The workplace is becoming flat. The hierarchical walls within corporations are beginning to lower and fall. Once clearly defined boundaries between corporations are beginning to blur. Geographic regions are both interconnecting and leveraging their unique characteristics. The human and electronic interaction of businesses, customers, government, and academia is influencing the global economy in unforeseen ways. Additionally, the state of the environment and our dependency on oil are issues that are becoming more immediate to all of us. In order for the Merrimack Valley to prosper in the future, it must find a way to transform to a knowledge driven economy. Below are five tenets that research shows will be critical in this quest, and one recommendation for a specific project to jump-start the process.

Tenet #1: Establish Leadership in Emerging Technologies

The Merrimack Valley must become globally recognized for its leadership in one or more emerging technologies that will drive economic development over the next twenty years. In doing so, it will put itself on par with other exemplary regions in the world. For example, Greater Boston is recognized for its leadership in the biotech industry, while Silicon Valley is recognized for its leadership in information technology and social networking. The Merrimack Valley must be considered globally in the same league. Some areas of promise for this region to harness in achieving this leadership are renewable energy, nanotechnology, and green chemistry. A recent RAND Corporation study suggests these three are all among the top drivers of tomorrow's global economy, and the Merrimack Valley is already strong player in all.

Concerning the latter two, nanotechnology and green chemistry, it is believed that these in tandem can be particularly robust in providing jobs and capital gains in the future. David Rejeski, director of the Project on Emerging Nanotechnologies,

“…we believe that nanotechnology can be ‘green’ and help to enable a
better environment. We also think the U.S. could be a global leader in
green nanotech, and that government policy incentives should be directed
toward this goal. We know that green nanotechnology can be a source of
American jobs and company profits in the future.” (1)

Tenet #2: Formulate Innovation Networks

While pioneering research can produce breakthroughs, it is increasingly costly to do in-house. Some businesses are beginning to extend R&D across innovation networks of academia, startups, and complimentary industry. One entity can provide basic research, while another creates a viable product. Emerging innovation brokers are needed to rapidly broker access to promising intellectual property. This model is touted by Forrester Research and currently practiced by the Santa Fe Institute. The other key players in an innovation network are venture capitalists needed to help finance the various stages in the transformation process and corporate attorneys to ensure that intellectual property is protected.

As the lion's share of new R&D spending is heading to China and India, the Merrimack Valley, and indeed, all of New England, must begin to build strong networks between all groups involved in basic research and product development.

Tenet #3: Experiment with “Open Source” Business Strategies

"Open source" refers to a movement in the software industry for making code freely available to anyone interested in working with it. This is an innovative approach to product development that encourages sharing and invites cooperation. The phenomena has caught on like wildfire and today many of the Internet's most popular and essential programs have been crafted through the collective contribution and peer review of thousands of programmers around the world. The process assures robustness and security, and is clearly an enabler for innovation networks. As such, the Merrimack Valley academic and business communities must begin to explore, if not completely embrace, this new model.

The application of the Open Source model to other sectors outside of software was recently illustrated in The Economist. They state

“the 'open-source' process of creating things is quickly becoming a threat—and an opportunity—to businesses of all kinds. From legal research to biotechnology, open-business practices have emerged as a mainstream way for collaboration to happen online. New business models are being built around commercialising open-source wares, by bundling them in other products or services.” (2)

An example of an open-source project in the life sciences, is that of CAMBIA, an Australian non-profit research organization. Their researchers sign an open source license to freely use CAMBIA’s techniques, such as a way to place genes into plants. In return, the researchers agree to openly share any improvements that they devise. For profit companies, as always, are free to make profits through value added services.

Tenet #4: Build and Leverage Regional Social Capital

In “Harnessing Complexity” by Robert Axelrod and Michael D. Cohen, the authors touch upon some of the social factors that drive business and community success. While the Internet enables globalization, trust worthy human interaction on a regional basis is more essential than ever. According to the cited reference, “Social Capital” is defined as the features of social organization, such as networks, norms and trust, that facilitate coordination and cooperation. “Working together is easier in a community or organization blessed with a substantial stock of social capital.”

The authors cite an example in northern Italy where business owners even extensively subcontract to temporarily underemployed competitors. The combination of fair competition and cooperation supports economic progress and good government. The Merrmack Valley must do all it can to build on the strengths of its regional social capital.

Tenet #5: Engage in Lifelong Learning

Knowledge workers want to live and work in a lifelong learning community. All of the participants in a regional economy, including businesses, government and academia must do their part to fulfill this need.

Both formal training opportunities, as well as social networking amongst expert communities by using BLOGs, peer-to-peer communications, podcasting, and other tools, need to be readily encouraged at the regional level and with a regional flavor.

Pilot for Tenets

The proposed Bradford Institute for Green Chemistry (http://www.ivalley.orghttp://ivalley.org/blog/?cat=31) is based on the tenets described above and will serve as a proof-of-concept incubator for the tenets. Its mission is to be the premier research center for the design and synthesis of environmentally benign industrial products. It will provide worldwide leadership in the discovery and patenting of cost saving nontoxic technologies for industries as diverse as plastics, pharmaceuticals, electronics, and biomedical. The environmental and economic benefits will be reflected in a range of everyday products, such as computers, medications, apparel, toys, home furnishing, paints, solvents, and cleaners.

The Institute will provide a competitive advantage to its clients by helping them to develop breakthrough technologies suitable for today’s rigid environmental and financial constraints, and by providing “proof-of-concept” services at affordable rates that would not be possible for most corporate R&D labs. The Institute will provide enormous social and economic value by helping to make vested industries safer and more competitive, while introducing next-generation technologies, innovation networking, business strategies and training to the region and global economy.

Footnotes

1. http://www.nanotechwire.com/news.asp?nid=2889, http://www.nanotechproject.org/
2. http://www.economist.com/business/PrinterFriendly.cfm?story_id=5624944