Inclusive Regional Economic Growth Framing Paper

Ford Foundation, New YorkJune 9, 2014

Convening on Inclusive Regional Economic Growth

Meeting Goals Explore the Next Economy implications for the

practice of inclusive regional economic growth Identify product opportunities and capacity needs Develop next steps toward field building

Agenda

Opening11:30

Session 1: Next Economy Implications for Inclusive Regional Economic Growth

12:00

Session 2: New Products, Capacities & Institutions1:15

Session 3: Building the Field3:15

Next Steps & Conclusion4:45

Ground Rules You’re all terrific

and we all know it! Brainstorming

“no bad ideas,” leave the details for later Today’s focus on local practice

not theory or policy “Focus on the game, not the player or the team”

no personal or organizational agendas Keep the conversation moving

avoid “stacking” of points

Session INext Economy Implications for Inclusive Regional Economic Growth

I

New Products, Capacities& Institutions

II

Building the FieldIII

1.Framing

2.Observations:Rob Simpson, CenterState CEO

3.Group Discussion

The Next Economy is HERE!









New Dynamics Produce New Challengesand Opportunities

Leverage Points

for Sustainable and Inclusive

Prosperity

DeployHuman CapitalAligned with

Job Pools

Increase Spatial

Efficiency

Create EffectivePublic & Civic

Culture & Institutions

EnhanceRegional

Concentrations/Clusters

DevelopInnovation-

EnablingInfrastructure


Increase Spatial

Efficiency

Challenge:Jobs-housing mismatch

Opportunity:“Economic place making”


EnhanceRegional

Concentrations/Clusters

Challenge:Understanding and supporting emerging clusters, inclusive clusters

Opportunity:More integrated, collaborative growth strategies


DeployHuman CapitalAligned with

Job PoolsChallenge:Misalignment of labor supply, demand, training programs

Opportunity:More segmented training and career ladders


DevelopInnovation-

EnablingInfrastructure

Challenge:Accelerating but fragmented activity, “cultural” obstacles

Opportunity:New networks, specialized finance


Create EffectivePublic & Civic

Culture & Institutions

Challenge:Fragmentation, bureaucracy, exclusion…

Opportunity:New cross sector institutions with integrated strategies

Rob SimpsonCenterState CEO

Observations

ObservationsPrinciples of IREG in Next Economy: Primacy of region as the unit of economic activity Demand for tailored, place-specific approaches Integrated economic and spatial planning Integrated teams that broadly engage social and

economic levers Re-articulation of “economic growth” to address

the challenge and benefits of inclusion

ObservationsNew Challenges and Opportunities for Practice: New clusters and markets: Data to Decisions

Innovation Alliance Targeted entrepreneurship support: Focus on

specialized finance; new firm sourcing New governance: Government Commission Need to go global: Export Initiative

Discussion What are the practical implications of the

changing dynamics of the Next Economy? What are the new problems we’re solving for? What are the new challenges and opportunities for

practice?

Session IINext Economy Implications for Inclusive Regional Economic Growth

I


II


1.Framing2.Observations:

Toni Griffin, J. Max Bond Center

3.Observations:Ray Leach, JumpStart

4.Breakout Discussion5.Reporting Session

Practice in the Next EconomyAs practitioners, we’ve already begun responding: Metropolitan Business Planning Redeployment and Innovation for Legacy Industries

(PRISM) Demand-driven workforce development

(Skills for Chicagolands Future?) Innovation Districts Cluster technology/R&D centers Neighborhood Region aligned development initiatives Cross-sector and subject networks and civic organizations

Practice in the Next EconomyDemand for new innovative tools continues to grow: Blue Collar Innovation Districts Specialized/”Merchant” Banks/Finance Bringing “Big Data” to Neighborhood

Development “Inclusive Clusters” New Institutions for the Next Economy And lots more ….

Toni GriffinJ. Max Bond Center

Observations

ObservationsNew Challenges and Opportunities: Urban transformation toward dense, mixed land use More varied mixes of uses possible Changing infrastructure needs (Energy, Broadband,

Technology Enabled Transportation) Misalignment between land use and economic

planning Exacerbated impacts of jobs-housing mismatch and

segregation/isolation

Changes in the Next Economy: Urban Growth Form

Industrial Economy

Knowledge Economy

Large factories Smaller space, less physical capital

Sectoral specializations Functional specializations

Sprawl Densification

Continuous rise in VMT Decrease and stabilization of VMT

Highest property values = single family houses

Highest property values = condos, apartments

Majority of households married with children

Majority of households single, no children

0.0%4.0%8.0%

12.0%16.0%

Population Growth in Large Metros, 2000-

2010 Downtown PopulationMetro Popu-lation

1970

1975

1980

1985

1990

1995

2000

2005

2010

02,000,0004,000,000

Annual Vehicle Miles Traveled

ObservationsThese new challenges and opportunities are leading to emerging approaches, tools and products: “Legacy city” regenerative design Socially just urban design Inclusive architecture, housing and growth

(community, household, and individual) Staged, place-specific growth design

Different Types of Economic Activity Benefitfrom Different Environments

Detroit Future City

Source: Detroit Future City Strategic Framework, Land Use Section, http://detroitfuturecity.com/wp-content/uploads/2014/02/DFC_LandUse_2ndEd.pdf

ObservationsRay LeachJumpStart

ObservationsNext Economy Challenges and Opportunities: No Turning Back - Small Business is our foreseeable future Understanding, connecting, assisting and investing in existing small

businesses and startup entrepreneurs is required in order to move communities forward

40% of all U.S. workers will be freelancing by 2020 – individuals must be able to quickly develop a broad range of entrepreneurial skills including how to work in variable and highly interactive groups for short periods of time

Organizations must be held accountable for deliveringinclusive goals and connect this work to complimentary parts of the ecosystem (workforce, infrastructure)

ObservationsWhere the practice is headed to address these challenges & opportunities – new approaches and products: Bringing “hard” and “soft” approaches together simultaneously will generate the greatest progress

Hard: Assistance delivered by highly experienced (and MBA-types) business leaders on a full-time and volunteer basis, creating measureable company-specific goals and outcomes and holding firm accountable for performance. Ability to access capital at appropriate levels and efficiency

Soft: Delivering assistance in an community-informed and connected approach with emotional Intelligence

Taking a highly active network or ecosystem approach to gain efficiencies, better define roles and accountabilities while intentionally engaging the entire community to build from both top down and bottom up simultaneously

The Future Models Being Demonstrated Now: A robust combination of the due diligence and technical assistance skills and disciplines of venture capital and private equity industries while leveraging established, evolving and new forms of financial capital to enable accelerated growth in firms that have the greatest potential to increase economic wealth and reduce inequities

Discussion How can we effectively bring the appropriately-

scaled level of hard and soft skills to the field quickly?

What new tools and products are emerging? Most promising?

What new institutions are emerging or needed to deliver them? (Development institutions, not field building ones – that’s next session.)

What’s needed to continually identify, develop, test, improve, disseminate and scale new tools and products?

Session IIINext Economy Implications for Inclusive Regional Economic Growth

I


II


1.Framing2.Observations:

Pete Carlson,Regional Growth Strategies

3.Discussion

Why talk about field-building? New Economy is generating new practice Practical innovation widespread, but not yet systematic

or institutionalized Practitioners want: “to connect the dots;” peer support;

R&D; data; … Others want to join the practice – need efficient way to

make tacit learnings explicit and share them (trainings, boot camps, peer review, …)

If we want to accomplish Inclusive Regional Economic Growth – need to build community and field of practice!

Pete CarlsonRegional Growth Strategies

Observations

Discussion Considering current state of field, what are next

steps and stages for current practitioners? Most important next field building tools? Next steps on field building civics, capacities and

institutions? How, when engage others? Which ones?

Obstacles?

Agenda

Opening11:30

Session 1: Next Economy Implications for Inclusive Regional Economic Growth

12:00

Session 2: New Products, Capacities & Institutions1:15

Session 3: Building the Field3:15

Next Steps & Conclusion4:45

Ford Foundation, New YorkJune 9, 2014

Convening on Inclusive Regional Economic Growth

THANK YOU!

Economy & Finance

Inclusive Regional Economic Growth Framing Paper