GLOBAL CITIES INITIATIVEA J O I N T P R OJ ECT O F B R O O K I N GS A N D J P M O R GA N C H AS E

San Diego, CA / March 22, 2012@bruce_katz #globalcities

11.4 millionjobs needed

More Jobs

More Jobs

More Jobs & Better Jobs

A vision for the next American economy

1 2 3

1

2 3

The next economy will be largely metropolitan

1 2 31

2

3

1 2 31 2

3 Metropolitan areas are driving innovation

METROINNOVATION

A vision for the next American economy

1 2 3

1

2 3

2009

Global GDP

19.9%US

21.0%BIC Countries

Source: International Monetary Fund, World Economic Outlook Database, April 2010

2015

Global GDP

26.5%BIC Countries

17.9%US

Source: International Monetary Fund, World Economic Outlook Database, April 2010

Global Metro Population

2009

50%

Global Metro Population

2030

60%

Source: UN Department of Economic-Social Affairs, World Urbanization Prospects, 2009

Economic Performance2010-2011

Highest Performing MetrosLowest Performing Metros

Source: Brookings, Global MetroMonitor, January 2012

Exports Share of GDP2010

13%

United States

29% 22%

15%

30%

Japan

China Canada India

European Union

15%

Source: Brookings analysis of WTO and EIU data, 2011

Transport Networks are Clogged and Congested

Can we get back into the export game?

11%US export growth2009-2010

46%exports share of GDP growth2009-2011

billionUS manufactured exports 2010

$944

Japan

$680$944

United States GermanyFrance

$409

China

$1477

$1091

Top Manufacturing Exporting Countries2010, Billions

Source: World Trade Organization, 2011

What the US makesThe world takes

$358

ServiceImports

ServiceExports

$518

US Service TradeBillions, 2010

$160 billiontrade surplus

Source: World Trade Organization, 2011 (Data reflect Commercial Services)

Service ExportsShare of World Total, 2010

14.0%United States

6.3%Germany

Source: Brookings, Export Nation 2012

“We set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America.”

President ObamaJanuary 27, 2010

Photo: Pete Souza, The White House

Can the U.S. play in thelow carbon revolution?

Sources: Brookings-Battelle Clean Economy Database (2011)

2.7 millionclean economy jobs

1.4 millionbiosciences jobs

4.8 millionIT jobs

2.4 millionfossil fuel jobs

2.7 millionclean economy jobs

Sources: Brookings-Battelle Clean Economy Database (2011), Brookings Analysis of Battelle, BLS, Moody’s Analytics data

$53.9 billionclean economy exports

NationalEconomy

$10,392

Export IntensityYearly Export Earnings per Job

$20,124

Clean Economy

Source: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

Source: EOP “A Framework for Revitalizing American Manufacturing” (2009)Brookings “Accelerating Advanced Manufacturing with New Research Centers” (2011)

90%manufacturing share of patents

68%manufacturing share of R&D

35%manufacturingshare of engineers

Can the U.S. be anInnovation Nation?

FranceSwedenTurkeyUnited KingdomLebanonMexicoCanadaBoliviaSpainSwitzerlandUgandaAlgeriaEstoniaSloveniaSouth AfricaMozambiqueMoroccoUnited StatesHondurasLithuania

Source: National Science Foundation

45thShare of BAs in Science and Engineering

Exports

Imports

1990 2010

$273 billion

$354 billion

Trade in Advanced Technology Products

Source: US Census Bureau, Foreign Trade Statistics

It is time to rediscover our innovation... Moj

o

11%wage premiumin exporting firms

Source: Istrate, Rothwell & Katz, Export Nation (2010)

Greater likelihood of health and retirement benefits in export-intense industries

The U.S. must get smart...

fast

Source: US Census Bureau, 2009 American Community Survey

Hispanics

19%

African Americans

Non-Hispanic Whites

Asians

25%39%

56%

Educational AttainmentAssociate’s Degree or Higher

United States

36%

Source: US Census Bureau, 2009 American Community Survey

Hispanics

19%

African Americans

25%

Educational AttainmentAssociate’s Degree or Higher

The next economy will be largely metropolitan

1 2 31

2

3

Source: Brookings analysis of US Bureau of Economic Analysis data

Service Exports

75%63%

Manufacturing Exports

Population

66%

Top 100 Metro ExportsShare of U.S. Totals

Source: Brookings, ExportNation 2012

Top 100 Metro Exports

Chemical Products

68% 76%

Business/Professional

Services

Computer/Electronic Products

78%

Population

66%

Share of U.S. Totals

Source: Brookings, ExportNation 2012

Top 100 Metro Trade Logistics

U.S. Air Cargo Weight

82% 88%

Foreign Waterborne

Cargo Weight

Airline Boardings

92%

Population

66%

Share of U.S. Totals

Source: Brookings analysis of US Census Bureau, FAA, and PIERS data (2009)

Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA

$16.0 B

Top 100Metros

San DiegoMetro

Export Intensity

9.8% 9.3%

Export VolumeGoods & Services Exports

35.1%services share of exports

San Diego, CA Metro Export Dashboard

65,500Export Jobs

64.9%goods share

of exports

Top Manufacturing SectorsTop Manufacturing SectorsComputers & Electronic Products 18.9%

Transportation Equipment 14.2%

ChemicalProducts 11.3%

Top Services SectorsTop Services SectorsBusiness & Professional Services 11.2%

Royalties 8.8%

Travel & Tourism 7.9%

1 2 31 2

3 Metropolitan areas are driving innovation

METROINNOVATION

Innovate Locally

Establish Export Goals & Objectives

Double exports Support key sectors

Increase global fluency Boost SME exports

Collaborate to Compete

Governments

Philanthropy

Firms

Universities

Market AssessmentTop Export Sectors Top Export Markets

LA Regional Export Council (LARExC)

University ofSouthern California

University of California Los Angeles

City ofLos Angeles

Target industries: aerospace, computer and electronic products, pharmaceuticals, professional services, film and television

The United States Conference of Mayors

“Export Ready” Challenge

Antonio VillaraigosaMayor, Los Angeles

President, US Conference of Mayors

Innovate Locally Advocate Nationally

State Governments

CaliforniaGovernor’s Office of Business & Economic Development

California-China Trade & Investment Office

PennsylvaniaCenter for Trade Development

WashingtonState Export Initiative

State Governments

MinnesotaState Trade Office

Federal Government

MAP-21Moving Ahead for Progress in the 21st Century

Export-Import Bank

Reauthorization

Protect InnovationOpen Markets

Free Trade

AgreementFree Trade AgreementFree Trade

Agreement

Federal Government

Modernize Trade Corridors

Protect InnovationOpen Markets

Free Trade

AgreementFree Trade AgreementFree Trade

Agreement

Federal Government

US Patent & Trademark Office

US Trade RepresentativeIntellectual Property

Enforcement Coordinator

Modernize Trade Corridors

Protect InnovationOpen Markets

Free Trade

AgreementFree Trade AgreementFree Trade

Agreement

Federal Government

US Patent & Trademark Office

US Trade RepresentativeIntellectual Property

Enforcement Coordinator

Modernize Trade Corridors

Council of Economic Advisors Council on Environmental Quality National Security Council

Office of Administration Office of Management & Budget Office of Nat’l Drug Control Policy

Office of Policy Development Office of Science & Technology Policy Office of the US Trade Representative

Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy

Department of Health & Human Services Department of Homeland Security Department of Housing & Urban

Development Department of the Interior Department of Justice

Department of Labor Department of State Department of Transportation Department of Treasury Department of Veterans Affairs

African Development Foundation

Central Intelligence Agency

Commodity Futures Trading Commission

Consumer Product Safety Commission

Corporation for National and

Community ServiceDefense Nuclear

Facilities Safety BoardEnvironmental

Protection AgencyEqual Employment

Opportunity Commission

Export-Import Bank of the United States

Farm Credit Administration

Federal Communications

CommissionFederal Deposit

Insurance CorporationFederal Election

CommissionFederal Housing Finance Board

Federal Labor Relations Authority

Federal Maritime Commission

Federal Mediation and Conciliation Service

Federal Mine Safety & Health Review Commission

Federal Reserve System

Federal Retirement Thrift Investment

BoardFederal Trade Commission

General Services Administration

Inter-American Foundation

Merit Systems Protection Board

National Aeronautics and Space

Administration

National Archives and Records

AdministrationNational Capital

Planning Commission

National Credit Union Administration

National Foundation on the Arts and

HumanitiesNational Labor

Relations BoardNational Mediation

BoardNational Railroad

Passenger Corporation (AMTRAK)

National Science Foundation

National Transportation Safety

BoardNuclear Regulatory

CommissionOccupational Safety &

Health Review Commission

Office of Government Ethics

Office of Personnel Management

Office of Special Council

Overseas Private Investment Corporation

Peace Corps Pension Benefit Guaranty Corporation

Postal Rate Commission

Railroad Retirement Board

Securities and Exchange Commission

Selective Service System

Small Business Administration

Social Security Administration

Tennessee Valley Authority

Trade & Development Agency

US Agency for International Development

US Commission on Civil Rights

US International Trade Commission US Postal Service

EXECUTIVE OFFICE OF THE PRESIDENT

CABINET AGENCIES

INDEPENDENT ESTABLISHMENTS AND GOVERNMENT CORPORATIONS

Office of the US Trade Representative

Export-Import Bank of the United States

Overseas Private Investment Corporation

Department of Commerce

Small Business Administration

Export-Import Bank of the United States

Department of CommerceOverseas Private

InvestmentCorporation

Office of the US Trade Representative

Small Business Administration

International Trade AdministrationUS Census

National Technical Information ServiceSelect USA

Bureau of Industry & SecurityNational Institute of Standards & Technology

Minority Business Development Agency

PROPOSED “BUSINESS USA” REORGANIZATION

Export-Import Bank of the United States

Department of CommerceOverseas Private

InvestmentCorporation

Office of the US Trade Representative

Small Business Administration

International Trade AdministrationUS Census

National Technical Information ServiceSelect USA

Bureau of Industry & SecurityNational Institute of Standards & Technology

Minority Business Development Agency

INTEGRATED METROPOLITAN EXPORT PROMOTION

Local GovernmentsPhilanthropy

FirmsUniversities

State GovernmentFederal Government

Innovate Locally Network GloballyAdvocate Nationally

New York

Sao Paulo

Toronto

Lagos

Sydney

Tokyo

Shanghai

London

ParisFrankfurt

Detroit

Monterrey

Bogota

Johannesburg

Cologne

ChennaiHanoi

Chongqing

Los Angeles

Buenos Aires Durbin

Dubai

Singapore

Seoul

Tianjin

HamburgRotterdam

Xi’anDelhi

Antioch

Tyre

Samarkand

Lanzhou

Baghdad Tehran

Xi’anDelhi

Antioch

Tyre

Samarkand

Lanzhou

Baghdad Tehran

GLOBAL CITIES INITIATIVEA J O I N T P R OJ ECT O F B R O O K I N GS A N D J P M O R GA N C H AS E

San Diego, CA / March 22, 2012@bruce_katz #globalcities