Report - 2020 Innovation Partnership Zones Biennial Report Afbea4F7 Feef 47B5 B61E E
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- 2020 Innovation Partnership Zones Biennial Report Afbea4F7 Feef 47B5 B61E E
Summary
The Innovation Partnership Zone (IPZ) Program 2020 Biennial Report to the Legislature, issued in December 2020 by the Washington State Department of Commerce's Office of Economic Development & Competitiveness. Commerce submits the report as required by RCW 43.330.270(12). The executive summary traces the program from HB 1091 in 2007 and notes that dedicated funding was eliminated in the 2013-15 biennium, leaving 10 IPZs for the 2018-19 reporting period. It recommends reinstating state funding or eliminating designation and reporting requirements, and reimagining the program for recovery from the COVID-19 pandemic. Individual zone reports list each IPZ's mission, partners, funds received, challenges and outcomes, for zones including Auburn, Bellevue 5G, Bothell, Issaquah, Skagit Valley and Tri-Cities.
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Innovation Partnership Zone
(IPZ) Program
2020 Biennial Report to the Legislature pursuant to RCW
43.330.270(12)
OFFICE OF ECONOMIC December 2020
DEVELOPMENT &
COMPETITIVENESS REPORT TO THE LEGISLATURE
Lisa Brown, Director
2.3
Acknowledgments
Chris Green, Assistant Director, Office of Economic
Development & Competitiveness
Jaclyn Perez, Program Manager
Robb Zerr, Rural, Small Business & Marketing
Services Director – Report Writer
Washington State Department of Commerce
1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525
www.commerce.wa.gov
For people with disabilities, this report is available
on request in other formats. To submit a request,
please call 360.725.4000 (TTY 360.586.0772)
2020 Innovation Partnership Zone Biennial Report
Table of Contents
Executive Summary ..................................................................................................................................... 2
Individual IPZ Reports .................................................................................................................................. 4
Appendix A: Innovation Partnership Zone Map ........................................................................................... 13
2020 Innovation Partnership Zone Biennial Report 1
Executive Summary
Introduction
Every two years, the Washington State Department of Commerce (Commerce) submits a report on the state’s
Innovation Partnership Zones (IPZs) as required by RCW 43.330.270(12) as follows:
(12) The department must compile a biennial report on the innovation partnership zone program by
December 1st of every even-numbered year. The report must provide information for each zone on its:
Objectives; funding, tax incentives, and other support obtained from public sector sources; major activities;
partnerships; performance measures; and outcomes achieved since the inception of the zone or since the
previous biennial report. The department must submit the report to the governor and legislature beginning
December 1, 2010.
This 2020 report summarizes the performance of IPZs, individually and collectively, and makes
recommendations for improving the effectiveness of the program.
Background
In 2006, Governor Gregoire's Global Competitiveness Council issued a report outlining a 10-year plan that, in
part, identified investing in research and innovation as a key strategy. In 2007, the Legislature enacted HB
1091, creating innovation partnership zones. The program originally received $5 million in capital budget
funding, distributed as competitive grants. In 2009, the funding increased by an additional $1.5 million. In 2012,
dedicated state funding hit a high mark at $13.5 million. In the same year, the Legislature also made IPZs
eligible for state Community Economic Revitalization Board (CERB) funds. By 2013, the program had 18
designated IPZs.
In the 2013-15 biennium, the Legislature eliminated dedicated funding for IPZs. However, the Legislature has
maintained the administrative requirements including the process of (re)designation every two years and
annual reporting. Several IPZs have expressed concern about the time and expense of meeting these
administrative requirements.
For this reporting period (2018-19), there are 10 IPZs as compared to 14 in the prior (2016-18) reporting period.
Program Overview
By law, an IPZ must involve three types of institutions: research, industry cluster, and training. Administration
of the IPZ must done through one of several specified local government entities. An entity wishing to become
an IPZ must apply to Commerce with statutorily specified information, including evidence of anticipated
private investment, job creation, innovation, and commercialization.
Every two years, Commerce is required to (re)designate IPZs. Each IPZ must submit statutorily specified data
to justify (re)designation. In addition, IPZs are required to provide data for Commerce's annual report.
The 10 IPZs currently in the program are:
Auburn - Urban Center for Innovative Partnerships (2011- City of Auburn)
Bellevue - 5G Open Innovation Zone
Bothell – Bothell Biomedical Device IPZ, (2007 - City of Bothell)
Issaquah – Sports Medicine Innovation Partnership Zone, (2015 - City of Issaquah)
2020 Innovation Partnership Zone Biennial Report 2
Skagit Valley – Value-Added Agriculture, (2013 - Economic Development Alliance of Skagit County)
Snohomish – Aerospace Convergence Zone, (2007 - Economic Alliance Snohomish County)
Tri Cities – Tri Cities Research District, (2007 - Port of Benton)
Thurston – Thurston Craft Brewing and Distilling IPZ, (2015 - Thurston County)
Vancouver Camas – Applied Digital Technology Accelerator, (2013 - City of Vancouver)
Wenatchee – Central Washington Data Analytics Technology IPZ
Key Findings or Highlights
Though IPZs operate independently and involve different entities, they do share some similarities. Because
IPZs do not receive dedicated state funding, most are underfunded, understaffed, and operate on relatively
small budgets. To maintain their operations they rely on in-kind donations, private, or federal funding or grants.
Access to funding largely determines the operating model, and in some measure, the success of Washington’s
IPZs. IPZs in urban areas tend to focus more on using the designation as an economic development and
branding tool, as well as to form partnerships and gain media exposure. This is almost certainly the case of the
new 5G Open Innovation Zone. In contrast, rural IPZs focus their efforts on planning, infrastructure, recruitment
and projects where they can collaborate with other agencies, institutions and organizations at the local level.
Given the lack of steady funding, many IPZs find it difficult to fully demonstrate the effectiveness of IPZs on
their targeted clusters or geographic service areas. This report includes a summary of all of the IPZs except for
the Aerospace Convergence Zone in Snohomish, which did not submit data for this reporting period.
Recommendations
Reinstate state funding or eliminate state designation and reporting
requirements
The lack of state funding for the IPZ program has made it difficult for individual IPZs to manage the initial
designation, re-designation, and reporting processes necessary to maintain standing. Cluster development,
including active collaboration with research institutions, is a proven strategy for creating new products,
services, jobs, and export opportunities. The state should re-commit to dedicated funding or reduce the
administrative burdens imposed on IPZs.
Reimagine the IPZ program
The COVID-19 pandemic will require rebuilding the state's economy. Economists expect recovery to be slow
and uneven. The impacts across sectors, regions and demographics vary significantly. Innovation and
resilience will be vital components of any sustained recovery. IPZs foster innovation through close
collaboration with researchers, startups, investors, educators and workforce. The Department of Commerce
continues to work on securing funding for cluster acceleration activities and to support coordinated efforts on
sector development, including working with the Economic Development Administration (EDA) and by
requesting funding from the Legislature. A renewed state investment in IPZs will better position our regional
economies to rapidly innovate and gain access to new markets. A key component of this strategy will be to
fund research and re-invigorate close working relationships with higher education facilities to create more
resilient supply chains.
2020 Innovation Partnership Zone Biennial Report 3
Individual IPZ Reports
Auburn
Urban Center for Innovative Partnerships
IPZ Mission
The objective of the Auburn Urban Center for Innovative Partnerships is to support the vital economy of the city
of Auburn, our local region and the state of Washington. Encouraging the adaption of warehouse districts to
mixed use, market-affordable technology clusters and facilitating collaboration among private sector
employers, research partners, with workforce development, the IPZ will implement a multi-phased plan across
a variety of business sectors. These collaborative clusters will realize new businesses and products, expand
existing knowledge-based middle-wage jobs while creating new higher-paying employment opportunities for
the citizens of the city.
Partners
Washington State University
"The Port of Seattle is
Green River Collage
Auburn School District pleased to partner
Auburn Area Chamber of Commerce with the City of
Port of Seattle
Forrest Concepts
Auburn’s IPZ on this
Impact Bioenergy (King County Exporting Small Business great project that will
of the year 2019)
create new ideas,
Century Link
3 Phase Systems partnerships and jobs
What major accomplishment or activity have you completed here in Auburn for our
since 2018, that you would like to tell your legislators? region."
Established a business incubator within our IPZ to accelerate
Former Port of Seattle Commissioner Tom
business growth and success and decrease the likelihood of Albro
failure. The city of Auburn leased 1,556 square feet of commercial
space to house the incubator.
What funds has your IPZ received since 2018?
2019: $122,500 Contact Information:
2020: $132,500
Douglas Lein
What has been your IPZ's biggest challenge since 2018? ZONE ADMINISTRATOR
The biggest challenge has been to develop our line of
City of Auburn Office of Economic
communications with our industry clusters.
Development
Outcomes: dlein@auburnwa.gov
Dollar amount of public investments - $7.14 million
Dollar amount of private investments - $134 million Phone: 253.804.3101
Jobs Created - 650
Patents Approved - 95 (2019 and first half 2020)
2020 Innovation Partnership Zone Biennial Report 4
Bellevue
5G IPZ
IPZ Mission:
Build a global 5G and edge developer ecosystem backed by leading enterprise application and infrastructure
partners. Establish Washington as the leading ecosystem for 5G applications targeting enterprises.
Who are your partners?
University of Washington
"Fostering a strong
Washington State University
City of Bellevue developer ecosystem
Snohomish County helps further
Pacific Northwest National Laboratory
T-Mobile
accelerate adoption
Intel of 5G solutions by
Amdocs both enterprises and
Dell
VMware the telecom industry,
F5 Networks and the lab is an
Microsoft
effective way to make
What major accomplishment or activity have you completed since
2018, that you would like to tell your legislators?
this a reality."
The IPZ has worked with WSU to identify testbed locations to build - Caroline Chan, Vice President, Data
Platforms Group and general manager,
future 5G networks. We are pursuing a possible campus 5G
Network Business Incubation Division at
network partially funded by Intel and other partners. Intel
What funds has your IPZ received since 2018?
2019: N/A
2020: N/A
Contact Information:
What has been your IPZ's biggest challenge since 2018?
Standing up both efforts on limited staff and funding has Jim Brisimitzis
challenged our resources. FOUNDER AND GENERAL PARTNER
ORG: 5G Open Innovation Lab
Outcomes:
Dollar amount of public investments - N/A Email: jim@5goilab.com
Dollar amount of private investments - $2.6 million (for 5G Lab)
Phone: 425-985-7298
Jobs Created - N/A
Patents Approved - None at this time
2020 Innovation Partnership Zone Biennial Report 5
Bothell
Biomedical Device Innovation Zone
IPZ Mission
The Bothell Innovation Partnership Zone supports the growth of Washington State’s biomedical research,
development and manufacturing industry.
Who are your partners?
City of Bothell Boston Scientific
Lake Washington institute of Technology
University of Washington Bothell values our
Economic Alliance Snohomish County association with the
Life Science Washington
EKOS Corporation/Boston Scientific
Biomedical Device
Innovation Zone. The
What major accomplishment or activity have you completed
since 2018, that you would like to tell your legislators? Summits and
Hosted the 12th annual Washington State Medical Device Roundtables are a
Summit (Sept. 19, 2019) and attracted 150 attendees at
Lynnwood Convention Center. The afternoon event featured Dr. great way for device
Josh Makower, a recognized innovator and leader in the field of companies of all
medical devices.
types to network and
What funds has your IPZ received since 2018? grow.
2019: Net income from Summit - $7,000
2020: $500 sponsorship
- Lori Melkerson, Vice President of
What has been your IPZ's biggest challenge since 2018? Operations, Boston Scientific
Lack of staff and funding stream to support operations and the
Mercury Medical Device Incubator.
Contact Information:
2020 Outcomes:
Dollar amount of public investments - $0 Matt Smith
BIOMEDICAL DEVICE IPZ BOARD CHAIR
Dollar amount of private investments - $45,000 Summit revenue
Economic Alliance Snohomish County
2019 Washington State Medical Device Summit - 160 attendees
Email: MattS@economicalliancesc.org
Quarterly Medical Device Executive Roundtables - 50 attendees Phone: 425-248-4219
2020 Innovation Partnership Zone Biennial Report 6
Issaquah
Sports Medicine IPZ
IPZ Mission
Issaquah will be on the leading edge of sports medicine to provide high-quality and innovative services, which
will further incentivize research and innovation.
Who are your partners?
City of Issaquah "The Sports Medicine
Swedish Hospital
Proliance Sports Medicine Combine was the first
Virginia Mason event of its kind to
Issaquah Family Chiropractic
City MD
bring providers and
Issaquah School District services together to
King County Workforce Center highlight the depth of
UW-Washington
Bellevue College opportunity for our
Issaquah Chamber of Commerce community to find
What major accomplishment or activity have you completed since avenues toward
2018, that you would like to tell your Legislators?
The Sports Medicine IPZ Committee hosted a Sports Combine at
health and wellness.
Lake Sammamish State Park that showcased sports medicine Issaquah continues to
businesses and activities. The event on July 13, 2019 drew almost
evolve and invent new
1,000 people and 71 exhibitor booths to highlight the sports
medicine industry cluster in Issaquah. ways to engage
What funds has your IPZ received since 2018?
community."
2019: $110,000
Reid M. Kuether, MPT, OCS
PHENIX Physical Therapy & Personal
2020: $9,000* planned, resources pivoted to support broader Wellness
business community
What has been your IPZ's biggest challenge since 2018? Contact Information:
Turnover of key stakeholders that results in reduced momentum.
Jen Davis Hayes
Outcomes: ECONOMIC DEVELOPMENT MANAGER
Dollar amount of public investments - $110,000 City of Issaquah
Dollar amount of private investments - $20,000
Jenh@issaquahwa.gov
Jobs Created - Estimated 25
Patents Approved - 0 Phone: 425.837.3414
2020 Innovation Partnership Zone Biennial Report 7
Skagit Valley
Value-Added Agriculture
IPZ Mission
The Skagit Valley Value-Added Agriculture IPZ nurtures partnerships to enhance the agricultural industry,
promoting innovative approaches that combine research and technology producing new jobs and a robust
economy centered on the valley’s rich agricultural resources and heritage.
Who are your partners?
Local farmers and entrepreneurs
Washington State University “The goal of the IPZ is
The Northwest Agriculture Business Center to commercialize
The Port of Skagit
City of Mount Vernon
WSU research with
Skagit County the private sector
Skagit Valley College while developing a
The Economic Development Alliance of Skagit County
NWIRC trained workforce for
Skagit Farmers Supply these enterprises.
What major accomplishment or activity have you completed New business activity
since 2018, that you would like to tell your legislators?
will support the
The Genuine Skagit Valley program, designed to increase
consumer awareness and consumption of Skagit Valley viability of Skagit
agricultural related products and services, launched in 2019. Valley agriculture
What funds has your IPZ received since 2018? while creating quality
2019: $0 jobs for our
2020: $0
residents.”
What has been your IPZ's biggest challenge since 2018?
David Bauermeister, executive director of
Without dedicated funding or a legal structure, it is a challenge Northwest Agriculture Business Center
keeping the collaborators engaged.
Contact Information:
Outcomes: Genuine Skagit Valley
Dollar amount of public investments - $240,000
John Sternlicht
Dollar amount of private investments - $1 million CEO
Jobs Created - 1 FTE direct, 9 indirect
Patents Approved - 0 EDASC
john@skagit.org
Phone: 360.336.6114
2020 Innovation Partnership Zone Biennial Report 8
Tri-Cities
Research District
IPZ Mission
The mission of the Tri-Cities Research District and its partners is to provide access to the technical, labor, and
capital resources needed by technology companies to develop,
commercialize, and market their products globally.
"We count on the port
Who are your partners? and the Tri-Cities
PNN
WSU Research District to
Tri-Cities help this area thrive.
Columbia Basin College
City of Richland
Housing, commercial
WorkSource Development properties, and
TRIDEC businesses help
Energy Northwest
Port of Benton PNNL not only attract
City of Pasco researchers, but also
Employment Security Department
Various private company partners
keeps them happy
and wanting to stay. "
What major accomplishment or activity have you completed since
2018, that you would like to tell your legislators?
David Bauermeister, executive director of
PNNL partnership with state of Washington on the new Grid Northwest Agriculture Business Center
Storage Launchpad
Development, launch and deployment of FUSE Fund, local small
business equity fund using EDAi6 dollars to set up
Sale of development buildings for private renovation for lab and
startup space. Contact Information:
What funds has your IPZ received since 2018? MILES S. THOMAS
2019: $0
2020: $0 Port of Benton
What has been your IPZ's biggest challenge since 2018? Email: miles@portofbenton.com
Funds to support marketing and building infrastructure projects
Phone: 509-375-3060
Outcomes:
Dollar amount of public investments - $192 million
Dollar amount of private investments - $1 million
Jobs Created - Approximately 100
Patents Approved - 106 domestic; 41 foreign
2020 Innovation Partnership Zone Biennial Report 9
Thurston County
Craft Brewing, Distilling and Cider IPZ
IPZ Mission
Ensure a world-class source for craft brewed beers, ciders, and distilled spirits, made from locally grown
ingredients by independent expert producers, and distributed nationally and internationally.
Who are your partners?
City of Tumwater "The IPZ designation
South Puget Sound Community College
Thurston EDC's Center for Business and Innovation has allowed us to
WSU School of Food Science convene the critical
Sandstone Distillery
Fish Brewing Company
partners that have
Top Rung Brewing Company developed this
City of Lacey dynamic and vibrant
City of Olympia
Pacific Mountain Workforce Development Council element of our local
What major accomplishment or activity have you completed since economy. We have
2018, that you would like to tell your ;egislators? grown the sector
The food hub is now operating and ground is broken on the SW
Washington Ag Business and Innovation Park. The SPSCC Center for
exponentially in the
Craft Brewing and Distilling is fully ready to support all aspects of last several years. No
learning for craft brewing and distilling students. At the start of this
singular entity could
effort, there were no craft beverage producers in Tumwater. Now, the
list includes five fully operating breweries, one under construction, have done that -- the
and another in the design phase. IPZ was the catalyst
What funds has your IPZ received since 2018? for that growth."
2019: $0
2020: $0 John Doan, City Manager, City of Tumwater
What has been your IPZ's biggest challenge since 2018?
Sourcing of local foodstuffs will remain a high priority goal to ensure
that the system incorporates locally sourced raw materials.
Contact Information:
Outcomes:
Launched the Agriculture Innovation and Business Park Michael Cade
Created, conceived and constructed the new Craft Brewing EXECUTIVE DIRECTOR
and Distilling Center
Thurston Economic Development Council
Created the food systems hub for delivery of foodstuffs
Developed and launched new curriculum at SPSCC Email: mcade@thurstonedc.com
Dollar amount of public investments - $20 million
Phone: 360-464-6085
Dollar amount of private investments - $35 million
Jobs Created - 25
Patents Approved - 0
2020 Innovation Partnership Zone Biennial Report 10
Vancouver/Camas
Applied Digital Technology Accelerator IPZ
IPZ Mission
To grow and support tech companies located in downtown Vancouver and East Vancouver/Camas
Employment Center by cultivating partnerships between private business, education, and local governments
and agencies.
Who are your partners?
City of Vancouver “The tech industry in
City of Camas
Columbia River Economic Development Council Southwest
Clark College WSU Vancouver Washington and
Greater Portland, Inc.
Workforce SW Washington
Portland is expected
to add another 10,000
What major accomplishment or activity have you completed since jobs in the next five
2018, that you would like to tell your legislators? years or so. Part of
Hosted the 3rd Annual Downtown Tech Tour on Sept. 17, 2019. The
event provided an opportunity for job seekers, tech enthusiasts and the Tech Tour is to
students to learn about job opportunities in Clark County's growing introduce them to the
tech community to interact with eight local tech companies in
downtown Vancouver. community.”
Julia Maglione, spokesperson for the
What funds has your IPZ received since 2018? Vancouver Tech Tour
2019: $0
2020: $0
What has been your IPZ's biggest challenge since 2018? Contact Information:
Lack of dedicated funding.
Teresa Brum
Outcomes: ECONOMIC DEVELOPMENT MGR
Dollar amount of public investments - $0
City of Vancouver
Dollar amount of private investments - Not Reported Teresa.brum@cityofvancouver.us
Jobs Created - Not Reported Phone: 360.356.0250
Patents Approved - 0
2020 Innovation Partnership Zone Biennial Report 11
Wenatchee
Data Analytics Technology
IPZ Mission
Create new opportunities for innovation and partnership in data analytics technology by building relationships
between public and private entities in across several industries that will result in new research and new
products for global markets.
Who are your partners?
North Central Workforce Development Council ““The successes
Van Doren Sales within the IPZ are due
Washington State University
Wenatchee Valley College to the continued
Port of Douglas County dedication of our
Wenatchee Downtown Association
Wenatchee Valley Chamber of Commerce
partners. The
Our Valley Our Future Hydropower Research
Port of Chelan County Institute, for example,
City of Wenatchee
City of East Wenatchee has worked hard to
North Central Washington Economic Development District bring on new federal
What major accomplishment or activity have you completed since partners that provide
2018, that you would like to tell your legislators?
Sabey opened a new 135,000-square-foot data center in late 2019, and
more than 40% of the
Microsoft just purchased 111 acres for a major data center campus nation's hydroelectric
with three buildings that will be approximately 235,000 square feet power. The Chelan
each. Both facilities will feature 100% green power. Douglas County
PUD also purchased 40 acres in 2019 and began permitting and County PUD now has
building its renewable hydrogen facility. access to data from
What funds has your IPZ received since 2018? 164 plants nationwide
No direct funding given to the IPZ. to help manage
What has been your IPZ's biggest challenge since 2018? maintenance of
Maintaining momentum during COVID-19
equipment assets.
Outcomes: The potential
Dollar amount of public investments - $120K in 2019-2020
financial benefits are
Dollar amount of private investments - Sabey and Microsoft have significant."
invested approximately $3 million so far in data center development.
- Stacy Luckensmeyer, Business and
Industry Liaison, Wenatchee Valley College
Jobs Created - Unmeasured due to COVID-19
Patents Approved - Unmeasured due to COVID-19
2020 Innovation Partnership Zone Biennial Report 12
Appendix A: Innovation Partnership Zone Map
2020 Innovation Partnership Zone Biennial Report 13
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