economic development presentation by brad whitehead

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%


1990 - 2000

-200%

-100%

0%

100%

200%

-200% -100% 0% 100% 200% 300% 400%


AustinSan Diego1990 - 2000

-100%

-50%

0%

50%

100%

-300% -200% -100% 0% 100% 200% 300%


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)

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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:


3. There is a plan – and it is working


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


Talent Development


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


Talent Development




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


Talent Development



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


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


Talent Development






Talent Development

Talent Development



Goals

Jobs

Income

Poverty

Vision


Talent Development



Grow minority-ownedenterprises

Grow minority-ownedenterprises

Expand access to educational, trainingand business opportunities

Expand access to educational, trainingand business opportunities


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


Talent Development






Talent Development

Talent Development



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


Talent Development



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


To what degree are you demanding collaboration and efficiency among elected leaders?

To what degree is your organization acting regionally/collaboratively?

To Consider


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?


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]

economic development presentation by brad whitehead

Business

efficiency

success hinges

educational

growth

degree

gt

question

change