< Previous106 JULY 2019 SI T E S E L E C T IO N a June th ceremony. “ is milestone further exemplifi es the Group’s ongoing commitment to the discovery of innovative therapeutic solutions for patients “By combining the research activities of our four French sites into a single, unique, and state-of-the-art center in Paris-Saclay, the Servier group is continuing to support France while attracting researchers from around the world.” At its new Research Institute, the Servier group will work alongside other scientifi c organizations, providing a natural opportunity for collaboration and potential innovation. Paris-Saclay is one of the world’s top innovation clusters and is home to % of all industrial R&D in the Paris region. e Servier Group will be able to rely on the expertise of CentraleSupélec, the French Alternative Energies and Atomic Energy Commission (CEA), the French National Center for Scientifi c Research, Paris-Sud University, the Ecole Normale Supérieure and the Ecole Polytechnique, some of which have already been working with the Group for several years. “ e laying of the fi rst stone of the new Servier Research Institute is an embodiment of the collaboration between the Paris-Saclay Public Development and the Servier group,” explained Philippe Van de Maele, managing director of Paris- Saclay Public Development (EPAPS). “We are delighted to welcome the Servier group to our cluster, whose presence will strengthen the potential for innovation and excellence of the Paris-Saclay site. e synergies that will be created between the major players, thanks to the Servier group’s presence, will make France an even more attractive prospect in terms of scientifi c and medical innovation.” Consolidation Means Collaboration e Servier Group has nearly , employees working in research and development around the globe. e future Servier Paris-Saclay Research Institute will, at a single site, house researchers who are currently spread across four locations in France (Croissy-sur- Seine, Suresnes, Orléans, and Gidy). By gathering its French research activities within a single research center, Servier will be able to accelerate the decision-making process, explore new ways of working, share knowledge more effi ciently, disseminate best practices, and encourage partnerships, according to the company. Research will be boosted further by the creation of a one-of-a-kind incubator in France, at the Research Institute. It will be home to the most innovative start- ups in the medical sector, which will be able not only to develop their projects independently, but also to share their expertise with Servier teams to make the collaboration even more dynamic. Covering , sq. m. (, sq. ft.), this innovation hub will off er workstations for start-ups, including fully equipped laboratories, collaborative areas, and offi ce space. e new facility will also speed up research eff orts, especially in oncology, which is one of Servier’s strategic priorities and a key branch of its therapeutic research. Currently, employees in countries are working to develop innovative oncology therapeutic solutions. Over the next two years, oncology will account for half of the Group’s R&D budget. Five cancer treatments are available, so far, and the Servier Group is working to develop drug candidates. Servier has signed partnership agreements with academic institutions, as well as industrial partners and biotech companies in this therapeutic area. “ is new Research Institute is a tremendous tool that will make the Servier Group even more eff ective at addressing the unmet needs of patients,” says Claude Bertrand, executive vice president of R&D at Servier. “By uniting our experts at what will become the Group’s largest research center, we can ensure an even faster exploration of new therapeutic pathways, while benefi ting from the cutting-edge knowledge and experience off ered by one of the most dynamic research environments available, where creativity, innovation, and entrepreneurship are both encouraged and valued.” Startup Genome says these leading startup hubs have a major role to play in the Fourth Industrial Revolution. The Global Startup Ecosystem Report (GSER), launched in May in high-ranking ecosystem San Francisco by Startup Genome and the Global Entrepreneurship Network (GEN), is the world’s most comprehensive research on startup ecosystems. It also off ers a global ranking of life sciences ecosystems, in partnership with Paris- based Hello Tomorrow. Its fi ndings are based on data from thousands of startup founders and research on over million companies. e report assesses over ecosystems across more than countries. Since — starting as a research project with Steve Blank, the father of the Lean Startup movement, and Prof. Chuck Eesley at Stanford University — the report’s publishers have been on a mission to codify and understand the success factors of startup ecosystems “so more places have a chance of creating and capturing their fair share of value created by the global startup revolution.” One key fi nding shows that deep tech startups — those relying heavily on intellectual property — are the fastest-growing group globally. e four fastest-growing startup sub-sectors are advanced manufacturing & robotics, blockchain, by ADAM BRUNS adam.br uns @ site s ele c tion.c om 108 JULY 2019 SI T E S E L E C T IO N TECHNOLOGY & INNOVA TION: Startups & Innovation Hubs S I T E S E L E C T I O N JULY 2019 109 agtech & new food, and artifi cial intelligence (AI). By contrast, startup sub-sectors showing decline are edtech, digital media, gaming, and adtech. “As our economies transition to the fourth industrial revolution, we — communities driving the global startup revolution — have a major role to play,” said JF Gauthier, founder and CEO of Startup Genome. “Not only can startup ecosystems act as the top engine of job creation and economic growth, but our startups can also help solve many of our society’s biggest challenges including climate change and inequality.” Over -, the global startup economy was worth $. trillion, a % increase from the prior period. is is on par with G economies and larger than the GDP of the United Kingdom. Not every place or every person, however, is benefi ting equally from the startup economy. e largest startup ecosystems accounted for % of global exit value in -. Moreover, only % of tech founders are female — and in none of the more than ecosystems studied did they comprise the majority. Among other new aspects of this evolving study, this year’s report studied more than million patents, in partnership with Prof. David Rigby at UCLA, tying them to specifi c startup sub-sectors and ecosystems, calculating the potential of each technology class, and measuring the knowledge space of each ecosystem. Startup Genome’s Ecosystem Assessment Framework includes over metrics. e rankings measure nine Success Factors: • Performance • Funding • Market Reach • Talent • Experience • Connectedness (new factor) • Knowledge (new factor) • Infrastructure (new factor, Deep Tech only) • Policy (new factor, Deep Tech only) Presented here with the permission of Startup Genome are key fi ndings and observations from the -page report, which is accessible at https:// startupgenome.com/gser. Favorites Remain Strong, But There Are New Kids on the Block Highlights from the GSER include: • e top fi ve startup ecosystems overall in are Silicon Valley, New York City, London, Beijing and Boston. e top fi ve ecosystems for life sciences are Silicon Valley, Boston, San Diego, New York City and London. ere is no “next” Silicon Valley, says the report. Instead, “there are startup ecosystems around the world that will soon lay claim to a parallel vibrancy and economic productivity.” • Paris cracked the top , moving up two spots to No. overall. Amsterdam-StartupDelta moved up the most, rising four spots to No. overall thanks to high growth in funding, startup output and exits, strong performance in life sciences and deep tech and two billion- dollar IPOs in by Adyen and Elastic. San Diego and Washington, D.C., cracked the top for the fi rst time. And three other ecosystems also moved up in the rankings: Los Angeles (from No. in to No. in ), Stockholm (from No. to No. ), and JULY 2019 109 Silicon Valley New York City London Beijing Boston Tel Aviv Los Angeles Shanghai Paris Berlin Stockholm Seattle Toronto-Waterloo Singapore Amsterdam-StartupDelta Austin Chicago Bangalore Washington, D.C. San Diego Denver-Boulder Lausanne-Bern-Geneva Sydney Vancouver Hong Kong Atlanta Barcelona Dublin Miami Munich 1 2 3-4 5 6-7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26-30 0 0 0 1 0 0 3 0 2 -3 3 -2 3 -2 4 -3 1 2 NEW NEW NEW NEW -6 -9 NEW NEW NEW NEW NEW NEW RANKING 26-30 in alphabetical order CHANGE FROM 2017 Top 30 Global Startup Ecosystems TECHNOLOGY & INNOVA TION:110 JULY 2019 SI T E S E L E C T IO N Toronto (from No. to No. ). • While early-stage funding for startups has more than doubled since -, it has risen by a factor of eight in agtech & new food — and quadrupled in AI. Within blockchain, the top fi ve ecosystems are Silicon Valley, London, New York City, Singapore, and Toronto-Waterloo. Ecosystems to watch in AI include Edmonton, Jerusalem, Montreal, and Taipei City. • Ten new ecosystems appear among the top global startup ecosystems for the fi rst time: - Atlanta - Barcelona - Denver-Boulder - Dublin - Hong Kong - Lausanne-Bern-Geneva - Miami - Munich - San Diego - Washington, D.C. Of these new top ecosystems: • Four (Washington, D.C., San Diego, Lausanne-Bern-Geneva and Munich) have made it to the top global rankings largely aided by their strong performance in Life Sciences, which we cover in more detail in that section of the report. • Two of the — Atlanta and Denver-Boulder — had been runners-up for top ecosystems in the world since . • Of the remaining four new top ecosystems, Miami does especially well in market reach, due to a high percentage of foreign customers for local startups (%) and deep ties to Latin America’s top ecosystems. • ere are startup ecosystems with an Ecosystem Value above $ billion each. Additionally, startup ecosystems boast an Ecosystem Value between $ billion and $ billion, creating thousands of jobs and billions in economic productivity. • Startup ecosystems continue to emerge everywhere, across geographic regions and sub-sectors. e report uncovers varying strengths across Startup Genome’s more than member ecosystems: • Bahrain — top ecosystem for aff ordable talent • Barcelona — top ecosystem for gaming • Edmonton — top (activation phase) ecosystem for market reach • Greater Helsinki — top ecosystem on connectedness • Manila — top (activation phase) in connectedness • New Zealand — top globally in agtech & new food • Sydney — top globally in Fintech • Vancouver — top globally in blockchain Dealing With the ‘Techlash’ Among the analysis and commentary off ered by the report’s authors is a pointed commentary called “Techlash and Tech Responsibility”: “With many places and people falling behind, our society is paying the price: economic, political, and human,” they write. “Around the world there is real fear of job displacement by automation. e regions and people not feeling included economically are fueling many populist political movements. As Anne Case and Angus Deaton, a Nobel laureate, have documented, we have even seen a rise in ‘deaths of despair’ — by suicides and drug abuse-related — among the groups most aff ected by economic blight in the United States. “Understandably, there is a ‘techlash’ happening. But less innovation is obviously not the answer, and trying to stop tech from progressing today would not be too diff erent from trying to stop steam engines in the Industrial Revolution. “Entrepreneurs create jobs, wealth, and innovation — and are a global force for good. As research from the Kauff man Foundation and others have extensively documented, most net new jobs come from startups and scaleups. Our own recent work with Inc. Magazine on Surge Cities in the United States has also demonstrated the relationship between wage growth for workers and tech entrepreneurship. Seattle, Silicon Valley, and Boston lead the country in wage gains for workers — all among the top global startup ecosystems. “Tech went from a small number of misfi ts and upstarts to become a major power in the global economy,” the report concludes. “It is up to us, the collective of startup ecosystems in the world, from Amsterdam to Jakarta, to live up to the responsibility that this growing power means.” S I T E S E L E C T I O N JULY 2019 111 It’s been a busy spring and summer already when it comes to chemicals, energy and other projects in Louisiana. Project news rolls out of Louisiana with the regularity of a freight train clacking through town. So it only makes sense that a couple of rail-driven projects kick off a tour of projects rolling into towns across the Bayou State since the year began. In early June, Louisiana Governor John Bel Edwards and Lacassine Operating Company CEO Van Eversull announced the company will invest $. million to construct a catalyst blending plant that will create new jobs in Lacassine, in Jeff erson Davis Parish in southwest Louisiana. Designed to serve oil refi neries throughout the world, the catalyst plant will become the anchor tenant of the Lacassine Rail Terminal operated by Rail Logix. e terminal — located along I- midway between New Orleans and Houston — started up operations in October , and has installed railcar storage spots to date, with plans to expand to more than , railcar storage spots. e rail facilities serve an industrial park of acres ( hectares) available for lease or purchase. Lacassine Operating is a newly by ADAM BRUNS adam.br uns @ site s ele c tion.c om ST A TE SPO TLIGHT Louisiana On a Roll Lacassine Rail Terminal, operated by Rail Logix in southwest Louisiana, started up operations in October 2018. Photo courtesy of Rail Logix112 JULY 2019 SI T E S E L E C T IO N formed partner company of Equilibrium Catalyst Inc., founded in in New Orleans and now based in Houston. e company is the world’s leading provider of catalyst-related services in the fl uid catalytic cracking category. Regional clients of the new Lacassine Operating facility will include ExxonMobil in Baton Rouge, Citgo in Lake Charles, Phillips in Westlake, and the Motiva and Total Port Arthur refi neries in Port Arthur, Texas. “With the unique logistical advantages that we’re getting via Rail Logix here, we’re looking forward to a successful operation serving our clients near and far,” said Eversull, noting that his company “is growing along with the Louisiana energy economy.” Indeed, the Gulf Coast Energy Outlook report from the LSU Center for Energy Studies found that since Louisiana’s Gulf Coast region alone has seen approximately $. billion in actual and projected capital investment from the chemical industry, inclusive of LNG and other energy projects. Elsewhere, the report states, “the industrial renaissance along the Gulf Coast has led to some of the most expansive opportunities for transforming the region into a global energy export powerhouse,” including the evolution of the Louisiana Off shore Oil Port (LOOP), which handled as much % of all U.S. crude oil imports at its peak to new export capabilities fi rst deployed in early . “ ese facilities, collectively, process U.S. hydrocarbons into value-added chemicals designed for world markets, particularly Asia where Louisiana alone has a trade surplus, not defi cit, of almost $ billion with China,” the report stated. Not all the international energy business involves exports to Asia. Some involves FDI from other world regions. Delek US President and CEO Uzi Yemin announced in May the energy company will invest $ million to enhance its refi nery in Krotz Springs, in the Acadiana region, via a series of projects over the next fi ve years. e company will retain existing jobs, and will create new direct jobs with an average annual salary of $,, plus benefi ts. During his economic development mission to Israel in October , Gov. Edwards met with Yemin, a native of Israel. Energy was one of the industries targeted by the governor for the trade mission, and he and Yemin discussed how the company’s operations in Louisiana might be supported for future growth. “Four months ago, we welcomed an Israel-based software technology company to Baton Rouge, where it has set up a cybersecurity partnership with LSU,” Gov. Edwards said, referencing Check Point Software Technologies. “Last week, we announced Cybint Solutions, which has roots in the Israel Defense Forces, is creating a cyber center with Bossier Parish Community College. Today, I am happy to announce a third initiative resulting from our recent trade mission to Israel.” Shell In Feasibility Stage, Lotte in Dedication Phase It’s early but promising in Ascension Parish, where Shell Chemicals Vice President for Gulf Coast Manufacturing Rhoman Hardy announced in May that the company will advance feasibility plans for a potential $. billion manufacturing expansion at its Shell Geismar facility. At the - acre complex in Ascension Parish, Shell Chemical LP would build a world- scale monoethylene glycol (MEG) plant. A decision to proceed with the project could come from Royal Dutch Shell in . e Geismar project would create new direct jobs with an average annual salary of $,, plus benefi ts. Shell would retain existing jobs at the Geismar site, with the project supporting , company jobs statewide. In addition to the retained jobs and new jobs, the project would generate more than , construction jobs. e MEG project already has won unanimous approval from the Ascension Parish Council and the Ascension Parish School Board for parish and local property tax abatement under Louisiana’s Industrial Tax Exemption Program. LED and Shell Chemical will complete negotiations on an incentive package for the project prior to the fi nal investment decision. After a groundbreaking in Ascension Parish, Shell began operating the Geismar chemicals plant in and completed other major expansions in and . In December , Shell completed the chemical industry, inclusive of LNG and other energy projects. Elsewhere, along the Gulf Coast has Louisiana alone has a trade surplus, not de cit, of almost $7 billion with China.” — 2019 Gulf Coast Energy Outlook report, LSU Center for Energy Studies 114 JULY 2019 SI T E S E L E C T IO N a $ million expansion that increased its linear alpha olefi ns capacity by , tons to a total . million tons per year. at volume ranks the Geismar plant as the largest single-site manufacturer of alpha olefi ns in the world. Products at the Shell Geismar site contribute key ingredients for making personal care products, soaps, shampoos and household cleaning solutions. In another part of the petrochemical corridor running through the state, Gov. Edwards joined Republic of Korea Prime Minister Lee Nak-yon, Lotte Group Chairman Shin Dong-bin and Westlake Chemical CEO Albert Chao as they dedicated the $. billion Lake Charles Complex of Lotte Chemical. During the past three years, Lotte Chemical developed a $. billion ethane cracker on-site with Westlake Chemical as a minority investment partner. In addition, Lotte Chemical built a $. billion monoethylene glycol manufacturing plant and its new U.S. headquarters, which moved from Houston. e Lake Charles Complex, located at the junction of Interstates and in Lake Charles, created new direct jobs, with at the ethane cracker, at the MEG plant and at the headquarters building. “ e project began with a partnership to produce a commodity chemical, ethylene. It continued with a decision by Lotte Chemical to produce a downstream derivative, monoethylene glycol,” explained Edwards. “And the project culminated with Lotte Chemical’s decision to move its U.S. headquarters from Houston to Lake Charles. At one site, we have the major building blocks of chemical manufacturing and a company headquarters. In a similar vein, Sasol moved its research and development operations to Lake Charles before building one of the world’s largest chemical complexes here in recent years. Lotte Chemical’s investment in Lake Charles further burnishes Southwest Louisiana’s reputation as a global destination for major manufacturers.” Capital Improvements in the Capital Energy and chemicals are no strangers to Baton Rouge, where Gov. Edwards appeared recently with Louis Dreyfus Co. (LDC) leaders to commit state funds to help another sector: agriculture. e funds will enable the completion of a $ million rail project that will enhance the transfer of corn, grain, soybeans and other commodities from Louisiana farmers to export vessels at the Port of Greater Baton Rouge in West Baton Rouge Parish. e Port is overseeing nearly $ million in rail infrastructure projects that will expand commodity shipments for current and future tenants. In , Union Pacifi c Railroad completed a $ million interchange track project expanding potential delivery from railcars to as many as railcars on one train. “As the major grain logistics tenant at the Port of Greater Baton Rouge since , LDC has completed over $ million in capital spending improvements at its Port Allen Elevator facilities. “We are pleased with the rail announcement and the State of Louisiana’s commitment to economic growth in the area,” said Adrian Isman, North America Region CEO for LDC. “It is our plan to continue to invest and grow in the region, and the rail line will help support this objective.” “ is is a tremendous economic development project that has been in the works for many years,” said Louisiana Department of Agriculture and Forestry Commissioner Mike Strain. “ e expanded rail capacity will increase the volume and transfer of goods at a rapid rate. It will also allow for uninterrupted delivery of grain, wood pellets and other commodities when the river levels are too high or too low for normal commerce by barge or ship.” Beyond the rail access project, the Port of Greater Baton Rouge will begin a third major rail project in the near future. A rail logistics facility, known as a chambering yard, will be built along the Gulf Intracoastal Waterway and expedite rail service to the LDC’s grain elevators, expedite rail delivery of wood pellets to Drax Biomass and enhance rail operations throughout the port. LDC and Drax Lotte Chemical.Lotte Chemical.Lotte Chemical. During the past three years, Lotte Lotte Chemical. Lotte Chemical’s investment in Lake Charles further burnishes Southwest Louisiana’s reputation as a global destination for major manufacturers.” — Louisiana Gov. John Bel EdwardsNext >