By nearly any measure, California is the national leader in innovation. The Golden State has more scientists, engineers and researchers—and spends more on research and development—than any other state. Supported by some of the world’s finest universities and research institutions, California is responsible for one in four patents, attracts half of all venture capital and provides 20 percent of al technology jobs in the United States. From our world-leading stem cell research initiative to renewable energy and alternative fuels, California is the birthplace of innovation. To maintain California’s leadership in the fastest growing fields, Governor Schwarzenegger is proposing $253.4 million in the 2007-08 budget to support research at the University of California, and is unveiling his Strategic Research and Innovation Initiative, which will provide $95 million to major projects in three key sectors: “clean” technology, biotechnology and nanotechnology.
Governor Schwarzenegger’s Proposal
Helios Project
The Governor’s budget provides $30 million in lease revenue bonds for the Helios Project, a groundbreaking initiative by the University of California’s Lawrence Berkeley National Laboratory to create sustainable, carbon-neutral sources of energy. The Helios Project will produce the next generation of super-efficient solar energy technology that will help reduce greenhouse gases and our oil dependency. The Helios Project’s four goals are to 1) generate clean sustainable alternatives to hydrocarbon fuels; 2) develop new energy sources; 3) improve energy conservation; and 4) reduce greenhouse gas emissions. The $30 million will be used to build a new energy/nanotechnology research building for the Helios Project.
Energy Biosciences Institute
The Governor’s budget provides $40 million in lease revenue bonds to the University of California for UC Berkeley or UC San Diego in the event that either wins a global competition for the British Petroleum (BP) Energy Biosciences Institute grant. These campuses were among only five universities in the world that were invited to compete for this $500 million grant to build and operate an Energy Biosciences Institute, which will be dedicated to long-term research into the production of alternative fuels. The Institute will focus on converting biomass materials into fuels, converting fossil fuels to energy with less environmental damage and maximizing oil extraction from existing wells in environmentally sensitive ways. To accelerate California’s movement towards a clean fuel future, the University of California will dovetail the Institute’s work with the Helios Project.
California Centers for Science and Innovation
The Governor’s budget provides $19.8 million (General Fund) for the California Institutes for Science and Innovation (CISI). CISI is a multidisciplinary research effort by the University of California—working in partnership with private companies—in the areas of information technology, biomedical research and nanotechnology. With their express goal of sustaining California’s global growth and competitiveness, these pioneering institutes bring the world’s finest researchers together to find solutions to our greatest medical and technological challenges and position California at the forefront of research, innovation and jobs. Since inception, they have generated more than $1 billion from private and federal sources, dwarfing the state’s $400 million initial investment. Charles M. Vest, President Emeritus of the Massachusetts Institute of Technology and president-elect of the National Academy of Engineering said the San Diego Center “has collected the best team of research professionals anywhere in the country.” The $19.8 million will be used for the institutes’ operating costs.
Petascale Supercomputer
The University of California leads the world in high-speed computer technology and is poised to debut the next generation of supercomputers. The Governor’s budget provides the first $5 million increment in state matching funds to enhance the University of California’s bid to build a $200 million Petascale computer. Lawrence Livermore National Laboratory, Lawrence Berkeley National Laboratory and UC San Diego are in the running for the Petascale computer. The Petascale computer, named for the speed at which it can process information, will be the most powerful computer in the world. It will provide an enormous competitive advantage to California businesses and universities, helping to attract the best students and faculty from around the world. The Governor’s commitment of these funds will significantly enhance the University of California’s bid for this groundbreaking project.
On the Record
TechNet President and CEO: Policies “Must” Promote Innovation, Competitiveness. "There's no doubt that America today is the global leader in innovation. But it's increasingly clear that this status is not a given and we must enact policies to remain on top. Our global competitors are rapidly catching up to us by investing in education, encouraging entrepreneurship, and making next generation infrastructure a priority. Our policies must further promote innovation-driven global competitiveness, led by a renewed investment in education, research and development, entrepreneurship and next generation infrastructure." - Rick White, President and CEO of TechNet, TechNet Press Release, December 1, 2004.
UC Chancellor: Commitment to 21st Century Infrastructure Needed. "California's political leaders understand the need to invest in roads, bridges and dams. What we need is the same commitment to invest in the building blocks of economic growth in the 21st century—research and development, a high-tech workforce, and a business climate that fosters innovation." - Robert Birgeneau, Chancellor of the University of California, Berkeley, California Competes Press Release, October 11, 2006.
VeriSign CEO: California Must Take “Every Step Necessary.” “California today is the world's leader in innovation but we must take every step necessary to make sure we stay on top in this increasingly competitive global economy." - Stratton Sclavos, Chairman, President and CEO of VeriSign, California Competes Press Release, October 11, 2006.
Renaissance Technologies President: Support For Solar Research “A Must”: “In the long run, the only viable, clean, and essentially limitless source of energy is solar, and the obvious and potentially ubiquitous application is electrical generation. The problem is cost. While much work, both government sponsored and private, has been done on cost reduction, a great deal more is necessary. Again, government sponsored research in this area is a must. An example is the Helios Project at the Lawrence Berkeley National Laboratory.” - James H. Simons, President of Renaissance Technologies Corporation, Testimony at the Committee on House Education and the Workforce, April 6, 2006.
Just the Facts
California Generates Majority of Biotech Revenues. California is the birthplace of the U.S. biotechnology industry and home to the largest share of the industry. The state accounts for 47 percent of national R&D spending on biotechnology and generates 53 percent of the nation’s biotech revenues. Source: Junfu Zhang and Nikesh Patel, “The Dynamics of California’s Biotechnology Industry,” Public Policy Institute of California, April 2005.
California Receives World’s Most VC Funding. In 2005, California received more venture capital funding than any other area in the world. The Golden State received nearly $10 billion in VC funding ($7.7 billion in the Bay Area alone), almost 50 percent of total U.S. VC funding and almost one-third of worldwide VC investments. Source: Ernst & Young, “Transition: Global Venture Capital Insights Report,” 2006.
California Leads Nation in Innovation. Thirteen of the 20 most inventive towns in America are in California, and 10 of those are in Silicon Valley. San Jose leads the list with 3,867 utility patents filed in 2005, and number two is Sunnyvale, at 1,881 utility patents. Source: Reed Albergotti, "The Most Inventive Towns in America," Wall Street Journal, July 22-23, 2006.
Most Clean Tech Investment Is In California. California’s cleantech industry continued its growth in 2005, attracting $484 million in venture capital to the State in 57 cleantech deals—a 36 percent increase in funding over 2004. Forty percent of that capital went to startups in the energy generation and energy efficiency sectors.Source: Patrick R. Burtis, “Creating CleanTech Clusters: 2006 Update,” Environmental Entrepreneurs, May 2006.
Governor’s Policies Projected To Generate Millions In State Revenue. The Governor’s greenhouse gas emissions reductions goals can increase Gross State Product by about $60 billion and create over 20,000 new jobs, mainly through developing California’s burgeoning cleantech industry. Source: “Managing Greenhouse Gas Emissions In California,” The California Climate Change Center at UC Berkeley, January 2006.
CISI Attracts Substantial Private-Sector Investment. Research and Development funding to just one of the CISI’s, the California Nanosystems Institute, reached $300 million within five years of opening. Another institute, CITRIS, has received over $300 million in private and federal funding, including over $70 million in investments from over 100 companies. Source: California Centers for Science and Innovation, 2006.
