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Week of October 8 - 14, 2007

Milken's Best Performing Cities 2007

The Milken Institute has just released the latest edition (using 2006 data) of its widely read Best Performing Cities rankings. As in past years, Sunbelt cities dominate the list. In fact, none of the top ten performers lies north of the Mason-Dixon line, and none of the top 25 are located in the Northeast or Midwest. This year’s top performer is Ocala, FL, followed by (in rank order): Wilmington, NC; Riverside-San Bernadino-Ontario, CA; Phoenix-Mesa-Scottsdale, AZ; and Orlando-Kissimmee, FL. The top performing regions share several characteristics: entrepreneurial strength, low business costs, and favorable business climates. The Milken list also ranks “big gainers,” i.e. those regions that have made major improvements in the past year. Many of these communities—such as Lafayette (LA), Mobile (AL), Houston (TX), and Corpus Christi (TX) are located in the Gulf Coast area where they have benefited from an influx of new residents (due to Hurricane Katrina) and a booming energy industry.

Download the Milken Institute’s 2007 report, Best Performing Cities: Where America’s Jobs are Created and Sustained, by Ross DeVol, Armen Bedroussian, and Soojung Kim.

The Energy-Competitiveness Relationship

A new Council on Competitiveness study examines the linkages between the rising cost of energy and America’s international competitiveness. The report notes that few Americans are deeply examining the draining impact of U.S. energy use policies on our economic prosperity. According to the study, U.S. GDP growth was reduced by anywhere from 0.25 percent to 1 percent as a result of energy price increases since 2004. Moreover, high energy costs are leading some industries, such as steel and aluminum production, to move operations overseas. Some state governments are crafting innovative solutions, but, in general, US policymakers are not acting aggressively to respond to this changed environment. Meanwhile, other nations, such as European Union members, Brazil, China, and Japan, have announced extensive new investment programs to support sustainable energy. As energy costs become a more important factor driving international competitiveness, these investments are expected to generate great benefits for citizens and for innovative businesses, and for economic prosperity more generally.

Download the September 2007 Council on Competitiveness report, Provoke. Discussion Draft: The Energy-Competitiveness Relationship.

Green Businesses in Silicon Valley

Somebody in Silicon Valley seems to be heeding the warnings of the Council on Competitiveness and others who worry about rising energy costs. A new study from the Silicon Valley Leadership Group, a local business advocacy group, projects that the region will soon be America’s leader in promoting “lean and green” technologies. The report notes that venture capitalists invested $1.13 billion in local cleantech firms in 2006, and predicts massive new investments in fields like solar power and energy efficiency technologies. The report also lauds the region’s efforts to promote worthy initiatives such as green building standards, telecommuting, and the use of alternative fuels. While the projections are designed to paint a positive picture, they also note that Silicon Valley faces significant challenges in areas such as workforce development and affordable housing. It also details “best in class” efforts such as Portland, Oregon’s programs to support green development and Vancouver’s EcoDensity program to foster smart land use.

Download the September 2007 Silicon Valley Leadership Group report, Clean and Green: 2008 Silicon Valley Projections.

Good Governance in Africa

Good governance is an important component of a healthy entrepreneurial ecosystem. It is the absence of such good governance that helps explain why African entrepreneurs face so many hurdles in the development of new businesses. A new scorecard from the Ibrahim Foundation, started by African cellphone entrepreneur Mo Ibrahim, seeks to shine a light on both good and bad governance systems across Africa. The first ever such ranking tracks how African governments provide safety and security, fight corruption, provide sustainable economic opportunities, and promote human development. Not surprisingly, governments that perform better on these measures also perform better on various economic indicators, too. The top five performers (in rank order) are Mauritius, the Seychelles, Botswana, Cape Verde and South Africa. Africa’s worst performers shouldn’t be a surprise to anyone who follows the many conflicts affecting the continent. Somalia, the Democratic Republic of Congo, Sudan, and Chad all rank near the bottom of the index.

Access the 2007 Ibrahim Index of African Governance from the Mo Ibrahim Foundation.

The National Dialogue on Entrepreneurship is an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online.

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