Recommended
More Related Content
What's hot
What's hot (19)
Similar to Capturing the next economy: Pittsburgh’s rise as a global innovation city
Similar to Capturing the next economy: Pittsburgh’s rise as a global innovation city (20)
Recently uploaded
Recently uploaded (20)
Capturing the next economy: Pittsburgh’s rise as a global innovation city
- 2. PROJECT TIMELINE Phase I: Project Steering Committee Development Phase II: Industry Assessment and Target Cluster Identification Phase III: Situational Assessment and Ecosystem Phase IV: Strategy Development and Recommendations Phase V: Implementation and Outreach Q1 2016 Q2 2016 Q3 2016 Q4 2016 - Q1 2017 Q1 2017
- 3. 60+ INTERVIEWS 20+ university and research professionals 15+ government, ecosystem, capital, and community organizations 20+ industry executives across industries and firm sizes Key Analyses Completed Industry cluster analysis Technology competencies across industry and universities Population and Talent Entrepreneurial activity Productivity & employment multipliers Geography of firms Real estate dynamics
- 4. SETTING THE CONTEXT 1 2 3 1 2 3
- 5. Next generation technologies are maturing and creating new markets.“
- 6. Mobile Internet Automation Internet of things Cloud Technology Advanced Robotics Autonomous Vehicles Genomics Energy storage 3D printing Advanced materials Advanced oil and gas Renewable energy
- 7. DETROIT, MI circa 1920
- 8. SILICON VALLEY, CA circa 1935
- 9. healthcare (approx. 48,000 jobs) health IT finance & insurance IT & software business services (2-3 major companies; 3,500 jobs) (approx. 10,000 jobs) (approx. 25,000 jobs) (approx. 20,000 jobs) INNOVATION AND PROSPERITY Nashville health IT component industries $12.6billion 106,000jobs
- 10. per capita income, San Jose and United States 120 100 80 60 40 20 2000 2005 2010 2015 thousands,USD San Jose United States INNOVATION AND PROSPERITY
- 12. Stellar research institutions Concentration of talented and diverse workers Ecosystem of firms, entrepreneurs, & intermediaries Accessible risk capital Collaborative networks Quality places
- 13. PITTSBURGH’S STARTING POSITION 1 2 31 2 3
- 14. Pittsburgh has come online at a transformational period, but its scientific strengths are table stakes in the new globally competitive environment “
- 15. Automation 3D Printing Advanced Robotics Autonomous Vehicles Genomics 17.5 concentration of robotics publications (LQ relative to US) 5th University of Pittsburgh ranking of NIH dollars
- 18. PITTSBURGH University Strengths University of Pittsburgh Academic Program Rankings 5th - Women’s Health 8th - Drug and Alcohol Abuse 9th - Pediatrics 16th - Medical Research 18th - Biomedical Engineering Carnegie Mellon University Academic Program Rankings 1st - Computer Science 2nd - Computer Engineering 5th - Engineering 8th - Electrical Engineering 8th - Mechanical Engineering 11th - Materials Engineering 11th - Civil Engineering • Heart, Lung, and Blood Vascular Institute • McGowan Institute for Regenerative Medicine • Relationship to UPMC • Energy Innovation Center Institutional Strengths • National Robotics Engineering Center • CyLab • Swartz Center for Entrepreneurship • America Makes Institutional Strengths
- 19. PITTSBURGH University Strengths All Pittsburgh Universities: R&D Funding and Scholarly Activity 2.3 concentration of total R&D funding (LQ relative to US) 3.5 concentration of medical sciences R&D funding (LQ relative to US) 8.3 concentration of computer sciences R&D funding (LQ relative to US) 4.1 concentration of total publications (LQ relative to US) 17.5 concentration of robotics publications (LQ relative to US) 4.5 concentration of critical care publications (LQ relative to US)
- 20. Construction, Drilling, & Industrial Treatment Semiconductors, Fuel Cells, & Electrical Connectors Milling & Machining Tools Protective Electrical Switches & Relays outlying network clusters Medical & Surgical Devices Biopharma & Biochemistry Polymers & Coating Data Storage Devices & Infrastructure Data Analytics, Software, & Networking Image Analysis/Processing, Optical Sensors, & Displays core network clusters INNOVATIVE CAPABILITIES NETWORK
- 21. LEADING INDUSTRY CLUSTERS higher growth more specialized Energy Computing, Networking & Information Services Corporate Services Automation & machinery Metals & metals processing Engineering services Chemicals Health Services Finance & Insurance Electronics Medical Technology by location quotient and job growth, ’09-‘14
- 22. SIGNS OF TURNAROUND productivity (value-added per worker) in Pittsburgh metro, relative to U.S. 0% 20% 40% 60% 80% 100% 120% 140% Total Private Sector Corporate Services Energy Metals and Metal Processing Chemicals 98% 127% 119% 119% 108% Automation 106%
- 23. STRENGTH OF FOUNDATIONS supportive philanthropic investments Network of Accelerators Center for ENERGY Life Sciences Machine Learning Robotics Computational Finance Translational Research Funding
- 24. STRENGTH OF FOUNDATIONS supportive philanthropic investments Community and philanthropic efforts have begun to democratize entrepreneurship and helped connect university startups with the broader community “
- 25. added 20 employees second round of funding (~$15M); grew to 35 employees revv STORY 60 employees
- 26. GE Center for Additive Technology Advancement GOOGLE Bakery Square UBER Advanced Technologies Center
- 27. Pittsburgh has sprung ahead based on technological leadership from its anchors and a growing entrepreneurial culture. The task over the next decade will be to translate these strengths into city-wide employment and business generators “
- 28. What are Pittsburgh’s challenges?
- 29. Pittsburgh MSA Advanced Industries Advanced Health and Business Services 2001 2002 2003 2006 2008 2009 2010 60 70 90 100 110 120 130 140 80 2004 2005 2007 2012 2013 2014 2011 Employment,indexedto2001 INDUSTRY CLUSTER PERFORMANCE employment base since 2001, selected industries
- 30. INDUSTRY CLUSTER PERFORMANCE technology clusters lack size to drive growth in wrap-around services 33% percent of total private sector activity in leading industry clusters 0.95 advanced industries LQ 1.24 advanced business and health services LQ
- 31. 0 4 8 12 16 Corporate and Financial Services Advanced Manufacturing Health and Life Sciences Information Technology Induced Indirect Direct INDUSTRY CLUSTER PERFORMANCE low multipliers in manufacturing suggest weak supply chains JOBS PER AN ADDITIONAL $1 MILLION IN OUTPUT:
- 32. INDUSTRY CLUSTER PERFORMANCE IT within the Pittsburgh manufacturing supply chain is weak LQ FOR COMPUTER/INFORMATION SERVICES WITHIN MANUFACTURING: United States average 1.0 PGH supply input level 0.75
- 33. INDUSTRY CLUSTER PERFORMANCE The employment base for much of the economy is still disconnected technology. The gulf between Oakland and the surrounding community isn’t just geographic “
- 34. INDUSTRY CLUSTER PERFORMANCE productivity within key clusters is low 0% 20% 40% 60% 80% 100% 120% Total Private Sector Medical Technology Electronics Manufact. Financial & Insurance IT 98% 57% 57% 82% 90% Health Services 93% PRODUCTIVITY (VALUE-ADDED PER WORKER) IN PITTSBURGH METRO, RELATIVE TO U.S.:
- 35. INDUSTRY machine tools medical devices polymers & coatings electrical switches spectrometry data processing ACADEMIC chemical filtration antigens & antibodies peptides & nucleic acids biological sampling semiconductor
- 36. INDUSTRY machine tools ACADEMIC medical devices polymers & coatings electrical switches spectrometry data processing chemical filtration antigens & antibodies peptides & nucleic acids biological sampling semiconductor medical filters & prosthetics image analysis diagnostic sensors pattern recognition
- 37. United States average Computer science research funding 8.7 1.0 COMPETENCIES AND ALIGNMENT research funding and industry employment, relative to US average
- 38. United States average Computer science research funding 8.7 1.0 COMPETENCIES AND ALIGNMENT research funding and industry employment, relative to US average Software industry Data processing industry .65 .37
- 39. COMPETENCIES AND ALIGNMENT United States average Pharmaceuticals research funding 3.6 1.0 research funding and industry employment, relative to US average
- 40. COMPETENCIES AND ALIGNMENT United States average Pharmaceuticals research funding 3.6 1.0 research funding and industry employment, relative to US average Medicinal manufacturing .31 Pharmaceuticals preparations .11
- 41. HIGH-GROWTH ENTREPRENEURS venture capital deals in peer cities, 2005-2014, millions 27th/40 growth entrepreneurship 5.3% of all firms are new in 2013 vs. 8.0% of U.S. firms SaltLake C ity Pittsburgh Phoenix St.Louis Indianapolis $1,800 M $1,400 M $1,000 M $600 M $200 M Deals < $10 million Deals $10-50 million
- 42. HIGH-GROWTH ENTREPRENEURS There aren’t enough examples of home runs to create a risk-taking culture. Entrepreneurs still think a few million dollar exit is a big deal “ Entrepreneurship in Pittsburgh in many ways is within its first cohort. Version 1.0 was about developing the capacity to generate lots of startups. Version 2.0 will be about growth and employment generation “
- 43. DEMOGRAPHICS AND WORKFORCE percentage change of metro population, 2009-2014 -3% 0% 3% 6% 9% 12% 15% A ustin C olum bus Indianapolis Portland Pittsburgh C leveland U.S.
- 44. DEMOGRAPHICS AND WORKFORCE rapid decline in mid-career workforce -18% -12% -6% 0% 6% 12% 18% Pittsburgh urban core Pittsburgh MSA United States Total 25 to 34 35 to 44 45 to 54 55 to 64 POPULATION GROWTH, 2009 TO 2014:
- 45. DEMOGRAPHICS AND WORKFORCE Everyone thinks the only workforce gap is among millennials, but that’s not true, a real gap exists within mid-career workers. They are extraordinarily important but increasingly hard to fill “
- 46. DEMOGRAPHICS AND WORKFORCE supply and demand of IT workers 0 1,000 2,000 3,000 4,000 Current Supply Future Demand Grad BA+ Sub-BA Departures Source: Allegheny Conference
- 47. DEMOGRAPHICS AND WORKFORCE Pittsburgh has worked to become a good culture and food city, and while that’s essential, high-value graduates are looking for career pathways “
- 48. FIRM GEOGRAPHY AND PLACEMAKING advanced manufacturing births and existing companies, 2009-2013
- 49. FIRM GEOGRAPHY AND PLACEMAKING health and life sciences births and existing companies, 2009-2013
- 50. FIRM GEOGRAPHY AND PLACEMAKING information technology births and existing companies, 2009-2013
- 51. FIRM GEOGRAPHY AND PLACEMAKING corporate and financial services births and existing companies, 2009-2013
- 52. FIRM GEOGRAPHY AND PLACEMAKING class A office space vacancy rates 0% 3% 6% 9% 12% 15% 18%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PGH Metro PGH City
- 53. FIRM GEOGRAPHY AND PLACEMAKING industrial space vacancy rates 0% 3% 6% 9% 12% 15% 18%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PGH Metro PGH City
- 54. NEXT STEPS FOR PITTSBURGH 1 2 31 2 3
- 55. INDUSTRY AND TECHNOLOGY Thin supply chains Weak industry/university connections in bridging technologies Limited connectivity between small and large businesses Unrealized opportunity for broader workforce in new technologies CONCERNS CURRENT EFFORTS
- 56. INDUSTRY AND TECHNOLOGY CONCERNS RECOMMENDATION Create industry-university technology convergence and collaboration centers Target strategic gaps in supply chain Create a matching fund for industry-university applied research projects targeted to SMEs Develop a First Customer program Connect business support services and manufacturing with new technology platforms Thin supply chains Weak industry/university connections in bridging technologies Limited connectivity between small and large businesses Unrealized opportunity for broader workforce in new technologies
- 57. INDUSTRY AND TECHNOLOGY CONCERNS BEST PRACTICES Oregon’s Signature Research Centers Thin supply chains Weak industry/university connections in bridging technologies Limited connectivity between small and large businesses Unrealized opportunity for broader workforce in new technologies
- 58. INNOVATION ECOSYSTEM Too little growth capital Institutional gaps for post- seed sized firms Pittsburgh still isn’t “known” for entrepreneurship CONCERNS CURRENT EFFORTS
- 59. INNOVATION ECOSYSTEM Too little growth capital Institutional gaps for post- seed sized firms Pittsburgh still isn’t “known” for entrepreneurship CONCERNS RECOMMENDATION Create a Pittsburgh Initiative for Growth Stage Entrepreneurs Supportive Actions: Assist in launching venture development corporations Support hiring, management, and customer acquisition Create a connected support system from early to growth-stage companies
- 60. INNOVATION ECOSYSTEM Too little growth capital Institutional gaps for post- seed sized firms Pittsburgh still isn’t “known” for entrepreneurship CONCERNS BEST PRACTICES Accelerator Corporation, Celdara Medical, Virtual Incubator Company
- 61. WORKFORCE DEVELOPMENT Disconnected workers not involved in the tech economy Lack of mid-career workers Weak retention of college-age students in high demand fields CONCERNS CURRENT EFFORTS
- 62. WORKFORCE DEVELOPMENT Disconnected workers not involved in the tech economy Lack of mid-career workers Weak retention of college-age students in high demand fields CONCERNS RECOMMENDATION Create a Pittsburgh Talent Alliance Supportive Actions: Coordinate hiring practices and requirements across occupations Develop career-oriented pipeline of talent Collaborate with higher education to address talent shortages Create a comprehensive branding and attraction strategy for mid-career workers
- 63. WORKFORCE DEVELOPMENT Disconnected workers not involved in the tech economy Lack of mid-career workers Weak retention of college-age students in high demand fields CONCERNS BEST PRACTICES West Philadelphia Skills Initiative
- 64. PLACEMAKING Disconnection between downtown and Oakland Nine-to-five culture downtown Weak connection between nodes of innovation in different corridors Limited flex space for growing firms CONCERNS CURRENT EFFORTS
- 65. PLACEMAKING CONCERNS RECOMMENDATIONS Establish a Pittsburgh Innovation Neighborhoods Initiative Supportive Actions: Build and fund greater connectivity between distributed innovation anchors to each other and neighborhoods Connect the “ecoinnovation district” with adjacent neighborhoods Coordinate with the BIDs to address workforce and entrepreneurship issues Map and value physical and innovation assets Disconnection between downtown and Oakland Nine-to-five culture downtown Weak connection between nodes of innovation in different corridors Limited flex space for growing firms
- 66. PLACEMAKING CONCERNS BEST PRACTICES Disconnection between downtown and Oakland Nine-to-five culture downtown Weak connection between nodes of innovation in different corridors Limited flex space for growing firms
- 67. PROJECT TIMELINE Phase IV: Strategy Development and Recommendations Phase V: Implementation and Outreach Q4 2016 - Q1 2017 Q1 2017 Address feedback add needed recommendations and develop out recommendation memos to share with stakeholders (Early December) Address second round of feedback and develop implementation strategies around narrow suite of priorities (Mid January) Hold stakeholder meeting to review final findings and recommendations (2017 Q1) Release final product with stakeholder group (2017 Q1)