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Cool Cities = Hot EconomiesHow Wisconsin Municipalities Lead The Way
August 17, 2018
Tom Still, Wisconsin Technology Council
• Independent, non‐partisan policy advisor to governor and Legislature on science and tech
• Work with WEDC, other public and private partners
• Connect entrepreneurs, investors, researchers and others in larger ecosystem
• Statewide interdisciplinary board
• Home to Tech Council Innovation Network, Tech Council Investors Network, Gov’s Business Plan Contest, Wis Early Stage Symposium, Wis Entrepreneurs’ Conference, The Tech Summit
Our role at the Tech Council
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• The scope of the workforce problem
• Building on natural strengths
• Why cool cities are hot properties
• Solutions: Capital, partnerships, digital divide, trade, branding
• Questions
What we’ll cover…
• Wisconsin loses college graduates to other states, which is part of the problem. That’s “out‐migration.”
• But the bigger problem may be its inability to attract college grads from other states, or “in‐migration”
• Source: Matt Kures, Center for Community and Economic Development, UW‐Extension
The scope of the problem
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0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%Sh
are of Age Group M
oving out of State
Domestic Out‐Migration Comparison by Age Group 2011‐2013Share of Age Group Moving Out of State
State of Wisconsin
United States
Source: U.S. Census Bureau 2011‐2013 American Community Survey and Author’s Calculations
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Share of Age Group M
oving Into a State
Domestic In‐Migration Comparison by Age Group 2011‐2013Share of Age Group Moving Into State
State of Wisconsin
United States
Source: U.S. Census Bureau 2011‐2013 American Community Survey and Author’s Calculations
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Natural strengths: A rich tradition
Street scene in Appleton: 1950s
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Appleton today: Fox Cities PAC
• Other than Milwaukee (31st) and Madison (82nd) there are no Wisconsin cities in the nation’s top 100 by population
• Green Bay (290th); Kenosha (309th); Racine (448th); Appleton (472nd)
• As of 2017, 12 cities in Wisconsin with populations of 50k or more*
* US Census Bureau 2010‐2017
Wisconsin: A state of mid‐sized cities
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• Once predominantly about manufacturing… the “company town”
• Today, it’s also about economic diversity, new business starts, population characteristics, workforce skills and education, physical conditions and infrastructure, business climate, knowledge‐based resources and quality of life
Strengths of cities have changed
• Businesses and trade associations
• Regional economic development groups
• Higher education: UW System, Tech Colleges, private colleges
• K‐12 education
• State and federal governments
• Other institutions, such as health care/utilities
Cities can’t “Bowl Alone”
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Why cool cities are hotWisconsin can learn from examples within and outside its borders
Encouraged by Zach Halmstad, jamf and other tech ’treps, Eau Claire is investing in its downtown and the Confluence Arts Center…
Why cool cities are hotWisconsin can learn from examples within and outside its borders
Why?
Talent attraction…
“People told me I would never find the people I needed. They were wrong.”
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Why cool cities are hotWisconsin can learn from examples within and outside its borders
The Fitchburg Technology Campus has helped redefine a city that was once a town. Promega research center is latest example.
Why cool cities are hotWisconsin can learn from examples within and outside its borders
Meanwhile, University Research Park in Madison is a national example of “town and gown” cooperation. About 125 companies & 3,600 employees
Exact Sciences headquarters to be completed by 2020
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Why cool cities are hotWisconsin can learn from examples within and outside its borders
www.SmartCities‐Smart Futures.com* Website available now. Contest open to entries late September* Open to College faculty, students and staff* Categories:
1. Optimizing Our Resources and Strengths
2. Improving Quality of Life, Performance and Collaboration
3. Enhancing a Sustainable Economy and Environment
4. Advancing Smart Manufacturing, Services and Infrastructure
Why cool cities are hotFoxconn has already planted flags in four cities
Racine, Milwaukee, Green Bay, Eau Claire
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Why cool cities are hotWisconsin can learn from examples within and outside its borders
#1 in 2018 Inc. 5000 fastest‐growing private companies
43 total from Wisconsin
Why cool cities are hotWisconsin can learn from examples within and outside its borders
Being a college town helps, but so does …
• Public‐private partnership
• The right business services
• Cost of doing business
• Talent pool
• A culture that attracts young people
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Why cool cities are hotWisconsin can learn from examples within and outside its borders
In 47 of 50 states, cities generate the majority of state economic output.
(Montana, Vermont and Wyoming are the exceptions…)
In Wisconsin, cities 50k and larger account for 73 percent of the state’s jobs; 68 percent of state population lives in a city
Why cool cities are hotWisconsin can learn from examples within and outside its borders
Source: U.S. Conference of Mayors, 2014
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Why cool cities are hotWisconsin can learn from examples within and outside its borders
"The economic future for states hinges largely on the performance of their metropolitan economies, which bring together the innovative firms, educated workers, and critical infrastructure that will propel the next wave of U.S. economic growth.”
-- The Brookings Institution, 2011
Partnerships: State initiativesWEDC tech loans/grants
Gigabit Business Park mapping project (WEDC and WSTA)
Wisconsin Main Street Program
ExportTech
Challenge grants to UW System
Workforce training
Image: The world’s first commercial hydrogen fuel station in Iceland; opened 2003
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Closing the digital divide
Wisconsin in a wireless age Broadband is the REA of the 21st century
Essential to eCommerce, health care, education, tourism, the “sharing economy” and more
With the right broadband coverage at the high end, Wisconsin businesses can compete throughout the world
Image: Badger State Ethanol plant in Monroe, Wisconsin
Attracting capital
Angel, venture not just for big cities
Image: Badger State Ethanol plant in Monroe, Wisconsin
When the Tech Council Investors Network was formed in 2004, there were five angel networks and three funds – only one outside Madison/ Milwaukee
Today, about 36 networks and funds located across Wisconsin; Act 255 tax credits helped a lot
New “Badger Fund of Funds” has regional focus… “money for minnows”
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Annual Comparison
Image: Badger State Ethanol plant in Monroe, Wisconsin
From Main Street to Mumbai
Entrepreneurism and new markets “Economic development in U.S. cities will be driven increasingly by forces of globaleconomic interaction in the 21st century. Where the export sector is thriving, internationaltrade and investment are creating more and better paying jobs. U.S. cities willhave to adjust quickly to these and other international forces.” – U. North Carolina study
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From Main Street to Mumbai
Entrepreneurism and new markets o Wisconsin exports climbed from $16.7 billion in 2009 to $23.5 billion in 2017; 19th total exports
o Significant state programs to help crack foreign markets and attract FDI
o Wisconsin can help solve problems elsewhere: Food, feed, fuel, fiber
(Re)selling Wisconsin to the convertedEntice educated “millennials” to come home; welcome outsiders
Foxconn progress being watched nationally and abroad
Underscore quality of life, schools, environment
BTW: Businesses can’t complain abut not finding talent when they don’t pay enough
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Conclusions
Wisconsin can attack ‘brain drain’Build on natural strengths
Forge partnerships
Cool cities are hot properties
Close the digital divide
Attract capital; encourage ‘treps
Leverage trade
(Re)sell and rebrand!
Thank you
Wisconsin Technology Council:
Tom Still, president
Visit: www.wisconsintechnologycouncil.com
455 Science Drive
Suite 240
Madison, WI 53711
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