Presentation “Understanding and Globally Communicating the LA Region’s Unparalleled Technology Resources” Ken Dozier Far West RTTC 8/15/01 University of Southern California Technology Transfer Center 1 The Future “When the Rate of Change Outside is Greater Than the Rate of Change Inside, The End Is In Sight” Jack Welch, Chairmen General Electric University of Southern California Technology Transfer Center 2 What is Knowledge ? Truth Knowledge Universal Belief Social Personal No Debate Converge on debate Diverge on debate Effect Cause Cause 10 Philosophical Mistakes (Adler 85) University of Southern California Technology Transfer Center 3 The Future “Man will never reach the moon, regardless of all future scientific advances” Lee De Forest, Radio Pioneer, 1957 “where ... The ENIAC is equipped with 18,000 vacuum tubes and weighs 30 tons, computer in the the future may have only 1,000 vacuum tubes and weigh only 1.5 tons” “There is no reason anyone would want a computer in their home” - Ken Olson, president and founder, Digital Equipment Corp., 1977 - Popular Mechanics, 1949 “This ‘Telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us” “The problem with television is that the people must sit and keep their eyes glued on a screen; The average American family hasn’t time for it” - New York Times, 1949 - Western Union, Internal memo, 1876 “I predict the internet... Will go spectacularly supernova and in 1996 catastrophically collapse ” - Bob Metcalfe, 3COM founder and inventor, 1995 University of Southern California Technology Transfer Center 4 Velocity “ According to Silicon Valley CEO’s, 60 % of the high-tech items they manufacture today did not exist 10 months ago” Lon Hatamiya, Secretary - California Trade and Commerce Agency “Startups are now expected to go public within 6-18 months after venture investment” Donna Jensen, Founder and CEO of startups.com University of Southern California Technology Transfer Center 5 Industry Clusters Industry Cluster Electronic Key Export Oriented Firms Key Supplier Oriented Firms Key Economic Infrastructure Providers Consumer Electronic Assembly Tool, Die & Machinery Education & Training Institutions (ERI/McGraw Hill,”America’s Clusters”,1965) Computer Hardware Assembly Office & Production Supply Specialized Component Supply Physical Infrastructure Providers Financial and Regulatory Institutions – “Industry Cluster”: collections of competing and collaborating industries in a region networked into horizontal and vertical relationships, involving strong common buyer-supplier linkages, and relying on a shared foundation of specialized economic institutions. Because they are built around export-oriented firms, industry clusters bring new wealth into a region an help drive the regions economic growth. University of Southern California Technology Transfer Center 6 Industry Clusters (ERI/McGraw Hill,”America’s Clusters”,1965) Automotive Business Services Home and Lifestyle Products Agriculture and Food Processing Aerospace/Defense Info/Media and Entertainment Fashion, Apparel and Textiles Energy and Process Materials Industrial Machinery Educational Services Health Services Forest Products Electronics Machinery and Systems Tourism and Recreation Metals Bio-Medical Products Financial Services Construction Products Transportation and Distribution University of Southern California Technology Transfer Center 7 Industry Clusters University of Southern California Technology Transfer Center (ERI/McGraw Hill,”America’s Clusters”,1965) 8 Industry Clusters University of Southern California Technology Transfer Center (ERI/McGraw Hill,”America’s Clusters”,1965) 9 The Evolution of Industry Theme Parks Motion Pictures Motion Pictures Television Computer Peripherals Aviation Electronics Defense Instruments Defense Aviation Defense Aerospace (ERI/McGraw Hill,”America’s Clusters”,1965) Theme Parks/ Tourism Visual Media Production Professional Services Multimedia Technology Engineering Services Commercial Aviation Technology-Based Metal Products General Manufacturing Food Processing General Manufacturing Information Processing Agriculture Information Processing Business Services Automobile Manufacturing University of Southern California Technology Transfer Center Manufacturing 10 EZ and Incubator Spatial Distribution University of Southern California Technology Transfer Center 11 Traditional Entrepreneurship • Typical Waterfall model • Six Stages – basic research, development research, product and process ideas, prototype, production, diffusion • Criticisms – Too much focus on the solution “push” – basic research not the only initiator stage – relationship between research and commercialization is too complex to be linear – Users are the key “pull” to the problems and markets University of Southern California Technology Transfer Center Sung 2001 12 New Non-Linear Model • 2001 study of startup companies across: Software telecom (35%), Bio-med (19%), Computers (16%), and Semi-conductors (10.8%) • Innovation: research (12%), development ( 22%), application stage (57%), production (9%) • Age: Linear older ( 35-45), non linear (25-35) • Education: Linear more (28%P,42%M,30%B), Non Linear (7.5%P, 22%M,67%B) • Experience: Linear narrower (59% research, 35% commerce), Nonlinear (37% research, 29% commerce, 17% education) • Both groups agreed on success factors: business plan, leadership, technical skills, management skills, and location University of Southern California Technology Transfer Center Su ng 2001 13 The Non-Linear Drivers Gates Jobs Clark Clark “Microsoft” “Apple” “SGI” “Netscape” University of Southern California Technology Transfer Center Developers Xerox Xerox E&S, Stanford University of Illinois 14 Make & Sell vs Sense & Respond Chabol (large companies) hierarchy, products based, (push) Federal Agencies, SBIR: Mission Based, Linear (push) Universities: Curiosity Based, emerging, (push) Venture: Niche markets, Incubators and Science Parks created to bridge gap between development and commercialization University of Southern California Technology Transfer Center public trading (pull) Chart Source: Corporate Information Systems, Applegate 15 Media Bandwidth Source: 1999 Fall Meeting, Community Development Council, Chuck Matthews INFOWORLD, Sept. 2000 ATM Gigabit Ethernet IEEE 1394 / Firewire LASER / Fast Ethernet 10BaseT / CAT 5 Microwave / Ethernet G3 / Wireless LAN DSL/ Cable G2 Wireless G1 Wireless University of Southern California Technology Transfer Center 16 Market Redefinition:Radical Change Seven Organizational Change Propositions, Venkatraman 1994 University of Southern California Technology Transfer Center 17 Solutions for Content Distribution Satellite Cable Terrestrial Internet DSL Wireless Encrypted IP Encryptor IP Gateway Content University of Southern California Technology Transfer Center 18 Security Solutions for Data Broadcasting Network operation Center Content Aggregator University of Southern California Technology Transfer Center Rural Infrastructure 19 Solutions for Digital Cinema Encrypted IP Encryptor IP Gateway Picture Studios File Servers Digital Projector University of Southern California Technology Transfer Center 20 6-D Dimensions of Global Commerce Decentralization Despacialization Denationalization Disaggregation Demassification Disintermediation University of Southern California Technology Transfer Center Source: The Social Life of information, Brown & Duguild 21 Global Competition •3 Finland • 4 Luxembourg •5 Netherlands •6 Hong Kong •7 Ireland •8 Sweden •9 Canada •10 Switzerland University of Southern California Technology Transfer Center Source: The world Competitiveness Yearbook IMD International 22