Innovation Way: A Commitment to Compete Presented to: Orange County Board of County Commissioners March 29, 2011

Innovation Way: A Commitment to Compete

Presented to: Orange

CountyBoard of County

Commissioners

March 29, 2011


Presented by:

Jim Spaeth, President of

Remora Partners

Observations1.Educated people generate community wealth.

1. Educated people generate community wealth.

“Smart, entrepreneurial people are the ultimate source of a city’s economic power.” - Dr. Edward Glaeser, Director of the Taubman Center for State and Local Government, Harvard University, and author of The Triumph of the City (2011)

“Smart people of the highly educated sort that economists refer to as ‘human capital’ are key engines of economic growth and development.” - Dr. Richard Florida, Director of the Martin Prosperity Institute, University of Toronto, and author of The Great Reset, 12/22/10

- Source: American Community Survey, Census Bureau, ESRI (2010).

Education levels determine any community’s wealth.

Orlando (70th)


Education levels determine any community’s wealth.

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

High SchoolDropout

High SchoolGraduate

SomeCollege

BachelorsDegree

MastersDegree

ProfessionalDegree

DoctoralDegree

Source: Bureau of Labor Statistics, May 2010

Median Annual Earnings – 2009

Educational attainment determines personal income level.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

HighSchool

Dropout

HighSchool

Graduate

SomeCollege

Bachelorsor Higher

Source: Bureau of Labor Statistics, March 2011

Unemployment Rates – February 2011

Blended rate of 8.9%

Educational attainment determines employment status.


2.Educated people are leaving Orlando.

2. Educated people are leaving Orlando.

Net gain of 36,411 in working age population in Orlando MSA masks loss of 11,241 workers with degrees

- Source: American Community Survey, Census Bureau (2009).

Net gain of 100,838 in working age population in Austin MSA contains gain of 45,968 workers with degrees.


Educated people are arriving in Austin.


Orlando is one of only 34 cities with over 30,000 new workers from

2007-09.


Orlando is the only one of those cities that lost people with

college degrees.


30 cities attracted a workforce consisting of at least 30% with

college degrees.


From 2000-09, Orlando ranked next to last in the % of new workforce

with degrees.


Subtracting 2007-09, Orlando still ranked below average.



3.Therefore, Orlando is losing community wealth.


Due to its loss of educated people, Orlando now has less community

wealth.


Losing educated population means losing more community wealth.


Orlando’s competitors for life science

companies are all gaining educated people.

The only way to compete with those cities is to attract educated

people.


Attracting educated people will increase community wealth.


Attracting educated people will increase community wealth.


Increased community wealth creates options for investment – in people and places.



3.Orlando is losing community wealth.

4.The Innovation Zone attracts educated people.

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The Innovation Zone occupies portions of eastern Orange and Seminole counties.

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The Innovation Zone contains an impressive

collection of innovation economy assets.

Concentration of graduate degrees in central Florida

Concentration of bachelors degrees in central Florida

The Innovation Zone houses the most educated people

in central Florida.


The Innovation Zone houses the most educated people

in central Florida.


Concentration of technology workers in central Florida

The Innovation Zone houses the most innovative people

in central Florida.

Concentration of computer workers in central Florida


in central Florida.

Concentration of life and social science workers in central Florida


in central Florida.

Concentration of education workers in central Florida


in central Florida.

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Modeling & Simulation: 16,000 jobs

Digital Media: 30,000 jobs

Life Sciences:

16,200 jobs

Optics & Photonics: 15,000

jobs

Space?Cleantech

?

417

The Innovation Zone links assets, people and jobs together in innovative

industries.

LocationTTM Patents

as of 11/16/10

TTM Patents as

% of All

Siemens Energy Innovation Zone

73 13.3%

University of Central Florida

Innovation Zone

63 11.5%

Harris Melbourne 55 10.0%

Lockheed Martin Innovation Zone

23 4.2%

MeshNetworks Maitland 18 3.3%

ParkerVision Lake Mary 15 2.7%

Intersil Palm Bay 14 2.6%

General Electric Melbourne 13 2.4%

ALL 549 100.0%Source: Orlando Sentinel / Remora Partners

Those innovative industries create innovative ideas.

Innovation Zone

Balance of Orlando

MSA

Total Orlando

MSA

Population 451,814 1,679,012 2,130,826

Median Age 33.8 37.8 37.1

Diversity Index 68.7 67.9 68.1

White Collar Jobs 65.7% 60.9% 61.7%

Median Household Income

$61,111 $51,803 $54,034

Associate Degree or Higher

44.8% 36.2% 37.8%

Bachelor Degree or Higher

33.7% 26.6% 27.8%

Graduate Degree or Higher

10.6% 8.5% 8.9%Source: ESRI (2010).

The Innovation Zone contains more than 450,000 educated,

young, innovative people.

Innovation Zone Austin TX

Population 451,814 1,908,617

Median Age 33.8 33.2

Diversity Index 68.7 71.4

White Collar Jobs 65.7% 66.3%

Median Household Income

$61,111 $62,732

Associate Degree or Higher

44.8% 43.9%

Bachelor Degree or Higher

33.7% 37.3%

Graduate Degree or Higher

10.6% 12.9%Source: ESRI (2010).

The Innovation Zone competes

with Austin - not with

the rest of Orlando.

Source: ESRI (2010).





Population 451,814 1,908,617




Median Household Income $61,111 $62,732

Associate Degree or Higher 44.8% 43.9%

Bachelor Degree or Higher 33.7% 37.3%

Graduate Degree or Higher 10.6% 12.9%

Source: ESRI (2010).





Population 451,814 1,908,617




Median Household Income $61,111 $62,732

Associate Degree or Higher 44.8% 43.9%

Bachelor Degree or Higher 33.7% 37.3%

Graduate Degree or Higher 10.6% 12.9%

Competing with Austin means increasing the

population in the Innovation Zone.



3.Orlando is losing community wealth.

4.The Innovation Zone attracts educated people.

5.Innovation Way sits in the middle of the Innovation Zone.

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Innovation Way sits in the middle of the Innovation Zone.

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INNOVATIOINNOVATION WAYN WAY


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INNOVATIOINNOVATION WAYN WAY



Concentration of bachelors degrees in central Florida

Innovation Way is the most logical place to house

educated people.



educated people.

Concentration of life and social science workers in central Florida


educated people.

Concentration of education workers in central Florida


educated people.

Closing Thoughts•Educated people are critical to economic success – and Orange County is losing the competition for them.


•The Innovation Zone must play a leading role in a strategy to attract educated people.


•The Innovation Zone must play a leading role in a strategy to attract educated people. •Innovation Way is the centerpiece of a commitment to compete in the innovation economy.

For more information:

www.remorapartners.com


Documents

Innovation Way: A Commitment to Compete Presented to: Orange County Board of County Commissioners March 29, 2011