Bradley W. Whitehead Fund for Our Economic Future Northeast Ohio Economic Transformation and Competitiveness in the Next Economy
Dec 15, 2014
Bradley W. Whitehead
Fund for Our Economic Future
Northeast Ohio
Economic Transformation and Competitiveness in the
Next Economy
Fund for Our Economic Fund for Our Economic FutureFuture• 100+ philanthropies united
• $75 million
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
115
110
105
100
95
90
Em
plo
ymen
t In
dex
NE Ohio
United States
Northeast Ohio Job Northeast Ohio Job PicturePicture
Employment, 1997 – 2007 1997 = 100
Year
Job Growth across the Job Growth across the United StatesUnited States
An Economic StormAn Economic Storm
Transformation
• Elements– Regional– Integrated– Collaborative
• Obstacles– Economies that are:
• Politically fragmented• Work silos• Geographic boundaries
• We know what we need to do
• We have a regional economic competitiveness agenda to get there
• While money matters, it’s smarter investments not bailouts
• Must scale, align resources
We’re Fighting BackWe’re Fighting Back
Can a Leopard Change Can a Leopard Change Its Spots?Its Spots?
Fund for Our Economic Fund for Our Economic FutureFuture• Why Philanthropy?
– Limited self interest– Risk capital– Constancy and stability– Convening
Members of the Fund
• More than 100 foundations, organizations and philanthropists from across the 16 counties of Northeast Ohio
Where We’re GoingWhere We’re Going
• Job growth
• Income growth
• Concentrated poverty
1997-2007
1997-2007
Percentage of Population Below Poverty
Advance Northeast Ohio
• Aligning assets and investments to address strategic economic priorities:– Business growth– Human capital– Racial and economic inclusion– Government collaboration and
efficiency
Entrepreneurial ActivityEntrepreneurial Activity
• 2002: Entrepreneur magazine ranks community 61st out of 61
• 2009: Entrepreneur magazine ranks Youngstown one of the top ten places to be an entrepreneur
• 2010: Fast Company magazine ranks Cleveland a “fast city” for entrepreneurial climate
It Takes a VillageIt Takes a Village
• Shared understanding of need
• Many players pursued– Universities/hospitals, angel investors,
venture firms, professional firms, civic leaders
• Government had critical role– Issue 1 renewal– The Ohio Capital Fund– Funding from EDA
Entrepreneurial ActivityEntrepreneurial Activity
Entrepreneurial ActivityEntrepreneurial Activity
Also…
• Reduce impediments to long-term economic growth
• Sustain regional economic competitiveness work over the long-term
The Elephant in the The Elephant in the RoomRoom• Issue of spatial relationships is not
going away
Pe
rce
nta
ge
Gro
wth
Land UseLand Use
Government Costs
• $20 billion (15%) of GDP
Suboptimal investment of public resources• What’s the preferred investment?
Hurdles for Collective Hurdles for Collective PlanningPlanning• Forces driving negative cycle:
– No mandate– Silo’d responsibilities– No personnel– Public doesn’t understand/see collective
opportunity
Can the MPO “leopards” Can the MPO “leopards” also change their spots?also change their spots?• Reshape mandate – greater
integration
• New skill sets
• New partnerships
• Community engagement
Principles for ChangePrinciples for Change
• Start where you can
• Recognize our best collective interest
• Understand systems costs
Next StepsNext Steps
• This is system change
• Find a lever – federal/state/other
• Work with us – philanthropy can be effective boots on the ground
• Let’s get going – now