Broward County in the New Economy

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Broward County in the New Economy
Rob Atkinson Vice President and Director,
Technology and New Economy Project Progressive
Policy Institute www.ppionline.org
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The Progressive Policy Institute

• Founded in 1989 by the Democratic Leadership
  Council
• 501 (c) (3)
• Mission define and promote a Third Way
  
  
  progressive politics for the Information Age
• An alternative to the liberal impulse to defend
  the bureaucratic status quo and the conservative
  bid to dismantle government

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Format

• Whats the New Economy and Why Is it Important to
  Browards Future?
• How is the Broward region faring in the New
  Economy?
• What do places need to do to succeed?
• What is the role of visioning?

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Old Economy Mass Production Factories

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New Economy Knowledge-Based Offices

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Old Economy Lower-Skilled Routine Work

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New Economy Higher-Skilled Customized Work

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Old EconomyA National Economy

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New Economy A Global Economy

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Old Economy Mechanical Technologies

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New Economy Digital Technologies

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Old Economy Centralized Scarce Computing

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New Economy Ubiquitous, Networked Computing

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Old Economy Paper and Face-To-Face Transactions
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Really Old Economy

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New Economy Digital and Remote Transactions
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OLD Economy Northern Cities

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NEW Economy Southern Suburbs

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Six Big Trends Affecting Communities and
Business Over the Next 10 Years
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Trend 1 The Retiree Boom

• Facts
• By 2005, 35 million Americans will be 50 to 59
  years old and planning retirement, up from 21
  million in 1990.
• of Americans over 60 to grow from 45 million in
  1999 to 58 million in 2011.
• Implications People can be the engine of growth.

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Trend 2 The Knowledge Worker Boom

• Fact By 2010, over 50 percent of the workforce
  will have some college.
• Implication Footloose knowledge workers will
  drive growth. They look for other knowledge
  workers and a great quality of life.

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Trend 3 The Globalization Boom

• Facts Trade is projected to grow by at least 5
  percent per year, and even faster for services.
• Implication Regions with links to the rest of
  the globe will be most successful.

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Trend 4 The E-Commerce Boom

• Fact IT is allowing companies to consolidate and
  challenge small, locally-serving businesses in a
  host of industries.
• Implication Growing or attracting big, IT-based
  firms will be a key to growth.

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Trend 5 The Government Budget Bust

• Facts Federal debt of 7.5 trillion by 2014.
  State budgets under pressure due to rising
  pension and health care costs.
• Implication Dont look to Washington for much
  help, and possibly, dont even look to
  Tallahassee.

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Trend 6 The Productivity Boom

• Fact Productivity growth of 2 for the last 7
  years is likely to continue, especially in
  manufacturing, as the IT revolution penetrates
  all corners of economic life
• Implication Continued loss in manufacturing
  jobs. Continued increase in incomes.

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What Does the New Economy Mean For Florida and
Broward County?
The State and Metropolitan New Economy Indexes
use 5 groups of indicators to map how well places
are adapting to the New Economy gt Knowledge
Jobs gt Globalization gt Economic Dynamism
gt Digital Economy gt Technological
Innovation
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Overall New Economy Index Scores

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Overall New Economy Index Scores (2002)
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Overall New Economy Index Scores (2001)
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THE REGIONS STRENGTHS
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Export Focus on Manufacturing
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Export Focus on Manufacturing
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Fast Growing Gazelle Companies
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Gazelle Jobs
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Commercial Internet Domain Names
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Commercial Domain Names
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Broadband
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Broadband
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Academic RD Funding
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Academic RD
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THE REGIONS CHALLENGES
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Workforce Education
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Workforce Education
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Managerial, Professional, and Technical Jobs
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Managerial, Professional, and Technical Jobs
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High-Tech Jobs
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High-Tech Jobs
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Old Economy Development Model

• Getting more jobs was the overriding goal.
• Being a cheap place for business was a key.
• Attracting companies was a key.
• A high-quality physical environment stood in the
  way of attracting cost-conscious businesses.
• Competitive advantage based on a fixed resource,
  skill, or location.
• Economic development was government-led.

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A New Economy Requires a New Economic Policy

• Being rich in ideas and talent is the key.
• Attracting educated people is the key.
• Physical and cultural amenities key to
  attracting knowledge workers.
• Regions prosper if organizations and
  individuals can learn and adapt.
• Only bold partnerships among business,
  government and the non-profit sector can bring
  about change.

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Faster Income Growth May Be a Special Challenge
for Broward

• Miami-Ft. Lauderdale ranked 10th out of 50
  largest metros in population growth, 1990-98.
• 15th fastest in employment growth.
• But only 49th fastest in per-capita income growth.

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7 Steps to Prosper in the New Economy

• Know your regions economic function in the
  
  global economy.
• Create a skilled workforce.
• Invest in an infrastructure for innovation.
• Create a great quality of life, especially
  high-quality K-12 schools, good transportation,
  and vibrant urban life.
• Foster an innovative business climate.
• Reinvent and digitize government.
• Take regional governance seriously.

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Keys to Successful Visioning Efforts

• Take enough time to really learn about your SWOT.
• Dont let community pride keep you from taking an
  honest look at both your strengths and
  weaknesses.
• Dont try to be like someplace else. Work to
  identify the tangible and intangible factors that
  make the Broward region unique.

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Keys (2)

• Understand your economy by understanding the
  competitive position of your key industry
  sectors. Complement quantitative research (e.g.,
  County Business Patterns) with qualitative
  research (e.g., industry focus groups).
• Understand the strengths and weaknesses of key
  foundation areas (e.g., transportation,
  education, business climate, etc.)

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Get Specific!

• Dont get caught up in lofty platitudes.
  Identify a discreet number of specific,
  actionable steps and who is accountable for
  implementation.
• Too vague create the worlds most productive
  workforce.
• Specific work with the financial services
  industry and the local college to create a two
  year financial services training program.

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Metropolitan regions that meet the challenges of
the New Economy -- focusing on innovation,
learning, and constant adaptation -- will be the
ones that succeed and prosper.
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