Building State Capability: A Path to Inclusive Economic Development

The “Building State Capability” panel at the annual SOM Economic Development Symposium in March 2024 delved into the many challenges leaders in economic development face. Professor Kate Cooney, senior lecturer in social enterprise and management at the Yale School of Management and Director of SOM’s Inclusive Economic Development Lab, moderated the conversation with Ryan Dings, the visionary founding Chief Executive Officer of ClimateHaven; Rob Hotaling, a seasoned Senior Advisor and Federal Programs Director with a background as Deputy Commissioner and Chief Investment Officer at the Connecticut Department of Economic and Community Development (DECD); and Katie Newcombe, the dynamic Chief Economic Development Officer at the Center for Economic Growth (CEG) in Albany, New York.

The focus of the panel was the goal to enhance state economic development capability by attracting investment and executing long-term strategic goals for widespread growth. The speakers reflected on the complexities of their day-to-day work in economic development, from navigating limited budgets in a complex policy landscape to fostering regional cooperation and aligning with national objectives.

Katie Newcombe, drawing on her upbringing in rural Pennsylvania—where she saw her community change when neighbors lost their jobs—emphasized a holistic, collaborative approach over isolated efforts. Witnessing firsthand the socioeconomic shifts in her community, she posited that economic vitality stems from university-led innovation, support for startups, and fostering of an agile workforce — a synergy of efforts across sectors.

Rob Hotaling, with the DECD, highlighted the necessity for foresighted governance, underscoring the importance of impactful outcomes over mere expenditures. Reflecting on his gubernatorial campaign in Connecticut, Hotaling shared insights into strategic planning that transcends immediate needs, aiming for sustainable, long-term impact at the local, city, and state levels. The challenge, he notes, lies not just in implementing policies but in continually assessing and refining them to ensure they serve their intended purposes effectively.

As the founding CEO of ClimateHaven, a climate tech incubator in New Haven, Ryan Dings brought a unique perspective, spotlighting New Haven’s distinctive strengths: a vibrant culture, exceptional talent, an affordable cost of living, and a burgeoning biotech ecosystem. With the rise of climate technology, Dings sees an opportunity to leverage this talent pool to address environmental concerns while promoting economic growth. The key, according to Dings, is developing a robust ecosystem where startups thrive, offering resilience and opportunities within the local workforce. As many startups will inevitably fail, it is important to have a robust startup ecosystem so that people can quickly find other opportunities in the region.

The panel collectively underscored the significance of industry clusters, advocating for a strategic alignment with regional strengths. Albany, New York, serves as a recent example: the city cultivated a nanochip cluster that capitalizes on the CHIPS and Science Act. Albany’s Capital Region is one of only two regions in the world with a strong nanotech manufacturing presence, and the combined efforts across sectors harnessed the advantages in nanotechnology, life sciences, AI, and semiconductors. This achievement, decades in the making, exemplifies the power of collaborative partnerships between academia, government, and industry.

This discussion reaffirmed the need for a systemic and collaborative approach to economic development. By leveraging unique regional strengths and fostering long-term partnerships across the academic, public, and private sectors, it is possible to chart a path toward inclusive economic prosperity that is sustainable for decades to come.