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THE NATIONAL ACADEMIES
Advisers of the Nation on Science, Engineering, and
Medicine

The National Academy of Sciences is a private, nonprofit, self-

perpetuating society of distinguished scholars engaged in scientific
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and technology and to their use for the general welfare. Upon the
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is president of the National Academy of Sciences.

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under the charter of the National Academy of Sciences, as a parallel
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National Academy of Sciences the responsibility for advising the
federal government. The National Academy of Engineering also
sponsors engineering programs aimed at meeting national needs,
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National Academy of Engineering.

The Institute of Medicine was established in 1970 by the National

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The National Research Council was organized by the National
Academy of Sciences in 1916 to associate the broad community of
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Medicine. Dr. Ralph J. Cicerone and Dr. C. D. Mote, Jr., are chair and
vice chair, respectively, of the National Research Council.

www.national-academies.org
 PLANNING COMMITTEE FOR WORKSHOPS ON TRENDS IN
THE INNOVATION ECOSYSTEM

RICHARD N. ZARE [NAS] (chair), Marguerite Blake Wilbur

Professor, Stanford University
PAUL CITRON [NAE], (Retired, Vice President, Technology Policy
and Academic Relations, Medtronic, Inc.)
GORDON R. ENGLAND [NAE], President, E6 Partners LLC
C. D. MOTE, JR. [NAE] (ex-officio), President, National Academy of
Engineering
WILLIAM J. SPENCER [NAE], Chairman Emeritus, SEMATECH

Staff
KEVIN FINNERAN, Director
GURU MADHAVAN, Program Officer
MARIA LUND DAHLBERG, Research Associate and Rapporteur
MARION RAMSEY, Administrative Associate

Consultant
STEVE OLSON, Consultant Writer and Rapporteur
 COMMITTEE ON SCIENCE, ENGINEERING, AND PUBLIC
POLICY

RICHARD N. ZARE [NAS] (chair), Marguerite Blake Wilbur

Professor, Stanford University
LINDA M. ABRIOLA [NAE], Dean of Engineering, Tufts University
SUSAN ATHEY [NAS], Professor, Graduate School of Business,
Stanford University
MOSES H.W. CHAN [NAS], Evan Pugh Professor of Physics,
Pennsylvania State University
RALPH J. CICERONE [NAS] (ex-officio), President, National
Academy of Sciences
PAUL CITRON [NAE], Vice President (Retired), Technology Policy
and Academic Relations, Medtronic, Inc.
DAVID DANIEL [NAE], President, The University of Texas at Dallas
GORDON R. ENGLAND [NAE], President, E6 Partners LLC
HARVEY V. FINEBERG [IOM] (ex-officio), President, Institute of
Medicine
DIANE E. GRIFFIN [IOM, NAS], Alfred and Jill Sommer Professor,
Chair in Molecular Microbiology and Immunology, Johns Hopkins
Bloomberg School of Public Health
C. D. MOTE, JR., [NAE] (ex-officio), President, National Academy of
Engineering
PERCY A. PIERRE [NAE], Vice President and Professor Emeritus,
Michigan State University
E. ALBERT REECE [IOM], Vice President for Medical Affairs, Bowers
Distinguished Professor and Dean, School of Medicine, University
of Maryland Baltimore
MICHAEL S. TURNER [NAS], Rauner Distinguished Service
Professor, Kavli Institute for Cosmological Physics, The University
of Chicago
NANCY S. WEXLER [IOM], Higgins Professor of Neuropsychology,
Colleges of Physicians and Surgeons, Columbia University
PETER WOLYNES [NAS], D.R. Bullard-Welch Foundation Professor
of Chemistry, Center for Theoretical Biological Physics-BCR, Rice
 University

Staff
KEVIN FINNERAN, Director
TOM ARRISON, Senior Program Officer
GURU MADHAVAN, Program Officer
NEERAJ GORKHALY, Research Associate
MARIA LUND DAHLBERG, Research Associate
RICHARD-DUANE CHAMBERS, Christine Mirzayan Science &
Technology Policy Graduate Fellow (until December 2012)
MARION RAMSEY, Administrative Associate
 Reviewer Acknowledgments

This report has been reviewed in draft form by individuals chosen

for their diverse perspectives and technical expertise, in accordance
with procedures approved by the National Academies’ Report Review
Committee. The purpose of this independent review is to provide
candid and critical comments that will assist the institution in making
its published report as sound as possible and to ensure that the
report meets institutional standards for quality and objectivity. The
review comments and draft manuscript remain confidential to
protect the integrity of the process.
We wish to thank the following individuals for their review of this
report: Michael G. Borrus, X/Seed Capital Management; Brian
Darmody, University of Maryland; James D. Plummer, Stanford
University; Leon Sandler, Massachusetts Institute of Technology;
William J. Spencer, SEMATECH (retired); and Eli Yablonovitch,
University of California, Berkeley.
Although the reviewers listed above have provided many
constructive comments and suggestions, they were not asked to
endorse the content of the report, nor did they see the final draft
before its release. Responsibility for the final content of this report
rests entirely with the rapporteurs and the institution.
 Contents

1 INTRODUCTION
2 THE ELEMENTS OF SUCCESS
3 DIFFERENCES AMONG TECHNOLOGIES
4 THE ROLES OF UNIVERSITIES
5 THE ROLE OF RESEARCH PARKS
6 PUBLIC POLICIES TO SUPPORT INNOVATION

APPENDIXES
A WORKSHOP AGENDAS
B SPEAKERS AT THE WORKSHOPS
C SPEAKERS BIOGRAPHIES
 1

Introduction

Innovation has long been a contributor to American economic and

societal progress, evident in a more than sevenfold increase in per
capita income since the 19th century, an additional three decades of
average lifespan, a revolution in the way we communicate and share
information, and the country’s position as the strongest military
power in the world.1 Without its historical leadership in innovation,
the United States would be a very different country than it is today.
Yet agreement on what innovation entails or how it can be
encouraged and facilitated is hard to find. Innovation often involves
scientific and engineering research, and both universities and
industry have essential roles to play. What happens at the
intersection of these activities and institutions determines how
productive the innovation ecosystem will be. But this system is in a
constant state of evolution, driven by such forces as the variable
pace of science and engineering, unexpected interactions among
disciplines, restructuring of industry in a global economy, and the
changing role of universities. If the innovation ecosystem is to thrive,
it is essential to understand and adapt to these powerful external
forces.
The Committee on Science, Engineering, and Public Policy
(COSEPUP) of the National Academy of Sciences, National Academy
of Engineering, and Institute of Medicine decided to host a pair of
workshops entitled Trends in the Innovation Ecosystem: Can Past
Successes Help Inform Future Strategies? to discuss the challenges
involved in innovation pathways. Both workshops focused on the
interactions between research universities and industry and the
concept of innovation as a “culture” as opposed to an operational
method. With the intent of stimulating conversation both during and
after the workshops, the planning committee brought together
representatives of many of the facets of university-industry interface.
Recognizing that the views expressed were not exhaustive, the goal
was to gain a better understanding of what key factors contributed
to successful innovations in the past, how today’s environment might
necessitate changes in strategy, and what changes are likely to occur
in the future in the context of a global innovation ecosystem.
On February 26, 2013, the first workshop brought together the
members of COSEPUP and nine distinguished speakers from
industry, academia, and finance at PARC at Xerox in Palo Alto, CA, to
discuss obstacles to university-based innovation, and ways of
overcoming those obstacles, focusing on the university side of the
interface with industry in America. On May 20, 2013, COSEPUP held
a second workshop in Washington, DC, which focused solely on
research parks and was composed of two panels of experts on the
structure and function of research parks.2
The speakers repeatedly highlighted the concept of culture as key
to all aspects of innovation.3 Different sectors and technologies have
variations in culture that influence everything from how patents are
valued to the time it takes to develop a market-ready product. The
culture of universities and the role they play can dramatically
influence the innovation ecosystem of a region. At the meeting in
California, many of the academic participants actually “straddled” the
two worlds of academia and industry, and discussed the difficulties
they face in trying to start new companies while maintaining their
academic careers. Research parks must be carefully tuned to the
cultural needs of the people and industries using their resources to
be successful.
But many observers have expressed concern that innovation in the
United States is faltering as many centralized industrial research
laboratories have disappeared and as the manufacturing sector has
contracted. At the conclusion of the two workshops, questions still
remained as to how best to move forward (see Box 1-1).
 Box 1-1
Questions to Answer
• Is innovation getting harder?
• Is there a need to reexamine the intellectual property
arrangement for basic research results?
• How should the national benefits of private sector
enterprises be defined?
• How can the benefits of innovation in a region or country be
retained?
• Is it feasible or desirable for the United States to mirror other
countries’ policies on subsidizing industries through direct
financial support or regulatory collaboration?
• How will new immigration policies affect high-skill labor
markets and the innovation ecosystem?
• What is the appropriate role of federal and state regulations
and funding?

This summary of the presentations and discussions from the

workshops organizes the discussion thematically. Chapter 2
examines the general principles that underlie university-based
innovation, including the importance of people, culture, and
experience as discussed during the February workshop. Chapter 3
considers the differences among industrial sectors and among
technologies to explore the factors that contribute to successful
innovation. Chapter 4 looks specifically at the roles of universities in
preparing students, transferring technology to industry, and enabling
faculty members to engage in entrepreneurial activities. Chapter 5
discusses the role of research parks, the variation that exists in their
structures, and the importance of localization and adaptability to
parks specifically and innovation in general. Chapter 6 asks how
public policies in such areas as regulation, taxation, research
funding, and immigration could reinvigorate university-based
innovation in the United States.
 The report has been prepared by the workshop rapporteurs as a
factual summary of what occurred at the workshops. The planning
committee’s role was limited to planning and convening the
workshops. The views contained in the report are those of individual
workshop participants and do not necessarily represent the views of
all workshop participants, the planning committee, or the National
Research Council.

___________________
1 Rising Above the Gathering Storm: Energizing and Employing America for a Brighter
Future (Washington, DC: The National Academies Press, 2006).
2 A list of the speakers from the workshops can be found in Appendix B.
3 According to the Merriam-Webster dictionary culture is “the integrated pattern of
human knowledge, belief, and behavior that depends upon the capacity for learning and
transmitting knowledge to succeeding generations.”
 2

The Elements of Success

Many things must come together for innovation to succeed. During

the two workshops hosted by the Committee on Science,
Engineering, and Public Policy (COSEPUP), participants identified a
few general themes multiple times (see Box 2-1).

Box 2-1
Major Themes of Workshop Speakers
• The knowledge and experience of individuals are the primary
drivers of innovation.
• Science and technology expertise alone is not enough to
ensure innovation; the skills of finance, business
development, production, and management are useful.
• Innovation is stimulated by the movement and interaction of
individuals from different sectors.
• The culture of a region and its institutions shapes the nature
of these interactions.
• Openness to new ideas and a tolerance for failure are
important.
• Culture is not easily changed, and creating clones of Silicon
Valley might be the wrong strategy.
• Innovation is a contact sport and might be facilitated by a
concentration of talent that increases the rate of interaction.
• General principles do not explain everything. Significant
differences exist among institutions, regions, industries, and
sectors.
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