1. Driving Washington’s Prosperity
A Strategy for Job Creation and Competitiveness
Presented to:
Senate Trade & Economic Development Committee
January 29, 2013
Olympia, Washington
TACTC Legislative Contact Conference
January 30, 2013
Olympia, Washington
Presented by:
Steve VanAusdle, Vice-Chair, WEDC
Egils Milbergs, Executive Director, WEDC
Washington Economic Development Commission (www.wedc.wa.gov)

2. Jobs, Wages, and
Standard of Living
Productivity*
Innovation and Entrepreneurship
Talent Investment Infrastructure Regulations Trade
*Improving Productivity will require more innovative uses of existing resources.

3. Our mandate: Foster Innovation Economy
“Legislature finds that in order to achieve long-term
global competitiveness, prosperity and economic
opportunity for all the state’s citizens, Washington
state must become the most attractive, creative and
fertile investment environment for innovation in the
world…”
An act relating to
WA Economic Development Commission ‒ Intent
RCW 43.162.005
WA Economic Development Commission 3

4. Our Mandate: Foster Innovation Economy
“Provide leadership, direction and guidance for…”
– Shared economic development vision
– Long-term, strategic policy model
– Public-private partnership
– Collaboration across boundaries
– Data standards and evaluation of state economic
development system
– Recommendations to Governor and Legislature
An act relating to
WA Economic Development Commission
RCW 43.162
WA Economic Development Commission 4

5. Commission Membership

6. The problem we need to solve!
50 Jobs Recovery Since Start of Recession
Seasonally adjusted non-farm employment, based on 3mma
April 2008
Difference with Initial Period Employment
0
(Thousands of Workers)
-50
-85.1
-100 2001 Recession (3 quarters)
Current Recession
-150
-197.73
-200
56 months
-250
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55
Data source: U.S. Bureau of Labor Statistics
Months of Recovery
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7. Largest Absolute Changes in Employment
October 2012 year-over-year, based on 3 month moving average
WEDC 2.0 7
Data source: Washington State Employment Security Department.

8. Largest Manufacturing Sectors, 2011
By employment, four digit NAICS
15.0% Aerospace Product and
Parts Manufacturing Seafood Product
10.0% Preparation and
Fruit and Vegetable
Preserving and Specialty Packaging
5.0% Food Manufacturing
0.0% Navigational, Measuring,
Employment Change, 2007-2011
Electromedical, and Control
-5.0% Instruments Manufacturing
Ship and Boat Building
Other Miscellaneous
-10.0% Manufacturing
Semiconductor and Other
-15.0% Electronic Component
Manufacturing
Architectural and
-20.0% Structural Metals
Manufacturing
-25.0% Plastics Product
Sawmills and Wood
Manufacturing
Preservation
-30.0%
-35.0%
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0
Data source: U.S. Bureau of Labor Statistics, Location Quotient, 2011
Census of Employment and Wages; author’s calculations.
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9. Change in Non-Farm Employment by Metro Area
November 2012 year-over-year, based on 3 mma, seasonally adj.
Bellingham 4.5%
Seattle-Bellevue-Everett 3.0%
Tacoma 2.7%
Mount Vernon-Anacortes 2.0%
Spokane 2.0%
Yakima 1.8%
Wenatchee-East Wenatchee 0.8%
Olympia 0.8%
Longview 0.2%
Bremerton-Silverdale -0.1%
Kennewick-Pasco-Richland -1.0%
Rest of State -1.5%
-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%
Data source: U.S. Bureau of Labor Statistics,WA Economic Development Commission
Current Employment Statistics. 9

10. Unemployment rates by county, Nov. 2012
Data source: U.S. Bureau of Labor Statistics, Current Employment Statistics.
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11. Resetting the Economic Development Model
Recruitment-driven Innovation-driven
Investing in company Investing in talent, ideas and
relocation infrastructure
Preserve jobs, safety nets Create jobs, grow incomes
Top down development, Bottom-up organic growth,
short-term fixes long-term view
Competing regions, closed Collaborating regions, open
systems innovation
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12. Tuning the productivity engine in response
Innovation in five drivers for jobs and competitiveness
Investment
Improvement
(regulatory)
Intellect International
Infrastructure
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14. Driver One: Fueling the Future
Future—Making Talent a Top
Making
Priority 1. Create jobs for
Washingtonians and industry
needs by achieving 60% post-
talent a secondary degrees & credentials.
top priority 2. Increase pool of qualified
workers by emphasis on STEM
proficiencies and career and
Prof. technical education at the HS
Prof.
level.
Technical Technical
Unskilled Unskilled
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15. Driver Two: Adding Horsepower
Future—Making Talent a Top
Priority
Investing in 1. Improve tax and
regulatory policy to foster
entrepreneurship growth of start-ups and job
creating business clusters
2. Invest in world class
research talent, assist new
enterprise formation and
help connect the state's
research base to industry,
entrepreneurs and investors.
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16. Driver Three: Paving the Way
Future—Making Talent a Top
Priority
1. Implement alternative
Connecting financing mechanisms for
transportation infrastructure for
through reliable asset preservation, freight
mobility and investment in
infrastructure economic corridors.
2. Require economic
development and long term job
creation criteria in the capital
budgeting process.
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17. Driver Four: Running Lean
Future—Making Talent a Top
Regulating
Priority
1. Systematically review on
Smarter sector-by-sector basis all state
regulations for their cost-
effectiveness and determine
overlaps, excessive costs,
obsolescence, redundancy and
solutions.
2. Expand agency use of lean
process improvement to lower
cost of regulatory compliance
and reduce time delays.
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18. Manufacturing Testimony to Senate
Christina Lomasney, Modumetal
November 29, 2012
WA Economic Development Commission 18

19. Driver Five: Firing on all Cylinders
Future—Making Talent a Top
Expanding
Priority
1. Intensify innovation and
international collaboration in the Pacific
Northwest economic region and
business support cross-border projects for
economic diversification, expanded
trade and jobs.
2. Drive job creation through a
coordinated system of trade
services between the programs of
Washington State and regional and
federal programs.
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20. Strategy Framework in Action
Strategically Targeted Researchers - STARS
Scientific teams in:
• Energy systems
• Smart Grid
• Bio-fuels
• Energy Storage
University of Washington – STARS Washington State University – STARS
Daniel Kirchen, Jonathan Posner Jihui Yang, UW Brandon Pierquet, UW Birgitte Ahring Chen-Ching Liu
UW UW Next Generation Design of electronic WSU WSU
Smart Grid Next Generation Batteries systems power Biofuels Smart Grid
Batteries & Energy Recovery electronics, electric
& Fuel Cells vehicles
WA Economic Development Commission

21. Strategy Framework in Action
20 Entrepreneurs in Residence
Since inception:
24 EIRs, 59 start-ups, 68 opportunities in the pipeline
11 EIRs, 8 start-ups, 107 direct jobs
2 Regional EIRs, pilot program to foster partnerships, 9
opportunities in the pipeline
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22. Strategy Framework in Action
15 Innovation Partnership Zones
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23. Strategy Framework in Action
Next50 – Innovation Contest
WEDC co-hosted the Commerce & Innovation Economy Month
• Create inspiration short video on Innovation for the next 50 years.
• Judged on Content; creativity, quality, imagination, entertainment, quality
and popularity
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24. Strategy Framework in Action: The Innovation Ecosystem (IPZ) in Walla Walla
Collaborators
K-12 Initiatives Dept. of
Ecology
University Skills Water
Center Center Quality Water Center
Values
Career Watershed
Pathways Restoration
WWCC Collaboration Sustainability Confederated
Mission Tribes
Workforce Water
County Development Efficiency
Excellence
Vision Partnerships
Walla Walla
Watershed
City Foster a Healthy Economy Partnership
Business and a Healthy Environment Salmon
Development Recovery
Renewable Board
Port Integrity
Learning Energy
Infrastructure Economic, Environmental, and
Cultural Sustainability Energy
Wallowa
Innovation Diversity Resources
Chambers of Efficiency
Commerce
Rural Center for Utilities
Entrepreneurship
Entrepreneurship
Downtown Sustainable
Foundation Wine & Hospitality Living Center
Cluster
Tourism Enology &
Walla Walla Viticulture
Art Wine Center
Alliance Alliance

25. As Goes Manufacturing,
So Goes the Washington (and Nation)
 Strong association between manufacturing GDP and
real GDP of a state or nation.
 Integrating new knowledge and producing more
complex products and utilizing more advanced
manufacturing processes leads to greater economic
prosperity.
 The linkage between the knowledge networks and
drivers of advanced manufacturing is a very strong
predictor of the variation in incomes across states and
nations.

26. Teamwork wins this Race!
www.wedc.wa.gov
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