Minnesota’s Workforce Investment and Competitiveness Strategy

L. Burke MurphyWorkforce and Economic Development

Lee W MunnichHumphrey Institute of Public Affairs

Merging WF and EDMERGING WORKFORCE AND ECONOMIC DEVELOPMENT

WIA

Demand Driven

Regional Competitiveness

Innovation Economy

DEED MISSIONTo support the economic success of individuals, businesses, and

communities by improving opportunities for growth.

Transformative investments/milestones over time

Opportunity Merger

Regional & Industry Specialist positions

WIREDFIRST

MnFastTRACRegional Competitiveness

Project

MOC

Economic Comp Focus

•MOC Investment:

’06/’07 – 110 Exec Dev (21 studies)

‘08 – 19 Capstone HHH (5 state studies)

‘10 – 20 Capstone RCM (3 Metro, 3 Rural)

‘10 – 11 Graduate Course (3 Metro studies)

ECONOMIC COMPETITIVENESS FOCUS

Capstone PA 8081(7) Spring 2010

REGIONAL COMPETITIVENESS PROJECT

The need for one, consistent regional voice and vision for the Minneapolis – St. Paul metropolitan region emerged as the

dominant theme

Achieving this unified vision requires bold action by:•leveraging the region’s competitive strengths•relationship building between mayors and CEOs•convening cluster leadership •capitalizing on federal and state opportunities

THE POWER OF REGIONALISM

Furniture.29Building

Fixtures, Equipment &

Services.88

Fishing & Fishing

Products.31

Hospitality & Tourism

.78Agricultural Products

.31 Transportation & Logistics

1.27

Competitiveness and Composition of MSP Metro AreaLinkages Across Traded Clusters, Location Quotients, 2006

Plastics1.02

Oil & Gas.33

Chemical Products

1.15

Biopharma-Ceuticals

.45

Power Generation

.40

Aerospace Vehicles & Defense

.09 Lighting & Electrical

Equipment2.05

Financial Services

1.63 Publishing & Printing

1.99

Entertainment1.14

Information Tech.1.50

Communi-cations

Equipment.49

Aerospace Engines

.21

Business Services

1.26

DistributionServices

1.37

Forest Products

1.01

Heavy Construction

Services.65

Construction Materials

.54

Prefabricated Enclosures

.17

Heavy Machinery

.84

Sporting & Recreation

Goods1.14

Automotive.53

Production Technology

1.60

Motor Driven Products

.97

Metal Manufacturing

1.39

Apparel.26

Leather & Related Products

.63

Jewelry & Precious Metals

.46

Textiles.20

Footwear.04

Processed Food1.07

Tobacco.52

MedicalDevices

3.51

Analytical Instruments

2.04Education & Knowledge

Creation.90

Note: Clusters with overlapping borders have at least 20% overlap(by number of industries) in both directions.

Location Quotient = MSP Industry Job Share / US Industry Job Share

StrongStrongerStrongest

Chosen for:• Employment concentration 3.5x national average• High rate of innovation and entrepreneurship

Key take-away points:• Bold action is needed• Early innovators built locally strong industry• Industry competition fierce• Economic development strategy cannot be ‘business as usual’•Regional customer (physician) demand opportunity by incorporating Mayo

MEDICAL DEVICES

Central Corridor Cluster Project

Economic/workforce development

Collaborative Team

Locally traded clusters

ICICMinneapolis/St Paul

Philanthropic Community

McKnight, Surdna, Ford, Wells Fargo,

St Paul,Minneapolis,

United Way

Corridors of Opportunity

Connecting workers & job growth

HUD & Living Cities

Acclerate MSP

Metropolitan Business Plan•Stimulating the entrepreneurial ecosystem

ULI MN/Regional Mayors Itasca, DEED, Target, Brookings Institution

Regional Cluster Initiative (RIC)•Industry cluster advancement•Medical device cluster board•Regional cluster mapping project

•Regional Council of Mayors, UMN, DEED, BioBusiness Alliance Regional Economic

Development Partnership•Retention, expansion, attraction •Business Bridge

Itasca Project Corporate-led private/public collaboration

Destination 2025

•Growing MN’s bioscience economy - 20-year plan

Bio Business Alliance of Minnesota & Deloitte Consulting

MSP MSP Job GrowthJob Growth

Public/Private/NonprofitPublic/Private/NonprofitPartnershipsPartnerships

13

The Minneapolis Saint Paul Region – The Twin Cities of America’s Midwest

Placeholder

core industry clusters

Top research institutions

Fortune 500 companies

Unique region with major cities

Home to over Million people

14

Corridors of Opportunity Initiative 1

3Regional Cluster Initiative 4

Regional Economic Development Partnership (REDP) 2

Entrepreneurship Accelerator5

Five regional strategies will be key to our success moving forward

15

Regional economic levers of Metropolitan Business Plan

Human capital

Innovation and entrepreneurship

Spatial efficiency

Public and civic institutions

Information resources

Regional concentrations

Regional Competitiveness & Cluster Strategy

• Next steps – integrating w/ MSP Business Plan– Regional Cluster Initiative year two

• Executives of Cities meet Executives of Companies to tap into the competitive advantage of Headquarters

• Medical Device Cluster Board• Case Study

– Corridors of Opportunity – two cluster projects

– National / Regional cluster mapping project