WORKING DRAFTLast Modified 1/12/2010 5:53:26 PM Eastern Standard TimePrinted 9/16/2009 5:37:49 PM Eastern Standard Time

Central Ohio’s comprehensive strategy for economic development

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A new vision and aspiration for economic development

Vision

In 2020, Columbus will be recognized as a vibrant and successful region where emerging innovation, thriving talent, and a collaborative culture generate one of the fastest growing economies in the nation and one of the nation’s leaders in economic development.

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How is this Different?

Broad Community Engagement Unprecedented Cooperation First Integrated Strategy Repurposed Chamber of Commerce ED Services Columbus Partnership Engagement Metrics Driven Work Plan Accountability for Economic Development Results Fully Funded Implementation

Columbus2020! Partners

Columbus2020!

Partners

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15-month journey to transform economic development in Central Ohio

Timeline: Key milestones on our journey

Jan 2009 Jan 2010

Benchmarking

Current-stateassessment

Best-practice city visits

Case forchange

Leadership roundtablesVision for 2020!

Strategies MetricsOrganizational design

Transition Team

June 2009

Third Frontier funding put on ballot

2010 Fundraising

Regional Engagement Strategy

Benchmark Great Regions

Text

Minneapolis

Nashville

Raleigh

Austin

IndianapolisPittsburgh

Visited and researched regions

Clear regional vision bought into by community is strongest key to success

Clear regional vision bought into by community is strongest key to success

University involvement in research, commercialization and talent development

University involvement in research, commercialization and talent development

Active leadership engagement in all phases of the effort, not just the upfront strategy

Active leadership engagement in all phases of the effort, not just the upfront strategy

Quality of life reinforces economic development efforts and regional prosperity

Quality of life reinforces economic development efforts and regional prosperity

Multi-generational commitment builds a systemic program of success

Multi-generational commitment builds a systemic program of success

Workforce development, universities and K-12 education are key to long term regional health

Workforce development, universities and K-12 education are key to long term regional health

Sense of urgency is needed to promote change Sense of urgency is needed to promote change

Columbus: Great assets and emerging challenges

The Columbus region has many assets… …but we also have some serious challenges.

“Columbus is not the clear winner on anything.”

“Columbus gets lumped in with it’s state, the rust belt, and declining industries.”

No distinct competitive identity

Core industries hurt by the recession

Sales plunge 41% in May

Not innovating for the future

For Columbus companies 100 patents are developed per $1 Bn R&D spend which is almost 400 less than selected comparable cities

400 less

Sales plunge 41% in May

Growing low-paying jobs

Incredibly strong private sector Total annual revenue of $224

Bn (Regional GDP is $82 Bn)

$224 billion

The number of fortune 1000 companies headquartered in Columbus

FOURTEEN

World class private and academic research

Ohio State University’s national ranking in research

Top Ten in the Nation

The portion of our nation’s energy research and expertise located in Columbus

TWO THIRDS

High-quality talent pipeline 9 public high-schools rated

in the top 5% in the nation

95th percentile

National ranking on the number of resident college students

2nd

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Economic Strength Rankings

0

5

10

15

20

25

30

35

40

45

50

2004 2005 2006 2007 2008 2009 2010

Cincinnati

Columbus

Minneapolis

Orlando

Indianapolis

Kansas City

Raleigh

Nashville

Austin

Charlotte

#

#

#

#

#

#

#

#

#

#

#

2010=ECONOMIC STRENGTH RANKING FROM 1989 THROUGH 2008 | 366 METROPOLITAN STATISTICAL AREASECONOMIC STRENGTH RANKING-Highest ranked areas have had rapid, consistent growth in both size and quality for an extended period of time. Lowest ranked areas have been in volatile decline for an extended period of time. Source: Policom Corporation

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9

Raleigh

Denver

Nashville

Richmond

Orlando

Indianapolis

Kansas City

Charlotte

Austin

Hampton Roads

Cincinnati

Columbus

Miami

Dallas

Phoenix

1,125,827

2,552,195

1,582,264

1,238,187

2,082,421

1,743,658

2,067,585

1,745,524

1,705,705

1,674,498

2,171,896

1,801,848

5,547,051

6,447,615

4,364,094

Population

$0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 $6.0 $6.5

$6.22

$4.78

$4.55

$2.58

$2.55

$2.18

$2.03

$1.89

$1.87

$1.79

$1.52

$1.44

$1.08

$1.02

$0.92

Comparison of Annual Per Capita Economic Development Spending

* Source: U.S. Census Bureau Population Division; Estimates of Population for Metropolitan Statistical Areas and Rankings: July 1, 2009http://www.census.gov/popest/metro/CBSA-est2009-pop-chg.html

Retain & Grow Existing Business

The easiest business to grow is the business that’s already here

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Columbus2020! A new comprehensive strategy

The new economy will be built on new ideas, companies and innovations

The quality of life in Central Ohio is a key differentiator that we must support!

We must aggressively target site consultants and key industries

Create New Businesses Improve Civic

Infrastructure

Attract New Businesses

Columbus2020! Four Critical Pillars

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Attract1 Marketing & Lead

Development: Aggressively market the Columbus Region as a viable location to relocate/expand operations and proactively pursue key companies in targeted industry sectors

2 Prospect Management: Position Columbus2020! as the single point of entry for attraction projects and develop and execute a comprehensive lead management process

3 Community Engagement: Engage and empower the public and private sector partners in the Attract strategy

Retain1 Develop and maintain a

knowledge base Build and continually update a deep and broad base of knowledge about companies within the Columbus region

2 Identify opportunities for support Effectively leverage knowledge base to identify opportunities for Coumbus2020! partners to provide support

3 Provide support and/or integrate community resourcesConnect businesses with overlapping characteristics

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Create1 Shape the Third Frontier

2 Build an entrepreneurial ecosystem: Increase early stage capital availability, market, recruit, and attract VCs, foster regional business formation, grow entrepreneurial talent

3 Transform technology transfer at Ohio State

4 Increase Ohio State-Battelle collaboration

5 Develop a science and technology research park

Improve Civic InfrastructureIdentify the investments and public policy efforts necessary to improve the components of Civic Infrastructure most aligned to our region’s economic development progress, i.e. taxation, education/workforce, transportation, etc.

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Attract Strategies

1. Increase the number of prospects be enhancing Columbus’ image with improved marketing and branding

• Build best-in-class marketing materials, web tools and marketing approaches• Identify and target key industrial profiles and launch marketing campaign in competitor markets• Cultivate key site selection consultants and contract with lead development consultants to identify,

qualify and engage relocation opportunities• Host red carpet tours, pursue Key city visits and selected corporate calling visits

2. Create an environment that converts more prospects• Personal Account Managers will engage with prospects from start to finish• Encourage regional participation and coordination through Mid-Ohio Development Exchange• Align regional resources (e.g. city, county, education & business) to meet prospect’s needs

3. Attract national media coverage• Create campaign to inform and engage national and international media outlets• Host Red Carpet “Familiarization” tours and market to key development and industry publication

4. Manage business attraction leads and prospects• Assist companies and consultants in assessing the advantages of relocating or expanding operations

in the region. Collaborate with ODOD to become certified to develop State incentive packages

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Retain Strategies

1.Develop and manage key relationships with established local businesses• Build an Business Expansion Team• Create a company visitation program to understand businesses’ needs• Organize SWAT teams to address high-impact, time-critical situations that could lead to significant

job growth or job loss• Build a network of public and private service providers that can assist existing businesses

2.Leverage existing industries to recruit new businesses• Use corporate calling program to identify new recruitment opportunities• Define supply chain and existing relationships of companies within targeted industries and identify

gaps/efficiencies that can be leveraged via the attract pillar

3.Strengthen support services for businesses• Create a one-stop-shop that address businesses’ critical concerns• Align government incentives and training programs to facilitate the expansion of existing industries• Strengthen and facilitate connections – business to university and formal B2B linkages• Promote regular learning opportunities including Human Resources Roundtable to address

workforce issues and deliver other programs and forums that address local business issues

4.Improve competitiveness of industry groups• Create industry-specific teams to increase competitiveness of existing groups (e.g., logistics,

automotive, retail, arts & entertainment)• Create teams to identify and cultivate next generation industry groups

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Create Strategies

1. Improve idea generation• Create proactive, collaborative programs between OSU, Battelle and the region’s technology

resources• Leverage Ohio’s Third Frontier Program for strategic opportunities in Central Ohio• Transform Technology Commercialization at OSU – grow base of researches and increase the

pipeline of inventions and patents

2. Cultivate entrepreneurs and new ventures• Facilitate relationships among entrepreneurs, researchers and businesses• Support Center for Entrepreneurship at OSU and ensure strong link with Tech Columbus• Expand existing base of new venture companies with connections with Small Business Council,

Tech Columbus and Center for Entrepreneurship• Strengthen emerging technologies incubation programs and services

3. Improve funding access• Multiply the number and type of funds investing in the region• Leverage Ohio’s Venture Capital programs, Third Frontier program and support local angel and

early-stage capital efforts in the region• Increase the amount of investment taking place by establishing a $100 million fund dedicated to

strategic investment in core areas• Actively recruit VC firms to locate and invest in Central Ohio and connect the region’s ideas to

external investors

4. Leverage OSU, Battelle and other industrial relationships• Develop the OSU Research and Development campus for co-location research facilities

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Civic Infrastructure

Fully optimizing economic development efforts will not happen without a sustained quality of life in our community. We need life-long learning, civic and environmental assets, attractive arts and culture, strong social services and an

excellent infrastructure.

PRIORITIES

Determine and focus on the elements of Civic Infrastructure that serve economic development the most.

Using those prioritized elements, develop strategy to improve Central Ohio regional product for the purposes of creating, retaining and attracting businesses and high value jobs for our residents.

Create targeted public advocacy effort to advance the public policy context for economic development progress.

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Civic Infrastructure

Fully optimizing economic development efforts will not happen without a sustained quality of life in our community. We need life-long learning, civic and environmental assets, attractive arts and culture, strong social services and an

excellent infrastructure.

PRIORITIES

Determine and focus on the elements of Civic Infrastructure that serve economic development the most.

Using those prioritized elements, develop strategy to improve Central Ohio regional product for the purposes of creating, retaining and attracting businesses and high value jobs for our residents.

Create targeted public advocacy effort to advance the public policy context for economic development progress.

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Partner Organizations

Aggressive Create strategy

New aggressive Attract strategy

New focus on existing business strategies

Public-private partnership Strategy Fundraising Accountability

WORKING DRAFTLast Modified 1/12/2010 5:53:26 PM Eastern Standard TimePrinted 9/16/2009 5:37:49 PM Eastern Standard Time

• General Marketing• Earned Media• Prospect Management• 5-6 Full Time Professionals

• Site Consultant Outreach• Targeted business development missions• Host site selectors• Robust Existing Industry Program• Coordination between Retain/Attract efforts• Value Added Research• General Marketing• Earned Media• Prospect Management• 10+ Full Time Professionals

$6,000,000/Year

$2,600,000/Year

$1,100,000/Year

2009 2010 2011

• General Marketing• Earned Media • Prospect Management• 2.5 Full Time Professionals

• Site Consultant Outreach• Targeted business development missions• Host site selectors• Coordination between Retain/Attract efforts• Value Added Research• REPURPOSE Chamber E.D. Services

• Hosting of companies/CEO’s • Consistent International Business Development• Image/Brand Activities• Scale existing activities

New InitiativesContinuing Programs

Reactive

Proactive

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Metrics have been developed to publicly report progress against 10-year goals

Ten-year goals… …will be monitored via pillar-level metrics

Net new jobs

Income growth

Economic growth rate (jobs growth rate) (%)

Capital investment ($)

YOY change in existing jobs (%)

At-risk companies (#)

High growth-potential companies (#)

Participant satisfaction level (%)

Awareness level (%)

Companies Attracted to Columbus (#)

Total conversion rate (%)

Qualified inquiries handled (#)

Site selection ranking (#)

Media impressions (#)

New business starts (tech and non-tech) (#)

Start-ups 2-5 years old (#)

YOY change in venture capital funding (#)

Patents, inventions, and disclosures per research dollar (#)

Third Frontier dollars in Columbus MSA ($)

180,000 Stretch

150,000 Target

100,000 Base

Net New jobs

40% Stretch

30% Target

20% Base

Per capita income growth

Top TenCommunities in economic development

General

Retain

Attract

CreateTop TenCommunities

in eBillio$4 Bi$10 Billion

$ 8 Billion$ 6 Billion

New Investment

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$4.7 Million$* Million*

Columbus2020! Annual Target Goals

SOURCE: McKinsey & Company

$3 Million

$2 Million

$3.1 Million

$2 Million

$2 Million

$4 Million

$6.5 Million

$6.6 Million

$ 2.0 $ 2.0

$ 3.0

$ 2.2

$ 1.2

$ 2.0$ 4.0

$ 2.0$ 4.6

4.7 MIL

$ 4.0$ 3.2

$ 6.5$ 5.7

$ 6.6$ 5.6 $5.6

$5.7

$6.6

$3.2

$6.5

$4.0

$2.2

$2.0$4.0

$4.6 $2.0

$3.1

$3.0$1.2

$2.0$2.0

$1.9

$1.7

$2.4

$1.1

$2.6

$1.4

$1.6

$2.0

$1.9$2.0

$3.0

$2.0

$3.1

$2.0

$2.3

$4.0

$6.5

$1.3

$2.1

$1.6

$2.4

$2.0

$1.2

$2.2

$4.0

$4.6

$4.7

$3.2

$5.7

PROGRAM METRICS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total

Net New Jobs 11,000 12,000 12,000 15,000 15,000 15,000 15,000 17,500 17,500 20,000 150,000

Mean Annual Wage $43,070 $43,931 $44,810 $45,706 $46,620 $47,553 $48,504 $49,474 $50,463 $51,473 $51,473 Nominal Per Capita Income +2.7% +2.7% +2.7% +2.7% +2.7% +2.7% +2.7% +2.7% +2.7% +2.7% +30% Capital Investment (Millions) $700 $700 $750 $800 $800 $800 $800 $850 $900 $900 $8 BILLION

New Companies Attracted 25 25 27 30 30 30 30 33 35 35 300 Attracted Jobs (Direct & indirect) 3,625 3,625 3,915 4,350 4,350 4,350 4,350 4,785 5,075 5,075 43,500 Local Companies Expanded 80 80 85 90 90 90 90 95 100 100 900 Expanded Jobs (Direct & Indirect) 11,600 11,600 12,325 13,050 13,050 13,050 13,050 13,775 14,500 14,500 130,500

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Job Creation

Sectors / Industries / Audiences• Advanced Manufacturing• Finance / Insurance Services• Logistics operations• International businesses• Targeted technologies ------------------------------------------• Health and Medical Products• Energy / Environmental• Defense / Security

CREATE4%

ATTRACT14%

RETAIN &EXPAND

82%

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The key to our success will be to significantly broaden our investor base

Columbus2020!Funding Pyramid

$6 Million Annual Budget

250+ Businesses$1 Million

Regional Governments$2 Million

Top 40 Leadership Companies$3 Million

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Annual Budget Allocation

3.2

2.0

3.0

3.2

0.7

1.9

New TeamRed Carpet ToursSite ConsultantsTrade Missions

New TeamCorporate CallingExpansion AssistanceSmall Business Support

EntrepreneurshipCommercializationEmerging TechnologiesIncubator

AttractRetainCreateResearchAdministrationMarketingAdvocacy

$1,920,000$1,260,000$1,080,000

$540,000$220,000$180,000$120,000

$6,000,000

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Economic Impact of Projected Job Creation

PROJECTED JOB CREATION 2011 PROJECTED JOB CREATION 2011- 2015

Net New Jobs 11,000 Net New Jobs 65,000Average Annual Wage $43,070 Average Annual Wage $44,827Total Annual Wages $493,097,000 Total Annual Wages $2,913,755,000Less Taxes & Savings (30%) - $148,129,100 Less Taxes & Savings (30%) - $874,126,500Net Annual Earnings $345,167,900 Net Annual Earnings $2,039,628,500

Annual2011 Annual

Personal Annual 2011 – 2015

PersonalPercentage Expenditures Percentage Expenditures

Housing 18.6% $64,201,229 18.6% $379,370,900Transportation (Vehicles, fuel & parts) 17.6% $60,749,550 17.6% $358,974,610Personal Insurance/Pension 11.6% $40,039,476 11.6% $236,596,900Utilities 7.4% $25,542,424 7.4% $150,932,500Groceries 7.4% $25,542,424 7.4% $150,932,500Healthcare 6.4% $22,090,745 6.4% $130,536,220Recreation/Entertainment 5.8% $20,019,738 5.8% $118,298,450Restaurants 5.1% $17,603,562 5.1% $104,021,050Charity 3.6% $12,426,044 3.6% $ 73,426,669Apparel 3.4% $11,735,708 3.4% $ 69,347,369Household Furnishings/Equipment 3.3% $11,390,540 3.3% $ 67,307,740Household Supplies/Services 3.2% $11,045,372 3.2% $ 65,268,112Education 2.4% $ 8,284,029 2.4% $ 48,951,084Alcohol/Tobacco 1.5% $ 5,177,518 1.5% $ 30,594,427Miscellaneous 1.5% $ 5,177,518 1.5% $ 30,594,427Personal Care Products/Services 1.2% $ 4,142,015 1.2% $ 24,475,542Total 100% $345,167,900 100% $2,039,628,500

Source: U.S Department of Labor, Bureau of Economic Analysis; Community Research Partners, Columbus, Ohio

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We need your support!

Develop and

Join us today on this important journey to ensure that the Columbus region becomes an economic development leader during the next ten years, ensuring our collective prosperity and quality of life enhancement.