Building on Innovation:Competing in the 21st Century

Sweeping Away the Old Rules

• Globalization

• Technology

• Demographics

Infrastructure: Ports

Employment Changes 1990 -2011

Source: Bureau of Labor Statistics, Occupational Employment Statistics (OES);

Manufacturing Professional and Business Services Education and Health Services

U.S. Metro 1990 2010 % Change 1990 2010 % Change 1990 2010 % Change

RESEARCH TRI. 76.9 62.1 -19% 62.4 121.4 95% 51.6 118.5 130%

SAN DIEGO 123.4 90.7 -26% 124.1 198.8 60% 84.1 147.4 75%

PHILADELPHIA 246.9 130.1 -47% 213.6 286 34% 278.3 434.5 56%

WASHINGTON 50.8 35.2 -31% 289.8 557.8 92% 152.7 280.6 84%

BALTIMORE 128.5 59.5 -54% 123.1 191.4 55% 145.8 244.6 68%

SAN FRAN 170.5 113.4 -33% 275.7 339.8 23% 173.7 235.5 36%

PITTSBURGH 130.6 85.5 -35% 126.6 155.6 23% 160.2 239.8 50%

NEW YORK 867.0 367.6 -58% 957.4 1529.9 60% 1008.1 1257.4 25%

DENVER 84.8 59 -30% 129.5 202.6 56% 72 143.9 100%

NEW ORLEANS 46.9 31.2 -33% 52.6 68.6 30% 58.7 76.8 31%

USA 17695 11743 -34% 10848 16991 57% 10984 19838 81%

Education and Health Services:Rebuilding after Katrina

Source: Bureau of Labor Statistics, Occupational Employment Statistics (OES);

All Employees, In Thousands

• Children of the 60s, have redefined every age they entered

• When will they retire? For most, not for years

• Seniors from 65-75 will be the fastest growing group this decade

• Will grow from 28 to 42 million – a 50% growth by 2020.

The Trend Setters

• Late teens to early 30s - 83 million

• The largest generation in US history

• At the prime household formation age

Gen Y

Building a 21st Century City

• Well Managed• Vibrant• Educated• “Raw Materials”• Entrepreneurial• Capital availability

Denver: Bond Issue

• In 2004, Fastrak Referendum • $2 Billion Bond Approval• 119 miles of light rail• 7 Counties & 32 Municipalities

Vibrant: Parks, Culture & Design

Millennium Park, Chicago

Source: The College Advantage, Georgetown University Center on Education and the Workforce

Weathering the Economic Storm

Education: Changes in Educational Attainment, 1990-

2010

Source: American Community Survey, U.S. Census Bureau

% HS Grad

% Bachelors

% Grad Degree

U.S. Metro 1990201

0 1990201

0 1990201

0

Research Triangle 82% 88% 20% 26% 12% 18%Philadelphia 76% 87% 14% 19% 8% 13%San Diego 82% 85% 16% 22% 9% 13%Boston 81% 91% 17% 24% 11% 18%Seattle 88% 91% 21% 24% 9% 13%New York 75% 84% 15% 21% 11% 14%Baltimore 75% 88% 14% 20% 9% 15%San Francisco 82% 87% 22% 27% 13% 17%Pittsburgh 77% 91% 12% 17% 7% 11%Denver 86% 89% 20% 25% 9% 13%New Orleans 78% 87% 14% 16% 8% 9%U.S. Total 75% 85% 13% 18% 7% 10%

Singapore and Jamaica, 1960-2011

Per Capita incomeSingapore Jamaica

1960 $ 5,100 $5,200 2011 $ 43,000 $8,000

Raw Materials

TOTAL 2010 U.S. R&D INVESTMENT: $395,800,000,000

Source: Battelle, R&D Magazine

Raw Materials Annual R&D Spending by Country

Source: Battelle, R&D Magazine, OECD, IMF, CIA

Raw Materials

• Scripps Research Institute (TSRI) biomedical research facility, Florida: $310M Public Funds

• Louisiana State University Medical Center and Veterans Administration complex, New Orleans: $2B in Federal and State Funds

• Cleveland Clinic and the Lou Ruvo Brain Center, Las Vegas: $100M part of a larger development plan known as Symphony Park--a $2.8B investment.

High-tech industry is a bright spot in an otherwise gray economic picture

High-tech jobs have grown nearly four times faster than overall economy during the past 18 months.

Entrepreneurial:Research Triangle

It is now the largest high-tech research park in North America, boasting 20 million sq. ft. of developed space, and home to 157 companies, employing 39,000 people. It is a center of innovation.

UC, San DiegoTorrey Pines Mesa

Johns HopkinsForest City Science + Technology Park

Central Florida: “Medical City”• Sanford-Burnham Research Institute biomedical

research facility, Florida: $310M Public Funds• Since 2006, 5,000 jobs created• University of Florida's Research and Academic

Center• Nemours Children's Hospital• Orlando Veteran's Affairs Medical Center • UCF College of Medicine

Pittsburgh

The Collaborative Innovation Center at Carnegie Mellon

JOBS To be Created: 489

NEW PROPERTY TAXESCollected During TIF: $239,000Collected After Expiration: $598,000

SPURRED INVESTMENT$55 Million

State of the Art facility adjacent to Carnegie Mellon University that will:

◦ Attract Private technology firms to expand research and education collaborations

◦ Accelerate development of new technologies

◦ Support growth of region's technology industry base

From Vacant Nabisco Building to Google Offices

Ben Franklin Partnership• At 25, Ben Franklin Technology Partners is one of the

nation’s longest-running technology-based economic development programs.

• BFTP has provided both early-stage and established companies with funding, business and technical expertise and access to a network of innovative, expert resources.

• Goal: To accelerate technology development and commercialization in the state of Pennsylvania, and to create high-paying, sustainable jobs for Pennsylvanians.

• Serve as catalysts for economic growth.• Launched with high hopes in 1983, BFTP has a 3.5-to-1

return on investment that the organization has yielded for every state dollar invested.

Venture Capital Availability:International

Source: Dow Jones VentureSource, 2008; PriceWaterhouseCoopers, National Venture Capital Association

Capital Availability:Regional

Source: Dow Jones VentureSource, 2008; PriceWaterhouseCoopers, National Venture Capital Association

Region By Millions % of TotalUSA $ 17,222 100%Silicon Valley $ 6,990 40%New England $ 2,161 12%NY Metro $ 1,413 8%Southeast $ 986 6%LA/Orange County $ 943 5%San Diego $ 903 5%Midwest $ 740 4%Northwest $ 705 4%Texas $ 645 4%Dc/Metroplex $ 546 3%Philadelphia Metro $ 424 2%Other US $ 1,235 7%

Venture Capital & Universities

TOTAL UNIVERSITY R&D:• Louisiana State University Health Sciences Center:

$59,473,000• Tulane: $153,242,000

Start-Ups

Venture CapitalInvestment

($M)2000 0 $ - 2001 3 $ - 2002 0 $ - 2003 1 $ 0.5 2004 0 $ - 2005 0 $ - 2006 2 $ 5.0 2007 3 $ 1.0 2008 5 $ 8.2 2009 1 $ 17.0 2010 1 $ -

1-2 December 2009

Principles of Success

1. Leadership

2. Strategy

3. Institutional Capacity

Hong Kong

4. Financing Infrastructure

5. Education

6. Design Excellence

Highline Park, New York City

Where Will the New Roads Lead…