An alternative view of Tacoma in the 21st century

Tacoma’s future

This is part of an occasional guest-written series on Tacoma’s economic future. See Ken Miller’s Oct. 20 analysis, “City’s greatness can come from doing a lot of little things right,” for the beginning of the conversation. I read Ken Miller’s Oct. 30 article (“City’s greatness can come from doing a lot of little things right”) about Tacoma’s economic future and thought I’d share my own vision for the city.

The most important question to ask is: What will drive economic growth in the 21st century? Tacoma’s economy reflects a second industrial revolution era in decline. We must adapt to a world with a competitive global work force operating in an increasingly knowledge-based economy.

I’m glad Miller started such an important discussion. But Tacoma won’t thrive if we simply focus on the “wild cards” of cultural tourism and Uncle Sam’s joint base. Both make for good sources economic activity, but Tacoma has the ability to be “different somehow” – as Miller put it – as well as become a manufacturing hub by leveraging the wild cards as catalysts for growth.

First, the high number of museums and local artists represents an underlying creative class that will be vital in driving a culture of innovation. We need to tap Tacoma’s creative minds and inspire a next generation of digital entrepreneurs to develop technology companies here. With all of the smart phones, iPads and laptops I see at Starbucks, Tacoma has the makings of a good test bed for consumer technology.

A recent McKinsey study dissected GDP growth and found the Internet was the largest driver, accounting for 21 percent of 2010 GDP gains in the United States. Technology will play a huge role in the new economy, and it’s important for Tacoma to develop a thriving startup environment combining a technology incubator with co-working space and networks of angel investors, venture capital as well as digital entrepreneurs from around the country.

Most don’t realize how much startup funding has changed over the past few years. It’s increasingly inexpensive to get an Internet startup off the ground. Y-Combinator is the best example of this change. The seed-stage incubator, founded by Paul Graham, is designed to give a small amount of funding (average of $18,000 for 6-to-7 percent equity stake) to dozens of startups.

Graham’s team provides a great deal of value by giving product and business-model advice, as well as connecting the founders with investors, engineering talent and other companies for partnership opportunities. Chances are you’ve heard of a Y-Combinator company: DropBox or AirBnB anyone?

In a knowledge-based economy, it all starts with education. Tacoma’s branch of the University of Washington represents the best opportunity for us to develop local engineering and computer science talent.

We might not have anything close to a $400 million grant like the one New York City is offering for a science-engineering campus, but there are changes we can make to promote science and engineering. It starts with pushing computer science in local middle and high schools.

Second, Joint Base Lewis-McChord is a huge resource as a manufacturing catalyst. Not only does it pump millions of federal dollars into our local economy, the base also provides service men and women with very useful skills.

Our military is on the cutting edge of technology, and personnel are developing valuable skill sets along with a strong work ethic – a great recruiting base for high-end manufacturing jobs.

The country needs to reinvigorate its manufacturing/export base, and Tacoma is in a prime position to capitalize on it. Anchored by a port and rail transport infrastructure, the city has the potential to expand its manufacturing sector. With highly skilled labor coming from JBLM and UWT churning out a hundred or so engineering majors every year, we should be able to make the transition – providing we create the environment for success.

The answer is not for Washington to participate in the “race to the bottom” as far as pay and worker’s comp goes. But smart reform and advanced training will be needed to increase our attractiveness.

We must invest in our future and create the city we want our kids to grow up in. Nothing that’s worth doing is easy.

Jonathan Paul, a Tacoma native and entrepreneur, recently moved back to Washington after spending a decade in Silicon Valley. He has worked with dozens of startups.