Four Pillars for Economic Growth         and Job Creation             Making it in Washington                  February 1,...
Commission Members
Recovery: Non-farm Employment                                            Monthly difference with start of recession (Q4 20...
Non-farm Employment        Seattle-Bellevue-Tacoma Metropolitan Area1,500                                       Line indic...
Key Performance Comparisons                                 (by range, state rank and trend)                           Was...
Non-farm Absolute Gains and Losses, Year-over-Year                 Seattle-Bellevue-Tacoma Metropolitan Area, November 201...
The Good and the Bad  Reasons for Optimism                         Reasons for Pessimism• Young, connected, smart people  ...
To accelerate job creation, WA must make       progress on four dimensions                       Emphasize career transiti...
Policy Specifics Around the Four Pillars   TALENT and                      INVESTMENT                  INFRASTRUCTURE     ...
Workforce Challenge                                                   Prof    Prof Technical                              ...
Washington STAR Researchers                   Smart Grid                        UW                                     WSU...
Faces of Emerging Industries Entrepreneurs-in-ResidenceLars Johansson    Henry Berg        David Kaplan    Lewis Rumpler  ...
Startup Weekend  WA Economic Development Commission   13
Opportunities in Defense Technology                                                                       191,000 jobs    ...
Transforming InfrastructureLeave oilbefore itleaves us!             Post “ICE” Age?              Internal Combustion Engin...
Innovation Partnership Zones                 Bellingham Innovation Zone                 Aerospace Convergence Zone        ...
Washington’s Global Health Ecosystem                      WA Economic Development Commission   17
•University based research centers Innovation                                         •National Labs (gov’t)              ...
Innovation Ecosystems Evolve                                                                                          Tran...
Fiscal constraints require new priorities         Some difficult choices for economic development                         ...
Current Economic Development System                      Many pieces, but how do they work together?                      ...
Pacific Northwest is an innovation powerhouse                                                      PNWER Region (GDP/Pop.)...
WA Economic Development Commission   24
Four pillars for economic growth and job creation by Egils Milbergs
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Four pillars for economic growth and job creation by Egils Milbergs

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Policy framework for driving innovation and job creation from the bottom-up.

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Four pillars for economic growth and job creation by Egils Milbergs

  1. 1. Four Pillars for Economic Growth and Job Creation Making it in Washington February 1, 2012 Egils Milbergs Executive Director Washington Economic Development Commission www.wedc.wa.gov
  2. 2. Commission Members
  3. 3. Recovery: Non-farm Employment Monthly difference with start of recession (Q4 2007) 50 0Difference with Initial Period Employment (Thousands of Workers) -50 -100 -150 -200 -208.1 2001 Recession (3 quarters) Since Q4 2007 -250 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Months of RecoveryData source: U.S. Bureau of Labor Statistics, Current Employment Statistics
  4. 4. Non-farm Employment Seattle-Bellevue-Tacoma Metropolitan Area1,500 Line indicates employment level in April 2008 (recent max)1,4801,460 -71.21,440 -118.91,4201,4001,3801,3601,340 Apr-08 Apr-09 Apr-10 Apr-11 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Dec-07 Feb-08 Dec-08 Feb-09 Dec-09 Feb-10 Dec-10 Feb-11 Dec-11 Oct-07 Jun-08 Oct-08 Jun-09 Oct-09 Jun-10 Oct-10 Jun-11 Oct-11Data source: U.S. Bureau of Labor Statistics, Current Employment Statistics
  5. 5. Key Performance Comparisons (by range, state rank and trend) Washington’s Rank Real per capita GDP, 2010 #14 $29,318 $45,464 $63,090 AK, DE, CT Non-farm employment 1.8% ND, OK, UT #11 -0.8% 4.9% growth, Nov ‘11 3mma Per capita personal #14 $31,046 $43,564 $54,877 CT, MA, NJincome, 2010 (current USD) Gini Coefficient, #19 0.499 0.442 0.411 UT, AK, NH 2005-2009 (Scale in reverse) Computer andmathematical occupations, #3 0.8% 4.0% 5.1% VA, MD, WAas % total workforce, 2010 (More than double 2005)Patents (all types) per 100k #2 86 VT, WA, CA 4.6 residents WEDC 1.4 106.8 5
  6. 6. Non-farm Absolute Gains and Losses, Year-over-Year Seattle-Bellevue-Tacoma Metropolitan Area, November 2011 (1000s workers)Largest Gains Transportation Equipment Mfg 8.63 Computer Systems Design and Related Services 3.73 Software Publishers 1.83 Architectural, Engineering and Related Services 1.77 Administrative and Support Services 1.30 Air Transportation -0.03Largest Losses Truck Transportation -0.33 Accounting, Tax Preparation, Bookkeeping and Payroll -0.33 Insurance Carriers and Related Activities -0.33 Credit Intermediation and Related Activities -0.63Data source: Washington State Employment Security Department.
  7. 7. The Good and the Bad Reasons for Optimism Reasons for Pessimism• Young, connected, smart people • Global uncertainty• Strong anchor companies: • Long term unemployed aerospace, food, information • Skills mismatch technology, medical, non-profit • Short on engineering talent• Intellectual property hotspot • Underperforming schools• Attractive place to live • Poor transport infrastructure• No income tax • Lagging regions• Pacific Rim location • Income disparity• Potential defense opportunities • Cost/complexity to start a new• Growing entrepreneurial sector business.• Abundant energy sources WEDC 1.4 7
  8. 8. To accelerate job creation, WA must make progress on four dimensions Emphasize career transition, access to learning Intellect resources and the skills that employers need. Create innovation ecosystem to foster Investment new products, start-ups and manufacturing. Design a 21st century infrastructure, an efficient Infrastructure regulatory system and align to regional objectives. International Grow the global presence of Washington’s business. WEDC 1.4 8
  9. 9. Policy Specifics Around the Four Pillars TALENT and INVESTMENT INFRASTRUCTURE INTERNATIONAL WORKFORCE and and REGULATIONS BUSINES ENTREPRENEURSHIP (Exports)1. Channel talent 1. Assess economic pipeline to 1. Recruit STARs development 1. Optimize export industry needs research teams outcomes. services to SMEs2. Shift focus of UI 2. Provide 2. Create Lean 2. Modernize to support new operational funds Institute for transportation career prep. for IPZs regulatory infrastructure for efficiency freight mobility3. Retain foreign 3. Turn on FDI student 3. Align infrastructure 3. Intensify graduates 4. Enhance tax policy investments to innovation to close gaps in local priorities collaboration in the4. Navigate career commercialization Pacific Northwest. choices with 4. Pilot self financing personalized of collaborative information innovation. SOURCE: Statement of Priorities for Kick-starting Job Creation, Washington Economic Development Commission, Nov 22 , 2011 WEDC 1.4 9
  10. 10. Workforce Challenge Prof Prof Technical TechnicalUnskilled Unskilled WA Economic Development Commission 10
  11. 11. Washington STAR Researchers Smart Grid UW WSU – BSEL Center for Bioproducts and Bioenergy Hugh HillhouseMichael Hochberg Birgitte Ahring Daniel Kirschen WSU Chen-Ching Liu
  12. 12. Faces of Emerging Industries Entrepreneurs-in-ResidenceLars Johansson Henry Berg David Kaplan Lewis Rumpler Kevin Petersen Chris LeyerleRonald Berenson Stephanie Amoss David Croniser Bryan Zetlan Karen FlecknerTerri Butler Ken Myer Thomas Schulte Peter Quinn Jeff Canin
  13. 13. Startup Weekend WA Economic Development Commission 13
  14. 14. Opportunities in Defense Technology 191,000 jobs Whidbey Island $12.2 billion in output Naval Air $10.5 billion in labor income Naval Station $5.2 billion in defense contractsNaval Submarine Everett Base Bangor Spokane Fairchild AFB US Coast Guard Intelligence, Surveillance, and Recon Special forces and special operations WA Nat’l Guard Network-centric operations Puget Sound Cyber security Naval Shipyard Composite materials Joint Base  Unmanned systems – both air and sea Lewis McChord  Energy efficiency Madigan Medical Center Environmental stewardship Health care for veterans US Army, Yakima US Marine Corps 14
  15. 15. Transforming InfrastructureLeave oilbefore itleaves us! Post “ICE” Age? Internal Combustion Engine WA Economic Development Commission 15 15
  16. 16. Innovation Partnership Zones Bellingham Innovation Zone Aerospace Convergence Zone North Olympic IPZ Tri-Cities Research District South Lake Union Life Science IPZ Spokane University District IPZ Bothell Biomedical Manufacturing Corridor Central Washington Resource Energy Collaborative Grays Harbor Sustainable Industries Pullman –Clean Tech Industries Walla Walla IPZ Interactive Media and Digital Arts King County Financial Services Collaborative Urban Clean Water Technology Zone
  17. 17. Washington’s Global Health Ecosystem WA Economic Development Commission 17
  18. 18. •University based research centers Innovation •National Labs (gov’t) •Corporate Labs Ecosystem R&D Assets •Inventors (patent owners)Not just ingredients but the •Entrepreneurs relationships •Start-ups T •Incubators •Technology Development Initiatives Transformers •Industry University Collaborations •Government Policies/Programs/Incentives •Venture Capital S •Angel/Seed Networks •Corporate R&D T Funders •IPOs •Regional Innovation Clusters •Talent pool S Support •Professional (Legal, Accounting, HR , Mentors) •Marketing and Branding WA Economic Development Commission Adapted from Navi Radjou, Forrester Research 18
  19. 19. Innovation Ecosystems Evolve Transformational Innovation Growth Triggers Emerging Many nodes Dense linkages AcceleratedTalent Region to Region Nascent collaboration Next generation IPZs Many linkages STARS Attraction of firms Few to many firms EIRs Fast growthPatents Some linkages None or few firms Incubators Growth potential Tax R&D Incentives Gap Funding SBIR WA Economic Development Commission 19
  20. 20. Fiscal constraints require new priorities Some difficult choices for economic development Jobs Reduce Create Income Distribution EconomicDevelopment Tough Per capita GDP Outcomes Programs Trade-offs growth Eliminate Invest Quality of life Tax revenues WEDC 1.4 21
  21. 21. Current Economic Development System Many pieces, but how do they work together? Governor’s Office Dept. of Strategic Reserve Account Defense Dept. of Social &Dept of Commerce WSDOT Dept. of Agriculture Federal Health Service 18 Programs 2 Programs 5 Programs Labs 3 Programs Federal Programs Employment SBA OSPI /Early Workforce Training Security WA SBCTC Learning Board Department 10 Programs 3Programs 2 Programs 15 Programs Dept. of Agriculture Washington State Recreation & University of WA Innovate WA University Conservation Office 6 Programs 8 Programs 5 Programs 14 Programs SBIR/STTR 36 other state economic programs Dept of Commerce Business and Local Economic Development Organizations Associate Economic Innovation City & CountyDevelopment Development Trade Associations Partnership GovernmentOrganizations Councils Zones WEDC 1.4 22
  22. 22. Pacific Northwest is an innovation powerhouse PNWER Region (GDP/Pop.) State/Prov. GDP* Population Wash. 322,778 6,549,224 Alberta 291,300 3,735,086 B.C. 191,006 4,551,853 Oregon 161,573 3,782,991 Idaho 52,747 1,545,801 Alaska 47,912 686,293 Sask. 41,296 1,049,701 Montana 29,885 974,989 If PNWER were a NW Terr. 4,124 41,464 If PNWER were a separate country, separate country,th in Yukon 2,026 34,157 it would rank 14 total 14thit would rankGDP in Total 1,144,647 22,901,559 total GDP *2009 population & GDP in $US Million Data provided by PNWER – Pacific Northwest Economic Region WA Economic Development Commission 23
  23. 23. WA Economic Development Commission 24

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