'Innovation zones' vying for cash

State to award 5 research 'clusters' $1 million each

By ANDREA JAMES
P-I REPORTER

Next week, Washington plans to kick off one of its new economic development strategies -- the promotion of industry clusters -- by designating several geographic areas for special attention and money. Five of the so-called innovation partnership zones are likely to receive roughly $1 million in state grants to get their developments started.

The move is intended to create research parks similar to The Research Triangle Park in North Carolina, which bills itself as the largest of its kind in the U.S.

The "next big thing" could come out of one of these zones, Gov. Chris Gregoire said Thursday morning at her Life Sciences Summit in Seattle, the third such annual event.

While other states have science and research parks, Washington does not, she said.

"It can open up whole new avenues for us," she said.

Washington will hold an annual competition for the designation. To qualify, an area must have a globally competitive private company in it, along with a research institution and some sort of workplace training.

Earlier this year, the Legislature enacted a law to begin the program. Among other things, the law says that the zones "are eligible for funds and other resources as provided by the Legislature or at the discretion of the governor."

On Oct. 1 of each year, the director of the Community, Trade and Economic Development Department will choose which zones qualify, the law says. The designation lasts four years, and then the zone must reapply.

This year, a $5 million allocation has been tucked into the capital budget to be awarded to no more than five of the zones, according to CTED. Fifteen regions around the state have applied for the designation, and some may qualify for the designation but not receive funds.

"All over the world, states and countries are trying to create that kind of dynamic that is present here. In my travels I see it, I hear about it," Gregoire said. She said she tells potential competitors, "It's in our water. You can't have it."

But research parks are needed to better help the state compete, she said. The program doesn't just target the life science industry, though it is suited to it, she added.

Public entities serve as zone administrators, and coordinate the development of the park. The city of Seattle, for example, submitted two zone applications.

The applications had to specify that the organizations within a geographic area are cooperating and show a plan to create jobs and develop products, said Julie Anderson, a senior policy adviser for CTED.

While not all zones will win money, those that do can spend it on shared infrastructure, telecommunications, equipment or construction, Anderson said. Up to 10 percent of the money can be spent on administrative costs.

Juli Wilkerson, current CTED director, will make the choices based on the applications and input from an advisory team, Anderson said.

"We do want an innovation partnership zone designation to carry value -- kind of like a Good Housekeeping seal of approval," she said.

"The idea is if you put together the essential ingredients ... and you put them in a geographically well-defined area, you can stimulate a cluster of industries that's knowledge-based where it otherwise wouldn't exist."