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Innovation Based Economic Development Strategy for Holyoke And INNOVATION-BASED ECONOMIC DEVELOPMENT STRATEGY FOR HOLYOKE AND THE PIONEER VALLEY Prepared For: Massachusetts Technology Collaborative John Adams Innovation Institute Prepared By: HDR Decision Economics 695 Atlantic Avenue, 2FL Boston, MA 02111 In Association With: Fairfield Index, Inc. Dukakis Center for Urban and Regional Policy at Northeastern University Innovation-Based Economic Development Strategy for Holyoke and the Pioneer Valley ACKNOWLEDGEMENTS The Innovation-Based Economic Development Strategy for Holyoke and the Pioneer Valley was developed by a consultant team led by HDR Decision Economics with research and strategy development support from Fairfield Index, Inc., and the Dukakis Center for Urban and Regional Policy at Northeastern University. Dan Hodge of HDR was the project manager. Major sections of the report and strategic plan were developed and written by Dan Hodge, James Moore, Pamela Yonkin, Jon Lee and Marissa Witkowski of HDR; Don Upton and Courtney Manning of Fairfield Index; and Dr. Barry Bluestone and Dr. Joan Fitzgerald of Northeastern University. The Innovation District Design and Development Task Force was integral to creating this strategic plan. They reviewed all interim and final products of this project, participated in multiple briefings and workshop sessions, and acted as a “rudder team” to lead this overall effort. We would like to publicly thank and acknowledge the contributions of the Task Force members: Tim Brennan, Pioneer Valley Planning Commission – Co-Chair Kathleen Anderson, Holyoke Office of Planning and Development – Co-Chair Robert Gilbert, James Dowd and Sons Insurance Agency/Holyoke Chamber of Commerce William Messner, Holyoke Community College Kip Foley, Cover Technologies, Inc. Larry Bay, Holyoke Works Michael Malone, University of Massachusetts John Doyle (in memoriam), CPA and Financial Consultant James Lavelle, Holyoke Gas & Electric Douglas Bowen, Peoples Banks (Holyoke) Allan Blair, Western Massachusetts Economic Development Council Linda Dunlavy, Franklin Regional Council of Governments John Mullin, University of Massachusetts Dianne Fuller Doherty, Western Massachusetts Regional Office – Small Business Development Center Ira Rubenzahl, Springfield Technical Community College Carlos Gonzalez, Massachusetts Latino Chamber of Commerce William Ward, Regional Employment Board – Hampden County Chris Moskal, Springfield Office of Planning and Development Felix Morales Gladys Lebron-Martinez, CareerPoint Elaine Pluta, Mayor of the City of Holyoke Eric Nakajima, Massachusetts Executive Office of Housing and Economic Development Patrick Larkin, John Adams Innovation Institute – Massachusetts Technology Collaborative Michael Vedovelli, Massachusetts Office of Business Development Richard Henderson, MassDevelopment James Kurose, University of Massachusetts Helene Florio, Office of State Senator Michael Knapik Natalie Blais, Office of U.S. Congressman John Olver Brenna Murphy, Office of State Representative Michael Kane Kevin Kennedy, Office of U.S. Congressman Richard Neal Donald Welch, Holyoke City Council MASSACHUSETTS TECHNOLOGY COLLABORATIVE 1 1 MASSACHUSETTS TECHNOLOGY COLLABORATIVE Innovation-Based Economic Development Strategy for Holyoke and the Pioneer Valley The Innovation-Based Economic Development Strategy for Holyoke and the Pioneer Valley was funded by and prepared for the John Adams Innovation Institute of the Massachusetts Technology Collaborative (MTC). The research, analysis, findings, and strategic plan development were guided by MTC’s Innovation Institute staff, led by Bob Kispert and supported by the entire Institute team. Finally, we wish to acknowledge and thank the many individuals who participated in focus groups, workshops, listening sessions and small group conversations in support of this effort. The citizens of Holyoke and the Pioneer Valley heartily joined the conversation and invested personal time at every juncture of this 12 month effort. The commitment of citizens from all walks of life profoundly enriched the dialogue. 2 MASSACHUSETTS TECHNOLOGY COLLABORATIVE Innovation-Based Economic Development Strategy for Holyoke and the Pioneer Valley TABLE OF CONTENTS 1. Introduction .................................................................................................................. 1-1 1.1 Background and Study Objectives ............................................................................ 1-1 1.2 Stakeholder and Public Engagement ........................................................................ 1-1 1.3 Organization of the Report ........................................................................................ 1-2 2. Analysis of Baseline Conditions and Opportunities ....................................................... 2-1 2.1 Economic and Demographic Trends ......................................................................... 2-1 2.1.1 Population .......................................................................................................... 2-2 2.1.2 Income Levels .................................................................................................... 2-4 2.1.3 Employment ....................................................................................................... 2-6 2.1.4 Employment by Occupation ............................................................................... 2-6 2.1.5 Unemployment Rate .......................................................................................... 2-8 2.1.6 Poverty Rates .................................................................................................... 2-9 2.1.7 Crime Rates ..................................................................................................... 2-10 2.2 Industry Sector Analysis.......................................................................................... 2-10 2.2.1 Establishments and Large Employers .............................................................. 2-13 2.3 Real Estate Market ................................................................................................. 2-18 2.3.1 Commercial and Industrial ............................................................................... 2-18 2.3.2 Housing ........................................................................................................... 2-21 2.4 Education and Workforce ........................................................................................ 2-24 2.4.1 Educational Attainment and College Degrees Awarded ................................... 2-24 2.4.2 K-12 Education Performance ........................................................................... 2-28 2.5 Energy, Infrastructure, Transportation ..................................................................... 2-30 2.5.1 Energy ............................................................................................................. 2-30 2.5.2 Fiber Optic Network and Intelligent Transportation Systems Infrastructure ...... 2-32 2.5.3 Transportation .................................................................................................. 2-33 2.6 Innovation Ecosystem ............................................................................................. 2-39 2.6.1 Patents Filed .................................................................................................... 2-39 2.6.2 Research and Development (R&D) Spending .................................................. 2-40 2.6.3 Private Capital ................................................................................................. 2-41 2.6.4 Entrepreneurial Support and Small Business Development ............................. 2-42 3. Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis ............................... 3-1 3.1 Objectives and Standards for SWOT ........................................................................ 3-1 3.2 SWOT Engagement and Process ............................................................................. 3-1 3.3 Demographics ........................................................................................................... 3-1 MASSACHUSETTS TECHNOLOGY COLLABORATIVE 1 1 MASSACHUSETTS TECHNOLOGY COLLABORATIVE Innovation-Based Economic Development Strategy for Holyoke and the Pioneer Valley 3.4 Talent and Workforce ................................................................................................ 3-2 3.5 Energy ...................................................................................................................... 3-4 3.6 Transportation ........................................................................................................... 3-5 3.7 Physical Infrastructure and Sites for Development .................................................... 3-7 3.8 Industries .................................................................................................................. 3-8 3.9 Summary ................................................................................................................ 3-10 3.9.1 Strengths ......................................................................................................... 3-10 3.9.2 Weaknesses .................................................................................................... 3-10 3.9.3 Opportunities ................................................................................................... 3-10 3.9.4 Threats ...........................................................................................................
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