A look at world trade centers as examples of regionally important innovation districts, and in particular at the example of the Philadelphia World Trade Center.
Greater Philadelphia World Trade Center & Innovation District
1. GREATER PHILADELPHIA
WORLD TRADE CENTER
An Innovation District
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2. Six Issues
I. What is a World Trade Center?
II. What is the Greater Philadelphia World Trade Center?
III. What is an Innovation District?
IV. What Economic Impact Can Be Expected From World
Trade Centers?
V. What Economic Impact Can Be Expected From
Innovation Districts?
VI. Why Are World Trade Centers and Innovation Districts
a Formula for Rapid Economic Development?
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3. I. WHAT IS A WORLD TRADE CENTER?
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4. A World Trade Center is a real estate project focused on
regional economic development and job creation by
helping to increase international trade
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5. WTC Barcelona
WTC Cairo
WTC New York
WTC Seoul WTC Sao Paulo
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6. What is the Structure of the Organization?
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7. World Trade Centers Association (New York City)
• Established in 1968
• “License Driven”: covering cities and regions
• Qualified licensees have the exclusive right to:
- Build a World Trade Center
- Use the WTCA’s registered marks and logos
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8. How Many World Trade Centers Are There?
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9. • 335 World Trade Centers in approximately 100 countries
• Over 1,000,000 businesses world-wide are tenants or members
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10. What is the Definition of Greater
Philadelphia for the Purposes of the Project’s
Market Area?
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11. Greater Philadelphia WTC Region
The Thirteen County Delaware Valley Region
consisting of;
Southeastern Pennsylvania – five counties
South Jersey – eight counties
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12. Who are Examples of Owners and Sponsors
of World Trade Centers?
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13. Selected World Trade Centers And Their Ownership
Genoa Chamber of Commerce Ross Perot interests
Portland General Electric, USA Port of Tacoma, Washington
Barcelona Port Authorities Allegheny County, Pennsylvania
Hannover Fair Company, Germany Port Authority of Norfolk, Va.
St. Louis County Economic Development Council Maryland Port Administration
Shanghai Chamber of Commerce Korean International Trade Association (KITA)
Abu Dhabi Chamber of Commerce City of Lexington, Kentucky
The Provincial Government of Halifax Nest Investments (15 WTCs throughout the
Fidelity Investments Middle East)
Paris Chamber of Commerce China External Trade Development Council
(CETRA)
Port Authority of New York and New Jersey
University of Arkansas University of Montana
OVER 60% OF WORLD TRADE CENTER SPONSORS AND OWNERS ARE PRIVATE
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14. II. WHAT IS THE GREATER PHILADELPHIA
WORLD TRADE CENTER?
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15. Who is the Developer for the
Greater Philadelphia WTC?
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16. Waterfront Renaissance Associates,
a Pennsylvania Limited Partnership
Martin Schiffman- Managing Partner
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17. Who Is Waterfront Renaissance
Associates?
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18. Waterfront Renaissance Associates was
established in 1987 by its major investor, the
New York based investment firm of
Carl Marks & Co.
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19. When Did the Greater Philadelphia
World Trade Center Commence?
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20. In 1989 WRA acquired the exclusive rights to construct a
World Trade Center project for Greater Philadelphia
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21. What is the Current Structure of the
Greater Philadelphia World Trade Center
Venture?
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22. The venture is a “public/private” partnership
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23. When was the Public/Private Partnership
Established?
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24. October 2002
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25. Who is Involved in the Public Private
Partnership?
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26. Project Development:
Waterfront Renaissance Associates
Support of Waterfront Renaissance Associates:
Carl Marks & Co.
In-Kind Support to WTCGP:
The Delaware River Port Authority
Trade Services to Area Businesses:
World Trade Center of Greater Philadelphia
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27. Who is World Trade Center of Greater Philadelphia?
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28. World Trade Center of Greater Philadelphia,
the global trading services company
•Established in 2002
•Helps regional businesses to increase exports
•Located at 1500 Market St. in Philadelphia
•Ten personnel: eight full-time employees, 2 interns
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29. How Successful Has WTCGP Been
Since Inception in October 2002?
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30. Over $800 Million in incremental exports
Over 10,000 full time jobs created regionally, in
Pennsylvania and New Jersey
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31. III. WHAT IS AN INNOVATION DISTRICT?
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32. An Innovation District is :
•A specific geographical area in which collaboration takes place between
universities, the public sector dealing with policy, the public sector dealing with
transportation and other infrastructure, and the private sector.
•The goal is to monetize the ideas being incubated at the university level,
with participation from the private sector.
•Designed to create a multitude of consumable products which create jobs.
•The involvement of the public sector is to provide the “policy and physical
shape” of the district.
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33. The First Innovation Districts Were Regional
THE GRAND DADDIES OF THEM ALL
SILICON VALLEY, Northern California
THE RESEARCH TRIANGLE, Raleigh/Durham, NC
LATER GENERATIONS
SILICON FOREST, Hillsborough County, Oregon
TECHNOLOGY CORRIDOR, Seattle to Northeast Puget Sound
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34. Do Innovation Districts Have Recognizable
Characteristics?
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35. University Involvement
Public Investment
Private Investment
Tax Incentives
Transportation Investment
Industry Clusters Targeted
Urban Planning Goals
Actual or Expected Economic Impact
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36. Innovation Districts Now Are Often Urban
(“When life deals you lemons you make lemonade”)
•Cities no longer produce jobs as they had in the
period between the Industrial Revolution and WW II
•They are often found with the “raw materials”
which comprise good Innovation Districts
(universities, mass transit, “smart” residential
neighborhoods, etc.)
•In essence, Innovation Districts represent the
new-age “factory town”
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37. IV. WHAT ECONOMIC IMPACT CAN BE
EXPECTED FROM WORLD TRADE
CENTERS?
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38. Are There Examples of International Tenants Who
Have Made World Trade Centers Their Home?
(Essentially they are First Class Commercial Office Projects)
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39.
40. What Are the Economic Impacts Produced by the
Development of a World Trade Center?
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41. WORLD TRADE CENTER TOTAL ANNUAL SPENDING IMPACT FISCAL IMPACT
Boston $136,000,000 $33,000,000
Dresden $61,000,000 $19,000,000
Macau $10,000,000 $2,000,000
Sao Paulo $333,000,000 $48,000,000
Taipei $1,374,000,000 $152,000,000
Amsterdam $150,900,000 $43,600,000
Seoul $1,915,400,000 $386,900,000
University of Arkansas $55,400,000 $7,910,000
Bucharest $61,900,000 $10,700,000
Changzhou $107,800,000 $12,280,000
Hong Kong Int’l Airport $171,600,000 $25,340,000
Istanbul $2,281,000,000 $401,410,000
Malmo, Sweden $77,400,000 $39,720,000
Panama $92,500,000 $13,200,000
New York $2,191,108,175 $590,400,000
Greater Philadelphia World Trade Center
42. Is it Known that the “Alter Egos” of
WTC Projects are As Urban
Redevelopment Projects?
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43. World Trade Centers Are Urban Redevelopment Projects
City Neighborhood New Construction
New York Lower West Side (“Radio Row”) 16 Million SF
Sao Paulo “Brooklin” neighborhood 2,000,000 SF
Boston “old port” Waterfront 2,750,000 SF
Amsterdam the “Zuidas” neighborhood 1,350,000 SF
Seoul Korean City Air Terminal district 3,440,000 SF
Dresden edge of business district 934,000 SF
Changzhou Wujin District 1,400,000 SF
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44. Which Industry Clusters Has the Project Targeted
Which Are Relevant for the Region?
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45. The Greater Philadelphia World Trade Center Will Support the Region’s
Growth in Knowledge-Based Industries
• Pharmaceutical Industry: 80% of the world’s largest firms, over 50,000
employees
• Technology Businesses Started
by University Research: * U. of Penn. and Drexel U. rank 4th and 7th nationally ;
* Rowan recently designated as a comprehensive research
university - joint programs with Rutgers-Camden;
* Forbes Annual 25 “Most Connected Campuses”
List: U. of Penn., Drexel, Temple, Villanova
• Higher Education: 83 Universities, 300,000 students; the largest
“college town” in the U.S.
• Healthcare and Medical Research: Nine medical schools, 26 teaching hospitals,
240,000 healthcare workers; One of every five
doctors in the U.S. is educated in Philadelphia
• Bioengineering Companies: Over 100 establishments; 5,000 employees
• Information Technology Companies: 6,600 establishments, 150,000 employees
• Venture Capital: $1.2 billion provided in 2011
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46. V. WHAT ECONOMIC IMPACT CAN BE
EXPECTED FROM INNOVATION
DISTRICTS?
(Courtesy of our host, New Jersey Future)
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47. BARCELONA (reclaimed Mediterranean Waterfront)
At the center of the Barcelona Innovation District is
World Trade Center Barcelona
University Involvement- Ten universities and 12 research centers
Public Investment- $226.8 Million in transportation and infrastructure
Private Investment- €45 Million (approximately $58.5 Million) in infrastructure
Actual or Expected Economic Impact- A 22.8% increase in residents since 2002
from 73,464 to 90,214;
More than 56,000 new jobs;
Between 2000 and 2011 4,500 new companies moved into the district;
11% of the new companies in the district by 2008 were foreign (“FDI”);
1,300 new housing units were created by December 2011
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48. BOSTON (reclaimed the old “south waterfront”)
At the center of the Boston Innovation District is World Trade Center Boston
University Involvement- 35 colleges are in the vicinity of the district
Public Investment- $6 billion through the “Big Dig”
Private Investment- Most of the land in the district is privately owned
Actual or Expected Results- Since 2010 100 new companies have brought over
3,000 jobs into the district;
Vertex, a pharmaceutical company, is building a 1.1 million sf global headquarters
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49. NEW YORK CITY (the results of an international competition)
University Involvement- The RPF was won by Cornell University/Technion in 2012
Public Investment- $100 Million for infrastructure and construction costs
Private Investment- Cornell received $350 Million from alumnus
Charles F. Feeney of Atlantic Philanthropies;
Cornell is providing $150 Million in revolving financing from its endowment
Actual or Expected Results- $7.5 billion of economic benefit is expected to be
generated in the short-term;
$23 billion expected over three decades;
$1.4 billion in tax revenues;
20,000 construction jobs;
8,000 permanent jobs are expected directly from the project;
600 spinoff companies are expected to be created totaling approximately
30,000 permanent jobs
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50. SYRACUSE (focused on a series of streets transformed into a “Corridor”)
University Involvement- The “Connective Corridor” will link three universities from
the university district to the downtown central business district;
Public Investment- Over $40 Million secured from state and federal sources
Private Investment- Over $200 Million
Actual or Expected Results- 643 jobs created or retained at 41 firms;
100 start-ups have raised more than $15 Million;
A Clean Tech Center has spawned over 24 clean energy start-ups;
An engineering firm moved 350 engineers along the Corridor;
75 new hotel jobs have been created;
75 new information technology jobs
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51. VI. WHY ARE WORLD TRADE CENTERS AND
INNOVATION DISTRICTS A FORMULA FOR
RAPID ECONOMIC DEVELOPMENT?
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52. While Innovation Districts are one of the fastest growing themes in
urban planning, global commerce IS the fastest growing sector of the
world economy
•International trade: mid 1960’s = 2.5% of US GDP, 2013 = 25% of US GDP
•World Trade Centers produce extraordinary economic impact
•World Trade Centers are notably urban
•World Trade Centers encourage international reach out
•World Trade Centers spawn collateral growth
•
•World Trade Centers are a living symbol of global commitment
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53. Is There A Role for Government?
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54. Yes. Government has to provide the:
tax incentive package, and
development incentive framework
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