Skills and Innovation Strategies to Strengthen Advanced Manufacturing

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

Munich, Germany / November 18, 2014@bruce_katz! #globalcities

Payroll Count Jobs Gap Growth-Based Jobs Gap

-10,000,000

-5,000,000

0

5,000,000

2007 2009 2014

Source: The Hamilton Project analysis of Congressional Budget Office and Current Employment Statistics data.

Post-Recession U.S. Jobs Gap !Since start of recession

Payroll Count Jobs Gap Growth-Based Jobs Gap

-10,000,000

-5,000,000

0

5,000,000

2007 2009 2014

Source: The Hamilton Project analysis of Congressional Budget Office and Current Employment Statistics data.

5.2 million!missing jobs

Post-Recession U.S. Jobs Gap !Since start of recession

1 2 3

The U.S. Manufacturing Moment1

2 3

Blurring distinction between

manufacturing and services

Relentless pace of technological

change

Shale gas and domestic energy

revolution

R&D-intensive industries that concentrate the nation’s science, technology, engineering, and mathematics (STEM) workforce

Advanced Industries

Pharmaceuticals

Medical EquipmentMotor Vehicles & Parts

Aerospace

Manufacturing35

Advanced Industries

Pharmaceuticals


Aerospace

Manufacturing35

Oil & Gas !Extraction

Electricity !Generation

Energy3

Advanced Industries

Pharmaceuticals


Aerospace

Manufacturing35

Software Computer Systems Design

Telecommunications R&D Consulting Services

Services12

Oil & Gas !Extraction

Electricity !Generation

Energy3

Advanced Industries

advanced industry jobs require less than a 4-year degree

1 out of 2

Wages

average advanced industry wage

$90,000average wage

$47,000>

Skills

Source: Brookings Analysis of Moody’s Analytics and BLS OES Data

Advanced Industries

PatentsGDP

Advanced Industries!Share of U.S. Totals

Share of GDP Growth

’09 – ’13

Share Job Growth

’09 – ’13

R&DJobs Exports

*Advanced Industries spend over $450 on R&D per job annually and over 20 percent of jobs are in STEM occupations. Source: Brookings Institution forthcoming.

Advanced Industries

Drive Productivity in Other Industries

Stimulate Local Economies

Support Long!Supply Chains

Develop Technology that Transforms Lives

Advanced Industries

Innovation Skills Ecosystems

Advanced Industries

Japan

3.5% 4.4%

France United States

United Kingdom

3.1%

European Union

5.0%3.8%

Germany South Korea

China

5.5%

10.9%

20.7%Growth of Domestic R&D Expenditures!

Average Annual Growth, 2001-2011

Source: National Science Foundation, SEI 2014

Innovation

Innovation

Triadic patents per million workers 2010-2012 average

400

300

200

100

0

Switz

erlan

d

Swed

en

Japa

n

Finlan

d

Ger

man

y

Nethe

rland

s

United

Sta

tes

Denm

ark

Israe

l

Korea

Fran

ce

Belgium

Austri

a

United

King

dom

Luxe

mbo

urg

Irelan

d

Norway

Canad

a

Singap

ore

Advanced Industries


Percentage of graduates majoring in STEM fields

1

…

31

32

33

34

35

26.7%

…

21.9%

21.8%

19.3%

19.2%

18.7%

Germany…

AustraliaPoland

United StatesChileJapan

RANK VALUE

Source: OECD Global Skills Survey

Skills

Source: US Census Bureau, 2010 American Community Survey

Hispanics

19%

African Americans

Non-Hispanic Whites

Asians

25%39%

56%

Educational Attainment!Associate’s Degree or Higher

United States

36%

Skills

Source: US Census Bureau, 2010 American Community Survey

Hispanics

19%

African Americans

25%

Educational Attainment!Associate’s Degree or Higher

Skills

Advanced Industries


1980 2013

Major metropolitan areas with at least 10 percent of total employment in advanced industries

Ecosystems

Ecosystems

Decrease in large, integrated R&D

operationsOutsourcing of manufacturing

Diminishing job tenure and

internal training

1 2 31

2

3

Lessons from Germany

Manufacturing and the Export Economy!United States versus Germany

100

50

0Share of GDP

in mfg

Share of mfg GDP in high-tech

Exports as share of

GDP

Mfg share of mech. exports

2212

58

4254

7

82

62+$425 b

-$668 b

German trade balance in manufacturing

U.S. trade balance in manufacturing

Germany

United States

Advanced Industries


Innovation!Platform

Workforce & Skills Pipeline

Regional !Ecosystems

Public Funding Private Funding

Basi

c Re

sear

chAp

plie

d Re

sear

ch Innovation!Platform

Lander!Institutions

Universities Helmholtz!Association

Federal!Institutions

Max Planck!Society

Academies

Research Infrastructures

Leibniz!Association

Fraunhofer-!Gesellschaft

Networks and !Clusters

Companies/Industrial Research


Basi

c Re

sear

chAp

plie

d Re

sear


Industrial Research !Associations (AIF)

centers6723,0006-8,000

employees

projects per year

!

$2 billion annual research

SMEs

centers6723,0006-8,000

employees

projects per year

!

$2 billion annual research

Lander!Institutions

Universities Helmholtz!Association

Federal!Institutions

Max Planck!Society

Academies

Research Infrastructures

Leibniz!Association

Fraunhofer-!Gesellschaft

Networks and !Clusters

Industrial Research !Associations (AIF)

Companies/Industrial Research


Basi

c Re

sear

chAp

plie

d Re

sear



Innovation!Platform


Wor

kfor

ce &

Ski

lls

Pipe

line

Completion of Lower Secondary School

Wor

kfor

ce &

Ski

lls

Pipe

line

15% Fachoberschulen & Berufsfachschulen!Full-time technical education and training.

Wor

kfor

ce &

Ski

lls

Pipe

line

Com

plet

ion

of L

ower

Sec

onda

ry S

choo

l


30% Gymnasium!Continued classroom studies and the!pathway to university.

Wor

kfor

ce &

Ski

lls

Pipe

line

Com

plet

ion

of L

ower

Sec

onda

ry S

choo

l

Dual Berfusauddildung!The dual system of training in which students train 3-4 days per week, complemented by teaching in vocational school 1-2 days per week !

45%


30% Gymnasium!Continued classroom studies and the!pathway to university.

Wor

kfor

ce &

Ski

lls

Pipe

line

Com

plet

ion

of L

ower

Sec

onda

ry S

choo

l


45%

15%

30%

Fachoberschulen & Berufsfachschulen!Full-time technical education and training.

Gymnasium!Continued classroom studies and the!pathway to university.

Wor

kfor

ce &

Ski

lls

Pipe

line

Com

plet

ion

of L

ower

Sec

onda

ry S

choo

l


45%

15%

30%

Fachoberschulen & Berufsfachschulen!Full-time technical education and training.

Gymnasium!Continued classroom studies and the!pathway to university.

Innovation!Platform



Munich

Aschheim

Neufarn

Ismaning

Am Hart

Oberschleissheim Regional !Ecosystems

1 2 31 2

3 Delivering the German !Model in the United States

Advanced Industries


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

Munich, Germany / November 18, 2014@bruce_katz! #globalcities

Metropolitan Policy Programat BROOKINGS

Skills and Innovation Strategies to Strengthen Advanced Manufacturing

Economy & Finance

Transcript of Skills and Innovation Strategies to Strengthen Advanced Manufacturing