First Washington Technology Summit Convenes In Seattle

Area Leaders Focus On The Economic Potential Of Technology Development In The Life Sciences, Defense, Nanotechnology, And Energy Sectors

By Stephanie Cartier

People in the Pacific Northwest are said to pride themselves on being innovative, creative, and hard-working. After all, the region is home to such companies as Costco, Starbucks, and Microsoft. Although there have been many successes, there have also been many failed attempts, so the Washington Technology Center (WTC) is working to boost support for startup companies in science and technology.

Headquartered in Seattle, the WTC helps Washington State companies develop and commercialize technology-based products and services by forming connections between people and resources.

The WTC recently hosted the first-ever Washington Technology Summit, which brought together more than 400 people working in state government, academe, industry, and technology development.

Organizers say the Summit is a forum for addressing technology industry development. "New ideas and technology adoption drives company creation and industry growth. This is critical for our state's long-term economic well-being,” says chairman of WTC's board of directors Al Erisman.

"The primary benefit of this conference is to get more people thinking and talking about how innovation and technology can possibly affect their businesses and to find new ideas from each other,” says Lee Cheatham, executive director of WTC.

Cheatham says Washington is unique because the state has a lot of startups and small, growing companies and a better-than-average number of large companies. But the state is lacking what Cheatham refers to as the "business middle class,” that is, companies in the $100 million to $1 billion range, and this poses a challenge for the state. "While we do not yet understand the reasons for this, I believe its impact is to reduce the number of seasoned managers in our region. It's in these companies that most managers learn the discipline of managing profitable companies.”

Although there have been many success stories, most leaders say that Washington entrepreneurs, businesses, and government officials have a lot of work to do. Currently, more than 300,000 people are employed in fields related to technology products in Washington, but that number could grow. "To some extent, it seems that the Northwest has been resting on its assets rather than getting into high gear to compete against the rest of the world,” says keynote speaker and president and CEO of the State Science & Technology Institute Dan Berglund. He points out that Washington's strengths are quality research institutions, residents who fully understand the importance of entrepreneurship, and a quality of life that continues to attract and retain talented people in the region. But improvements are necessary, he notes. "The challenges for the Northwest are a limited infrastructure for assisting entrepreneurs and for transferring technology from the research institutions to the marketplace.”

Others agree that although Washington is fortunate to have several research colleges and lots of businesses, there is work to be done to facilitate their interaction. "The transfer of technology from academic research centers to real-world application is a critical process in creating globally competitive companies,” says Stephen Jordan, president of Eastern Washington University and a member of WTC's board of directors. He says the more people from those backgrounds can meet, the better. "The Technology Summit is an opportunity to bring together business leaders and academics to encourage collaboration in this area and identify key industries and technology innovations that offer the greatest potential in the commercial market.”

Conference coordinators focused on four key industries at the summit: life sciences, defense and security, nanotechnology, and energy. While WTC leaders say Washington is ready and able to make progress in all four of these areas, energy development seems to be the most urgent. This year, citizens nationwide have seen soaring gas prices. Oil is averaging $50 per barrel, and prices are expected to climb throughout the summer. The International Monetary Fund issued a report recently suggesting that oil prices could spike as high as $100 per barrel in the next 25 years. China is expected to triple its demand for oil by 2030, which means domestic demand for affordable fuel will also increase.

Energy industry leaders say the solutions can be found in the region. "This industry is a near-perfect fit for the Pacific Northwest. It requires new technologies for energy production, integration of software and telecommunications, and is ripe for niche businesses that can easily filled by entrepreneurs. New technologies, software and telecommunications, and entrepreneurs are three of our region's strengths,” says Cheatham. He estimates that more than 15,000 people are already working in the energy industry in the region, which he says provides a great base from which to build. And with the markets for energy growing worldwide, there is a lot to build. Cheatham points out that a challenge is Washington's utility industry. "It is very conservative, and therefore slow to adopt new innovations,” he says. Another complication is the fact that much of the energy industry is driven by public policy, which puts it at odds with capital markets.

Alternative fuels are a big part of the solution, according to representatives from U.S. Senator Maria Cantwell's office. They estimate that the U.S. imports about 57 percent of all oil consumed. "Tomorrow, we could be importing the technology that makes us less dependent on oil. But still, that would represent a missed opportunity and export of American dollars,” says Angela Becker-Dippmann, assistant to the senator. She points out that people should be interested in making strategic investments in energy research and development. "There is no question that it will have tremendous economic impacts on our country for years to come, but also because the advances we make will have serious implications for our environment, quality of life, and our consumers.”

Researchers are looking into the possibility of using liquid transportation fuel known as biofuel. Biodiesel, for example, can be made from vegetable oil, animal fats, or recycled cooking grease. Washington's first biodiesel plant, Seattle Biodiesel, is expected to begin operation this spring and could produce up to 5 million gallons of biodiesel every year.

Cantwell recently announced new legislation to promote biofuel development with the goal of producing 20 billion gallons in the next fifteen years. Last year, the U.S. produced less than 3.5 billion gallons of corn-based ethanol. Cantwell says the 20/20 Biofuels Challenge Act would help grow technologies needed for conversion of a variety of crops, such as canola and wheat straw, both grown in Washington, into fuels. "We need an energy policy that relies on American ingenuity rather than the whims of the OPEC cartel of the Saudi royal family, but we need to make smart investments in home-grown fuels to get there,” says Cantwell.

State Representative Jeff Morris agrees that Washington needs to be innovative in developing new fuel sources. "No silver bullet exists that will solve all our energy needs. We have a holistic energy future ahead of us that will utilize wind, solar, micro turbines, stirling engines and fuel cells,” he says. Morris, who is also the director of the Northwest Energy Technology Collaborative, a pilot project of WTC, believes that the key to success is to win as many competitive research and development opportunities as possible. "Many times, the unanticipated discoveries during research yield the most commercially viable products. Getting more than our fair share of research dollars will also help us attract the top graduate students into the region, making us a worldwide hub for top-notch energy research.”

New ideas, connecting people, and creating jobs: This is the combination WTC is looking for. Time will tell if interactions such as those generated at the Technology Summit will help keep the region's economy pumping in the years to come.

Stephanie Cartier is pursuing a master's degree in Technical Communication at the University of Washington.

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Lee Cheatham, executive director of the Washington Technology Center, addresses the audience at the Washington Technology Summit on the potential effects of technology industries on economic growth and the job market. Photo: WTC