This presentation was delivered by Bob Weissbourd as part of the Portland Plan -- Inspiring Community Series. The speech begins to tie together the various pieces of economic development -- from neighborhoods to regions, equity to prosperity, human capital to clusters -- into a comprehensive, integrated, practical approach to metropolitan economic growth.
2. The Legacy of Dr. King
“The time has come for us to
civilize ourselves by the total,
direct and immediate abolition of
poverty.”
“ At no time has a total,
coordinated and fully adequate
program [for eradicating poverty]
been conceived. As a
consequence, fragmentary and
spasmodic reforms have failed to
reach down to the profoundest
needs of the poor.”
Photo from the Associated Press
4. Poverty and Economic Development
“… poverty has no causes. Only
prosperity has causes.
Analogically, heat is a result of
active processes; it has causes.
But cold is not the result of any
processes; it is only the absence
of heat. Just so, the great cold of
poverty and economic
stagnation is merely the absence
of economic development. It
can be overcome only if the
relevant economic processes are
in motion.”
-- Jane Jacobs
Photo from Shelf-Basin Interactions
5. Market Failure in Lower Income
Communities
•Employment networks
•Entrepreneurial opportunities
•Business, real estate investment
•Expanded products and services
•Competitive, healthy communities
•Undervalued,
underutilized assets
Poverty Productivity
Connectedness
Isolation
6. Equity and Opportunity are
Good for Business
Inequality has a negative effect on income growth.
-.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
13. The Goal is Economic Growth
Economic Growth Flows from Market Activity
Major Market Systems Operate at the Metro Level
Improving Metro Economic Performance Entails Customized Analysis and Deliberate
Activity
Why Metros?
Economic Geography and Place-Based Development
14. Cities Are the Critical Core of Metros
-
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
0% 20% 40% 60% 80% 100%
Museums,botanical,…
Educationalservices
LegalServices
Health Services
Depositoryinstitutions
InsuranceCarriers
Communication
Air Transportation
Hub Functions of Cities
Suburban % of total MSA employment
City % of total MSA employment
15. Neighborhoods are Nested in Larger Systems
Which Drive the Flows of People and Capital
Neighborhoods arise from the interaction of regional economic,
social and political systems with characteristics of place.
16. Local (Regional) Enabling Environment
(Government regulation, taxation and public goods, including
particularly infrastructure and education; civic institutions;
qualities of place, including the natural environment; etc.)
Transformative
Systems
(Market processes – housing,
labor, business; production
dynamics – clusters, value
chains, etc.; innovation
dynamics - knowledge
creation, networks,
commercialization,
entrepreneurship, etc.)
Inputs to
Production
(Human capital; real estate;
capital; natural and
knowledge resources; etc.)
Economic Outputs
(Businesses – gross regional
product, profits; households
– wages, other income, etc.)
Macro/Global Context & Trends
What Drives Inclusive and
Sustainable Economic Growth?
17. Local (Regional) Enabling Environment
(Government regulation, taxation and public goods, including
particularly infrastructure and education; civic institutions;
qualities of place, including the natural environment; etc.)
19. Economic Outputs
(Businesses – gross regional
product, profits; households
– wages, other income, etc.)
Transformative
Systems
(Market processes – housing,
labor, business; production
dynamics – clusters, value
chains, etc.; innovation
dynamics - knowledge
creation, networks,
commercialization,
entrepreneurship, etc.)
20. Lead to New Drivers of
Productivity which Favor Cities
•Dense knowledge networks
•Functional specialization
•Innovative capacity
%Change
Gross Domestic Product
% Growth over last 50 years
Increased Value of Knowledge
Factors…
•High skilled labor force
•Intellectual property
•Product innovation; flexible
customization
•Customer networks
The Knowledge Economy
22. 18.3%
US
Global GDP 2015
25.8%
BIC Countries
Source: Brookings Institution
Exports make
up 25% of
Portland’s GMP
20.2%
US
21.4%
BIC Countries
Global GDP 2010
23. 18.3%
US
Global GDP 2015
25.8%
BIC Countries
Source: Brookings Institution
20.2%
US
21.4%
BIC Countries
Global GDP 2010Portland ranks
3rd in exports
(as % of GMP)
24. 18.3%
US
Global GDP 2015
25.8%
BIC Countries
Source: Brookings Institution
20.2%
US
21.4%
BIC Countries
Global GDP 20102002-2008
GMP Growth =
144.5%
25. Demand for clean energy
generation
Demand for products that reduce
energy consumption
Demand for products that reduce
pollution
29. 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
These Five Key
Leverage Points Take
Us from Theory to
Practice
31. Portland has the
19th most educated
population,
1/3 have at least a
bachelor’s degree
Deploy High Human
Capital Aligned
with Job Pools
32. 24.1%
establishment
births and
deaths as % of
total
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.
34. 19th most high
impact firms –
7.5 mid-size
firm births per
10,000
employees
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.
35. 56th in
business
churn; 22.3%
firm births and
deaths as % of
total
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.
36. Housing Costs as
Percent of Income
Housing + Transportation
Costs as Percent of Income
6.4% of Portlanders travel to work using public
transit, putting Portland in 11th place.
Increase
Spatial
Efficiency
Source: Center for Neighborhood Technology
37. Housing Costs as
Percent of Income
Housing + Transportation
Costs as Percent of Income
Portland ranks 24th in traffic congestion
Increase
Spatial
Efficiency
Source: Center for Neighborhood Technology
38. Housing Costs as
Percent of Income
Housing + Transportation
Costs as Percent of Income
Portland ranks 63rd in average travel time to work
at 25.3 minutes
Increase
Spatial
Efficiency
Source: Center for Neighborhood Technology
39. Housing Costs as
Percent of Income
Housing + Transportation
Costs as Percent of Income
Increase
Spatial
Efficiency
82% of Portlanders live within urbanized areas
Source: Center for Neighborhood Technology
40. Housing Costs as
Percent of Income
Housing + Transportation
Costs as Percent of Income
Increase
Spatial
Efficiency
24% of jobs are within 3 miles; 29% of jobs are
more than 10 miles away from city center
Source: Center for Neighborhood Technology
46. Summary: Implications for
Practice
Cities are the Solution
High Road Development
Intentionality
New Governance
Metropolitan Business Plans
47. 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
48. Why “Metropolitan Business
Planning”?
The steps to analyzing and improving a regional economy lend
themselves to the proven discipline of business planning.
ECONOMIC DEVELOPMENT 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
50. A New Economic Federalism
Affordable
Housing
HUD
Section 8
Workforce
Training
Small
Business
Assistance
Upgrading
Roads and
Rail
Export
Strategy
Dept. of
Labor
Workforce
Inv. Act
Small
Business
Admin.
Loans
Dept of
Commerce
Int’l. Trade
Admin.
Dept. of
Transpo.
SAFETEA-LU
Programs
51. Develop
and Deploy
Information
Resources
Develop
Innovation-
Enabling
Infrastructure
Create Effective
Public & Civic
Culture &
Institutions
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations
Increase
Spatial
Efficiency
A New Economic Federalism
HUD
Section 8
Dept. of
Labor
Workforce
Inv. Act
Small
Business
Admin.
Loans
Dept of
Commerce
Int’l. Trade
Admin.
Dept. of
Transpo.
SAFETEA-LU
Programs
Comprehensive Metropolitan Strategy
52. Develop
and Deploy
Information
Resources
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
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
53. Cross-Agency Regional Teams
Pooled and Flexible Funding
Support for Regional Capacity Building
“New Federalism” Partnership
Develop
and Deploy
Information
Resources
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
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
54. WE’RE ALL IN THIS TOGETHER
“We are tied together in the single garment of destiny,
caught in an inescapable network of mutuality.“
Photo from the Seattle Times