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Indicators That Matter: What to Follow in the New Year

It's easy to rip the year-end Top 10s and crystal-ball gazing that dominates the news during the holidays, but I've written my fair share of page-filling and bandwidth-gobbling wrapups and look-aheads.

It's even easier to rip the myriad lists so many people enjoy reading, even the highly unscientific one from TheStreet.com last week that ranked Philadelphia as the fourth-ugliest airport in the country. Respondents selected the ugliest from a pre-fabbed list of six, so one could argue that PHL did an admirable job of distancing itself from the truly ugly ducklings (although I'd sacrifice aesthetics for safety every time).

Fact is, in an ever-crowded publishing space, people need stuff to write about more than ever. There were a few pieces I saw during the holiday break that flipped that notion on its head, in that they are centered on themes, places and people who will play a major role in the coming year in shaping the city's future. They're items people should be writing about more than ever, issues that need more in-depth coverage citywide and nationally, and they're pillars of the content we'll strive to bring you throughout 2011 (even at the risk of bypassing the latest rundown of the Nation's Nastiest Sewers or America's Top Places to Live--for Squirrels).

Higher Ed, Higher Ground
An Associated Press story from New Year's Day framed the highly ambitious 20/20 plan from Temple University, which will pump $1.2 billion into a 10-year makeover of its campus, with the plans of its institutional neighbors and how they are transforming economic and community development throughout the city. The University of Pennsylvania (30 years, $6 billion) and Drexel University (five years, $500 million) are also in the midst of their own major projects.

The story points out a few key themes:
--The schools are among the city's largest employers and serve more than 85,000 students.
--Green space, job creation and community development are recurring themes in all the plans.
--Significant financial investment.

The city's deputy mayor for economic development Alan Greenberger says it best in the AP story when he describes the plans as merging "the energy of the institution with the energy of the city."

Creative Vitality
Technically Philly was among those to tout the results of Creative Vitality in Philadelphia: A Three Year Index that was commissioned by the office of Arts, Culture and the Creative Economy.

While the report certainly has some holes, like not factoring in online book and music sales for its cultural vitality index (CVI) indicators and an inability to fully measure independent or freelance employment in the sector, it's hard to denigrate the fact that Philly ranked fifth nationally in CVI growth. Less than half of the 50 metro regions on the list showed CVI growth at all.

Even without a truly complete portrait, the region also maintained the sector's employment level through the recession (chances are there are probably more freelance employees in the sector today than there were in 2006 as a result of layoffs). One thing's for sure: the galleries are becoming as important as the labs in Greater Philly.

Blinded by Life Science
A Mike Armstrong column in the Philadelphia Inquirer noted a recent survey by the National Venture Capital Association provided a worrisome sign for the Greater Philadelphia life sciences community: Investors are evenly split over whether investment in biopharma and medical devices would increase, decrase or remain the same in 2011.

Any lag in VC would no doubt impact our life sciences sector, but it's important to note that the region has continued to grow the industry to its current lofty status (No. 2 nationally behind Boston according to the Milken Institute) despite investment fluctuations in the last decade. In fact, there was a double-digit decline in life sciences investment nationally as VC reached a low for the last decade in 2009.

The NVCA survey also indicated that eight of 10 CEOs surveyed predict they'll add to their employment rolls in the new year. Time will tell who's being overly optimistic, investors or CEOs, but it's hard not to believe the region will continue to shake off bad VC news and find a way. Between the region's always-growing research institutions and healthcare facilities, the continued makeover of big pharma and a new generation of entrepreneurs being nurtured by folks like Ben Franklin Technology Partners of Southeastern Pennsylvania, BioAdvance and PennsylvaniaBio, we reckon the region can handle another curveball.

With stimulus dollars mostly running their course by the end of the year and a new administration moving into Harrisburg, it's more important than ever for Philly to stand on its own and find its way. And as easy as it might be to chalk things up to a list or prediction, we prefer to examine those who are working on the challenges we face.

Happy New Year, innovators!

JOE PETRUCCI is managing editor of Flying Kite. Send feedback here.




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