Green Space for the Seoul

It’s 5:37 am Wednesday morning. I have never voluntarily been up this early, but that’s what happens when you drag your body half way around the world I suppose. So since I am awake, I figured I would take this opportunity to report back on my first couple of days in Seoul.

So far, our team has only been visiting cultural sites. The vocational visits begin next week, but that hasn’t stopped us from already learning some about green design in Korea. It’s hard to miss, really. Driving into Seoul from the airport, one of the first impressions to strike us was the “lushness” of the city. Residential development in Seoul looks mostly like Le Corbusier’s towers in the park – groups of a half-dozen high-rise towers, often brutal in their design, but surrounded by parks.

Chelsea from Fourth Economy Travels to Korea

This Friday I will be taking my maiden voyage across the Atlantic Ocean – heading to South Korea for a month of cultural and vocational learning. The trip is sponsored by the Rotary Group Study Exchange (GSE) program, which provides opportunities for young professionals to increase their knowledge of and connections to the global workplace. The Pittsburgh Rotary District 7300 is sponsoring our trip to South Korea, with a focus on green building and sustainable development.

Fourth Economy’s Universe

Hello friends and colleagues,

We’ve been so busy that we skipped a month on our e-newsletter, I am sure you filled your time with other pursuits – I’ve seen many of you playing Words with Friends.

We wanted to take a bit of space in this newsletter to provide an update on Fourth Economy Consulting. We are on a steady growth pace since our launch in September 2010 and interest in working with us continues to reinforce that we have struck a chord. We are honored and at times humbled by the reception but please keep it going.

The Upside of Downturns

No one will deny that the American and global economies have been in an extended slump.  The question is what will lead us out of the doldrums?  Right now the big argument seems to be between advocates of clean energy (solar, wind, biomass) and legacy energy (especially coal, oil and natural gas).  In certain parts of the country, legacy energy is having an immediate impact, while clean energy remains for the time being a potential boon for some future economy.

National Fourth Economy Community Index Lists Top 10 Small-Sized Counties for 2012

Fourth Economy Consulting has launched a new index, listing top counties based on key attributes and sizes from across the nation.

PITTSBURGH, PA – The “Fourth Economy Community (FEC) Index” was released today listing the nation’s top 10 small-sized Fourth Economy Communities. This category features counties with between 100,000 to 150,000 residents that are ideally positioned to attract modern investment and managed economic growth.

“The ‘fourth economy’ defines our nation’s current economy, reflecting a combination of the previous three: agrarian, industrial, and technological,” said Rich Overmoyer, Fourth Economy President and CEO. “This new index is intended to serve as a dashboard for community stakeholders to gauge their capacity to attract and retain modern investment.”

Translating Hashtag Activism into Sustainable Communities

Last week, New York Times columnist David Carr wrote about the possibilities and limits of hashtag activism. On one hand, the ability to like and tweet about important civic issues allows people to be “engaged” at a very superficial level; but on the other hand, after recent successes in drawing attention to issues such as Susan G. Komen’s policy change regarding Planned Parenthood, Joseph Kony and the Lord’s Resistance Army, and the death of Trayvon Martin, there’s no denying the power of this new form of activism. Planners, local governments, and civic organizations are taking notice.

New online and social media tools are emerging that allow citizens to learn about and get involved in what’s happening in their communities. This trend holds huge potential for the efforts of local planning and development organizations, which have caused serious social and economic damage in the past due to a failure to truly engage citizens. The use of online and social media tools allows for easier, more creative, and broader engagement. Of course, they are not a silver bullet – it’s still up to planners and public officials to use the feedback they gather through those tools.

The Art of Sophistication: Linking Universities and Towns

In the fourth economy, the world’s universities will anchor far-reaching and interconnected communities that seamlessly blend ideation and commerce. These communities will be simultaneously virtual and place-based. In anticipation of this evolution the most forward looking institutions are working to understand how they can control or influence the economics of the marketplace to create thriving campus edge commercial environments. These environments create a neutral space for the life of the university to engage with the world in the most practical sense of the term.

This is nothing new, to be honest. The monastic system both in Europe and Asia produced this creative mixing immediately beyond the walls of the institution where the laity would be taught and blessed in exchange for tithes or food. In the U.S. only a handful of institutions (Harvard Square, Morningside Heights, and Charlottesville come to mind) created and preserved a truly dynamic physical place where the academy mixes with the populous. However, leadership at a growing number of universities and colleges are coming to believe that creating something in this spirit is critical to the success of the institution, as measured by their ability to attract and retain world-class faculty and students.

Where or What is Your “Third Place”?

The notion of the “Third Place” was first popularized by Ray Oldenburg in his 1991 book entitled, The Great Good PlaceOldenburg advanced the notion that a “First Place” refers to your home, the “Second Place” to your work location, and “Third Places” are those spaces or places outside of home and work that add value to your daily live-work experience.  They can include parks, pubs, recreation spots, main streets, and civic spaces where people can gather and interact.

Oldenburg wrote that Third Places “host the regular, voluntary, informal, and happily anticipated gatherings of individuals beyond the realms of home and work.”  Beyond that definition, I suggest Third Places can also encompass educational institutions, innovation system assets or other “go to” resources you appreciate, utilize and promote.

If you don’t know where or what your “Third Place” may be, imagine that potential new neighbor choosing between community A and B asks you, “What is so special about your community?” Your response is?

Innovation Networks and Economic Growth

Here at Fourth Economy, we’re always looking for opportunities to identify and build upon local assets. This often takes the form of bringing together various stakeholders to advance specific technologies and sectors. We’re currently working on building more robust sectors around both energy and water here in the greater Pittsburgh region and beyond. Even though this work is challenging, a dense network of universities, technology intermediaries, economic development partners, and private sector businesses aids our work. But what happens when you leave the “big city” and those players are spread further across a region?

PA Governor’s Proposed Budget Cuts Millions from Economic Development Programs

Today in Harrisburg, Governor Corbett revealed his proposal for the 2012-2013 budget. We wanted to provide a quick summary and high-level observations to members of the economic development community. The bottom line is that there is little to be excited about if you work in the economic development or related communities in Pennsylvania.

First, this budget continues and in some cases adds to the cuts that have been faced by almost all of the Department of Community and Economic Development programs. The chart below illustrates the impact over the past 12 budget cycles on the economic development initiatives in the Commonwealth.

 

Commonwealth of PA Economic Development Funding

Source: Fourth Economy Consulting

 

This year’s budget further reduces economic development spending by $3.6 million from 2012-2013 figures.

This is a total of $60.9 million from the end of the previous administration with several programs consolidated or eliminated in the past two years. The chart provided also breaks out Commonwealth Financing Debt service as this funding is going to pay off previous commitments rather than being available for new investments.

The larger cuts are in the areas of Pennsylvania First (decreased by $2.5 million) and the Marketing to Attract Tourists (decreased by $1 million).

Programs such as the Ben Franklin Technology Development Authority which supports the Ben Franklin Technology Partners ($14.5 million), the Life Science Greenhouses ($3 million), and the newer Discovered and Developed in PA program ($9.9 million) are level funded in the Governor’s proposal. It remains to be seen if the Corbett administration will continue to support the Keystone Innovation Zone program. Previously those funds were provided as part of the BFTDA funding but in the past year the appropriation went to support the regional Ben Franklin Technology Partners.

One major blow to the state’s colleges and research universities that are performing health research is a redirection of all funding for the Health Research Priorities otherwise known as the Commonwealth Universal Research Enhancement program (CURE). Last year the CURE program supported $55.8 million in research funding and if the Governor’s proposal passes they will received no funding.

The budget negotiation process begins today and the Governor has made his recommendations. We will keep you posted about the conversations. If you have any questions or information to share please feel free to ask and comment.