Regional Economic Strategy for the Central Puget Sound Region — SUMMARY
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Regional Economic Strategy for the Central Puget Sound Region — SUMMARY 1 LEADERSHIP PROSPERITY PARTNERSHIP CO-CHAIRS Mark Emmert, President, University of Washington John Ladenburg, Pierce County Executive Tomio Moriguchi, Chairman and Chief Executive, Uwajimaya Alan Mulally, President, Boeing Commercial Airplane Company Brad Smith, Senior Vice President, Microsoft Corporation Rita Ryder, President, YWCA, Strategic Initiatives Rick Bender, President, Washington State Labor Council, AFL-CIO PROJECT MANAGEMENT TEAM Betty Nokes, Bellevue Chamber of Commerce Puget Sound Regional Council Bruce Kendall, Economic Development Board for Tacoma-Pierce County John Powers, enterpriseSeattle PSRC Robbie Rohr, Executive Alliance David Porter, Kitsap Economic Development Council Regional Economic Strategy for the Central Puget Sound Region, Summary Bill McSherry, Puget Sound Regional Council October 2005 Deborah Knutson, Snohomish County Economic Development Council Funding for this report provided in part by member jurisdictions, grants Rin Causey, Snohomish County Workforce Development Council from the Economic Development Administration, the U.S. Department of Trans- Lee Cheatham, Washington Technology Center portation, Federal Transit Administration, Federal Highway Administration and CLUSTER CO-CHAIRS Washington State Department of Transportation. AEROSPACE — Additional copies of this report may be obtained by contacting: Rosemary Brester, President, Hobart Machined Products John Quinlivan, VP and General Manager of 747, 767, 777 and 787, Boeing (retired Mar 2005) Puget Sound Regional Council • Information Center CLEAN TECHNOLOGY — 1011 Western Avenue, Suite 500 Denis Hayes, President & CEO, Bullitt Foundation 2 Kathy Lombardo, NW Regional Manager and Sr. Vice President, CH2M Hill Seattle, Washington 98104-1035 Garry Struthers, President, Garry Struthers & Associates 206-464-7532 • FAX 206-587-4825 • [email protected] INFORMATION TECHNOLOGY — Sign language and communication material in alternative formats, can Ed Lazowska, Bill & Melinda Gates Chair in Computer Science & Engineering, UW be arranged given sufficient notice by calling 206-464-7090. TDD\TTY: Jim Nall, President & CEO, Paladin Data 206-464-5409. LIFE SCIENCES — Karen Hedine, President & CEO, Micronics Inc. PSRC fully complies with Title VI of the Civil Rights Act of 1964 Lee Huntsman, President Emeritus, University of Washington and related statutes and regulations in all programs and activities. For more LOGISTICS AND INTERNATIONAL TRADE — information, or to obtain a Title VI Complaint Form, see http://www.psrc.org/ M.R. Dinsmore, CEO, Port of Seattle about/titlevi/index.htm or call 206-587-4819. Tim Farrell, Executive Director, Port of Tacoma Bill Stafford, President, Trade Development Alliance of Greater Seattle Cover photograph by William Wright. Andreas Udbye, Executive Director, World Trade Center Tacoma Dear Colleague: For more than a century, the New economic centers are rapidly emerging throughout the world as Puget Sound region has grown and leaders recognize these dynamics and take the initiatives needed to adapt to John Ladenburg 3 Pierce County Executive prospered. Our region has emerged them. In addition to education, leaders in the newly successful regions are also President, Puget Sound Regional Council in recent decades as a leading center investing in the infrastructure needed to support their economies and making of trade, high-tech industries and their governments more business friendly. commerce. Talented and energetic Consider some dramatic recent examples: people have flocked here for oppor- • Over the past 15 years, one of the smallest countries in Europe—Ireland tunities to work and live in a place —has emerged as a world technology powerhouse. The country’s gross of stunning natural beauty and cul- domestic product has nearly doubled. Now Ireland’s leaders are building tural abundance. But our prosperity on the success—investing more in education with an emphasis on science. in an increasingly connected global One example is the creation of Science Foundation Ireland, which will economy is not assured—in fact, it build new universities and research centers to train the people needed to has never been more tenuous. keep and attract technology companies. Bob Drewel The reason is fundamental: The • In China, Shanghai’s transformation is breathtaking. Visitors see a new Executive Director key factor in the global economy is Puget Sound Regional Council airport, a maglev train to downtown, 14 new commuter rail lines, and no longer simply natural resources universities producing tens of thousands of engineering students. Approxi- or political boundaries; it’s also the mately 1,500 high-rise buildings have been constructed since 1975. supply of smart and diverse people. • India has announced plans to leverage its information technology success The ability to attract people is a into biotechnology. The government’s Department of Biotechnology aims dynamic and sensitive process. New to create and support at least ten biotech parks with incubator units by centers of the global creative economy 2010. “India wants to be as successful in life sciences as it has been in can emerge quickly; established play- software and information technology,” says the Financial Times. ers can lose position just as easily. Worldwide competition is not Hundreds of people from every sector of the economy and community focused on countries, but on large have contributed to this strategy. They’ve identified both short term and long metropolitan areas that function term actions that are needed in dozens of different areas. as single economic units. Com- Education, transportation and taxes, not surprisingly, emerged as the three panies don’t just choose between critical themes affecting our region’s future prosperity. Improvements in educa- the United States and England, or tion and transportation, and changes in the tax structure, cut across all seg- Sweden and Canada. They think of ments of the economy. We have to address those issues for the other initiatives Silicon Valley versus Mumbai, or to be successful. The challenge is to develop consensus on the solution. Our Vancouver versus Stockholm. aim is to develop consensus on a major transportation improvement package in Metropolitan regions have 2006, followed by higher education and tax reform measures in 2007. emerged as the basis for global com- The Prosperity Partnership is the vehicle to move the central Puget Sound petition. Around the world, regions region in this direction. The vision of a unified economic agenda for the Puget are pooling their public and private Sound region, set in motion less than a year ago, has come to fruition. Now talent and resources to pursue eco- 4 the real work of moving our economy forward begins. nomic goals. The central Puget With the willpower to make the necessary changes and investments, and Sound region is well positioned your help, we will succeed. to do the same. We have the Sincerely, building blocks to create a strong, globally oriented and sustainable eco- nomic agenda that contributes to regional prosperity while sustaining the resources and the quality of life The Honorable John Ladenburg Bob Drewel Pierce County Executive Executive Director on which our regional identity and President, Puget Sound Regional Council Puget Sound Regional Council reputation depend. The Prosperity Partnership A Regional Economic Strategy for Puget Sound An extraordinary economic development effort is underway in the central 1 Puget Sound region. Hundreds of government, business, labor and nonprofit leaders in King, Kitsap, Pierce, and Snohomish counties have organized a coalition called Prosperity Partnership. The coalition created Prosperity Partnership because economic conditions in the region, combined with dramatic changes in the global economy, create a critical need for a regional strategy and action. To address this need, coalition members are working together toward Microsoft is trying to hire every great college graduate a common goal: long term economic prosperity for the who has basic computer-science skills and [who we entire region. Prosperity Partnership envisions a region think is] highly talented…I’m certainly very worried where residents have good jobs and earn family-wage about [the shortage]…It really is gating the speed at incomes, where globally competitive businesses thrive, which we do things.” where diversity is embraced because it is good for busi- ness; a region with vibrant, connected communities and — Bill Gates III, quoted in Seattle Times, 7/19/05 a high quality of life built upon our outstanding natural environment and cultural dynamism. A Regional Economy with Promise—and Challenges Many of the building blocks for regional prosperity are in place. Mature industries stand beside new and emerging enterprises. The area Sea-Tac International Airport boasts a number of industry clusters—concentrated sets of competing and complementary enterprises. Clusters—concen- U.S. region. Parts of the region’s eco- trations of industries that export goods and services nomic foundation—such as workforce and import wealth into the region—drive the econ- education, physical infrastructure, and omy. The region also has many good schools, strong and diverse communities, business climate—served us well in the and a beautiful natural environment. past but must adapt to a new economic But there are ominous signs as well. The concentration of employment in environment. most of the region’s