1. The Innovation Economy: New Opportunities and Risks in the Evolving Business Cycle Dr. Bill Conerly for Regional Economic Forecast & Innovation Expo December 11, 2014

2. The Global/National Economy The Five Counties Economics of Innovation

6. U.S. Economy: Major Sectors, Sector2015-16 Outlook Consumer spendingSpending grows w/ income Housing constructionStronger in 2015-16 Non-res constructionLight growth Bus. Capital SpendingStrong ExportsModerate growth Federal Gov’tCuts in goods, services (but entitlements grow) State & Local Gov’tSlow growth

10. Commercial Bank Assets $ billions 20072013 Cash4821,632 Investments1,5912,722 Loans6,5377,120

12. Inflation Recession

13. The Global/National Economy The Five Counties Economics of Innovation

16. Rural & Urban Issues Fewer location-specific jobs Farming, forestry, fishing, mining Most folks like cities Much work can be done anywhere

17. The Global/National Economy The Five Counties Economics of Innovation

18. Offshoring Labor cheaper, but rising Cost of quality higher Regulation more lenient Overseas markets growing

19. Onshoring or Reshoring Labor cheaper, but rising Cost of quality higher Regulation more lenient Overseas markets growing

20. Onshoring or Reshoring Labor cheaper, but rising Cost of quality higher Regulation more lenient Overseas markets growing More flexible: Quantity & specs Quality cheaper to attain Great for low labor content

21. Innovation: Customization

22. Customization: Manufacturing

23. Customization: Information

24. Customization: Medicine

25. The Nutshell Most likely Stronger growth in 2015-16 Higher interest rates Stable inflation Rural communities level Urban areas expanding Opportunities through innovation Customization

26. Questions? Bill @ ConerlyConsulting.com one “n”