61. Ibid.
62. Statistics for medical technology in Europe are by Eucomed, the association of the European medical devices industries (www.eucomed.be/about-us). See www.eucomed.org/uploads/Modules/Publications/the_emti_in_fig_broch_12 _pages_v09_pbp.pdf.
Chapter 5: A Smarter World
1. Pilita Clark, “Global Carbon Emissions Stall in 2014,” Financial Times, March 12, 2015.
2. Shale gas—which can be found in abundance in the United States, Mexico, Argentina, Russia, China, and many other countries—has dramatically changed the energy picture because both oil and gas have become abundant rather than scarce and thus have dropped sharply in price, defying previous expectations. Environmental groups and others that oppose shale gas in the United States have cited heavy water use, groundwater pollution, methane emissions, the risk of minor earthquakes caused by hydraulic drilling, and the dangers of transporting shale oil by train, made necessary because of the lack of adequate pipelines. In Europe, political opposition has been far more intense than the pushback in the United States. Opposition has not, however, had much effect on drilling. The increase in shale oil has made the United States far less dependent on foreign oil and gas, and power companies have been able to move away from coal, which is a much dirtier source of carbon-based fuel. Still, shale gas is viewed by many as a “bridge” source of energy, its production justifiable only until alternative sources such as solar become less expensive and more practical for widespread use.
3. “Tesla’s New Product Is a Battery for Your Home,” CNN Money, May 1, 2015.
4. Interview with Prescott Logan and company management on August 22, 2013.
5. Curt Woodward, “After Five Years and $50 Million, 24M Unveils New Design for Lithium-Ion Batteries,” Boston Globe (BetaBoston), July 22, 2015.
6. MIT News, Fortune.com, Navigant Research, 24M, Quartz.com. For Venkat Viswanathan’s quote, see David Chandler, “New Manufacturing Approach Slices Lithium-Ion Battery Costs in Half,” MIT News, June 23, 2015. Also Katie Fehrenbacher, “This Start-up Is Looking to Revolutionize Lithium-Ion Batteries,” Fortune magazine, June 22, 2015.
7. See www.shell.com/global/future-energy/inside-energy/inside-energy-stories /could-sun-charged-batteries-power-our-homes.
8. See www.edison-net.dk.
9. On October 14, 2015, Tesla provided a software update to Tesla car owners that was a significant step toward the dream of a self-driving car. It is quite an amazing experience for the driver—after activating the advanced cruise control with a simple double click—to sit in the car on the highway without touching the steering wheel and watch how the car comfortably keeps its lane, smoothly changes lanes to pass other cars, slows and speeds up with the traffic, stops gradually as the car in front stops, reacts fast in an emergency, and even finds a parking spot. The driver must still take the wheel when changing to a different road or when road conditions are poor. It is virtually certain that other carmakers will follow soon.
10. See www.darpa.mil.
11. New York Times, interview with Christopher Urmson, May 27, 2014.
12. See www.bloomberg.com.
13. On the Apple Car, see www.MacRumors.com and Daiske Wakabayashi, “Apple Targets Electric-Car Shipping Date for 2019,” Wall Street Journal, September 21, 2015.
14. See www.micreos.com website and Gina Kolata, “In Good Health? Thank You 100 Trillion Bacteria,” New York Times (International), June 13, 2012; also “Rising to Meet the Infectious Disease Challenge,” Pharmafocus (July–August 2015), which cites ESCMID president Murat Akova as saying that “the rapid increase in antimicrobial resistance in Europe and the world is jeopardizing modern health care.”
15. See www.themato.nl/gesloten-kas.
16. See www.kubo.nl/en/productconcepten/artikel/ultra-clima-greenhouse-en.
17. Tim Linden, “Houweling’s Continues to Pioneer Sustainability Efforts,” Produce News, August 11, 2015.
18. See www.newscenter.philips.com/main/standard/news/press/2014/2014 0509-philips-and-green-sense-farms-usher-in-new-era-of-indoor-farming.wpd#.VClnuvl_tS0.
19. See www.usa.philips.com/a-w/government/articles-and-solutions/lighting /increasing-food-security-and-reducing-carbon-emissions.html.
20. See www.delaval.com, and www.lely.com.
21. In 2001, Emmo Meijer was the first CTO of DSM, the Dutch health nutrition and materials company. In 2005, he switched to Unilever, the British-Dutch food and personal care company. In 2011, he joined Friesland Campina; he retired mid-2014.
22. Interview with Emmo Meijer, August 2012, Amersfoort; all other Meijer quotes in this chapter are from this interview.
23. See strp.nl/nl.
24. See www.tekes.fi/en/-the Finish Agency that finances innovation.
25. See www.pt-it.pt-dlr.de/de/3069.php.
Chapter 6: Awakening the Beauties
1. “Economists Are Asked by Brussels to Hammer Together a New ‘Innovation’ Model,” Het Financieele Dagblad, August 9, 2015.
2. Robert Solow, “We’d Better Watch Out,” New York Times Book Review, July 12, 1987.
3. Cited in an interview on June 26, 2013, with Alexandra Kwit, a Johns Hopkins graduate student working with high-throughput screening robots as part of a joint NIH-Johns Hopkins project. Ncats.nih.gov is the website of the National Institutes of Health, National Center for Advanced Translational Sciences (NCATS). Francis Collins helped showcase NCATS’s high-throughput screening facility with its multi-armed robots that can perform tests of potential drugs in one week—tests that would take a scientist twelve years to do manually.
4. Both speaking at the conference “The Future of Work in the Age of the Machine,” held at the National Press Club, Washington, DC, the Hamilton Project and the Brookings Institution, February 19, 2015.
5. Stavey Vanek Smith, “When It Comes to Buying Decisions, Why Feelings Come First,” Planet Money, National Public Radio, April 17, 2015.
6. Jake Rocheleau, “The 20 Top Coworking Spaces in the United States,” Hongkiat, at www.hongkiat.com/blog/top-coworking-spaces-usa.
7. Bruce Katz and Julie Wagner, “The Rise of Innovation Districts,” Brookings Institution, June 2014.
8. Anthony Carnevale, speech at New Futures, Washington, DC, October 7, 2014, based on his Georgetown University study, “Recovery: Job Growth and Education Requirements Through 2020,” February 2014.
9. Deloitte and the Manufacturing Institute, “The Skills Gap in US Manufacturing,” October 17, 2011, cited in “Future of the Manufacturing Workforce Report,” Manpower.
10. William C. Symonds, Robert Schwartz, and Ronald F. Ferguson, “Pathways to Prosperity: Meeting the Challenge of Preparing Young Americans for the Twenty-First Century,” Pathways to Prosperity Project, Harvard University Graduate School of Education, 2011.
11. Conference at the Brookings Institution on “Skills and Industry: A New American Model,” May 22, 2014, Washington, DC.
12. Visit to TEC-SMART and interview with Penny Hill on August 21, 2014.
13. All David Larkin quotes in this chapter are from a telephone interview on August 25, 2014.
14. Conference at the Brookings Institution on “Skills and Industry” and discussion afterward, May 22, 2014.
15. Interview with Dr. Jan Stefan Roell, CEO of Zwick Roell, at the factory in Ulm, September 9, 2013.
16. Interview with Engelbert Westkämper in Stuttgart, September 9, 2013.
17. National Education Statistics for 2013.
18. Telephone interview with Martin Frädrich on September 24, 2013.
19. The Story of Google is told by David Hart, “On the Origins of Google,” August 17, 2004, National Science Foundation, Where Discoveries Begin, at www.nsf.gov/discoveries/disc_summ.
20. Cited in Robert D. Atkinson and Stephen J. Ezell, Innovation Economics: The Race for Global Advantage (New Haven: Yale University Press, 2012). See also EY Global, “Venture Capital Insights and Trends 2014.”
21. National Science Foundation website, www.nsf.gov/statistics/ns
b0803.
22. National Science Foundation, Science and Engineering Indicators 2014 (for the year 2011), Table 4-14 and Table 4-6. Based on PPP (purchasing power parity) data for 2011 from the National Science Foundation, Science and Engineering Indicators 2014. Only France spends more of its total R&D on basic research (25 percent), compared with 17–18 percent for the United States and Korea, 12 percent for Japan, and a much lower 5 percent for China.
23. See www.systemsX.ch.
24. National Science Foundation, Science and Engineering Indicators 2014 (for the year 2011). The largest contributor to applied research funding in 2011 was business (53 percent), followed by the federal government (37 percent), nonprofit organizations (5 percent), academia (4 percent), and nonfederal governments (1 percent).
25. Ibid.
26. Battelle Memorial Institute, 2014 Global R&D Funding Forecast. Total spending on R&D of $465 billion (est.) in 2014 was far more than the European Union’s $313 billion ($188 billion for Germany, France, and the UK), China’s $284 billion, Japan’s $165 billion, or South Korea’s $63 billion. China aspires to be a knowledge economy rather than just a manufacturing base and wants to reach that goal by 2020, with plans to equal R&D spending of the United States by 2022 at $600 billion. China has already surpassed R&D spending of Japan, and its patent applications and scientific publications have grown more rapidly than those in the United States and Europe. However, just as Chinese economic growth has slowed from double digits, the growth of R&D investment has roughly halved from 24 percent in 2007.
27. According to Ernst & Young Global’s Venture Capital Insights and Trends 2014, in 2013 venture capital raised $33 billion in the United States, $7.4 billion in Europe, and $3.5 billion in China, providing on average $4 million to each company in the United States, $2 million in Europe, and $7 million in China. In the same year, there were 74 VC-backed IPOs in the United States, 15 in Europe, and 15 in China, raising $8.2 billion, $0.6 billion, and $2 billion, respectively.
28. Interview with Alec Rauschenbusch at his office in Stuttgart on September 10, 2013.
29. Ernst & Young Global, Venture Capital Insights and Trends 2014.
30. Jeffrey Bussgang, Mastering the VC Game (Portfolio, 2010).
31. Ibid.
32. VC firms also briefly flourished in places like Minneapolis and the Research Triangle in North Carolina but pulled back their horns after the dot-com bust and now operate mostly from the West and East Coasts.
33. According to the National Venture Capital Association, venture capital firms (including corporate venture capital) invested $615 billion in 78,000 companies between 1995 and 2014.
34. See Matt Egan, “In-Q-Tel: A Glimpse Inside the CIA’s Venture-Capital Arm,” FoxBusiness, June 14, 2013.
35. Named after “Q,” the MI6 agent who develops all of the high-tech gadgets in the James Bond films.
36. Brian Dunbar, “NASA Forms Partnership with Red Planet Capital, Inc.,” NASA, September 20, 2006, at www.nasa.gov/home/hqnews/2006/sep /HQ_06317_red_capital.html.
37. This Frey quote and others in the chapter come from an interview with Kip Frey in Durham, North Carolina, on April 22, 2014. He retired in 2014. During the 1990s, Frey ran three start-up companies—Ventana Communications Group, Accipiter, and OpenSite Communications—that were each acquired at large multiples of the capital invested in them. He is also an adjunct professor at the Sanford School of Public Policy at Duke University. See “Kip Allen Frey,” Wikipedia, at en.wikipedia.org/wiki/Kip_Allen_Frey.
38. Medtronic, Annual Report 2013.
39. Interview during lunch with Norman Dann at Marriott Hotel in Minneapolis, Minnesota, on July 31, 2013, and follow-up phone call on September 2, 2014.
40. Notable examples include Dave McClure, an early investor in PayPal and Facebook, and Marc Andreessen, who founded Netscape.
41. Typically, VC firms also insist on a clear exit strategy within seven years, as their accountability to their investors means that they often avoid early stage investments because of their risk, limited returns, and time consumption.
42. “Angel investor,” Wikipedia at en.wikipedia.org/wiki/Angel_investor.
43. “Statistics Compendium,” European Trade Association for Business Angels, Seed Funds, and other Early Stage Market Players, 2014.
44. Ernst & Young Global, Venture Capital Insights and Trends 2014.
45. “Ten Crowdfunding Success Stories to Love,” Entrepreneur, March 18, 2014.
46. “Economic Impact and Technological Progress of NASA Research and Development Expenditures: Volume 1: Executive Report,” Midwest Research Institute, 1988.
47. The Tauri Group, “NASA Socio-Economic Impacts,” 2013, at www.nasa.gov/sites/default/files/files/SEINSI.pdf.
Conclusion: We Meet at the End
1. Statistics from National Institute of Food and Agriculture, US Department of Agriculture.
2. Marc Levinson, “Job Creation in the Manufacturing Revival,” Congressional Research Service report, June 19, 2013.
3. Erik Brynjolfsson and Andrew McAfee, Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy (Lexington, MA: Digital Frontier Press, 2011).
4. Levinson, “Job Creation in the Manufacturing Revival.”
5. According to robotics analyst Dan Kara, there are only 800,000 manual labor jobs in manufacturing involved in simple, nonskilled tasks with light payloads. See Dan Kara, “Rethink Robotics: Unpacked,” Robotics Business Review, October 1, 2012.
6. Levinson, “Job Creation in the Manufacturing Revival.”
7. It will, however, be threatening to millions of basic manufacturing jobs in emerging economies.
8. Heritage Foundation and Bureau of Labor Statistics. Cited in James Sherk, “Not Looking for Work: Why Labor Force Participation Has Fallen During the Recovery,” September 4, 2014, at www.heritage.org/research/reports/2014/09 /not-looking-for-work-why-labor-force-participation-has-fallen-during-the-recovery. The labor force participation has come down from 66 percent in 2007 to just below 63 percent.
9. Enrico Moretti, The New Geography of Jobs (New York: Mariner Books, 2012).
10. Vladimir Ilyich Lenin, August 11, 1918.
11. “DNA-Editing Leap Brings Call for Ban,” New York Times (International), March 21–22, 2015.
INDEX
A. Schulman, 103
academic institutions
brainbelts centered around, 6, 8, 9 (table)–14 (table), 24–25, 27–28, 54, 125–126
collaboration with commercial enterprises, 6, 31–37, 48, 54, 79, 101, 110, 111–112, 116, 118, 125–126, 139–140, 144–145, 147–150, 156, 159, 169–170, 248
as connector, 99–102
government grants and legislation for, 33, 156
multi- and interdisciplinary research of, 37, 160, 164–165, 236
adaptation, 40–41, 168, 182–183
Additive Industries, xvi–xvii
AddLab, xvii
Advanced Mask Technology Center (AMTC), 73
aerospace industry, 31, 97, 100, 102–103, 123, 127–128
agriculture, smart, 21
brainsharing for, 189–191
for city populations, 196–198
greenhouse technology in, 191–193
in Netherlands, 190–191, 194–195
robotics and smartfactories in, 194–195
Airbus, xvii
Akron, Ohio, 5, 7, 9 (table), 16 (fig.), 217
community in, 24
connectors in, 94, 96, 99–100
government funding in, 102
polymer focus in, 53, 96–98, 101, 102, 105–106
rustbelt to brainbelt status in, 93–96, 99–100
start-up companies in, 102–103
Akron Model, 99–102, 103, 105, 210
Akron Polymer Systems, 102
Albany, New York, x, 5, 7, 9 (table), 15 (fig.)
chips and sensors innovation in, 53, 55, 56
, 60–65, 105
connector role in, 57, 58–64
smart manufacturing in, 50, 65–68
talent magnet of brainbelt in, 64–65
See also SUNY Poly’s Nanotech Megaplex
Allegheny County Community College, xxii
Amazon, 206, 220
AMD, 72
America Makes, 47–48
American Tobacco Campus, 109, 110 (photo), 111 (photo)
AMTC. See Advanced Mask Technology Center
angel investors, 63, 151, 217, 241, 244–245
Annunziata, Marco, 49
anti-trust umbrella, 210
Apple, 119, 167, 172, 199
automobile reinvention and, 184, 188
innovation leadership of, 5, 206
apprenticeships. See work-study model
ASML, 82, 84–86, 87, 90
Austin, Texas, 8, 9 (table)
Australia, xiv–xv
automobiles. See vehicles and transportation
Bains, Navdeep, xiii
Bakken, Earl, 132, 138–139
Batesville, Mississippi, 6, 17–18
battery storage technology, 180–182
Baxter, 44–45, 45 (photo)
Bayh-Dole Act, 33
Belgium, xvi
Bess Technologies, 63
Biedenkopf, Kurt, 70–71, 161
big data, 199–200
Biogen, 31–32, 156
BioSaxony, 136, 161, 164, 166
bioscience, 9 (table)–14 (table)
biotechnology, 65, 167
in Cambridge, 31–32, 176
collaboration in, 143–144
innovations and brainsharing in, 133–134
Bio-Technopark Schlieren-Zurich, 157–159
BlackBerry, xiv
BMW, 128, 184, 185
BOM. See Brabantse Ontwikkelings Maatschappij
Bona, Gian-Luca, 155 (photo)
Bösenberg, Frank, 75–76
Brabantse Ontwikkelings Maatschappij (BOM), 89
brainbelts, 15 (fig.), 16 (fig.)
academic institutions central to, 6, 8, 9 (table)–14 (table), 24–25, 27–28, 54, 125–126
characteristics shared by, 23–30, 205–208, 253
corporations as key players in, 28–29, 113–114, 125
discipline focus in, 26, 35, 53
The Smartest Places on Earth Page 26