A Perplexing Economy
Recently a study of the Cleveland economy was commissioned, by a local real estate developer. It got the attention of local blogger John Ettore, who was then noticed by NEO super-blogger, George Nemeth. The study is summarized nicely:
The key word here is "should" -- emphasis mine.
So, the nodes seem to be in place -- industry mix, cultural attractions, etc. But the economic network/ecosystem is underperforming. Why? Maybe, it is lacking links -- the interconnections between clusters of knowledge and ability that make things happen and get things done in today's economy. Innovation happens at the intersections. Innovation creates new businesses and jobs. Innovation attracts other innovators -- people who know the dance, and want to be with others that know the dance.
Silicon Valley[SV] is known to be a place of innovation. A recent example illustrates the power of intersections. Apple did not create the iPod by itself. It did so with several SV neighbors who had the tech/knowledge that Apple did not have -- innovation happens at the intersections. Apple then took the design created in California, by the intersected firms, to its international network and got it built and distributed.
We all know "It's the economy, stupid!" And in today's economy: "It's the connections, stupid!"
Is it possible that the Cleveland economy looks like this -- many players, many islands, few intersections...
Whereas, the Silicon Valley economy might look like this -- many players, no islands, many intersections...
"Cleveland is a perplexing economy," according to Dr. Christine Chmura, President and Chief Economist of Richmond-based Chmura Economics & Analytics, "It should be growing faster than it is because the industry mix is more favorable than the state and the region has so many attractive qualities such as the arts, cultural attractions, recreational opportunities, and professional sports teams."
The key word here is "should" -- emphasis mine.
So, the nodes seem to be in place -- industry mix, cultural attractions, etc. But the economic network/ecosystem is underperforming. Why? Maybe, it is lacking links -- the interconnections between clusters of knowledge and ability that make things happen and get things done in today's economy. Innovation happens at the intersections. Innovation creates new businesses and jobs. Innovation attracts other innovators -- people who know the dance, and want to be with others that know the dance.
Silicon Valley[SV] is known to be a place of innovation. A recent example illustrates the power of intersections. Apple did not create the iPod by itself. It did so with several SV neighbors who had the tech/knowledge that Apple did not have -- innovation happens at the intersections. Apple then took the design created in California, by the intersected firms, to its international network and got it built and distributed.
We all know "It's the economy, stupid!" And in today's economy: "It's the connections, stupid!"
Is it possible that the Cleveland economy looks like this -- many players, many islands, few intersections...
Whereas, the Silicon Valley economy might look like this -- many players, no islands, many intersections...
posted by Valdis at
12:34 PM
2 Comments:
Valdis -
One of the key bits of a regional economy is that it's really part of a national or global economy.
Perhaps there's some giant untapped resource - Browns fans? Rock and roll fans? - that provide a large collection of distant weak ties that can be systematically explored for improving connectivity.
Here in Ann Arbor, the powerful combination of U of Michigan (providing import/export of smart people to the globe) and Zingerman's Deli (providing import/export of food) gives a natural combination of network efforts.
By
Edward Vielmetti, at 12/13/2007 7:34 AM
I grew up in Cleveland, and the only person I would say I know there now (in present time, relevant to my daily life) is Valdis Krebs. Everyone I was close to as an adolescent and young adult has moved elsewhere--I'm still in regular touch with a couple of them.
A couple of years ago a diligent high school classmate of mine started tracking down others who had graduated from Collinwood High. He's been working hard to get us reconnected and it's been working -- to a limited extent in my case, but apparently more for others. Perhaps expanding on the "Class of 19-- or 20--" theme would work to help Cleveland reconnect with its ex-patriots.
By
Kate, at 12/31/2007 9:18 PM
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