03/06/2018 03:15 PM House STATE AFFAIRS

                SCR 10-ALASKA YEAR OF INNOVATION                                                                            
                                                                                                                              
3:37:46 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would  be  CS  FOR  SENATE  CONCURRENT  RESOLUTION  NO.  10(STA),                                                               
Proclaiming 2019 to be the Year of Innovation in Alaska.                                                                        
                                                                                                                                
3:38:35 PM                                                                                                                    
                                                                                                                                
DAKOTA   ORM,  Staff,   Senator   Mia   Costello,  Alaska   State                                                               
Legislature,  on behalf  of Senator  Costello,  prime sponsor  of                                                               
CSSCR  10(STA),  stated,  "Introduced  by  Robert  Tucker  [chief                                                               
executive  officer (CEO),  Innovation Resource  Consulting Group,                                                               
Santa  Barbara,  California] last  year  [2017]  at the  [Alaska]                                                               
Innovation  Summit, SCR  10 would  proclaim 2019  as the  year of                                                               
innovation  in   Alaska."    She   said  that   this  designation                                                               
spotlights a  crucial need in  the state and highlights  the work                                                               
being  done  by the  legislature  and  Alaskans statewide.    She                                                               
relayed  that innovation  can help  address  all challenges  that                                                               
Alaska  faces, whether  it be  harnessing  technology or  growing                                                               
economic diversification.                                                                                                       
                                                                                                                                
MS.  ORM continued  by  saying that  Alaskans  are innovators  by                                                               
tradition  and  necessity.    She  maintained  that  there  is  a                                                               
pioneering  spirit   in  Alaska  that  requires   innovation  and                                                               
adaptation; it existed  among the founders that  helped build our                                                               
state and  encompasses public policy  and how Alaska  manages its                                                               
resources.                                                                                                                      
                                                                                                                                
MS. ORM maintained that declaring  a year of innovation would not                                                               
only  spur conversations  but also  allow  organizations to  take                                                               
advantage  of that  declaration in  various ways.   She  asserted                                                               
that  it  would recognize  innovation  already  occurring in  the                                                               
state from the  university level to groups such  as those engaged                                                               
in  LEGO  robotics  and Lemonade  Day.   She offered  that Alaska                                                               
constructs a  culture in which innovation,  entrepreneurship, and                                                               
"out  of the  box  thinking"  is encouraged  and  accepted.   She                                                               
maintained that declaring  a year of innovation would  aid in the                                                               
growth of this culture, as well as Alaska's overall economy.                                                                    
                                                                                                                                
3:39:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK asked, "Why 2019?"                                                                                          
                                                                                                                                
MS. ORM replied that 2019 was  chosen to allow for an entire year                                                               
to "really enjoy and prosper in innovation."                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  mentioned  that  sexual  assault  awareness                                                               
resolutions are proposed year after year.   He asked if it is the                                                               
intent  of the  sponsor that  resolutions like  CSSCR 10(STA)  be                                                               
introduced every year, or if this would be just for one year.                                                                   
                                                                                                                                
3:40:57 PM                                                                                                                    
                                                                                                                                
SENATOR MIA  COSTELLO, Alaska  State Legislature,  responded that                                                               
as  the  sponsor  of  CSSCR  10(STA) and  because  she  has  made                                                               
innovation and  entrepreneurship the hallmark of  her legislative                                                               
career,  her intent  is  to proclaim  only 2019  as  the year  of                                                               
innovation in Alaska.  She  expressed her belief that proclaiming                                                               
a year of  innovation would have positive results in  the form of                                                               
startup companies  ("startups") and new  jobs.  She said  that it                                                               
is her intent to designate 2019  and is open to other years being                                                               
designated.                                                                                                                     
                                                                                                                                
REPRESENTATIVE   TUCK  expressed   his   appreciation  that   the                                                               
University   of  Alaska   (UA)  is   included  in   the  proposed                                                               
resolution.   He stated that  Alaska is  49th or 50th  in patents                                                               
among  the [states].   He  relayed that  Texas invested  in their                                                               
universities   to   do   research   and   development   for   its                                                               
petrochemical  industry.   Texas  set  up  the [Texas]  Materials                                                               
Institute (TMI)  so that  once the  students learned  the science                                                               
and technologies of  the industry, they were able  to develop the                                                               
machine    tool     technologies    and     applications,    then                                                               
entrepreneurially  apply them  to the  industry.   He added  that                                                               
Silicon Valley heavily invested  in California's universities for                                                               
high-technology ("high-tech") innovation and development.                                                                       
                                                                                                                                
REPRESENTATIVE TUCK expressed his belief  that Alaska has a great                                                               
deal  of underutilized  potential;  the university  could play  a                                                               
significant role;  and university  research dollars  can leverage                                                               
federal funds.  He referred to page 2, lines 26-28, which read,                                                                 
                                                                                                                                
     WHEREAS   university   research  contributes   to   the                                                                    
     development       of       intellectual       property,                                                                    
     interdisciplinary   entrepreneurial   programming   and                                                                    
     education, and  effective technology transfer and  is a                                                                    
     vital component of an effective innovation ecosystem;                                                                      
                                                                                                                                
REPRESENTATIVE TUCK referred to page 3, lines 6-8, which read,                                                                  
                                                                                                                                
     WHEREAS   20   percent   of   innovations   come   from                                                                    
     collaborations between  multiple institutions,  half of                                                                    
     which are  public-private partnerships  between private                                                                    
       companies and universities or government research                                                                        
     labs;                                                                                                                      
                                                                                                                                
REPRESENTATIVE   TUCK  expressed   his  appreciation   that  this                                                               
language was included in the proposed innovation resolution.                                                                    
                                                                                                                                
3:43:21 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS  stated  that   he  supports  the  proposed                                                               
resolution.   It is consistent  with trends in Alaska,  which are                                                               
needed  more than  ever with  the current  fiscal situation.   He                                                               
offered examples  of startup businesses and  creating value where                                                               
none  existed before:   [Barnacle]  Kelp Salsa  [in Juneau];  The                                                               
Boardroom  co-working  space  in  Anchorage;  and  microgrid  and                                                               
energy startups.                                                                                                                
                                                                                                                                
3:44:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH relayed that  he fully supports the proposed                                                               
resolution.  He  stated that as a mining engineer,  he can attest                                                               
to  Alaska's  long  tradition  in   the  creation  of  innovative                                                               
products.   He  mentioned  as an  example  the "Intelligiant,"  a                                                               
water  cannon   used  in  hydraulic  mining,   invented  by  John                                                               
Miscovich of  Fairbanks.   He added  that it  is used  around the                                                               
world and  is the standard  for water  delivery.  He  opined that                                                               
the proposed resolution  is a great idea; from the  oil fields to                                                               
the fish processors, Alaska could improve techniques.                                                                           
                                                                                                                                
3:44:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL commented that  between the new University of                                                               
Alaska  Fairbanks  (UAF)   Engineering  Learning  and  Innovation                                                               
Facility  (ELIF)  and the  adjacent  School  of Management  (SOM)                                                               
[Bunnell]  Building  is  a lounge  where  business  students  and                                                               
engineering  students  are  encouraged  to  collaborate  and  eat                                                               
together.                                                                                                                       
                                                                                                                                
3:45:31 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS opened public testimony on CSSCR 10(STA).                                                                  
                                                                                                                                
3:45:57 PM                                                                                                                    
                                                                                                                                
MATT  MORRISON, Executive  Director,  Pacific NorthWest  Economic                                                               
Region   (PNWER),   testified   that  the   proposed   resolution                                                               
represents an  opportunity for Alaska  to provide  leadership not                                                               
only in state but in  the Pacific Northwest to enhance ecosystems                                                               
for  innovation, which  requires empowering  local public-private                                                               
collaboration.  He  opined that naming next year [as  the year of                                                               
innovation]  could spawn  events around  the state  and encourage                                                               
young  and old  to enhance  creativity to  solve real  challenges                                                               
within  their  own  communities.    He  maintained  that  Senator                                                               
Costello has  been instrumental in  leading the  PNWER Innovation                                                               
Working  Group;  it  serves  to  inform  neighboring  states  and                                                               
provinces  as to  the  role  they can  play  in promoting  shared                                                               
leadership  with local  governments, communities,  neighborhoods,                                                               
schools, universities,  and the private  sector.  He  opined that                                                               
the  resolution is  a great  idea; he  looks forward  to Alaska's                                                               
leadership   in   the   region,  especially   with   its   unique                                                               
environmental  challenges;  and  the  proposed  resolution  could                                                               
empower collaboration between the public and private sector.                                                                    
                                                                                                                                
3:48:24 PM                                                                                                                    
                                                                                                                                
NOLAN   KLOUDA,   Executive   Director,   Center   for   Economic                                                               
Development   (CED),  University   of  Alaska   Anchorage  (UAA,)                                                               
testified that he  believes that the time is right  in Alaska for                                                               
dialogue   about   innovation,   entrepreneurship,   and   future                                                               
directions  for the  state.   He  relayed that  CED research  has                                                               
shown  that Alaskans  are more  likely to  start businesses  than                                                               
residents of  most other states; Alaska  ranks in the top  two or                                                               
three states for  individuals starting a business.   He said that                                                               
startup companies  in Alaska add  about 4,000 to 6,000  jobs each                                                               
year  to the  state's  economy, and  that  has continued  despite                                                               
Alaska  entering  a  recession   and  its  economy  losing  jobs.                                                               
Businesses are  still being started,  and they are  continuing to                                                               
hire.                                                                                                                           
                                                                                                                                
MR. KLOUDA  maintained that  Alaska has many  of the  assets that                                                               
fuel  innovation:   the  UA System  has  research specialties  in                                                               
energy and atmospheric science in  Arctic technology; some of the                                                               
research is moving  into the commercialization phase  with a very                                                               
active  commercialization  effort  within  the  university.    He                                                               
stated that  Alaska also  has a  high concentration  of engineers                                                               
and experts in  technology for many of its  industries - resource                                                               
development   industries   and    transportation   and   aviation                                                               
industries.  He  said that there is a  strong "knowledge economy"                                                               
component to the industries in the state.                                                                                       
                                                                                                                                
MR.  KLOUDA maintained  that there  is  also an  entrepreneurship                                                               
ecosystem forming and  maturing within the state;  a formal Angel                                                               
Investor  Network (AIN)  that specializes  in investing  in early                                                               
stage startup companies  now exists in the state; and  there is a                                                               
startup accelerator  in state, called  Launch Alaska,  to advance                                                               
startup companies to a more mature phase.                                                                                       
                                                                                                                                
MR.  KLOUDA  mentioned there  is  a  regular calendar  of  events                                                               
including  a  startup weekend,  which  takes  people through  the                                                               
process of creating  a new business over a  54-hour period during                                                               
a weekend.   He  stated that  CED staff  perform research  on the                                                               
economy  and  apply  it  to activities  that  might  foster  more                                                               
entrepreneurship.    He relayed  that  CED  uses Google's  Design                                                               
Sprint  process, in  which an  interdisciplinary team  focuses on                                                               
creating a new product.                                                                                                         
                                                                                                                                
3:51:55 PM                                                                                                                    
                                                                                                                                
JULIET SHEPHERD, Project  Manager, Fairbanks Economic Development                                                               
Corporation,  expressed her  appreciation for  the inclusive  and                                                               
meaningful resolution  to align infrastructure in  state, through                                                               
which innovation can  be developed and startups  come to fruition                                                               
as  full  stage  Alaska  businesses   with  the  support  of  the                                                               
legislature,  the  UA,  economic development  entities,  and  the                                                               
communities  in public-private  partnership.   She reported  that                                                               
she is one  of the founders of the "year  of innovation" pipeline                                                               
piloted  over the  past two  years, which  has resulted  in three                                                               
startup businesses  from the cycle  of the  integrative (indisc.)                                                               
through a  process in a  cyclical manner  incorporating available                                                               
infrastructure.   She  stated  that she  knows  that the  process                                                               
works.  She  maintained that the proposed  resolution would offer                                                               
an  opportunity   to  highlight   the  emerging   pipelines  that                                                               
collectively make  up a  channel through  which not  only private                                                               
individuals  in communities  can enter  into the  startup process                                                               
but  also  have   the  opportunity  to  work   closely  with  the                                                               
university;  it would  diversify  the  perspectives for  creating                                                               
products useful to the public both  in and well beyond Alaska and                                                               
incorporate intellectual properties through university research.                                                                
                                                                                                                                
3:54:20 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS closed public testimony on CSSCR 10(STA).                                                                  
                                                                                                                                
CHAIR KREISS-TOMKINS announced CSSCR 10(STA) would be held over.