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The Importance of Networking in Technology Convergence. Presented to Internet2 Fall Members Meeting Presented by Richard A. Bendis President & CEO Innovation Philadelphia September 20, 2005.

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The Importance of Networking in Technology Convergence

Presented to

Internet2 Fall Members Meeting

Presented by

Richard A. Bendis

President & CEO

Innovation Philadelphia

September 20, 2005


“Innovation is fostered by information gathered from new connections; from insights gained by journeys into other disciplines or places it arises from ongoing circles of exchange, where information is not just accumulated or stored, but created.”

- Meg Wheatly, 1941, U.S. Academic


Innovation Philadelphia

A Public/Private

Partnership created to

Grow the

Wealth and

Workforce of the

Greater Philadelphia

Global Innovation Economy

ip strategic plan where we ve been
1999 – John F. Street Elected Mayor of Philadelphia

1999-2000 – Mayoral Transition Team Explores Ways to Make Philadelphia More Competitive

2000-2001 – New Economy Development Alliance (NEDA) Steering Committee Created (Univ. of Penn, Dr. Judith Rodin; Comcast Corporation, Brian Roberts; GlaxoSmithKline, Dr. Jean-Pierre Garnier)

2001 – Innovation Philadelphia Created Under the Leadership of Dr. Rodin

$2.5 Million in Seed Capital from the City of Philadelphia

Rich Bendis recruited to the City of Philadelphia, 12/01

IP Strategic Plan – Where We’ve Been

What is the

Greater Philadelphia Region?

  • 3 states
  • 11 counties
  • Pennsylvania:Bucks, Montgomery, Philadelphia, Chester, Delaware
  • New Jersey: Mercer, Burlington, Camden, Gloucester, Salem
  • Delaware: New Castle

Regionalism - learning to work to promote growth and development with the diverse interests of the11 counties in Greater Philadelphia





IP’s Method of Achieving Mission

Technology-based Businesses


IP Core Products / Services

Global & Regional Economic Development

Research & Marketing



World’s Best Technology Network

Connectivity in

Greater Philadelphia


Human Connectivity

Communications networks have the ability to

transform economic, political, and social relationships

on a global scale.

  • In the past, organizations strategized to gain competitive advantage.
  • The emphasis in the future will be to gain cooperativeadvantage.
  • A core competency needed in individuals, organizations, and regions alike is connectivity.

Source: Fast Growth

connectivity in greater philadelphia
The Greater Philadelphia Region has the

5C’s of innovation connectivity:






Connectivity in Greater Philadelphia

“Science, engineering, and technology are fundamental drivers in the economy of the future, providing the foundation for business growth and overall improvement in the quality of life.”

- Mark Birrell, 1958, Australian politician

The biotech and pharmaceutical industries are responsible for employing more than 509,000people, either directly or indirectly in PA, NJ, and DE. These jobs result in $40 billion in business per year in the tri-state region.

U.S. Production in the tri-state region

1st in pharma, medicine production, & healthcare industry employment

2nd for industrial R&D funds in pharma per capita

6th for venture capital investment in biotechnology

10th for medical instruments and supplies

$1.6 billion in NIH funding with over 1,500 research grants awarded

Regional Life Science Facts

6 National Cancer Institute (NCI) designated Cancer Centers

Fox Chase




Wistar Institute

University of Pittsburgh

Regional Life Sciences Employment & Training

Regional Life Science Facts



  • MAGPI, the Regional Internet2 GigaPoP, has connected
  • 192 sites in the tri-state Region, including pharmaceutical
  • and government institutions
  • High performance connectivity opens the door to
  • advanced collaborations
  • Much of the Region’s academic research utilizes MAGPI
  • and Internet2 connectivity

Regional Life Science Facts

  • 40,000biological scientists in the tri-state region
  • 1,500+ biotechnology, device & diagnostic,
  • pharmaceutical, and bio-agricultural enterprises are
  • located in the Greater Philadelphia Region
  • 174,000people directly employed by the life sciences in
  • the 11-county Greater Philadelphia Region
  • 1 in 5 of the nation’s physicians train in the Region’s
  • medical schools and hospitals
80% of the world’s pharmaceutical companies have presence within 50 miles of Philadelphia

Regional Life Science Facts

  • Biotechnology companies include Centocor,

Cephalon, Medarex, ImmuneControl, Macroarray,

Gentis, Cira

  • Pharmaceuticals companies include Aventis, Merck,

AstraZeneca, GSK, BMS, Johnson & Johnson

  • CROs include Covance, AppTec
  • Venture capital firms include Quaker BioVentures,

PAX, Care Capital, Domain, TL Ventures






Mesh Cell Gateways

Mesh Cell Nodes

Indoor or Outdoor


Portable Clients

Nomadic Clients

Fixed Clients

wireless philadelphia mission and objectives

- Wireless Philadelphia aims to strengthen the City's economy and transform Philadelphia's neighborhoods by providing wireless internet access throughout the city. Wireless Philadelphia will create a digital infrastructure to help citizens, businesses, schools and community organizations make effective use of this technology to achieve their goals while providing a greater experience for visitors to the City.


- To spur economic development

- To enhance community neighborhoods

- To help overcome the digital divide

- To reduce the cost of government

Wireless Philadelphia Mission and Objectives
about wireless philadelphia
About Wireless Philadelphia
  • Estimate 2,500 WiFi cells and 5-7 WiMax bay stations will cover 135 sq. miles
  • WiFi cells will be mounted to light poles
  • WiMax bay stations will be mounted on rooftops
  • Network will support public access, gov’t field operation staff, public safety, smart parking system, Automated Meter Reading, and free public access in major parks
identified stakeholders
Identified Stakeholders


(Assets and Capabilities)


(Needs & Requirements)

stakeholder results
There is a need for universally-available and affordably priced broadband

Efforts to reduce the digital divide require broadband, computers in the home, training, content and a defined process

The demographics and projected demand calculations show that there is a potential market for these services

It is unclear if, when and at what price the private sector will provide these services

The City will achieve greater success by partnering with the private sector

Substantial involvement by the City is needed to ensure that the project gets off the ground and that all stakeholders benefit

Stakeholder Results
impact on businesses
Neighborhoods not served by high speed data access today will be new market opportunity

Businesses can subscribe to wireless network to sell their services

Small, mid-sized, and disadvantaged businesses can take advantage of affordable access to compete in Knowledge Economy

Wireless will provide new opportunities for yet unthought-of new ideas and products

Opportunity for businesses to market to tourists

Impact on Businesses
economic findings
Broadband availability allows local businesses to remain competitive, operate more efficiently, and access more consumers more quickly and thus grow faster.

Smaller manufacturers need access to high-speed networks to remain part of the supply chain of larger players.

Information businesses can start and locate anywhere they want, and they tend to look for areas with educated workforces, advanced infrastructures and high quality of life. Knowledge workers expect and require advanced telecommunications infrastructure.

Economic Findings
economic findings1
Integrated into learning and communicated with the parents in the home, broadband connections can improve education for students.

The Internet enables entrepreneurship, facilitates networking critical to funding start-ups, and encourages rapid tech-led economic growth, with broadband empowering smaller players to compete against larger and more established companies.

A July 2005 Technology Administration roundtable on “BioCenters of Excellence” heard from several biotech and economic development leaders that high bandwidth connectivity is critical to advanced biotechnology research and database access.

Economic Findings
current progress
Mayor incorporated Wireless Philadelphia as a 501(c)3 nonprofit March 30, 2005

Request for proposal to design, build and maintain network issued April 7, 2005

Responses received in June and review committees have made recommendation to the Board

Hewlett Packard and Earthlink have been identified as finalists

Winner will be selected and contract negotiated in September

Construction to begin in September

Entire city covered with wireless Summer/Fall 2006

Current Progress

Principles of Successful Partnership

  • Shared Ownership
  • Broad Participation/Diversity of Interests
  • Champions/Advocates
  • Operational Principles
  • Partnership Formalization
  • Merit-Based Decisions
  • Flexibility
  • Cost-Sharing
  • Evaluation
  • Stability/Long-Term Commitment

MISC 01289959


Regional Collaboration

The Greater Philadelphia Region (PA, NJ, DE) has the Regional assets to help technology companies succeed:

pennsylvania bio
A resource dedicated to helping advance the companies and research institutions that are developing ground-breaking therapies, devices, diagnostics, and vaccines.

Provides networking opportunities and targeted introductions to help members showcase their strengths and to meet people and organizations that will help them advance.

The only statewide association in the Commonwealth dedicated to advancing the bioscience cause on both state and federal levels.

Mission - To be a catalyst to ensure Pennsylvania’s position as a global leader in the biosciences by developing a cohesive community that unites the Region’s biotechnology, pharmaceutical, research, and financial strengths.

Pennsylvania Bio
biotechnology council of nj
Located in the state's capital of Trenton, the Biotechnology

Council of New Jersey (BCNJ) was chartered in 1994 with

a three-fold mission:

To formulate and advocate public policy to elected officials and regulators.

To acquire and coordinate resources and provide services to members

regarding issues critical to building successful biotechnology enterprises.

To enhance awareness and appreciation of New Jersey's biotechnology


Biotechnology Council of NJ
delaware economic development office
Delaware Economic Development Office
  • Offers a variety of support and assistance to existing and new biotech companies including finding companies wet lab space, securing capital, locating networking opportunities, providing information on workforce training programs and tax incentives, and facilitating other needs.
Four Regional Technology-Based Economic Development Organizations

How do they best collaborate?

Regional TBED Organizations

Established in 1982 to stimulate economic growth through innovation,

entrepreneurship, and the development and adoption of new


BFTP operates on a Regional level through four centers strategically located

throughout PA , with offices in Pittsburgh, State College, Bethlehem, and


Every dollar invested in BFTP yielded nearly $23 of additional income in the


BFTP generated 93,105 job-years at a cost to PA of $3,342 per job-year*.

The state garnered more than $400 million in additional tax revenue as

a direct result of the program, which more than covered the operating

costs of the program over the same period.

BFTP boosted Pennsylvania’s economy by $8 billion

Web site –

Ben Franklin Technology Partners



  • Founded as part of the $2 Billion plus initiative by PA to strengthen the
  • commitment to life sciences
  • BioAdvance received $38 million from the State’s share of tobacco
  • settlement monies to spur the creation of life sciences jobs and businesses
  • Creation of PA Life Sciences Passport to provide a single gateway to major
  • research centers
  • Creation of statewide Clinical Trials Network
  • Greater Philadelphia region has 2nd largest concentration of
  • biopharmaceutical jobs in North America and earned $2.8 billion in NIH
  • funding from 1996 to 2000
  • Web site –

Science Center


To be the world’s best science and technology commercialization engine.

Web site –

  • Commercialization Hub
  • Sc Venture Formation
  • Sc Capital
  • Sc Management Services
  • Sc Knowledge and Information
  • Exchange

Real Estate SBU

Science & Technology Center


World’s Best Technology Network

Funding amounts subject to change without notice. Science Center funding estimated funding is TBD.

Long term vision and planning

Identify gaps and trends in science and technology environment

Be a catalyst through strategic investments and partnering

Encourage a balanced and flexible research and development portfolio

Encourage private sector innovation

Establish performance-based research and development

Government’s Role in

Science and Technology

© KTEC 1998


Role of Industry: Wealth Creation

Capitalism is a Process of

Creative Transformation

“The interaction of technological innovation with the competitive marketplace is the fundamental driving force in capitalist industrial progress.”

Joseph A. Schumpetter, 1942


Role of Academia

Building Capacity For Learning and Innovation






Learning and









Academia – Reasons Why There is Little Interaction with Industry

  • Educators say that they do not have enough time to create
  • programs or to meet with industry representatives
  • Space at research institutions to mentor students is very
  • limited
  • There are very few institutional arrangements
  • There are issues related to patents, trade secrets, and
  • proprietary issues.
  • The surveyed industry leaders also noted these same issues.

Source: Human Capital Barriers and Opportunities for Growth in the Life Sciences


Industry-Academic Linkages

  • Schools and firms report limited exchange of firms and ideas.
  • Corporate and academic interactions are rare and often non-
  • existent
  • Leaders of educational programs and business leaders are
  • eager for such programs. However, they stated that they
  • have no time to build these linkages.

Source: Human Capital Barriers and Opportunities for Growth in the Life Sciences


Recommendation - Industry-Academic Linkages

  • The Region would benefit from:
  • An organization that could facilitate corporate-academic
  • linkages.
  • Examples and models of successful collaborations.
  • A legal template that would facilitate corporate-academic
  • exchanges of ideas, scientists, graduate students, and
  • personnel, but at the same time protect the intellectual
  • property rights of the participants.

Source: Human Capital Barriers and Opportunities for Growth in the Life Sciences


A Strategy for Intellectual Property Donation

  • Innovation Philadelphia (IP) and Phoenix IP Ventures
  • (Phoenix IPV) have introduced a new program that will
  • enhance the rate and magnitude of science driven economic
  • development in the Greater Philadelphia Region.
  • Under this model, IP and Phoenix IPV have established a not-
  • for-profit entity, which will accept intellectual property backed
  • assets from “Fortune 500 companies” as donations.

A Strategy for Intellectual Property Donation

  • In return for these donations, the donating companies have
  • the opportunity to receive tax credits for their philanthropic
  • efforts.
  • Donated assets will be commercialized subsequently by IP
  • and by Phoenix IPV primarily through investments in existing
  • companies or the creation of new companies.
  • The overall goal is to access worldwide science to increase
  • the overall economic growth in our Region.
technology transfer
Technology Transfer
  • Science Center – Currently home to 25 companies.
    • Have started over 350 companies.
  • Drexel University – Currently home to 10 companies.
  • University of Pennsylvania Center for Technology Transfer.
    • Launched 14 companies in 2004.
    • Set to launch 12 – 16 companies in 2005.

Success Stories

  • The Joseph Stokes, Jr. Research Institute at CHOP has licensed a rotavirus
  • vaccine (ROATEQ) to Merck. Phase III Clinical Trials were recently
  • completed and Merck has submitted the vaccine for licensure with product
  • launch anticipated in early 2006.
  • Drexel has a portfolio of more than 350 patents in health sciences,
  • biomedical and biotechnology, materials, IT/electrical, chemistry, and
  • mechanical engineering.
  • Over the last 14 years, Temple University's aggregate licensing income (net
  • of the 50% share going to inventors) exceeded operational and patenting
  • expenses by $1.5 million.


This is a Title:

Connecting the

Greater Philadelphia

Innovation Economy

This is a sub-head

why was a road map needed
Greater Philadelphia was at an economic crossroads – and at risk of losing our status as a top tier city.

Many plans have been created. We don’t need another plan, rather an umbrella strategy that acts as a multiplier to leverage disparate and often competing economic activities into a comprehensive Regional effort.

To develop a comprehensive understanding of Regional opportunities as well as an understanding of scenarios in which we can realistically leverage critical ‘ingredients’ for the Regional innovation ‘recipe’.

To challenge the perception that the Region merely used to be a center of innovation, intellect, commerce, and culture.

Now is the time to act. There is a unique convergence of circumstances and timing that is creating a window of economic opportunity for the entire Region over the next 5-10 years. If we don’t act now the window will close – potentially forever.

Government, industry, and academic leaders have come together to implement the plan.

Why was a Road Map needed?






The Creative






and Software

The Targets of Opportunity :

Churn Indicators

Five Prime Targets of Opportunity

“It is not the strongest of species that survive, nor the most intelligent, but the ones most responsive to change.”

Change is Inevitable

-Charles Darwin


Richard A. Bendis

President and CEO

Innovation Philadelphia

2600 Centre Square West

1500 Market Street

Philadelphia, PA 19102

(215) 496-8110


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