A Commentary to Mark A. Nordenberg

In a previous blog posting, “An Open Letter to Subra Suresh”, I urged the new President of Carnegie Mellon University to assume a more prominent role in expanding CMU’s Oakland neighborhood into a global nexus of technology innovation.  Recently I received a packet from the University of Pittsburgh’s Chancellor, Mark A. Nordenberg, detailing the state of Pitt.  For full disclosure, I admit to being an active alumnus of and partial to the University of Pittsburgh.

That packet contained a spiffy brochure detailing Pitt’s achievements for the years under Nordenberg’s leadership.  One particular section that caught my attention was titled “Extending Our Commitment to Effective Partnering” where a description of Pitt’s partnership with Carnegie Mellon under its former President Jared Cohon was featured.  A quote from that section was “the combined academic strengths of Pitt and CMU are surpassed in only one other American neighborhood – Cambridge, Massachusetts, home to both Harvard University and the Massachusetts Institute of Technology – and that effective partnering between Pitt and CMU not only can elevate both universities but can make our region stronger.”

My comment to Chancellor Nordenberg and his yet to be determined successor is “well then, assuming that’s all true, get it done!”  One could argue that the phrase “surpassed in only ONE [my emphasis] neighborhood” is hyperbolic.  I might argue that if neighborhoods are measured by travel time proximity, then the San Francisco Bay area also surpasses Pittsburgh’s Oakland neighborhood with the University of California and Stanford University as cross-bay neighbors.  But that nitpick only strengthens my argument, one that I have expressed often in this blog, that Pittsburgh has the same resources as Boston and San Francisco/Silicon Valley.  I’ve taken CMU to task for not promoting more development with buildings targeting new technology users, as is so evident in the area surrounding MIT.  Pitt has done only somewhat better with their most recent growth out toward Shadyside at the University of Pittsburgh’s Cancer Institute.

I believe this is truly an example, an instance, and an opportunity to prove the old saw “build it and they will come”.  Time and again, across America in established high tech nodes such as Boston, Seattle and Austin, technology companies cite the availability of skilled employees and infrastructure as reasons for establishing new offices.  I have to believe Google’s expanding Pittsburgh presence is manifesting that thought.  Let’s make more of that in Oakland.

Pitt and CMU are already cranking out enough talented engineers and bio-scientists to fill a new office building annually with every graduating class.  Physical space needs to be built.  Infrastructure doesn’t appear without hard work from all stakeholders.  Someone needs to take the lead and spark real estate developers and government and economic development teams to make their moves.  I think Pitt’s Chancellor is in a unique position to provide that spark.

The Way Forward: An Alternate Path

In an excellent editorial piece for the January 4, 2014 edition of the “Pittsburgh Post-Gazette”, Harold D. Miller provided those concerned with Pittsburgh’s socio-economic development much to think about.  Working from US Census Bureau statistics, Miller presents a not flattering picture of the City and region.  One can argue the relevance in 2014 of using the most recently available Census figures from 2011 and citing a private foundation study that looked at cities in 2010.  Also, “snapshots” are just that – one time views that neglect trends which are the basis of most economic decisions in the private sector.  But I am not deprecating Miller’s analysis.  His viewpoint needs to be heard loud and clear by Pittsburgh’s thought leaders in all areas of business, education and the arts.

What I am concerned with is his reliance on government solutions to Pittsburgh’s recent history’s lack of entrepreneurial activity.  “Cut red tape” is one suggestion which on the surface we can all agree on.  However expecting governments to act on this in a timely manner is naïve.  What’s more, much of Pittsburgh’s “red tape” problem is related to the State of Pennsylvania.  No matter though, I’ve often asked the question “If government regulation is such a limiting issue for western Pennsylvania, why is it that hotbeds of high tech development are found in California, Massachusetts and New York?”  You think Pittsburgh startups have a lot of red tape?  Look at the municipal and State regulations in Palo Alto or Cambridge.

“Improve access to capital” is another prescription.  Absolutely and I’ve blogged on that topic previously.  But Miller suggests that government funded programs like Innovation Works need to be expanded.  Sure, entrepreneurs will take money from whatever source presents itself.  But if you look at regions such as metro Boston, the Silicon Valley, and Puget Sound you’ll see that establishing a self-perpetuating ecosystem of entrepreneurship, especially in high tech, is best begun and most sustainably with something akin to an economic “big bang” resulting from all the right pieces being in place.  You can’t force a vibrant, shiny, new economy on a region that’s not ready for it. I find Miller’s prescriptions have a subtext of forcing Pittsburgh into a new high tech era with a Big Brother, top-down approach relying on more government programs at the same time he calls for less government “red tape”.  At the same time Miller decries Pittsburgh’s lack of small business formation, a bottom up approach.

Perhaps it is merely a difference in attitude that separates me from Mr. Miller.   But I believe Pittsburgh has all the right pieces for an economic “big bang”: world-class universities [that overused term truly applies in this instance], a great urban lifestyle located in the midst of one of America’s best regions for outdoor leisure activities, and a social fabric the nurtures people and their dreams.  Am I looking at Pittsburgh through rose colored glasses?  You betcha!  But my viewpoint is also based on empirical evidence from the last few weeks: Google continues to expand one of only three engineering offices it has in the world, Computer Sciences Corporation chooses Pittsburgh for a 500 person office over 400 other locations they studied, and Kevin Sousa reached his $250,000 Kickstarter campaign goal for a restaurant and sustainable farm in Braddock.  Add to that the constant stream of funding announcements for high tech start ups, the addition of out of town businesses from Marcellus Shale oriented law firms to hip boutique hotels, and I see more than momentum. I see a region that started a generation behind Boston and two generations behind the Bay Area and Seattle and that is finally on the path that, 40 years from now, will be viewed as the natural path to even greater prosperity.

Movies, Reviews and Returns

This is a shout out with props for Dawn Keezer at the Pittsburgh Film Office on the occasion of a critically successful launch of the movie “Out of the Furnace”.  The movie has been, in the parlance of the industry, generally well received.  The reviews are good and Woody Harrelson’s performance is being mentioned as Oscar material, which should generate more press for it in 2014.

Reviews from the Pittsburgh media all mention that the setting presented is far from the current Pittsburgh of gleaming buildings, strong economics and shiny new people.  That’s true and since all of that is the “real world”, there are plenty of opportunities for the news media to report on that reality.  Hollywood’s world of entertainment make-believe serves Pittsburgh with a different purpose: to further the area’s economic strength.

There are fewer visionary risk-takers in Hollywood than popular culture might assume.  Entertainment industry executives, as in most fields, see a winner and happily follow behind on the safe path to profits.  My point here is basic and a strict numbers game: the more winners filmed in Pittsburgh, the more movies will come to be filmed in the city and the more money will be spent.  I think it should be clear by now that the work of the Pittsburgh Film Office with Dawn Keezer out in LA is producing those results.  Make no mistake about the fact that the State of Pennsylvania’s movie tax credits do play a starring role in getting movie producers and financiers to consider western Pennsylvania in the first place.  But that’s the way the game is played.  Play it well, provide the right physical resources, develop the talent pool of supporting industry professionals, and the returns will surpass anything hoped for.

Congrats to Ms. Keezer, Pittsburgh, Braddock and those involved in Out of the Furnace for helping provide another boost to Pittsburgh’s economic revival.

A Holiday Bagatelle [parenthetically speaking]

A press release announcing development of a small [less than 100 room] boutique hotel is cause for about as much news play as was actually generated by the recent announcement for the Ace Hotel in East Liberty.  This is not a 1,000 room convention center behemoth generating hundreds of jobs.  But it is an indication of Pittsburgh’s evolution to [returning to] a more important economic and social center.

Ace Hotels are usually [too often] referred to in the media as “hip”.  OK, my personal caveat here: once something/someone/someplace is called “hip” [or “cool”] it’s not [or no longer is].  I picked up that viewpoint from something Miles Davis is reported to have said.  And in my worldview, Miles is the definition of cool.  Also beware: declaring oneself hip or cool immediately negates any prospect of it.  Hip can only be bestowed as well as unspoken; it can never be assumed or declared.

Underlining the City’s inherent integrity, Pittsburgh never has and I suspect never will self-define as hip or cool.  And it should always be so.  But I’ve digressed.

So Pittsburgh is getting another gift of [currently defined] hip.  Pittsburgh is already hip in so many authentic ways.  A singular example is the continuance of the Carnegie International, the world’s first and longest running biennial art celebration.  Rock on Steel City!  But layers of hip must be added and the Ace Hotel is another one.  After all, something had to replace the ol’ Holiday House supper club on Route 51 in Pleasant Hills which in its heyday regularly hosted members of the Rat Pack [who along with Las Vegas’ demolished Desert Inn also defined hip].

There’s not much to comment on here other than boo-yah for the ‘Burgh and to note Ace’s other locations: London, Los Angeles, New York, Palm Springs [more Rat Pack references], Panama City [Panama, not Florida and if you’ve not been there or noticed, PC is becoming the Dubai of Central America], and the self-referentially hip [meaning no longer hip] Portland, OR.  What I believe will yield needed buzz for Pittsburgh is the list of media outlets that consistently cover Ace hotels.  Go to the Ace Hotel Web site and view the link to “Press”.  These are the media outlets that Pittsburgh wants to add to its portfolio of “buzz” and “mentions” [or as they say in Washington, DC, “gets”].  Pittsburgh wants to get press in “Asiana” Airlines magazine, “Elle Décor” [both European and US editions], “L’Officiel Voyage” [France] and “Blonde” [Germany]; style and lifestyle books all.

Finally, speaking of building layers, there’s a segue here to building economic layers [of success].  It’s rarely reported but known in certain quarters that Ace hotels are favored by the technorati [such as Google employees].  Any doubt that Google’s growing presence in East Liberty influenced Ace’s decision to look for an opportunity in Pittsburgh, targeting that particular neighborhood?  There should be no doubt.  But that’s how success gets built, layer upon hard won layer.  Rock on.

An Open Letter to Dr. Subra Suresh, CMU’s newly named President

Dr. Suresh:

 

Allow me to add an enthusiastic welcome to Carnegie Mellon and Pittsburgh on the eve of your formal installment as University President.  By accounts from both CMU press announcements and Pittsburgh media, the University and the City are honored that you’ve chosen to accept this position.  Your work at Brown University, the Massachusetts Institute of Technology, and the National Science Foundation speaks volumes for what you’ll accomplish in Pittsburgh.

CMU and Pittsburgh need more citizens of your experience as stakeholders in our urban ecosystem.  While I have little doubt that the University and its Board of Trustees are excited about your history of establishing programs and identifying requisite funding sources to realize those programs’ success, I am especially heartened by your work at MIT.  While at that school you were instrumental in establishing the Center for Computational Engineering.  Endeavors along those lines are specifically what Pittsburgh needs.

In a recent talk before the Pittsburgh Venture Capital Association, you highlighted how a relatively small initial investment from a governmental program such as the National Science Foundation’s Innovation Corps can be leveraged into very large investments from the venture capital community ultimately producing large numbers of start-ups and hopefully longer term enterprises.  Please bring more of that to Pittsburgh.  Lack of capital is often cited as the number one reason Pittsburgh conspicuously lags other cities that have not much more in the way of intellectual resources.  I applaud your introductory emphasis on capital investment, no matter its source.

Capital is the key here: both human and financial.  CMU already has the human capital.  Such an oversupply in fact that it exports most of it to other places willing to award more financially to CMU’s best thinkers.  Financial capital, money, has been the element lacking in this latest incarnation of Pittsburgh economic development.  The late 19^th and early 20^th centuries had Andrew Mellon and his cohorts.  Pittsburgh blossomed, not unlike California’s Bay Area has done in the late 20^th century.  I urge you to make financial capital acquisition a top, perhaps the number one, priority.

You’ve spent much time in Cambridge, Massachusetts at MIT.  Walking down Massachusetts Avenue, I noted that two of the largest and most impressive structures carried names of their benefactors: Eli and Edythe Broad on the Broad Institute, and David H. Koch of the eponymous Institute for Integrative Cancer Research.  Using these two examples it must be noted what impressive achievements their investment in MIT given that the Broads call Los Angeles home and David Koch is basically a Texan, among his many residences, though also an MIT alumnus.

The parallels between work being done at these two institutes and work happening at the University of Pittsburgh Cancer Institute is striking.  Both MIT affiliated institutes were founded within the last 10 years which is also the time frame for UPCI’s founding.  It’s acknowledged that UPCI also partners with many faculty members from CMU, but I believe CMU can add significant fund raising muscle to their efforts.  The hard truth is that biotechnology has yet to produce the financial rewards that computer technology has.  UPMC, Pitt’s Medical School, and UPCI all are loaded with talented, creative individuals and alumni.  But my suspicion is that currently, the alumni list at CMU has a larger number of individuals with access to financial capital; individuals who understand cutting-edge research and its requirements.  These are the people that you, Dr. Subresh, can personally tap for help in CMU’s and Pittsburgh’s technology efforts.

 

Allow me to insert a personal story that illustrates the excitement I’m hoping you will bring to CMU, the Oakland neighborhood, Pittsburgh and the tri-state region.  While competing at last year’s Head of the Charles Regatta, I was walking with friends past both the Broad and Koch Institutes.  The window displays in both buildings are impressive to say the least.  Watching the genome of a rabbit being mapped before your eyes, or the molecular structure of a cancer cell being explained in mind-blowing full color is an engaging experience for the passer-by.  To that end, I was walking with friends from Austin, TX who were so impressed with what they saw that they dropped the usual chauvinistic central Texas viewpoint to comment that “We have multi-colored guitar sculptures on our streets, and here they show some of the world’s scientific breakthroughs.  Wow!”  That summed it up, and that’s what I want for Pittsburgh.  You can help bring that to CMU and the City.

Getting It Done

This past week I was part of my rowing club’s trailer loading brigade in advance of the Head of the Hooch in Chattanooga, TN.  For those of you not familiar with rowing protocols and various aspects of the sport, trailers are the means of transporting rowing shells [boats] and as such must be loaded with care resulting in a long, cumbersome and tiresome assignment for the men and women of the participating crews.

 

This week’s trailer loading involved more boats than our club has ever loaded onto a single trailer so it was particularly difficult.  What started out at 6PM with over 50 participants helping,  slowly but inexorably dwindled in numbers as the sun set and the evening wore on.  By 9PM there were less than a dozen of us and many boats still to go.  All this was made more time consuming because the best light we had was from the landscape lighting at the Four Seasons Hotel next door.  At that point I knew this loading was going well toward midnight.

 

As is common at that late hour during any such “all nighter”, or close to it, we started the “ol’ gallows humor” going.  The stories told are those of one’s youth, college and high school mostly.  And a lot of “when I rowed in college….”.  Ya, ya, you rowed uphill, in the snow, both ways.  Right.  But what became apparent at 10:30PM, with only 8 people left to load and another couple hours ahead of us, was that here in a side alley in Austin, Texas three of us were from Pittsburgh.  And we were the loudest, should I say most enthusiastic, of the group and definitely kept things lively.

 

So there you have it.  When the job needs to get done, it takes Pittsburghers to do it.  No fuss, little complaining [OK, at least a little], pitch in, make it work, get it done.  Go home with a smile on your face and an attitude of at least it could have been worse.  Yep.  I hope and believe that sort of attitude can translate into more jobs and a rising standard of living for all Pittsburghers as the city and region move forward.

Blue Collar, Schmue Collar

A quick rant regarding recent comments in the media on Pittsburgh that's related to coverage of the Pirates. Allow me use Michael Keaton's blog for ESPN.com as the foremost example, although what I’m complaining about permeates the media when referring to Pittsburgh in any context. 

Keaton is a great fan of Pittsburgh and Pittsburgh’s sports franchises so I criticize with affection as I would to a family member.  But he almost never fails to make reference to Pittsburgh's "blue collar" attitudes, in this particular case those attitudes being a key to the Pirates’ success.  C’mon people!  How many times?  Years?  Decades?  does Pittsburgh have to labor under that old saw?  I mean really, it's the fallback explanation used by every second rate reporter in sports, business, or arts reporting.

And Mr. Keaton: blue collar work ethic, huh? Like NYC doesn't have a blue collar side? Houston? Dallas? London? Shanghai? I won’t get wonky on this one: a rant is supposed to make liberal use of grand assumptions and platitudes. But look at the most recent statistics that tell us Pittsburgh is less blue collar that most of its cohort cities in the US.

Great cities run on a diverse mix and that refers to job and economic mixes as well. And do only blue collar types work hard? I worked on Wall Street and I'll put up my 12 hour days, 8 days a week as a "slave of New York" next to any time card punching dude. Success is hard work anywhere, period. Stop the back-handed compliments from people who do not or no longer live in Pittsburgh.

Finally, if you’re using the term “blue collar” as a proxy of a close knit, well functioning community, then why don’t you just use that description?  Pittsburgh’s always been a great city, when it was dominated by heavy industry and even now when it’s largely a knowledge based economy.  Communicating the facts in an interesting way is difficult.  It would be great if more folks who love Pittsburgh did it.