Rethinking Economic Development

for the Rochester City/Region

Susan ChristophersonCornell University

In the “Old” Economy:

• The cost of production was the preeminent consideration.

• Success was measured in economies of scale.

• Labor cost counted for more than “talent”.• The region was a backdrop for competitive

individual firms.

In the New Economy:

Production cost is still important but so are:• The capacity to innovate• Access to “talent” - young creative workers• The quality and depth of skills in the

workforce

What does this mean for the City/Region?

Success depends on factors beyond the competitiveness of the individual firm:

• Opportunities for firms to interact with one another and to learn from one another

• Supportive institutions and partnerships that create a “learning” region for firms and the workforce

• Diverse, vibrant urban centers and neighborhoods that attract creative talent

What does this mean for the Rochester City/Region?

Rochester’s future lies in:• Innovation and flexible production of specialized

products that are inputs to a wide range of industries

• Investment in urban institutions, neighborhoods and cultural and recreational facilities

• Development of labor force skills that add value

What is Photonics?Photonics is “the technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and information processing.”

http://www.photonics.com/dictionary/

Photonics Products are Everywhere in Our Lives...

Ranked markets - diversification

Customers and Suppliers

Sources of Firm Financing

Stocks (public)14%

Private72%

Venture Capital7%

Other*19%

1.8

14.5

14.5

23.6

30.9

0 5 10 15 20 25 30 35

Percent

Business Services

Other*

Equipment

High-Skilled Labor

Medium-Skilled Labor

Top Resource Needs of Rochester's Optics, Imaging, and Photonics Firms

What Does All This Mean for Economic Development? Why

Are You Here?New economy economic development

requires a change in direction:• Focused on quality of place not only the

competitiveness of individual firms.• Drawing on a broad constituency including

civic, community, labor, and business leaders

• Incorporating experience and new ideas.