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Robert Weissbourd

Regions Charting New Directions: Metropolitan Business Planning. Mayor’s Innovation Project January 16 th , 2013. Robert Weissbourd. Agenda. Drivers of the Next Economy. “Metro-Economics ” . Metropolitan Business Planning (from theory to practice). Understanding Your Economy.

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Robert Weissbourd

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  1. Regions Charting New Directions:Metropolitan Business Planning Mayor’s Innovation Project January 16th, 2013 Robert Weissbourd

  2. Agenda Drivers of the Next Economy “Metro-Economics” Metropolitan Business Planning (from theory to practice) Understanding Your Economy Key Lessons and Discussion

  3. The Global Economy is Undergoing a Fundamental Transformation, Driven by Knowledge Assets GDP Growth, 1950-2000 • Human Capital • Information technologies • Product innovation; flexible customization • Firm, consumer and knowledge networks • Increasing returns; divergence % Change Source:“Greenspan Weighs Evidence and Finds a Lighter Economy,” Wall Street Journal

  4. As a Result, the Economy is More Dynamic -- and Global Global GDP (2010) 21.4% BIC Countries 20.2% US Global GDP (2015) 25.8% BIC Countries 18.3% US Sources: Newsweek, Manyika, Lund and Auguste, “From the Ashes,” 8.16.2010; Brookings Institution

  5. 96.3% 89.8% 87% Knowledge Industries (GDP) 83.7% 90% Employment Personal Income Population Gross Product …and Centered in Metropolitan Areas Metros Share of U.S. Total 95.5% Patents Source: Bureau of Economic Analysis, U.S. Patent and Trademark Office

  6. Agenda Drivers of the Next Economy “Metro-Economics” Metropolitan Business Planning (from theory to practice) Understanding Your Economy Key Lessons and Discussion

  7. How Metro Economies Grow • Metro economy = total value of goods and services produced in the region • Growth is inherently business sector growth (number, size and profitability of firms) • Business sector grows through firm creation, growth and location decisions (retention and attraction) • Firm creation, growth and location depend upon increases in efficiency and productivity (of firm and system, including product innovation) Core Question: What attributes of the region increase efficiency and productivity, leading to business sector growth?

  8. Metros Can Enable People and Firms to Concentrate and Achieve Efficiencies What Makes Metropolitan Regions more Productive in the Next Economy? Institutional Economics Institutional Economics New Growth Theory New Growth Theory Economic Geography Economic Geography Act Comprehensively – The Whole is Greater than the Sum of the Parts. Customize and Build on Distinctive Assets. Develop Institutional Capacity and Intentionality.

  9. Five Market Levers Drive RegionalEconomic Performance EnhanceRegionalConcentrations/ Clusters DeployHuman CapitalAligned withJob Pools Leverage Points for Sustainable and Inclusive Prosperity Create EffectivePublic & CivicCulture & Institutions DevelopInnovation-EnablingInfrastructure Increase SpatialEfficiency

  10. Equity and Growth Go Hand in Hand .6 Neighborhoods and Regions Move in Tandem .4 Leverage Points for Sustainable and InclusiveProsperity Wage Growth (1990-2000) .2 0 -.2 Suburbs 0 .1 .2 .3 .4 Poverty Rate (1990) The sub-systems and geographies succeed or fail in context. City

  11. New Approaches for the Next Economy Traditional economic development New economic growth planning Subsidize companies Leverage regional strengths Reduce taxes Add value Train the unemployed Connect training to jobs Municipal competition Regional collaboration Government-led Public-private partnerships Success = Dynamic Economic Growth Success = Short Term Jobs

  12. Agenda Drivers of the Next Economy “Metro-Economics” Metropolitan Business Planning (from theory to practice) Understanding Your Economy Key Lessons and Discussion

  13. Metropolitan Business Planning: A New Way of Doing Business Grounded in Economics and Business Comprehensive, Actionable Strategies NOT Plans — Enterprises Continuous Process and Improvement

  14. Metropolitan Business Planning Regions Seattle Twin Cities Central Upstate New York Buffalo Milwaukee Chicago Northeast Ohio Louisville-Lexington Memphis Phoenix

  15. Agenda Drivers of the Next Economy “Metro-Economics” Metropolitan Business Planning (from theory to practice) Understanding Your Economy Key Lessons and Discussion

  16. Analyzing Clusters • Current Concentrations: Assets, Legacies and Bets • Cluster Dynamics and Drivers • Cluster Organization • Growth industries that • build on region’s assets? Opportunities to redeploy legacy assets? • “Centers of Gravity”: mutually reinforcing concentrations of industries, functions, technologies, occupations? • Shared inputs, activities, infrastructure and other factors contributing to cluster efficiency/productivity? • Challenges, opportunities and trends in specific clusters? Concentration Growth

  17. UnderstandingHumanCapitalDynamics • Status, Attraction and Retention • Segmentation, Skills Match and Labor Market Efficiency • Opportunity and Mobility • Educational and skills • attainment of residents? • Change in population by educational attainment, age – brain drain? • Projected job growth/loss, retirements by occupation and industry? • Match of existing & projected labor force skills (detailed segmentation)? • Labor market finding, measurement challenges? • Opportunities for targeted retraining, credentialing?

  18. Cultivating Innovation • University research specializations? • Extent & nature of university-industry connections? • Cluster innovation and firm R&D dynamics? • Sources, successes of start-up activities? Entrepreneurship access, support, connections? • Characteristics of VCs? Availability of earlier-stage funding? • Legacy industries that need to redeploy assets and innovate? • Emerging industries with high potential? culture networks Grounding in economy

  19. Enhancing Spatial Efficiency • Urban Growth Form • Connectedness & Mobility • Jobs housing mismatch • -- by industry, occupation, skill level? • Segregation and isolation? • Change in residential density & job dispersion? Specific fast-growing areas/nodes? • Opportunities for in-fill, mixed use development? • Opportunities for transformative infrastructure (next gen. energy, IT, public transit, PUDs)? • Transit use and access? Barriers? • Congestion?

  20. Achieving Good Governance • Fragmentation • Tax/Value Proposition • Governance • Services and regulatory processes that might be efficiently coordinated, streamlined? • Most important public goods and services to targeted industries, residents? • Govt 2.0: engaging firms and citizens, transparency, flexibility, use of public data for economic growth? • Strategic and practical alignment of ED programs, organizations?

  21. Agenda Drivers of the Next Economy “Metro-Economics” Metropolitan Business Planning (from theory to practice) Understanding Your Economy Key Lessons and Discussion

  22. Economic Development in the Next Economy Global, Knowledge Economy Specialization and Dynamism Intentionality Build on Your Assets Coordinated, Cross-Sectoral, Flexible, Adaptive, Open, Information-Rich, Inclusive, Entrepreneurial Compete on Value-Added (not low-cost)

  23. Regions Charting New Directions:Metropolitan Business Planning Mayor’s Innovation Project January 16th, 2013 Robert Weissbourd

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