Presentation on theme: "Ohio Third Frontier: Targeting Growth Opportunities for the Next 3 to 5 Years Battelle Technology Partnership Practice August 29, 2011."— Presentation transcript:
1Ohio Third Frontier: Targeting Growth Opportunities for the Next 3 to 5 Years Battelle Technology Partnership PracticeAugust 29, 2011
2Project Goal and FocusIdentify Ohio’s changing economy and technology industry focus areas to enable key stakeholders to understand the opportunities and how best to seize them.Emphasize industry growth opportunities in technology development over the next 3 to 5 years.
3Overview of Project Steps Assess Changing Ohio Economy and Identify Leading Industry Sectors for Tech-Based GrowthIdentify from Recent Detailed Industry and Technology Innovation Trends Likely Focus Areas for Growth OpportunitiesIntegrate Guidance from Industry Forum Discussions and Validate Market Opportunities
4Differentiation, Specialization and Global Leadership for Ohio Methodology for Identifying Growth Opportunities: Line of Sight AnalysisWhere the Puck is TodayWhere the Puck is GoingGrowth OpportunitiesFocus Areas of Growth in Ohio’s Technology Industry Sectors and Technology Innovation DriversGrowth Prospects Within Technology Industry Sectors and Likely Niches for OhioDifferentiation, Specialization and Global Leadership for Ohio
5Details for Line of Sight Analysis Where the Puck is TodayWhere the Puck is GoingDetailed industry-level analysis of leading industriesCurrent industry strengthEmerging industry strengthSpecialized industry strengthTechnology innovation focus areas in leading technology industry sectors based on recent activities in:Patents by Ohio inventorsVenture capital funding and SBIR awardsCompany presence in specific technology product marketsScholarly excellence in publication fieldsTrends in university research fundingHeld a series of industry forums for the leading technology industry sectorsKey questions posed were:What are Ohio’s key selling points?What are the key market and technology drivers?In what specific technology development niches is Ohio well positioned for industry growth in the next 3 to 5 years?What are the key strategic development directions that Ohio must address?Integrated the intelligence gathered and validated to identify specific technology development nichesReviewed market research studies
6Overview of Project Steps: Highlights from Assessments Step 1: AssessStep 2: IdentifyStep 3: ValidateRESULTSRESULTSRESULTSLeading Industry SectorsMaterialsAerospaceBiomedicalEnergyInformation TechnologyInstruments and ControlsPotential Focus AreasAdvanced Polymer MaterialsComposites and CeramicsSpecialty Metals and AlloysUnmanned SystemsSensorsAdvanced MaterialsPropulsion Power ManagementHuman EffectivenessMedical ImagingMolecular and Other In-Vitro DiagnosticsAdvanced Surgical Instruments and EquipmentImplant Medical DevicesContract Research and Manufacturing Resource ServicesDrug Delivery and DevelopmentLeading and Emerging AreasAdvanced MaterialsBusiness Software and Enterprise ComputingEnergy StorageFuel CellsHealth Information TechnologyMedical TechnologyPropulsion Power ManagementSensing and Automation TechnologiesSituational Awareness and Surveillance SystemsSolar PhotovoltaicsRegenerative MedicineHealth Informatics and LogisticsSolar PhotovoltaicsWind EnergySmart GridsBiofuels and Biobased EnergyFuel CellsEnergy Storage/BatteriesBusiness Software and Enterprise ComputingTest and MeasurementSensorsAutomation/RoboticsElectronics/Embedded Systems
7Advanced Materials GROWTH OPPORTUNITY FOCUS AREA: ADVANCED MATERIALS WHAT IS IT?Unconventional materials that outperform conventional materials allowing them to play a large role in product development. Typically this class of materials refers to sophisticated technologies in metals & alloys, ceramics, polymers and composites. Advanced materials are focused on enabling the creation of lighter, cheaper, smaller and higher quality products across many end-user markets, and are widely used in biomedical, aerospace, transportation, and advanced energy market applications.OUTLOOKGlobal consumption of nanocomposites to increase at a CAGR of 27% to $1.4B by 2014Advanced ceramics to grow from $9.1B in 2009 to $12.2B by 2014Composite materials market was valued at $17.7B in 2010 and will reach $27.4B by 2015Carbon fibers and nanotubes will grow by 13% annually through to reach $2.3BThe metal coatings, engraving and heat treating industry has annual revenue estimated at $22BConductive and electronic polymers to grow 3% annually between and 2014HOW IT BUILDS ON OHIO STRENGHTSResearch Centers and InstitutesStrong presence in academic publicationsSignificant corporate R&D operationsRobust patent activityMARKETS THAT OHIO CAN SERVEAdvanced EnergyAerospace & DefenseBiomedicalBuilding & Construction ProductsTransportation
8Business Software & Enterprise Computing GROWTH OPPORTUNITY FOCUS AREA: BUSINESS SOFTWARE & ENTERPRISE COMPUTINGWHAT IS IT?Business software and enterprise computing are technologies that enable organizations to reduce costs and increase productivity and as a result achieve greater profitability. These technologies have become ubiquitous among industries and are constantly evolving to adapt in order to maintain relevance in a rapidly evolving global economy.OUTLOOKNorth American business software market will grow at a CAGR of 7.7% through 2015 to reach $165BGlobal enterprise software market increased 8.5% in 2010 reaching $245BEnterprise cloud-based services will grow at a CAGR of 24% increasing from $12B in 2010 to nearly $36B inBusiness Intelligence (BI) software is projected to grow nearly 10% in to reach $10.8BGlobal e-commerce (including travel and auto purchases) to grow 13.5% annually to reach $1.4T in 2015Business process management (BPM) market will grow at 13.3% CAGR to reach $5.5B by 2017HOW IT BUILDS ON OHIO STRENGHTSStrong employment growth in recent yearsSoftware manufacturing industry presenceRich talent baseRobust VC activitySubstantial patent activityMARKETS THAT OHIO CAN SERVEDiversified industry focusOpen source platforms to advance customized, modular applicationsCloud computing-enabled software as a service for delivering on- demand software
9Energy Storage GROWTH OPPORTUNITY FOCUS AREA: ENERGY STORAGE WHAT IS IT?Energy storage is a term used to describe various types of technologies that store energy in order to allow us to use it at a later time. Energy storage technologies include utility battery storage, flywheel storage, superconducting magnetic energy storage, compressed air energy storage, pumped hydropower, and super-capacitors. Batteries are an important solution to energy storage needs. Batteries store energy in the form of chemical energy; when connected in a circuit the battery can produce electricity.OUTLOOKU.S. battery market to grow from $9.6B in 2011 to nearly $12B in 2016Still an emerging market, energy harvest technology is expected to grow from $13.75M in 2011to $4.4BThin-film batteries may increase from $90M in 2010 to $600M in with average annual growth rates ranging from 38%-68%Rechargeable batteries account for 56% of the battery market and could reach $16.4B by 2015HOW IT BUILDS ON OHIO STRENGHTSLarge share of U.S. battery and energy storage employment and establishmentsStrong industry presenceSignificant share of U.S. peer- reviewed publicationsMARKETS THAT OHIO CAN SERVEAutomotive
10Fuel Cells GROWTH OPPORTUNITY FOCUS AREA: FUEL CELLS WHAT IS IT? Similar to battery technology, fuel cells convert chemical energy into electrical energy through electrochemical reaction. Fuel cells differ from batteries though in that the fuel feeding the electrochemical reaction is supplied outside of the cell. Many different fuels can be used to generate energy including hydrogen, methanol, biogas, natural gas and hydrocarbons.OUTLOOKThe total fuel cell market (consisting of portable, stationary, and transport) is still emerging, but was less than $500M in 2009Growth will primarily come from stationary applications – accounting for 50% or more of all shipments currently and reaching $9.5B by 2017Portable applications will also see dramatic growth reaching $2.8B byThe big “wild card” in the outlook for fuel cells is whether the automotive industry goal of 2015 for large scale roll-out of commercial fuel cell vehicles can be reachedHOW IT BUILDS ON OHIO STRENGHTSLarge share of U.S. establishments and employmentStrong industry presenceWide base of suppliersSubstantial number of peer-reviewed publicationsSeveral specialized consortiums in fuel cell developmentMARKETS THAT OHIO CAN SERVEMilitary needs in aerospace and base operationsStationary power more broadly for facilitiesNiche areas of transportation equipment, such as forklifts
11Health Information Technologies GROWTH OPPORTUNITY FOCUS AREA: HEALTH INFORMATION TECHNOLOGIESWHAT IS IT?Health IT utilizes hardware and software to store, retrieve, share and use healthcare information data and knowledge for improved communication and decision making. Widespread and consistent use of Health IT improves healthcare quality, prevents medical errors, reduces healthcare costs, streamlines administrative procedures, and expands access to affordable care.OUTLOOKSignificant growth in Health IT with the overall market increasing from $99.6B in 2010 to $162.2B in 2015Software applications to increase from $4.5B in 2010 to $11B in 2016 – a 17% CAGRClinical healthcare IT will grow at 19% CAGR increasing from $7.4B in to $17.5B in 2016Mobile healthcare IT will grow at 22% CAGR through 2014 from its $2.1B base in 2011HOW IT BUILDS ON OHIO STRENGHTSLarge employment gains in larger IT industryIndustry presence in health services softwareSignificant VC investmentWorld-renowned academic medical centersSubstantial number of peer-reviewed publicationsExisting statewide health information exchange through non-profit Ohio Health Information PartnershipMARKETS THAT OHIO CAN SERVEHealthcare Informatics focused on advanced electronic health records, improved health systems management, patient-physician communications, smart phone health applications, etc.Integration of Health IT and medical devices
12Medical Technology GROWTH OPPORTUNITY FOCUS AREA: MEDICAL TECHNOLOGY WHAT IS IT?Medical technology encompasses a wide range of health care products used to diagnose, monitor or treat diseases or condition that affects humans. These innovative technologies include imaging, surgical instruments and equipment, implant devices and regenerative medicine. Advances in medical technology are often based on a “systems” approach in which a range of innovative technologies are integrated to provide more functional medical products.OUTLOOKGlobal medical imaging market to increase from $22.6B in 2009 to $29B in 2014Surgical instruments & equipment to grow 5.2% CAGR through 2015The market for regenerative medicine technologies stood at $1.6B 2010 and could reach $15-20B over the next yearsIn cardiovascular implants, the market is sizable at $85B, but maturing-only 2.8% CAGR throughNeuromodulation is fast emerging- stood at $3B in 2008 and will grow at 26% CAGR through 2014HOW IT BUILDS ON OHIO STRENGHTSExperienced and growing employment basePresence of leading medical companiesRobust VC activityStrong patent activityHigh level of peer-reviewed publicationsMARKETS THAT OHIO CAN SERVEHealthcare
13Propulsion Power Management GROWTH OPPORTUNITY FOCUS AREA: RENEWABLE ENERGY APPLICATIONSWHAT IS IT?Propulsion systems are machines that produce power required to push or pull a vehicle into motion, and enables the vehicle to accelerate, decelerate and maneuver while already in motion. In aircraft, turbine engines provide the propulsion required to operate reliably for extended periods. Propulsion requirements differ depending on the use requirements of the aircraft. Globally, the aircraft engine market is dominated by three companies: GE Aviation, Pratt & Whitney and Rolls-Royce.OUTLOOKGlobal market for aircraft engines valued at $8.7B 2009 and will grow 5.5% annually to reach $11.2B in 2015Technologies driving the market will reduce environmental impacts, increase efficiency and cut operating costsHOW IT BUILDS ON OHIO STRENGHTSHighly specialized employment in aircraft engines and engine parts manufacturingStrong presence of military, commercial and academic research centers focused on propulsionMARKETS THAT OHIO CAN SERVEMilitary, Business and Commercial AviationUnmanned Aerial Vehicles
14Sensing & Automation Technologies GROWTH OPPORTUNITY FOCUS AREA: SENSING & AUTOMATION TECHNOLOGIESWHAT IS IT?Automation technologies reduce the need for human labor in the production of goods and services through the use of control systems. Sensors, which receive and respond to external signals or stimuli, are critical to the process of automation. Combined, sensing and automation technologies comprise the “nervous system” for manufacturing plants, unmanned vehicles, logistics systems, and many other advanced applications.OUTLOOKGlobal sensors market to grow at CAGR of 7.8% to reach $91.5B byMEMS is will experience robust growth doubling from its 2009 value of $2.2B to $4.5B in 2014Large growth for machine vision systems -$11.2B in 2010 to $18B byProcess control instruments will increase from $6.5B in 2009 to $8B in 2014U.S. market for advanced industrial controls will grow 5.4% per year to reach $8.8B in 2014HOW IT BUILDS ON OHIO STRENGHTSStrong presence of corporate R&D and manufacturingSubstantial industry presenceRobust patent activitySignificant academic publicationsMARKETS THAT OHIO CAN SERVEAutomotiveAerospace & DefenseIndustrial ManufacturingEnergy Production & DistributionProcessing
15Situational Awareness & Surveillance Systems GROWTH OPPORTUNITY FOCUS AREA: SITUATIONAL AWARENESS & SURVEILLANCE SYSTEMSWHAT IS IT?Situational awareness and surveillance encompass a comprehensive set of technologies that allow users to perceive information about their environment with respect to time and space, and anticipate how those environmental factors may affect circumstances in the near future. Enhanced situational awareness improves decision-making in dynamic environments and helps reduce accidents based on human error making it invaluable in situations with high levels of information flow and where poor decision-making can have disastrous effect.OUTLOOKSurveillance equipment market $78B in 2009 to $139.2B in 2015Remote sensing products market to witness robust growth- $8.2B in to $11B by 2014Unattended ground sensor systems- emerging technology that is difficult to measure but enabler of enhanced situational awareness and surveillanceHOW IT BUILDS ON OHIO STRENGHTSStrong employment growth search, detection, navigation guidance system and instrumentsPresence of AFRL’s Sensor Directorate at Wright-Patterson Air Force BaseHigh level of remote sensing peer- reviewed publicationsMARKETS THAT OHIO CAN SERVEAerospace & DefenseHomeland Security & Law Enforcement
16Solar Photovoltaics GROWTH OPPORTUNITY FOCUS AREA: SOLAR PHOTOVOLTAICS WHAT IS IT?Solar power harnesses the energy of the sun and converts it to electricity or heat. Innovations in solar technology are enabling a wide spectrum of uses from concentrated solar power plants and building-integrated PV to powering electronic devices. There are many types of solar power approaches, such as concentrated solar, silicon photovoltaics and thin film photovoltaics.OUTLOOKNorth American PV market will grow at a CAGR of 28% from to reach nearly $17BCadmium telluride (CdTe) solar cell market to increase from $2.8B in to $4.6B by 2015Concentrator PV market is emerging and could grow from $64M in to $266M in 2014 – a CAGR of 33%Building-integrated PV (BIPV) market will increase from $740M to $4B between 2009 and 2016HOW IT BUILDS ON OHIO STRENGHTSLarge share of U.S. establishmentsStrong job growth in recent yearsStrong industry presenceSkilled workforceVC investmentResearch assets in The Center for Photovoltaic Innovation and Commercialization and The Photovoltaics and Power Technology Branch at NASA GlennMARKETS THAT OHIO CAN SERVEDevelopment of solar power plantsBuilding-integrated solar applications
17Next Steps Address input from today’s meeting Work to complete overall report by end of September
18Appendices on Line of Sight Analysis for Leading Technology Industry Sectors
19Aerospace: Where the Puck is Today Industry Focus Areas Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.
20Aerospace: Where the Puck is Today Innovation Focus Areas TECHNOLOGY IDENTIFICATION NICHESPATENT AREAS(Top areas of Ohio invented patents with at least 25 patents from January 2007 to September 2010)Power sources/plantsRotary kinetic fluid motorsMaterial compositesFluid reaction surfacesMetal workingCORPTECH TECHNOLOGY PRODUCT MARKETS(4% or higher share of firms with HQ and independent operating units based in Ohio, and at least 5 firms)Major aircraft systemsGround support equipmentAir/spacecraft propulsionPRESENCE OF VENTURE FUNDING & SBIR AWARDS(January 2006 to December 2010)1 Venture Capital Financing o $2.6 million & 31 SBIR awards totaling $9 mFocused broadly on aerospace components Aircraft Hydraulic ComponentsAREAS of EXCELLENCE in SCHOLARLY ACTIVITY(Excellence measured by share of U.S. publications in field or quality based on citations per publication)Aerospace EngineeringMechanical EngineeringCompositesRemote Sensing
21Aerospace: Where the Puck is Going Why Ohio? Existing aircraft engine manufacturing and development industryStrong presence in military aeronautics acquisition and R&DWPAFB; AFRL; AFMCBroad, deep presence of firms in aerospace supply chainExtensive base of federal R&D FacilitiesNASA, AFRL Materials and Sensor Directorate; aerospace and human performance research facilities; propulsion testing facilitiesBusiness Aviation Industry PresenceNetJets, Flight Options, GE Aviation
22Aerospace: Where the Puck is Going Market and Technology Drivers NextGen air traffic management systemImplementation to occur between 2012 and 2025Potential to disrupt distribution of U.S. passenger and air cargo businessLarge growth in Unmanned Systems marketGrowing demand for advanced aerospace materials such as composites and titaniumHigher payloads, more effective propulsion and lighter aircraftExports to increase as global demand increases and low value of the dollar benefits manufacturersFederal defense budget cuts may limit growth opportunities
23Aerospace: Where the Puck is Going Recommended Growth Opportunities NichesInsights from Ohio Aerospace & Business Aviation Advisory CouncilUnmanned SystemsView as a core area of focus – see need to strengthen R&D via OTF … build up defense applications and be a first mover on commercial developments (NextGen Air Traffic Mgt Systems)PropulsionCurrent keystone of Ohio aerospace mfg with GE Aviation.Advanced MaterialsViewed as a core area of focus … note need to promote transition of scalable advanced materials to industry & its supply chainSensorsEmerging area … key OH development drivers are AFRL’s Sensor Directorate and NASA Glenn
24Aerospace: Where the Puck is Going Other Potential Growth Opportunities NichesInsights from Ohio Aerospace & Business Aviation Advisory CouncilHuman EffectivenessEmerging area … relocation of Human Performance Wing at WPAFB key driverPower ManagementEmerging area … GE Aviation’s Electrical Power Integrated Systems R&D Center viewed as key driver
25Aerospace: Where the Puck is Going Strategic Directions for Ohio OTF-Related Strategic Technology Development ApproachesNeed for improved tech transfer, involving federal labs and universities, particularly in: sensors, propulsion, platforms, human factorsTalent is a concern with aging engineering and technical workforce in aerospace industry.Broader Strategic Economic Development ApproachesNegative perception of labor-management relationsMaintaining global competitiveness in aerospace manufacturing costs
26Biomedical: Where the Puck is Today Industry Focus Areas Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.
27Biomedical: Where the Puck is Today Innovation Focus Areas TECHNOLOGY IDENTIFICATION NICHESPATENT AREAS(Top areas of Ohio invented patents with at least 25 patents from January 2007 to September 2010)Surgical instruments: 162 patentsMedical imaging: ___ patentsDiagnostic/therapy testing, techniques and devices: 87 patentsElongated-member driving apparatus: 84 patentsBeds used in medical settings: 64 patentsMulticellular living organisms: 55 patentsSurgical blood/fluid devices: 47 patentsDrug bio-affecting compositions: 43 patentsCORPTECH TECHNOLOGY PRODUCT MARKETS(4% or higher share of firms with HQ and independent operating units based in Ohio, and at least 5 firms)Pharmaceutical packagingHome health care productsRehabilitation devicesOver the counter drugsMedical therapeutic equipmentMedical monitoring equipmentMedical diagnostic/imaging equipmentHealth services softwarePRESENCE OF VENTURE FUNDING AWARDS(January 2006 to December 2010)VC falls into several broad categoriesMedical imagingDiagnosticsSurgical instruments and equipmentImplant medical devicesDrug development and deliveryHealth informatics and logisticsAREAS of EXCELLENCE in SCHOLARLY ACTIVITY(Excellence measured by share of U.S. publications in field or quality based on citations per publication)Extensive statewide strengths with 41 publications fields recording a high share of U.S. publications and/or high quality.30 clinical medicine publication fields stood out as strengths. Among the fields that stand out in both share and quality of publications are cardiac and cardiovascular system, transplantation, urology and nephrology, surgery, pediatrics and oncology.11 basic biomedical research publication fields stood out as strengths. Biomedical engineering stands out in both share and quality of publications.
28Biomedical: Where the Puck is Going Why Ohio? Existing base of Ohio businesses with many leading firms, including Cardinal Health, Ethicon Endo-Surgery, Steris, and Abbott Labs.Outstanding clinical research infrastructureName “brand” academic health centers; 3 NIH supported centers for translational sciencesLarge and growing research base across Ohio regionsOhio universities increased research base 87% from compared to 43% nationallyIntegration with advanced materials and manufacturing baseHigh density and high value supply chain for biomedical productsExperienced technical workforce
29Biomedical: Where the Puck is Going Market and Technology Drivers Rise of molecular diagnostics and personalized medicine approachesGrowing focus on regenerative medicine approachesShifting regulatory requirementsImpact of healthcare reformWireless-digital medical technology innovationContinued “push” for minimally invasive medical proceduresAdvent of disposable biologics manufacturing
30Biomedical: Where the Puck is Going Recommended Growth Opportunities Medical Technology ProductsTechnologies include: medical imaging, sensing and remote monitoring, minimally invasive surgery and advanced implant medical devicesHighly integrative new “systems” approach combines Ohio’s core capabilitiesOffers strong linkages to Ohio’s strengths in academic health centersLarge and growing marketsHealth InformaticsOhio is among most active states on health information exchangesBuilds on strength of clinical infrastructureKey focus of state’s three NIH funded Clinical and Translational Science InstitutesLeverage state’s IT strengths in business-to-business software expertiseConsider ways to connect with molecular and other in vitro diagnostics focus on wireless digital medical devices
31Biomedical: Where the Puck is Going Other Potential Growth Opportunities Molecular & Other In-Vitro DiagnosticsPossible opportunity to access university technologies on biomarkers/reagentsBut Ohio does not stand out – not seen as having a competitive advantageContract Research & Manufacturing SupportContract research for clinical trials viewed as a commodity market – Ohio does not stand out possible approach of creating stronger connections between CROs and universitiesNote: Even if Ohio does not stand out, this is an area that can create jobs in short time framesIn Contract Manufacturing, Ohio not viewed as having base of biologics strengths to play in high growth opportunitiesDrug Delivery and DevelopmentOhio’s lack of sizable venture capital firms to lead deals is a major weakness hard to overcome, limits growth potentialPotential for specialty pharmaceutical companiesLeverage advanced materials strength found in Ohio (both polymer and nano-related advances in drug delivery)Cell TherapeuticsOhio’s primary focus is on the application of adult stem cell technologies to addressing diseases, which is closer to market than embryonic stem cells.A few growing companies in Ohio, but still an emerging area and very competitive nationally
32Biomedical: Where the Puck is Going Strategic Directions for Ohio OTF-Related Strategic Technology Development ApproachesNeed for stronger connections between industry and the state’s strong clinical infrastructure to further market-driven product innovations as well as to test out new medical products.Significant gap between NIH funding and having a commercially viable product. Calls for more focused funding on translational research infrastructure (prototyping centers, drug development centers, etc.) and support mechanisms to connect with emerging and established industry.Talent gaps in Ohio for biomedical fields – lack depth in biologics, level of graduate students lagging other states and connection to engineering talent for biomedical firms lagging other states.Broader Strategic Economic Development ApproachesAccelerate reaching critical mass of biomedical companies in regions across the state. This calls for more pro-active marketing and increased focus on ensuring recent start-up firms have access to follow on venture financing.Concern that venture capital in Ohio is not well positioned to support high growth biomedical start-ups, particularly in the biopharmaceutical area.
33Energy: Where the Puck is Today Industry Focus Areas Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.
34Ohio’s Share of Renewable Energy Industries The most comprehensive national database of renewable companies was recently produced by Brookings and Battelle in “Sizing the Clean Economy” and identifies the leading renewable industries in Ohio:Selected NichesOH Share of U.S. Establishments2010OH Share of U.S. EmploymentSmart Grid Systems/Smart Metering8.6%5.2%Fuel Cells/Hydrogen8.4%9.8%Solar PV (includes installers)5.6%1.6%Energy Storage/Batteries5.3%5.7%Wind2.6%1.9%Biofuels/Biomass2.3%3.5%Source: Battelle analysis of D&B Selectory database
35Energy: Where the Puck is Today Innovation Focus Areas TECHNOLOGY IDENTIFICATION NICHESPATENT AREAS(Top areas of Ohio invented patents with at least 25 patents from January 2007 to September 2010)No patent areas stand out among Ohio’s energy industry firms for Ohio-based inventionsCORPTECH TECHNOLOGY PRODUCT MARKETS(4% or higher share of firms with HQ and independent operating units based in Ohio, and at least 5 firms)Alternative energy systemsElectrical power sourcesFuelsHVAC equipmentLighting systemsElectrical power transmissionPRESENCE OF VENTURE FUNDING AWARDS(January 2006 to December 2010)VC deals in fuel cells, batteries, biofuels, energy management and solar PV-but not concentrated in any area7 companies with deals totaling $26.6MAREAS of EXCELLENCE in SCHOLARLY ACTIVITY(Excellence measured by share of U.S. publications in field or quality based on citations per publication across ALL Ohio universities)ElectrochemistryGeochemistry and GeophysicsEnergy and Fuels
36Energy: Where the Puck is Going Why Ohio? Presence of Ohio’s supply chain is a major selling point – allows for innovative solutions to be put together more quickly and at less costStrength in materials research and development, which is critical to advancing innovative energy applicationsForward thinking utility companies found in OhioLeading companies in specific niche areas, such as Energizer Battery for batteries, Rolls Royce for fuel cells, Parker Hannifin for wind turbine controls, Timken for wind turbine bearings and Battelle in smart grid technologies.
37Energy: Where the Puck is Going Market and Technology Drivers Continued growth in demand for energy drives market opportunitiesDisruptive technologies harder to find in advanced energy – much more of a focus in the near-term on incremental advancesImportance of government incentives for driving demand of renewable technologiesHigh capital costs for large power plant installations of alternative and renewable energy sourcesRegulatory issues impacting both traditional and new sources of energy generationTransmission and distribution issues considerable for bringing on renewable sources of energy
38Energy: Where the Puck is Going Recommended Growth Opportunities Solar PVChallenge of low cost Chinese poly-silicon cells hurts adoption of thin film solar cellsMakes it difficult for Ohio companies to compete in solar modulesOpportunities for Ohio:Base load solar – First Solar moving in direction generating solar-based power plants – very capital intensiveIntegrated solar solutions – highly customized to specific users linked with energy efficiencies + require specialized installationExports of advanced materials targeted to energy applicationsFuel CellsSignificant OEM-supply base complex found in OhioOpportunities for Ohio:Meeting military requirements (aerospace, military bases)Stationary power more broadly, but requires state incentives like in CaliforniaTransportation – may take longer than 3-5 years, but still seen as coming. Right now in niches, such as fork liftsEnergy Storage/BatteriesBig opportunity for energy storage systems, though hard to compete in lithium-ion technologies given base in AsiaConsiderable R&D requiredCost advances needed in manufacturing processes to reduce scrap rates, improve inspectionNeed for higher density materialsOpportunities for Ohio:Focus on automotive sector – Rising auto efficiency standards; Ohio part of three state supply chainEnergy harvesting devicesRechargeable batteries
39Energy: Where the Puck is Going Other Potential Growth Opportunities WindStill needs to overcome performance issues, reliability, maintenanceOpportunities for Ohio viewed as more limited:Specific companies are critical suppliers of componentsAdvanced materialsSmart GridValue proposition still being defined -- whether smart metering, integration of distributed energy and other smart grid applications still being developedRequirements for energy reliability seen as criticalOpportunities for Ohio:Focus on small subsystems development – smart mini-gridsBio-FuelsWaste is largest biomass feedstock in Ohio – wastewater, solid waste and farming wastesBiggest challenge is having a reliable, long-term source of biomassOpportunities for Ohio:Focus on integrated solutions linked to environmental issuesMajor plantsWaterway clean-upMeeting military requirements (aerospace, ships, military bases)
40Energy: Where the Puck is Going Strategic Directions for Ohio OTF-Related Strategic Technology Development ApproachesLeverage Ohio’s strengths in advanced materials and sensors and controls for advanced energy applications.Key cross-cutting competency in power electronics is critical to success in many energy application areas. Ohio considered to be strong in the past, but not a leader today. Activities such as the new GE research center can have broader implications for advancing power electronics in Ohio that can reachBroader Strategic Economic Development ApproachesAddress high capital requirements to advance innovative energy technologies with more high value infrastructure resources.Development of shared use facilities to reduce costs, as well demonstration facilities to shorten development cycle.Local markets are key. With no national standards, every state is its own market.State incentives and regulatory approaches matter to whether Ohio is an early adopter of advanced energy applications.Leveraging intersection of environmental and energy in state approaches. Through advanced energy solutions, innovative approaches to environmental issues can be advanced.
41Info Tech: Where the Puck is Today Industry Focus Areas Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.
42Info Tech: Where the Puck is Today Innovation Focus Areas TECHNOLOGY IDENTIFICATION NICHESPATENT AREAS(Top areas of Ohio invented patents with at least 25 patents from January 2007 to September 2010)Multiplex communicationsData ProcessingSupport for electrical computers and digital processingCORPTECH TECHNOLOGY PRODUCT MARKETS(4% or higher share of firms with HQ and independent operating units based in Ohio, and at least 5 firms)Insurance softwareHealth services softwareEducation and training softwareInternet infrastructure servicesManufacturing softwarePRESENCE OF VENTURE FUNDING AWARDS(January 2006 to December 2010)VC falls into four broad categoriesBusiness softwareHealth ITInternet and messaging servicesData related software and processing servicesAREAS of EXCELLENCE in SCHOLARLY ACTIVITY(Excellence measured by share of U.S. publications in field or quality based on citations per publication across ALL Ohio universities)No statewide strengths in information technology or computer sciences fieldsOhio State stands out in several computer science publication fields, including information systems, hardware and architecture, and theory and methods
43Info Tech: Where the Puck is Going Why Ohio? Presence of large and mid-sized corporate administrative offices and leading academic health centers based in the state.Lower cost of living compared to established leaders in information technology, largely found on the East and West coasts.Less staff turnover than found in IT hotspots around the nation.Ability of new IT start-ups to access seed and start-up capital with the presence of Ohio’s Entrepreneurial Signature Program.Ohio has one of the most active health information exchanges found among large states, which offers a platform and distribution network for health care software applications.
44Info Tech: Where the Puck is Going Market and Technology Drivers Growth of software as a service and on-demand applications through cloud computing.Wireless applications driving real-time intelligence gathering and customer connectivity.Rise of open source platforms.Growing consumerism in health care.Rise of “accountable care organizations” as a new model for health care delivery.
45Info Tech: Where the Puck is Going Recommended Growth Opportunities Business Process Related Software: Focus on serving enterprise computing needs of industry to automate, generate intelligence and add value to sales, financial management, supply chain management, human resource management, production systems and customer services.Health Information Technology. Emerging area primarily focused on software applications and services focused on cost cutting. This includes ways to use a variety of services from workflow management to medical coding to streamlined billing and claims processes to electronic health record systems. It is expected that in the next three to five years, the use of information technology in health care will begin to expand to include improving patient outcomes, and so become more integrated with monitoring patient health and delivering health services.
46Info Tech: Where the Puck is Going Strategic Directions for Ohio OTF-Related Strategic Technology Development ApproachesBetter facilitation and engagement mechanisms to network emerging information technology companies and well-established corporate and healthcare customer community in Ohio.Ohio can become a market leader in health IT by addressing the integration of health care information technology with medical devices, which is proving to be a major hurdle to moving towards systems that can improve patient outcomes.Talent base being generated in Ohio is not viewed as sufficient across the broad spectrum of information technology skills.Broader Strategic Economic Development ApproachesPower costs hurt opportunities to pursue the data centers that drive cloud computing.Commercial banking in Ohio is not savvy about information technology businesses, and these companies often need to seek outside banks for financing of equipment, working capital and mobilization on contracts.Lack of adequate later stage venture financing for emerging information technology companies in Ohio.
47I&C: Where the Puck is Today Industry Focus Areas Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.
48I&C: Where the Puck is Today Innovation Focus Areas TECHNOLOGY IDENTIFICATION NICHESPATENT AREAS(Top areas of Ohio invented patents with at least 25 patents from January 2007 to September 2010)Generic control systemsMeasuring & testingElectricity measuring & testingElectrical communicationsOptics measuring & testingCORPTECH TECHNOLOGY PRODUCT MARKETS(4% or higher share of firms with HQ and independent operating units based in Ohio, and at least 5 firms)Assembly mfg systemsAutomatic test equipmentManufacturing control systemsManufacturing measuring equipMaterials handling and shipping equipRobots/robotic equipmentAutomation servicesPRESENCE OF VENTURE FUNDING & SBIR AWARDS(January 2006 to December 2010)17 VC deals and 276 SBIR Awards falling into two broad areasAutomation & Process ControlSensors & Sensing EquipmentAREAS of EXCELLENCE in SCHOLARLY ACTIVITY(Excellence measured by share of U.S. publications in field or quality based on citations per publication across ALL Ohio universities)Statewide strengths in:Remote SensingIndustrial EngineeringPlus, Ohio State University stands out in automation and control systems.
49I&C: Where the Puck is Going Why Ohio? Strengths found in Ohio across all components of advanced instrument and control systems, including:Sensors; Automation; Signal Processing; Information Processing; Distribution; Decision SupportPresence of Air Force Research Lab Sensors Directorate at Wright-Patterson AFBUniversity strengths, particularly in sensors and sensing systems
50I&C: Where the Puck is Going Market and Technology Drivers Broad range of markets to be served from aerospace & defense, law enforcement and homeland security, industrial automation and manufacturing, energy and biomedical.Unmanned vehicles becoming an important platform for advanced automation and sensing technologies.Continued need for advances in sensor technologies, such as improved chemical sensors able to function in real world conditions, full motion video gigapixel class sensors and terahertz wave sensing.Market seeking linkage of wireless-based real time monitoring with advanced sensing technologies into a system.
51I&C: Where the Puck is Going Recommended Growth Opportunities Two major technology niches stand out for Ohio that serve multiple markets:SensorsBottom up, enabling technologyMany types of sensorsElectromagnetic; IR; Biological; Chemical; T-Rays; etc.Ohio seen as having many technology capabilities in sensor development, but no single area stands outTest & measurement markets seen as near- termSituational Awareness/ SurveillanceTop down, systems approachInvolves:Sensor technologiesProcessing (sensor data and information processing)Data storageDistributionExploitationOhio seen as strong across the components of these systems
52I&C: Where the Puck is Going Strategic Directions for Ohio OTF-Related Strategic Technology Development ApproachesNeed for test bed facilities that can allow emerging companies and consortiums to test and demonstrate solutions.Talent is an area of concern, especially given high numbers of retirement eligible engineers working in sensors and automation at Wright-Patterson AFB. Also hard to attract both young graduates and experienced workers to Ohio.Broader Strategic Economic Development ApproachesLack of prime integrators in Ohio holds back industry growth. With expansion of Wright-Patterson AFB, it is important to attract more prime integrators to Ohio.Need for further capital in support of commercialization. SBIR funding particularly important in sensors and sensing technology systems. Ohio might want to consider providing matching funds to companies that are awarded Phase II SBIRs tied to commercialization within OH.Improved contracting approaches for small and mid-sized Ohio companies with the Air Force Research Lab.
53Materials: Where the Puck is Today Industry Focus Areas Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.
54Materials: Where the Puck is Today Innovation Focus Areas TECHNOLOGY IDENTIFICATION NICHESPATENT AREAS(Top areas of Ohio invented patents with at least 25 patents from January 2007 to September 2010)Synthetic resinsMaterial CompositesSolid anti-friction materialsCoatingsCORPTECH TECHNOLOGY PRODUCT MARKETS(4% or higher share of firms with HQ and independent operating units based in Ohio, and at least 5 firms)CeramicsCompositesOils & lubricantsPolymersElectronic materialsConstruction MaterialsMetals & alloysTextiles/fibersAbrasivesAdhesivesAdditives/modifiersMaterial servicesFillers/reinforcementsNonmetalliferrous materialsPRESENCE OF VENTURE FUNDING & SBIR AWARDS(January 2006 to December 2010)30 VC deals and 301 SBIR awards falls into three broad categoriesCeramics & CompositesChemicals & MaterialsSpecialty Metals & AlloysAREAS of EXCELLENCE in SCHOLARLY ACTIVITY(Excellence measured by share of U.S. publications in field or quality based on citations per publication across ALL Ohio universities)Polymer SciencesMetals and Metal EngineeringMaterial Sciences, Characterization and TestingBiomaterialsCoatings and Films
55Materials: Where the Puck is Going Why Ohio? Supplier “value chain” is outstanding in Ohio across all materials industriesInnovation base outstanding with significant strengths in development and materials analysis across multiple universities across the state.End use industries significant in OhioStrong and engaged base of industry organizations creating “connective” fabric in Ohio
56Materials: Where the Puck is Going Market and Technology Drivers A number of key attributes are driving the need for advanced materials including:Demand for more multifunctional materials that can provide increased value to applications“Light weighting” of materials that ensure strength and reliability but enable the use of less materials at lower costs.Ability for materials to be environmentally friendly and recyclableAdvances in material production processes also driving market:Direct Digital (Additive) ManufacturingRetoolingModeling & simulationNear net shape production
57Materials: Where the Puck is Going Recommended Growth Opportunities Consider “advanced materials” from a broad technology and market application focus … do not focus from viewpoint of specific types of advanced materialsAddress Requirements for Advanced MaterialsMultifunctional materials“Light weightingSustainable/ RecyclableAdvanced production processesBuild Upon Broad Range of Advanced Materials Found in OhioAdvanced Polymer MaterialsStructural CompositesAdvanced CeramicsSpecialty Metals & AlloysFocus on Specific Market Application Areas for Materials Found in Ohio and BeyondBiomedicalAerospace/ Defense/ TransportationAdvanced EnergyGreen Products
58Materials: Where the Puck is Going Strategic Directions for Ohio OTF-Related Strategic Technology Development ApproachesOTF needs to be on a real-world business schedule opportunities for capturing large company development projects being lost. Need for an open RFP process that is available as opportunities arise.Need a targeted focus on entrepreneurial development in advanced materials. New ventures in advanced materials have specific requirements that need to be recognized in the state’s approach to entrepreneurial development. Focus on common services, SBIR support, business partnering, scale-up, etc.Better connect Ohio innovations in advanced materials to Ohio industry customers. Calls for more scale up and demonstration facilities. Focus on “de- risking” adoption of advanced material solutions.Diminishing industry support to universities because of difficulties with contracting/technology transfer processes. Companies are finding it easier to do business overseas given complexities of negotiating intellectual property rights and contract terms. Need for more “template” agreements.Broader Strategic Economic Development ApproachesManufacturing costs relative to rest of the world. Consider ways to reward those who seek to pursue the manufacturing of innovations made in Ohio.Place an emphasis on recruitment of emerging innovative advanced materials companies to Ohio. Ohio stands out in its support for advanced materials