UEDA Annual Summit Opening Remarks and Welcome, Keynote Presentation by William Fulton of the Kinder Institute for Urban Research, Rice University. Followed by the University President's Panel featuring Robert Behunin, Joseph Castro, Randy Grissom, and Mary Walshok.
13. Mike Dozier
Summit Committee Chair,
University Economic Development Association
14. William Fulton, AICP
Director, Kinder Institute for Urban Research,
Rice University
15. Making Economic Development
Work for Universities and
Communities
William Fulton
Director Rice U. Kinder Institute
Former Mayor, Ventura CA
Former Director of Planning
and Economic Development, San Diego, CA
16. So here’s a story about community
economic development and
universities
21. Then Versus Now
• Closed v. Open Innovation
• Separation of Academia and Industry
• Close Links To Surrounding Manufacturing
Region
22. What does this mean?
• It’s obvious what research
universities do for the economic
development of cities and regions.
• It’s less clear what cities and regions do
for the health of research universities
25. The founders of a manufacturing
empire that survives as a network city
26. here are some of the things you need to
create in order to build enduring prosperity
skilled labor force
quality of place
Infrastructure
educational
opportunities
critical mass of
innovation and
entrepreneurship
physical facilities
endowment of wealth
27. Cities are in a ferocious
competition
over
place
(both geographical location and high-quality,
high-amenity “place”)
28. Universities are
also
in a ferocious competition
over
place
(both geographical location and high-quality,
high-amenity “place”)
30. If you’re Cornell, you’ve got a problem
-- Do you solve this
problem by
“virtually
moving”
Cornell?
-- Or by investing
in the region
where it is
embedded?
31. The old model of place: Research
Triangle Park’s suburban campus
32. The new model of place: North
Carolina State’s walkable innovation
campus
35. Making Economic Development
Work for Universities and
Communities
William Fulton
Director Rice U. Kinder Institute
Former Mayor, Ventura CA
Former Director of Planning
and Economic Development, San Diego, CA
36.
37. Glenda Humiston
State Director,
California Rural Development Office,
U.S. Department of Agriculture
I use the phrase “stick” because the real challenge is for prosperity to be enduring, not fleeting. There used to be a saying that economic development was “buying jobs” – using money to subsidize companies that create jobs. But nowadays it’s more like “renting jobs”
Now, as a contrast, let’s take a look at a different factory. This is a photograph of the Columbian Rope Factory in my home town, Auburn, New York, which was in operation from 1903 to sometime in the 1970s. My grandfather was the head of the R&D lab there. Today he would be considered a critical component of the innovation economy. The plant was a beautiful building – it was rectangular with a courtyard in the middle, and there was one rope line that circled the entire factory while the rope was being manufactured. The owners sold the company in 1980 and it is now part of another rope company and located in Guntown, Mississippi, near Memphis. The plant itself – an architectural masterpiece that would make a great outlet mall or something today – was torn down and replaced with a shopping center so sad and tired that it is about to be torn down itself.
So what did Auburn get in the end?
Now, as a contrast, let’s take a look at a different factory. This is a photograph of the Columbian Rope Factory in my home town, Auburn, New York, which was in operation from 1903 to sometime in the 1970s. My grandfather was the head of the R&D lab there. Today he would be considered a critical component of the innovation economy. The plant was a beautiful building – it was rectangular with a courtyard in the middle, and there was one rope line that circled the entire factory while the rope was being manufactured. The owners sold the company in 1980 and it is now part of another rope company and located in Guntown, Mississippi, near Memphis. The plant itself – an architectural masterpiece that would make a great outlet mall or something today – was torn down and replaced with a shopping center so sad and tired that it is about to be torn down itself.
So what did Auburn get in the end?
Now, as a contrast, let’s take a look at a different factory. This is a photograph of the Columbian Rope Factory in my home town, Auburn, New York, which was in operation from 1903 to sometime in the 1970s. My grandfather was the head of the R&D lab there. Today he would be considered a critical component of the innovation economy. The plant was a beautiful building – it was rectangular with a courtyard in the middle, and there was one rope line that circled the entire factory while the rope was being manufactured. The owners sold the company in 1980 and it is now part of another rope company and located in Guntown, Mississippi, near Memphis. The plant itself – an architectural masterpiece that would make a great outlet mall or something today – was torn down and replaced with a shopping center so sad and tired that it is about to be torn down itself.
So what did Auburn get in the end?
In the smokestack days, cities were like factories. They were linear and functional in nature. Functions were segregated. “Places” were very segregated functionally, just as they were on a factory line.
Now it’s completely different. Most people work for small organizations, and those organizations must interact with each other all the time. The richer this interaction, the better for economic growth. Cities must accommodate this change, and serve not as assembly lines but as networks.
It will be made by one of these guys; or the modern equivalents of these guys (who, admittedly, wear ‘business-casual’ and not suits.)
These are the founders of Silicon Valley – the “Traitorious 8” who left Shockley Semi-conductor in 1957 to form Fairchild Semiconductor. Their names would be familiar to you. They invented Silicon Valley.
And here’s the funny thing about Silicon Valley: It should be hollowed out by now. After all, 40 to 50 years ago, what did they do in Silicon Valley. They manufactured computer equipment on assembly lines. By soldering them and things like that.
Think about it: When Silicon Valley first got its name, it was a factory town where assembly workers manufactured computer parts. Now it’s the place where Facebook and Google are reinventing our lives and the world. What do those two things have to do with each other? How did this happen???
The answer, of course, is that Silicon Valley is not an economic colony. It is a brain center. Over time, Stanford has become the leading academic institution for high-tech brains in the world. And generation after generation of smart Stanford kids have come out of academia to reinvent Silicon Valley. As they’ve done so, they’ve created a remarkable virtuous cycle – the more successful Silicon Valley becomes, the more the billionaires give to Stanford, and the more it has the resources to generate more geniuses. Last year Stanford raised a billion dollars – more money than any other university in America, including Harvard. And with each new reinvention of Silicon Valley, the other components required for the next reinvention grow even stronger – the labor pool, venture capital, intellectual horsepower like intellectual property lawers, and on and on and on.
Steve Jobs didn’t go to Stanford. But he lived in the center of the high-tech world and just sort of picked it up, the way kids who grow in LA wind up being film directors.
In other words, everything they’ve created in Silicon Valley has helped build the foundation for the next thing.
In Chandler, they manufacture chips. This doesn’t lead to anything.
I use the phrase “stick” because the real challenge is for prosperity to be enduring, not fleeting. There used to be a saying that economic development was “buying jobs” – using money to subsidize companies that create jobs. But nowadays it’s more like “renting jobs”