Presentation by Bruce Katz, Vice President of the Brookings Institution and Director of the Metropolitan Policy Program. Full presentation video: http://www.youtube.com/watch?v=QSgVUvaNm3A Global Cities Initiative forum in Los Angeles, CA on March 21, 2012. The Global Cities Initiative is a Joint Project of Brookings and JPMorgan Chase. For more information: http://www.brookings.edu/projects/global-cities.aspx

1. @bruce_katz
#globalcities Columbus, OH / May 9, 2012

2. More Jobs
11.2 million
jobs needed

3. More Jobs

4. More Jobs & Better Jobs

5. 1 2 3
A vision for the next
1 American economy

6. 1 2 3
The next economy will be
2 largely metropolitan

7. 1 2 3
Metropolitan areas METRO
3 are driving innovation INNOVATION

8. 1 2 3
A vision for the next
1 American economy

10. Global GDP
21.0%
BIC Countries
19.9%
US
2009
Source: International Monetary Fund, World Economic Outlook Database, April 2010

11. Global GDP
26.5%
BIC Countries
17.9%
US
2015
Source: International Monetary Fund, World Economic Outlook Database, April 2010

12. Global Metro Population
50%
2009

13. Global Metro Population
60%
2030
Source: UN Department of Economic-Social Affairs, World Urbanization Prospects, 2009

14. Economic Performance
2010-2011
Highest Performing Metros
Lowest Performing Metros
Source: Brookings, Global MetroMonitor, January 2012

15. Exports Share of GDP
2010
30% 29% 22%
13%
China Canada India
15% 15%
United States
Japan European Union
Source: Brookings analysis of WTO and EIU data, 2011

16. Transport Networks are Clogged and Congested

18. Can we get back into the
export game?

19. 11%
US export growth
2009-2010

20. 46%
exports share of
GDP growth
2009-2011

21. $944 billion
US manufactured exports
2010

22. Top Manufacturing Exporting Countries
2010, Billions
$1477
$1091
$944
$680
$409
France Japan United States Germany China
Source: World Trade Organization, 2011

24. What the US makes
The world takes

25. US Service Trade
Billions, 2010
$518
$160 billion
$358 trade surplus
Service Service
Imports Exports
Source: World Trade Organization, 2011 (Data reflect Commercial Services)

26. Service Exports
Share of World Total, 2010
14.0%
United States
6.3%
Germany
Source: Brookings, Export Nation 2012

27. “We set a new goal: We will double
our exports over the next five years,
an increase that will support two
million jobs in America.”
President Obama
January 27, 2010
Photo: Pete Souza, The White House

32. Can the U.S. play in the
low carbon revolution?

33. 2.7 million
clean economy jobs
Sources: Brookings-Battelle Clean Economy Database (2011)

34. 2.7 million
clean economy jobs
1.4 million
biosciences jobs
2.4 million
fossil fuel jobs
4.8 million
IT jobs
Sources: Brookings-Battelle Clean Economy Database (2011), Brookings Analysis of Battelle, BLS, Moody’s Analytics data

35. $53.9 billion
clean economy exports
Source: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

36. Export Intensity
Yearly Export Earnings per Job
$20,124
$53.9 billion
clean economy exports
$10,392
National Clean
Economy Economy
Source: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

38. 35%
manufacturing
68%
manufacturing
90%
manufacturing
share of engineers share of R&D share of patents
Source: EOP “A Framework for Revitalizing American
Manufacturing” (2009)
Brookings “Accelerating Advanced Manufacturing with New
Research Centers” (2011)

39. Can the U.S. be an
Innovation Nation?

40. The En d of Cheap
The coming US
China ages mean boom and how
Chinese w
What d o soaring g?
nufacturin
for global ma shale gas will fuel it
US Names China On Quake Dis
May 10, 20
12
April 23, 2012 rupts Key
’s largest m
anufacturin
g
Supply Ch
China is the
world
ut put of televisions,
Integs ual-Property
in
llect
Ten years from today, the CEA and
ains
power. Its o nd other th
s, steel pipes a Watchlist April 30, 20
smartphone your foot su
rpassed
ra
Federal Reserve chairman will again 12
you can drop on w accounts fo celebrate a decade of unexpected stron
0. China no g
Amer ica’s in 201 t s factories
al manu facturing. I April hey 2012
t 30, growth. This time the credit will go to The earthquake t
fifth of glob heaply that hat struck n
de so much, so c s trading countrywide gains from the very low Japan Frida
y forced shu ortheast
have ma many of it tdowns acro
d inflation in a may be energy prices found only in the US. broad spectr
have curbe f cheap ChinChina's insufficient protection of um of the co ss a
ut the era o Low-cost energy will have spawned an industries, but the untry's
partners. B
a close. intellectual property rights remains a top bigger impa
drawing to export surge in all sorts of goods, fro companies c ct f or
U.S. trade policy, given the chem m ah ould come in
priority for icals to tyres. ead as the d the weeks
isruptions m
"troubling" direction of recent government way through ake their
the global su
measures aimed at supporting domestic pply chain.
The 8.9-mag
innovation, the U.S. Trade Representative's nitude earth
the largest o quake, one o
office said Monday. n record, ha f
activity for n s crippled
ow in a coun
try that is a
Source: Brookings analysis of Moody’s Economy.com data

41. d of Cheap
The En The coming US
China bh es Chinsa dah
o e e w ge e n
USaNaminosmaanmOn ow
What do s
o ring C
nushale gas
38%
facturing?
Quake Dis
for Inte wil u
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r pts Key
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ing
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ld’s largest
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Aprilutput on tyears nd o2htodhin,gthe CEA and
Its o 30, 2012 es a t e
s, s Fe l pip
teederal Reservsschairman will
smartphone The o rtrpae ed
yourratetasuhquake ts for a
again
manufacturing share of
fo e
you can dr op on leb
ce a cade nof at st cted
China's 010. JapannFdeaccionofrunexpeck nostrong t
ou th
China ow
2insufficient protectfacto ies ru rthe
America’s in growthturinisitime orcecredit will go to as
rIs
g. dtay f the d
fac . Thrights remains shutdown
manu b
f globaltual unroady e eply t mt they a top s across
economic growth
propert h c
fifth ointellec couchtrywispagaruhafro
m in, so c de t ins given the very low
oam e count
f ding
th the a
priorityo en tion in manpolicy,t
s
have made for ergyustries, bf its tr
d trade
U.S. pr y o ut
ices p Chnd onaigbe r imUS.
ry's
curb ed infla c h m ly in
fou ina e b y ge the
have "troubling" directioniof recent government pact for
partn
drawin
oa p chea
the ermofa n er co will o
ers. But Low-cost enes gy uld chave in awned an
d supporting domestsp
me
measureslosaheaat rgethe allssortsio gothe weeks
e.
g to a c aimedsu as in di rupt
export ic 2009 Q3 - 2011 Q4
way t ods,of
ns mak from
innovation, the U.S.to gh the globentative's e their
chemicahroTrade Repres al s
ls u tyres. upply chain.
office said The 8.9-
Monday. m
agnitude ear
the largest o th quake, on
n record, ha e of
activity for n s crippled
ow in a coun
try that is a
Source: Brookings analysis of Moody’s Economy.com data

43. 11%
wage premium
in exporting firms
Greater likelihood
of health and
retirement benefits
in export-intense
industries
Source: Istrate, Rothwell & Katz, Export Nation (2010)

44. The U.S. must get smart...
fast

46. Educational Attainment
Associate’s Degree or Higher
56%
36% 39%
25%
19%
United Asians Non-Hispanic African Hispanics
States Whites Americans
Source: US Census Bureau, 2010 American Community Survey

47. Educational Attainment
Associate’s Degree or Higher
25%
19%
African Hispanics
Americans
Source: US Census Bureau, 2010 American Community Survey

48. 1 2 3
The next economy will be
2 largely metropolitan

50. Source: Brookings analysis of US Bureau of Economic Analysis data

51. Ohio
Akron, Cincinnati, Cleveland, Columbus
Dayton, Toledo, Youngstown
71% 78%
Population GDP

52. Ohio
Akron, Cincinnati, Cleveland, Columbus
Dayton, Toledo, Youngstown
Canton, Springfield, Mansfield, Lima, Sandusky, Wheeling,
Weirton, Huntington, Parkersburg
81% 86%
Population GDP

53. Top 100 Metro Exports
Share of U.S. Totals
75%
66% 63%
Population Service Manufacturing
Exports Exports
Source: Brookings, ExportNation 2012

54. Top 100 Metro Exports
Share of U.S. Totals
76% 78%
66% 68%
Population Chemical Business/ Computer/
Products Professional Electronic
Services Products
Source: Brookings, ExportNation 2012

55. Top 100 Metro Trade Logistics
Share of U.S. Totals
88% 92%
66% 82%
Population U.S. Air Foreign Airline
Cargo Waterborne Boardings
Weight Cargo Weight
Source: Brookings analysis of US Census Bureau, FAA, and PIERS data (2009)

60. Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA

61. Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA

62. Columbus, OH Metro Export Dashboard
Goods & Services Exports
Export Volume
$7.9 B
38.9% 61.1%
services share goods share of
Export Jobs of exports exports
55,500
Top Services Sectors Top Manufacturing Sectors
Export Intensity
Business & Transportation
9.8% Professional Services
11.2% Equipment
18.9%
8.9%
Travel & Tourism 8.8% Chemicals 14.2%
Top 100 Columbus Financial Services 7.9% Machinery 11.3%
Metros Metro
Source: Brookings, ExportNation 2012

63. Locating American
ManufacGuring: of Production
t
eography
Trends in the
l1
y Kru eger, and Howard Wia
Susan Helper, Timoth
ents engaged
Findings of business establishm
gs, and the number
employment, earnin
Analysis of data on
g finds that: l metropolitan coun-
in U.S. manufacturin itan areas and centra
ally large metropol y high-technology
Metro politan areas, especi g job s and nearly all ver
ty of manufacturin in general
ties, con tain the great majori vid e to manufacturing
“Different regions manufacturing jobs, reflecting the
advantages they pro
g in particular. In 201
0, me tropolitan areas con
-
nology manufacturin ly high-technology
and very high-tech 6 percent of moderate
of the country, tained 79.5 percent
of all manufacturing
jobs, 78.
chnology manufacturin
g jobs.
cent of very high-te g since
manufact uring jobs, and 95 per cia lized in manufacturin
ome increasingly spe
different met- U.S. metropol itan areas have bec
nufacturing activit
ies and focuses. Nearly all me
t-
1980 but they var y widely in their ma g indust ry even if they do not
st one manufacturin
ropolitan areas, ropolitan areas special
ize strongly in at lea
manufact uring as a whole. patterns of
specialize strongly in or more of six broad
itan areas follows one
and even dif- Manufacturin g in most metropol
anchored in high spe
cial izations in computers
and
n-
industry clustering
. These patterns are ries, chemicals, machi
manufacturing indust
ferent counties electronics, transpo
rtation equipment, low
-wage
tion. ’s 100 largest
ery, and food produc areas. In the nation
among metropolitan
within the same Manufacturin g wages vary widely
acturing earnings are
hig hest in San Jose, at
about
metropolitan are as, the average manuf
about $35,000.
metropolitan $145,000 per year, and
lowest in McAllen, at
ly small but vary wid
ely in size among
g plants are relative 57.4 employ-
politan manufacturin ma nufacturing plant had
area differ greatly
Metro average metropolitan
areas. In 2009, the an City, NJ.
metropolitan , TN, to a low of 9.1 in Oce
of 203.6 in Kingsport t
ees, a figure tha t ranged from a high cam e to a halt in the firs
s toward the South
in their manufac- The long-term shift
of manufacturing job
west had the fastest manufact
uring job gains
century, while the Mid h the Midwest and the
South lost about
decade of the 21st
turing industries, over the last two years. Betwee
n 2000 and 2010 bot
s, while between the
firs t quarter of 2010 and
the fourth
saw a
34 percent of the ir manufacturing job per cent while the South
uring job gain of 5.2
technology lev- quarter of 2011 the Mid
west saw a manufact
shifts of manu-
gain of 2.2 percent. tinuation of long-term
els, wages, and The ear ly 21st century saw
a resumption or con
tral metropolitan countie
s. Between
politan areas and cen ee or more counties
lost
facturing job s away from metro thr
tropolitan areas with
plant sizes.” 2000 and 2010 the
central counties of me
while the outlying counties of
those metropolitan
manufacturing jobs s at a slower rate
33.9 percent of their lost manufacturing job
h metropolitan areas s gained
areas lost 29.3 percent. Althoug 0, non metropolitan countie
ween 2000 and 201
than nonme tropolitan counties bet ing the past two years.
tropolitan areas dur
more rapidly than me
manufacturing jobs an-
and productivity adv
ance the innovation
lic policy should enh ntives for
In view of these findings, pub acturers, while elim inating artificial ince
itan areas offer manuf so much regional var
iation in
tages that metropol s. Because there is rts,
manufacturers to see
k low-wage location l, and metropolitan effo
e a pla tform for state, loca
policy should provid
1
ma nufacturing, federal d to regional nee ds.
which can April 2012
BROOKINGS |formu
late policies to respon
www.brookings.edu/USmfg

64. Ohio Metro Manufacturing Specialties
Cleveland
Fabricated Metal
Products
Toledo
Motor Vehicles & Youngstown
Parts Primary Metals
Akron
Plastics & Rubber
Dayton
Machinery
Columbus
Motor Vehicles &
Cincinnati Parts
Aerospace
Source: Brookings, Locating American Manufacturing 2012

65. Columbus, OH Metro Export Dashboard
Top Manufacturing Sectors
Manufacturing Jobs
63,154
Manufacturing Manufacturing
Intensity Growth
2010 Q1 - 2011 Q4
8.5%
6.9% 3.3%
2.7%
Motor Vehicles & Parts 18.9%
Food 14.2%
Fabricated Metals 11.3%
Columbus Columbus
US
Metro US Machinery 10.2%
Metro
Nonmineral Mineral Products 6.8%
Source: Brookings, Locating American Manufacturing 2012

66. 1 2 3
Metropolitan areas METRO
3 are driving innovation INNOVATION

67. Innovate Locally

68. Market Assessment
Metropolitan Business Planning Economic Profile Target Sectors
15% 12%
8% 9%
12%
13%
9%
Seattle
Establish Goals & Strategies
Syracuse
Portland
Double exports Support key sectors
Minneapols- Increase global fluency Boost SME exports
Saint Paul Northeast
Ohio
Los Angeles Collaborate to Compete
Firms
Universities Governments
Philanthropy

69. Target industries: aerospace,
Metropolitan Business Planning computer and electronic products,
pharmaceuticals, professional services,
film and television
Grow Los Angeles metropolitan
exports
Los Angeles Regional Export Council
City of
Los Angeles
Los Angeles
University of University of
Southern California Los
California Angeles

70. Key manufacturing growth sectors:
Metropolitan Business Planning fuel cells, electric vehicles, organic
electronics
Retool manufacturing and retrain
industrial workers
Northeast
Ohio
Case Western The University John Glenn
Reserve of Akron Research Center

71. www.columbuswor
ldaffairs.org
A catalog of interna
tional assets in Gre
ater Columbus
With Support From
: Columbus2020!,
MORPC, and The
Research By: Com Columbus Foundation
munity Research Part
ners

72. Innovate Locally Advocate Nationally

73. Pennsylvania
State Governments Center for Trade & Development
22 foreign trade
offices
firms assisted with
1,350 exports
new exports from
$483 m assisted firms, 2010
Florida
Enterprise Florida
12 international
offices
state GDP added from export
$3 b assistance & business
development in 2011

74. State Governments

75. Ohio
State Governments
Third Frontier
to foster innovation
$700 m ecosystem in Ohio
2010-2016

76. Ohio
State Governments
Third Frontier
to foster innovation
$700 m ecosystem in Ohio
2010-2016
Edison Technology Centers
regional centers providing innovation &
7 commercialization services
JobsOhio
Attracting foreign direct investment
Empowering regional economic
development

77. Federal Government
port-Imp ort Bank
Ex
Reautho rization
MAP-21
Moving Ah
ead for
Progress i
n the
21st Centu
ry

78. Federal Government
Free Trade
Agreemee t ra
Fr en T d
Agreemene
ra d e t
Free T
Agreement
Modernize Trade
Open Markets Protect Innovation
Corridors

79. Federal Government
Free Trade
Agreemee t ra
Fr en T d
Agreemene US Trade Representative
ra d e t
Free T Intellectual Property
Agreement Enforcement Coordinator
US Patent & Trademark Office
Modernize Trade
Open Markets Protect Innovation
Corridors

80. Federal Government
Free Trade
Agreemee t ra
Fr en T d
Agreemene US Trade Representative
ra d e t
Free T Intellectual Property
Agreement Enforcement Coordinator
US Patent & Trademark Office
Modernize Trade
Open Markets Protect Innovation
Corridors

81. EXECUTIVE OFFICE OF THE PRESIDENT
Council of Economic Advisors Council on Environmental Quality National Security Council
Office of Administration Office of Management & Budget Office of Nat’l Drug Control Policy
Office of Policy Development Office of Science & Technology Policy Office of the US Trade Representative
CABINET AGENCIES
Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy
Department of Health & Human Department of Homeland Security Department of Housing & Urban Department of the Interior Department of Justice
Services Development
Department of Labor Department of State Department of Transportation Department of Treasury Department of Veterans Affairs
INDEPENDENT ESTABLISHMENTS AND GOVERNMENT CORPORATIONS
Corporation for Equal Employment
African Development Central Intelligence Commodity Futures Consumer Product Defense Nuclear Environmental Export-Import Bank of
National and Opportunity
Foundation Agency Trading Commission Safety Commission Facilities Safety Board Protection Agency the United States
Community Service Commission
Federal Federal Mine Safety &
Farm Credit Federal Deposit Federal Election Federal Housing Federal Labor Federal Maritime Federal Mediation and
Communications Health Review
Administration Insurance Corporation Commission Finance Board Relations Authority Commission Conciliation Service
Commission Commission
Federal Retirement National Aeronautics National Archives and
Federal Reserve Federal Trade General Services Inter-American Merit Systems National Capital
Thrift Investment and Space Records
System Commission Administration Foundation Protection Board Planning Commission
Board Administration Administration
National Foundation National Railroad National Occupational Safety &
National Credit Union National Labor National Mediation National Science Nuclear Regulatory
on the Arts and Passenger Corporation Transportation Safety Health Review
Administration Relations Board Board Foundation Commission
Humanities (AMTRAK) Board Commission
Overseas Private
Office of Government Office of Personnel Office of Special Pension Benefit Postal Rate Railroad Retirement Securities and
Investment Peace Corps
Ethics Management Council Guaranty Corporation Commission Board Exchange Commission
Corporation
US Agency for
Selective Service Small Business Social Security Tennessee Valley Trade & Development US Commission on US International Trade
International US Postal Service
System Administration Administration Authority Agency Civil Rights Commission
Development

82. PROPOSED “BUSINESS USA” REORGANIZATION
Office of the US Trade Representative Export-Import Bank of
the United States
Department of Commerce
Overseas Private
International Trade Administration
US Census Investment
National Technical Information Service Corporation
Select USA
Bureau of Industry & Security Small Business
National Institute of Standards & Technology
Minority Business Development Agency Administration

83. Office of the US Trade Representative Export-Import Bank of
the United States
Department of Commerce
Overseas Private
International Trade Administration
US Census Investment
National Technical Information Service Corporation
Select USA
Bureau of Industry & Security Small Business
National Institute of Standards & Technology
Minority Business Development Agency Administration
Federal Government State Government
INTEGRATED METROPOLITAN Universities Firms
EXPORT PROMOTION
Philanthropy Local Governments

84. Innovate Locally Advocate Nationally Network Globally

85. Toronto London Frankfurt
New York Paris
Tokyo
Shanghai
Lagos
Sao Paulo
Sydney

86. Detroit Cologne
Monterrey Chongqing
Bogota Hanoi
Chennai
Johannesburg

87. Rotterdam
Hamburg
Los
Angeles Tianjin
Dubai
Seoul
Singapore
Durbin
Buenos Aires

88. Antioch
Samarkand
Tyre
Baghdad Tehran
Lanzhou
Xi’an
Delhi

89. Antioch
Samarkand
Tyre
Baghdad Tehran
Lanzhou
Xi’an
Delhi

91. @bruce_katz
#globalcities Columbus, OH / May 9, 2012