Attracting Talent Through the Development of Vibrant Urban

Centers

Joe CortrightJanuary 2010

Synopsis KnowledgeTalent

InnovationConnections

DistinctivenessUrban Vitality

Knowledge

Shifting sources of wealth

Resources

Costs

Proximity

Clusters

Knowledge

Talent

Quality of Life

Current

Traditional

Inherited Assets

Created Assets

Universities promote knowledge

Teaching

Research

Cities promote knowledge, too

“Stadtluft macht frei”

Harnessing Knowledge

Talent

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Less thanHigh

School

HighSchool

Graduate

SomeCollege, AA

Degree

4 YearDegree

AdvancedDegree

Annual Earnings(Inflation-adjusted) 1975

Returns to education have always been substantial

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Less thanHigh

School

HighSchool

Graduate

SomeCollege, AA

Degree

4 YearDegree

AdvancedDegree

Annual Earnings(Inflation-adjusted) 2003

But have increased sharply over the past 25

years

This holds for cities, tooEducation Explains Most Differences in Metro IncomeAnnual Per Capita Income, 2005

NO

RAL

ROC

SLC

BIR

BUF

OKC

HAR

RIC

LOUMEM

JAC NAS

AUS

MIL

CHA

PRI

VB

IND

COL

LV

SAT

KC

ORL

SACCLECIN POR

PIT

DEN

BAL

TPA

STL

SAN

MIN

SEA

PHO

DET

ATL

MIA

HOU PHI

DAL

CHI

LA

NY

y = 763.27x + 16466

R2 = 0.5846

$30,000

$32,000

$34,000

$36,000

$38,000

$40,000

$42,000

$44,000

$46,000

$48,000

$50,000

15 20 25 30 35 40 45Percent of Population with a 4-Year College Degree, 2006

Sources: BEA (Income), Census (Education)

The Talent Dividend

Akron Talent Dividend:$500 million annually

Middle of the Pack Attainment0% 10% 20% 30% 40% 50%

Washington

Akron

Riverside

Adult four-year attainmetn rate, 2008

High enrollment

0 10 20 30 40 50 60

Las Vegas

AkronAustin

18 to 24 Year Olds in College Per 1000 Residents

Weakened by migration

Net Domestic Migration, 2000 to 2008

Akron - 16,865Cincinnati - 18,954Cleveland -129,976Columbus + 25,700Indianapolis + 64,372Pittsburgh - 57,928

Talent now seeks placeThinking about how you will look for and choose your next job, which of the following statements best reflects your opinion?

(Asked of 1,000 25-34 year old college graduates) 

Look for the best job I can find. The place where it located is pretty much a secondary consideration.

0% 20% 40% 60% 80%

Look for a job in a place that I would like to live

Innovation

Above Average in Patents0 20 40 60 80

San Jose

Akron

Oklahoma City

Patents per 10,000 workers

Environment Matters

$300MM in Academic R&D yields:

112 Innovations in Tier 1 avg. pop. 3MM

16 Innovations in Tier 2 avg. pop. 1MM

5 Innovations in Tier 3 avg. pop. 400K

4 Innovations in Tier 4 avg. pop. 200K

Source: Varga, 2000

Yield varies based on metro areas size:

Critical Mass

Pure university-based alone is not enough to produce local innovation.

A "critical mass" of agglomeration is required to achieve substantial local economic effects of academic research.

(McMahan, 2007)

Connections

Civic Engagement0% 20% 40% 60% 80% 100%

MinneapolisAkron

Riverside

Percent of Adults Voting in 2008

Kinds of Connections

DensitySocial Capital

Buzz and PipelinesBusiness/Academic

Distinctiveness

Differences Matter

Michael Porter“Competitive strategy is about being

different.”

Jane Jacobs"The greatest asset that a city can have is something that's different from every other

place."

Weirdness Index0 2 4 6 8 10

Salt Lake

Akron

Difference from US Average (Composite Score)

Portland as an Example

Sustainability - FirstVegan – First

Farmer’s Market - FirstCyclocross – FirstMicrobrew – First

Dragonboats – FirstEspresso - Second

Fixie – Fourth

Portland’s Rank Among 50 Largest US Metro Areas in Relative Google Searches

Source: Google Trends, 2009

Physical Activity• Compared to the average for the US, Portlanders are:• Twice as likely to go camping• 60% more likely to go hiking or backpacking• 40% more likely to golf or hunt• Region ranks last in theme park attendance• Oregonians rank lowest in sedentary life styles and 2nd highest of vigorous physical activity

Recreationally-Minded

In the late 60s the jogging craze takes off in many towns led by Eugene OregonA guy starts selling Japanese running shoes out of the back of his station wagon

Urban Vitality

Gaining young talentRank Metropolitan Area Change, 1990-2000

2 Charlotte, NC MSA 56.6%

3 Austin--San Marcos, TX MSA 56.2%

4 Portland—Vancouver--Salem, OR--WA CMSA 50.0%

5 Atlanta, GA MSA 46.2%

6 Denver--Boulder--Greeley, CO CMSA 40.1%

42 St. Louis, MO, MSA -0.7%

45 New Orleans, LA MSA -4.3%

49 Providence, RI MSA -7.0%

Change in College Educated 25-34s

Close-in Neighborhoods Key

Concentration of College-educated 25-34 year-olds

3 miles from CBD

Growth of 25 to 34 year-olds1990 to 2000+30 Percent

Share of25 to 34 year-oldswith a 4-year degree54 Percent

Close-In Neighborhoods Matter

Young adult preference for close-in living relative to other Americans

1980: +10% Greater1990: +12% Greater2000: +30% Greater

Young adult close-in preference increased in all 50 large metro areas between 1990-2000

Green DividendHow urban form and transit enable people to drive less, saving money that gets spent locally, helping foster urban economic growth

Cycling to Work0.00% 0.50% 1.00% 1.50% 2.00% 2.50%

Portland

Akron

Percent of Journeys to Work by Bicycle, 2008

Improving Walkability Adds $10,000 to $30,000 to Home

Values

-20,000 0 20,000 40,000

Arlington

AustinBakersfield

CharlotteChicago

DallasFresno

Jacksonville

Las VegasPhoenix

SacramentoSan Francisco

SeattleStockton

Tucson

Value gain frommoving frommedianwalkability to75th percentilein walkability

Implications of City Vitals

Talent

Bolster the region’s education systemRetain and attract talent

Innovation

Link research to local cluster strengths

Connections

Buzz: Connect the city to the universityPipelines: Connect the city to the world

Distinctiveness

Capitalize on the region’s unique character

Urban Vitality

Build a vibrant urban core that attracts talent and let’s people create “the new good

life”

DUMMY0 20 40 60 80

San Jose

St. Louis

Oklahoma City

18 to 24 Year Olds in College Per 1000 Residents

PatentsOregon Producing More New Knowledge

-

500

1,000

1,500

2,000

2,500

1993 1995 1997 1999 2001 2003 2005 2007Source: US Patent and Trademark Office

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Patents Issued to Oregon Inventors

Patents - BarsPercent of U.S. - Line

Oregon Share of US Patents

Start-ups, spinoffs in high tech

© Heike Mayer. 2002 -- used by permission2002

The universe is expanding

© Heike Mayer. 2008 -- used by permission2008