The Innovation Economy: New Opportunities and Risks in the Evolving Business Cycle Dr. Bill Conerly for Regional Economic Forecast & Innovation Expo December.

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The Innovation Economy: New Opportunities and Risks in the Evolving Business Cycle Dr. Bill Conerly for Regional Economic Forecast & Innovation Expo December 11, 2014

The Global/National Economy The Five Counties Economics of Innovation

U.S. Economy: Major Sectors, Sector Outlook Consumer spendingSpending grows w/ income Housing constructionStronger in Non-res constructionLight growth Bus. Capital SpendingStrong ExportsModerate growth Federal Gov’tCuts in goods, services (but entitlements grow) State & Local Gov’tSlow growth

Commercial Bank Assets $ billions Cash4821,632 Investments1,5912,722 Loans6,5377,120

Inflation Recession

The Global/National Economy The Five Counties Economics of Innovation

Rural & Urban Issues Fewer location-specific jobs Farming, forestry, fishing, mining Most folks like cities Much work can be done anywhere

The Global/National Economy The Five Counties Economics of Innovation

Offshoring Labor cheaper, but rising Cost of quality higher Regulation more lenient Overseas markets growing

Onshoring or Reshoring Labor cheaper, but rising Cost of quality higher Regulation more lenient Overseas markets growing

Onshoring or Reshoring Labor cheaper, but rising Cost of quality higher Regulation more lenient Overseas markets growing More flexible: Quantity & specs Quality cheaper to attain Great for low labor content

Innovation: Customization

Customization: Manufacturing

Customization: Information

Customization: Medicine

The Nutshell Most likely Stronger growth in Higher interest rates Stable inflation Rural communities level Urban areas expanding Opportunities through innovation Customization

Questions? ConerlyConsulting.com one “n”