1. NGA – Western Regional Competitiveness Forum April 5, 2002 8:30 am – 10:00 am

3. New Economy Linkages….

4. Define it…….. What is the New Economy?

5. Industry Clusters 2/3 –Local Clusters  Local firms that serve local customers  Average Wage - $26K 1/3 –Trading Clusters  Average Wage - $42 K  This is where Innovation is  This is where Growth can occur  This is where Wealth is created

6. How does one proceed ?

7. Kentucky Innovation Regions Fulton Hickman Carlisle Graves Ballard McCracken Calloway Marshall Livingston Clay Harlan Knox Whitley Letcher Pike Floyd Knott Leslie Laurel McCreary Wayne Pulaski Rockcastle Jackson Russell Casey Lincoln Boyle Garrard Martin Johnson Magoffin Lawrence Boyd Carter Elliott Morgan Rowan Wolfe Breathitt Lee Owsley Perry Menifee Bath Mont- gomery Powell Estill Greenup Lewis Fleming Mason Robert- son Bracken Harrison Nicholas Pendle- ton Bourbon Campbell Kenton Grant Boone Gallatin Trimble Carroll Owen Henry Oldham Shelby Franklin Scott Clark Fayette Jessa- mine Madison Woodford Ander- son Mercer Washing- ton Spencer Nelson Jefferson Bullitt Meade Hardin Hancock Breckinridge Larue Marion Taylor Green Hart Adair Clinton Cumberland Monroe Allen Barren Metcalfe Warren Simpson Logan Grayson Edmon- son Butler Ohio Daviess McLean Muhlen- berg Hopkins Webster Henderson Union Critten- den Cald- well Lyon Christian Trigg Todd Bell Cincinnati St. Louis Nashville South Central North Central Eastern Western

8. Key Elements of the Strategic Plan Commercialization R & D Workforce

9. R & D

10. University Corporate Federal Laboratories R&D

11. R&D Funding Goals The University of Kentucky and the University of Louisville will increase federal and other extramural (non-institutional) annual research expenditures from $173 million in 2000 to $500 million by 2010 and to $1 billion by 2020.

12. Technology Clusters Human Health and Development Biosciences Information Technology & Communications Environmental & Energy Technologies Materials Science & Advanced Manufacturing

13. Opportunity Areas  Kentucky Center for Natural Products  Center for Cardiac Assist Devices  Kentucky First  Kentucky Visioning Center  Energy and Environmental Consortium  Rural Business Building Initiative  Safety and Security

14. Industry Cluster Formation Technology Clusters I.Human Health and Development II.Biosciences III.Information Technology and Communications IV.Environmental and Energy Technologies V.Materials Science and Advanced Manufacturing Opportunities 1.Natural Products Center 2.Center for the Development of Circulatory Assist Devices 3.Kentucky First 4.Kentucky Visioning Center 5.Kentucky Energy and Environmental Consortium 6.Safety and Security 7.Rural New Economy Business Building Initiative New Economy Industry Clusters

15. Commercialization

16. ICC’s –Satellites IT Resource Network Venture Capital

17. Executive Director provides support services Northern Kentucky The Kentucky Innovation and Commercialization Center (ICC) Model LouisvilleLexington Central Eastern Western

18. Commonwealth Seed Capital LLC

19. Commonwealth Seed Capital Fund State Investment $10 million Private Venture Capital Firm Statewide Investment Group Private Venture Capital Firm Statewide Fund $6 million Eastern Region $500,000 Western Region $500,000 South Central Region $500,000 Life Science Fund $2.5 million

20. Human Capital Workforce

21. Role Models Program “ Kentucky can win at other things besides basketball.” -- Lee Todd, President, University of Kentucky

22. Governor’s Young Entrepreneurs Competition Scholarships to attend Ernst and Young Entrepreneur of the Year Award

23. Assessing Kentucky’s High-Tech Infrastructure Statewide assessment of Kentucky’s network infrastructure, access, and usage. Connect entucky

24. Policy

25. Monitoring Return on Investment Kentucky must work smarter Kentucky must deploy its resources strategically so that it maximizes return on investment.