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Next steps for the Northeast Ohio region
Sunday, November 12, 2006 An interesting discussion is taking place on Brewed Fresh Daily about regional strategies. Here's my response to one of Brad Whitehead's comments. Brad: Thank you for your comments. Please read my comments more carefully. Far from being "sweeping, blanket statements" I have raised questions about the cost, effectiveness and sustainability of your approach. We all wish the foundations well with your Fund. I did not say, nor did I imply that the Funders were "paralyzed by inaction" or "sitting around". Those are your words, not mine. Let's go over again some of the points I made and add some new ones. 1. Issue 3.-- The GCP's strong support for Issue 3 -- saying, in effect, we are supporting this initiative because there are no other economic development ideas on the table -- simply added to the regional confusion. If Issue 3 is our only regional economic development strategy, then what are NorTech, JumpStart, Team NEO, and so on? Further, I made the point that Issue 3 divided our region, and the vote totals demonstrate that. Overall, the NEO region, like the rest of the state, voted against Issue 3. In my view, a handful of real estate developers pushed this agenda, and not enough people in our business and foundation leadership in Cleveland pushed back. We wasted a lot of time on this indulgence, and Cleveland appears isolated in both the region and the state in the aftermath. In the interim, Brookings released an important report on the future of th Great Lakes. This report went unnoticed in the Plain Dealer, and it's profound implications have not been explored in our region. Learn more. 2. Voices and Choices.-- At the same time, candidly, few people with whom I have talked have understand how Voices and Choices will yield a pragmatic regional agenda. While at Case, I shared with you my concerns. I indicated that Voices and Choices would not succeed without an authentic partnership with our colleges and universities. I still believe this is one of the major weaknesses of your effort. Beyond that, as I pointed out in my comments, your process is very expensive by any measure. How can this approach be replicated? In my experience, regional collaborations work if there is a continuous alignment of activities and investments. So, a regional process must be continuous and sustainable. The Fund may wish to continue V&C, but I suggest that you might want to explore other simpler, more adaptive and less expensive approaches. As I pointed out, the V&C preliminary report does not outline much direct action. I cited the recommendation “Improve workforce training programs and ensure they match the needs of both workers and employers" as an example. perhaps your team of policy experts will be able to put a finer point on this one. But that's only part of the challenge. How will you execute? What action steps will align these complex systems to achieve measurable results? Education and workforce development are complex systems -- each designed in the last century -- that need disruptive innovations. Making these adjustments is tough work among fortified political constituencies. I will be interested to see how you will integrate some of the most promising practices of skill assessments, high school reform models (like career academies, New Tech high, and early college), STEM education, cluster-based career pathways, and so on. 3. BioEnterprise.-- I did not say, nor do I believe, that "the efforts of BioEnterprise are likely to be irrelevant on a larger scale." Again, these are your words, not mine. I am simply pointing out that in an economy of 4.3 million people, the efforts of BioEnterprise will have localized effects. Biotechnology is a very risky investment arena, and the payoffs are far from clear. (I can refer you to a Brookings report, if you like.) I am not criticizing BioEnterprise's efforts. From afar, they look focused and professional. If our goal is to raise per capita incomes broadly across the region, the impact of BioEnterprise will be important, but limited. 4. JumpStart.-- As I indicated, JumpStart is a "bright light". I am, however, concerned about its cost structure. I doubt that, as currently structured, JumpStart is sustainable without continuous infusions of cash from foundations and government. This is not the ideal toward which we should be aiming. The most successful entrepreneurial support organizations in places like Massachusetts, San Diego and North Carolina are self-sustaining. They both create and capture value from the private sector. 5. NorTech.-- I have suggested that NorTech's role should extend beyond brokering Third Frontier dollars. Although this is important, economic transformation does not take place with government money alone. You might want to look at what Chicago, Milwaukee or St. Louis for some additional models. Last week, Dorothy Baunach and Chris Varley asked me to lunch. I suggested to them that the most important short term issue facing the region is getting Case Western Reserve University back on track. The university, and particularly the Weatherhead School, needs strong support from the regional business and foundation community. I also suggested that NorTech work closely with the County to develop innovation zones. For the past year or so, I have participated with a team of consultants to design these strategies. You can download the overall strategy document here. The innovation zone strategy builds off work being done in Michigan and Pennsylvania. The basic idea involves strengthening our college and university campuses with very targeted incentives based on an SBIR model. Our ideas are clear, specific and actionable. We have developed an Innovation Zone Handbook that is available from the County. 6. Final thoughts.-- At Purdue, I have found an excellent group of colleagues aggressively working to realign our assets in the Great Lakes to fit our opportunities. I am happy to share what I am learning and doing. This practice of sharing information is important. "Borrow and adapt" represents the fastest way to learn. I bring examples of other regions forward with that spirit in mind. In my view, Cleveland's business leadership has become quite insular. In contrast, large delegations of business and civic leaders routinely travel to other cities to learn what might work. These delegations typically average about 60, but they can go upward of 200. The visits usually last three days. In the past six months or so, Milwaukee and Louisville leaders have traveled to Denver. Lexington went to Oklahoma City. Oklahoma City went to Indianapolis. Charlotte went to Philadelphia. Phoenix went to Austin. Cincinnati and Northern Kentucky went to Boston. Chicago has been learning from San Diego. Everyone is trying to figure out these complexities. Organizing a leadership visit -- or a series -- would be a good investment for your Fund. Organize a delegation of NEO civic leaders to visit someplace nearby: Chicago, St. Louis, Toronto, Milwaukee, Pittsburgh, Raleigh-Durham. These are all places where new, promising practices are evolving. We have a lot to learn from other places. An income gap between Pittsburgh and Cleveland opened in the early 1990's and has been widening ever since. Why? We will only be able to answer this question satisfactorily if enough civic leaders in Northeast Ohio understand the rapidly evolving role of colleges and universities in regional economic development. (On the importance of learning from other regions: Voices and Choices has never been tried on such a scale before. That alone should raise questions as to whether this model makes sense for NEO. The smart regions are learning and adapting from each other. They are not assuming the risks of entirely new, untested approaches. They build prototypes. Find out what works. And then they invest to scale.) In the years ahead, regions that learn faster will be more competitive. They will learn faster if they have thick networks of collaboration. These networks enable regions to make decisions quickly and align resources to opportunities. They enable regions to develop and implement the dramatic improvements we need in education and innovation. You can keep up with innovations in other regions on my EDPro weblog. Cleveland and Northeast Ohio have some wonderful opportunities ahead. Brewed Fresh Daily is an important network we have to share new and positive stories of regional transformation. It's also turning out to be a vital place where serious issues of regional strategy are addressed openly. posted by Ed |
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