Happy New Year! This month we discuss concentration, maintaining focus, and the habits to achieve our objectives.
Concentration is awareness, the calling of attention and awakening of a motive. Focus is the fundamental resource used to arrive at an established goal. Habits develop at the intersection of knowledge, skill and desire.
Knowledge is the theoretical paradigm, what to do, and the why. Skill is how to do. And desire is the motivation, the want to do.
Ask yourself, what is the one thing I can do, that in doing it , the rest becomes easier or unnecessary? Developing focus leads to discipline and good habits. The Organization of activities and establishment of priorities (important and urgent) are key factors in a strong plan towards a vital economy.
As seen below in the Chief Economist perspective, Marin is an affluent place, but poverty is a factor to watch. MEF strives to support a vital economy through engaging Marin’s key stakeholders to develop focus and the discipline of good habits. Change must be motivated by a higher purpose, by a willingness to subordinate what we think we want now for what we want later.
As the saying goes, “The distance between the dream and the reality is called discipline.”
Until next month, let us all develop focus through discipline and good habits to do that one thing, that in doing it, the rest becomes easier or unnecessary.
The Marin Economic Forum (MEF) is a public-private partnership, serving as the platform for collaborative efforts on improving Marin County’s economic vitality, while seeking to enhance social equity and environmental protection. Visit www.marineconomicforum.org to learn more about our collaborative efforts.
Chief Economist, Dr. Robert Eyler
Marin County and Post-Recession Demography: Part 1
Every year, the Census Bureau updates its database with a survey called the American Community Survey (ACS). The ACS is meant to be the Census before the Census, a rolling five-year window of Census-like data in summary form. The surveys are shorter and focused on major data items in four categories:
1. Household Composition
2. Economic Characteristics
3. Housing Characteristics
4. Demographics
This month, I look at some of the standout data that are in this survey for Marin County versus California overall, and also discuss what is missing. These data are an average from 2011 to 2015, the post-recession era to date. The data can be found at factfinder.census.gov. MEF is working on these data as quick graphs on our website; please see www.marineconomicforum.org soon for our data pages. This is part one of a two-part series.
Households
These data describe how households (people living in a home) form that household. Some households are married people, some are a person living alone, some are people living together unmarried. In Marin County, 50 percent of households are married couples, 0.9 percentage points above the state average. 31 percent of Marin County households are someone living alone; for California, that number is 24.1 percent. 30 percent of households have a child under 18 years old in Marin County, where the state average is 36.1 percent of households. 33.9 percent of Marin County households have someone over 65 years old in the home versus only 26.3 for California.
Economic Status
Approximately 65 percent of Marin County’s population is in the labor force (working or looking for work). For California, it is 63.6 percent of the population. Marin County has 60.3 percent of the female population in the labor force, where California is 57.3 percent. A standout data point is that 10.1 percent of workers work from home in Marin County versus 5.3 percent for California overall; this data helps corroborate a long-standing hypothesis that Marin County has a large amount of home-based businesses versus the state. Further, 15.3 percent of Marin County’s working population is self-employed versus just 8.3 percent in California on average. Over 41 percent of Marin County’s working population works in professional or business services or education or health care versus just 34 percent for California overall.
Two data points that lead to a lot of questions for me include median income and poverty data. For Marin County, median household income is estimated at $93,257 as an average of 2011 to 2015. California is $61,818. Marin County is among the highest median household incomes in the United States by county. In terms of poverty, 8.3 percent of Marin County’s population is in federal poverty conditions, while 16.3 percent of California’s population is estimated to be in federal poverty conditions. Marin County has the lowest poverty rate of any county in California with at least 250,000 residents.
Final Takes
These data are snapshots and should be compared to history. My intention here was to provide the current snapshot, as stated by the Census Bureau, but also provide a flavor of what is reported annually. Advocates, elected officials, government staff workers, local businesses, and some residents in Marin County have asked for these data over time, and the data are not comprehensive. There is more depth and comparisons available from the Census Bureau.
The household composition and economic data suggest that Marin is an affluent place, but poverty is a factor to watch. While relatively low, 8.3 percent of the population living under the federal poverty line suggests that there are even more people living marginally in Marin County due to the high local cost of living. The federal poverty line in 2015 was an annual income of $24,250 for a household of four people. Poverty likely includes some older residents, and an aging population is something we will look at next month as we add housing unit characteristics and demographics.
Board Corner
MEF Board Director, Frank Borodic, Roundstone Inn Marconi Conference Center and Historic State Park
Frank Borodic, MEF Board director and owner of Rounstone Inn (roundstonefarm.com), is working to preserve a state historic landmark. The Marconi Conference Center (marconiconference.org) and State Historic Park has a rich human history that dates back hundreds of years. From the pre-historic villages of the coastal Miwok to the farming communities of today, the Tomales Bay ecosystem has supported the livelihoods of thousands of people.
As a treasure to the Marin community, Marconi Conference Center offers a distraction-free environment, professional-caliber meeting space, comfortable lodging, delicious and healthful meals and a conference staff that is skillful. Accommodating and guest-oriented, the lodging buildings are nestled around a garden courtyard that offers an ideal spot guests to relax.
This historic state park is in need of renovations and the Marin Economic Forum is pleased to provide our services to assess the economic benefit and recommendation towards keeping this treasure alive for future generations to enjoy.
Next time you find yourself on the Point Reyes coast in Marshall, stop by the Marconi Conference Center and Historic Park for a unique and beautiful west Marin experience.
Upcoming Events
Construction Development/Commercial Real Estate Working Group Wednesday, January 11, 1:00pm - 2:00pm 555 Northgate Dr, San Rafael 94903
Finance Industry Working Group Wednesday, January 11, 2:30pm - 3:30pm 555 Northgate Dr, San Rafael 94903
Board Meeting Friday, January 27, 2016, 8:30—11:30am Buck Institute, 8001 Redwood Blvd, Novato
MEF Business Professional’s Collaboration and Education Group Thursday, January 19, 2017, 5:00pm—7:00pm Community Room, Drake’s Landing, Larkspur Visit www.MarinBusinessForum.com for details.
Annual Economic Forecast 2017 Friday January 20, 2017, 8:00am—11:00am Yellen Conference Center, 101 Market St, San Francisco 94105 Visit www.BayAreaCouncil.org for details.
Destination Management Working Group Wednesday February 1, 2017, 1:00—2:00pm 555 Northgate Dr, San Rafael 94903
Innovation Working Group Wednesday February 1, 2017, 2:30—3:30pm 555 Northgate Dr, San Rafael 94903
Finance Committee Wednesday, February 8, 2017, 10:30—11:30am 555 Northgate Dr, San Rafael 94903
Issues Committee Friday, February 10, 2017, 8:30—9:30am, 10:30—11:30am 555 Northgate Dr, San Rafael 94903
Financial advisers in Marin say it’s a good time to review investments, as Donald Trump’s victory in the U.S. presidential election appears to be signaling a strong stock market.
“If you’re not investing, you should be putting your toe in,” said Neil Hennessy, CIO of Hennessy Funds in Novato.
Since Nov. 8, the stock market has seen some ups and downs, rising to record numbers last week. Investors nationwide have been betting that with Trump in office, and with a Republican-led Congress, there will be a push to deregulate energy and banking, cut taxes and increase government spending on infrastructure, making it the opportune time to invest and buy stock in the financial and commodities sectors.
However, Hennessy said investors should pay less attention to what might happen in a Trump administration and focus on the fact that “business is very resilient,” and that “everything points to a higher market” because of that.
The late 20th century was a period of major social, economic and political changes. It was also a time in which there were big changes in knowledge – in how people see knowledge and how they use it. This period is now widely known as the beginning of the Knowledge Age – to distinguish it from the Industrial Age.
The Knowledge Age is a new, advanced form of capitalism in which knowledge and ideas are the main source of economic growth (more important than land, labour, money, or other ‘tangible resources). New patterns of work and new business practices have developed, and, as a result, new kinds of workers, with new and different skills, are required.
As well as this (and this is very important for education), knowledge’s meaning is changing. Knowledge is no longer being thought of as ‘stuff’ that is developed (and stored) in the minds of experts, represented in books, and classified into disciplines. Instead, it is now thought of as being like a form of energy, as a system of networks and flows – something that does things, or makes things happen. Knowledge Age knowledge is defined—and valued—not for what it is, but for what it can do. It is produced, not by individual experts, but by ‘collectivising intelligence’ – that is, groups of people with complementary expertise who collaborate for specific purposes. These changes have major implications for our education system.
As schools prepare young people for successful lives in the 21st century, new skills and dispositions are being developed. This can’t be done simply by adding these ‘new’ skills and dispositions to the existing curriculum. To build a 21st century system, a new mindset is required that can take account of the new meaning of knowledge and the new contexts and purposes for learning this knowledge. ‘21st century learning’ is a shorthand term that draws together the ingredients of this new mindset.
The changes discussed earlier are primarily economic and work-related. Education is, of course, about much more than simply preparing people for work. It has other important goals: for example, developing social and citizenship skills, providing equal opportunity, and building social cohesion. Expressed this way, these are 20th century goals.
What might these goals look like in the 21st century context?
The shift to 21st century society involves much more than the economic changes outlined earlier – major social and political changes are also happening.
Guidance by Hope is good. Guidance by Planning is better. Guidance by Planning + Hope is best.
The Marin Economic Forum (MEF) is a public-private partnership, serving as the platform for collaborative efforts on improving Marin County’s economic vitality, while seeking to enhance social equity and environmental protection.
Until next month, MEF wishes you a new year full of good health and prosperity.
Chief Economist, Dr. Robert Eyler
What Next?
While you may feel beat up from the September and October election rush, and worse due to the election results, it is now time to plan for what is coming. Generally, the economy is not affected by presidential elections alone or over the long-term; the combination of presidential and congressional elections resulting in consolidation of Republican control is concerning the Democratic party and many Americans on both sides of the aisle as to how the economy reacts and the long-term effects on national debt and our labor markets. Concerns are due mainly to uncertainty, and we have heard a lot of promises. With 2017 just around the corner, here are the key things I am watching (for now) as an economist.
ACA unwind/De-regulation of Health Care
After years of set-up, beta testing, preparing for change, and now living under the Affordable Care Act (ACA), there are rumblings that the Trump administration plans to engage in a “repeal and replace” agenda in health care. This may be part of a broader framework to change health insurance conditions for many Americans by reducing the current system’s availability and revert to a more market-driven system. How this allows insurance companies to reduce their costs, how it begins steps toward reducing regulations in health care and financial markets, and also exacerbates the actual, patient costs of medications and medical care generally depends on how the ACA is replaced. The implications could drastically change the economics of health care and how people use American health systems (or do not use them at all due to a lack of affordability).
Immigration and internal labor markets
One of the other marginally controversial topics from the Trump camp was what to do about immigration. From the election season, the idea that the United States needs immigration reform was generally accepted. The way that happens, how it changes family and labor dynamics, and its ability to be enforced well, are all open questions. As economists, the labor-market interference such a process begins -- even before any change based on actual legislation – can change the way in which small businesses hire, wages they face, and all this coming in California at the same time as new minimum wage legislation is to go into effect. The flow of people over US borders for work purposes is likely the first battleground: will companies be penalized for not using Americans as a workforce for goods sold in America? Recent events suggest a disconnect between rhetoric and reality here.
Taxation
Taxes were one of the major debate topics in 2016, and are a great way to buy political victories in the short term. Much like a tax cut’s cousin, more fiscal spending, there are both short and long term effects. In the short term, a reduction of tax rates and a “broadening of the base” (more entities, corporate or households) paying taxes increase fiscal deficits. Over time, if the base is broadened in such a way as to not detract the economic activity from which the tax is derived (for example, a national sales or services tax), tax revenues may rise. However, the risk that tax revenues may fall with lower taxes, that investment (the goal of lowering taxes if corporate taxes were to fall) would fall, and deficits and debt would rise, is high. Tax cuts do not have the same multiplicative effects on the economy as increasing spending specific to infrastructure, but are attractive political pawns to move.
Infrastructure investment
This is another point that both sides of the aisle and many economists feel is a way to sustain our current growth and prepare for two more generations of growth. The key to infrastructure investment by our federal government is the focus of that investment. The rhetoric has been to look at building a wall, or something that has the effect of an impermeable border, versus roads, bridges and dams as examples. Both would have the same, basic short-term effect; depending on the longer-term labor market effects of immigration reform. A focus on repairing and expanding infrastructure may also be regional and supporting older technologies (driving) versus new ones (wireless). Hence, how this would affect a place like Marin County is likely to be small, short of speeding up funding for the Novato Narrows, or more support for the SMART rail project.
Child care
Due to Measure A’s defeat in Marin County’s election, and Donald Trump’s victory in the national election, child care support from the public sector has a strange future. I was shocked that Marin County did not see itself wanting to subsidize this activity, where children under five years old would have an environment as envisioned in “Strong Start”. Will the Trump administration see child care as a priority and complement to working mothers? We do not know, but if the vote in Marin County did not make it through, it is tricky to see a congressional deal happening on federal child care soon.
In short, we have an election result we did not expect from a candidate that has no set agenda or political experience to date. The latter is coming soon, the former will need to come soon also if the American economy is to move forward less tentatively and guided by planning versus hope.
Board Corner
MEF Board Director, Chris Stewart, North Bay Life Science Alliance
The North Bay Life Science Alliance (NBLSA.com) was established by economic development and life science professionals, educators and public leaders across the region. Backed by an initial investment by the City of Novato and the Buck Institute for Research on Aging, the initiative will promote the region’s capabilities for advancing life sciences.
Anchored by the Buck Institute for Research on Aging and BioMarin, the North Bay is home to more than 200 life science organizations and hundreds of acclaimed researchers. In 2012, the Buck Institute alone attracted $40 million in national grants and the region drew in more than $10 million in National Institute of Health (NIH) grants.
California is the top destination for venture capital in life sciences, attracting more than the next eight ranked states combined. Not surprisingly, the industry is expanding beyond its traditional strongholds in the East Bay, the South Bay and the Peninsula. Providing access to the same resources as our neighbors, the North Bay has already emerged as an attractive alternative. More than 200 companies have chosen to base themselves in the region. In Marin County, life-science revenues are surging past $750 million and associated jobs are climbing toward 2,000. That activity is expected to grow and spread west on the basis of local success stories like these.
Destination Management Working Group Wednesday, December 7, 1:00pm - 2:00pm 555 Northgate Dr, San Rafael 94903
Innovation Working Group Wednesday, December 7, 2:30pm - 3:30pm 555 Northgate Dr, San Rafael 94903 Visit marineconomicforum.org for details.
MEF Business Professional’s Collaboration and Education Group Thursday, January 19, 2017, 5:00pm—7:00pm Community Room, Drake’s Landing, Larkspur Visit www.MarinBusinessForum.com for details.
Annual Economic Forecast 2017 Friday January 20, 2017, 8:00am—11:00am Yellen Conference Center, 101 Market St, San Francisco 94105 Visit www.BayAreaCouncil.org for details.
The recent passage of Brexit by voters in the United Kingdom raised many questions and had far-reaching consequences. And despite our small footprint, Marin County potentially will feel the repercussions.
Some good; some not so good.
Nonetheless, whatever the local outcomes, they should make us realize that this is an interdependent financial world that we live in.
And all the more reason that such organizations as the Marin Economic Forum continue to be an important informational, networking and idea exchange.
Because we (and the North Bay region) have several companies that compete on a global basis, there are three immediate issues to contemplate: housing and financial market performance, shifts in tourism flows, and trade links to the UK as either a marketplace or a gateway to mainland Europe.
The Brexit decision assures that we are likely to remember 2016 as one of the most politically intense years of the century.
While our presidential election is slowly building to a crescendo in November, the UK vote to leave the European Union has already changed the scenario that whomever we elect will have to face.
Because the UK’s currency is the pound sterling and not the Euro used in EU countries, the unwind will be more about how currencies are trading for each other and less about compliance.
But the disconnect from trade and financial infrastructure based on EU membership will be a large enough headache.
Marin County, housing may be positively affected for two reasons.
First, the outflow of capital toward the United States from the UK will further reduce pressure on interest rates; the Federal Reserve knows this and may now further delay interest rate increases to prevent the U.S. from becoming a magnet for UK wealth seeking the slightest of interest rate gains.
Mortgage rates should remain stable and low, and housing demand will remain supported.
Those residents with global investments may find losses from emerging markets that have ties to the UK (e.g., Indonesia and Malaysia); countries like Japan may be financial beneficiaries although auto sales to the UK (and wine sales there for the North Bay region) may suffer.
For Marin County businesses, trade and labor connections to the UK may be delayed or hampered.
U.S. trade relations otherwise should be little affected.
Businesses such as Autodesk and BioMarin may need to consider the size and scope of offices and business branches in the UK if they are utilized to service Europe more completely.
This may slow progress in life sciences generally, especially if global uncertainty is exacerbated by this situation.
For tourism, we may see a flip of British tourism for Americans.
Marin County residents may now plan trips to London that they have delayed if the pound’s value falls significantly. For UK travelers, the opposite might be the case, reducing their visits to Marin County, wine country and the greater Bay Area.
Businesses in Marin County, such as hotels and B&Bs and restaurants, may hear fewer UK accents.
Under the assumption that global uncertainty ebbs a bit after the tidal wave of opinions and concerns is done crashing over news channels, Marin County should be economically good after this is all said and done.
The UK has multiple reasons to sort the aftermath out quickly, and allow us to prepare for November and more political zaniness.
Robert Eyler is dean of the School of Extended and International Education at Sonoma State University as well as the chief economist for the Marin Economic Forum.
North Bay iHub celebrates the second annual North Bay Innovation Week highlighting innovation in the North Bay the week of Sept 12 – 16, 2016. In collaboration with iHub, Marin Economic Forum is hosting our 4th annual Marinnovation event on September 13.
iHub is a collaborative of partners dedicated to building a robust entrepreneurial ecosystem in Sonoma, Marin and Napa counties thru the promotion of innovation as a community building and job creation tool by providing entrepreneurs with resources to enable them to build successful businesses.
The information economy has impacted the way we currently work and will continue to impact the way we work. This economy values knowledge workers and our future depends on the workforce development strategies towards a sustainable economy. There are many ways to discover your value in our economy. One question to ask is, “Could the vast majority of your work responsibilities be automated by a “kludged together” Excel script?”
America is the wealthiest country on earth because for most of our history we have followed the basic principles of economic freedom. Said differently, our wealth is not preordained; it is not coincidence and is it not guaranteed to endure. Instead, our wealth is the direct result of deliberate action to abide by certain economic principles, laws, and freedoms, many of which are now slipping away.
Some portion of the persistent unemployment in our economy is structural in nature: There is a gap between the skills of the unemployed and the capabilities that are being sought by employers with unfilled job openings. Much of the structural unemployment we see is being caused by rapid technological innovation and the evolution of our economy, which increasingly demands workers with technical skills and experience. Conventional thinking might look at this problem and say that this phenomenon happens constantly; as economies grow, skilled workers are in increasing demand. We now face a situation in which technological innovation is altering the economy so rapidly that many workers are unable to make the adjustment and gain the retraining necessary to evolve with it.
A simple thought experiment: Let’s pretend you won $10 million in the lottery and you could only do one of the following two things with your windfall:
Option #1: Invest in a conservative portfolio of stocks and bonds and live comfortably on $300,000 – $400,000 per year in income.
Option #2: Start-up a new business that is creative and innovative and hires new employees to try and become successful.
Which option would you choose? There is no right or wrong answer here. Both options might benefit you, but only the second option is capable of being beneficial to the broader economy and society at large. New business formation and the creation, innovation, and job opportunities that come with it are the foundation of economic growth and prosperity.
MEF Chief Economist Update
by Dr. Robert Eyler
Entrepreneurship and Sustainability
Entrepreneurship and sustainability have a similar history in terms of how economists look at their definitions. Initially, we looked at entrepreneurship as “ideas”; economists think about four factors of production or inputs including labor, land, physical capital, and entrepreneurship. These ideas are paid profits, profits earned by the idea owner or ultimately the owner of a business that springs from intellectual capital (the idea). The entrepreneur’s role in our economy became more important as the economy began to monetize ideas more rapidly, and with large sums of money. There is a magazine with the title of “Entrepreneur” like “People” or “Time”; like sustainability, entrepreneurship has become a generalized term and no longer associated directly with its original meaning. Generally, we think of a smart person who started a business that was successful as an entrepreneur now. Economists still consider entrepreneurship an input to any and all businesses.
Successful businesses are the heart of every economy and all businesses began technically with an entrepreneur. We teach this subject throughout business school curricula; Dominican University of California has its MBA programs wrapped around the entrepreneur; Babson College has a satellite campus in San Francisco on the Embarcadero and Folsom Street, a college made famous for its focus on entrepreneurship as a core idea taught in its classes. The concept is everywhere, and everyone has some ideas about new products or innovations. Not all these ideas are commercial; television programs like Shark Tank provide a quick lens into the decision making that links financial markets to new ideas.
Marin County is a place where famous entrepreneurs have flourished. Lucasfilm, Fair Issac, BioMarin, EO Products, and many others started and grew here. Many lessons can be learned from these businesses growing from a couple ideas or concepts or products; many other businesses fail to make it here in Marin County, as in other places as starting a business is tough. Marin Economic Forum’s work is to stimulate entrepreneurs in Marin County and beyond to see Marin County as a place to do business. The history is here, but is the community support?
Marin County has been resistant to business growth generally, under the supposition that growth means change which has many “bads” that come with it. Ironically, climate change will likely be solved or mitigated by entrepreneurship: science made commercial to help people and the earth. Everything in your home, the restaurant meals you enjoy, the phone you may be reading this on right now is a by-product of supported entrepreneurship. Our community is supported by businesses and new ideas; without them, there is no change and nothing new, fewer jobs and societal devolution.
MEF Board Director, Laurie O’ Hara, Working Solutions
Congratulations to Working Solutions. On Friday, July 8, they funded their 400th microloan! The loan was made to Firebrand Artisan Breads, a local bakery in Oakland that is taking the Bay Area by storm with its signature breads and delicious pastries.
Working Solutions began in 1999 as a workforce development program under the auspices of TMC Financing. By 2005, the organization had commenced its own microlending program. Since then, they have provided over $9.8 million in lending capital to Bay Area businesses and perfected their holistic approach to community economic development by blending their lending services with business coaching and mentoring programs. In 2009, Working Solutions was officially designated a United States Community Development Financial Institution (CDFI).
MEF Board Director, Michael Leifer, Digital Candy
Congratulations to Michael Leifer and the launch of Digital Candy. Digital Candy offers advanced artificial intelligence searches on the web to identify counterfeit products and misused logos, domains, images and video.
Events
September
Marinnovation — Tuesday, Sept. 13, 2016 4:30pm – 7:30pm, Marin Commons, San Rafael visit marineconomicforum.org to register
North Bay Innovation Week September 12-16, 2016 Throughout Sonoma and Marin counties visit: northbayihub.com
100MARIN — Wednesday, September 28, 2016 block party outside of Il Davide, San Rafael 6:00pm – 8:00pm visit: www.100MARIN.org to register
The naming of the Marin Economic Forum’s new chief not only opens a new chapter for this important public/private partnership, but it also reinforces the Marin economy’s focus on building the county’s position as a center for the growing bio-sciences industry.
Jim Cordeiro recently took over as the forum’s chief executive officer, leading an organization the mission of which has been making sure that the economic health of our county is not left out of our decision-making process.
In recent years, the organization has been commissioned to do reports on the economic impact of Marin General Hospital, the economic benefits of the Marin Center complex, Novato’s role and position in the growing bio-sciences industry, Sausalito’s economic issues and the costs of homelessness in Marin.
These reports put important facts and figures on the table as local officials shaped plans for proposed buildings as well as long-term community planning goals.
The group has also promoted bolstering Marin’s standing as a bio-science center.
Fast-growing Bio-Marin and the important work of the Buck Institute for Aging Research are terrific cornerstones for building a center for an industry that likely won’t grow out of date.
Cordeiro, a scientist who had founded his own bio-tech company and has been active in the entrepreneurial community, should be a solid fit for the commission.
The North Bay can be a productive growth medium for biotechnology and life sciences companies, but it needs investment dollars, both public and private, and talent, say area officials working to grow the industry.
“For us, the goal is how to use data to attract more bio/life science firms and researchers to the North Bay, as well as how to retain those who have chosen to come here,” said Jim Cordeiro, CEO of San Rafael-based Marin Economic Forum.
He, along with a host of other life science industry leaders, attended the 2016 BIO International Convention in San Francisco in June, where the consensus was that this industry is complicated — and not good at communicating its core messages.
Founded in 2012, Marin Economic Forum is a nonprofit organization that collects, analyzes and disseminates information that affects local businesses while also collaborating with communities in which their employees reside. Industries targeted include biological and life sciences, agriculture, tourism, and manufacturing.
“Our goals include building greater collaboration and communication by integrating information technology into life sciences,” Cordeiro said. “This involves the use of good story-telling techniques to create an emotional connection to engage the imagination and communicate what science is all about in basic terms.”
The process begins with identifying the types of research being done today at the Buck Institute in Novato and other North Bay life science firms, as well as within the University of California system. Finding out what the life science industry wants is the first step leading to attracting capital and talent matching those needs.
“Life sciences start with capital for essential research, and there is local and private capital here for generating initial research, before seeking venture capital,” Cordeiro said. “At the same time, measurable metrics are required, as well as a strategic plan for utilizing data being collected.”
He said the end result will be a series of “product potential” models the forum can sell to life sciences firms, the community and investors going forward, as part of his organization’s plan to establish mechanisms for gaining funding support.
1,000 MORE JOBS
Cordeiro’s plans for the forum include establishing a firm connection between increasing economic development and job growth in life sciences, including a related goal to add 1,000 more life sciences jobs in Marin by 2020.
A life sciences and biotech industry veteran has been tapped to lead the effort to attract and grow new business in Marin.
Jim Cordeiro, a co-founder of the now-defunct Oceana Technologies, a San Francisco-based firm, has been named CEO of the Marin Economic Forum, the San Rafael-based nonprofit.
“Jim is a great hire for this job,” said Robert Eyler, the forum’s chief economist and founding CEO. “He had a life sciences-based company and he was CEO of that company — he knows the industry very well. Jim also comes with some nonprofit board experience, where there was a political advocacy piece of it.”
Cordeiro, a 42-year-old Novato resident, succeeds Steve Lockett, who relocated to North Carolina after a half-year stint in the post, the forum announced last month.
Cordeiro has 18 years of industry experience working as a leading scientist at Nodality, Affymetrix and other biotechnology and academic organizations.
“One of the things the Marin Economic Forum is likely to do is get a little more involved in higher-level socioeconomic and sociopolitical issues in Marin County that affect Marin County business, and Jim has some experience in that, too,” Eyler said.
Cordeiro has served as an adviser and on the board of directors for the Pacifica Education Foundation, which has a focus on 21st-century learning and technology.
Marin Economic Forum’s $400,000-a-year budget is funded by the county of Marin, contributions from businesses and individuals, and revenue generated from economic reports prepared by the forum. The county provides matching funds up to $150,000 per year. Founding sponsors, who contribute a minimum of $10,000 a year, include Autodesk, Bank of America, Kaiser Permanente, Marin General Hospital, Whole Foods Markets, the city of Novato and the county of Marin.
The Marin Economic Forum has teamed with the city of Novato, the Buck Institute and other regional organizations to form the North Bay Life Sciences Alliance to promote further biotech development in the North Bay.
“The focus of the economic forum is how we can build a sustainable pipeline in the innovation space and life sciences,” Cordeiro said. “Through partnerships and collaborative efforts we are working on with them to commercialize the intellectual property that is generated through them.”
Marin Supervisor Judy Arnold, vice president of the forum’s executive board, said Cordeiro’s resume is impressive and he will serve the nonprofit well.
“He comes from a focus in life sciences, and the Marin Economic Forum is focusing on bringing more of that to Marin,” she said. “We are very excited about the possibilities to grow and for Marin County to become more of a go-to place for businesses and work.”
Cordeiro said there is room to grow in the existing industry, pointing out Marin’s biotech and life sciences leaders, including BioMarin Pharmaceutical Inc., Ultragenyx Pharmaceutical, Raptor Pharmaceutical Corp. and Cytograft Tissue Engineering,
“Life sciences is my background — it’s a passion of mine,” Cordeiro said. “These are the kind of jobs we want to make available, so people can afford to live and work here.”
Cordeiro holds a bachelor’s degree in marine biology from the University of California at Santa Cruz as well as several patents.
The BIO International Conference returned to the birthplace of biotechnology, San Francisco, for 2016. Bio2016 attracted over 15,000 biotechnology and pharmaceutical leaders for one week of intensive networking and partnering meetings to discover new opportunities and promising partnerships.
The North Bay Life Science Alliance (NBLSA), in partnership with the Marin Economic Forum, held an important presence at the conference as part of the California Pavilion. NBLSA monitors trends in employment, financing, commercial space, and government support for life-science businesses in the NBLSA counties (Marin, Sonoma, Napa, Solano). Importantly, the North Bay is one of the global hubs of life-science businesses and finance in Northern California which, in turn, is a global hub for research and development in the field.
Recognizing the impact of the NBLSA region, the California Life Sciences Alliance (CLSA) asked our chief economist, Dr. Robert Eyler, to be the opening speaker at the California Pavilion.
Following the completion of the conference, we co-hosted a morning session at the Buck Institute for media and senior executives who attended the event. Presentations were made by Chris Stewart, NBLSA COE and Chairman and Stelios Tzannis, Entrepreneur in Residence at the Buck Institute.
NBLSA Annual Report
NBLSA also recently published its annual report, produced by the Marin Economic Forum (MEF), which identifies 90 businesses involved in global life-science markets within the NBLSA counties, with as many as 470 headquartered and branch businesses stretching across different life-science sectors in the North Bay.
As of the second quarter of 2015, the NBLSA counties accounted for 10,000 jobs in the life-science sector. For the entire year 2015, researchers were awarded $13 million in National Institute of Health (NIH) grants, primarily from the Buck Institute for Aging Research in Marin County. Venture capital trends are moving toward a larger proportion of life-science investment in portfolios. In Marin County, biotechnology is second only to software as venture capital investment since 2009.
The Economic Value of Doing Good: BioMarin’s Impact on the Bay Area Economy
MEF chief economist Dr. Eyler has produced a case study for BioMarin, using the Company’s revenue, employment figures, and aggregate wage data to construct an economic model of its impact on the overall Bay Area economy.
Headquartered in San Rafael, BioMarin is one of the largest private-sector employers north of the Golden Gate Bridge. BioMarin’s presence leads to regional spending beyond its headquarters and operations in Marin County, and this ripple effect spreads to industries beyond biology research and manufacturing.
Another highlight from BIO2016 was the keynote address by Dr. Bennet Ifeakandu Omalu and Will Smith. Dr. Omalu is a Nigerian-American physician, forensic pathologist and neuropathologist who was the first to discover and publish findings of chronic traumatic encephalopathy (CTE) by examining American football players while working at the Allegheny County Coroner’s Office in Pittsburgh.
Dr. Omalu’s efforts to study and publicize CTE in the face of opposition by the National Football League were first reported in a GQ magazine article in 2009. The article was later expanded into a book, Concussion, and adapted into a film of the same name where Dr. Omalu, the central character, is portrayed by Smith. The movie’s production led to the creation of a foundation named after Dr. Omalu to advance CTE and concussion research.
MEF Chief Economist Update
by Dr. Robert Eyler
Brexit and Marin County: Marin is Sound as the Pound?
As Brexit was passed by voters in the United Kingdom, many questions remain and new ones are being raised. Locally (and regionally), there may be repercussions for Marin County, which has several companies who compete on a global basis. The three primary issues Marin County residents and employers need to consider are: (1) housing and financial market performance; (2) shifts in tourism flows, and (3) trade links to the UK as either a marketplace or a gateway to mainland Europe.
The June 23rd vote in the United Kingdom (UK) is further proof that we are likely to remember 2016 as one of the most politically-focused years in this century, and perhaps in the last 25 years. While American politics are slowly building to a crescendo in November for the presidential election, the UK debated, placed on the ballot and voted to leave the European Union (EU). Because the pound sterling (the UK’s currency) is not part of the consortium of countries using the Euro, the unwind is more about how currencies are trading for each other and less about compliance. That unwind from trade and financial infrastructure based on EU membership will be a large enough headache.
The EU is a group of countries that came together from the European Common Market of the 20th century, and began the move toward a common currency (which non-Euro countries, including the UK, backed out of in the 1990s). These agreements begin with free trade among members, then customs unions (harmonizing trade laws inside and outside the membership), and then common markets (trade flows free for goods, financial capital and labor). The latter issue became paramount for the UK as the flow of migrant workers from other EU countries increased to take advantage of strong currency and high wages in the UK. The EU countries otherwise are a mixed bag of recovery stories since the last recession, and migration issues were exacerbated by refugees from the Middle East seeking a new life.
For Marin County, housing may be positively affected for two reasons. First, the outflow of capital toward the United States from the UK will further reduce pressure on interest rates; the Federal Reserve knows this and may now further delay interest rate increases to prevent the U.S. from becoming a magnet for UK wealth seeking the slightest of interest rate gains. Mortgage rates will remain stable and low, and housing demand will remain supported. Those residents with global investments may find losses from emerging markets that have ties to the UK (Indonesia and Malaysia are two examples); countries like Japan may be helped by this financially, though auto sales to the UK (and wine sales there for the North Bay region) may suffer.
For Marin County businesses, trade and labor connections to the UK may be delayed due to connections toward other EU countries changing. UK and US trade and financial relations otherwise should be little affected if there are no direct connections outside the UK. Business such as Autodesk and BioMarin may need to consider the size and scope of offices and business branches in the UK if used to service Europe more completely. This is a major theme for US businesses using the UK as a launching pad for Europe). This may slow progress in life sciences generally, especially if global uncertainty is exacerbated by this situation.
For tourism, we may see a flip of British tourism for Americans. Marin County residents may now plan trips to London they have delayed because the pound’s value falling suddenly provides a tax break for travelers. For UK travelers, they are facing a tax increase coming to Marin County, wine country, and the greater Bay Area. Businesses in Marin County, such as hotels and B&Bs and restaurants, may here fewer UK accents in the coming months, which could make for some marketing challenges given the summer has started. (DO WE KNOW IF UK TOURISM IN MARIN COUNTY IS SIGNIFICANT? THIS COULD BE A SUPPOSITION WITH LITTLE SUPPORT IN REALITY.)
Under the assumption that global uncertainty ebbs a bit after the tidal wave of opinions and concerns is done crashing over news channels, Marin County should be economically good after this is all said and done. The UK has multiple reasons to sort the aftermath out quickly, and then we can prepare for November and more political zaniness.
100+ People Who Care: Marin County (100MARIN) is Marin County’s premier giving circle. The organization was created to increase the collective impact of its members’ annual dues, while helping to further the causes of deserving, local non-profits. Founded in January 2015, the group holds meetings twice a year, at which each attendee pledges $100. Five Marin-based non-profits then each make four-minute pitches, everyone votes for their favorite presentation, and the winner leaves with all of the pledge money. 100MARIN has been a fiscally-sponsored arm of the Marin Economic Forum since July 2015.
Here’s how it works:
A group of individuals commits to an annual donation schedule, e.g. giving $100 2-4 times per year
They then convene on that same schedule to hear presentations form 3-5 local non-profits
At the end, a vote is conducted to determine which organization will receive the group’s pooled donations
The awareness and engagement opportunities for both nominated charities as well as non-profit community at large are increased
MEF Board Director, Brigitte Moran, CEO of Agricultural Institute of Marin (AIM)
Brigitte is dedicated to realizing AIM’s vision of building a pavilion focused on celebrating the region’s agricultural roots, supporting artisan development and the success of our 500 local farmers and food purveyors, as well as educating and connecting communities to local agriculture.
The FARM FIELD STUDIES PROGRAM brings children and young adults from around the Bay Area to local farms. The goal is to empower young people to make food choices that will positively impact their long-term health. Knowledge of where food comes from is a powerful tool for teaching good nutrition. Experiencing farms first-hand can inspire young people to become active participants in a sustainable food system as consumers, and even as producers of their own food.
“Created in the late 1980s from the trust of a wealthy Ross couple, Leonard and Beryl Buck, the Buck Institute is an independent research facility whose mission is “to increase the healthy years of life.” Within its walls dozens of world-class scientists work in a collaborative environment to understand how getting older contributes to Alzheimer’s, Parkinson’s and heart diseases, as well as cancer, stroke, diabetes and glaucoma.
“The Buck Institute is absolutely an asset to the growth of life science commerce in Marin,” says Robert Eyler, Sonoma State University professor of economics and chief economist for the Marin Economic Forum. “Short of a leading research university, there’s nothing like it between the Golden Gate Bridge and the University of Oregon in Eugene.””
Concentration, Focus and Habits
Marin County and Post-Recession Demography: Part 1
MEF Board Director, Frank Borodic, Roundstone Inn
The recent passage of Brexit by voters in the United Kingdom raised many questions and had far-reaching consequences. And despite our small footprint, Marin County potentially will feel the repercussions.
Entrepreneurship and Sustainability
Congratulations to Working Solutions. On Friday, July 8, they funded their 400th microloan! The loan was made to Firebrand Artisan Breads, a local bakery in Oakland that is taking the Bay Area by storm with its signature breads and delicious pastries.
Congratulations to Michael Leifer and the launch of Digital Candy. Digital Candy offers advanced artificial intelligence searches on the web to identify counterfeit products and misused logos, domains, images and video.
He, along with a host of other life science industry leaders, attended the 2016 BIO International Convention in San Francisco in June, where the consensus was that this industry is complicated — and not good at communicating its core messages.
Brigitte is dedicated to realizing AIM’s vision of building a pavilion focused on celebrating the region’s agricultural roots, supporting artisan development and the success of our 500 local farmers and food purveyors, as well as educating and connecting communities to local agriculture.
