Economic growth through diversification: the Chamber's Open Innovation initiative helps companies retool.
For advanced economics and markets like the United States, innovation is critical to global competitiveness--and most innovation comes from small businesses.[ILLUSTRATION OMITTED]
"Connecting these businesses with sources of finance and other needs to move innovation from the lab to the market is a key goal of Open Innovation, a key focus area of the Detroit Regional Chamber," said Mike Shapiro, director of regional business development for the Detroit Regional Chamber.
During the past year, the Chamber continued to work on its Open Innovation initiative, which works to diversify the Detroit region's economy beyond its traditional automotive industry. It aims to do so by connecting market-ready businesses in the region with companies in the emerging industries who hold those business development opportunities.
"The Open Innovation program has focused its efforts on the key part of any company's diversification strategy: identifying new business development opportunities," Shapiro said.
"Those who were ahead of the curve in [retooling to make products for non-automotive markets] are maintaining their revenues and profits," said Mark Tomlinson, executive director and general manager of the Society of Manufacturing Engineers, during a past interview with the Detroiter. "Those that were behind the curve, totally relying on the automotive sector, are in a catch-up mode."
Businesses looking to diversify must be "open" and able to share their ideas and innovations with other collaborators. In order for an idea to be truly innovative, it must make it to the market.
Through the Open Innovation initiative, the Chamber has worked with Detroit region-based companies to help them identify new business development opportunities in several industries, including automotive, alternative energy, medical, aerospace and defense.
Rick Jarman is president and CEO of the National Center for Manufacturing Sciences. He is optimistic about a transformation in Michigan's workforce. "People [in the traditional automotive-related businesses] understand how to engineer and make things. That capability can cross all kinds of industries."
Other key players in the state are also on board. "Our commitment to diversifying our economy ... must be strong and unwavering, because ... there simply is no other course," said Governor Jennifer Granholm, during the State of the State address.
The Chamber recently announced it has been awarded a grant from the U.S. Commerce Department's Economic Development Administration (EDA) to fund an Open Innovation initiative. Locally, the New Economy Initiative also provided matching grant money towards the effort. Look for further updates on its progress in future issues of the Detroiter.
Jennifer Baum is editor of the Detroiter
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| Title Annotation: | Economic Development |
|---|---|
| Author: | Baum, Jennifer |
| Publication: | Detroiter |
| Date: | Sep 1, 2010 |
| Words: | 412 |
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