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Executive
Overview
CONNECT SI
Southern Illinois: Garden of the Gods
Readiness Assessment
Executive Overview
December 14, 2007; revised Feb 14, 2008
ViTAL Economy Alliance
Frank Knott, Project Lead; Stan Halle, Senior Editor;
Jim Haguewood, Rob Beynon, & Neil Gamroth, Principal Economic Researchers
[email protected]; http://www.vitaleconomy.com
—1—
©2007 ViTAL Economy, Inc.
Executive Overview
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©2007 ViTAL Economy, Inc.
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Executive
Overview
Executive Overview Table of Contents
READINESS ASSESSMENT (RA) Executive Overview
Letter to Connect SI Leaders
Slide #
.…………………………………………..…. 4
A.
Understanding the Readiness Assessment Process
B.
The SI Opportunity and Dilemma
C.
State, National and Global Trends and Implications for SI ..……. 21
D.
Assessing SI’s Climate to Support Growth …………………………. 25
E.
Community of Interest (COI) Perspective and Goals
F.
Connect SI: Crossing the Boundaries
G.
How Does SI Organize to Succeed?
H.
Call to Excellence…a Destiny of Prosperity!
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..………….. 6
………………………………….. 14
……….…… 36
……………………….……. 49
………………………………. 56
………………….… 61
©2007 ViTAL Economy, Inc.
Executive Overview
Letter to the Reader
This Readiness Assessment (RA) Executive Summary provides a condensed view of the readiness of Southern
Illinois (SI) to successfully support and implement the Connect SI Phase 2 multi-year economic development
strategy. It summarizes the key findings contained in the detailed RA issued to Connect SI on December 2007.
The RA is a multi-faceted assessment of SI economic history and current conditions. It involves more than 235
interview sessions with 940+ business, public sector, labor union, community and not-for-profit leaders living and
working in SI. It includes a review of over 250 studies of the SI economy. The RA highlights global, national and
regional trends critical to understand as Connect SI proposes a five year strategy for transforming the SI
economy by 2012. The RA assessment process took place between Sept 2006 - Nov 2007.
The RA is an independent 360º view of all aspects of the SI economy designed to provide subjective and
objective assessments of community vitality as well as economic opportunity. It enables uncomfortable but
necessary realities to be reviewed openly, so that Connect SI leaders can plan for long-term success. The RA is
the work product of ViTAL Economy, not Connect SI. The results of the RA provide both opportunities and
challenges for SI.
Opportunities: SI indigenous resources are a perfect match for current global and national market trends. SI has
the opportunity to grow its economy at an annual growth rate of 3.85% by 2012 versus its 1.34% growth rate over
the past 25 years, resulting in $2 billion in new annual wages, $3.6 billion rise in annual GDP, 43,000+ new high
wage jobs, 10,000 citizens lifted out of poverty and over $162 million more annual state and local tax revenue.
Challenges: SI has a major dilemma. There is a need to build a better climate of trust so that meaningful
collaboration increases and the risk environment for visionary leaders improves. A pervasive willingness to accept
mediocrity is evidenced by a lack of excellence in many aspects of SI life. There is an overarching belief that “the
cavalry is coming” despite evidence to the contrary. Policies continue to prioritize & fund initiatives that emphasize
declining sectors of the current economy rather than expanding into 21st century economic realities.
As discussed in this RA, SI has the opportunity to become a “regional gateway” for America’s Heartland to the
global economy and for the global economy to America’s Heartland, if and only if SI chooses to believe it can.
Frank Knott, President
ViTAL Economy, Inc.
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©2007 ViTAL Economy, Inc.
We See A Bountiful Southern Illinois
Executive Overview
Vital Economy’s View:
— We have fallen in love with SI. We see it as the land of the “Garden of the Gods” —

Prime central North American location in close proximity to over 11M people

425,000 population that produces a $17.6B economy — equivalent to a major metro-area

Multi-directional Interstate highway, waterway and rail road infrastructure

Major research university, robust community college system and workforce development
assets

Modern and growing healthcare facilities

Large national forest and numerous unique tourist attractions

Extensive mineral, agricultural and unique natural environmental assets

Rich soils, mild climate and abundant water resources

Numerous innovative and leading industry companies and an entrepreneurship spirit

Special, welcoming, talented and caring people who want better for their families

Young and old who see SI for the treasure it is, and desire stewardship that reflects its
value
ViTAL Economy Conclusion:
Southern Illinois has more assets at its disposal than
any other region it has advised in 15 years
—5—
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
The What, Why and How of a Readiness Assessment
Section A:
Understanding the Readiness Assessment Process
—6—
©2007 ViTAL Economy, Inc.
Readiness Assessment
Executive Overview
The Readiness Assessment is a 360° review of an economic region from two
perspectives, including:
1. Community internal opinions and impressions
2. Outside-in perspective based upon years of experience and research in other
rural communities and a review of national & global trends relative to SI asset
mapping results
(
)
Internal Insights + External Insights
•Interviews
•Local Research/Reports
•3rd Party Observations
•External Research
x VE Analysis =
Readiness
Assessment
Greater Egypt COI
Southeastern COI
Southern Five COI
Phase 2 COI Strategies
Greater Wabash COI
Connect SI 20-County
Economic Strategy
Healthcare COI
Network Provider COI
—7—
©2007 ViTAL Economy, Inc.
Readiness Assessment Process
Executive Overview
Developed High-Value Jobs
Accelerated GDP Growth
Transformed Economy
Connect SI Phase 2 Multi-Year Initiative
SI RA Components
Long Term
Initiative
Readiness to
Connect &
Collaborate
Ability & Will
to
Collaborate &
Fund at
Local Level
Assess
Visionary
Leadership
Measure
Climate of
Success
Determine
Public
Sector
& NGO
Support
Determine
PrivateSector
Support
Assess Knowledge, Service, Infrastructure, Finance, Leadership Gaps
COI
Milestone
Meetings
Connectivity
Assessment
Assess
Climate of
Innovation
Primary &
Secondary
Research
State, Nat’l,
Global
Trends
Livable
Community
Assessment
Assess Economic Development Needs & Local Leadership Vision
The Readiness Assessment is built from the ground up
—8—
©2007 ViTAL Economy, Inc.
The Job of the RA
Executive Overview
Provide a mirror that reflects to leaders
what those they lead are thinking and saying
————
Highlight the opportunities that are before you
————
Communicate an unvarnished view of the challenges
————
Determine if the key ingredients are in place to achieve success,
despite the perceived difficulty of the challenges
————
Develop the RA as a qualifying filter for prioritizing choices for the completion and
launch of the Connect SI long-term strategy
See: RA Chapter 6
—9—
©2007 ViTAL Economy, Inc.
Readiness Assessment Process in Context
Executive Overview
PHASE 1
You Are Here Now!
COI Launch
COI Milestone Meetings & Goal Setting
Asset Mapping
Economic Scenario Models
Readiness Assessment
Phase 1 Strategy Approved
Phase 2 Launch 2008
V
I
S
I
O
N
PHASE 2
&
Industry Cluster Analysis & Strategies
Integrated Finance Strategy
Youth Engagement Strategy
G
O
A
L
S
Collaborative Leadership Institute
Innovation Ecosystem
Action Implementation Through 2012
*
June
2006
Year One
July
2007
Year Two
— 10 —
July
2008
©2007 ViTAL Economy, Inc.
Executive Overview
ACTUAL Client Communities Success
Since 1992 (Average)
• 30-40% increase in regional job base over five years
• 25-35% growth in average wage
• 30-40% reduction in rate of poverty
• 20-25% of lowest wage jobs raised by at least $5,000/year
• 20-30% increase in families with health insurance
• 35-50% increase in average wage of new jobs
• 50-90% increase in annual rate of new business formation
• Above average acceleration in growth of gross regional product
• Expanded KBE based innovation economy enabling broadband expansion
• Improved economic diversification and lower economic risk
• Increased access to capital for financing of innovation
— 11 —
©2007 ViTAL Economy, Inc.
Connect SI – Overall Logic Flow
Executive Overview
Asset Maps help
us understand
what makes SI
unique!
Opportunity Realized
Connect the Dots
Barriers
Local Opportunity
Global Opportunity
Innovation
Industry / State
Who
We
Are
Knowledge
Best Practices
Global Innovation
The foundation of
sustainable economic
growth is building
on what makes a region
unique, NOT copying what
others are doing
Local Innovation
Barrier Strategies
Short / Long Term Wins
Measures of Success
— 12 —
©2007 ViTAL Economy, Inc.
Asset Maps Focus Opportunity Analysis
Executive Overview
• Enables SI to define how indigenous resources make it unique and special
• Identifies resources in economic sub-regions to share across SI
• Helps to filter, prioritize and focus competing economic strategies
• Defines what industry clusters can be home grown based on local assets
• Identifies industry value chain assets to be connected across SI Region
Map Indigenous Assets
Map Industry Assets
•Natural
•Human
•Knowledge
•Cultural
•Geographic
•Excellence
•Infrastructure
•Government
•Agriculture
•Healthcare
•Tourism
•Energy
•Manufacturing
•Education
•KBE Firms
•Logistics
See: RA Chapter 2
+
— 13 —
=
Priority industry
clusters with the
greatest ability to
deliver economic
growth goals
©2007 ViTAL Economy, Inc.
What COI’s Learned from Asset Maps
Executive Overview


SIU’s 138 year history with students from over 100 cultures positions SI to access
expanding global markets which are seeking access to U.S. markets
SIU’s research ‘centers-of-excellence’ in energy, environment, materials and
neuroscience perfectly align with global priorities for market growth

SI has a more significant base of workforce development and research university
assets to respond to the 10 million worker shortage than other U.S. rural economies

There are more innovation, incubation and entrepreneur assets in SI than anyone
imagined; this positions SI to build an Innovation Ecosystem fueling KBE growth

Intermodal logistics assets and heartland location align with the redevelopment and
expansion of inland waterway logistics connecting to Midwest logistic gateways

Regional tourism assets are aligned with authentic and active lifestyle tourism trends
involving 50-80 million annual tourists in the U.S.


SI’s region has the right mix of assets for attracting the financially independent active
retirement demographic, which is fueling the growth of senior living opportunities
SI has a significant base of diversified alternative and traditional energy assets, which if
collaboratively organized, provide a basis for a diversified energy sector
Asset Mapping proves SI already has what it needs to drive its own economic destiny
See: RA Chapter 2
— 14 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
This section compares what SI has going for it versus what’s in the way —
painting the picture of the enormous opportunity SI has to transform its economy
Section B:
The SI Opportunity and Dilemma
— 15 —
©2007 ViTAL Economy, Inc.
The BIG SI Opportunity
Executive Overview
• Global growth presents SI with
opportunity to accelerate its
economic growth from 1.34% to
3.85% per year
• Heartland of America location,
equidistant to 2/3 of U.S. markets,
central to economic expansion of the
Americas
• Mild climate, unique natural
environment, active lifestyle assets,
arts and culture amenities, and
attractive quality of life characteristics
are important factors for KBE, tourism
and senior living growth
27,298 New
Hi-Wage Jobs
41,461
Existing Jobs
>$5,000/Yr
• KBE activity now accounts for 50%
plus of GDP growth, 3x’s the growth
in occupations and pays double the
average wage of other jobs
• SIU - a major R&D university with 138
years of history serving students from
over 100 world cultures supports
global KBE growth
• Robust education and training
resources position SI for global
workforce training opportunity
CSI 2012
Goals*
Global & Nat’l Trends
Regional Assets
+
• By 2010, the U.S. will have a 10M
worker shortfall requiring strong
workforce development resources
• 3 of 4 factors required to support
KBE activity in rural America are SI
strengths
• 58% of all U.S. and global tourists
want authentic active, historic and
cultural experiences (50-80 million)
• Inter-modal logistics, transportation
and distribution resources have a
strong foundation in SI
• Logistics is a $900 billion U.S.
industry in a global $3.43 trillion
market growing at 10-15% per year
• SI has plentiful legacy and alternativeenergy assets. SI is a coal leader and
is strong in 2 of 4 areas of projected
alternative energy growth by 2030
• 74% global increase in coal
consumption, 138% in coal-to-liquid
and 66% in bio-fuels by 2030
* These Connect SI Goals were announced to the Public 26 Feb 2007
— 16 —
=
$642 Million
New KBE Activity
1,600+ Firms
>$2 Billion
New Annual
Wages
4,500+ Families
with Healthcare
Coverage
Lift 10,000
Citizens Out
Of Poverty
$200 Million
Information
Technology
Investment
©2007 ViTAL Economy, Inc.
Result of Taking Control of SI’s Destiny
Executive Overview
Average Annual
Growth Rate %
“Stay the Course”
vs.
“Change the Course”
6
5
5.62%
4
3
3.85%
3.14%
2
2.19%
1.34%
1
0
AAGR 1977-2001
Worldwide USA
State-wide
Southern Illinois
AAGR Connect SI
Goals 2008 - 2012
2012: increase SI’s economy by $3.6B in GDP to $21.2B,
which translates into $162M in additional State and Local tax revenue
Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005);
“21st Century Workforce” (May 2004); IMF; ViTAL Economy research
— 17 —
©2007 ViTAL Economy, Inc.
Result Of Not Taking Control Of SI’s Destiny
Executive Overview
Southern Illinois Ranking: 2004 Report on Illinois Poverty
Highest % in
rural region
Highest
poverty rate
Highest
unemployment
rate since
09/03
Lowest %
college
graduates
Highest %
enrolled in
Medicaid
Highest % age
5+ with a
disability
#1
#1
#1
#1
#1
#1
Highest % of
population
over age 65
Highest %
age 65+ in
poverty
Highest % age
65+ with a
disability
Lowest % of
population
0-10
Highest %
age 0-17 in
poverty
Highest %
households
owner
burdened
#1
#1
#1
#1
#1
#4
Highest %
households
lack
complete
plumbing
Highest %
households
lacking
complete
kitchen
Highest %
commuting to
work from
other IL
counties
Lowest %
population
work and
live in same
county
Highest %
households
rent
burdened
Highest % of
Adults with no
High School
Diploma
#1
#1
#1
#3
#3
#1
Source: IL Poverty Summit, “2004 Report on Illinois Poverty,” Based on U.S. 2000 Census or IL Dept of Employment Security data
& Atlas of Illinois Poverty Spring 2003
— 18 —
©2007 ViTAL Economy, Inc.
Executive Overview
“We lose the best and brightest, because SI adults tell our
children that there will be no 21st century opportunity in SI”
Age Distribution Comparison

SIU and the community colleges
generate an above average 2030 year old population

This young population leaves the
region for more attractive
opportunities, despite SI having
resources that should help retain
them
8.00%
Increasing
Your Burden
7.00%
6.00%
5.00%
4.00%
Losing Your
3.00%
Future Workforce
Increasing Your Burden
2.00%

1.00%
SI
Illinois
90
+
0.00%
un
de
r
15 5
to
1
30 9
to
34
40
to
4
60 9
to
6
75 4
to
79
Proportion of Population (%)
9.00%
Losing Your Future Workforce
Losing the most productive age
group while increasing the
resource-demanding
demographic
All is not lost — SI needs a
Youth Retention Strategy
Source: U.S. Census Bureau – Table QT-P1: Age Groups and Sex: 2000 and RA Interviews
— 19 —
©2007 ViTAL Economy, Inc.
Executive Overview
SI’s Big Dilemma:
Climate of Limited Opportunity
Resulted in
only 1.35%
AAGR for last
25 Years
•
•
•
•
•
•
•
•
•
•
Limiting mindset: willingness to accept
mediocrity and lack of a sense of excellence
Insufficient climate of collaboration and trust,
making change very difficult
Continued belief that “the cavalry is coming”
despite proof to the contrary
Losing the best and brightest — youth brain drain
Lack of participation in the global economy
Continued focus on traditional economic sectors
in decline rather than rising economic sectors
Climate of economic (and community) despair
Public policy reinforces & funds old economy
strategies, and inhibits new ones
•
•
Fragmented and
poorly leveraged
Primary focus on
local opportunities
Insufficient # of
visionary leaders
Too many boundaries
SI’s future hangs in the balance!
— 20 —
©2007 ViTAL Economy, Inc.
Executive Overview
SI’s Potential:
Climate of Unlimited Opportunity
Results in over
3.85% or better
AAGR for
NEXT 25 Years
•
•
•
•
•
•
Less willingness to accept mediocrity
Improving climate of collaboration and
trust making change less difficult
Losing fewer of the best and brightest
Less focus on traditional economic
sectors in decline
Less of a climate of economic despair
Public policy/funding priorities shifting
•
•
•
•
•
•
Growth & prosperity realized!
— 21 —
Linked across the region &
highly leveraged
Active visionary leaders
Collaboration abounds
Boundaries are being
crossed
New behaviors
Global focus
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
Translating the most relevant trends into potential new jobs for the region
Section C:
State, National and Global Trends and
Implications for SI
— 22 —
©2007 ViTAL Economy, Inc.
FYI: From the RA Itself
Executive Overview
Rural communities typically focus on their local geographic area and have limited insight into
the larger world around them. This chapter provides key trend information and what it means
for Southern Illinois. Each of these trends represents potential opportunities for Connect SI.
Chapter 1:
State, National & Global Trends
1.01 Globalization: The World is Flat
1.07 Aging Population
1.02 eCommerce & Connectivity
1.08 Tourism
1.03 KBE and Innovation
1.09 Logistics, Transportation & Distribution
1.04 Livable Communities
1.10 Energy
1.05 Transformation of U.S. Economy 1.11 Sustainable Economies
1.06 Manpower & Immigration
1.12 Conclusions
— 23 —
©2007 ViTAL Economy, Inc.
Potential SI Jobs by Sector (1 of 2)
Executive Overview
• Global growth opens up opportunities to expand SI
economy beyond its traditional growth rate
• 10 million U.S. worker shortage is an opportunity for SI
workforce development resources
• Growth in services exports enable SI to move away from
uncompetitive legacy economic activities

Global
Workforce
Opportunities
18,750
New Jobs
ICT investments contribute 33% to U.S. productivity
growth…this validates importance of NPCOI

SI’s 64% increase in broadband access can better
leverage six-fold increase in e-commerce activity



KBE
4 of 5** factors in rural KBE growth are SI strengths
8,023
— need to be leveraged for SI economic growth
Livable community assets present in SI are an
attraction asset for KBE, Senior Living and Tourism
Alternative energy, global warming and “greening”
of society is creating innovation opportunities
New Jobs
See: RA Chapter 1
— 24 —
**Five Factors are:
• High Quality Workforce
• College or Universities
• Local Amenities
• Transportation Infrastructure
• Size
©2007 ViTAL Economy, Inc.
Potential SI Jobs by Sector (2 of 2)
Executive Overview
• 77 million retiring baby boomers present an affluent
senior living growth opportunity for SI
3,676
New Jobs
SI energy assets and knowledge are in the
sweet spot of energy priorities for growth
Energy & Mining
• Preferred tourism growth sectors indicate SI is
positioned for accelerated tourism growth
Tourism


Senior Living
Significant transportation labor shortages are moving
transportation and distribution centers from the coast
to the center of North America. SI location and
logistics assets position it for growth
5,680
New Jobs
4,450
New Jobs
Log/Trans//Dist
1,675
New Jobs
Climate of Economic Opportunity = an additional 10,210 new jobs
NEW GRAND TOTAL = 50,789 Jobs (vs. 27,298 Jobs Feb ‘07)
See: RA Chapter 1
— 25 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
There is good news and bad news about what SI has in place — focused on
Enabling Environment, Innovation & Tech-Transfer, and Competitiveness.
VE assessments are based on primary research (interviews), secondary research
(regional, national & global studies), best practices, and our professional experience
Section D:
Assessing SI’s Climate to Support Growth
— 26 —
©2007 ViTAL Economy, Inc.
Enabling Environment: VE Assessment
Executive Overview
Chapter 3 of the RA assesses several
Enabling Environment Criteria
(summarized here)
Climate of Collaboration
Regulatory, Policy & Governance
Business Climate
Broadband Access & Penetration
Livable Communities
Adaptability to Change
Global Focus
Visionary Leadership Depth & Breadth
Climate of Opportunity
See: RA Chapter 3
— 27 —
©2007 ViTAL Economy, Inc.
Enabling Environment: Implications
Executive Overview

Lack of collaboration is hampering prosperity



Unattractive business climate for retention and attraction




The region has the largest concentration of natural environment assets in mid-America
SI is missing out on substantial tourism, senior living, KBE and other revenues
Reluctance to change will perpetuate an atmosphere of dependency



The recent expansion of broadband service, supported by a clearly defined goal is positioning SI
for KBE growth and attraction
SI’s natural environment is not valued enough or being leveraged


IL’s court system is rated as unreasonable to business
Multiple government and taxing districts cause a confusing business environment
Telecommunications expansion is a marketable opportunity


Creates a climate of distrust and conflict
Results in an inability to fund or achieve project success due to lack of resources
The global economy is changing faster than ever before, primarily driven by innovation and
technological advancements that will not wait for individuals and companies to keep pace
Rural regional economies that can effectively meet the workforce needs and business demands of
a KBE economy will be the envy of others
Lack of visionary leadership will keep SI on the same low-growth economic path

A larger core group of champions must step forward and lead the change for SI
— 28 —
©2007 ViTAL Economy, Inc.
Executive Overview
Enabling Environment:
SI Citizens See the Stark Reality
So many things in SI are one-person, one-business or one-organization thin
Local population does not want their neighbors to be too successful
SI is a risk-averse region — if you are too successful, we criticize you and
assume success was obtained dishonestly; if you fail you are branded as a
failure for life
There is a significant lack of unity across the community, including churches,
local governments, schools, business interests, etc.; at the municipal level,
decisions are based on emotion rather than facts
We lack a vision of success — we prefer to dwell on our failures
Overlapping government at the local and regional level gets in the way of
success. Our parochial interests win out over our economic interests
People here seem to be afraid to take a chance. They have a great fear of
failure. They are deeply concerned at how they will be perceived. This leads
to a lack of action. It maintains the status quo
If you going to be poor, this is the place to be
Source: RA & EF Hutton Interviews; See: RA Chapter 3
Note: Quotes in this RA from interviews & other sources are shown as centered italics
— 29 —
©2007 ViTAL Economy, Inc.
Fertile Ground to Change
Executive Overview




SI citizens across the Region do see the stark reality and understand what
needs to change
The good news:

Awareness of this reality goes far and wide

Folks, young and old, want SI, as a region, to finally deal with this
The bad news:

There is a deeply held belief that neither individuals, nor SI as a whole, will change

Far too many lifelong SI residents have become numb to the decades of gradual
decline in so many communities
SI is at a crossroads — and there are reasons for hope:

The concept of One Region-One Vision is gaining traction

There are pockets of prosperity — so it can be done


Short-term wins across SI are providing further “proof” that the collaborative
approach works — building momentum is key
The TIME is now; the CHOICE is yours — all it takes is will and leadership
If you’re going to have a self-fulfilling prophecy, let’s make it a great one!
See: RA Chapter 3
— 30 —
©2007 ViTAL Economy, Inc.
Executive Overview
SI Innovation, Entrepreneurship & Incubation:
VE Assessment
RA Chapter 4 provides a detailed
assessment of SI’s Climate for Innovation
and Entrepreneurship, summarized here:
Entrepreneurship Culture and Networks
Financial Literacy
Existence of Early Stage Capital for Startups
Rate of Business Startups
Partnerships and Community Outreach
Technology Transfer, Licensing and
Commercialization
Entrepreneurship Development and Tracking
Space and Facility Support Services
See: RA Chapter 5
— 31 —
©2007 ViTAL Economy, Inc.
Executive Overview

Entrepreneurship culture and networks



SI cannot grow regional KBE innovation firms without regional access to SIU tech-transfer assets
Disconnected entrepreneurship development and tracking systems




A regional climate of innovation can not be achieved when the vast majority of resources are
centralized
Underperformance of technology transfer, licensing and commercialization


Limited risk assessment capacity for KBE soft asset business startups — this limits access to capital
Entrepreneurs understanding of equity & debt is low — this results in poor deal flow quality
Partnerships and community outreach are centered in Carbondale


Entrepreneurship is not seen as a “real job” — this suppresses a spirit of innovation
Financial literacy


SI Innovation, Entrepreneurship & Incubation:
Implications
The Region’s business support services are not linked — result is KBE firms leave SI or innovations
die on the vine
Lack of business startup-tracking demonstrates lack of policy commitment to entrepreneurship
SI cannot manage what it cannot track or measure
Limited and unconnected incubation space and facility support services

Incubation resources cannot supply diverse expertise needs of young emerging KBEs
Incubator firms are not linked to potential value-chain partners in other parts of SI

Innovation knowledge is silo-based, not shared and, therefore, not leveraged

See: RA Chapter 5
— 32 —
©2007 ViTAL Economy, Inc.
Climate of Innovation,
Entrepreneurship and Incubation
Executive Overview
Climate of Innovation*:
Zero-sum game mentality exists in the way of collaboration or
even basic idea sharing — we are fragmented, jealous and
secretive and motivated by risk aversion
The KBE Worker Gap:
SI is well below the State and National
Averages for KBE as % of total employment
10
Climate of Entrepreneurship:
• Entrepreneurship is not considered to be a “real job”
8
7.7%
• Entrepreneurs exist but mostly underground
• Early stage capital is limited, access is not well known
8.5%
Gap
6
• Research focus at SIUC: high potential for more tech transfer
• Entrepreneur development resources in SI are very limited
4
4.3%
• Support systems for entrepreneurs need bolstering
2
Climate of Incubation*:
There are too few, unconnected incubation resources and staff
— have limited budgets and business experience; several
incubated firms left SI to get access to a system of support
0
U.S.
IL
SI
SIU is one of the top 100 Research Universities in the U.S
— 67% of SIU business and engineering students want to stay in SI —
SIU presents an opportunity to address SI’s KBE Worker Gap
*Source of Quotes: RA & EF Hutton Interviews; chart data from BLS; Note: quotes are shown centered in italics
— 33 —
©2007 ViTAL Economy, Inc.
Executive Overview
SI Entrepreneurs
Served by Shared
Regional Network
Of Incubator
Centers of Excellence
Life Cycle
Equity and Debt
Finance Resources
Global Best Practice
Technical Support
Teams
Broadband-Enabled
Economic Growth Can Be Greatly Stimulated by
Implementing an Innovation Eco-System™
Centralia EC
Ethanol
Research
Center
W. Frankfort
Business
Incubator
SIUE-EC
Edwardsville
International
Incubator
Medical
Technology
Incubator
GW Incubator
SE SBDC
Coal Research
Center
GE Incubator
Tech Transfer
Dixon Springs
Ag-Tech
Incubator
SIU Medical
School
SWI Retail Incubator
Entrepreneur
Center
IMEC
S5 SBDC
SI Incubator, Finance & Innovation Starfish Network
— the KBE-Engine of Connect SI —
See: RA Chapter 4
— 34 —
©2007 ViTAL Economy, Inc.
SI Competitiveness: VE Assessment
Executive Overview
RA Chapter 5 provides a detailed
assessment of SI’s competitiveness,
summarized here:
Global Market Readiness
Climate for Investment Attraction
Workforce
Knowledge Infrastructure
Location Advantages
Connectivity Literacy
The lack of Global Market Readiness is holding back the region from leveraging its
Knowledge Infrastructure and Location Advantages to build a high growth economy
See: RA Chapter 5
— 35 —
©2007 ViTAL Economy, Inc.
SI Competitiveness: Implications
Executive Overview

Limited Global Market Participation



Cloudy Climate for Investment Attraction







SI already has a broad array of knowledge assets, but needs to better align towards a common strategic direction
An education Center of Excellence could coalesce regional KBE resources to pursue global workforce opportunities
Strong Location Advantages



SI’s 66.5% labor participation rate challenges the region’s growth opportunities
The incumbent workforce has a strong work ethic and desire to stay in the SI region
SI’s extensive workforce development assets are positioned to help address the projected U.S. 10M worker shortfall
Robust Knowledge Infrastructure


Long history of a weak, trailing economy and reputation of inferiority limits SI’s ability to attract investment
Livable community standards are a fundamental requirement for investment attraction
Targeted, consistent & authentic communications/marketing can shift the internal and external perceptions of SI
Solid and Improving Workforce


$1 billion export gap: 2.4% of SI GRP vs. 8.4% of the Illinois GSP participates in the global economy
Global market niches exist in energy technologies, bio-ag, int’l innovation and incubation, logistics, etc.
SI is in a geographic “sweet spot” to take advantage of major trends
SI’s location advantage benefits Tourism, Energy, and Transportation, Logistics & Warehousing sectors
Improving Global Connectivity Readiness


SI has begun to transform its connectivity infrastructure but has low connectivity awareness and literacy
Linking NP-COI with all industry clusters can help identify applications to increase competitiveness and market-share
GRP = Gross Regional Product
GSP = Gross State Product
See: RA Chapter 5
Only as a unified region can SI leverage the critical mass already
in place to become a formidable force on the global stage
— 36 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
Laying out the key demographic and economic picture of SI as a whole and acknowledging the
significant work from each of the six Communities of Interest (COIs), as well as “What’s In It for Me?”
Step back and think about SI as a major metropolitan community made up of individual neighborhoods —
it is the uniqueness of each neighborhood, when combined to make a large whole,
that creates a unique sense of personality that we call Minneapolis, Memphis, Boston, San Francisco, etc.
When you says these names and close your eyes certain images, impressions, and characteristics come to mind.
It is called the Voice and Personality of a Brand — this is where SI needs to go
Section E:
Community of Interest (COI) Perspective
and Goals
— 37 —
©2007 ViTAL Economy, Inc.
Executive Overview
Regional Perspective…
SI is a Potential Giant if it Acts as a Unified Region
Population





Cumulative Population
Trend (1980 – 2005)
Over 425,000 residents in the region, comparable
to a single major city
35%
30%
25%
20%
15%
10%
5%
0%
-5%
SI represents 3.3% of total IL population
Median age higher in SI (37.5) than state (34.7)
61% of population is in Greater Egypt making SI
unbalanced
1980-2005 Cumulative Population Trend



SI = (-3.0%) Declined!
Illinois = +11.6%
U.S. = +30.5%
30.5%
11.6%
(-3.0%)
Labor Force

Region average wages are almost 40% lower than
the state average


2006 Government Transfer Payments as
% of Total Earnings
SI region has a 66.5% labor force participation rate,
10% below Illinois
Meaning that 24,995 are employable, but for one
reason or another they are not employed
35
30
Economy

25
SI has a $17.6B economy




US
IL
SI
SI economy is 3.47% of State GSP
Largest sector of SI GRP is government 20% (11% IL)
64% of SI GRP is in Greater Egypt
3% of SI landmass is urban & built
SI
20
15
U.S.
IL
10
5
Exports

Exports are only 1% of state level at $420M


0
% of Total Earnings
8.4% of IL’s GDP is exports vs. only 2.4% for SI
Matching IL’s level would mean +$1.06B
Sources: U.S.Census Bureau, BEA, & Dept of Commerce
— 38 —
Southern Five
Southeastern
Greater Wabash
Greater Egypt
See: RA Chapter 6
©2007 ViTAL Economy, Inc.
Only 46% of SI Personal Income is Generated by
Private Sector Employment
Executive Overview
Conclusions:
70%
U.S.
IL
SI
60%
64%
67%
50%
40%
30%
54%
46%
36%
33%
20%
10%
0%
Private Sector
Transfer Payments,
Payroll & Benefits
All Gov't &
Education Earnings
• SI cannot afford the
community and
economy it wants
• A 30% increase in
private vs. public
sector earnings is
required to equal
U.S.
• Low % of at-risk
sources of personal
income creates a
risk-averse
environment
Increasing private sector % of personal income generation
is critical to building a climate of innovation
— 39 —
©2007 ViTAL Economy, Inc.
Executive Overview
IMPORT ACTIVITIES
— Take $ Out —
bring in goods and services
to serve the needs and
desires of the community;
but capital flows out
SI Needs Investment Attraction: Exports
CONSUMER SERVICES SECTOR
— Circulates $ Locally —
activities that directly and indirectly
address the consumption demands of
the local residents
EXPORT ACTIVITIES*
— Helps Fill the Pool —
bring money into the region by
selling goods and/or
services of value and
importance to national or
international markets
*Exports are the
only source of new
capital that the
region can use to
pay for goods and
services to meet its
needs and desires
SI Economy
12
U.S.
10
8
Illinois
6
SI
4
2
11%
8.4%
2.4%
0
Exports as a % of
GDP
SI gap in exports (vs. Illinois) is
its biggest opportunity to fill the pool
— 40 —
©2007 ViTAL Economy, Inc.
Connect SI: Phase 1 Roadmap
Executive Overview
2012 Goals
Network
Providers
COI Strategy
Phase 1 Outcomes
GIS Asset Maps
Broadband Strategy
Greater Egypt COI Strategy
Economic
Benchmarks
Southeastern COI Strategy
Southern Five COI Strategy
Connect SI
Regional
CED COI
Strategy
Regional Economic
Strategy
Healthcare Strategy
Regional Economic
Framework
Greater Wabash COI Strategy
GIS Mapping Team
Supports COI’s
Healthcare
Providers
COI Strategy
Five-Year
Measurable Goals
Implementation &
Funding Plan
VALUE-ADDED RESEARCH: Regional Economic Model, Healthcare Economic Model,
Incubation, Research Park and Entrepreneurship Assessment, 20-county Readiness Assessment
See: RA Chapter 6
— 41 —
27,298 New
Hi-Wage Jobs
41,461
Existing Jobs
>$5,000/Yr
$642 Million
New KBE Activity
1,600+ Firms
>$2 Billion
New Annual
Wages
+4500 Families
with Healthcare
Coverage
Lift 10,000
Citizens Out
Of Poverty
$200 Million
Information
Technology
Investment
©2007 ViTAL Economy, Inc.
COI Perspective: Southern 5
Executive Overview
Challenges:
• Lack of skilled workforce for
current and future jobs
• Lack of cooperation,
collaboration, and
regionalism
• Does the region have the
assets to grow and retain
tech based jobs?
• No sense of urgency
• K-12 performance
Sense of Urgency
•Changing our mindset — how
we view poverty!
$90.3 M in New Wages
•Stop the bleeding — put a
triage process in place for the
economy, now!
•How will your children grow up
and where will they go?
Opportunities:
• Geography, logistics and
transportation
• Community College System
and SIU
• Local healthcare availability
• Tourism, bed & breakfast,
Shawnee National Forest,
historical assets, wineries
• Agribusiness opportunities
(e.g., ethanol)
See: RA Chapter 6
S5 COI 2012 Goals
Regional Economic Benchmarks
2004
2012
Population
58,664
63,000
Total Employed
24,317
26,856
Average Wage
$27,959
$37,591
Total Wages
$679.9M
$1.01B
— 42 —
784 New Jobs @$43,500
4,863 Existing Jobs
Raised by $5,000/Year
522 jobs at New Average
Wage $36,517
Increase Youth Retention:
6.9% to 7.2% (15-19yrs)
18.7% to 21.5% (20-34yrs)
Reduce Poverty
From 14.5% to 12.5%
©2007 ViTAL Economy, Inc.
COI Perspective: Southeastern
Executive Overview
Challenges:
•
•
•
•
•
•
•
•
•
•
Get local gov’t officials involved
Reverse population decline
Increase tax revenue base
Increase average wage
Change age demographic
Increase incentives for broadband
penetration in the rural areas
Low awareness of ICT benefits
Create a more diversified economy
Overcome apathetic attitudes
Limited affordable housing
Opportunities:
• Get county boards & city councils
engaged
• Show local stakeholders that they
have a “VOICE”!
• Further enhance working
relationships with other
communities
• Become a positive place to live,
work and play
• Promote area as an affordable
place to live
• Challenge negative thinking
• Promote and develop self-reliance
in our community
• Foster entrepreneurship
See: RA Chapter 6
Sense of Urgency
• We MUST stop the decline, we are
asleep at the wheel.
• Shock Value: “If you are going to be
poor, this is the place to be!”
• What is our legacy going to be for our
children? There is declining
infrastructure, tax base declining,
demographics getting worse
• WHAT CAN BE? We need to paint a
compelling picture of the future
SE COI
2007-2012 Goals
2,158 New Jobs
@$43,500
4,380 Existing Jobs
Raised by $5,000/Year
1,438 jobs at the
new average wage
$40,276
34% Private Payer
Healthcare %
$500M EAV Tax Base
Regional Economic Benchmarks
2004
2012
Population
49,454
56,000
Total Employed
21,903
25,500
Average Wage
27,494
40,276
Total Wages
$602.2M
$1,027B
— 43 —
Broadband Penetration
Rate – 50%
$44,420,000
Tourism Expenditures
$180,000 Regional
Room Tax Revenues
©2007 ViTAL Economy, Inc.
COI Perspective: Greater Wabash
Executive Overview
Challenges:
• Spirit of poverty!
• Youth brain drain
• Need to change our attitude
• No collaboration between risk
takers
• Lack of discussion due to
territorial battles
• Lack of appreciation of
business by public officials
Opportunities:
• Take control of our own destiny
• Tap our youth — get them
engaged in this process
• Publicize our great assets —
what makes us unique
• Tie colleges to skill needs;
educate our parents!
• Leverage our renewable
resources in this area; not just
raw exports — invest in nonrenewable as well
• Fill key gaps (e.g., need
Pediatrics, Obstetrics); lots of
ripple effects
See: RA Chapter 6
Sense of Urgency
• Population decline — educate them but
they leave
• More jobs outside of the area
• Lost appreciation of the area
• Rekindling the romance for the area:
o The Beauty of the place that we live
o Our quality of life
o The positive attitude of the area
• “Live, Work, Play and Stay in Southern
Illinois” — and create excellence
generation to generation
• Prosper in spite of Springfield!
• Stop the population drain — what we can
do now!
GW COI
2007-2012 Goals
1,381 New Jobs
@$43,500
5,280 Existing Jobs
Raised by $5,000/Year
920 jobs at the
new average wage
$36,517
Regional Economic Benchmarks
2004
2012
Population
51,421
53,000
Total Employed
26,400
27,746
Average Wage
$26,311
$36,517
Total Wages
$694.6M
$1.013B
— 44 —
$36,406 Per Capital
Income
©2007 ViTAL Economy, Inc.
COI Perspective: Greater Egypt
Executive Overview
Challenges:
• Culture of poverty
• Increase average wage
• Reverse population decline
• Youth brain drain
• 2000 recent dislocated workers
• Lack of quality and
commitment of leadership
• Weak region wide
communication
• Limited access to public and
private capital
Sense of Urgency
•We have got to break the cycle
of hopelessness!
•Don’t tell me what we can’t do –
tell me what WE CAN do!
See: RA Chapter 6
10,468 New Jobs
@$43,500
26,937 Existing Jobs
Raised by $5,000/Year
Opportunities:
• Highly educated population
• Technology transfer from
educational facilities
• Quality of place
• Energy sector: coal, alternative
fuels, etc.
• Value-added agriculture
• Foreign student population
• Workforce Development
•Man-Tra-Con
•SIU & Community Colleges
•State and Federal programs
GE COI
2007-2012 Goals
Regional Economic Benchmarks
6,979 jobs at the
new average wage
$40,765
Educational Degree
Attainment
High School 85.3%
Bachelor 25.2%
2004
2012
Population
253,049
274,432
Total Employed
134,685
157,787
Average Wage
$27,830
$40,765
17.1% Youth Retention
(20-29 age group)
Total Wages
$3.7B
$6.4B
12% Poverty Rate
— 45 —
©2007 ViTAL Economy, Inc.
COI Perspective: Network Providers
Executive Overview
2012 Goals:
% Penetration of
Population
60.00
50.00
54%
40.00
30.00
34%
20.00
10.00
24%
12%
0.00
2005
Southern Illinois
USA-average
USA-rural
#1 in World
Network
Provider COI
has set an
ambitious
goal to
increase the
SI penetration
rate to world
class levels!
Broadband
Coverage
12-to-54%
Penetration
COI Results (2006-2007):
Source: Organization for Economic Cooperation and Development (OECD)
Broadband Statistics Dec 2005 (Survey of 14 Countries);Pew Internet and
American Life Project — Rural Broadband Internet Use Feb 2006
COI Observations:
• Competitors have become collaborators
• Through collaboration, Connect SI has identified
even more resources and possibilities to improve
broadband penetration
• Resources are greater than originally perceived
• Connect SI is the focal point:
• Sharing maps and resources
• Common goals
See: RA Chapter 6
25-to-85%
— 46 —
• Created a demand driven customer aggregation
model generating thousands of open-access
sales leads (www.iwantmybroadband.com)
• Over 35+ small towns have received broadband
• Over $24M+ in new private sector broadband
infrastructure
• Reached 16% Penetration and 41%
Broadband Coverage after only 18 months
(starting point was 12% and 25% respectively)
©2007 ViTAL Economy, Inc.
COI Perspective: Healthcare
Executive Overview
COI Vision:
Supporting the collaboration
and interconnection among
healthcare providers and
patients to improve:




Healthcare access
Health outcomes
Provider profitability
The qualified healthcare
workforce in Southern Illinois
Impact of Healthcare Goals
1. Economic
growth will
improve payer mix
Desired SI
Future State 2012
2. New health jobs
will promote
economic growth
COI Results:
• Two state healthcare pilot
projects initiated and managed
locally
• Collaborate nursing workforce
solutions underway
• Prescription Drug Monitoring
System
See: RA Chapter 6

Insured population
+10%

Medicaid
-26%

Medicare
+18%

Uninsured
-32%
Potential Impact of New Healthcare Positions by 2012:
Jobs
Earnings
GDP
Direct SI impacts
4,676
$214.7M
$260.3M
Indirect and induced
2,408
$75.4M
$156.3M
TOTAL
7,084
$282.3M
$424.5M
— 47 —
©2007 ViTAL Economy, Inc.
COI Views: What’s In This for Me?
Executive Overview
My family gets to stay together, my kids don't even think of leaving
because of all the opportunity, self-esteem, and pride in our community
We go from surviving to thriving
The inhibitive walls ALL come crashing down — the boundaries created
by narrow-thinking, local rivalry, fighting over crumbs and the belief that
‘poverty-is-an-unaddressable-fact-of-life’
I will be linked into this wonderful collaborative network & infrastructure, yet
feel this amazing sense of creative freedom
I want my three valedictorian sons to come back home!
See: RA Chapter 6; quotes are from RA & EF Hutton interviews
— 48 —
©2007 ViTAL Economy, Inc.
Executive Overview
Perspective — Connect SI
Bottom Line:
“Until everyone involved sees and
believes that this effort is the most
important initiative that Southern
Illinois has ever undertaken, it will be
relegated to a hobby that folks do in
their spare time”
- RA
— 49 —
Interview
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Executive Overview
• Summarizes key findings of RA
• Assesses SI readiness to pursue a long term strategy that will transform the SI economy
• Provides recommendations for moving forward
Section F:
Connect SI: Crossing the Boundaries
— 50 —
©2007 ViTAL Economy, Inc.
Executive Overview


Progress Towards One Region-One Vision:
Last 16 Months
1,000+ Connect SI participants have worked toward building a foundation for
hope through investment of tens of thousands of service hours
Collaborative funding from local governments, corporations, NGO’s, higher
education institutions, small and large healthcare systems, state and federal
agencies attests to the desire to achieve a regional vision for a robust SI future

Network provider collaboration has increased broadband availability by 64%
across the Connect SI Region through over $24 million of private investments

Healthcare provider collaboration has achieved significant progress towards
addressing critical skills shortages and improved health outcomes by
prioritizing cooperation over competition

Connect SI asset mapping has enabled COI’s to uncover opportunities to
collaborate across the SI region that would have never before been possible.
This has led to numerous short term wins and long-term strategies for growth
— 51 —
©2007 ViTAL Economy, Inc.
Executive Overview


Barriers to One Region-One Vision:
Last 16 Months
Breaking old behaviors in terms of continued reliance on state and federal
resources as primary sources of capital to fund long-term initiatives rather than
prioritize collaborative funding alliances at the local level
Critical mass of Connect SI champions has not yet been achieved — need to triple
its champions to >3,000 active participants, who believe that a climate of economic
opportunity is possible for Southern Illinois

Imbedded focus of funding, policy and behaviors on industrial attraction, and big
employment announcements as the solution to economic growth vs. growing small
employer KBE firms (21st century growth engines) that don’t garner big headlines

Limited recognition of the depth, breadth and length of commitment needed at the
leadership, citizen, government, business and media levels to transform a limited
growth old economy into an innovation growth economy of unlimited opportunity

Insufficient commitment of the time, talent and resources of existing leadership to
the expansion of next generation leadership and to growing the skills necessary to
collaboratively lead Southern Illinois to become One Region with One Vision
— 52 —
©2007 ViTAL Economy, Inc.
Actions Fundamental to SI Economic Prosperity (1 of 2)
Executive Overview



Address SI Dilemma — transition from a climate of limited potential to unlimited
opportunity

SI citizens must believe that they have the ability to take control of their destiny

Education of SI uniqueness and opportunity is critical to turning belief into action
Increase SI’s private sector contribution from 46% to national level of 65%;
reduce SI’s dependence on public sector income from 54% to national level of
36% by 2012

Critical to establish an SI climate of innovation versus a climate of risk-aversion

Requires a 30% increase in private sector wage contribution to personal income
Improve global export literacy and double global export value in SI’s economy



Required to increase flow of external capital into SI…Investment Attraction
Leverages SI indigenous resources…Sow Our Own to Grow Our Own
Implement economic strategies to grow SI economy at 3.85% vs 1.34% annually


Increased prosperity is dependent on accelerated growth
SI infrastructure investments cannot be met without increasing economic growth
— 53 —
©2007 ViTAL Economy, Inc.
Actions Fundamental to SI Economic Prosperity (2 of 2)
Executive Overview




Change economic development focus from legacy (manufacturing &
commodity agriculture) to KBE global products and services

This is where the high value, high wage job growth opportunities abound

Emphasizes growth of firms not negatively impacted by Illinois weaknesses
Grow breadth and depth of Connect SI visionary leaders and champions

Commitment to passionate long-term vision by more leaders is critical

Critical mass of 3,000+ champions is critical to sustainability of change
Expand base of collaborative funding support for Connect SI strategies

Long-term consistency in strategy focus is dependent on regional control

“Cavalry-is-coming” mentality must be dispelled to transform expectations
Support a long-term regional framework to guide regional growth

Regional collaboration can only take place through a regional framework

Access to a broader base of financial, data and human resources is assured
— 54 —
©2007 ViTAL Economy, Inc.
CSI Participants Vision of the Future
Executive Overview
LOOK
Construction is going on
 Downtowns look nice
 Sense of pride in our
properties; less trash, more
flowers
 More ideal retail available
 Broadband is everywhere
 Natural beauty, farmlands
are preserved
 New housing
 Maintain our historical
buildings; respect our
heritage
 Good mix of industry and
business
 Healthcare is widely
available
 Smart use of the
brownfields

FEEL
ACT
More educational
opportunities
 People are doing business
outside of the area; world
markets
 Intentionally acting in a
collaborative manner
 Street talk has changed to
newest activities and
additions to the community
 Business able to compete
in the global economy
 People are proud of their
community
 “Walk the Talk”
 Comfort with risk and
entrepreneurship and
innovation
 Middle-aged and older folks
are not afraid of IT

Source: Milestone Visioning Exercise from GW, GE and S5
— 55 —

Positive perception of the
area

Pride in the community

New people feel welcome,
open door feeling

We are a “20 county” region

SI is a world recognized
regional brand

Value education and a
sense of community

High school students feel
good about staying in the
region

A new cultural atmosphere

More young people bring a
vibrancy to the region

Strong small town
environment
©2007 ViTAL Economy, Inc.
VE Vision of SI Tomorrow
Executive Overview


Southern Illinois is the global location where inter-generation active lifestyle
families, visitors & KBE workers choose to live work and play — growth abounds
SI’s historic liability of remoteness and lack of access becomes an asset; instead
of forgotten by Chicago, Springfield and Washington, SI is a land and lifestyle
treasured, respected, sought after and envied — there is only one SI in the World

SI communities see themselves in a new light; they are respectful of their place;
they see themselves as gateways to a land that is "The Garden of The Gods"

Tourism venues, town centers,rural lands, business locations and neighborhoods
all demonstrate by their look and feel that SI is a very special place to be
preserved and enhanced for all time

SI is a place of welcome for people of all cultures whether visiting or living here; in
the land of "The Garden of the Gods” all are welcome and of value

It is a place many want to be, but only the fortunate choose to take advantage of
this unique opportunity; SI becomes a place that is worth a premium, rather than
one that feels it must offer a discount to be desired
Source: ViTAL Economy Alliance
— 56 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
Suggests the framework to progress into Phase 2
Section G:
How Does SI Organize to Succeed?
— 57 —
©2007 ViTAL Economy, Inc.
Executive Overview








Phase 2 Framework is Built Around
Industry Clusters
Tourism
Bio-Agriculture
Knowledge Based Enterprises (KBE)

Healthcare Technology Products & Services

Advanced Manufacturing

Recreational, Marine, Hunting, Technology Products & Services

Visual Creative & Performing Arts and Services

International Incubation and Innovation

Green Technologies

Homeland Security Response and Services

Life Sciences, Plant and Animal
Global Workforce Opportunities
Energy
Mining Technology
Transportation, Logistics & Warehousing
Senior Living
— 58 —
All new jobs created by
Industry Clusters will be
targeted to include private
payer health benefits for
workers and families
©2007 ViTAL Economy, Inc.
Phase 2 Priorities for Success (1 of 2)
Executive Overview
1. Expand NP-COI connectivity broadband deployment with professional support for an
additional twelve months — including expansion of enterprise applications for healthcare,
education, R&D and tech transfer research collaboration with private sector
2. Broaden base of Connect SI champions and gain re-commitment of Phase 1 champions
— repeat January-June 2006 road show using RA data to garner additional support
3. Invest robust resources in a collaborative funding strategy to raise $1.5 million in cash
and in-kind resource commitments to Connect SI for each FY 2008 and FY 2009
4. Establish Connect SI as a regional data portal for SI — Local municipalities are already
benefiting from regional data assembled by Connect SI, which has helped local economic
development professionals attract businesses to SI — there is no other long-term reliable
source for consistent, accurate and integrated data for the SI region
5. Select four industry clusters for Phase 2 research and implementation in 2008. Recruit
private sector leadership teams during first quarter of 2008 for each industry cluster —
identify experienced rural industry cluster research teams to guide cluster teams
6. Commit to a sense of urgency that is communicated region wide — educate citizens
and leaders of the economic realities of the need for change today rather than tomorrow —
invest in Connect SI marketing strategy in support of broadband, champion development,
collaborative funding and private sector recruitment goals
— 59 —
©2007 ViTAL Economy, Inc.
Phase 2 Priorities for Success (2 of 2)
Executive Overview
7.
Leadership Advisory Committee agrees to resource the Healthcare COI to
aggressively achieve the transformative qualitative and quantitative goals it established in
Phase 1
8.
Focus four regional COI’s on recruitment of industry cluster participants for
prioritized SI-wide industry clusters — have COI leadership guide implementation of at
least two short term win opportunities every six months, which are connected to achieving
COI goals
9.
Fund and establish a collaborative leadership institute to address critical shortage of
visionary leadership across SI — include youth engagement in this, so that youth brain
drain can be successfully addressed for the long-term
10.
Review RA findings and work with ViTAL Economy to integrate RA findings into the
SI-wide economic strategy to be released in 1st quarter 2008
11.
Commit to obtain and invest resources required to implement Connect SI Phase 2
economic strategy and achieve qualitative and quantitative goals starting April 1 2008 —
including approval of Connect SI Phase 2 implementation timelines, funding and
professional resources
12.
Develop a 501(c)3 framework for Connect SI, so that independent government and
foundation funding that cannot be received by SIU or Man-Tra-Con can be accessed —
particularly critical with regard to approved legislation dealing with digital divide funds from
state and federal sources
— 60 —
©2007 ViTAL Economy, Inc.
Immediate Action Items
Executive Overview
1.
Utilize this Readiness Assessment as a resource tool and
foundation in support of the Connect SI COI’s and strategic actions
underway — Now!
2.
Promote this Readiness Assessment report around the region in a
variety of forms; web-posting, presentations, hardcopy, CD’s, etc.
— Now!
3.
Assemble and expand the Connect SI Leadership Team to
completely understand the Readiness Assessment — Ongoing!
4.
Commit to a sense of urgency to staff, fund, and lead this initiative
through Phase 2 and beyond — Ongoing!
See: RA Chapters 6 & 7
— 61 —
©2007 ViTAL Economy, Inc.
Southern Illinois — "Garden of the Gods"
Stay cool
Executive
Overview
Section H:
Call to Excellence…a Destiny of Prosperity!
— 62 —
©2007 ViTAL Economy, Inc.
What SI’s Future Can Become
Executive Overview
Healthcare Economics
are Transformed!



Insured population
+10%
Medicaid
60.00
% Penetration
of Population

SI is a Global Broadband
Leader
-26%
Medicare
+18%
Uninsured
50.00
30.00
34%
20.00
10.00
-32%
54%
40.00
24%
12%
0.00
2005
Southern Illinois
USA-Average
SI Becomes
an Innovation Economy
USA-Rural
Best in World
It’s Time to Go Global!
70%
U.S.
IL
SI
60%
64%
67%
12
50%
40%
30%
54%
U.S.
46%
36%
33%
20%
10%
0%
10
8
Illinois
6
SI
4
2
11%
8.4%
2.4%
0
Private Sector
Transfer Payments,
Payroll & Benefits
All Gov't &
Education Earnings
Exports as a % of
GDP
— 63 —
©2007 ViTAL Economy, Inc.
SI Becomes the National Model for
Rural Economic Transformation
Executive Overview
Average Annual
Growth Rate %
“Stay the Course”
vs.
“Change the Course”
6
5
5.62%
4
3
3.85%
3.14%
2
2.19%
1.34%
1
0
AAGR 1977-2001
Worldwide USA
State-wide
Southern Illinois
AAGR Connect SI
Goals 2008 - 2012
2012: increase of $3.6B in GDP to $21.2B SI economy,
which translates into $162M in additional State and Local tax revenue
Source: “State of Working Illinois”, by Northern Illinois University (Nov 2005);
“21st Century Workforce” (May 2004); IMF; ViTAL Economy research
— 64 —
©2007 ViTAL Economy, Inc.
“A Return to Love” by Marianne Williamson
Executive Overview
Our deepest fear is not that we are inadequate
Our deepest fear is that we are powerful beyond measure
It is our light, not our darkness that most frightens us
We ask ourselves, who am I to be brilliant, gorgeous, talented, fabulous?
Actually, who are you not to be?
You are a child of God
Your playing small does not serve the world
There is nothing enlightened about shrinking so that other people
won't feel insecure around you
We are all meant to shine, as children do
We were born to make manifest the glory of God that is within us
It is not just in some of us, it is in everyone
And as we let our own light shine, we unconsciously
give other people permission to do the same
As we are liberated from our own fear, our presence automatically liberates
others.
The future of Southern Illinois is in your hands!
— 65 —
©2007 ViTAL Economy, Inc.