driving washington’s prosperity: egils milbergs strategic plan update

Egils Milbergs Executive Director

Washington Economic Development Commission Olympia, Washington

www.wedc.wa.gov [email protected]

360-586-5661

Driving Washington’s Prosperity A Strategy for Job Creation and Competitiveness

January 9, 2013

1 WA Economic Development Commission

http://www.wedc.wa.gov/

mailto:[email protected]

Commission Members

WA Economic Development Commission 2

A Ten Year Vision Make Washington the most attractive, creative and fertile

environment for innovation in the world by 2020 3 WA Economic Development Commission

New Approach for Economic Development

Traditional Model Innovation Model

Attracting companies Investing in talent, ideas and infrastructure

Jobs Incomes

Top Down Development Bottom-up organic growth

Closed innovation Open innovation

Competing regions Collaborating regions

Geographic clusters Globally linked networks


The problem we need to solve!

5 WA Economic Development Commission Data source: U.S. Bureau of Labor Statistics

-75.67

-200

-150

-100

-50

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50

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57

Diffe

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ith In

itial

Per

iod

Empl

oym

ent

(Tho

usan

ds o

f Wor

kers

)

Months of Recovery

2001 Recession (3 quarters)Since Q4 2007

Largest Absolute Changes in Employment October 2012 year-over-year, based on 3 month moving average

Data source: Washington State Employment Security Department. WA Economic Development Commission 6

The Great Policy Reset

FROM • Job Preservation • Shovel Ready • Expand Safety Net • Consumption • Debt • Top-down macro

strategies

TO • Job Creation • Innovation • Upgrading Skills • Investment • Exports • Bottom-up organic

strategies


What do we need to do? Progress needed along five drivers

Intellect Investment

Regulations Infrastructure

International


Driver One: Fueling the Future—Making Talent a Top Priority


Technical Prof

Technical

Unskilled

Prof

Unskilled

1. Create jobs for Washingtonians and industry needs by achieving 60% post-secondary degrees & credentials.

2. Increase pool of qualified workers by emphasis on STEM proficiencies and career and technical education at the HS level.

3. Fill critical skills gaps and grow new enterprises by attracting and retaining world’s best and brightest minds and funding education in high demand occupations.

4. Upgrade skills of the unemployed through expanded flexibility of unemployment programs to support training where job vacancies exist.

Driver Two: Adding Horsepower—Investing in Entrepreneurship

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1. Improve tax and regulatory policy to foster growth of start-ups and job creating business clusters

2. Invest in World class research talent, assist new enterprise formation and connect the state's research base to industry, entrepreneurs and investors.

3. Leverage job creating potential of the innovation ecosystems through large scale collaboration and competing aggressively for federal, foundation and private funds.

WA Economic Development Commission

Pillar Three: Paving the Way—Connecting through Reliable Infrastructure

1. Implement alternative financing mechanisms for transportation infrastructure for asset preservation, freight mobility and investment in economic corridors.

2. Prioritize the most critical infrastructure challenges and lead globally in energy efficiency, clean water, advanced manufacturing, cyber-security, sustainable urban design and broadband deployment.

3. Require economic development and long term job creation criteria the capital budgeting process.


Driver Four: Running Lean—Regulating Smarter


1. Systematically review on sector-by-sector basis all state regulations for their cost-effectiveness and determine overlaps, excessive costs, obsolescence, redundancy and solutions.

2. Expand agency use of lean process improvement to lower cost of regulatory compliance and reduce time delays.

3. Create navigator service for industry to manage their interaction with the regulatory system, including a comprehensive online portal for regulatory compliance.

Pillar Five: Firing on all Cylinders--Expanding International Business

1. Intensify innovation and collaboration in the Pacific Northwest economic region and support cross-border projects for economic diversification, expanded trade and jobs.

2. Drive job creation through a coordinated system of trade services between the programs of Washington State and regional and federal programs.

3. Strengthen export assistance services and re-establish overseas representation.

4. Double state-led, cluster based trade missions to increase new-to-market exporting firms.


15 Innovation Partnership Zones


• Bellingham Innovation Zone • Aerospace Convergence Zone • North Olympic IPZ • Tri-Cities Research District • S. Lake Union Life Science IPZ • Spokane University District IPZ • Bothell Biomedical

Manufacturing Corridor • Central Washington Resource

Energy Collaborative • Grays Harbor Sustainable

Industries • Pullman –Clean Tech Industries • Walla Walla IPZ • Interactive Media and Digital

Arts • King County Financial Services

Collaborative • Urban Center for Innovative

Partnerships, Auburn • Urban Clean Water Technology

Zone, Tacoma

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IPZ Innovation Framework

Relationship Capital IPZ Ecosystem

• Industry • Research • Workforce • Entrepreneurs • Capital • Infrastructure • EDCs • Etc…..

Bottom-up Engagement

Collective Efficiency

Investments Projects Strategy

Strengths & Weaknesses

Joint Innovation Opportunities

OUTCOMES

Prepared by Egils Milbergs v.1.1

Barriers to Interaction


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September 2012 we celebrated Commerce & Innovation Economy with 25 events, symposia and demonstrations. Link: www.thenextfifty.org


Thank you!


“Sooner or later, we sit down to a banquet of consequences”

– Robert Louis Stevenson

driving washington’s prosperity: egils milbergs strategic plan update

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