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By Mark McGuffie, Executive Director, Hawai‘i Island Economic
Development Board
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| Photo: Astronomical facilities at the summit
of Mauna Kea. Photo courtesy of Rolf Kudritzki, Director
of the Institute for Astronomy, University of Hawai‘i
at Manoa. |
For nearly 40 years, the astronomy industry in Hawai‘i has
been a pioneer in scientific innovation, investing over one
billion dollars in capital infrastructure on the summit of
Mauna Kea in 13 distinct astronomical facilities, employing
roughly 600 people, and contributing over $ 150 million dollars
annually to the Island’s economy. W. M. Keck Observatory accounts
for approximately $ 26 million dollars annually with a staff
of 138 employees, two-thirds of whom are from Hawai‘i. Keck
I and Keck II are the most powerful telescopes in the world.
The fact that W. M. Keck Observatory is here in Hawai‘i has
greatly increased the visibility of our island throughout the
world science community.
Since 1968, there has been an escalating interest in the development
of science and technology research throughout the State. Referred
to as “Planet Hawai‘i” by Dr. Peter Vitousek of Stanford University,
Hawai‘i Island continues to attract worldwide scientific interest.
Encompassing over 4,000 square miles, Hawai‘i Island has the
greatest concentration of life-zones anywhere on the planet,
with 13 out of the 16 known life-zones. Hawai‘i’s diverse ecosystems
provide unparalleled opportunities for discovery in a myriad
of scientific fields.
To take advantage of the unique qualities Hawai‘i has to offer,
innovation industries are establishing a greater presence throughout
the State. Current research focuses in the life sciences, blended
medicine and furthering cancer research, aerospace, and environmental
sciences — with an emphasis on “zero waste” models and initiatives.
Hawai‘i also hosts research in agriculture and alternative
energy projects, with the ultimate goal of securing greater
food and fuel self-sufficiency. With over 10,000 species of
flora and fauna found nowhere else on Earth, Hawai‘i Island
has attracted a burgeoning ethnopharmaceuticals industry, which
is becoming a major player in the local economy. Innovation
industry clusters are sprouting up in different parts of the
State, attracting scientists and businesses from around the
world.
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| Photo: Photovoltaic array at the Hawai‘i
Gateway Energy Center at the Natural Energy Laboratory
of Hawai‘i. |
As a result of the oil crisis in 1973 the Natural
Energy Laboratory of Hawai‘i (NELHA) was established in
the mid 70’s and charged with developing an Ocean
Thermal Energy Conversion (OTEC) project at Keahole Point
on the Island of Hawai‘i.
When fossil fuel costs dropped to $15 a barrel in the 1980’s,
the OTEC project, although a proven technology, was no longer
viable. Yet, the deep sea water pipeline that had been laid
for OTEC remained, creating new opportunities for innovation.
Industries that emerged at the NELHA facility included aquaculture,
neutroceuticals, and bottled desalinated sea water, which is
currently Hawai‘i Island’s largest export. With oil prices
heading toward a $100 per barrel, the Island needs to develop
more efficient alternative and renewable energy sources, and
technologies such as OTEC are being investigated with renewed
vigor.
Impressive new science and technology facilities have come
to Hawai‘i Island within the past twelve months. The Pacific
Basin Agricultural Research Center in Hilo is in its first
phase of operation, and construction of Phase II will make
this the largest research center for biotechnology in the Pacific
region. The new College
of Pharmacy enrolled its first cohort of students at UH
Hilo this fall, with a wait list for fall 2008.
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| Photo: Exterior view of the ‘Imiloa Astronomy
Education Center in Hilo, Hawai‘i. Photo by Justina Mattos. |
‘Imiloa
Astronomy Education Center, a $28 million facility in Hilo
funded by NASA, opened its doors in 2005. ‘Imiloa provides
state-of-the-art education programs and facilities, including
a planetarium, designed help to build bridges between our understanding
of ancient methods of navigation and modern astronomy.
Palamanui,
a new development by Charles Schwab, Hunt Development Group,
and Island-based contractor Guy Lam, broke ground on August
24, 2007. Along with its homes, hotel and commercial ventures,
Palamanui brings critical infrastructure for the relocation
of the University of Hawai‘i’s West Hawai‘i Center from its
current inadequate rental space in Kealakekua. This is the
first of many steps toward a future four-year university in
West Hawai‘i. It is also a wonderful demonstration of how the
private sector can work together with the public sector to
create much-needed access to higher learning for the residents
of this island. Private sector contributions to this project
include intellectual capital and social capital, as well as
financial capital.
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| Image: Graph of Hawai‘i’s employment by
industry sector based on 2006 data, courtesy of Sarah
Anderson of Keck Observatory and Mark McGuffie. |
The positive long-term effects of continued growth in the Innovation
Sector are the creation of a more skilled workforce and higher
paying jobs. New jobs in the Innovation Sector will help to
improve the quality of life in Hawai‘i and stabilize what has
otherwise been an over-dependency on tourism to sustain our
Island economy. The need to implement a rigorous STEM (science,
technology, engineering, and mathematics) curriculum throughout
the education pipeline and to provide a varied engineering
curriculum at the University of Hawai‘i is imperative. To ensure
a readily available, educated, and qualified workforce for
all industries is one of Hawai‘i‘s top priorities.
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| Image: Graph of Hawai‘i’s educational attainment
based on 2000 data, courtesy of Sarah Anderson of Keck
Observatory and Mark McGuffie. |
The three main economic drivers within the State of Hawai‘i
are Tourism, Military, and the Innovation Sector. In 2005 the
Innovation Sector employed only 5 percent of the workforce; however,
it accounted for 17 percent of the three sectors’ total contribution
toward the Gross State Product. Since that time the number
of jobs in the Innovation Sector has more than doubled, so
that roughly 10 percent of Hawaii’s workforce is now employed in innovation
or technology industries. From 2001 to 2005, average wages
in the Innovation Sector increased at nearly 15 times the rate
of all other private sector wages combined. Over the next ten
years the Innovation Sector of the State’s economy is projected
to grow by 12 percent.
Imagine if the State can grow the Innovation Sector from 10 percent
to 15 percent of the workforce, what that would look like in terms
of offering better than living-wage jobs and a more stable
economy.
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| Image: Graph of Hawai‘i’s Gross State Product
based on 2006 data, courtesy of Sarah Anderson of Keck
Observatory and Mark McGuffie. |
During the 2006-07 State legislative session, Governor Linda
Lingle introduced her first Innovation Package, to help stimulate
Hawai‘i’s education-workforce-industry pipeline. The newly
formed Hawai`i
Innovation Council will coordinate with federal, State,
County and private sector organizations, including the Department
of Business, Economic Development, and Tourism (DBEDT), the
Department of Education, and Hawai‘i’s colleges and universities.
The Council’s overarching goal is to increase the positive
economic impacts of Hawai‘i’s innovation assets and resources,
particularly its people.
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| Photo: 2006 Akamai student interns, photographed
by Sarah Anderson, Hawai‘i Island Akamai Internship Coordinator. |
In addition, the Innovation Council is a forum for leaders
to discuss ways to position Hawai‘i as a global leader in technology
research, development, and product creation. The Council will
recommend realignment of the State’s innovation initiatives
in response to changing global economic conditions and analyze
and recommend the adoption of “best practices.” The Council
is also charged with assessing State universities and colleges
to determine their capacity to support Hawai‘i’s transition
to an innovation-based economy. Finally, the Council will make
recommendations to help align higher education with the State’s
economic development goals.
Three prominent members of this newly formed Council have residences
on Hawai‘i Island. Marc Benioff is Co-chair of the Hawai‘i
Innovation Council. Benioff is Chairman and CEO of salesforce.com,
one of Business
Week’s Top 100 Most Innovative Companies; he has been high
on the list of The
Wired 40 for the past few years; and he was selected as
one of the Top
10 Disrupters of 2006 by Forbes Magazine. Karl
Hess, Ph.D. is a professor for advanced study emeritus
at the University of Illinois at Urbana, a Board member of
the National Science Foundation, and Policy Advisor to the
U.S. President and to Congress since 2006. Dr.
Taft Armandroff, Director of W. M. Keck Observatory, serves
as the leader of the world’s premier astronomical research
community. Hawai‘i Island is well represented as the Council
moves forward with its ambitious agenda.
“Hawai‘i’s greatest asset is the passionate
dynamic social entrepreneurship by its people to create
an even greater Hawai‘i. The question now is how do we
enable them to create innovation?” — Marc Benioff,
Co-chair of the Hawai‘i Innovation Council 
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