The document outlines a strategy for job creation and economic competitiveness in Washington state. It proposes focusing on five drivers: fueling talent through education and skills training; investing in entrepreneurship; improving infrastructure; regulating smarter; and expanding international business. The strategy aims to transition Washington's economic development model from one focused on job preservation to one centered around job creation, innovation, and bottom-up organic growth. It identifies priority actions under each driver and proposes establishing 15 Innovation Partnership Zones across the state to strengthen regional innovation ecosystems.

1. Driving Washington’s Prosperity
A Strategy for Job Creation and Competitiveness
January 9, 2013
Egils Milbergs
Executive Director
Washington Economic Development Commission
Olympia, Washington
www.wedc.wa.gov
egilsm@wedc.wa.gov
360-586-5661
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2. Commission Members
WA Economic Development Commission 2

3. A Ten Year Vision
Make Washington the most attractive, creative and fertile
environment for Economic Development Commission world by 2020 3
WA
innovation in the

4. New Approach for Economic Development
Traditional Model Innovation Model
Attracting companies Investing in talent, ideas
and infrastructure
Jobs Incomes
Top Down Development Bottom-up organic growth
Closed innovation Open innovation
Competing regions Collaborating regions
Geographic clusters Globally linked networks
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5. The problem we need to solve!
50
0
Difference with Initial Period Employment
(Thousands of Workers)
-50
-75.67
-100
2001 Recession (3 quarters)
Since Q4 2007
-150
-200
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57
Months of Recovery
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Data source: U.S. Bureau of Labor Statistics

6. Largest Absolute Changes in Employment
October 2012 year-over-year, based on 3 month moving average
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Data source: Washington State Employment Security Department.

7. The Great Policy Reset
FROM TO
• Job Preservation • Job Creation
• Shovel Ready • Innovation
• Expand Safety Net • Upgrading Skills
• Consumption • Investment
• Debt • Exports
• Top-down macro • Bottom-up organic
strategies strategies
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8. What do we need to do?
Progress needed along five drivers
Intellect
Investment
Infrastructure
Regulations
International
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9. Driver One: Fueling the Future—Making
Talent a Top Priority
Prof Prof
Technical
Technical
Unskilled Unskilled
1. Create jobs for Washingtonians and industry needs by achieving 60%
post-secondary degrees & credentials.
2. Increase pool of qualified workers by emphasis on STEM proficiencies
and career and technical education at the HS level.
3. Fill critical skills gaps and grow new enterprises by attracting and
retaining world’s best and brightest minds and funding education in high
demand occupations.
4. Upgrade skills of the unemployed through expanded flexibility of
unemployment programs to support training where job vacancies exist.
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10. Driver Two: Adding Horsepower—Investing
in Entrepreneurship
1. Improve tax and regulatory policy to
foster growth of start-ups and job
creating business clusters
2. Invest in World class research talent,
assist new enterprise formation and
connect the state's research base to
industry, entrepreneurs and investors.
3. Leverage job creating potential of the
innovation ecosystems through large
scale collaboration and competing
aggressively for federal, foundation
and private funds.
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11. Pillar Three: Paving the Way—Connecting
through Reliable Infrastructure
1. Implement alternative financing mechanisms
for transportation infrastructure for asset
preservation, freight mobility and investment
in economic corridors.
2. Prioritize the most critical infrastructure
challenges and lead globally in energy
efficiency, clean water, advanced
manufacturing, cyber-security, sustainable
urban design and broadband deployment.
3. Require economic development and long
term job creation criteria the capital
budgeting process.
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12. Driver Four: Running Lean—Regulating
Smarter
1. Systematically review on sector-by-sector
basis all state regulations for their cost-
effectiveness and determine overlaps,
excessive costs, obsolescence,
redundancy and solutions.
2. Expand agency use of lean process
improvement to lower cost of regulatory
compliance and reduce time delays.
3. Create navigator service for industry to
manage their interaction with the
regulatory system, including a
comprehensive online portal for
regulatory compliance.
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13. Pillar Five: Firing on all Cylinders--Expanding
International Business
1. Intensify innovation and collaboration in
the Pacific Northwest economic region and
support cross-border projects for economic
diversification, expanded trade and jobs.
2. Drive job creation through a coordinated
system of trade services between the
programs of Washington State and regional
and federal programs.
3. Strengthen export assistance services and
re-establish overseas representation.
4. Double state-led, cluster based trade
missions to increase new-to-market
exporting firms.
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14. 15 Innovation Partnership Zones
• Bellingham Innovation Zone
• Aerospace Convergence Zone
• North Olympic IPZ
• Tri-Cities Research District
• S. 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 Center for Innovative
Partnerships, Auburn
• Urban Clean Water Technology
Zone, Tacoma
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15. IPZ Innovation Framework
Strengths & Joint Innovation
Weaknesses Opportunities
Bottom-up
Engagement
Strategy
Investments
Projects
Barriers to Interaction
Relationship Collective
IPZ Ecosystem Capital Efficiency
• Industry
• Research
• Workforce
• Entrepreneurs
• Capital
• Infrastructure OUTCOMES
• EDCs
• Etc…..
Prepared by Egils Milbergs v.1.1
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17. September 2012 we celebrated Commerce &
Innovation Economy with 25 events, symposia
and demonstrations. Link: www.thenextfifty.org
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18. Thank you!
“Sooner or later, we sit down to
a banquet of consequences”
– Robert Louis Stevenson
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