The government of Puerto Rico has just published its Strategic Model for a New Economy, its economic development blueprint. Fortunately for those of us committed to technological innovation, the Island's definitive participation in the knowledge economy is a fundamental aspect of the plan. Few analysts realize that Puerto Rico has two of the United States' largest engineering schools, and that 25% of the world's biological manufacturing capability resides on the Island…the innovation economy is at hand.

Two elements form the axis of the innovation plan: technology-exporting entrepreneurs and R&D-attracting global enterprises. Together, the plan calls for their integration into a soup-to-nuts value chain, from R&D to operations and distribution.

A key infrastructure element to achieve this goal will be the completion of the Science District, a 78-acre R&D center under management by the Puerto Rico Science, Technology & Research Trust.

An essential funding element will be the Special Fund for Economic Development, managed by the Puerto Rico Industrial Development Company, and its focus will be on pushing along venture capital investments in technology-driven enterprises.

Finally, the government plans to redefine the role of the University of Puerto Rico, most likely with an emphasis on technology transfer for private sector commercialization; the University is widely seen as an unexploited source of intellectual property.