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

Denver, CO / June 26, 2013@bruce_katz #globalcities

10 millionjobs needed

More Jobs

81 millionpoor or near poor in 2000

More Jobs & Better Jobs

107 millionpoor or near poor in 2011

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 2013

2018

Global GDP

28.2%BIC Countries

17.6%US

Source: International Monetary Fund, World Economic Outlook Database, April 2013

Global Metro Population

2009

50%

Global Metro Population

2030

60%

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

Economic Performance2011 - 2012

Highest Performing MetrosLowest Performing Metros

Source: Brookings, Global MetroMonitor, November 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?

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

$358

ServiceImports

ServiceExports

$518

US Service TradeBillions, 2010

$160 billiontrade surplus

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

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

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

$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

Can the U.S. be anInnovation Nation?

US Names China On Intellectual-Property Watchlist

China's insufficient protection of intellectual property rights remains a top priority for U.S. trade policy, given the "troubling" direction of recent government measures aimed at supporting domestic innovation, the U.S. Trade Representative's office said Monday.

China Begins to Lose

Edge as World’s Factory

FloorJanuary 16, 2013

BEIJING - China is losing its competitive

edge as a low-cost manufacturing base, new

data suggest, with makers of everything

from handbags to shirts to basic electronic

components relocating to cheaper locales.

The shift - illustrated in weakened foreign

investment in China - has pluses and

minuses for an economy key to global

growth.

Shale Gas Fuels U.S. Manufacturing RenaissanceJanuary 10, 2013

Abundant, affordable domestic natural gas is helping to revitalize energy-intensive industries like petrochemical manufacturing.

“Looking back 20 years, chemicals were out nation’s top export product. But as recently as five years ago, we were on the verge of becoming an importer. Now the industry is back.

January 19, 2013The number of firms known to have “reshored” manufacturing to America is well under 100. Doubtless many more are doing so quietly. Examples range from the tiny, such as ET Water Systems, to the enormous, such as General Electric, which last year moved manufacturing of washing machines. fridges, and heaters back from China.

Reshoring Manufacturing: Coming Home

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, 2010 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, 2010 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

ColoradoDenver, Colorado Springs

Population GDP

64% 64%

ColoradoDenver, Colorado Springs

Population GDP

Boulder, Fort Collins/Loveland, Grand Junction, Greeley, Pueblo

86% 85%

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, warrior481.blogspot.com

Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA, warrior481.blogspot.com

61,102

US DenverMetro

ManufacturingIntensity

8.5%

5.1%

Manufacturing JobsTop Manufacturing Sectors

Denver, CO Metro Manufacturing Dashboard

Food 12.5%Fabricated Metal Products 11.1%Computers & Electronics 10.3%Aerospace 10.0%Misc Manufacturing 9.9%

US DenverMetro

Manufacturing Growth

2010 Q1 - 2011 Q4

2.7%

0.1%

Source: Brookings, Locating American Manufacturing 2012

$10.2 B

Top 100Metros

DenverMetro

Export Intensity

9.8%7.2%

Export VolumeGoods & Services Exports

46.7%goods share of exports

Denver, CO Metro Export Dashboard

72,800Export Jobs

56.3%services share

of exports

Top Services SectorsTop Services Sectors

Travel & Tourism 17.2%

Business Services 13.9%

Royalties 8.4%

Top Goods SectorsTop Goods SectorsTransportation Equipment 6.2%

Petroleum and Coal Products 5.5%

Computers and Electronics 5.2%

Source: Brookings, ExportNation 2012

Denver, CO Metro Export Dashboard

Source: Brookings, ExportNation 2012

Denver’s Top Export DestinationsBy 2010 Volume (in millions)

Canada

Mexico

Japan

United Kingdom

China

$1,422.7

$773.0

$719.9

$716.5

$474.7

Germany

Brazil

Netherlands

South Korea

France

$428.8

$358.0

$294.4

$284.1

$268.1

Denver, CO Metro Global Aviation Dashboard

Source: Brookings “Global Gateways: International Aviation in Metropolitan America” (2012)

Share of Denver Passenger Air Travel to Major Global Regions

By 2011 Total Passengers

Denver’s Top Air Travel ConnectionsBy 2011 Total Passengers

Latin America/Caribbean

Western Europe

North America

36.7%

Rest of World

27.5%

16.4%

19.4%

Cancun 141,540

London

Toronto

Puerto Vallarta

Mexico City

121,891

92,456

71,175

72,945

1 2 31 2

3 Metropolitan areas are driving innovation

METROINNOVATION

Innovate Locally

T h e 1 0 T R A I T S o f

G L O B A L LY F L U E N T

M E T R O A R E A S

Globally Aware

Globally Fluent

Globally Oriented

Global FluencyThe level of understanding, competence, practice and reach that a metro area exhibits in an increasingly interconnected world economy. T h e 1 0 T R A I T S o f

G L O B A L LY F L U E N T

M E T R O A R E A S

1. Leadership with a Worldview

2. Legacy of Global Orientation

3. Specializations with a Global Reach

4. Adaptability to Global Dynamics

5. Culture of Knowledge and Innovation

6. Opportunity and Appeal to the World

7. International Connectivity

9. Government as Global Enabler

10. Compelling Global Identity

8. Investment for Strategic Priorities

T h e 1 0 T R A I T S o f

G L O B A L LY F L U E N T

M E T R O A R E A S

Governments

Philanthropy

Firms

Universities

Collaborate to Compete

1. Leadership with a Worldview

T h e 1 0 T R A I T S o f

G L O B A L LY F L U E N T

M E T R O A R E A S

STEM Jobs Requiring B.A.

Wage Premium

$42,967

$74,135

STEM Jobs261,210

22.4%

59.7%

STEM Job Share 2011

5. Culture of Knowledge and Innovation

Denver’s STEM Economy

T h e 1 0 T R A I T S o f

G L O B A L LY F L U E N T

M E T R O A R E A S

T h e 1 0 T R A I T S o f

G L O B A L LY F L U E N T

M E T R O A R E A S

Innovate Locally

Innovate Locally Advocate Nationally

State Governments ColoradoSpace Cluster

4 states joining Colorado to advocate for and promote space cluster initiatives

$20m competitive matching grants for early-stage tech development in CO

OhioThird Frontier & Edison Tech Centers

7 regional centers providing innovation & commercialization services

to foster innovation ecosystem in Ohio 2010-2016

$700 m

State Governments Florida

12 internationaloffices

$3 b state GDP added from export assistance & business development in 2011

Office of Freight, Logistics &Passenger Operations

Coordinates multimodal freight statewide by aligning with regional freight strategies

Enterprise Florida

Reform Immigration for

CompetitivenessOpen NewMarkets

Free Trade AgreementFree Trade AgreementFree Trade Agreement

Federal Government

Modernize & Prioritize Trade

Corridors

National Freight Strategy

Trans-Pacific Partnership

Europe

ExportFinancing

InternationalMarket

Intelligence

International Trade AdministrationExport-Import Bank

Innovate Locally Advocate Nationally

Innovate Locally Network GloballyAdvocate Nationally

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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

Denver, CO / June 26, 2013@bruce_katz #globalcities