This presentation provides a baseline assessment of the emerging practice of Inclusive Regional Economic Growth and an economic framework for identifying key challenges and opportunities for aligning growth and inclusion; highlights innovations and issues in the emerging practice; and offers observations about how to better coordinate and scale the practice.

1. © RW Ventures, LLC 2014© RW Ventures, LLC 2014
Inclusive Regional Economic
Growth
CEOs for Cities National Meeting
Nashville, TN
November 5, 2014
Robert Weissbourd

2. © RW Ventures, LLC 2014
Agenda
I. Scope -- Economics
II. The Inclusive Growth Paradox
III. What is “Inclusive Growth”?
IV. Implications for Practice
V. Examples
2

3. © RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Social
Political
Economic

4. © RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Values
Governance
Prosperity
Social
Political
Economic

5. © RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Values
Governance
Prosperity
Social
Political
Economic
Erosion
Corruption of
Political System
Returns to Capital

6. © RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Values
Governance
Prosperity
Social
Political
Economic
Erosion
Corruption of
Political System
Returns to Capital
Moral Imperative
Political Economy
Inclusive Economic
Growth

7. © RW Ventures, LLC 2014
Scope – Systems Influencing Inclusive Growth
3
Why Care Causes of Exclusion Fixes
Values
Governance
Prosperity
Social
Political
Economic
Erosion
Corruption of
Political System
Returns to Capital
Moral Imperative
Political Economy
Inclusive Economic
Growth

8. © RW Ventures, LLC 2014
The Inclusive Growth Paradox
Drivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
Lowest
Quintile
Second
Quintile
Middle
Quintile
Fourth
Quintile
81st - 99th
Percentiles
Top 1
Percent
Changes in Share of Total Household Income,
1979 - 2007
1979 2007
Nonfinancial Corporations Sector
Labor Share
140
120
100
80
60
40
20
0
1940 1950 1960 1970 1980 1990 2000 2010 2020
2013 research.stlouisfed.org
Index 2005=100
Profits

9. © RW Ventures, LLC 2014
The Inclusive Growth Paradox
-.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
Inequity is bad for growthDrivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
Lowest
Quintile
Second
Quintile
Middle
Quintile
Fourth
Quintile
81st - 99th
Percentiles
Top 1
Percent
Changes in Share of Total Household Income,
1979 - 2007
1979 2007
Sources: Federal Reserve Bank of St. Louis;
Congressional Budget Office; RW Ventures Analysis
Nonfinancial Corporations Sector
Labor Share
140
120
100
80
60
40
20
0
1940 1950 1960 1970 1980 1990 2000 2010 2020
2013 research.stlouisfed.org
Index 2005=100
Profits

10. © RW Ventures, LLC 2014
The Inclusive Growth Paradox
-.20.2.4.6
WageGrowth(1990-2000)
0 .1 .2 .3 .4
Poverty Rate (1990)
Inequity is bad for growthDrivers of growth exacerbate inequity
0.0
10.0
20.0
30.0
40.0
Lowest
Quintile
Second
Quintile
Middle
Quintile
Fourth
Quintile
81st - 99th
Percentiles
Top 1
Percent
Changes in Share of Total Household Income,
1979 - 2007
1979 2007
Sources: Federal Reserve Bank of St. Louis;
Congressional Budget Office; RW Ventures Analysis
INCLUSION
is a
BUSINESS IMPERATIVE
Nonfinancial Corporations Sector
Labor Share
140
120
100
80
60
40
20
0
1940 1950 1960 1970 1980 1990 2000 2010 2020
2013 research.stlouisfed.org
Index 2005=100
Profits

11. © RW Ventures, LLC 2014
What is Inclusive Growth?TotalWealth
Distribution of Wealth
5

12. © RW Ventures, LLC 2014
What is Growth?TotalWealth
Distribution of Wealth
6

13. © RW Ventures, LLC 2014
What is Growth?
Distribution of Wealth
TotalWealth
Change in Height (Accumulation)
7

14. © RW Ventures, LLC 2014
What is Equity?TotalWealth
Distribution of Wealth
8

15. © RW Ventures, LLC 2014
What is Equity?TotalWealth
Change in Slope of Line (Distribution)
Distribution of Wealth
9

16. © RW Ventures, LLC 2014
What is Inclusive Growth?TotalWealth
Distribution of Wealth
10

17. © RW Ventures, LLC 2014
What is Inclusive Growth?TotalWealth
Change in Accumulation and Distribution
Distribution of Wealth
11

18. © RW Ventures, LLC 2014
What is Inclusive Growth?TotalWealth
Change in Accumulation and Distribution
How can we enable this growth….
…with a more equitable
distribution?
Distribution of Wealth
11

19. © RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
12

20. © RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
13

21. © RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
14

22. © RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
14

23. © RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
15

24. © RW Ventures, LLC 2014
Inclusive Regional Economic Growth
(IREG): Implications for Practice
 “It’s the Economy, ….” Focus on opportunities for value
creation: specific assets, markets and growth drivers
16

25. © RW Ventures, LLC 2014
Inclusive Regional Economic Growth
(IREG): Implications for Practice
 “It’s the Economy, ….” Focus on opportunities for value
creation: specific assets, markets and growth drivers
 “Skate to Where the Puck is Going to Be.” It’s the next
economy. Stop putting poor people in old economy jobs
and businesses!
16

26. © RW Ventures, LLC 2014
Inclusive Regional Economic Growth
(IREG): Implications for Practice
 “It’s the Economy, ….” Focus on opportunities for value
creation: specific assets, markets and growth drivers
 “Skate to Where the Puck is Going to Be.” It’s the next
economy. Stop putting poor people in old economy jobs
and businesses!
 Inclusion is Not a Separate Economic Practice: it’s an
intentional, integral part of every growth activity
16

27. © RW Ventures, LLC 2014
Inclusive Regional Economic Growth
(IREG): Implications for Practice
 “It’s the Economy, ….” Focus on opportunities for value
creation: specific assets, markets and growth drivers
 “Skate to Where the Puck is Going to Be.” It’s the next
economy. Stop putting poor people in old economy jobs
and businesses!
 Inclusion is Not a Separate Economic Practice: it’s an
intentional, integral part of every growth activity
 Operationalize as a Core Design Principle from the start
of (not an afterthought or ancillary) and throughout
(strategies, products, management …) each initiative and
enterprise
16

28. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Market Levers Driving Next Economy Growth …
17

29. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
Market Levers Driving Next Economy Growth …
 Functional clustering
 Shift towards SMEs
 More deliberate, open,
flexible, collaborative
 Cluster restructuring 
new entrepreneurship
and SME opportunities
 Innovation Districts
 Formal and
informal
economic
networks
 Cross Sector
Initiatives
 Transparency,
openness
 Move towards compact,
well-connected urban form
 Mobility and
matching
 Segmented,
continuous,
contextual
training
 Occupational-
technology-
firm pools
17

30. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
… Create Huge Opportunities for Inclusion
18

31. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Enhance
Regional
Concentrations/
Clusters
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago
FOOD
18

32. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago
FOOD
Targeted
inclusive training
for emerging
industries:
YearUp
18

33. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago
FOOD
Doer-Maker Space:
Blue1647
Targeted
inclusive training
for emerging
industries:
YearUp
18

34. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago
FOOD
Doer-Maker Space:
Blue1647
Neighborhood/
Sub-Regional
Business
Planning:
Greater Chatham
Initiative
Targeted
inclusive training
for emerging
industries:
YearUp
18

35. © RW Ventures, LLC 2014
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Deploy
Human Capital
Aligned with
Job Pools
Increase
Spatial
Efficiency
Create Effective
Public & Civic
Culture &
Institutions
Enhance
Regional
Concentrations/
Clusters
Develop
Innovation-
Enabling
Infrastructure
… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago
FOOD
Doer-Maker Space:
Blue1647
Neighborhood/
Sub-Regional
Business
Planning:
Greater Chatham
Initiative
Industrial land reuse:
Casey-Atlanta
Targeted
inclusive training
for emerging
industries:
YearUp
18

36. © RW Ventures, LLC 2014© RW Ventures, LLC 2014
Inclusive Regional Economic
Growth
CEOs for Cities National Meeting
Nashville, TN
November 5, 2014
Robert Weissbourd