CT Regionalism, May 2010 Presentation to Norwich CT, NCDC
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Transcript of CT Regionalism, May 2010 Presentation to Norwich CT, NCDC
Thinking about Thinking about
Innovation & Job Growth Innovation & Job Growth
(in Connecticut, Norwich and (in Connecticut, Norwich and
other places too)other places too)
Matthew Nemerson
President & CEO of the Connecticut Technology Council
Wednesday May 26, 2010
7:30 AMNorwich
My background…Interests:•Computers, Architecture, History•Building Community•Leveraging Technology•Understandng Economic Growth
1974 – Amity Regional High School (Woodbridge – a local boy)
1978 – Columbia College1981 – Yale School of Management1982 – Publisher - Washington Monthly1983 – Started - Science Park at Yale1986 – Real Estate developer1987 – President Greater New Haven
Chamber of Commerce2000 – COO - Netkey Kiosk Software2003 – President - Connecticut Technology Council
What is the CTC?What is the CTC?
� 350 member state-wide business trade association
◦ 2,500 company community
◦ 10% to 15% of state workforce
� Promote Policies > Runs Events Programs > Help connect firms and people
� Build a community and set of ideas
◦ Innovation, growth, helping start-ups, more STEM
Message: be global, be competitive and be part of the future
TodayToday……
� Identifying the types of business sectors that can thrive in eastern Connecticut;
� Working with CTC in growing technology companies;
� Ideas and action steps to further refine Norwich’s economic development opportunities
DiscussionDiscussion
� What is Norwich’s competitive advantage?
� What could state do to make Norwich more competitive?
� What is your natural region?
� What would your role be a community in 10 years if all your wishes came true?
Strategy K.1. Develop ongoing process to coordinate economic development
� Institute a coordinated process for reviewing and promoting projects developers and attract new investors in Norwich
� Institute process for project planning, conceptualization, packaging, and implementation
� Monitor progress on regular periodic intervals
� Hold all partners accountable
Strategy K.2. Develop local capacity to collect and publish data to track and support
� Establish baseline measures of the City’s current economic status that will be updated to measure progress
� Establish baseline measures which inform economic development initiatives
� Develop an environment where Measures of Success are identified and systematically reported
Strategy K.3. Develop parcel-based information system to modernize City operations
� Connect and integrate geographic databases of the City and NPU to support work of city departments
Strategy K.4. Develop economic development component of 2012 Plan
� Refine this plan for inclusion in the Plan of Conservation and Development
� Benchmark Norwich against successful cities of similar size and age; learn from their successes
� Use road trips to visit cities and meet with economic development entities
Many ways to approach Many ways to approach
thinking about growththinking about growth……
� Present vs. Future (ideas)
� Systems vs. Projects (focus)
� Superficial vs. Real (data)
� Change vs. Destiny (control)
� Actor vs. Team (complexity)
� Politics vs. Clarity (power)
� Here vs. Everywhere (scale)
� Local vs. Regional vs. Global (flatness)
Traditional: what drives growth?Traditional: what drives growth?
� A problem to solve
� Great ideas
� Self-interest
� Expectation of return on investments
� Available capital
� Available labor
� Appropriate infrastructure
� Facile political leadership
10Image – Global perceptions
VentureLater state
Infrastructure – Global connections
AngelInvestors
Early StageSeed
Incubators
NetworksAssociations
MentorsGrants
SkilledWorkersStudents
Technology Transfer
UniversityR&D
CorporateSpin Outs
Innovation Accelerators
SBIR
Government Incentives
Validation
Entrepreneurs
Jobs > Growth
Innovation Eco-systemInnovation EcoInnovation Eco--systemsystem
11
New Job grow comes from…New Job grow comes fromNew Job grow comes from……
Existing IndustryGrowth
R&D, spin-outs, strategic connections &
investments
Starting New Companies
Created by entrepreneurs, angels
Intellectual Property and
Technology TransferUniversities foster
new companies
through
start-ups & licensing
CompetitiveAdvantage
Patents per capital: We are and have been the center of innovation (1995-2000 data)
13
A survey says tech companies are staying in A survey says tech companies are staying in
Connecticut but not strong supportersConnecticut but not strong supporters……
But Data is uneven across categoriesConnecticut is 7th in “Tech State” rankings by ITF/Kauffman
Connecticut is 7th in “Tech State” rankings by ITF/Kauffman
Scores low in VC $, non-industry R&D, Entrepreneurial Activity
Scores low in VC $, non-industry R&D, Entrepreneurial Activity
ConnecticutConnecticut’’s trend problems trend problem……Rank Change
2005 2006 2005 2006
Entrepreneurial & Business Vitality 9 11 42 44
Financial & Capital Resources 13 14 45 42
Technology Strengths 2 2 36 36
Human Capital Resources 5 7 35 41
Global Links 7 12 29 37
OVERALL 7 8 43 44
LongLong--term decline term decline
in job growthin job growth
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
De
c-8
8
Oct-
89
Au
g-9
0
Ju
n-9
1
Ap
r-9
2
Fe
b-9
3
De
c-9
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Oct-
94
Au
g-9
5
Ju
n-9
6
Ap
r-9
7
Fe
b-9
8
De
c-9
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Oct-
99
Au
g-0
0
Ju
n-0
1
Ap
r-0
2
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b-0
3
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c-0
2
Oct-
04
Au
g-0
5
CT
20
-Yr
Mo
vin
g A
vg
, A
bs
Ch
an
ge
(10
00
s)
0
2
4
6
8
10
12
14
16
18
20
Ne
w E
ng
lan
d 2
0-Y
r M
ov
ing
Av
g, A
bs
Ch
an
ge
(1
00
0s
)
Source: U.S. Bureau of Labor Statistics; Calculations by CERC
New England
Connecticut
Jobs dropping quicker than across New Jobs dropping quicker than across New
EnglandEngland
20
Cluster Portfolio GrowthCluster Portfolio Growth--Share Matrix:Share Matrix:
Relative Position of Various ClustersRelative Position of Various Clusters
Growth-Share Matrix for Connecticut's Clusters
0.0
1.0
2.0
3.0
4.0
5.0
6.0
-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0%
Average Annual Employment Growth, 1994-2004
Lo
cati
on
Qu
oti
en
t
Aerospace
Metal Manufacturing
Plastics
Medical Devices
Insurance & Financial Services
Creative Industries
IT
AgricultureMaritime
Tourism
BioscienceHealth Plans
4
WSJ : Tech leads Jobs recovery WSJ : Tech leads Jobs recovery 4/16/20104/16/2010
� Google profits up, 1000 new workers now, 1,000 more soon (Internet ads)
� Oracle, 2,000 new for SUN
� AMD profits up 37%
� Cisco, 2,000 new hires in 2010
� Twitter, 170 new hires in May
� LinkedIn, 150 this year
Dice reports: 10,000 more listings than a year ago
Connecticut jobs picture is Connecticut jobs picture is
turningturning
Is Is ““nownow”” different for policy makes?different for policy makes?
� Political challenges in 2010� Health reform
� Global changes in growth◦ New world versus old◦ IP versus Production
� Debt as % of GDP� Climate Change
“What if the crisis of 2008 represents something more fundamental than a deep recession. What if it is
telling us that the whole growth model we created
over the past 50 years is unsustainable economically and ecologically and that 2008 was when we hit the
wall – when Mother Nature and the market both said, no more.” NYT columnist Tom Friedman
Jobs and GeographyJobs and Geography
Regional Business Growth Varies in USRegional Business Growth Varies in US
Source: U.S. CensusSource: U.S. Census
RegionEstablishments
% U.S. Establishments
Establishment Growth, 1989-2004
1989 2004 1989 2004 # %
U.S. 6,107,413 7,387,724 100.0% 100.0% 1,280,311 21.0%
Northeast 1,332,756 1,454,736 21.8% 19.7% 121,980 9.2%
Midwest 1,426,941 1,675,608 23.4% 22.7% 248,667 17.4%
South 1,998,066 2,536,867 32.7% 34.3% 538,801 27.0%
West 1,329,672 1,700,995 21.8% 23.0% 371,323 27.9%
Connecticut 94,178 93,011 1.5% 1.3% -1,167 -1.2%
27272727Map: University of Pennsylvania
Geographical opportunityGeographical opportunityGeographical opportunityGeographical opportunity…………Geographical opportunityGeographical opportunityGeographical opportunityGeographical opportunity…………
Source: Michael Gallis
Gallis Corridor slideGallis Corridor slide
30Map: University of Pennsylvania
Projected growth “winners” by 2050Projected growth Projected growth ““winnerswinners”” by 2050by 2050
A new way A new way
of looking of looking
at the at the
coasts:coasts:
NortheastNortheast
Over Over
CaliforniaCalifornia
Looked at from labor marketsLooked at from labor marketsLooked at from labor markets
34Map: University of Pennsylvania
Emerging U.S. Mega-RegionsEmerging U.S. MegaEmerging U.S. Mega--RegionsRegions
And viewed by cluster growthAnd viewed by cluster growth
World populationWorld population
Journal citations 2008Journal citations 2008
Patents filesPatents files
Big TrendsBig Trends……
Wired 40 in 2008Wired 40 in 20081 Google | 1 (2007)
2 Apple | 2
3 Genentech | 4
4 Samsung | 3
5 News Corp. | 9
6 Nintendo new
7 Salesforce.com | 15
8 Cisco | 12
9 General Electric | 8
10 Nvidia | 21
Off from 2005
4.Amazon 5. Yahoo! 6. EA 8. Toyota 9. Infosys 10. eBay
Technology TrendsTechnology Trends
Gadgets and life style� Connectivity (wifi & cellular) 4G
� Pricing issues
� Convergence of communications
� Displays (size, type, 3D)
� Flash memory= (E readers)
� DYI IT and comsumerization of Enterprise systems◦ ChallengePost, topcoder and Tongal
Technology TrendsTechnology Trends
Platforms & Structure� FCC ruling
� Cloud
� Virtualization
� Open Source
� Web 2.0◦ Google
◦ Craig’s List
Technology TrendsTechnology Trends
Larger & Energy Tech� Distributed energy◦ Mini fuel cells
� Carbon Footprint� Health Care IT (Combining with devices)� Alternative energy� Electric Cars� High Speed Rail� Light Rail� China & India
Place TrendsPlace Trends
Sustainable
Tax Base & budget
Broad demographics
Two job commute sheds
Opportunities for children
Multi generational zoning
Stable weather
Water
Respected government
There are limits to all ideas
DiscussionDiscussion
� What is Norwich’s competitive advantage?
� What could state do to make Norwich more competitive?
� What is your natural region?
� What would your role be a community in 10 years if all your wishes came true?
Questions and discussionsQuestions and discussions
� Matthew Nemerson
� President & CEO CTC
� 860 289-0878 x333
48
BENCHMARKS
Source: John Adams Innovation Institute
CONNECTICUT RANKS NEAR THE BOTTOM AMONGST THE 10 LEADING TECHNOLOGY STATES …
Metrics Expenses ($
Millions)
per patent
issued to
state
institutions
Expenses ($
Millions)
per start-up
initiated
from state
institutions
Percentage
of total US
patents
granted
Percentage
of total US
patents
grantedDelt
a vs '95
Percentage
of High
School
seniors
planning to
major in
Computer,
Engineering
or
Information
Science
Engineering
Degrees
awarded
per 100,000
residents
Business
incubators
per 10,000
business
establishme
nts
Rapidly
Growing
firms i.e.
20% YoY
for 5 years
VC
Investments
($ Millions)
Period 1995-2004 1995-2004 2005 vs. 1995 2005 2005 2005 2000-2005 2005
CA 6.7$ 72.6$ 23.0% 6.8% 12% 44 1.3 379 10,633$
CT 11.1$ 99.0$ 1.9% -0.9% 9% 29 0.9 29 186$
IL 11.4$ 110.4$ 4.0% -1.3% 13% 37 0.9 124 293$
MA 7.0$ 68.2$ 4.1% 0.1% 11% 76 1.9 145 2,455$
MN 8.9$ 89.1$ 3.2% 0.2% 14% 26 1.8 65 231$
NC 9.1$ 78.4$ 2.2% 0.4% 13% 31 1.9 44 472$
NJ 6.6$ 62.4$ 3.7% -1.3% 10% 37 0.7 115 947$
NY 8.2$ 92.9$ 6.8% -1.7% 10% 48 1.7 154 1,074$
PA 9.8$ 77.4$ 3.4% -1.3% 10% 51 1.8 124 470$
VA 9.0$ 51.1$ 1.3% -0.2% 14% 51 2.2 182 413$
CT Rank 9 9 9 6 10 9 8 10 10
Source: Assoc. of
Technology
Managers
Assoc. of
Technology
Managers
US Patent &
Trademark
Office
US Patent &
Trademark
Office
The College
Board
American
Assoc of
Engineering
Societies
Commonweal
th of MA
Inc. Magazine PwC/ NVCA/
MoneyTree
Survey
Connecticut is bottom rung of the top states…
49
BENCHMARKS
Clusters MA CA CT IL MN NJ NY NC PA VA
Computer & Comm Hardware (0.4) (1.6) (3.3) (2.3) (1.2) (1.4) (5.2) (0.8) (1.3) 4.5
Defense Mfg & Instrument. (1.8) (0.3) 0.3 0.8 1.9 - 3.3 6.2 1.0 4.1
Diversified Ind. Support (4.7) (1.0) (1.5) (1.0) 0.2 (1.6) (2.9) (1.0) (1.2) 1.6
Financial Services (0.3) 1.8 - 0.3 1.4 1.1 2.0 2.2 (0.2) 0.5
Healthcare Technology (0.7) 1.7 (0.3) (2.2) 4.3 (2.9) (0.7) 2.1 (0.5) 1.5
Sci, Tech & Mgt Services 5.4 7.0 0.2 4.1 1.7 4.2 2.2 6.4 5.5 14.1
Business Services 1.5 3.1 - 2.1 (0.9) (0.3) 1.7 2.9 0.7 3.9
Post Secondary Education - 4.8 2.9 5.1 2.7 (0.1) 1.1 1.4 3.3 3.8
Software & Comm. Services 1.9 0.4 (1.1) (0.3) (0.9) 0.2 (0.3) 2.5 (0.3) (0.9)
Textiles & Apparel (4.9) (6.6) (7.7) (3.7) (3.1) (10.4) (9.8) (10.8) (11.2) (9.6)
Source: Moody's Economy.com
Cluster Employment 2004-2005(% change)
Source: PricewaterhouseCoopers, National Venture Capital Association
… AND EMPLOYMENT TRENDS, AND INVESTMENTS IN CRITICAL CLUSTERS ISDISCOURAGING …
CT Investments($ Millions)
Investment Amount
No. of Investments
Did not grow as well compared to peer states…
What to do?What to do?
Intra and Entrepreneurs' POVIntra and Entrepreneurs' POV
Issues� Customer service� Networked problem solving� Capturing value� Speed� Corporate or Boot Strap
Skills� Pattern recognition� Expert Thinking – forecasting with
perspective� Complex Communications – making your
point
Case studies of some local Case studies of some local
GazellesGazelles� Tangoe – www.tangoe.com
$50m in five yearsReduce Costs and Take Control of Your Global
CommunicationsTangoe delivers software and technology-enabled services to help global organizations manage, understand, and control their fixed and mobile communications assets and costs.
Idea: Analyze phone bills
Found: Companies wanted to out source everything from land lines to PDA management
Case studies of some local Case studies of some local
GazellesGazelles� HigherOne – www.Higher.com
$75m in ten yearsOur main idea was to expand the purchasing power of our
college ID card so it could be accepted everywhere - not just on campus. We decided to create a product based on combining a college ID card with a Debit MasterCard®; this would help students get their refunds from their school faster, offer more choices in how to receive their money and finally save time and money for colleges and universities.
Idea: College is Debit Card has scholarship money
Found: College bursar offices wanted to outsource many electronic banking issues, faculty and staff functions too.
Which leads to TBED InitiativesWhich leads to TBED Initiatives
� Supporting Tech Transfer in universities and commercialization◦ Ohio: $500m over 7 years for R&D and commercialization◦ New Jersey: $250m for Cancer and Stem cell research R&D and an institute ◦ Michigan:$200m grants for bio, energy, materials, security◦ Maine: $200m R&D and tech transfer – bio, energy◦ Florida:$142m for R&D, incubators, scholars, aerospace◦ New Mexico: $120m R&D – super comp, stem, aerospace◦ Penn: $75m for incubators and assistance◦ Georgia: $33m for GA Research Alliance activities
� Supporting tech bricks and mortar to lure major construction◦ NYS: $600m grant for $3.2b AMD chip factory◦ Florida: $500m grant for Scripps Biotech institute
� Supporting a healthy innovation environment ◦ Penn: $120m new money for tech training and tuitions◦ Mississippi: $28m◦ Maine: $20m for partnerships, training & clusters◦ Ohio: $15m to tech assistance and support for start-ups◦ Oklahoma: $10m, including $5m for seed◦ New Jersey:$8m for assistance programs
Wired 40 2005Wired 40 2005
1. Apple
2. Google
3. Samsumg
4.Amazon
5. Yahoo!
6. EA
7. Genentech
8. Toyota
9. Infosys Technologies 10. eBay 11. SAP 12. Pixar 13. Cisco14. IBM 15. Netflix 16. Dell 17. General Electric 18. Medtronic 19. Intel 20. Salesforce.com 21. Vodafone 22. Flextronics 23. EMC 24. Nvidia 25. Jetblue 26. FedEx 27. Monsanto 28. Microsoft 29. Nokia 30. Costco 31. Comcast32. Pfizer 33. Li &Fung 34. Taiwan Semiconductor 35. Gen-probe 36. Citigroup 37. L-3 Communications 38. Ameritrade39. Exelon 40. BP