Charleston Inspired Strategic Plan

Strategic Plan: 2025-2030 Prepared by Ernst & Young, LLP for the Charleston Regional Development Alliance

January 2025

Table of contents 1

Executive summary

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Strategic plan

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Implementation guidance

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Appendix: Leading practices

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Our report may be relied upon by the Charleston Regional Development Alliance for the purpose set out in the scope section only, pursuant to the terms of our engagement letter. We disclaim all responsibility to any other party for any loss or liability that the other party may suffer or incur arising from or relating to or in any way connected with the contents of our report, the provision of our report to the other party or the reliance upon our report by the other party.

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Charleston Inspired: Discover what’s possible

Executive summary

Executive summary

Innovation driving the next five years of economic development and beyond This strategy suggests a “both and” approach to the Charleston region’s next five years of economic development. The CRDA and its partners will continue strong, proactive efforts to attract new investment into the region and support the expansion of existing industry. There will be ongoing collaboration among partners to improve quality of life for residents. Many of the goals from past economic development strategies, like One Region, will continue moving forward, and core industries driving the economy will remain as areas for focus and support.

In addition, what if the region expanded its innovation ecosystem? What if, over the next five years, it layered innovation on top of its other economic development functions? The region could achieve even better and more inclusive opportunities for residents. A more innovation-driven economy could significantly increase local wages, create new career paths for residents, and help existing companies thrive.

With this in mind, the CRDA and regional partners will coalesce around advancing the region’s innovation capacity and reputation, adding fuel to existing efforts and creating what some have referred to as an “economic flywheel effect.” Innovation is the focus of this new regional strategy because it has the potential to accelerate the region’s economic momentum while also laying foundations for resiliency and economic growth for many years to come.

As this strategy later details, achieving a more innovation-driven economy will involve a multifaceted and coordinated approach. It will entail activities like continuing to expand the talent pipeline, increasing R&D and commercialization activities, magnifying support for high-growth startups, increasing access to resources like capital and know-how, updating public policies, and accelerating technological adaptation across local businesses and civic institutions. As these initiatives take place, the CRDA and area leaders will also need to market the region as hub for innovative people and businesses.

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Charleston Inspired: Discover what’s possible

Discover what’s possible Charleston’s economy has had tremendous success, marked by steady population growth, its emergence into a production hub, and an expanding tech workforce. Alongside these strong economic drivers, the region is home to important facilitators of economic growth such as The Citadel, Charleston Digital Corridor, Clemson University’s Restoration Institute, College of Charleston, Harbor Entrepreneur Center, Medical University of South Carolina, SCRA, SCBIO, Charleston Southern University, Trident Technical College, and the home of a brand new innovation district.

Despite having many of the necessary elements for success, and seeing economic growth, quantitative and qualitative research has revealed that the region has yet to become an innovation leader. However, given the region’s strengths, and the aligned vision of regional leadership, there is opportunity to help foster the next stage in development where the economy is driven by advancements in cutting-edge technology that propels the region and provides opportunity for all residents of the Charleston region.

Continuing to progress towards a more established innovation economy could result in faster prosperity, higher earnings, and more opportunity for Charleston residents. If the Charleston region’s economy could grow at a modest rate, similar to innovation-driven economies such as Austin or Seattle, it would mean $13B more in Gross Regional Product (GRP), $10B more in earnings for Charleston region residents, translating to an additional $12k in GRP per capita each year by 2040. Concerted efforts to facilitate a more innovation-driven economy could help bridge the gap between Charleston’s current trajectory and those of aspirational markets.

What’s possible: GRP per capita projections Higher trajectory (4.2% annually)

140,000

120,000 100,000

Current trajectory (3.5% annually)

80,000 60,000 40,000 20,000 0

20072010

2015

2020

2025

2030

2035

2040

Source: Lightcast (GRP not adjusted for inflation), South Carolina Revenue and Fiscal Affairs Office, EY analysis

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Charleston Inspired: Discover what’s possible

What is innovation?

The term “innovation” means different things to different people. For some, innovation is technology oriented. It may conjure images of software and smart phones, automated equipment and artificial intelligence, lasers and laboratories. For others, the definition is much broader. As one interviewee in this process said, “innovation is simply ‘making things better.’”

In conversations about this strategic plan, the consulting team asked people what innovation means for the Charleston region. The first resounding response is that it is unclear whether there is a shared definition of the term for the region. As several interviewees pointed out, the first order of business following this strategic plan is to “develop a common lexicon around what innovation means for us.”

Second, when asked for their personal definitions of innovation, we heard a variety of responses ranging from highly specific to more expansive, such as: “Innovation is the process of creating and implementing novel technologies that drive transformation and growth, addressing unmet needs and fostering new products, services, and company formations.”

“There is a lot of innovation that happens outside of high tech and R&D. Innovation can apply as much as how we do things as a region as it can to the products we make.”

“Innovation ultimately means that we’re improving the region’s quality of life.”

“Innovation means new ways of thinking.” Similarly, “Innovation is process improvement.”

“Innovation-driven economic development, specifically, encompasses the creation and application of new technologies, services and processes that fuel industry advancements and economic growth.”

“Innovation is the relentless pursuit of transformational ideas.”

“Innovation is taking something that we are already doing it and making it better.”

Similarly, “Being an innovative region means that we make it easy for businesses to make things better.”

“Innovation entails efficiencies and leaner operations and streamlining.”

“AI is redefining what innovation means and what it will be like in the future.”

“If we are innovating as a region, we will see more R&D, more technology growth and greater entrepreneurial success.”

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Charleston Inspired: Discover what’s possible

While the quotes on the previous page range in nature and granularity, they share several elements. Essentially, they point out that innovation involves ideation, intentionality and improvement. Taking an innovative approach – whether it is to design a widget or to tackle a tough civic challenge (and everything in between) - means seeking new ways of thinking and taking action to translate those ideas into marked advancements.

With this in mind, at the end of the day innovation and inspiration are inseparable concepts.

Being an inspiring place with inspired people differentiates the Charleston region from many other places. This characteristic is deeply rooted in the community. For example, the region’s cultural heritage has long inspired chefs and creatives. Its natural environment has inspired new ways of thinking about planning and resilience. Its care for others has inspired advancements in life sciences and nonprofit software firms. Its global appeal has inspired manufacturing investments that connect the region to the world.

Through the nature of its very own character, the Charleston region inspires innovation. And this theme not only influenced the title of this strategy, “Charleston Inspired,” but it is also where the definition of innovation for the region can begin to take shape.

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Report titles goes here

2025-2030 Charleston Inspired strategy There is a strong interest among regional leaders to align actions to create a seamless innovation ecosystem and innovation-driven economy. This strategy provides the framework for achieving that. Alignment of actions across organizations begins with a shared vision, goals, and focus areas:

Our vision: The Charleston region inspires innovation that accelerates local economic development and makes the world a better place.

Goal: Attain visibility and perception as an innovative region

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The Charleston region is a globallyrecognized hub of innovation and entrepreneurship.

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Goal: Develop, attract and retain top innovation talent

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The Charleston region is a magnet for world-class researchers, entrepreneurs, companies and the talent they employ.

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Goal: Reduce resource gaps and improve availability

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The Charleston region understands the needs of innovators and industry, and we proactively invest in capital and other resources to help them succeed.

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Charleston Inspired: Discover what’s possible

Embrace innovation locally: define innovation for the region, unify communication, and rethink how we measure and report activity Tell the world our innovation story: develop a campaign and equip partners to deliver it, build inter-regional connections, and draw leaders to the region.

Produce a highly-skilled workforce capable of driving innovation forward: increase awareness of career paths, provide skills development, and connect businesses with talent.

Attract world-class talent to the region: launch coordinated talent attraction efforts for researchers, entrepreneurs, and skilled workers.

Increase the region’s capacity for research and development: facilitate innovative collaborations, scale tech transfer and commercialization efforts, and attract research functions.

Attract and scale capital resources in the region to help companies grow: advocate for incentives, capture federal dollars, and develop new capital-focused programs to help entrepreneurs

Innovation focus areas to drive investment The graphic below illustrates the innovation areas of focus for the next five years and beyond.

Support will continue for the region’s core industries like advanced manufacturing, logistics, life sciences and others. And simultaneously, the region will make investments that help expand innovation across industries. As suggested in this strategy, the mix of investments might include marketing campaigns, workforce programs, public policies, infrastructure, funding and other resources that boost R&D, entrepreneurship and company growth in fields like those listed below.

Power systems**

Military and defense

Logistics

Automated systems, autonomous mobility

⬧ ⬧ ⬧ ⬧⬧

Energy storage, grid resilience and reliability, renewables

⬧ ⬧ ⬧ ⬧⬧

AI and machine learning, cybersecurity, digital health, ecommerce and mobile, enterprise software (finance, real estate)

⬧ ⬧ ⬧ ⬧⬧

Biopharma, medical devices *Advanced manufacturing includes the aerospace and automotive industries **Power systems includes utility providers

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Healthcare and life sciences

Innovation focus areas to drive investment

Advanced manufacturing*

Greater innovation assets in the region will, in turn, help the region’s core industries stay strong while providing new opportunities for residents. Automated systems, for example, help accelerate growth of manufacturing, life sciences, logistics, defense, and power-related industries. Similarly, more robust cybersecurity, AI and energy-related assets in the region will also help core industries stay resilient as the world’s economy shifts in the years ahead. Across the board, as innovation activity increases, new career paths will emerge at all levels and earning potential will improve. As one stakeholder stated, “innovation will help optimize the region’s economy.”

Charleston Inspired: Discover what’s possible

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About this project In May 2024, the Charleston Regional Development Alliance (CRDA) engaged Ernst & Young LLP’s (EY) Economic Development Advisory Services team to develop an innovation-driven economic development strategy. This strategy builds upon previous regional strategies and continues momentum to establish the Charleston region as a hub for innovation, world-class businesses, entrepreneurs and talent. The strategy provides a roadmap for the region’s future as an economy driven by innovation and includes goals, prioritized activities and suggested measures of success by which to gauge the region’s progress.

Phase One of this strategic planning process began with understanding the region’s current innovation landscape. It included a review of past strategies, industry performance and current economic data. The EY team traveled to the region to conduct a Current State Workshop with the project’s Steering Committee and conducted interviews to gather stakeholder insights. Representatives from the region’s startups, corporations, capital providers, academic institutions, entrepreneur support organizations and public sector were engaged to gather a well-rounded perspective. In addition to stakeholder engagement, the team developed a clearer picture of current innovation assets and strengths, identified and explored leading practices in other regions, examined potential industry sectors to target in innovation initiatives and created a framework for this strategy.

Full Phase One findings are shared in a separate document, “Findings Report,” and highlights are provided here.

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Charleston Inspired: Discover what’s possible

Following Phase One, the consulting team began to shape the strategic plan. Themes from Phase One evolved into priorities for the strategy. The team solicited input from the steering committee, the Economic Leadership Council (ELC), CRDA team members, and leaders in each county. During a trip to the region in September 2024, the steering committee validated that the strategic priorities and sample initiatives were accurate.

In the final phase of the planning process, the consulting team drafted this strategy report and sought input from the steering committee, CRDA and others on tactics, metrics and potential roles of CRDA and other partners in implementation. This is driving toward a final presentation of the strategy at the CRDA’s January 2025 Leadership Luncheon.

An illustration of the planning process is provided below.

Planning process May

June

Jul

Aug

Sept

Oct

Nov

Dec

Developing the strategy and implementation guide

Understanding the innovation landscape

Establishing the Charleston region’s vision

• Review past reports • Industry and economic research and benchmarking • Stakeholder input • Mapping innovation assets

• Create strategic framework • Identify potential priorities and early wins • Host “Ask an EY Specialist” sessions • Begin defining metrics • Solicit input from ELC

• Virtual steering committee meetings to seek input on framework • Draft the strategy report • Seek CRDA, ELC and steering committee feedback • Draft implementation guide

Trip 2: September 2024 • Half-day visits to each county • Lead future state workshop with steering Committee • CRDA board presentation • CRDA staff workshop

Trip 3: December 2024 • Present draft strategy and discuss implementation with Steering Committee, CRDA board, CRDA staff, and other investors

Trip 1: June 2024 • Lead current state workshop with steering committee • 1:1 interviews and focus groups

Trip 4: January 2025 • Present final strategy at CRDA Leadership Luncheon

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Charleston Inspired: Discover what’s possible

Strategic plan

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Strategic plan

Our vision: The Charleston region inspires innovation that accelerates local economic development and makes the world a better place.

This strategic plan is founded on three goals for the next five years. Each goal includes one or two specific focus areas and potential action items. More detail on the goals and actions is provided in the following pages.

To summarize, the goals are: Goal 1: Attain visibility and perception as an innovative region The Charleston region is a globally-recognized hub of innovation and entrepreneurship. The first goal centers on internal communications – how the region defines innovation and unifies its support for this “both and” approach – and external communications – integrating innovation into the region’s economic development marketing efforts.

Goal 2: Develop, attract and retain top innovation talent The Charleston region is a magnet for world-class researchers, entrepreneurs, companies and the talent they employ. The second goal concentrates on the region’s production and attraction of talent to support a more innovation-driven economy.

Goal 3: Reduce resource gaps and improve availability The Charleston region understands the needs of innovators and industry, and proactively invests in resources to help them succeed. This goal focuses on helping the region create a more robust innovation ecosystem, including actions to attract more R&D activity, scale tech transfer and commercialization, increase availability of capital and real estate for businesses at all levels of growth, updating public policies, and others.

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Charleston Inspired: Discover what’s possible

Goal: Attain visibility and perception as an innovative region.

What are we trying to achieve?

The Charleston region is a globally-recognized hub of innovation and entrepreneurship.

In an era where innovation drives economic growth and competitiveness, the Charleston region is poised to harness its potential as a destination for innovation and entrepreneurship.

The Charleston region is already on a course toward achieving a more innovation-driven economy. While 71st in the U.S. in terms of population, it ranks 34th nationally when measured by the 70 indicators in StatsAmerica.org’s 2023 Innovation Intelligence Index.

In Axios’ evaluation of National Science Foundation data, it named the region one of “America’s New Innovation Hotspots.” In recent years, the region has had an increase of 96% in patents per capita which ranks it among the top 10 U.S. metros.

In fact, the top high-demand occupation in the region is anticipated to be Information Technology (15.7% growth expected from 20232028). Architecture and Engineering occupations are ranked third in anticipated growth during the same timeframe (13.6%). Overall forecasts for the region expect 35,000 new jobs to be created between 2023-2028, a fast pace that could accelerate with more innovation-related investments. Technology-related growth is happening, talent is in demand and people need to know about it.

The statistics indicate exciting forward momentum, but there is concern among area stakeholders that this progress might not be widely-known among local and external audiences. The first goal of this strategy is to lead a concerted communications effort to increase awareness that the region is, indeed, an emerging global hub for innovation.

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Goal: Attain visibility and perception as an innovative region.

Focus area 1: Embracing innovation locally Defining “innovation” for the region, unifying communication, and re-thinking how the region measures and reports innovation-related activity Potential actions: Develop a shared definition of innovation for the region

Host an annual Innovation Showcase to connect local startups with local corporates

With a common lexicon, the Charleston region can unify its message both internally and externally, better align activities, and provide a resounding talk track for local leaders to promote the region. As “innovation” can mean different things to different people, it is important that the definition galvanizes regional stakeholders and empowers them to drive innovation forward within their respective roles.

Startups often talk about the difficulty of making connections with corporations, and corporations might be surprised to learn about the startup ecosystem alive and well in their communities. This reality presents a unique opportunity for the CRDA and its partners to connect corporates – many of whom are investors in the work of the CRDA – with the startup community through a curated event.

Select startups could present their company, and all early-stage companies and regional partners could be invited to attend and exhibit.

Incorporate innovation targets into CRDA marketing and communications As this strategy is finalized and a shared innovation definition emerges, the CRDA should review and update its own marketing tools. This could include refreshing its website, print collateral, sales presentations, social media and other materials. An innovation theme should be visible across all communications platforms through written copy and imagery. It could be helpful to ask area marketing and PR professionals - particularly those employed in innovation target companies - to help review and refine messaging.

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Charleston Inspired: Discover what’s possible

Further invest in NavigateCHS capabilities as an ecosystem map NavigateCHS has the potential to be the region’s digital “front door” to its innovation ecosystem. The platform can help connect local entrepreneurs and others to resources and support. To drive adoption, the CRDA could advocate for regional partners (for example - counties, universities, SCRA, Harbor Entrepreneur Center, etc.) to consistently refer people to the platform and provide CRDA with updated information to refresh the site. Additionally, regional events such as 1 Million Cups, Startup Grind, pitch nights and others could provide QR codes allowing attendees to register on the platform then and there.

Goal: Attain visibility and perception as an innovative region.

Potential actions, continued: Communicate information about events, resources, and ecosystem building in creative and engaging ways

Host an Innovation Symposium on disruptive trends in the region’s core industries and innovation focus areas

Increasing connection to resources and events can take many forms, such as continued adoption of NavigateCHS, for instance. Other ideas include creating and maintaining a community-wide Slack channel with other ecosystem builders to promote events, programs and leading practices. The end goal is a more engaged, informed community of innovators and those who support them.

Like the thought leadership needed to craft an AI roadmap for the region, elevate the regional conversation around innovation through a curated symposium, bringing in experts to speak to industry, academia, and the public sector on disruptive trends impacting area businesses. For instance, the importance of cybersecurity in advanced manufacturing could be a focus.

Develop an AI roadmap for the region and for each target sector Artificial intelligence has the potential to significantly increase productivity and further differentiate businesses who harness technology for scale and those that do not. The CRDA is in a unique position to provide thought leadership, not necessarily as an expert in AI but by convening those who are and developing a roadmap for AI within the region’s economic drivers and innovation targets. Convening the business community to create a roadmap for adoption of industry 4.0 technologies could advance innovation across the region and help local companies compete.

The Right Place, West Michigan’s regional economic development organization, provides a good example of leadership in this space.

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Charleston Inspired: Discover what’s possible

Goal: Attain visibility and perception as an innovative region.

Focus area 2: Telling the world our innovation story Developing a campaign and equipping partners to deliver it, building inter-regional, cluster-based connections, and drawing innovation leaders to the region Potential actions:

Update CRDA business attraction campaign to include innovation target attraction

Promote the MassBio/Boston-to-Charleston connection

With updated marketing tools in hand, the CRDA should update its plans for outbound marketing and business attraction to focus on attracting innovation targets and talent into the region. This campaign could also serve to raise awareness among local and state audiences.

Given the partnership between SCBio and MassBio to form the SCBioDrive accelerator program, there exists an opportunity to better connect Boston-based expertise with Charleston regionbased entrepreneurs, and vice-versa. Continuing to formalize relationships between the two regions could result in increased deal flow for venture capitalists in both regions, a greater number of viable startup companies, and the potential to attract Boston-based talent to the Charleston region.

Conduct an innovation marketing takeover at the Charleston International Airport The Charleston airport, in many cases, is often a visitor’s first and last impression of the Charleston region. As the region seeks to be known as a place with a thriving innovation and entrepreneurship ecosystem, airport marketing represents an opportunity to drive this point home.

As an example, digital kiosks at Atlanta’s Hartsfield-Jackson International Airport highlight the region’s entrepreneurs and invite visitors to interact with their stories (see photos).

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Charleston Inspired: Discover what’s possible

Goal: Attain visibility and perception as an innovative region.

Potential actions, continued: Pursue other inter-regional partnerships Like the relationship forged between the Charleston region and Boston, create partnerships with other regions around the U.S. and world. Consider, for example, identifying regions with more established clusters of the Charleston region’s innovation targets. Take leadership trips to those regions to learn about their innovation ecosystems and meet with their key institutions. Over time, explore the possibility of attracting branches of these organizations to the Charleston region (e.g., incubators, venture capital funds, R&D centers, think tanks). These inter-regional partnership could also entail idea exchanges with their local industry associations, or even relationships with overseas regions that intentionally welcome their companies to use the Charleston region as their U.S. landing pad.

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Create, attract and scale events that draw entrepreneurs and innovators to the region Continue to support events that draw entrepreneurs, innovators and R&D specialists together in the region (e.g., Dig South Tech Summit, SC Growth Summit, 1 Million Cups, Startup Grind and others). Work with regional partners like Explore Charleston, SCRA, SCBio, colleges and universities and others to create events for entrepreneurs or investors that bring attendees from outside of Charleston to the region, showcasing the region as a destination for knowledge sharing and innovation activity.

Goal: Develop, attract and retain top innovation talent What are we trying to achieve?

Our region is a magnet for world-class researchers, entrepreneurs, companies and the talent they employ.

An inspired, skilled workforce is the cornerstone of an innovation-driven economy. There should be investments in developing, attracting and retaining the human capital needed for research, production, and problem solving.

Achieving this goal will be helped by the Charleston region’s visibility as a top-ranked visitor destination, high quality of life, and track record of successful public-private collaboration around education and workforce development. People are aware of the region, attracted to the lifestyle, and supported by dedicated local partners. This is a positive starting point but does not guarantee that a strong talent pool will emerge. That will require intentionality.

For example, growth in innovation-related activities has the potential to create new opportunities for underserved populations. New career pathways will be created with entry points for folks ranging from GED to PhD. Making the future as inclusive as possible will involve (1) expanding and creating education and training programs, (2) creating a continuum of programs designed to upskill people along the way, and (3) proactively connecting underserved populations to programs and employers.

Attracting and retaining top talent are as important as developing it.

The region's colleges and universities play a pivotal role in drawing in talent and preparing students for the workforce. The CRDA, Explore Charleston, county economic developers and others with communications campaigns also have key roles to play. As described in the previous goal, it will be important to integrate the innovation message into communications targeting businesses and people alike. It will also be important to support efforts of local partners that are tackling topics like housing and affordability that could jeopardize the region’s ability to retain people.

The following pages share two areas of focus and potential action items related to this goal of innovation workforce.

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Goal: Develop, attract and retain top innovation talent

Focus area 1: Produce a skilled workforce capable of driving innovation forward Increase awareness of career paths, provide skills development, and connect businesses with talent.

Potential actions: Map pathways into innovation-related careers As the saying goes, “you can’t be what you can’t see.” The CRDA produces an annual Talent Demand Study that already contains up-to-date information on technology and engineering occupations, and in particular, potential skills shortages. Consider elaborating on this research to create maps of career pathways into high-wage, innovation-related occupations with the greatest projected shortages.

Then, raise awareness of those opportunities through concerted communications campaigns aimed at the area’s current and underserved workforce as well as students and educators. (See JAXUSA’s “Earn Up” case study provided in the appendix as an example.)

Expand and create non-degree bootcamps to engage people in innovation career pathways As a supplement to traditional postsecondary education, bootcamp-style programs provide residents with onramps into career opportunities in innovation targets. Bootcamps offer speed, affordability and industry-driven curriculum. They help people gauge interest in a career without large upfront commitment and provide credentials quickly.

Bootcamps originated to address technology sector talent gaps and have increased in national popularity as a way to re-skill and up-skill talent. In the Charleston region, there is an opportunity to expand existing bootcamp programs and launch new ones for other skills needed by innovation targets.

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Charleston Inspired: Discover what’s possible

Expand computer science and other innovation-related coursework within the region’s K-12 schools Work with area school systems to expand computer science and other technology programs in curricula.

Use the Talent Demand Study data and career mapping coupled with testimonials from area employers to convey to faculty and students that this is an exciting and “cool” path for earning a good living as students emerge into adulthood. This twopronged approach entails (1) working with administrators to expand classroom programming, (2) connecting graduates to coding schools and higher education courses to continue their learning, and (3) engaging in communications outreach and hands-on experiences to pique awareness and interest.

Increase IT and engineering degree programs Similarly, continue to expand computer science engineering programs within the area’s higher education institutions. The most recent forecasts indicate the region’s most in-demand technology jobs are software developers, computer user support specialists and computer systems analysts. On the engineering front, industrial, civil and mechanical engineers are in the highest demand. Bring academic leaders together to assess current capacity (certificate through graduate degrees) and develop a coordinated plan for meeting this demand.

Goal: Develop, attract and retain top innovation talent

Potential actions, continued: Support efforts to expand broadband access across the region, including initiatives included in the Digital Equity Coalition Plan Providing residents with broadband service, access to devices and improved digital literacy are all critical to creating a more inclusive innovation-driven economy. Support programs and organizations that expand access and know-how to all residents in the Charleston region. For example, the National Telecommunications and Information Administration accepted South Carolina’s Digital Equity Plan on April 4, 2024, allocating funding to address disparities in digital access, skills and affordability. There are several initiatives within the plan specific to the Charleston region, and they include partners like the Lowcountry Digital Equity Coalition (LDEC), One Region, the Tri-County Cradle to Career Collaborative and the Charleston Digital Corridor.

Continue to pursue solutions to the region’s affordability challenges Through the existing One Region and Economic Leadership Council platforms, as well as work being led by area chambers of commerce, nonprofits and local governments, the Charleston region recognizes that rising costs of living is affecting residents’ quality of life.

In an economic development context, this factor (including related topics of access to housing, transportation, and childcare) could impact the region’s ability to attract and retain talent and businesses.

Continue to communicate that affordability and economic development are connected issues and support efforts to address the challenge.

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Apply for SC Quantum’s Quantum Project Funding to supplement university programs Quantum computing holds significant promise for South Carolina’s economy. SC Quantum is leading the roadmap for workforce development and investment in the field to provide opportunity for all South Carolinians. As a specific example of expanding innovation-specific programming in the region, SC Quantum’s “Quantum Projects Fund” is supporting university-led projects that help grow the state’s quantum-related talent pool and boost quantumrelated innovations. Charleston area higher education institutions could seek this funding and help build new programming for this emerging and promising field.

Goal: Develop, attract and retain top innovation talent

Focus area 2: Attract world-class talent to the region Launch coordinated talent attraction efforts for researchers, entrepreneurs, and skilled workers.

Potential actions: Explore new funding mechanisms to attract distinguished researchers to the region

Create the “Stanford d.school” of the East Coast to draw talent into the region

Looking at models like the Governor’s University Research Initiative (GURI) in Texas, regional partners could research and pursue funding mechanisms that could aid in the recruitment of distinguished researchers to local universities. For example, in Texas, matching grants of up to $5m per distinguished researcher can be made from the State for the recruitment of faculty who are Nobel Laureates or members of the National Academy of Sciences, Engineering or Medicine. In the case of Charleston, private matches could be solicited as well.

The Stanford d.school is the nationally-renowned center for design thinking at Stanford University. It focuses on using design methods to solve complex problems, emphasizing human-centered approaches and believing that creativity exists in all people.

Launch a “Create in Charleston” campaign to attract startup founders to build in Charleston During the COVID-19 pandemic, numerous cities such as Tulsa, OK; Rochester, NY; Bloomington, IN; and Topeka, KS offered incentives for remote workers to relocate. In many cases, these financial incentives were valued over $10,000 and included requirements that recipients live in the respective city for at least one year. With a similar “Create in Charleston” campaign, the Charleston region could go a step further and incentivize founding teams of startup companies to build their companies in the Charleston region, offering perks like free office space, access to mentors, investor introductions or grant funding. As many regions have seen with their remote worker incentives, after a year, retention rates remain high.

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The d.school offers various programs, including classes for enrolled Stanford students and workshops for professionals to learn the tenets of design thinking and how they can be applied to their work. The “K12 Lab,” for instance, offers educators the chance to learn the integration of design thinking into their classrooms. Executives can attend bootcamps at the d.school to learn better ways of designing products, leading teams, or delivering services across a variety of industries.

The d.school has become a destination within Stanford.

What if something similar were to be created in Charleston? Luckily, Stanford has published a playbook with 10 imperatives for starting a d.school.

Goal: Reduce resource gaps and improve availability

What are we trying to achieve?

We understand the needs of innovators and industry, and we proactively invest in capital and other resources to help them succeed.

This goal relates to the mechanisms, community, programs, funding, and expertise that enables people to innovate. Like many of the nation’s topperforming economies, the Charleston region has seen intentional investment in innovation infrastructure happen over the last few decades such that the region is poised to become a hub for the world’s best research, companies and talent. To maintain this momentum, continued cohesive investment in innovation infrastructure is crucial.

Currently, Charleston boasts a growing innovation ecosystem with wellorganized entrepreneurial assets that include Blue Sky Labs, Charleston Digital Corridor, the Harbor Entrepreneur Center, small business development centers across the counties and newly-formed life sciences accelerator SCBioDrive; research and commercialization assets like Clemson’s Charleston Innovation Campus, MUSC and its Zucker Institute for Innovation Commercialization, and the South Carolina Research Authority; as well as investment capital through Charleston Angel Partners, Good Growth Capital, Hi Mark Capital, among others. Expanding program offerings to support the translation of ideas to viable companies is essential, as is investing in workforce development programs. Further, there are opportunities to better connect corporates with research institutions, the startup community, and federal assets like NIWC and Joint Base Charleston.

Of note, Charleston is beginning to benefit from investments made by MUSC and others in place-based innovation through the Innovation District. Place-based innovation is more than merely a set of buildings.

When activated with targeted services and programming through accelerators and incubators, customer and vendor connections, and networking and events, innovation districts have the potential to have exponential benefits to the community.

While the CRDA and regional partners are clearly thinking ahead, this strategy offers additional suggestions about filling gaps in the continuum of services to scale innovation.

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Goal: Reduce resource gaps and improve availability

Focus area 1: Increase the region’s capacity for research and development and entrepreneurship Facilitate innovative collaborations, scale tech transfer and commercialization efforts, and attract research functions.

Potential actions: Champion the Innovation District as an economic development priority

Meaningfully engage the region’s experienced entrepreneurs and high-net-worth residents

Successful place-based innovation involves more than simply constructing a set of buildings in close proximity to one another; it involves providing targeted services and events, programs to facilitate capital access and product development, and networking and events that bring innovators and those adjacent to them together. To supplement MUSC’s investment in developing Charleston’s Innovation District, there is ample opportunity for existing ecosystem partners to have a presence in the District by, for example, leading programs, locating on campus, and serving as mentors.

The Charleston region is home, or second home, to an impressive base of high-net-worth individuals retirees, corporate executives, investors, and entrepreneurs. There is an opportunity for the CRDA, leveraging its trusted relationships, to engage both seasoned founders and investors for the benefit of the innovation economy, whether through angel investment, mentorship or roles in building the ecosystem. Nationally-recognized angel platforms like Launchpad Venture Group provide tried-and-true examples for educating and engaging the community in early-stage investing (see the Appendix for additional information).

Strengthen collaborations to scale R&D and higher education presence University and college-driven innovation can be the lifeblood of a vibrant innovation ecosystem. The Charleston region is home to higher education partners including The Citadel, Charleston Southern University, the College of Charleston, MUSC, Trident Tech, and it boasts Clemson University’s Innovation Campus, a major outpost of South Carolina’s landgrant university. By aligning resources to increase research and development activity within academia and private corporations through sponsored research and investment in technology transfer infrastructure, for instance, the region could see drastic improvement in commercialization output.

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Charleston Inspired: Discover what’s possible

Advocate for a future hub-and-spoke Innovation District model As the MUSC Innovation District matures, there could become an opportunity to grow its reach through innovation centers located in other areas of the region. Establishing cluster or program-based innovation neighborhoods across Berkeley, Charleston and Dorchester counties could help lower barriers to participation in the innovation economy while supporting the growth of the region’s innovation targets.

Goal: Reduce resource gaps and improve availability

Potential actions, continued: Continue efforts to connect academia, private corporations and federal assets

Leverage technology to crowdsource innovative solutions to community challenges

The CRDA, or one of its regional partners, could consider standing up an “innovation concierge office” to reduce friction in connecting the region’s corporates, academics and federal assets like Naval Information Warfare Center (NIWC) and Joint Base Charleston. This concierge office could play a similar role as the Nashville Entrepreneur Center plays for founders in the Nashville region: having dedicated staff that remain aware of the myriad ways innovative businesses could be connected for mutual benefit (see Appendix for additional information about the Nashville Entrepreneur Center).

In stakeholder conversations, innovation was often described as a mindset - how the region solves challenges and leverages new ways of thinking.

These challenges could be any number of things, ranging from planning new housing developments and the infrastructure to support them to improving the efficiency by which commuters travel from their home to their place of work. Leaning on the tenets of human centered design, the region could create effective mechanisms (through a dedicated website, for instance) to gather both ideas and solutions, connecting citizens to innovation.

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Charleston Inspired: Discover what’s possible

Goal: Reduce resource gaps and improve availability

Focus area 2: Attract and scale capital resources in the region to help companies grow Advocate for incentives, capture federal dollars and develop new capital-focused programs to help entrepreneurs.

Potential actions: Champion and pursue innovation-related federal funding opportunities

Explore the feasibility of creating a venture development organization

Though the industrial policy boom that followed the COVID-19 pandemic is likely ending, several federal agencies fund R&D, support capital formation and invest in ecosystem building on a recurring basis. The Economic Development Administration’s Build to Scale program, STEM Talent Challenge, and the National Science Foundation’s Innovation Engines program, for example, represent recurrent opportunities for regions like Charleston to compete for federal funding. In the spirit of the SC Nexus’ successful Tech Hubs award, a coalition could be formed within the Charleston region that is responsible for identifying new federal funding opportunities, bringing together partners, assisting with application writing, and possibly serving as the fiscal agent for opportunities as they arise.

Venture development organizations have often been called the “Swiss Army Knife” of innovation economies given their multifaceted entrepreneurial programs, direct investment placement and role in economic development. Creating a venture development organization that specifically serves the Charleston region could be helpful. This would not be a new frontier for economic development initiatives – there are myriad examples of successful models like Innovation Works in Pittsburgh, PA; Rev1 Ventures in Columbus, OH (see Appendix); and the Maine Technology Institute in ME. Through this model, the Charleston region could potentially provide a more robust platform for startup/corporate engagement, early-stage capital investment and technology commercialization.

Create more competitive innovation-focused incentives and policies Continue creating more competitive state policies that encourage R&D investments, innovationoriented industry attraction and expansion, venture capital and angel investment, and entrepreneurship.

Work with partners to update local and state incentives and regulations in ways that support innovation-oriented growth. This could begin by aligning legislative agendas across regional and state partner organizations. Identify, for example, 2-3 innovation-related initiatives and work with partners to ensure they are part of their annual agendas.

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Charleston Inspired: Discover what’s possible

Implementation guidance

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Implementation guidance

Considerations for implementation Operationalizing this Charleston Inspired strategy will be a team sport. While the CRDA commissioned this strategy, numerous regional partners will have a role to play in its implementation. Reflect on the CRDA’s specific roles and how they may differ for each action. Also, think through ways to coordinate with and include other regional partners and whether it’s possible, at some point, that a new organization may be needed to facilitate an element of this strategy. Considerations include: • Define the CRDA’s role in building an innovation ecosystem and equip accordingly. Economic development organizations (EDOs) play a variety of roles in supporting their respective innovation ecosystems. EDOs can lead select innovation initiatives in their regions, operate innovation programs, or even help incubate and create new entities. The CRDA’s role could vary between taking the lead in implementing aspects of this strategy to supporting others as they take the helm. The overarching goal is to organize in a way that is coordinated and aligned while generating the greatest benefits for the region.

• Continue coordinating with BCDCOG, the Charleston Metro Chamber of Commerce, local economic development partners, One Region, the Economic Leadership Council and others to address community needs. Broader topics like housing, affordability, infrastructure and workforce development impact region’s competitiveness, but are not direct components of this strategy. It will be important to continue to support those critical efforts and also determine how those partners can play a role in innovation-related initiatives.

• Explore new organizational models if needed to lead a strategic initiative(s). As this strategy is carried out, it may become apparent that a new organization is needed to lead one or more initiatives. This might mean forming an ad hoc innovation task force, expanding the mission of an existing organization or even incubating and launching a new nonprofit to manage a long-term project. One such example is the MiamiDade Innovation Authority (MDIA). Other examples are Rev1 Ventures, cited in this report, that serves as Columbus Ohio’s venture development organization, or even Nashville’s Innovation Alliance that was recently established by Mayor Freddie O’Connell and Vanderbilt University to bring together public, private, civic and educational institutions to enhance the region’s innovation ecosystem.

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Charleston Inspired: Discover what’s possible

Putting the strategy into action Successful implementation of this strategy will require adequate resources and clear alignment between the goals and priorities of this strategy and those responsible for leading various initiatives. It will be helpful to determine which areas of focus and initiatives the CRDA will lead, and which initiatives will be led by partner organizations. Roles could differ among partners, such as:

1 Inform

Generate objective facts and insights on an issue to help inform decision-making.

2 Convene

Bring diverse leaders and innovators together to learn, plan and work.

3 Communicate

Proactively communicate research and information to inspire action.

4 Advocate, support and scale

Provide vocal support, staff and/or financial resources to help activate an initiative(s).

5 Lead

Incorporate an initiative(s) into one’s own organizational plan and daily activities. Leading could entail the other four roles as well – informing, convening, communicating and advocating.

Operationalizing this strategy will also entail estimating start timing for each initiative. As timing and roles become more concrete, a simple table such as the one illustrated below could be used to organize efforts.

Sample implementation outline: CRDA role(s) Initiative

Start timing

Lead partner

Supporting partners

(inform, convene, communicate, advocate, lead)

For CRDA, it will be helpful to refer to this strategy when creating department and staff programs of work and setting performance measurements. This could be an ideal time for the CRDA to launch Charleston Inspired and consider how this “both and” approach can be incorporated into its day-to-day activities. There are three new Vice Presidents (Economic Development, Marketing and Strategy, and Operations) who are energized about helping the organization and region reach new heights. CRDA’s board leadership has also indicated their enthusiasm and support for this strategy.

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Charleston Inspired: Discover what’s possible

Metrics Monitoring and reporting progress is an important part of implementing a strategic plan. Through the Charleston Regional Scorecard, work of the BCDCOG and others, the region has a track record of measuring economic development progress and keeping the community informed.

In the upcoming year and beyond, the Scorecard’s metrics and benchmarks could be updated to incorporate innovation-related metrics like the ones listed below. A baseline for this information is provided in the October 2024 Findings Report.

At the end of the day, however, how will one know that the region is successfully creating an innovation-driven economy? Consider adopting a lead indicator that relates to the forecast presented in the beginning of this strategy: If growth in GRP over time were more on par with highly innovative U.S. regions like Austin or Seattle, residents of the region will have significantly higher earnings.

Put in terms of an ultimate desired outcome for economic development:

We will steadily grow the region’s GRP over the next 10 years from 3.5% per year today to 4.2% per year by 2040 or sooner. By achieving this, Charleston region residents will earn nearly $10B more than they do today.

Consider including metrics such as these in future regional scorecards

Accelerated Growth Gross regional product

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Innovative Human Capital

Innovation Funding Venture capital

Per capita income

STEM occupation employment / concentrations

Higher education R&D

Job creation in innovation targets

Higher education STEM completions

Higher education licensing revenue

Patents per 100K

SBIR/STTR awards

Greater Richmond Strategic 2025 - 2030 (DRAFT) Charleston Inspired: DiscoverPlan: what’s possible

Photo credit: Greater Richmond Partnership

Appendix: Leading practices

Leading practice examples: Attain visibility and perception as an innovative region.

Building cross-regional collaborations Tulsa (Oklahoma)/Northwest Arkansas Advanced Mobility Corridor (412 Corridor) Named for the highway that connects both metro regions, the 412 Corridor was created through a memorandum of understanding between the governors of Oklahoma and Arkansas and formal, private sector collaborations (brought together through both the U.S. EDA’s Build Back Better Regional Challenge and Tech Hubs and the National Science Foundation’s Regional Innovation Engines grant opportunities) between Tulsa Innovation Labs, the George Kaiser Family Foundation, Walton Family Foundation, Runway Group, and the Northwest Arkansas Council.

The Tulsa and Northwest Arkansas regions have industrial identities rooted in energy and logistics, respectively, however technology and innovation have created opportunity for both regions to benefit from shared investment in developing an advanced mobility cluster. The super-region has been successful in building an identity that crosses state lines, pursuing federal funding opportunities to further bolster research and development assets, and securing commercial support for the cluster.

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Hyper-focused business development Greater Houston Partnership (Texas) Greater Houston Partnership (the Partnership) participates in numerous business recruitment mission trips to other countries each year. France is a target destination due to the region’s active trade relationship with French industries in the Houston area. The Partnership has collaborated with elected officials from the City of Houston and local business leaders on mission trips to France.

The goal of the trips is to raise Greater Houston’s international profile as a leader in innovation, aerospace, energy and education. In its 2022 trip to Paris, the Greater Houston delegation visited a large startup campus, companies in target industries, cultural sites and the opening of the Rice University Paris Center (Rice is based in Houston). Houston also has a strong relationship with Nice, France, which is one of its international sister cities.

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Charleston Inspired: Discover what’s possible

Leading practice examples: Develop, attract and retain top innovation talent

Attracting world-class researchers to the region Texas Governor’s University Research Initiative (GURI) The Governor’s University Research Initiative was enacted by the 84th Legislature in 2015 with the goal of bringing the best and brightest researchers in the world to the state of Texas.

Attracting researchers to the state requires more than simply paying their salaries, often requiring laboratory space, graduate students and related infrastructure to carry out their research projects. The fund is intended to attract a 1:1 public-to-private match and is limited to $5m per distinguished researcher. Since the program’s inception, Texas has seen a dramatic rise in the number of public and private universities considered Tier 1 research institutions, rising from four in 2015 to 11 in 2024, now boasting more public Tier 1 research universities than any other state in the country.

Highlighting meaningful career pathways in target industries Earn Up – JAXUSA Partnership (Jacksonville, FL) Founded by the JAXUSA Partnership, Earn Up is an initiative that outlines career pathways inPhoto credit: the region’s target industries and aligns learners with the skills they need to realize upward mobility in the Jacksonville region’s talent ecosystem. Collaborating closely with education institutions, business leaders, and community figureheads, the Partnership concentrates on a unified strategy aimed at enhancing the coordination of workforce development initiatives. The “Invest in Your Future” program pairs the region’s companies with students, adult learners, and veterans to provide real-world job experiences, including internships, apprenticeships, job shadowing, and more. The Earn Up website provides profiles in each target industry that outline growth rates, job functions and earning potential for a variety of roles in which learners could one day work.

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Charleston Inspired: Discover what’s possible

Leading practice examples: Reduce resource gaps and improve availability

Combining capital and advisory services to grow the region’s next headquarters Rev1 Ventures (Columbus, OH) Since its inception, Rev1 Ventures has served over 1,300 startups and generated over $4b in economic impact in the Columbus, OH region. With support from the state of Ohio through its Third Frontier Fund, other public sector support through the City of Columbus and local county governments, and private support from the myriad corporates that call Columbus home, Rev1 has grown from making early-stage proof-of-concept grants to fledgling startups to becoming the most active seed-stage investor in the Midwest and one of the leading thought partners to corporates trying to meaningfully engage with the startup community.

Combining capital and advisory services to grow the region’s next headquarters Launchpad Venture Group (New England) Launchpad is a New England-based angel network that consistently ranks in the top three most active angel networks in the United States. Launchpad boasts over 175 active members participating in regular investments throughout the year, where they collectively invest between Photo credit: $8-10m in between 30 and 40 rounds of financing for early-stage startups. There is a continuum of events meant to move viable startups through the diligence pipeline, ranging from casual online meet and greets to monthly in-person pitch presentations.

Launchpad emphasizes the importance of active participation in trainings and continuing education, due diligence and evaluation, and deploying capital in deals. Members with interest in a particular startup form small groups to perform in-depth due diligence and learn from one another. Each member serves as an ambassador for early-stage investing and to the local startup community with the goal of growing the amount of angel and venture capital in the region and sharing their expertise with the next generation of founders.

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Charleston Inspired: Discover what’s possible

Leading practice examples: Increase agility and coordination of innovation assets

Providing thought leadership on innovative topics The Right Place AI for Manufacturing Opportunity Roadmap (Michigan) In 2024, The Right Place (the regional economic development organization for greater Grand Rapids, MI) and its Manufacturer’s Council released the AI for Manufacturing Roadmap to help local manufacturers understand how to integrate AI into their operations and the benefits AI could provide the region’s industries. This report was developed in conjunction with local manufacturers themselves, with more than 60 manufacturers engaged in the strategic planning process. This means the findings and recommendations in the Roadmap are specific to greater Grand Rapids businesses and directly address challenges and needs that local manufacturers are facing.

The Roadmap includes information about AI’s role in manufacturing, opportunities with AI, an action plan and next steps. The Roadmap seeks to provide both information on the benefits of integrating AI into manufacturing and business processes, including areas like proactive workforce development, optimized manufacturing systems and predictive business intelligence.

The Roadmap also provides practical advice for taking the next steps to implement these strategies.

Coordinating efforts to fill gaps and become a more innovation-driven economy

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The Nashville Innovation Alliance and the Nashville Entrepreneur Center Two initiatives in Nashville, TN, stand out as innovation-focused economic development practices. First, co-founded by the Nashville Area Chamber in 2010, the Nashville Entrepreneur Center serves as a catalyst for the entrepreneurial ecosystem in Nashville. The center features a brick-and-mortar location that includes a learning hub that hosts workshops and conferences, a boardroom, meeting spaces, and a makerspace studio for community use.

The Center also runs industry-specific accelerator programs for the region’s target industries (fintech, healthcare, and music and entertainment).

Notably, The Center offers dedicated resources to map out the local capital landscape and make it easier for entrepreneurs to find funding. There is a dedicated “Capital Connector” on staff that works directly with Nashville-based entrepreneurs, offering one-on-one assessments of their business readiness, delivering constructive feedback and guidance, and connecting them with potential investors. To date, the program has mapped over 140 funding sources, made 300 connections, and helped companies raise $3.6 million in investments.

Second, Nashville Mayor Freddie O’Connell and Vanderbilt University recently established the Nashville Innovation Alliance. The Alliance brings together public, private, civic and education institutions to “enhance the region’s innovation ecosystem.” Though it is in its early stages, it could be worth watching as its mission and initiatives around talent, capital, research and real estate are similar to the goals of this strategy.

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