Dear Team: Thanks to Matt Nemerson for his fantastic presentation this morning on his view of Technology, Connecticut, Norwich, Regionalism, Government and Economic Development. The PowerPoint presentation he gave is attached as a PDF (I wish we had a recording of his discussion as well!). Like many of us, Matt is solely responsible for the assembly of the high quality work of others (as you all know, I subscribe to that approach myself!) and he has given us permission to use his presentation as long as credit for the content is given to the various sources quoted. For me, the take away from today is a reinvigorated examination of the work we have been doing while adding some clarity to a number of aspects of our plan. I especially felt the reinforcement of both the value and scale of employment and education in the region as a critical element to the future. Additionally, we need that value proposition in his opening and closing slides to be better vetted and defined for Norwich. I suggest that is the basis of our Community Branding which we will be wrapping this entire effort around for a significant time to come. Thanks Matt for putting in our face on of the first questions to be addressed! After Matt’s presentation this morning there was a lively exchange which I have not attempted to capture. If you were unable to attend or had to leave before the conclusion, please ask others about their impressions and their unique take aways. Matt is available for future efforts and I would suggest we perhaps look to a fall program in which we make use of his knowledge and presentation skills to assist us in furthering our mission with both our public as well as across our region. Perhaps we do so in conjunction with SeCTer or the Chambers. In case you missed it, Matt asked the following key questions to help us make a concerted effort to define ourselves and focus our efforts:  What is Norwich’s competitive advantage?  What could state do to make Norwich more competitive?  What is your natural region?  What would your role be a community in 10 years if all your wishes came true? I think it sage advice and recommend we all make an effort to think about it and bring suggestions forward in a future focused discussion. Thank you all! Bob --- Robert Mills l Executive Director Please NOTE my NEW Email Address bobmills@askncdc.com 77 Main Street, Norwich CT 06360 P: 860.887.6964 l F: 860.887.3438 Visit our new website: www.askncdc.com Norwich Community Development Corporation (NCDC) is a community of fellow business professionals private, not-for-profit with 45 Years of creative work history. NCDC, led by business and civic leaders, has four decades of experience in bringing life to business.

1. Thinking about
Innovation & Job Growth
(in Connecticut, Norwich and
other places too)
Matthew Nemerson
President & CEO of the Connecticut Technology Council
Wednesday May 26, 2010
7:30 AM
Norwich

2. My background…
Interests:
•Computers, Architecture, History
•Building Community
•Leveraging Technology
•Understandng Economic Growth
1974 – Amity Regional High School
(Woodbridge – a local boy)
1978 – Columbia College
1981 – Yale School of Management
1982 – Publisher - Washington Monthly
1983 – Started - Science Park at Yale
1986 – Real Estate developer
1987 – President Greater New Haven
Chamber of Commerce
2000 – COO - Netkey Kiosk Software
2003 – President - Connecticut Technology
Council

3. What is the CTC?
350 member state-wide
business trade association
◦ 2,500 company community
◦ 10% to 15% of state workforce
Promote Policies > Runs Events Programs
> Help connect firms and people
Build a community and set of ideas
◦ Innovation, growth, helping start-ups, more
STEM
Message: be global, be competitive and be
part of the future

4. Today…
Identifying the types of business sectors
that can thrive in eastern Connecticut;
Working with CTC in growing technology
companies;
Ideas and action steps to further refine
Norwich’s economic development
opportunities

5. Discussion
What is Norwich’s competitive
advantage?
What could state do to make Norwich
more competitive?
What is your natural region?
What would your role be a community
in 10 years if all your wishes came
true?

6. Strategy K.1. Develop ongoing process to coordinate economic development
Institute a coordinated process for reviewing and promoting projects developers and
attract new investors in Norwich
Institute process for project planning, conceptualization, packaging, and
implementation
Monitor progress on regular periodic intervals
Hold all partners accountable
Strategy K.2. Develop local capacity to collect and publish data to track and
support
Establish baseline measures of the City’s current economic status that will be
updated to measure progress
Establish baseline measures which inform economic development initiatives
Develop an environment where Measures of Success are identified and
systematically reported
Strategy K.3. Develop parcel-based information system to modernize City
operations
Connect and integrate geographic databases of the City and NPU to support work of
city departments
Strategy K.4. Develop economic development component of 2012 Plan
Refine this plan for inclusion in the Plan of Conservation and Development
Benchmark Norwich against successful cities of similar size and age; learn from their
successes
Use road trips to visit cities and meet with economic development entities

7. Many ways to approach
thinking about growth…
Present vs. Future (ideas)
Systems vs. Projects (focus)
Superficial vs. Real (data)
Change vs. Destiny (control)
Actor vs. Team (complexity)
Politics vs. Clarity (power)
Here vs. Everywhere (scale)
Local vs. Regional vs. Global
(flatness)

9. Traditional: what drives growth?
A problem to solve
Great ideas
Self-interest
Expectation of return on investments
Available capital
Available labor
Appropriate infrastructure
Facile political leadership

10. Innovation Eco-system
Innovation Eco-system
Government
Incentives Venture
Later state Jobs >
Early Stage
Technology Growth
Seed
Transfer Angel
Corporate Investors
Spin Outs SBIR Incubators
Innovation
University
Validation Accelerators
R&D
Skilled
Workers Networks
Entrepreneurs Students Associations
Mentors
Grants
Infrastructure – Global connections
Image – Global perceptions
10

11. New Job grow comes from…
New Job grow comes from…
Intellectual Property
and
Technology Transfer
Universities foster
new companies
through
start-ups & licensing
Existing Industry
Competitive Starting
Advantage
Growth New Companies
R&D, spin-outs, Created by
strategic connections & entrepreneurs, angels
investments
11

12. Patents per capital: We are and have been the
center of innovation (1995-2000 data)

13. A survey says tech companies are staying in
Connecticut but not strong supporters…
13

14. But Data is uneven across categories
Connecticut is 7th in “Tech State” rankings by
ITF/Kauffman

15. Connecticut is 7th in “Tech State” rankings by
ITF/Kauffman

16. Scores low in VC $, non-industry R&D, Entrepreneurial
Activity

17. Scores low in VC $, non-industry R&D, Entrepreneurial
Activity

18. Connecticut’s trend problem…
Rank Change
2005 2006 2005 2006
Entrepreneurial & Business Vitality 9 11 42 44
Financial & Capital Resources 13 14 45 42
Technology Strengths 2 2 36 36
Human Capital Resources 5 7 35 41
Global Links 7 12 29 37
OVERALL 7 8 43 44

19. CT 20-Yr Moving Avg, Abs Change
(1000s)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Dec-88
England
Oct-89
Aug-90
Jun-91
Apr-92
in job growth
Feb-93
Dec-93
Oct-94
Long-term decline
Aug-95
Jun-96
Apr-97
Feb-98
Dec-98
Source: U.S. Bureau of Labor Statistics; Calculations by CERC
Oct-99
Aug-00
Jun-01
Apr-02
Connecticut
Feb-03
Dec-02
Jobs dropping quicker than across New
New England
Oct-04
Aug-05
0
2
4
6
8
10
12
14
16
18
20
New England 20-Yr Moving Avg, Abs
Change (1000s)

20. Cluster Portfolio Growth-Share Matrix:
Relative Position of Various Clusters
Growth-Share Matrix for Connecticut's Clusters
6.0
Aerospace
5.0
Location Quotient
4.0
Insurance &
3.0 Financial
Services
IT
Metal Tourism
Medical Health
2.0 Manufacturing Bioscience
Devices Plans
1.0
Plastics Creative
Industries Agriculture Maritime
0.0
-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0%
Average Annual Employment Growth, 1994-2004
20 4

22. WSJ : Tech leads Jobs recovery
4/16/2010
Google profits up, 1000 new workers
now, 1,000 more soon (Internet ads)
Oracle, 2,000 new for SUN
AMD profits up 37%
Cisco, 2,000 new hires in 2010
Twitter, 170 new hires in May
LinkedIn, 150 this year
Dice reports: 10,000 more listings than
a year ago

23. Connecticut jobs picture is
turning

24. Is “now” different for policy makes?
“What if the crisis of 2008 represents something
more fundamental than a deep recession. What if it is
telling us that the whole growth model we created
over the past 50 years is unsustainable economically
and ecologically and that 2008 was when we hit the
wall – when Mother Nature and the market both said,
no more.” NYT columnist Tom Friedman
Political challenges in 2010
Health reform
Global changes in growth
◦ New world versus old
◦ IP versus Production
Debt as % of GDP
Climate Change

25. Jobs and Geography

26. Regional Business Growth Varies in US
% U.S. Establishment
Establishments
Region Establishments Growth, 1989-2004
1989 2004 1989 2004 # %
U.S. 6,107,413 7,387,724 100.0% 100.0% 1,280,311 21.0%
Northeast 1,332,756 1,454,736 21.8% 19.7% 121,980 9.2%
Midwest 1,426,941 1,675,608 23.4% 22.7% 248,667 17.4%
South 1,998,066 2,536,867 32.7% 34.3% 538,801 27.0%
West 1,329,672 1,700,995 21.8% 23.0% 371,323 27.9%
Connecticut 94,178 93,011 1.5% 1.3% -1,167 -1.2%
Source: U.S. Census

27. Geographical opportunity…
Geographical opportunity…
opportunity…
opportunity…
Map: University of Pennsylvania 27

28. Source: Michael Gallis

29. Gallis Corridor slide

30. Projected growth “winners” by 2050
Projected growth “winners” by 2050
Map: University of Pennsylvania 30

32. A new way
of looking
at the
coasts:
Northeast
Over
California

33. Looked at from labor markets
Looked at from labor markets

34. Emerging U.S. Mega-Regions
Emerging U.S. Mega-Regions
Map: University of Pennsylvania 34

35. And viewed by cluster growth

36. World population

37. Journal citations 2008

38. Patents files

39. Big Trends…

40. Wired 40 in 2008
1 Google | 1 (2007)
2 Apple | 2
3 Genentech | 4
4 Samsung | 3
5 News Corp. | 9
6 Nintendo new
7 Salesforce.com | 15
8 Cisco | 12
9 General Electric | 8
10 Nvidia | 21
Off from 2005
4.Amazon 5. Yahoo! 6. EA 8. Toyota 9. Infosys 10.
eBay

41. Technology Trends
Gadgets and life style
Connectivity (wifi & cellular) 4G
Pricing issues
Convergence of communications
Displays (size, type, 3D)
Flash memory
= (E readers)
DYI IT and comsumerization of
Enterprise systems
◦ ChallengePost, topcoder and Tongal

42. Technology Trends
Platforms & Structure
FCC ruling
Cloud
Virtualization
Open Source
Web 2.0
◦ Google
◦ Facebook
◦ Craig’s List

43. Technology Trends
Larger & Energy Tech
Distributed energy
◦ Mini fuel cells
Carbon Footprint
Health Care IT (Combining with devices)
Alternative energy
Electric Cars
High Speed Rail
Light Rail
China & India

44. Place Trends
Sustainable
Tax Base & budget
Broad demographics
Two job commute sheds
Opportunities for children
Multi generational zoning
Stable weather
Water
Respected government

45. There are limits to all
ideas

46. Discussion
What is Norwich’s competitive
advantage?
What could state do to make Norwich
more competitive?
What is your natural region?
What would your role be a community
in 10 years if all your wishes came
true?

47. Questions and discussions
Matthew Nemerson
President & CEO CTC
mnemerson@ct.org
860 289-0878 x333

48. CONNECTICUT RANKS NEAR THE BOTTOM AMONGST THE 10 LEADING TECHNOLOGY
Connecticut is bottom rung of the top
STATES …
states… BENCHMARKS
Metrics Expenses ($ Expenses ($ Percentage Percentage Percentage Engineering Business Rapidly VC
Millions) Millions) of total US of total US of High Degrees incubators Growing Investments
per patent per start-up patents patents School awarded per 10,000 firms i.e. ($ Millions)
issued to initiated granted grantedDelt seniors per 100,000 business 20% YoY
state from state a vs '95 planning to residents establishme for 5 years
institutions institutions major in nts
Computer,
Engineering
or
Information
Science
Period 1995-2004 1995-2004 2005 vs. 1995 2005 2005 2005 2000-2005 2005
CA $ 6.7 $ 72.6 23.0% 6.8% 12% 44 1.3 379 $ 10,633
CT $ 11.1 $ 99.0 1.9% -0.9% 9% 29 0.9 29 $ 186
IL $ 11.4 $ 110.4 4.0% -1.3% 13% 37 0.9 124 $ 293
MA $ 7.0 $ 68.2 4.1% 0.1% 11% 76 1.9 145 $ 2,455
MN $ 8.9 $ 89.1 3.2% 0.2% 14% 26 1.8 65 $ 231
NC $ 9.1 $ 78.4 2.2% 0.4% 13% 31 1.9 44 $ 472
NJ $ 6.6 $ 62.4 3.7% -1.3% 10% 37 0.7 115 $ 947
NY $ 8.2 $ 92.9 6.8% -1.7% 10% 48 1.7 154 $ 1,074
PA $ 9.8 $ 77.4 3.4% -1.3% 10% 51 1.8 124 $ 470
VA $ 9.0 $ 51.1 1.3% -0.2% 14% 51 2.2 182 $ 413
CT Rank 9 9 9 6 10 9 8 10 10
Source: Assoc. of Assoc. of US Patent & US Patent & The College American Commonweal Inc. Magazine PwC/ NVCA/
Technology Technology Trademark Trademark Board Assoc of th of MA MoneyTree
Managers Managers Office Office Engineering Survey
Societies
Source: John Adams Innovation Institute 48

49. … AND EMPLOYMENT TRENDS, AND INVESTMENTS IN CRITICAL CLUSTERS IS
Did not grow as well compared to peer
DISCOURAGING …
states… BENCHMARKS
Cluster Employment 2004-2005
(% change)
Clusters MA CA CT IL MN NJ NY NC PA VA
Computer & Comm Hardware (0.4) (1.6) (3.3) (2.3) (1.2) (1.4) (5.2) (0.8) (1.3) 4.5
Defense Mfg & Instrument. (1.8) (0.3) 0.3 0.8 1.9 - 3.3 6.2 1.0 4.1
Diversified Ind. Support (4.7) (1.0) (1.5) (1.0) 0.2 (1.6) (2.9) (1.0) (1.2) 1.6
Financial Services (0.3) 1.8 - 0.3 1.4 1.1 2.0 2.2 (0.2) 0.5
Healthcare Technology (0.7) 1.7 (0.3) (2.2) 4.3 (2.9) (0.7) 2.1 (0.5) 1.5
Sci, Tech & Mgt Services 5.4 7.0 0.2 4.1 1.7 4.2 2.2 6.4 5.5 14.1
Business Services 1.5 3.1 - 2.1 (0.9) (0.3) 1.7 2.9 0.7 3.9
Post Secondary Education - 4.8 2.9 5.1 2.7 (0.1) 1.1 1.4 3.3 3.8
Software & Comm. Services 1.9 0.4 (1.1) (0.3) (0.9) 0.2 (0.3) 2.5 (0.3) (0.9)
Textiles & Apparel (4.9) (6.6) (7.7) (3.7) (3.1) (10.4) (9.8) (10.8) (11.2) (9.6)
Source: Moody's Economy.com
CT Investments
($ Millions)
Investment Amount
No. of Investments
Source: PricewaterhouseCoopers, National Venture Capital Association 49

50. What to do?

51. Intra and Entrepreneurs' POV
Issues
Customer service
Networked problem solving
Capturing value
Speed
Corporate or Boot Strap
Skills
Pattern recognition
Expert Thinking – forecasting with
perspective
Complex Communications – making your
point

52. Case studies of some local
Gazelles
Tangoe – www.tangoe.com
$50m in five years
Reduce Costs and Take Control of Your Global
Communications
Tangoe delivers software and technology-enabled services to
help global organizations manage, understand, and control
their fixed and mobile communications assets and costs.
Idea: Analyze phone bills
Found: Companies wanted to out source everything from
land lines to PDA management

53. Case studies of some local
Gazelles
HigherOne – www.Higher.com
$75m in ten years
Our main idea was to expand the purchasing power of our
college ID card so it could be accepted everywhere - not just
on campus. We decided to create a product based on
combining a college ID card with a Debit MasterCard®; this
would help students get their refunds from their school faster,
offer more choices in how to receive their money and finally
save time and money for colleges and universities.
Idea: College is Debit Card has scholarship money
Found: College bursar offices wanted to outsource many
electronic banking issues, faculty and staff functions too.

54. Which leads to TBED Initiatives
Supporting Tech Transfer in universities and commercialization
◦ Ohio: $500m over 7 years for R&D and commercialization
◦ New Jersey: $250m for Cancer and Stem cell research R&D and an institute
◦ Michigan:$200m grants for bio, energy, materials, security
◦ Maine: $200m R&D and tech transfer – bio, energy
◦ Florida:$142m for R&D, incubators, scholars, aerospace
◦ New Mexico: $120m R&D – super comp, stem, aerospace
◦ Penn: $75m for incubators and assistance
◦ Georgia: $33m for GA Research Alliance activities
Supporting tech bricks and mortar to lure major construction
◦ NYS: $600m grant for $3.2b AMD chip factory
◦ Florida: $500m grant for Scripps Biotech institute
Supporting a healthy innovation environment
◦ Penn: $120m new money for tech training and tuitions
◦ Mississippi: $28m
◦ Maine: $20m for partnerships, training & clusters
◦ Ohio: $15m to tech assistance and support for start-ups
◦ Oklahoma: $10m, including $5m for seed
◦ New Jersey:$8m for assistance programs

55. Wired 40 2005
1. Apple
2. Google
3. Samsumg
4.Amazon
5. Yahoo!
6. EA
7. Genentech
8. Toyota
9. Infosys Technologies 10. eBay 11. SAP 12. Pixar 13. Cisco
14. IBM 15. Netflix 16. Dell 17. General Electric 18.
Medtronic 19. Intel 20. Salesforce.com 21. Vodafone 22.
Flextronics 23. EMC 24. Nvidia 25. Jetblue 26. FedEx 27.
Monsanto 28. Microsoft 29. Nokia 30. Costco 31. Comcast
32. Pfizer 33. Li &Fung 34. Taiwan Semiconductor 35. Gen-
probe 36. Citigroup 37. L-3 Communications 38. Ameritrade
39. Exelon 40. BP