©2007 ViTAL Economy, Inc. 1 Southern Illinois: Garden of the Gods Readiness Assessment Chapter 7:...

©2007 ViTAL Economy, Inc.— 1 —

Southern Illinois: Garden of the Gods

Readiness Assessment

Chapter 7: Roadmap to Success

January 8, 2008; revised February 17

CONNECT SI

ViTAL Economy AllianceFrank Knott, Project Lead; Stan Halle, Senior Editor;

Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers

[email protected]; http://www.vitaleconomy.com


7.01 Readiness to Support a Long-term

Connect SI Initiative

7.02 Impact of Achieving 2012 Goals

7.03 Path Forward & Overall Timeline

7.04 Organizing to Succeed

Table of Contents EXECUTIVE OVERVIEW:EXECUTIVE OVERVIEW: the Big Picture & Importance of Change in SIthe Big Picture & Importance of Change in SI

READINESS ASSESSMENT (RA)READINESS ASSESSMENT (RA)

1. State, National & Global Trends1. State, National & Global Trends

2. Indigenous Resources & Industry Asset Mapping

3. Enabling Environment

4. Climate of Innovation, Incubation & Entrepreneurship

5. Southern Illinois Competitiveness

6. Regional Perspectives

7. Roadmap to Success

APPENDICES


Chapter 7:Roadmap to Success

7.01 Readiness to Support a Long-Term Connect SI Initiative …. 5

7.02 Impact of Achieving 2012 Goals ………………..………….…. 8

7.03 Path Forward & Overall Timeline …………………………….. 18

7.04 Organizing to Succeed ………………………………………… 31

Southern Illinois — “Garden of the Gods”

Chapter 7 summarizes key recommendations from the RA that should act as a prioritizing filter for Connect SI’s Long-Term Economic Strategy, which is to be released by VE in February

2008 and will contain the budget and timeline for Phase 2 implementation.


Purpose of RA Recommendations

Confirm SI regional readiness to launch Phase 2 of a ViTAL Economy initiative — implementing of Comprehensive and Collaboratively-funded Community and Economic Development Strategy

Suggest definable and measurable long-term goals

Establish priority initiatives for achieving success

Provide guidance to Connect SI with regards to expanding the base of community champions, industry cluster leaders, and collaborative funding

Define the Connect SI organizational framework that fosters short-term wins and long term sustainability

Communicate VE’s vision of a robust SI future

7.0 Roadmap to Success: Introduction



7.01 Readiness to Support a Long-Term

Connect SI Initiative

Southern Illinois — "Garden of the Gods"

As the six preceding Chapters in this RA have shown, SI has made important progress towards establishing the foundation of a SI-wide transformation. However, unless the barriers

identified in RA are mitigated, the unique assets of SI may languish and the rich global opportunities identified in this RA may pass the region by.


SI Progress Towards Readiness

1,000+ Connect SI participants have worked toward building a foundation for hope through investment of tens of thousands of service hours

Collaborative funding — from local governments, corporations, NGO’s, higher education institutions, small and large healthcare systems, state and federal agencies — attests to the desire to manifest a robust SI future

Network provider collaboration has increased broadband availability by 64% across SI through over $24 million of private investments

Healthcare provider collaboration has achieved significant progress towards addressing critical skills shortages and improved health outcomes by cooperating instead of competing

Connect SI asset mapping has uncovered opportunities to collaborate across the Region that would not have been possible before — leading to numerous short-term wins and long-term opportunities for growth

7.01 Readiness to Support a L/T Connect SI Initiative


SI Barriers to Readiness

Continued reliance on state and federal resources as primary sources of capital to fund long-term initiatives rather than to prioritize collaborative funding alliances at the local level — breaking old behaviors is essential

Critical mass of Connect SI champions has not yet been achieved — need to triple its champions to >3,000 active participants, who believe that a climate of economic opportunity is possible for Southern Illinois

Imbedded focus of funding, policy & behaviors on industrial attraction and big employment announcements as the solution to economic growth — versus growing small employer KBE firms (21st Century growth engines) that don’t garner big headlines

Limited recognition of the depth, breadth and length of commitment needed at the leadership, citizen, government, business and media levels to transform a limited growth old economy into an innovation growth economy of unlimited opportunity

Insufficient commitment of the time, talent and resources of existing SI leadership to expand the next generation leaders and to grow the skills necessary to collaboratively become One Region with One Vision

7.01 Readiness to Support a L/T Connect SI Initiative





The net effect of creating 43,300+ new jobs in Southern Illinois is enormous — in terms of stimulus to SI’s economy, increased taxes, and overall prosperity. This section summarizes

SI regional assets, major trends, potential impact of Milestone #1 goals vs. Milestone #5 industry cluster targets, industry cluster priorities, overall impact, and key measures of success.


Milestone #1 Goal Setting vs. Milestone #5 Industry Cluster Targets

Milestone #1 focused on a top-down approach to goal setting: Set overall goals for population, labor participation rates, job growth, job

improvement, etc. Did not look at specific industry sectors Defined a sense of urgency and a compelling vision for transforming SI economy Communicated SI top-down goals, urgency and vision publicly on 26 Feb 2007

Milestone #5 focused on a bottoms-up approach to setting industry cluster targets:

Assessed impact of local, regional, national and global research on achieving top-down goals

Summarized results of regional COI work efforts from Milestone#2-4b meetings and COI work groups

Validated SI's ability to achieve and exceed 26 Feb 2007 top-down goals by priority industry sectors

Established more targeted goals for Phase 2 implementation which would assure achievement of Connect SI compelling vision

The following slides illustrate the impact on SI first from the original Milestone #1 goals and then from the Milestone #5 industry cluster targets



Regional AssetsRegional Assets

• Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas

• SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth

• Robust education and training resources position SI for global workforce training opportunity

• Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth

• Inter-modal logistics, transportation and distribution resources have a strong foundation in SI

• SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030

• Heartland of America location, equidistant to 2/3 of U.S. markets, central to economic expansion of the Americas

• SIU - a major R&D university with 60+ years history serving students from over 100 world cultures supports global KBE growth

• Robust education and training resources position SI for global workforce training opportunity

• Mild climate, unique natural environment, active lifestyle assets, arts and culture amenities, attractive quality of life characteristics are important factors for KBE, tourism and senior living growth

• Inter-modal logistics, transportation and distribution resources have a strong foundation in SI

• SI has plentiful legacy and alternative-energy assets. SI is a coal leader and is strong in 2 of 4 areas of projected alternative energy growth by 2030

Connecting SI’s Assets and Trends to 2012 Goals

>$2 BillionNew Annual

Wages

>$2 BillionNew Annual

Wages

41,461 Existing Jobs>$5,000/Yr

41,461 Existing Jobs>$5,000/Yr

27,298 NewHigh-Wage Jobs

27,298 NewHigh-Wage Jobs

$642 MillionNew KBE Activity

1,600+ Firms

$642 MillionNew KBE Activity

1,600+ Firms

4,500+ Families with Healthcare

Coverage

4,500+ Families with Healthcare

Coverage

Lift 10,000 Citizens Out

of Poverty

Lift 10,000 Citizens Out

of Poverty

$200 Million Information Technology Investment

$200 Million Information Technology Investment

Global & Nat’l TrendsGlobal & Nat’l Trends

• Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year

• KBE activity now accounts for 50% plus of GDP growth, three times the growth in occupations and pays double the average wage of other jobs

• By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources

• 3 of 4 factors required to support KBE activity in rural America are SI strengths

• 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)

• Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year

• 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030

• Global growth presents SI with opportunity to accelerate its economic growth from 1.34% to 3.85% per year

• KBE activity now accounts for 50% plus of GDP growth, three times the growth in occupations and pays double the average wage of other jobs

• By 2010, the U.S. will have a 10M worker shortfall requiring strong workforce development resources

• 3 of 4 factors required to support KBE activity in rural America are SI strengths

• 58% of all U.S. and global tourists want authentic active, historic and cultural experiences (50-80 million)

• Logistics is a $900 billion U.S. industry in a global $3.43 trillion market growing at 10-15% per year

• 74% global increase in coal consumption, 138% in coal-to-liquid and 66% in bio-fuels by 2030

++ ==

CSI 2012 M/S1 Goals*

Note: Regional Assets (Chap 2); Trends )Chap 1); * Milestone #1 Connect SI Goals were announced to the Public 26 Feb 2007



Job Creation Impact on SI Economy based on Milestone #1 Goals

Industry SectorNew

Jobs

New

Wages (M)

Healthcare 5,000 $221.7

Tourism 2,537 $69.0

Logistics & Distribution 955 $55.6

Global Workforce Opportunities

10,688 $642.1

Education & Training 336 $10.7

Construction 2,451 $133.1

Energy 1,371 $79.8

Mining 1,867 $74.0

Senior Living 2,095 $113.9

Industry SectorNewJobs

NewWages (M)

KBE 16,000 $752.0

Bio-Agriculture Recreational, Marine, Hunting, Technology Products

& Services Innovation Ecosystem Healthcare Products and Services Green Technologies Homeland Security Response and Services Life Sciences, Plant and Animal Visual and Creative Arts Advanced Manufacturing

CSI-wide Milestone #1 Goals16,379 new jobs at $43,500; 10,919 new jobs between $36,517-$40,785

Improve 41,461 existing jobs by $5,000/yr; $642M new KBE Activity = 1,600+ firms

Over $2B New Annual Wages

CSI-wide Milestone #1 Goals16,379 new jobs at $43,500; 10,919 new jobs between $36,517-$40,785

Improve 41,461 existing jobs by $5,000/yr; $642M new KBE Activity = 1,600+ firms

Over $2B New Annual Wages

Note: New wages based upon current SI wages plus 2% AAGR from 2008-12. Total wages exceed $2B due to applying this growth rate.



New Jobs Increase Taxes:Federal, State and Local

Each CSI Milestone #1 job adds approximately $10,500 in taxes

64% in federal taxes 36% in state and local taxes

SI original Milestone #1 goal of 43,300 new jobs, at increased income, generates (per year):

$293 million in federal taxes $162 million in state and local

taxes

Analysis includes all taxes: income, consumption, and other

Each New Projected SI Job Generates $10,500 in Taxes

Source: InterVISTAS Development Economics; Northeast Midwest Institute

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

State/Local

Federal

36%

64%



• Global growth opens up opportunities to expand SI economy beyond its traditional growth rate

• 10 million U.S. worker shortage is an opportunity for SI workforce development resources

• Growth in services exports enable SI to move away from uncompetitive legacy economic activities

• Global growth opens up opportunities to expand SI economy beyond its traditional growth rate

• 10 million U.S. worker shortage is an opportunity for SI workforce development resources

• Growth in services exports enable SI to move away from uncompetitive legacy economic activities

ICT investments contribute 33% to U.S. productivity

growth…this validates importance of NP-COI

SI’s 64% increase in broadband access can better

leverage six-fold increase in e-commerce activity

4 of 5** factors in rural KBE growth are SI strengths

— need to be leveraged for SI economic growth Livable community assets present in SI are an

attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening”

of society is creating innovation opportunities

ICT investments contribute 33% to U.S. productivity

growth…this validates importance of NP-COI

SI’s 64% increase in broadband access can better

leverage six-fold increase in e-commerce activity

4 of 5** factors in rural KBE growth are SI strengths

— need to be leveraged for SI economic growth Livable community assets present in SI are an

attraction asset for KBE, Senior Living and Tourism Alternative energy, global warming and “greening”

of society is creating innovation opportunities

See: RA Chapter 1

**Five Factors are: • High Quality Workforce• College or Universities• Local Amenities• Transportation Infrastructure• Size

Potential SI Jobs by Industry Sector (1 of 2)(Milestone #5 Industry Cluster Targets)

Global Workforce

Opportunities

18,750New Jobs

Global Workforce

Opportunities

18,750New Jobs

KBE

8,023New Jobs

KBE

8,023New Jobs


Climate of Economic Opportunity = an additional 10,210 new jobsNEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)

Climate of Economic Opportunity = an additional 10,210 new jobsNEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)

See: RA Chapter 1

• 77 million retiring baby boomers present an affluent

senior living growth opportunity for SI

• 77 million retiring baby boomers present an affluent

senior living growth opportunity for SI

• Preferred tourism growth sectors indicate SI is

positioned for accelerated tourism growth (Chp 1.08)

• Preferred tourism growth sectors indicate SI is

positioned for accelerated tourism growth (Chp 1.08)

SI energy assets and knowledge are in the sweet spot of energy priorities for growth

SI energy assets and knowledge are in the sweet spot of energy priorities for growth

Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America — SI location and logistics assets position it for growth

Significant transportation labor shortages are moving transportation and distribution centers from the coast to the center of North America — SI location and logistics assets position it for growth

Potential SI Jobs by Industry Sector (2 of 2)(Milestone #5 Industry Cluster Targets)

Senior Living

3,676New Jobs

Senior Living

3,676New Jobs

Energy & Mining5,680

New Jobs

Energy & Mining5,680

New Jobs

Tourism4,450

New Jobs

Tourism4,450

New Jobs

Log/Trans//Dist1,675

New Jobs

Log/Trans//Dist1,675

New Jobs

©2007 ViTAL Economy, Inc.— 15 —Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005); “21st Century Workforce” (May 2004); IMF; VE research

Ave

rag

e A

nn

ual

G

row

th R

ate

%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

3.85%

“Stay the Course” vs. “Change the Course”

AAGR Connect SI Goals 2008 - 2012

0

1

2

3

4

5

6

AAGR 1977-2001

Worldwide USA State-wide Southern Illinois

1.34%

2.19%

3.14%

5.62%

Milestone #1 Goals Increase GRP by $2.9B (2012); $162M in additional State & Local tax revenue

Milestone #5 Targets Increase GRP by $5.2B (2012); $292M in additional State & Local tax revenue

Milestone #1 Goals Increase GRP by $2.9B (2012); $162M in additional State & Local tax revenue

Milestone #5 Targets Increase GRP by $5.2B (2012); $292M in additional State & Local tax revenue

Taking Control of SI’s Destiny: Aggregate Results 7.02 Impact of Achieving 2012 Goals

6.89%

M/S#1

M/S#5


Measurable Indicators of ProgressTowards 2012 CSI Goals

It’s Time to Go Global!

0

2

4

6

8

10

12

Exports as a %of GDP

U.S.

Illinois

SI

11%

8.4%

2.4%0%10%20%30%

40%50%60%70%

Private SectorPayroll & Benefits

TransferPayments, All

Gov't & EducationEarnings

U.S.

IL

SI

54%

33%36%

46%

67%64%

SI Becomes

an Innovation Economy

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2005Southern Illinois USA-RuralUSA-Average Best in World

% P

enet

rati

on

o

f P

op

ula

tio

n

SI is a Global Broadband Leader

12%

24%

34%

54%

Insured population +10%

Medicaid -26%

Medicare +18%

UninsuredUninsured -32% -32%

Healthcare Economics are Transformed!



Big Impact for Southern Illinois:10,000 Citizens No Longer in Poverty!

SI Poverty Rates When 2012 Goals Are Reached

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

AlexanderGallatinHamilton

HardinJacksonJeffersonJohnsonMassacPope

PulaskiRandolph

Saline Union White

WilliamsonFranklin

Perry WayneEdwardsWabash

2000 Poverty 2012 Poverty

Illinois Average 10.7% (2000)

U.S. Average 12.7% (2000)

2000 SI Poverty: # of SI Counties: 1 - lower than Illinois poverty rate

4 - lower than U.S. poverty rate

2000 SI Poverty: # of SI Counties: 1 - lower than Illinois poverty rate

4 - lower than U.S. poverty rate

14.4% Poverty

Decrease

14.4% Poverty

Decrease

2012 SI Poverty: # of SI Counties: 4 - lower than Illinois poverty rate10 - lower than U.S. poverty rate

2012 SI Poverty: # of SI Counties: 4 - lower than Illinois poverty rate10 - lower than U.S. poverty rate

Source: 2000 US Census; Center for Rural Health & Socal Services; VE analysis




7.03 Path Forward & Overall Timeline


This section outlines the key steps in transforming SI’s economy from a Climate of Limited Opportunity to a Climate of Unlimited Opportunity. The “Collaboration” theme discussed

throughout this RA is fundamental to SI’s future success — not just in leveraging the unique assets of the Region, but in demonstrating the willingness of all sectors (public & private) to be integral

participants in manifesting that success.


Actions Fundamental to SI Economic Prosperity (1 of 2)

Address SI Dilemma — transition from a Climate of Limited Opportunity to a Climate of Unlimited Opportunity

SI citizens must believe that they have the ability to take control of their destiny Education of SI uniqueness and opportunity is critical to turning belief into action

Increase SI’s private sector contribution from 46% to national level of 65%; reduce SI’s dependence on public sector income from 54% to national level of 36% by 2012

Critical to establish an SI climate of innovation versus a climate of risk-aversion Requires a 30% increase in private sector wage contribution to personal income

Improve global export literacy and double global export value in SI ‘s economy Required to increase flow of external capital into SI, hence investment attraction Leverages SI indigenous resources — from Sow Our Own to Grow Our Own

Implement economic strategies to grow SI economy at 3.85% vs 1.34% annually Increased prosperity is dependent on accelerated growth SI infrastructure investments cannot be met without increasing economic growth

7.03 Path Forward and Overall Timeline


Actions Fundamental to SI Economic Prosperity (2 of 2)

Change economic development focus from legacy (manufacturing & commodity agriculture) to KBE global products & services

This is where the high value, high wage job growth opportunities abound

Emphasizes growth of firms not negatively impacted by Illinois weaknesses

Grow breadth and depth of Connect SI visionary leaders & champions Commitment to a compelling long-term Vision by more leaders is critical

Critical mass of 3,000+ champions is critical to sustain this fundamental change

Expand base of collaborative funding support for Connect SI strategies Long-term consistency in strategy focus is dependent on regional control

“Cavalry is coming” mentality must be dispelled to transform expectations

Support a long-term regional framework to guide regional growth Regional collaboration can only take place through a regional framework

Access to a broader base of financial, data and human resources is assured



• Mindset: willingness to accept mediocrity and lack of a sense of excellence

• Insufficient climate of collaboration and trust making change very difficult

• Continuing belief that “the cavalry is coming” despite proof to the contrary

• Losing the best and brightest• Lack of participation in the global economy• Continued focus on traditional economic sectors

in decline rather than rising economic sectors• Climate of economic (and community) despair• Public policy/funding priorities reinforce old

economy strategies, and inhibit new ones

SI’s Big Dilemma:Climate of Limited Opportunity

Resulted in only 1.35%

AAGR for last 25 Years

Resulted in only 1.35%

AAGR for last 25 Years

SI’s future hangs in the balance!SI’s future hangs in the balance!

• Fragmented and poorly leveraged

• Primary focus on local opportunities

• Insufficient # of visionary leaders

• Too many political boundaries

Issues Weighing

Down SI

Indigenous

Resources &

Innate Talents

SI’s Current

State



SI Enabling Environment Challenges are at the Core of the SI Dilemma

Lack of collaboration is hampering prosperity Creates a climate and reputation of conflict and distrust Results in an inability to fund or achieve project success due to lack of resources

Listless business climate for retention and attraction IL’s court system is rated as unreasonable to business Multiple government and taxing districts cause a confusing business environment

Connectivity expansion is a marketable opportunity but literacy must increase The recent expansion of broadband service, supported by a clearly defined goal is

positioning SI for KBE growth and attraction — coupled with an investment in connectivity literacy

SI’s natural environment is neither widely respected nor being leveraged The region has the largest concentration of natural environment assets in the Mid-

west, but is not reaping the benefits Reluctance to change will guarantee an atmosphere of dependency

The new economy is changing faster than ever before primarily driven by innovation and technological advancements that will not wait for individuals and companies to keep pace

Rural regional economies that can effectively meet the workforce needs and business demands of a KBE economy will be the envy of others



Enabling Environment RecommendationsAre The Solution To SI Dilemma

Improving the enabling environment of SI is the key to addressing the SI dilemma The results of the Readiness Assessment clearly demonstrate that SI behavior and mindset is the

only thing standing in the way

Without the changes proposed in this chapter, SI will be far less able to leverage its unique

indigenous resources to take advantage of current global and national trends

Our primary recommendations:

#1 — Implement a regional Multi-Media Branding Strategy for internal and external markets

#2 — Create a Crossing Boundaries Institute linked into existing leadership programs

#3 — Implement a Youth Engagement Strategy

#4 — Incorporate Collaborative Funding as a fundamental part of the DNA of SI

#5 — Establish a Comprehensive SI Data Mining Portal that is a model for Illinois

#6 — Implement Broadband Connectivity Infrastructure and Digital Literacy Strategy

#7 — Develop an SI Livable Community Forum

The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change its thinking & behaviors

The successful transformation of SI from a limited to an unlimited growth economy depends upon the ability of the Region to change its thinking & behaviors



• Less willingness to accept mediocrity• Improving climate of collaboration and

trust making change less difficult• Losing fewer of the best and brightest• Less focus on traditional economic

sectors in decline • Less of a climate of economic despair• Public policy/funding priorities shifting

SI’s Potential:Climate of Unlimited Opportunity

• Linked across the Region & highly leveraged

• Active visionary leaders• Collaboration abounds• Boundaries are being

crossed• New behaviors• Global focus

Issues Weighing Down SI Indigenous Resources &InnateTalents

Results in over 3.85% or

better AAGR for NEXT 25

Years

Results in over 3.85% or

better AAGR for NEXT 25

Years

Growth & prosperity realized!Growth & prosperity realized!

SI’s Future State



Phase 2 Priorities for Success (1 of 2)

1. Expand NP-COI connectivity broadband deployment with professional support for an additional twelve months; this includes expansion of enterprise applications for healthcare, education, R&D and tech transfer research collaboration with private sector

2. Broaden base of Connect SI champions and gain re-commitment of Phase 1 champions. Repeat January-June 2006 road show using RA data to garner additional support

3. Invest robust resources in a collaborative funding strategy to raise $1.5 million in cash and in-kind resource commitments to Connect SI for FY 2008 and for FY 2009

4. Establish Connect SI as a regional data portal for SI. Local municipalities are already benefiting from regional data assembled by Connect SI, which has helped local economic development professionals attract businesses to SI. There is no other long-term reliable source for consistent, accurate and integrated data for SI

5. Select four industry clusters for Phase 2 research and implementation in 2008. Recruit private sector leadership teams during first quarter of 2008 for each industry cluster. Identify experienced rural industry cluster research teams to guide cluster teams

6. Commit to a sense of urgency that is communicated region wide. Educate citizens and leaders on the economic realities and need for change today rather than tomorrow. Invest in Connect SI marketing strategy in support of broadband, champion development, collaborative funding and private sector recruitment goals



Phase 2 Priorities for Success (2 of 2)

7. Leadership Advisory Committee agrees to resource the Healthcare COI to aggressively achieve the transformative qualitative and quantitative goals it established in Phase 1

8. Focus four regional COI’s on recruitment of industry cluster participants for prioritized SI-wide industry clusters. Have COI leadership guide implementation of at least two short term win opportunities every six months, which are connected to achieving COI goals

9. Fund and establish a collaborative leadership institute to address critical shortage of visionary leadership across SI. Include youth engagement in this, so that youth brain drain can be successfully addressed for the long-term

10. Review RA findings and work with ViTAL Economy to integrate RA findings into the SI-wide economic strategy to be released in 1st quarter 2008

11. Commit to obtain and invest resources required to implement Connect SI Phase 2 economic strategy and achieve qualitative and quantitative goals starting April 1 2008. This includes approval of Connect SI Phase 2 implementation timelines, funding and professional resources

12. Develop a 501(c)(3) framework for Connect SI, so that independent government and foundation funding, that cannot be received by SIU or ManTraCon, can be accessed. This is particularly critical with regard to approved legislation dealing with digital divide funds from state and federal sources



All new jobs created byIndustry Clusters will be

targeted to include private payer health benefits for

workers and families

All new jobs created byIndustry Clusters will be

targeted to include private payer health benefits for

workers and families

Phase 2 Industry Cluster Priorities for Achieving 2012 Connect SI Goals

The following Industry Clusters emerged from the extensive COI asset mapping and opportunity assessment activities during Phase 1:

Tourism Bio-Agriculture Knowledge Based Enterprises (KBE)

Healthcare Technology Products & Services Advanced Manufacturing Recreational, Marine, Hunting, Technology Products & Services Visual Creative & Performing Arts and Services International Incubation and Innovation Green Technologies Homeland Security Response and Services Life Sciences, Plant and Animal

Global Workforce Opportunities Energy Mining Technology Transportation, Logistics & Warehousing Senior Living



Collaborative Investment Rationale

• Collaborative funding of Connect SI initiatives is one of the most critical

determinants of SI’s ability to sustain a long term transformation of Southern

Illinois’ economy

• Successful collaborative funding starts at the local and regional level and is

only then matched by state, federal and foundation investments — this is

critical to reversing SI’s decades long sense of external dependency

• ViTAL Economy initiatives, which commit to collaborative funding as a core

principle, experience anywhere from a 5:1 to 12:1 ratio of

external-to-local/regional investments — the average ratio over 15 years is

≈7:1

• A $1,500,000 annual collaborative funding goal is recommended — a strategy

for accomplishing and exceeding this goal is on the following slide

• Connect SI leadership commitment to this strategy is critical. While ViTAL

Economy can help guide and train leaders to implement this strategy, it must

be locally led by a committed group of SI-based leaders



Collaborative Funding Strategy: Goals

Source # ‘08/‘09/‘10 $/Year FY 2008 FY 2009 FY 2010

Large Local Governments 5/7/9 $5,000 $25,000 $35,000 $45,000

Mid-Size Local Government 20/25/30 $2,500 $50,000 $62,500 $75,000

Moderate Size Local Gov’ts 30/40/50 $1,000 $30,000 $40,000 $50,000

Small Local Governments 100/120/140 $500 $50,000 $60,000 $70,000

SI Public Citizens 2K/3K/4K $25 $50,000 $75,000 $100,000

Gen’l Business & Industry 20/30/40 $1,000 $20,000 $30,000 $40,000

Healthcare COI N/A $75,000 $75,000 $75,000 $75,000

Network Provider COI N/A $75,000 $75,000 $75,000 $75,000

Financial Service Firms 20/30/40 $5,000 $100,000 $150,000 $200,000

Private Sector Cluster Match 4/4/4 $60,000 $240,000 $240,000 $240,000

Southern Illinois University N/A $200,000 $200,000 $200,000 $200,000

Not-for Profits 50/75/100 $500 $25,000 $37,500 $50,000

State Government N/A N/A $300,000 $350,000 $400,000

Federal Government N/A N/A $300,000 $350,000 $400,000

Foundations 2/4/6 $50,000 $100,000 $200,000 $300,000

In-Kind Services N/A N/A $250,000 $250,000 $250,000

Total Investment/Year N/A N/A $1,890,000 $2,230,000 $2,570,000



Phase 2 Implementation Timeline

PHASE 2Implement Collaborative Funding ($1.5 Million/year)

Extend Broadband Connectivity (NP COI)

Recruit More Champions & Leaders (>3,000)

Implement COI Action Plan (through 2012)

Develop/Implement Regional Framework

Develop/Launch Collaborative Leadership Institute

Implement Regional Branding Strategy

Form/Implement Industry Cluster Strategy (10-12 @ 4 minimum/year)

Establish SI Regional Data Portal

Implement Youth Engagement Strategy

Develop/Implement Innovation Ecosystem

Develop/Launch Integrated Finance Strategy

Set Up SI Livable Community Forum


VISION

&

GOALS

VISION

&

GOALS

Year Two Year ThreeJan 2008

Jan 2009

Jan 2010


Chapter 7:Framework for Success



One of the most powerful organizing concepts to deploy in Southern Illinois is the “Starfish” — described in Chapter 3.05 Adaptability Slide 73. This approach can greatly facilitate collaboration, leverage assets spread across SI, and provide an effective pathway around other cultural barriers. This Section applies a starfish-hybrid to a SI Regional Framework and an Innovation Eco-System

— ending the RA with the COIs & ViTAL Economy’s vision of SI’s future.


Recommended Connect SI 501(c)3 Regional Framework: Starfish Hybrid**


**Source: Starfish and the Spider, Brafman & Beckstrom 2006

Connect SI Implementatio

nPartners

Connect SI501(c)3 BoardCollaborative

Funding Partners

Industry Cluster

Steering Committee

Industry Cluster “A”

Industry Cluster “B”

Industry Cluster “C”

Industry Cluster “D”

REGION-WIDEFOCUS

HealthcareCOI Leadership & Sub-Teams

GW COILeadership

Team

Other GE Action Teams

GW Action Team “A”

GW Action Team“B”

GW Action Team “C”

GW Action Team “D”

Future GW Action Teams

COI-Specific FOCUS

S5 COILeadership

Team


S5 Action Team “A”

S5 Action Team“B”

S5 Action Team “C”

S5 Action Team “D”

Future S5 Action Teams

SE COILeadership

Team

Connect SI Strategy


SE Action Team “A”

SE Action Team“B”

SE Action Team “C”

SE Action Team “D”

Future SE Action Teams

Cross-Regional Collaboration

Network ProvidersCOI Leadership &

Sub-Teams

Connect SIStrategy

GE COILeadership

Team


GE Action Team “A”

GE Action Team“B”

GE Action Team “C”

GE Action Team “D”

Future GE Action Teams


Recommended Connect SI 501(c)(3) Regional Framework: Notes

• Framework insures that long term success is not dependent on what government is in power

• Connect SI: o Advisory board positions are as currently designated with addition

of two industry cluster reps from the Industry Cluster Steering Committee

o Staff and leadership are responsible for collaborative funding & CED strategy

o Project implementation occurs through regional collaborative partners

o Remains an initiative sponsored by SIU as a regional partner• Region specific activities managed by regional COIs• SI Region-wide activities serving all COIs managed by

Connect SI 501(c)(3)


Source: Starfish and the Spider, Brafman & Beckstrom 2006


Economic Growth Can Be Greatly Stimulated by Implementing an Innovation Eco-System™

SI Incubator, Finance & Innovation Starfish Network

— the KBE-Engine of Connect SI —

SI Entrepreneurs Served by SharedRegional Network

Of Incubator Centers of Excellence

Life Cycle Equity and Debt

Finance Resources

Global Best PracticeTechnical Support

Teams

Broadband-Enabled

SI Entrepreneurs Served by SharedRegional Network

Of Incubator Centers of Excellence

Life Cycle Equity and Debt

Finance Resources

Global Best PracticeTechnical Support

Teams

Broadband-Enabled

W. FrankfortBusinessIncubator

GE IncubatorTech Transfer

Dixon SpringsAg-Tech Incubator

SWI Retail Incubator

Edwardsville

Ethanol Research

Center

SIU MedicalSchool

GW Incubator

Coal ResearchCenter

S5 SBDC

SE SBDC

EntrepreneurCenter

Centralia EC

SIUE-EC

IMEC

MedicalTechnologyIncubator

InternationalIncubator


Source: Starfish and the Spider, Brafman & Beckstrom 2006


Innovation Eco-System™: Benefits

A self-sustaining system whose individual members benefit from each others

participation via symbiotic relationships

Relationships established across different industries become mutually

beneficial and self-sustaining

GOAL: to generate entrepreneurial ventures within the economy

served by the Ecosystem

Composed of a series of connected but separately controlled innovation assets:• Business Incubators• Technology Transfer Resources• University Research Centers of Excellence• Entrepreneur and Innovations Assets• Workforce Development Assets• SBDC Resources• Community Colleges• Integrated Equity & Debt Finance Framework

The SI Ecosystem becomesa first-mover/pioneer that is

very difficult for other regions to emulate

The region exhibits network effects establishing lock-inmaking the cost of moving

prohibitive

SI takes on gazelle-like

behaviors (speed & agility) that

attract and retain entrepreneurs,

venture capitalists and students

1 2

37

45

6



LOOKLOOK FEELFEELACTACT

Source: Milestone Visioning Exercise from GW, GE and S5

CSI Participants: Vision of SI’s Future

Construction is going onDowntowns look niceSense of pride in our

properties; less trash, more flowers

More ideal retail availableBroadband is everywhereNatural beauty, farmlands

are preservedNew housingMaintain our historical

buildings; respect our heritage

Good mix of industry and business

Healthcare is widely available

Smart use of the brownfields

Construction is going onDowntowns look niceSense of pride in our

properties; less trash, more flowers

More ideal retail availableBroadband is everywhereNatural beauty, farmlands

are preservedNew housingMaintain our historical

buildings; respect our heritage

Good mix of industry and business

Healthcare is widely available

Smart use of the brownfields

More educational opportunities

People are doing business outside of the area; world markets

Intentionally acting in a collaborative manner

Street talk has changed to newest activities and additions to the community

Business able to compete in the global economy

People are proud of their community

“Walk the Talk”Comfort with risk and

entrepreneurship and innovation

Middle-aged and older folks are not afraid of IT

More educational opportunities

People are doing business outside of the area; world markets

Intentionally acting in a collaborative manner

Street talk has changed to newest activities and additions to the community

Business able to compete in the global economy

People are proud of their community

“Walk the Talk”Comfort with risk and

entrepreneurship and innovation

Middle-aged and older folks are not afraid of IT

Positive perception of the area

Pride in the communityNew people feel welcome,

open door feelingWe are a “20 county” regionSI is a world recognized

regional brandValue education and a

sense of communityHigh school students feel

good about staying in the region

A new cultural atmosphereMore young people bring a

vibrancy to the regionStrong small town

environment

Positive perception of the area

Pride in the communityNew people feel welcome,

open door feelingWe are a “20 county” regionSI is a world recognized

regional brandValue education and a

sense of communityHigh school students feel

good about staying in the region

A new cultural atmosphereMore young people bring a

vibrancy to the regionStrong small town

environment



VE’s Vision of SI’s Future

Southern Illinois is the global location where inter-generation active lifestyle families, visitors & KBE workers choose to live work and play — growth abounds

SI’s historic liability of remoteness & lack of access becomes an asset; instead of forgotten by Chicago, Springfield and Washington, SI is a land & lifestyle that is treasured, respected, sought after and envied — there is only one SI in the World

SI communities see themselves in a new light — are respectful of their place, see themselves as gateways to a land that is "The Garden of The Gods"

Tourism venues, town centers,rural lands, business locations and neighborhoods all demonstrate by their look and feel that SI is a very special place to be preserved and enhanced for all time

SI is a place of welcome for people of all cultures whether visiting or living here; in the Land of "The Garden of the Gods", all are welcome and of value

It is a place many want to be, but only the fortunate choose to take advantage of this unique opportunity — SI becomes a place that is worth a premium, rather than one that feels it must offer a discount to be desired

Source: ViTAL Economy Alliance


©2007 ViTAL Economy, Inc. 1 Southern Illinois: Garden of the Gods Readiness Assessment Chapter 7:...

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