2. Evaluating Tallahassee’s Future in the New Economy Tim Lynch, Ph.D., Director Julie Harrington, Ph.D., Asst. Dir. Center for Economic Forecasting and Analysis Florida State University www.cefa.fsu.edu May 2, 2002

3. What are the attributes of the New Economy? An increased trend towards globalization. Increased levels of business growth, flexibility and competition driven by information technologies (IT). Higher levels of entrepreneurial activity and creativity. Higher levels of productivity and income dispersion and quality of life.

4. What is the New Economy Index? The New Economy Index evaluates and compares the “high tech economic” strength of US Metropolitan Areas (MSA). The 50 largest US MSAs have been evaluated and ranked. Tallahassee and 268 medium and smaller cities have not been evaluated. This study will evaluate Tallahassee and 19 other Florida metro areas with the New Economy Index.

5. Goods Services Capital Productivity Profits Low cost production Strong economy Entrepreneurs Old Economy People

6. Goods Services Capital Higher productivity Higher wages Higher quality of life Higher profits Entrepreneurs More resilient economy Higher efficiency Higher wealth New Economy People

7. WHAT ARE THE ATTRIBUTES OF THE “OLD ECONOMY”?

8. 1.People Measures Per capita income Average earning Unemployment level Training level Labor productivity Old Economy

9. 2.Capital Measures Infrastructure value Investment level Capital Productivity Land value Old Economy

10. 3.Entrepreneurs Measures Number of new companies Investment rate Profit level R&D level Old Economy

11. WHAT ARE THE ATTRIBUTES OF THE “NEW ECONOMY”?

12. 1.People Measures % Of managerial, professional and technical jobs Level of workforce education % Of high-tech jobs # Of degrees granted in science and engineering % Of online adult population New Economy

13. 2.Capital Measures Broadband telecom capacity Computer use in schools Commercial internet domain names Internet backbone New Economy

14. 3.Entrepreneurs Measures % of gazelle jobs % of job churning # of patents $ amount of academic research $ amount of venture capital # of new publicly traded companies New Economy

15. 22% 29% 42% 54% 13% 7% $0 $100 $200 $300 IT % of All US Private Investments Old economy New economy 195019601970198019902000 0% 20% 40% 60% Source: Chase Econometrics, 4-15-2002 US Worker Hourly Manuf Production % IT Investment Rate US Manufacturing Worker Hourly Production Value Vs The It Investment Rate (Constant 2002$)

16. New Economy Index Measures

18. KNOWLEDGE JOBS

19. Knowledge Jobs Managerial Professional Technical Jobs

20. Knowledge Jobs Workforce Education

21. GLOBALIZATION

22. Globalization Export Focus Manufacturing

23. ECONOMIC DYNAMISM

24. Economic Dynamism Gazelles % Fast Growing Companies

25. Economic Dynamism Job Churning Job Gain & Loss Rate

26. Economic Dynamism New Publicly Traded Initial Public Offerings

27. THE DIGITAL ECONOMY

28. The Digital Economy Online Adult Population

29. The Digital Economy Broadband Telecommunications Capacity Source: FCC Web Site: http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/IAD/hzip1299.pdf

30. The Digital Economy Computers Used In K-12 Schools

31. The Digital Economy Commercial Internet Domain Names

32. The Digital Economy Internet Backbone Capacity

33. INNOVATION CAPACITY

34. Innovation Capacity Level Of High Tech Jobs

35. Innovation Capacity Degrees Granted In Science & Engineering

36. Innovation Capacity Patents Issued

37. Innovation Capacity Academic Research & Development Funding

38. Innovation Capacity Venture Capital Funding Levels

39. FINAL TALLAHASSEE RANKING

40. Tallahassee’s Final Ranking Among The US MSAs Evaluated TALLAHASSEE RANKS 11 th OUT OF 66 US MSAs EVALUATED

41. GLOBALIZATION NATIONAL RANK EXPORT SALES 61 THE DIGITAL ECONOMY BROADBAND TELECOM CAPACITY66 ECONOMIC DYNAMISM # OF NEW PUBLICLY TRADED IPOs60 JOB CHURNING45 INNOVATION CAPACITY VENTURE CAPITAL63 PATENTS58 Tallahassee has an opportunity to build strength in:

42. RECOMMENDATIONS Business and government must partner together to expand : Broad band high speed Internet access to all business, educational and residential need. Business community access to venture capital. Regional creative innovation, business formation and trade efforts and job creation.

43. KNOWLEDGE JOBS NATIONAL RANK HIGHLY EDUCATED WORK FORCE 2 MANAGERIAL, PROFESSIONAL, TECH19 THE DIGITAL ECONOMY INTERNET SUPERHIGHWAY LINKAGE 2 ONLINE POPULATION 7 ECONOMIC DYNAMISM GAZELLES 11 INNOVATION CAPACITY DEGREES GRANTED IN SCIENCE & ENGINEERING 2 ACADEMIC RESEARCH & DEVELOPMENT FUNDING 3 Tallahassee has a strength in:

44. RECOMMENDATIONS Business and government must partner to: Build on our strengths - high levels of professional/technical jobs and a highly educated, online-savvy workforce, student base and general population. Communicate to prospective and existing businesses Tallahassee’s strong “high tech” ranking, Internet access and dynamic economy. Convert our excellent science, engineering and research capabilities into commercially viable local ventures.