Puerto Rico as a Key Player: A Conversation with Rodrick Miller, Chief Executive Officer of Invest Puerto Rico
Rodrick Miller comes to Invest Puerto Rico after leading Ascendant Global, an economic development firm focused on providing bold growth solutions to help economies sustain themselves and gain jobs and private investment. Before that, he was President and CEO of the Detroit Economic Growth Corporation, the public-private partnership charged with leading the economic revitalization of the city of Detroit.
Miller also served as the founding president and CEO of the New Orleans Business Alliance, the official economic development organization for the City of New Orleans. As the leader on economic recovery, Miller focused the organization’s efforts on lowering barriers to entry in the marketplace, increasing transparency, and developing approaches to drive inclusive economic growth.
With numerous accolades under his belt, Miller is one of the foremost economic development leaders in the country, respected for his ability to maneuver in complex political and business environments, and craft strategies and structure deals to provide long-term value to communities and investors. He holds a Master of Public Policy from Harvard University’s Kennedy School of Government and a Bachelor of Science degree in international business from St. Augustine’s College. He is also a Fulbright Fellow.
Kavya Chandran (BT): It’s an amazing and unique job that you have as CEO of Invest Puerto Rico. Could you explain what your journey has been like from undergrad to your current position and how that has informed your work in attracting investment to the island?
Rod Miller (RM): In my undergraduate years, I studied abroad in Mexico and Spain. I started off my career knowing that I didn’t want to work in government, but I knew I wanted to impact outcomes. I began working in management consulting and became disillusioned with the work, so I decided to move to Phoenix, Arizona to take my first job in economic development. It addressed the full range of my interests. Initially I worked at the municipal level, and then I eventually worked my way up to leading strategy for Phoenix and worked on designing incentive packages.
After 5 to 6 years I took a job in Baton Rouge, Louisiana when I got a call that my name had been tossed around to lead the economic recovery of New Orleans. We were able to not only shift the economic development agency towards a public-private model, but we were also able to really focus on issues of economic inclusion which had not been something that was historically important there. We really tried to elevate the importance of building an inclusive economy where all kinds of people and segments of the economy could participate in economic growth. Afterwards, I was recruited to Detroit to serve as CEO of the Detroit Economic Growth Corporation. Efforts in Detroit were really centered around how do you create buzz, momentum, and excitement. A lot of that had to do with entrepreneurs and areas of the city that had been abandoned but represented a tremendous growth opportunity. We also wanted to build on the history of the city as a great manufacturing town.
A few years later, I decided to launch my own firm, Ascendant Global. That was a great step because I got to apply my experience in helping other municipalities and regions around the globe. For example, I worked with the city of Atlanta to help insure that businesses owned by people of color had access to commercial real estate investment opportunities.
“I would argue that this is the most exciting opportunity I’ve had because it is a jurisdiction that is in the United States but very different from the mainland. It’s Latin American as well as Caribbean from a cultural perspective. It is also interesting because Puerto Rico has a history of being an interface between different markets. The more that we can leverage those cultural relationships and the diaspora to help tell our story, the better. ”
Finally, a year ago I moved to Puerto Rico to help set up Invest Puerto Rico. I would argue that this is the most exciting opportunity I’ve had because it is a jurisdiction that is in the United States but very different from the mainland. It’s Latin American as well as Caribbean from a cultural perspective. It is also interesting because Puerto Rico has a history of being an interface between different markets. The more that we can leverage those cultural relationships and the diaspora to help tell our story, the better. One other point that I’ll mention is 48% of our economy is manufacturing and half of that is manufacturing pharmaceuticals and medical devices. rom that perspective, we know that COVID-19 has highlighted some of the challenges and gaps in the US supply chain, and we are optimistic that Puerto Rico can be one of the solutions to help figure out how to turn the global economy around and provide access to quality medical devices and pharmaceuticals for American companies.
BT: It sounds like you have had a really exciting and inspiring career. You just mentioned that one of the main focuses in Puerto Rico is manufacturing pharmaceuticals. On March 16th, Forbes wrote an article titled “Puerto Rico Can Help the US End its Dependence on Chinese Pharmaceutical Ingredients”. Many companies around the world are re-examining their supply chains in light of coronavirus. How has your team tried to attract pharmaceutical companies to the island?
“Companies have a rich history of working with the island which means that we don’t have to face the learning curve in terms of figuring out how to properly manufacture pharmaceuticals.”
RM: A huge part of Puerto Rico’s value proposition is the size of our pharmaceutical industry. We have twice the number of exports in that sector compared to the next closest state which is Indiana. In addition, 14 out of 20 of the top pharmaceutical companies in the world have a presence in Puerto Rico. 90% of the world's pacemakers are made here. It is an advantage that this is not a new proposition for us. Companies have a rich history of working with the island which means that we don’t have to face the learning curve in terms of figuring out how to properly manufacture pharmaceuticals.
Another big part of the value proposition is the competitive incentive environment. It’s not as aggressive as it once was, but it’s still more aggressive than most places on the mainland. We’ve also got a workforce that not only is experienced with pharmaceuticals but also is bilingual. Our strategic location in the Caribbean also facilitates easy access to the US, Europe and Latin America. All of those things make a very compelling story for why the pharmaceutical sector should consider Puerto Rico.
BT: Another really important point for Puerto Rico is the $777 million stimulus package that the island’s government passed to help speed the recovery effort. Could you speak a little bit about that given your experience in economic development and what its impact will be with regards to small business or low-income Puerto Rican families?
RM: The stimulus is absolutely critical when we think about where the economy is now and how to push it forward. Today, people are trying to figure out how to make ends meet, pay their rent, and provide for their families. Without this shot in the arm, it becomes very difficult for people to sustain themselves in the near term.
Small businesses are the lifeblood of the economy, and in Puerto Rico, they are more resilient than their counterparts in other markets. After natural disasters generally 40% of small businesses close and never open again. However, after Hurricanes Maria and Irma in Puerto Rico, only 10% of small businesses didn’t open back up. The stimulus package will be very important in providing cover for small businesses to allow them to open back up, pay employees, and begin work again. There are critiques in terms of levels of investment and who will be able to access them, but there will always be those critiques. Overall, the stimulus is an essential piece of what’s needed to help stabilize the market while we figure out how to pivot.
Also, we’ve got a great pivot. In Puerto Rico, the pivot is not just towards the pharmaceutical industry. Another big part of our pivot is remote working opportunities. We rolled out a promotional plan in December to specifically focus on Knowledge Services (IT, software, business services, financial services), and we’ve been having a number of conversations with companies in Silicon Valley and New York. Universally, they have said “wow we didn’t know Puerto Rico was such a great option for our workers”, so we are working to create a hub of talent here for people who want to work remotely and bring manufacturing back at the same time.
BT: Thinking more long term, entrepreneurship is a key driver of economic growth, and many of the US’s most successful startups- Uber, Airbnb, Dropbox- came out of the Global Financial Crisis in 2009. How do you think the start-up landscape will change in Puerto Rico a few years from now?
RM: The startup landscape in Puerto Rico is fairly early in terms of development, but it’s much more coordinated and nimble than others that I have seen. As we grow our entrepreneurial base, I think Puerto Rico will become known as the startup island. We have a level of access to investors, decision-makers, and companies that’s very difficult to replicate in other places.
“Pharmaceuticals, medical devices, healthcare, and insurance will become important and see lots of innovation. Puerto Rico will be a key player. There will also be broad innovation in environmental technology.”
Another thing to note is that because of COVID-19, there will be increased investment in certain sectors as well as the creation of some new ones. Pharmaceuticals, medical devices, healthcare, and insurance will become important and see lots of innovation. Puerto Rico will be a key player. There will also be broad innovation in environmental technology. People are going to be more concerned about how to stay healthy and protect the air.
BT: Lastly, do you have any advice for students or professionals who aspire to work in economic development?
RM: I love this field, and there's never a dull moment. It’s consistently changing. First, I would say economic development is an interdisciplinary practice, so the more exposure people have to different fields, the better they will get at economic development. Second, economic development is something that comes with a strong moral obligation. Decisions economic developers make determine who will have access to opportunities. For those who are thinking about the field, that’s an incredibly heavy but important burden. The last thing is that you must be open to living in and moving to different parts of the world. That’s what will really help you grow. The best economic developers have experience in different markets and countries around the globe.