Board of Directors Meeting Agenda

SEPTEMBER 28, 2016 • 2:30 – 5:30 P.M. ET HYATT REGENCY GRAND CYPRESS ONE GRAND CYPRESS BLVD., ORLANDO, FL 32836

MEETING ROOM: GRAND CYPRESS A-C

Welcome & Introduction Britt Sikes

A Conversation with Richard Florida Richard Florida

Chairman’s Remarks Britt Sikes

Consent Item Britt Sikes  Approval of May 2016 Board Meeting Minutes

Action Item Michelle Dennard  Approval for Designation as One-Stop Operators and Direct Provider of Workforce Services

Council Report  Strategic Policy Council Kevin Doyle

Meeting Employer Needs Adrienne Johnston /Dr. Jerry Parrish/ Bob Swindell

President’s Report Chris Hart IV

Open Discussion/Public Comment

Chairman’s Closing Remarks Britt Sikes

UPCOMING MEETINGS

Board of Directors & Councils Teleconference Meetings Nov. 9-10, 2016

Board & Related Meetings February 6-8, 2017

Complete 2017 Board & Related Meeting Dates Coming Soon

Richard Florida Author, thought-leader and researcher

Richard Florida is the world’s leading urbanist. He is an authority on economic competitiveness, demographic trends, and cultural innovation. Florida provides unique, data-driven insight into the social, economic and demographic factors that drive the 21st century world economy. He is a researcher and professor, serving as the Director of the Martin Prosperity Institute at the University of Toronto’s Rotman School of Management, Global Research Professor at New York University, and a Visiting Fellow at Florida International University. He is a writer and journalist, having penned several global best sellers, including the award winning The Rise of the Creative Class and serving as senior editor for The Atlantic, where he co-founded and serves as Editor-at-Large for CityLab. And he is an entrepreneur, as founder of the Creative Class Group which works closely with governments and companies worldwide. A 2013 MIT study named him the world’s most influential thought leader. TIME magazine recognized his Twitter feed as one of the 140 most influential in the world. He previously taught at Carnegie Mellon, Ohio State University, and George Mason University, and has been a visiting professor at Harvard and MIT and Visiting Fellow at the Brookings Institution. He earned his Bachelor’s degree from Rutgers College and his Ph.D. from Columbia University. CareerSource Florida Board of Directors Meeting September 28, 2016 Consent Item 1 Approved______Disapproved______

Consent Item 1

APPROVAL OF MINUTES

______

In accordance with Article VII, Section 7.3, of the approved bylaws, the corporation is required to keep correct and complete books and records of account and shall keep minutes on the proceedings of the board of directors.

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NEEDED ACTION

Approve the draft minutes of the May 26, 2016, meeting of the CareerSource Florida Board of Directors to include any modifications or changes noted by the board.

Draft Board of Directors Meeting Minutes – May 26, 2016 Page 1 of 7

DRAFT MINUTES CAREERSOURCE FLORIDA BOARD OF DIRECTORS MEETING May 26, 2016

CALL TO ORDER

Chairman Britt Sikes called the meeting of the CareerSource Florida Board of Directors to order at approximately 8:30 a.m. ET on May 26, 2016, by welcoming all participants and attendees to the meeting. Chairman Sikes requested a roll call.

ROLL CALL/QUORUM

A quorum was present with the following board members in attendance: Chairman Britt Sikes Elisha Gonzalez Rep. Frank Artiles Jennifer Grove Brittany O. Birken Benedict Grzesik Robert Campbell William Johnson Steve Capehart Thomas McIntosh Timothy Center Edwin Moore Rose Conry W. Alexander Moseley William “Bill” D’Aiuto* Bryan Nelson Bryan da Frota Julie Orange* Duane De Freese Maria Rodriguez Kevin Doyle Sec. Sam Verghese Chancellor Rod Duckworth* Linda Sparks Arnie Girnun Ardian Zika

Board members not in attendance were: Governor Rick Scott, Elli Hurst, Rick Matthews, Sen. Bill Montford, Andy Perez, Rep. Elizabeth Porter, Cissy Proctor, Richard Shriver, Alfredo Stimac and Mike Tomas.

*Designees

CHAIRMAN’S WELCOME & REMARKS

Chairman Sikes welcomed the board members, the CareerSource Florida professional team, led by President and CEO Chris Hart IV, and local workforce development boards to the meeting.

Chairman Sikes acknowledged and thanked the 2016 sponsors: • Platinum Sponsors: o Dex Imaging o Florida Chamber Foundation o Gulf Power Company • Gold Sponsor: o Coldwell Banker Commercial AI Group • Silver Sponsors: o Florida Vocational Institute

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o Independent Colleges & Universities of Florida o New Horizons o StaffTime o U.S. StemCell o Wexford Strategies

Chairman Sikes noted he would provide opportunities for public comment after a motion and second have been made for any consent and action items, and again toward the end of the meeting at the designated time. He also recapped the work of the board during the February meeting (refer to Feb. 3, 2016 Board Meeting Minutes).

BUSINESS HIGHLIGHT

Chairman Sikes introduced CareerSource North Central Florida Executive Director Anne Favre, who introduced Rick Carlson, CEO and founder of Gainesville-headquartered SharpSpring, to present to the board. Mr. Carlson began by expressing his gratitude for the CareerSource Florida network and the role it played in the growth of SharpSpring, a marketing automation company that was formed in 2012 and launched its product in 2014. Mr. Carlson shared the story of his company’s formation, including its rapid growth from three employees in 2012 to an expected 115 employees in Gainesville this coming year. The rapid growth of Mr. Carlson’s company caught the attention of a larger company who purchased SharpSpring, kept the company name and then moved its headquarters from Boston to Gainesville, where 85 people currently are employed with an additional 150 around the world. SharpSpring is expected to have $20 million in revenue this year, and the Gainesville headquarters is expected to grow to 115 employees. With the growth potential in this industry, Mr. Carlson said the company is expected to grow to 200-300 employees. Mr. Carlson said the resources and grants that the network provided have made the difference in the success of his company. The support from the network helped the company hire key employees at a critical time in the company’s development and defer the cost of these employees until they were productive. There are significant barriers to hiring new employees as there is a long training period prior to them making an impact for the company. However, Mr. Carlson, explained the grants solved those problems for SharpSpring as it enabled them to hire faster. Mr. Carlson concluded his presentation by thanking the board. His presentation was followed by a short question and answer session.

CONSENT ITEM

Chairman Sikes explained the Consent Item: Approval of Feb. 3, 2016, Board of Directors meeting minutes.

Chairman Sikes asked for a motion to approve the Consent Item as presented.

Motion: Ed Moore Second: Tim Center Chairman Sikes opened the floor for discussion and corrections. Hearing none, Chairman Sikes opened the floor for public comment. Hearing none, he called for a vote. The motion passed.

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None were opposed. President Hart will sign and annotate the meeting minutes for the official record.

COUNCIL REPORTS

Strategic Policy Council — Chair Jennifer Grove provided a recap of the Strategic Policy Council meeting. The council discussed The Goal and the April Executive Committee meeting. Adriane Johnston, Chief, Bureau of Labor Market Statistics, Department of Economic Opportunity, presented to the council a draft dashboard for measuring Florida’s progress against The Goal. CareerSource Florida Chief Economist Aaron Schmerbeck, PhD, presented an update on the Performance Funding Model and Market Intelligence Portal.

Finance Council — Chair Alex Moseley gave a short recap of the Finance Council meeting, which covered the fiscal year 2016-2017 CareerSource Florida network funding allocations. He then asked CareerSource Florida Chief Operating and Financial Officer Scott Fennell to present the Action Item regarding the funding allocations.

ACTION ITEMS

CareerSource Florida Chief Operating and Financial Officer Scott Fennell presented the Action Item, providing the breakdown of the funding numbers for the total workforce system of $298.8 million:

• WIOA $164.4 million

• TANF $ 59.9 million

• Wagner-Peyser $ 39.1 million

• State Funding (QRT) $ 12.6 million

• Veterans Programs $ 11.5 million

• SNAP E&T $ 9.8 million

• Reemployment Assistance $ 1.5 million

For additional details on the budget as presented, refer to the CareerSource Florida May 2016 meeting agenda packet and PowerPoint presentation on the CareerSource Florida website at http://careersourceflorida.com/boardroom

Action Item 1: Fiscal Year 2016-2017 CareerSource Florida Network Funding Allocations The Board was asked to approve the fiscal year 2016-2017 CareerSource Florida network funding allocations.

Needed Actions

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• Approval of 2016-17 program year federal funding allocations and methodology for the CareerSource Florida network;

• Approval of the fiscal year 2016-17 ITA waiver policy; and,

• Approval of the fiscal year 20161-7 state funding provided in the General Appropriations Act.

Chairman Sikes asked for a motion to approve the Action Item as presented.

Motion: Alex Moseley Second: Ben Grezick Chairman Sikes opened the floor for discussion and questions. After addressing comments by board members, Chairman Sikes opened the floor for public comment. Hearing none, he called for a vote. The motion passed. None were opposed. Chairman Sikes invited CareerSource Florida Vice President of Policy Michelle Dennard and Department of Economic Opportunity Workforce Programs Administrator Trina L. Travis to present the second action item. Action Item 2: Approval of Local Workforce Development Board Plans Under the Workforce Innovation and Opportunity Act The Workforce Innovation and Opportunity Act (WIOA) requires that local workforce development boards develop plans consistent with the state plan that incorporates the core and required partners. Planning instructions outlining the WIOA requirements were distributed to the local workforce development boards in November 2015, and were due to the Department of Economic Opportunity (DEO) on April 30, 2016. The submitted plans have been reviewed by DEO professional team members. After this review, DEO recommended approval of the local plans for all 24 local workforce development boards, contingent on any additional information or approval signatures required. Needed Action

Approval of the local WIOA plans for all 24 local workforce development boards. Chairman Sikes asked for a motion to approve the Action Item as presented.

Motion: Ed Moore Second: Brittany Birken Chairman Sikes opened the floor for discussion and questions. After addressing comments by board members, Chairman Sikes opened the floor for public comment. Hearing none, he called for a vote. The motion passed. None were opposed.

PRESIDENT’S REPORT

Chairman Sikes invited CareerSource Florida President and CEO Chris Hart IV to present his report. President Hart presented an update on the fiscal year 2015-16 corporate goals. He updated the board on the status of:

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• Private funding model – Exponential Analytics

• Workforce Innovation and Opportunity Act implementation

• Redefining the customer experience

President Hart spoke to the CareerSource Florida vision. He also addressed The Goal for the network to be successful.

The Goal: Increase the prosperity of workers and employers; reduce welfare dependency; increase economic self-sufficiency; meet employer needs; and enhance worker productivity and business competitiveness.

President Hart covered the work being done in conjunction with the Department of Economic Opportunity’s Bureau of Labor Market Statistics to create a dashboard to measure progress toward The Goal. He then concluded his official report and addressed comments and questions. Chairman Sikes moved to Public Comment.

PUBLIC COMMENT/OPEN DISCUSSION

Chairman Sikes asked if anyone would like to make a public comment. Angela Pate, with the local region, commented on workforce developments at the national level. She said the Federal Department of Labor Secretary announced that a study of contingent workers will be conducted in 2017. The last time this was studied was in 2005. She also highlighted a couple additional items of interest at the federal level. Chairman Sikes thanked Ms. Pate and moved to his closing remarks.

CHAIRMAN’S CLOSING REMARKS

Chairman Sikes thanked the board and local partners for their participation and engagement. He thanked Mr. Fennell for his ability to present the complex budget numbers in a concise way to the board. He also thanked President Hart for his update and ability to adjust goals as needed. Chairman Sikes recognized outgoing Board members by thanking them for their years of service and dedication in order to help others. Each board member transitioning off the board was presented with a token of recognition in gratitude for his/her service.

Outgoing board members are:

• Jennifer Grove, Gulf Power

• Benedict Grzesik, University of Maryland University College

• Andre Perez, EB5 Visa Funds

• Maria Rodriguez, Youth Co-Op Inc.

• Richard Shriver, Hospital Corporation of America

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• Linda Sparks, Jacksonville Academy of Electrical Technology

• Alfredo Stimac, Metal Essence Inc.

• Florida Department of Elder Affairs Secretary Samuel Verghese

• Julie Orange, designee for Florida Department of Juvenile Justice Secretary Christina Daly

• William D’Aiuto, designee for Florida Department of Children and Families Secretary Mike Carroll

Chairman Sikes highlighted upcoming meetings:

o August 3, 2016: Executive Committee Teleconference

o Sept. 27-29, 2016: Workforce Professional Development Summit/Board of Directors and Related Meetings/Future of Florida Forum, Orlando

o November 9-10, 2016: Strategic Policy and Finance Councils Teleconferences; Board of Directors Teleconference

The meeting adjourned at approximately 12:00 p.m. ET. Refer to the CareerSource Florida May 2016, meeting agenda packet and PowerPoint presentation on the CareerSource Florida website for more information at http://careersourceflorida.com/boardroom. ______

BOARD SECRETARY CERTIFICATION

In accordance with Article VII, Section 7.3, I hereby certify that these minutes reflect the proceedings by the Board of Directors of CareerSource Florida, have been reviewed by the Board, and approved or approved with modifications which have been incorporated herein.

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Chris Hart IV Date Board Secretary

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CareerSource Florida Board of Directors Meeting September 28, 2016 Action Item 1

Approved______Action Item 1 Disapproved______

Approval for Regional Designations as One-Stop Operators and Direct Providers of Workforce Services

Section 445.007(6), Florida Statutes, states that a local workforce development board may be designated as a one-stop operator and direct provider of intake, assessment, eligibility determinations or other direct provider services except training services. Further, it states that CareerSource Florida, shall establish procedures by which a local board may request permission to operate under this section and the criteria under which such permission may be granted. The criteria shall include, but need not be limited to, a reduction in the cost of providing the permitted services. Such permission shall be granted for a period not to exceed three years for any single request submitted by the local board.

The following local boards request approval for designation as direct service providers:

CareerSource Escarosa CareerSource Florida Crown

The three-year authorization for the above local boards will begin on Oct. 1, 2016, and end on June 30, 2019. The boards have provided all required documentation as described in CareerSource Florida administrative policy, Designation of Regional Workforce Boards as One-Stop Operators or Direct Providers of Workforce Services (DEO Guidance FG OSPS-83). The Department of Economic Opportunity has reviewed the submitted documentation and, as the administrative entity for CareerSource Florida, has recommended approval. The professional team at CareerSource Florida recommend that the board concur.

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NEEDED ACTION

To approve the request by the above local workforce development boards for designation as direct providers of services for a three-year period beginning October 1, 2016, and ending September 30, 2019.

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Skills Gap and Job Vacancy Pilot Project Broward County Summary of Preliminary Findings 2016

Overview

 The survey has been completed with a final response rate of 73.1 percent, all industry super sectors exceeded 70.0 percent response rate.  The survey collected skills gaps linked to current hiring and skills gaps experienced by employers based on past hiring and training experiences.

Broward County Top 25 Occupations by Job Vacancy Estimated Occupation Vacancies Retail Salespersons 2,078 Customer Service Representatives 1,712 Registered Nurses 1,613 Preschool Teachers, Except Special Education 918 Combined Food Preparation and Serving Workers, Including Fast Food 855 Security Guard 854 Driver/Sales Workers 823 Waiters and Waitresses 771 Computer User Support Specialists 749 Nursing Assistants 663 Source: Florida Department of Economic Opportunity, Bureau of Labor Market Statistics, Skills Gap Pilot Survey 2016

 The estimated number of vacancies in Broward County during the survey timeframe was 39,153.  The top job based on number of vacancies was retail salespersons (2,078) followed by customer service representative (1,712).  The most vacancies were estimated in professional and business services (10,548), followed by education and healthcare services (8,355) industries.

Skills Gaps

 Employers could respond to questions about both soft skills and hard skills.  Gaps were estimated based on the concept of employer-occupation-gap linkage with gaps being estimated similar to the methods for vacancies.  The most frequently reported gaps were for soft skills. o Even goods-producing industries and production and construction occupations had more gaps related to soft skills.

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Skills Gaps and Vacancies by Industry Super Sector

Skills Gaps Totals

Estimated Super Sector Vacancies Soft Hard Total Mining and Construction 1,514 2,859 717 3,576 Manufacturing 388 1,963 599 2,562 Trade, Transportation and Utilities 7,222 11,241 3,917 15,158 Information 1,093 3,780 1,514 5,294 Financial Services 2,243 5,331 1,361 6,692 Professional and Business Services 10,548 12,905 6,399 19,304 Education and Health Care 8,355 7,954 1,969 9,923 Leisure and Hospitality 6,329 13,317 2,361 15,678 Other Services 1,461 3,092 1,859 4,951 Total 39,153 62,442 20,696 83,138 Source: Florida Department of Economic Opportunity, Bureau of Labor Market Statistics, Skills Gap Pilot Survey 2016

 The number of gaps by industry indicated that professional and business services had the greatest number of estimated gaps, followed by leisure and hospitality.  Soft skills gaps were more prevalent in leisure and hospitality (13,317 gaps) followed by professional and business services (10,548 gaps).  Estimated hard skills gaps were the greatest in professional and business services where many technical occupations are located (computer, engineering, accounting).  In professional and business services, top soft skills gaps included communication skills, dependability and attendance along with motivation.  In goods-producing industries soft skills were higher than hard skills with dependability and attendance being the top soft skills gap followed by critical and analytical skills.  Mining and construction also had high gap measures for communication, leadership, following directions and problem solving.  The highest hard skills gaps in construction were for tool or equipment selection/use and safety skills.

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Gap Total by Major Occupational Group

Skills Gaps Totals Estimated Major Occupational Group Title Vacancies Soft Hard Total Management Occupations 2,261 3,505 1,141 4,646 Business and Financial Operations Occupations 1,781 2,876 1,221 4,097 Computer and Mathematical Occupations 1,804 3,429 1,610 5,039 Architecture and Engineering Occupations 265 339 1,210 1,549 Life, Physical, and Social Science Occupations 60 7 3 10 Community and Social Services Occupations 218 311 52 363 Legal Occupations 264 684 11 695 Education, Training, and Library Occupations 2,081 1,738 237 1,975 Arts, Design, Entertainment, Sports, and Media Occupations 318 466 90 556 Healthcare Practitioners and Technical Occupations 3,737 1,884 770 2,654 Healthcare Support Occupations 1,747 863 185 1,048 Protective Service Occupations 907 1,041 130 1,171 Food Preparation and Serving Related Occupations 3,940 7,936 1,284 9,220 Building and Grounds Cleaning and Maintenance Occupations 960 2,602 643 3,245 Personal Care and Service Occupations 992 1,935 1,002 2,937 Sales and Related Occupations 4,569 8,637 2,185 10,822 Office and Administrative Support Occupations 6,326 13,870 3,841 17,711 Construction and Extraction Occupations 773 3,589 353 3,942 Installation, Maintenance, and Repair Occupations 1,973 3,091 1,956 5,047 Production Occupations 460 1,179 498 1,677 Transportation and Material Moving Occupations 3,717 2,460 2,274 4,734 Total 39,153 62,442 20,696 83,138 Source: Florida Department of Economic Opportunity, Bureau of Labor Market Statistics, Skills Gap Pilot Survey 2016

 Across the major occupational groups, office and administrative support occupations had the largest gap total.  Employers noted a lack of skills for communications, dependability and attendance and problem solving within occupations in the major group.  Customer service representative is from this major group and had the highest gap score of any occupation and had the largest gap number for the skill of customer service followed by dependability and attendance.  Receptionists and Information clerks also had large gaps for dependability and attendance, followed by customer service in addition to a high gap score for phone etiquette.  Management occupations also had notable gaps and sales managers were reported to lack communication, analytical, customer service and leadership skills.

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Top 25 Occupations with the Highest Skills Gaps

Skills Gaps Totals Estimated Occupation Vacancies Soft Hard Total Customer Service Representatives 1,712 4,083 871 4,954 Retail Salespersons 2,078 2,898 819 3,717 Receptionists and Information Clerks 455 1,998 426 2,424 Construction Laborers 93 2,283 0 2,283 Waiters and Waitresses 771 1,816 305 2,121 Industrial Truck and Tractor Operators 630 284 1,552 1,836 Bookkeeping, Accounting, and Auditing Clerks 643 1,148 484 1,632 Cashiers 627 1,370 239 1,609 Stock Clerks and Order Fillers 628 1,290 288 1,578 Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 209 1,177 351 1,528 Combined Food Preparation and Serving Workers, Including Fast Food 855 1,432 50 1,482 Computer Occupations, All Other 423 1,063 394 1,457 Cooks, Restaurant 426 1,315 137 1,452 Janitors and Cleaners, Except Maids and Housekeeping Cleaners 250 1,155 219 1,374 Sales Representatives, Services, All Other 466 1,143 210 1,353 Automotive Service Technicians and Mechanics 426 710 583 1,293 Sales Managers 445 853 354 1,207 Market Research Analysts and Marketing Specialists 276 800 278 1,078 Security Guards 854 951 115 1,066 Maids and Housekeeping Cleaners 346 811 221 1,032 First-Line Supervisors of Office and 289 598 424 1,022 Administrative Support Workers Preschool Teachers, Except Special 918 984 24 1,008 Education Bill and Account Collectors 424 732 207 939

Software Developers, Applications 167 557 368 925

Securities, Commodities, and Financial 365 666 200 866 Services Sales Agents Source: Florida Department of Economic Opportunity, Bureau of Labor Market Statistics, Skills Gap Pilot Survey 2016

 Of the top 20 occupations by skills gaps, three could be considered professional.  Computer occupations, all other lacked system-specific skills in addition to trouble shooting and research skills.  Automotive service technicians had a higher overall soft skills gap score, the highest gap being for customer service in soft skills and for safety in hard skills.

w w w . f l o r I d a j o b s .o r g / l m s DASHBOARD of FLORIDA’S TALENT OUR GOALS

Increase Worker Prosperity $20.84 Real wage (2015) 2.7% from 2014 Up Increase EMPLOYER Prosperity 19.5% Existing establishments expanding over the year from 19.8% employment (2015, Q4) Down Reduce WELFARE Dependency 7.17% Public benefits receipts over the year from 7.30% of personal income (2016, Q1) Down Meet Employer Needs 1.8 Supply to demand ratio (July 2016) over the year from 1.8 Unchanged Increase Worker Productivity $38,950 Per capita GDP (2015) 1.2% from 2014 Up Enhance Business Competitiveness 38.6% Industries more prevalent in Florida than the rest of the U.S. Increase Economic Self-Sufficiency 66.9% Industries that pay wages above threshold Expanding Business Engagement July 1, 2016 – August 31, 2016

Businesses Served Quick Response Open Job Positions Statewide Training Grants Awarded (August) 24,838 $8,063,575 248,768 Industries of Focus Projected Unemployment Unemployment Healthcare Manufacturing Trainees Rate (Florida) Rate (National) 1,872 2,280 3,656 4.7% 4.9% businesses businesses August August

High-Value Services Incumbent Worker Job Seekers Placed with Provided to Businesses Training Grants Awarded CareerSource Florida Network Assistance 27,133 $194,832 64,398

 Talent Acquisition Projected Trainees  Human Resources Services 1,508  Customized Training

Private-Sector Jobs Created Since Dec. 2010 1,191,900 Monthly Job Placement Report - Data for August 2016

Local Monthly Factors

# of Unemployed Percent of # of RA # of Percent of RA RA claimant Monthly Individuals # of RA # of Job Openings Percent of WP Individuals Claimants Job Placements Composite Local Workforce Development Area Unemployment Individuals claimants placed placements to Monthly Composite Executive Director/Hire Date Board Chair (Includes Claimants in Available in funding Placed into Placed into to funding Score = (LWDA) - Counties Served Rate - July 2016 Placed in Jobs into Jobs in funding Ranking - July Ranking Claimants) - July August 2016 August 2016 Allocation jobs in August Jobs in August percentage=K/I [(N*3) + O]/4 in August 2016 August 2016 percentage=M/I 2016 2016 2016

A B C D E F G H G I J K L M N O P Q 1 LWDA 15 - Hillsborough Edward Peachey/March 2010 Richard Peck 4.70% 32,789 4,862 46,798 6.62% 4,804 14.53% 481 8.53% 219.56% 128.80% 196.87% 5

LWDA 6 - Hamilton, Jefferson, Lafayette, 2 Sheryl Rehberg/November 2006 Darlene Hagan 5.30% 2,550 277 2,047 0.54% 322 0.97% 19 0.34% 181.45% 62.73% 151.77% 3 Madison, Suwannee, Taylor

3 LWDA 14 - Pinellas Edward Peachey/February 2003 Aundre Green 4.50% 21,861 2,961 25,319 4.77% 2,499 7.56% 346 6.13% 158.45% 128.54% 150.97% 1

LWDA 3 - Calhoun, Holmes, Jackson, Liberty, 4 Richard Williams/Oct 2002 Debbie Kolmetz 5.70% 2,341 233 1,851 0.52% 256 0.77% 14 0.25% 148.98% 47.74% 123.67% 4 Washington

5 LWDA 10 - Citrus, Levy, Marion Rusty Skinner/August 1996 Kevin Cunningham 6.40% 12,377 1,602 8,364 2.36% 896 2.71% 197 3.49% 115.04% 148.21% 123.33% 12

6 LWDA 23 - Miami-Dade, Monroe Rick Beasley/August 2005 Obdulio Piedra 5.30% 72,783 9,903 59,112 14.46% 6,493 19.64% 680 12.05% 135.80% 83.33% 122.68% 2

LWDA 19 - DeSoto, Hardee, Highlands, 7 Donna Doubleday/July 2013 William Nielander 6.80% 4,957 668 3,251 0.76% 334 1.01% 34 0.60% 132.89% 79.26% 119.48% 7 Okeechobee

8 LWDA 13 - Brevard Marci Murphy/July 2016 Robert Jordan Jr. 5.40% 13,920 1,693 27,743 2.95% 1,163 3.52% 185 3.28% 119.34% 111.23% 117.31% 8

9 LWDA 9 - Alachua, Bradford Anne Favre/April 2016 Patricia Evans 4.70% 6,570 547 9,032 1.42% 587 1.78% 74 1.31% 125.44% 92.66% 117.25% 15

10 LWDA 7 - Columbia, Dixie, Gilchrist, Union Robert L. Jones/July 2013 C. Todd Sampson 5.10% 2,339 256 2,032 0.53% 232 0.70% 21 0.37% 131.38% 69.68% 115.95% 9

11 LWDA 16 - Hernando, Pasco Jerome Salatino /January 2010 Mark Earl 5.50% 15,919 2,036 9,573 2.92% 1,064 3.22% 200 3.54% 110.17% 121.34% 112.97% 10

12 LWDA 4 - Bay, Franklin, Gulf Kimberly L. Bodine/July 1996 John Reeves 4.80% 4,805 541 5,524 1.09% 389 1.18% 48 0.85% 107.80% 77.94% 100.33% 6

13 LWDA 1 - Escambia, Santa Rosa Cliff Krut/February 2016 Kellie Jo Kilberg 5.10% 11,102 1,313 9,486 2.26% 708 2.14% 146 2.59% 94.93% 114.70% 99.87% 18

14 LWDA 5 - Gadsden, Leon, Wakulla Jim McShane /April 2013 Patrick Hutto 5.10% 9,161 1,052 8,813 1.87% 653 1.98% 84 1.49% 105.85% 79.78% 99.33% 14

15 LWDA 11 - Flagler, Volusia Robin King/November 2013 Bishop Derek Triplett 5.30% 15,441 2,082 11,031 3.18% 924 2.80% 215 3.81% 87.78% 119.67% 95.75% 13

16 LWDA 2 - Okaloosa, Walton Linda Sumblin/November 2011 Pam Tedesco 4.20% 5,197 491 7,311 1.27% 427 1.29% 48 0.85% 101.40% 66.79% 92.75% 21

17 LWDA 21 - Palm Beach Steve Craig/December 2011 Ken Kirby 5.20% 36,484 6,369 30,942 6.76% 1,620 4.90% 528 9.36% 72.48% 138.42% 88.96% 17

Stacy Campbell-Domineck/ 18 LWDA 17 - Polk David Sorg 6.00% 16,873 2,883 10,595 3.07% 804 2.43% 163 2.89% 79.22% 94.10% 82.94% 16 November 2006

19 LWDA 22 - Broward Mason C. Jackson/January 1986 Frank Horkey 4.70% 47,907 7,227 38,389 10.27% 2,633 7.96% 552 9.78% 77.55% 95.26% 81.97% 11

LWDA 12 - Lake, Orange, Osceola, Seminole, 20 Pamela Walsh Nabors / July 2012 Eric Jackson 4.70% 60,721 8,773 45,984 12.47% 2,602 7.87% 669 11.86% 63.10% 95.06% 71.09% 19 Sumter

21 LWDA 20 - Indian River, Martin, St. Lucie Richard Stetson/November 2010 Pam Houghten 6.00% 15,910 2,366 8,316 3.11% 630 1.91% 169 3.00% 61.27% 96.30% 70.03% 24

22 LWDA 18 - Manatee, Sarasota Ted Ehrlichman/August 2014 Adam Kendall 4.80% 16,582 2,053 15,489 3.29% 669 2.02% 161 2.85% 61.55% 86.80% 67.87% 20

LWDA 24 - Charlotte, Collier, Glades, 23 Joseph Paterno/March 1997 Joseph Wheeler 5.30% 30,095 4,655 23,225 5.75% 1,053 3.19% 258 4.57% 55.36% 79.48% 61.39% 22 Hendry, Lee LWDA 8 - Baker, Clay, Duval, Nassau, 24 Bruce Ferguson/November 2003 Darryl Register 5.00% 38,546 6,276 33,060 7.75% 1,296 3.92% 350 6.20% 50.55% 80.00% 57.92% 23 Putnam, St. Johns Statewide Totals 4.70% 497,230 71,119 443,287 100.00% 33,058 100.00% 5,642 100.00% September 16, 2016 Unemployment Rates (%) (seasonally adjusted) August-2016 August-2015 Dec-2010 Florida 4.7 5.2 10.7 United States 4.9 5.1 9.3 Difference -0.2 0.1 1.4

Florida Private Sector Jobs Created Over the month Over the year Since Dec-2010 22,600 241,300 1,191,900

Florida’s unemployment rate was down 0.5 percentage point from the August 2015 rate of 5.2 percent. It was the 73rd consecutive month of over-the-year declines in Florida’s unemployment rate. The current unemployment rate is down 6.5 percentage points from the last recession peak rate of 11.2 percent reached in 2009-10. Nine major industries gained jobs over the year in August 2016. Florida has gained jobs over the month for 62 consecutive months. Florida has gained jobs over the year for the past 73 months. Prior to this, the state had been losing jobs for over three years. Florida’s annual job growth rate has exceeded the Nation’s since May 2012. In August 2016, 23 metro areas in the state had over-the-year job gains. Florida Reemployment Assistance initial claims decreased by 5.5 percent over year. Florida building permits for 1-unit structures were up 337 (+6.3 percent) compared to the same month a year ago in July 2016 (latest data available). Florida housing foreclosures were 5,378 in May 2016 (latest data available). Foreclosures were down 338 (-5.9 percent) over the year. Florida’s median home price was up 11.6 percent over the year in July 2016 (latest data available). August 2016 sales tax collections were up 4.0 percent compared to a year ago. Sales tax collections have been above the previous peak (June 2006) since June 2014. An estimated 107 million visitors came to Florida in 2015, an increase of 8.2 percent over 2014. During the second quarter of 2016, 27.3 million (3.1 percent increase over the year) tourists visited Florida. Florida’s real Gross Domestic Product (GDP) in 2015 was up 3.1 percent from 2014.

Richard Florida Author

The Creative Compact Posted: 07/10/2012 11:44 am

Excerpted with permission from The Rise of the Creative Class Revisited: 10th Anniversary Edition, by Richard Florida.Available from Basic Books, a member of The Perseus Books Group. Copyright (C) 2012.

The tectonic upheavals our economy is enduring are the result not just of financial shenanigans by the global One Percent, but of a deeper and more fundamental shift -- the passing of the old industrial order as it gives way to the emerging Creative Economy. If we wish to build lasting prosperity we cannot rely on market forces and the Invisible Hand alone to guide us. The grand challenge of our time is to invent new institutional structures that will guide the emergence of a new economic order, while channeling its energies in ways that benefit society as a whole.

To do this, we need to institute and ratify a new social compact, entailing everything from investment in our human capital, the only real capital we have, to a new approach to education and learning. We need to recommit our economy to innovation and our society to openness and diversity, and we need to knit a new safety net for the truly disadvantaged. We have been through this before. The Industrial Revolution generated new technologies, new industries, and new productive potential alongside gross economic inequalities -- which Marx wrongly believed would be capitalism's undoing. Before the nascent industrial age could reach its full potential, the development of a much more broadly based urban-industrial society, in which great masses of people could participate, was required.

Our new Creative Compact must be built across six key principles.

1. Invest in Developing the Full Human Potential and Creative Capabilities of Every Single Human Being

We can't simply write off the tens of millions of workers who toil in low-wage service jobs. The United States and other nations will have to find ways to bring the service and manufacturing sectors more fully into the Creative Age. Every job can and must be creatified; every worker must be empowered to harness his or her own inner entrepreneur. Governments build incubators for high tech startups--we need to start extending assistance to low-tech startups as well: nail salons, mom-and-pop stores, fitness trainers, and the like.

We did it before in manufacturing. We turned low-wage, low-skill work in horrific, exploitative factories into the good family-supporting jobs workers pine for today. We need to do the same for services--for the more than 60 million Americans and countless others around the globe, who toil for low wages in everything from food preparation and home health care to retail sales. Some will counter that this will only make services more expensive. My response is simple: we can't afford not to do it. Decades ago, we collectively conceded that we would have to pay more for manufactured goods so that workers could have better wages and a broad middle class could be born. Why shouldn't we pay a little bit more to the people who prepare our food, look after our homes, and take care of our children and aging parents too? Doing so will build a stronger middle class, enhance social cohesion, and create the demand that can help drive the economy forward.

2. Make Openness and Diversity and Inclusion a Central Part of the Economic Agenda

Fact: 9/11 made America paranoid. We need to get over it. A growing body of economic research shows that diversity and openness power economic growth. Immigrants from foreign countries spearheaded innovations and enterprise in everything from steel to semiconductors and all forms of high tech. Literally half of all Silicon Valley start-ups involve immigrants.

Our policy makers need to do what the venture capitalist John Doerr said they should: staple a green card to the diplomas of every immigrant who graduates from one of our engineering schools. More than that, we need to make this country welcoming to all enterprising, energetic, and ambitious people. This is the biggest no-brainer in the world.

3. Build an Education System That Spurs, Not Squelches, Creativity Everyone agrees that education is important, but our definition of education must be broadened. Just as the United States once sank vast amounts of public and private funds into canals, railroads, highways, and other physical infrastructure to power industrial growth, the country today needs to massively increase its investments in its human creative capital. The scale of the effort required is enormous--it will need to dwarf the public education system, land grant colleges, and GI bills of previous generations.

Our current system of elementary and high-school education is a relic of the industrial age, developed to stamp out workers for the Fordist industrial machine. We need to pay much more attention than we have to early childhood learning and development; these are the most critical years, when creative abilities are shaped. And we need to stop blaming teachers for problems created by an outmoded system. Education has to be more about engaging students and supporting them with good teachers and mentors than standardized test scores. We need to put their creativity first, not rote learning and test preparation.

4. Build a Social Safety Net for the Creative Economy

The Creative Age is not an Ayn Rand fantasy of rugged individualists making their own way; no viable system or society can be. We need to build a new set of institutional supports that can create a more robust and sustainable social system around the new world of work.

It no longer makes sense to tie benefits to a single employer. A new social compact must start from the flexible, hyper-individualized, and contingent nature of work. That means health benefits that move with workers, and retirement accounts that do the same. This is good for workers, good for companies, and good for society as a whole.

Going beyond the Creative Class, this new safety net must ensure that the truly disadvantaged are provided with adequate living standards, and even more so, with real opportunities. But such a system cannot confine itself to material needs alone. A social safety net for the Creative Age would invest in people and give them the opportunity to develop and fully utilize their human talents and potential; it would recognize self-expression as a fundamental human right and provide education and training to foster it.

5. Strengthen Cities; Promote Density, Clustering, and Concentration

Cities are the key economic and social organizing units of the Creative Age. They speed the metabolism of daily life, accelerating the com- binations and recombinations of people that spur innovation, business formation, job creation, and economic growth.

We need to invest in more green space, energy e ciency, and sustainability. We need to better

ffi connect our cities and suburbs with transit, and connect our metro areas (especially those that are parts of larger mega-regions) to each other with high-speed rail.

Everyone recognizes that America's national government is dysfunctional. But cities and community governments actually work. The most important policy innovations no longer come from national legislatures or federal bureaucracies, but from cities and mayors crafting pragmatic, non-ideological solutions to pressing social and economic problems. Just as the best companies decentralize decision making to work groups on the factory floor, we need to give cities and neighborhoods the tools and resources they need to build their economies. Doing so will help rebuild the broader economy from the bottom up.

6. From Growth for Growth's Sake to True Prosperity: Measure What Really Matters

We need to get beyond the idea that growth is good in and of itself. Our obsession with housing and the whole housing-automobile-energy complex of Fordism is but a symptom of a deeper problem: the way we think of, measure, and account for economic growth. More output is not a good in and of itself; that idea is a holdover from the industrial age and no longer holds true in an era where knowledge, innovation, creativity, and human potential drive the economy.

We cannot stop the clock of history from ticking; we cannot impede the logic of capitalism, but we can and must move from dumb (Industrial Age) growth to smarter (Creative Age) growth-- growth that fully utilizes human capabilities, that makes us happier, that provides more and better experiences, and more purpose and meaning in our lives, not just more stuff.

Richard Florida is a professor at the University of Toronto and NYU and senior editor of The Atlantic.

Follow Richard Florida on Twitter: www.twitter.com/Richard_Florida

Posted on Sun, Aug. 19, 2012 Miami now winter home to ‘creative-class’ thinker Richard Florida

BY ANDRES VIGLUCCI [email protected]

Just published: Richard Florida has extensively revised his seminal 2002 book. Richard Florida, the college professor whose bestseller on what he dubbed “the creative class” helped make America’s cities hot again and turned him into an intellectual rock star, doesn’t idly pick a place to meet for a conversation.

So on a warm Miami afternoon, Florida (that is his real name) occupies a sidewalk table in Wynwood, the once-desolate warehouse zone whose emergence as an arts district has been defined by an explosive propagation of graffiti murals. The table belongs to Panther Coffee, which is run by young and hip — or does that go without saying? — entrepreneurs who roast, grind and blend their own beans.

A decade ago, in the landmark The Rise of the Creative Class, Florida was among the first to frame and popularize the notion of a back-to- the-city movement led by artists, gays and other bohemians, not as a niche phenomenon but as the leading edge of a vast shift that has made urban centers and the creative people they attract — not just hipsters but science, tech and design types, media workers, entrepreneurs and, yes, owner-baristas — the engine of U.S. innovation and economic growth.

Florida’s presence here — just as the extensively revised, 10th-anniversary edition of Rise is published — would seem to confer a blessing on the endeavors of Panther Coffee, Wynwood and the sprawling, still-unformed city that contains them. He’s not just visiting. The avatar of the Creative City, whose main job is running an institute for the study of economic prosperity at the University of Toronto, is settling into a bayfront South Beach condo where he and his wife and business partner, Rana, will live and work winters.

If the Floridas come to Miami, does that mean Miami is ready to take its place in the creative economy alongside San Francisco, Boston, Seattle and Washington, D.C.?

“Oh, we’re way past the tipping point,” he says, already speaking proprietarily of his part-time hometown as he cites the city’s food trucks, South Beach, Art Basel and the resurgence of downtown Miami, the Design District and Wynwood. “We’ve become this singular kind of destination. The investments this community made in the arts really paid off.”

Miami’s newfound cultural allure, and its design-focused urban revival, he says, have made it a location of choice for people who, like the Floridas, could live anywhere. That includes CEOs with Beach pied-a-terres, DJs, star chefs and Latin American tech entrepreneurs. (The sunshine helps, he admits.)

What’s happening in Miami illustrates a key corollary of the creative-class theory, Florida says: The creatives who drive today’s economy — now about a third of the U.S. workforce — seek out cool places. That means walkable neighborhoods with distinctive architecture, a diverse population, a vibrant street and cultural life and amenities like cafes, bars, parks and bike lanes. As the creatives rub shoulders, they generate new ideas and enterprises that propel economic growth and attract even more talented, creative people. Florida, a hyper-productive writer, prolific public speaker and senior editor at The Atlantic magazine (whose fast-growing Atlantic Cities website he helped launch), drives home one central point: Manufacturing and the working class have been supplanted as the nation’s principal source of prosperity by the creative class and the knowledge-based economy, and cities with the right environment enjoy a huge competitive edge.

“If you want to understand where ideas come from, they come from cities, which are social and economic engines,” he says. “When you put people in close proximity to one another, we leverage each others’ skills and talents. This is the motor force of our economy. “

Moreover, unfettered suburban expansion, which he has called “the great growth illusion,” has been proven by the economic crash to be unsustainable and unappealing to the young, he says.

“What’s been happening here in America, this suburban thing … that’s over. There is a generational shift.”

Some critics

That’s the sort of pronouncement that makes Florida’s critics, of which there are a fair share, gnash their teeth. Some dismiss his theory as elitist, and critics on the right and the left say it lacks academic rigor, overstates the role of urban creatives, glosses over the downside of gentrification and ignores the abiding allure of the suburbs, where the majority of Americans — including multitudes of creative types — are perfectly content to live. “He had one idea and he’s going to stick to it,” said Joel Kotkin, a California writer and urban historian who has often debated Florida. “He’s giving a well-heeled sector of our society what they want to hear — that being hip and cool is great, and that people want to live in high density. It doesn’t have anything to do with people having children and buying a house that’s affordable.

“It’s a very good theory for a small segment of society, and not an unimportant segment. But it’s very limited. There’s not enough yuppies on the planet to save Detroit,” Kotkin says.

More fans

But to his legions of acolytes, Florida has been the prophet and standard-bearer of an undeniable urban turnaround evident in Google’s moves into downtown Chicago and Ann Arbor, Mich., and the conversion of San Francisco’s skid row and forgotten Brooklyn neighborhoods into hotbeds of startup tech, among many examples. His broadest influence, along with a measure of celebrity (Bono name-dropped him at an Irish economic conference last year), grew out of the embrace of his theory by urban activists, business groups and mayors from Miami’s Manny Diaz to New York City’s Michael Bloomberg.

“He named something that everybody was fumbling around in the dark with, and he turned on the light,” said Christopher Leinberger, a Florida friend and collaborator. “In the urban world he is one of the stars. He’s a household name. And a real lightning rod.”

The original edition of The Rise of the Creative Class sold more than 300,000 copies, a startling number for an urban-theory book that, while readable and sprinkled with anecdotes, is full of charts and statistics. It spawned a lucrative second career for Florida as a public speaker and a consultant to cities and companies looking to burnish their creative cred.

It didn’t hurt that Florida, 54, has what used to be called matinee-idol looks. Tall, dark, fit and fashionably clad, he seems the embodiment of the creative type.

Or maybe it did hurt. In Toronto, where he arrived to great fanfare after the university created the institute just for him, activists started an anti-Florida website that took aim no just at the inequality they said he promotes, but also at the Floridas’ sumptuously renovated home.

“He is this incredibly handsome, urbane, smooth academic. And academics aren’t supposed to be that way,” Leinberger said. “And some people are bloody jealous.”

Florida, in fact, has taken pains, especially in the new edition of Rise, to acknowledge that creative cities are also characterized by economic disparity, in part because the concentration of prospering creatives drives up housing costs. He has urged the introduction of elements of the creative economy into the service sector that employs 47 percent of Americans by building in opportunities for advancement.

Some downtrodden towns that hired Florida to develop creative-city redevelopment strategies failed to realize economic benefits. He says he never promised quick or easy turnarounds, and some urbanists say his clients had unrealistic expectations. “Who’s come around with a formula for turning around Flint, Mich.?” said Aaron Renn, a respected analyst who writes the Urbanophile blog.

“Florida himself has shown much more concern for the poor and downtrodden who have been crushed by this economy than some of his critics. Maybe there’s been an overemphasis on artists. But whether art causes prosperity or it’s just correlated, it’s clear that you want lots of art in your town.”

Florida has also made it a point to acknowledge that suburbs will retain a key role, but only if they become more like cities — pedestrian-friendly and better connected, and with urban amenities. His thinking is grounded in years of data-driven research going back to his days as a young urban economist at Carnegie-Mellon University in Pittsburgh, which was undergoing a gradual transformation from smokestack loser to new-economy success. But it has its origins in his Italian-American upbringing in Newark, N.J., where his factory-worker father was a casualty of the downward economic spiral that swept much of urban America in the 1960s and ’70s.Even in manufacturing, Florida observed, companies that engaged floor workers in problem-solving did better. In his most controversial insight, he realized that thriving cities were home to high proportions of gays, lesbians and other bohemian types, and he developed an index to rank them.

The three T’s

That confluence led him to the core of his theory, the three T’s of prosperity: tolerance (as measured by the proportions of gays, immigrants, minorities and bohemians), technological prowess and talent, as defined by the number of people engaged in creative endeavors. He found cities that scored highest in all three also enjoyed the highest growth rates.

It’s not that artists and bohos cause economic growth, he says; it’s that cities with such populations appear to be accepting places where talented if unconventional people can thrive. Four of 10 creative workers don’t actually have college degrees, he says, which undermines his critics’ charges of elitism.

As it happens, the Miami-Fort Lauderdale metro area that is Florida’s new winter home ranks relatively low on his creative-cities indices. But it does score 11th in the nation for tolerance, a factor he says bodes well for the region’s ability to attract and retain talent.

Florida says he and his wife have plunged into Miami life. He’s found it more complex than he expected, and at times more perturbing, especially the extremes of wealth and poverty.

He hopes to become publicly involved — he’s already spoken out against a plan for downtown casino, which he says would be “a disaster.” And he is talking to the John S. and James L. Knight Foundation about launching an “ideas” event in Miami. One route to prosperity for the city, he says, could be as an intellectual incubator for Latin America.

“Miami is for me a great laboratory,” Florida says, citing not just Wynwood but also developer Craig Robins’ ambitious plans to remake the Design District into an urban luxury retail center as a milestone in the U.S. urban revival. “Can you create it? That’s what’s uber-interesting to me. Wynwood and the Design Center are not great places like Georgetown or London. But there is an urban scale that’s being rescued in a magnificent way. If these people in Miami can really do it, then you might be able to do it just about anywhere.”

MIAMI’S GREAT INFLECTION: TOWARD SHARED PROSPERITY AS A CREATIVE AND INCLUSIVE GLOBAL CITY

FIU-Miami Creative City Initiative THE AUTHORS

RICHARD FLORIDA MIAMI’S GREAT INFLECTION: Richard Florida is the world’s leading urbanist. He is a researcher and professor, serving as the Director of the Martin Prosperity Institute at the University of Toronto’s Rotman School of Management, Global Research Professor at New TOWARD SHARED PROSPERITY AS A CREATIVE York University and a Visiting Fellow at Florida International University. He is a writer and journalist, having penned several global best sellers, including the AND INCLUSIVE GLOBAL CITY award winning The Rise of the Creative Class and serving as senior editor for The FIU-Miami Creative City Initiative 2016 Atlantic, where he co-founded and serves as Editor-at-Large for CityLab. And he is an entrepreneur, as founder of the Creative Class Group which works closely with governments and companies worldwide. A 2013 MIT study named him the world’s most influential thought leader. And TIME magazine recognized his Twitter feed as one of the 140 most influential in the world. He previously taught at Carnegie Mellon, Ohio State University, and George Mason University, and has been a Visiting Professor at Harvard and MIT and Visiting Fellow at the Brookings Institution. He earned his bachelor’s degree from Rutgers The Creative Class Group, founded by world College and his Ph.D. from Columbia University. renowned urbanist Richard Florida, is a global advisory firm composed of expert researchers, academics, and business strategists. Our STEVEN PEDIGO proprietary data and research, gives Steven Pedigo is the Director of Cities and Research for the Creative Class Group, a global think tank comprised of leading researchers, academics and strategists. As companies and regions leading insights to a consultant in the urban space, Steven advised an array of clients: BMW, Converse, achieve growth and prosperity. Starwood, IBM, Philips, Cirque du Soleil, Audi, Pinewood Studios, Zappos, and Kraft. A selection his city clients represents communities from across the globe: Jerusalem, Vancouver, Washington, D.C., San Diego, Portland, the Yukon, Noosa, and Sao Paulo. In addition to his role at CCG, Steven is Director of the NYU School of Professional Studies Initiative for Creativity and Innovation in Cities and a Clinical Assistant Professor for Economic Development at the NYU Schack Institute of Real Estate. In this role, he is leading the effort to develop and deliver the School’s urban development curriculum and research program. Steven holds a bachelor’s degree from the University of Texas at Austin and graduate degrees from the H. John Heinz III School for Public Policy and Management at Carnegie Mellon University and the University of Illinois at Urbana-Champaign.

www.creativeclass.com - @creative_class 2 www.creativeclass.com - @creative_class 3 “Graffiti” by

Juan Cristobal Zulueta

is licensed under

CC BY 2.0 . No changes were made to the original file.

EXECUTIVE SUMMARY

reater Miami has reached a crossroads. Its economy – historically based on tourism, hospitality, transportation, and real estate development – has Gdeepened, diversified, and become more creative and idea-based, as banking, media, arts, education, and new technology-based industries have come to play a larger role in its mix. The region now finds itself at a critical inflection point. With generous support from Florida International University (FIU), the Creative Class Group (CCG) has undertaken a multi-year study of Greater Miami’s ascent as a global, creative city. The study is organized around a detailed, data-driven analysis of its economy and talent base, alongside focus groups with its business leaders and other key stakeholders. This report – the first output of the FIU- Miami Creative City Initiative – enumerates the Greater Miami region’s substantial assets and strengths but also addresses the significant challenges facing the region as a global city in the 21st century.

www.creativeclass.com - @creative_class 4 EXECUTIVE SUMMARY // CONTINUED

As spectacular as Greater Miami’s growth and neighborhoods, enabling the region to benefit from a development have been, it is time for a new narrative movement of entrepreneurship and innovation away and strategic vision for the region’s future. In an effort from long-held suburban locations toward urban to spur the conversation and strategic thinking required centers. to do so, this report outlines 10 key areas for focus, opportunity, and action: • Build a Fully Creative Economy. Greater Miami’s economic future lies in the full breadth of its creative • Take Even Greater Advantage of the Region’s Size economy, which spans arts, culture, fashion, media, and Scale. With nearly six million residents and an entertainment, music, and food, as well as science economic output of more than $300 billion, Greater and technology, health and education, logistics and Miami is one of the largest economic regions in the management, and business and finance. In fact, three U.S. and the world, comparable to Singapore and Hong key talent sectors – science and technology, business Kong. Furthermore, Miami is the hub of the Southern and finance, and arts, culture, design, and media – Florida or So-Flo mega-region, extending to Tampa and power economic growth and lead to higher incomes Orlando, which houses 15 million people and produces and living standards. It’s time for the region to harness more than $750 billion in economic output, roughly its full creative capabilities for long-run sustained the same as the Netherlands, making it one of the 20 growth. largest national economies in the world. Miami needs a new approach to regionalism, which builds upon this • Upgrade the Region’s Service, Hospitality, and Tourism considerable size and scale. Sector. Hospitality and tourism remain key drivers of Miami’s economy and deliver a strong competitive • Leverage the Region’s Role as a Globalization Hub. advantage. Indeed, roughly half of the region’s jobs, 1.3 Endowed with a coastal location at the southern tip of million of them, are in the service sector. By upgrading the eastern seaboard oriented toward Latin America these low-pay, low-skill jobs into family-supporting and the Caribbean, Miami is now one of the 25 most occupations and careers, the region can bolster its important global cities. With its international airport middle-class while increasing the productivity and and port, Miami is the economic and financial hub of competitiveness of its hospitality, tourism, and service Latin America and increasingly a gateway to Europe sector across the board. MIT research finds that and the world. With a proactive strategy, Miami can upgrading retail and hospitality jobs – involving and better leverage infrastructure investments and anchor engaging workers more fully and paying them more – institutions to utilize this competitive advantage. results in greater productivity and profits, creating a • Broaden and Deepen the Region’s Growing Startup win-win strategy for workers, companies, and regions. Ecosystem. With approximately $300 million in venture capital investment in its startup companies in 2015, Greater Miami’s entrepreneurial ecosystem ranks 16th among U.S. cities and metros. The broader So-Flo mega-region took in nearly $600 million in venture capital investment, roughly comparable to Greater Chicago, Austin, and Toronto. This investment is concentrated in and around the region’s urban

www.creativeclass.com - @creative_class 5 EXECUTIVE SUMMARY // CONTINUED

• Capitalize on Brain Circulation. The conventional • Engage All of Miami in Inclusive Prosperity. Miami wisdom is that Greater Miami faces a brain drain of suffers from the same type of the socio-economic its top young talent, but that is the case with virtually divides that vex other large, successful global cities and every large metro whose talented young people head metro areas. The middle class has dwindled, and the gap out for college or to pursue their careers. Greater between rich and poor has grown. Greater Miami suffers Miami also benefits from an enormous inflow of talent from a low rate of economic mobility, which limits the from across the nation and the world in the form of ability of its residents to move up the economic ladder students and immigrants. For every brain that drains and achieve the American Dream. By building a more away, others are gained. The key is to capitalize on inclusive community, the region can improve the life Miami’s role as a hub in the process of brain circulation prospects of its people and tap into the talents of all from around the world. of its residents as a source of shared prosperity and economic growth. • Promote the Region’s Tolerance and Diversity Strengths. Greater Miami is among the most tolerant • Address the Region’s Growing Crisis of Success. communities in the world. Diversity and tolerance Greater Miami has come to a tipping point in its growth. are more than social virtues: they are economic As metro regions hit five or six million people, they drivers. Leading tech hubs combine high levels of become congested, and their old growth models based tolerance, which enables them to attract talent from on sprawl and car dependence start to break down. across all demographic groups – women, ethnic and The region faces high levels of congestion and gridlock, racial minorities, immigrants, and the gay and lesbian which wastes productivity and slows the movement of community – with technology prowess to generate their people, goods, and ideas that is so critical for innovation innovative and entrepreneurial edges. Greater Miami and economic growth. The region is investing in transit can utilize its open, diverse, and tolerant environment and faster rail service as All Aboard Florida comes on to bolster its ability to attract talent and further build stream. It is time to more fully embrace a new growth its innovative and creative economy. model for the future, one that is less dependent on cars and sprawl and instead revolves around rail, transit, and • Use Quality of Place as an Economic Driver. With density. its warm climate, abundant sunshine, spectacular coastline, world-class arts and cultural infrastructure, and the amenities of a large, global city, Greater Miami has a significantquality of place advantage that is critical in attracting and retaining talent. It also benefits from housing prices which, while still high, especially for less-advantaged groups, are considerably more affordable than superstar cities and tech hubs like New York, San Francisco, and Los Angeles. The region’s quality of place is a considerable competitive asset that can and should be leveraged for greater economic gain.

www.creativeclass.com - @creative_class 6 “OUR GEOGRAPHY IS OUR DESTINY.” FIU-MIAMI CREATIVE CITY INITIATIVE - MARK ROSENBERG, FIU PRESIDENT The FIU-Miami Creative City Initiative will engage political, business, and cultural leaders, faculty, students, alumni, and the greater community in a dialogue on how creativity, culture, design, and innovation can drive a regional economy. INTRODUCTION

istorically, the engine that drove greater Miami’s economy was its geography – its incredible natural endowments of ocean, coastline, and natural ports and harbors, and its location at the southern tip of the Heastern seaboard oriented toward Latin America and the Caribbean. Its warm climate, abundant sunshine, and open and tolerant social climate welcomed vacationing families and singles, and even more importantly, a steady flow of foreign immigrants, domestic migrants, and snowbirds. More than two decades ago, back in 1994, FIU President Mark Rosenberg noted that Miami’s “geography” was its “destiny.”1 As the region has grown, its economy has diversified, adding strengths in media, finance, fashion, design, medicine, logistics, aeronautics, bio-medical science, and even software development – high-growth creative fields that depend on high levels of talent and human capital. The region’s architecture and skyline – from Art Deco and MiMo classics to dozens of new contemporary towers – are now almost as recognizable as those of New York, Chicago, and Paris. Miami’s airport, which services more international travelers than any other in the U.S. except New York’s JFK, and its substantial port provide real global connectivity. Both of these assets have received continuous capital investment for over two decades. As a hub of the larger South Florida mega- region, which extends to Orlando and Tampa, it has a size and scale that is equivalent to one of the 20 largest economies in the world.2

www.creativeclass.com - @creative_class 7 INTRODUCTION // CONTINUED

More than two decades ago, Alejandro SCOPE OF OUR ANALYSIS Portes, now at the University of • Miami BENCHMARK Our analysis took a deep dive into the region’s strengths and weaknesses, Miami, and Alex Stepick of FIU dubbed • New York opportunities and challenges across hundreds of key metrics and indicators Miami as a “city on the edge,” with REGIONS • Orlando across multiple geographic scales – Miami-Dade County, the Greater Miami many assets and many challenges. • Atlanta • Philadelphia metro, spanning Miami, Fort Lauderdale, and Palm Beach, and the South The region’s transformation, they • Chicago • Phoenix Florida mega-region which runs from Miami to Orlando and Tampa. added, was a story of “change • Dallas-Fort Worth • San Antonio without a blueprint.”3 Greater Miami • Houston • San Diego • Las Vegas has seen one of its greatest growth • San Francisco • Identified the Region’s Talent Base: Identified the region’s underlying • Los Angeles waves since that time, benefitting • Washington, D.C. talent base and skillsets by examining more than 800 occupations and 22 from the strategic action of visionary major occupational clusters. We compared that to the region’s key business stakeholders, groups, universities and colleges, and mayors since. It is now time to drivers and industrial clusters. renew the region’s commitment to a regional strategy and to engage a broad region-wide conversation about a more inclusive prosperity that takes into account the mounting • Analyzed the Startup Economy: Assessed the region’s startup economy realities and challenges that face the region today. The time to act is now: if it misses by using detailed data on venture capital investment across the cities and this opportunity, the region risks losing the economic advantages it has achieved. neighborhoods that make up the metro.

To this end, Florida International University (FIU) and Creative Class Group (CCG) created the • Examined Brain Drain and Gain: Closely examined the circulation of talent FIU-Miami Creative City Initiative, an ongoing collaboration to better understand the forces and brains in and out of the region. Identified the retention rates of local that are shaping the future of Greater Miami. Our aim is to build upon the strong foundation two- and four-year colleges and universities compared to the nation. created by the region’s political, business, academic, and civic leadership and organizations • Assessed the Region’s Key Economic Drivers: Evaluated and benchmarked over the past several decades to help identify the key things Greater Miami can do to position the region’s economy on 40-plus metrics that span the “4Ts” of economic itself as a more innovative, creative, inclusive, and prosperous global city and region. development – Technology, Talent, Tolerance, and Territory Assets.

This report provides a data-driven analysis of Greater Miami’s strengths and weaknesses, • Identified the Region’s Divides and Challenges: Identified the region’s opportunities and challenges. We have undertaken a detailed analysis of the region’s key major divides and challenges across dozens of key metrics and indicators of occupational and industrial clusters, its standing on the 4Ts of economic development inequality, segregation and traffic congestion. (Technology, Talent, Tolerance, and Territory Assets), its startup and entrepreneurial environment, the size and scale of its economy, its status as a global city, and key • Assembled Focus Groups / Roundtable Discussions. challenges it faces from growing inequality and segregation, housing affordability, and Conducted a series of focus groups and roundtables with regional business traffic congestion. We examined these data and trends for the greater Miami metro which and community leaders, entrepreneurs, economic developers, young includes Miami, Fort Lauderdale, Palm Beach, and the broader Southern Florida mega- talent, and university students on issue areas such as talent attraction and region that runs from Miami to Orlando and Tampa. In collaboration with our colleagues retention, arts and culture, placemaking, entrepreneurship, export and at FIU and with the support of the Beacon Council, we conducted a series of structured logistics, and regional divides. focus groups and roundtable conversations with regional leaders from the business, civic, academic, and creative communities. This report is the initial output of our work and is intended to garner more input and help expand the conversation and narrative about the region’s This report is the initial product of this ongoing initiative. Designed to spur conversation and economic future. In the coming years, we will take a deeper dive into key strategic thinking, our analysis identifies 10 key areas for regional focus and opportunity. aspects of the region’s opportunities and challenges.

www.creativeclass.com - @creative_class 8 TAKE EVEN GREATER ADVANTAGE OF THE REGION’S SIZE AND SCALE

ith nearly 5.8 million residents and a workforce of 2.6 million, Greater Miami is the eighth-largest metropolitan area in the U.S. – larger than metro Atlanta, San Francisco, Phoenix, and San Diego, and on par with Philadelphia and W Washington, D.C. Its population has grown by 5.4% in the past five years – a significantly faster rate of growth than that of San Francisco, LA, or San Diego– and its economic output or gross regional product has grown nearly 20% to reach $300 billion, making it roughly the size of Singapore and Hong Kong.4 The metro is GREATER MIAMI AT A GLANCE home to 682,000 Creative Class workers, spanning key occupations such as science, • 5.8 million residents technology, engineering, architecture, media, arts, academia, finance, medicine, and • 5,078 square miles business management. This is double the size of the Creative Class in Austin, Portland, • $300 billion in economic output and Nashville. • 682,000 members of the Creative Class • Broward, Miami-Dade and Palm Beach Counties

Figure 1: 5-Year Growth Gross Regional Product

Dallas-Fort Worth 34.2% Houston 31.3% San Antonio 28.2%

San Francisco 23.2% Miami 19.3% Phoenix 17.2%

San Diego 17.2%

Atlanta 17.0% New York 16.8%

Orlando 14.3% Chicago 14.2% Los Angeles 13.3%

Philadelphia 12.4% Las Vegas 11.9% Washington, D.C. 9.0%

Source: U.S. Bureau of Economic Analysis 2010-2014

www.creativeclass.com - @creative_class 9 TAKE EVEN GREATER ADVANTAGE OF THE REGION’S SIZE AND SCALE // CONTINUED

Beyond this, Miami is the hub of the broader Southern the 100 million annual visitors to Florida choose this Florida or So-Flo mega-region, which stretches northwest region as their premier destination. The Creative Class in and northeast to Tampa and Orlando.5 The So-Flo mega- So-Flo’s mega-region exceeds 1.7 million workers, more region is home to 15 million people and produces more than Washington, D.C., Chicago, and San Francisco. The than $750 billion in economic output, making it roughly mega-region boasts the size and scale to make it one of the same size as the Netherlands and one of the 20 the world’s largest and most important economies. largest economies in the world.6 The great majority of

Figure 2: Megaregions of North America

C A N A D A Tor-Buff-chester Cascadia

Nor-Cal Denver-Boulder Bos-Wash Chi-Pitts

Phoeni-Tucson Char-lanta So-Cal

Dal-Austin

So-Flo Hou-Orleans MEICO

Meico City

Source: Richard Florida, Tim Gulden and Charlotta Mellander, “The Rise of the Mega-Region,” Cambridge Journal of Regions, Economy and Society, 1:3, 2008

www.creativeclass.com - @creative_class 10 MOVING PEOPLE INTO A METRO LEVERAGE THE REGION’S ROLE AS A HAS A GREATER ECONOMIC EFFECT HUB FOR GLOBALIZATION THAN MOVING GOODS.

iami now numbers among the world’s two dozen leading global cities, ranking 23rd on a 2015 analysis by The Economist Intelligence Unit, making it a potent economic and financial hub for Latin America, Europe, and the M world. 8 Miami is a major transport and logistics hub. This is a credit to the region’s more than two decades of intentional public investment in its airport, port, and other key infrastructure. With more than 42 million passengers, 21 million of them international travelers, the Miami International Airport ranks second only to New York’s John F. Kennedy Airport in the number of international flights departing from the U.S.9 The airport also serves as the hub for the region’s growing aviation cluster, which includes more than 466 companies offering services in airfreight, flight simulators, flight training, aircraft parts, and assembly.10 There are several other smaller but efficient airports in the So-Flo region, including Fort Lauderdale-Hollywood International, Orlando International, and Tampa International. All together, they serve some 145 million passengers per year.11 This is a tremendous asset as airports are key drivers of economic growth, according to a detailed 2012 economic study. Indeed, moving people has roughly double the effect on economic output than moving goods has. Ultimately, a global airport like Miami’s has an economic impact that is similar to that of cutting-edge high-tech clusters and a vibrant talent base – making it one of the three key factors that drive regional economies today.12

www.creativeclass.com - @creative_class 11 LEVERAGE THE REGION’S ROLE AS A HUB FOR GLOBALIZATION // CONTINUED

Serving 4.3 million passengers a year, PortMiami is the in China. These are just a few of the 2,262 logistics and Back in 1997, in a study entitled “Globalization to a world’s busiest cruise ship port, shipping more than 7.4 export companies that call South Florida home.16 Latin Beat: The Miami Growth Machine,” geographer million tons of freight around the world. As the Panama Greater Miami is a business and financial hub for Latin Jan Nijman explored the role that Miami’s connections Canal expands, PortMiami is preparing for the expected America, Europe, and the world. The region is home to Latin America have played in the globalization of 13 growth in traffic with a $2 billion dollar-plus renovation. to 13 investment banks, 19 private equity firms, 60 its economy. “Miami’s transformation and growth,” A tunnel to provide direct access to the port from major hedge funds (and growing), and 63 wealth-management he wrote, “are based on the convergence of two interstate highways has been completed, and a dredging firms, as well as more than 200 family offices – private developments: the arrival of very large numbers of Latin project will make PortMiami the only port south of companies that manage money for one or more families American immigrants and the globalization of the world 14 19 Virginia that can accommodate mega-cargo vessels. with assets of at least $60 million.17 Visa International economy.” These two critical pieces of infrastructure underpin and PayPal have both located large facilities in Miami Miami’s role as a global city has been propelled by the region’s role as a transport and logistics hub. The to service Latin American clientele. Miami is a hub of sustained investment in its airport and port and by the Beacon Council’s detailed industrial cluster analysis Spanish language television and music production, vision of many private and public section actors. In the identifies aviation and trade and logistics as two of the thanks to its Latin American connections. The publicly 1970s and 1980s, six-term mayor Maurice Ferré, imagined region’s seven key target industries.15 Ryder Systems, funded Miami Omni Community Redevelopment Agency, Miami’s growing role as a global city. In the early 2000s, Inc., which was founded in Miami more than 75 years in partnership with EUE/Screen Gems Studios, recently Miami Mayor Manny Diaz envisioned and positioned Miami ago, is a Fortune 500 company with advanced logistics built a massive production center in downtown Miami “as a city that would be spoken in the same breath as services that cover the globe. Japan’s Crystal Mover that signed Viacom as its anchor tenant. BBC Worldwide, Paris, London, Buenos Aires, and New York,” developing Services, Inc., a specialized operations and maintenance ABC/Univision, HBO Latin America, Telemundo, and the city’s game-changing Miami 21 approach to land use organization, recently established its U.S. headquarters America Teve all house major operations in Miami as and urban planning. 20 18 in Miami-Dade, as did Uni Logistics America, one of the well. It is time renew this strategic commitment to Miami’s top 10 private international freight forwarding companies role as a global city.

www.creativeclass.com - @creative_class 12 BROADEN AND DEEPEN THE REGION’S GROWING STARTUP ECOSYSTEM

tartups, innovation, and entrepreneurship are central drivers of regional growth. Together they make up Technology, the first critical “T” in the 4Ts of economic development. Places like San Francisco, Boston, and Austin prosper in large part S due to the growth of their technology industries. First the good news: Miami-Dade County ranked second in business formation in the post-crisis period between 2010 and 2014, with a gain of nearly 7,000 new business establishments.21 This was second to only Los Angeles County and ahead of New York, San Jose (Silicon Valley), Austin, San Francisco, Houston, Chicago, Phoenix, and San Diego. Palm Beach County was ninth, right ahead of Broward County. This not only puts Greater Miami in refined company, it reflects the increasingly spiky, concentrated, and clustered reality of today’s economy, where just 20 U.S. counties (less than 1% of the total) generated more than half of all new business formations. The report notes that these large urban counties and especially those in South Florida are home to large populations of immigrants who are “disproportionately likely to start new businesses.”22 But business formation is a broad measure that includes all manner of small businesses and mom and pop shops. It does not isolate or identify the more propulsive, scalable, innovative startup companies that power growth and generate high-quality jobs.

Figure 3: 4Ts of Economic Development

Technology

Economic Talent Tolerance Prosperity

Territory Assets

Source: Richard Florida, The Rise of the Creative Class Revisited, New York: Basic Books, 2012

www.creativeclass.com - @creative_class 13 BROADEN AND DEEPEN THE REGION’S GROWING STARTUP ECOSYSTEM // CONTINUED

On these dimensions, Miami’s high-tech startup region broadly. On the upside, the region’s projected device,” a coup that Wired described as “what might be ecosystem is still nascent. Greater Miami ranks 101 growth rate for high-tech jobs is a substantial 15%.24 the largest C-round in Internet history.”26 But to put all out of the nation’s 350-plus metros on our Technology that in context, venture capital investment in Greater Index, a comprehensive composite measure of a region’s The level of venture capital investment in regional Miami amounted to roughly 2% of all U.S. venture capital high-tech industry and innovativeness. It places 158th startups provides perhaps the best measure of investment. This compares to nearly 8% for New York and out of 200 metros on the Milken Institute’s High-Tech commercially relevant technology and entrepreneurship, Boston and about 45% for the Bay Area that spans Silicon Index,23 which measures the share of economic output showing the value venture investors place on startups in Valley and San Francisco.27 Miami ranked 17th in the that is associated with high-tech growth. In addition, various locations. Greater Miami attracted roughly $300 country in startup exits, a key factor in the growth and Miami’s high-tech Location Quotient or LQ, the ratio million in venture capital in 2015, placing it 16th among sustainability of its startup ecosystem.28 The actions and that compares its concentration of high-tech industry to U.S. metros. Of this, nearly two-thirds ($196 million) investments of the Knight Foundation, eMerge Americas that of the entire nation, is 0.96, which is 4% below the flowed to software startups, with $66 million for media, conference, and others have done much to nurture and national average. (Miami’s LQ for high-tech employment $31 million for biotech, $25.5 million for medical, network the region’s emerging startup ecosystem. 25 is even lower at 0.80.) By way of contrast, San Francisco’s and nearly $9 million for information technology. In Unfortunately, Miami also suffers from relatively low- high-tech LQ is 2.1, and Boston’s is 1.5. Neighboring February 2016, the entertainment-technology startup quality entrepreneurship, according to a 2016 MIT study Tampa and Orlando have high-tech LQs of 1.1, showing Magic Leap, located in Dania Beach, raised $793.5 that identifies “quality” as a factor that enables metros the leverage that can come from harnessing the mega- million in new venture funding for a “cinematic reality to not just generate startups but to grow and scale them. Miami’s startup ecosystem is lagging in this ability Figure 4: Greater Miami Venture Capital Investment Figure 5: So-Flo Megaregion Venture Capital Investment compared to the Bay Area and Boston. “Even during the height of the dot-com boom,” the MIT study notes, “there was relatively little shift in the overall entrepreneurial quality of any region, and over time, there has been an erosion of relative quality in [the Miami] region.”29 And Venture Capital Investment (millions) while Miami ranked second among the nation’s 40 largest by Zip Code metro areas on firmformation, it also ranked next to last in Metro Miami Boca Raton 100 in growth among fast-growing “scale-up” companies, Gainesville Jacksonville according to the recently released Kauffman Foundation’s 2016 Index of Growth Entrepreneurship study.30 0.1 Fort The challenge the region faces on entrepreneurship is Lauderdale Orlando less one of quantity and more one of quality. The region Tampa Palm Bay is generating new business establishments and startups at an enviable pace; however, the issue is enabling those Lakeland Hollywood Venture Capital new establishments to scale into high-quality, sustainable Investment (millions) by Zip Code enterprises and large exit events that underpin world- in Metro Miami class entrepreneurial ecosystems. 100 Miami The key is to focus on the region’s unique and distinctive

10 industrial and talent strengths. Miami Beach’s Mayor 1 Levine put it candidly when asked back in 2014 if his MIAMI own Miami Beach could become another Silicon Valley. “It’s the dumbest idea in the world,” he said. “It’s important for cities to play to their strengths. Don’t try Source: Martin Prosperity Institute 2015 Source: Martin Prosperity Institute 2015 to be something you’re not… Miami Beach, our strengths are tourism and travel. We also think there’s great

www.creativeclass.com - @creative_class 14 BROADEN AND DEEPEN THE REGION’S GROWING STARTUP ECOSYSTEM // CONTINUED opportunity for us to attract hedge funds and private The first comes from the size and the scale ofthe the two neighborhoods that attract the most venture equity groups, because what do they need? They’re mega-region. When combined with Orlando and Tampa, capital in the U.S. – more than a billion dollars each looking for, number one, quality of life. We have it. the mega-region accounts for more than $600 million – are both located in downtown San Francisco. And Number two, they want beautiful places to live. Miami in venture capital investment, roughly comparable Lower Manhattan has become one of the nation’s and Beach, we have it. Number three, they want tax savings. to Greater Chicago, Austin, and Toronto.32 There are the world’s leading centers for startups and venture You move from New York to Florida, you’re going to save considerable technology skills and assets to be leveraged capital. Urban centers attract a diverse array of talent, probably almost 10% on your income.”31 across the mega-region: media and entertainment in allowing them to combine and recombine their ideas and Orlando, the space and aerospace cluster across the swiftly mobilize entrepreneurial resources. Denser cities “Space Coast,” and Tampa’s strengths in industrial, and neighborhoods are more efficient than suburban “I WOULD DESCRIBE THE MIAMI TECH energy, and communications technology. One example of nerdistans for startups. While established tech giants COMMUNITY AS A TWEEN. IT’S NOT AN the kind of collaboration and cooperation that is needed like Apple, Google, and Facebook require and can afford is the Florida Consortium of Metropolitan Research to build large corporate campuses, which are easier to INFANT ANYMORE, BUT IT’S STILL TRYING Institutions – a joint effort of public universities in Miami accommodate in suburban areas, cities are increasingly TO FIND ITS LEGS.” (Florida International University), Orlando (University the homes for startups. This is because the talent that of Central Florida), and Tampa (University of South is required for startups increasingly prefers urban areas. Florida) that leverages the diverse, but complementary, As New York venture capitalist Fred Wilson points out, The point is that to be successful Greater Miami must strengths and capabilities of their respective research “Society is at its most dense in rich urban environments develop a distinctive approach to innovation and communities. where society and technology can inspire each other on a 34 entrepreneurship that reflects and leverages its unique Second, Miami’s startup ecosystem is well-positioned to daily basis.” Miami is rich in exactly those kinds of urban strengths. This is also what we heard in our focus groups leverage the ongoing “urban shift” in startups and high- neighborhoods. In fact, our analysis of neighborhood- and interviews with Miami-area entrepreneurs and technology as businesses are increasingly opting to locate level startup activity and venture capital investment venture investors. in urban centers rather than suburban “nerdistans.”33 shows considerable clusters of activity in downtown Miami, including Brickell, Edgewater-Morningside, and “Miami still has a lot of growing to do,” is the way one of San Francisco now attracts far more venture capital investment than do the suburbs of Silicon Valley. Today, Wynwood, with other clusters in Coconut Grove, Miami our focus group participants put it. “In terms of a tech Beach, and downtown Boca Raton.35 hub, I don’t think we’ll be all things tech to all sectors and all niches. We’re still trying to discover what some Figure 6: Top 10 Greater Miami Neighborhoods for Venture Capital Investment of those key points and areas are that we’re going to Venture Capital Investment Share of Metro grow and rise in. But a lot is happening, and I think it’s Rank Zip Code Neighborhood (Millions) Total happening rather quickly.” 1 33487 Boca Raton $102 31.0% “I would describe the Miami tech community as a 2 33133 Coconut Grove $65 19.8% tween,” another said. “It’s not an infant anymore, but it’s still trying to find its legs.” Still another added, 3 33020 Hollywood $30 9.1% “I think we’re finally realizing we don’t need to bea 4 33126 Miami Airport $29 8.9% Silicon Valley. We don’t need to be New York. We can be 5 33431 Boca Raton $19 5.8% something altogether different. But we’re still trying to 6 33180 Aventura $15 4.6% figure out what that difference is.” 7 33186 Kendall Airport/ Three Lakes $13 4.1% All of this being said, our analysis suggests that there 8 33324 Fort Lauderdale $12 3.7% are three strengths that the region can draw on to 9 33004 Dania $12 3.6% improve the quality of its entrepreneurial ecosystem and 10 33122 Doral/ Miami Airport $10 3.2% accelerate its startup potential. Source: Martin Prosperity Institute 2015

www.creativeclass.com - @creative_class 15 BROADEN AND DEEPEN THE REGION’S GROWING STARTUP ECOSYSTEM // CONTINUED

Third, Miami can do even more to leverage its other creative economy strengths beyond technology – in arts, culture, fashion, music, design, media, entertainment, food and others – to grow its startup ecosystem. New York’s and London’s startup scenes have thrived by connecting technology with long-established industries and talent bases in finance and fintech, digital media, and entertainment. Miami entrepreneurs are also discovering the opportunities that its region’s broader creative economy offers. “You’re part of the ecosystem,” is the way one of our focus group participants put it, “and there isn’t that much difference between the tech entrepreneur and ... the international entrepreneur.” The broader lesson is that Miami’s startup scene will thrive to the extent that it is built around the industries – healthcare, lifestyle, consumer, logistics, bio- sciences, or mitigating sea-level rise – in which Miami is already strong.

“YOU’RE PART OF THE ECOSYSTEM, AND THERE ISN’T THAT MUCH DIFFERENCE BETWEEN THE TECH ENTREPRENEUR AND THE INTERNATIONAL ENTREPRENEUR.”

But even the most bullish members of Miami’s startup economy understand that its ecosystem is still developing. “It’s like we’re waiting for the handful of people who are in college right now to grow their startups,” one said. To get there, Miami needs to build on the creative strengths that it already has.

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is licensed under

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BUILD A FULLY CREATIVE ECONOMY

iami’s economic future lies in something bigger and more powerful than tech. The future lies in its broad-based creative economy, which combines its strength in arts, culture, fashion, media, entertainment, M music, and food with those of science and technology, health and education, and business and finance. Our research shows that three key talent sectors – science and technology, business and finance, and arts, culture, design, and media – power economic growth and lead to higher incomes and living standards.36

Figure 7: Defining the Creative Class

Arts and Professional and Education Technology Culture Management

Source: Richard Florida, The Rise of the Creative Class Revisited, New York: Basic Books, 2012

www.creativeclass.com - @creative_class 17 BUILD A FULLY CREATIVE ECONOMY // CONTINUED

Greater Miami is home to nearly 700,000 creative class workers, who have occupations in science, technology, engineering, architecture, media, arts, academia, finance, medicine, and business management. That being said, the metro’s creative class makes WHILE A TRADITIONAL INDUSTRY- BASED ANALYSIS up just a quarter of its workforce, 6% below the national average. However, the creative class makes up 31.3% of the workforce in Miami-Dade County, and it is tightly clustered PINPOINTS A WORKER’S PLACE AND SECTOR OF and concentrated in Miami’s urban neighborhoods, making up anywhere from two-thirds EMPLOYMENT, AN OCCUPATIONAL ANALYSIS OFFERS to three-quarters of workers in parts of downtown Miami, Coconut Grove, Brickell, Key, and Pinecrest, and around the region’s major universities.37 Looking beyond greater A LOOK AT THE DIFFERENT TYPES OF SKILLSETS A Miami, there are nearly 1.7 million Creative Class workers in So-Flo; Miami has the size REGIONAL WORKFORCE MAY HAVE. and scale necessary to build on the creative talents of its current workforce.

Figure 8: Top 10 Greater Miami Creative Class Neighborhoods

Creative Rank Neighborhood (Census Tract #) Class Share 1 Pinecrest (78.06) 76.6% 2 Downtown Miami (waterfront) (67.13) 71.7% 3 South Coconut Grove (waterfront), Miami (73) 71.5%

4 Boca Raton (near Florida Atlantic University) (70.08) 70.4% Figure 9: Creative Class (% of Workforce) 5 Brickell Key/Downtown (waterfront), Miami (67.07) 69.8% 6 North Coconut Grove (waterfront), Miami (68.01) 69.4% Washington, D.C. 44.6% 7 Coral Way/Islands (waterfront), Miami (67.06) 69.3% San Francisco 37.6% 8 University of Miami, Coral Gables (79.01) 68.7% San Diego 33.5% 9 Aventura (waterfront) (1.29) 68.7% New York 32.7% 10 Pinecrest (78.07) 68.5% Philadelphia 32.2%

Source: Martin Prosperity Institute 2015 Atlanta 32%

As a key part of our study, we took a deep dive into Miami’s occupational clusters and Los Angeles 31.5% talent base. This provides a different and complementary set of insights than a more Chicago 31.5% traditional industry cluster analysis. For example, while an industry cluster analysis Dallas-Fort Worth 29.4% would classify a computer programmer and nurse who work for a hospital as members Phoenix 29.3% of the healthcare industry, our occupational or talent-based approach places them respectively in the software and computer sector and the healthcare sector. While an Houston 29.0% industrial cluster analysis may offer important information for firm recruitment and San Antonio 27.5% economic planning, it is the clusters of talent and skills that drive long-run growth and Miami 25.8% prosperity. Here, we combine the insights of our talent-based cluster analysis with the important findings of the industrial cluster analysis conducted by the Beacon Council Orlando 25.4% to cover both the industry and talent sides of the equation. Together, they provide Las Vegas 20.7% powerful insights. Source: Bureau of Labor Statistics 2015

www.creativeclass.com - @creative_class 18 BUILD A FULLY CREATIVE ECONOMY // CONTINUED

Our analysis of the region’s occupational clusters identifies greater Miami’s key creative talent strengths to include legal, healthcare, businesses and financial operations, and arts, design, and media. (See Figure 10) This lines up with the findings from the Beacon Council’s analysis of the area’s industry and employment-based clusters, which found healthcare, professional services, and culture and entertainment as key creative and knowledge-based industries. (See Figure 11)

Figure 10: Greater Miami Creative Class Occupational Clusters Figure 11: Top 20 Miami-Dade County Industrial Clusters

2.25 Bubble Size: Total Employment (2010) Bubble Size: Total Employment (2015) 1.8% Transportation and Logistics

Legal 1.6%

1.75 Consumer Goods Manufacturing Non-Profits 1.4% Biomedical Supplies and Labs Professional Private Healthcare Services Education Education Arts, Design and Media Retail

Finance Culture and 1.2% Engineering, Design, Entertainment 1.25 Back Office and Content Architecture and Engineering 1%

LQ Specification (2015) Telecom Industrial Research (National Average = 1.00) Average (National 0% 2% 4% 6% 8% 10%10% 12% 14% Location Quotient (2010) Services Machinery Electronics Healthcare 0.8% Agribusiness 0.75 and Food

Business and Financial Operations Science Building and Government Construction 0.6% Software / Info. Tech. Management Computer and Mathematical

0.4% 0.25 -45% -35% -25% -15% -5% 5% 15% 25% Job Growth (2010-2015) Local Growth (2005-2010)

Note: Occupations include both payroll and self-employed individuals * Includes annual Source: Beacon Council, “One Community: One Goal Strategic Plan and Target Industries,” 2012 replacements Source: EMSI 2015 and CCG Analysis 2016 is

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www.creativeclass.com - @creative_class 19 BUILD A FULLY CREATIVE ECONOMY// CONTINUED

Our talent-based cluster analysis identifies nine major average by 6% and expected to grow by 11% by 2024. drafters, and engineers, earning an average salary of occupational groups and skillsets that comprise the This cluster is critical to Miami’s position as a global city $75,000) lags the national average by a considerable broad talent base of greater Miami’s knowledgeable, and as a business and financial hub of Latin America. 42%. This likely reflects the gap in the region’s creative, and innovative economy. Furthermore, our research identifies this talent cluster engineering talent base, which will be important to along with two others – the science and technology close as the metro strives to improve its innovative and Legal Professionals: With a share of legal talent spanning cluster and the arts and culture cluster – as a key driver entrepreneurial ecosystems. FIU’S recent commitment lawyers, paralegals, and judges that is 75% greater than of long-run metro growth.40 This is also consistent with to increase its engineering offerings is an important step the U.S. average, Miami has a competitive advantage in the economic development recruitment efforts of the in this direction.44 legal talent. This cluster supports a talent base of 38,000 Beacon Council, which has identified banking and finance, legal professionals with an average salary of $92,000, specifically international, as one greater Miami’s seven Software and Information Technology: The region and it is expected to grow by almost 20% by 2024. target clusters.41 lags the national average in software, computer, and information technology talent by a substantial 30%. Its Mangagement: Despite Miami’s competitive advantage Healthcare Professionals: The region’s healthcare 49,000 software designers, web developers, computer in business and financial talent, its share of top- scientists, mathematicians, and statisticians average talent cluster, which includes 154,000 doctors, nurses, level business talent, such as CEOs and other C-suite nurse practitioners, physicians’ assistants, and others $69,800 in annual salary. However, this talent cluster is executives, lags the national average by 28%. This may projected to grow by some 15% by 2024. healthcare professionals, provides it with another be a reflection of the fact that Miami has more satellite competitive advantage. The metro’s largest high-end offices and subsidiaries than corporate headquarters. talent base, it is 8% larger than the U.S. average and is Scientists: The region also lags the nation in its cluster It is important to focus on and close this gap, as this of scientific talent: its 11,000 physical, biological, and expected to grow by 11% by 2024 (5,220 job openings is the talent the region needs to scale and grow its per year). This cluster earns an average annual salary of social scientists are roughly half the national average. entrepreneurial enterprises, which are critical factors in This cluster is also expected to grow by a substantial 14% $73,000. 42 its long-run success. over the next decade. The healthcare occupational cluster is essential for Education: Miami’s education cluster, which the growth and development of greater Miami’s health includes118,000 college professors, high school teachers, Arts, Design, Media, and Entertainment: Greater sciences industry, a sector the Beacon Council identified primary teachers, librarians, and special education Miami’s arts, design, media, and entertainment talent as a key target industry. Miami’s health sciences industry teachers, is considerable but lags the national average cluster is made up of nearly 50,000 workers and is just is comprised of 8,000 biomedical, medical device, and by 22%. The sector is projected to grow by 13% over the behind the national average. These workers underpin the pharmaceutical companies, including Beckman Coulter, next decade. This is likely a result of the age structure creative design industry cluster identified by the Beacon BD Biosciences, Cordis (a Johnson & Johnson Company), of the region’s population: its average age of 40.2 is Council, which includes a who’s who list of companies, Merck, Baptist Health Florida, CareCloud Corporation, 3.4 years older than the national average. Still, as the including Perry Ellis, Rene Ruiz, Disney Media Networks, Jackson Memorial Hospital, Noven Pharmaceuticals, metro seeks to expand its talent base, its educational HBO Latin America Group and MTV Latin America, and 38 45 and Teva Pharmaceuticals. This industry also boasts talent cluster will need to expand as well. Again, Univision Networks. several key anchor institutions: University of Miami’s the Beacon Council’s industrial cluster analysis found Life Science Park, University of Miami’s Miller School education to be a key foundational cluster, essential Here, the region has considerable assets on which to of Medicine, and Florida International University’s to underpinning growth in the region’s other target build, including its burgeoning contemporary art scene, 39 College of Medicine and Biomedical Engineering. sectors.43 the Wynwood Arts District, Miami Art Basel festival, New World Symphony, the Perez Art Museum, the Ultra Music Business and Finance: Greater Miami has an additional Architecture and Engineering: Even with all of the Festival, and the Wine and Food Festival, to name just competitive advantage in business and financial talent. active construction projects in the region, Greater a few. Arts and culture add $2 billion dollars a year to With 136,000 workers, it is the second-largest of the Miami’s architecture and engineering talent cluster the economy of Miami-Dade County, according to a 2015 46 region’s high-end talent clusters, exceeding the national (25,000 architects, landscape architects, estimators, report by American for the Arts. At the FIU College of

www.creativeclass.com - @creative_class 20 BUILD A FULLY CREATIVE ECONOMY // CONTINUED

Communication, Architecture + The Arts (CARTA) alone, of the reasons why people come here and stay.” there’s a considerable talent pool being prepared as well, The interviews and focus groups we conducted with with more than 2,000 students studying everything from Miami area arts and culture stakeholders revealed several The breadth of Greater Miami’s talent base in arts, interior design and architecture to communications, key issues. The participants expressed real concern that film, video, entertainment, and music was a key factor music, and theatre. Given these considerable assets, the Miami is losing artists and creative people to other major in Viacom’s decision to open a new 88,000-square-foot Beacon Council has identified creative design – spanning markets because its support structures are not as robust production studio in downtown Miami. Viacom has a long fashion, film, entertainment, industrial design, and as they could be. While Art Basel provides great exposure history in the region, having operated in Miami since architecture – as a key a target sector for economic for Miami and generates considerable local income, it 1993, employing more than 6,000 full-time employees development efforts.47 is somewhat disconnected from the local artistic and and producing more than 750 hours of content. But as creative communities, according to several focus group Juan “JC” Acosta, Executive Vice President and Chief participants. The region can look for ways to create Operating Officer of Viacom International Media, told greater synergies between this world-leading arts event the Miami Chamber of Commerce at its South Florida “ARTS AND CULTURE ARE TRULY THE and its own artistic, creative, and design communities. Economic Summit in January 2016, a driving factor in this decision was the depth of that talent base as well. As FIBER THAT CONNECTS BUSINESS, At a deeper level, the arts help create a deep, lasting he described it, Miami’s creative community is not only COMMERCE, ECONOMIC DEVELOPMENT, sense of place that connects people to the region and deep and varied, it has a substantial cost advantage over helps build Greater Miami’s reputation as a creative creative centers like New York, London, and Los Angeles. AND PEOPLE’S LIVES, PROVIDING A center. “In the past,” as one focus group participant Further, locating in Miami affords Viacom the ability to use SENSE OF COMMUNITY, PLACE, AND put it, “our narrative has been very tourism-driven, so the same sound stages, locations, and production studios naturally we’ve relied on the arts to create a sense of to film content for both the English and Spanish language COMMUNICATION. IT’S DEFINITELY VERY place.” Another added that, “Arts and culture are truly markets. “We are optimistic our studios will show the CENTRAL TO MIAMI.” the fiber that connects business, commerce, economic value of generating new business in the local Miami development, and people’s lives, providing a sense of community and bring other global players to the market,” community, place, and communication. I think it’s he told the Greater Miami Chamber of Commerce in early definitely very central to Miami, and I think it’s been one 2016. “We hope to create a best of class here in Miami.”48 CC BY 2.0 . No CC BY is licensed under

Phillip Pessar

changes were made to the original file. “Wynwood Walls” by Walls” “Wynwood

www.creativeclass.com - @creative_class 21 UPGRADE THE REGION’S SERVICE SECTOR

s Greater Miami grows its innovative and creative knowledge economy, it is Figure 12: Greater Miami Service Sector Occupational Clusters important to remember how much of the region’s long-run economic health and prosperity depend on its tourism, hospitality, and service talent. All A told, more than half (53%) of Miami’s workforce, or 1.3 million workers, are Bubble Size: Total Employment (2015) 1.60 Sales employed in the service sector – 18% more than the national average. Among large Protective metros, only Las Vegas has a more service-intensive economy. The region’s service Services 1.40 Healthcare occupations comprise mainly lower-skill, lower wage positions in food preparation, Support retail sales, and office administration, as well as healthcare support, earning an 1.20 average annual salary of just $32,000 – less than half the average pay for the region’s Food knowledge, professional, and creative workers. Our analysis identified seven leading Preparation occupational groups and skillsets. 1.00 -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Protective Services: Some 85,000 greater Miami residents work in protective services 0.80 as security guards, policemen, firemen, TSA professionals, and so on. This is46% above the U.S. average and is expected to grow by 10% by 2024. The average annual Personal Service Office 0.60 LQ Specification (2015)

salary for this skill group is $44,230, the highest for all service-based occupations. = 1.00) AVerage (National Administration and Support

Sales: The region has a significant competitive advantage in sales occupations, 0.40 Community and including both commission salespeople and cashiers. This talent cluster employs Social Services

85,000 workers and is 34% larger than the U.S. average. It is expected to add more 0.20 than 13,000 annual jobs until 2024. The average annual salary for this cluster is

$38,150. Not surprisingly, this is also compatible with the Beacon Council’s report, 0.00 which found the region’s retail sector to be 10% larger than the national average and forecasted to grow slightly faster than the country as a whole.49 Job Growth (2010-2015) Office Administration: Some 369,000 of Miami’s service workers are employed in routine office administration – 16% more than the national average. This number is Note: Occupations include both payroll and self-employed individuals *Includes expected to increase by 7% to nearly 400,000 by 2024. However, the average annual annual replacements salary for this occupational cluster remains low at approximately $33,000. Source: EMSI 2015 and CCG Analysis 2016

www.creativeclass.com - @creative_class 22 UPGRADE THE REGION’S SERVICE SECTOR // CONTINUED

Food Service: Another 460,000 workers are employed lower in Greater Miami. The fact of the matter is that needs and preferences while serving as positive brand in food preparation and services, in jobs ranging from Greater Miami never was an industrial economy and, in ambassadors.54 By pursuing these strategies, workers bartender to dishwasher. This is 13% larger than the fact, is an example of an economy that has grown around bring more productivity and value to their positions, U.S. average and reflects the region’s specialization in post-industrial services and knowledge. enabling them to be paid more, which in turn generates tourism and hospitality. The region’s food preparation Upgrading service work from its current low-skill, low- improved productivity and profits for their companies and cluster is its lowest-paid, with an average annual salary pay status to higher-skill, higher-paying work offers the ultimately improves the productivity profit and customer of less than $22,500. region a way to simultaneously rebuild its middle class service of the service economies in the regions where Healthcare Support: More than 240,000 of the region’s and bolster its productivity and competitiveness.51 MIT these leading-edge service firms are located. In fact, a workers are employed in healthcare support as nurses’ research finds that paying retail, hospitality, and service detailed study of the role of industry and talent clusters aides or home health aides. This occupational cluster workers more, offering them more secure employment, in regional growth finds that regions have much to gain is expected to grow significantly – by more than 12% training them better, and utilizing them as sources of from upgrading their routine, locally focused service by 2024 – with nearly 14,500 annual job openings. The innovation and productivity results in higher rates of industries into more innovative and competitive clusters. average annual salary is low at $26,750. productivity and higher rates of profitability.52 As MIT’s Given the size and the fundamental importance of the Zeynep Tom, author of The Good Jobs Strategy puts it, region’s hospitality, travel, and tourism economy – which Personal Services: Nearly 100,000 (96,000) of the generates more than $25 billion in direct and indirect region’s workers are employed in personal service companies and regions that keep wages low in an attempt to achieve lower prices make a critical mistake. “The economic impact – the region can benefit greatly from occupations, which includes concierges, personal 55 problem with this very common view is that it assumes such efforts. Here again, the issue is turning quantity assistants, hairstylists, manicurists, travel guides, dog into quality. Greater Miami is generating a plethora of walkers, and so on. This cluster is 13% smaller than the that an employee working at a low-cost retailer can’t be any more productive than he or she currently is. It’s service jobs, but it needs to turn them into the higher- U.S. average and expected to grow by 5.9% by 2024. The paying, more secure, more knowledge-intensive jobs average annual salary is only $23,000. mindless work so it doesn’t matter who does it. If that were true, then it really wouldn’t make any sense to that can bolster the region’s competitiveness and help 56 Greater Miami has much to gain from upgrading this pay retail workers any more than the least you can get to build its middle class. Imagine the benefits to the large number of low-paying service jobs. Doing so can away with.”53 local hospitality and tourism sector and its huge numbers help increase the productivity and competitiveness of of workers if Greater Miami could become the nation’s its hospitality and tourism sector, make the region more To combat this issue, best-in-class service companies and the world’s leading-edge example for a high-paying, competitive, and raise the quality of life for its residents, like Wegmans, Trader Joe’s, Costco, and The Container high-productivity, customer-focused service economy. while increasing pay and helping to build a stronger Store are involving workers directly in innovative middle class. Indeed, the Beacon Council also identifies activity, training them more fully, and paying them more hospitality and tourism as one of the region’s key target in order to get the most out of them. These companies 50 industries. Service jobs provide the same kinds of “port do three key things to upgrade and improve these of entry” jobs that factory work did a century ago. During service jobs, increasing their own productivity and profit the 1930s and 1940s, this nation undertook substantial but also enabling their broader regions to offer more efforts to transform once low-wage, insecure factory jobs competitive and customer-friendly service economies. into good, family-supporting middle-class work. By the First, they redesign jobs to better engage employees 1950s, factory workers were the backbone of America’s and tap into their innate creativity with a belief that middle class. But that is no longer the case, thanks to tasks do not have to be menial and add little-to-no the ongoing globalization and deindustrialization of the value. Second, they cross-train employees to make them economy. Nationwide, only about a fifth of workers are more flexible and experts across multiple areas. Third, employed in classic blue-collar occupations in factories, they empower workers to make key decisions about construction, and transportation, and only 6% are product returns, inventory needs, and customer service employed in direct factory work. And the share is even issues to ensure their companies are responsive to local

www.creativeclass.com - @creative_class 23 MIAMI IS THE 8TH LARGEST COLLEGE TOWN IN THE NATION.

CAPITALIZE ON BRAIN CIRCULATION

reater Miami, like virtually all large regions, faces a brain drain as large numbers of smart and ambitious young people choose to go to college or embark on careers elsewhere. On the flip side, Miami benefits G from its ability to attract a significant inflow of talent from across the demographic scale, from immigrants and students to young families and retiring baby boomers. More than 2.2 million Greater Miami residents are from another country – nearly 40% of its total population and the highest share in the U.S. A large number of talented people from all over call the region home for the winter season as well. Greater Miami is home to 438,000 full-time and part-time students, making it the eighth largest “college town” in the nation. Florida International University has now expanded to become the fourth-largest institution by enrollment in the U.S. and has made investments over the last four decades to offer an array of advanced degrees to students from all over the world.

www.creativeclass.com - @creative_class 24 CAPITALIZE ON BRAIN CIRCULATION // CONTINUED

Despite conventional wisdom, the region does well at retaining the students it graduates. It ranks 16th of the 50-plus metros with populations of over a million in its retention of graduating students – keeping more than two thirds of them (67%), according to a detailed analysis of college graduation and alumni data of over 1,700 of the largest U.S. colleges and universities.57 This is better than the retention rates of metros like Washington, D.C., San “MOST PEOPLE INSTINCTIVELY ASSUME THAT THE Francisco, Philadelphia, and San Diego. FIU’s retention MOVEMENT OF SKILL AND TALENT MUST BENEFIT ONE rate is nearly 70%, Miami-Dade College’s is 81%, and the University of Miami’s is nearly 50% (45.3%). COUNTRY AT THE EXPENSE OF ANOTHER. BUT THANKS It’s time for the region to replace its longstanding fixation TO BRAIN CIRCULATION, HIGH-SKILLED IMMIGRATION on brain drain with an understanding of its more enviable position as a hub of a broader global brain circulation INCREASINGLY BENEFITS BOTH SIDES. ECONOMICALLY – a phenomenon initially identified by AnnaLee Saxenian SPEAKING, IT IS BLESSED TO GIVE AND TO RECEIVE.” of the University of California at Berkeley to account for the growth of Silicon Valley as a global center for innovation.58 The key to understanding its innovative and - ANNALEE SAXENIAN entrepreneurial ecosystem, she found, lies in its role as a hub in brain circulation. Anywhere from one-third to one- half of the founders of Silicon Valley companies in the late 1990s and early 2000s were immigrants to the U.S. Many of them, especially those from India and China, ultimately returned to their home countries, creating additional opportunities abroad and aiding in globalization. Greater Miami’s ties to Latin America and the Caribbean, its influx of full-time and part-time residents from Europe, Canada, and the Boston-New York-Washington Corridor, and its large number of students create a potentially larger hub for global brain circulation. Once more, the issue is moving from quantity to quality. The greater Miami region is attracting a large inflow of people from around the U.S., Latin America, and around the world. It is one of the largest destinations for students and it retains a lion’s share of the students it educates. But it continues to lose the very best to places like New York, Los Angeles, and the Bay Area. Now, it is time for the region to up its game at attracting and retaining more of them as well.

www.creativeclass.com - @creative_class 25 PROMOTE THE REGION’S TOLERANCE AND DIVERSITY AS ECONOMIC STRENGTHS

reater Miami’s status as perhaps the most open- growth.60 Detailed cross-national research from the • Gay and Lesbian Index: Miami ranks 16th among minded and diverse metro in the nation provides Petersen Institute of International Economies finds that large metros on the Gay and Lesbian Index, which it with a key competitive advantage. As we have openness to immigrants and the gay community is a measures the concentration of gays and lesbians G seen, four in 10 of Miami’s residents are foreign- key factor in the globalization and overall economic born, a larger share than that of even New York and Los performance of nations.61 As the economist Scott Page • Bohemian Index: Miami ranks 18th among large Angeles. From Andrew Carnegie in steel to Andy Grove notes, considerable evidence shows that “diverse cities metros on the Bohemian Index, which gauges in semiconductors, immigrants have been a key factor are more productive, diverse boards of directors make a region’s openness to artists, musicians, and in America’s economic growth since the Industrial better decisions, the most innovative companies are performers. Revolution. Immigrants make up a sizeable share of the diverse.”62 • Overall Tolerance Index: Miami ranks second of nation’s science and engineering talent base. And as Tolerance, diversity, and openness are not just social large metros on our Overall Tolerance Index, which we have seen, immigrants helped to found more than virtues, they are a competitive advantage that bolsters combines the Melting Pot Index, Bohemian Index, and half of the nation’s billion dollar-plus startups.59 a region’s ability to attract the top-quality creative, Gay and Lesbian Index into a composite index. Tolerance is the third T of economic development, entrepreneurial, and management talent that fuels alongside Technology and Talent. Leading tech centers regional innovation and economic growth. Miami can strategically utilize and capitalize on openness and tolerance as a huge advantage in global like San Francisco, Seattle, Austin, and other creative Greater Miami stacks up as one of the leading regions talent attraction and a key force in its future economic centers combine high levels of talent with high levels in the nation and the world across our key metrics of growth. of technology to generate their innovative edge. This openness and tolerance. is because talent cuts across all ethnicities, races, and sexual orientations. Places that can attract and harness • Melting Pot Index: Miami ranks first among large talent from all demographic groups gain an additional metros (over a million people) on the Melting Pot economic advantage. Our own research indicates the Index, which measures the share of immigrants and strong connection between an area’s openness to foreign-born nationals. different groups and its innovativeness and economic

“DIVERSE CITIES ARE MORE PRODUCTIVE, DIVERSE BOARDS OF DIRECTORS MAKE BETTER DECISIONS, THE MOST INNOVATIVE COMPANIES ARE DIVERSE.”

www.creativeclass.com - @creative_class 26 USE QUALITY OF PLACE AS A KEY ECONOMIC DRIVER

reater Miami’s quality of place – the combination of its warm climate, abundant sunshine and coastline, arts and culture investments, urban scale and density, THREE DIMENSIONS OF QUALITY OF PLACE and pedestrian-friendly, amenity-rich neighborhoods that are lively 24 hours • What’s there: the combination of the built environment and G a day – provides it with another strategic advantage for talent attraction and the natural environment; a proper setting for the pursuit of retention. creative lives The talented people who power innovation and drive economic growth increasingly • Who’s there: diverse kinds of people, interacting and have a choice in where they live, and quality of place – alongside jobs and providing cues that anyone can make a life in that community opportunities – is a driving factor in that choice. Increasingly, they are opting for cities and communities with unique quality of place assets that are inspiring to • What’s going on: vibrancy of street life, café culture, them. arts, music, and people engaging in outdoor activities – all together a lot of active, exciting, creative endeavors Furthermore, the extraordinarily high housing prices in cities and regions like New York, London, and the Bay Area, are forcing away all but the most successful talent. While Greater Miami’s housing prices are high in its most desirable coastal locations and while its low-income populations face a substantial housing burden, the region still has more affordable middle-class housing options than places like New York, San Francisco, and Los Angeles. Miami has a window of opportunity to capitalize on is economic strengths, quality of place, and housing prices to attract larger numbers of entrepreneurs, innovators, and the Creative Class. But for all its strengths on climate and culture, our focus groups and interviews indicate that Greater Miami continues to lag as an “idea capital.” This puts a ceiling on Miami’s ability to attract human capital. According to former NYU President John Sexton, cities have to be centers of ideas – not just arts, culture, or even technology – in order to compete at the highest levels.63 Great global cities like New York, London, Paris, Los Angeles, Boston, and San Francisco are centers of global idea generation, setting the tenor and terms of global debate and conversation. While Miami has a firm base of universities and colleges, it is lacking in the think tanks, foundations, and other idea institutions that characterize great global cities. To attract the talent it needs, Greater Miami must expand its efforts to improve quality of place beyond its natural amenities and arts and culture institutions and commit more to its institutions and stature as an idea capital.

www.creativeclass.com - @creative_class 27 ENGAGE ALL OF MIAMI IN INCLUSIVE PROSPERITY

reater Miami suffers from the same divides and suffers from a substantial level of concentrated poverty its less-advantaged groups to achieve economic mobility inequalities that plague most large cities and metro and disadvantage, with 14% of households and one in and realize the American Dream has stalled. areas. In fact, our analysis finds that the region has five of its families with children living below the poverty The map below shows the geography of the region’s G troublingly high levels of inequality and economic line.65 More striking, more than half a million Miami- three main socio-economic classes: the advantaged 64 segregation. For all its visible wealth, Miami’s median Dade County families live in poverty, a poverty rate of creative class, which averages $70,000 annually in wages 66 household income is just $48,435, which is among the 20%, which is 30% higher than the national average. and salaries; the less-advantaged service class, which lowest of all the major metros in the U.S., and it has Incomes for all but the top 5% of its earners have declined averages $32,000 annually; and the working class, which fallen 1% over the past five years. In fact, Greater Miami since 2008, according to a recent study from FIU Metro earns just $31,000 on average. ranks seventh of all 350-plus U.S. metros and second Center.67 Greater Miami’s middle class is faltering, its among large metros on income inequality. The region gap between rich and poor is growing, and the ability of

Figure 13: Greater Miami Divided Figure 14: City of Miami Divided

Lake West Okeechobee Palm Beach

Model Morningside Boca City Raton Design District

Downtown Fort The Everglades Lauderdale

Flagami Little Havana Brickell FOR ALL OF ITS DIVERSITY, MIAMI IS Miami THE LEAST INTEGRATED, BOTH RACIALLY North Coconut AND ECONOMICALLY, OF ALL OF OUR Grove Pinecrest BENCHMARK METROS.

Class Share

Primarily Creative Class Primarily Service Class Class Share Primarily Working Class 50% 75% Primarily Creative Class Primarily Service Class Primarily Working Class 50% 75%

Source: Martin Prosperity Institute 2015 Source: Martin Prosperity Institute 2015

www.creativeclass.com - @creative_class 28 ENGAGE ALL OF MIAMI IN INCLUSIVE PROSPERITY // CONTINUED

The nature of the region’s class divide is staggering. is concentrated in historically disadvantaged urban areas This class-divided pattern reinforces the region’s Miami’s advantaged knowledge workers and creative that reflect the region’s long-standing racial and ethnic inequality as the more-advantaged class has access to class is clustered along its coastline, in and around the divides and is increasingly pushed out to the peripheries, better schools, better libraries, better services, safer city’s booming downtown in Brickell and out to affluent including Overton, Sunrise, North Miami Beach, Liberty streets, better amenities, and better employment and suburbs like Pinecrest, and around its major universities City, and West Perrine. The region’s working class is peer networks, while those in isolated communities and and knowledge hubs like FIU, the University of Miami, and concentrated in Hialeah, Little Havana, Loch Lomond, disadvantaged areas suffer from poorer schools and Florida Atlantic University in Boca Raton. Its service class and Flagami.68 lower social mobility. Indeed, a Stanford University study finds that this kind of place-based inequality adds an Figure 15: Top 10 Greater Miami Service Sector Neighborhoods additional 20% greater inequality than can be accounted for by just the gap in earnings between high school and Rank Neighborhood (Census Tract #) Service Sector Share college graduates. In this way, a divided geography 1 Overtown, Miami (36.01) 82.6% reinforces and compounds economic inequality, 2 Coral Gables (9803) 78.6% cutting off large shares of residents from meaningful 3 Miami Beach (44.05) 75.9% economic participation and opportunity and a chance at the American Dream.69 As the FIU study points out, 4 Sunrise (602.07) 74.6% targeted investment in Miami’s distressed neighborhoods 5 North Miami Beach (2.06) 74.5% would have far-reaching benefits, including maximizing 6 Liberty City, Miami (15.01) 73.6% talent, easing transportation congestion, lowering 7 West Perrine (83.09) 72.8% other public costs, and ensuring greater prosperity for 8 Fort Lauderdale (409.01) 72.1% a broader majority of the region’s residents. By building 9 Golden Glades (2.15) 71.6% a more inclusive community, Miami can improve the life prospects of all its people and tap into the talents of 10 Deerfield Beach (104.03) 71.3% all of its residents as a source of shared prosperity and Source: Martin Prosperity Institute 2015 economic growth.

Figure 16: Top 10 Greater Miami Working Sector Neighborhoods

Rank Neighborhood (Census Tract #) Working Sector Share 1 Hialeah (16.05) 56.2% 2 Little Havana, Miami (52.02) 54.6% 3 Loch Lomond/Pompano Beach (303.01) 53.6% 4 Hialeah (7.12) 53.4% 5 Hialeah (7.10) 52.3% 6 Hialeah (135) 51.6% 7 Flagami, Miami (51.03) 51.2% 8 Hialeah (131) 49.1% 9 Hialeah (8.07) 48.4% 10 Allapattah, Miami (24.02) 48.2%

Source: Martin Prosperity Institute 2015

www.creativeclass.com - @creative_class 29 ADDRESS THE REGION’S GROWING CRISIS OF SUCCESS

reater Miami now faces a series of deep challenges that stem from its substantial successes and growth. At five or six million people, regions like Miami cross a threshold where cars and roads become so congested that gridlock sets in, and G their ability to increase the velocity of moving people, goods, and ideas – which is critical to innovation and economic growth – stalls. Simply put, Miami’s old growth model of sprawl and car dependence has become obsolete. The region’s workers face a one-way commute of nearly a half-hour (27.7 minutes on average), longer than residents of Dallas, Orlando, San Diego, or Las Vegas. Traffic congestion and long commutes are not just unenjoyable, they are unproductive. The average greater Miami commuter wastes more than a week of work (52 hours) annually stuck in traffic, the 12th worst in the country. This costs the region more than $1,169 in lost productivity per commuter, which adds up to nearly $3 billion.70 More than three-quarters (78%) of the region’s workers drive to work by themselves, compared to 50% in greater New York, 60% in San Francisco, and 66% in Washington, D.C. More distressingly, in a region with such a warm, sunny climate, only 2% of its residents walk to work, and an even more negligible fraction get to work by bicycle. Fewer than 10% of workers carpool, and just 3.8% use public transit.

www.creativeclass.com - @creative_class 30 ADDRESS THE REGION’S GROWING CRISIS OF SUCCESS // CONTINUED

There are three things the region can leverage here: providing improved access to economic opportunities The first is to continue to shift from sprawl to denser for less-advantaged communities and neighborhoods. development. Greater Miami is adding density in its core Miami-Dade County’s proposal to invest in mass transit is 71 and along its coastline, but the region needs to increase a welcome development. it even further and develop a new, more urban model The third is to use fast and high-speed rail to connect for development. Density is a driver of innovation. As we the main hubs in the mega-region. All Aboard Florida, have seen, startups and high-tech entrepreneurship are scheduled to launch in early 2017, will begin with service shifting from an older suburban nerdistan model back to between Miami and West Palm Beach at speeds that dense urban centers. Innovation and entrepreneurship, are comparable to that of the Acela on the Northeast now more than ever, require proximity, propinquity, and Corridor. In late 2017, it will also provide connections the clustering of diverse firms and people. The region between Miami and Orlando. This is a great step forward needs to completely re-think and re-do its approach to at compressing time traveled and distance, but imagine land use, density, transportation, and employment in what true high-speed rail could do. Based on the ways that limit sprawl and maximize density. standard speeds of high-speed trains that are currently The second is to use transit to lessen congestion and in operation in Europe and Asia, travel time from Miami connect key nodes and hubs. From Miami Beach to to Palm Beach would shrink to 19 minutes, from Miami to downtown Brickell and Coconut Grove, across Wynwood Orlando to 90 minutes, and from Miami to Tampa to less and the Design District to Edgewater and more, Miami than two hours. This would essentially make the mega- is a collection of neighborhoods, hubs, and community region an integrated economic unit and commuting centers. A broader, improved infrastructure system shed. Envision the power that could come from an will better connect these hubs, take pressure off the integrated Southern Florida economy the size and scale roads, reduce congestion and commute times, and most of the Netherlands. To get there, a new and more robust importantly act as spurs to increase density and mixed- approach to regionalism and regional cooperation is use development around transit stops and stations while required.

Figure 17: So-Flo Megaregion High-Speed Rail Travel Time

Journey Driving Distance Driving Time High-Speed Rail Time Miami-Fort Lauderdale 29 Miles 0:36 0:11 Miami- Palm Beach 48 Miles 0:47 0:19 Miami- Orlando 235 Miles 3:21 1:31 Miami-Tampa 281 Miles 3:56 1:49

Source: CCG Analysis 2016

www.creativeclass.com - @creative_class 31 MIAMI’S INFLECTION POINT

reater Miami is at a critical inflection point. As we have seen, Miami’s growth into a leading global city has happened largely because of its geography and a series of well-placed but disconnected initiatives. As one of the world’s 25 G leading global cities, it is a member of an elite group. It is now America’s sixth largest metro, with an economy the size of Singapore and Hong Kong. It is the hub of a mega-region of 15 million people, which is equivalent to one of the 20 largest economies in the world. It benefits from a large and diverse population and a broad innovative and creative economy that spans tech, media, entertainment, fashion, music, arts, tourism, hospitality, logistics, and transportation. Miami is a unique kind of global city. In contrast to New York or London, it is a truly post- industrial center, having developed without a major legacy of manufacturing and industrialization. That being said, the region suffers from deep divides and from challenges that come from its very success. Fortuity has brought Miami far, but the time has come for a proactive, forward- looking vision and strategy for a shared and more-sustainable prosperity as an innovative and creative global city and region. By outlining in broad strokes the region’s assets and strengths along with its many challenges, this report provides a first step in that direction. A key element across many of the dimensions we have examined – from entrepreneurship to talent retention to brain circulation – entails moving from quantity to quality. Greater Miami is attracting people and generating new businesses and startups at enviable clip; it is one of the nation’s leading college towns and doing quite well at retaining the young people it educates. What it needs to do now is scale the new businesses it is creating into world-class startups and to up its game at attracting and retaining the very best and brightest. To do so will take a new era of proactive regional cooperation not just between the city and its suburbs, not just between Miami-Dade, Broward, and Palm Beach Counties, but also across the South Florida mega-region as a whole. Greater Miami continues to grow, develop, and attract people – its best days are ahead. We look forward to continuing and deepening our research and to working with others across the business, civic, and academic communities to shape a constructive, future-oriented dialogue about how Greater Miami can improve its fortunes and enable all of its residents to more fully participate in and benefit from its ongoing growth and prosperity.

www.creativeclass.com - @creative_class 32 REFERENCES

1 Mark Rosenberg, “Geography Is Our Destiny,” Florida Trend, 26 Joshua Hempel, “Magic Leap Just Landed an Astounding 51 Roger Martin, Richard Florida, Melissa Pogue, and Charlotta 37:1, 1994. Amount of VC Money,” Wired Magazine, 2016. Mellander, “Creativity, Clusters and the Competitive Advantage of Cities,” Competitiveness Review, 5:25, 2015. 2 Miami International Airport, “Miami International Airport 27 Richard Florida and Karen King, “The Rise of the Global Passenger Brochure,” 2015. Startup City: Geography and Venture Capital Investment in 52 Zeynep Ton, The Good Jobs Strategy: How the Smartest Cities and Metros Across the Globe,” 2016. Companies Invest in Employees to Lower Costs and Boost 3 Alejandro Porters and Alex Stepick, City on the Edge: Profits, Amazon Publishing: New York, 2014. The Transformation of Miami, Los Angeles and Berkeley: 28 U.S. Chamber of Commerce, “Innovation that Matters,” 2016. University of California Press, 1993. 53 Richard Florida, “Paying Retail Workers Can Make a Huge 29 Jorge Guzman and Scott Stern, “The State of American Difference,” City Lab, 2012. 4 Richard Florida, “If U.S. Cities Were Countries, How Would Entrepreneurship: New Estimates of the Quantity and Quality They Rank,” The Atlantic, 2011. of Entrepreneurship for 15 US States, 1988-2014,” National 54 Zeynep Ton, “Why Good Jobs Are Good for Retailers,” Harvard Bureau of Economic Research Working Paper 22095, 2016. Business Review, 2012. 5 Richard Florida, Tim Gulden, and Charlotta Mellander, “The Rise of the Mega-Region,” Cambridge Journal of Regions, 30 Nancy Dahlberg, “Miami No. 2 for Startups – But Rides 2nd to 55 PR Newswire, “Greater Miami Convention & Tourism Bureau Economy and Society, 1:3, 2008. Last for Scale-Ups,” Miami Herald, 2016. Announces Record-Breaking Tourism Numbers and Unveils Destination Growth Plans,” 2015. 6 Richard Florida, “The Dozen Regional Powerhouses Driving the 31 Lydia DePhillis, “Miami Beach Mayor: Take Your Tech Startup U.S. Economy,” City Lab, 2014. Garbage, and Shove It,” The Washington Post, 2014. 56 Roger Martin, Richard Florida, Melissa Pogue, and Charlotta Mellander, “Creativity, Clusters and the Competitive 7 Janet Adamy and Paul Overberg, “Population Surge in Cities 32 Ibid. Advantage of Cities,” Competitiveness Review, 5:25, 2015. Ease as Jobs Shift and Suburbs Call,” The Wall Street Journal, 2016. 33 Richard Florida, “Startup Cities: The Urban Shift in Venture 57 Richard Florida, “America’s Leading College Towns,” City Lab, Capital and High Technology,” 2014. 2012. 8 Economist Intelligent Unit, “Best Cities Ranking and Report,” The Economist, 2015. 34 Richard Florida, “Interview with Fred Wilson,” 2013. 58 AnnaLee Saxenian, “Brian Circulation: How High-Skilled Immigration Makes Everyone Better Off,” 2002. 9 Miami International Airport, “Miami International Airport 35 Richard Florida, “Venture Capital Investment and Startup Passenger Brochure,” 2015. Activity in Greater Miami and the So-Flo Mega-Region,” 2014. 59 Yoree Koh, “Study: Immigrants Founded 51% of U.S. Billion Dollar Startups,” The Wall Street Journal, 2016. 10 Beacon Council, “Target Clusters: Aviation,” 2016. 36 Richard Florida, Charlotta Mellander, and Kevin Stolarick, “Inside the Black Box of Regional Development – Human 60 Richard Florida, Charlotta Mellander, and Kevin Stolarick, 11 Ibid. Capital, Creative Class and Tolerance,” Journal of Economic “Inside the Black Box of Regional Development – Human Geography, 8:5, 2008. 12 Richard Florida, Charlotta Mellander, and Thomas Holgersson, Capital, Creative Class and Tolerance,” Journal of Economic “Up in the Air: The Role of Airports for Regional Economic 37 Richard Florida, “Class-Divided: Miami Edition,” City Lab, Geography, 8:5, 2008. Development,” The Royal Institute of Technology Centre of 2013. 61 Marcus Noland and Howard Pack, “Islam, Globalization, and Excellence for Science and Innovation Studies Working Paper, Economic Performance in the Middle East,” International 267, 2012. 38 Beacon Council, “Target Clusters: Life Sciences and Healthcare,” 2016. Economics Policy Brief, PB04-4, 2004. 13 Miami Dade County, “PortMiami 2035 Master Plan Executive 39 Ibid. 62 Claudia Dreifus, “In Professor’s Model: Diversity = Summary,” 2012. Productivity,” The New York Times, 2008. 14 Ibid. 40 Beacon Council, “Target Clusters: Banking and Finance,” 2016. 63 Times Higher Education, “NYU President on Global 15 Beacon Council, “One Community: One Goal Strategic Plan Universities, ‘Idea Capitals’ and Talent Snowballs,” 2013. 41 Ibid. and Target Industries,” 2012. 64 Richard Florida, “Class-Divided: Miami Edition,” City Lab, 16 Beacon Council, “Target Clusters: Trade and Logistics,” 2016. 42 Jorge Guzman and Scott Stern, “The State of American 2013. Entrepreneurship: New Estimates of the Quantity and Quality 17 Beacon Council, “Target Clusters: Banking and Finance,” of Entrepreneurship for 15 US States, 1988-2014,” National 65 FIU Metropolitan Center, “Miami- 2016. Bureau of Economic Research Working Paper 22095, 2016. Dade County Prosperity Initiatives Feasibility Study,” 2016. 18 Beacon Council, “Target Clusters: Creative Design,” 2016. 43 Beacon Council, “One Community: One Goal Strategic Plan 66 Ibid. and Target Industries,” 2012. 19 Jan Nijamn, “Globalization to a Latin Beat,” The ANNALS of 67 Ibid. the American Academy of Political and Social Science, 551:1, 44 FIU News, “FIU’s planned state-of-the Art Engineering Building 68 Richard Florida, “Class-Divided: Miami Edition,” City Lab, 1997. Means More Engineers and Jobs for South Florida,” 2016. 2013. 20 City of Miami, “Miami 21,” 2005. 45 Beacon Council, “Target Clusters: Creative Design,” 2016. 69 Richard Florida, The New Urban Crisis, New York: Perseus 21 Economic Innovation Group, “The New Map of Economic 46 Ricardo Mor, “The Arts Bring in Big Bucks,” Miami Herald, Books Group, Forthcoming. Growth and Recovery,” 2016. 2015. 70 Texas A&M Transportation Institute, “Urban Mobility 22 Ibid. 47 Beacon Council, “Target Clusters: Creative Design,” 2016. Scorecard,” 2015. 23 Milken Institute, “Best-Performing Cities,” 2015. 48 Nancy Dahlberg, “Greater Miami Chamber Summit: Economic 71 Kyle Munzenreider, “Miami-Dade Adopts Plan to Build Six New Outlook Positive, Cautious,” Miami Herald, 2016. Mass-Transit Rail Lanes,” Miami New Times, 2015. 24 Ibid. 49 Beacon Council, “One Community: One Goal Strategic Plan 25 Martin Prosperity Institute, “Venture Capital Investment and Target Industries,” 2012. and Startup Activity in Greater Miami and the So-Flo Mega- Region,” 2014. 50 Ibid.

www.creativeclass.com - @creative_class 33 Creative Class Group www.creativeclass.com @Creative_Class

Rana Florida CEO Creative Class Group [email protected]

Steven Pedigo Director of Research Creative Class Group [email protected] MIAMI’S GREAT INFLECTION: TOWARD SHARED PROSPERITY AS A CREATIVE AND INCLUSIVE GLOBAL CITY

FIU-Miami Creative City Initiative THE AUTHORS

RICHARD FLORIDA MIAMI’S GREAT INFLECTION: Richard Florida is the world’s leading urbanist. He is a researcher and professor, serving as the Director of the Martin Prosperity Institute at the University of Toronto’s Rotman School of Management, Global Research Professor at New TOWARD SHARED PROSPERITY AS A CREATIVE York University and a Visiting Fellow at Florida International University. He is a writer and journalist, having penned several global best sellers, including the AND INCLUSIVE GLOBAL CITY award winning The Rise of the Creative Class and serving as senior editor for The FIU-Miami Creative City Initiative 2016 Atlantic, where he co-founded and serves as Editor-at-Large for CityLab. And he is an entrepreneur, as founder of the Creative Class Group which works closely with governments and companies worldwide. A 2013 MIT study named him the world’s most influential thought leader. And TIME magazine recognized his Twitter feed as one of the 140 most influential in the world. He previously taught at Carnegie Mellon, Ohio State University, and George Mason University, and has been a Visiting Professor at Harvard and MIT and Visiting Fellow at the Brookings Institution. He earned his bachelor’s degree from Rutgers The Creative Class Group, founded by world College and his Ph.D. from Columbia University. renowned urbanist Richard Florida, is a global advisory firm composed of expert researchers, academics, and business strategists. Our STEVEN PEDIGO proprietary data and research, gives Steven Pedigo is the Director of Cities and Research for the Creative Class Group, a global think tank comprised of leading researchers, academics and strategists. As companies and regions leading insights to a consultant in the urban space, Steven advised an array of clients: BMW, Converse, achieve growth and prosperity. Starwood, IBM, Philips, Cirque du Soleil, Audi, Pinewood Studios, Zappos, and Kraft. A selection his city clients represents communities from across the globe: Jerusalem, Vancouver, Washington, D.C., San Diego, Portland, the Yukon, Noosa, and Sao Paulo. In addition to his role at CCG, Steven is Director of the NYU School of Professional Studies Initiative for Creativity and Innovation in Cities and a Clinical Assistant Professor for Economic Development at the NYU Schack Institute of Real Estate. In this role, he is leading the effort to develop and deliver the School’s urban development curriculum and research program. Steven holds a bachelor’s degree from the University of Texas at Austin and graduate degrees from the H. John Heinz III School for Public Policy and Management at Carnegie Mellon University and the University of Illinois at Urbana-Champaign.

www.creativeclass.com - @creative_class 36 www.creativeclass.com - @creative_class 37 “Graffiti” by

Juan Cristobal Zulueta

is licensed under

CC BY 2.0 . No changes were made to the original file.

EXECUTIVE SUMMARY

reater Miami has reached a crossroads. Its economy – historically based on tourism, hospitality, transportation, and real estate development – has Gdeepened, diversified, and become more creative and idea-based, as banking, media, arts, education, and new technology-based industries have come to play a larger role in its mix. The region now finds itself at a critical inflection point. With generous support from Florida International University (FIU), the Creative Class Group (CCG) has undertaken a multi-year study of Greater Miami’s ascent as a global, creative city. The study is organized around a detailed, data-driven analysis of its economy and talent base, alongside focus groups with its business leaders and other key stakeholders. This report – the first output of the FIU- Miami Creative City Initiative – enumerates the Greater Miami region’s substantial assets and strengths but also addresses the significant challenges facing the region as a global city in the 21st century.

www.creativeclass.com - @creative_class 38 EXECUTIVE SUMMARY // CONTINUED

As spectacular as Greater Miami’s growth and neighborhoods, enabling the region to benefit from a development have been, it is time for a new narrative movement of entrepreneurship and innovation away and strategic vision for the region’s future. In an effort from long-held suburban locations toward urban to spur the conversation and strategic thinking required centers. to do so, this report outlines 10 key areas for focus, opportunity, and action: • Build a Fully Creative Economy. Greater Miami’s economic future lies in the full breadth of its creative • Take Even Greater Advantage of the Region’s Size economy, which spans arts, culture, fashion, media, and Scale. With nearly six million residents and an entertainment, music, and food, as well as science economic output of more than $300 billion, Greater and technology, health and education, logistics and Miami is one of the largest economic regions in the management, and business and finance. In fact, three U.S. and the world, comparable to Singapore and Hong key talent sectors – science and technology, business Kong. Furthermore, Miami is the hub of the Southern and finance, and arts, culture, design, and media – Florida or So-Flo mega-region, extending to Tampa and power economic growth and lead to higher incomes Orlando, which houses 15 million people and produces and living standards. It’s time for the region to harness more than $750 billion in economic output, roughly its full creative capabilities for long-run sustained the same as the Netherlands, making it one of the 20 growth. largest national economies in the world. Miami needs a new approach to regionalism, which builds upon this • Upgrade the Region’s Service, Hospitality, and Tourism considerable size and scale. Sector. Hospitality and tourism remain key drivers of Miami’s economy and deliver a strong competitive • Leverage the Region’s Role as a Globalization Hub. advantage. Indeed, roughly half of the region’s jobs, 1.3 Endowed with a coastal location at the southern tip of million of them, are in the service sector. By upgrading the eastern seaboard oriented toward Latin America these low-pay, low-skill jobs into family-supporting and the Caribbean, Miami is now one of the 25 most occupations and careers, the region can bolster its important global cities. With its international airport middle-class while increasing the productivity and and port, Miami is the economic and financial hub of competitiveness of its hospitality, tourism, and service Latin America and increasingly a gateway to Europe sector across the board. MIT research finds that and the world. With a proactive strategy, Miami can upgrading retail and hospitality jobs – involving and better leverage infrastructure investments and anchor engaging workers more fully and paying them more – institutions to utilize this competitive advantage. results in greater productivity and profits, creating a • Broaden and Deepen the Region’s Growing Startup win-win strategy for workers, companies, and regions. Ecosystem. With approximately $300 million in venture capital investment in its startup companies in 2015, Greater Miami’s entrepreneurial ecosystem ranks 16th among U.S. cities and metros. The broader So-Flo mega-region took in nearly $600 million in venture capital investment, roughly comparable to Greater Chicago, Austin, and Toronto. This investment is concentrated in and around the region’s urban

www.creativeclass.com - @creative_class 39 EXECUTIVE SUMMARY // CONTINUED

• Capitalize on Brain Circulation. The conventional • Engage All of Miami in Inclusive Prosperity. Miami wisdom is that Greater Miami faces a brain drain of suffers from the same type of the socio-economic its top young talent, but that is the case with virtually divides that vex other large, successful global cities and every large metro whose talented young people head metro areas. The middle class has dwindled, and the gap out for college or to pursue their careers. Greater between rich and poor has grown. Greater Miami suffers Miami also benefits from an enormous inflow of talent from a low rate of economic mobility, which limits the from across the nation and the world in the form of ability of its residents to move up the economic ladder students and immigrants. For every brain that drains and achieve the American Dream. By building a more away, others are gained. The key is to capitalize on inclusive community, the region can improve the life Miami’s role as a hub in the process of brain circulation prospects of its people and tap into the talents of all from around the world. of its residents as a source of shared prosperity and economic growth. • Promote the Region’s Tolerance and Diversity Strengths. Greater Miami is among the most tolerant • Address the Region’s Growing Crisis of Success. communities in the world. Diversity and tolerance Greater Miami has come to a tipping point in its growth. are more than social virtues: they are economic As metro regions hit five or six million people, they drivers. Leading tech hubs combine high levels of become congested, and their old growth models based tolerance, which enables them to attract talent from on sprawl and car dependence start to break down. across all demographic groups – women, ethnic and The region faces high levels of congestion and gridlock, racial minorities, immigrants, and the gay and lesbian which wastes productivity and slows the movement of community – with technology prowess to generate their people, goods, and ideas that is so critical for innovation innovative and entrepreneurial edges. Greater Miami and economic growth. The region is investing in transit can utilize its open, diverse, and tolerant environment and faster rail service as All Aboard Florida comes on to bolster its ability to attract talent and further build stream. It is time to more fully embrace a new growth its innovative and creative economy. model for the future, one that is less dependent on cars and sprawl and instead revolves around rail, transit, and • Use Quality of Place as an Economic Driver. With density. its warm climate, abundant sunshine, spectacular coastline, world-class arts and cultural infrastructure, and the amenities of a large, global city, Greater Miami has a significantquality of place advantage that is critical in attracting and retaining talent. It also benefits from housing prices which, while still high, especially for less-advantaged groups, are considerably more affordable than superstar cities and tech hubs like New York, San Francisco, and Los Angeles. The region’s quality of place is a considerable competitive asset that can and should be leveraged for greater economic gain.

www.creativeclass.com - @creative_class 40 Creative Class Group www.creativeclass.com @Creative_Class

Rana Florida CEO Creative Class Group [email protected]

Steven Pedigo Director of Research Creative Class Group [email protected]

FISCAL YEAR 2016-17 STATEWIDE ADVERTISING PLAN SUMMARY

In Fiscal Year 2016-17, CareerSource Florida statewide advertising will reach new audiences, diversify placements, continue its focus on digital platforms and strengthen its commitment to measurement.

Total Investment: $500,000

New Audiences: While continuing its emphasis on informing Florida businesses of the recruiting, hiring and training services provided by the CareerSource Florida network, CareerSource Florida also will launch new advertising to raise awareness of career services available to job seekers.

Diversification of Placements: In recent years, CareerSource Florida focused placements, both digital and traditional, on business- and employer-specific outlets, such as LinkedIn, Facebook, HR Review and Florida Trend. While many of these previous placements are still carried forward in this year’s plan, CareerSource Florida is adding digital display advertising targeting audience behaviors, as well as content marketing placements and mobile app advertising.

Digital Focus: This fiscal year, the focus on digital placements will continue and enhance as advertising performance is measured effectively using digital measurement tools including UTM codes, pixels and Google Analytics. Digital placements compose more than 60 percent of the total statewide advertising budget.

Creative Design: This year, two new sub brands will enter the market: FloridaFlex as an expanded brand encompassing the CareerSource Florida network business services, and Employ Florida as the brand representing career services provided by the CareerSource Florida network.

Additional advertising for job seekers will be created once market research results are Discover your BIGGEST analyzed. ADVANTAGE as a Florida business

CareerSource Florida, has helped Florida companies of all sizes sizes grow over the past two decades by:

LOCATING SPECIALIZED TALENT: Our experienced recruiting team is ready to support businesses of all sizes.

HIRING NEW EMPLOYEES: Specialists are available to provide interviewing/processing support, funding and even physical resources like interviewing space.

STRENGTHENING CURRENT SKILLS: Our matching grants cover both your training and related equipment.

THE #1 BENEFIT OF FLORIDAFLEX IS FLEXIBILITY Your team stays in full control of how you recruit, hire and train. FloridaFlex simply provides the hours, funding and physical resources you need to succeed.

Discover how FloridaFlex can help your business. EMAIL bizservices@careersourcefl orida.com VISIT careersourcefl orida.com GOALS DIGITAL

Overall Digital advertising will focus on reaching both target • To increase knowledge and use of the audiences: employers and job seekers. Through CareerSource Florida network through geographic, demographic and behavioral targeting, strategic advertising placements, copy and CareerSource Florida will be able to target each design, and strong call-to-actions for Florida audience, and their subgroups (if applicable), with businesses and job seekers. separate creative designs and messaging. • To increase brand affinity (positive perception Outlined below are the digital placements for FY of the brand and its services to businesses 2016-17. These placements and their associated and job seekers, from entry to senior level) budgets are meant to be fluid and will be adjusted among Florida businesses and job seekers. based on performance or a shift in goals or target • To reach specific subgroups as outlined by the audience. Workforce Innovation and Opportunity Act. • Florida Trend • To support the CareerSource Florida corporate • Google AdWords (Search and Display) goal: To increase the prosperity of workers and employers; reduce welfare dependency; • Social Media increase economic self-sufficiency; meet o LinkedIn employer needs; and enhance productivity o Facebook and competitiveness. • Content Marketing Employers • Programmatic (targeting audience behaviors) • Achieve more than 36 million impressions o Rocketfuel among HR professionals, small business o DoubleClick owners, C-Suite executives and decision makers. • Video

• Achieve more than 150,000 visits to business TRADITIONAL services-focused landing pages from HR professionals, small business owners, C-Suite Using a combination of traditional and digital executives and decision makers. marketing techniques is the most effective method • Achieve more than 50,000 visits to blog of marketing, providing for comprehensive reach pages from HR professionals, small business over multiple audiences. owners, C-Suite executives, and workforce and economic leaders. The traditional advertising portion of CareerSource Florida’s 2016-17 plan will strategically focus Job Seekers on reaching business decision makers, small • Achieve more than 20 million impressions business owners, site selectors and human among professional job seekers as well as resource professionals. The mediums for traditional specific subgroups. advertising are: • Achieve more than 86,000 clicks to career • Print placements services-specific landing page(s) from o Florida Trend professional job seekers, as well as specific o HR Review subgroups. o Site Selection • Achieve more than 7,000 Employ Florida Mobile app downloads. o Business Facilities o Forbes o Fortune o Money o Entrepreneur o Trade & Industry Development • Florida Public Radio CAREERSOURCE FLORIDA ANALYTICS REPORT SEPTEMBER 2016

WEBSITE

unique visitors on of the people average since the visiting the website 26,591 launch of the new site 71.5% are new visitors

• Total website visits increased by 7.15% from • Pageviews have remained fairly consistent from July (21,405 visits) to August (22,936 visits) July to August, varying from 4 to 5 pages per visit • Most new people are arriving to • In August, 6,300 new website visitors the site from non-paid searches were on their mobile device when (demonstrating successful search visiting the website engine optimization)

SOCIAL MEDIA

FACEBOOK Total Total 11,087 likes 33,443 impressions

• Likes increased by 34 from • The most impressions were • More impressions were made July to August among people 35 – 54 among females than males years of age

TWITTER Total Total 5,941 followers 69,200 impressions

• Followers increased by 50 • Tweeted on average almost • Most retweets were by from July to August 3 times per day people with 2,000 followers or more

LINKEDIN Total Total 3,242 followers 80,594 impressions

• Followers increased by 83 • 2,400 total likes, comments people from July to August and shares

Impressions are defined as the number of people reached, multiplied by the number of times they saw the content.