Importance of Networking in Tech Convergence

The Importance of Networking in
Technology Convergence
Presented to
Internet2 Fall Members Meeting
Presented by
Richard A. Bendis
President & CEO
Innovation Philadelphia
September 20, 2005
© 2005 Innovation Philadelphia. All rights
reserved.
“Innovation is fostered by information gathered from
new connections; from insights gained by journeys
into other disciplines or places it arises from
ongoing circles of exchange, where information is
not just accumulated or stored, but created.”
- Meg Wheatly, 1941, U.S. Academic

reserved.
A Public/Private
Partnership created to
Grow the
Wealth and
Workforce of the
Greater Philadelphia
Global Innovation
Economy

reserved.
IP Strategic Plan –
Where We’ve Been
• 1999 – John F. Street Elected Mayor of Philadelphia

• 1999-2000 – Mayoral Transition Team Explores Ways to
Make Philadelphia More Competitive
• 2000-2001 – New Economy Development Alliance (NEDA)
Steering Committee Created (Univ. of Penn, Dr. Judith
Rodin; Comcast Corporation, Brian Roberts;
GlaxoSmithKline, Dr. Jean-Pierre Garnier)
• 2001 – Innovation Philadelphia Created Under the
Leadership of Dr. Rodin
• $2.5 Million in Seed Capital from the City of Philadelphia
• Rich Bendis recruited to the City of Philadelphia, 12/01

reserved.
What is
Greater Philadelphia Regi
3 states
11 counties
• Pennsylvania: Bucks,
Montgomery,
Philadelphia, Chester,
Delaware
• New Jersey: Mercer,
Burlington, Camden,
Gloucester, Salem
• Delaware: New Castle
Regionalism - learning to work to promote growth and development

with the diverse interests of the11 counties in Greater Philadelphia
reserved.
IP’s Method of
Achieving Mission
• Attracting
• Growing
Technology-based Businesses
• Retaining
• Connecting

reserved.
IP Core Products / Services
Global & Regional

Economic Research &
Investment Commercialization Development Marketing
World’s Best
Technology Network

reserved.
Connectivity in

reserved.
Human Connectivity
Communications networks have the ability to

transform economic, political, and social relationships
on a global scale.
• In the past, organizations strategized to gain
competitive advantage.
• The emphasis in the future will be to gain
cooperative advantage.
• A core competency needed in individuals,
organizations, and regions alike is connectivity.
Source: Fast Growth

reserved.
Connectivity in Greater Philadelphia
The Greater Philadelphia Region has the

5C’s of innovation connectivity:
• Cultivation
• Collaboration
• Capital
• Careers
• Commercialization
reserved.
Connecting the Dots

reserved.
…in the Greater
Philadelphia Region

reserved.
“Science, engineering, and technology are
fundamental drivers in the economy of the
future, providing the foundation for business
growth and overall improvement in the quality
of life.”
- Mark Birrell, 1958, Australian politician

reserved.
Greater Philadelphia – A
leading Life Science
Region

reserved.
Regional Life Science Facts
• The biotech and pharmaceutical industries are responsible

for employing more than 509,000 people, either directly or
indirectly in PA, NJ, and DE. These jobs result in $40 billion
in business per year in the tri-state region.
• U.S. Production in the tri-state region
– 1st in pharma, medicine production, & healthcare industry
employment
– 2nd for industrial R&D funds in pharma per capita
– 6th for venture capital investment in biotechnology
– 10th for medical instruments and supplies
– $1.6 billion in NIH funding with over 1,500 research grants
awarded
reserved.
• 6 National Cancer Institute (NCI) designated

Cancer Centers
– Fox Chase
– Jefferson
– Penn
– Temple
– Wistar Institute
– University of Pittsburgh
• Regional Life Sciences Employment & Training
reserved.
MAGPI
• MAGPI, the Regional Internet2 GigaPoP, has connected

192 sites in the tri-state Region, including pharmaceutical
and government institutions
• High performance connectivity opens the door to
advanced collaborations
• Much of the Region’s academic research utilizes MAGPI
and Internet2 connectivity
reserved.
• 40,000 biological scientists in the tri-state region

• 1,500+ biotechnology, device & diagnostic,
pharmaceutical, and bio-agricultural enterprises are
located in the Greater Philadelphia Region
• 174,000 people directly employed by the life sciences in
the 11-county Greater Philadelphia Region
• 1 in 5 of the nation’s physicians train in the Region’s
medical schools and hospitals

reserved.
• 80% of the world’s pharmaceutical companies have

presence within 50 miles of Philadelphia
– Biotechnology companies include Centocor,
Cephalon, Medarex, ImmuneControl, Macroarray,
Gentis, Cira
– Pharmaceuticals companies include Aventis, Merck,
AstraZeneca, GSK, BMS, Johnson & Johnson
– CROs include Covance, AppTec
– Venture capital firms include Quaker BioVentures,
PAX, Care Capital, Domain, TL Ventures
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Wireless Philadelphia

reserved.
Wired Internet
Wi-Max
Backhaul
Condo/Apt
Mesh
Cell
Gateway
s
Mesh
Cell
Nodes
Indoor or
Outdoor
Antenna
Row/Town Homes
Park
Single Family/Stand Alone
Portabl
Fixed Clients Nomadi e
c Clients
reserved. Clients
Wireless Philadelphia
Mission and Objectives
• Mission
- Wireless Philadelphia aims to strengthen the City's economy and
transform Philadelphia's neighborhoods by providing wireless
internet access throughout the city. Wireless Philadelphia will
create a digital infrastructure to help citizens, businesses, schools
and community organizations make effective use of this technology
to achieve their goals while providing a greater experience for
visitors to the City.
• Objectives
- To spur economic development
- To enhance community neighborhoods
- To help overcome the digital divide
- To reduce the cost of government
reserved.
About Wireless
Philadelphia
• Estimate 2,500 WiFi cells and
5-7 WiMax bay stations will
cover 135 sq. miles
• WiFi cells will be mounted to

light poles
• WiMax bay stations will be

mounted on rooftops
• Network will support public

access, gov’t field operation
staff, public safety, smart
parking system, Automated
Meter Reading, and free public
access in major parks
reserved.
Identified
Stakeholders
Government
Residents
Tourists
Supply Business Travelers
(Assets and Foundations/Funders
Capabilities) Demand
Non-Profits (Needs &
Universities Requiremen
ts)
Schools
Businesses
Agencies/Utilities
Vendors
Healthcare Agencies

reserved.
Stakeholder
Results
• There is a need for universally-available and affordably priced

broadband
• Efforts to reduce the digital divide require broadband,
computers in the home, training, content and a defined process
• The demographics and projected demand calculations show
that there is a potential market for these services
• It is unclear if, when and at what price the private sector will
provide these services
• The City will achieve greater success by partnering with the
private sector
• Substantial involvement by the City is needed to ensure that
the project gets off the ground and that all stakeholders benefit
reserved.
Impact on
Businesses
• Neighborhoods not served by high speed data access today

will be new market opportunity
• Businesses can subscribe to wireless network to sell their
services
• Small, mid-sized, and disadvantaged businesses can take
advantage of affordable access to compete in Knowledge
Economy
• Wireless will provide new opportunities for yet unthought-of
new ideas and products
• Opportunity for businesses to market to tourists
reserved.
Economic
Findings
• Broadband availability allows local businesses to remain

competitive, operate more efficiently, and access more
consumers more quickly and thus grow faster.
• Smaller manufacturers need access to high-speed networks

to remain part of the supply chain of larger players.
• Information businesses can start and locate anywhere they

want, and they tend to look for areas with educated
workforces, advanced infrastructures and high quality of life.
Knowledge workers expect and require advanced
telecommunications infrastructure.

reserved.
Economic Findings
• Integrated into learning and communicated with the parents in the

home, broadband connections can improve education for students.
• The Internet enables entrepreneurship, facilitates networking critical

to funding start-ups, and encourages rapid tech-led economic
growth, with broadband empowering smaller players to compete
against larger and more established companies.
• A July 2005 Technology Administration roundtable on “BioCenters

of Excellence” heard from several biotech and economic
development leaders that high bandwidth connectivity is critical to
advanced biotechnology research and database access.

reserved.
Current Progress
• Mayor incorporated Wireless Philadelphia as a 501(c)3

nonprofit March 30, 2005
• Request for proposal to design, build and maintain network
issued April 7, 2005
• Responses received in June and review committees have
made recommendation to the Board
• Hewlett Packard and Earthlink have been identified as
finalists
• Winner will be selected and contract negotiated in September
• Construction to begin in September
• Entire city covered with wireless Summer/Fall 2006
reserved.
The Greater Philadelphia
Region’s Focus on
Collaboration

reserved.
Principles of Successful
Partnership
• Shared Ownership
• Broad Participation/Diversity of Interests
• Champions/Advocates
• Operational Principles
• Partnership Formalization
• Merit-Based Decisions
• Flexibility
• Cost-Sharing
• Evaluation
• Stability/Long-Term Commitment
reserved.
MISC 01289959
Regional
Collaboration
The Greater Philadelphia Region (PA, NJ, DE) has the
Regional assets to help technology companies succeed:

reserved.
Pennsylvania Bio
• A resource dedicated to helping advance the companies and

research institutions that are developing ground-breaking therapies,
devices, diagnostics, and vaccines.
• Provides networking opportunities and targeted introductions to help
members showcase their strengths and to meet people and
organizations that will help them advance.
• The only statewide association in the Commonwealth dedicated to
advancing the bioscience cause on both state and federal levels.
• Mission - To be a catalyst to ensure Pennsylvania’s position as a
global leader in the biosciences by developing a cohesive
community that unites the Region’s biotechnology, pharmaceutical,
research, and financial strengths.

reserved.
Biotechnology Council of NJ
Located in the state's capital of Trenton, the Biotechnology

Council of New Jersey (BCNJ) was chartered in 1994 with
a three-fold mission:
• To formulate and advocate public policy to elected officials and

regulators.
• To acquire and coordinate resources and provide services to
members
• regarding issues critical to building successful biotechnology
enterprises.
• To enhance awareness and appreciation of New Jersey's
biotechnology
• industry.

reserved.
Delaware Economic Development Office
• Offers a variety of support and assistance to

existing and new biotech companies including
finding companies wet lab space, securing
capital, locating networking opportunities,
providing information on workforce training
programs and tax incentives, and facilitating
other needs.
reserved.
Regional TBED
Organizations
• Four Regional Technology-Based

Economic Development
Organizations
– How do they best collaborate?

reserved.
Ben Franklin
Technology Partners
• Established in 1982 to stimulate economic growth through innovation,
entrepreneurship, and the development and adoption of new
technologies.
• BFTP operates on a Regional level through four centers strategically located
throughout PA , with offices in Pittsburgh, State College, Bethlehem, and
Philadelphia.
• Every dollar invested in BFTP yielded nearly $23 of additional income in the
state.
• BFTP generated 93,105 job-years at a cost to PA of $3,342 per job-year*.
• The state garnered more than $400 million in additional tax revenue as
a direct result of the program, which more than covered the operating
costs of the program over the same period.
• BFTP boosted Pennsylvania’s economy by $8 billion
• Web site – www.benfranklin.org
reserved.
BioAdvance
• Founded as part of the $2 Billion plus initiative by PA to strengthen the

commitment to life sciences
• BioAdvance received $38 million from the State’s share of tobacco
settlement monies to spur the creation of life sciences jobs and businesses
• Creation of PA Life Sciences Passport to provide a single gateway to major
research centers
• Creation of statewide Clinical Trials Network
• Greater Philadelphia region has 2nd largest concentration of
biopharmaceutical jobs in North America and earned $2.8 billion in NIH
funding from 1996 to 2000
• Web site – www.bioadvance.com

reserved.
Science Center
Mission:
Web site –
www.sciencecenter.org To be the world’s best
science and technology
commercialization
engine.
Real Estate SBU Commercialization Hub

• Sc Venture Formation
• Sc Capital
Science & • Sc Management Services
Technology • Sc Knowledge and Information
Center
Exchange
reserved.
World’s Best
Technology Network
Cumulative Funding Per Deal Cumulative Funding Per Deal Total Annual Deal Funding
Available
Ben Franklin Up to $750K $3M
BioAdvance Up to $1M $5M
Science Center Up to $500K $3M
IP (ESF) Up to $100K $500K-1M
MAG Up to $250K Up to $1M
IPART & IP SBIR Program Up to $750K Up to $13M
Funding amounts subject to change without notice. Science Center funding estimated funding is TBD.

reserved.
The Importance of
Academic and Industry
Collaboration

reserved.
Government’s Role
in
Science and
• Long term vision and planning Technology
• Identify gaps and trends in science and technology
environment
• Be a catalyst through strategic investments and
partnering
• Encourage a balanced and flexible research and
development portfolio
• Encourage private sector innovation
• Establish performance-based research and
development
reserved.
© KTEC 1998
Role of Industry: Wealth Crea
Capitalism is a Process of
Creative Transformation
“The interaction of technological innovation with
the competitive marketplace is the fundamental
driving force in capitalist industrial progress.”
Joseph A. Schumpetter, 1942

reserved.
Role of Academia
Building Capacity For Learning and Innovation

Knowledge
Integration
Continuous
Resource Education Learning and
Investment Research Innovation
Knowledge Knowledge
Creation Transfer
reserved.
Academia – Reasons Why
There is Little Interaction
with Industry
• Educators say that they do not have enough time to create
programs or to meet with industry representatives
• Space at research institutions to mentor students is very

limited
• There are very few institutional arrangements
• There are issues related to patents, trade secrets, and

proprietary issues.
•The surveyed industry leaders also noted these same issues.

Source: Human Capital Barriers and Opportunities for Growth in the Life Sciences

reserved.
Industry-Academic
Linkages
• Schools and firms report limited exchange of firms and ideas.
• Corporate and academic interactions are rare and often non-

existent
• Leaders of educational programs and business leaders are

eager for such programs. However, they stated that they
have no time to build these linkages.

reserved.
Recommendation -
Industry-Academic
Linkages
The Region would benefit from:
• An organization that could facilitate corporate-academic

linkages.
• Examples and models of successful collaborations.
• A legal template that would facilitate corporate-academic

exchanges of ideas, scientists, graduate students, and
personnel, but at the same time protect the intellectual
property rights of the participants.

reserved.
A Strategy for
Intellectual
Property Donation
• Innovation Philadelphia (IP) and Phoenix IP Ventures

(Phoenix IPV) have introduced a new program that will
enhance the rate and magnitude of science driven economic
development in the Greater Philadelphia Region.
• Under this model, IP and Phoenix IPV have established a not-
for-profit entity, which will accept intellectual property backed

assets from “Fortune 500 companies” as donations.

reserved.
A Strategy for
Intellectual
Property Donation
• In return for these donations, the donating companies have

the opportunity to receive tax credits for their philanthropic
efforts.
• Donated assets will be commercialized subsequently by IP

and by Phoenix IPV primarily through investments in existing
companies or the creation of new companies.
• The overall goal is to access worldwide science to increase

the overall economic growth in our Region.
reserved.
Technology
Transfer
• Science Center – Currently home to 25 companies.

– Have started over 350 companies.
• Drexel University – Currently home to 10 companies.
• University of Pennsylvania Center for Technology Transfer.
– Launched 14 companies in 2004.
– Set to launch 12 – 16 companies in 2005.

reserved.
Success Stories
• The Joseph Stokes, Jr. Research Institute at CHOP has licensed a rotavirus
vaccine (ROATEQ) to Merck. Phase III Clinical Trials were recently
completed and Merck has submitted the vaccine for licensure with product
launch anticipated in early 2006.
• Drexel has a portfolio of more than 350 patents in health sciences,
biomedical and biotechnology, materials, IT/electrical, chemistry, and
mechanical engineering.
• Over the last 14 years, Temple University's aggregate licensing income (net
of the 50% share going to inventors) exceeded operational and patenting
expenses by $1.5 million.

reserved.
Visit www.GreaterPhillyRoadMap.com
This is a Title:
Connecting the
This is a sub-head
Churning the
Greater
Innovation Economy
Philadelphia
Innovation Economy
A Roadmap for Regional Growth
Why was a Road Map needed?
• Greater Philadelphia was at an economic crossroads – and at risk of

losing our status as a top tier city.
• Many plans have been created. We don’t need another plan, rather
an umbrella strategy that acts as a multiplier to leverage disparate and
often competing economic activities into a comprehensive Regional effort.
– To develop a comprehensive understanding of Regional
opportunities as well as an understanding of scenarios in which
we can realistically leverage critical ‘ingredients’ for the Regional
innovation ‘recipe’.
– To challenge the perception that the Region merely used to be a
center of innovation, intellect, commerce, and culture.
• Now is the time to act. There is a unique convergence of
circumstances and timing that is creating a window of economic
opportunity for the entire Region over the next 5-10 years. If we don’t
act now the window will close – potentially forever.
• Government, industry, and academic leaders have come together to
implement the plan.

reserved.
The Targets of
Opportunity :
Churn Indicators
Five Prime Targets of Opportunity
Business
Transforming
Chemical The Creative Process,
Biomedical Nanotechnology
Industries Economy Technology
Research
and Software

reserved.
Road Map Status
Hot Team Status
Transforming Biomedical Research • Business Plan Completed
• Seed Capital Raised
• Clinical Trials Supersite and Translational
Research Center in development
Chemicals/Petrochemicals • Molecular Valley Business Plan Complete
• Raising Funding for Implementation
• Identifying industry partners and vital
technologies for commercialization
Nanotechnology • Mid-Atlantic Nanotechnology Alliance formed
• Sponsored largest-ever Annual Regional
Nanotechnology Conference from April 18-20,
2005
Creative Economy • Hosted Creative Economy (CE) Conference
and Workshop in beginning of 2005
• Current goals include creation of a CE
Convergence Center, CE Seed Capital Fund,
and CE Assets & Capabilities Mapping
• Planning Global Creative Economy Summit for
January 9-11, 2006
reserved.
Change is Inevitab
“It is not the strongest of species

that survive, nor the most
intelligent, but the ones most
responsive to change.”
-Charles Darwin

reserved.
Richard A. Bendis
President and CEO
2600 Centre Square West
1500 Market Street
Philadelphia, PA 19102
(215) 496-8110
rbendis@IPphila.com
www.IPphila.com
reserved.
Download this presentation at:
This is a Title:
This is a sub-head www.IPphila.com/presentations

reserved.

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The Importance of Networking in

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

• 1999 – John F. Street Elected Mayor of Philadelphia

© 2005 Innovation Philadelphia. All rights

Regionalism - learning to work to promote growth and development

© 2005 Innovation Philadelphia. All rights

Global & Regional

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

Communications networks have the ability to

© 2005 Innovation Philadelphia. All rights

The Greater Philadelphia Region has the

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

• The biotech and pharmaceutical industries are responsible

• 6 National Cancer Institute (NCI) designated

• MAGPI, the Regional Internet2 GigaPoP, has connected

• 40,000 biological scientists in the tri-state region

© 2005 Innovation Philadelphia. All rights

• 80% of the world’s pharmaceutical companies have

© 2005 Innovation Philadelphia. All rights

• WiFi cells will be mounted to

• WiMax bay stations will be

• Network will support public

© 2005 Innovation Philadelphia. All rights

• There is a need for universally-available and affordably priced

• Neighborhoods not served by high speed data access today

• Broadband availability allows local businesses to remain

• Smaller manufacturers need access to high-speed networks

• Information businesses can start and locate anywhere they

© 2005 Innovation Philadelphia. All rights

• Integrated into learning and communicated with the parents in the

• The Internet enables entrepreneurship, facilitates networking critical

• A July 2005 Technology Administration roundtable on “BioCenters

© 2005 Innovation Philadelphia. All rights

• Mayor incorporated Wireless Philadelphia as a 501(c)3

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

• A resource dedicated to helping advance the companies and

© 2005 Innovation Philadelphia. All rights

Located in the state's capital of Trenton, the Biotechnology

• To formulate and advocate public policy to elected officials and

© 2005 Innovation Philadelphia. All rights

• Offers a variety of support and assistance to

• Four Regional Technology-Based

© 2005 Innovation Philadelphia. All rights

• Founded as part of the $2 Billion plus initiative by PA to strengthen the

© 2005 Innovation Philadelphia. All rights

Real Estate SBU Commercialization Hub

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

© 2005 Innovation Philadelphia. All rights

Building Capacity For Learning and Innovation

• Space at research institutions to mentor students is very

• There are very few institutional arrangements

• There are issues related to patents, trade secrets, and

•The surveyed industry leaders also noted these same issues.

© 2005 Innovation Philadelphia. All rights

• Schools and firms report limited exchange of firms and ideas.

• Corporate and academic interactions are rare and often non-