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