2007 Innovation Plan  »Executive Summary page 2 The Oregon Innovation Council In 2005, the Governor and the Oregon Legislature, with the help of innovation leaders from across the state, created the Oregon Innovation Council (Oregon InC), challenging this new partnership to articulate an innovation-based strategy to enhance Oregon's global competitiveness—and then make it happen. During its inaugural year (2006), 42 top executives, university provosts, venture capitalists and legislators gave hundreds of hours of time and expertise to craft a strategy intended to help the state: Raise wages Create new high-paying jobs Strengthen research efforts Increase venture, seed, and private capital available to entrepreneurs Increase exports of goods and services to other states and nations Sustain jobs in key established industry sectors (agriculture, forestry, etc.) and increase the number of well-paying jobs in rural areas Make Oregon a recognized global leader in new (emerging) sectors including nanotechnology, alternative energy, and advanced bio-based products Make innovation the job of every Oregonian The council adopted a broad definition of innovation, not one specifically rooted in the application of technology. It also recognized that the innovation agenda is as much a small business imperative as a big business one. And, since innovation can enhance businesses across industries and throughout supply-chains, the council envisioned the innovation agenda as a potential bridge between Oregon's urban and rural communities. Recognizing that state government can invest in only a limited number of initiatives, the council agreed to focus investment in areas that would leverage additional assets or address strategic gaps, rather than support a range of disparate activities. While the council values experimentation—and understands its role in innovation—members felt that state investments should be chiefly concentrated in high-leverage projects and initiatives. As a result, proposed investments reflect strong partnerships characterized by multiple investors who have all committed to advancing a shared set of interests. In some cases, proposals focus on legal or regulatory changes that do not reflect any direct costs at all. This approach supports experimentation that is less about "what to do" and more about "how to do it." The council also recognizes that innovation can happen in any firm, in any industry, anywhere—indeed inspiring such innovation all over Oregon is the council's central purpose. However, not all innovation is of the same value to the state. Because the council is investing public resources, members felt strongly that high-return projects should command priority. Balance was also a priority for council members. Innovation carries risk. Therefore members felt that a portfolio approach to investing state resources would be an effective way to mitigate risk while pushing the state's agenda forward. This approach balances investments in emerging industries with those in existing industries, investments in process with those supporting disruptive innovation, and investments in short-term returns with those in long-term capacity-building. Finally, a point of universal agreement among council members was the need to capitalize on the state's unique assets. Because so many council members are drivers of innovation within their own organizations and industries, they understand what it means to build on core strengths—hard-to-replicate competitive advantages—and insisted this be the state's approach. As a result, proposals rooted in natural resources like ocean currents and fertile lands, intellectual capital including the Oregon University System and the Pacific Northwest National Laboratory, and social capital such as the Oregon Entrepreneurs Forum and nanotechnology industry networks, feature prominently among the plan's recommended investments. to page 3