MMaarriinn CCoouunnttyy TTaarrggeetteedd IInndduussttrriieess SSttuuddyy FINAL REPORT January 6, 2004 Prepared for: The Marin Economic Commission & The Community Development Agency Prepared by: Economic Competitiveness Group, Inc. Table of Contents EXECUTIVE SUMMARY.................................................................................................................................................................... 1 I. INTRODUCTION............................................................................................................................................................................... 8 II. METHODOLOGY............................................................................................................................................................................ 9 DEVELOP CRITERIA ............................................................................................................................................................................... 9 CONDUCT RESEARCH USING PRIMARY & SECONDARY DATA SOURCES ............................................................................................. 12 IDENTIFY LINKAGES BETWEEN CLUSTERS ........................................................................................................................................... 13 IDENTIFY TARGET INDUSTRIES............................................................................................................................................................ 14 III. ECONOMIC BASE ANALYSIS.................................................................................................................................................. 15 HOUSING ............................................................................................................................................................................................. 16 OCCUPATION AND COMMUTE PATTERNS............................................................................................................................................. 16 AVAILABILITY OF COMMERCIAL REAL ESTATE................................................................................................................................... 21 TWO POSSIBLE RESPONSES.................................................................................................................................................................. 22 FRAMING THE QUESTION..................................................................................................................................................................... 24 IV. REVIEW OF ATTRIBUTES........................................................................................................................................................ 25 MARIN COMPANIES ARE HIGHLY PRODUCTIVE ................................................................................................................................... 25 MARIN COUNTY IS A CENTER OF CREATIVITY..................................................................................................................................... 27 MARIN CONTINUES TO BE A CENTER OF INNOVATION .......................................................................................................................... 30 THE IDEA PLACE: THE GEORGE LUCAS STORY................................................................................................................................... 30 INNOVATION CENTER OF EXCELLENCE: THE TOMALES BAY FOODS STORY....................................................................................... 31 A CROSS-POLLINATION OF IDEAS: THE MOUNTAIN BIKE STORY....................................................................................................... 32 SMALL, FLEXIBLE AND HOME-BASED FIRMS CAN BE INNOVATIVE..................................................................................................... 33 MARIN’S ECONOMY OPERATES AT THE HIGH ENDS OF THE PRODUCTION CYCLE ............................................................................... 35 LIFESTYLE MATTERS IN THE CREATIVE ECONOMY ............................................................................................................................. 36 i V. IDENTIFYING MARIN’S EXISTING CLUSTERS................................................................................................................... 37 REAL ESTATE & CONSTRUCTION (THE BUILT ENVIRONMENT) ........................................................................................................... 44 MULTIMEDIA ....................................................................................................................................................................................... 45 BUSINESS SERVICES ............................................................................................................................................................................ 47 FINANCE AND INSURANCE ................................................................................................................................................................... 47 RESTAURANTS & TOURISM ................................................................................................................................................................. 49 HEALTH SERVICES............................................................................................................................................................................... 50 AGRICULTURE ..................................................................................................................................................................................... 51 ARTS AND CRAFTS .............................................................................................................................................................................. 53 COMMUNITY BUILDING ....................................................................................................................................................................... 54 VI. IDENTIFYING TARGET INDUSTRIES ................................................................................................................................... 56 IDENTIFYING LINKAGES BETWEEN CLUSTERS..................................................................................................................................... 57 VII. CONCLUSIONS & RECOMMENDATIONS........................................................................................................................... 61 CONCLUSIONS ..................................................................................................................................................................................... 61 RECOMMENDATIONS ........................................................................................................................................................................... 66 ii LIST OF TABLES Table ES-1: Target Industries for Marin ...............................................................................................................................................4 Table 1: Targeted Industries Selection Criteria ...................................................................................................................................11 Table 2: Occupation of Employed Marin Residents and Jobs based in Marin County, 2000..............................................................17 Table 3: Percentage of Bay Area Workers Who Live and Work in the Same County, by County, 2000............................................18 Table 4: Top 10 County Share of Workforce in Creative Occupations, 2000 ....................................................................................28 Table 5: Ratio of U.S. Patents per Person by County, 1999 ................................................................................................................29 Table 6: Home-Based Business Licenses Trends by City, 2002..........................................................................................................34 Table 7: Marin County Clusters by Category, Employment, and Output (Sales), 2003.....................................................................40 Table 8: Comprehensive Core Cluster Criteria Screening Results ......................................................................................................44 Table 9: Short, Medium and Long-Term Steps in Launching a Cluster-Based, Collaborative Process in Marin County ..................71 iii LIST OF FIGURES Figure ES-1: Marin County’s Clusters and Linkages.............................................................................................................................3 Figure 1: The Intersection of the Three E’s............................................................................................................................................9 Figure 2: Marin County Outflow Commuting Pattern .........................................................................................................................19 Figure 3: Marin County Inflow Commuting Pattern............................................................................................................................20 Figure 4: Trends in Firm Size in Marin County from 1994 to 2001 ...................................................................................................23 Figure 5: Sales per Worker, 2003.........................................................................................................................................................26