APPENDIX
backed with major foundation support. For example, the Burton D. Morgan Foundation has been the primary driver and backer of JumpStart’s mentoring programs.
Case Study: Detroit and the New Economy Initiative Background By the early 2000s, Detroit had become synonymous with economic decline and despair. According to local sources, Michigan accounted for 50% of all jobs lost in the US during the 2000-2010 period.34 The popular local t-shirt slogan, Detroit vs. Everybody, captured the feelings of many Detroiters. That slogan also highlighted the grit and resilience found there. The New Economy Initiative (NEI) sought to build on that resilience and support Detroit’s rebound and recovery. 35 When the NEI was first being developed, Detroit’s problems were deep and profound. Band-aids and small projects would not fix them. A historically unprecedented rebuilding effort was needed, and the NEI team thought big, with an initial down payment of $100 million provided by ten foundations, led by the Community Foundation for Southeast Michigan, with major support from national funders such as the Ford, Hudson-Webber, Kellogg, Knight, and Kresge Foundations. An additional $33.25 million was invested in NEI in 2014. These funds were deployed to support a host of strategies, including neighborhood revitalization, workforce training, food systems development, and others. In terms of business development, NEI funds supported dozens of local organizations, including the Arab Community Center for Economic and Social Services, the Detroit Microenterprise Fund, Invest Detroit, Venture for America, and many others. Few communities can muster $100 million to support economic revitalization. But the NEI did support and spawn many innovative organizations that offer useful lessons for ongoing work in Rhode Island. Below, we profile Tech Town Detroit, one of the NEI’s flagship projects.
Key Organizations: Tech Town Detroit Tech Town’s origins pre-date the NEI. The organization was established in 2000, by a collaborative of Wayne State University (WSU), General Motors, and Henry Ford Health Systems. 36 At the outset, Tech Town was envisioned as a traditional incubator with a primary mission of supporting the development and commercialization of WSU-developed technologies. This initial work was successful, but thanks to major NEI investments, Tech Town’s mission was transformed from a narrow focus on technology-based development to supporting an entrepreneur-led renaissance across Southeast Michigan. Between 2010 and 2016, NEI invested more than $16.5 million to support TechTown, the largest investment in the NEI portfolio.37 NEI funding was matched with additional funding exceeding $4.75 million. In 2019, TechTown’s annual expenses exceeded $9.6 million. Under the auspices of NEI, TechTown developed and delivered a variety of programs targeted Detroit’s entrepreneurial community. TechTown’s facility, located in an iconic 1920s building, is designed to serve as a hub for activities and programs. It offers extensive meeting space, and provides coworking space, offices, 34
Rob Pitingolo and Kathryn L. S. Pettit, Forward Cities: Four Cities’ Efforts toward more Inclusive Entrepreneurship, Urban Institute, 2017, p. 16. 35 For various NEI impact reports, visit https://neweconomyinitiative.org/impact/. 36 On the NEI’s early history, see https://www.aplu.org/projects-and-initiatives/economic-development-andcommunity-engagement/innovation-and-economic-prosperity-universities-designation-and-awardsprogram/IEP_Library/wayne-state-university-techtown/file. 37
Brian Pittelko, Briyan Bommersbach, and George Erickcek, The Economic Impact of the New Economy Initiative on the Detroit Region and the State of Michigan, W.E. Upjohn Institute, 2016, p. 19. 40
