michigan's transition to a knowledged based economy
DESCRIPTION
Michigan Future Inc. is an economic development think tank dedicated to being a catalyst for prosperity. This presentation is a 3rd Annual Progress update on its 2006 New Agenda for a New Michigan research report.TRANSCRIPT
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www.michiganfuture.org
Michigan’s transition to a knowledge-based economy
Third Annual Progress report
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Our goal
A high prosperity Michigan
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What state do we want to emulate?
State Per capita income (08)
Unemployment (09)
Poverty rate (08)
Education attainment (08)
West Virginia
$31,634 7.9 % 17.0 % 17.09 %
Minnesota $42,953 8.0 % 9.6 % 31.52 %
Michigan $34,953 13.6 % 14.4 % 24.75 %
U.S. $40,166 9.3 % 13.2 % 27.67 %
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Most prosperous states
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Connecticut Maryland
New Jersey Virginia
Massachusetts Alaska
New York California
Wyoming New Hampshire
Traits of prosperous states
• High proportion of wages from knowledge industries
• High proportion of college grads• Big metro with higher per cap income than state• Largest city in that metro has high proportion of
college grads
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What is the knowledge economy?
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goods producing5%
information5%
trade, transportation, utili-ties8%
financial activities12%
professonal & business services
17%
education20%
health services20%
leisure, hopitality & other services
3%
public administration10%
Michigan’s income rank aligned with our college attainment rank
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15
20
25
30
35
40
Per Cap Income % 4 year degree
18
34
36
34
2000
2008
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Most prosperous regions• San Jose/San Fran.• NY/Newark• Washington/Baltimore• Boston/Worchester/
Manchester (NH)• Hartford
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• Seattle• San Diego• Denver/Boulder• Minneapolis• Houston
Major metros smarter
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Under .2 m
.2-.5 m .5-1 m 1-1.6 m 1.6-3.5 m 3.5 m and up
10%
15%
20%
25%
30%
35%
23%24%
25.04% 25.63%
29.82%
33.00%
Education attainment by metro population
Major metros richer
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under .2 m
.2-.5 m .5-1 m 1-1.6 m 1.6-3.5 m 3.5 m and up
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$33,304 $35,304 $35,734
$37,470 $39,490
$45,667
Per capita income by metro population
Metro Pittsburgh Prosperous Again1969-2008
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 400
0.2
0.4
0.6
0.8
1
1.2
PCPI Pittsburgh CSA relative to U.S. Index Manufacturing's share of Pittsburgh eanings
Year
Ind
ex
Va
lue
(1
97
7 =
1.0
fo
r m
an
ufa
ctu
rin
g s
ha
re)
Metro Detroit vs. Metro Minneapolis and Pittsburgh
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2008 Rank among 55 metros 1 million population or more
City Per cap income
Education attainment
Share of wages from knowledge industry
Minneapolis 9 7 10
Pittsburgh 16 29 17
Detroit 37 37 33
Metro Grand Rapids vs. Metro Minneapolis and Pittsburgh
City Per cap income
Education attainment
Share of wages from knowledge industry
Minneapolis 9 7 10
Pittsburgh 16 29 17
Grand Rapids
53 45 54
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2008 Rank among 55 metros 1 million population or more
Metro Lansing vs. Metro Madison
City Per cap income
% bachelors degree or more
Share of wages from knowledge industries
Madison $ 43,455 37.70 % 61.87 %Lansing $ 32,943 28.58 % 61.87 %
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2008 data
High education industries growing most in U.S.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
3.99%
1.30%
7.57%All industry
Low education
High education
(2008 average wage)
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Em
ploy
men
t ch
ange
200
1-08
$45,564
$33,888
$60,138
High education industries doing best in Michigan
-14.00%
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
-9.06%
-13.72%
-1.88%
All industry
Low education
High education
(2008 average wage)
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Em
ploy
men
t ch
ange
200
1-08
$44,244
$36,223
$55,136
High education industries doing best in Metro Detroit
-18.00%
-16.00%
-14.00%
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
-11.43%
-17.88%
-2.42%
All industry
Low education
High education
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Em
ploy
men
t ch
ange
200
1-08
$49,154
$39,312
$60,744
(2008 average wage)
High education industries growing in Metro Grand Rapids
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
-2.02%
-5.55%
4.89%
All industry
Low education
High education
(2008 average wage)
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Em
ploy
men
t ch
ange
200
1-08
$39,052
$34,633
$47,020
High education industries growing in Metro Lansing
-14.00%
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
-5.75%
-12.24%
1.43%
All industry
Low education
High education
(2008 average wage)
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Em
ploy
men
t ch
ange
200
1-08
$41,447
$32,319
$50,182
Recession accelerates trends
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2007
.12
2008
.01
2008
.02
2008
.03
2008
.04
2008
.05
2008
.06
2008
.07
2008
.08
2008
.09
2008
.1
2008
.11
2008
.12
2009
.01
2009
.02
2009
.03
2009
.04
2009
.05
2009
.06
2009
.07
2009
.08
2009
.09
2009
.1
2009
.11
2009
.12
2010
.01
75
80
85
90
95
100
105
Employment in High and Low Education Attainment Industries, Michigan and the U.S., 2007.12 to 2010.01
US High US Low MI High MI Low
Date
Ind
ex
va
lue
(1
00
in D
ec
. 20
07
)
Our conclusion:
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The places with the greatest concentration of talent win!
Younger college grads
Blue = With children
Red = Without children
Young talent is aggregating in urban regions
Our recommendations•Align Michigan culture with the flat world realities•Create places where talent wants to live•Ensure success of vibrant higher ed system•Reinvent K-12 education to align with new realities•Develop new public and – more importantly – private sector leaders
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Bottom line
We must get younger
and better educated
or
we will get poorer
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For more information about Michigan Future, our reports or what the media is saying,
please visit our Web site at:
www.MichiganFuture.org
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