In the late 1990’s business and academic leaders spanning Washington state envisioned a thriving innovation-based economy. At the time, the Washington state economy was rooted in manufacturing (primarily airplanes), and agriculture (wheat, cherries, apples), while grappling with the decline of the timber and fishing industries due to the spotted owl’s endangered species status.
The mission, then as now, was to foster and sustain a vibrant innovation economy that benefits all residents. They believed, as we still do, that a successful innovation economy rests on three key pillars: a skilled and adaptable workforce, abundant innovation capacity, and a strong entrepreneurial climate.
Why Is This Important?
The technology sector alone forms a cornerstone of Washington’s economy, accounting for 6% of total employment and 22% of economic output. It directly employs almost 370,000 people and supports nearly 1.5 million direct and indirect jobs. Additionally, it contributes about $4 billion in state taxes through direct tax payments and household spending. Including the rest of the innovation economy – aerospace, life sciences, and clean tech – the innovation economy represents nearly 10% of total employment. This thriving sector not only drives growth but proves resilient during economic downturns.
Beyond the Numbers: How Innovation Shapes Our Lives
Beyond pure economics, there are numerous reasons to support an innovation economy: advancements in medicine that can predict, prevent, and treat disease; planetary exploration that teaches us more about life on Earth; more climate-friendly fuels for planes; and new software and services that enhance productivity and leisure.
The Challenge of Sustaining Growth
It is true that Washington state is in an enviable position in the U.S. for its innovation economy. For example, we will have approximately 1.5 million job openings between now and 2032. That’s a projected growth rate about 6 times higher than the national average. We should celebrate that growth and make sure to protect the sectors that are driving that incredible rate of growth. Sacrificing the long-term economic activity driven by our highly successful industries, whether that’s tech, clean energy, aerospace, or life sciences, on the altar of closing a budget gap will get us nowhere in the long run.
The Power of Ecosystem Interconnectivity
Large companies and universities are vital to maintaining the pillars of a skilled and adaptable workforce, abundant innovation capacity, and a strong entrepreneurial ecosystem. Our large companies are in diverse fields – Microsoft and Amazon anchor our tech sector, Boeing supports an aerospace ecosystem of 1700 aerospace companies, Helion, Zap, and Avalanche mean that we are the fusion capital of the world, and we have a robust life sciences sector. Our universities are large and diverse as well – the University of WA is the #1 public recipient of federal research dollars, Northeastern University – Seattle has been here for 10 years and is a “very high research activity” university along with UW and WSU, WSU boasts world leading research in agriculture and veterinary science, and Seattle University recently earned the new Research University designation.
Protecting this advantageous position requires recognizing the interconnectedness of the ecosystem. While the pillars undergirding a successful innovation economy – a skilled and adaptable workforce, abundant innovation capacity, and a strong entrepreneurial climate – each have their own unique attributes, they are most powerful when braided together, each one working to support, reinforce, and grow the others.
Nowhere is this more apparent than the recently released Innovate State project. Click on a startup, let’s say Ridwell (who doesn’t have one of those white boxes outside their door) – it has founders educated at the University of Washington, professional experience at Microsoft and Google, and funded by Madrona Venture Partners. Twinstrand Biosciences is connected to UW, Madrona, Vulcan, and Amazon. Inspectify’s Washington roots include Seattle University, Amazon, and Microsoft. These are just three examples of the 528 on the map; 528 companies that include Remitly, OctoAI (recently acquired by Nvidia), and Helion.
Collaboration: The Key to the Future
The Technology Alliance is proud to have been a vital catalyst for the development and expansion of this innovation ecosystem over the last 25+ years. By advocating for policies that foster a favorable business environment, supporting educational institutions at all levels, and identifying and addressing gaps in resources, the TA has played a significant role in driving the state’s economic transformation.
Looking forward, the TA continues to adapt and evolve to meet the changing landscape of the innovation economy. By promoting collaboration between industry, academia, and government, the TA aims to ensure that Washington state remains at the forefront of innovation and continues to provide opportunities for the prosperity and well-being of all its residents. But we can’t do it alone, you can’t force collaboration. We need all the players – state elected officials, the private sector, and the academic/research institutions – to recognize and support the interdependence that is the real engine of our economy.
