Prosperity Strategy Snapshot Reveals a Region Rising
A suite of strategies to boost Sacramento’s regional economy
November 26, 2019: Boosting our region’s most promising tradeable clusters is the best path forward to accelerate our economy, according to the forthcoming Prosperity Strategy.
Tradeable clusters are groups of related industries that bring new wealth into the region, pay above average wages, and have a higher multiplier effect in the broader economy. The three most promising clusters in our region are life sciences, food and agriculture, and future mobility.
The Prosperity Strategy emerged out of the Brookings Institute’s market assessment of the six-county Sacramento region, released last year. It is the work of the Regional Prosperity Partnership, an initiative of four regional organizations: the Greater Sacramento Economic Council, the Sacramento Metropolitan Chamber of Commerce, Valley Vision, and SACOG.
The findings of the Brookings market assessment showed the Sacramento region can take advantage of changing market, technology, and demographic trends for broad-based economic growth, but to do so must focus on the core drivers and enablers of regional competitiveness and prosperity. The Prosperity Strategy is a strategic framework to champion a pathway for inclusive economic prosperity for the six-county greater Sacramento region.
The three tradeable clusters are a key part of the Prosperity Strategy’s core, which is:
· Become a global center for entrepreneurs and firms in food/ag/health innovation.
· Become a global center for firms and a workforce in selected bio-ag sciences.
· Become a global center for firms and a workforce in future mobility.
· Target infrastructure investments to support economic clusters and market drivers.
· Expand demand-driven, sector-based workforce development, aligned to key opportunity clusters and a more inclusive workforce prepared for the future of work.
The region’s life sciences cluster employs about 9,000 people through 373 companies, including 172 companies in research and development. The Prosperity Strategy sees the cluster as ripe for start-ups, especially with the participation of the forthcoming Aggie Square innovation hub at UC Davis’s Sacramento campus.
With the Sacramento region embracing its Farm-to-Fork brand, the food and agriculture cluster would seem well established but there is further growth potential in both food and beverage manufacturing as well as new technologies such as digital farming. Each would add value to the region’s thriving primary production economy.
The future mobility cluster is poised to take advantage of Sacramento’s role as the capital of the fifth largest economy in the world, with close access to the regulators who will have influence over the development of the emerging boom in electric and autonomous transportation. The electric vehicle market alone is expected to pass $420 billion by 2025, and by 2040 it is predicted that 57 percent of all vehicle sales will be EVs. The forthcoming California Mobility Center, which aims to promote the development and commercialization of EV and AV technologies, is a key component of this cluster, as is SACOG’s Civic Lab program that accelerates innovative mobility projects across the six-county region.
The Regional Prosperity Partnership unveiled a snapshot of the forthcoming Prosperity Strategy at the recent California Economic Summit in Fresno, responding to the governor’s call through the Regions Rise Together initiative for regionally-based economic development strategies. The partnership is finalizing the region’s full Prosperity Strategy to include near-term action initiatives, with a forthcoming release in early 2020.