DC Innovation Ecosystem Assessment PDF

FEDERAL
CITY
COUNCIL
NEEDS
ASSESSMENT
BUILDING A CASE FOR ESTABLISHING
AN INNOVATION DISTRICT IN D.C.
UPDATED: 1/5/2018
EXECUTIVE SUMMARY
Accenture partnered with Federal City Through a multi-lens analysis with qualitative and quantitative data, the team came up with 4 key findings:
Council to perform a needs 1. DC’s economic 2. The Innovation District 3. DC has a high 4. An Innovation District
assessment for Washington DC’s strengths are in the can help meet 13 of concentration of STEM must be purposefully
Innovation Ecosystem and build the cybersecurity and data the DC Mayor’s 43 talent, but low impact built to complement
case for an Innovation District (ID). science clusters, Strategic Initiatives in the innovation existing stakeholders
The needs assessment focused followed by social economy and support middle-
understanding: enterprise skills jobs
1. DC’s economic strengths
2. Benefits of an Innovation District
3. Gaps in DC’s Innovation
Ecosystem
4. Considerations for building an
inclusive Innovation District RECOMMENDATIONS
The team conducted stakeholder ADDRESSING INNOVATION ECOSYSTEM GAPS BUILDING AN INNOVATION DISTRICT
interviews, public and propriety data
analysis, and analysis of other 1. Establish academic anchor institution with industry 1. Involve stakeholders in ID focus discussion
Innovation Districts to develop or cluster-specific focus 2. Form a governing body that represents all
insights and recommendations. 2. Build cross sector partnerships to develop stakeholders
intentional collaborative opportunities 3. Define Innovation District North Star and principles
3. Promote D.C. Brand to attract talent and retain 4. Map agile path forward to test ID components
startups
5. Develop metrics to measure early success
Copyright © 2018 Accenture. All rights reserved. 2

FEDERAL CITY COUNCIL PARTNERED WITH
ACCENTURE TO ASSESS DC’S INNOVATION
ECOSYSTEM
Accenture completed an 8-week needs assessment to build the case for establishing an innovation district in
Washington DC.
Conduct 20+ Visit 3 Study 7 Other Perform Data

Stakeholder Innovation Innovation Analysis w/
Interviews Centers Ecosystems 25+ Data 0 Baseline DC’s Current State
Sources
1 Analyze DC’s Economic Strengths
2 Understand Benefits of an
Innovation District
3 Identify Gaps in DC’s Innovation

Ecosystem
4 Building an Inclusive Innovation

District
Develop Innovation District Strategic Plan

DC's Current State 0
ECONOMIC MEASURES HAVE WIDE

DISPARITY
DC Metro ranks favorable across most innovation But there is disparity across a variety of geographic
measures and sociodemographic measures
Innovation Index 2.0: DC Metro vs National Unemployment by DC Ward, 2011 to 2016
Overall Index
Human Capital & Knowledge Creation
Business Dynamics
Business Profile
Employment and Productivity
Economic Well-Being
0 50 100 150
DC Metro National
Copyright © 2018 Accenture. All rights reserved. Sources: Indiana Business Research Center; DC Department of Employment Statistics, as found in DC’s Economic Strategy 4
DC’s Economic Strengths 1
DC’S ECONOMIC STRENGTHS

Our approach to understanding DC’s economic strengths utilizes multiple data analysis lenses across
quantitative and qualitative measures. This led to key industry and cluster profiles to develop.
Industries
Clusters
PART 1: ANALYZE DATA THROUGH PART 2: PROFILE KEY INDUSTRIES &
MULTIPLE LENSES CLUSTERS
Clusters Industries
• Sector and Industry Employment Artificial Intelligence Biotech
• Occupation Cybersecurity Civic Tech
• Job Skill
Data Science Ed Tech
• Startup Activity
Social Enterprise Health Care
• Academic Assets
• R&D Expenditure Hospitality
• Stakeholder Interviews Retail
Note: Industry cluster are technologies/platforms that may be applied across industries

PART 1: ANALYZE DATA THROUGH MULTIPLE LENSES, EXAMPLE
ACADEMIC INSTITUTION COMPARISON
Johns Hopkins, Virginia Tech, University of Maryland, and University of Virginia consistently
appear towards the top of Engineering, Computer Science or Entrepreneur rankings
US News Ranking QS World University Ranking Pitch Book Ranking
Undergrad Undergrad Undergrad R&D

Undergrad Undergrad MBA Endowment
University Eng. Eng. (No Graduate Eng. Computer Expenditures
Eng. & Tech Entrepreneurs Entrepreneurs ($M)
(Doctorate) Doctorate) Science ($M)
Johns Hopkins University 14 N/A 19 51-100 149 - - 2,431 3,381
Virginia Tech 14 N/A 27 - 104 - - 521 1,040
U. of Maryland - College Park 25 N/A 24 47 177 28 539 493
U. of Virginia 34 N/A 39 151-200 311 29 24 397 8,621
George Washington 82 N/A 89 351-400 - - - 231 1,570
George Mason 110 N/A 104 - - - - 108 73
United States Naval Academy - 5 - - - - - 11 -
Georgetown - - - 351-400 - 38 - 183 1,480
MIT 1 N/A 1 1 1 3 7 946 14,800

Stanford 2 N/A 2 2 2 1 2 1,066 22,400
Carnegie Mellon 8 N/A 5 3 31 19 23 319 1,709
Northwestern 13 N/A 19 101-150 82 30 5 713 9,648
Columbia University 18 N/A 13 29 66 15 6 837 9,041
Note: Other DMV schools are not represented as they did not have a top 100 ranking in Undergraduate/Graduate Engineering or Computer Science field, nor a top 50 entrepreneur ranking
Copyright © 2018 Accenture. All rights reserved. Source: US News Ranking, QS World University Ranking, Pitch Book, National Science Foundation, University Websites 6
PART 2: PROFILE KEY INDUSTRIES & INDUSTRY CLUSTERS
INDUSTRY & AND INDUSTRY CLUSTER ANALYSIS
Innovations Districts that take a Industry Cluster-led approach can allow for additional
collaboration across sectors and increased partners
Comparative Impact on DC Measure Description

Clusters Est. Growth Inclusivity
Advantage Ecosystem Comparative Measured by number of job
Advantage postings, funding, research assets,
Artificial Intelligence Low High Low High Fortune 500 companies or ranking
of DC compared to other US cities
Cybersecurity1 High High Low High
Est. Growth Estimated growth of sub-industry in
1 market size or jobs
Data Science Med Med Low High
Social Enterprise2 High TBD TBD Med Inclusivity Determination of if the sub-industry
will incorporate inclusive job growth,
through type of jobs requirement
Comparative Impact on DC degrees listed in the field
Industry Est. Growth Inclusivity
Advantage Ecosystem Impact on DC Ability to have $1B exits that will fuel
Ecosystem addition investment in the local
Biotech Low Med Low High ecosystem
Civic Tech Med High TBD Med
Ed Tech Med Low Med High
Healthcare Low High High High
Hospitality High Low Med Med

1 Recommended for primary focus
Retail Low Med High High 2 Recommended for secondary focus
Copyright © 2018 Accenture. All rights reserved. Source: Accenture Analysis 7

INDUSTRY CLUSTER ANALYSIS
DATA SCIENCE & ANALYTICS (DSA)
New York is D.C.’s biggest competitor by job But San Francisco is D.C.’s biggest competitor
postings… nationally by location quotient
DSA Job Postings by MSA, 2016 DSA Location Quotients by MSA

DSA Posting NY SF LA CHI DC
100 Data-Driven Decision
Thousands
1.7 3.4 1.3 1.6 1.7

Makers
90
80 Functional Analysts 1.7 2.5 1.1 1.6 2.4
70
Data Systems
60 1.4 2.6 1.2 1.4 3.1
Developers
Job Postings
50
Data Analysts 1.7 3.5 1.2 1.7 2.1
40
30 Data Scientists &
2.4 7.2 1.1 1.3 3.3
Advanced Analysts
20 1ST
10 Analytics Managers 2.9 4.0 1.0 1.7 2.1
2ND
0
New York San Francisco Los Angeles Chicago Washington
DC
11.7% 50% 39%
DSA Occupation Categories
By 2020… Increase in Projected increase
CAGR for worldwide
revenues for Big demand for data in demand for Data
Data-Driven Decision Makers Functional Analysts
Data and Business analytics Scientists and Data
Data Systems Developers Data Analysts
Analytics nationally Engineers
Data Scientists & Advanced Analysts Analytics Managers Occupations
Copyright © 2018 Accenture. All rights reserved. Source: “Quant Crunch: How the demand for Data Science skills is disrupting the job market”: IBM, Burning Glass, BHEF, 2017 8
CYBERSECURITY
There are double the amount of cybersecurity job 33% of US based Private cybersecurity Company
postings in DC Metro than any other U.S. metro area funding is from California, and only 13% is from MD/VA
combined
Cybersecurity Job Postings and Location Quotient (LQ)
Startup Amount Funded, by Company Location
DC Metro 44,263 LQ 6.3 CA
NYC/NJ 21,972 LQ 1.1
Chicagoland 12,002 LQ 1.2
Note: National location quotient equals 1.0; an LQ of 1.2 indicates that demand is 20% more concentrated than
nationally. (Very Low: 0-0.67, Low: 0.67-0.82, Average: 0.83-1.2, High: 1.2-1.5,Very High: >1,5)
Most of those job postings are located in Virginia, not

D.C.
Job Postings, by State (2013 – 2017 YTD)

VA
35
MD
Thousands
30
25 High Growth for Cybersecurity Market Size
Job Postings
Virginia
20
D.C.
15 The cybersecurity market is expected to grow from USD 137.9
Maryland
10 Bn in 2017 to USD 232.0 Bn by 2022, at a Compound Annual
West Virginia
5 Growth Rate (CAGR) of 11.0%
0
Y13 Y14 Y15 Y16 Y17
Copyright © 2018 Accenture. All rights reserved. Source: Burning Glass - Labor Insights; "Cybersecurity Market” report by Solution 9
SOCIAL ENTERPRISE
D.C. is ranked 3rd strongest social enterprise
… with a strong and diverse social impact culture
ecosystem in the U.S.
Social Enterprise Ecosystem Scores SOCIAL ENTERPRISE: Organizations that address a basic unmet
Boston San Francisco D.C. New York Chicago need or solve a social problem through a market-driven approach.
Private Investment
of DC startups self-identifying as a
Social Enterprise Law Charitable Giving
69% “double-bottom line” business
56,000 social enterprise jobs in the district
Entrepreneurial Activity Public Spending
41% startups operate in the “impact space”
incubators/accelerators dedicated to social
Small Business
6 enterprise
Level of Education A Deeper Dive: Social Enterprise Ecosystems in the U.S., SocEntCity.org
Friendliness
Social Enterprise is still in its nascent stages in the US
but key indicators signal growth
Social Media Volume Civic Engagement
33% 18% 11%

increase in sustainable CAGR from 2013 – Increase in impact
Diversity University Presence
investing growth in US 2015 for global impact investments by
since 2014 Assets Under Millennial high-net-worth
Transportation Affordability
Management (AUM) investors (2015 – 2017)
Community Resources US Sustainable, Responsible and Impact Impact Investing Trends, GIIN Annual U.S. Trust Insights on Wealth and Worth
Investing Trends 201611th, US SIF Survey, 2016 Annual Survey, 2017
Copyright © 2018 Accenture. All rights reserved. Source: GIIN Survey 10

Benefits of an Innovation District 2
CASE STUDIES
BENEFITS OF INNOVATION DISTRICTS
Increase in Jobs / Growth New Housing & Housing Affordability
PHILADELPHIA BARCELONA
Jobs increased by 20% between 2004 and 2014, with the West Philadelphia Created 4,000 new housing units that are at least 45% rented.
Skills Initiative having a job placement rate of 90%. Due to development, since
2000 employment within the tech sector has grown within University City by BOSTON
77%. The city has approved plans for 12,000 new residential units in the District (1,800
of those will be micro/innovation units that are affordable living complexes).
Increase in Accessibility Infrastructural Improvement

ST . LOUIS SAN DIEGO
Cortex Innovation District instituted 8 inclusion initiatives is currently the most Urban parks and playgrounds have entered the tech hub as the planned innovation
diverse neighborhood in St. Louis by all measures including age, ethnicity, and district will include a host of city amenities.
educational attainment.
PITTSBURGH
BARCELONA As part of the Eco Innovation District, the city is expanding the Transportation
Service jobs were made more accessible to local and regional residents along Management Association to provide additional bus routes, develop bike paths, and
with school-to-work programs to train a more inclusive talent pipeline. improve the walkability of Pittsburgh’s Uptown region.
Positive Wage Impact Stronger Educational Attainment

PITTSBURGH ST. LOUIS
Pittsburgh’s overall Clean Tech sector has 17-21,000 jobs with compensation St. Louis Innovation District developed a magnet and urban high school focusing
rates that are 4.8% higher than the average wage. 47% of these jobs do not on their burgeoning industries (medicine and biosciences) to introduce and train
require more than a high school degree. underrepresented youth in the region.
Source: Intersector Project, Brookings Institute, Eco Innovation District, Smart Cities Dive, Cortex Innovation Community
DC ECONOMIC STRATEGY
INNOVATION DISTRICT Initiatives from DC Economic Strategy
DIRECT BENEFITS 3. Coordinate business retention, expansion and attraction efforts
through a data-driven, public-private committee
8. Convene tech CEOs and thought leaders
13. Engage West Coast investors and entrepreneurs
16. Secure major conventions on topics that leverage DC’s
High
8 21 16 3 comparative advantages
20. Promote and advance health innovation
21. Connect entrepreneurs, inventors from federal labs, and
41 support providers to advance research commercialization
20 13 38 42 22. Expand on-ramps into technology career pathways through
coordinated internship
35. Create a resilience roadmap for DC
ID IMPACT
36. Engage with the Greater Washington Partnership and other

35 39 regional bodies
38. Make DC the global center of mobility technology and policy
36 22 39. Strengthen the social enterprise and impact economy
ecosystem
41. Become a global leader of smart city innovation through the
Council of Global City CIOs, Smart Gigabit Communities and the
Global Team Challenge (NIST)
42. Make DC the nation's first "Lighthouse City" by pioneering
Internet of Things and smart cities solutions
Key
Low
Business Environment
Funding
In Progress FY17-18 FY17-20 DC Identity & Promotion
Talent
Copyright © 2018 Accenture. All rights reserved. TIMELINE Space, Housing & Supports
12
Gaps in DC’s Innovation Ecosystem 3
FOUR CORE FACTORS TO INNOVATION

ECOSYSTEM
Innovation is driven by talent, bringing that talent together and providing the right resources to create an impact
IE = T X C X R X I
INNOVATION TALENT COLLISIONS RESOURCES IMPACT PER
ECOSYSTEM PER TALENT PER COLLISION RESOURCE
• Productivity outputs • Skillset STEM skills, • Density of talent • Capital VC funding and • Attracting startups and
showing growth in start- particular in tech • Community of startups angel investment entrepreneurs
ups, patents filed, and • Mindset interest in • Corporate • Accelerators, • Retaining successful
industry working in innovation collaboration sharing incubators, and other companies
• Economic outputs • Diversity of problem sets and more services • Marketing DC’s
including higher earning opportunities to grow • Academic • Mentorship startup and innovation
rates and increases in the collaboration via tech industry experience • Local government
standard of living transfer • Industry R&D spend policies and regulations
• Well-being outputs to foster innovation
including net migration,
high speed internet
connections, and
walkable urbanism
X = factors are amplified through alignment
GAP ANALYSIS
CHICKEN OR THE EGG? GAPS, ROOT CAUSES, AND
POTENTIAL SOLUTIONS
GAPS ROOT CAUSES POTENTIAL SOLUTIONS
1. Attract commercial anchor aligned with innovation district
T
Strong talent pool Low innovation talent focus
T I C R 2. Establish and promote DC Brand to attract and retain talent
but not enough retention
through focus of innovation district and local art and culture
builders
3. Create incentives for collaboration via government contracts
Lack of support for (i.e. additional points for joint proposals)
cross-sector talent 4. Build out geographic location to create density of
C
Hyper competition T C I
and knowledge stakeholders across sectors
across sectors and 5. Establish programs and collaborative efforts between
exchange
between stakeholders across sectors to activate innovation district
stakeholders
Weak entrepreneurial 6. Develop strong academic anchor institution aligned with
culture in universities T I innovation district focus
R
Limited resources 7. Expand existing pool of funding sources by recruiting
for pre-revenue Risk averse funding C R I incubators, accelerators and businesses aligned with
and small/medium sources innovation district focus
businesses 8. Shift culture of risk averse DC investor
R I 9. Establish intentional mentorship programs to incentivize

Lack of mentors collaboration and knowledge sharing
I
Stunted innovation
ecosystem R I 10. Institute tax and policy incentives to offset costs for pre-
Unfriendly business revenue and small-medium businesses
feedback loop 11. Institute tax and policy incentives to encourage businesses
environment
to relocate and grow in D.C.
Innovation District Solutions
POTENTIAL SOLUTIONS
IMPLEMENTATION CONSIDERATIONS
POTENTIAL SOLUTIONS
Difficult 8 2 1 1. Attract commercial anchor aligned with innovation district
focus
2. Establish and promote DC Brand to attract and retain talent
6 4 through focus of innovation district and local art and culture
3 7 3. Create incentives for collaboration via government contracts
(i.e. additional points for joint proposals)
Ease of Implementation
4. Develop geographic location to create density of

stakeholders across sectors
5. Establish programs and collaborative efforts between
stakeholders across sectors to activate innovation district
6. Develop strong academic anchor institution aligned with
innovation district focus
7. Expand existing pool of funding sources by recruiting
5 incubators, accelerators and businesses aligned with
11 innovation district focus
8. Shift culture of risk averse DC investor
9. Establish intentional mentorship programs to incentivize
collaboration and knowledge sharing
9 10 10. Institute tax and policy incentives to offset costs for pre-
revenue and small-medium businesses
11. Institute tax and policy incentives to encourage businesses
Easy
Low Impact High
Innovation District Solutions 15

Copyright © 2018 Accenture. All rights reserved.
TALENT
STRONG TALENT POOL, BUT NOT ENOUGH
BUILDERS
STRENGTHS OPPORTUNITIES
DC has a high rate of undergraduate and Increase understanding of innovation to equip students with the skills to match
advanced degrees market demand
57% 25% 41% Tech-related skills out of top 10 most

abundant skills
Deficit between Tech graduates (2011-2015) and
Tech jobs added to market (2012 – 2016)
of population has a of population has of higher education
Bachelor’s degree or post graduate degrees are STEM +80,500 San Francisco
higher degrees degrees
2 2 2
US: 31.3% US: 12% US: 31% DC BOS NY
+22,200 Seattle
+20,600 Atlanta,
8 8 8 +14,700 Houston
+13,500 New York
Brain Drain or Gain?

10 +7,100 Portland
3 +5,500 Austin
Tech Degree Growth LA SF +4,300 Chicago
Market (MSA) Completions (2011- 7 +3,500 Denver
(2015) 2015)
+2,600 Richmond
Tech-Related Non-Tech
New York City 14,419 38% +2,000 San Diego
-2,000 Columbus
-2,700 St. Louis
Washington, D.C. 13,058 41%
-3,000 Phoenix
-3,300 Philadelphia
Los Angeles 10,632 27% “The answer to all questions is -5,700 Rochester
talent” -9,700 Pittsburgh
Chicago 7,866 16% –DC Serial Entrepreneur -12,900 Los Angeles
-16,400 Washington,
Boston 7,507 41% D.C. -19,600 Boston
Copyright © 2018 Accenture. All rights reserved. Source: CBRE; LinkedIn 16

Building an Innovation District 4
CASE STUDY
CORNELL TECH MODEL COMPARISON
Cornell Tech is a new model for graduate education that is committed to developing pioneering leaders and technologies for the
digital age. Key incentives and drivers were analyzed to determine the relevance of the Cornell Tech Model as a case study for the
development of a DC Innovation District.
28 universities bid on Roosevelt Island for But Cornell Tech won due to the alignment of 5
its distinct incentives… key drivers
Potential D.C. Potential D.C.
Incentive Cornell Tech Driver Cornell Tech
Equivalent Equivalent
Cornell-Technion University of Maryland
Free Prime University
Roosevelt Island Amazon proposal sites Consortium University of Virginia
Real Estate Partnership Partnership Virginia Tech
Connection to Mayor Bloomberg Early Private Verizon Cisco, Facebook, IBM

philanthropic and Bloomberg TBD Sector Partnership Google and Lyft
funding Philanthropies
Investment in Bloomberg Center
Verizon Education Clark Enterprises
Mission-driven culture Developing Center JBG Smith
Proximity to NYC/Brooklyn (Federal agencies, Physical Assets The Bridge
unique startup (DUMBO regulated industries,
Public and Private Bloomberg
culture neighborhood) nonprofits, international
Philanthropies
community) Philanthropic TBD
$300 million in
Funding philanthropic donations
Access to Support at all levels of
Mayor Bowser
Business and U.S. capital city and Political Buy-In Secretary Skorton
recyclable Finance capital international hub government (borough,
talent pool and Influence Maryland Governor
city, state, and federal)
Virginia Governor
NEXT STEPS & RECOMMENDATIONS
BUILDING AN INNOVATION DISTRICT (ID)
MANAGE EXPERIENCE for value
INFORM FORMULATE FREEFORM TRANSFORM OUTPERFORM

DISCOVER DESCRIBE CO-CREATE SCALE SUSTAIN
with insight with impact with agility with excellence with improvement
DISCOVER DC’S ECONOMIC STRENGTHS DESCRIBE STRATEGY TO BUILD AN ID

Recommendation Considerations Recommendation Considerations
Don’t be too • A cluster-led approach will allow for a more agile ID Form governing • A diverse inclusive governing body (across age,
1 prescriptive in • Cybersecurity and data science have strong
1 body that race, gender, startups, and perspectives) will help
comparative advantages and estimated growth build shared value
industry vs cluster represents all
focus • Personas will vary by industry and cluster stakeholders
Establish diverse • Partnerships will depend on ID’s focus area Define North Star • Establish vision for the ID, including principles for
2 partners across • Long-term diversity in partnerships will increase
2 for ID diversity, flexibility, mobility, and sociability
academic, gov’t, innovation potential • Articulate outcomes and desired experiences for
• ID is one vehicle to enable DC’s economic key stakeholders
corporations, and
strategies
entrepreneurs
Map agile path • Incorporate lean methodologies into testing ID
3 forward to test ID concepts
components • Instill culture of failing-fast
Develop metrics to • Incorporate leading and lagging indictors to create

4 understand early and measure value at each step
success
DC INNOVATION ECOSYSTEM
STAKEHOLDER INTERVIEWS
Assessment Steering Committee Key Stakeholder Interviews
• Mayor Tony Williams, CEO, Federal City Council Organization Stakeholder Title
• Bob Flanagan, President, Clark Enterprises Smithsonian Institution Secretary David Skorton Secretary of the Smithsonian
• David Lawson, Vice Chairman, JP Morgan
University of Maryland Dean Darryll Pines Dean of A. James Clark School of
• Steve Orr, Managing Partner & Co-Founder, Orr
Engineering
Associates Inc.
University of Virginia Dean Craig Benson Dean of University of Virginia School
• Rob Stewart, Co-Owner and Managing Partner,
of Engineering
JBG Smith
Washington D.C. Economic Kevin Morgan Director, Tech Sector Attraction &
Partnership Retention
Office of the Deputy Mayor Sharon Carney Economic Strategy Director
for Planning & Economic
Development
Upcoming Meetings…
Organization Stakeholder Date
DC Entrepreneurs
DC Mayor’s Office Mayor Muriel 2018 Q1
Bowser
Virginia Tech School of Dean Julia TBD

Engineering Ross

INDUSTRY AND
CLUSTER
PROFILES

ARTIFICIAL INTELLIGENCE (AI)
California has almost 50% of all amount invested in AI private The AI Field at the beginning of a S-curve for
companies, and 5 top AI Grad Schools market growth
% of Amount Invested Projected Revenues from the AI market worldwide
California 48.6%
Other 12.5%
New York 12.2%
Massachusetts 9.0%
Washington 3.6%
Top 18 AI Grad Schools (2015)
Texas 3.4%
Illinois 2.7%
Pennsylvania 2.5%
Colorado 2.4%
Virginia 1.9% UMD (1)
Maryland 1.0%
Washington DC 0.3%
Copyright © 2018 Accenture. All rights reserved. Source: CB Insights; 2015 US News & World Report Ranking; Statista.com 21
CYBERSECURITY
There are double the amount of cybersecurity job 33% of US based Private cybersecurity Company
postings in DC Metro than any other U.S. metro area funding is from California, and only 13% is from MD/VA
combined
Cybersecurity Job Postings and Location Quotient (LQ)
Startup Amount Funded, by Company Location
DC Metro 44,263 LQ 6.3
NYC/NJ 21,972 LQ 1.1

CA
Chicagoland 12,002 LQ 1.2
Note: National location quotient equals 1.0; an LQ of 1.2 indicates that demand is 20% more concentrated than
nationally. (Very Low: 0-0.67, Low: 0.67-0.82, Average: 0.83-1.2, High: 1.2-1.5,Very High: >1,5)
Most of those job postings are located in Virginia, not

D.C.
Job Postings, by State (2013 – 2017 YTD)

MD VA
35
Thousands
30
25 High Growth for Cybersecurity Market Size
Job Postings
Virginia
20
D.C.
15 The cybersecurity market is expected to grow from USD 137.9
Maryland
10 Bn in 2017 to USD 232.0 Bn by 2022, at a Compound Annual
West Virginia
5 Growth Rate (CAGR) of 11.0%
0
Y13 Y14 Y15 Y16 Y17
Copyright © 2018 Accenture. All rights reserved. Source: Burning Glass - Labor Insights; "Cybersecurity Market” report by Solution 22

Thousands
1.7 3.4 1.3 1.6 1.7

Makers
90
70
Data Systems
60 1.4 2.6 1.2 1.4 3.1
Developers
Job Postings
50
Data Analysts 1.7 3.5 1.2 1.7 2.1
40
2.4 7.2 1.1 1.3 3.3
Advanced Analysts
20 1ST
2ND
0
DC
DSA Occupations
By 2020… 11.7% 50% 39%
Data-Driven Decision Makers Functional Analysts CAGR for worldwide Increase in Projected increase
Data Systems Developers Data Analysts revenues for Big demand for data in demand for Data
Data Scientists & Advanced Analysts Analytics Managers
SOCIAL ENTERPRISE
D.C. is ranked 3rd strongest social enterprise
… with a strong and diverse social impact culture
ecosystem in the U.S.
Social Enterprise Ecosystem Scores SOCIAL ENTERPRISE: Organizations that address a basic unmet
Boston San Francisco D.C. New York Chicago need or solve a social problem through a market-driven approach.
Private Investment
of DC startups self-identifying as a
Social Enterprise Law Charitable Giving
69% “double-bottom line” business
56,000 social enterprise jobs in the district
Entrepreneurial Activity Public Spending
41% startups operate in the “impact space”
incubators/accelerators dedicated to social
Small Business
6 enterprise
Level of Education A Deeper Dive: Social Enterprise Ecosystems in the U.S., SocEntCity.org
Friendliness
Social Enterprise is still in its nascent stages in the US
but key indicators signal growth
Social Media Volume Civic Engagement
33% 18% 11%

increase in sustainable CAGR from 2013 – Increase in impact
Diversity University Presence
investing growth in US 2015 for global impact investments by
since 2014 Assets Under Millennial high-net-worth
Transportation Affordability
Management (AUM) investors (2015 – 2017)
Community Resources US Sustainable, Responsible and Impact Impact Investing Trends, GIIN Annual U.S. Trust Insights on Wealth and Worth
Investing Trends 201611th, US SIF Survey, 2016 Annual Survey, 2017
Copyright © 2018 Accenture. All rights reserved. Source: GIIN Survey 24

INDUSTRY ANALYSIS
BIOTECH
DC ranks 5th as a U.S. Biotech cluster in the US, and has tough competition from Boston, NY/NJ, and SF Bay Area…
Biotech Metro Ranking Index of Biotech Industry Measures (Boston = 1.0) # of Top 10 US
Metro
Biotech Firms
1 Boston / Cambridge NIH Funding Boston 2
1.60 Note: DC Metro does include
2 SF Bay Area
1.40
NIH Funding for Johns Hopkins SF 2
3 NY/NJ Metro 1.20 NY/NJ 2
4 San Diego 1.00 LA 1

0.80 New Haven 1
5 DC Metro
0.60
VC Funding Patents Pittsburgh 1
6 Philadelphia 0.40 SF Bay
Wilmington 1
0.20
0.00 …but the market is continuing to

expand in the next 7 years
$727 Bn
Boston
SF Bay 7.4% CAGR
$410 Bn
NY/NJ
Growth by
DC Metro
NY/NJ
2025
San Diego
Jobs Lab Space
Philadelphia
Source: Genetic Engineering & Biotechnology News, 2017 Annual Biopharma report; Top 25 Biotech companies of 2017; Grand
Copyright © 2018 Accenture. All rights reserved. View Research 25
INDUSTRY ANALYSIS
CIVIC TECH / SMART CITIES
DC ranks high among US cities on Smart Cities DC ranks highest among US cities in Car Sharing
Measure Services and Digitalization of Government
in EasyPark Groups 2017 Global Cities

24th Ranking (4th in the US) Expert Perception
Smart Parking
10 Car Sharing Services
9
Living Standard Traffic
6th
8
in IESE’s 2017 Cities in Motion Index 7
Smartphone Penetration 6 Public Transportation
5
4
3
Wi-Fi Hotspots Clean Energy
2
1
Global smart cities market is projected to by 23%

0
Internet Speed Smart Building
CAGR thru 2022
$1,202 Bn 4G LTE Waste Disposal
23% CAGR Growth Business Ecosystem Environment Protection
by 2022 Education Citizen Participation

$425 Bn Urban Planning Digitalization of Government
Boston Chicago Los Angeles New York

Philadelphia San Francisco Washington, DC
Copyright © 2018 Accenture. All rights reserved. Source: Smart Cities Market, by Markets and Markets; EasyPark Group Annual Report. 26
INDUSTRY ANALYSIS
ED TECH
The EdTech industry is projected to grow But D.C. is not a leader in the EdTech industry
significantly… nationally
% of Deals from 2013 to 2017, by State

17% 2.7bn 28% CA 28%
market growth per expected students projected CAGR for NY 14%

annum to $252bn for worldwide by education apps market in MA 10%
global EdTech by 2020 2035 the US from 2016-2020
DMV 7%
PA 4%
And D.C. has produced numerous notable Edtech
IL 4%
companies…
CO 4%
TX 3%
WA 3%
Other 31%
Copyright © 2018 Accenture. All rights reserved. Sources: Businesswire, CB Insights, Hack Education, DC Inno 27
INDUSTRY ANALYSIS
HEALTHCARE
DMV has a strong federal government and academic R&D DMV has two hospitals in Health Finance’s top 100
activity, but low startup and corporate presence Hospitals. CA, MA, PA, and IL are over represented.
Health Finances Top 100 Hospitals, by State
DMV Top State

Measure DMV Performance
Performers Competitors
• JHU (#3)
Medical School 3 schools in top 50 • UVA (#27)
MA, CA
(Research)
• UMD (#40)
• JHU (#3)
Academic R&D 1 school in top 25 for life
sciences R&D expenditures
CA, PA, NC
Performers
• JHU (#1)
Public Health 1 school in top 10 for graduate
programs in public health
MA, NC
Grad School
• DHS / NIH
Government 1st ingovernment
R&D performed by
departments • Veterans
None
R&D Performer
Affairs
Digital Health is expected to growth rapidly in the
Fortune 500 0 of 28 healthcare companies • N/A NJ, CA, IL next 5 years
Companies in F500
Digital Health 3% of all total digital health • MD: 2% CA In 2016, the global digital health market was at $179.6 billion.
Startup Activity Funding • VA: 1% Growth in this market is anticipated to rise at a CAGR of 13.4%
• DC: <1%
between 2017 and 2025, reaching $536.6 billion by the end of
2025
Note: Financing identified from December 2016 to November 2017

Copyright © 2018 Accenture. All rights reserved. Source: Health Finance; CB Insights; Transparency Market Research 28
INDUSTRY ANALYSIS
HOSPITALITY
D.C. ranks fourth in the nation for number of hotel DMV has 2 of 4 Fortune 500 companies in the hotel
rooms, and has industry-- faces competition from Internet Retailers
Number of Hotel Rooms

Orlando 123 Fortune 500 Companies in DMV Adjacent Online
New York 116 Competitors
Chicago 114
Washington, D.C. 111
Los Angeles 100
Atlanta 96
Houston 86
Dallas 83
Phoenix 64
San Diego 61
Thousand
Washington, D.C. Visitor Research: https://washington.org/press/DC-information/washington-dc-visitor-research
In 2016, Hospitality provided 75,000 jobs in the District, DC is expected to experience moderate growth in
9.5% of all 787,000 jobs in the District the next 3 to 10 years
Hospitality sector jobs by industry
11% 20%
Accommodation 6.0% 2.3%
Restaurants Projected growth in Projected annual
Arts and
restaurant and food growth for DC metro
Entertainment jobs by 2027 area hotels for 2016 -
69% 2019
Copyright © 2018 Accenture. All rights reserved. Source: Washington D.C. Development Report, 2017/2018, WDCEP and CBRE 29
INDUSTRY ANALYSIS
RETAIL
D.C. ranks 10th in the U.S. in number of retail job
1 in 10 jobs in D.C. is in the retail industry…
postings
Retail Job Postings by MSA (Dec 16 – Dec 17) 6,757 Retail Establishments 56%
67,813 Direct Retail Employment of jobs within retail
New York 117
organizations are
93,420 Total Jobs Supported expected to have a
Chicago 78
37% High School Diploma or less digital component
Los Angeles 71 by 2019
43% Some College or an Associate’s
Seattle 58
20% Bachelor's or Higher
Dallas 54
Philadelphia 51
And national trends signal slight growth
Atlanta 50
San Francisco 48
The US retail industry will report total sales of slightly more than $3.2
Detroit 48 trillion in 2020, up from $3.0 trillion in 2016, at a Compound Annual
Growth Rate (CAGR) of 1.8%.
Washington 45
0 20 40 60 80 100 120 140

Thousands
Number of Job Postings
Source: Accenture Vision for Retail 2017; National Retail Federation D.C. Report; Burning Glass; Euromonitor International /
Copyright © 2018 Accenture. All rights reserved. Gung Global Retail and Technology 30
INCLUSIVITY MEASURE
NUMBER OF JOB POSTINGS REQUIRING MIDDLE
SKILLS
Middle-Skills Occupations: jobs those that require more education and training than a high school diploma but less
than a four-year college degree
Breakdown of top middle skills job postings by industry/industry cluster Findings and Considerations
Industry / Industry Cluster

Number of Middle Skills Job Postings • Healthcare, Retail, and Cybersecurity provide most
from Top Occupations middle skills jobs
Healthcare 37,243
• Hospitality provides surprisingly low number of
Retail 30,024 middle skills jobs. This may be due to overall
demand for jobs in hospitality being below other
Cybersecurity 13,958 industries. This also excludes postings provided
outside of Burning Glass data set
Data Science 9,588
• Artificial Intelligence careers have the least number
Biotech 4,637
of middle skills jobs
Hospitality 4,368
Artificial Intelligence 1,997
Social Enterprise N/A
Civic Tech N/A

Note: Table based on available data. Social Enterprise and Civic Tech marked “N/A” as job postings do not
directly align with industries. Top Occupations defined as occupations with over 1000 job postings from January
2017 to December 2017
Copyright © 2018 Accenture. All rights reserved. Source: Burning Glass 31

IMPACT ON INNOVATION ECOSYSTEM
BILLION DOLLAR STARTUPS HAVE THE ABILITY
TO FEED A HEALTHY INNOVATION ECOSYSTEM
IoT and eCommerce dominate unicorn startups
Internet Industry # of Startups

Number of Global Billion Dollar Valuation Startups Internet Software & Services 78
eCommerce 39
0 20 40 60 80 100 120 140
Internet Total 117
Internet 117
Mobile & Telecommunications 40
Software Industry # of Startups
Software (non-internet/mobile) 16
Scientific, Engineering Software 6
Healthcare 13
Security Software 3
Computer Hardware & Services 9
Business Intelligence, Analytics & Performance Mgmt 3
Consumer Products & Services 5
Healthcare Software 2
Industrial 4
Customer Relationship Management Software 1
Automotive & Transportation 4
Gaming 1
Financial 4
Software Total 16
Business Products & Services 3
Food & Beverages 2 Healthcare Industry # of Startups
Energy & Utilities 2 Biotechnology 5
Media (Traditional) 1 Medical Devices & Equipment 5
Electronics 1 Disease Diagnosis 1
Environmental Services & Equipment 1 Pharmaceuticals / Drugs 1
Medical Facilities & Services 1
Note: Mobile & Telecom do not map to any profiled industry or
industry clusters Healthcare Total 13
Copyright © 2018 Accenture. All rights reserved. Source: CB Insights 32
INNOVATION
ECOSYSTEM
GAPS

TALENT
BUILDERS
DC has a high rate of undergraduate and Increase understanding of innovation to equip students with the skills to match
advanced degrees market demand

abundant skills
Bachelor’s degree or post graduate degrees are STEM +80,500 San Francisco
2 2 2
US: 31.3% US: 12% US: 31% DC BOS NY
+22,200 Seattle
+20,600 Atlanta,
8 8 8 +14,700 Houston
+13,500 New York

10 +7,100 Portland
3 +5,500 Austin
Tech Degree Growth LA SF +4,300 Chicago
Market (MSA) Completions (2011- 7 +3,500 Denver
(2015) 2015)
+2,600 Richmond
New York City 14,419 38% +2,000 San Diego
-2,000 Columbus
-2,700 St. Louis
-3,000 Phoenix
-3,300 Philadelphia
Los Angeles 10,632 27% “The answer to all questions is -5,700 Rochester
talent” -9,700 Pittsburgh
Chicago 7,866 16% –DC Serial Entrepreneur -12,900 Los Angeles
-16,400 Washington,
Boston 7,507 41% D.C. -19,600 Boston
Copyright © 2018 Accenture. All rights reserved. Source: CBRE; LinkedIn 34

COLLISIONS
HYPER COMPETITION ACROSS SECTORS AND
BETWEEN STAKEHOLDERS
High concentration of Innovation Ecosystem Develop intentional space and create incentives for cross-sector collaboration
Stakeholders
Innovation Cultivator Type Landscape, in DC Metro
"We're up to the challenge
24 universities 6
of making government
more innovative but we've
120+ co-working spaces never been asked. We
don't know who to talk to.
We’re too small to have a
150+ tech companies 1 team dedicated to winning
government contracts. "
35 of Inc 500’s Fastest Growing
- DC Medium Size Business
Companies Proof of Concept Center Tech Transfer
Home of federal government and Gaps in collaborative efforts

agencies Government & Corporations & Startups &
183 Chanceries of foreign Private Sector Startups Universities
governments • Public Private • Incentives for joint • Training and instruction
Partnerships proposals for opportunities
Global hub for nonprofits, • Equitable government contracts • Curriculum
philanthropies, and NGOs (IMF, government funding • Fluidity of talent development and
• Fluidity of talent exchange alignment
World Bank, IDB, etc.) exchange
Copyright © 2018 Accenture. All rights reserved. Source: Fosterly, DMPED.dc.gov 35
RESOURCES
LIMITED RESOURCES FOR PRE-REVENUE AND
SMALL/MEDIUM BUSINESSES
Access to capital for companies with solid Increase access to local resources for pre-revenue and small to medium
business cases businesses
Resources Available in DC Metro Investor Location by Funding Round for DC Metro Companies
Percent of Deals Virginia
8 17 DMV Funding
43% Seed
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% DC
Maryland
Incubators Accelerators California
29% Series A New York
International
28% Series B
Massachusett
Series C s
28% Pennsylvania
Total R&D Spend by DMV Performers
Federal FFRDCs Non-Profit
“People will move across There aren’t enough mentors in

the border to Maryland DC who have done this before
because it costs less to and aren’t just preaching what
52% 14% 14% incorporate a company.” they read in a book.
– DC Entrepreneur Advocate – DC Serial Entrepreneur

National = $34 Bn National = $18 Bn National = $6 Bn
DC Maryland Virginia Other

Copyright © 2018 Accenture. All rights reserved. Source: National Science Foundation; Fosterly Entrepreneur Survey; CB Insights 36
IMPACT
STUNTED INNOVATION ECOSYSTEM FEEDBACK
LOOP
Attracts people who want to make a positive Create incentives for SMB business to start a company and stay through
impact and are mission-driven expansion and growth
Attracting international people State Local
Area
Income Tax Income Tax
73k people move

to DC Metro from
aboard. Net
Washington DC
Montgomery
8.50%
4.75% 3.2%
--
B
grade on the
Prince George’s 4.75% 3.2%
migration to DC Thumbtack.com
Metro would be Fairfax 5.75% -- national 2016 Small
negative, otherwise. Arlington 5.75% -- Business
Loudoun 5.75% --
Friendliness Survey
Prince William 5.75% --

Mission-driven people and startups
69% 41% “Investors will set up

their companies in
“There is a drop in
support for
“There is no space for
my company to grow
of DC startups self- of DC startups consider and continue
Virginia or Maryland companies once they
identify as a “double- their business to be in
bottom line” business social impact because of the become a medium- manufacturing in D.C.”
favorable tax code” sized company.” –DC Entrepreneur of Mid-
– Serial DC Entrepreneur – Serial DC Entrepreneur Size Company
Copyright © 2018 Accenture. All rights reserved. Source: Fosterly, WDCEP, DMPED 37
DETAILED
ANALYSIS
0 DC's Current State
• Definition of Innovation Economy Outputs
• DC Performance in Innovation Economy Outputs
• Economic & Innovation Assessments Comparison
1 DC’s Economic Strengths
2 Benefits of an Innovation District
3 Gaps in DC’s Innovation Ecosystem
4 Building an Innovation District

INNOVATION ECOSYSTEM DEFINITION
FOUR CORE FACTORS TO DRIVE AN INNOVATION
ECOSYSTEM
IE = T X C X R X I
rates and increases in the collaboration via tech industry experience • Local government
standard of living transfer • Industry R&D spend policies and regulations
high speed internet
connections, and
walkable urbanism
X = factors are amplified through alignment
DC PERFORMANCE ON INNOVATION ECOSYSTEM OUTPUTS
INNOVATION ECOSYSTEM OUTPUTS
PRODUCTIVITY
OUTPUTS ECONOMIC OUTPUTS WELL-BEING OUTPUTS
Increase in number of Growth in median Increase in Walkable
active startups household income Urbanism (# WalkUps*)
Startup activity has increased in the past 5 DC’s median household income of DC ranks #1 in Walkable Urbanism with
years, peaking in 2015. $75,628 is second-highest among states. 43% concentration on WalkUps5
However, DC’s income gap ranks in the
Growth of average
top 5 among largest U.S. cities1
patents (per 1 Positive net migration

million workers) From 2012-2016, DC’s population grew
In 2015, 167 patents were filed in DC,

Total job growth 7.2%1
equivalent to 248 per 1 million people –

lower than both MD and VA1
From 2012-2016, DC saw an 11%
increase in private sector jobs while the
Lessened carbon impact
number of government jobs has remained (score out of 100)
largely constant1
DC ranks #3 in energy efficiency in the
Industry sector growth U.S. with a score of 76.54
(non-federal based sectors)
Lower average Improved broadband
poverty rate
Annual growth rate for DC’s private sector
GDP from 2012-2016 was 4.2%, and the connectivity (Mbps)
annual growth rate for total GDP (public
and private sectors) was 3.5%1 In 2012, 1 in 5 five DC residents lived As of 2015, DC has the highest average
below the poverty line2 connection speed in the U.S. at 19.5
Mbps6
Copyright © 2018 Accenture. All rights reserved. *WalkUps: Regionally significant, walkable urban places 40
ECONOMIC & INNOVATION ASSESSMENTS COMPARISON
META ANALYSIS OF ECONOMIC AND INNOVATION
STUDIES
Survey Rank Organization Description Other Achievements
Kauffman Index of
#1
1st Kaufmann Measures rate of startup growth,
Growth Foundation share of scale ups, and high-growth Broadband Speed
Entrepreneurship (2017) companies Walkable Urbanism
Innovation Index 2.0 16th StatsAmerica.org In partnership with the U.S. Economic
Development Administration and IU #3 Energy Efficiency
5
Kelley School of Business, published
TOP
a report outlining the innovation
capacity of different US regions Most Innovative City
Global Cities Index
10
10th A.T. Kearney Measures global cities across 9
(2017)
TOP
dimensions for current performance Fastest Growing Companies
and outlook Places for Tech Jobs
Global Power City Index 29th The Mori Memorial Evaluates its target cities in six urban Places for STEM Grads
(2017) Foundation functions: Economy, Research and
Development, Cultural Interaction,
Livability, Environment, and
Accessibility
IESE Cities in Motion 6th IESE Center for Measures cities on economy, human
Index (2017) Globalization and capital, social cohesion, environment,
Strategy public management, governance,
urban planning, international outreach

KAUFFMAN INDEX OF GROWTH
ENTREPRENEURSHIP
Factor Description
Rate of Startup Growth Measures the average employment growth of a cohort of startups in the United States in their first five years. The Rate of Startup Growth
captures employer businesses regardless of industry, and it calculates their average growth as a cohort of businesses during their first
five years of operation—from the founding year to year five.
Share of Scaleups Indicates the prevalence of employer firms ten years old and younger that start with fewer than fifty employees and grow to employ at
least fifty people by their tenth year of operation. While the Rate of Startup Growth looks at the estimated average growth of a cohort of
employer firms, the Share of Scaleups focuses exclusively on firms that reach fifty employees or more.
High-Growth Company Represents the prevalence of fast-growing private companies that have at least $2 million in annual revenue and 20 percent annualized
Density growth over a three-year period, which compounds to 72.8 percent after the three years.

GLOBAL CITIES COMPARISION
Global Cities 2017: Leaders in a World of Disruptive Innovation, A.T. Kearney
Index Dimension City
Business activity New York
Human capital New York
Information exchange Paris
Cultural experience London
Political engagement Washington DC
Outlook Dimension City
Personal well-being Melbourne
Economics New York
Innovation San Francisco
Governance Geneva, Zurich
Copyright © 2018 Accenture. All rights reserved. Source: A.T. Kearney Global Cities 2017 43
GLOBAL POWER CITY INDEX
Global Power City Index 2017, The Mori Memorial Foundation
The GPCI evaluates its target cities in six urban

functions: Economy, Research and Development,
Cultural Interaction, Livability, Environment, and
Accessibility. Each of the functions comprises multiple
indicator groups, which in turn consists of several
indicators. A total of 70 indicators are used in the GPCI.
The average indicator scores of the indicator groups are
combined to create the function-specific rankings. The
comprehensive ranking is created by the total scores of
the function-specific rankings.
Note:
• Washington DC ranks 16th in Economy, 16th in
Environment and 15th in R&D
Copyright © 2018 Accenture. All rights reserved. Source: Global Power City Index 2017 44
INNOVATION ECONOMY RATINGS – DC METRO
Innovation Index 2.0, StatsAmerica
StatsAmerica, in partnership with the U.S. Economic Development Administration and IU Kelley School of Business, published a report outlining the
innovation capacity of different regions in the U.S.
DC’s Overall Rating Detailed Indicators
126.8 16
Headline Rank of 380 Human Capital and Knowledge
152.0 10
Index Metros Creation Index examined
measures such as educational
Human Capital and Knowledge Rank of 380 attainment, # of high-tech jobs,
Creation Index Counties population growth, and
knowledge creation
123.9 31
Business Dynamics Index
examined measures such
as venture capital funding
Business Dynamics Rank of 380
Index Metrics
and IPO’s
108.1 94
Business Profile Index examined
measures such Foreign Direct
Investment (FDI), # of small and
Business Profile Rank of 380
Index Metrics
large businesses, business
lifecycle, and internet speed
Copyright © 2018 Accenture. All rights reserved. Source: Innovation Index 2.0, Stats America 45
IESE CITIES IN MOTION INDEX (2017)
Key Findings
• DC is high in Economy, Human Capital, Public Management
• DC is low in Social Cohesion, Environment, Urban Planning,
Copyright © 2018 Accenture. All rights reserved. Source: IESE Cities in Motion Index (2017) 46
STATEWIDE DASHBOARDS & OTHER

SCORECARD EXAMPLES
Stockholm
Illinois Innovation Index Key Observations
1. Three main buckets of progress categorization:
i. Human Capital
ii. Economic Factors
iii. University Impacts
2. Important to compare internally (regions within
state) and externally (peer states, cities)
3. Showing the inputs and how they relate to the
outputs gives policy makers a clear look at
where improvements need to be made to affect
the output indicators
4. D.C.’s international peers are less metrically
Copenhagen focused on gentrification
Notes
• It’s important to include publicly available,
numerical data so that the measuring entity can
track progress (or lack there of) over time
http://ec.europa.eu/growth/industry/innovation/facts-
figures/regional_en
Copyright © 2018 Accenture. All rights reserved. Sources: Illinois Innovation Index; Virginia CIT Innovation; 47
DETAILED
ANALYSIS
1 DC’s Economic Strengths (Part 1)
• Approach to Analysis
• Lens Analysis

DC’S ECONOMIC STRENGTHS

Our approach to understanding DC’s economic strengths utilizes multiple data analysis lenses across
quantitative and qualitative measures. This led to key industry and cluster profiles to develop.
Industries
Clusters
PART 1: ANALYZE DATA THROUGH PART 2: PROFILE KEY INDUSTRIES &
MULTIPLE LENSES CLUSTERS
Clusters Industries
• Sector and Industry Employment Artificial Intelligence Biotech
• Occupation Cybersecurity Civic Tech
• Job Skill
Data Science Ed Tech
• Startup Activity
Social Enterprise Health Care
• Academic Assets
• R&D Expenditure Hospitality
• Stakeholder Interviews Retail
Note: Industry cluster are technologies/platforms that may be applied across industries

SECTOR AND INDUSTRY
SUMMARY OF INDUSTRY EMPLOYMENT
DC Metro has significantly more employees in the Professional, Scientific and Management Industry, and 3x
more Public Administration employees than other top 12 metro areas
% of Industry Employment in Top 12 Metro Areas, 2016

Transportation, Finance, Professional, Educational Arts,
Total Employed
Metro Area Construction Manufacturing Retail trade warehousing, & insurance, & scientific, & services, & entertainment, & Public admin
(Million)
utilities real estate management health care accommodation
NYC/NJ 6% 6% 11% 6% 9% 13% 26% 9% 4% 9.6
Los Angeles 6% 11% 11% 5% 7% 13% 20% 11% 3% 6.2
Chicagoland 5% 12% 11% 6% 8% 13% 22% 9% 3% 4.6
Dallas 7% 10% 12% 6% 9% 13% 20% 9% 3% 3.4
DC Metro 6% 3% 8% 4% 6% 1 21% 20% 9% 2 13% 3.2
Houston 9% 10% 11% 6% 6% 13% 20% 8% 3% 3.1
Philadelphia 5% 9% 11% 5% 8% 12% 27% 8% 4% 2.9
Miami 7% 5% 13% 6% 8% 14% 20% 11% 4% 2.8
Atlanta 6% 9% 12% 7% 7% 14% 20% 9% 4% 2.7
Boston 5% 9% 10% 4% 8% 15% 27% 9% 4% 2.5
SF Bay Area 5% 8% 10% 5% 8% 19% 21% 10% 4% 2.3
Phoenix 7% 8% 12% 5% 10% 13% 21% 10% 4% 2.0
Notes:
• Agriculture, Wholesale Trade, Information, and Other Services industries are not represented in table, but included in total employed. For DC Metro, this equals 11% of all DC Metro employees
• Computer programs and other IT related fields are included Professional, Scientific, and Management industry
• Total employed is estimated number of Civilian employed population 16 years and over
Copyright © 2018 Accenture. All rights reserved. Source: American Community Survey 50
SECTOR AND INDUSTRY
SECTOR EMPLOYMENT IN DC METRO
DC Metro Employment as of October 2017 Key Observations

Professional and business services 765 1. DC Metro employment is dominated by people
working in the professional and business
Government 701 services industry, and the government industry
Education and health services 446
Trade, transportation, and utilities 413
Leisure and hospitality 349
Other services 200
Mining, logging, and construction 164

Notes
Financial activities 160 • Industry information subsectors are categorized
by the North American Industry Classification
Information 71 System (NAICS) code order
• For example, Other Services include:

Manufacturing 54
• Repair and Maintenance
• Personal and Laundry Services
- 100 200 300 400 500 600 700 800 900 • Religious, Grantmaking, and Civic
Thousands • Private Households
Copyright © 2018 Accenture. All rights reserved. Source: BLS.gov 51

SECTOR AND INDUSTRY
DC’S TOP FASTEST GROWING SECTORS
Key Observations
1. Professional, Scientific, and Technical Services
are expected to grow faster than the other
sectors
Notes
• Source:
https://dcworks.dc.gov/sites/default/files/dc/sites/
dcworks/publication/attachments/WIOA_DC_Unif
ied_State_Plan_Final.pdf
Copyright © 2018 Accenture. All rights reserved. Source: DC Department of Employment Services 52
OCCUPATIONS
OCCUPATIONS - DEMAND
Within Computer and Mathematical, occupations in
Computer and Mathematical Occupation Group is in
highest demand are Software Developers and
highest demand
Programmers
Occupation Group Employed & Job Posts in DC Metro Occupations in Computer & Math - Employed & Job Posts in DC Metro
80
Thousands
Computer and Mathematical 223
158
70
Management 235
79
60
Healthcare Practitioners and Technical 145
69
50
Occupation Groups
Business and Financial Operations 281

64
Office and Administrative Support 406 40
59
Sales and Related 263 30
55
Transportation and Material Moving 127 20
27
Food Preparation and Serving Related 254 10
25
Arts, Design, Entertainment, Sports, and 73
Media 19 0
Software Miscellaneous Database and Computer and Computer Support
Architecture and Engineering 63 Developers and Computer Systems Information Specialists
16
Programmers Occupations Administrators Analysts
0 100 200 300 400 500 and Network
Architects
Thousands
Computer and Mathematical Occupations
Job Postings Employed in 2016
Employed in 2016 Job Postings
Copyright © 2018 Accenture. All rights reserved. Source: Burning Glass - Labor Insights 53
OCCUPATIONS
OCCUPATIONS - PROJECTIONS
Occupations projected to grow most in the next ten years are in the Information Technology and Health fields, while
demand for Human Resources Specialists and Managers is projected to decrease
Projected Statewide Change in Employment, 2016-2026

30%
High Growth and High Demand
Computer Systems Analysts
25% Web Developers Information Security Analysts
Physical Therapists
Software Developers, Applications
20%
Percent Projected Job Growth
Computer Network Architects

Maintenance and Repair Network and Computer Systems…
Workers, General Computer User Support Specialists
15%
Database Administrators
Medical and Health Services Managers Registered Nurses
10% Retail Salespersons
Sales Managers
5%
Management Analysts
Computer Occupations, All Other

Financial Managers
0% Managers, All Other
0 5 10 15 20 25 30 35 40 45 50
Human
Thousands
Resources…
-5%
Projected Statewide Change in Employment, 2016-2026
OCCUPATIONS
SUPPLY VS DEMAND FOR TOP 10 OCCUPATION
GROUPS IN DC METRO
Key Observations
Computer and Mathematical
1. Computer and Mathematical Occupation Group
Management has highest demand with slimmest margin to
current supply, meaning workforce must almost
completely turn over to fill demand
Healthcare Practitioners and Technical
2. Second smallest margin is Healthcare
Practitioners and Technical Occupations
Business and Financial Operations
Occupation Groups
Office and Administrative Support
Sales and Related
Transportation and Material Moving
Food Preparation and Serving Related Notes
Arts, Design, Entertainment, Sports, and Media • November 2016 – November 2017
• Analysis includes all available SOC Codes
Architecture and Engineering
0 50 100 150 200 250 300 350 400 450

Thousands
Employed in 2016 Job Postings
OCCUPATIONS
DC METRO– PROJECTED CHANGE IN
EMPLOYMENT BY OCCUPATION
50 30 Key Observations
Thousands
45
25 1. Occupations with high job postings and high
40
projected change include Software Developers,
Percentage Change
20
35 Applications and Registered Nurses
30 2. Most occupations with high percentage projected
15
25
change currently have low number of job
10 postings
20
15 5
10
0
5
0 -5
Notes
• November 2016 – November 2017
• Burning Glass Occupation classification (not
NAICS)
Job Postings Projected Statewide Change in Employment, 2016-2026
Copyright © 2018 Accenture. All rights reserved. Source: Burning Glass – Labor Insights 56
OCCUPATIONS
SUPPLY VS DEMAND FOR COMPUTER AND
MATHEMATICAL OCCUPATIONS IN DC METRO
80 Key Observations
Thousands
1. Software Developers and Programmers and

70
Miscellaneous Computer Occupations have
smallest margin of supply and demand, meaning
60 those fields require the highest rate of turnover
of current workforce to fill demand
50
40
30
20
Notes
10
• Includes top 10 occupations within Computer
0 and Mathematical Occupation Group
Software Developers Miscellaneous Computer Database and Systems Computer and Computer Support • No additional breakdown provided for
and Programmers Occupations Administrators and Information Analysts Specialists “Miscellaneous Computer Occupations”
Network Architects
Computer and Mathematical Occupations
OCCUPATIONS
TOP 20 OCCUPATIONS IN DC METRO
90000
80000 Key Observations

70000 1. Software Developers and Programmers,
Number of Jobs / Employed
Miscellaneous Computer Occupations,

60000 Registered Nurses, and Database and Systems
Administrators and Network Architects are set to
50000
have to turn over more than 50% of their
40000 workforce to meet demand
30000
20000
10000
Notes
• Includes last 12 months
• Analysis includes all available SOC Codes
• No additional breakdown provided for
“Miscellaneous Computer Occupations”
Sum of Number of Job Postings

Sum of Number Employed 2016
OCCUPATIONS
DC METRO– HEALTHCARE OCCUPATIONS
45 Key Observations
Thousands
40
1. Registered Nurses and Therapists have the most
35
job postings and most employed, meaning those
30 fields require the highest rate of turnover of
25 current workforce to fill demand
20
15
10
5
0
Physicians and Surgeons
Therapists
Nurse Practitioners
Registered Nurses
Miscellaneous Health Technologists

Licensed Practical and Licensed
Medical Records and Health

Clinical Laboratory Technologists and
Technologists and Technicians
Diagnostic Related Technologists and

Health Practitioner Support
Information Technicians
Vocational Nurses
and Technicians
Technicians
Technicians
Notes
• Includes top 10 occupations within Healthcare
Practitioners and Technical Occupations Group
Healthcare Practitioners and Technical Occupations

OCCUPATIONS
DC METRO– TOP 20 OCCUPATIONS
Software Developers and Programmers

Key Observations
Miscellaneous Computer Occupations 1. Software Developers and Programmers,
Registered Nurses Miscellaneous Computer Occupations,
Database and Systems Administrators and Network Architects Registered Nurses, and Database and Systems
Computer and Information Analysts
Administrators and Network Architects are set to
have to turn over more than 50% of their
Driver/Sales Workers and Truck Drivers
workforce to meet demand
Miscellaneous Managers
Sales Representatives, Wholesale and Manufacturing
Secretaries and Administrative Assistants
Management Analysts
Retail Salespersons
Marketing and Sales Managers
Therapists
First-Line Supervisors of Sales Workers
Accountants and Auditors
Notes
Human Resources Workers • November 2016 – November 2017
Customer Service Representatives • Analysis includes all available SOC Codes
Computer Support Specialists • No additional breakdown provided for
Medical and Health Services Managers
“Miscellaneous Computer Occupations”
Financial Analysts and Advisors
0 20 40 60 80 100
Employed in 2016 Job Postings Thousands
OCCUPATIONS
TIME TO FILL DC METRO OCCUPATIONS
Key Observations
1. All top 10 occupations in demand are listed in
top 20 longest time to fill, verifying a shortage in
talent and surplus of demand
2. Physical Therapist is hardest to fill (out of data
set)
3. IT Project Manager is easiest to fill (out of data
set)
4. Most occupation fill times are similar to national
average, despite perceived longer periods (over
Occupations
35 days)
Notes
NAICS)
• Time to Fill categorizations (Much Harder,
Harder, Similar, Easier, Much Easier) in
comparison to national average
OCCUPATIONS
JOBS BY DC RESIDENT
Key Observations
1. DC residents primarily have jobs in professional
scientific, and management services.
2. Education, healthcare and social assistance is
2nd
Notes
• American Community survey, from DC Economic
Strategy
Copyright © 2018 Accenture. All rights reserved. Source: DC Economic Strategy 62

JOB SKILLS
JOB SKILLS
40% of the top 10 skill clusters projected to grow Over 50% of the skills projected to grow “Faster” or
“Much Faster” in the next 2 years are in Information “Much Faster” across all occupation groups are IT-
Technology related
Job Postings in DC Metro, Previous Year Job Skills in DC Metro, Previous Year
25
Customer and Client Support: Basic Customer
Thousands
Service
Business: Project Management
20
Sales: General Sales
Job Postings
Media and Writing: Writing 15
Skill Clusters
Information Technology: Cybersecurity
Finance: General Accounting 10
Information Technology: JavaScript and jQuery

5
Finance: Billing and Invoicing
Information Technology: Cloud Solutions

0
Information Technology: Big Data
0 20 40 60 80 100 120
Thousands
Postings Requested
Notes:
• “Much Faster” is determined through Burning Glass analysis
STARTUP ACTIVITY
DC METRO STARTUP ACTIVITY
Internet and Mobile Telecommunications Biotech, and Business Intelligence has a high volume of
comprise of 55% of all private business funding deals.
Startup Funding by Sector, 2012- 2016 Startup Funding by Sub-industries Funding, 2012 - 2016
70
1,743
60
Amount Funded ($M)

50
Deal Count
40
30
655
594
493 20
365 345 342 326
349 341
10
Note: For Cable &

Satellite, OneWeb
represented the majority
of funds
Copyright © 2018 Accenture. All rights reserved. Source: CB Insights, financing and investment amounts. 64
STARTUP ACTIVITY
DC METRO EARLY STAGE FUNDING BY SECTOR,
SUMMARY
Key Observations
1. Across the past 5 years, Internet and mobile
telecommunications have made up 60% of all
financing
2. Funding for energy, financial, and healthcare
totaled $1 Bn, each.
Notes
• Funding includes all investment stages, and
does not include M&A and IPOs deals
• Includes companies located in the Washington
Metro MSA
• Includes deal activity from 2012 to 2016

STARTUP ACTIVITY
DC METRO– INTERNET SUB-INDUSTRIES FUNDING
600 70 Key Observations
500 60 1. Within the Internet industry, Health and Wellness

focused accounts for almost $500M in deal
50 amount in the past 5 years
Deal Amount ($M)
400
2. Customer Relationship Management has the
Deal Count
40 most deal activities in the past 5 years
300
30
200
20
100 10
0 0
Notes
Metro MSA

STARTUP ACTIVITY
DC METRO– MOBILE & TELCO SUB-INDUSTRIES
FUNDING
2,000 14 Key Observations
1,800 1. Across the past 5 years, Internet and mobile
12
telecommunications have made up 60% of all
1,600
financing
1,400 10 2. Funding for energy, financial, and healthcare
totaled $1 Bn, each.
Deal Amount ($M)
1,200
Deal Count
8
1,000
6
800
600 4
400
2
200
Notes
0 0
Metro MSA

STARTUP ACTIVITY
DC METRO EARLY STAGE FUNDING BY SECTOR,
2012 - 2016
3500
Software (non-internet/mobile) Key Observations
Risk & Security 1. Funding includes all investment stages, and
3000 Retail (non-internet/mobile) does not include M&A and IPOs deals
Mobile & Telecommunications 2. Includes companies located in the Washington
Metro MSA
653 Media (Traditional)
2500 Leisure
Internet
Total Funding ($MM)
1,580
Industrial
2000
Healthcare
89 883 Food & Beverages
1500 Financial
Environmental Services & Equipment

78 941
Energy & Utilities
436
1000 61 618 Notes
Electronics
542
204 Consumer Products & Services • Financing from 2012 to 2016 has increased by
152 156
73 Computer Hardware & Services 3x
500 208 677 83
Business Products & Services • In 2016, Mobile & Telecommunication companies
comprised of more than 50% of funding activity
233 Automotive & Transportation
40
18 • Internet funding has increased in the past 5
0 Agriculture
2012 2013 2014 2015 2016
years by CAGR 25%

STARTUP ACTIVITY
DC METRO EXITS, 2012 - 2017
Key Observations
1. Includes companies that are located with 30
miles of Washington DC
2. Includes deals where a company with IPO or
M&A deal activities
Notes
• Exits have increased by 40% since 2013
• Next step: Need to break down exits by industry,
and consider including minimum by amount size

CORPORATE PRESENCE
FORTUNE 500 COMPANIES IN DMV
DMV Headquartered Fortune 500 Companies (2017) by Industry
Aerospace and Defense 4

Key Observations
Information Technology Services 3 1. There are 29 companies based in DMV that are
Utilities: Gas and Electric 2 included in the F500 companies
Specialty Retailers: Other
2. 50% of Aerospace and Defense F500 companies
2
are in the DMV (General Dynamics, Huntington
Hotels, Casinos, Resorts 2
Ingalls, Lockheed Martin, Northrup Grumman)
Homebuilders 2 3. 75% of all Information Technology Services F500
Diversified Financials 2 companies are in DMV (Leidos, Computer
Wholesalers: Health Care 1
Sciences, Leidos)
4. Half of all Hotels, Casinos Resort F500
Wholesalers: Food and Grocery 1
companies are in DMV (Hilton, Marriott)
Tobacco 1 5. Other industries, such as healthcare, finance,
Scientific, Photographic and Control Equipment 1 technology, do not have a F500 headquarters in
Real Estate 1 DMV.
Railroads 1
Packaging, Containers 1
Notes
Insurance: Property and Casualty (Stock) 1 • Source: 2017 Fortune 500 List
Insurance: Life, Health (Stock) 1
Entertainment 1
Commercial Banks 1
Automotive Retailing, Services 1
0 2 4 6 8 10 12 14 16 18 20
Total F500 Companies DC MD VA
Copyright © 2018 Accenture. All rights reserved. Source: Fortune 500 Analysis 70
RESEARCH & DEVELOPMENT FUNDING
2015 R&D FUNDING BY STATE
Total National R&D Funding by Performer (2015) = $468Bn Key Observations

74% • Almost 3/4 of all national R&D funding is
performed by businesses
• Federal funding is only 6% but over represented
in the DMV states
15%
6%
4%
1% 0%
State Business
Business Higher
HigherEdu
Ed FFRDCs
FFRDCs Federal
Federal Non-Profit
Non-Profit State Internal
State Internal
District of Columbia 0% 1% 0% 8% 6% 0%
Notes
Maryland 1% 5% 4% 35% 6% 0%
Virginia 1% 2% 10% 9% 2% 2% • National Science Foundation

• Includes only funding performed in the US
Other 97% 92% 86% 48% 87% 97% • Funding is broken by state, with limited insight
into city-level funding
Total 100% 100% 100% 100% 100% 100%

2015 R&D FUNDING BY PERFORMER
25,000 Key Observations

1. Maryland spends almost 2 times for R&D than
Virginia, which is primarily due to Federal
performers
20,000 2. Maryland spends 3 times more than Virginia
and 7 times more than DC
R&D Expenditures (in millions)
15,000 10,462 State Internal

Non-Profit
Federal
FFRDCs
10,000 HigherEd
2,733 Business
Notes
3,742 • Last available data for all funding sources is
2015
5,000 1,411
• Source: National Science Foundation
4,486 5,136
2,367
0
District of Columbia Virginia Maryland

2015 R&D FUNDING BY STATE
Top 20 States by % of Total R&D Spend State R&D Spend per Capita Key Observations
California 31% District of Columbia 5,306 1. DC ranks outside of the top 20 in overall R&D
Massachusetts 7% Massachusetts spending
Texas 6% Maryland 3,394
2. DC ranks first in R&D funding per capita
spending $5.3k per capita
New York 6% California
3. Maryland and Virginia rank 3 and 17th in R&D
Maryland 5% Delaware
spending per capita
Washington 5% New Mexico
Michigan 5% Washington
Illinois 4% Connecticut
New Jersey 4% Michigan
Pennsylvania 4% Oregon
Ohio 3% New Jersey
North Carolina 3% New Hampshire
Virginia 3% Minnesota
Connecticut 2% Utah Notes
Florida 2% Rhode Island
Minnesota 2% Idaho
• Last available data for all funding sources is
Indiana Illinois
2015.
2%
• Adjusted by total population as of July 1st, 2015
Missouri 2% Virginia 1,258
• R&D spend includes business, federal, higher
Oregon 2% Colorado
education federally funded R&D centers, state
Arizona 2% Missouri
0% 5% 10% 15% 20% 25% 30% 35% 0 1,000 2,000 3,000 4,000 5,000 6,000
Total R&D Spend = $468B Total R&D Funding per Capita (In $)
Copyright © 2018 Accenture. All rights reserved. Source: National Science Foundation 73
DC METRO ACADEMIC R&D EXPENDITURES BY
DISCIPLINE, 2011 - 2015
Washington MSA Academic Research Expenditures (2011 - 2015), Top 10 Key Observations
31% 1. Medical Sciences expenditures was 31% of all
total funding but has the same level of
concentration as the national average.
2. Physics expenditures is 6% and is 86% more
concentrated than the national average
3. Biological Sciences received less than 9% of all
total funding
4. Computer Science received less than 5% of all
9% total funding, but is 50% more concentrated than
7%
6% the national average
4% 4% 4% 4% 3% 3% 5. Political Science research expenditures were
less than 4% but is more than 5x the national
Medical Biological Other Social Physics Computer Other Life Agricultural Political Other Earth average
Sciences Sciences Sciences Science Sciences Sciences Science and Engineering Sciences
Public
Administration
Washington MSA Concentration vs National Notes
5.47 5.71
• Includes universities located in the Washington

Metro MSA, does not include Baltimore
1.01
1.86 1.55 1.41 1.65 • Academic research expenditures is agnostic of
0.49 0.75 0.70
funding source
• Other social sciences is not further defined
Medical Biological Other Social Physics Computer Other Life Agricultural Political Other Earth
Sciences Sciences Sciences Science Sciences Sciences Science and Engineering Sciences • Concentration vs National represents
Public Washington’s MSA % / National %, by discipline
Administration
DC METRO ACADEMIC R&D EXPENDITURES BY
DISCIPLINE, TRENDING
Not Available
1,800
Social Service Professions
Arts and Music Key Observations
Other Geosciences
1,600 Oceanography 1. Funding for Medical Sciences increased by
Chemical Engineering
Atmospheric Sciences $200M, to almost $600M in 2015
Other Non-sciences or Unknown Disciplines 2. Computer Science R&D was only $60M in 2015,
1,400 Communication and Librarianship which is 1/10th of funding allocated to Medical
Sociology
Interdisciplinary or Other Sciences
Sciences
Humanities
1,200
Mathematics and Statistics
Other Physical Sciences
Materials Engineering
Funding ($MM)
1,000 Business and Management

Aerospace Engineering
Law
Education
800 Chemistry
Economics
Mechanical Engineering
Electrical Engineering
600 Notes
Astronomy
Psychology
Civil Engineering • Includes universities located in the Washington
400 Earth Sciences Metro MSA, but does not include Baltimore
Other Engineering
Political Science and Public Administration (JHU)
Agricultural Sciences
200 Other Life Sciences
Computer Science
Physics
Other Social Sciences
0
Biological Sciences
2011 2012 2013 2014 2015
Medical Sciences
ACADEMIC ASSETS
REUTERS’ WORLD’S MOST INNOVATIVE
UNIVERSITIES
# of Universities in Global 100 Ranking, by State Key Observations
1. Johns Hopkins University (MD) and University of
New York 5
Virginia (VA) are the only two universities in the
Massachusetts 5 region that are in the top global 100 ranking
2. Other innovation hubs in New York, Boston, and
California 4 San Francisco have more universities that
Pennsylvania 3
appear in the global 100 ranking.
Illinois 3
Texas 3
North Carolina 3
Ohio 2
Indiana 2
Notes
New Jersey 2
• Reuters – Top 100 Innovative Universities (2017)
Georgia 2
Florida 2
Virginia 1
Maryland 1
Note: 11 other states with 1 university in global 100 ranking
Copyright © 2018 Accenture. All rights reserved. Source: Reuters Top 100 worlds most innovative universities 76
UNDERSTANDING DC’S ECONOMIC BASE
WASHINGTON DC EMPLOYMENT CHANGE RATES
Professional and business services 7.16%

2.53% Key Observations
Government 3.82%
2.61% 1. DC experienced high growth in Education and
Education and health services 4.97%
12.29% Health Services, and Leisure and Hospitality, in
the past year
Trade, transportation, and utilities 3.82%
1.72% 2. Information (non-technology) decreased the
Leisure and hospitality 11.68% most in both 1 and 3 year changes
4.65%
Other services 4.76%

1.47%
Mining, logging, and construction 8.40%

3.02%
Financial activities 3.70%

0.19%
-9.04% Information
-4.67%
Manufacturing 4.21%
0.37%
-10.00% -5.00% 0.00% 5.00% 10.00% 15.00%

Notes
3 Year Change 1 Year Change
• Data as of July 2014 to July 2017
Top 3 Industries with Greatest Overall Growth from July 2014 to July 2017
Professional and Business Services 51,100

Education and Health Services 48,800
Leisure and Hospitality 36,500
Copyright © 2018 Accenture. All rights reserved. Source: Bureau of Labor Statistics 77
UNDERSTANDING DC’S ECONOMIC BASE
COMPARATIVE EMPLOYMENT CHANGE RATES IN
WASHINGTON DC OVER ONE YEAR
Total Nonfarm Employment Over-the-Year Percent Change in the US and 12 Key Observations
Largest Metros 1. DC has the 4th highest nonfarm employment
3.5 over-the-year percent change in the US
2.5
1.5
1 Notes
• Data as of October 2017
0.5
Copyright © 2018 Accenture. All rights reserved. Source: Bureau Labor of Statistics 78
LENS ANALYSIS
R&D SPEND - OVERALL
DC metro is underrepresented in business R&D and over Maryland has twice the R&D spend as
represented in Higher Ed, Federal Funded R&D Centers, and Virginia, largely due to Federal R&D
Federal R&D expenditures
Total National R&D Funding by Performer (2015) = $468Bn R&D Expenditures, by Performer
74% 25
20
R&D Expenditures (in billions)

15 10
15%
6%
4%
1% 0%
10
Business Higher Edu FFRDCs Federal Non-Profit State Internal
State 3
State Business Higher Ed FFRDCs Federal Non-Profit Internal 4
DC 0% 1% 0% 8% 6% 0% 5 1
Maryland 1% 5% 4% 35% 6% 0% 5
2 4
Virginia 1% 2% 10% 9% 2% 2% 0
District of Columbia Virginia Maryland
Other 97% 92% 86% 48% 87% 97%
Business HigherEd FFRDCs Federal Non-Profit State Internal
Total 100% 100% 100% 100% 100% 100%
LENS ANALYSIS
R&D SPEND - ACADEMIC
DC Metro Academic R&D is over represented in Social Science, Physics, There is opportunity to translate
Computer Science, Life Science, and Public Admin R&D into Tech Transfer
DC Metro Academic Research Expenditures (2011-2015), Top 10

31%
Colleges and
24 Universities in DC
Metro
9%
7% 6% 4% 4% 4% 4% 3% 3%
Medical Biological Other Social Physics Computer Other Life Agricultural Political Other Earth Of DC Metro based
Sciences Sciences Sciences Science Sciences Sciences Science and Engineering
Public
Administration
Sciences
¼ Universities have
Tech Transfer
DC Metro Concentration vs National (National Average = 1.0) Centers
5.47 5.71
1.86 1.55 1.65

1.01 1.41
Index = 1.0 0.49 0.75 0.70
Medical Biological Other Social Physics Computer Other Life Agricultural Political Other Earth
Sciences Sciences Sciences Science Sciences Sciences Science and Engineering Sciences
Public
Administration
Copyright © 2018 Accenture. All rights reserved. Source: National Science Foundation; Accenture Research 80
LENS ANALYSIS
R&D SPEND – BY INSTITUTION
DC Metro Academic R&D is over represented in Social Science, Physics,
Computer Science, Life Science, and Public Admin
Academic R&D Expenditures, 2016

Johns Hopkins U.
Stanford U.
Northwestern U.
U. Maryland, College Park
Virginia Tech
U. Virginia
Computer and information sciences
U. Maryland, Baltimore
Geosciences and ocean sciences
Carnegie Mellon U.
Life sciences
George Washington U.
Virginia Commonwealth U. Mathematics and statistics
Georgetown U. Physical sciences

George Mason U. Psychology
U. Maryland, Baltimore County Social sciences
C. of William and Mary and Virginia Institute of Marine Science Sciences, nec
American U. Engineering
U. Maryland, Center for Environmental Science All non-S&E fields
Howard U.
Catholic U. of America
Virginia State U.
U. of the District of Columbia
0.0 0.5 1.0 1.5 2.0 2.5 3.0

R&D Expenditures Billions
ACADEMIC ASSETS
UNIVERSITIES’ INNOVATION ORGANIZATIONS AND
EVENTS
Innovation-Focused Activity at DMV schools Key Observations
10 1. James Madison is particularly involved in the
hackathon scene
9 2. (Need to do more research on specific
programs)
8
3
Notes
2 • “Organizations” include specific university
departments, initiatives, and student
1
organizations
• “Events” include innovation or entrepreneurship-
0
University of Johns Hopkins American Georgetown George University of Virginia Institute University of James Madison
focused conferences, competitions, or
Maryland University University University Washington Virginia of Technology Richmond University Hackathons
University
Number of Innovation-Focused Organizations Number of Innovation-Focused Events
Copyright © 2018 Accenture. All rights reserved. Source: Accenture Analysis 82

DETAILED
ANALYSIS
1 DC’s Economic Strengths (Part 2)
• Cluster Profiles
• Industry Profiles

CYBERSECURITY DEMAND NATIONALLY
Key Observations
1. Heavy concentration of Cybersecurity jobs in
D.C. MSA with few heavy competitors in the
space
Notes
• Dec 2016 to Nov 2017
NAICS)
• Based on MSAs (not particular states)
WASH MSA – CYBERSECURITY OCCUPATION
DEMAND
Total
Key Observations
Cyber / Information Security Engineer / Analyst 13570
1. Cyber / Information Security Engineer / Analyst
Software Developer / Engineer 4399
in highest demand in Cyber Security field
Network Engineer / Architect 2861 2. Software Developer / Engineer demand is
Network / Systems Administrator 2794 second highest, with only 1/3 of job postings
Computer Systems Engineer / Architect 2763
Computer Support Specialist 1435
Systems Analyst 918
Security Management Specialists 908
Database Administrator 698
Security Officer 612
Business / Management Analyst 581
IT Project Manager 570
Auditor 411
Security / Defense Intelligence Analyst 348
Chief Information Officer / Director of Information… 347 Notes
Technology Consultant 342
Program Manager 333 • Dec 2016 to Nov 2017
Project Manager 316 • Burning Glass Occupation classification (not
Risk Manager / Analyst 260 NAICS)
Software QA Engineer / Tester 256 • Includes total Washington MSA (does not specify
by state)
0 2000 4000 6000 8000 10000 12000 14000 16000
US STATES RANKED BY SHARE OF US BASED
PRIVATE CYBERSECURITY COMPANY FUNDING
Key Observations
1. California-based companies have 1/3 of all
funding disclosed.
2. Virginia and Maryland have a combined total of
13%, and 8 companies over $50M in disclosed
CA funding
Notes
• CB Insights, as of 9/21/2017.
VA
MD
Copyright © 2018 Accenture. All rights reserved. Source: CB Insights – Cybersecurity report 86
CYBERSECURITY DEMAND NATIONALLY
Job Postings per
Job Location
Metro Area 10,000 people
Postings Quotient Key Observations
employed
Washington-Arlington-Alexandria, DC-VA-MD-WV 1. D.C. leads in both number of job postings and
44,263 149 6.3
(MSA) location quotient, doubling its next competitor
New York-Newark-Jersey City, NY-NJ-PA (MSA) 21,972 25 1.1
Chicago-Naperville-Elgin, IL-IN-WI (MSA) 12,002 28 1.2
Los Angeles-Long Beach-Anaheim, CA (MSA) 11,435 20 0.9
Dallas-Fort Worth-Arlington, TX (MSA) 10,953 35 1.4
Atlanta-Sandy Springs-Roswell, GA (MSA) 9,600 41 1.7
San Francisco-Oakland-Hayward, CA (MSA) 9,597 44 1.9 Notes

Boston-Cambridge-Nashua, MA-NH (Metropolitan • Burning Glass Occupation classification (not
9,032 37 1.6
NECTA) NAICS)
• Location quotients show how concentrated
Baltimore-Columbia-Towson, MD (MSA) 8,996 71 3.0 demand is within a particular geography. US-
wide average demand equals 1.0; an LQ of 1.2,
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD for example, indicates 20% higher demand than
7,361 28 1.2 the US average (or 1.2 times the US
(MSA)
concentration).
DC METRO – TOP CYBERSECURITY SOFTWARE
SKILLS
Job Postings
LINUX 9,653
Key Observations
UNIX 5,762
SQL 4,964 1. LINUX, UNIX, SQL Microsoft Office, and JAVA
are listed most times in cybersecurity job
Microsoft Office 4,675
postings
JAVA 4,476 2. Advanced software programming skills (i.e.
VMware 4,351 Node.js, Ruby) are not currently in high demand
Python 4,254 in the field of cybersecurity
Oracle 3,981
Microsoft Excel 3,329
Splunk 2,903
PERL 2,853
Microsoft Windows 2,794
JavaScript 2,489
Microsoft Powerpoint 2,445 Notes
Windows Server 2,428
Microsoft Sharepoint 2,401 • Burning Glass Occupation classification (not
Red Hat Linux 2,369 NAICS)
Virtual Private Networking (VPN) 2,136 • Includes all cybersecurity jobs, not only top 10 in
demand
Microsoft Operating Systems 1,983
Extensible Markup Language (XML) 1,832
CYBERSECURITY JOB COUNTS BY STATE
35000 Key Observations

1. Cybersecurity job counts have risen on average
since 2013, but dipped slightly in 2017
30000 2. Majority of cyber jobs are in Virginia, not D.C.
25000
JOB POSTINGS
20000
Virginia
D.C.
Maryland
15000
West Virginia
10000 Notes
5000 NAICS)
• Includes states within Washington Metropolitan
Area
0
Y13 Y14 Y15 Y16 Y17
EASYPARK 2017 SMART CITIES INDEX – NORTH
AMERICAN CITIES
San Washington
Measures Boston Chicago Los Angeles New York Philadelphia
Francisco DC
Key Observations
Transportation & Mobility
1. DC performs high in Digitalization of Government
Smart Parking 8.01 8.53 9.31 7.13 8.79 9.05 8.27
and Car Sharing Services, compared to other US
Car Sharing Services 8.7 7.49 6.8 9.65 7.32 9.05 9.83
cities
Traffic 7.71 7.66 1.78 3.86 8.18 5.08 6.11
Public Transportation 7.21 2.13 1 3.61 4.63 3.43 2.13
2. DC performs lowest in 4G LTE, Internet Speed,
Sustainability Smartphone Penetration and Living Standard,
Clean Energy 3.6 3.6 3.6 3.6 3.6 3.6 3.6 compared to other US cities in top 100 Globally
Smart Building 5.15 5.15 5.15 5.15 5.15 5.15 5.15
Waste Disposal 4.26 4.26 4.26 4.26 4.26 4.26 4.26
Environment Protection 6.56 3.61 1.43 6.26 1.78 6.38 2.47
Governance
Citizen Participation 5.3 3.94 3.23 2.78 3.41 6.23 4.03
Digitalization of Government 6.97 5.33 5.07 7.58 6.45 6.59 8.96
Urban Planning 5.12 3.12 2.59 2.68 4.71 5.44 3.38
Education 10 9.65 9.74 9.48 9.13 5.67 9.57
Innovation Ecosystem
Business Ecosystem 10 9.48 9.48 9.31 9.22 9.91 9.83 Notes
Digitalization
4G LTE 6.06 5.89 6.49 6.74 6.31 7.91 5.29 • EasyPark Group 2017 Global Index.
Internet Speed 9.39 9.31 9.65 9.83 9.57 10 8.96 https://easyparkgroup.com/smart-cities-index/
Wi-Fi Hotspots 6.8 8.79 9.48 9.91 5.15 9.05 8.7
Smartphone Penetration 9.17 8.17 8.17 8.17 8.17 9.17 8.17
Living Standard 8.22 8.3 7.48 7.79 7.74 9.01 7.13

Expert Perception 9.3 7 7.9 8 7.5 9.1 8.2
Overall Global Ranking 5 36 46 24 35 7 28
Copyright © 2018 Accenture. All rights reserved. Source: EasyPark Group 2017 90
DETAILED
ANALYSIS
• Benefits of an Innovation District
• Benefits mapped to DC Economic Strategy
• Inclusive benefits of an Innovation District

CASE STUDIES
REVIEW OF INNOVATION DISTRICTS
Boston St. Louis Pittsburgh Philadelphia San Diego Barcelona
• Seaport Innovation • Cortex Innovation • Oakland innovation • University City • I.D.E.A. District • 22@Barcelona
District Community district innovation district innovation district
• 13,000 tech and
• 1000 Acre stretch on • 1.7 million square • 3% of the city’s land • 1.5 square mile district design jobs • 114,000 m2 of new
South Boston feet of new and area, 10% of in Center City green space
• Office Space,
Waterfront rehabilitated space residents and 29% of • Health, Computing and Housing, • 7,000 companies,
• $550 million of jobs
• Added over 5,000 Informatics, and Energy Restaurant, and businesses and
jobs and 200 startups investment and • 30% of PA’s focus Retail Development shops
to the Boston generating university R&D • Provides over 104,000 • Over 90,000 jobs
Economy • 4,200 tech-related output jobs (16% of the city’s • Housing, tech,
jobs • Inspired development total) office space,
• Over 250 companies of Uptown Eco restaurant and retail
Innovation District development
Copyright © 2018 Accenture. All rights reserved. Source: Intersector Project, Brookings Institute, Eco Innovation District, Smart Cities Dive, Cortex Innovation Community 92
TWO OVERARCHING GOALS FOR 2021
Grow a vibrant and • Grow the DC private sector economy by 20% to $100 billion
resilient economy (3.4% annually)
driven by private
sector expansion
• Reduce unemployment rate of African-Americans

Foster economic • Reduce unemployment rate of high school graduates without a
prosperity for all Bachelor’s degree
Washingtonians • Reduce unemployment of Wards 7 and 8
• Reduce unemployment levels below 10% across all segments
Copyright © 2018 Accenture. All rights reserved. Source: DMPED DC Economic Strategy 93
DIRECTLY ALIGNED ID Initiatives from DC Economic Strategy
BENEFITS
3. Coordinate business retention, expansion and attraction efforts
through a data-driven, public-private committee
8. Convene tech CEOs and thought leaders
13. Engage West Coast investors and entrepreneurs
16. Secure major conventions on topics that leverage DC’s
High
8 21 16 3 comparative advantages
20. Promote and advance health innovation
21. Connect entrepreneurs, inventors from federal labs, and
41 support providers to advance research commercialization
20 13 38 42 22. Expand on-ramps into technology career pathways through
coordinated internship
35. Create a resilience roadmap for DC
ID IMPACT
36. Engage with the Greater Washington Partnership and other

35 39 regional bodies
38. Make DC the global center of mobility technology and policy
36 22 39. Strengthen the social enterprise and impact economy
ecosystem
41. Become a global leader of smart city innovation through the
Council of Global City CIOs, Smart Gigabit Communities and the
Global Team Challenge (NIST)
42. Make DC the nation's first "Lighthouse City" by pioneering
Internet of Things and smart cities solutions
Key
Low
Business Environment
Funding
In Progress FY17-18 FY17-20 DC Identity & Promotion
Talent
Copyright © 2018 Accenture. All rights reserved. TIMELINE Space, Housing & Supports
94
CASE STUDIES
RISKS IN ESTABLISHING AN INNOVATION
DISTRICT
# Costs Case Studies
Philadelphia University City: Poverty rates in the three West Philadelphia zip codes that immediately surround
1 Poverty the district are persistently above 40%, median household incomes are below $20,000, and the unemployment
rate hovers around 15%, compared to about 7% in the city as a whole.
Boston Seaport: Lenders have issued only three residential mortgages to black buyers in the Seaport’s main
census tracts, out of 660 in the past decade. The population is 3% black and 89% white with a median
household income of nearly $133,000, the highest of any Boston ZIP code.
2 Inequity Pittsburgh Oakland: The district is adjacent to neighborhoods with systemic poverty and underemployment
(Hill District, Uptown, and Hazelwood, Homewood) but workforce programming is not being utilized in these
neighborhoods at high enough rates. Numerous training programs in Pittsburgh go unfilled as workers struggle
to make the transition from unemployment or underemployment, often in the low-wage service sector, to the
innovation economy.
Boston Seaport In the past decade, 9 % of the about 5,800 new units in the Seaport were designated for
Affordable
3 people with moderate incomes. A two-bedroom apartment in the Seaport can rent for more than $5,000 a
Housing month and cost more than $2 million to buy.
Copyright © 2018 Accenture. All rights reserved. Source: Boston Globe, Brookings, Virginia Tech 95
DETAILED
ANALYSIS
• Innovation Ecosystem Factors
• Gaps in DC’s Innovation Ecosystem
• Solutions to Innovation Ecosystem Gaps

FOUR CORE FACTORS TO INNOVATION

ECOSYSTEM
IE = T X C X R X I
rates and increases in collaboration via tech industry experience • Local government
the standard of living transfer • Industry R&D spend policies and regulations
high speed internet
connections, and
walkable urbanism
Copyright © 2018 Accenture. All rights reserved. X = factors are amplified through alignment 97
GAPS IN DC’S INNOVATION ECOSYSTEM
GAPS VARY ACROSS STARTUP MATURITY
Stages
1 2 3 4 5
Seed & Startup Growth & Expansion Maturity &
Development Establishment Potential Exit
Less “builders” means Ability to find talent with new technology

Easier to attract talent once company has expanded
Talent
it’s hard to test a stack experience is difficult (e.g. universities

concept matching new innovation skills)
Tech Executives and Product Managers are lacking
Increase number of proof of

DC start up community is small and hyper-competitive
Collisions
concept and tech transfer offices
Universities can collaborate more with

businesses
DC Investors invest more in business

Resources
Lack of entrepreneur mentors

models than ideas. Impacts the type of
startup that can be funded
SF & NY investors may lure DC-based firms away, as there are fewer
Series B and Series C VCs in the DC area
Lack of space for manufacturing

DC does not have an established and production
brand outside of federal government
Impact
to attract entrepreneurs Growing companies may leave DC for lack of resources
Cost to incorporate and DC taxes are high. MD and VA provide additional incentives for
entrepreneurs.
Copyright © 2018 Accenture. All rights reserved. Source: The Five Stages Of Your Business Lifecycle: Which Phase Are You In?, Entrepreneur.com 98
TALENT
BUILDERS
DC has a high rate of undergraduate and Increase understanding of innovation to equip students with the skills
advanced degrees to match market demand
abundant skills
Bachelor’s degree or post graduate degrees are STEM +80,500 SF Bay Area, CA
2 2 2
US: 31.3% US: 12% US: 31% DC BOS NY
+22,200 Seattle, WA
+20,600 Atlanta, GA
8 8 8 +14,700 Houston, TX
+13,500 New York, NY

10 +7,100 Portland, OR
3 +5,500 Austin, TX
Tech Degree Growth LA SF +4,300 Chicago, IL
Market (MSA) Completions (2011- 7 +3,500 Denver, CO
(2015) 2015)
+2,600 Richmond, VA
New York City 14,419 38% +2,000 San Diego, CA
-2,000 Columbus, OH
-2,700 St. Louis, MO
-3,000 Phoenix, AZ
“The answer to all questions is -3,300 Philadelphia, PA
Los Angeles 10,632 27% talent” -5,700 Rochester, NY
–DC Serial Entrepreneur -9,700 Pittsburgh, PA
Chicago 7,866 16% -12,900 Los Angeles, CA
-16,400 Washington,
Boston 7,507 41% D.C. -19,600 Boston, MA
Copyright © 2018 Accenture. All rights reserved. Source: “2017 Scoring Tech Talent”, CBRE; LinkedIn Workforce Report, November 2017 99
TALENT
ABUNDANT VS SCARCE SKILLS IN DC METRO
Key Observations
1. The most abundant skills in the DC metro area
can be found in federal government
2. The most scarce skills in DC do not reflect
Notes
• https://www.linkedin.com/jobs/blog/linkedin-
workforce-report-november-2017-washington-dc

TALENT
ABUNDANT SKILLS VS OTHER AREAS
Key Observations
1. asdf
Notes
• https://www.linkedin.com/jobs/blog/linkedin-
workforce-report-november-2017-washington-dc

TALENT
DC METRO SKILL CLUSTER PROJECTIONS
Skill Cluster Projections Key Observations
Customer and Client Support: Basic Customer Service 1. 28% of top skill clusters projected to grow
Business: Project Management
“Much Faster” in the next 2 years are in the field
of Information Technology
Sales: General Sales
2. Cybersecurity is the IT cluster with the most job
Media and Writing: Writing
postings requested and project growth,
Information Technology: Cybersecurity suggesting a comparative advantage
Finance: General Accounting
Information Technology: JavaScript and jQuery
Skill Clusters
Finance: Billing and Invoicing

Information Technology: Cloud Solutions
Information Technology: Big Data
Business: Risk Management
Health Care: Advanced Patient Care
Sales: Merchandising
Human Resources: Employee Training
Notes
Information Technology: Software Quality Assurance • Includes skill clusters that are projected to grow
Sales: Company Product and Service Knowledge “Much Faster” in the next 2 years based on Burning
Personal Care and Services: Food and Beverage Service
Glass projection methodology
• Projections combine econometric time series models
Public Safety and National Security: Government Clearance and…
with machine learning approaches to predict the
0 20 40 60 80 100 120 growth in job posting demand for skills. This report
Thousands shows a 2 year projected change in demand
comparing September – November in 2016 to the
Postings Requested equivalent periods in 2018.

COLLISIONS
HYPER COMPETITION ACROSS SECTORS AND
BETWEEN STAKEHOLDERS
High concentration of Innovation Ecosystem Develop intentional space and create incentives for cross-sector collaboration
Stakeholders
Innovation Cultivator Type Landscape, in DC Metro
"We're up to the challenge
24 universities 6
of making government
more innovative but we've
120+ co-working spaces never been asked. We
don't know who to talk to.
We’re too small to have a
150+ tech companies 1 team dedicated to winning
government contracts. "
35 of Inc 500’s Fastest Growing
- DC Medium Size Business
Companies Proof of Concept Center Tech Transfer
Home of federal government and Gaps in collaborative efforts

agencies Government & Corporations & Startups &
183 Chanceries of foreign Private Sector Startups Universities
governments • Public Private • Incentives for joint • Training and instruction
Partnerships proposals for opportunities
Global hub for nonprofits, • Equitable government contracts • Curriculum
philanthropies, and NGOs (IMF, government funding • Fluidity of talent development and
• Fluidity of talent exchange alignment
World Bank, IDB, etc.) exchange
Copyright © 2018 Accenture. All rights reserved. Source: Fosterly, DMPED.dc.gov 103
RESOURCES
LIMITED RESOURCES FOR PRE-REVENUE AND
SMALL/MEDIUM BUSINESSES
Access to capital for companies with solid Increase access to local resources for pre-revenue and small to medium
business cases businesses
Resources Available in DC Metro Investor Location by Funding Round for DC Metro Companies
Percent of Deals Virginia
8 17 DMV Funding
43% Seed
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% DC
Maryland
Incubators Accelerators California
29% Series A New York
International
28% Series B
Massachusett
Series C s
28% Pennsylvania
Total R&D Spend by DMV Performers
Federal FFRDCs Non-Profit
“People will move across There aren’t enough mentors in

the border to Maryland DC who have done this before
because it costs less to and aren’t just preaching what
52% 14% 14% incorporate a company.” they read in a book.
– DC Entrepreneur Advocate – DC Serial Entrepreneur

National = $34 Bn National = $18 Bn National = $6 Bn
DC Maryland Virginia Other

Copyright © 2018 Accenture. All rights reserved. Source: National Science Foundation; Fosterly Entrepreneur Survey; CB Insights 104
RESOURCES
FUNDING OF DC METRO STARTUPS IS PRIMARILY
FROM OUT OF REGION INVESTORS
100% Key Observations
1. In Seed round funding, 42% of deals comes from
90%
Investors in DMV states
2. After Seed round funding, less than 30% of deals
80% comes from investors in DMV states
3. California provides ~20% of deals come from
investors in California in Series A thru C rounds
70%
Individual
Percent of Round Deals
Other
60% Pennsylvania
Massachusetts
50% International
New York
40% California
Maryland
DC Notes
30%
Virginia
• Includes all deals from 2012 to 2016, with
companies located within 25 miles of
20%
Washington DC
• Other includes states or no specified location
10% • One round of funding may have multiple
investors
0%
Seed Series A Series B Series C


Thousands
1.7 3.4 1.3 1.6 1.7

Makers
90
70
Data Systems
60 1.4 2.6 1.2 1.4 3.1
Developers
Job Postings
50
Data Analysts 1.7 3.5 1.2 1.7 2.1
40
2.4 7.2 1.1 1.3 3.3
Advanced Analysts
20 1ST
2ND
0
DC
11.7% 50% 39%
DSA Occupation Categories
By 2020… Increase in Projected increase
CAGR for worldwide
revenues for Big demand for data in demand for Data
Data-Driven Decision Makers Functional Analysts
Data Systems Developers Data Analysts
Data Scientists & Advanced Analysts Analytics Managers Occupations
IMPACT
STUNTED INNOVATION ECOSYSTEM FEEDBACK
LOOP
Attracts people who want to make a positive Create incentives for SMB business to start a company and stay through
impact and are mission-driven expansion and growth
Attracting international people State Local
Area
Income Tax Income Tax
73k people move

to DC Metro from
aboard. Net
Washington DC
Montgomery
8.50%
4.75% 3.2%
--
B
grade on the
Prince George’s 4.75% 3.2%
migration to DC Thumbtack.com
Metro would be Fairfax 5.75% -- national 2016 Small
negative, otherwise. Arlington 5.75% -- Business
Loudoun 5.75% --
Friendliness Survey
Prince William 5.75% --

Mission-driven people and startups
69% 41% “Investors will set up

their companies in
“There is a drop in
support for
“There is no space for
my company to grow
of DC startups self- of DC startups consider and continue
Virginia or Maryland companies once they
identify as a “double- their business to be in
bottom line” business social impact because of the become a medium- manufacturing in D.C.”
favorable tax code” sized company.” –DC Entrepreneur of Mid-
– Serial DC Entrepreneur – Serial DC Entrepreneur Size Company
Copyright © 2018 Accenture. All rights reserved. Source: Fosterly, WDCEP, DMPED 107
IMPACT
DC WORKFORCE MIGRATION PATTERNS
Key Observations
1. Cities with the most migration to DC are in the
northeast and southeast
2. Where as DC metro workers migrate to west
coast cities
Notes
• LinkedIn Workforce Report, November 2017

IMPACT
OVERALL MIGRATION
Key Observations
1. Washington, D.C. has the most gross migration
(gains + losses) with New York City, NY. So for
every 10,000 LinkedIn members in Washington,
D.C., 60.53 workers either moved to or from
New York City, NY in the last year.
Notes
• LinkedIn Workforce Report, November 2017
Copyright © 2018 Accenture. All rights reserved. Source: LinkedIn 109

IMPACT
LACK OF AFFORDABLE LIVING OPTIONS
Key Observations
140 $5,000 1. DC is the 3rd most expensive city in the US,
Thousands
$4,650 $4,600 which may impact ability to relocate to DC for a

Annual Mean Wage, Computer & Math Occupations
$4,500 position that does not have a high wage
Median Two-Bedroom Apartment Rent

120
2. SF and NY have the highest median two-
$4,000
bedroom apartment rent
100 $3,500
$3,120
$2,950
$3,000
80 $2,670 $2,630
$2,250 $2,500
60 $2,020
$1,800 $2,000
$1,650 $1,580
$1,500
40 $1,500
$1,000
20
$500 Notes
0 $0 • Pitchbook’s VC Analysis, 2017
Copyright © 2018 Accenture. All rights reserved. Source: PitchBook VC Analysis 110
GAP ANALYSIS
CHICKEN OR THE EGG? GAPS, ROOT CAUSES, AND
POTENTIAL SOLUTIONS
GAPS ROOT CAUSES POTENTIAL SOLUTIONS
1. Attract commercial anchor aligned with innovation district
T
Strong talent pool Low innovation talent focus
T I C R 2. Establish and promote DC Brand to attract and retain talent
but not enough retention
through focus of innovation district and local art and culture
builders
3. Create incentives for collaboration via government contracts
Lack of support for (i.e. additional points for joint proposals)
cross-sector talent 4. Build out geographic location to create density of
C
Hyper competition T C I
and knowledge stakeholders across sectors
across sectors and 5. Establish programs and collaborative efforts between
exchange
between stakeholders across sectors to activate innovation district
stakeholders
Weak entrepreneurial 6. Develop strong academic anchor institution aligned with
culture in universities T I innovation district focus
R
Limited resources 7. Expand existing pool of funding sources by recruiting
for pre-revenue Risk averse funding C R I incubators, accelerators and businesses aligned with
and small/medium sources innovation district focus
businesses 8. Shift culture of risk averse DC investor
R I 9. Establish intentional mentorship programs to incentivize

Lack of mentors collaboration and knowledge sharing
I
Stunted innovation
ecosystem R I 10. Institute tax and policy incentives to offset costs for pre-
Unfriendly business revenue and small-medium businesses
feedback loop 11. Institute tax and policy incentives to encourage businesses
environment
Innovation District Solutions
POTENTIAL SOLUTIONS
IMPLEMENTATION CONSIDERATIONS
POTENTIAL SOLUTIONS
Difficult 8 2 1 1. Attract commercial anchor aligned with innovation district
focus
2. Establish and promote DC Brand to attract and retain talent
6 4 through focus of innovation district and local art and culture
3 7 3. Create incentives for collaboration via government contracts
(i.e. additional points for joint proposals)
Ease of Implementation
4. Develop geographic location to create density of

stakeholders across sectors
5. Establish programs and collaborative efforts between
stakeholders across sectors to activate innovation district
6. Develop strong academic anchor institution aligned with
innovation district focus
7. Expand existing pool of funding sources by recruiting
5 incubators, accelerators and businesses aligned with
11 innovation district focus
8. Shift culture of risk averse DC investor
9. Establish intentional mentorship programs to incentivize
collaboration and knowledge sharing
9 10 10. Institute tax and policy incentives to offset costs for pre-
revenue and small-medium businesses
11. Institute tax and policy incentives to encourage businesses
Easy
Low Impact High
Innovation District Solutions 112

Copyright © 2018 Accenture. All rights reserved.
DETAILED
ANALYSIS
• Cornell Tech Model Comparison
• Considerations for Building a ID

CASE STUDY
CORNELL TECH MODEL OVERVIEW
In order to understand whether the Cornell Tech Model is a relevant case study in the context of
developing a DC Innovation District, some key drivers must be established. The key drivers which
successfully embedded the Cornell Tech Model include the following:
University Partnership
Early Private Sector Investment
Investment in Developing Physical Assets
Public and Private Philanthropic Funding
Political Buy-In and Influence
Copyright © 2018 Accenture. All rights reserved. Source: construction.tech.cornell.edu 114

CASE STUDY
WHY ROOSEVELT ISLAND?
The Cornell Tech Request for Proposal (RFP) received 28 University applicants from across the country.
According to qualitative analysis, the following four key factors that incentivized top universities to submit
proposals:
New York Real Estate Proximity to Bloomberg Roosevelt Island Finalists

• Highly coveted free land in financial capitol • Prestige of Bloomberg name
• 12 acres of dedicated indoor/outdoor space • Funding from philanthropy
• New, energy-efficient structures • Powerful network cross sector
Cornell Tech
28 University
Applicants Stanford
University
NYC Startup Culture Recyclable Talent Pool

• High energy, diverse talent pool • Number of CEOs
Massachusetts
• Unique spaces dedicated to innovation (i.e. • High density of top universities Institute of
DUMBO neighborhood in Brooklyn) • High density of business and tech acumen Technology
• Intersection of art, business, and tech (Google, Facebook, etc.)

CASE STUDY
CORNELL TECH MODEL COMPARISON
Cornell Tech is a new model for graduate education that is committed to developing pioneering leaders and technologies for the
digital age. Key incentives and drivers were analyzed to determine the relevance of the Cornell Tech Model as a case study for the
development of a DC Innovation District.
28 universities bid on Roosevelt Island for But Cornell Tech won due to the alignment of 5
its distinct incentives… key drivers
Potential D.C. Potential D.C.
Incentive Cornell Tech Driver Cornell Tech
Equivalent Equivalent
Cornell-Technion University of Maryland
Free Prime University
Roosevelt Island Amazon proposal sites Consortium University of Virginia
Real Estate Partnership Partnership Virginia Tech
Connection to Mayor Bloomberg Early Private Verizon Cisco, Facebook, IBM

philanthropic and Bloomberg TBD Sector Partnership Google and Lyft
funding Philanthropies
Investment in Bloomberg Center
Verizon Education Clark Enterprises
Mission-driven culture Developing Center JBG Smith
Proximity to NYC/Brooklyn (Federal agencies, Physical Assets The Bridge
unique startup (DUMBO regulated industries,
Public and Private Bloomberg
culture neighborhood) nonprofits, international
Philanthropies
community) Philanthropic TBD
$300 million in
Funding philanthropic donations
Access to Support at all levels of
Mayor Bowser
Business and U.S. capital city and Political Buy-In Secretary Skorton
recyclable Finance capital international hub government (borough,
talent pool and Influence Maryland Governor
city, state, and federal)
Virginia Governor
NEXT STEPS AND RECOMMENDATIONS
CONSIDERATIONS FOR BUILDING
Identify Persona of DC Determine Inclusive Establish & Promote
Entrepreneur Opportunity D.C.’s Brand
• 93% of DC entrepreneurs have a • Middle skills occupations

Bachelors or above • Vocational and technical • Industry cluster focus
• Top home states: programs o Cybersecurity and Data
o MD (19.5%) o McKinley Tech Science
o VA (18.3%) o UDC • D.C.’s identity outside of being
o DC (13.9%) • Affordable housing the Federal City
o International (13.9%) • Geographic location o “Do good and do well”
• 73% founders started companies o Amazon proposal sites • Local arts and culture
30 years or older
• 48% women/minority owned
Copyright © 2018 Accenture. All rights reserved. Source: Fosterly Startup Survey 117
BUILDING AN INNOVATION DISTRICT
INNOVATION DISTRICT FOCUS
Prescriptive Agnostic
Industry Focus
Prescriptiv
Considerations
e
Cybersecurity
• Technology clusters are macro level
Data Science
changes that may evolve over the
course of years to decades.
Cluster Focus
• Industries are more permanent, but

will adopt technology clusters as they
+ Social Enterprise
continue to evolve.
• An innovation district should not be too
perspective in its cluster and industry
+ Artificial focus, as this may unintentionally deter
groups that are looking to migrate
Agnostic
Intelligence
+ Ed Tech
+ Healthcare + Retail
Hospitality + Civic Tech + Biotech
Copyright © 2018 Accenture. All rights reserved. Source: CB Insights; 2015 US News & World Report Ranking; Statista.com 118
NEXT STEPS & RECOMMENDATIONS
BUILDING AN INNOVATION DISTRICT (ID)
MANAGE EXPERIENCE for value
INFORM FORMULATE FREEFORM TRANSFORM OUTPERFORM

DISCOVER DESCRIBE CO-CREATE SCALE SUSTAIN
with insight with impact with agility with excellence with improvement
DISCOVER DC’S ECONOMIC STRENGTHS DESCRIBE STRATEGY TO BUILD AN ID

Recommendation Considerations Recommendation Considerations
Don’t be too • A cluster-led approach will allow for a more agile ID Form governing • A diverse inclusive governing body (across age,
1 prescriptive in • Cybersecurity and data science have strong
1 body that race, gender, startups, and perspectives) will help
comparative advantages and estimated growth build shared value
industry vs cluster represents all
focus • Personas will vary by industry and cluster stakeholders
Establish diverse • Partnerships will depend on ID’s focus area Define North Star • Establish vision for the ID, including principles for
2 partners across • Long-term diversity in partnerships will increase
2 for ID diversity, flexibility, mobility, and sociability
academic, gov’t, innovation potential • Articulate outcomes and desired experiences for
• ID is one vehicle to enable DC’s economic key stakeholders
corporations, and
strategies
entrepreneurs
Map agile path • Incorporate lean methodologies into testing ID
3 forward to test ID concepts
components • Instill culture of failing-fast
Develop metrics to • Incorporate leading and lagging indictors to create

4 understand early and measure value at each step
success
APPENDIX

DEFINITIONS
Term Definition Term Definition
Accelerator A venture or program that promotes and aids the rapid growth of selected new Middle skills Jobs those that require more education and training than a high school diploma
existing small businesses that already have an idea and business model in place. occupations but less than a four-year college degree.
Anchor Established academic or commercial institutions that serve as nuclei for innovation Proof of Accelerates the commercialization of innovations out of the university and into the
Institution districts, participating heavily in the innovation ecosystem through employment, Concept marketplace. It does this by providing seed funding to novel, early-stage research
workforce development, resources, and partnerships. Center that most often would not be funded by any other conventional sources. POCCs
Data Science The analysis of data to uncover patterns that provide business insights, such as facilitate and foster the exchange of ideas between the university innovators and
customer preferences or market trends. industry via various mentors associated with the center.
Expansion Stage in startup lifecycle when business becomes routine-like in operations and Seed and “Friends and family stage” or the beginning of the business lifecycle, before your
stage the challenge lies in managing growth, including expanding offerings, entering new Development startup is even officially in existence, when entrepreneurs garner advice and
geographies, and rapid growth in revenue and cash flow. stage opinion as to the potential of their business idea from as many sources as
Growth and Stage in startup lifecycle when startups begin generating a consistent source of possible: friends, family, colleagues, business associates, or any industry
Establishme income and regularly taking on new customers. Cash flow starts to improve as specialists you may have access to.
nt stage recurring revenues help to cover ongoing expenses, and profits improve slowly Smart city A city that incorporates information and communication technologies (ICT) to
and steadily. Demands also increase in expanding workforce, tracking enhance the quality and performance of urban services such as energy,
competition, and managing revenue. transportation and utilities in order to reduce resource consumption, wastage and
Incubator An organization or place that aids the development of new business ventures overall costs. The overarching aim of a smart city is to enhance the quality of
entering the Seed or Series A funding stages, especially by providing low-cost living for its citizens through smart technology.
commercial space, management assistance, or shared services. Social Organizations that address a basic unmet need or solve a social problem through
Innovation Geographic areas where leading-edge anchor institutions and companies cluster Enterprise a market-driven approach.
District and connect with start-ups, business incubators, and accelerators. Usually Startup stage Riskiest, most iterative stage of a company’s growth involving the official launch of
physically compact, transit-accessible, technically-wired and offer mixed use the startup and initial consumer feedback.
housing, office, and retail. Brookings defines this as a combination of economic, Tech A dedicated space for the process of transferring (disseminating) technology from
physical and networking assets. Transfer the places and ingroups of its origination to wider distribution among more people
Innovation Synergistic relationship between people, firms, and place (the physical geography center and places. Transfer can occur along various axes: among universities, from
Ecosystem of the district) that facilitates idea generation and accelerates commercialization. universities to businesses, from large businesses to smaller ones, from
Location Location quotients show how concentrated demand is within a particular governments to businesses, and across borders. Often it occurs by concerted
Quotient geography. US-wide average demand equals 1.0; an LQ of 1.2, for example, effort to share skills, knowledge, technologies, methods of manufacturing,
indicates 20% higher demand than the US average (or 1.2 times the US samples of manufacturing, and facilities among governments or universities and
concentration). other institutions to ensure that scientific and technological developments are
Maturity and Stage in startup lifecycle when the business experiences stable profits year-to- accessible to a wider range of users who can then further develop and exploit the
Potential Exit year, growth rates flatten, and the company often faces the choice of further technology into new products, processes, applications, materials, or services.
stage expansion or exit. This stage is also marked by turnover in leadership to address
new challenges.

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Copyright © 2018 Accenture. All rights reserved. 2

Conduct 20+ Visit 3 Study 7 Other Perform Data

3 Identify Gaps in DC’s Innovation

4 Building an Inclusive Innovation

Copyright © 2018 Accenture. All rights reserved. 3

ECONOMIC MEASURES HAVE WIDE

Innovation Index 2.0: DC Metro vs National Unemployment by DC Ward, 2011 to 2016

Human Capital & Knowledge Creation

Employment and Productivity

DC’S ECONOMIC STRENGTHS

Copyright © 2018 Accenture. All rights reserved. 5

US News Ranking QS World University Ranking Pitch Book Ranking

Undergrad Undergrad Undergrad R&D

MIT 1 N/A 1 1 1 3 7 946 14,800

Comparative Impact on DC Measure Description

Civic Tech Med High TBD Med

Ed Tech Med Low Med High

Healthcare Low High High High

Hospitality High Low Med Med

Copyright © 2018 Accenture. All rights reserved. Source: Accenture Analysis 7

DSA Job Postings by MSA, 2016 DSA Location Quotients by MSA

1.7 3.4 1.3 1.6 1.7

Chicagoland 12,002 LQ 1.2

Most of those job postings are located in Virginia, not

Job Postings, by State (2013 – 2017 YTD)

33% 18% 11%

Copyright © 2018 Accenture. All rights reserved. Source: GIIN Survey 10

Increase in Accessibility Infrastructural Improvement

Positive Wage Impact Stronger Educational Attainment

36. Engage with the Greater Washington Partnership and other

FOUR CORE FACTORS TO INNOVATION

1. Attract commercial anchor aligned with innovation district

R I 9. Establish intentional mentorship programs to incentivize

4. Develop geographic location to create density of

Low Impact High

Innovation District Solutions 15

57% 25% 41% Tech-related skills out of top 10 most

Brain Drain or Gain?

Copyright © 2018 Accenture. All rights reserved. Source: CBRE; LinkedIn 16

Connection to Mayor Bloomberg Early Private Verizon Cisco, Facebook, IBM

INFORM FORMULATE FREEFORM TRANSFORM OUTPERFORM

DISCOVER DC’S ECONOMIC STRENGTHS DESCRIBE STRATEGY TO BUILD AN ID

Develop metrics to • Incorporate leading and lagging indictors to create

Virginia Tech School of Dean Julia TBD

Copyright © 2018 Accenture. All rights reserved. 19

Copyright © 2018 Accenture. All rights reserved. 20

New York 12.2%

Virginia 1.9% UMD (1)

NYC/NJ 21,972 LQ 1.1

Most of those job postings are located in Virginia, not

Job Postings, by State (2013 – 2017 YTD)

DSA Job Postings by MSA, 2016 DSA Location Quotients by MSA

1.7 3.4 1.3 1.6 1.7

33% 18% 11%

Copyright © 2018 Accenture. All rights reserved. Source: GIIN Survey 24

4 San Diego 1.00 LA 1

0.00 …but the market is continuing to

in EasyPark Groups 2017 Global Cities

Global smart cities market is projected to by 23%

$1,202 Bn 4G LTE Waste Disposal

23% CAGR Growth Business Ecosystem Environment Protection

by 2022 Education Citizen Participation