Overview • Explore economic (workforce and industry) data through web-based tools • Conduct a preliminary analysis of clusters • Examine strategies for building stronger regional economies
What Are the Keys toEconomic Growth? • People • Place • Businesses • Innovation • Clusters or branding
Location – Cost of Living Composite Cost of Living (Scaled)2nd Quarter 2010 Source: Missouri Economic Research and Information Center
Location – Natural Amenities Source: Economic Research Service, USDA
Location – Basic Broadband Adoption, 2009 Source: Federal Communications Commission
Place: Industrial Indicators • Current leading employers • New and expanding companies and industries • Research facilities, R & D • Available land and buildings • Existing infrastructure • Access to transportation networks • Tax structure
Place: People & Quality of Life Indicators • Population and labor force • Education • Health care • Recreational opportunities • Shopping • Crime, weather, etc.
Your Labor Force Your People What else defines your labor force?
Skills and Occupations: http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml More Data: http://www.bls.gov/data/ http://www.bea.gov/itable/ http://www.onetonline.org/find/industry?i=11&g=Go Regional Workforce
Workforce Influences • Is your region retaining the skills it creates? • What type of skills does your region attract? • Does your region attract retirees?
CWAM’s Largest Industry by Employment (BEA) • Farming • Retail Trade • Local Government
Regional Industry • BEA • http://www.bea.gov/iTable/index_regional.cfm • Census • http://factfinder2.census.gov/ • http://www.census.gov/econ/cbp/drg • http://www.census.gov/econ/nonemployer/ • http://www.census.gov/econ/susb/ • Ag • http://www.agcensus.usda.gov/index.php • http://www.nass.usda.gov/Statistics_by_State/Texas/index.asp
Regional Industry • The Regional Economic Impact Simulator (Sandy Dell’erba, University of Arizona) • http://webgis.arizona.edu/reis/
CWAM’s Largest Industry by Employment (BEA) • Farming - 11.7% • Retail Trade – 12.0% • Local Government - 12.1% 2009 data from BEA Table CA25N.
Identifying Entrepreneurs People with underutilized talent Social Entrepreneurs Small businesses Entrepreneurship Unemployed High growth businesses Youth Innovators Self- Employed
Who Is an Innovator/Entrepreneur? Entrepreneur:one whose goal is to create or capitalize on new economic opportunities through innovation.
Assessing Entrepreneurship Capacity Community surveys Existing programs (e.g., BR&E) Community readiness Leadership Networks One-on-one interviews with local entrepreneurs Assess ambitions and needs Identify local/regional constraints
Assessing Entrepreneurship Capacity Inventory of Entrepreneurship: BEA-REIS data Census (non-employer statistics) County Business Patterns Panel Study on Entrepreneurial Dynamics Business owners survey Capacity for New Entrepreneurs: Educational attainment Immigration and diversity Financial resources Business resources
Business Assistance in the Region What type of programs, assistance or incentives are offered to: • Support expanding businesses? • Recruit new businesses? • Foster the growth of entrepreneurs or small, locally-owned businesses?
Fourth Key to Economic Growth: Innovation "Innovation . . . the successful introduction of a new thing or method . . . Innovation is the embodiment, combination or synthesis of knowledge in original, relevant, valued new products, processes or services.” Luecke and Katz, 2003
How Nurturing is Your Region? Three Phases of Innovation Conception Implementation Marketing Business Process • Idea Generation • Project Planning • Development • Prototype Dev • Testing • Production • Launch Regional Capacity • Education • Technical • Assistance • R&D centers • Universities • Industrial Parks • Capital Availability • Community Support Source: Tawari, Buse and Herstatt, 2007
Your Region’s Capacity for Innovation • Research & Development (R&D) assets • Regional universities or community colleges • Other resources that foster innovation
The Creative Class • Should be attracted and retained • Develop, design or create new applications, ideas, relationships, systems or products • Considered “footloose” • Attracted to amenities Florida, 2002
Why the Creative Class? • The density of creative class has a positive effect on job growth both in the ‘creative’ and ‘non-creative’ sectors. • Creative capital and entrepreneurship work in synergy with one another to increase employment opportunities in both sectors. Based on the Work of Richard Florida
Where is the Creative Class in the US? How "creatively-driven" is your economy compared to the national average? Dark-blue is the least creative and dark-red the most creative areas.
Fifth Key to Economic Growth:Clusters or Branding • Cluster –making the whole greater than the sum of the parts • Branding–consolidating the essential characteristics of the individual identity into a brand core
How many competitors? What is the threat of new entry? Local customer base? What do people want? What value chains or clusters exist in our region? How does place influence the quantity, quality and cost of input factors? Based on work by Michael Porter, Harvard Business School
Industry Cluster Analysis • Views firms and industries, as interdependent, not isolated • Identifies value chains • Discovers collections of businesses producing similar outputs
What Can Regional Cluster Analysis Tell Us? Where we have . . . • Gaps • Growing industries/clusters • Declining industries/clusters
What Can Regional Cluster Analysis Tell Us? Just for example… • http://clustermapping.us/index.html
Data Needs Industry sector data: number of establishments (over time), number of employees, payroll, earnings • http://www.census.gov/econ/susb/ • http://www.census.gov/econ/cbp/drg • http://www.census.gov/econ/nonemployer/ • http://factfinder2.census.gov/ • http://www.bea.gov/iTable/index_regional.cfm • EMSI
Data Needs Potential linkages to determine value chains • IMPLAN • REMI • Input-Output or Computable General Equilibrium
You Think There Is a Regional Cluster, So Now What? • Map the cluster • Determine if growing or declining • Evaluate regional capacity • Identify potential leakages & opportunities • Determine potential strengthening strategies
Value Chain Cluster Example Wine Winemaking equipment Grape stock State government agencies Fertilizers, Pesticides, Herbicides Barrels Bottles Growers/ Vineyards Wineries/ Processing facilities Caps & Corks Grape harvesting equipment Labels Public Relations & Advertising Irrigation technology Educational, Research & Trade organizations Specialized publications California Agricultural Cluster Food Cluster Tourism Cluster Source: California Department of Food and Agriculture
Cluster Illustration: KY Bubble Chart Source: EMSI.com
Identify Potential Leakages and Business Opportunities For the cluster, determine the: • Current regional capacity • Industry potential • Future growth of industry • Types of skills needed
Identify Potential Leakages and Opportunities for New Businesses Grapes Labels Advertising Research Wine Fertilizer I Zero inputs available regionally Irrigation System Small % of inputs available regionally Large % of inputs available regionally 100% of inputs available regionally
Cluster Choices • Advanced Materials • Agribusiness, Food Processing & Technology • Apparel & Textiles • Arts, Entertainment, Recreation & Visitor Industries • Biomedical/Biotechnical (Life Sciences) • Business & Financial Services • Chemicals & Chemical Based Products • Communications • Computer & Electronic Product Manufacturing • Computers & Software • Construction Materials • Defense & Security • Education & Knowledge Creation • Electrical Equipment, Appliance & Component Manufacturing • Energy • Energy (Fossil & Renewable) • Fabricated Metal Product Manufacturing • Food Products & Services • Forest & Wood Products • Glass & Ceramics • Health • Information • Information Technology & Telecommunications • Machinery Manufacturing • Manufacturing Super Cluster (6 sub-clusters) • Metals & Machining • Mining • Primary Metal Manufacturing • Printing & Publishing • Transportation & Logistics • Transportation Equipment Manufacturing
Example: Health Cluster Health Cluster