The U.S. economy is undergoing a structural transformation that requires increased cross-sector collaboration for sustained job creation and economic growth. Such public-private partnerships blend innovative economic development tools with improved public policy prescriptions. The opportunities to unleash growth are substantial.
The transformation of our nation's economy involves a shift from what economists refer to as one-vertical economies to networks of multiple-vertical platforms. In the past, a single industry vertical, such as steel manufacturing, drove economic growth and job creation in a region. That is no longer the case. Now, the main driver of growth and job creation is a more complex interconnection of multiple industries and firms of all sizes. More specifically, current data indicates that the engines of growth are resident establishments, which are the companies that have established roots in their communities and are creating 70 to 80 percent of jobs and revenues (YourEconomy.org). These establishments tend to be strong sources of leadership for social and public enterprises because they donate to nonprofits that help local communities; actively engage in strategic community decision-making; share knowledge and networks as board directors; and establish long-term roots in their respective communities.
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