‘Garage’ focus on progress toward knowledge economy

When Rob Atkinson says that there’s room for improvement in efforts to grow the local economy, as he shares Rhode Island’s ranking in his organization’s “New Economy Index” at the next mini-Garage on Oct. 23, he won’t be telling the audience anything they don’t know.
Atkinson, who lived and worked in Rhode Island when he was executive director of the now-defunct Rhode Island Economic Policy Council, is president of the Information Technology & Innovation Foundation in Washington, D.C. Every two or three years, the foundation produces an index for all 50 states that measures, through 25 indicators called “success factors,” how well-positioned states are to grow their economies.
In 2014, with Massachusetts ranked first and Connecticut listed eighth, Rhode Island’s showing of 19th indicates the state has some work to do, he said in a phone interview with Providence Business News.
He will also, however, be providing suggestions at the upcoming Greater Providence Chamber of Commerce forum on what Rhode Island can do to beef up its numbers, in a segment called the Annual Knowledge Economy Community Forum.
“It’s one of those simple equations,” he said. “You want to have a really good business climate, which means not that much cost put on business, and at the same time, [provide] really robust public services. Those are sort of opposite, right? So finding that sweet spot is really important. States like Massachusetts and Delaware do pretty good jobs with that.”
The rankings are about economic success factors, not actual performance such as the growth of jobs or unemployment rates, Atkinson said.
The conclusion of the report is prescriptive, and states: “Successful strategies will incentivize, among other things: having a workforce and jobs based on higher skills; strong global connections; dynamic firms, including strong, high-growth startups, industries, and individuals embracing digital technologies; and strong capabilities in technological innovation.” Getting there in Rhode Island will be part of what Atkinson shares.
The mini-Garage, held each fall and followed by a larger event each spring, is scheduled from 3-7 p.m. and will be held at Hasbro Inc., One Hasbro Place, in downtown Providence.
There will a panel showcasing companies that are developing strategies and finding solutions to the state’s economic challenges, followed by networking.
Firms on the panel include: Propel, Splitwise, Swipely, Lincoln Fine Ingredients, Dell, Hasbro, On Semiconductor and General Dynamics Electric Boat, said Laurie White, president of the Chamber, which puts the programs together.
White says the panel participants will share “what has led them to be in fast-growth mode, mistakes made along the way, lessons to share, biggest aha moments and what put them on this trajectory. Companies like to learn from one another and this new economy [index] is a national tool. People pay attention to it. It is important Rhode Island fares well and as we do, the economy will become more resilient.”
Despite the ranking of 19th, Rhode Island is doing some things right, the report finds. The state is the top mover in high-wage traded services; second top mover in fast-growing firms and in high-tech jobs; third top mover in workforce education, and fourth top mover in moving toward a so called “clean energy” economy.
The index also shows Rhode Island ranks third in nonindustry investment in research and development, and fourth in digital economy, but 18th in knowledge jobs. Other states, that are putting major investments behind knowledge-based economies tend to be the ones that succeed over time, Atkinson said. High unemployment, 7.7 percent in August, is still one of the state’s biggest challenges, Atkinson acknowledged.
“You have an economy that’s just not expanding very rapidly to accommodate people who want work,” he said. “So, if you had more venture-capital spending, high-growth startups growing rapidly, research and development spending by companies and exporting, Rhode Island would be in better shape.”
At 19th in the rankings, White says there are pockets of strength the state can build on.
“The fact we’re continuing to struggle means much more significant emphasis must be placed on workforce development, high-growth startups and industries [with] strong global connections.”
Rhode Island has other advantages that it has sought to capitalize on and needs to continue to support, such as the colleges and universities that enable Rhode Islanders to compete globally, White said.
The first Garage, held in May 2013, focused on consumer products, health/wellness, food-science innovation and life sciences/medical technology. The first mini-Garage in October 2013 highlighted the “intersection” of design, interactivity and manufacturing. This past spring, the Garage covered insights shared from the state’s growth companies.
At this event, Atkinson will have some words of inspiration for participants.
“This isn’t your father’s Rhode Island anymore,” he said. “It’s intense, intense competition. Unless we make changes, the next 10 years are going to look pretty much like the last 10. … Nobody wants that.” •

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