Opportunities abound for turning ideas into economic benefits
Commercialization of Locally Invented Intellectual Property: Central Valley
needs to capitalize on its innovation
Description of indicator:
Intellectual property (IP) commercialization refers to the ability of a region
to leverage its new innovations in the commercial marketplace, thus converting
new ideas into regional economic gain. Patents are often licensed to an
organization after being initially registered to the individual responsible for
the invention.
Why is it important?
Innovation is necessary for economic growth. The ability of a region to leverage
its IP is a major factor of sustainable economic growth. When the inventor and
the licensed organization are located in different regions, the licensee
receives greater benefit of the patent through commercialization than the
inventor through innovation. The less IP a region commercializes, the more
difficult it is for the region to economically benefit from the patent.
How are we doing?
In 2003, the Central San Joaquin Valley exported 47% of its IP. Another 30% of
the patents remained unlicensed, signifying a need to better connect local
innovators with local entrepreneurial resources to better commercialize their
ideas and benefit the regional economy. The remaining 23% of patents were
licensed to organizations within the region for commercialization with the
largest licensee being Pelco Products, Inc.
Plans for the future:
Plans are currently being made to form a partnership in which the Lyles Center
for Innovation and Entrepreneurship at Fresno State; the Central Valley
Business Incubator; the National Institute for Strategic Technology Acquisition
and Commercialization and the N2TEC Commercialization Portal would bring
patents to the region for commercialization. Additionally, a number of
workshops, courses and legal services are slated for development to help
educate inventors on how to commercialize intellectual property.
New Business Startups: Percentile per 1,000 in Labor Force : Acceleration of
new business startups necessary to achieve economic growth
Description of indicator:
New business startups indicate the number of new businesses a region launches in
relation to its population. The higher a region’s percentile ranking, the
better it is doing in establishing new businesses.
Why is it important?
Entrepreneurship is a major driver of regional economic growth. New business
formation is a key measure of entrepreneurship as it indicates how well a
region is doing in turning new ideas into the launch of new businesses. Regions
with high levels of new firm formation and entrepreneurship tend to have higher
income levels and lower levels of unemployment.
How are we doing?
New business startups have been declining in the Central San Joaquin Valley,
leading to the region’s poor percentile ranking. From 1998 to 2002, the number
of new business starts declined by 11%. If the region is to achieve sustainable
economic growth, it needs to accelerate healthy new business startups.
Plans for the future:
The Lyles Center for Innovation and Entrepreneurship at Fresno State and the
Central Valley Business Incubator are key players in facilitating new
enterprise formation in the region. The Lyles Center offers an entrepreneurship
degree program and the Business Incubator offers a number of classes to help
entrepreneurs learn how to run their businesses. Additionally, the Lyles Center
is sponsoring a Student Business Plan Competition offering a total of $10,000
in prize money to the top three teams to attract entrepreneurial attention to
the region.
Venture Capital by Investment Amount and Deal Flow: Venture capitalist
investment steady but low in Central San Joaquin Valley
Description of indicator:
Venture capital is the money used to support new or high-risk undertakings of
businesses with above-average growth potential.
Why is it important?
Venture capital provides the funding for high-growth, high-risk startups and
business expansions that are necessary for job creation. It also provides
entrepreneurs with access to business support networks, market access and
growth management advice.
How are we doing?
There has been continued formal investment —at least one deal per year —
suggesting that venture capitalists remain interested in the Central San
Joaquin Valley, even though they have not invested heavily in the region in the
past decade. From 1993 to 2002, Central San Joaquin Valley firms received a
total of $36.3 million in venture capital, which is low compared to other
regions.
Plans for the future:
Recently, the Central Valley launched its first venture capital fund, the
Central Valley Fund. There is also work under way to launch an Angel Fund,
which will provide the seed investment entrepreneurs need to get their
businesses up and running. In addition, the Lyles Center for Innovation and
Entrepreneurship at Fresno State and the Central Valley Business Incubator will
continue to provide programs for entrepreneurs interested in gaining investment
capital.
For more information, please visit the Lyles Center for Innovation and
Entrepreneurship at: www.lylescenter.com
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