January 25, 2010 Metropolitan Business Planning Initiative Project Kick-Off Meeting CONFIDENTIAL – for Internal Team & Partner Discussion ONLY.

January 25, 2010

Metropolitan Business Planning InitiativeMetropolitan Business Planning Initiative

Project Kick-Off MeetingProject Kick-Off Meeting

CONFIDENTIAL – for Internal Team & Partner Discussion ONLYCONFIDENTIAL – for Internal Team & Partner Discussion ONLY

TODAY’S AGENDATODAY’S AGENDA

I. Welcome, Introductions, and Today’s GoalsI. Welcome, Introductions, and Today’s Goals

II. Project BackgroundII. Project Background

III. Economic Framework – Understanding Metro EconomiesIII. Economic Framework – Understanding Metro Economies

IV. Applying the Framework: MBPsIV. Applying the Framework: MBPs

V. Common Challenges and Cross-Fertilization OpportunitiesV. Common Challenges and Cross-Fertilization Opportunities

VI. Logistics – Work Plan, Timeline and FundingVI. Logistics – Work Plan, Timeline and Funding








Today’s GoalsToday’s Goals

• Get to know each other• Situate our work together• Begin to dig into the work• Get clear on next steps

• Get to know each other• Situate our work together• Begin to dig into the work• Get clear on next steps



A. GoalsB. “Logic” –

1. Why Metros?2. Why Business Planning?3. MBP Elements4. Federal Policy Implications

C. Outputs

A. GoalsB. “Logic” –

1. Why Metros?2. Why Business Planning?3. MBP Elements4. Federal Policy Implications

C. Outputs

Project GoalsProject GoalsProject GoalsProject Goals

Project GoalsProject Goals

• IMPLEMENT THE BLUEPRINT: go deeper to model specific, sophisticated development work, develop actionable plans, strengthen partner metro economies and enhance peer learning.

• ADVOCATE NEW FEDERALISM: identify and reveal the benefits of new partnership approaches and policies that place metros at the center of federal-state-local relations.

• DISPLAY THE NEW METROPOLITAN LEADERSHIP: demonstrate the existence of strong metropolitan leadership in forging comprehensive, integrated, and sophisticated metropolitan economic strategies.

• IMPLEMENT THE BLUEPRINT: go deeper to model specific, sophisticated development work, develop actionable plans, strengthen partner metro economies and enhance peer learning.

• ADVOCATE NEW FEDERALISM: identify and reveal the benefits of new partnership approaches and policies that place metros at the center of federal-state-local relations.

• DISPLAY THE NEW METROPOLITAN LEADERSHIP: demonstrate the existence of strong metropolitan leadership in forging comprehensive, integrated, and sophisticated metropolitan economic strategies.

Economic development is metro-led.Economic development is metro-led.

Why Metros?Economic Geography and Place-Based Development Why Metros?Economic Geography and Place-Based Development

The Goal is National Economic Growth

Goal is economic development - that is inclusive and sustainable. Metros are the means, not the ends


Economic Growth Flows from Market Activity

The outputs we care about – jobs, income, assets, sustainability – are primarily a function of the complex interaction of housing, labor, business and other market systems, enabled and shaped by government and civic sector activity

Goal is to improve performance of these systems




Major Market Systems Operate at the Metro Level

System performance is function of interactions of people and firms in context of characteristics of place – “on the ground.”

Key geography of many of these systems and interactions is metropolitan region.

Indeed, one of main reasons for very existence of cities is the agglomeration benefits of concentrating economic activity – an effect of place on market performance.





Improving Metro Economic Performance Entails Customized Analysis and Activity

System and environmental characteristics, opportunities and challenges “on the ground” vary by place.

Particularly in the knowledge economy, increasing returns and imperfect competition are giving rise to specialization and divergence.





Improving Metro Economic Performance Entails Customized Analysis and Activity

To strengthen the national economy, we need to strengthen metro economies, and that requires ground-up, tailored, comprehensive activity.


Why “Metropolitan Business Planning”? Why “Metropolitan Business Planning”?

The steps to analyzing and improving a regional economy lend themselves to the proven discipline of business planning.

ECONOMIC DEVELOPMENT PLANNING TRADITIONAL BUSINESS PLANNING

Vision for the Regional Economy Business Mission & Vision

Status of Economy: Assets,Opportunities, Challenges Market Analysis

Goal-Setting & Strategy Identification Analysis of Strategic Alternatives & Risks

Identification of Policies, Programs, Products & Interventions Development of Products & Services

Operational Planning for Implementation Operational & Management Planning

Identification of Funding Needsand Sources Forecasting & Financial Planning

Definition of Outcome Measures & Targets Target-Setting & Performance Tracking

Elements of the Business PlanElements of the Business PlanElements of the Business PlanElements of the Business Plan

MEASURABLE OUTPUTS/IMPACTS

Wage Growth, Reduction in Unemployment,Reduction in CO2 Emissions,Neighborhood Revitalization

MISSION/VISIONCompetitiveness

(Wages, GRP, Innovation)Sustainability

(VMT, Energy Efficiency)Inclusion

(Participation in Employment, Business and Market Growth)

PRODUCTS AND INTERVENTIONS

WIRED Program,Regional Inclusionary Zoning,

Green Impact Zones,

INSTITUTIONAL AND FINANCIAL IMPLICATIONS

• Regional Information Infrastructure• Regional Coordination• Specific Institutions/Implementation

Capacity• Financials Investment “Prospectus”

Tied to Outcome Measures

MARKET SCANStatus, Systems, Dynamics

(Spatial efficiency, Human capital trends matched to

business growth,Business clusters/performance….)

GOALS/STRATEGIESTransit-Oriented Development

Coordinated Workforce and Occupational Clusters

Inner-City Retail Development

MARKET SCAN:Patents, technology transfers, venture capital investments, start-ups, ...

ILLUSTRATIVE STRATEGY:Increase commercialization of knowledge

PRODUCTS/INTERVENTIONS:Innovation funds, business incubators, university partnerships, regional innovation consortia, etc.

OUTPUTS/IMPACTS:New products, business starts, increased productivity, employment; …

GOAL:Increase innovation rate

Example: From Goals to ProductsExample: From Goals to ProductsExample: From Goals to ProductsExample: From Goals to Products

Implications for Federal PolicyImplications for Federal Policy• The federal government should strategically invest in

regional prosperity as a priority for national economic growth.

• The federal government should incent and support comprehensive, integrated regional business planning, as it will enable more effective and efficient federal investment.

• Since regional performance depends upon local, specialized system interactions, the federal response needs to be cross-program, flexible and performance-driven.

• The federal government should strategically invest in regional prosperity as a priority for national economic growth.

• The federal government should incent and support comprehensive, integrated regional business planning, as it will enable more effective and efficient federal investment.

• Since regional performance depends upon local, specialized system interactions, the federal response needs to be cross-program, flexible and performance-driven.

Federal policy should be driven ground-up by regional development plans (reversing the current dynamic).

Project OutputsProject Outputs

• MBP, including Overview and DDI• Prospectus• Cross-site policy implications paper• Summit presentations

• MBP, including Overview and DDI• Prospectus• Cross-site policy implications paper• Summit presentations

Demonstrate better ways to invest in metros to strengthen national economy; develop new federal policies and programs.

DISCUSSIONDISCUSSION








Purpose of Framework Purpose of Framework • Shared understanding of how regional economies work –

a “theory of change” -- enables us to:− Focus on what matters − Understand how it causes economic growth− Determine how to improve performance− Develop common language, plan coverage and presentation

• There’s no one right answer… but there are a lot ofwrong answers

• Shared understanding of how regional economies work –a “theory of change” -- enables us to:− Focus on what matters − Understand how it causes economic growth− Determine how to improve performance− Develop common language, plan coverage and presentation

• There’s no one right answer… but there are a lot ofwrong answers

Our Starting Point: the Blueprint DriversOur Starting Point: the Blueprint Drivers

To implement, we need to move from descriptive to explanatory: understand underlying systems/mechanisms, and how to influence their performance.

GOOD METROPOLITAN GOVERNANCE

Sustainable Growth

InclusiveGrowth

ProductiveGrowth

INNOVATION HUMAN CAPITAL INFRASTRUCTURE QUALITY PLACES

PROSPERITY

Key Systems (Market processes – housing, labor, etc.; production dynamics – clusters, value chains, etc.; innovation dynamics - knowledge creation, networks, commercialization, etc.)

Local (Regional) Enabling Environment(Government regulation, tax and public goods, including

particularly infrastructure and education; civic institutions; qualities of place, including the natural environment; etc.)

Local (Regional) Enabling Environment(Government regulation, tax and public goods, including

particularly infrastructure and education; civic institutions; qualities of place, including the natural environment; etc.)

Inputs to Production(Human capital; real estate; capital; natural and knowledge resources; etc.)

Economic Outputs(Businesses – gross regional product, profits; households – wages, other income, etc.)

Macro/Global Context & TrendsMacro/Global Context & Trends

What Drives Inclusive and SustainableEconomic Growth?What Drives Inclusive and SustainableEconomic Growth?

How Metro Economies GrowHow 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 growth and location decisions (retention and attraction)

• Firm growth and location depend upon increases in efficiency and productivity (of firm and system, including product innovation)

• 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 growth and location decisions (retention and attraction)

• Firm 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?

Micro-FoundationsMicro-FoundationsMicro-FoundationsMicro-Foundations

What is it About Place that Affects Economic Performance? What is it About Place that Affects Economic Performance? “Cities exist to eliminate transport costs for people, goods and ideas” (Glaeser)

• Urbanization and Localization Economies: general and industry-specific benefits of concentration as workers and firms co-locate because of spillovers, synergies, shared labor and job pools, backward and forward linkages among firms, etc. – generating increased efficiency and productivity through flow of ideas and technologies, enhancements to human capital, economies of scale, reduced transaction and transport costs, and so forth. (Marshall, Krugman)

• New Growth Theory: location is becoming more important, and with different benefits, in the knowledge economy, as metros become increasingly centers of idea creation and transmission (through technology, human capital externalities, intellectual spillovers). Increasing returns to knowledge and imperfect competition lead to metro specialization and divergence. (Romer, Lucas)

• Institutional Economics: growth, and particularly innovation, take place in the context of an institutional infrastructure – research, professional and learning networks; universities and civic/business organizations; quasi- and governmental organizations and regulation – which can hamper or accelerate all of the other benefits of concentration. (Coase, Atkinson)

“Cities exist to eliminate transport costs for people, goods and ideas” (Glaeser)

• Urbanization and Localization Economies: general and industry-specific benefits of concentration as workers and firms co-locate because of spillovers, synergies, shared labor and job pools, backward and forward linkages among firms, etc. – generating increased efficiency and productivity through flow of ideas and technologies, enhancements to human capital, economies of scale, reduced transaction and transport costs, and so forth. (Marshall, Krugman)

• New Growth Theory: location is becoming more important, and with different benefits, in the knowledge economy, as metros become increasingly centers of idea creation and transmission (through technology, human capital externalities, intellectual spillovers). Increasing returns to knowledge and imperfect competition lead to metro specialization and divergence. (Romer, Lucas)

• Institutional Economics: growth, and particularly innovation, take place in the context of an institutional infrastructure – research, professional and learning networks; universities and civic/business organizations; quasi- and governmental organizations and regulation – which can hamper or accelerate all of the other benefits of concentration. (Coase, Atkinson)

Productivity and efficiency depend upon concentrations, interactions and synergies between economic activities Key Q:

Where are the leverage points to improve system performance?

Six Key Leverage Points Take Us from Theory to Practice Six Key Leverage Points Take Us from Theory to Practice • Enhance Regional Concentrations (and their performance):

Industries, Occupations and Functions• Deploy High Human Capital Aligned with Job Pools• Develop Innovation Enabling Infrastructure• Increase Spatial Efficiency

• Create Effective Public & Civic Culture & Institutions

• Develop and Deploy Information Resources

• Enhance Regional Concentrations (and their performance): Industries, Occupations and Functions

• Deploy High Human Capital Aligned with Job Pools• Develop Innovation Enabling Infrastructure• Increase Spatial Efficiency

• Create Effective Public & Civic Culture & Institutions

• Develop and Deploy Information Resources

These overlap, and themselves interact. This is work-in-process! Anticipate expanding and refining, especially in practice.

Enhance Regional Concentrations: Industries, Occupations and FunctionsEnhance Regional Concentrations: Industries, Occupations and Functions• What is it?

This leverage point has to do with “clustering,” recognizing that what is clustering may be shifting -- toward occupations and functions -- and the whole notion may need to be broadened, brought to ground, and complemented with other production-side strategies. It focuses on the optimal interaction between production components of an economy – the optimal mix and scale of industries, occupations, functions; multiple specializations; etc. Cultivating benefits of concentration requires understanding nuances of what and how specific types of concentrations create efficiencies and enhance productivity in your region.

• Aspects to consider include:− Current concentrations− High-growth potential areas− Geography of concentrations− Optimal mix and scale of industries, occupations, functions− What factors (locational, institutional, others) contribute to efficiency/productivity benefits

gained from concentration

• Strategies might include:− Provide co-location opportunities (e.g., business parks)− Offer co-location incentives− Enhance access to capital for targeted concentrations− Strengthen institutional and network infrastructure− Strengthen “inputs” to concentration – from training/education to venture capital

Leverage Point 1Leverage Point 1Leverage Point 1Leverage Point 1

Deploy High Human Capital Alignedwith Job PoolsDeploy High Human Capital Alignedwith Job Pools• What is it?

This leverage point addresses human capital in the context of economic performance: the goal is not just human capital, but linked, mutually reinforcing, human capital and job pools. Pools of workers and jobs/firms attract each other. Not just quality, but deployment, are key to productivity and efficiency gains. Entails a two-fold, iterative process:

− Growing supply of skilled workers to meet employer demands− Growing demand for skilled workers by cultivating appropriate jobs

• Aspects to consider include:− Concentrations and growth prospects (both skills and occupations)− Existing skills/education levels – obstacles and opportunities− Quality of education/training system− Attraction/retention record and factors

• Strategies might include:− Increase demand-side focus of workforce development− Increase access, reduce transaction costs in labor market− Links to occupational concentration strategies (Leverage Point 1)− Production, attraction, retention strategies


Develop Innovation Enabling InfrastructureDevelop Innovation Enabling Infrastructure• What is it?*

Innovation inherently drives increasing productivity and efficiency, and is the source of all long-term growth. An infrastructure providing inputs and mechanisms to facilitate interactions and commercialization enhances innovation rates.

• Aspects to consider include:− Cluster formation and dynamics− Public sector enablers/constraints− Nature of supporting institutions and networks− Flow of R&D and early-stage business funding− Rate/pattern of commercialization− Firm starts, growth, trajectories

• Strategies might include:− Build regional R&D capacity (education, facilities, funding)− Foster entrepreneurship & commercialization of knowledge− Institutional development: facilitate opportunities for interdisciplinary cross-

fertilization− Cluster formation, especially high human capital occupational concentrations

(Leverage Points 1 and 2)


*“…new products, new services, new technologies, new ways of organizing work, *“…new products, new services, new technologies, new ways of organizing work, and new business models….” (Brookings and new business models….” (Brookings Metro PolicyMetro Policy))

Increase Spatial EfficiencyIncrease Spatial Efficiency• What is it?

The location of firms and workers, producers, suppliers and consumers within the region determines transportation costs for people and businesses, and influences agglomeration benefits (such as shared inputs and knowledge spillovers). Generally, to increase efficiency and productivity of the metro economy, we want to:

− Minimize transportation costs− Reduce congestion− Maximize agglomeration benefits− Avoid segregation and concentration of poverty

• Aspects to consider include:− Public policies re: land use/zoning, infrastructure, etc.− Degree of housing-jobs mismatch− Access to transit− Spatial concentrations of firms, occupations, functions, etc.

• Strategies might include:− Transit-oriented and mixed-use/mixed-income development− Affordable housing programs (inclusionary zoning, etc.)− Fostering business co-location


Create Effective Public & Civic Culture & InstitutionsCreate Effective Public & Civic Culture & Institutions• What is it?

Government and civic sector activities hinder or enhance the productivity and efficiency of the economic systems themselves – attracting entrepreneurs, enabling markets, lowering transaction costs, increasing deployment of assets, etc. A culture of trust and collaboration, as well as institutional flexibility and adaptability, are increasingly important (including particularly to leverage points 1 and 3).

• Aspects to consider include:− Degree of horizontal and vertical fragmentation− Areas and mechanisms for inter-jurisdictional coordination− Transparency, openness, responsiveness− Strategic engagement of citizens, private and civic sectors

• Strategies might include:− Consolidation− Revenue sharing− Civic engagement (program specific)− E-government− Fast-tracking− Special purpose entities− Tailored incentives


Develop and Deploy Information ResourcesDevelop and Deploy Information Resources• What is it?

Rich information resources and networks increase market efficiencies by reducing finding, measurement and other transaction costs; facilitate knowledge spillovers and innovation; and enable continued business planning, monitoring and refinement.

• Aspects to consider include:− Collection, accessibility, dissemination of relevant info− Development and provision of analytic tools (not just data: answers)− Specific market inefficiencies, barriers, opportunities

• Strategies might include:− Data warehouse− Market driven planning agency− Cluster or strategy specific on-going shared info/analytics


Current Economy’s Meta-Drivers AlsoShape Strategic InterventionsCurrent Economy’s Meta-Drivers AlsoShape Strategic Interventions•Export-oriented•Innovation-led•Opportunity-rich•Low-carbon

•Export-oriented•Innovation-led•Opportunity-rich•Low-carbon

Huh???

What?!!

Eureka!

Our Starting Point: the Blueprint DriversOur Starting Point: the Blueprint Drivers


Sustainable Growth

InclusiveGrowth

ProductiveGrowth


PROSPERITY


Sustainable Growth

InclusiveGrowth

ProductiveGrowth


PROSPERITY

Where We are Now:An Economic Framework for Business Planning

Levers / Interventions

Strategies & Implementation

Prosperity

Export-oriented Low-carbon Innovation-driven Opportunity richMetro-led

Fundamental Drivers of ProsperityInnovation Infrastructure Human Capital Quality Places

Governance

Developand DeployInformationResources

DevelopInnovation-

EnablingInfrastructure

Create EffectivePublic & Civic

Culture & Institutions

DeployHuman CapitalAligned with

Job Pools

EnhanceRegional

Concentrations

Increase Spatial

Efficiency









Metro Development Baseline/Overview (MDBO)

Mission/Vision↓

Market Scan/Environmental Analysis↓

Goals↓

Strategies↓

Detailed Development Initiative (DDI)

Products, Policies, Programs, Interventions

↓

Organizational & Operational Implications

↓

Financial Implications↓

Performance Metrics

Pilot MBPs Will Lay the GroundworkPilot MBPs Will Lay the Groundwork

FutureDDI

Metropolitan Investment Prospectus

FutureDDI

Metro Development Baseline/Overview (MDBO)

Mission/Vision: Sustainable communities…dense nodes…efficiently linked people & businesses ↓

Market Scan Results: Emerging specialization in alternative energy businesses and occupations↓

Goals: Increase number of establishments, employment and total payroll in the alternative energy field↓

Strategies: (a) Co-location incentives; (b) Targeted, demand-driven workforce devel.; (c) Links to students↓

Detailed Development Initiative (DDI)

Intervention: Cluster-Focused Industrial Park that:•Facilitates business co-location•Houses on-site “training academy” that

− Provides skill devel. for key occs./functions− Utilizes demand-driven curriculum− Offers internship, co-op & mentorship opportunities to local students

↓

Operational Plan↓

Financial Sources & Uses↓

Metrics: new jobs, new cos., $payroll, $GMP, etc.

What Might a Pilot MBP Look Like?What Might a Pilot MBP Look Like?

Metropolitan Investment Prospectus

CLEVELAND Summary of Content

Mission/Vision

• “Northeast Ohio is a diverse, united region made up of individuals fully engaged in creating a vibrant regional economy home to growing, innovative employers, connected core communities and valued natural spaces. All residents participate fully in educational and economic opportunities and engaged citizens promote collaborative local governments that support sustainable growth.”

• 6 core cultural principles• 4 future characteristics

Market Scan• 4 top-line economic growth measures – % change in employment, income, productivity and output• 9 indicators: (1) Skilled Workforce and R&D , (2) Legacy of Place, (3) Urban Assimilation, (4) Racial Inclusion

and Income Equality, (5) Locational Amenities, (6) Technology Commercialization, (7) Urban/Metro Structure, (8) Individual Entrepreneurship, (9) Business Dynamics

• 36 supporting variables arrayed under the 9 indicators

Goals

• Top-level goals:Per capita income > national averageJob growth > national averageCore city poverty < 20%• Area-specific goals and quantitative targets re: Business Growth, Talent Development, Racial and Economic

Inclusion, Government Collaboration and Efficiency

Strategies

• Entrepreneurship: maximize available capital and provide needed consulting/services• Innovation/Research: attract more state $ in key industries, align efforts re: federal R&D/commercialization $,

attract high-growth cos., assist transition of existing cos.• Inclusion: network to support sales growth in minority businesses• Talent Development: align stakeholders to increase attainment and create life-long learning culture• Government: Educate, engage and empower citizens to advance key initiatives

Detailed Development Initiative

“Integrate and increase flexibility of a variety of existing manufacturing extension, Small Business Administration, work force and other programs to assist a growing portfolio of high potential but challenged manufacturing companies transition to new markets with strong growth potential thereby diversifying and fortifying the regional economic base and providing employment opportunities for displaced workers.”

TWIN CITIES Summary of Content

Mission/Vision

“The vision of the Twin Cities Metropolitan Business Planning Team is to facilitate transformation of the regional economy to a system that: • Underwrites the emergence of the Twin Cities as a magnet for young, entrepreneurial talent • Is coupled with effective planning on a metro-wide scale • Is able to make strategic investments in education, workforce development and other areas critical to continued competitiveness • Leads firms to recognize the region’s core competencies and choose to cluster in the Twin Cities region • Meets the range of needs specific to entrepreneurs operating in the region • Facilitates effective commercialization of research emerging here.”

Market Scan

• Itasca Project Job Growth Task Initiative categories:Cost of doing business – tax environment, legislative/regulatory, labor costQuality of life – crime rate, volunteerism and arts, civic engagement, leisure activitiesHuman capital – education attainment, school test performance, achievement gapInfrastructure – commute times, avg. annual delay, public transportation mode shareInnovation and start-up – sm. biz survival index, per capita VC $, sm. Biz financing, entrepreneurs/100K

population, churn, R&D $, productivity• Twin Cities Compass – Civic Engagement, Early Childhood, Economy & Workforce, Education, Environment,

Health, Housing, Public Safety, Transportation• Minneapolis-St. Paul Business Vitality Index

Goals• Develop a unified regional vision• Develop a regional investment model• Develop a regional economic development organization• Focus on innovation, commercialization and entrepreneurship as job growth enablers

Strategies• Leverage cluster analysis (underway) to target efforts• Retool financial & tax environment for entrepreneurs and start-ups• Establish a medium for exchange and support• Foster regional amenities that attract creative workforce


• “…to increase innovation, commercialization and entrepreneurship in our region…as a powerful response to lagging job growth and economic uncertainty.”

• “… a strategic initiative centered around transforming the region’s innovation and entrepreneurial culture, with a particular, but not exclusive focus on the millennial generation. This strategic focus will allow us to respond to both the new economic realities as well as the new worldview held by this rising generation.”

SEATTLE Summary of Content

Mission/Vision

1.People living here have good jobs and earn good incomes.2.Jobs are created by businesses.3.Embracing our region’s diversity is good for business.4.The region has vibrant cities and thriving communities.5.The region has a healthy and beautiful environment and a good quality of life.6.Regional collaboration on a shared economic agenda ensures our region’s long-term, sustainable economic

prosperity.

Market Scan

• Characteristics of 15 identified/existing industry clusters• Regional Competitiveness Indicators (vs. 5 US peer regions) report – 20 indicators re:

(1) education and the workforce, (2) technology and innovation, (3) enterprise and investment, (4) business climate, (5) transportation and infrastructure, (6) quality of life and social capital

• International Benchmarking Consortium (vs. 12 int’l. peer regions) – in-depth research on a specific theme for annual conference

• Job openings vs. regional 4-year degree production

Goals

Most relevant/recently adopted and/or updated goals and strategies include those for:INDUSTRY CLUSTERS:• Tourism and Visitors• Military• Aerospace• Life Sciences• Clean Technology

Strategies

FOUNDATIONS:• New and small businesses – focus on minority-owned• Social Capital/Quality of Life – housing affordability and cultural access• Transportation• Tax Structure• Education


“…help develop an industry cluster that can grow our region’s economy through the export of goods and services that increase energy efficiency throughout the world”

MBP Component

Metros’ Progress Next Steps

Mission/Vision

Ensure mission/vision statements:• Create a clear picture of where the metro sees itself in 5, 10, or 50 years• Emphasize desired future outcomes, as opposed to the process for achieving

them• Reflect place-specific priorities/values• Incorporate key messages articulated in topic-specific (e.g., transportation,

housing) plans/reports

Market Scan

• Organize analytic findings within the MBP “leverage points” framework• Update out-of-date metrics, as data is available• Identify and calculate metrics for drivers and leverage points not covered in

existing analytic work• Integrate analytic results from disparate sources to create a cohesive narrative

of the local economy• Begin deeper analytic dive into areas related to chosen DDI theme

Goals• Organize existing goals and strategies within the MBP “leverage points”

framework• Identify any gaps in coverage between (existing goals/strategies vs. leverage

points)• Articulate goals and strategies that fill in gaps, using results of Brookings-led

and local market scan• Quantify goals, where possible

Strategies


Convert DDI theme into discrete, concrete project by:• Specifying the products, services and programs the DDI will deliver to

implement the selected strategies;• Conducting deeper market analysis on the relevant area(s) of the economy;• Identifying and developing design, implementation, financial and other

information from best comparable products, services and programs

The Market Analysis / Environmental Scan Describes and Situates Regional EconomiesThe Market Analysis / Environmental Scan Describes and Situates Regional Economies

The concept of the baseline scan is to:• Identify and measure key indicators of metro performance

in the new economy

• Survey how well the regional economy is doing, what drives it, and what may be inhibiting its performance

• Inform the development of goals, strategies, and specific initiatives, setting the context for and informing the Detailed Development Initiative

The concept of the baseline scan is to:• Identify and measure key indicators of metro performance

in the new economy

• Survey how well the regional economy is doing, what drives it, and what may be inhibiting its performance

• Inform the development of goals, strategies, and specific initiatives, setting the context for and informing the Detailed Development Initiative

Selected Indicators Measure What MattersSelected Indicators Measure What MattersThe purpose of the scan is to determine:• What is important to measure?

− Metrics selected according to economic development theory and relevance to practice

• What factors deserve development attention?− Scan includes both high-level output measures (e.g., GMP) as well as

outcome metrics (e.g., innovation rates) that can describe the performance of key factors/systems that account for overall performance

• How can metros do better on targeted factors?− Scan also evaluates measures of inputs and mechanisms (e.g.

availability of venture capital) that can be influenced to improve performance of key factors/systems

The purpose of the scan is to determine:• What is important to measure?

− Metrics selected according to economic development theory and relevance to practice

• What factors deserve development attention?− Scan includes both high-level output measures (e.g., GMP) as well as

outcome metrics (e.g., innovation rates) that can describe the performance of key factors/systems that account for overall performance

• How can metros do better on targeted factors?− Scan also evaluates measures of inputs and mechanisms (e.g.

availability of venture capital) that can be influenced to improve performance of key factors/systems

Brookings Will Compare Inputs andPerformance Across the Top 100 MetrosBrookings Will Compare Inputs andPerformance Across the Top 100 Metros

• Output• Productivity• Wages

• Output• Productivity• Wages

E.g., human capital• College attainment• Knowledge occupations

E.g., human capital• College attainment• Knowledge occupations

• High school attainment• Labor force participation• High school attainment• Labor force participation

ProsperityProsperity

DriversDrivers

LeversLevers

Local Analysis Will Enhance the Brookings Scan with Additional, Specifically Local, Indicator WorkLocal Analysis Will Enhance the Brookings Scan with Additional, Specifically Local, Indicator Work

E.g., human capital• Skills/job matching• Knowledge occupations

in XYZ industries

E.g., human capital• Skills/job matching• Knowledge occupations

in XYZ industries

• Vocational and specializeddegree programs

• Vocational and specializeddegree programs

ProsperityProsperity

DriversDrivers

LeversLevers

MDBO & DDI Need to Move Ahead SimultaneouslyMDBO & DDI Need to Move Ahead SimultaneouslyMDBO & DDI Need to Move Ahead SimultaneouslyMDBO & DDI Need to Move Ahead Simultaneously

TASKS PRIMARY RESPONSIBILITY

MDBOContinue fitting existing work into MBP framework Metro Partners

Write narrative section for Regional Economic Framework Brookings/RWV Team

Identify gaps in MDBO & move toward filling in Metro Partners (w/assistance)

Complete & distribute baseline scan Brookings/RWV Team

Light metro-tailored narrative to accompany Brookings baseline scan Brookings/RWV Team

DDI

Propose refinement of initial concept Metro Partners

Identify relevant case studies &/or experts for consultation Brookings/RWV Team

Begin defining specific project parameters Metro Partners (w/assistance)









Partners Share Challenges and Learning OpportunitiesPartners Share Challenges and Learning Opportunities• Themes are emerging from early conversations and materials

− Areas of common exploration/struggle− Areas of relative strength in particular metros

• Two topics to start the cross-metro conversation:− Innovation and entrepreneurship− Managing regional growth – sustainability and spatial efficiency

• Themes are emerging from early conversations and materials− Areas of common exploration/struggle− Areas of relative strength in particular metros

• Two topics to start the cross-metro conversation:− Innovation and entrepreneurship− Managing regional growth – sustainability and spatial efficiency

Innovation and EntrepreneurshipInnovation and Entrepreneurship• Common threads:

− Central to all 3 metros’ economic development plans− Variations in approach and application− Struggle to create meaningful metrics− Striving to develop concrete interventions to enhance performance

• Kicking off today’s discussion:− Cleveland’s success in fostering growth of new, cutting-edge

businesses through JumpStart program− Twin Cities’ pursuit of a DDI to drive innovation and small business

growth, particularly among Millennials

• Common threads:− Central to all 3 metros’ economic development plans− Variations in approach and application− Struggle to create meaningful metrics− Striving to develop concrete interventions to enhance performance

• Kicking off today’s discussion:− Cleveland’s success in fostering growth of new, cutting-edge

businesses through JumpStart program− Twin Cities’ pursuit of a DDI to drive innovation and small business

growth, particularly among Millennials

Managing Regional Growth for Enhanced Economic PerformanceManaging Regional Growth for Enhanced Economic Performance• Regional growth strategy can contribute to multiple

MBP objectives:− Sustainability− Inclusion− Spatial efficiency− Etc.

• Kicking off today’s discussion:− Growth strategy underlying Seattle’s integrated regional

planning process – PSRC’s Vision 2040, Regional Economic Strategy and Transportation 2040

• Regional growth strategy can contribute to multiple MBP objectives:− Sustainability− Inclusion− Spatial efficiency− Etc.

• Kicking off today’s discussion:− Growth strategy underlying Seattle’s integrated regional

planning process – PSRC’s Vision 2040, Regional Economic Strategy and Transportation 2040

Other Idea-Sharing Opportunities?

Other Idea-Sharing Opportunities?








MBP Project Timeline is AggressiveMBP Project Timeline is Aggressive

MILESTONE TYPE* TARGET DATEProject Kick-Off Meeting M January 25

Metro Partner Site Visits M February 1 – 19

Brookings scan/spreadsheet D February 19

Initial draft framework and scan narrative D March 19

1st Draft of MDBO D April 19

Peer Learning Session #1 M Week of May 3

Final MDBO D May 17

1st Draft of DDI & Prospectus D June 7

Peer Learning Session #2 M Week of June 21

Final MBP (MDBO + DDI) & Prospectus D September 15

Global Summit M December 2010

* M = Meeting | D = Deliverable

Other Logistical IssuesOther Logistical Issues• Metro partners’ funding status• Scheduling site visits

− Cleveland− Twin Cities

• Others?

• Metro partners’ funding status• Scheduling site visits

− Cleveland− Twin Cities

• Others?

Closing RemarksClosing Remarks

January 25, 2010 Metropolitan Business Planning Initiative Project Kick-Off Meeting CONFIDENTIAL – for Internal Team & Partner Discussion ONLY.

Documents

economic activity

economic geography

metro economic performance

national economic growth

placebased development

place metros

market performance

funding slide