Bradley W. Whitehead
Fund for Our Economic Future
Northeast Ohio
Economic Transformation and Competitiveness in the
Next Economy
Fund for Our Economic Fund for Our Economic FutureFuture• 100+ philanthropies united
• $75 million
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
115
110
105
100
95
90
Em
plo
ymen
t In
dex
NE Ohio
United States
Northeast Ohio Job Northeast Ohio Job PicturePicture
Employment, 1997 – 2007 1997 = 100
Year
Job Growth across the Job Growth across the United StatesUnited States
An Economic StormAn Economic Storm
Transformation
• Elements– Regional– Integrated– Collaborative
• Obstacles– Economies that are:
• Politically fragmented• Work silos• Geographic boundaries
• We know what we need to do
• We have a regional economic competitiveness agenda to get there
• While money matters, it’s smarter investments not bailouts
• Must scale, align resources
We’re Fighting BackWe’re Fighting Back
Can a Leopard Change Can a Leopard Change Its Spots?Its Spots?
Fund for Our Economic Fund for Our Economic FutureFuture• Why Philanthropy?
– Limited self interest– Risk capital– Constancy and stability– Convening
Members of the Fund
• More than 100 foundations, organizations and philanthropists from across the 16 counties of Northeast Ohio
Where We’re GoingWhere We’re Going
• Job growth
• Income growth
• Concentrated poverty
1997-2007
1997-2007
Percentage of Population Below Poverty
Advance Northeast Ohio
• Aligning assets and investments to address strategic economic priorities:– Business growth– Human capital– Racial and economic inclusion– Government collaboration and
efficiency
Entrepreneurial ActivityEntrepreneurial Activity
• 2002: Entrepreneur magazine ranks community 61st out of 61
• 2009: Entrepreneur magazine ranks Youngstown one of the top ten places to be an entrepreneur
• 2010: Fast Company magazine ranks Cleveland a “fast city” for entrepreneurial climate
It Takes a VillageIt Takes a Village
• Shared understanding of need
• Many players pursued– Universities/hospitals, angel investors,
venture firms, professional firms, civic leaders
• Government had critical role– Issue 1 renewal– The Ohio Capital Fund– Funding from EDA
Entrepreneurial ActivityEntrepreneurial Activity
Entrepreneurial ActivityEntrepreneurial Activity
Also…
• Reduce impediments to long-term economic growth
• Sustain regional economic competitiveness work over the long-term
The Elephant in the The Elephant in the RoomRoom• Issue of spatial relationships is not
going away
Pe
rce
nta
ge
Gro
wth
Land UseLand Use
Government Costs
• $20 billion (15%) of GDP
Suboptimal investment of public resources• What’s the preferred investment?
Hurdles for Collective Hurdles for Collective PlanningPlanning• Forces driving negative cycle:
– No mandate– Silo’d responsibilities– No personnel– Public doesn’t understand/see collective
opportunity
Can the MPO “leopards” Can the MPO “leopards” also change their spots?also change their spots?• Reshape mandate – greater
integration
• New skill sets
• New partnerships
• Community engagement
Principles for ChangePrinciples for Change
• Start where you can
• Recognize our best collective interest
• Understand systems costs
Next StepsNext Steps
• This is system change
• Find a lever – federal/state/other
• Work with us – philanthropy can be effective boots on the ground
• Let’s get going – now