Presentation by Bruce Katz, VP of the Brookings Institution, on February 5 2015 in Washington DC. For more on advanced industries, visit www.brookings.edu/advancedindustries __ Innovation and STEM-worker (science, technology, engineering, and math) intensive “advanced industries” are the prime movers of regional and national economic competitiveness in the United States. Industries like aerospace and auto, oil and gas extraction, or software and health IT stand at the forefront of the most disruptive technological and business dynamics of the moment, and will be central to U.S. prosperity going forward. To consider the future of these industries, the Brookings Institution’s Metropolitan Policy Program hosted a major CEOs forum highlighting the importance of the nation’s advanced industries and the opportunities and challenges they face. Informed by new research from Brookings, the morning-long dialogue convened advanced industry CEOs as well as elected officials to discuss the increased viability of the U.S. platform for advanced industry investment as well as the extraordinary technology trends now altering the terms of competition.

1. W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T

2. 200,000
400,000
600,000
-600,000
-400,000
-200,000
-800,000
0
Monthly Job Growth Since 2008

3. Average Wage Growth Since 1975
20102005200019951990198519801975
$20,000
$40,000
$60,000
$80,000
$100,000
AverageWage

4. Advanced Industries
W H A T W H E R E W H Y

5. Advanced Industries
W H A T W H E R E W H Y

6. R&D-intensive industries that
concentrate the nation’s science,
technology, engineering, and
mathematics (STEM) workforce
A M E R I C
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
W H A T
W H E R E
W H Y
B R O O K I N G S
A D V A N C E D
I N D U S T R I E S
P R O J E C T
Advanced Industries

7. Pharmaceuticals
Medical EquipmentMotor Vehicles &
Parts
Aerospace
Manufacturing
35
Software Computer Systems
Design
Telecommunications R&D Consulting
Services
Services
12
Oil & Gas !
Extraction
Electricity !
Generation
Energy
3
Advanced Industries

8. Advanced Industries
60.0%
8.7%
90.0%
81.2%
17.7%
80.0%
U.S.
GDP
ExportsU.S.
Workers
Private
Sector
R&D
PatentsEngineers /
Architects
Concentrate the Assets of the Innovative Economy

9. 20102005200019951990198519801975
$20,000
$40,000
$60,000
$80,000
$100,000
AverageWage
Advanced Industries
Advanced Industries
United States
Provide Steady Wage Growth, at 5 Times the Rate of Other Industries

10. $160
$120
$80
$40
$0
AverageWage(thousands)
Associate’s!
Degree
Some!
College
Secondary!
Diploma
No Secondary!
Diploma
$153
$117
$130
$89
$115
$69
$89
$56
$60
$38
$54
$32
$44
$28
$33
$20
Advanced Industries
Offer a Significant Wage Premium at Every Level of Education
Doctoral!
Degree
Professional!
Degree
Master’s!
Degree
Bachelor’s!
Degree

11. $160
$120
$80
$40
$0
AverageWage(thousands)
Associate’s!
Degree
Some!
College
Secondary!
Diploma
No Secondary!
Diploma
$153
$117
$130
$89
$115
$69
$89
$56
$60
$38
$54
$32
$44
$28
$33
$20
Advanced Industries
Offer a Significant Wage Premium at Every Level of Education
Doctoral!
Degree
Professional!
Degree
Master’s!
Degree
Bachelor’s!
Degree
50 percent!
of advanced industry jobs !
require less than a bachelor’s degree

12. Drive Productivity in
Other Industries
Stimulate Local
Economies
Support Long!
Supply Chains
Develop Technology that
Transforms Lives
Advanced Industries

13. Drive Productivity in
Other Industries
Stimulate Local
Economies
Support Long!
Supply Chains
Develop Technology that
Transforms Lives
Advanced Industries
39 million!
total jobs supported by
advanced industries

14. Advanced Industries
W H A T W H E R E W H Y

15. Advanced Industries
Share of Total
Metro Employment
in Advanced Industries
2.0 to 5.8 percent
5.8 to 8.3 percent
8.3 to 11.3 percent
11.3 to 16.0 percent
16.0 to 29.9 percent
Are Highly Metropolitan and Vary Across Regions

16. Advanced Industries
Are Highly Metropolitan and Vary Across Regions
Boise City, ID
Palm Bay, FL
Wichita, KS
Manufacturing Specialization

17. Advanced Industries
Are Highly Metropolitan and Vary Across Regions
Houston, TX
Birmingham, AL
Salt Lake City, UT
Energy Specialization

18. Advanced Industries
Are Highly Metropolitan and Vary Across Regions
Denver, CO
Washington, DC
Boston, MA
Service Specialization

19. Advanced Industries
Are Highly Metropolitan and Vary Across Regions
San Jose, CA
Austin, TX
Detroit, MI
Balanced Metros

20. Advanced Industries
Are Highly Metropolitan and Vary Across Regions
Ships and Boats
Management Consulting
Computer Systems Design
Architecture and Engineering
Research and Development Services
Top industries
by employment
$96,740average pay, advanced industries
$53,030
average pay, all industries
442,930Advanced Industry
Jobs
11.2%
AI share of total
employment
Virginia
Advanced Industry
Dashboard

21. W H A T W H E R E W H Y
Advanced Industries

22. Advanced Industries
Innovation Skills Ecosystems

23. Advanced Industries
Innovation Skills Ecosystems
Total Spending on Research and Development
2010-2012 average as share of GDP
0
Korea
IsraelFinlandSweden
Japan
Chinese
TaipeiDenm
arkGerm
any
Switzerland
Austria
United
StatesSlovenia
Iceland
FranceBelgiumAustraliaSingapore
Netherlands
China
1
2
3
4

24. Advanced Industries
Innovation Skills Ecosystems
Share of population 20-34
with a STEM degree
Percentage of graduates
majoring in STEM fields
RANK VALUE
24
25
26
27
28
29
0.86%
0.84%
0.82%
0.77%
0.76%
0.75%
Slovenia
Estonia
Canada
United States
Netherlands
Hungary
30
31
32
33
34
35
22.0%
21.9%
21.8%
19.3%
19.2%
18.7%
Norway
Australia
Poland
United States
Chile
Japan
RANK VALUE

25. 1980 2013
Major metropolitan areas with at least 10 percent of total employment in advanced industries
Advanced Industries
Innovation Skills Ecosystems

26. Advanced Industries
Innovation Skills Ecosystems

27. W H A T
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