The document discusses advanced industries in the United States and Germany. It finds that since the recession, the U.S. has been missing over 5 million jobs compared to pre-recession levels. Advanced industries make up a significant portion of the U.S. and German economies, but Germany invests more in research and has stronger workforce training systems like apprenticeships. The document argues the U.S. could benefit from adopting policies and institutions that strengthen regional innovation ecosystems like those in Germany.
1. GLOBAL CITIES INITIATIVE
A JOINT PROJECT OF BROOKINGS AND JPMORGAN CHASE
Munich, Germany / November 18, 2014
@bruce_katz!
#globalcities
2. Post-Recession U.S. Jobs Gap !
Since start of recession
Payroll Count Jobs Gap Growth-Based Jobs Gap
5,000,000
0
-5,000,000
-10,000,000
2007 2009 2014
Source: The Hamilton Project analysis of Congressional Budget Office and Current Employment Statistics data.
3. Post-Recession U.S. Jobs Gap !
Since start of recession
Payroll Count Jobs Gap Growth-Based Jobs Gap
5,000,000
0
-5,000,000
-10,000,000
2007 2009 2014
5.2 million!
missing jobs
Source: The Hamilton Project analysis of Congressional Budget Office and Current Employment Statistics data.
8. Manufacturing
Pharmaceuticals
Advanced Industries
Motor Vehicles & Medical Equipment
Parts
Aerospace
35
Energy
3
Oil & Gas !
Extraction
Electricity !
Generation
9. Manufacturing
Pharmaceuticals
Advanced Industries
Motor Vehicles & Medical Equipment
Parts
Aerospace
35
Telecommunications R&D Consulting
Services
Software Computer Systems
Design
Services
12
Energy
3
Oil & Gas !
Extraction
Electricity !
Generation
10. Advanced Industries
Wages
$90,000
average advanced
industry wage
> $47,000
average wage
Skills
1 out of 2
advanced industry jobs require
less than a 4-year degree
Source: Brookings Analysis of Moody’s Analytics and BLS OES Data
11. Advanced Industries
Advanced Industries!
Share of U.S. Totals
Jobs GDP Exports Patents
R&D
Share of
GDP Growth
’09 – ’13
Share
Job Growth
’09 – ’13
*Advanced Industries spend over $450 on R&D per job annually and over 20 percent of jobs are in STEM occupations. Source: Brookings Institution forthcoming.
12. Advanced Industries
Drive Productivity in
Other Industries
Support Long!
Supply Chains
Stimulate Local
Economies
Develop Technology that
Transforms Lives
14. 3.8% 5.0%
3.5% 4.4%
Japan
France United
States
3.1%
United
Kingdom
European
Union
Germany South
Korea
China
5.5%
10.9%
20.7%
Growth of Domestic R&D Expenditures!
Average Annual Growth, 2001-2011
Source: National Science Foundation, SEI 2014
Innovation
15. Innovation
Triadic patents per million workers
2010-2012 average
400
300
200
100
0
Switzerland
Sweden
Japan
United States
Finland
Germany
Netherlands
Israel
Korea
Denmark
Austria
United Kingdom
France
Belgium
Luxembourg
Canada
Singapore
Ireland
Norway
17. Percentage of graduates
majoring in STEM fields
RANK VALUE
1
…
31
32
33
34
35
26.7%
…
21.9%
21.8%
19.3%
19.2%
18.7%
Germany
…
Australia
Poland
United States
Chile
Japan
Source: OECD Global Skills Survey
Skills
18. 36%
Source: US Census Bureau, 2010 American Community Survey
19%
Hispanics
Educational Attainment!
Associate’s Degree or Higher
African
Americans
Non-Hispanic
Whites
Asians
25%
39%
56%
United
States
Skills
19. Source: US Census Bureau, 2010 American Community Survey
Educational Attainment!
Associate’s Degree or Higher
19%
Hispanics
25%
African
Americans
Skills
24. Manufacturing and the Export Economy!
United States versus Germany
100
50
0
United States
Share of GDP
in mfg
Share of
mfg GDP in
high-tech
Exports as
share of
GDP
Mfg share
of mech.
exports
22
12
58
42
54
7
82
62
+$425 b
German trade balance
in manufacturing
-$668 b
U.S. trade balance in
manufacturing
Germany
28. Lander!
Institutions
Universities
Helmholtz!
Association
Federal!
Institutions
Max Planck!
Society
Academies
Research Infrastructures
Fraunhofer-!
Gesellschaft
Leibniz!
Association
Companies/Industrial
Research
Networks and !
Clusters
Public Funding Private Funding
Basic Research Applied Research
Innovation!
Platform
Industrial Research !
Associations (AIF)
29. Lander!
Institutions
Universities
Helmholtz!
Association
Federal!
Institutions
Max Planck!
Society
Academies
Research Infrastructures
Fraunhofer-!
Gesellschaft
Leibniz!
Association
Companies/Industrial
Research
Networks and !
Clusters
Public Funding Private Funding
Basic Research Applied Research
Innovation!
Platform
Industrial Research !
Associations (AIF)
30. Lander!
Institutions
Universities
Helmholtz!
Association
Federal!
Institutions
Max Planck!
Society
Academies
Research Infrastructures
Fraunhofer-!
Gesellschaft
Leibniz!
Association
Companies/Industrial
Research
Networks and !
Clusters
Public Funding Private Funding
Basic Research Applied Research
Innovation!
Platform
Industrial Research !
Associations (AIF)
31. Lander!
Institutions
Universities
Helmholtz!
Association
Federal!
Institutions
Max Planck!
Society
Academies
Research Infrastructures
Fraunhofer-!
Gesellschaft
Leibniz!
Association
Companies/Industrial
Research
Networks and !
Clusters
Public Funding Private Funding
Basic Research Applied Research
Innovation!
Platform
Industrial Research !
Associations (AIF)
32. Lander!
Institutions
Universities
Helmholtz!
Association
Federal!
Institutions
Max Planck!
Society
Academies
Research Infrastructures
Fraunhofer-!
Gesellschaft
Leibniz!
Association
Companies/Industrial
Research
Networks and !
Clusters
Public Funding Private Funding
Basic Research Applied Research
Innovation!
Platform
Industrial Research !
Associations (AIF)
33. 67 centers
23,000
6-8,000
employees
projects per year
!
$2 billion annual research
34. SMEs
67 centers
23,000
6-8,000
employees
projects per year
!
$2 billion annual research
35. Lander!
Institutions
Universities
Helmholtz!
Association
Federal!
Institutions
Max Planck!
Society
Academies
Research Infrastructures
Industrial Research !
Associations (AIF)
Fraunhofer-!
Gesellschaft
Leibniz!
Association
Companies/Industrial
Research
Networks and !
Clusters
Public Funding Private Funding
Basic Research Applied Research
Innovation!
Platform
39. 15% Fachoberschulen & Berufsfachschulen!
Full-time technical education and training.
Workforce & Skills
Pipeline
Completion of Lower Secondary School
40. 15% Fachoberschulen & Berufsfachschulen!
Full-time technical education and training.
30% Gymnasium!
Continued classroom studies and the!
pathway to university.
Workforce & Skills
Pipeline
Completion of Lower Secondary School
41. 15% Fachoberschulen & Berufsfachschulen!
Dual Berfusauddildung!
The dual system of training in which
students train 3-4 days per week,
complemented by teaching in
vocational school 1-2 days per week !
45%
Full-time technical education and training.
30% Gymnasium!
Continued classroom studies and the!
pathway to university.
Workforce & Skills
Pipeline
Completion of Lower Secondary School
42. Dual Berfusauddildung!
The dual system of training in which
students train 3-4 days per week,
complemented by teaching in
vocational school 1-2 days per week !
15%
30%
45%
Fachoberschulen & Berufsfachschulen!
Full-time technical education and training.
Gymnasium!
Continued classroom studies and the!
pathway to university.
Workforce & Skills
Pipeline
Completion of Lower Secondary School
43. Dual Berfusauddildung!
The dual system of training in which
students train 3-4 days per week,
complemented by teaching in
vocational school 1-2 days per week !
15%
30%
45%
Fachoberschulen & Berufsfachschulen!
Full-time technical education and training.
Gymnasium!
Continued classroom studies and the!
pathway to university.
44. Dual Berfusauddildung!
The dual system of training in which
students train 3-4 days per week,
complemented by teaching in
vocational school 1-2 days per week !
15%
30%
45%
Fachoberschulen & Berufsfachschulen!
Full-time technical education and training.
Gymnasium!
Continued classroom studies and the!
pathway to university.