-assessments, improvement plans, and project narratives by mid-April 2016. Staff intends to present the final results of both projects to Council at a work session in May. Results will inform future City strategies around innovation and entrepreneurship identify gaps to mitigate in partnership with regional stakeholders, and allow for authentic dialogue related to existing opportunities and future strategic investments. ATTACHMENTS 1. IEP Designation Steering Committee Kick-off slides, November 23, 2015 (PDF) 2. Innovation Community Public Engagement Summary (PDF) 3. Innovation Ecosystem, Council Futures, July 2015 (PDF) 4. Powerpoint presentation (PDF) 2016 APLU Innovation and Economic Prosperity Designation Steering Committee Kickoff Meeting November 23, 2015 ATTACHMENT 1 2016 IEP University Designation Awarded by APLU Commission on Innovation, Competitiveness & Economic Prosperity Recognizes process of institutional self-study and engagement with stakeholders to identify strengths of economic engagement enterprise, areas for growth Application due April 15 Notification in June Award application due Aug. 12 (optional, competitive) Agenda • Introductions • Background • Opportunity • Framework, Language and Criteria • Expectations • Roles and Responsibilities • Work Plan and Schedule • Institutional Understanding • What Do We Know? • What Do We Want to Learn? • From Whom? • Next Steps The Opportunity KNOW our body of work – strengths, weaknesses, opportunities MEASURE outcomes – metrics and stakeholder feedback TELL our story – in application, to stakeholders ENGAGE – internally and externally, throughout the process Background The Opportunity • Spans all 3 pillars of land grant mission: • “Focus research in key areas of institutional strength and societal and global needs” • “Prepare and empower learners outside the campus environment” • “University’s commitment to engage citizens though community involvement” • Addresses key university values: • Customer focus • Encourage and reward innovation Background The Opportunity • Addresses several strategic goals: Research & Discovery • Goal 16: Through Research, Scholarship, and Creative Artistry, Enhance Quality of Life and Economic Development in Colorado Outreach & Engagement • Goal 25: Community and Economic Development Sustainability, Accountability, and Infrastructure • Goal 30: Marketing/Brand Management Background CICEP Taxonomy of University Economic Engagement Working towards areas of overlap = higher scale of impact Background Engagement Collaboration between institutions of higher education and their larger communities the mutually beneficial exchange of knowledge and resources in a context of partnership and reciprocity. Hallmarks of the engaged institution: 1. Organized to respond to the needs of today’s students and tomorrow’s, not yesterday’s. 2. Enriches students’ experiences by bringing research and engagement into the curriculum and offering practical opportunities for students to prepare for the world they will enter. 3. Puts its critical resources (knowledge and expertise) to work on the problems its community faces. Background Five Domains Evaluated 1. Institutional understanding of its economic engagement enterprise 2. Planning for economic engagement activities 3. Promotion of and communication about economic engagement 4. Advancement of university economic engagement among peers 5. Overall: innovation and economic prosperity Background Three Parts of Application 1. Process Narrative Background 2. Summary of Accomplishments Three Parts of Application 1. Process Narrative 2. Summary of Accomplishments 3. Growth/Improvement Plan Background Roles and Responsibilities Expectations Project Team • Facilitate and document process • Manage requirements and schedule • Lead assessment and data collection • Write application Steering Committee • Champions and thought leaders • Provide expertise, input and feedback • Provide access to resources, data • Identify key accomplishments • Create improvement goals and plans • Review application Steering Committee Schedule Expectations November Orientation, Institutional Understanding December 1-on-1 interviews Internal Survey – participation and support Programs, Metrics Collection Goals, plan for External Engagement January External Survey, Engagement Reflect on Internal Assessment findings February Reflect on External Engagement findings Identify Key Accomplishments Create Improvement Goals & Plans Steering Committee Schedule Expectations March Review Accomplishments and Improvement Plan Interim and Final review of application April Continuation – Award?, Improvement Plan implementation What Do We Know? 1. Institutional understanding of its economic engagement enterprise 2. Planning for economic engagement activities 3. Promotion of and communication about economic engagement 4. Advancement of university economic engagement among peers 5. Overall: innovation and economic prosperity Institutional Understanding Body of Work – Programs & Activities Institutional Understanding Knowledge Transfer Knowledge Creation What Do We Know? Institutional Understanding What Do We Want to Learn? Goals & Stakeholders 1 6 3 1 Simply need to communicate our activities and contributions better Need feedback from external stakeholders on achievements, priorities We know what we're doing, but how well? How can we improve? We are still figuring out what we mean by "economic engagement", our body of work To Consider… Goals & Stakeholders • How does the university define economic engagement? • Is this a shared definition with internal and external stakeholders? • Is it consistent with the CICEP framework, current ideas on “engagement”? • How well do we understand our strengths and challenges/opportunities? • Is there a shared vision with stakeholders for growth and improvement? • Is there a coordinating structure or leadership for this work? • Are there resource allocation mechanisms to support our goals? From Whom? Goals & Stakeholders December 7-18: Internal Survey Measures importance of and performance on Seven Principles of Economic Engagement The institution: 1. Engages and asserts institutional leadership. 2. Creates a supportive culture. 3. Ensures that university activities benefit the public. 4. Contributes to the development of an innovation economy. 5. Provides relevant educational opportunities and programs. 6. Promotes openness, accessibility, and responsiveness. 7. Communicates contributions, successes and achievements that benefit the region. From Whom? Goals & Stakeholders December 7-18: Internal Survey Suggested Target Populations: • Senior Administration • Academic Leadership - Deans, Research Deans, Department Heads, Economic Dev’t reps in each college • Centers & Institutes • Staff Populations: Engagement, Extension, Ventures, Alumni • Specific Faculty* • Students – SLICE, Service Learning, Presidential Ambassadors, Dean’s Leadership Councils Next Steps • Doodle poll for December meeting • Requests for program info and metrics • Scheduling of 1-on-1 interviews • Internal survey support • Feedback on tool • Distribution • Personal completion and invitations PUBLIC ENGAGEMENT SUMMARY JANUARY 26, 2016 CITY OF FORT COLLINS ECONOMIC HEALTH OFFICE PROJECT TITLES: 1) INNOVATION ASSET MAP 2) CSU INNOVATION & ECONOMIC PROSPERITY DESIGNATION OVERALL PUBLIC INVOLVEMENT LEVEL: Light to Moderate KEY STAKEHOLDERS: 1) Targeted Industry Representatives 2) Colorado State University: administration, faculty, students 3) City of Fort Collins 4) Innovation Ecosystem Support Organizations: (Innosphere, Galvanize, Small Business Development Center, CSU Research Innovation Center, CSU Ventures, etc) 5) Regional Partners: (Larimer County, Greeley, Loveland, Windsor, Estes Park, etc) 6) Community Entrepreneurs 7) Educational Stakeholders: K-12, Front Range Community College, etc 8) Funding Agencies/Investors 9) Industry/Sector Initiatives 10) State and Federal Government Agencies TIMELINE: Sept 2015 – February 2016 KEY QUESTIONS: 1) What are the greatest assets of Fort Collins' innovation ecosystem? 2) What are the greatest gaps in Fort Collins' innovation ecosystem? 3) What are the highest-potential opportunities available for recognizing your vision? 4) What role can CSU play in your vision for the future of innovation in Fort Collins? Tools and Techniques: 1) 1:1 Meetings 2) 2 Online Surveys 3) Focus Groups 4) Innovation Feedback Forum (January 27th 2016) 5) Targeted Follow Up ATTACHMENT 2 CCity Council Futures July 13, 2015 Innovation Ecosystem ATTACHMENT 3 How did we get here? 2 Historical Perspective: Fort Collins today stands, with its ideal climate, its substantial business blocks, beautiful buildings, its wide streets bordered with shade trees, not only as one of the most attractive - but because of its unrivaled location, rapidly developing industries, and importance as a market center and shipping point, as one of the most important and prosperous cities of the state. The metropolis of Northern Colorado. - Fort Collins Chamber of Commerce, 1907 Foundational Pillars 1870: Colorado Agricultural College founded 1876: ‘Doctrine of Prior Appropriation’ created; origin of Water Law in the Western U.S. 1935: Municipal Electrical Utility, wholly owned by citizens, created by public vote. 1977: Hewlett Packard opens facility on Harmony Road 1991: New Belgium kicks off wave of microbrewery development in NoCo 1998: Otterbox founded with a focus on mobile devices, tech, and design 2007/ 2015: Woodward Governor selects Fort Collins for Int’l HQ & Manufacturing facility 3 “If you want to build a great City, create a great university, and wait 200 years.” University Cities & Colorado State 4 If you want to build a great City, create a great university, and wait 200 years. – Senator Daniel Patrick Moynihan 5 0 5 10 15 20 25 30 35 40 45 USA 15 Largest Cities Cities 250k-1M University Cities % Education Attainment: Bachelors or Higher Fort Collins 0 50 100 150 200 250 300 USA 15 Largest Cities Cities 250k- 1M University Cities Per 100,000 Business Starts Fort Collins 0 20 40 60 80 100 120 USA 15 Largest Cities Cities 250k- 1M University Cities Per 100,000 Patents Issued in 2013 Fort Collins 0 10 20 30 40 50 60 USA 15 Largest Why here? Additional Accolades 6 #2 U.S. Metro Area for High Tech Startup Density #1 Best Place to Live #4 Best Place for Business/Life Fort Collins named the City of the 2010s in Smithsonian Exhibit on Innovation & Invention #1 Healthiest City Fort Collins Innovation Ecosystem 7 What does it look like? Mapping Community Connections 8 The 3 C’s: City Involvement & Support 9 • 2004: Economic Vitality & Sustainability Action Group • 2007/2008: Formation of FortZED • 2006-2015: Brought together industry stakeholders; catalyzed Clusters Convene • 2006: City begins Industry Cluster $ support • 2009: City builds RMI building • 2015: City matches State funding for CSU Ventures AI Grants Catalyze • 2012: City partners with CSU on Powerhouse Engines Campus • 2014: City supports first annual Fort Collins Startup Week • 2015: City contributes $ to SBDC Collaborate Triple Helix & a Co-Creator Community 10 UNIVERSITY BUSINESS GOVERNMENT Ripple Effect 11 BEERS BANDS BIKES Moving Forward 12 Innovation is messy and complex, and fostering an innovative environment is never easy, but the need for innovative solutions has never been greater because of the major challenges we encounter in our world today - Lloyd Minor, Provost, Johns Hopkins University Key Questions 13 Key Visioning & Operational Questions • How would Council like EHO to track innovation in our community? • How does Council want EHO to update/interface with them on Innovation moving forward? • Where in the ecosystem can we break down silos & create efficiencies? • How do we measure innovative spirit and collaboration? • In 25/50 years, what will we wish we had built/formed/catalyzed NOW? • Can a community become a ‘supplier’ to major manufacturing firms? Next Steps Potential Next Steps & Future Initiatives • Clarify & Understand: • Conduct Innovation Asset Map: identify areas of strategic investment, & explore opportunities to collaborate with CSU/ encourage their leadership in this space. • Discuss & Act: • I2P Community Fabrication Facility; largest public makerspace in the U.S. • Carnegie Creative Center: ensure impactful programming. • Southeast Community Center: identify ways for the facility to enhance the Innovation Ecosystem. 14 1 Innovation Community Sam Houghteling | Economic Health Office 1-26-16 ATTACHMENT 4 Presentation Agenda • Innovation Community & Current Projects • What We’ve Learned • Questions and feedback from City Council 2 Talent, Innovation, Place 3 2016 IEP University Designation 4 • Awarded by APLU Commission on Innovation, Competitiveness & Economic Prosperity. • Recognizes process of institutional self-study and engagement with stakeholders. • Identifies strengths of economic engagement enterprise, areas for growth, and opportunities for improvement. Project Timeline • May 2015: Council Retreat identifying ‘Innovation Community’ as a priority • July 2015: Council Futures presentation on the Innovation Ecosystem • Sept 2015 – Feb 2016: IEP & IAM Process Refinement, Partnership Development, & Internal/External Stakeholder Engagement • Feb – April 2016: IEP/IAM Improvement Plans and Project Narrative • May 2016: Submittal of IEP/IAM improvement plans & Council Work Session 5 City Investment | Foundational Pillars 6 •2004: Economic Vitality & Sustainability Action Group •2007/2008: Formation of FortZED •2006-2015: Brought together industry stakeholders; catalyzed Clusters Convene •2006: City begins Industry Cluster $ support •2009: City builds RMI building •2015: City matches State funding for CSU Ventures AI Grants Catalyze •2012: City partners with CSU on Powerhouse Engines Campus •2014: City supports first annual Fort Collins Startup Week •2015: City contributes $ to SBDC Collaborate Fort Collins History What we have learned: Highlights • Successful Strategies to enhance innovation include: 1) an intentional approach to support existing & emerging industry clusters 2) triple helix collaboration 3) a focus on the creative class / cultivating a skilled workforce • Opportunities for Improvement include: • a more intentional focus on the startup phase of cluster companies • and stronger ties to Federal / State Government agencies & programs 7 What we have learned: continued • Measuring Performance: • Fort Collins performed well in Tech Startups and New Businesses per capita. • Fort Collins performed less well in the number of businesses retained • Utility Patents per capita have declined over the last decade. • Collaborative models: • Durham, Boulder, Ann Arbor, and Madison all have integrated government, university, and community actors into autonomous entities tasked with managing and fostering innovation and economic prosperity. 8 Next Steps & Questions Next Steps • Jan - March 2016: Finalize stakeholder engagement: • March - April 2016: Finalize self-assessments and improvement plans: • May 2016: Council Work Session to present final results 9 Next Steps & Questions Key Questions 1. Does Council think Fort Collins is well positioned to support and emphasize innovation in our community and region? 2. Is there a specific industry/sector (clean energy, bioscience, water technology, manufacturing, software/hardware, creative, health, etc) that Council would like to see a more intentional focus on? 10 Cities Cities 250k- 1M University Cities Per 100,000 Arts & Entertainment Establishments Fort Collins Innovation: How do we know? Startup Rate Density, Connectivity Industry Innovation Clusters # of New and Young Businesses per 1,000 People The statistical corollary of the number of entrepreneurs you run into on the street 5. Business Retention Rate Density, Connectivity Industry Innovation Clusters # of Business Establishments Retained per 1,000 people Important to attract new businesses, but also to sustain them 6. Job Turnover Fluidity, Connectivity Industry Innovation Clusters, Creative Class, Triple- Helix Model Worker Reallocation Rate (% change from occupation to occupation per year) Major indicator that workforce members are bettering their employment situation