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A Competitive Advantage Assessment and Strategy for Nebraska

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A Competitive Advantage Assessment and Strategy for Nebraska Growing Jobs, Industries, and Talent: A Competitive Advantage Assessment and Strategy for Nebraska Prepared for: Nebraska Department of Economic Development and Nebraska Department of Labor Prepared by: Battelle Technology Partnership Practice October 2010 Battelle does not engage in research for advertising, sales promotion, or endorsement of our clients’ interests including raising investment capital or recommending investments decisions, or other publicity purposes, or for any use in litigation. Battelle endeavors at all times to produce work of the highest quality, consistent with our contract commitments. However, because of the research and/or experimental nature of this work the client undertakes the sole responsibility for the consequence of any use or misuse of, or inability to use, any information, apparatus, process or result obtained from Battelle, and Battelle, its employees, officers, or Trustees have no legal liability for the accuracy, adequacy, or efficacy thereof. Contents Section 1: Introduction ................................................................................................................................. 1 Section 2: Industry Perspectives on Gaps and Challenges to Growing Nebraska’s Economy ...................... 3 2.1 Industry Perspectives on Nebraska’s Economic Environment ............................................................ 4 Section 3: Assessment of Nebraska’s Development Building Blocks – Industry Drivers, Innovation, and Talent Generation .................................................................................................................................. 8 3.1 Assessment of Nebraska’s Primary Industry Clusters ......................................................................... 8 3.2 Assessment of Innovation and Core Competency Drivers in Nebraska ............................................ 18 3.3 Assessment of Talent and Workforce Development ........................................................................ 28 3.4 Advancing Cluster Development in Nebraska ................................................................................... 35 Section 4: Strategic Needs Assessment and Implications for Nebraska’s Ongoing Economic Development Efforts ................................................................................................................................... 40 4.1 Strategic Needs Assessment ............................................................................................................. 40 4.2 Overview of Nebraska’s Ongoing Economic Development Efforts ................................................... 42 4.3 Assessing the Alignment of Ongoing Economic Development Programs with Specific Economic Development Gaps ................................................................................................................. 44 Section 5: Strategies and Actions ................................................................................................................ 46 5.1 Nebraska’s Overall Economic Development Position ....................................................................... 46 5.2 Strategic Vision for Advancing Nebraska’s Economic Development Efforts .................................... 49 5.3 Action Plan for Nebraska’s Competitive Growth Initiatives ............................................................. 49 5.4 Sources of Funding ............................................................................................................................ 86 Appendix A .................................................................................................................................................. 88 Listing of Advisory Committee Members and Focus Group Participants ............................................... 88 Advisory Committee Members ............................................................................................................... 88 Focus Group Participants ........................................................................................................................ 89 Appendix B .................................................................................................................................................. 91 Detailed Industries Comprising Primary Industry Clusters ..................................................................... 91 Appendix C .................................................................................................................................................. 98 Detailed Profiles of Nebraska’s Economic Base Industry Clusters .......................................................... 98 Growing Jobs, Industries, and Talent: A Competitive Advantage Assessment and Strategy for Nebraska Section 1: Introduction Nebraska has weathered the recession much stronger than other states, and has an opportunity to build on that momentum going forward. As of July 2010, Nebraska’s unemployment rate stood at 4.7 percent compared to the national average of 9.5 percent. More importantly, as Governor Heineman explained in his 2010 State of the State Address: “During this national economic slowdown, we have seized the opportunity to make Nebraska more competitive. Many states have raised income or sales taxes—Nebraska has not. Many states spent beyond their means—Nebraska did not. We controlled our spending. Because of the tough choices we have made, Nebraska is receiving national attention. According to Forbes, Nebraska is one of the Top 10 “Best States for Business.” Business Week rated Nebraska as one of the Top 10 states “Where Struggling Americans Can Find a Fresh Start.” Mainstreet.com ranked Nebraska as the number one state for financial prosperity in their “Happiness Index.” CNN Money just published a ranking of the Top 10 “Best Places to Live” in America for jobs. Three of the Top 8 places for jobs in America are in one state— Nebraska. They are Platte County, Sarpy County and Madison County. Nebraska is on the move in typical Nebraska fashion—making deliberate, disciplined, steady, and responsible progress.” Looking toward the next national and global business growth cycle, Nebraska is well‐positioned to further advance at a time when most other states must dig out from serious job losses and deep fiscal problems. So there is no better time to take stock of Nebraska’s competitive economic position and continue to focus on fine‐tuning the state’s economic development efforts. This study of Nebraska’s competitive advantages is designed to help the state assess its economic building blocks and, in typical Nebraska style, address both gaps holding Nebraska back and specific opportunities for growth with pragmatic, fiscally prudent choices and strategies. The focus of this study must meet a new higher standard—addressing the terms of competition in today’s global knowledge‐based economy. What differentiates the 21st century from the past is that The U.S. Council on Competitiveness, in its international competitors are now competing on the report, Innovate America, puts the issue basis of technological innovation and talent—and confronting Nebraska and the entire nation not simply on the basis of lower costs of production succinctly: “We believe that the bar for innovation is rising. And, simply running in for low‐end sectors of the economy. place will not be enough to sustain America’s leadership in the 21st century…Today the This rising global competition in the knowledge‐ forces of global economic integration and based economy calls for Nebraska to be more advances in technology are creating a strategic and comprehensive in its economic different and more complex challenge.” development approaches. Nebraska must recognize that, while the global knowledge‐based economy offers a wide breadth of opportunities, not all states 1 Growing Jobs, Industries, and Talent: A Competitive Advantage Assessment and Strategy for Nebraska are built alike. It is critical, therefore, to understand one’s own strengths to define specific areas of focus. The idea of driving economic growth through strategic areas of focus is not new, and Nebraska has turned to targeted industry assessment in the past. But what is different for the 21st century is the terms of international competition require Nebraska to give more focus in advancing its economic development efforts on the building blocks of: Technology‐based innovation to differentiate its leading industry drivers High‐skilled talent to provide the know‐how and rising levels of productivity and creativity to be globally competitive. This assessment of Nebraska’s competitive advantage therefore focuses on three highly inter‐related building blocks: The underlying performance of specific industry clusters in Nebraska, based on employment trends, economic output, and geographic patterns of development. This analysis also considers expected national growth rates and identifies niche industry specializations that can inform targeted industry development for the state’s economic development efforts. The position of Nebraska in innovation and high growth potential entrepreneurial development in the state, and how Nebraska is positioned in core competencies for future growth. The talent position of Nebraska overall and within its leading industry clusters, and how to establish more concrete strategies and linkages of talent within the state’s overall economic development efforts. The assessments inform how best to recalibrate existing economic development efforts that support
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