Posts Tagged “eds and meds”

Higher Education and the Battle for Amazon’s Next Global Headquarters

Multiple media reports appeared last week about the efforts by American cities, backed by their state governments, to lure the merchandizing giant Amazon’s second global headquarters to their regions. The company will entertain proposals until October 19.

Amazon set general parameters and has a history in Seattle that forecasts what mix of opportunities it might seek in this $5 billion expansion that may produce as many as 50,000 new jobs. The stakes are high for the North American cities — including Denver, Minneapolis/St. Paul, Dallas, Toronto, Pittsburgh, Austin, Atlanta, Washington, and Boston — that will likely make serious bids for Amazon.

Boston wins on points for the following reasons:

  • Boston recently attracted the global headquarters of General Electric into a strong, entrepreneurial, global-based economy.
  • Boston has a well-connected international airport.
  • Its winter weather is no worse than what hot and oppressive summers offer in Dallas,
    Atlanta, Austin, and Washington.
  • The Greater Boston economy is healthy and diversified.
  • Boston operates one of the country’s largest public transit systems, now being upgraded after years of neglect.
  • It can offer or piece together large tracts of land to create a new Amazon campus near its thriving downtown.

Boston also has a strong sense of self that mirrors the social, psychological, and cultural mix that also makes Seattle so attractive to Amazon. In fact, Boston’s potential is enormous. It ranked third in A. T. Kearney’s Global Cities 2016 Outlook study. This study looked at both a city’s current performance — based on business activity, human capital, information exchange, cultural experience, and political engagement — and its projected success, based on how personal well-being, economics, innovation, and governance have changed over time.

Obviously, the City of Boston and the Commonwealth of Massachusetts have a role to play in the bid for Amazon’s headquarters. It’s complicated politically by the run-up to the 2018 elections and the ability and willingness of some bidders to buy Amazon’s commitment through cash and regulatory and tax incentives.

Massachusetts’ politicians should capitalize on a full range of existing programs and incentives but focus on improvements that would benefit its citizens – especially transit upgrades – to answer local questions about “what’s in it for me” rather than try to outbid others financially.

Amazon’s vision must be tied inexorably to a broader, more encompassing and inclusive vision for New England in the 21st century.

Boston’s Bid for Amazon Must Be Built on its Culture of Innovation

Where Boston truly pulls ahead of potential suitors is on the dynamics of its creative culture. Boston rose into the ranks of global cities because it reinvented itself over the past 40 years, while maintaining a historic commitment to wealth management, defense, insurance, and manufacturing, among other core industries. In the eyes of many, it has become the leading example of an “eds and meds” culture, anchored by global heavyweights like MIT and Harvard.

The foundation upon which Boston’s bid for Amazon must be built is higher education writ large.

New England’s colleges and universities have produced a culture of collaboration, creativity, and innovation that permeates its economy, particularly in biotech and medical research — a culture that matches the creative mix of cities like Austin.

What is different, however, is the depth and diversity of the collaborative culture that took root in New England. There is simply more of the historic ingredients available at a scale, maturity, investment capability, and management expertise than possible among other bidders. Visiting Kendall Square or the Seaport District, you sense it as you feel it.

Higher Ed Leadership Must Step Forward to Make Boston’s Case for Amazon

By challenging local leaders to imagine the possible, my hunch is that Amazon was not looking to extract the most ransom but more likely interested in seeing what creatively might emerge to judge its best fit. And this is where higher education leadership must step forward. Even the strengths associated with MIT and Harvard will not win the bid.

The core argument must be that Boston has produced the best model for nurturing the next creative generation in America. In doing so, Boston must also make the case as the logical choice to set Amazon’s future strategically within a global economy.

It begins with New England’s colleges and universities whose combined size, overall quality, skilled alumni and student bases, regional work ethic, and collaborative integration provide the resources that Amazon needs.

Almost 100 colleges and universities are within a two-hour drive of Boston to nurture this creative energy — a fact unmatched elsewhere in North America.

Beyond a skilled labor force that can be rapidly grown, higher education must offer concrete examples of collaboration that point to innovation and re-imagination. Massachusetts has come a long way from a manufacturing economy once based on shoes, textiles, and machine parts production, banking, insurance, defense, and electronics.

Boston became a biotech powerhouse over the past 20 years, for example, because its leadership – especially in higher education — could imagine the possible.

Higher education is the economic engine that built the booming Boston that we know today. In the end, sometimes money and tax breaks aren’t always enough. In its bid for Amazon, Boston must demonstrate why.

Larry Summers Calls for Investment in Life Sciences, Infrastructure, Education

There is some truth to the saying that those who fail to learn from the past will be doomed to repeat it.

Essentially, this was the message that former Treasury Secretary Larry Summers delivered recently as part of his larger concern that Massachusetts not become complacent despite U.S. unemployment hitting a 10-year low in April.

In an interview with the Boston Globe, Summers compared the problem facing the state — the lure of complacency — to what he found on assuming the Harvard presidency, as Stanford cleaned Harvard’s clock as all things Internet came to dominate the new American economy. The impact locally on Route 128’s hold as “America’s technology highway” was dramatic.

The emergence of biotechnology saved the Boston area from a precipitous decline in economic standing among major innovation regions in a technology-driven global economy.

Mr. Summer’s admits that Massachusetts’ $500 million state deficit might make his call for investment seem a bit odd as Massachusetts’ governor, Charlie Baker, works to close the gap. He argues: “Ironically, sometimes not spending money is taking a much bigger risk than spending money, because it’s gambling with your preeminence.”

Further, Mr. Summers warns that some budget balancing acts, like trying to reign in Medicaid spending (40 percent of the state’s budget) as well as fees on employers and caps on health care might have the opposite effect.

Massachusetts is “Eds and Meds” Capital of the World

Massachusetts stakes a claim as the “eds and meds” capital of the world. Mr. Summers asserts that Medicaid may appear to be a budgetary expense, for example, “but at the margin, it’s coming out of being the place where the smartest scientists want to come and work their miracles.” He suggests that the efforts to end Obamacare and replace it with Trumpcare, moreover, could effectively destabilize the state’s critical health care economy. And Mr. Summers notes that rival technology regions like New York are already making heavy state investments in new life science initiatives.

Mr. Summer’s comments have tremendous implications for the role that American higher education will play in the American economy in the future. When the U.S. House of Representatives passed its version of a new health care bill, it legislated changes that impacted one sixth of the American economy. Separate out how and why this was done. Set aside the timing tied to the first 100 days of the new Trump Administration.

The facts are that the American economy is a little like a three-dimensional chessboard. Any move has a dramatic effect that must be comprehended on multiple levels.

Higher Education Is Foundation of U.S. Economic Competitiveness

There’s much at stake for higher education that reaches beyond the different political philosophy, chronic dysfunction, and incremental governmental bureaucratic practices. From an economic perspective, higher education plays two important roles in the American economy:

  • The first is that it trains an educated workforce through programs that adjust this education to evolving economic needs.
  • The second is that the “eds and meds” complexes of America largely moved the American economy – and the regions that they support — into a competitive post-industrial global economy. They are the foundation for the future of American competitiveness in a global market.

These centers of innovation and creativity are typically in urban, blue states or in regions where the voters historically vote or are trending blue. They inhabit one side of a cultural divide in an anxious America. They welcome immigrants, many of whom provide the talent and skill sets to keep the “eds and meds” miracle happening. As such, the “eds and meds” community has a great deal at stake as the states and the federal government move the chess pieces around.

Many in the western U.S. repeat a saying that is pertinent to this discussion: “I’m from the government and I’m here to help.” But, in fact, government at all levels does have the perspective and resources that can move the needle.

What government lacks are the courage and consensus to put an investment strategy in place. Government funding is a rationing tool built on an annual funding cycle. This hardly supports imaginative and enlightened government policy and programs.

We can have the debate over whether higher taxes, deficit funding, or better economic growth will ultimately pay the investment bill. But America must get over its deeply partisan divide to support what drives the American economy.

Mr. Summers was right. Having the vision and confidence to invest strategically — despite the competing pressures on government budgets — makes sense. Combining the social and cultural need to invest in better schools with the economic necessity to make infrastructure and life science investments is a sane path forward.