Economic Development Today: National Observations and Pennsylvania Perspective

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Rich Overmoyer was invited to facilitate a strategy session of the Ben Franklin Technology Development Authority's Board of Directors. The The Ben Franklin Technology Development Authority (BFTDA) is one of the largest single state technology development programs in the nation, providing a vital vehicle for investment in economic, community, and university-based innovation. To frame the conversation Rich presented these slides on the overall technology economy and national trends.

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  • Image: any way to layer the three images from this artcile so we can get the progression? http://seattletimes.nwsource.com/html/nationworld/2016328463_jobless27.htmlThe aftermath of the recession continues to teach lessonsSustainable investment can slow the bleedingThe new reality in economic development has not yet set in
  • Economic Development Today: National Observations and Pennsylvania Perspective

    1. 1. Economic Development Today:National Observations and PennsylvaniaPerspectivePresented by Rich Overmoyer, CEOOctober 2011
    2. 2. Overview  National Trends – Overall Economic Development – IBED  Pennsylvania Observations – Industry Sectors – Entrepreneurship – Data Points2
    3. 3. “Necessity, who is the mother of Invention.” :: Plato3
    4. 4. NATIONAL TRENDS4
    5. 5. In my state, we’ve created a lot of JOBS Cost Based – Job Creation Production Driven – Cost Sensitive Low Skill – Limited Investment5
    6. 6. In my state, we’ve created a lot of WEALTH Place Based – Wealth Creation Knowledge Driven – Value Sensitive Skilled Workforce – Community6
    7. 7. Infrastructure Investments  Beyond access roads  Cost of operations are impacted  Not all news is good news7
    8. 8. Community is Infrastructure  Where will the employees live?  Attracting talent takes a broad view  Transportation is a critical variable8
    9. 9. Water Poor  Clean water availability will drive growth  Cost of water is an increasing decision point  Climate change impacts9
    10. 10. Water Rich  Tap into Erie (PA)  Milwaukee Water Council  Global Investment Opportunity10
    11. 11. The Good Times Source: Bureau of Labor Statistics (via New York Times)11
    12. 12. The Impact of the Recession Source: Bureau of Labor Statistics (via New York Times)12
    13. 13. The New Reality? Not Yet… Source: Bureau of Labor Statistics (via New York Times)13
    14. 14. New Priorities14
    15. 15. States are Making Investments The following are NEW investments made by States Initiative State Angel and Investment Tax Credits CO, LA, NE, ND, OH Commercialization / Proof of Concept CO, AK, MD, MN, NE, OH, VT, VA Bonding for Facilities CT, MD New Entities Managing IBED FL, OH, GA, IA, KS, OH, VT, VA, WI, WA Venture Capital Investments IL, CO, MD, NJ, OH, VT Economic Gardening NE, PA, VA15
    16. 16. PENNSYLVANIA OBSERVATIONS16
    17. 17. The BioScience Industry: In Transition  Loss of patents  University  U.S. tax laws partnerships  Medical devices  R&D venture funds  Health care reform  Startups17
    18. 18. Energy: Portfolio Management  Shale Gas and its upstream and downstream impacts  Renewables are now mature – they have bad press  No clear national/ state strategy18
    19. 19. Economic Development: Small Scale  Double down on business calling  Support launch of spin outs  Responsive transformation can create strength19
    20. 20. If you are Alive… …You are Doing Well  Class of 2011 is graduating in a challenging environment  Specialization is primary driver for growth  Integration is opportunity and challenge20
    21. 21. When I Grow Up, I Want to Take Out a Second Mortgage  A silver lining to the recession: start up rate highest in 15 years  Entrepreneurs are goin’ at it alone  Capital from the Coasts21
    22. 22. VC Funding in PennsylvaniaVenture Capital Investment In Millions - 2010 State RankingRank State VC $ Rank State VC $1 California $11,603 11 Maryland $4032 Massachusetts 2,472 12 Virginia 3973 New York 1,401 13 Georgia 3434 Texas 981 14 Florida 2255 Illinois 732 15 Connecticut 2236 Washington 634 16 Oregon 1967 Pennsylvania 559 17 Ohio 1858 North Carolina 529 18 Michigan 1559 Colorado 483 19 Minnesota 14710 New Jersey 469 20 Utah 145 22
    23. 23. VC Funding by IndustryVC Investment in PA - Industry Breakout - 2010 23% 39%7% 7% 8% 16% Biotech Medical Devices Software Electronics Networking Other 23
    24. 24. Capital AttractionIn 2010, venture capital dollars invested in PA companies came from venture firmsheadquartered in: CA Other 19% 44% PA 20% NY MA 7% 10% 24
    25. 25. Top Ten States: R&D Expenditures 2006 – 2007 250 200 Expenditure in Millions 150 100 50 0 NY PA CA OH FL MI NJ IL MD TX25
    26. 26. Total Patents 2005 – 2010 (Per 10,000 residents – State Rank # in Bar) 350 300 250 200 150 8 11 12 13 100 14 15 16 19 20 22 23 50 0 CT DE NJ MI WI NY RI IL OH MD PA26
    27. 27. State Technology & Science Index 14th Overall Ranking 10th Human Capital Investment 9th R&D Inputs 21st Risk Capital and Entrepreneurial Infrastructure 25 th Technology Concentration and Dynamism27
    28. 28. Summary  Still don’t know what the recession-related economic impacts will be  The pace of industry change is accelerating  State and Global competition for jobs is real  Pennsylvania lags on many of the Innovation economy metrics28

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