Coming out of MOC cluster studies - federal and state investments in regional economies Federal WIRED grant of $5 million – connecting 36 counties State invested $600,000 in seed funding for FIRST grants (Framework for Integrated Strategies) shown in map above – inclusive of Wisconsin and Iowa
One year later = the power of regionalism drives collaboration with four parallel initiatives.
Clusters are connected If we see oil/gas, we’ll probably see plastics, chemicals, etc. Locations are very important Shows the diversification path that is possible for an economy/country
Industry clusters are geographic concentrations of interconnected firms and supporting organizations – representing a potent source of productivity and higher wages. Regional concentrations of skills and capital are present – but addressing the challenges and maximizing metropolitan potential requires better information about the basis for clustering and the degree to which industries and occupations are organized. Six Key Criteria • Strength of competitive advantage (existing or emerging) • Potential gain for industry cluster from private‐public collaboration • Degree of geographic distribution in the region • Potential to spur innovation • Potential to spur entrepreneurship • International strength Considering the 6 criteria the mayors choose three industries to begin focusing on: mayoral interviews for the qualitative piece and graduate student cluster diagnosis, analysis, vision and recommendations Cluster approach is about building RELATIONSHIPs
Reconnect physician base w/cluster Bridge gap between the U and business Need a database of information and resources
Lee – I put this final piece in so we would wrap up with key points pertinent to driving regional competitiveness – we could just speak off of the last slide I inserted and review the final information we should bring our handout for RCM to Harvard to hand out at this Sunday session. CAN YOU PRINT Color copies – 25?
Minnesota's Workforce Investment and Competitiveness
Minnesota’s Workforce Investment and Competitiveness Strategy L. Burke Murphy Workforce and Economic Development Lee W Munnich Humphrey Institute of Public Affairs
Merging WF and ED MERGING WORKFORCE AND ECONOMIC DEVELOPMENT
Capstone PA 8081(7) Spring 2010 REGIONAL COMPETITIVENESS PROJECT
<ul><li>The need for one, consistent regional voice and vision for the Minneapolis – St. Paul metropolitan region emerged as the dominant theme </li></ul><ul><li>Achieving this unified vision requires bold action by: </li></ul><ul><li>leveraging the region’s competitive strengths </li></ul><ul><li>relationship building between mayors and CEOs </li></ul><ul><li>convening cluster leadership </li></ul><ul><li>capitalizing on federal and state opportunities </li></ul>THE POWER OF REGIONALISM
Furniture .29 Building Fixtures, Equipment & Services .88 Fishing & Fishing Products .31 Hospitality & Tourism .78 Agricultural Products .31 Transportation & Logistics 1.27 Competitiveness and Composition of MSP Metro Area Linkages Across Traded Clusters, Location Quotients, 2006 Plastics 1.02 Oil & Gas .33 Chemical Products 1.15 Biopharma- Ceuticals .45 Power Generation .40 Aerospace Vehicles & Defense .09 Lighting & Electrical Equipment 2.05 Financial Services 1.63 Publishing & Printing 1.99 Entertainment 1.14 Information Tech. 1.50 Communi- cations Equipment .49 Aerospace Engines .21 Business Services 1.26 Distribution Services 1.37 Forest Products 1.01 Heavy Construction Services .65 Construction Materials .54 Prefabricated Enclosures .17 Heavy Machinery .84 Sporting & Recreation Goods 1.14 Automotive .53 Production Technology 1.60 Motor Driven Products .97 Metal Manufacturing 1.39 Apparel .26 Leather & Related Products .63 Jewelry & Precious Metals .46 Textiles .20 Footwear .04 Processed Food 1.07 Tobacco .52 Medical Devices 3.51 Analytical Instruments 2.04 Education & Knowledge Creation .90 Note: Clusters with overlapping borders have at least 20% overlap (by number of industries) in both directions. Location Quotient = MSP Industry Job Share / US Industry Job Share Strong Stronger Strongest
<ul><li>Chosen for: </li></ul><ul><li>Employment concentration 3.5x national average </li></ul><ul><li>High rate of innovation and entrepreneurship </li></ul><ul><li>Key take-away points: </li></ul><ul><li>Bold action is needed </li></ul><ul><li>Early innovators built locally strong industry </li></ul><ul><li>Industry competition fierce </li></ul><ul><li>Economic development strategy cannot be ‘business as usual’ </li></ul><ul><li>Regional customer (physician) demand opportunity by incorporating Mayo </li></ul>MEDICAL DEVICES
Central Corridor Cluster Project Economic/workforce development Collaborative Team Locally traded clusters ICIC Minneapolis/St Paul Philanthropic Community McKnight, Surdna, Ford, Wells Fargo, St Paul,Minneapolis, United Way Corridors of Opportunity Connecting workers & job growth HUD & Living Cities <ul><li>Acclerate MSP </li></ul><ul><li>Metropolitan Business Plan </li></ul><ul><li>Stimulating the entrepreneurial </li></ul><ul><li>ecosystem </li></ul><ul><li>ULI MN/Regional Mayors Itasca, </li></ul><ul><li>DEED, Target, Brookings Institution </li></ul><ul><li>Regional Cluster Initiative </li></ul><ul><li>(RIC) </li></ul><ul><li>Industry cluster advancement </li></ul><ul><li>Medical device cluster board </li></ul><ul><li>Regional cluster mapping project </li></ul><ul><li>Regional Council of Mayors, UMN, DEED, BioBusiness Alliance </li></ul><ul><li>Regional Economic </li></ul><ul><li>Development Partnership </li></ul><ul><ul><li>Retention, expansion, attraction </li></ul></ul><ul><ul><li>Business Bridge </li></ul></ul><ul><li>Itasca Project </li></ul><ul><li>Corporate-led private/public </li></ul><ul><li>collaboration </li></ul><ul><li>Destination 2025 </li></ul><ul><li>Growing MN’s bioscience economy - 20-year plan </li></ul><ul><li>Bio Business Alliance of </li></ul><ul><li>Minnesota & Deloitte Consulting </li></ul>MSP Job Growth Public/Private/Nonprofit Partnerships
The Minneapolis Saint Paul Region – The Twin Cities of America’s Midwest Placeholder core industry clusters Top research institutions Fortune 500 companies Unique region with major cities Home to over Million people 10+ 20 3 2 10
Five regional strategies will be key to our success moving forward Corridors of Opportunity Initiative 1 3 Regional Cluster Initiative 4 Regional Economic Development Partnership (REDP) 2 Entrepreneurship Accelerator 5
Regional economic levers of Metropolitan Business Plan Human capital Innovation and entrepreneurship Spatial efficiency Public and civic institutions Information resources Regional concentrations M N
Regional Competitiveness & Cluster Strategy <ul><li>Next steps – integrating w/ MSP Business Plan </li></ul><ul><ul><li>Regional Cluster Initiative year two </li></ul></ul><ul><ul><ul><li>Executives of Cities meet Executives of Companies to tap into the competitive advantage of Headquarters </li></ul></ul></ul><ul><ul><ul><li>Medical Device Cluster Board </li></ul></ul></ul><ul><ul><ul><li>Case Study </li></ul></ul></ul><ul><ul><li>Corridors of Opportunity – two cluster projects </li></ul></ul><ul><ul><li>National / Regional cluster mapping project </li></ul></ul>
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