Committee Report CR-3
The Economic Development, Training and Employment Committee held a public meeting on Thursday, December 16th, 2010, beginning at three o'clock and five minutes P.M. at Cahners Theater, 2nd floor, Museum of Science, 1 Science Park, Boston.
The purpose of the meeting was to hear from locally-based, world-renowned economic experts on the theories behind economic clusters, and specifically how the cities of Cambridge and Boston can work together to attract new businesses to the region, create jobs, and keep the businesses we have.
Present at the meeting were Councillor Leland Cheung, Chair of the Committee, Councillor Kenneth E. Reeves, Councillor E. Denise Simmons, Councillor Sam Seidel, Mayor David Maher, Robert Healy, City Manager, Richard Rossi, Deputy City Manager, Susan Glazer, Acting Assistant City Manager for Community Development (CDD), Estella Johnson, Economic Development Director, CDD, Lee Gianetti, Chief of Staff, Office of the Mayor, Elizabeth Bedell, aide to Councillor Leland Cheung, Jason Alves, aide to Councillor Tim Toomey, Boston City Councillors: Stephen Murphy, Councillor Bill Linehan , Councillor Matt O'Malley and Councillor Ayanna Presley, and Councillor Mike Ross, Mitch Weiss, Chief of Staff for Mayor Menino, Brenda Mckenzie, the Director of the Boston Redevelopment Authority, Massachusetts Secretary of Housing and Economic Development, Greg Bialecki and Phil Budden, British Consulate-General.
Also present were Joe Tulimieri, Cambridge Redevelopment Authority, Sarah Gallop, Co-Director, Government and Community Relations, MIT, Bob Simha, MIT Professor, Paul Parravano, MIT, John McQuaid, MIT, Steve Marsh and Michael Owu, MITIMco, Joe Maguire, Alexandria Real Estate, Tim Rowe, President, CEO, Cambridge Innovation Center, Brian Dacey, Senior Vice President and Regional Partner, Twining Properties, Janneke House, Executive Director, Cambridge Local First, Jos Scheffelaar, CEO and Founder, Launch in US Alliance, Gus Weber, Microsoft, Nan Doyle, Principal, Trillium, Marc Levy, Editor, Cambridge Day, Terrence Smith, Cambridge Chamber of Commerce, Travis McCready, Kendall Square Association, Tom Lucey, Director of Community Relations, Harvard University, , Mike Cantalupa, Boston Properties, Geoff Mamlet, Cambridge Innovation Center, Jeff Lockwood, Novartis, Mathew Campion, Office of the British Consulate-General, Rich Bryden, Harvard Business School, Colleen Powell, Massachusetts Convention Center Authority, D.C. Denison, Boston Globe, Richard Dimino, A Better City, Jim Collins, New England Business Partners, Richard Parr, A Better City, Bill Ghormley, Xconomy, Kelly Thompson Clark, Cambridge Chamber of Commerce, Davis Dyer, Monitor Group, Kurt Dassel, Monitor Group, Gregg Nourjian, Partner, Spinnaker Venture Partners, Melissa Walsh, Massachusetts Life Sciences Center, Pascal Marmier, Swissnex, Eric Schoenfeld, Independent Consultant, Peter Carty, Genzyme, Robert Beal, Beal Co., Dale Blank, Biotechnology Consultant, Joan Bennett, Cambridge Health Alliance, Costas Boussios, Betahat Optimal, Kelly Courtney, Pipeline Management, Jim Rooney, Massachusetts High Tech Council, Minka van Buezekom, Nathan Rothstein, Swellr, Audrey Guazzone, YEI France, Brian Nanos, Cambridge Chronicle, Tim Stoll, Biomed Realty, Meghan Haggerty, Boston Municipal Research Bureau, Brian Morgan, Boston World Partnership, Amir Eldad, Boston World Partnership, Paula Mesasein, Boston World Partnership, Darnley Howard, Independent Consultant, Bill Kane, Biomet, Ioannis Miaoulis, President, Museum of Science,
Councillor Cheung opened the meeting and stated the purpose as being to hear from experts on economic development and to kick start a dialogue on the potential areas of common interest where Cambridge and Boston could collaborate instead of compete to better create jobs and opportunity for their respective residents.
Councillor Cheung introduced his colleagues. He acknowledged Mayor Maher and applauded his efforts this term in fighting for education reform. He acknowledged Councillor Denise Simmons and applauded her for her previous attempts to reach across the river and work with Boston on other issues. Councillor Cheung acknowledged that many people were worried that this meeting was purely political in purpose. He said that although it felt like a political event because so many politicians were in the room, the purpose was actually to try and put politics aside. We're there to try and solve a problem that is inherently political. When businesses are shopping around for a location, they think of Boston and Cambridge as one region, not as separate from one another. Councillor Cheung argued that if Cambridge and Boston work together, the region will benefit as a whole. The Cambridge-Boston region has many resources: the best schools in the country, a highly educated and a motivated populace, and fantastic opportunities for progress. Councillor Cheung stated that with all we have, we should be leading the nation in bootstrapping ourselves out of the current recession.
Councillor Cheung then invited Boston City Council President, Mike Ross to address the crowd. Councillor Ross thanked his colleagues, Councillor Stephen Murphy, Councillor Bill Linehan, Councillor Matt O'Malley and Councillor Ayanna Presley for attending the meeting. He stated he was really excited about the prospect of Boston and Cambridge working together. He said that our region is the most economically competitive region in the country but more needs to be done to keep jobs and college students here. Silicon Valley is not one city, it is a collaboration of 22 cities and they do not have the resources that we do here in Massachusetts. We are the most culturally and intellectually endowed region in the United States. Other regions have to try harder because they do not have our resources, but we still need to up our game. Councillor Mike Ross stated that we cannot be lulled into complacency. This meeting is not a symbolic exercise, it is not merely rhetoric but it will be used as a launching pad for future discussions.
Councillor Mike Ross introduced Museum of Science President Ioannis Miaoulis. President Miaoulis thanked the attendees. He argued that there was no better place than Cahner's Auditorium to hold such a meeting because it is the only room to be located both in Cambridge and in Boston. He stated that the Museum of Science is the most attended cultural institution in New England and that it is the second most attended federal science center in the country after the Smithsonian Air & Space Museum. The Museum of Science also supplies 1.8 million American students with text books each year.
Councillor Leland Cheung introduced Massachusetts Secretary of Housing and Economic Development, Greg Bialecki. Secretary Bialecki thanked the crowd on behalf of Governor Patrick. He stated that he deeply believes that bolstering economic development is tremendously easier when local governments are working in a partnership with the state. It is a simple truth that Boston will be better and stronger if it works with Cambridge and Cambridge will be better and stronger if it works with Boston. The desirability of both locations is bolstered by cooperation between city administrations.
Councillor Mike Ross introduced Chief of Staff for Mayor Menino Mitch Weiss and the Director of the Boston Redevelopment Authority, Brenda McKenzie. Mitch Weiss stated that 360 days ago Mayor Menino said in his inaugural address that we need to develop an innovation cluster. Mayor Menino learned from the financial crisis that we need to get back to engineering, instead of financial engineering. Cambridge and Boston need to literally build our way to a better economy. We come together at a very important time, China is on pace to build ten cities the size of New York City over the next 20 years. The region has all the resources needed to be competitive; we just need to focus our approach. Cambridge and Boston can collaborate on affordable housing. Mitch Weiss stated that although collaboration is good, we still need a healthy dose of competition.
Brenda McKenzie addressed the crowd. She stated that this event was special because it allows for government officials to speak directly to the stakeholders. The big picture needs to be seen. Boston-Cambridge is competing against the world.
Councillor Cheung introduced Rich Bryden, Director of Information Products at Harvard's Institute for Strategy and Competitiveness Presentation. Rich Bryden works with Michael Porter at the Harvard Business School. His presentation can be viewed at
Rich Bryden stated that although Cambridge-Boston is doing relatively well, there are many warning signs that point to the need for increased collaboration. His intention is to provide a framework of why developing regional clusters is vital to a strong economy. Micro and Macroeconomic factors impact the development of a regional cluster. Microeconomic factors include the quality of the business environment, the state of cluster development and the sophistication of individual company strategies. Macroeconomic factors include the resources endowed by a certain geographic area and access to the market, a state's legal system and monetary policy. A Cluster is a geographic concentration of related companies and associated institutions such as hospitals and universities. Individual companies tend to perform far better if they are part of a regional cluster than if left alone in isolation. For example, the Life Sciences cluster we have in Boston is nurtured by our hospitals and research universities and responds to the specialized needs of these institutions. It is also nurtured by the specialized risk capital investment companies that have sprung up in the area. Boston's most notable clusters are financial services, analytical instruments, information technology and biotechnology. All of these clusters are strong but we are losing ground and are underperforming compared to upstart regions such as Dallas, Texas region and North Carolina. Regional Clusters provide a powerful model for enacting public policy. They allow for public-private collaboration.
Councillor Mike Ross introduced Davis Dyer and Kurt Dassel of the Monitor Group. Davis Dyer presented on how to implement cluster theory.
Davis Dyer stated that business growth does not solely depend on how smart and great individual companies are but also what environment they are operating in.
For example, there is nothing that can explain why Dallas/Fort Worth, Texas has become a center for cluster development, but its economy is growing at a much faster speed than the rest of the nation. The reason why Dallas is growing is because the cities and townships have banded together around the new airport. They have unified their city administrations. Together they actively courted leading institutions to the region, so much so that Dallas has become the number one place in the country for corporate relocation. In order to replicate the Texas model, we need strong and committed leadership, a shared vision and an organized set of priorities.
Rich Dimino presented on the importance of developing transportation infrastructure in a cluster. Massachusetts has the sixth worst commute time in the nation.
Rich Dimino stated that we need to better connect Boston and Cambridge. Transportation systems bolster and support growth and development. Connectivity is crucial to the maintenance of a cluster. People want to move around a cluster - Kendall to Boston Medical, Novartis to the Longwood Medical Center. Logan is also crucial and needs to be fully sustained. Furthermore, Massachusetts is doing a great job at getting private investment and federal grants but needs to start investing this money into its transportation systems.
Councillor Mike Ross introduced Kurt Dassel of the Monitor Group. Kurt Dassel raised a puzzle: Why is it that we have world class assets but despite this we are losing our competitive position? He stated that economic development is ultimately getting a company to choose this region instead of another region. Companies chose a region when it is differentiated from the competition. Our universities and hospitals attract world class talent but since 1998 companies have tended not to gravitate in the same numbers to Boston-Cambridge. We need to figure out a way to address this and this meeting is a crucial first step in tackling this issue.
This concluded the portion of the meeting of presenters using overhead projection of slides and data on the theories and applications of economic clusters, and began the portion of community leaders speaking on behalf of the involved organizations they represent.
Councillor Leland Cheung introduced the Executive Director of Boston World Partnerships, Yoon Lee, Executive Director of the Massachusetts Convention Authority Colleen Richards Powell, Executive Director of the Cambridge Chamber of Commerce Kelly Clark Thompson and Executive Vice President of the Boston Chamber of Commerce Jim Klocke.
Yoon Lee stated that Boston World Partnerships was founded by Mayor Menino to promote Boston's great assets. The purpose of Boston World Partnerships to act as a super connector for human infrastructure.
Colleen Richards Powell stated that her job is to sell Boston-Cambridge to the outside world. She never separates the two when talking about what the region has to offer.
Jim Klocke stated that this decade has been much harder to Boston than the last. We are falling behind because it is too expensive to start a business here due to high taxes and start-up costs.
Councillor Mike Ross introduced Executive Director of the Kendall Square Association, Travis McCready, Executive Director of the Mass Life Sciences Center, Melissa Walsh, Peter Abair of the Massachusetts Bio Tech Council and Jim Rooney of the Mass High Tech Council.
Travis McCready stated that Kendall Square is the most innovative square mile on the planet. Tech companies crave collaboration, collaboration craves density. Boston and Cambridge need to collaborate on STEM education. We should be home growing our talent rather than resorting to recruiting it.
Melissa Walsh talked about the services that Mass Life Sciences offers to Massachusetts residents and students. They offer a paid internship program that matches students with biotech and life sciences companies in the region.
Peter Abair stated that the Mass Biotech Council represents over 600 members. He said when interested businesses come to visit in Kendall Square he is able to point to 5 out of the 7 top NIH funded hospitals in the country and four of the top research universities from his window.
Jim Rooney recommends that the two cities promote the creation of a consortium of colleges and universities in the region. Springfield has the Knowledge Corridor. The cluster would greatly benefit if universities worked in collaboration with each other.
Councillor Leland Cheung introduced Dr. Phil Budden, the British Consulate-General. Phil Budden stated that Great Britain has a stake in our cluster. He stated that many British companies are based here including Shire, AstraZenica and Citizen's Bank. The whole world has faced an economic downturn. Future jobs will come out of Michael Porter's model for regional clusters. The region is a mature cluster, Cambridge-Boston implemented Porter argument long before anyone else, but now the rest of the world is catching up.
Councillor Mike Ross opened the meeting to Public Comment. He asked attendees to speak on what challenges the region faces and offer suggestions on how the two cities work better together.
Paul Parravano of MIT stated that this meeting was an important first step. He also announced MIT's new project PIE that will focus on creating manufacturing jobs for the state.
Robert Beal of Beal Co. stated the most important thing to focus on is how to keep our students here. There is a need to create more affordable housing.
Tim Rowe of the Cambridge Innovation Center stated that Boston and Cambridge have a long history of collaboration. The very first long distance phone call was placed from Beacon Hill to what is now MIT's campus. He stated that when he travels oversees he tells people he is from Boston. We need to be able to tell our story better and pitch the region as a whole.
Jeff Lockwood stated Novartis came here because the region had so much to offer. Novartis routinely works with the Dana Farber Cancer Institute, Mass General Hospital and MIT. Collaboration is key for companies to flourish.
Estella Johnson of Cambridge's Economic Development Department stated that she came from the South and knows what the region is up against. Cambridge cannot take for granted that the region will continue to thrive. Other clusters, such as Raleigh, North Carolina should be researched.
Gus Weber of Microsoft stated Microsoft came here to tap into our huge talent pool. They currently employ over 1,000 people.
Councillor Mike Ross ended public comment. He concluded by thanking the attendees for coming. He stated that he believes that this meeting conveyed the fierce urgency of the need for more collaboration. He stated that the job of government officials is to facilitate and continue these discussions.
Councillor Cheung gave his closing statements. He stated that it is vitally important for Cambridge and Boston to work together to bring jobs to the region and keep the economy competitive. We cannot let political battles get in the way of doing what's necessary to create opportunity for residents and make their lives better.