Scaleup Sacramento: an Economic Action Agenda
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January 2021 An Inclusive Economic Action Agenda OUR GOAL To make Sacramento a prosperous place to live, work and play by preparing our region for sustainable, inclusive growth in the “Next Economy,” a dynamic, knowledge-based global economy that thrives on innovation, productivity, and building on its existing assets. 2 Table of Contents Preamble ....................................................................................................... 5 Overview ........................................................................................................ 7 I. Economic Framing ................................................................................ 14 The Next Economy .........................................................................................................14 A New Approach to Economic Growth ...........................................................................15 Inclusive Growth ............................................................................................................17 Key Drivers of Growth....................................................................................................18 II. Market Analysis ..................................................................................... 22 History and Overall Economic Performance ...................................................................22 Economic History ......................................................................................................................................22 State of the Regional Economy ..................................................................................................................23 Clusters .........................................................................................................................26 Approach ..................................................................................................................................................26 Life Sciences ..............................................................................................................................................28 Clean Economy .........................................................................................................................................37 Future Mobility .........................................................................................................................................45 Agriculture and Food and Beverage Manufacturing ...................................................................................55 Headquarters and Business Services ..........................................................................................................61 Other Cluster Opportunities .......................................................................................................................63 Human Capital/Labor Market ........................................................................................67 Supply: Educational Levels .........................................................................................................................68 Supply: Occupations ..................................................................................................................................69 Labor Demand ..........................................................................................................................................72 Labor Market/Workforce Programs ...........................................................................................................74 Assessment: Sacramento’s Opportunities ...................................................................................................79 Innovation and Entrepreneurship ..................................................................................81 Commercialization ....................................................................................................................................82 Entrepreneurship: From Start-up to Scale-up ..............................................................................................84 Firm and Cluster Based Innovation.............................................................................................................95 Assessment: Sacramento’s Opportunities ...................................................................................................95 Spatial Efficiency ............................................................................................................97 Overview ..................................................................................................................................................97 Market Observations.................................................................................................................................97 Assessment: Sacramento’s Opportunities ................................................................................................. 103 Governance ................................................................................................................. 105 Linking to Neighborhood Development ....................................................................... 108 III. Transformative Strategies .................................................................... 110 Vision .......................................................................................................................... 110 3 Aligned Strategies for Sacramento’s Growth................................................................ 111 IV. Potential Initiatives .............................................................................. 115 Food Manufacturing Innovation Park........................................................................... 116 Bioscience Manufacturing Park .................................................................................... 118 Life Sciences Cluster Collaborative ............................................................................... 121 Building on the California Mobility Center ................................................................... 123 Employer-Led, Inclusive Labor Market System ............................................................. 126 ScaleUP Services .......................................................................................................... 130 Diversity Management & Ownership Services ............................................................. 134 Corporate Leadership Alliance ..................................................................................... 136 Mission-Oriented “Master Developer” ........................................................................ 139 Potential Initiatives: Conclusion ................................................................................... 141 Conclusion ..................................................................................................143 Acknowledgements ................................................................................... 144 4 Preamble This is a long, ambitious document. Yet it still leaves much unsaid. It aims to support a critical goal: For Sacramento’s transition to the next economy to result in an inclusive, prosperous, vital place to work, live and play. That means every person – regardless of race, gender or creed – participates in, drives and prospers from Sacramento's economic growth. It means every community is similarly connected to the region's prosperity, providing amenities, opportunity and choice for its residents. Achieving this requires addressing fundamental inequities that have prevented particular people and places from even getting to the starting line. It requires addressing structural and institutional racism. It requires providing exceptional public goods – from schools to transportation to parks and arts. This document does not directly address many of these challenges. Rather, this is an inclusive economic development Action Agenda. It addresses one, but only one, of the most fundamental subjects to realizing these goals – the economics. You must get the economics right in order to have jobs for the people receiving job training; business opportunities to create wealth for entrepreneurs; and income and wealth to support home ownership, demand for retail and other amenities, and personal stakes in communities. Because this Action Agenda is fundamentally focused on economic growth, much of it is quite dry: facts and figures, market analysis, discussion of specialized technologies and industries. It can be hard to see the people, businesses and places in the technical discussion. But they are there: their prosperity is the ends, as this Action Agenda addresses a critical part of the means, which is the economics. For example, it may seem abstract or distant from immediate concerns to focus on how co-packing facilities and other technical supports can grow food manufacturing. Yet this analysis reveals opportunities in an industry that lends itself to inclusion – in employment, ownership and location. ScaleUP Sacramento’s strategies and initiatives – the food innovation park, the diversifying ownership scale-up fund, the “master developer” to target new industrial development near disadvantaged people and communities – are all aimed at making sure the economics succeeds, and succeed for all of Sacramento. In other words, the goal of inclusion for all people, businesses and places is deeply embedded throughout. It is neither a separate nor an after-the-fact consideration.