CATALYZING INNOVATION
Culture and Coalitions
Mitzi M. Montoya, PhD
Vice President and University Dean for
Entrepreneurship & Innovation

ACCESS
+
EXCELLENCE
+
IMPACT
• 76,000 students
• $405M annual research expenditures
• Phoenix metro area
(~6M)
• SES profile of student body matches state of AZ

The
Innovator’s
Dream

The Innovator’s
Dilemma
07. Embed yourself .

Impediment to Innovation

filiopietism, n.
Of or relating to an often excessive veneration of ancestors or tradition
— Merriam-Webster filiopietistic, adj.
Marked by excess of filial piety
— Oxford English Dictionary
Thus, filiopietistic culture:
Of or relating to or characterized by great, often excessive, reverence for ancestors or traditions

WHY DOES THIS MATTER TO CEOs
Economic growth is most commonly measured as increases in GDP per capita.
In developed economies, this growth is primarily dependent on innovation.
Innovation is driven by
• Investments in human capital, primarily education
• Informal knowledge creation
• Formal R&D
Universities have a primary role in all three.

WHO DOES WHAT TYPE OF RESEARCH
A great deal of university research is considered “basic” as compared to “applied”. The opposite is true of industry.
Source: Hill, J. K. (2006). Universities in the US national innovation system. Center for Competitiveness and Prosperity
Research, L. William Seidman Research Institute, WP Carey School of Business, Arizona State University, 2006.

VALUE OF BASIC RESEARCH
Basic research often (eventually) spawns innovative applications
• inventions, licensing and patents, most often done in the private
sector, typically within the vicinity of the research university.
It is the combination of basic research leading to applications that generate the innovation that increases economic growth in a knowledge economy.

LOCAL CASE STUDY: ECONOMIC ANALYSIS
Estimated that each $10 million in research spending creates the following direct and indirect economic impacts in Arizona in the shortrun:
• $13,500,000 in total sales (output)
• $8,650,000 in wages
• $452,000 in state revenue.
Charney, A. H., Hill, J. K., Hoffman, D. L., Lobo, J. A., Nadelhoffer, M. L. (2007). A strategic assessment of the economic benefits of investments in research in Arizona. The L. William Seidman Research Institute, WP Carey School of Business, and The Economic &
Business Research Center, Eller College of Management, The University of Arizona, 2006.

SPILLOVER EFFECTS OF RESEARCH
.
University research benefits from spillover effects for nearby corporate R&D.
• A 10 percent increase in university research dollars increases
corporate R&D by 7%.
This generates regional growth around research universities. Studies have found that urban areas with research universities have
• Higher per capita income, adjusted for cost of living
• Higher per capita income growth.
Charney, A. H., Hill, J. K., Hoffman, D. L., Lobo, J. A., Nadelhoffer, M. L. (2007). A strategic assessment of the economic benefits of investments in research in Arizona. The L. William Seidman Research Institute, WP Carey School of Business, and The
Economic & Business Research Center, Eller College of Management, The University of Arizona, 2006

INNOVATION AS A PUBLIC-PRIVATE PARTNERSHIP
Goal: Accelerate and transform regional economies into global forces for innovation and technology .
Strategies
Create capacity for innovation, technologies and advanced industries
Enhance innovation ecosystem and built environment
Establish Regions X as a hub for global trade and investments
Future Strategies
Implementing
Initiatives
Regional
Innovation
Regional
Ecosystem
Regional
Export
Initiative 1
Initiative 2
.
Ongoing process of intentional business planning for economic growth

VISION FOR A INNOVATIVE REGION
Create a virtuous cycle of growth and innovation for a more inclusive economy.
Become an attractive place for investment, not just attract businesses to grow.
Better quality of life
Productive and higher value activities
Better education and infrastructure
More tax revenue and public investment
Higher paying jobs

INCLUSIVE APPROACH
Example: Implement initiatives that support existing companies of all sizes.
Driven by creating cost efficiencies;
Global production network;
Scalability
Large publicly traded companies
Tech startups / small and mediumsized enterprises
Driven by creating new innovations;
Reinvesting in the ecosystem after successful exits

REGIONAL
INNOVATION
Advanced Industry Investments
Tech Custer 1
Tech Custer 4
Tech Custer 2
Tech Custer 5
Tech Custer 3
Tech Custer 6
Science &
Engineering
Talent Development
Additional
Workforce
Ecosystem of core technologies and human capital (supply and demand)
K-12
• Identify and develop disruptive technologies in advanced industries
• Precompetitive cross-industry research and product development
• Contract research
• Targeted talent development aligned to advanced industries
• Recruit faculty research teams in targeted clusters
• Scholarships and fellowships in targeted areas
• Internships and professional opportunities
• Train targeted technical workforce
• Prepare students for advanced industry careers

- Howard Stringer
(Former CEO of Sony commenting on Sony’s failure to change and loss of the mobile music market to Apple)

– Internal means to the firm, the university, the city, the region, the state, the nation …
Tellis (2013)

INCUMBENT’S
CURSE
• Protect Products
• Avoid Risk
• Focus on present
PRACTICES
• Incentives for enterprise
• Internal Markets
• Cultivate
Champions
TRAITS
• Cannibalize current products
• Embrace risk
• Focus on future
Innovation
+
Dominance
Source: Tellis, 2013

• Sustaining an innovation culture is an infinite loop because success contains the seeds of failure.
– Traits are difficult to change
– Practices are more amenable to change and can engender traits
• Organizations (of every type) are paradoxical. This conundrum is a potential source of creative energy. It is not a problem to be solved.
– Think culturally
– Culture is about influencing everyday sensemaking conversations
Tellis (2013), Rodgers (2007)

The Nature of Organizations
2 1
3
Organizations are complex:
“ Like the kitchens in the best run restaurants, all organizations are messy and chaotic.
” Jack
Welch
Projects and
Programs
Culture and
Climate
Models and
Frameworks
4
Managers don ’ t like this mess. So we try to frame it in a net of formal, rational and structured processes, systems and procedures.
People Change Strategy Technology
Structure
Systems and
Processes
Leadership
Conventional management wisdom maintains that, if we do these things better and get them “right”, we will be successful.
But we need to remember that organizations are not really like that. They ’ re like this. And managers need to be able to engage effectively with these underlying (hidden, messy and informal) dynamics of the real-world .
Chris Rodgers, Information Coalitions (2007)

CATALYZING INNOVATION
Culture and Coalitions
Mitzi M. Montoya, PhD
Vice President and University Dean for
Entrepreneurship & Innovation

PUBLIC-PRIVATE INITIATIVES
Medical Research and Education
31

PUBLIC-PRIVATE INITIATIVES

PUBLIC-PRIVATE INITIATIVES
Technology Transfer
Situation
• Research institutions have under/unutilized IP
• This IP represents major investment
• Moving IP to market is costly undertaking for individual institutions and TTOs tend to be small and don’t have the ability to successfully mass market IP to different groups (corporate, small business, entrepreneurs). This tends to create concentration on licensing to large companies
• Limited engagement with internal or external entrepreneurs
Solution
• Furnace is a methodology and system to support TT objectives and operations
• Enables clusters of research institutions to pool and target their IP to different groups.
• When objective is startups, Furnace serves as an accelerator model
• Furnace 1.0 tested in Arizona (2013). Furnace 2.0 in AZ and CA underway. DOD grant underway (Army, Air Force, Navy Lab).

PUBLIC-PRIVATE INITIATIVES
Entrepreneurial Ecosystem

PUBLIC-PRIVATE INITIATIVES
• Situation
– Hundreds of inventors, problem solvers, potential entrepreneurs, micro and
small businesses need assistance in advancing their ideas
• Complication
– Traditional incubators, accelerators etc. target high potential startups (HPSU) only
– Minimal support structure for small business developers, micro-business and nonuniversity affiliated entrepreneurs and innovators
– Economic development professionals can’t locate these early stage innovators
• Question
– How do we utilize scarce resources to offer support to these potential job creators
• Answer
– Utilize the existing physical asset of the library network through a ‘hub and spoke’ called the Alexandria Coworking Network
– Create hubs of small business, social enterprise and innovation activity embedded in communities
– Leverage the assets of a research university to support the network
– Leverage local economic development interests and libraries desire to serve as a community asset reimagined for the 21 st century

36
Location: Alexandria Coworking Network location at the Scottsdale Public Library

PUBLIC-PRIVATE INITIATIVES
Entrepreneurial Ecosystem

SkySong
60 companies from 10 countries
Generating thousands of jobs
ASU Spinouts and Technology Transfer
55 spinouts, 230 U.S. and foreign patents
9 ASU companies acquired or merged
A record number of invention disclosures submitted to AzTE in FY12 (239; 41% increase)
9 Startup Companies formed in FY12
14 Startup Companies formed in FY13
39

PUBLIC-PRIVATE INITIATIVES
Entrepreneurial Ecosystem

ASU Chandler Innovation Center

PUBLIC-PRIVATE INITIATIVES
Entrepreneurial Ecosystem
• Enhance the regional entrepreneurial ecosystem by establishing an accessible (open), mixed-use facility with world-class fabrication and prototyping capabilities
• Economic Development
• New business starts based on TechShop member inventions
• New patent activity (individual and corporate)
• New business recruiting to region based on unique assets for employees
• Retail growth in downtown Chandler based on traffic to site
• New real estate commercial development in surrounding area
• University Engagement
• Educational lab to support university degree programs
• Independent student entrepreneurship and self-directed learning
• Faculty and staff entrepreneurship
• University incubation and acceleration services
• K12 Advancement
• Partnership with regional school districts to support educational initiatives
• Supplemental educational programs (by ASU and TechShop)
• Inspiration of youth entrepreneurship and future engineering education

TechShop is a membership-based do-it-yourself facility that provides the public with tools, equipment, training and a vibrant supportive community of creative people.

TechShop members have access to more than $1 million worth of advanced machines and tools, sophisticated 2D and 3D design software and other equipment.