Johnathan Holifield - Global Detroit - Inclusive Competitiveness - America21

Building Inclusive Competitiveness in Metro Detroit Johnathan M. Holifield Co-founder and Chief Strategist & Evangelist, The America21 Project johnathan@blackinnovation.org www.BlackInnovation.org Global Detroit TechTown Presentation May 10, 2012 ©2012 A21

What is the Innovation Economy? America21 defines the Innovation Economy as the period in the late 20th and early 21st centuries marked by radical socioeconomic changes brought about by the: • further globalization of commerce • democratization of information • exponential growth of entrepreneurship, and • acceleration of new knowledge creation ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Innovation Economy Pressures: New & Unrelenting Economic Crisis Squeezing Metro Detroiters ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Crisis Undermined Economic CompetitivenessOverview of negative Innovation Economy impacts onMetro Detroit:• Decline in traditional, industrial manufacturing• Globalization of auto industry• Dramatic population decline• Inability to create new jobs• Devastating crime• Exacerbated racial tensions• Talent flight – Black and White• Negative quality of place impacts ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

What is “TAPIM”?• Thought• Advocacy• Policy• Investment• Market Deeply understanding the progression is absolutely crucial. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

What is the “TAPIM” Progression?• Thought Momentum Buildup• Advocacy• Policy Breakthrough• Investment Sustained Execution• Market Cannot overstate – deeply understanding the progression is absolutely crucial. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

“TA” Produced New Metro Detroit Economic NarrativeLed the way in articulating and inculcating a new narrative to increase Metro Detroit economic competitiveness – leading to the formation of new economic Policy. A21 ©2012 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

“TAP” Led to New Economic Investment Key assets providing new Investment to increase Metro Detroit economic competitiveness. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

“TAP” Informed and Created New Economic Investment Regional philanthropy $100M+ (8 yr) and State of MI hundreds of millions of $$ to increase Metro Detroit economic competitiveness. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

“TAPI” Triggered Market Response Market connected into new “TAPI” to create Metro Detroit’s innovation ecosystem – designed to increase economic competitiveness. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

New “TAPIM” Created and Nurtures . . . Metro Detroit’s innovation ecosystem Recalling and deeply embracing the progression is absolutely crucial. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Nationally, the Good News . . . Positive TrendsU.S. Census Bureau Reports between 2002 and 2007:Hispanic-Owned Businesses Increase at More ThanDouble the National Rate Hispanic-owned businesses increased by 43.7% to 2.3 million, more than twice the national rate of 18.0% 249,168 had paid employees, an increase of 24.9% Employed 1.9 million people, an increase of 25.7% Payrolls totaled $54.6 billion, an increase of 48.7% Receipts totaled $345.2 billion, an increase of 55.5% ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Nationally, the Good News . . . Positive TrendsU.S. Census Bureau Reports between 2002 and 2007:Black-Owned Businesses Increase at More ThanTriple the National Rate African American-owned firms increased by 60.5% 1.9 million firms, more than triple the national rate of 18.0% 106,824 had paid employees, an increase of 13% Employed 921,032 million people, an increase of 22.2% Payrolls totaled $23.9 billion, an increase of 36.3% Receipts totaled $137.5 billion, an increase of 55.1% ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Metro Detroit Good News . . . Positive TrendsU.S. Census Bureau Reports between 2002 and 2007:Black-Owned Businesses in Metro Detroit Increased atNearly Four Times the National Rate African American-owned firms increased by 71%, to 53,380 firms, almost four times the national rate of 18.0% Receipts totaled $3.7 billion, an increase of 16.9% ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Bad News . . . Profoundly Unbalanced Contribution U.S. Census Bureau reports the Hispanic population at more than 50 million or 16.3% of U.S. population  16.3% of U.S. population  Hispanic Business Productivity is $345.2 billion  U.S. Gross Domestic Product is $14.2 trillion Bottom Line: More than 16% of U.S. population accounts for less than 2.5% of GDP ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Bad News . . . Profoundly Unbalanced Contribution U.S. Census Bureau reports the Black population at 12.6% of U.S. population  12.6% of U.S. population  Black Business Productivity is $137.5 billion  U.S. Gross Domestic Product is $14.2 trillion Bottom Line: Nearly 13% of U.S. population accounts for less than 1% of GDP ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Ugly News . . . for the U.S. U.S. Census Bureau reports the combined Black and Hispanic population in the U.S. is about 29% Bottom Line: Nearly one-third of U.S. population accounts for less than 3.5% of Gross Domestic Product ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Ugly News . . . Metro Detroit, Mecca of Black Business U.S. Census Bureau reports the Detroit MSA Black population at 23%  23% of Metro Detroit population  Black Business Productivity is $3.7 billion  Metro Detroit Gross Regional Product (GRP) is $198 billion Bottom Line: More than 23% of Metro Detroit population accounts for less than 2% of GRP ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Invisible AssetsAccording to Brookings, metropolitan areas contain 68 % of thenation’s multiracial population, 74% of Blacks and 80%Hispanics. America’s innovation assets are highly concentratedin U.S. metropolitan areas where Blacks and Hispanics live:78 % of patents85 % of new firm starts69 % of high-growth firms75 % of GDP68 %of jobs96 % of venture capital81 % of R&D employmentAssets are invisible to those disconnected from them ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Profound ConsequencesBlack unemployment rate double Whites – 40+ straight years! “Job Growth in U.S. Driven Entirely by Startups” Kauffman Foundation Study The invisibility of the Innovation Economy to Black and Hispanic Americans and their disconnection from it, results in the absence of job creating high-growth enterprises - a profound inability to create new jobs. . ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Law of Economic Competitiveness TM No region can sustainably increase economic competitiveness without growing enough of the right people to create and take advantage of that increased economic competitiveness. If your region’s economic competitiveness goals consistently outpace your growth rate in the right people, you simply will not – indeed cannot – build a resilient, economically competitive region.Inspired by Packard’s Law of Hewlett & Packard Co-Founder, David Packard ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Law of Inclusive Competitiveness TM No region can sustainably increase economic competitiveness without growing enough of the right people to create and take advantage of that increased economic competitiveness. If your region’s economic competitiveness goals do not focus on inclusion, you simply will not – indeed cannot – grow enough of the right people to build a resilient, economically competitive region.Inspired by Packard’s Law of Hewlett & Packard Co-Founder, David Packard ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Where we are . . . In an increasingly flat and uncompromisingly competitive 21st century world, we cannot afford tohave large portions of our population contributing less than their full measure to the nation’s economic competitiveness. It’s time for All Hands On Deck . . . ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Follow the Proven Path . . . Developing and implementing InclusiveCompetitiveness strategies responds to the same needsand follows the same path that created Metro Detroit’s innovation ecosystem. Recalling and fully embracing Metro Detroit’s proven path is absolutely crucial. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Follow the “TAPIM” Progression• Thought Momentum Buildup• Advocacy• Policy Breakthrough• Investment Sustained Execution• Market ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Time for Inclusive Competitiveness “TAPIM”• New Thoughts and new Advocacy to produce a new economic narrative• New economic narrative breaks through to form new Policy• New Policy attracts new Investment• New Investment ignites new Market responsesDeeply understanding and fully embracing the “TAPIM” progression is absolutely crucial. ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

What is Inclusive Competitiveness? Or Benchwarmer Competitor Metrics and strategies to improve Black and Hispanic performance in areas important to Metro Detroit’s economic competitiveness. Will we be benchwarmers or competitors? 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

How Is Inclusive Competitiveness Delivered? New Individual Practices New Organizational Practices Bottom line: Trim Tab Practices 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

What are Trim Tab Practices? Individuals and Metro Detroit organizations is the Ship are the Trim TabbersMetro Detroit Innovation Economy assets are the RudderHigh-leverage individual and organizational actions that turn the rudder and, ultimately, turn the ship in the desired direction 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Black and Hispanic Communities• Lack high-leverage intermediary functions• Lack high-leverage intermediary organizations• Lack high-leverage intermediary practices Existing economic leadership infrastructure is necessary, but alone is insufficient Bottom line: No Trim Tab Impact 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Trim Tab Practices Yield Results• Unique experience - may be only Black to Launch and Lead Regional Technology and Innovation Initiative• $600K into $5M of Entrepreneur Economic Impact• $40M into $250M Early-stage Capital Network• Innovation-based HS/Turnaround Education Model• Regional Tech Workforce Alliance• Statewide Innovation Organization Alliance• $40M+ Grants, Cash, In-kind Support Not the only way . . . a proven way ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Individual Trim Tabber Attributes• Cannot Incent Right Behavior From Wrong People• Treat Problems Like Market Opportunities• Lead by Action, Persuasion, Influence• Conspicuous Public Presence• Flexible and Well-networked• Strong Convictions• No Fear of Judgment• Energetic Creator 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Organizational Trim Tabber Attributes• Archimedes – “A firm place to stand . . . “• Well-networked Facilitators• Disinterested, Not Uninterested• Hub, Spokes and Nodes Approach• Honest, Objective Broker• Flexible, Agile Drivers• Entry/Outreach Portal• Cross-ecosystem Leadership 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Trim Tabber Focus AreasExpressing and inculcating 21st century “TAPIM,”focused on three basic pillars:1. STEM (and STEAM/including arts) education2. High-growth entrepreneurship3. Capital formation and investment 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 1: Comprehend Speed of the Game• Bo Jackson Moment• High Bar for Everyone; Higher Bar for Us• Further Democratization of Information• Most Meritocratic Economic Era• Money, Without Collateral• Not the Civil Rights Struggle• Flatter World• No Magic ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 2: Mine the Environment• How Innovation Ecosystems are Built• Innovation Asset Urban Location• 19th and 20th Century Asset Visibility• 21st Century Asset Invisibility• Making the Invisible, Visible• End of the Day . . . The Market Must Respond ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 3: Begin at the Beginning• Measure Competitiveness, Not Participation• Innovation Asset Stewardship Mapping Angel Networks/Venture Capital Sources/Banks Innovation Councils/TBED Orgs./VDOs Bioscience/ICT/Adv. Manufacturing Companies University/Corporate Research Capabilities Chambers/Econ. Dev./Philanthropy Incubators/Accelerators ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 4: “The Way” Over “The Thing”• Simple Process (Way)• Deployed on Diverse Content (Things)• A.O.L. Aggregate key wealth and resources Organize them into actionable forms Leverage them to achieve desired impact ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 5: Be the Lubricant• Engine Oil• Public Policy• “Private Policy,” i.e., the Big Metro Detroit Agenda• Integrate into the Value Chain (Wetting Beaks . . . Don Fanucci)• Money ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 6A: Encourage Entrepreneurial Churn• Old Notions of “Economic Stability”• Energy, Vitality, Creative Destruction• No undefeated seasons• Must Prepare for Losses ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 6B: Encourage Entrepreneurial Churn• No “defeated” seasons, either!• Gotta have wins• No to Risk-Averse• No to Risky• Yes to Risk-Astute ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 7: Pursue Exponential Impact• Leverage, Leverage, Leverage• Measure Outcomes  What gets measured gets done  What gets measured and rewarded gets done well• Aggregate Incremental/Exponential Breakthrough ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Practice 8: Embrace Asset Obsolescence• Trim Tabber Role = flexible/enduring• Innovation Ecosystem = adaptable/enduring• Innovation Ecosystem Assets = constant change• No Asset has “Right” to exist• Only Support Assets Demanded by the Market ©2012 A21 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

BuildingContact: InclusiveJohnathan M. Holifield CompetitivenessCo-founder, Chief Strategist & Evangelist in Metro DetroitThe America21 ProjectEmail:johnathan@blackinnovation.orgorjholifield@nortech.orgPhone:216.274.0267 2012 Copyright Johnathan M. Holifield, Principal and Co-founder, The America21 Project, Inc. and Founder, Trim Tab System, LLC

Building Inclusive Competitiveness in Metro Detroit Johnathan M. Holifield Co-founder and Chief Strategist & Evangelist, The America21 Project johnathan@blackinnovation.org www.BlackInnovation.org Global Detroit TechTown Presentation May 10, 2012 ©2012 A21

Johnathan Holifield - Global Detroit - Inclusive Competitiveness - America21

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