CEDP SNAPSHOTS OF PORT HURON’S KNOWLEDGE ECONOMY Rex L. LaMore, Faron Supanich-Goldner, Jimi Gandhi, John Melcher, and Kyle Wilkes Community & Economic

CEDP

SNAPSHOTS OF PORT HURON’S KNOWLEDGE

ECONOMY Rex L. LaMore, Faron Supanich-Goldner,

Jimi Gandhi, John Melcher, and Kyle Wilkes

Community & Economic Development Program

Michigan State University

April 21, 2005

With support from the U.S. Department of Commerce, Economic Development Administration

Knowledge Economy IndicatorsSt. Clair County

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Mission

The Mission of the MSU-EDA University

Center is “to promote and support the

expansion of economic development efforts

in the State of Michigan through the

provision of research, training, and technical

assistance to entrepreneurs and economic

development agencies, private sector

leaders and faith-based and community-

based organizations serving distressed

communities.”

MSU-EDA University Center

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Knowledge Economy

The Knowledge Economy is the :

“Application of new methods or new technologies to the production or distribution of goods and services”

MSU’s Knowledge Economy Research Team, 2004

CEDP

Knowledge Economy

WHAT HAS CHANGED?

• Knowledge and information drive economic growth and development

• Occupations and industries shift rapidly in response to changing means of production and distribution

• Place still matters, though somewhat differently

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WHY DOES IT MATTER?

• Competition is increasingly intense and global

• Change is ever-more rapid

• Traditional techniques and tools for economic development are insufficient

Knowledge Economy

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WHY DOES IT MATTER?• Statewide average annual wages

Knowledge Economy occupations: $ 61,158

All other occupations: $ 33,141

• Overall job growth projections (2000-2010)U. S. 15.2 % Michigan 9.4 %

Expected growth in Knowledge Economy jobs

U. S. 21.0%Michigan 13.1%

Knowledge Economy

CEDPINDICATORS

OF THE KNOWLEDGE

ECONOMY

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The Progressive Policy InstituteNew Economy Project

State New Economy Index 2002

Source: www.ppionline.org

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23

17 30

13

100th – 76th percentile75th-51st percentile50th-26th percentile25th-1st percentile

2002 State New Economy Index Rankings

36

40

Source: www.ppionline.org

PPI New Economy Index Rankings

for Great Lakes States, 2002

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Michigan State UniversityKnowledge Economy Research

Group

Goal: To apply PPI’s New Economy Indexmeasures to Michigan counties

Sixteen indicators in 5 categories:• Knowledge Jobs• Digital Economy• Innovation• Globalization• Dynamism

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Knowledge Jobs Indicators

Michigan Knowledge Economy Index

• Information Technology Jobs

• Managerial and Professional Jobs

• Workforce Education

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Digital Economy Indicators

• Internet Use

• Cable Modem Access

• Digital Government


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Innovation Indicators

• High-Tech Jobs

• Venture Capital

• Patents

• Engineers

• Bioscience Jobs


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Globalization Indicators

• Firms with Foreign Parents

• Exporting Firms


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Dynamism Indicators

• Manufacturing Job Change

• Sole Proprietorship Job Change

• Service Sector Job Change


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LeadersContendersFollowersLaggards

Michigan Knowledge Economy IndexOverall County Rankings

Source: MSU Knowledge Economy Research Group

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Knowledge Economy Overall Index


11. Macomb

35. Lapeer

43. St. Clair

62. Sanilac


St. Clair and Neighboring Counties

4311

35

62

CEDP LeadersContendersFollowersLaggards

Knowledge Economy IndicatorsEast Central Michigan RegionKnowledge Jobs

More than 25 %20 - 2515 - 20Less than 15

Percent over age 25 with college

degree

WorkforceEducation

Managerial & Professional Jobs

30 - 50 %25 - 3023 - 2519 - 23

Percent of workforce

More than 52.5 – 5.01.5 - 2.5Less than 1.5

IT jobs per 1000 jobs

InformationTechnology Jobs


4715

37

59

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Knowledge Economy IndicatorsEast Central Michigan RegionDigital Economy


More than 30 %19 – 309.5 – 19Less than 9.5

Percent of local governmentswith websites

DigitalGovernment

More than 64 %60 - 6356 - 60Less than 55

Percent online at least

three days/week

Internet Use

Near completeModerateModestVery little

Geographic Coverage

Cable Modem Access


4216

18

58

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Knowledge Economy IndicatorsEast Central Michigan RegionInnovation


BioscienceJobs

More than 85065 - 8500 – 65None

Number of jobs

More than 31.5 – 3.0.75 – 1.5Less than .75


High Tech Jobs

Engineers

4.3 – 15.83.0 – 4.31.4 – 2.9Less than 1.4



Patents

More than 808 - 800 - 8None

Per 10,000 pop.

More than ThreeTwo or ThreeOneNone

Number of Firms

VentureCapital 52

16

47

67

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Knowledge Economy IndicatorsEast Central Michigan RegionGlobalization


Firms WithForeign Parents

More than 2510 - 241 – 9None

Number of firms

Firms That Export

50 - 100010 - 502 - 100 - 1

Number of firms


144

22

36

CEDP

Knowledge Economy IndicatorsEast Central Michigan RegionDynamism Index


Employment change – service jobs

More than 18 %10 - 185 - 100 - 5

Percent gain or loss 1997-2000

Employment change – manufacturing jobs

More than 18 %10 - 185 - 100 - 5


Employment change – sole proprietorships

More than 18 %10 - 185 - 100 - 5



6667

53

46

CEDPINDICATORS OF

KNOWLEDGE

ECONOMY

OCCUPATIONS

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• Office and administrative support • Farming, fishing and forestry • Production • Legal

• Life, physical and social science

• Architecture and engineering • Protective Service • Art, design, entertainment, sports and media • Installation, maintenance and repair • Community and social services • Business and financial

• Building/grounds cleaning & maintenance • Transportation and material moving • Healthcare support

• Management • Construction and extraction

• Personal care and service

• Healthcare practitioners and technical • Food preparation and serving related

• Computer and mathematical • Sales and related

• Education, training and library

Standard Occupation Groups(Knowledge Economy occupations in

bold)

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Source: www.michlmi.org

Projected Number of Jobs Added, 2000 - 2010

Occupations with highest projected number of new jobs in Michigan

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Sales and related occupations

Computer and mathematicaloccupations

Healthcare practitioners andtechnical occupations

Food preparation and servingrelated occupations

Transportation and materialmoving occupations

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Projected Number of Jobs Added, 2000 - 2010

Projected new jobs, Knowledge Economy occupations in Michigan

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Life, physical and social scienceoccupations

Architecture and engineeringoccupations

Management occupations


Education, Training and libraryoccupations

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Projected Rate of Job Growth, 2000 - 2010

Occupation groups with highest projected growth rates U.S. and Michigan comparison

0% 10% 20% 30% 40% 50% 60% 70% 80%


Healthcare supportoccupations

Personal care and serviceoccupations

Art design entertainment,sports and media occupations

Life, physical and socialscience occupations

U.S.

Michigan

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Projected Rate of Job Growth, 2000 - 2010

Projected job growth rate for Knowledge Economy occupations U.S. and Michigan comparison

0% 10% 20% 30% 40% 50% 60% 70% 80%

Life, physical and social scienceoccupations

Architecture and engineeringoccupations

Management occupations

Education, Training and libraryoccupations


U.S.

Michigan

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Size of bubbles = ratio of all employees 2000

= Knowledge Economy groups

= All other occupation groups


Size and Growth of Knowledge Economy Occupation Groups in

Michigan

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Ratio of all employees 2000

Pro

ject

ed G

row

th R

ate

2000

-201

0

Computer and Mathematical

Life, Physical &Social Sciences

Education, Training & Library

Management Architecture &Engineering

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ADAPTING PLANNING

PRACTICE TO THE KNOWLEDGE

ECONOMY

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Knowledge Jobs

Planning for Knowledge Jobs

In the knowledge economy, an educated citizenry is critical to success. If a community does not get smarter it will get poorer.

A community should provide educational opportunities across the life-span of the workforce.

Begin with early childhood development with a seamless transition to k-12, higher education, career development and retraining programs.

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Establish a business/education roundtable as a regular forum for businesses to discuss education and training needs and for education to discuss program challenges, curriculum options and resources

Develop “technology education centers” designed to train participants on relevant technologies of interest to the local community.

Recapture high school graduates that leave the area for higher education through strategies such as forgiving student loans, promote local alumni networks, and welcome home events.

Knowledge Jobs

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Innovation

Planning for Innovation

Establish a technology business incubator

Create flexible investment funds to make capital available to emerging enterprises/technologies/entrepreneurs

Support an entrepreneurial environment that values risk takers and innovators

Provide broadband access

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Host business/community “innovation fairs”

Provide patent assistance

Establish links to higher education technology centers in your region to facilitate the location/expansion of innovative enterprises to your community

Establish a “speakers bureau of informed community leaders

Create a “technical assistance network”

Innovation

CEDP

Digital Economy

Planning for a Digital Economy

Link homes, schools, businesses and government to the global internet and to each other.

Create a community/business/government web presence

Provide broadband access where currently not available

Provide wireless access where appropriate

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Provide non-formal adult education programs for residents on the global communications network

Map your community’s communications network

Use digital communications to support democratic governance in you community.

Provide technical and financial assistance for residents and businesses to improve and expand their access to the digital economy

Require “open capacity” on new fiber networks

Digital Economy

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Globalization

Planning for Globalization

Facilitate export trade and global markets for existing products and services in your community (remember Canada is a Michigan neighbor)

Identify existing exporting firms and identify related local industries that may also export to similar markets

Consider attracting foreign based firms to your community in strategic and complementary industries

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Link to Michigan foreign trade zones.

Identify and describe your communities global transportation capacity and share that with your local businesses.

Identify and celebrate local ethnic/cultural heritages and explore possible international social capital opportunities.

Conduct an “industry cluster analysis” assessing for global opportunities

Organize training for key stakeholders

Globalization

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Dynamism

Planning for Dynamism

Establish effective communications among firms to anticipate change and develop responses.

Supportive transition strategies for your communities workforce.

Identify “new enterprises” in your community to assess potential emerging trends in your local economy.

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Implement “safety net” strategies for displaced workers and families to reduce personal stress and improve retention of skilled workers.

Run business “ birth announcements” in the local paper.

Support strong entrepreneurial development programs to help new businesses form and expand locally.

Provide access to a variety of types of capital for businesses.

Dynamism

CEDP

Build or rebuild “flexible space” environments that can be reused for a variety of production and services.

Support local business incubator programs.

Identify leakages in the local economy that may provide opportunities for business development.

Examine alternative forms of business ownership in potential business closures.

Dynamism

CEDP

www.smartmichigan.org

Michigan State University

Community & Economic Development Program

www.cedp.msu.edu

Knowledge Economy SnapshotSt. Clair County

Documents

CEDP SNAPSHOTS OF PORT HURON’S KNOWLEDGE ECONOMY Rex L. LaMore, Faron Supanich-Goldner, Jimi Gandhi, John Melcher, and Kyle Wilkes Community & Economic