Success Strategies for the Knowledge Economy Preparing for a bright future. Ohio...

OHIO’S RICH HERITAGE Advancing America’s Frontier 19th century economy  Agricultural abundance  The nation’s transportation crossroads 20th century economy  Leader in manufacturing  Influx of workers for jobs  America’s center of innovation Ohio: A heritage of leadership …

Ohio’s Next Frontier “We are the pioneers of Ohio’s third frontier – a frontier of exploration and discovery where knowledge is king.” Governor Bob Taft State of the State Address February 2002 Ohio: A heritage of leadership …

Preparing for the Future  What are Ohio’s economic challenges today? Ohio: Preparing for the future  How is the Knowledge Economy different?  What will it take to lead in the 21 st century’s Knowledge Economy?

What are Ohio’s economic challenges today? Ohio: Preparing for the future

Percent of national average Sources: U.S. Census Bureau, 2000; Office of Budget & Management, 2000 Ohio Per Capita Income 80% 90% 100% 110% 120% U.S. Average TRAILING THE NATIONAL AVERAGE Ohio’s Income Growth Ohio: Preparing for the future

Source: U.S. Census Bureau, 2000 CONFIRMING THE CONNECTION Income and Education Percent of national average 80% 90% 100% 110% 120% U.S. Average Ohio Per Capita Income Ohio: Preparing for the future Compared to the national average, per capita income has paralleled the percent of population with a bachelor’s degree. Bachelor’s Degree Attainment Associate Degree Attainment

In today’s world, those with a higher education will benefit most. Source: Postsecondary Education OPPORTUNITY HIGHER LEARNING Equals Higher Earning UNEMPLOYMENT RATE IN 2001 MEDIAN EARNINGS IN 2000 PROFESSIONAL DEGREE DOCTORATE MASTER’S DEGREE BACHELOR’S DEGREE ASSOCIATE DEGREE SOME COLLEGE NO DEGREE HIGH SCHOOL GRADUATE LESS THAN HIGH SCHOOL Ohio: Preparing for the future

EDUCATIONAL ATTAINMENT Where Ohio Stands Today Graduate High School Continue to College Source: U.S. Census Bureau 2000, Postsecondary Education Opportunity DEFICITS: Some College: 361,954 Bachelor’s Degree: 245,053 Ohio: Preparing for the future

How is the Knowledge Economy different? Ohio: Preparing for the future

IT’S A DIFFERENT ECONOMIC GAME... The Knowledge Economy #1: SOURCES OF ECONOMIC SUCCESS Ohio: Preparing for the future TRADITIONAL ECONOMY Land, energy & natural resources Physical location Fixed capital & infrastructure KNOWLEDGE ECONOMY Skilled, knowledge workers Global communication & transportation Research & knowledge generation

IT’S A DIFFERENT ECONOMIC GAME... The Knowledge Economy #2: ORGANIZATIONAL FACTORS TRADITIONAL ECONOMY Large & hierarchical Order valued above all else KNOWLEDGE ECONOMY Entrepreneurship & individual enterprise Rapid change, adaptiveness valued Ohio: Preparing for the future

IT’S A DIFFERENT ECONOMIC GAME... The Knowledge Economy #3: LEARNING AND EARNING Ohio: Preparing for the future TRADITIONAL ECONOMY High school enough for most jobs Lifetime careers Flatter earning profiles KNOWLEDGE ECONOMY Higher & faster changing skills required Learning continuously throughout life Growing income gaps based on skills

What will it take to lead in the Knowledge Economy? Ohio: Preparing for the future

WHAT DOES IT TAKE TO LEAD? #1: Invest in People A. Improve success in primary and secondary education Ohio: Preparing for the future B. Increased aspiration to higher education C. Increased college degree completion. E. Continuous learning. D. Special population needs.

WHAT DOES IT TAKE TO LEAD? #2: Workforce System Alignment Ohio: Preparing for the future A. Job exchange: recruitment and searching C. Employer and employee support services. D. Access to services and information B. Career Information.

Meeting the Challenge Ohio’s success depends upon... Ohio: Preparing for the future Ability to get all stakeholders/funders involved and cooperating. Exploring new ways to provide training and education and align business needs with educational services. Measuring performance. Data analysis.

 AdvanceOhio strategic plan developed and adopted by Governor’s Workforce Policy Board.  Governor’s Interagency Workforce Development Council formed.  Participation in NGA Policy Academy.  Formation of Office of Workforce Development in Department of Development. Ohio Will Be A Pathbreaker Ohio: Preparing for the future

Success Strategies for the Knowledge Economy Preparing for a bright future. Ohio...