1. Office of Economic Development mcaplan@ci.berkeley.ca.us 510-981-2490 Overview of West Berkeley Economy: Opportunities and Challenges

2. West Berkeley Area Plan Goals for Employment Growth ( from Preferred Land Use Concept and West Berkeley Area Plan, p. 33) Office and laboratory jobs 1,200 Retail Jobs 1,200 Manufacturing Jobs: 700 TOTAL3,100 The Plan’s land use policies were intended to allow at least this amount of employment growth.

3. Sources: Figures for 1991 from West Berkeley Area Plan, Table 2-1, p. 65; Figures for 2008 from California EDD, Quarterly Census of Employment & Wages, 2 nd quarter 2008 *** Sectoral employment suppressed for reasons of confidentiality but included in the total Private Employment in the 94710 Zip Code June 1991 & June 2008

4. Manufacturing Employment in Berkeley, 1958-2008 Sources: Economic Census (US Census Bureau): 1958, 1963, 1967, 1972, 1977, 1988, 1987, 1992; Other years- California EDD, Quarterly Census of Employment & Wages

5. Sources: Economic Census (US Census Bureau): 1958, 1963, 1967, 1972, 1977, 1982, 1987, 1992; other years, California EDD, Quarterly Census of Employment and Wages Number of Manufacturing Establishments in Berkeley, 1958-2008

6. Sources: West Berkeley Area Plan, Table 1-1, p. 25 that used 1990 Berkeley business license data; Data for 2007 compiled by OED from 2007 business license data. West Berkeley Employment by Use Category

7. Berkeley’s Economic Strengths Highly educated workforce Proximity to research institutions Close to sources of capital and entrepreneurship Geographic center of the Bay Area Green policy leadership

8. Educational Attainment Compared to Surrounding Jurisdictions

9. Berkeley Resident Occupations, 2006 Management & professional 63% Sales and office occupations 20% Service occupations 10% Construction & repair 4% Production & transportation 3% Farming, fishing, and forestry 0% Sources: US Census Bureau

10. Average Tax Burden by City Source: Berkeley Economic Development: Attracting University Spin-off Businesses, David Agrawal, Elinor Buchen, Lauren Friedman, Chelsea MacMullan and Lin Tien (2006), p. 37 and Appendix 4

11. Berkeley’s Economic Strengths Highly educated workforce Proximity to research institutions Close to sources of capital and entrepreneurship Geographic center of the Bay Area Green policy leadership

12. UC Berkeley Start-Ups The website for the UC Berkeley Office of Intellectual Property and Industry Research Alliances lists over 100 start-ups that have leveraged UC Berkeley intellectual property rights (patentable inventions and copyrightable software) since the mid-1990s. Of those with known locations: 24 are located in Berkeley 13 are located in other Green Corridor cities 54 are located elsewhere in California 19 are located outside of California (including outside the U.S.) Two-thirds of start-ups are now located outside Green Corridor cities

13. Biofuels, including from innovative sources like algae Green construction materials Bioscience (biopharmaceuticals, drug discovery, diagnostics) Photovoltaics and other forms of solar energy Nanotechnology Spin-Off Firms from UC Berkeley and LBNL Diverse but concentrations in :

14. CNNSuperChip Homeome Contactt News Events Productsroducts ME2000 Series Encoderies Encoder MRE2000 Series Receiver Encoder Encoder VODxchange Storage Encoder MD3187A Receiver Decoder More Information Support Support Requestequest Solutions Telecommunicationscations Stellite ME2000 Series Encoder MRE2000 Series Receiver Encoder Encoder VODxchange Storage Encoder MD3187A Receiver Decoder More Information Modulus Video Solutions Telecommunications Satellite Cable Content Providers Providers Productsroducts : Privacy : Contact : News : Support : Login : Site Map Copyright © 2004 - 2007 by Modulus Video, Inc. The AVC Company | All rights reserved. UC Berkeley Spin-Off Companies that have Located Outside of the East Bay Green Corridor

15. Classification of Start-up firms In NAICS (North American Industrial Classification System), many start-ups are classified in Industry 541710 Research and Development in the Physical, Engineering, and Life Sciences: Establishments primarily engaged in conducting research and experimental development in the physical, engineering or life sciences… In the Zoning Ordinance, the likely classification is Laboratories, Commercial Physical or Biological. Allowed as an “Other Industrial Use” in MU-LI but cannot displace “protected” Use. Not allowed at all in the M District.

16. Problems with “Laboratory” Use Category for Start-ups Use allowed as “Other Industrial” in MU-LI and MM but not M In MU-LI and MM an “Other Industrial” Use cannot displace “Protected Uses” “Laboratory” Use Category not appropriate for many start- ups requiring flexible amounts of office and industrial space

17. Berkeley’s Economic Strengths Highly educated workforce Proximity to research institutions Close to sources of capital and entrepreneurship Geographic center of the Bay Area Green policy leadership

18. Berkeley’s Economic Strengths Highly educated workforce Proximity to research institutions Close to sources of capital and entrepreneurship Geographic center of the Bay Area Green policy leadership

19. Map courtesy of the East Bay EDA

20. Berkeley’s Economic Strengths Highly educated workforce Proximity to research institutions Close to sources of capital and entrepreneurship Geographic center of the Bay Area Green policy leadership

21. East Bay Green Corridor Partnership: UC Berkeley, Lawrence Berkeley National Lab and cities of Oakland, Berkeley, Richmond and Emeryville

22. Regional Map

23. Local Consumer Demand (e.g. Berkeley Solar Financing Program) Research Institutions e.g UC Berkeley, LBNL Local Government Emerging Green Tech Companies Regional “Cradle to Scale” Strategy  Professional Linkages & Referrals  Research Space Needs  Land Use Policy  Training & Workforce Development  Business Assistance  Marketing  Regional Retention of Green Industries  Presence of Green Suppliers & Services  Employment in Emerging Green Jobs Retaining & Building the East Bay’s Emerging Green-Tech Economy East Bay Green Corridor Partnership

24. GREEN ACADEMY VISION GREEN ENERGY EDUCATION PATHWAYS In the East Bay Green Corridor Education for Environmental Sustainability, Social Justice, and Community Development COMMUNITY COLLEGE PRE-BRIDGE AND BRIDGE PROGRAMS OUTREACH, RECRUITMENT AND ASSESSMENT CERTIFICATES & TECHNICAL EDUCATION GREEN ENERGY MANAGEMENT, ENGINEERING, & ARCHITECTURE FOUR-YEAR BACHELOR PROGRAMS GREEN ENERGY EMPLOYERS (AND INCUMBENT WORKERS) *Internships *Employment *Apprenticeships * Mentoring GREEN BUILDING TRADES Labor Union Apprenticeship Programs GREEN ENERGY AND GREEN BUILDING DESIGN MASTERS & DOCTORAL DEGREES

25. Large Development Sites ~28.18 Acres

26. University-Driven Local Economic Development: How to Birth, Catch & Keep (Green) Start-up s City of Berkeley Planning Commission February 2009 Michael Cohen UC Berkeley Office of IP & Industry Research Alliances mcohen@berkeley.edu 510-643-7201 mcohen@berkeley.edu

27. 10/12/2014 Page 27 Agenda: ~7 Minute Presentation Highlight Opportunity Summarize 4 Paths for Commercializing Research Discuss 4 Steps of Locating in Community

28. 10/12/2014 Page 28 Opportunity: Start-up Pipeline In most years, 10-20 start-ups based on UCB / LBL innovations In FY08, over 18* start-ups based on UCB / LBL innovations –At least 11 were green tech o Now, at least 3 currently located in the 4 EBGC cities o At least 6 were located in EBGC, but 3 moved.. Many communities dream of this econ dev pipeline –Establish programs & protocols to attract & retain start-ups –Encourage facilities to attract & retain emerging growth companies * This number is comprised of the start-ups that licensed IP from UCB or LBL; The number doesn’t include other UCB or LBL spin-outs that didn’t license IP, nor does it include established companies that licensed IP from UCB or LBL.

29. 10/12/2014 Page 29 Opportunity: Start-up Econ Dev Models

30. Page 30 Commercializing: 4 Paths Out of Research Push The extent that universities drive the transition from research to product High Low Pull The extent that companies drive the transition from research to product Low Morphed Milked Mined Marketed Organically out of research by team member(s) Systematically out of research by corporate collaborators Opportunistically by entrepreneurs (e.g. MBA students) that periodically scour campus Methodically to industry by campus (e.g. PI, PR, IPMO, etc)

31. Page 31 Commercializing: Morphed, Mined, Milked, Marketed Push High Low Pull Low Organically out of research by team member(s)  Examples: Amyris, Calimetrics, CaliSolar, CellASIC, Chiron, Excellin, GoodGuide (TaoIt), Harmonic Devices, Inktomi, Integrated Diag, IntelliOne, Kalinex, Lumiphore, Mercator Med (EndoBionics), MicroClimates (Aptility), MicroFluiDX, OnWafer, ON Diagnostics, PhotoSwitch Bioscience, Redwood Bioscience, SiClocks, TheraFuse, Urban Scan, Verimetra Med, Wireless Industrial Tech, Dust Networks, Iris AO, SiTime  Drivers:  Great Research  Entrepreneurial culture & eco-system  IP:  Some obtain exclusive license to improve biz plan & attract investors  Some ignore or abscond with IP Morphed

32. Page 32 Commercializing: Morphed, Mined, Milked, Marketed Push High Low Pull Low  Examples: Adura Tech, Aurora Biofuels, CommandCAD, Euclid Media, Fluxion Biosystems, MediFuel, NanoRay, nanoPrint  Drivers:  Great Research  MBAs, Biz plan comp, OTL mrktg  IP:  Many obtain exclusive license to improve biz plan & attract investors  Some ignore or abscond with IP  Comments:  Pathway with highest growth rate  MBAs are the campus’s EIRs Opportunistically by entrepreneurs (e.g. MBA students) that periodically scour campus Mined

33. Page 33 Commercializing: Morphed, Mined, Milked, Marketed Push High Low Pull Low  Examples (that licensed IP): Analog Devices, Ecoprene (XL Tech), Google, Honeywell, Intel, Berkeley Bionics (first morphed then milked)  Drivers:  Great sponsored research with optimized terms (i.e. 1st access, NERF, open source, etc)  Off-campus corporate labs (i.e. BWRC, Intel, Cadence, Yahoo, Starkey, etc)  IP:  Some jointly own IP  Some obtain a license to legally use IP or thwart competitors  Some ignore or abscond with IP Systematically out of research by corporate research sponsor Milked

34. Page 34 Commercializing: Morphed, Mined, Milked, Marketed Push High Low Pull Low  Examples: Arkal Medical, Cisco, ClimateCooler, FuelFX, Luminus Devices, Honeywell, Microchip Biotech, Renovis, Silicon Basis, Solexel, Vitesse, 3M  Drivers:  Great Research  Marketing (i.e. IP Licensing offices, University PR programs, Faculty pubs & ppts, Patent pubs, etc)  IP:  Most obtain exclusive license to stay legal, improve BP, attract investment, or thwart competitors  Some ignore IP or abscond with IP  Comments: Didn’t get morphed, milked or mined because tech or market too nascent when invented Methodically to industry by campus faculty & staff (e.g. PI, PR, OTL) Marketed

35. 10/12/2014 Page 35 Locating: 4 Steps* Into Community * Simplified Model Locating into the Community Baby Step (Free space: Incubator, Garage, etc) Virtual Step (Dorm, Apt, Cafe, Libe, etc) Big Step (Pay for space) Big Leap (Pay for space with growth)

36. 10/12/2014 Page 36 Locating: Competitive Attributes Locating into the Community Baby Step (Free space: Incubator, Garage, etc) Capital (easy access to VC) Collaboration (with UCB people) Attributes Virtual Step (Dorm, Apt, Cafe, Libe, etc) Big Step (Pay for space) Big Leap (Pay for space with growth) Commute (finish degree/relocate) Cost Colleagues (recruiting, support services) Credibility (proximity to known corps) Coolness (of space & hood) Customers (proximity / density) Capacity (appropriate space) Change (inertia of relocating)

37. Berkeley (campus vicinity) 10/12/2014 Page 37 Locating: Baby Step Berkeley Advantage Locating into the Community Baby Step (Free space: Incubator, Garage, etc) Virtual Step (Dorm, Apt, Cafe, Libe, etc) Capital (easy access to VC) Collaboration (with UCB people) Commute (finish degree/relocate) Cost Credibility (proximity to known corps) Coolness (of space & hood) Customers (proximity / density) Capacity (appropriate space) Change (inertia of relocating) Colleagues (recruiting, support services) Leverage these existing advantages

38. EBGC (including Berkeley) 10/12/2014 Page 38 Locating: Big Step Berkeley Advantage Capital (easy access to VC) Collaboration (with UCB people) Commute (finish degree/relocate) Cost Credibility (proximity to known corps) Coolness (of space & hood) Customers (proximity / density) Capacity (appropriate space) Change (inertia of relocating) Colleagues (recruiting, support services) Locating into the Community Baby Step (Free space: Incubator, Garage, etc) Virtual Step (Dorm, Apt, Cafe, Libe, etc) Big Step (Pay for space) Establish these potential advantages Berkeley (campus vicinity) Leverage these existing advantages

39. Bay Area & beyond especially San Francisco & Silicon Valley; but including EBGC EBGC (including Berkeley) 10/12/2014 Page 39 Locating: Big Leap Berkeley Advantage Capital (easy access to VC) Collaboration (with UCB people) Commute (finish degree/relocate) Cost Credibility (proximity to known corps) Coolness (of space & hood) Customers (proximity / density) Capacity (appropriate space) Change (inertia of relocating) Colleagues (recruiting, support services) Locating into the Community Baby Step (Free space: Incubator, Garage, etc) Virtual Step (Dorm, Apt, Cafe, Libe, etc) Big Step (Pay for space) Big Leap (Pay for space with growth)  Can’t expect advantages with these attributes, but need to be competitive with alternatives  The only way to establish an advantage is to be the incumbent & minimize CHANGE Berkeley (campus vicinity) Establish these potential advantages Leverage these existing advantages

40. 10/12/2014 Page 40 University-Driven Local Economic Development Michael Cohen UC Berkeley, Office of Intellectual Property & Industry Research Alliances (IPIRA) Mcohen@Berkeley.edu IPIRA.Berkeley.edu 510-643-7201

43. The Aquatic Park Commute Shed is Wealthy & Educated

44. Five County Bay Area – Industry Size, Growth & Concentration