Oregon Legislature Creates New Innovation Council

By Oregon Economic & Community Development Dept

Oregon’s toughest competition no longer comes from neighboring states. It comes from nations on the far side of the globe.

To compete with China and India, two countries with highly educated workers and low labor costs, Oregon must identify and catalyze the strengths that put us ahead of our competitors.

“Oregon InC” to lead the state’s innovation agenda, leverage resources

Governor Kulongoski and the 2005 legislature created the Oregon Innovation Council (“Oregon InC”) to meet this important challenge. The Governor considers Oregon InC a critical feature of his economic development program, which has generated 80,000 new jobs during the past three years. The Governor believes Oregon InC can strengthen the trend that has already made Oregon a high-tech leader among states, particularly in nanotechnology and microtechnologies.

An innovative coalition of 40 leaders from government, higher education and traded-sector industry, Oregon InC works to make Oregon the “Innovation State,” a mission that reflects Governor Kulongoski’s vision for an invigorated state economy that capitalizes on Oregon’s knowledge assets. (Find the Governor’s vision statement at http://governor.oregon.gov/Gov/ecodevo/intro.shtml.)

The Council has 13 voting members and four legislative members who are non-voting. It also has five ex-officio members who represent key agencies and commissions. Eighteen technical advisors provide expertise in specific industries.

You will see a complete roster of Oregon InC membership at http://governor.oregon.gov/Gov/ecodevo/about.htm.

Co-chaired by David Chen (General Partner, OVP Venture Partners) and Stuart Cohen (CEO, Open Source Development Labs), Oregon InC will facilitate collaboration and channel available resources to spark new ideas at research institutions and help companies bring new products to the marketplace.

“Innovation Plan” will identify priorities and budgets

Serving as the single point of contact for the Governor, the legislature, and communities, Oregon InC will recommend steps that public and private sector organizations must take to achieve the following goals:

• Accelerate the transfer of research and technology into high-value products and growth companies
• Develop the workforce talent companies need to compete in highly innovative and global markets
• Bring new investments, new companies and high-paying jobs to our state

Over the next six months, Oregon InC will develop a state Innovation Plan that identifies priorities that build on the state’s competitive advantages, and a single cohesive budget for state-supported efforts to strengthen innovation in Oregon.

The 2005 legislature allocated $7 million for the state’s first signature research center, Oregon Nanoscience and Microtechnologies Institute (ONAMI), and established a $14-million University Venture Fund. Oregon Health and Sciences University and Oregon University System campuses will use the fund to prove the commercial potential of research, technologies and business concepts. Such entrepreneurial projects will connect schools of business to commercial research, advancing Oregon’s venture capital potential and its knowledge-based economy.

History of Oregon InC

Like other states, Oregon has enacted specific legislation over the years to accelerate innovation and competitiveness in traded-sector industries. The following describes the history of Oregon InC:

1995:

• The legislature authorized creation of the Oregon Growth Account in the State Treasurer’s office, providing seed funding for emerging businesses. The Oregon Growth Account is part of the Education Stability Fund.

1997:

• Senate Bill 504 created the Engineering Technology Industry Council (ETIC) to enhance post-secondary engineering and technology education and research.

2001:

• Senate Bill 273 created the Oregon Council for Knowledge and Economic Development (OCKED) – a partnership among industry, education and government to promote knowledge-based industries. In December 2002 OCKED developed a strategic plan that served as a roadmap for Oregon’s innovation economy.

• Senate Bill 101 established the Higher Education Technology Transfer (HETT) Fund to make university research and technologies available to Oregon industries. The legislature also amended the 1995 Oregon Growth Account (OGA) to establish its present operational structure. As amended, OGA can make investments in venture funds that provide seed to later-stage capital across a range of industries, primarily in Oregon.

2003:

• The legislature allocated $20 million in capital and $1 million in operations for the Oregon Nanoscience and Microtechnologies Institute (ONAMI) – the most significant pairing of industry and public research universities in Oregon’s history.

• House Bill 3613 established the Oregon Investment Fund, a $100-million program that encourages the growth of small business by leveraging private equity and venture capital funds.

2005:

• Senate Bill 838 established the Oregon Innovation Council (Oregon InC) – which is comprised of representatives from industry, government and universities. Oregon InC serves as the state’s advisory board on innovation and competitiveness issues. Its mission is to develop a state innovation strategy. The bill allocated $7 million for the state’s first signature research center, Oregon Nanoscience and Microtechnologies Institute (ONAMI), for operations.

• Senate Bill 853 established a $14-million University Venture Fund, which Oregon Health and Sciences University and Oregon University System can use to prove the commercial potential of research, technologies and business concepts. The fund will support efforts to prove the viability of “concept projects,” and cover technology transfer costs for commercializing research and entrepreneurial development.

About the author
The Oregon Economic and Community Development Department works to strengthen the state's economy and put more Oregonians to work in good jobs. By partnering with private sector organizations and working closely with local communities, the Department creates opportunities for business expansion, creation and relocation. For more information about doing business in Oregon, call the OECDD at 1-(866)-4OREGON (1-866-467-3466), or visit http://www.Oregon4biz.com