SWOT Analysis: Preparing for the North Carolina Research Campus Kannapolis, North Carolina

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SWOT Analysis Preparing for the North Carolina
Research CampusKannapolis, North Carolina
October 6, 2006
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SWOT Analysis Overview

• Purpose
• Understand Kannapolis competitive position as a
  place for biotech activity
• Outcome
• A set of issues for Kannapolis, Cabarrus County,
  and regional entities to address to best plan for
  the North Carolina Research Campus
• Covered 5 main topics
• Quality of life
• Infrastructure
• Education and workforce development
• Innovation and entrepreneurship
• Business costs

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Comparison Communities
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Community Input

• 25 interviews and 128 online survey respondents
• To get perspectives from key stakeholders
• Not meant to be comprehensive input process
• General Sentiments
• Kannapolis greatest strength
• People, opportunities, location, small town feel
• Greatest challenge for future of Kannapolis
• Planning for growth, adapting to change,
  obtaining jobs for local citizens
• Changes envisioned for Kannapolis
• Growth, better quality of life, rising cost of
  living
• Transformation to a diverse, knowledge-based
  community

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Quality of Life
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The Importance of Embracing Diversity

• Diversity and openness of a community were cited
  as key factors that college-educated, young
  adults consider when choosing a place to live.
• 1 in every 4 scientists and engineers in the U.S.
  is foreign born.
• 50 of all doctoral degrees in math and science
  and 60 of all engineering doctoral degrees
  awarded in the U.S. go to foreign nationals.
• Over 40 of U.S. masters degrees in engineering,
  computer science, and math are awarded to foreign
  nationals.
• Nearly half of all Nobel Prizes awarded to
  researchers in the U.S. between 1901 and 1991
  were won by foreign-born individuals or their
  children.

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Diversity in Comparison Communities
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Need to Embrace Diversity in Kannapolis

• Until people native to this area do get to know
  you, they tend to be close-minded and
  standoff-ish. This is especially true, in my
  experience, if the newcomer does not hold the
  same religious and/or cultural history.
• I have also discouraged my son and his family
  from moving here due to the close-mindedness,
  racism and unwillingness of long-time residents
  to welcome and embrace people of different
  cultures and ethnic backgrounds.
• There are too many Mexicans in the US. It takes
  jobs from the Americans.
• We are getting a lot of Hispanics buying real
  estate making it hard for the average family.

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Parks Recreation Amenities

• The comparison communities have invested in
  significantly larger acreages of parks, greenways
  and trails, and also offer extensive recreational
  programs for many different groups of residents.

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Parks Recreation Comments

• Need to enhance recreation facilities in terms
  of organized sports fields, etc. Need to include
  X Games-type sports like roller hockey,
  skateboarding, etc.
• Kannapolis has an outstanding public recreation
  program, especially the area where movies and
  bands play.
• Cost of the park facilities are too high for the
  average person in Kannapolis.
• The last few years have seen a big increase in
  parks and greenspace. It will just take a while
  to get us where we would like to be. Gary is
  doing a tremendous job.
• Streets are not bicycle friendly nor are there
  any hiking or outside health opportunities that
  are perceptible.
• Our current leadership does not seem to be
  vested in the preservation of open greenspace.
• Please keep the momentum going for the parks and
  greenspace!

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Quality of Life Additional Findings

• Kannapolis is also lacking in cultural
  recreational amenities
• Need to market regional assets
• Also need to develop local options
• Kannapolis has placed little emphasis on
  environmental sustainability in the past
• Need for health-oriented, environmentally
  responsible services and investments
• Local government leadership policy set the tone

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Quality of Life Additional Findings

• Kannapolis is doing good job of keeping community
  updated on news and developments
• Continue to improve electronic communications
  methods
• Keep up communications about NCRC plans
• No networking groups for young professionals in
  Kannapolis area (some in Charlotte)
• Consider ways to engage the young professionals
  who will be coming to work at NCRC

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Quality of Life Additional Findings

• Regional health care capacity is lower than
  comparison community regions
• Continue to attract more doctors health care
  facilities
• 40 of survey respondents didnt know about
  quality, availability, or affordability of child
  care
• Increase awareness and availability of high
  quality child care options

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Infrastructure
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Housing Options
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Physical Development Patterns

• Need to create vibrant core, sense of place
• Young professionals have a strong inclination to
  live downtown or close to downtown
• And desire to live in a place where they can
  connect with others and have meaningful social
  interactions
• Kannapolis
• Small downtown
• Low rise development
• Lack of pedestrian activity
• NCRC will need to be very different

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Downtown Rochester
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Downtown Cary
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Downtown Rockville
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Transportation Access

• Kannapolis
• 1 interstate highway, regional access to 1 more
• 1 airport 30 miles away
• Public bus service w/ 6 routes
• Cary
• 2 interstates, regional access to 1 more
• 1 airport 8 miles away
• Public bus services w/ 3 routes, links to
  regional commuter service
• Rockville
• 3 interstates, regional access to 2 more
• 3 airports within 40 miles
• Public bus service w/ 80 routes links to 4
  MetroRail stations
• Rochester
• 0 interstates, regional access to 1
• 1 airport 10 miles away
• Public bus service w/ 17 routes

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Infrastructure Additional Findings

• Water capacity is a concern for Kannapolis
• Will need to keep up with growth
• Water/sewer rates higher than comparison
  communities
• Only a few wireless internet hotspots in
  Kannapolis
• Seriously consider wireless zone for Research
  Campus area
• Contributes to image of tech-savvy
• UNC-Charlottes participation in North Carolina
  Research and Educational Network provides
  bandwidth for bioinformatics other computing
  needs
• Access to National LambdaRail

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Education Workforce Development
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Educational Attainment Levels
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K-12 Performance
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Graduate Degree Opportunities

• Limited opportunities for Kannapolis area
  residents to get advanced degrees locally
• Should pursue opportunities to bring higher
  education to Research Campus distance learning,
  overview courses, etc.

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Kannapolis Workforce Development Issues

• Retraining former Pillowtex employees
• Loyal, hardworking, dependable
• But lack critical thinking, problem solving,
  technical skills
• Increasing awareness of biotechnology
• At K-12 levels
• Creating 2 yr degree programs, short overview
  courses
• Interdisciplinary areas
• Creating advanced education opportunities for
  NCRC research employees
• Distance learning
• Expansion of UNC-Charlotte programs

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Workforce Development Assets Resources

• Strong state support
• BioWork, BioNetwork via community colleges
• Rowan-Cabarrus Community College very proactive
• Developing partnerships, expanding programming
• But Rockville Cary areas are even stronger
• Biomanufacturing Training and Education Center
  NC State
• Biomanufacturing Research Institute Technology
  Enterprise NC Central
• Early College of Health and Sciences - Wake
  County
• Biotechnology Institute U. of MD in Rockville
• Certificate in Biotechnology Enterprise Johns
  Hopkins in Rockville

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Innovation Entrepreneurship
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Innovation Capacity

• Kannapolis lags in patent activity
• Charlotte metro area also lagged behind
• Academic RD expenditures at UNCC 17.4M in 2004
• Vs. 1.2 billion for Duke, NC State, UNC-CH
  combined
• 2.1 billion for Johns Hopkins, U. of MD
• 351 million sponsored research at Mayo Clinic
• Charlotte attracted 5.7M in NIH funding in 2003
• Vs. 761M in Durham, Chapel Hill, RTP
• 276M in Rockville
• 167M in Rochester
• Raleigh-Durham D.C. area schools are in top 117
  list for technology transfer activity

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Entrepreneurial Activity

• Charlotte region is competitive in terms of
  entrepreneurial activity
• Need to grow this entrepreneurial spirit
  throughout Kannapolis Cabarrus County

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Venture Capital Activity 2nd Quarter 2006

• 5 deals in Rockville 4 were biotech totaling
  107M
• 16 of 18 deals in N.C. went to Raleigh-Durham
  area
• 1 deal in Cary biotech 1.6M

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Angel Capital

• Kannapolis/Charlotte needs to keep developing
  funding options for biotech other
  entrepreneurs
• Finance professionals should become educated
  about biotech start-up needs

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Organizational Support

• Biotechnology-specific organizations
• Strong statewide support NC Biotech Center,
  NCBIO
• Universities, organizations, other groups work
  well together initiatives are well coodinated
• Entrepreneur networks
• Kannapolis has none, Charlottes are not that
  active
• D.C. area networks are strong also Council for
  Entrepreneurial Development in Raleigh-Durham
  area
• Small business/entrepreneur programs support
  organizations
• Well coordinated in Charlotte area small but
  solid network
• DC and Raleigh-Durham have many significant
  programs

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Business Costs
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State Local Tax Rates
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Incentives for Biotechnology

• North Carolina Maryland are very aggressive
• North Carolina
• NC Board of Science and Technology matching
  funds for SBIR and STTR awards
• Life Science Industry Revenue Bonding Authority
  to help finance facilities but not funded yet
• NC Biotech Center grants loans for research
  businesses
• Golden Leaf Foundation - 30M for venture capital
• Maryland
• Biotechnology Investment Tax Credit
• MD Technology Development Corporation - top
  source of venture capital for early stage firms
  in U.S.
• MD Dept of Business and Economic Development
  3rd most active source of venture capital for
  early stage firms

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Conclusion
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Key Strengths Opportunities

• Proximity to Charlotte
• Opportunity to capture some of natural growth
• Proactive public communication
• Need to continue this multiple audiences
• Strong, coordinated regional support for
  entrepreneurship
• Develop local connections
• Organizations need to understand the way biotech
  works
• State support for biotechnology
• Continue strengthening connections, tap into
  knowledge
• Organizations in Charlotte area working well
  together to prepare for NCRC
• Keep going!

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The Need to Plan Take Action

• Research Campus is unique project, enormous
  opportunity
• Can transform the local community economy
• BUT, potential economic impacts will not just
  happen
• Need targeted investments, proactive planning and
  marketing, and a welcoming attitude
• Competition for biotech is tough, other cities
  are far ahead
• Lots of choices for biotech workers and
  businesses
• City, region, state need to be aggressive,
  define market competitive advantages
• Kannapolis cant afford wait see approach
• Reactive response will be too late

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PRIORITY Issues to Address

• 1 Improving K-12 education
• Improve performance, expand gifted programs, link
  biotech
• 2 Preparing the workforce
• Identify skills/positions needed, communicate
  opportunities, create training programs
• 3 Expanding amenities improving government
  services
• Catch up on QOL factors
• 4 Promoting smart growth creating a sense of
  place
• Mix of housing, multiple modes of transportation,
  land use, aesthetics
• 5 Embracing diversity
• Promote a welcoming community

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Additional Issues to Address

• Seriously consider wireless internet zone at NCRC
• Portray image of being technologically savvy
• Pursue increased higher education programming at
  NCRC
• Via distance learning, short courses, etc.
• Develop breadth and depth in funding options for
  start-up firms
• For biotech firms entrepreneurs who want to
  serve NCRC needs

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Additional Issues to Address

• Create effective networks for entrepreneurs
• Locally regionally
• Understand needs of biotech start-ups
• Finance professionals
• Entrepreneur/small business support organizations
• Continue developing state regional partnerships
• Maximize impact influence of NCRC

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Summary of Issues
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Discussion Questions