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©2007 ViTAL Economy, Inc.— 1 —
Southern Illinois: Garden of the Gods
Readiness Assessment
Chapter 5: Southern Illinois Competitiveness
January 7, 2008; revised February 17
CONNECT SI
ViTAL Economy AllianceFrank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
©2007 ViTAL Economy, Inc.— 2 —
Table of Contents EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & Importance of Change in SIthe Big Picture & Importance of Change in SI
READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)
1. State, National & Global Trends1. State, National & Global Trends
2. Indigenous Resources & Industry Asset Mapping
3. Enabling Environment
4. Climate of Innovation, Incubation & Entrepreneurship
5. Southern Illinois Competitiveness
6. Regional Perspectives
7. Roadmap to Success
APPENDICES
5.01 Global Market Readiness
5.02 Workforce Availability and Quality
5.03 Knowledge Infrastructure: Assessment
5.04 Location Advantages
5.05 Implications & Recommendations
©2007 ViTAL Economy, Inc.— 3 —
Chapter 5:Southern Illinois Competitiveness
5.01 Global Market Readiness …………………………. 6
5.02 Workforce Availability and Quality ……………….. 11
5.03 Knowledge Infrastructure: Assessment …………..18
5.04 Location Advantages ……………………………… 26
5.05 Implications & Recommendations ……………….. 32
Southern Illinois — "Garden of the Gods"
Chapter 1 of the RA presented global and national trends;Chapter 2, the assets that enable SI to compete and leverage these trends;
Chapter 3, reviewed SI’s enabling environment readiness to capture forecasted growth opportunities; Chapter 4, assessed the SI climate of innovation and entrepreneurship;
Chapter 5, determines SI’s readiness to compete on the national and global stage
©2007 ViTAL Economy, Inc.— 4 —
The Pyramid of Competitiveness
Source: National Competitiveness Council, Annual Report 2006
The NCC defines competitiveness as those factors that impact the ability of SI firms to compete in international markets & provide SI citizens with the opportunity to improve their quality of life
The NCC defines competitiveness as those factors that impact the ability of SI firms to compete in international markets & provide SI citizens with the opportunity to improve their quality of life
5.0 Competitiveness: Introduction
SustainableGrowth
©2007 ViTAL Economy, Inc.— 5 —
Illinois Competitiveness Rankings In Relationship to 50 U.S. States
Beacon Hill Institute 2006 State Competitiveness Report …… 33rd
Milken Institute 2007 Cost of Doing Business Index …………. 18th
Tax Foundation 2008 State Business Tax Climate Index …… 28th
Morgan Quinto Press 2006 Most Livable State Index ……….. 28th
Sources: ViTAL Economy Research and Individual Research Reports as listed above
Economic Outlook State Economic Performance
42 Illinois 48
1 Utah 20
10 Texas 1
2007 American Legislative Exchange Council (ALEC) — Laffer State Economic Competitiveness Rankings
(Beacon Hill, Tax Foundation, Morgan Quinto Press and ALEC ranks best to worst 1-50. Milken Institute ranks worst to best 1-50)
5.0 Competitiveness: Introduction
©2007 ViTAL Economy, Inc.— 6 —
Chapter 5:Southern Illinois Competitiveness
5.01 Global Market Readiness
Southern Illinois — "Garden of the Gods"
The global marketplace is growing four times faster than the SI economy. Emerging and developing countries around the world desire U.S. products and services to support their
improving quality of life. SI should leverage Illinois global trade-experience to expand SI import and exports by $1billion/year. “It is the 4th quarter in SI and time to get in the game!”
©2007 ViTAL Economy, Inc.— 7 —
The Opportunity on the Global Stage
Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005); “21st Century Workforce” (May 2004); IMF
Ave
rag
e A
nn
ual
G
row
th R
ate
%
3.14%
2.19%
1.34%
5.62%
0
1
2
3
4
5
6
AAGR 1977-2001
Worldwide USA State-wide Southern Illinois
The World economy is growing at
four-times the rate of SI
AAGR = Average Annual Growth Rate
Accessing the Global Economy is the Key to SI Economic GrowthAccessing the Global Economy is the Key to SI Economic Growth
5.01 Global Market Readiness
©2007 ViTAL Economy, Inc.— 8 —
Illinois Participation in U.S. Global Trade
Top five export nations for Illinois:
Canada Mexico U.K. Japan Australia
3.5%3.6%3.7%3.8%3.9%4.0%4.1%4.2%
2003 2004 2005 2006
Illinois % Share of U.S. Trade
0
2,500
5,000
7,500
10,000
12,500
Canada Mexico
United Kingdom Japan
Australia Germany
Top Foreign Export Markets for Illinois(2006 $ million)
Source: Foreign Trade Division, U.S. Census Bureau, 10/07
• U.S. Top Five Total Trade Partners
1. Canada – 18.2%2. China – 12.4%3. Mexico – 11.2%4. Japan – 6.7%5. Germany – 4.6%
Top five export nations for the U.S.:
Canada Mexico Japan China UK
Largest and fastest growing country market in the world is not in Illinois’
top five export markets!
Largest and fastest growing country market in the world is not in Illinois’
top five export markets!
5.01 Global Market Readiness
©2007 ViTAL Economy, Inc.— 9 —
SI Represents Less Than 1% of Illinois Global Trade
Illinois Export Products Value %
Machinery Manufactures $11.7B 27.8%
Computers & Electronics $5.4B 12.8%
Transportation Equipment $4.7B 11.1%
Electronic Eq., Appliances & Parts $2.8B 6.6%
Processed Foods $1.9B 4.5%
Fabricated Metal Products $1.6B 3.8%
Misc. Manufactures $1.5B 3.5%
Plastic/Rubber Products $1.0B 2.3%
Crop Productions $710M 1.7%
Printing & Related Products $424M 1.0%
Oil/Gas Extraction $296M .69%
Petroleum/Coal Products $110M .26%
Wood Products $71M .17%
Beverage/Tobacco Products $50M .12%
Mining $38M .09%
Animal Production $22M .05%
Fishing, Hunting, Trapping $2M .00%
Illinois Export Facts
• Total value Illinois exports 2006 = $42.08 billion
o 29.2% went north to Canada ($12.3B)
o 8.8% went south to Mexico ($3.7B)
Source: Office of Trade & Industry Information, Manufacturing and Services International Trade Administration, U.S. Department of Commerce
Southern Illinois Export Analysis
GSP** Export Value% of GSP
Illinois $560 billion $42.08 billion 7.5%
SI $17.6 billion $420 million 2.4%
SI as a %
3.47% of IL GSP
1% of State exports
SI exports as a % of GSP are less than 1/3 of Illinois = $1 billion gap/year
SI exports as a % of GSP are less than 1/3 of Illinois = $1 billion gap/year
5.01 Global Market Readiness
**GSP = Gross State Product (similar to GDP)
©2007 ViTAL Economy, Inc.— 10 —
SI Global Market Doors are Open
Illinois ranks #5 in U.S. global trading in 2006 Illinois exports have grown by 64% from 2002-2006 70% of all U.S. trade goes through the State of Illinois Direct export values were 7.5% of Illinois GSP in 2006 Exports support 448,400 jobs in Illinois, approx. 7.5% of the workforce In addition to top U.S. trade partners (slide 8), the fastest growing
export markets 2002-2006 are: Argentina, Turkey, Chile, Switzerland, and Taiwan
• SIUE International Trade Center serving 45 Southern Illinois Counties• International Trade Missions, Annual Export Conferences
• International Market Analysis, Identification of Foreign Buyers• Export Finance Assistance
• SIUE International Trade Center serving 45 Southern Illinois Counties• International Trade Missions, Annual Export Conferences
• International Market Analysis, Identification of Foreign Buyers• Export Finance Assistance
Source: DCEO Office of Trade and Investment, Southern Illinoisan, October 2007, SIUE International Trade Center
Global Market Initiatives & Resources Available to SI:
5.01 Global Market Readiness
©2007 ViTAL Economy, Inc.— 11 —
Chapter 5:Southern Illinois’ Competitiveness
5.02 Workforce Availability and Quality
Southern Illinois — "Garden of the Gods"
In a “World is Flat” Economy, a region’s success is no longer measured on where you compete, but rather how you compete. Highly skilled and educated human resources will be the key to
economic prosperity for the foreseeable future.
©2007 ViTAL Economy, Inc.— 12 —
The Global Workforce BindThe quantity and quality of SI’s workforce are the most important and immediate factors impacting economic growth, particularly given the shift from agriculture and manufacturing to knowledge based
economy (ref: Section 1.04)
• Demographic developments are leading to fewer people in the prime workforce age group
• Flattening and declining birthrates around the world are reducing workforce supply
• Job opportunities for low skilled workers are declining everywhere
• Expanding economic development worldwide is demanding more products and services
• Technology progress is demanding an increase in quality and quantity of workforce
• Global competition is increasingly generating greater demands for quality workers
Source: Confronting the Coming Talent Crunch;
What is Next? Global Manpower Report
5.02 Workforce Availability & Quality
The Connect SI initiative will exacerbate these shortfalls and must be addressed
The Connect SI initiative will exacerbate these shortfalls and must be addressed
©2007 ViTAL Economy, Inc.— 13 —
15-64 Population
EmployedParticipation
Rate
Illinois 8,207,764 6,230,617 76%
SE Region 32,161 22,252 69%
GE Region 164,134 108,267 66%*
GW Region 31,980 22,721 71%
S5 Region 35,887 22,528 62.8%*
SI Region 264,162 175,768 66.5%
Labor force participation rate: 15-64 age population/total employed
Source: 2000 U.S. Census; ** Adjusted, not including prison populations
•SI: more than 10% below Illinois in labor force participation rate
Low Labor Participation Rates
Challenge SI Workforce Availability
National Average 69.6%
10% = 24,995 individuals that are available to be in the workforce, but for one reason or another, they are not employed or seeking employment
10% = 24,995 individuals that are available to be in the workforce, but for one reason or another, they are not employed or seeking employment
5.02 Workforce Availability & Quality
Quantity Gap
Quantity Gap
©2007 ViTAL Economy, Inc.— 14 —
SI Same Trend Growth SI Working Age Population Growth Potential Shortfall
13,758 -1,855 15,613
Connect SI Job Goals COI Est. Increase in Labor Force by 2012 Potential Workforce Shortfall
43,298 24,248(70.9% participation of 34,198 COI population projection)
19,050
TOTAL Potential Workforce Shortage: 34,663
Franklin, Jackson, Jefferson, Perry, Williamson Projected Worker Shortage 2010
Source: 21st Century Workforce: Southern Illinois, May 2004
5.02 Workforce Availability & Quality
Connect SI Strategy Magnifies the Possible Worker Shortage in SI
Quantity Gap
Quantity Gap
©2007 ViTAL Economy, Inc.— 15 —
SI’s Talent Supply/Demand Disconnect Is Worse Than Global Disconnect5.02 Workforce Availability & Quality
Quantity& Quality
Gap
Quantity& Quality
Gap
Source: Confronting the Coming Global Talent Crunch, What’s Next? Manpower 2006
Number of people of available/required by skill level
$/hour & skills
Lack of resources creates tension on the
high-skills market
Over-supply of low-skills resources creates
unemployment
Supply of workers
Demand for workers
Developed Economies Global
Labor Market
Men Women
Pronounced over-supply of low-skilled
labor
Southern Illinois Labor Market
SI opportunity to create amore highly skilled Workforce
Getting both the right supply and right skills is essential
©2007 ViTAL Economy, Inc.— 16 —
The share of occupations that only require OJT is smaller in Southern Illinois
than in the U.S.
The share of occupations that only require OJT is smaller in Southern Illinois
than in the U.S.
Tomorrow’s occupations will require much more education and training than yesterday’s occupations
Tomorrow’s occupations will require much more education and training than yesterday’s occupations
Southern Illinois Comparison to the U.S.
% of tomorrow’s occupations requiring at least a bachelor’s degree in Southern
Illinois is higher that the U.S.
% of tomorrow’s occupations requiring at least a bachelor’s degree in Southern
Illinois is higher that the U.S.
Southern
Illinois
United States
32% 28%
Southern
Illinois
United States
74% 94%
Implication: the quality of the SI workforce in the future needed to fill forecast jobs is higher than the U.S.
Implication: occupations in SI that only require OJT are declining; thus the need for increased emphasis on training and retraining of incumbent workers in the region as more get displaced
Source: 21st Century Workforce: Southern Illinois, May 2004
SI Future Economy Will Require Higher Skilled Workers
5.02 Workforce Availability & Quality
Quality Gap
Quality Gap
©2007 ViTAL Economy, Inc.— 17 —
Job Training Projections for SI
Source: The State of Working Illinois, 2005
44% of the new job growth requires postsecondary vocational training or higher level of education
44% of the new job growth requires postsecondary vocational training or higher level of education
SI Workforce Training Scenario
SI Workforce Training Scenario
5.02 Workforce Availability & Quality
SI Jobs Projection:
= 43,29844% requiring
postsecondary or higher education
= 19,051
SI Jobs Projection:
= 43,29844% requiring
postsecondary or higher education
= 19,051
Quality Gap
Quality Gap
©2007 ViTAL Economy, Inc.— 18 —
Chapter 5:Southern Illinois Competitiveness
5.03 Knowledge Infrastructure: Assessment
Southern Illinois — "Garden of the Gods"
Knowledge infrastructure is comprised of public and private organizations and institutions whose role is the production, maintenance, distribution, application and protection of knowledge. This
infrastructure is critical to building and sustaining a viable innovation economy.
©2007 ViTAL Economy, Inc.— 19 —
Knowledge Infrastructure: Roles
Regional knowledge infrastructures have three primary roles in building a robust and growing knowledge economy
1. Creating Knowledge Education and skills — programs that build, retain and/or acquire skills R&D — programs that support innovation through investment
2. Sharing Knowledge Build critical mass and linkages — programs which increase collaboration Strengthen information & communication networks — expand ICT
systems
3. Using Knowledge Commercialization processes — improve prospects for commercialization Develop clusters — programs to strengthen existing and build emerging
clusters Attract & secure Investments — programs to increase investment capital
for R&D Develop int’l linkages — programs to facilitate international R&D linkages
Source: The Role of Knowledge Infrastructure in Regional Economic Development, Canadian Journal of Regional Science 2005 and Western Australian Technology & Industry Advisory Council, 2003
5.03 Knowledge Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 20 —
SI Knowledge Infrastructure Assets Are Plentiful
SIUC’s Four R&D Pillars Energy & Environment
Biotechnology
Materials Technology
Neuroscience
Small Business Development Centers Rend Lake College
Shawnee College
Southeastern Illinois College
John A. Logan College
SIUC and SIUE
Illinois Eastern Colleges
SI Business Incubators SIUC Business Incubator
West Frankfort Business Incubator
DRA Mounds Incubator
Many Entrepreneurs & Innovators
across SI
Illinois Entrepreneurship Network• Southern Illinois Entrepreneurship Center
• Illinois Small Business Development Ctr
• Illinois Manufacturing Extension Center
• Southern Tech
• Illinois Procurement Technical Asst Ctrs
• Technology Enterprise Centers
• International Trade Centers
• Camp CEO Programs
• Challenge Grant Program
SIU Transportation Education Center
SIU 20+ Research Centers Dixon Springs Agriculture Research Ctr
Illinois Clean Coal Institute
National Corn-to-Ethanol Research Ctr
SIU Business Research Parks
SIUC Coal Research Center
SIU School of Medicine
Source: ViTAL Economy Research
5.03 Knowledge Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 21 —
Education Attainment is the Foundation for a Strong Workforce
SI trails Illinois in % high school completion
SI’s workforce with advanced degrees is less than half that of Illinois
This low level of educational attainment is a major challenge to compete in a global economy 0% 25% 50% 75% 100%
S5SEGWGEIL
0% 10% 20% 30%
S5SEGWGEIL
Population with High School or Higher in SI Regions and IL
Population with Bachelor Degree or Higher in SI Regions and IL
Source: ViTAL Economy Research
• SI’s “creating knowledge” infrastructure is in place, but results
are not satisfactory
• Only 12% of SI population has a bachelors degree or higher when SI job-growth trends require 32% with
bachelor or higher degrees!
• SI’s “creating knowledge” infrastructure is in place, but results
are not satisfactory
• Only 12% of SI population has a bachelors degree or higher when SI job-growth trends require 32% with
bachelor or higher degrees!
5.03 Knowledge Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 22 —
Current Programs Limit Growth5.03 Knowledge Infrastructure: Assessment
Source: Adapted from Lalkaka, R. (1996)
Business Development Process
Idea/Need
Business Creation Employment
SupportiveNationalPolicies
University-Community
Linkage
InternetTechnical
Assistance
InternationalBusinessLinkages
InitialGovernment
Funding
TechnicalInfrastructure
MarketOpportunities
SI Linkages to National andInternational
Support Resources
EntrepreneurialSelection &Graduation
RigorousBusinessStrategy
Development
LocalConsultants
ManagerTraining
TenantFinance
ChampionSponsors
Board
ProfessionalServicesNetwork
SI Support Linkages for
Entrepreneurship
GROWTH?LimitedGrowth
©2007 ViTAL Economy, Inc.— 23 —
SI Utilization of Knowledge Needs Improvement
Technology Transfer Assessment Criteria Rating
A strong and focused research base feeds the pipeline for commercialization
Federal R&D funding provides a critical base for technology transfer and commercialization efforts
Champions catalyze most successful R&D-based economic development
The entrepreneurial culture of a region is key to its technology transfer success
Networking is an integral part of the culture
Early-stage capital is a critical ingredient in launching regional start-ups
Innovation centers provide a focal point for technology-based activities
Incubators and research parks are important in areas not known for technology
Private corporations and foundations play a major role
Focused long-term vision, investment, leadership and commitment are in place
= Weak to None = Improving = Average = Good = Strong
5.03 Knowledge Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 24 —
SI Knowledge Infrastructure Assessment
Readiness Criteria Rating Assessment Rationale
Knowledge Infrastructure - SI presence of knowledge assets
K-infinity educational infrastructure assets are robustSignificant R&D centers of excellence are available
Create Knowledge - build, retain and/or acquiring skills
Knowledge is not being created at level required for workforce
Create Knowledge - via R&D programs that support innovation
R&D program investments are not promoting innovation
Sharing Knowledge - via programs that increase collaboration
Inadequate linkage of knowledge sharing resources
Using Knowledge - improve prospects for commercialization
Commercialization processes are very weak
Using Knowledge - develop emerging and existing clusters
Cluster development is currently non-existent
Using Knowledge - increase investment capital for R&D
Investment capital has been very limited in region
Using Knowledge - facilitate international R&D linkages
International linkages have potential, but are not being leveraged
5.03 Knowledge Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 25 —
Country # Country #
India 346 Malaysia 14
China 160 Pakistan 14
Japan 141 Turkey 13
South Korea 96 Bangladesh 12
Taiwan 71 Jordan 12
Thailand 27 Nigeria 12
Cyprus 24 Brazil 11
Canada 23 France 11
Nepal 16 Kenya 11
Saudi Arabia 15 Columbia 10
Germany 14 Morocco 10
SIUC Student Country of Origin
(2006)
•21,003 total students
•1,149 from 110 countries
•5.5% of student body
•National average 3.9%
SIUC Student Country of Origin
(2006)
•21,003 total students
•1,149 from 110 countries
•5.5% of student body
•National average 3.9%
SIUC Top 20 Student Country of Origin Other Than U.S.
SIUC Top 20 Student Country of Origin Other Than U.S.
Source: SIUC
SIUC Asset: Foreign Students
SIUC top three foreign students country of origin are in the top five Illinois
trading partners
SIUC top three foreign students country of origin are in the top five Illinois
trading partners
5.03 Knowledge Infrastructure: Assessment
©2007 ViTAL Economy, Inc.— 26 —
Chapter 5:Southern Illinois Competitiveness
5.04 Location Advantages
Southern Illinois — "Garden of the Gods"
“Location, location, location” is a historic axiom of economic development. Every community possesses distinct geographic, natural and proximity advantages. This Section will briefly review the location of advantages, which SI should leverage in relationship to trends, opportunities and
assets described in Chapters 1-4.
©2007 ViTAL Economy, Inc.— 27 —
SI Location Advantages: Intro
Southern Illinois: Heartland location equidistant to 2/3 of U.S. markets
Central to economic expansion of the Americas
Positioned to be an easily accessible workforce development center for
addressing 10 million worker global talent shortage
Well positioned geographically and asset-rich to attract affluent seniors —
77 million baby boomers retiring
Within a four hour drive time of 11+ million regional tourists
Now the center of a rail network stretching to the Atlantic, Pacific and Gulf of
Mexico — from regional to all of North America
Within a day’s drive to many of the fifty fastest growing U.S. cities
Access to major rivers and recreational lakes
5.04 Location Advantages
SI sits on the ultimate U.S. logistics sweet-spot, the intersection of major N-S and E-W trade routes
SI sits on the ultimate U.S. logistics sweet-spot, the intersection of major N-S and E-W trade routes
©2007 ViTAL Economy, Inc.— 28 —
SI Competitive Advantage: Location (1 of 2)
Most vacations are now short — proximity and ease of access are key
Major nearby hubs include: Indianapolis, IN St. Louis, MO Memphis, TN Louisville, KY Nashville, TN
SI has airport assets that facilitate Southern Illinois becoming a tourism destination
= Potential Gateway
to Southern IllinoisSource: Map Point and Federal Aviation Administration
How will SI leverage this competitive
advantage?
How will SI leverage this competitive
advantage?
5.04 Location Advantages
Grey Area Shows 4-hour driving time from Marion
Population within 4-hour drive: 11,303,789
Marion
©2007 ViTAL Economy, Inc.— 29 —
0.9% U.S. population growth in 2006
California, Texas, Florida contained most of the fastest growing centers in the U.S.
Several centers within a day’s drive of SI are included in 50 fastest-growing centers for 2000-2006 at growth rates of 12% to 98% (see Red Stars)
Source: U.S. Census Bureau and Map Point
Note: Map shows calculated 8 hour driving time from SI
SI Competitive Advantage: Location (2 of 2)
SI Relationship to Nearby 50 Fastest Growing U.S. Cities
5.04 Location Advantages
How will SI leverage this competitive
advantage?
How will SI leverage this competitive
advantage?
©2007 ViTAL Economy, Inc.— 30 —
SI’s Temperate Climate is an SI Competitive Advantage
Greater Egypt: Avg winter temp 32°F Avg summer temp 76°F
Greater Wabash: Avg winter temp 35°F Avg summer temp 82°F
Southeastern: Avg winter temp 32°F Avg summer temp 75°F
Southern Five: Avg winter temp 35°F Avg summer temp 78°F
Source: www.growit.com
USDA Zone
Average Annual
Minimum Temperate
Zone 4a -25 to -30
Zone 4b -20 to -25
Zone 5a -15 to -20
Zone 5b -10 to -15
Zone 6a -5 to -10
Zone 6b 0 to -5
Zone 7a 5 to 0
Zone 7b 10 to 5
5.04 Location Advantages
How will SI leverage this competitive advantage?
How will SI leverage this competitive advantage?
SI has both an attractive climate for retirees & long-growing season
SI has both an attractive climate for retirees & long-growing season
©2007 ViTAL Economy, Inc.— 31 —
Average Annual Precipitation
Greater Egypt: Avg rainfall = 42 inches Avg snowfall = 12 inches
Greater Wabash: Avg rainfall = 28 inches Avg snowfall = 9 inches
Southeastern: Avg rainfall = 42 inches Avg snowfall = 13 inches
Southern Five: Avg rainfall = 45 inches Avg snowfall = 11 inches
Source: DCEO
5.04 Location Advantages
How will SI leverage this competitive advantage?
How will SI leverage this competitive advantage?
©2007 ViTAL Economy, Inc.— 32 —
Chapter 5:Southern Illinois’ Competitiveness
5.05 Implications & Recommendations
Southern Illinois — "Garden of the Gods"
©2007 ViTAL Economy, Inc.— 33 —
SI Competitiveness: VE Assessment
Global Market Readiness
Climate for Investment Attraction
Workforce
Knowledge Infrastructure
Sharing and Utilization of Knowledge Assets
Location Advantages
Connectivity Literacy (see Chp 3, Slides 34-48)
WEAK
IMPROVING
GOOD
AVERAGE
STRONG
The lack of Global Market Readiness is holding back the Region from leveraging its Knowledge Infrastructure and Location Advantages to build a high growth economy
The lack of Global Market Readiness is holding back the Region from leveraging its Knowledge Infrastructure and Location Advantages to build a high growth economy
5.05 Implications & Recommendations
©2007 ViTAL Economy, Inc.— 34 —
SI Competitiveness: Implications
Limited Global Market Participation $1 billion export gap: 2.4% of SI GRP vs. 8.4% of the Illinois GSP participates in the global economy Global market niches exist in energy technologies, bio-ag, international innovation & incubation, logistics, etc. State level international trade expertise needs to be better leveraged
Solid and Improving Workforce SI’s 66.5% labor participation rate challenges the Region’s growth opportunities The incumbent workforce has a strong work ethic and desire to stay in SI SI’s workforce development assets are positioned to help address the projected U.S.10 million worker shortfall
Robust Knowledge Infrastructure SI has a broad array of knowledge assets, but needs to better align towards a common strategic direction Education Center of Excellence could coalesce regional KBE resources to pursue global workforce opportunity
Strong Location Advantages SI is in a geographic “Sweet Spot” to take advantage of major trends SI’s location advantage benefits Tourism, Energy, and Transportation, Logistics & Warehousing sectors
Improving Connectivity Literacy SI has begun to transform its connectivity infrastructure, but has low connectivity awareness and literacy Link NP-COI with all industry clusters to identify applications that increase competitiveness and market-share
Only a Unified Region can leverage SI’s potential critical massin becoming a formidable force on the Global Stage
Only a Unified Region can leverage SI’s potential critical massin becoming a formidable force on the Global Stage
GRP = Gross Regional Product; GSP = Gross State Product
5.05 Implications & Recommendations
©2007 ViTAL Economy, Inc.— 35 —
SI Competitiveness: Recommendations
Focus on economic growth opportunities that leverage its regional strengths and de-emphasize state weaknesses as shown by Illinois poor rankings in multiple competitiveness reports
Develop a specific global export strategy that focuses on closing the $1 billion trade gap versus Illinois trade levels
Develop education center of excellence connecting knowledge infrastructure assets to enable SI to address part of the ten million global worker talent crunch
Develop an industry-led transportation, logistics & distribution industry cluster to leverage SI location advantages
Develop an industry-led tourism cluster that will connect SI tourism assets to take advantage of SI’s unique market location
Implement regional marketing strategies to improve connectivity literacy
5.05 Implications & Recommendations