The
Creative Capital Agenda 20
11–2015
PROSPECTUS
Executive Summary The Creative Capital Agenda proposes a bold strategy for regional economic growth. The nine parishes of the Baton Rouge area have the opportunity to be one of the leading metropolitan centers of growth in the southern U.S. We must be prepared to take advantage of this fact. The prosperity of the Capital Region’s people will be secured by economic gains and forward progress.
The
Creative Capital
Five years ago, investors in The Campaign for a Greater Baton Rouge took a leap of faith that a strong economic development organization would make a difference in our region’s competitiveness. Those investors – corporations, small businesses, foundations, and individuals – demonstrated leadership to drive our area forward.
Agenda 20
In five short years, the Baton Rouge Area Chamber (BRAC) has successfully developed a ground-breaking economic development program. Having gained national recognition as a top ten economic development organization in the U.S., we must maintain that momentum.
11–2015
Executive Summary.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Prospectus
BRAC at a Glance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 The Campaign for a Greater Baton Rouge Results.. . . . . . . . . . . . . . . . . . . . . . . . . Business Retention and Expansion Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business Attraction Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . National Marketing Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business Intelligence Program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Special Opportunity Fund.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public Policy Group.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Learning Community.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3–5 4 4 4 4 4 5 5
The Current Economy and the Capital Region.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6–11 Where do we go from here?.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 The Creative Capital Agenda.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Job Creation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International Development.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Entrepreneurship and Innovation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Global Branding.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Talent Development.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regional Competitiveness.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11–15 11 12 13 13 14 15
BRAC Investor Levels.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16–17
We continue to compete with many high-performing regions across the South, the U.S., and the globe for the same economic investments. This fact demands that we maintain an aggressive vision and strategy. The Creative Capital Agenda was developed for this very purpose. It was developed using input gathered from current investors, planning meetings held in all nine parishes, and national and international research on best practices among competitor organizations. The Agenda will serve as: • the regional business community’s five-year strategic plan for economic development in the Capital Region;
Our region’s economic prosperity is intrinsically tied to people, innovation, creativity, and partnerships. A welleducated workforce drawn magnetically to our unique quality of life will increasingly define our attractiveness to business investment. Innovative firms will fuel our growth. A new sense of creativity will be intertwined with these new firms and existing firms and our human capital to drive growth and create new wealth. Partnerships across our region, other regions, and state leaders are vital to building our capacity to compete.
• a prospectus to investors on BRAC’s economic results, mission, and five-year strategic goals; • an honest, frank review of the Capital Region’s strengths, weaknesses, opportunities, and threats; and • an assessment of the state of the region’s economy. The Baton Rouge area has the right assets to compete nationally and globally. We have the momentum to succeed. To do so, we must take our economic development strategy to the next level. The Creative Capital Agenda is designed to do just that.
Baton Rouge Area Remains in Position of Relative Economic Strength Top 20 rankings of economic performance from external sources, 2009 Southern Business & Development Mid-markets of the Year
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1
Bizjournals/Portfolio.com’s Long-term Per-capita Income Growth
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8
Southern Business & Development Mid-markets of the Decade
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2
Fortune Small Business’ Small Business Start-ups
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9
Forbes’ Best Mid-Sized Cities for Jobs 2010
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2
Forbes’ America’s Fastest-recovering Cities
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10
Bizjournals/Portfolio.com’s Nation’s Best Labor Markets
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3
Portfolio.com’s Best Cities for Young Adults
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10
Site Selection’s Most Economic Development Wins
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6
BloombergBusinessweek Strongest Job Markets
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11
Brookings Institution’s Strongest Regional Economies During the Recession
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6
Milken Institute’s Best Performing Cities in 2009
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Prospectus
1
BRAC
The Campaign for a Greater Baton Rouge Results
A t A G lance
For five years, BRAC has worked to establish a nationally-competitive regional economic development organization (EDO). In the Campaign’s prospectus, we pledged to do so based on seven core activities, which were identified as bestpractices of similar groups.
BRAC is a non-profit, investor-driven organization powered by over 1,500 investors, member
Simply put, the primary goals of the Campaign were to increase the number of high-paying jobs in the Baton Rouge metropolitan statistical area (MSA) and to improve the attractiveness of our community for business investment. This dictated that the organization balance its strategies between business development and product development.
businesses, civic organizations, education institutions, and individuals. Since its founding in 1916, BRAC – formerly known as the Greater Baton Rouge Chamber of Commerce – has consistently been at the forefront of many regional milestones. They include the development of the Port of Greater Baton Rouge; the Baton Rouge Metropolitan Airport; the formation of the Louisiana Business and Technology Center; and the desegregation
The organization unified its national marketing of the metropolitan region’s assets to key decisionmakers. BRAC acted as an impartial broker among all nine parishes for business prospects seeking to make investments in the region. Essentially, a win in any of these parishes was a win for the region.
of public schools.
The organization’s role as a conduit for growth and development in the community was severely put to the test in 2005 as Southern Louisiana felt the brunt of Hurricanes Katrina and Rita. It was in the wake of these two future-defining natural disasters that the Baton Rouge area was confronted with a swelling population base, strained resources, and challenged infrastructure. It also awakened the region and its business community to the opportunity to become the leading economic growth area in Louisiana. The Greater Baton Rouge Chamber of Commerce realized the need to shift its focus in order to tackle the expanded challenges the region faced. It rebranded and restructured the organization to meet the changing needs of its community. Renamed the Baton Rouge Area Chamber, its mission was simple: lead economic development for the nine-parish (i.e., Ascension, East Baton Rouge, East Feliciana,
Iberville, Livingston, Pointe Coupee, West Baton Rouge, West Feliciana, and St. Helena) area. In 2006, BRAC rallied the support of businesses and organizations throughout the region around The Campaign for a Greater Baton Rouge to accomplish this mission. Over 120 investors participated, creating one of the most successful campaigns of its kind among similarsized regions in the country. Five years later, BRAC serves as an economic development leader and a catalyst for forward movement in the region and state. Each year, it plays an integral role in initiatives that will have a lasting impact on our region and its business climate. From recruiting and retaining businesses in key sectors to securing victories for critical public policy efforts, BRAC continues to be an instrument for economic progress, delivering on its commitments to Campaign investors.
BRAC developed a target industry plan, which focused its efforts on five sectors: warehousing and distribution; construction products manufacturing; finance, insurance and real estate – regional
“ One of the top ten economic development organizations in the U.S.” – Site Selection magazine, 2010 headquarters and shared services; life sciences; and emerging and existing niche opportunities, such as video game development and downstream petrochemical production. From these efforts came better than expected results, including1: • 51 projects totaling 6,177 jobs, $1.9 billion in capital investment, and $256 million in direct impacts; • 10,338 total jobs, including direct, indirect, and induced activity; $440 million in total payroll; $2.1 billion in output; and • Major policy reforms in education, transportation, ethics, workforce, taxation, incentives, and innovation. BRAC’s focus on seven core strategies over the last five years produced significant outcomes for each.
strategy #1
Business retention and expansion program
1
BRAC’s first priority is the retention and expansion of existing firms and organizations. According to Blane Canada, Ltd, 76 percent of an urban/ suburban community’s growth comes from existing employers. BRAC has developed a robust business retention and expansion program that has visited
over 400 firms in the Capital Region since 2006 to assess their business growth, risks of closure, and challenges, while providing assistance when needed. This program has retained and created more than 3,300 jobs and contributed to over $1 billion in direct capital investment.
1
Business development results are from January 2006 through July 2010. Results are only included for those projects where BRAC staff had a material involvement. A full economic impact report and list of all projects are available from BRAC.
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The Creative Capital Agenda 2011-2015
Prospectus
3
strategy #2
strategy #6
Business Attraction Program
Public Policy Group
2
6
BRAC’s business development team aggressively recruited companies in target sectors to locate in the Baton Rouge area. This is done in partnership with local allies in economic development. BRAC has secured wins in all five of its targeted sectors, as well as in others. This has led to 1,880 new jobs with an average wage of $41,330 and $522,685,000 in capital investment in the Capital Region since 2006.
strategy #3
National Marketing Program
3
BRAC developed a dynamic national marketing program to begin building awareness of the Capital Region among business and site selection decisionmakers. This program has led to articles highlighting the region in such prestigious media outlets as The Wall Street Journal, The Washington Post, Forbes, and Fox Business News. As a result of BRAC’s media initiatives, articles referencing the region’s innovation in science and technology, highlighting digital media activity, and promoting its rich culture reached over four million people. The BRAC team also cultivated relationships with top site-selection professionals, placed advertising in online and print trade sources, produced creative direct mail, and maintained a regional economic development web portal. BRAC’s marketing efforts have won numerous national awards, including top national recognition for our Catalyst magazine, annual reports, and direct mail pieces.
strategy #4
Business Intelligence Program
4
Solid business intelligence lies behind BRAC’s economic development wins and the strength of the marketing messages developed to help secure them. BRAC began by creating the aforementioned target industry analysis, with detailed information on the sectors. It also created the capacity to develop analysis on target industries and firms; provide quality research to companies inquiring about opportunities in the Capital Region; assess regional company activity; and track critical economic indicators. The business development team created and maintained a searchable database of available sites and buildings in the nine parishes.
strategy #5
“ Baton Rouge is the new economic development rock star in the South.” – Southern Business & Development magazine, 2010
BRAC has become one of the leading state organizations for economic development policy and reform. It has led the way on critical issues tied to the competitiveness of the Capital Region, ranging from ethics reform to innovation. Each year, BRAC has used a strategic planning process surveying its issue councils and membership to set policy goals for its annual business plan. Using that guidance, its research staff has crafted a fact-based strategy on issues to determine an objective path forward. Following this research-based decisionmaking process, BRAC’s product development and government affairs teams have moved policy into implementation. Whether working with statewide coalitions or as a lone entity, BRAC’s policy team has made important progress. The points below highlight some of the significant wins since the launch of The Campaign for a Greater Baton Rouge: • Advocated for statewide ethics reform leading to Louisiana’s number one ranking nationally as an ethical place to do business • Fought to remove uncompetitive state business taxes • Created a statewide business coalition to advance higher education funding and reforms • Promoted incentives for innovation such as a significant boost in the state research and development tax credit for small businesses • Played a leading role in making the case for and securing over $260 million for transportation projects, expected to produce close to two million man-hours of traffic congestion relief
• Advocated for research and innovation investments in Louisiana State University (LSU) and the Pennington Biomedical Research Center BRAC is now the indisputable leader in championing key policy issues in the Capital Region and a reform leader statewide.
strategy #7
Learning Community
7
The Campaign for a Greater Baton Rouge articulated that education is a lifelong continuum and the foundation of any successful economic development strategy. BRAC’s regional learning community initiative viewed education in four central components: Pre-K-12 education reform, The Greater Baton Rouge Literacy Coalition, workforce training, and higher education. Although systemic educational improvement remains a challenge, BRAC’s efforts to foster a learning community resulted in significant progress. These efforts have: • Led to the first-ever nine-parish review of public education quality, including strategic recommendations for reform used to guide BRAC’s public education advocacy • Secured the passage of higher education reform legislation authorizing new autonomy for increasing revenues up to the level of peer institutions • Supported the launch of a coalition to coordinate the efforts of the region’s multiple literacy programs • Conducted an assessment of regional workforce capacity and models such as the Georgia Quick Start® training program, both of which influenced state workforce reforms and the creation of Louisiana FastStart™
Special Opportunity Fund
5
The unexpected often defines economic development. Flexibility of resources to creatively and aggressively pursue unexpected opportunities can pay dividends. BRAC has maintained a special opportunity fund to dispatch resources as necessary on such things as the design and marketing of a major corporate headquarters presentation, a job fair for a company relocation, and a unique workforce capacity assessment for the recruitment of a digital media company.
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The Creative Capital Agenda 2011-2015
These seven core strategies form the foundation of a nationally-competitive regional economic development program and have strengthened the region’s economy.
Prospectus
5
Where are we now?
Our SWOT analysis shows momentum and challenges
The Current Economy and the Capital Region The Capital Region, situated strategically on the Mississippi River, is one of the strongest regional economies in the United States, according to the Brookings Institution. The Baton Rouge area has consistently been a leading metro in terms of low unemployment and stable housing prices. The region’s sectors are well diversified, with traditional strengths in chemical and petrochemical manufacturing, engineering, design, and construction complemented by emerging opportunities in digital media, healthcare and bioscience, and alternative
Strengths
Weaknesses
Diversified economy: Chemical & petrochemical manufacturing; construction, engineering, design; light manufacturing; port-related trade
Workforce: Limited availability of skilled workforce; weak “soft” skills
Infrastructure: Mississippi River, freight rail access; interstates; PBRC; healthcare access; housing options Network access, computing power: Internet backbone; LONI; QueenBee supercomputer Business environment: Tax environment, business incentives; LA FastStart program
Talent: Talent attraction challenges; retention of university graduates Infrastructure: Traffic congestion; availability/cost of flights; public transit; sewer Business environment: State financial situation; ozone non-attainment status; university-private sector partnerships Innovation ecosystem: Lack of access to risk capital; untapped entrepreneurial activity; limited tech transfer of innovation
Talent: Four higher ed institutions – LSU, Southern, BRCC, and RPCC; highest educated regional workforce in LA
Poverty: Pockets of cyclical, multi-generational poverty
Economic position: A leading economy in Southern U.S.; stable sectors; regionalism
Education: Underperforming systems and schools, including large portion of East Baton Rouge
Education: Five of the top ten school districts in Louisiana; scores improving across region
Perception/image: Lack brand/identity nationally
Quality of life: Region is unique, creative, and attractive to families
Urban vs suburban vs rural: Differences create resistance to change and political challenges
Emerging sectors: Digital media; bio-fuels; life sciences, |including diabetes and obesity research
Diversity/tolerance: Race issues and support for tolerance still a challenge
Business community: Engaged business leadership driving regional direction
Community planning: Lacking consistent regional planning, common, or shared vision
Arts: Access to arts very competitive for market size
Disconnected on transportation solutions: Poor regional planning means lack needs/solutions (loop paralysis)
Community foundation: BRAF uniquely competitive against peer regional foundations
Population: Size under 1 million
Opportunities
Threats
Emerging sectors: Expansion in digital media, manufacturing, and bio-fuels industries
Employment: State budget crisis and offshore drilling moratorium may hamper region’s overall employment/growth
Airports: Land development; low cost carriers; new international access through MSY
Air access: Availability and cost of flights from BTR may limit capabilities; similar with MSY for international
Regional assets: Development of marketing regional assets, such as the Port of Greater Baton Rouge
Education: Poor quality of public schools may limit business and talent development
Passenger rail: Inter-regional passenger rail could be a “game changer”
Talent: Difficulties producing, retaining, and attracting human capital inhibits business growth and stunts research university competitiveness
energy. Southern Business and Development, a leading economic development magazine, recognized the Baton Rouge area as the top mid-market of the decade and the number one mid-market of the year in the South for three out of the last four years, based on the number and quality of its project wins.
Our region’s economic strength stems from its diversification, a favorable business-operating environment, and its ability to avoid the boom-bust cycle experienced by many other regions. PostKatrina gains have boosted the region’s economic performance as well. Since 2005, the region’s job base and number of firms have grown dramatically. The nine parishes of the Baton Rouge MSA have increased the number of jobs by 7.2 percent and the number of firms by 33.9 percent. This has largely been the result of an economic shift spurred by the 2005 storm-induced migration and increased corporate investment.
In 2005, the Baton Rouge MSA had 707,000 people and was categorized as a mid-market region by economic development categories. Today, the population is estimated at 786,000 and is expected to exceed 800,000 sometime after 2012, according to LSU analysis. The region’s population gains are expected to change its competitive position over the next five years. Due to population growth, the region’s U.S. competition will now come from major markets as well as mid-markets from throughout the South and U.S.
Brand: Achieving national brand awareness for Capital Region with national media Research and innovation: LSU and Pennington Biomedical Research Center offer unique competitive advantages Entrepreneurial infrastructure: Three strong incubators; research park land; seasoned entrepreneurial mentors
Private sector/university collaboration: Limited collaboration between the universities and the private sector may inhibit innovation and entrepreneurial development Taxation: With homestead exemption, property tax remains uncompetitive for businesses
Super-regionalism: Extend efforts with GNO, Inc. to new levels
Reapportionment: Could weaken Capital Region representation in congress
Small business development: Foster better small business policy and services
Technology transfer: Could stifle private-sector innovation opportunities
Water management: New coastal opportunities
Workforce: Weaknesses in skilled technical workforce could limit development gains
Regional planning: EBR comprehensive plan can lead to stronger regional vision
Regulatory tightening: federal or state policies (EPA) could stymie the region’s driver industries
Community colleges emerging: BRCC and RPCC becoming major factors of competitiveness
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The Creative Capital Agenda 2011-2015
Prospectus
7
form of post-secondary education. The area’s labor force is more educated on average than other regions in Louisiana, with unique concentrations in general and environmental engineering. We also boast five of the top ten public school districts in Louisiana.
Peer Economic Development Organizations Annual Organization Budget (Millions of dollars) Kansas City
5.0
St. Louis
4.6
Nashville
Nonetheless, there are also distinct challenges in public education and workforce development which must be addressed to ensure long-term sustainability and growth. This may threaten continued business expansion and talent attraction if substantial measures are not taken to improve overall quality and enhance career technical education. A significant number of jobs are at risk in the government sector and higher education due to the fiscal challenges at the state level. In addition, the region’s and state’s traditional petrochemical manufacturing workforce has declined due to international competition and improved productivity. To counter these realities, the Baton Rouge area must address the need to attract and retain human capital to strengthen its traditional sectors and pursue emerging opportunities.
“ At the core of our competitive advantage is the state’s flagship research university, LSU, which competes globally as a Tier 1 institution.”
Among its greatest strengths are the region’s education assets. At the core of its competitive advantage is the state’s flagship research university, LSU, which competes globally as a Tier 1 institution – a key element of an innovation-driven regional economy. Along with the region’s other land-grant institution, Southern University, our universities offer strong programs in engineering, business, and numerous other disciplines. Couple these with two of the fastest growing community colleges in the state, Baton Rouge Community College and River Parishes Community College, and we produce the state’s highest concentration of adults with some
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The Creative Capital Agenda 2011-2015
As a form of self-assessment, BRAC evaluated a group of peer regional economic development organizations that have historically performed well, and which BRAC aspires to emulate. Our analysis showed that our region has successfully developed a competitive program with almost all of the key elements. The most significant differences were the breadth of resources invested into international business development and regional innovation. While BRAC has made strides, its business development activities are out-funded by $1-3 million per year when compared to peer regions (see page 9). Fortunately, those challenges are balanced with new opportunities and realities. Louisiana’s dramatic improvement in ethics rankings (from 48th to 1st) highlights the state’s long-term commitment to reform. Companies such as Electronic Arts and Dynamic Fuels solidify our foundation in emerging industries such as digital media and alternative energy, likewise increased investments and new partnerships in bioscience and healthcare assets such as Pennington Biomedical Research Center present unique opportunities given Louisiana’s distinct population demographics and the aging of the U.S. population.
4.2
Charlotte
3.2
Richmond
3.2
Cincinnati
3.0
Hampton
3.0
Baton Rouge
2.1
Source: Garner Economics; BRAC Analysis
Each of the nine parishes of the Capital Region offer unique competitive advantages for economic development Ascension: Fast-growing population; good education and housing assets; growing community college; Mississippi River access; industrial land; proximity to greater New Orleans region; Interstate 10 access
West Feliciana
East Feliciana
St. Helena
Pointe Coupee West Baton Rouge
Iberville
East Baton Rouge Livingston
Ascension
East Baton Rouge: Urban core; largest job base and workforce; two universities; Pennington Biomedical Research Center; growing community college; strong housing and community assets; Mississippi River access; multi-modal transportation services
Pointe Coupee: High quality of life; waterfront development; Mississippi River access; light manufacturing; industrial land; new Mississippi River bridge under construction
East Feliciana: Rural/pastoral quality of life; timber and wood products sector; light manufacturing
St. Helena: Rural economy; light manufacturing; timber resources; industrial land; civic engagement
Iberville: Industrial/manufacturing center with greenfield and co-location options; Mississippi River access; proficient workforce; multi-modal transportation services; proximity to Lafayette MSA
West Baton Rouge: Riverfront access; Port of Greater Baton Rouge; industrial land; existing industrial center; multi-modal transportation; proximity to Lafayette MSA; Interstate 10 access
Livingston: Fast-growing population; highperforming school district; proximity to greater New Orleans region workforce; timber; industrial land; Interstate 12 access; LIGO research institute
West Feliciana: Rural quality of life; high-performing school district; the region’s playground for outdoor activities; Mississippi River access; nuclear power plant; wood products sector
Prospectus
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Seizing the momentum of this success is crucial
Where do we go from here?
to the economic vitality of the Capital Region. Over a six-month timeframe, BRAC has met in large and small groups with business and community leaders throughout the nine-parish region. Our team researched similar organizations in the U.S. and internationally. We have also compared the economic position of the region to that of peer communities based on our mix of assets, strengths, weaknesses, and opportunities. Building on The Campaign for a Greater Baton
Our region is enjoying a great period of economic development success. A sense of
Rouge, six principles of action emerged that will guide our organization as it moves forward:
economic momentum is increasing, and each
Act regionally: Act as an impartial broker among
parish’s successes are helping the other parishes
the nine parishes to market the region nationally
make gains. However, our challenges have the
and globally, while building super-regional
opportunity to hold us back. In order to prevent
partnerships.
Six core strategies will define our activity over the next five years. During that period, BRAC will continue to strengthen its business and economic development programs. We will work aggressively and strategically to recruit top companies and increase locations in the Baton Rouge area, while assisting companies as they pursue top talent. BRAC will leverage the lessons learned in developing its existing top-tier program to expand internationally, increase the region’s exposure, and create an environment where entrepreneurs flourish.
The
Creative Capital Agenda 20
11–2015
The following items outline our six strategies as well as the metrics that investors will use to measure our progress.
this from occurring, we need to follow the advice of author Michael Korda, who said that “[o]ne way
Balance strategies: Retention of existing firms
to keep momentum going is to have constantly
and entrepreneurial development are equally
greater goals.”
as critical as business attraction.
It is imperative to build on our existing
1
Job Creation
Education outcomes are foundational: Rapid gains in education and workforce outcomes are
Goals
vital to the region’s attractiveness for business investment and talent.
Retain and attract high-growth companies to positively influence quality of life
strategy. At the same time, we must recognize that
Focus on growth: Target firms and industry
the global economy has created a climate that
Strategies
sectors exhibiting rapid growth in employment
encourages people to be more entrepreneurial.
in our economic development activities, with a
• Focus on high-growth and emerging industries, providing specific support to accelerate the growth of traditionally strong regional employers
competencies, while developing new programs that add the greatest value. Our domestic business development must increasingly become a global
This reflects the fact observed by the Kaufmann
focus on higher-wage, knowledge-based jobs.
Foundation that the majority of net new job growth in the U.S. can be attributed to startup companies.
Focus on talent: Access to world-class human capital will accelerate the development of high-
creation of quality jobs and the
• Implement an aggressive company outreach program focused on lead generation in high-growth sectors
improvement of existing jobs is more likely to provide broadly distributed benefits to individuals, society and the economy. When individuals and groups do better, communities and society do better
performing companies and the region.
• Cultivate leads in selected competitor markets
as a whole. Such an approach is
Target economic drivers: Target wealth-generating
• Focus business retention and expansion services on existing economic drivers
also more likely to be sustainable
years. While these activities have become part of the marrow of the organization, conditions
firms that produce at least fifty-percent of revenues
have progressed and new needs have emerged.
from outside of the region.
BRAC has had considerable success with each of its seven core strategies over the past five
• Number of jobs
• Amount of capital investment
• Average wage of jobs
• Total payroll created
Guided by these principles, BRAC’s five-year strategic plan, The Creative Capital Agenda, will seek to further develop the wealth of creativity interwoven throughout Southern Louisiana’s business environment and culture.
The Creative Capital Agenda 2011-2015
in the long run, particularly when it is based on a region’s competitive
Key Metrics
• Number of high-wage jobs
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[A]n economic development approach that encourages the
advantages, builds human capital, improves quality of life and protects the environment. – International Economic
While the Capital Region has made significant strides in the area of job creation, it is important that the new campaign retain this as a guiding focus. BRAC will proactively seek to attract businesses to the Baton Rouge area that bring with them continued job growth and boost average salaries for the residents of the nine-parish region.
Development Council
Prospectus
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2
International Development
Goal • Bring high-wage jobs associated with international business to the area to build a global reputation
Strategies • Attract foreign direct investment (FDI) to the region • Focus on specific international markets • Develop relationships with international companies in our target markets • Develop a global brand to help create a positive perception of the Capital Region in the international marketplace • Support export assistance efforts for existing companies
jobs. Additionally, U.S. subsidiaries of companies headquartered abroad support an annual payroll of $403.6 billion — with an average compensation per worker of $73,124, which is 34.7 percent higher than compensation at all U.S. companies. FDI also has proven to result in export growth; strengthened manufacturing and professional services sectors; augmentation of research and development at the regional level; and an overall rise in U.S. productivity. These companies will also add to the cultural richness and diverse business appeal of the nine-parish Capital Region. As regional businesses become more thoroughly engaged with representatives of new international corporations, synergistic opportunities for business and community development will be identified. BRAC will aggressively position the region as an appealing option for multinational corporations seeking major FDI opportunities in the U.S.
• Number of international prospects • Number of international locates • Number of jobs created FDI is an important component of a region’s economic development strategy as it attracts highwage jobs; bolsters the region’s most competitive industries; and supports international trade and connectivity. FDI is motivated by many of the same factors that influence domestic location decisions: quality of workforce, cost of doing business, industry clusters, and market access. However, other factors include adequate infrastructure to support international travel and movement of goods, and access to the resources and service providers necessary for international business. According to the U.S. Department of Commerce’s International Trade Administration, U.S. affiliates of majority-owned foreign companies employ over five million U.S. workers, or 4.5 percent of private industry employment. Between 2003 and 2007, more than 3,300 new projects were announced or opened by foreign companies, yielding $184 billion in investment and approximately 447,000 new
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The Creative Capital Agenda 2011-2015
Goal • Support the development of new entrepreneurial firms and regional capacity for innovation
Objectives • Lead the development and management of a regional innovation organization which will catalyze entrepreneurship and innovation for the region • Champion the development of early-stage pools of risk capital to support growth-oriented companies • Support the development and growth of social networks of entrepreneurs, risk capitalists, and researchers in the Capital Region • Provide a network of business mentors for up-and-coming entrepreneurs
Key Metrics • Total dollars in FDI
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Entrepreneurship and Innovation
Our view is that economic isolationism is the wrong way to go. Vibrant, successful growing economies that advance the interests of their citizens engage the global economy. And, we’re committed to engaging the global economy. – John W. Snow, U.S. Secretary of Treasury 2003 – 2006
• Foster industry-university collaboration for innovation
Key Metrics • Number of entrepreneurial-growth companies served
growth occurs in areas where innovation is a driving focus of regional and state economies. The economic benefits of innovation include the introduction of new goods, services, or methods of production; creation of new markets or market opportunities; development of new sources of raw materials or commodities; and development of new organizational structures within an industry. High-growth, innovative companies also drive higher qualities of life for knowledge-based workers by providing higher wages and lower unemployment compared to other sectors in the economy. The development of a Baton Rouge area strategy focused on innovation-based economic development is an ambitious effort whose success depends on all relevant parties with a stake in the strategy serving as active participants in the process. It is also important to embrace a tolerance for risk and to take a long-range, forward-looking view as we develop and implement an innovation agenda. BRAC will be the driving force behind a new regional innovation organization tasked with identifying opportunities in the current service-delivery system to improve support for entrepreneurial growth companies. It will develop, launch, and/or enhance existing activities and services accordingly.
• Number of jobs created in entrepreneurialgrowth companies • Development of programs that foster a culture of entrepreneurial growth
Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.
Louisiana leaders are increasingly embracing innovation-based economic development goals as a high priority. Evidence shows that high job
– Peter Drucker, economist and 2002 recipient of Presidential Medal of Freedom
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Global Branding
Strategies • Establish the Baton Rouge area as the Creative Capital of the South
Goal
• Attract corporate and individual talent to the Capital Region
• Increase awareness of the Baton Rouge area as a destination location for high-growth companies and talented people
• Implement a comprehensive regional branding campaign • Secure cohesive buy-in from partners throughout the nine-parish Capital Region
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Key Metrics • Recognition and positive perception of the Baton Rouge area brand in outside markets • Earned-media nationally and internationally • Local and state press mentions • Number of unique visits to the brand website, including international visits The Baton Rouge area is the Creative Capital of the South because it is a place that understands, embraces, and nurtures creativity. We are a region that pushes the boundaries of what creativity is and expands the definition to include many peoples and things outside of the traditional interpretation. We are not only the state capital but also an ideal place for human capital, social capital, intellectual capital, and venture capital.
Adopting the Creative Capital of the South as a regional brand will position the Baton Rouge area as an innovative, highly distinctive market that boasts an eclectic mixture of cultural destinations and thriving industries. The Creative Capital of the South campaign aims to accentuate the creativity that defines this region through examples of entrepreneurship, innovation, culture, research and development, and the arts.
[W]hen a brand is launched, it is advantageous for a community to speak in one voice, and what is spoken needs to be strategic. – Don McEachern, CEO, North Star Destination Strategies
We are the Creative Capital of the South because we are a region that celebrates innovation, research and development, entrepreneurship, arts, and culture. We are home to two land-grant universities; an internationally acclaimed nutrition and disease prevention research center; two Fortune 1000 headquarters; one of only three laser interferometer gravitational-wave observatories in the world; an internationally renown nature photographer; an American Academy of Arts and Letters-winning author; a National Chef of the Year winner; highly-unique traditions and customs; and much, much more.
Focusing on the critical issue of talent retention and attraction presents a unique opportunity for the Capital Region to distinguish itself even further for its leadership in developing, cultivating, and supporting talented people. It will also strengthen the region’s economic standing and its appeal in attracting business. More importantly, it is a necessity. Occupational forecasts published by the Louisiana Workforce Commission estimate that annual job openings through 2016 for the Baton Rouge area will be 17,750, which is more than twice the estimated increase in total population for the region. Without substantially increased in-migration, there will be much greater demand for workers in the Capital Region than people available to work. Amidst the region’s population growth are out-migration figures for the most-educated citizens, those with bachelors and professional degrees. Yet with such
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Regional Competitiveness
Goal • Target key public policy issues that impact the Baton Rouge area’s ability to remain competitive in the global marketplace
Strategies • Champion a strong public school system in the region • Foster a robust transportation network
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Talent Development
Goal • Attract, develop, and retain human capital to meet the needs of business
Strategies • Create a talent repository • Solicit targeted company assistance • Develop corporate talent services • Raise awareness of the amenities that the Baton Rouge area has to offer • Continue to advocate for improvements in public and higher education as a mechanism to attract and retain entrepreneurial and highly skilled people
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The Creative Capital Agenda 2011-2015
Key Metrics • Number of people attracted or retained
• Improve competitiveness of factors such as workforce, air access, regulation, fiscal policy, higher education, and trade policy
• Number of companies supported
• Identify and implement strategies to better compete for region’s targeted industry sectors
• Programs developed that support the retention and attraction of talent
Key Metrics • Public policy reforms in target areas
In The Rise of the Creative Class, Richard Florida writes that “[a]ccess to talented and creative people is to modern business what access to coal and iron ore was to steelmaking. It determines where companies will choose to locate and grow and thus in turn changes the way cities must compete.” His comments are a testament to the shift realized in the U. S. economy. Therefore, if the Capital Region is to remain both nationally and globally competitive, we must leverage our role as the Creative Capital of the South to attract and retain talent in the nine-parish Baton Rouge area.
a significant supply of people, businesses still cite their need for experienced mid-level to senior-level executives. These factors drive economic growth considerations and demand solutions. In today’s creative economy, the real source of economic growth comes from the clustering and concentration of talented and productive people. New ideas are generated and our productivity increases when we locate close to one another in cities and regions. The clustering force makes each of us more productive, which in turns makes the places we inhabit much more productive, generating great increases in output and wealth. – Richard Florida, American urban studies theorist and author
• Improve the competiveness of factors such as workforce, air access, regulation, fiscal policy, higher education, and trade policy A region’s competitiveness determines its attractiveness as a place to do business and its ability to attract and retain firms. These ultimately boost personal income and improve the quality of life for its residents. BRAC will address high-priority competitiveness factors including: building a robust transportation network and championing a strong public education system in the region. These and other factors drive business decisions to invest in the Capital Region for their growth.
For regions, the only way to support high and rising levels of prosperity is to provide a fertile environment for … continual innovation. Economic and workforce development strategies must evolve to reflect this innovation imperative. – Deborah L. Wince-Smith, President, U.S. Council on Competitiveness
Fast Forward to 2015 In 2015, we envision a dynamic, growth-oriented economic development strategy for the region driven by the success of The Creative Capital Agenda. The Agenda will help produce a region that is more competitive than it is today. A region that can compete with many of the world’s top markets for jobcreation projects. A region that is an emerging center for international investment. A region that is a hotbed of talent, innovation, and entrepreneurship. A region that continually works to improve in areas such as education, transportation, healthcare, and many others. A region that is quite simply the CREATIVE CAPITAL OF THE SOUTH.
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BRAC Investor Levels Participation
Supporting Investor $4,000+
Policy Council $10,000+
Corporate Council $15,000+
Ambassador Council $25,000+
Executive Committee seat Board seat International Leadership Committee Business Development Committee
Participation Executive Council $50,000+
Chairman Council $100,000+
Executive Committee seat
Issue councils
Guaranteed position on BRAC’s Executive Committee
( education; small business; technology, innovation, and entrepreneurship; transportation; and workforce) Working groups which address issues at the intersection of leadership and policy to drive outcomes to increase the region’s competitiveness
Board seat Guaranteed position on BRAC’s Board of Directors
International Leadership Committee Committee comprised of diverse international professionals who provide strategic insight into BRAC’s international business development activities
Business Development Committee Committee which provides strategic insight to the executive director of business development to assist in closing transactions
Young professionals organization Membership opportunities for employees of investor companies to get involved in social activities and Baton Rouge area leadership initiatives with young professionals Events invite Special invitations to BRAC events
Talent advisory group Talent advisory group Issue councils
Group focused on identifying and developing solutions to critical challenges around brain drain, talent attraction, and quality of life
BRAC-interact Program to link employees of investor companies to BRAC activities through training and involvement
Young professionals organization Events invite
Recognition
BRAC-interact
Dealmaker’s book
Catalyst
High-profile annual publication highlighting key leaders in business and industry who have a deep commitment to economic development and Capital Region leadership
The quarterly magazine that presents the progress of the campaign over the last three months, information about the local economy, BRAC initiatives, and economic development wins for the Capital Region
Dealmaker’s book
Annual event
Website link
Annual event
BRAC’s annual event which celebrates the region’s successes from the previous twelve months
Special recognition on BRAC’s website that will include a link to the investor’s website
Recognition
Annual report Catalyst
Annual report The annual publication that provides a comprehensive report on organization’s activities throughout the preceding year
Website link*
Knowledge Access R3 – Regional Relocation Resources** Talent Connect** General economic research Post jobs
Knowledge Access R3 – Regional Relocation Resources
Post jobs
BRAC program to assist new-to-the-market professionals (with existing or new companies) in becoming acclimated to the Capital Region; support ranges from real estate assistance to identifying social engagement opportunities
ree posting of open positions on BRAC’s talent F website
General economic research Access to BRAC’s research team for basic information requests such as company lists and industry profiles
Talent Connect BRAC program to assist companies in identifying potential candidates for key positions
* Website link for Ambassador council and above will include a logo ** Availability determined by investment level
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The Creative Capital Agenda 2011-2015
Prospectus
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www.brac.org