Coming of Age in a New World Update on Shaping Greater Sudbury’s Economic Development Agenda—2015 Presentation to Council January 8, 2003.

Coming of Age in a New WorldUpdate on Shaping Greater Sudbury’s Economic

Development Agenda—2015

Presentation to CouncilJanuary 8, 2003

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“Innovation has become the defining challenge for global competitiveness. To manage it well, companies must harness the power of location in creating and commercializing new ideas.”

Michael Porter and Scott Stern, MIT Sloan Management Review, Summer 2001

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Coming of Age in a New World:Leadership Matters for Prosperity

Developmental

Requirements

Growing

Pains

Growing Up

Essential nutrients for growth: all elements

are present, but in need of a supplement

Diagnosis: 4 out of 7 conditions for wealth

creation require attention

Focus on:• quality of place to attract and retain

talent• existing and emerging wealth• incubating new sources of wealth

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Developmental Requirements: Essential Nutrients for Growth in the New

Economy

• Quality of place: natural, recreational and lifestyle amenities to attract and retain talent

• Local strength: to build regional and global prosperity

• Spatial proximity: of interconnected firms and institutions to feed community/cluster growth

• Dense collaborative learning networks: to stimulate learning and sustain cluster development

• Government leadership: to create an environment in which innovation can “take off”

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Assessment of Sudbury’s Prospects:

Quality of Place

Leverage and market much more:- Close proximity to wilderness and natural

environment- Affordable housing- Safety and security- Desirable lifestyle

According to a KPMG study, quality of place enhances the attractiveness of a job by 33%.

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Assessment of Sudbury’s Prospects: Local Strength

Celebrate and accentuate:– Mining supply and services sector, a ‘gem’ which is

growing in size and value– Becoming known for eco-industrialism (Globe and

Mail article, 2002)– Wired city, ready for more action– New medical school, a boon for all sectors– Increasing number of attractions, building on unique

history “A paradoxical consequence of globalization… accentuates rather than minimizes the significance of the local context for innovative activities.”

David Wolfe, Social Capital and Cluster Development in Learning Regions, 2002

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Assessment of Sudbury’s Prospects:

Spatial Proximity

Great potential:– Mining and environmental spin-offs—huge

opportunities– Strengthening linkages and synergies in health,

tourism and education will incubate new areas of wealth generation

“The hedgehog concept is not just about building on strength and competence but about understanding what your organization truly has the potential to be the very best at and sticking to it.”

Jim Collins, Good to Great, 2002

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Assessment of Sudbury’s Prospects:

Dense Collaborative Learning Networks

In early stages:– Key champions have stepped up to the plate– GSDC taking leadership– Multiple discussion forums in community– Passion for change

“The production paradigm of this “new economy” is highly dependent on localized or regionally-based sources of knowledge and learning. Given the social nature of learning and innovation, these processes work best when the partners involved are close enough to one another to allow frequent interaction and the easy, effective exchange of information.”

Peter Maskell and Anders Malmberg, Cambridge Journal of Economics, 1999

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Assessment of Sudbury’s Prospects:

Government Leadership

Much more wanted:– To build civic pride and Sudbury’s image– To commit to a long term strategy– To remove red tape– To partner with private sector to build local strength

faster

“Governments can contribute by removing regulatory and other barriers to the expansion of the cluster, sponsoring forums to bring together cluster participants, encouraging efforts…to attract potential suppliers and service providers…providing improvements to the transportation, communications and other infrastructure needed…”

Michael Porter, Economic Development Quarterly, 2000

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Creating a “Report Card”

• August-September – 27 interviews completed with community leaders on perceptions of Sudbury’s strengths and weaknesses.

• September 11 – Perceptions verified during meeting with 40 community leaders

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Growing Pains: 4 out of 7 conditions for wealth

creation need attention

Factor What is included Sudbury’s Grade

Achievable quality of life

Housing, health care, recreation and culture B

Accessible technology

Universities, research labs, corporate R&D facilities that discover new knowledge

B-

Advanced communications

Availability of access to digital communications B-

Acceptable business climate

Set of regulatory and administrative requirements and services in the region

C+

Adaptable human resources

Institutions and programs that produce workforce capabilities in the region

C

Available financing Institutions that provide capital for seed, expansion, and renewal

D

Adequate physical infrastructure

Facilities for commercial and industrial sites, water, power, waste disposal, transportation

E

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Drafting a Strategic Vision

November 27 and 28 – meetings with 90+ community leaders to discuss potential for economic development in four areas:– Education– Tourism– Health and biotech– Natural resources

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Growing Up:A Vision for Greater Sudbury 2015

Engine 1The best mining

supply and services in the

world

Engine 2A city for the

creative, curious and adventuresome

Engine 3The Muskoka of

the North

Engine 4Innovator in 21st century health research and

service delivery

Engine 5A model for

eco-industry and renewable

energy

World experts in harnessing, managing

and sustaining the natural environment

and its resources

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Engine #1: The best mining supply and services in

the world

• Be a leader in manufacturing cost-effective equipment and tools for deep mining, including mine safety, and innovative processing of natural resources.

• Leverage technology assets and mining robotics expertise for energy, space and military applications.

• Create a world-class mining engineering school.

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Engine #2: A city for the creative, curious and

adventuresome

• Upgrade and revitalize infrastructure – downtown and surrounding area – with businesses and amenities that support a high-tech environment and attractive urban living experience.

• Make public transportation seamless and accessible for students, residents and visitors.

• Recognize and reinforce the attainment of higher education as a cultural norm

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Quality of Place Indicators

2002 study commissioned by the provincial government to rank 25 Canadian cities with populations of 100,000+ on indicators related to economic prosperity

M. Gertler and R. Florida, Competing on Creativity: Placing Ontario Cities in a North American Context, November 2002

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How Sudbury Ranks out of 25 Canadian Cities

• 4th lowest on Talent Index – proportion of the population 18+ with a BA or higher

• 2nd lowest on Bohemian Index – employment in artistic and creative occupations

• 8th lowest on Mosaic Index – proportion of foreign born

• Lowest on Tech-Pole Index – high technology industrial output relative to total output

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Engine #3: The “Muskoka of the North”

• Leverage natural amenities, environmental successes and geological history as recreational and lifestyle attractors.

• Selectively enhance arts and cultural attractions to fit unique heritage and local strengths.

• Position Greater Sudbury as superior to Muskoka for recreational living.

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Engine #4: Innovator in 21st century health research and

service delivery

• Build world leadership in rural medicine: an integrated, collaborative system of prevention, promotion and delivery at each stage of need and lifecycle.

• Incubate and pursue biotechnology R & D, linked to clinical strengths (eg. Cancer treatment).

• Raise commercialization bar: patents, trademarks, new products, R & D expenditures, scientists and engineers.

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Engine #5: A model for eco-industry and renewable

energy

• Lead the nation in development and use of sustainable energy technologies (eg. Earth Care Sudbury).

• Adopt a leading-edge and supportive policy framework for community energy efficiency.

• Build eco-friendly places and products to attract talent, tourists and businesses.

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Coming of Age in a New World:Leadership REALLY Matters for Prosperity

Developmental Requirements

Growing Pains

Growing Up

Supplement all five

Start with the worst and all the rest benefit

Get good at collaborating

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Overall Role of Council

• Act as one unifying voice; be unwaveringly committed to the Vision

• Set priorities for investments and initiatives consistent with the Vision

• Champion “Report Card” improvement

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Specific Strategies for CouncilThe 3 “P”s

• Policy: Improve Greater Sudbury’s attractiveness for industrial and commercial development – cost-competitiveness and “red-tape”

• Processes: Fast track more efficient and customer-focused ways of doing business with the city to attract, retain and develop local business

• Program Priorities: – Information – Improve the accuracy of and access

to information on Greater Sudbury’s current assets and future plans

– Image -- Start now to market Greater Sudbury’s Vision

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Immediate Action Items for CouncilThe 3 “I”s

• Image: Continue to invest in beautifying the city (flowers, landscaping, signage, etc.)

• Information: Clarify current assets by commissioning two profiles: a) mining supply and services, and b) tourism

• Infrastructure: Set goals for improving Greater Sudbury’s transportation system in each of the next three years

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Quick Wins in the Next Six Monthsfor Greater Sudbury

• Enhanced presence of Economic Development on Greater Sudbury Website:– Dedicated staff in place by January 2003– Modifications to Website completed by March 2003

• Making Sudbury more “youth friendly”:– Discussions ongoing between City and three educational

institutions– Decision on Bus Pass plan by June 2003

• Joint marketing brochure:– Discussions ongoing between City and three educational

institutions– Go/No-go by February 2003

• Improving the “Report Card”– GSDC will identify two priority issues from the “Report Card” and

will present recommendations for action to Council by the end of April 2003

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Next Steps for GSDC Economic Development Strategy

In partnership with stakeholders:– validate Vision– identify priorities, high impact projects and

“ownership”– determine structural entities for sustainability

(eg. Mining Industry Council, Tourism Board)– clarify roles and responsibilities; develop a

road map

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Toward the Future

“You are rich when you meet the demands of your imagination.”

Henry Joyce

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Appendix Contents

• Detailed perceptions behind report card ratings

• Detailed rankings of Canadian cities on quality of place indicators

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Achievable Quality of Life

POSITIVES• unparalleled physical

beauty, access to wilderness, lakes and recreation

• affordable housing• Sudburians are resilient

with a track record of facing up to adversity and making change

• big city living in a small town

• “hub” referral centre of the North

NEGATIVES• too little attention to arts

and culture• 20% don’t have family

physicians• above average morbidity

and mortality rates• collective inferiority

complex

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Accessible Technology

POSITIVES• world class mining

expertise• research growing at

university and hospital• existing expertise –

Neureka

NEGATIVES• tend to work in silos – not

much collaboration across sectors – limits cross-pollination

• research accomplishments are unknown

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Advanced Communications

POSITIVES• broad banding of

community• strong existing

infrastructure

NEGATIVES• cellular black holes at city

limits• challenge is to leverage

existing infrastructure – need users

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Acceptable Business Climate

POSITIVES• large local market

compared to most Northern communities

NEGATIVES• inadequate incentives for

companies relocating or small business ventures

• less of an entrepreneurial spirit than in the South – “Mother Inco” mentality

• too much red tape for developers, limiting bylaws

• too little attention by Council and staff to needs of business

• perception that amalgamation has distracted politicians from focusing on planning for the future

• City needs to market itself internally and externally to overcome inferiority complex

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Adaptable Human Resources

POSITIVES• 3 post-secondary

institutions• bilingual workforce

NEGATIVES• lower participation rate in

post-secondary education than in the south

• historical lack of recognition for education (eg. wage differentials)

• losing youth and those with expertise to the south – can’t attract skilled workers

• negative perceptions associated with collective agreements

• not enough role models and infrastructure to support entrepreneurial ventures

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Available Financing

POSITIVES NEGATIVES• too much reliance on

government grants• most financing

decisions are made in Toronto

• lack of local “angel” funding for good ideas – conservative consensus funding limits innovation – lack of risk funding

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Adequate Physical Infrastructure

POSITIVES• Hwy. 69 will be four-laned

over 10 years

NEGATIVES• airport runway 300 ft. too

short for FedEx planes• no longer a rail link to deep

water port• roads within Sudbury, not in

good repair• confusion over availability of

serviceable land – need an inventory of existing infrastructure

• unattractive first impression of the city from Hwys. 69 and 17.

• lack of sufficient investment in flowers and landscaping to “beautify” the city

• need assurance of cheap source of energy

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Quality of Place:The Talent Index

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Quality of Place:The Bohemian Index

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Quality of Place:The Mosaic Index

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Quality of Place:The Tech-Pole Index