Slide 1

Report
Cities Charting
New Directions:
Metropolitan Business Planning
City Reformers Group Workshop
March 22, 2011
Robert Weissbourd, RW Ventures, LLC
Metropolitan Business Plans:
A New Way of Doing Business
Grounded in Economics and Business:
comprehensive, integrated growth
strategies based on unique regional
strengths
Gets the Job Done: not just a plan;
cross-sector institutional capacity
critical to regional performance
Continuous implementation,
monitoring, adaptation and further
strategy development
Demonstrate better ways to invest in metros to strengthen
national economy; develop new federal policies and programs.
Source: Brookings Institution
Why Metros?
Top 100 Metros Share of U.S. Total
92%
Service Exports
Graduate Degrees
Wind + Solar Energy Employment
Population
79%
Venture Capital Funding
Gross Product
66%
78%
Airline Boardings
76%
U.S. Air Cargo Weight
75%
Patents
73%
75%
94%
Sources: Brookings analysis of US Census Bureau, FAA, BLS, NIH, NSF, and BEA data; Brookings, ExportNation, 2010 (2008 data); Forthcoming research from Brookings and Battelle
Source: Brookings Institution
What is it About Place that Affects
Economic Performance?
“Cities exist to eliminate transport costs for people,
goods and ideas” – Ed Glaeser
• Urbanization and Localization Economies: general and
industry-specific benefits of concentration as workers and firms co-locate; spillovers,
synergies, shared labor and job pools, linkages among firms generate increased
efficiency and productivity through flow of ideas and technologies, enhancements
to human capital, economies of scale, reduced transaction and transport costs.
(Marshall, Krugman)
• New Growth Theory:
location is becoming more important, and with
different benefits, in the knowledge economy, as metros increasingly become
centers of idea creation and transmission (through technology, human capital
externalities, intellectual spillovers). Increasing returns to knowledge and imperfect
competition lead to metro specialization and divergence. (Romer, Lucas)
• Institutional Economics:
growth, and particularly innovation, take
place in the context of an institutional infrastructure – research, professional and
learning networks; universities and civic/business organizations; quasi- and
governmental organizations and regulation – which can hamper or accelerate all of
the other benefits of concentration. (Coase, Atkinson)
The Major Systems that Drive Efficiency and Productivity Operate at a Metro Level
Influencing Metro Economies
Act Comprehensively -- The Whole is Greater than the Sum of the Parts.
Increasing productivity and efficiency requires influencing how the pieces fit
together – the interactions and synergies between economic activities
Customize. Regional Economies are differentiated, complex and dynamic
Develop Institutional Capacity and Intentionality. Growing metro economies
entails continuously integrated, grounded and deliberate activity
Key Question:
What are the leverage points to improve system performance?
Increase
Spatial
Efficiency
Enhance
Regional
Concentrations
Deploy
Human Capital
Aligned with
Job Pools
Leverage Points
Develop
InnovationEnabling
Infrastructure
Create Effective
Public & Civic
Culture &
Institutions
Enhance Regional
Concentrations:
Industries,
Occupations and
Functions
Cluster Map Source: Bo Heiden, Strategic Uses of the Global Patent System
Deploy High Levels
of Human Capital
Aligned
with Job Pools
Develop
InnovationEnabling
Infrastructure
Research
Partners
R&D
Finance
Market
Research
Innovation
Ecosystem
Marketing
Manufacturing
Image based on material from Land O’ Lakes Inc.
Increase Spatial Efficiency
Housing Costs as
Percent of Income
Source: Center for Neighborhood Technology
Housing + Transportation
Costs as Percent of Income
Create Effective Public &
Civic Culture & Institutions
Source: Newsweek, Manyika, Lund and Auguste, “From the Ashes,” 8.16.2010
Governance in
the Next
Economy
Global, Knowledge
Economy
Specialization and
Dynamism
Intentionality
Build on Your Assets
Coordinated, CrossSectoral, Flexible,
Adaptive, Open,
Information-Rich,
Inclusive,
Entrepreneurial
Compete on
Value-Added
(not low-cost)
Why “Metropolitan Business Planning”?
ECONOMIC GROWTH PLANNING
TRADITIONAL BUSINESS PLANNING
Vision for the Regional Economy
Business Mission & Vision
Status of Economy: Assets,
Opportunities, Challenges
Market Analysis
Goal-Setting & Strategy Identification
Analysis of Strategic Alternatives & Risks
Identification of Policies, Programs, Products
& Interventions
Development of Products & Services
Operational Planning for Implementation
Operational & Management Planning
Identification of Funding Needs
and Sources
Forecasting & Financial Planning
Definition of Outcome Measures & Targets
Target-Setting & Performance Tracking
The steps to analyzing and improving a regional economy lend
themselves to the proven discipline of business planning.
Source: Brookings Institution
Business Plan Components
Metro Development Baseline/Overview (MDBO)
Mission/Vision: MSP as a flexible, adaptable, dynamic region home to a business environment in which Fortune 500
companies and entrepreneurs alike can thrive.
↓
Market Analysis: Strong, diverse clusters, but minimal strategic support; highly educated workforce, but flagging talent
attraction; robust university & corporate R&D environment, but limited commercialization; culture of civic engagement,
but fragmented & uncoordinated efforts; ample regional data, but dispersed in multiple locations
↓
Goals: Highly networked cluster firms & institutions; workforce skills matched to emerging, in-demand jobs; enhanced
levels of innovation & entrepreneurship; reduced congestion & spatial mismatch; dynamic public, civic & non-profit
institutions; more & better information for private-sector decision making
↓
Strategies: MSP Regional Cluster Initiative; Regional Economic Development Partnership; Thinc.Green; Corridors of
Opportunity; Entrepreneurship Accelerator.
↓
Detailed Development Initiative (DDI): Entrepreneurship Accelerator
Intervention: Accelerate growth of innovative early- stage businesses & ideas into ventureready companies by providing continuum of resources to entrepreneurs & community
↓
Operational Plan: Mentorship/advice (EIRs); technical support; capital; information-sharing
↓
Financial Sources & Uses (3 yrs): $12-14MM public & philanthropic funds; 14 direct
investments
↓
Metrics: # companies advised; companies’ achievement of business plan milestones;
companies’ ability to attract follow-on investments; EA funds raised, etc.
Metropolitan
Investment
Prospectus
Pilot
Metro
Business
Planning
Regions
Puget Sound
Source: Brookings Institution
Northeast
Ohio
Minneapolis-St. Paul
A New Economic Federalism
HUD
Section 8
Dept. of
Labor
Workforce
Inv. Act
Small
Business
Admin.
Loans
Dept of
Commerce
Int’l. Trade
Admin.
Dept. of
Transpo.
SAFETEA-LU
Programs
Increase
Spatial
Efficiency
Develop
InnovationEnabling
Infrastructure
Affordable
Housing
Enhance
Regional
Concentrations
Small
Create Effective
Deploy Export
Workforce
Public & Civic BusinessHuman Capital
Training
Culture &
Aligned withStrategy
Institutions Assistance Job Pools
Comprehensive Metropolitan Strategy
Upgrading
Roads and
Rail
A New Economic Federalism
Integrated Federal Investment
HUD
Section 8
Dept. of
Labor
Workforce
HUD
Section 8
Inv. Act
Department of
Commerce
International Trade
Small
Administration
Business
Admin.
White
House
Office
of
Urban
Loans
Affairs
Dept of
Commerce
Department of
Transportation
Int’l.
Trade
SAFETEA-LU
Programs
Admin.
 Cross-Agency Regional Teams
Dept. of Labor
Small Business

Pooled
and
Flexible
Funding
Administration Loans
Workforce Inv. Act Increase
Spatial Capacity Building
 Support for Regional
Efficiency
 “New Federalism” Partnership
Develop
InnovationEnabling
Infrastructure
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations
Deploy
Human Capital
Aligned with
Job Pools
Comprehensive Metropolitan Strategy
Dept. of
Transpo.
SAFETEA-LU
Programs
DISCUSSION
Cities Charting
New Directions:
Metropolitan Business Planning
City Reformers Group
Workshop
March 22, 2011
Robert Weissbourd

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