A Brief Prosperity Profile of
Kitchener, Ontario
Dr. Kevin Stolarick
Research Director
March 27, 2009

Outline / Approach
1. Present Benchmark Peers
2. Describe Selected Measures
a. Some “Lagging”
b. Some “Leading”
3. Get Your Thinking
Where does Kitchener rank?
4. Discussion
2

Benchmark Peers
3

Peer Selection
Ann Arbor, MI
•
20 peer states/
Canton, OH
•
provinces for
Fort Wayne, IN
•
Ontario based on Lansing, MI
•
population. Peoria, IL
•
Reading, PA
•
Santa Barbara, CA
•
10 cities/regions
Spokane, WA
•
selected with Tallahassee, FL
•
populations Victoria, BC
•
approximately the Kitchener, ON
•
same as Kitchener.
4

Technology
5

Technology
“A high technology base is both a
necessary condition for and a result
of a region having a strong creative
economy.
Being known as a \"high-tech\" region
helps to attract the creative
workforce, which, in turn, generates
new technologies making the region
even more high-tech.”

Technology
“Tech Pole” Index (based on Milken Institute)
•
– Share of total US/Canada “high technology”
– Regional concentration of “high tech” among all industries
Combination allows smaller, tech-intensive
•
regions to score well
US & Canada, based on total employment
•
7

Tech-Pole Index: Where does Kitchener rank?
Ranking out of 11 (Kitchener + 10 peers)
•
Peer Average: 0.119
•
Lowest peer score: 0.008 (Canton, OH)
•
Highest peer score: 0.385 (Ann Arbor, MI)
•
• Where does Kitchener rank?
–Top 3?
–Bottom 3?
–Middle 5?
8

Tech-Pole Index: Kitchener “Middle 5”
North American Tech Pole Index
Kitchener, ON and Peer Regions, 2006
Ann Arbor, MI 0.385
Santa Barbara, CA 0.319
Kitchener, ON 0.260
Victoria, BC 0.115
Fort Wayne, IN 0.066
Spokane, WA 0.059
Reading, PA 0.046
Tallahassee, FL 0.023
Lansing, MI 0.022
Peoria, IL 0.009
Canton, OH 0.008
9

Talent
10

Talent
“The concentration of people in the
Creative and Super Creative Classes,
has a stronger relationship with
economic growth.
Creative people don't just cluster
where the jobs are. They cluster in
places that are centers of creativity
and also where they like to live.
Places need a people climate -- or a
creativity climate -- as well as a
business climate.”

Talent
“BA and above”
•
Percent of population 25 and older with a
•
bachelor’s (4-year) university degree or higher
(masters, graduate, PhD)
12

Talent Index: Where does Kitchener rank?
Ranking out of 11 (Kitchener + 10 peers)
•
Peer Average: 28.1%
•
Lowest peer score: 18.1% (Canton, OH)
•
Highest peer score: 51.7% (Ann Arbor, MI)
•
• Where does Kitchener rank?
–Top 3?
–Bottom 3?
–Middle 5?
13

Talent Index: Kitchener “Bottom 3”
Talent Index (Pop > 25, BA and above)
Kitchener, ON and Peer Regions, 2006
Ann Arbor, MI 51.7%
Tallahassee, FL 32.2%
Lansing, MI 31.7%
Santa Barbara, CA 30.4%
Spokane, WA 27.9%
Victoria, BC 26.1%
Peoria, IL 25.3%
Fort Wayne, IN 23.8%
Reading, PA 21.4%
Kitchener, ON 20.8%
Canton, OH 18.1%
14

Talent
Now, a “Creative Economy”
•
– Innovation, Thinking, Creativity
“Paid to think”
•
– Everyone has the potential to be creative
Percent of workforce in the “Creative Class”
•
T = Technology and R&D Innovation
A = Arts and Culture
P = Professional and Managerial
E = Educating and Training
15

Creative Class: Where does Kitchener rank?
Ranking out of 11 (Kitchener + 10 peers)
•
Peer Average: 30.1%
•
Lowest peer score: 25.3% (Reading, PA)
•
Highest peer score: 38.2% (Tallahassee, FL)
•
• Where does Kitchener rank?
–Top 3?
–Bottom 3?
–Middle 5?
16

Creative Class: Kitchener “Middle 5”
Creative Class as % of Workforce
Kitchener, ON and Peer Regions, 2006
Tallahassee, FL 38.2%
Ann Arbor, MI 36.7%
Lansing, MI 34.3%
Victoria, BC 33.2%
Santa Barbara, CA 29.0%
Kitchener, ON 0 27.9%
Fort Wayne, IN 27.3%
Spokane, WA 27.0%
Peoria, IL 26.7%
Canton, OH 25.4%
Reading, PA 25.3%
17

Tolerance / Inclusiveness
18

Tolerance / Inclusiveness
“Diversity has become a politically
charged buzzword. To some it is an
ideal and rallying cry, to others a
Trojan-horse concept that has
brought us affirmative action and
other liberal abominations.
Creative Class people use the word
often, but not to press any political hot
buttons. Diversity is simply something
they value in all its manifestations.”

Tolerance / Inclusiveness
Mosaic Index
•
Percent of population foreign born
•
Immigrants generate growth and are a sign or
•
regional “openness”
20

Mosaic Index: Where does Kitchener rank?
Ranking out of 11 (Kitchener + 10 peers)
•
Peer Average: 9.8%
•
Lowest peer score: 2.2% (Canton, OH)
•
Highest peer score: 23.6% (Santa Barbara, CA)
•
• Where does Kitchener rank?
–Top 3?
–Bottom 3?
–Middle 5?
21

Mosaic Index: Kitchener “Middle 5”
Mosaic Index (% Pop)
Kitchener, ON and Peer Regions, 2006
Santa Barbara, CA 23.6%
Kitchener, ON 22.8%
Victoria, BC 18.8%
Ann Arbor, MI 11.4%
Reading, PA 6.9%
Lansing, MI 6.0%
Tallahassee, FL 4.9%
Spokane, WA 4.8%
Fort Wayne, IN 4.5%
Peoria, IL 2.4%
Canton, OH 2.2%
22

Population Growth
23

Population Growth
Percent growth/decline in total population
•
Between 2001 and 2006
•
24

Population Growth: Where does Kitchener rank?
Ranking out of 11 (Kitchener + 10 peers)
•
Peer Average: 4.5%
•
Lowest peer score: 0.2% (Santa Barbara)
•
Highest peer score: 8.9%(Kitchener, ON)
•
• Where does Kitchener rank?
–Top 3?
–Bottom 3?
–Middle 5?
25

3”
Population Growth: Kitchener “Bottom
Population Growth
Kitchener, ON and Peer Regions, (00-05)
Kitchener, ON 8.9%
Reading, PA 7.4%
Spokane, WA 6.9%
Ann Arbor, MI 6.6%
Victoria, BC 5.8%
Tallahassee, FL 5.5%
Fort Wayne, IN 4.8%
Lansing, MI 1.4%
Peoria, IL 0.9%
Canton, OH 0.8%
Santa Barbara, CA 0.2%
26

Discussion /
Summary
27

For More Information
Benchmark Summary: Kitchener vs Peer Regions
Peer Min Peer Peer Max N.A. Average of
Summary Statistics Kitchener, ON Value Average Value Urban Regions
451,000 330,088 396,000 454,000
Total Population, 2006 546,000
GDP (CAD millions) 2006 $18,000
$22,000 $14,000 $22,000 $29,000
Median Age, 2006 36.4 33 36.6 43.1 37.5
Overall Cost of Living 88.7 0.5 0.6 0.7 101.5
Kitchener, Peer Peer Min Peer Peer Max N.A. Average of
Overall Performance ON Ranking Value Average Value Urban Regions
Population Growth (00-05) 8.9% 1 0% 4.5% 8.9% 5.7%
6.2% 4 -3.3% 4.3% 11.6%
Job Growth (00-05) 9.3%
GDP per capita, 2006 $48,000 4 37,500 $47,000 $65,200 $45,000
Change in Average Wage (00-05) 2.2% 3 -8.8% 0.1% 9.0% 0.1%
Creativity Index 0.69 5 0.36 0.61 0.83 NA
Kitchener, Peer Peer Min Peer Peer Max N.A. Average of
Technology ON Ranking Value Average Value Urban Regions
Total Patents, 2005 113 4 31 115 394 517
Patents per 10,000, 2005 2.50 4 0.9 3.00 11.45 2.46
Patent Growth, Short Term (00-05) #REF! 3 -12.7% 2.0% 17.5% -0.5%
North American High Tech LQ, 2006 1.14 3 0.26 0.83 1.87 0.63
0.189
North American Tech Pole Index 0.260 3 0.008 0.119 0.385
Kitchener, Peer Peer Min Peer Peer Max N.A. Average of
Talent ON Ranking Value Average Value Urban Regions
Creative Class as % of Workforce, 2006 27.9% 6 25.3% 30.1% 38.2% 26.1%
Super Creative Core as % of Workforce, 2006 15.9% 3 9.4% 13.2% 18.6% 11.0%
Pop > 25, Above High School below BA, 2006 55.7% 8 41.2% 57.6% 67.5% 59.0%
Talent Index (Pop > 25, BA and above), 2006 20.8% 10 18.1% 28.1% 51.7% 21.7%
7.5%
Pop > 25, Graduate and/or Professional Degree, 2006 8.3% 8 6.0% 11.0% 26.2%
0.88 1.27 NA
Brain Drain/Gain Index, 2006 0.59 11 0.59
Kitchener, Peer Peer Min Peer Peer Max N.A. Average of
Tolerance ON Ranking Value Average Value Urban Regions
Visible Minorities (% Pop), 2006 13.6% 7 9.2% 17.0% 37.7% 11.1%
Mosaic Index (% Pop), 2006 22.8% 2 2.2% 9.8% 23.6% 7.9%
Gay and Lesbian Index, 2006 0.78 7 0.59 0.94 1.62 0.81
Bohemian Index, 2006 1.01 3 0.35 0.73 1.60 0.69
0.71 0.90
Integration Index, 2006 0.77 4 1
Kitchener, Peer Peer Min Peer Peer Max
Territorial Assets
ON Ranking Value Average Value
Social and Cultural Assets
Arts and Cultural Establishments per 10,000 4.45 2 0.77 2.08 6.85
Resturants and Bars per 1,000 2.24 2 1.67 2.00 2.75
Student/teacher Ratio 16.73 6 11.37 16.50 21.63
Doctor's per 1,000 0.41 10 0.20 0.94 1.86
Civic Assets
Voter Turnout (%) 66% 6 54% 64% 71%
Crime per Capita 0.05 7 0.03 0.05 0.09
Housing and Transportation Assets
Population Density (Km^2) 546 8 52.78 184.08 545.58
Median Housing Value to Income Ratio $3.69 2 $2.44 $4.61 $12.82
Auto Dependency 8.89 11 3.47 18.74 37.98
28

For More Information
• Richard Florida’s books
– “The Rise of the Creative Class”
– “The Flight of the Creative Class”
– “Who’s Your City?”
• www.martinprosperity.org
• www.creativeclass.com
29

Thank You
Kevin Stolarick
kms@rotman.utoronto.ca