1 CONFERENCE on SCIENCE BASED REGIONAL DEVELOPMENT Delft, Netherlands September 18-19, 2003 The Texas Border Region: Partnering between business, academia, and government Dr. David V. Gibson, Associate Director IC² Institute, The University of Texas at Austin Dr. Pablo Rhi-Perez, Professor University of Texas at Brownsville

2Presentation Part I Cross-Border Institute for Regional Development – CBIRD GLOBAL Cross-Border Institute for Regional Development – CBIRD GLOBAL Part II CBIRD-Texas-Mexico CBIRD-Texas-Mexico Part III Summary and Conclusions Summary and Conclusions

3 Cross-Border Institute for Regional Development CBIRD-GLOBAL Part I Abdu Megatelli, Program Director Cross Border Institute for Regional Development IC² Institute The University of Texas at Austin Part I Abdu Megatelli, Program Director Cross Border Institute for Regional Development IC² Institute The University of Texas at Austin

4 IC 2 INSTITUTE The University of Texas at Austin A unique institution for regional development A unique institution for regional development

5 CBIRD Global CBIRD Global Vision Under the Kozmetsky Global Collaboratory (KGC) The University of Texas at Austin faculty and students collaborating with Stanford University faculty and students within for knowledge creation, storage, utilization, dissemination, replication and conversion into goods and services to accelerate shared global prosperity

6 CBIRD Global CBIRD Global Mission: (“think” and “do” tank) - Leverage UT-Austin and Stanford faculty, students, and research centers within the KGC and the Corporate Fellows Network ( CFN) to : Mission: (“think” and “do” tank) - Leverage UT-Austin and Stanford faculty, students, and research centers within the KGC and the Corporate Fellows Network ( CFN) to : Carry out research on issues inherent to global cross-border regions as part of the ‘think” tank Determine research applications and implementation Create wealth and prosperity sharing for cross- border social and economic development as part of the “do” tank

7 CBIRD Global CBIRD Global Implementation Strategy Define core research programs and/or projects focused on faculty interests and those of their students Carry out these programs and/or projects “on a stand alone basis” with the involvement of corporations through the CFN and IC2 Fellows programs

8 CBIRD Global CBIRD Global Provide support to faculty for grant writing and for developing global cross-border relationships and partnerships Maintain, expand and deepen relations with the CBIRD Global network

9 Part II The Case of Cameron County, TX and Matamoros, MX At the Crossroads – Assets and Challenges for Accelerated Regional & Binational Development Dr. David V. Gibson, Associate Director IC² Institute, The University of Texas at Austin Dr. Pablo Rhi-Perez, Professor University of Texas at Brownsville

10 U.S. Technopoleis Sillicon Valley Seattle Minneapolis Colorado Springs Sall Lake City Los Angeles San Diego San Diego Phoenix Portland Boston Troy- Albany Dallas Austin San Antonio Orlando Raleigh-Durham New York

11

Through cooperative partnerships with the private and public sectors, CBIRD-TX/MX works to facilitate the emergence of an integrated, linked region with a shared vision and leveraged resources for bi-national development One region, one future Una region, uno futuro CBIRD-Texas/Mexico VISION

13 What do you think of in terms of Benchmarking?

14 CBIRD Knowledge Base Benchmarking Benchmark Regional Knowledge Base & Tell a Compelling Story Develop Strategies for Action Short and Longer- term Business/Education/ Local Government Regional and Bi-National Border CollaborationCollaboration CooperationCooperation SynergySynergy

15 Benchmarking a region’s assets and challenges to: Foster collaboration across academic, business, and government sectors Foster collaboration across academic, business, and government sectors Incubate and grow technology- intensive companies Incubate and grow technology- intensive companies Retain and expand existing enterprises Retain and expand existing enterprises Foster, recruit and bring back talent Foster, recruit and bring back talent Facilitate public/private partnerships Facilitate public/private partnerships Accelerate economic growth while maintaining a sustainable and accessible quality of life. Accelerate economic growth while maintaining a sustainable and accessible quality of life.

16 Creativity GovernmentIndustry Innovation Education CBIRD/Benchmarking as a Catalyst for Mechanisms Metrics Process KTFoundations

17 Is this an acceptable vision for the region? vision for the region?

18 Nationally/Globally Recognized Center Technology Based Wealth Job Creation & Sustainability The Region What are the Crucial Next Steps? ASSETS CHALLENGES ENTREPRENEURSHIP ASSETS CAPITAL MARKETS TALENTEDUCATIONALEXCELLENCETECHNOLOGY KNOW-HOW

19 Regional Benchmarks: Metrics for “Success” Wealth creation Wealth creation High value jobs High value jobs Quality of life Quality of life Sustainability Sustainability Shared prosperity Shared prosperity

20 How to Define a region? a region?

21 Geographically Economically Technologically Knowledge/Creative Class Education Resources Government Social Concerns Cultural Concerns Natural Resources

22 Universities, College & High Schools Small, Mid-Sized & Large Firms State & Regional Government Economic Political Education Culture COMMUNITY INDIVIDUAL Foundations Important Community Institutions & Issues Source: IC2 Institute Opportunity Skills Recognition

Community/Regional Collaboration/Cooperation (Civic Infrastructure) 1 st Level Influencers/Visionaries 1 st Level Influencers/Visionaries 2 nd Level Influencers/Champions 2 nd Level Influencers/Champions Regional Networking Organizations Regional Networking Organizations

24 Hard (Civil) Infrastructure Science Parks and Incubators Science Parks and Incubators Airports, Roads, Bridges Airports, Roads, Bridges Internet Connectivity Internet Connectivity Computer & Information Technology Computer & Information Technology

25 The proposed course of action takes into account four strategies of technology- based economic development: company relocations company relocations company retention and expansion company retention and expansion new firm development new firm development alliance building - partnerships alliance building - partnerships However, the focus is on new firm development and alliance building

26 Four Strategies for Regional Economic Development Industrial Relocation Retention and Expansion Building New Companies Newer Institutional Alliances/Partnerships for Leveraged Economic Development

27 Use advanced CIT: (1) to construct a regional reports and databases - a dynamic knowledge base (2) to leverage resources within the region (3) to foster national and global partnerships for leveraging talent, technology, capital, for leveraging talent, technology, capital, and know-how and know-how (4) to Leapfrog for “Spectacular Success”

28 Source: U.S. Census Bureau; INEGI 1990 and 2000 Mexico–U.S. Border Demographics 41%38% Growth of Brownsville and Matamoros Populations

29 Higher Unemployment Higher Birthrates Higher Population Growth Higher Poverty Levels More Children in Poverty Lower Per Capita Income Lower Annual Pay Lower Growth Rate in Annual Pay

30 TECHNOLOGY ENTREPRENEURSHIP CIVIC ENTREPRENEURSHIP SOCIAL ENTREPRENEURSHIP Three Types of Entrepreneurship Needed in the Border Region

31 Part III Part III Summary & Conclusions

32 CHALLENGEASSET PROSPECT LIMITATION (+) Textiles & Apparels Retail Trade Government Health Services General & Personal Services Leisure Logistics & Distribution Transportation Equipment Electronics Food Products (Size Relative to Employment) National Trends Local Trends (+) (-) Cameron County: Challenges & Assets by Economic Activity (Shift-Share for the Strongest Clusters) Fast regional growth in a quickly growing national sector Fast regional sector growth in a nationally declining or lagging sector Slow regional growth in a nationally declining or lagging sector Slow regional growth in a quickly growing national sector

33 CHALLENGE ASSET PROSPECT LIMITATION (+) National Trends Local Trends Consumer Goods Chemicals & Plastics Transportation Equipment Industrial Supplies Industrial Machinery Electronics Textiles & Apparels Food Products Materials (-) MATAMOROS: Challenges & Assets by Economic Activity (Shift-Share for Manufacturing Clusters ’94-’99 against U.S. Employment Base) Fast regional growth in a quickly growing national sector Fast regional sector growth in a nationally declining or lagging sector Slow regional growth in a nationally declining or lagging sector Slow regional growth in a quickly growing national sector

34 Knowledge based survey Community leaders knowledge concerning job creation, economic development, and wealth creation in Cameron County and Matamoros in the next five-to-ten years on: The importance of regional INDUSTRIES: Established and emergingThe importance of regional INDUSTRIES: Established and emerging The importance and effectiveness of regional economic development FACTORSThe importance and effectiveness of regional economic development FACTORS The importance and effectiveness of regional economic development STRATEGIESThe importance and effectiveness of regional economic development STRATEGIES

35 Cameron County: Important Established Industries For Job Creation, Economic Development & Wealth Creation in the Next 5 – 10 Years

36 Matamoros: Important Established Industries For Job Creation, Economic Development & Wealth Creation in the Next Years\

37 Cameron County: Important New and Emerging Industries For Job Creation, Economic Development & Wealth Creation in the Next 5-10 Years

38 Matamoros Important New and Emerging Industries For Job Creation, Economic Development & Wealth Creation in the Next 5-10 Years

39 The importance of FACTORS for economic development Cameron County Ranking Matamoros Ranking 1. Quality of K-12 education 2. Quality of college & university education university education 3. Affordable & available water supplies water supplies 4. Quality of technical & vocational education vocational education 5. Skill of entry-level workforce workforce 6. Utilities 7. Skill of managerial & professional workers professional workers 8. Affordable & Available Energy Energy 9. Telecommunications 1.Quality of college & university education 2. Affordable & available energy 3. Quality of K-12 education 4. Affordable & available water supplies 5. Health Services 6. Quality of technical & vocational education 7. Tax Incentives 8. Skill of entry-level workforce 9. Industrial Parks

40 Cameron County: Critical Index of Factors (Importance v. Effectiveness)

41 Matamoros: Critical Index of Factors (Importance v. Effectiveness)

42 Cameron County: Critical Index of Strategies (Importance v. Effectiveness)

43 Matamoros: Critical Index of Strategies (Importance v. Effectiveness)

44 Roadmap for Brownsville/Matamoros Roadmap for Brownsville/Matamoros Initiative # 1 Accelerated Economic Development Manufacturing/Maquiladoras Manufacturing/Maquiladoras Transportation and Logistics Transportation and Logistics Health Services and Life Sciences Health Services and Life Sciences Border Security Border Security Education/Training/Research State Funding ? State Funding ? Partnerships for Excellence Partnerships for Excellence Initiative # 2

45 Initiative # 3 Entrepreneurship Celebrate the Business Entrepreneurs Celebrate the Business Entrepreneurs Binational Incubator Binational Incubator Binational Moot Corp Binational Moot Corp Binational Entrepreneurial Council Binational Entrepreneurial Council Celebrate Civic- and Social- Celebrate Civic- and Social- Entrepreneurs Entrepreneurs Partnerships: Regional, National, Global CBIRD – Sandia Labs CBIRD – Sandia Labs Alice Springs, Australia Alice Springs, Australia ISTC – Moscow ISTC – Moscow Initiative # 4

46 Questions & Discussion Questions & Discussion