Houston’s dynamic business environment, technically educated workforce, and existing competencies provide fertile ground for growth. By taking a targeted approach and focusing on growing those sectors of the economy in which Houston has its greatest strengths we can build an economic core that supports many other industries. Studies indicate that for every 100 high-paying jobs that are created, 245 additional jobs are created. By fostering job creation and growth in information-based professions with high paying jobs, we can create new jobs and economic opportunities for working families all across Houston. More »
Houston is the energy capital of the world and it should stay that way. Nearly every major energy company is headquartered in Houston or has significant operations based here. More than 3,600 energy-related firms call the Houston area home and we must preserve that core, while leveraging it to drive further economic growth for the City.
We need to strengthen our traditional energy base, recruiting additional energy companies to Houston based on our existing network. And we must preserve our future in the industry, working with local schools and colleges to ensure Houston’s work force continues to have the technical skills these companies need.
While preserving that foundation, we also need to build on it. First, we should convene a New Energy Development Taskforce, aimed at laying out a strategy to develop Houston’s new energy industry in coming years. We can encourage local development of new and alternative energy sources such as wind, solar, thermal, and biodiesel, by continuing and expanding City policies aimed at growing demand. Today, the City buys 32% of its electricity from renewable sources. Peter Brown would grow that share to 50% by the end of his term, providing a market to help local new energy providers grow. And the City should do more to facilitate energy start-ups, connecting them with other major companies in the region and around the world in order to promote success.
Houston is a truly international City, and this is one of our strongest assets. The Port of Houston handles more foreign cargo than any other port in the country, and is the second largest in overall tonnage. Our international airport is one of the busiest in the world. It’s all part of what makes Houston such a great place to do business. And Houston’s broad diversity gives our City connections all over the world. We should use these connections to expand trade and international commerce.
Peter Brown is proposing an Office of Economic Development and Job Creation that will take a leading role in bringing new commerce and new jobs to Houston, and linking Houston companies with opportunities around the world. In addition to marketing and outreach efforts, the City should proactively engage with other countries and economies – sending trade missions, following up on them, and developing additional sister City relationships. And we should continue our efforts to be a destination for convention events and tourism.
Finally, we should continue to make infrastructure investments that expand opportunities in this sector. The recent investment in state-of-the-art refrigeration facilities at IAH for perishable produce will allow Houston to serve as a viable port of entry for airborne cargo that requires refrigeration, particularly produce and other food. Miami currently receives 70% of this traffic, but with an ideal location for imports from South and Central America, and top-notch facilities, Houston can challenge them in that role.
Houston’s internationally-renowned Texas Medical Center is one of the largest in the world. We have first class teaching hospitals, renowned primary care facilities and extensive specialized research institutions. These are exceptional assets and we should do more to leverage them. With a well-trained workforce ready for the needs of health sciences-related companies, Houston should be a leader in these fields.
First and foremost, we must make a concerted effort to bring industry leaders to Houston, building on the network effects – related offices, lab suppliers, etc – that such a facility brings. The pharmaceutical industry requires a large support system, which allows businesses to grow around these companies. Houston’s existing facilities give it a strong advantage in this field, as testing and research are best done in environments with lots of diverse medical encounters. Houston’s large variety of major Hospitals provide such an environment.
Because this field is still emerging, and because of the strong network effects within it, it’s important that Houston be an early mover to take full advantage of the opportunities available. In addition to aggressive recruitment efforts, we can leverage the resources of City investments to support the growth of this sector. Moreover, extensive opportunities for research funding exist at the federal and state levels, and the City should be a partner and advocate in helping local researchers win these awards. For example, we should work with our City’s top-notch cancer research to win a significant portion of the up to $3 billion in cancer treatment research grants to be allocated through the Cancer Prevention and Research Institute of Texas.
Houston companies and institutions are at the forefront of cutting-edge research and development in many information technology fields. Houston was one of the top-ranked cities for up-and-coming tech companies in a recent study. Moreover, our local universities are making impressive advances in their fields: Rice University is leading research in innovative areas like nano-composites for bone density, Baylor College of Medicine has a top ranked molecular genetics faculty, and the University of Houston is leading research in bio-nanotechnology with the development of DNA bio-chips.
The growth of this sector isn’t simply important in its own right: these advances are used by companies in many other economic sectors, and their expansion will help fuel related economic growth.
The City should expand awareness and capacity of resources like the Houston Technology Center and Bio-Houston and better integrate them with other business support services the City provides. Other assets, such as the vibrant research environment at local universities, should also be leveraged. The City should also explore creating a seed fund to offset the lack of venture capital available in Houston, as other cities have done successfully. This could be done by working through the existing HTC complex and resources, and partnering with local industries and financial institutions, who could provide the funding. And the City should make aggressive efforts to bring more venture capital to Houston.
Finally, the development of information and advanced technology ventures is heavily driven by network effects. Success stories in Houston should be marketed aggressively, to let other beginning entrepreneurs know about the advantages of starting up their business here, rather than heading for well-established start-up locales like California or Boston.
With NASA and the Johnson Space Center, and one of the top international airports in the world, Houston’s assets in growing and developing aerospace ventures are formidable. A strong base of experience, a well-suited work force, and a good reputation should help Houston develop into a top aerospace industrial cluster. The City should build that reputation, marketing itself as a leader in the field and making sure executives around the world are well informed about Houston’s assets.
Our existing foundation should also be leveraged in more direct ways. We should develop programs with local research facilities and NASA to foster commercial innovation and entrepreneurship. These might include entrepreneur-in-residence or entrepreneur leave of absence programs, as suggested in Mayor White’s 2004 Economic Development Task Force report, and efforts to better integrate start-ups into these programs.