The Metropolitan Business Planning initiative, co-developed by The Brookings Institution and RW Ventures, continues to generate great interest at the local, state and federal levels. Bob Weissbourd has been presenting the concept and framework to audiences of public policy decision makers, as well as non-profit, civic and private-sector leaders both in the U.S. and abroad. Among the more recent presentations are the two below, prepared for the London School of Economics' City Reformers Group Workshop and the Brookings-hosted event, "Metropolitan Business Plans: A New Approach to Economic Growth."

1. Robert Weissbourd, RW Ventures, LLC
Cities Charting
New Directions:
Metropolitan Business Planning
City Reformers Group Workshop
March 22, 2011

2. Metropolitan Business Plans:
A New Way of Doing Business
Grounded in Economics and Business:
comprehensive, integrated growth
strategies based on unique regional
strengths
Gets the Job Done: not just a plan;
cross-sector institutional capacity
critical to regional performance
Continuous implementation,
monitoring, adaptation and further
strategy development
Demonstrate better ways to invest in metros to strengthen
national economy; develop new federal policies and programs.
Source: Brookings Institution

3. Why Metros?

4. ServiceExports75%
U.S.AirCargoWeight
79%
AirlineBoardings
92%
Population
66%
GraduateDegrees
75%
VentureCapitalFunding
94%
Patents
78%
Wind+SolarEnergyEmployment
76%
Top 100 Metros Share of U.S. Total
Sources: Brookings analysis of US Census Bureau, FAA, BLS, NIH, NSF, and BEA data; Brookings, ExportNation, 2010 (2008 data); Forthcoming research from Brookings and Battelle
GrossProduct
73%
Why Metros?
Source: Brookings Institution

5. What is it About Place that Affects
Economic Performance?
“Cities exist to eliminate transport costs for people,
goods and ideas” – Ed Glaeser

6. What is it About Place that Affects
Economic Performance?
• Urbanization and Localization Economies: general and
industry-specific benefits of concentration as workers and firms co-locate; spillovers,
synergies, shared labor and job pools, linkages among firms generate increased
efficiency and productivity through flow of ideas and technologies, enhancements
to human capital, economies of scale, reduced transaction and transport costs.
(Marshall, Krugman)
“Cities exist to eliminate transport costs for people,
goods and ideas” – Ed Glaeser

7. What is it About Place that Affects
Economic Performance?
• Urbanization and Localization Economies: general and
industry-specific benefits of concentration as workers and firms co-locate; spillovers,
synergies, shared labor and job pools, linkages among firms generate increased
efficiency and productivity through flow of ideas and technologies, enhancements
to human capital, economies of scale, reduced transaction and transport costs.
(Marshall, Krugman)
• New Growth Theory: location is becoming more important, and with
different benefits, in the knowledge economy, as metros increasingly become
centers of idea creation and transmission (through technology, human capital
externalities, intellectual spillovers). Increasing returns to knowledge and imperfect
competition lead to metro specialization and divergence. (Romer, Lucas)
“Cities exist to eliminate transport costs for people,
goods and ideas” – Ed Glaeser

8. What is it About Place that Affects
Economic Performance?
• Urbanization and Localization Economies: general and
industry-specific benefits of concentration as workers and firms co-locate; spillovers,
synergies, shared labor and job pools, linkages among firms generate increased
efficiency and productivity through flow of ideas and technologies, enhancements
to human capital, economies of scale, reduced transaction and transport costs.
(Marshall, Krugman)
• New Growth Theory: location is becoming more important, and with
different benefits, in the knowledge economy, as metros increasingly become
centers of idea creation and transmission (through technology, human capital
externalities, intellectual spillovers). Increasing returns to knowledge and imperfect
competition lead to metro specialization and divergence. (Romer, Lucas)
• Institutional Economics: growth, and particularly innovation, take
place in the context of an institutional infrastructure – research, professional and
learning networks; universities and civic/business organizations; quasi- and
governmental organizations and regulation – which can hamper or accelerate all of
the other benefits of concentration. (Coase, Atkinson)
“Cities exist to eliminate transport costs for people,
goods and ideas” – Ed Glaeser

9. What is it About Place that Affects
Economic Performance?
• Urbanization and Localization Economies: general and
industry-specific benefits of concentration as workers and firms co-locate; spillovers,
synergies, shared labor and job pools, linkages among firms generate increased
efficiency and productivity through flow of ideas and technologies, enhancements
to human capital, economies of scale, reduced transaction and transport costs.
(Marshall, Krugman)
• New Growth Theory: location is becoming more important, and with
different benefits, in the knowledge economy, as metros increasingly become
centers of idea creation and transmission (through technology, human capital
externalities, intellectual spillovers). Increasing returns to knowledge and imperfect
competition lead to metro specialization and divergence. (Romer, Lucas)
• Institutional Economics: growth, and particularly innovation, take
place in the context of an institutional infrastructure – research, professional and
learning networks; universities and civic/business organizations; quasi- and
governmental organizations and regulation – which can hamper or accelerate all of
the other benefits of concentration. (Coase, Atkinson)
“Cities exist to eliminate transport costs for people,
goods and ideas” – Ed Glaeser
The Major Systems that Drive Efficiency and Productivity Operate at a Metro Level

10. Influencing Metro Economies

11. Influencing Metro Economies
Act Comprehensively -- The Whole is Greater than the Sum of the Parts.
Increasing productivity and efficiency requires influencing how the pieces fit
together – the interactions and synergies between economic activities

12. Customize. Regional Economies are differentiated, complex and dynamic
Influencing Metro Economies
Act Comprehensively -- The Whole is Greater than the Sum of the Parts.
Increasing productivity and efficiency requires influencing how the pieces fit
together – the interactions and synergies between economic activities

13. Customize. Regional Economies are differentiated, complex and dynamic
Influencing Metro Economies
Develop Institutional Capacity and Intentionality. Growing metro economies
entails continuously integrated, grounded and deliberate activity
Act Comprehensively -- The Whole is Greater than the Sum of the Parts.
Increasing productivity and efficiency requires influencing how the pieces fit
together – the interactions and synergies between economic activities

14. Customize. Regional Economies are differentiated, complex and dynamic
Influencing Metro Economies
Develop Institutional Capacity and Intentionality. Growing metro economies
entails continuously integrated, grounded and deliberate activity
Act Comprehensively -- The Whole is Greater than the Sum of the Parts.
Increasing productivity and efficiency requires influencing how the pieces fit
together – the interactions and synergies between economic activities
Key Question:
What are the leverage points to improve system performance?

15. Enhance
Regional
Concentrations
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Develop
Innovation-
Enabling
Infrastructure
Leverage Points

16. Enhance Regional
Concentrations:
Industries,
Occupations and
Functions
Cluster Map Source: Bo Heiden, Strategic Uses of the Global Patent System

17. Deploy High Levels
of Human Capital
Aligned
with Job Pools

18. Develop
Innovation-
Enabling
Infrastructure
Innovation
Ecosystem
Market
Research
Marketing
Manufac-
turing
Finance
R&D
Research
Partners
Image based on material from Land O’ Lakes Inc.

19. Housing Costs as
Percent of Income
Housing + Transportation
Costs as Percent of Income
Increase Spatial Efficiency
Source: Center for Neighborhood Technology

20. Create Effective Public &
Civic Culture & Institutions

21. Create Effective Public &
Civic Culture & Institutions

22. Create Effective Public &
Civic Culture & Institutions
Source: Newsweek, Manyika, Lund and Auguste, “From the Ashes,” 8.16.2010

23. Global, Knowledge
Economy
Specialization and
Dynamism
Build on Your Assets
Coordinated, Cross-
Sectoral, Flexible,
Adaptive, Open,
Information-Rich,
Inclusive,
Entrepreneurial
Compete on
Value-Added
(not low-cost)
Intentionality
Governance in
the Next
Economy

24. Why “Metropolitan Business Planning”?
The steps to analyzing and improving a regional economy lend
themselves to the proven discipline of business planning.
ECONOMIC GROWTH PLANNING TRADITIONAL BUSINESS PLANNING
Vision for the Regional Economy Business Mission & Vision
Status of Economy: Assets,
Opportunities, Challenges Market Analysis
Goal-Setting & Strategy Identification Analysis of Strategic Alternatives & Risks
Identification of Policies, Programs, Products
& Interventions Development of Products & Services
Operational Planning for Implementation Operational & Management Planning
Identification of Funding Needs
and Sources Forecasting & Financial Planning
Definition of Outcome Measures & Targets Target-Setting & Performance Tracking
Source: Brookings Institution

25. Metro Development Baseline/Overview (MDBO)
Mission/Vision: MSP as a flexible, adaptable, dynamic region home to a business environment in which Fortune 500
companies and entrepreneurs alike can thrive.
↓
Market Analysis: Strong, diverse clusters, but minimal strategic support; highly educated workforce, but flagging talent
attraction; robust university & corporate R&D environment, but limited commercialization; culture of civic engagement,
but fragmented & uncoordinated efforts; ample regional data, but dispersed in multiple locations
↓
Goals: Highly networked cluster firms & institutions; workforce skills matched to emerging, in-demand jobs; enhanced
levels of innovation & entrepreneurship; reduced congestion & spatial mismatch; dynamic public, civic & non-profit
institutions; more & better information for private-sector decision making
↓
Strategies: MSP Regional Cluster Initiative; Regional Economic Development Partnership; Thinc.Green; Corridors of
Opportunity; Entrepreneurship Accelerator.
↓
Business Plan Components

26. Metro Development Baseline/Overview (MDBO)
Mission/Vision: MSP as a flexible, adaptable, dynamic region home to a business environment in which Fortune 500
companies and entrepreneurs alike can thrive.
↓
Market Analysis: Strong, diverse clusters, but minimal strategic support; highly educated workforce, but flagging talent
attraction; robust university & corporate R&D environment, but limited commercialization; culture of civic engagement,
but fragmented & uncoordinated efforts; ample regional data, but dispersed in multiple locations
↓
Goals: Highly networked cluster firms & institutions; workforce skills matched to emerging, in-demand jobs; enhanced
levels of innovation & entrepreneurship; reduced congestion & spatial mismatch; dynamic public, civic & non-profit
institutions; more & better information for private-sector decision making
↓
Strategies: MSP Regional Cluster Initiative; Regional Economic Development Partnership; Thinc.Green; Corridors of
Opportunity; Entrepreneurship Accelerator.
↓
Detailed Development Initiative (DDI): Entrepreneurship Accelerator
Intervention: Accelerate growth of innovative early- stage businesses & ideas into venture-
ready companies by providing continuum of resources to entrepreneurs & community
↓
Operational Plan: Mentorship/advice (EIRs); technical support; capital; information-sharing
↓
Financial Sources & Uses (3 yrs): $12-14MM public & philanthropic funds; 14 direct
investments
↓
Metrics: # companies advised; companies’ achievement of business plan milestones;
companies’ ability to attract follow-on investments; EA funds raised, etc.
Business Plan Components

27. Metro Development Baseline/Overview (MDBO)
Mission/Vision: MSP as a flexible, adaptable, dynamic region home to a business environment in which Fortune 500
companies and entrepreneurs alike can thrive.
↓
Market Analysis: Strong, diverse clusters, but minimal strategic support; highly educated workforce, but flagging talent
attraction; robust university & corporate R&D environment, but limited commercialization; culture of civic engagement,
but fragmented & uncoordinated efforts; ample regional data, but dispersed in multiple locations
↓
Goals: Highly networked cluster firms & institutions; workforce skills matched to emerging, in-demand jobs; enhanced
levels of innovation & entrepreneurship; reduced congestion & spatial mismatch; dynamic public, civic & non-profit
institutions; more & better information for private-sector decision making
↓
Strategies: MSP Regional Cluster Initiative; Regional Economic Development Partnership; Thinc.Green; Corridors of
Opportunity; Entrepreneurship Accelerator.
↓
Detailed Development Initiative (DDI): Entrepreneurship Accelerator
Intervention: Accelerate growth of innovative early- stage businesses & ideas into venture-
ready companies by providing continuum of resources to entrepreneurs & community
↓
Operational Plan: Mentorship/advice (EIRs); technical support; capital; information-sharing
↓
Financial Sources & Uses (3 yrs): $12-14MM public & philanthropic funds; 14 direct
investments
↓
Metrics: # companies advised; companies’ achievement of business plan milestones;
companies’ ability to attract follow-on investments; EA funds raised, etc.
Business Plan Components
Metropolitan
Investment
Prospectus

28. Northeast
Ohio
Minneapolis-St. PaulPuget Sound
Source: Brookings Institution
Pilot
Metro
Business
Planning
Regions

29. Affordable
Housing
HUD
Section 8
Workforce
Training
Small
Business
Assistance
Upgrading
Roads and
Rail
Export
Strategy
Dept. of
Labor
Workforce
Inv. Act
Dept of
Commerce
Int’l. Trade
Admin.
Dept. of
Transpo.
SAFETEA-LU
Programs
Small
Business
Admin.
Loans
A New Economic Federalism

30. HUD
Section 8
Dept. of
Labor
Workforce
Inv. Act
Dept of
Commerce
Int’l. Trade
Admin.
Dept. of
Transpo.
SAFETEA-LU
Programs
Small
Business
Admin.
Loans
A New Economic Federalism
Develop
Innovation-
Enabling
Infrastructure
Create Effective
Public & Civic
Culture &
Institutions
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations
Increase
Spatial
Efficiency
Comprehensive Metropolitan Strategy

31. A New Economic Federalism
Integrated Federal Investment
White House
Office of Urban
Affairs
HUD Section 8
Dept. of Labor
Workforce Inv. Act
Small Business
Administration Loans
Department of
Transportation
SAFETEA-LU
Programs
Department of
Commerce
International Trade
Administration
Develop
Innovation-
Enabling
Infrastructure
Create Effective
Public & Civic
Culture &
Institutions
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations
Increase
Spatial
Efficiency
Comprehensive Metropolitan Strategy

32.  Cross-Agency Regional Teams
 Pooled and Flexible Funding
 Support for Regional Capacity Building
 “New Federalism” Partnership
A New Economic Federalism
Integrated Federal Investment
White House
Office of Urban
Affairs
HUD Section 8
Dept. of Labor Workforce
Inv. Act
Small Business
Administration Loans
Department of
Transportation SAFETEA-
LU Programs
Department of Commerce
International Trade
Administration
Develop
Innovation-
Enabling
Infrastructure
Create Effective
Public & Civic
Culture &
Institutions
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations
Increase
Spatial
Efficiency
Comprehensive Metropolitan Strategy

33. Cities Charting
New Directions:
Metropolitan Business Planning Robert Weissbourd
City Reformers Group
Workshop
March 22, 2011
DISCUSSION