A state's ability to inspire, encourage, and sustain economic innovation in all of its industry sectors is key to long term economic success. In recent years, Oregon has moved toward this goal by investing in a comprehensive innovation plan and leadership council, and provided critical seed funding to many projects and organizations almost guaranteed to bring valuable jobs and dollars to the state. With a focus on key traded sector clusters, Oregon has realigned the state's economic focus to encourage partnerships among private and public sector players and to optimize all of the state's resources to develop and attract new products and enterprises
Goal: Expand Oregon's Capacity for Economic Innovation
Oregon Innovation Plan. The 2007 legislature invested in the Oregon Innovation Plan, a suite of measures aimed at creating jobs in Oregon's innovation economy, developed by a team of private and public sector experts called the Oregon Innovation Council. The legislature re-affirmed its commitment to the Innovation Plan in 2009, awarding significant funds within a budget constrained environment.
The creation of the Oregon Innovation Council was recommended in the Oregon Business Plan in 2004, as a successor to the Oregon Council for Knowledge and Economic Development (OCKED). Below are a few key accomplishments of the Oregon Innovation Plan. A full account of the Plan and its accomplishments can be found at www.oregoninc.org.
- Investments to spur the growth of an Ocean Wave Energy industry in Oregon.
- Investment in Manufacturing Competitiveness
- Investment in Food Processing/Seafood innovation and sustainability.
- Continued investment in the Oregon Nanoscience and Micro technology Institute (ONAMI
- Seed funding for the Built Environment and Sustainable Technologies Research Center (BEST)
- Seed funding for the Oregon Translational Research and Drug Institute (OTRADI)
- Improvement to technology transfer
- Expanding the Scope of the Oregon Growth Account
- Modifications to the University Venture Fund
Signature Research. The Oregon Nanoscience & Microtechnologies Institute (ONAMI) was established as the state’s first signature research center. In 2003 the Oregon Legislature provided $20 million in capital and $1 million in operations. In its first year of operation, ONAMI leveraged more than $25 million in new federal and private research from less than $1 million of state funds. In July 2004, the Micro-Nano Breakthrough Conference was held with more than double the anticipated attendance.
According to independent research conducted by RTI International in 2008:
- Ten spin-off companies have been launched or critically enabled by ONAMI funding.
- Companies that ONAMI funding helped create will generate as many as 608 new direct and indirect jobs by 2011, and as many as 1,363 by 2013. These are not only research jobs requiring four-year degrees, but also include jobs for technicians and skilled workers earning living wage salaries. (These are the most conservative estimates; the report states an upper bound forecast for 2013 would be as many as 2,103 jobs.)
- Oregon’s $2.5 million investment in matching funds for competitively awarded grants alone has generated a six to one return, bringing in $15.2 million in federal grants since 2006. Ten spin-off companies have been launched or critically enabled by ONAMI funding.
- ONAMI has generated $77 million in cash inflows to the state that likely would not have occurred had ONAMI not been created. (State costs include $38 million since 2004, leaving a net economic benefit of $39 million.)
In 2007, as part of the Oregon Innovation Plan, the legislature created two additional signature research centers. The Bio-Economy and Sustainable Technologies (BEST) Center and the Oregon Translational Research and Drug Development Institute (OTRADI).
Click here for more information on research and development in Oregon.
Economic Development Refocus. In 2003 the Governor, Legislature, and new department director formally realigned the mission, organization, and budget of the Economic and Community Development Department (OECDD) to strengthen business retention, expansion, and recruitment. OECDD was allocated a $10 million "strategic reserve" fund to work with industry. HB 2011, adopted by the Legislature in August of 2003, codified the refocused mission. HB 2011 also directed OECDD to develop an economic development strategy for the state, and established the Governor's Council on Oregon's Economy to recommend methods for creating certainty in the development process. The Legislature appropriated $7 million additional dollars to the effort. ONAMI is receiving national attention because of the level of the deep collaboration among universities and businesses.
Focus on Industry Clusters. The Oregon Clusters website launched in January of 2005, and the Oregon Business Council and the Oregon Economic Development Commission have jointly created the Oregon Cluster Network, which has met regularly since the spring of 2005. Industry clusters have helped shape the 2006 Oregon Business Plan agenda by offering feedback on the core initiatives and suggesting cluster-specific initiatives to improve competitiveness. Clusters and their unique industry-wide priorities will be a focal point of the 4th Oregon Leadership Summit. In the collaboration with Oregon, Inc., OECDD, and other statewide partners, the Cluster Network will continue to identify clusters, promote cluster development, establish best practices, and develop techniques to measure and analyze cluster health and performance over time.
Oregon Inc: In 2005, The Oregon Legislature passed and the Governor signed SB 838, establishing the Oregon Innovation Council (Oregon Inc.). The Council will coordinate the multiple knowledge economy and innovation efforts that will leverage public and private resources into a single statewide plan. The council will focus on commercializing research, increasing early stage capital, developing entrepreneurial capacity, enhancing Oregon’s international markets, and fostering a strong science and technology- based workforce and industry clusters.
University Research and Commercialization. In February of 2004, the Oregon State Board of Higher Ed formed the Academic Excellence/Economic Development (AEED) Working Group. Building off of the work of the Oregon Council for Knowledge and Economic Development (OCKED), AEED has since identify 11 areas with high economic development potential that could build on existing or emerging academic excellence in Oregon’s postsecondary institutions. AEED has extensively researched these areas, and is now positioned to work with Oregon Inc to leverage public and private resources into a statewide plan. AEED also recommended that the Board of Higher Education establish a Research Council to capitalize on research excellence in Oregon’s universities. The Council was created in December of 2005. Also, the 2005 Legislature passed and the Governor signed SB 853, creating a tax credit (capped at $14 million total) for individuals who invest in OUS and OHSU research commercialization funds.
Venture Capital. The 2003 Legislature passed HB 3613, creating the Oregon Investment Fund, which enhances Oregon’s in-state venture capital resources by $100 million.
Top-ranked MBA Program. In 2005, Babson University announced the opening of a Fast-Track MBA program in Portland while the highly regarded Oregon Executive MBA (OEMBA) moved into a new state-of-the art facility in Portland, both offering increased opportunities for Oregonians.