1. Collaborative Economics
Presented by
John Melville
Collaborative Economics

2. THERE IS A CHALLENGE FACING AMERICA’S COMMUNITIES
America’s communities are experiencing growing economic pressure from a new wave of globalization
Communities across America have seen large employers move some or all of their operations oversees
Meanwhile, other regions, from Beijing to Bangalore are rapidly increasing their capabilities to perform value-added activities and compete in the global market place.
“The United States now has to compete for every job going forward. That has not been on the table before. It has been assumed we had a lock on white-collar jobs and high-tech jobs. This is no longer the case.”
Craig Barrett, CEO Intel

3. MEETING THE CHALLENGE OF GLOBAL COMPETITION

4. AN INNOVATIVE ECONOMY IS A CATALYST FOR COMPETITIVENESS
An innovative economy is the engine that produces economic opportunity and community revenues that make possible:
Career mobility
Investment in educational systems
Development of community infrastructure and amenities
And other critical assets for regional competitiveness.
It is not possible to sustain regional competitiveness over the long term without an innovative economy (i.e., residents lack economic opportunity, communities lack revenues).
This is the essence of the “Vital Cycle”

5. THE CORNERSTONES OF INNOVATIVE REGIONS

6. CLUSTERS OF OPPORTUNITY

7. BRIDGING ECONOMIC DEVELOPMENT AND WORKFORCE GOALS

8. Targets of Opportunity:
Connecting Regional Workforce and Economic Development

9. Why Clusters of Opportunity?
We noticed disconnects, a mythology, a barrier to workforce and economic goals.
“There are no jobs here.”
But employers desperate for talent…
“The timber and fishing industry are dead (There’s nothing else).”
But we have fast growing entrepreneurial companies …
“Our children are leaving.”
But data contrary, leaving home can be good, come back for Quality of Life…
Common notions used politically to influence decision making with long term implications.
Copy and paste data to table

10. Six Targets of Opportunity
Diversified Health Care
Building and Systems Construction and Maintenance
Specialty Food, Flowers & Beverages
Investment Support Services
Management and Innovation Services
Niche Manufacturing

11. Surprised at What We Found
6 fast growing industries
53% of private sector payroll and almost 40% of jobs
Grew jobs 37%, new firms 23% and wages up to 26% (compared to 4%, 1.5% and 6% in the overall regional economy)
All pay above the median, and fast rising
All with appealing, robust career spans
Some familiar, but grouped in a more powerful way
Some new export opportunities that we hadn’t seen before
Some totally new industries that we hadn’t been paying attention to

12. Steps to Building & Analyzing the Data for the Report and Moving to Action
Build the local team, use guidebook for building clusters
Create the mother of all spreadsheets.
Apply the criteria and group industries.
Refine definitions, look at occupational patterns.
Convene employers for focus groups…ask the about past and future drivers of growth, workforce needs.
Deliver report and launch campaign.

13. Create the Mother of All Spreadsheets EX: Management & Innovation Services

14. Expanding Opportunity Improving Competitiveness
Apply Criteria and Group Industries How Targets of Opportunity were Identified
CRITERIA
INTERPRETATION
Expanding Opportunity
JOB GROWTH
Shows how various industries have weathered market forces and their subsequent employment generation
FIRM GROWTH
Growth in firms can indicate a change in organization of an industry, a surge in local entrepreneurship, or attraction of outside investment to the region
Growing Quality
JOB QUALITY
High average payroll per employee relative to the regional average indicates a sector with relatively high productivity per employee. Additionally, pay is a reflection of job quality and indicates the amount of training and skill required to perform the job
Improving Competitiveness
STRONG AND/OR GROWING REGIONAL SPECIALIZATION
A concentration of greater than 1 indicates that employment in the region is more specialized in the industry compared with U.S. or California. Specialization generally reflects competitiveness and outward orientation.
Career Potential
OCCUPATIONAL DISTRIBUTION AND DYNAMICS
Occupational opportunities spread across higher, mid, and lower-levels, suggesting possible pathways for upward mobility. Occupations that are highly-concentrated and/or fast-growing are of particular interest.
Key Linkages
IMPORTANT RELATIONSHIPS AND COMMON NEEDS
Related to other sectors in important buyer-supplier or complementary partnering relationships. Share a common workforce, markets, or others.

15. 4. Refine Definition Look at Occupational Patterns EX: Niche Manufacturing
20%
50%
30%

16. 5. Convene Employers 6. Deliver Report and Launch Campaign
Employer Focus Groups
6-12 business owners, CEO’s.
Enroll them in the data and what you want from them—what’s driving their growth, their needs and opportunities.
Opportunity for them to identify immediate actions
Deliver Report and Launch Campaign
Present report
Immediately followed by panel of business owners…put faces and stories on the data.
Make the media interview business owners, don’t represent the data all yourself.

17. Significance of What We Found
The data and input…
Debunked myths
Far more compelling than we expected
Foundation for BIG thinking
Sustained structural shift in our economy
Tremendous opportunity
Inspirational…reason to look forward

18. Immediate Impacts of What We Found
Got into action right away on a few projects that came up in focus groups, as the report evolved.
5 new private sector CEO-types stepped forward to be on the WIB the week after report was released.
Moved the WIB beyond WIA-compliance to Engagement.
Compelling platform for ongoing Opportunity Campaign…
Regional collaboration
Stimulating training institutions to change
Engaging and connecting businesses
Developing useful tools
Evolving economic and workforce development thinking

20. SAN DIEGO’S CHALLENGE
San Diego is participating in a new global innovation economy
San Diego’s global reach has grown substantially over the last decade.
Share of global talent pool has increased
Share of global investment capital has increased

21. SAN DIEGO’S GLOBAL COLLABORATION

22. SAN DIEGO’S CHALLENGE
San Diego’s economic drivers are changing with the convergence of key industries and technologies. Traditional cluster definitions are not adequate; new clusters of opportunity better capture what is happening in the region’s economy.
San Diego’s growing participation in the new global innovation economy is expanding economic opportunity for a wide range of San Diegans.
While the region’s leading industries have created many high wage jobs, an average of about 40% of jobs in these sectors are at the mid-wage level

23. CLUSTERS OF OPPORTUNITY AND INNOVATION

24. CLUSTERS OF OPPORTUNITY

26. SAN DIEGO’S CHALLENGE
San Diego’s challenge is to ensure that its economic drivers have the regional and global resources necessary to compete.
Public and private leaders in other regions are working together to make strategic investments, grow their talent pools and extend their global reach
Benefiting from globalization requires hands-on regional leadership.
Global competitiveness requires a proactive regional agenda
The Partnership for the Global Economy is bringing together business leaders to identify priorities and organize for strategic action

27. SAN DIEGO’S PATH FORWARD

28. BOTTOM LINE: WHAT IS REQUIRED?
Shift to an innovation mindset
It is not about high tech or low tech industries
It is about how we do things, not what we make
Everyone can be included if you learn how to play by new rules
Focus on clusters of opportunity to connect economic and workforce development

29. BOTTOM LINE: WHAT IS REQUIRED?
Understand how global connections, regional convergence, and economic opportunity are related and set the stage for a new approach
Align roles and rewards of professional staff to these new realities
Engage employers and build public-private partnerships to pursue action with the urgency and flexibility of a “campaign”

30. For More Information, Contact:
John Melville
Director
Collaborative Economics
785 Castro Street #A
Mountain View, CA 94041