Delivered at the Winter meeting of the Mayor's Innovation Project, this presentation considers the questions that regions should answer in order to understand their unique opportunities for economic growth.

1. Robert Weissbourd
Regions Charting
New Directions:
Metropolitan Business Planning
Mayor’s Innovation Project
January 16th, 2013

2. Drivers of the Next Economy
Agenda
“Metro-Economics”
Metropolitan Business Planning (from theory to practice)
Understanding Your Economy
Key Lessons and Discussion

3. 0%
100%
200%
300%
400%
500%
600%
$s lbs
%Change
GDP Growth, 1950-2000
• Human Capital
• Information technologies
• Product innovation; flexible
customization
• Firm, consumer and knowledge
networks
• Increasing returns; divergence
The Global Economy is Undergoing a Fundamental
Transformation, Driven by Knowledge Assets
Source: “Greenspan Weighs Evidence and Finds a
Lighter Economy,” Wall Street Journal 3

4. 0
20
40
60
80
1920s 1990s
Years Spent on the S&P Index
As a Result, the Economy is More Dynamic
Sources: Newsweek, Manyika, Lund and Auguste, “From the
Ashes,” 8.16.2010; Brookings Institution
0%
20%
40%
60%
80%
100%
15% 20% 25% 30% 35%
GRPGrowth
Firm Starts and Closures (Churn) as % of All Firms
Churn and GRP Growth by MSA

5. 0
20
40
60
80
1920s 1990s
Years Spent on the S&P Index
As a Result, the Economy is More Dynamic
Sources: Newsweek, Manyika, Lund and Auguste, “From the
Ashes,” 8.16.2010; Brookings Institution
18.3%
US
Global GDP (2015)
25.8%
BIC Countries
20.2%
US
21.4%
BIC Countries
Global GDP (2010)
0%
20%
40%
60%
80%
100%
15% 20% 25% 30% 35%
GRPGrowth
Firm Starts and Closures (Churn) as % of All Firms
Churn and GRP Growth by MSA
-- and Global

6. …and Centered in Metropolitan Areas

7. …and Centered in Metropolitan Areas
Population
83.7%
Employment
89.8%PersonalIncome
96.3%
KnowledgeIndustries(GDP)
87%
Metros Share of U.S. Total
Source: Bureau of Economic Analysis, U.S. Patent and Trademark Office
GrossProduct
90%
Patents
95.5%

8. Drivers of the Next Economy
Agenda
“Metro-Economics”
Metropolitan Business Planning (from theory to practice)
Understanding Your Economy
Key Lessons and Discussion

9. How Metro Economies Grow
Metro economy = total value of goods and services
produced in the region
Growth is inherently business sector growth (number, size
and profitability of firms)
Business sector grows through firm creation, growth and
location decisions (retention and attraction)
Firm creation, growth and location depend upon increases
in efficiency and productivity (of firm and system, including
product innovation)
Core Question: What attributes of the region increase
efficiency and productivity, leading to business sector growth?

10. What Makes Metropolitan Regions more
Productive in the Next Economy?
Economic
Geography
Institutional
Economics
New
Growth
Theory
8

11. Metros Can Enable People and Firms to
Concentrate and Achieve Efficiencies
Economic
Geography
Institutiona
l EconomicsNew
Growth
Theory
Act Comprehensively – The Whole is
Greater than the Sum of the Parts.
Develop Institutional Capacity and
Intentionality.
Customize and Build on
Distinctive Assets.
8

12. Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Increase
Spatial
Efficiency
Develop
Innovation-
Enabling
Infrastructure
Five Market Levers
Drive Regional
Economic
Performance
9

13. -.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
-
10,000
20,000
30,000
40,000
50,000
60,000
0 10,000 20,000 30,000 40,000 50,000 60,000
WagesMoveinTandem
Correlation= 0.77, significant
City
Suburbs
Equity and Growth Go Hand in Hand
Leverage Points
for Sustainable
and Inclusive
Prosperity
The sub-systems and geographies succeed or fail in context.
Neighborhoods and Regions Move in Tandem

14. 11
New Approaches for the Next Economy

15. Drivers of the Next Economy
Agenda
“Metro-Economics”
Metropolitan Business Planning (from theory to practice)
Understanding Your Economy
Key Lessons and Discussion

16. Metropolitan Business Planning:
A New Way of Doing Business
Grounded in Economics and Business
Comprehensive, Actionable
Strategies
NOT Plans — Enterprises
Continuous Process and
Improvement

17. Seattle
Phoenix
Buffalo
Louisville-Lexington
Central Upstate
New York
Northeast
Ohio
Milwaukee
Chicago
Memphis
Twin Cities
Metropolitan Business Planning Regions

18. Drivers of the Next Economy
Agenda
“Metro-Economics”
Metropolitan Business Planning (from theory to practice)
Understanding Your Economy
Key Lessons and Discussion

20. Analyzing Clusters
Current Concentrations:
Assets, Legacies and Bets
Cluster Dynamics and Drivers
Cluster Organization
Growth
Concentration

21. Analyzing Clusters
Current Concentrations:
Assets, Legacies and Bets
Cluster Dynamics and Drivers
Cluster Organization
Growth
Concentration
 Growth industries that
build on region’s assets?
Opportunities to redeploy legacy
assets?
 “Centers of Gravity”: mutually
reinforcing concentrations of
industries, functions, technologies,
occupations?
 Shared inputs, activities,
infrastructure and other factors
contributing to cluster
efficiency/productivity?
 Challenges, opportunities and
trends in specific clusters?

23. Understanding Human Capital Dynamics
Status, Attraction and Retention
Segmentation, Skills Match and
Labor Market Efficiency
Opportunity and Mobility

24. Understanding Human Capital Dynamics
Status, Attraction and Retention
Segmentation, Skills Match and
Labor Market Efficiency
Opportunity and Mobility
 Educational and skills
attainment of residents?
 Change in population by
educational attainment, age – brain
drain?
 Projected job growth/loss,
retirements by occupation and
industry?
 Match of existing & projected labor
force skills (detailed segmentation)?
 Labor market finding, measurement
challenges?
 Opportunities for targeted
retraining, credentialing?

26. Cultivating Innovation
Commercialization of
R&D
(universities/institutes)
Entrepreneurship
(individuals)
Clusters
(firms)

27. Cultivating Innovation
Commercialization of
R&D
(universities/institutes)
Entrepreneurship
(individuals)
Clusters
(firms)
University research
specializations?
Extent & nature of university-
industry connections?
 Cluster innovation and firm R&D
dynamics?
Sources, successes of start-up
activities? Entrepreneurship
access, support, connections?
Characteristics of VCs? Availability
of earlier-stage funding?
Legacy industries that need to
redeploy assets and innovate?
Emerging industries with high
potential?

29. Enhancing Spatial Efficiency
Urban Growth Form
Connectedness & Mobility

30. Enhancing Spatial Efficiency
Urban Growth Form
Connectedness & Mobility
 Jobs housing mismatch
-- by industry, occupation,
skill level?
 Segregation and isolation?
 Change in residential density & job
dispersion? Specific fast-growing
areas/nodes?
 Opportunities for in-fill, mixed use
development?
 Opportunities for transformative
infrastructure (next gen. energy, IT,
public transit, PUDs)?
 Transit use and access? Barriers?
 Congestion?

32. Achieving Good Governance
Fragmentation
Tax/Value Proposition
Governance

33. Achieving Good Governance
Fragmentation
Tax/Value Proposition
Governance
 Services and regulatory
processes that might be
efficiently coordinated,
streamlined?
 Most important public goods and
services to targeted industries,
residents?
 Govt 2.0: engaging firms and
citizens, transparency, flexibility,
use of public data for economic
growth?
 Strategic and practical alignment
of ED programs, organizations?

34. Drivers of the Next Economy
Agenda
“Metro-Economics”
Metropolitan Business Planning (from theory to practice)
Understanding Your Economy
Key Lessons and Discussion

35. 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
Economic
Development
in the Next
Economy

36. Robert Weissbourd
Regions Charting
New Directions:
Metropolitan Business Planning
Mayor’s Innovation Project
January 16th, 2013