When It Comes to Innovation, Partnerships Are Key

NLC’s Brooks Rainwater examines federalism in the context of innovation and explains why the Small Business Administration is of critical importance to cities.

(NLC)

(NLC)

In the first installment of this series, we looked at the basics of federalism and why it matters to cities. Part two focused on how affordable housing assistance has changed with the interpretation of federalism, and what that means for cities today, while part three examined federalism in the context of the American educational system. Today we’ll look at how local-federal partnerships support innovation and entrepreneurship.

Cities are laboratories for innovation. It’s no secret that it is in cities where local leaders are continuously seeking out innovative solutions for tough problems. We have seen this exhibited particularly well in the small business and startup space. Local leaders are accelerating the unique ideas that make all cities thrive through the development of innovation districts, business incubators and shared working spaces.

The entrepreneurial ecosystems that have sprung up across the country enable cities to leverage existing business and draw in new companies that help foster creativity and technological breakthroughs in our nation’s urban places.

This type of innovation is exhibited in not only the largest metropolitan regions of the country, but also in places like Chattanooga, Tennnessee; Coralville, Iowa; and Kansas City, Missouri. Whether one examines the industry-leading app development in Coralville or the way Chattanooga and Kansas City are leveraging the power of gigabit speed internet as a backbone, these cities show that specialization and nurturing creative home-grown ecosystems works quite well.

In our own recent work on Chattanooga’s innovation district, we found that one of the critical factors for success was clear goals and close coordination between the city, the business community, the university, and the nonprofit sector in order to catalyze success and develop a critical path forward. Utilizing and reimagining the downtown of the city was just one key factor here, with another being the mayoral leadership of Andy Berke tied together with long-standing civic engagement in the community.

The fact that top-selling education apps are coming out of Coralville, Iowa, is not an accident – it took deliberate planning and partnerships. This community is just outside the area referred to as the creative corridor and is thus able to leverage the talent and resources needed to grow. In Kansas City, the Kansas City Startup Village is a great example of an entrepreneurial community that supports the city’s startup ecosystem. With the city’s rollout of Google Fiber tied together with its smart city initiative, there are a number of critical components in place. Thanks to the leadership of Mayor Sly James on these issues and many more, the city is doing the right things to promote entrepreneurialism and grow startup businesses.

This innovation that we observe in cities has a great deal to do with local partnerships. We also need strong partnerships at the state and federal level because they play such an important role in helping innovation and economic development thrive. One key example of this is found in the innovative companies in every corner of the country that are part of the U.S. Small Business Administration’s Growth Accelerator Fund Competition, which helps grow amazing companies nationwide.

History of Federal Funding for Small Businesses

The Small Business Administration (SBA) was established in 1953 by President Dwight D. Eisenhower as an independent agency with the signing of the Small Business Act. Since then, the agency has been responsible for delivering millions of loans, contracts, counseling sessions and other forms of direct assistance to small businesses. Throughout its history, the SBA has at times been somewhat of a pawn in political chess, with levels of support waxing and waning depending on the administration in power.

Most recently, Linda McMahon, co-founder of World Wrestling Entertainment, was confirmed as the SBA administrator. During her Senate confirmation hearing, Administrator McMahon walked back statements regarding folding the SBA into the Commerce Department, saying her priority in the first few months would be disaster relief programs. With the strong role the SBA plays in supporting entrepreneurialism in cities, the hope is that ongoing partnerships can be maintained and grown in the coming years.

Why the SBA Matters to Cities

The SBA matters to cities for a multitude of reasons. Connecting small businesses with the SBA and SBA-approved lenders is a critical role of many local economic development officials. The SBA has recently been supportive of entrepreneurs in cities by encouraging cities to sign on to Startup in a Day, an effort built in partnership between the SBA and the National League of Cities (NLC) to streamline city permitting and licensing procedures.

The SBA also serves a rebuilding role in cities. It has frequently been called on to revitalize cities struck by riots and unrest, from the Long, Hot Summer of 1967 to Los Angeles in 1992 and Baltimore in 2015. While the amount of support the SBA provides to cities is critical for a number of reasons, at the end of the day the economy of the country is reliant on cities. This is why the federal relationship is so important. The SBA has a loan portfolio of $124 billion, and these dollars are directly related to the nation’s growth. The SBA provides important counseling, educational and technical assistance to cities as well.

A Path Forward for Startups & Innovation in Cities

In thinking about a path forward for startups and growing innovation in cities, it is necessary to reiterate the importance of maintaining and strengthening the federal relationship. If instead of growing this support decisions are made to diminish it, the decreased federal funding available to small businesses will ultimately hurt cities and, therefore, national economic growth.

It is necessary to create a strong plan focused on increasing entrepreneurialism in our country. Statistics show entrepreneurialism is nearing a 40-year low and the pace of IPOs has slowed. However, the nation is in a good position to turn that around – according to a new survey from JPMorgan, the leaders of small- and medium-sized businesses are saying they are more enthusiastic about the U.S. economy in 2017. That survey found that 68 percent of respondents were encouraged about the outlook for local economic conditions, representing an 18-point increase from 2016.

Let’s leverage that potential for growth with startups and others in the entrepreneurial community. Innovation will continue to percolate from the ground up – but in order to truly grow this opportunity, cities need a partner in the White House and in statehouses nationwide to unleash economic dynamism and continue innovating.

To learn more about what NLC is doing in this policy arena – and make your voice heard at the federal level – join us at the Congressional City Conference in Washington, D.C., March 11-15.

About the author: Brooks Rainwater is Senior Executive and Director of the Center for City Solutions and Applied Research at the National League of Cities. Follow Brooks on Twitter @BrooksRainwater.

Research, Innovation and Cities: The Year in Review

Throughout 2016, NLC’s Center for City Solutions and Applied Research presented and spoke on a wide range of city topics to audiences from San Francisco to Shanghai and everywhere in between – making sure that, wherever possible, city voices are elevated and heard.

Photo by Jason Dixson Photography. www.jasondixson.com

NLC continues to shape the national dialogue on cities, work with city leaders on the ground, and help local officials lead. Pictured here at City Summit 2016 discussing the future of autonomous vehicles in cities: Jon Shieber, senior editor at TechCrunch; Debra Lam, chief innovation & performance officer of Pittsburgh; Justin Holmes, director of corporate communications and public policy at Zipcar; Brooks Rainwater, senior executive and director of Center for City Solutions and Applied Research. (Jason Dixson)

This year has been one of growth and success for NLC’s Center for City Solutions and Applied Research (CSAR). Throughout 2016, we released impactful research across a range of focus areas – from the nuts and bolts of governing to future transportation and workforce shifts, innovation districts, and what cities need to know about drones.

We published familiar annual titles including our State of the Cities report, which analyzes the top issues for our nation’s mayors. We released the 31st edition of our City Fiscal Conditions report, which found that cities’ fiscal positions are strengthening as they continue to recover from the great recession. We finished out the year with our City of the Future research focusing on the critical role that automation and other disruptive changes are having on the workforce. At the core of each of these research products, our primary focus is analyzing how major, timely issues will impact cities.

Coinciding with our broad research agenda, CSAR experts have been on the ground in cities across the country working hand in hand with mayors, councilmembers, and city officials to build equitable, sustainable, financially sound communities that are prepared for future opportunities and challenges. And, in response to the growing opioid crisis, CSAR worked across NLC and together with the National Association of Counties (NACo) to convene the City-County Task Force on the Opioid Epidemic, which recently published recommendations to help local officials to put an end to the epidemic.

Our Rose Center for Public Leadership continued its leading work on local land use challenges with the 2016 class of Daniel Rose Fellows. Those cities included Denver, Rochester, N.Y., Long Beach, Calif., and Birmingham, Ala. The Rose Center also launched the first-ever Equitable Economic Development Fellowship, selecting six cities to participate in its inaugural year: Boston, Houston, Memphis, Milwaukee, Minneapolis, and Charlotte, N.C. This fellowship builds the capacity of America’s cities to ensure that prosperity is shared across their communities.

CSAR’s Sustainable Cities Institute (SCI) launched new programs in 2016 that support and recognize NLC members’ efforts to preserve a clean environment, promote green jobs, and tackle climate change. The SolSmart program was launched in April to help cities make it easier for their residents and businesses to go solar. SCI also announced Leadership in Community Resilience, which is working with 10 cities from around the country to help local officials, city staff, and community partners share their experiences and advance local resilience efforts.

This year our team also incorporated NLC University into the Center, working to provide more focused programming and expanded capacity for city leaders. One example of this shift can be seen in this year’s City Summit attendance in Pittsburgh, where we had a 60 percent increase over last year. Additionally, with the hiring of new staff, we are looking to expand online learning and enhance the annual Leadership Summit.

NLC continues its work to end veteran homelessness, encouraging local leaders to make a permanent commitment to make homelessness rare, brief and non-recurring. Through our leadership on the Mayors Challenge to End Veterans Homelessness, we facilitated on-the-ground engagement and assistance to city officials nationwide. We also continue to work together with the State Municipal Leagues on an annual research project focused on the critical intersections between city and state policy. This year we published Paying for Local Infrastructure in a new Era of Federalism, offering a state-by-state analysis of infrastructure financing tools.

CSAR also hosted a number of large events across the country. In the spring, we held the third annual Big Ideas for Cities event with a range of compelling stories from our nation’s mayors, expertly facilitated by the Atlantic’s James Fallows. In the fall we hosted the Big Ideas for Small Business Summit with economic development officials from 25 cities sharing strategies for building local small business and entrepreneurial ecosystems. Most recently, we hosted the second annual Resilient Cities Summit with the Urban Land Institute and U.S. Green Building Council, which brought together mayors from 15 cities across the country to focus on critical resilience strategies. These annual events allow NLC to elevate the voice of city leaders on issues that matter to communities across America.

Through our work on these important issues, we solidified partnerships with agencies across the federal government and worked with them on key programming, ensuring we are effectively communicating the voice of cities at every level. Some of these included: Small Business Administration for Startup in a Day, the Department of Veterans Affairs on veterans homelessness, the Department of Housing and Urban Development on the Prosperity Playbook, and Department of Energy on Net Zero Energy.

Throughout the year, our team presented and spoke on a wide range of city topics to audiences local, national, and global – from San Francisco to Shanghai and everything in between – making sure that, wherever possible, city voices are elevated and heard. We continue to help shape the national dialogue on cities, work with city leaders on the ground, and help mayors and councilmembers learn and lead – and we look forward to our work in 2017.

Read our 2016 publications:

About the author: Brooks Rainwater is Senior Executive and Director of the Center for City Solutions and Applied Research at the National League of Cities. Follow Brooks on Twitter @BrooksRainwater.

 

The Recipe for Economic Development

In this Big Ideas for Cities feature, Miramar, Florida Mayor Wayne Messam discusses the economic development tools that have helped fuel the city’s success.

Located a short distance from both Fort Lauderdale and Miami, Fla., the City of Miramar was founded as a “bedroom community” in the 1950s. Since 2000, however, the city has charted a new path, doubling its population and significantly growing its economy. But like a lot of cities, the economic downturn of 2008 forced the city to think creatively about maintaining the services residents and businesses demand despite decreasing revenues. In this Big Ideas for City’s talk, Mayor Messam discusses how the community has leveraged its unique assets with economic development strategies to keep the city moving forward.

Do you have a big idea? Since 2014, the National League of Cities’ Big Ideas for Cities series has featured cities and businesses that are using “big ideas” to drive communities forward. The series has quickly become a popular platform for leaders to share their success stories and describe, in detail, the steps they’ve taken to make their communities better.

We are currently accepting speaker submissions. Leaders are invited to share the best practices and innovative solutions moving their cities forward. The series is filmed year-round and open to individuals from all sectors – public, private and nonprofit. Talks are filmed at NLC’s studio in our new building on North Capitol Street in Washington, D.C.

Screen Shot 2015-04-20 at 8.58.14 AMAbout the author: Tim Mudd is the Program Manager for Content and Social Media at the National League of Cities. Follow Tim on Twitter at @TimMudd.

How to Grow an Inclusive Economy

In this Big Ideas for Cities feature, Compton, California Mayor Aja Brown discusses what it takes to ensure the benefits of economic development reach all residents.

Most people know the City of Compton, California from NWA, but there’s a lot more to the city’s story. In this Big Ideas for Cities talk, Compton Mayor Aja Brown discusses how the city reduced its homicide rate, lowered the unemployment rate and increased economic opportunity. “Economic growth—and connecting it to disadvantaged populations—is key to a community’s success,” says Mayor Brown.

Do you have a big idea? Since 2014, the National League of Cities’ Big Ideas for Cities series has featured cities and businesses that are using “big ideas” to drive communities forward. The series has quickly become a popular platform for leaders to share their success stories and describe, in detail, the steps they’ve taken to make their communities better.

We are currently accepting speaker submissions. Leaders are invited to share the best practices and innovative solutions moving their cities forward. The series is filmed year-round and open to individuals from all sectors – public, private and nonprofit. Talks are filmed at NLC’s studio in our new building on North Capitol Street in Washington, D.C.

Screen Shot 2015-04-20 at 8.58.14 AMAbout the author: Tim Mudd is the Program Manager for Content and Social Media at the National League of Cities. Follow Tim on Twitter at @TimMudd.

How to Reinvent a Struggling Downtown

In this Big Ideas for Cities feature, Little Rock, Arkansas Mayor Mark Stodola discusses how creative placemaking can drive economic development in a city’s downtown.

How can a city reinvent a downtown after it’s been ‘dead’ for 30 years? In this Big Ideas for Cities talk, Little Rock Mayor Mark Stodola discusses what it takes to make a struggling downtown come back to life. “When the core of a downtown—when the heart a downtown—is thriving,” says Mayor Stodola, “the rest of the city is going to thrive as well.”

Do you have a big idea? Since 2014, the National League of Cities’ Big Ideas for Cities series has featured cities and businesses that are using “big ideas” to drive communities forward. The series has quickly become a popular platform for leaders to share their success stories and describe, in detail, the steps they’ve taken to make their communities better.

We are currently accepting speaker submissions. Leaders are invited to share the best practices and innovative solutions moving their cities forward. The series is filmed year-round and open to individuals from all sectors – public, private and nonprofit. Talks are filmed at NLC’s studio in our new building on North Capitol Street in Washington, D.C.

Screen Shot 2015-04-20 at 8.58.14 AMAbout the author: Tim Mudd is the Program Manager for Content and Social Media at the National League of Cities. Follow Tim on Twitter at @TimMudd.

What It Takes to Be a Comeback City

In this Big Ideas for Cities feature, Gary, Indiana, Mayor Karen Freeman-Wilson discusses how pulling together the right team, the right ideas, and the right plan has set the city up for a resurgence.

When Karen Freeman-Wilson became mayor of Gary, Indiana, she faced persistent challenges such as crime and blight — but around the time she came into office, the city lost a significant portion of its revenue as well. “So much of [today’s] discussion is framed in the context of the recession of 2008,” said Mayor Freeman-Wilson in her Big Ideas for Cities talk. “That didn’t really mean a whole lot for us. In 2006, the state of Indiana passed permanent property tax caps. And by 2012, they became a part of our constitution, meaning that residential tax-payers paid one percent, commercial two percent, and industrial tax-payers paid no more than three percent. The long and short of that is: on the day I took office, I lost 60 percent of my property tax budget.”

Gary, Ind. Mayor Karen Freeman-Wilson delivers her Big Ideas talk in Miami Beach, Florida. (Jason Dixson Photography)

Gary, Ind. Mayor Karen Freeman-Wilson delivers her Big Ideas talk in Miami Beach, Florida. (Jason Dixson Photography)

Do you have a big idea? Since 2014, the National League of Cities’ Big Ideas for Cities series has featured cities and businesses that are using “big ideas” to drive communities forward. The series has quickly become a popular platform for leaders to share their success stories and describe, in detail, the steps they’ve taken to make their communities better.

We are currently accepting speaker submissions. Leaders are invited to share the best practices and innovative solutions moving their cities forward. The series is filmed year-round and open to individuals from all sectors – public, private and nonprofit. Talks are filmed at NLC’s studio in our new building on North Capitol Street in Washington, D.C.

Screen Shot 2015-04-20 at 8.58.14 AMAbout the author: Tim Mudd is the Program Manager for Content and Social Media at the National League of Cities. Follow Tim on Twitter at @TimMudd.

How the City of Chattanooga Became a Destination for Innovation

In this Big Ideas for Cities feature, Chattanooga Mayor Andy Berke tells the story of how his city became a hotbed for entrepreneurship and innovation.

When Andy Berke became mayor of Chattanooga, Tennessee, in 2013, he imagined a city where frequent interaction, intellectual and creative collisions, and knowledge spillovers would be routine. Whereas the outgoing city administration worked to revive the city’s ailing industrial sector through the recruitment of traditional manufacturing businesses, Mayor Berke believed the city’s future prosperity was tied, in part, to the innovation economy and would require a comprehensive overhaul of past economic policies.

“In Chattanooga, we know the pain of holding onto the past for too long, because we’ve done it,” says Mayor Berke. “When we talk about economic resiliency and the way mid-size cities can be a part of the future of our new economy, it has special meaning for Chattanooga.” In this talk, learn how this once struggling manufacturing town has orchestrated an economic success story, clustering talent, startups, established firms, nonprofits, research institutions and cultural assets to drive economic revitalization.

Chattanooga Mayor Andy Berke delivers his Big Ideas talk in Miami Beach, Fla. (Jason Dixson Photography)

Chattanooga Mayor Andy Berke delivers his Big Ideas talk in Miami Beach, Florida. (Jason Dixson Photography)

Do you have a big idea?

Since 2014, the National League of Cities’ Big Ideas for Cities series has featured cities and businesses that are using “big ideas” to drive communities forward. The series has quickly become a popular platform for leaders to share their success stories and describe, in detail, the steps they’ve taken to make their communities better.

We are currently accepting speaker submissions. Leaders are invited to share the best practices and innovative solutions moving their cities forward. The series is filmed year-round and open to individuals from all sectors – public, private and nonprofit. Talks are filmed at NLC’s studio in our new building on North Capitol Street in Washington, D.C.

Related resources

Screen Shot 2015-04-20 at 8.58.14 AMAbout the author: Tim Mudd is the Program Manager for Content and Social Media at the National League of Cities. Follow Tim on Twitter at @TimMudd.