economic development presentation by brad whitehead
DESCRIPTION
TRANSCRIPT
Pop Quiz
1) Where was the location of the “Inc. 1” company in 2007?
2) Where was the location of the fastest growing privately held software company in 2007?
3) Where was the most active venture capital firm located?
Solon, Ohio
The Mahoning Valley
San Francisco, CA
…BUT THEY DID OPEN A CLEVELAND OFFICE
…AND JUMPSTART WAS THE 9TH MOST ACTIVE
Our Region’s Economic Action Plan
November 6, 2008
>> Strategies & Initiatives Transforming Northeast Ohio>> Strategies & Initiatives Transforming Northeast Ohio
Or …We still care about you, Joe!
Or: How I Learned To Stop Worrying And Love The Financial Meltdown
The Fundamental Question For Today:
Why Will It Be Different This Time?
1. We are in the midst of a Fundamental Structural Change
2. The “How” of This Change May Even Be More Important Than the “What”
3. There is a Plan – And It’s Working
4. Success Hinges on Aligning And Mobilizing Our Most Precious (But Underutilized) Asset – You!!
Essential Propositions
YUCK
!!
HOW ARE WE DOING?
Basic Challenge: Industry StructureBasic Challenge: Industry Structure
2000 - 2010
-100%
-50%
0%
50%
100%
-100% -50% 0% 50% 100%
Local Competitiveness
Nat
ion
al P
erf
orm
ance
31 of 36 major industries in slower growth manufacturing sectors
What Others Look LikeWhat Others Look Like
Seattle1990 - 2000
-100%
0%
100%
200%
-100% 0% 100% 200%
Local Competitiveness
1990 - 2000
-200%
-100%
0%
100%
200%
-200% -100% 0% 100% 200% 300% 400%
Local Competitiveness
AustinSan Diego1990 - 2000
-100%
-50%
0%
50%
100%
-300% -200% -100% 0% 100% 200% 300%
Local Competitiveness
Bucking the trend:IndianapolisMinneapolisKansas City
Employment Growth Leaders and Laggards 1995-2005
Question
What is most important in driving the needed change?
Question
What is most important in driving the needed change?
Ingredients to Change
Economic Vibrancy is a Function of:
Innovation & Commericialization
Entrepreneurship
Educational Attainment
Racial & Economic Inclusion
Legacy Costs (e.g., Government Fragmentation)
Essential Propositions
1. We are in the midst of a fundamental structural change
2. The “How” of this change may be even more important than the What”
Question
What is different in the planning environment since the 1980s?
What do these organizations have in common?
Al-Qaeda
Distributed, network-based innovative leadership working in pursuit of aligned goals
What does that mean for us?
Alignment……Not Control!
A Movement……Not a Directive!
The Old Way:
>> Statement of interest>> Ordained vision>> Governing entity
Power concentrated with
the few
The New Way:>> Recognition of aligned interests >> Shared vision>> Collaboration>> Institutions oriented to act on aligned interests
Power Diffuse
Preserving Rural Quality of Life
Two concerns
One solution:
Regional Planning/ Revenue Sharing
Restoring Prosperity to Urban Cores
Mayors
Urban Leagues
Urban Universities
Social Services
AgriculturePreservationistsTownshipsBioEnergy
An Example:
Essential Propositions
3. There is a plan – and it is working
1. We are in the midst of a fundamental structural change
2. The “How” of this change may be even more important than the “What”
Collaborate to CompeteCollaborate to Compete
Percentage of Pop. Below Poverty
21.40%
25.50%
27%
30.50%
0.00% 10.00% 20.00% 30.00% 40.00%
Akron
Canton
Cleveland
Youngstown
Our Goals:
•Exceed national average in per capita income and employment growth
•Reduce core city poverty under 20%
Goals
Jobs
Income
Poverty
Target What Matters:Four Priorities for Action
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &EfficiencyBusiness Growth &
AttractionBusiness Growth &
Attraction
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Assist high-growthentrepreneurs
Assist high-growthentrepreneurs
Support innovation,technology commercialization to
build growth industries
Support innovation,technology commercialization to
build growth industries
Strengthenexisting
industries
Strengthenexisting
industries
Attractgrowing
companies
Attractgrowing
companies
Initiatives to Advance Northeast Ohio
Early Stage Partners
GlengaryOhio
Innovation Fund
In 2003, A Handful of Early Pioneers
In 2003, a Handful of Early Stage Venture Pioneers
Oakwood Medical
InvestorsEarly Stage
PartnersGlengary
Ohio Innovation
Fund
Draper Triangle Ventures
ChrysalisCCFInnovations
SunBridge Partners
Mutual Capital Partners
RiverFestVentures
ArboretumArch AngelsRadius
Ventures
In 2003, a Handful of Early Pioneers
In 2003, a Handful of Early Pioneers
Oakwood Medical
InvestorsEarly Stage
PartnersGlengary
Ohio Innovation
Fund
Draper Triangle Ventures
ChrysalisCCFInnovations
SunBridge Partners
Mutual Capital Partners
RiverFestVentures
ArboretumArch AngelsRadius
Ventures
LCCCInnovation
Fund
EverettPartners
iNetworks
Frantz Medical Ventures
Case Tech Ventures
North Coast Angels
Open Prairie
East CentralAngels
When we come together as a region, we are capable of great things!!
Examples of Economic TransformationExamples of Economic Transformation
Global Center for Bioscience Innovation
Examples of Economic TransformationExamples of Economic Transformation
Global Center for Fuel Cells
• Rolls Royce
• HydroGen
• Pacific Fuel Cell Group
• GrafTech
www.fuelcellcorridor.com
To Consider
Does your business/organization strategy reflect the emerging industries?
Does your Board reflect changing industry structure (entrepreneurs, region, diversity)?
What are you or your organization/company doing to support entrepreneurship?
Have you helped fund Cleveland Plus?
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Target What Matters:Four Priorities for Action
Business Growth &Attraction
Business Growth &Attraction
Talent Development
Talent Development
Goals
Jobs
Income
Poverty
Moving from < High School to Associates degree has a ~$400,000
lifetime impact per person
Talent Development!!!!
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Prepare residents for present and future and future jobs
Prepare residents for present and future and future jobs
Connect employers toqualified talent
Connect employers toqualified talent
Initiatives to Advance Northeast Ohio
To Consider
What have you or your organization done to support internships/co-op programs?
What are you doing to support literacy and retraining?
Has your school system addressed 21st century skills?
How are you or your organization civically involved in educational attainment?
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Target What Matters:Four Priorities for Action
Business Growth &Attraction
Business Growth &Attraction
Talent Development
Talent Development
Racial & Economic Inclusion
Racial & Economic Inclusion
Goals
Jobs
Income
Poverty
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Grow minority-ownedenterprises
Grow minority-ownedenterprises
Expand access to educational, trainingand business opportunities
Expand access to educational, trainingand business opportunities
Initiatives to Advance Northeast Ohio
To Consider
What is your organization’s supplier diversity program?
What sort of programs does your organization utilize to promote mentorship and advancement?
How is your organization supporting the urban core and/or concentrated poverty?
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Target What Matters:Four Priorities for Action
Business Growth &Attraction
Business Growth &Attraction
Talent Development
Talent Development
Racial & Economic Inclusion
Racial & Economic Inclusion
Government Collaboration &
Efficiency
Government Collaboration &
Efficiency
Goals
Jobs
Income
Poverty
Impact of No-Growth Sprawl
Rate of Growth for Local Government Spendingvs. Other Economic Indicators
20021992
1% 25% 29%70%
Government Spending
Equals10% of
Region’s Economy
This Cannot Be Sustained
Vision
PrioritiesBusiness Growth& Attraction
Talent Development
Racial & EconomicInclusion
GovernmentCollaboration &Efficiency
Implement regional planningto accelerate sustainable economic growth
and enhance our quality of life
Implement regional planningto accelerate sustainable economic growth
and enhance our quality of life
Support government collaborations that strengthen
economic competitiveness
Support government collaborations that strengthen
economic competitiveness
Initiatives to Advance Northeast Ohio
To what degree are you demanding collaboration and efficiency among elected leaders?
To what degree is your organization acting regionally/collaboratively?
To Consider
1. We are in the midst of a fundamental structural change
2. The “How” of this change may be even more important than the “What”
3. There is a plan – And it’s working
4. Success hinges on aligning and mobilizing our most precious (but underutilized) asset – YOU!!!
- But how do we do this?
Essential Propositions
Steps that you can takeSteps that you can take
(As appropriate) align your organization’s efforts with plan (professional and volunteer)
Pursue/support collaborations that reinforce ANEO goals
Back region-wide initiatives: join Fund/become ANEO partner
Question
But how best to mobilize the network of leaders/ influencers (i.e. Leadership Cleveland)?
Could We…..
• Becoming THE leading venture capital market between the coasts?
• Be the Midwest leader in payroll expansion by building new industries?
• Advance 100,000 adults to better jobs through education?• Ensure that every employer has access to the talent they
need for growth within 60-90 days?• Become home to >100 minority-owned enterprises greater
than $10 million?• Double the % of low income young people who earn a
post-secondary degree?• Match urban expansion (and infrastructure growth) to
economic and population growth?
Yes We Can!
More InformationMore Information
>> www.AdvanceNortheastOhio.org>> Brad Whitehead
PresidentFund for Our Economic [email protected]