![[Case Western Reserve University -- Toolbar]](/pix/lowpro.gif)
Posted 9-21-98
The Cleveland area's economy has rebounded substantially from its low point in the early 1980s, but much work remains to be done for the area to catch up with other metropolitan regions in income and productivity growth.
Those are the conclusions of a recent study from the Center for Regional Economic Issues (REI), part of the Weatherhead School of Management at Case Western Reserve University. The study, Cleveland's Emerging Economy: A Framework for Investing in Education, Science and Technology, was prepared for the Technology Leadership Council of Cleveland Tomorrow and for the Greater Cleveland Growth Association, and was the subject of a recent front-page article in the Cleveland Plain Dealer. Its author is Michael Fogarty, professor of economics and REI's founding director.
The study compares the Cleveland-Akron metropolitan area with 36 others, including Buffalo-Niagara Falls, Detroit-Ann Arbor-Flint, and Pittsburgh. It looks at a variety of measurements of education and economic performance, such as adults with at least one year of college, percentage of workers in high-tech employment, and average earnings per worker.
It finds a seeming paradox: while the region has gained about 200,000 jobs in the past decade, the average income per person relative to other regions has declined -- a trend dating back to 1969.
The reason for the contradiction is that income is closely linked to productivity -- the amount of output of goods and services per worker -- and northeast Ohio's productivity is low compared to most other regions. The study argues that Cleveland needs to "commit to a productivity strategy for the next phase of its turnaround."
The report also finds that northeast Ohio is slipping, relative to other regions, as a center for the development of new technologies. The number of new patents developed here is declining, and much corporate research and development is shifting away from the region.
Richard Shatten, REI's director and professor for the practice of public policy and management, says the report shows the Cleveland region "must invest heavily and thoughtfully over a long period of time to play in the global economy."
Specifically, says Shatten, the region needs a "sustained commitment to public and private higher education," concerted efforts to support companies already located here, especially high-tech enterprises, "an obsession with research" to develop a bigger pool of talent and ideas, and "a critical examination of the links between research, technology, and jobs."
The report does contain some encouraging news for the region's economy. It finds that in recent years, northeast Ohio has reversed a long decline in the educational level of its workforce relative to other regions in the study. In addition, university research also grew faster than in competitor regions.
Despite these bright spots, says Shatten, the study's underlying message is that "we need to set higher goals for ourselves in terms of how we invest in the region's economy if we are to be an important part of the global economy."
![[Toolbar]](/pix/ribbon.gif){kind=small}