REI Summary Horizontal.v.2.4

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111 9 B e l l f l o w e r R d . C l e v e l a n d , O H 4 4 1 0 6 t e l e p h o n e : 2 1 6 . 3 6 8 . 5 11 0 w w w. r e i . c a s e . e d u

Table of Contents

Executive Summary A Brief History of REI The REI Strategy REIs Major Accomplishments Since 2003 Testimonials of REIs Performance Open Source Economic Development Model Current REI Initiatives REI.Tuesdays Alignment of REI with Open Source Economic Development Alignment of REI Initiatives with University StrategyC a s e C e n t e r f o r R e g i o n a l E c o n o m i c I s s u e s

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Alignment of REI Initiatives with Weatherhead Strategy APPENDIX: Estimating the Marketing Value of REI to Case APPENDIX: The University Strategy APPENDIX: The Emerging Weatherhead Strategy

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Executive SummaryPurpose This document provides insights into the role that the Case Center for Regional Economic Issues (REI) plays at the University. This document is a companion to the REI business plan. REI has begun building clusters of innovative businesses in Northeast Ohio. The model of Open Source Economic Development, developed by REIs Executive Director Ed Morrison, generates the strategy maps needed to build these clusters. These clusters include businesses forming around: A new approach to preventive health care and disease management; Creative digital media; Bio-fuels production and distribution, as well as other new energy sources; Hybrid electric vehicles; Advanced logistics education and training; Tele-working with advanced IT infrastructures; Automation and training for component manufacturing.

Next Steps Weatherhead and the University should determine how they will support REIs strategy for growth.

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A Brief History of REI Founded in 1983 by the business leadership in Cleveland, following the recommendation of a Rand report. The recommendation encouraged the citys leadership to establish an analytic capability to shape economic development policies and programs. The REI concept sought a unique mix of research and practice. The original purpose of REI was to 1) monitor the Cleveland metropolitan economy; 2) develop a research agenda that identies the long-term, structural causes of change inthe regional economy; and 3) provide a forum for informed policy choices. The Cleveland Foundation made a ten year commitment to REI. The commitment was to provide investment that could be leveraged to develop REI into a permanent community resource. Cleveland State University provided the original home for REI. Michael Fogarty appointed as the rst director. In 1984, REI moved to the Federal Reserve Bank after a dispute with CSU. REI moved to Case in 1986 as a new Center for Regional Economic Issues at the Weatherhead School. REI reected a partnership among Case, the Federal Reserve Bank, and the Cleveland Foundation. In 1987, REI received a ve year grant from the Ameritech Foundation (now the SBC Foundation). In 1994, Ameritech established an endowed chair. The original purpose of the chair were 1) to provide funds to support REI and 2) to support a person with sufcient publications to warrant the title of professor. Fogarty held the Ameritech chair from 1994 to 1998. In 1998, Richard Shatten was appointed director of REI. Shatten, a former McKinsey consultant, refocused REI on the practical aspects of economic development strategy. Case agreed to change the title of the chair to Ameritech Chair for the Practice so the funds could be used to support Shatten and REI. In 2002, Richard Shatten died. At the time of his death, Shatten had built the Center into the permanent community resource originally envisioned by the founders. The Cleveland and Gund Foundations were continuing to

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each provide $100,000 a year in funding. In addition, prior to Shattens death SBC Foundation announced a four year $1 million grant to REI. At the time of his death, REI held reserve balances in excess of $400,000. In 2002, the administration of the Weatherhead School decided to split the position of director into two positions: an executive director with practical experience in economic development and an academic director. In 2003, the Dean of the Weatherhead School recruited Ed Morrison to be executive director and Scott Shane to be the academic director. Morrison assumed his position in August, 2003. To refocus REI as a think and do tank, Morrison reorganized REIs activities around the model of Open Source Economic Development. This model demonstrates to civic leaders how to build regional economies based on open innovation systems, sometimes called clusters. Morrison developed the model during his twenty years of practice as an economic development consultant to cities, states and regions. To cut costs, Morrison led a reorganization plan with the University to reduce the permanent University positions at REI from six to two. In March 2004, Morrison submitted core funding requests to The Cleveland Foundation and the Gund Foundation to assist in rebuilding REI. These funding requests are still pending. To build a foundation for cluster development in Northeast Ohio, Morrison worked with Steve Minter at Cleveland State University to launch the Universities Collaborative, a practical economic development partnership among the regions colleges and universities. To meet REIs obligations to the SBC Foundation, REI began a series of weekly events, REI.Tuesdays that launched the Open Source model in Northeast Ohio; doubled the number of annual meetings to two a year; and strengthened its relationship with ideastream, the local public television station. In 2004, ideastream and REI announced a new partnership with MacNei Lehrer Productions to conduct citizen deliberations on education and the economy in Northeast Ohio. REI accepted an invitation from the Indiana Humanities Council to introduce the Open Source model at twelve regional forums in Indiana in 2005. As part of this work, REI has formed a partnership with Purdues new Center for Regional Development.

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The REI StrategyVision Establish Case, Northeast Ohio and REI as global leaders in advanced regional economic development. Mission Provide the practices and tools to transform regional economies and achieve sustainable growth. Strategic Activities Conduct research.-- Create and grow a portfolio of actionable hypotheses for building REIs intellectual property; Build open innovation networks.-- Incubate and support innovative, collaborative networks -- clusters -- that improve regional economic performance; Develop products and services.-- Create and market a portfolio of products and services to increase advanced regions economic development effectiveness; Educate.-- Conduct civic discussions, classroom activities and public policy debates to promote creative, innovative and sustainable development practices. Metrics Building Cases national brand Generating funds for the University

Sample Initiatives Conducting research Analyze cost structure of Cuyahoga County government Analyze workforce development systems in Northeast Ohio Analyze Ohio aerospace markets

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Design a Cleveland innovation zone

Building open innovation networks Incubate a new Center for Health and Disease Management Incubate a new bio-diesel distribution business in East Cleveland Build network of sustainability organizations in Northeast Ohio Develop open innovation system for small component manufacturers in Northeast Ohio Developing products and services Promote Open Source Economic Development model Publish EDPro Weblog Develop electronic magazine on innovation in Northeast Ohio Educating civic leaders Conduct weekly dialogues on creativity and innovation in Northeast Ohio Conduct semi-annual meetings on regional economic development in Northeast Ohio Promote the policy connection between early child care and economic development Develop framework for regional, national and international energy policy analysis

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REIs Major Accomplishments Since 2003 Created the Universities Collaborative, an economic development partnership among Case, Cleveland State University, Kent State University, Lorain County Community College, The University of Akron, and Youngstown State University. The Universities Collaborative, developed in consultation with the Northeast Ohio Council on Higher Education (NOCHE), provides the foundation for cluster development in Northeast Ohio. Launched a strategy to build innovative networks (clusters) in Northeast Ohio. These initiatives include: A new cluster in predict and prevent health care; A new cluster for bio-fuels production and distribution; A partnership with TransTech to develop a hybrid electric vehicles demonstration project; A new cluster in creative digital media; An innovation and training consortium among small component manufacturers;

Conducted 78 REI.Tuesday forums to launch the Open Source Economic Development model. REI.Tuesdays generated over 2,700 visits to the Peter B. Lewis Building by members of the community. Incubated a series of economic development initiatives, based on discussions at REI.Tuesdays: A new cluster of businesses involved in supporting teleworking REAL NEO, a new community-based platform for collabora