A-New-Economic-Agenda-for-Nevada-Summary-Report

Photo Courtesy of Sydney Martinez/TravelNevada A New Economic Agenda for Nevada: Summary Report December 21, 2018 Prepared for: Nevada Governor’s Office of Economic Development Prepared by: Roland Stephen, Director Center for Innovation Strategy and Policy SRI International Center for Innovation Strategy and Policy Summary Report Nevada’s economic output and level of unemployment have recovered completely from the Great Recession Nevada added 285,000 jobs since 2010 Nevada’s economy has become more diverse since 2011, but high-wage jobs in new sectors still need to be effectively targeted Project Background The Great Recession hit Nevada harder than almost any other state To meet this challenge, the Governor of Nevada asked SRI International (SRI) and the Brookings Institution (Brookings) to conduct a rigorous, objective analysis of Nevada’s challenges and to identify key opportunities for economic development and job creation The SRI/Brookings team concluded that Nevada needed to diversify its economy, upgrade the economic development system, pursue smart strategies adapted to each region, and emphasize innovation and new enterprise Seven years later, the Governor’s Office of Economic Development (GOED) asked SRI’s Center for Innovation Strategy and Policy to revisit Nevada’s economic development agenda This report represents SRI’s findings and recommendations It includes a scorecard on progress, an analysis of Nevada’s current assets (including industry base, workforce mix, innovation ecosystem, and economic development policies and programs), and a new set of strategic directions for the future Report Methodology A New Economic Agenda for Nevada: Summary Report December 2018 Overview The SRI team’s analysis and findings began with a comprehensive overview and scorecard for the development of Nevada’s economy from 2010 to 2018, including Nevada’s three metropolitan areas and six micropolitan areas (smaller towns with 10,000 to 50,000 people) SRI then reviewed Nevada’s industry base and talent and workforce mix using a comprehensive dataset that integrates economic and workforce data SRI also conducted an analysis of the state’s innovation and entrepreneurship ecosystem These analyses, combined with stakeholder interviews, formed the basis for an asset map for the state and its regions Based on this map, the research team analyzed the strengths, weaknesses, opportunities, and threats (SWOT) for the state, and formulated strategies and actions for the state based on what the analysis revealed Overview & Scorecard Nevada’s economic output and level of unemployment have recovered completely from the Great Recession Nevada ranks in the middle of its peers in terms of overall recovery from the Great Recession, but with signs of characteristic economic dynamism associated with increased population and job growth Peer State Rankings State Arizona Colorado Nevada New Mexico Oregon Utah Percent Change in GDP 2011-2017 Percent Change in Population 2011-2017 Decline in Unemployment Rate 2011-2017 Workforce Participation Rate 2017 Nevada’s two largest metropolitan regions (Reno-Sparks and Las Vegas) grew at an average annual rate of 2.56% and 2.15%, respectively, between 2011 and 2017 Boise, Phoenix, Sacramento, and Salt Lake City grew at a very similar rate to Las Vegas and Reno-Sparks, with only Denver growing significantly faster At an aggregate level, the recovery among large metropolitan areas in the Mountain West and Southwest looks quite similar A New Economic Agenda for Nevada: Summary Report December 2018 Peer Metropolitan Area Rankings Metropolitan Area Boise City, ID Carson City, NV Colorado Springs, CO Denver Aurora Lakewood, CO Las Vegas Paradise, NV Phoenix Mesa Scottsdale, AZ Portland Vancouver Hillsboro, OR-WA Reno-Sparks, NV Sacramento Roseville Arden Arcade, CA Salt Lake City, UT Santa Fe, NM Percent Change in GDP 2011-2017 10 Percent Change in Population 2011-2017 11 Decline in Unemployment Rate 2011-2017 Workforce Participation Rate 2017 10 7 8 3 11 11 10 10 11 In the years following the Great Recession, most of Nevada’s micropolitan regions have experienced a complete recovery with approximately the same level of unemployment that they had in 2007 Relative to other micropolitan regions in the area, Nevada’s micropolitan areas were hit harder by the Great Recession but also recovered better than other regions Stakeholder Interviews SRI conducted over 140 interviews with key stakeholders in community and economic development, business and industry, academic research, and workforce development across the state to enrich the team’s understanding of Nevada’s assets All interviews were conducted in person (either individually or as part of a stakeholder engagement session) or over the phone Support for these interviews was provided by GOED and each of the regional development authorities (RDAs) throughout the state A New Economic Agenda for Nevada: Summary Report SRI conducted 140 stakeholder interviews for this report December 2018 Targeting Specific Industries, Occupations, and Skills Nevada has begun the transition away from its dependence on hospitality, gaming, and entertainment While these activities will continue to remain important, the figure below shows how employment in other sectors has grown much more quickly in other, targeted sectors over the course of the recovery from the recession Percent Change in Number of Jobs for Select Sectors in Nevada’s Economy Between 2011 and 2017 Source: EMSI However, while Nevada’s economy has been successful in diversifying broadly (away from concentration in tourism, gaming, and entertainment, for example), diversification may still be concentrated in lowerwage sub-sectors Nevada must provide opportunities for skill development and workforce training for workers with lower levels of formal educational credentials or education This is important to ensure that these often enterprising and hardworking workers are not discouraged from participating in the labor force and have opportunities for growth A New Economic Agenda for Nevada: Summary Report December 2018 Nevada’s Innovation Ecosystem Nevada’s enterprising spirit, the fruit of its historically high level of in-migration, remains strong However, the state’s innovation system is characterized by a general lack of coordination and alignment among the various actors and programs that support entrepreneurship statewide University R&D Outputs, 2017 (ordered by total research expenditures) Source: Association of University Technology Managers (AUTM) Undergraduates Postgraduates Total Research Expenditures Total Licenses Executed Gross Licensing Income Invention Disclosures Patent Applications Startups Initiated Univ of Arizona 35,123 9,708 $622,200,000 105 $2,703,261 261 139 15 Univ of ColoradoBoulder 27,665 5,581 $471,909,649 48 $2,117,204 120 215 Univ of Utah 23,789 8,071 $380,295,000 42 $8,260,475 196 94 10 Colorado State 25,688 7,370 $338,202,049 37 $3,189,811 101 41 Univ of New Mexico 19,147 7,031 $246,595,239 58 $1,335,335 114 68 12 Univ of Oregon 19,351 3,629 $76,142,752 55 $8,853,587 28 21,657 3,025 $75,663,944 $320,209 21 25,282 5,345 $66,285,000 $292,526 57 20 University of Nevada, Reno (UNR) University of Nevada, Las Vegas (UNLV) A New Economic Agenda for Nevada: Summary Report December 2018 Asset Map: Nevada A New Economic Agenda for Nevada: Summary Report December 2018 Nevada’s Regions Nevada’s regions are each unique and have different assets Las Vegas is internationally known for its highquality tourism, gaming, and entertainment industry Reno-Sparks has a broad array of outdoor recreation opportunities and has become home to a number of advanced manufacturing companies in recent years Though small in terms of population, the micropolitan areas that are found throughout the state of Nevada play important roles in the state’s economy Smaller towns like Elko and Winnemucca have benefited from long-standing, well-established industries such as mining The full report provides a detailed account of assets for the metropolitan and micropolitan regions in Nevada A New Economic Agenda for Nevada: Summary Report December 2018 SWOT Analysis A SWOT analysis enables organizations to assess their current capabilities and understand how to work with them in order to navigate future uncertainty This powerful analysis serves as the basis for strategy by highlighting sources of strength and weakness that may be addressed, opportunities to be realized, and dangers and difficulties to be avoided The SWOT analysis summarized below provides the basis upon which the SRI team formulated strategies for the future A New Economic Agenda for Nevada: Summary Report December 2018 Strategic Directions The SRI team has identified three broad strategic directions—collaborate, innovate, and refine—that address the challenges identified in this report In addition, SRI has identified a set of recommendations for the renewal of the Nevada System of Higher Education (NSHE) More details on resources required (cost and timeline), potential collaborators, and sample milestones and metrics can be found in the Strategic Directions section of the full report A New Economic Agenda for Nevada: Summary Report December 2018 10 A New Economic Agenda for Nevada: Summary Report December 2018 11 A New Economic Agenda for Nevada: Summary Report December 2018 12 A New Economic Agenda for Nevada: Summary Report December 2018 13 SRI is one of the world’s most diverse, independent, non-profit research and development (R&D) organizations, working on some of the most important global problems Its research and innovations have led to new industries and products that affect people’s lives every day—from the computer mouse and interactive computing to medical ultrasound, cancer drugs, and much more SRI's Center for Innovation Strategy and Policy helps organizations, regions, and countries achieve 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