Inclusive Regional Economic
Growth
CEOs for Cities National Meeting
Nashville, TN
November 5, 2014
Robert Weissbourd
© RW Ventures, LLC 2014
Agenda
I. Scope -- Economics
II. The Inclusive Growth Paradox
III. What is “Inclusive Growth”?
IV. Implications for Practice
V. Examples
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Scope – Systems Influencing Inclusive Growth
Why Care
Causes of Exclusion
Fixes
Social
Values
Erosion
Moral Imperative
Political
Governance
Corruption of
Political System
Political Economy
Economic
Prosperity
Returns to Capital
Inclusive Economic
Growth
3
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The Inclusive Growth Paradox
100
80
60
40
20
Profits
0
1940 1950
2013 research.stlouisfed.org
1960 1970 1980 1990
2000 2010 2020
Changes in Share of Total Household Income,
40.0
30.0
.6
.4
Labor Share
.2
120
0
140
-.2
Nonfinancial Corporations Sector
Index 2005=100
Inequity is bad for growth
Wage Growth (1990-2000)
Drivers of growth exacerbate inequity
0
.1
.2
.3
Poverty Rate (1990)
.4
1979 - 2007
1979
2007
INCLUSION
is a
BUSINESS IMPERATIVE
20.0
10.0
0.0
Lowest
Quintile
Second
Quintile
© RW Ventures, LLC 2014
Middle
Quintile
Fourth 81st - 99th Top 1
Quintile Percentiles Percent
Sources: Federal Reserve Bank of St. Louis;
Congressional Budget Office; RW Ventures Analysis
Total Wealth
What is Inclusive Growth?
Distribution of Wealth
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Total Wealth
What is Growth?
Distribution of Wealth
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What is Growth?
Total Wealth
Change in Height (Accumulation)
Distribution of Wealth
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7
Total Wealth
What is Equity?
Distribution of Wealth
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8
What is Equity?
Total Wealth
Change in Slope of Line (Distribution)
Distribution of Wealth
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9
Total Wealth
What is Inclusive Growth?
Distribution of Wealth
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10
What is Inclusive Growth?
Change in Accumulation and Distribution
Total Wealth
How can we enable this growth….
…with a more equitable
distribution?
Distribution of Wealth
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Our Challenge – Aligning Growth and Equity
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Our Challenge – Aligning Growth and Equity
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Our Challenge – Aligning Growth and Equity
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© RW Ventures, LLC 2014
Our Challenge – Aligning Growth and Equity
15
© RW Ventures, LLC 2014
Inclusive Regional Economic Growth
(IREG): Implications for Practice
 “It’s the Economy, ….” Focus on opportunities for value
creation: specific assets, markets and growth drivers
 “Skate to Where the Puck is Going to Be.” It’s the next
economy. Stop putting poor people in old economy jobs
and businesses!
 Inclusion is Not a Separate Economic Practice: it’s an
intentional, integral part of every growth activity
 Operationalize as a Core Design Principle from the start
of (not an afterthought or ancillary) and throughout
(strategies, products, management …) each initiative and
enterprise
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Market Levers Driving Next Economy Growth …
 Move towards compact,
well-connected urban form
Increase
Spatial
Efficiency
 Formal and
informal
economic
networks
 Cross Sector
Initiatives
 Transparency,
openness
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 Functional clustering
 Shift towards SMEs
 More deliberate, open,
flexible, collaborative
Enhance
Regional
Concentrations/
Clusters
Deploy
Human Capital
Aligned with
Job Pools
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Create Effective
Public & Civic
Culture &
Institutions
Develop
InnovationEnabling
Infrastructure
 Mobility and
matching
 Segmented,
continuous,
contextual
training
 Occupationaltechnologyfirm pools
 Cluster restructuring 
new entrepreneurship
and SME opportunities
 Innovation Districts
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… Create Huge Opportunities for Inclusion
Inclusive Clusters: Chicago
FOOD
Industrial land reuse:
Casey-Atlanta
Enhance
Regional
Concentrations/
Clusters
Increase
Spatial
Efficiency
Neighborhood/
Sub-Regional
Business
Planning:
Greater Chatham
Initiative
© RW Ventures, LLC 2014
Deploy
Human Capital
Aligned with
Job Pools
Leverage
Points
for Sustainable
and Inclusive
Prosperity
Create Effective
Public & Civic
Culture &
Institutions
Develop
InnovationEnabling
Infrastructure
Targeted
inclusive training
for emerging
industries:
YearUp
Doer-Maker Space:
Blue1647
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Inclusive Regional Economic
Growth
CEOs for Cities National Meeting
Nashville, TN
November 5, 2014
Robert Weissbourd
© RW Ventures, LLC 2014