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1 GLOBAL URBAN DEVELOPMENT 21 st Century Leapfrog Economic Strategy: Rio Grande do Sul Becomes the Most Sustainable and Innovative Place in Latin America by 2030 Dr. Marc A. Weiss Chairman and CEO, Global Urban Development (GUD), and International Professor of Economics and Business Management, Unisinos 12 th Annual Regional Development Councils (COREDES-RS) Meeting Santa Cruz do Sul, November 12, 2014

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Page 1: 21 Century Leapfrog Economic Strategy: Rio Grande do Sul ... · 1 GLOBAL URBAN DEVELOPMENT 21st Century Leapfrog Economic Strategy: Rio Grande do Sul Becomes the Most Sustainable

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GLOBAL URBAN DEVELOPMENT

21st Century Leapfrog Economic Strategy: Rio Grande do Sul Becomes the

Most Sustainable and Innovative Placein Latin America by 2030

Dr. Marc A. WeissChairman and CEO, Global Urban Development (GUD), andInternational Professor of Economics and Business Management, Unisinos

12th Annual Regional Development Councils (COREDES-RS) MeetingSanta Cruz do Sul, November 12, 2014

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GLOBAL URBAN DEVELOPMENT

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METROPOLITAN ECONOMIC STRATEGY, SUSTAINABLE INNOVATION,AND INCLUSIVE PROSPERITY

• Knowledge and Information-Based

• Technology and Communications-Intensive

• Urban and People-Centered

• Resource Efficient and Sustainable

• Globally Oriented

GLOBAL URBAN DEVELOPMENT

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1. Innovation

2. Urban & Regional Development

3. Sustainability

4. Inclusiveness

GLOBAL URBAN DEVELOPMENT

METROPOLITAN ECONOMIC STRATEGY:4 PILLARS

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Urban Development and Economic Prosperity

GLOBAL URBAN DEVELOPMENT

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Why Urban Areas are More Economically Productive

They combine SPECIALIZATION and DIVERSITY:• the critical mass of skills and resources;• the necessary population density and concentration of market

incomes; • the range of specialized knowledge and institutions; • the wide diversity of vitally needed facilities and services; • and the fully developed physical and human infrastructure that

are prerequisites for new ideas, products and production methods, technological and organizational innovations, and dynamic economic growth and investment.

GLOBAL URBAN DEVELOPMENT

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Investing in Fundamental Assets and Building Dynamic Industry Networks

GLOBAL URBAN DEVELOPMENT

A good economic strategy consists of two key elements:

1) building from strength — investing in the fundamental assets and activities that make people more productive and places more valuable;

2) generating dynamism — promoting modern, globally competitive industry networks that accelerate the pace of innovation and growth.

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PEOPLE are the most vital economic asset in the worldINVESTING IN FUNDAMENTAL ECONOMIC ASSETS:

• Transportation• Infrastructure• Education• Workforce Development• Research• Technology• Markets• Capital• Health• Safety• Environment and Amenities• Culture• Quality of Life

GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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Clinton Administration Metropolitan Economic StrategyNational Policy Initiative

GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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1998 WASHINGTON, DC ECONOMIC PLAN3-PART STRATEGIC FRAMEWORK

STRATEGIC INDUSTRIES• Industry Networks• Growing Businesses and Jobs across the Private Sector

STRATEGIC POPULATIONS• Workforce Development• Attracting and Retaining Residents

STRATEGIC AREAS• Downtown• Neighborhoods

GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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KEY LESSONS FOR ECONOMIC DEVELOPMENT LESSON 1: THINK AND ACT STRATEGICALLYLESSON 2: CREATE COMMON IDENTITY AND SENSE OF PURPOSELESSON 3: INVOLVE EVERYONELESSON 4: TAKE ACTION AND PRODUCE RESULTSLESSON 5: BUILD ON THE FUNDAMENTALSLESSON 6: FOCUS ON THE BIG RESOURCESLESSON 7: BE YOURSELFLESSON 8: COLLABORATE WITH AND SUPPORT THE PRIVATE SECTORLESSON 9: BE COMPREHENSIVE – LINK GROWTH OF BUSINESSES,

JOBS, AND INCOMES TO PEOPLE AND PLACESLESSON 10: CONNECT TO THE DYNAMICS OF THE REGIONAL ECONOMYLESSON 11: WORK WITH AND STRENGTHEN CIVIL SOCIETYLESSON 12: IMPROVE QUALITY OF LIFE – SUSTAINABILITY AND

INCLUSIVENESS

GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

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The Four Greens• Green Savings — cutting costs for businesses, families, communities,

and governments by efficiently using renewable resources and by reducing and reusing waste

• Green Opportunities — growing jobs and incomes through business development and expanding markets for resource efficiency, sustainability, and clean technologies

• Green Talent — investing in fundamental assets such as education, research, technological innovation, and modern entrepreneurial and workforce skills, because people are now the world’s most vital green economic resource

• Green Places — establishing sustainable transportation and infrastructure, and protecting and enhancing the natural and built environment, to create more attractive, livable, healthy, vibrant, prosperous, productive, and resource-efficient areas and communities.

GLOBAL URBAN DEVELOPMENT

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UN WUF session

GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

Advanced Manufacturing and Sustainable Innovation:The Third Wave of Industrial and Urban Economic Growth

for Minas Gerais

A Report to the Federation of Industries of Minas Gerais (FIEMG)by Global Urban Development (GUD)

October 2012

Executive Summary

Minas Gerais has succeeded in its first century-long wave of economic growththrough industrialization and urbanization, made great strides over the pastdecade in the second wave of economic growth through rising incomes andgrowing consumer demand, and is now poised for a third wave of globallycompetitive prosperity and productivity driven by Sustainable Innovation. MinasGerais already has developed several new Sustainable Innovation Pipelines, frombiomedical to information technology. The next great surge for the Third Wave,the newest and most dynamic and productive Sustainable Innovation Pipeline forMinas Gerais, will be in Advanced Manufacturing. Brazil can compete directlywith Advanced Manufacturing public policies and private companies throughoutthe world; and Minas Gerais can become one of Brazil’s national leaders in thisrapidly growing industrial technology field.

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

Local and Regional Economic Development Opportunities Related to the Implementation of the Sao Jose do Norte EBR Shipyard

in Rio Grande do Sul

Report by Global Urban Development (GUD) to M. Stortti Business Consulting Group, Federation of Industries of Rio Grande do Sul (FIERGS),

and Rio Grande do Sul Development Agency (AGDI)

December 2012

Introduction

Global Urban Development (GUD) was commissioned to supplement the M. Stortti BusinessConsulting Group report for FIERGS, Evaluation of the Regional and Local Impacts due tothe Implementation of the Sao Jose do Norte EBR Shipyard. The Stortti team’s detailedevaluation identifies many important economic, physical, social, and environmental impacts,and proposes policy guidelines and practical solutions addressing key challenges related totransportation, infrastructure, services, job training, housing, health, construction,environment, and other major issues. Their evaluation takes on wider significance in thecontext of M. Stortti’s comprehensive statewide report, Basic Guidelines of an IndustrialDevelopment Plan for the Ocean Industry in Rio Grande do Sul.

As an additional contribution to the Stortti team’s evaluation and recommendations, GUD’sperspective is to review and analyze potential opportunities to generate broad-based anddiversified economic, business, employment, and income growth, primarily in Sao Jose doNorte but also regionally, that can obtain strategic benefit from the major investments andnew jobs that will come from building and operating the EBR Shipyard.

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GLOBAL URBAN DEVELOPMENT

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Leapfrog Economic Strategy: Most Sustainable and Innovative Place in Latin America by 2030

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Leapfrog Economic Strategy: Regional Focus

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Leapfrog Economic Strategy: Regional Development Councils (COREDES-RS)

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GLOBAL URBAN DEVELOPMENT

RIO GRANDE DO SUL FUNDAMENTAL ASSETS• European Immigrant Craft Skills• Independent Businesses and Family Farming• Gaucho History and Traditions• Educated Middle-Income Population• Urban-Industrial Heritage• Higher Education and Research Institutions• Energy and Infrastructure, including Ports and Waterways• Quality Health Care• High Ranking on Human Development Index (HDI) • Collaborative Business Support Organizations • Workforce Development System• Participatory Governance and Citizenship• Creativity and Innovation-Oriented• Pro-Sustainability• Vibrant Culture and Quality of Life• Temperate Seasonal Climate• Fertile Land and relatively Abundant Water• Strategic Location (Mercosul)

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul’s Top Industry Rankings in Brazil

FIRSTAgricultural Machinery/EquipmentAutomation and ControlsBiodieselLeather and FootwearRiceTransportation EquipmentWine

SECONDBeveragesChemical ProductsElectrical-Electronic ProductsFurnitureIndustrial Machinery/EquipmentMetal-Mechanical ProductsNaval and OffshorePlastics and Rubber

THIRDWind Energy

FOURTHFood ProcessingMotor Vehicles

Source: AGDI, 2013 RS Industrial Policy

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Technology Businesses

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GLOBAL URBAN DEVELOPMENT

Rio Grande do SulIllustrative Economic Geography

Source: AGDI, 2012

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Industry Networks (APLs) and Productive Innovation Extension Centers (NEPIs)

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GLOBAL URBAN DEVELOPMENT

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

Precision Production, Smart Machines, and Digital Technology

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GLOBAL URBAN DEVELOPMENT

Food Production Value ChainRIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGY

KEY DRIVER:

Global Food Demand Will Increase 50% by 2030

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GLOBAL URBAN DEVELOPMENT

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

Sustainable Innovation in Precision Agriculture and Biotechnology for

Food, Health, and Environment

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GLOBAL URBAN DEVELOPMENT

Strengthening Value Chains• Diversifying Products and Services• Adding Value to Production• Expanding Local and Regional Supplier

and Distributor Networks

Rio Grande do Sul Leapfrog Economic Strategy

KEY DRIVER:

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Advanced ManufacturingSustainable Innovation Technologies

GLOBAL URBAN DEVELOPMENT

• Advanced Sensing, Measurement, and Process Control• Advanced Materials Design, Synthesis, and Processing• Visualization, Informatics, and Digital Manufacturing Technologies• Sustainable Manufacturing• Nano-manufacturing• Flexible Electronics Manufacturing• Bio-manufacturing and Bio-informatics• Additive Manufacturing (including 3-D Printing)• Advanced Manufacturing and Testing Equipment• Industrial Robotics• Advanced Forming and Joining Technologies

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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Advanced ManufacturingSustainable Innovation Centers

GLOBAL URBAN DEVELOPMENT

America Makes: US National Additive Manufacturing Innovation Institute, Youngstown, Ohio

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GLOBAL URBAN DEVELOPMENT

Renewable Energyand Clean Technologies

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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SUSTAINABLE INNOVATIONBUSINESS ADVISORY SERVICES

GLOBAL URBAN DEVELOPMENT

Participating small- and medium-sized businesses save $350,000 per year (on average)

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GLOBAL URBAN DEVELOPMENT

Precision Engineering and Naval/Offshore Industry Value Chain

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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GLOBAL URBAN DEVELOPMENT

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

Sustainable Innovation in Chemicals, Polymers, and New Materials

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GLOBAL URBAN DEVELOPMENT

Global Branding and Marketing• Fashion and Design• Culture and Creativity• Arts and Tourism• Sports and Entertainment

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Leapfrog Economic Strategy

KEY DRIVER:International Support

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GLOBAL URBAN DEVELOPMENT

HIGHER EDUCATION, RESEARCH, AND WORKFORCE DEVELOPMENT

SENAI Centro Tecnologico de Mecatronica, Caxias do Sul

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Universities

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Technology Poles

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GLOBAL URBAN DEVELOPMENT

Operating in 2014 (8)

Being implemented (8)

Rio Grande do Sul Technology Parks

RS Technology Parks

Source: SEPLAG and GUD

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Advanced ManufacturingSustainable Innovation Technology Parks

GLOBAL URBAN DEVELOPMENT

UK University of Sheffield Advanced Manufacturing Park

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GLOBAL URBAN DEVELOPMENT

ENTREPRENEURSHIP AND STARTUPS

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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GLOBAL URBAN DEVELOPMENT

Technology Business Incubators Operating in 2014 (30)

; GUD – 02/2015

Rio Grande do Sul Technology Business Incubators

RS Technology Incubators

Source: SEPLAG and GUD

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GLOBAL URBAN DEVELOPMENT

MaRS Discovery District, Toronto, Canada

SUSTAINABLE INNOVATION BUSINESS ACCELERATORS

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GLOBAL URBAN DEVELOPMENT

INFRASTRUCTURE, TRANSPORTATION, AND LOGISTICS

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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GLOBAL URBAN DEVELOPMENT

Rio Grande do Sul Transportation and Logistics Infrastructure

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GLOBAL URBAN DEVELOPMENT

NoMa Metro Station

No

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GLOBAL URBAN DEVELOPMENT

Financing NoMa Metro Station

• Private Sector: $35 million

• District of Columbia Government: $44 million

• Federal Government: $31 million

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GLOBAL URBAN DEVELOPMENT

Financing NoMa: New York Avenue Metro Station Corporation

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GLOBAL URBAN DEVELOPMENT

US Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)

Located Next to NoMa Metro Station

NoMa Metro Station andCourtyard Marriott Hotel

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GLOBAL URBAN DEVELOPMENT

SUSTAINABLE INNOVATION ZONES

RIO GRANDE DO SUL LEAPFROG ECONOMIC STRATEGYKEY DRIVER:

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GLOBAL URBAN DEVELOPMENT

SUSTAINABLE INNOVATION ZONES

London

Freiburg

Barcelona

East London

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GLOBAL URBAN DEVELOPMENT

SUSTAINABLE INNOVATION ZONES

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GLOBAL URBAN DEVELOPMENT

RS Universities as Potential Sustainable Innovation Zones

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GLOBAL URBAN DEVELOPMENT

Operating in 2014 (8)

Being implemented (8)

RS Technology Parks

Source: SEPLAG and GUD

RS Technology Parks as Potential Sustainable Innovation Zones

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GLOBAL URBAN DEVELOPMENT

Technology Business Incubators Operating in 2014 (30)

; GUD – 02/2015

RS Technology Incubators

Source: SEPLAG and GUD

RS Technology Incubators as Potential Sustainable Innovation Zones

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SUSTAINABLE INNOVATION ZONES

GLOBAL URBAN DEVELOPMENT

EcoDistricts

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GLOBAL URBAN DEVELOPMENT

DowntownDC Business Improvement District

SUSTAINABLE INNOVATION ZONE MANAGEMENT

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GLOBAL URBAN DEVELOPMENT

SUSTAINABLE INNOVATION ZONES

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GLOBAL URBAN DEVELOPMENT

World Bank, Doing Business 2015

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GLOBAL URBAN DEVELOPMENT

34. Colombia*35. Peru*

39. Mexico*

41. Chile*

52. Panama*

1. Singapore2. New Zealand3. Hong Kong SAR,

China4. Denmark5. Korea, Rep.

*Top ranked Latin American countries

Top 5 countries worldwide

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World Economic Forum, The Global Competitiveness Report 2014-2015

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GLOBAL URBAN DEVELOPMENT

World Economic Forum, The Global Competitiveness Report 2014-2015

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GLOBAL URBAN DEVELOPMENT

World Economic Forum, The Global Competitiveness Report 2014-2015

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For more information,

please visit the GUD website:www.globalurban.org

email me at:[email protected]

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