Leadership Spotlight: An Interview with Jerry Paytas, PhD, Vice President, Research & Analytics

As one of Fourth Economy’s co-founders, Jerry Paytas has been with the firm since its inception 15 years ago. Currently Vice President, he leads the team’s applied research and analytics to design innovative solutions that strengthen regional economies, business districts, and communities. He holds a PhD in Public and International Affairs from the University of Pittsburgh, and prior to co-founding Fourth Economy he ran the Center for Economic Development at Carnegie Mellon University.

We asked Jerry a few questions about his role and the history of Fourth Economy, how he balances research and practice, and what he’s excited to accomplish this year. We also asked the recent transplant to Southern California how he’s been spending his time exploring San Diego. 

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You are the Vice President of Fourth Economy. What does that entail? What does your work look like on any given day?

Most of my days are a mix of online meetings (as we have projects around the United States) with clients and project teams, mostly split with time spent developing proposals for new work, or conducting or reviewing analysis that has been done for a current project. That all changes when there is travel to a client site; the days become a mix of hours in the car, hours in community meetings, and hours working from whatever restaurant or coffee shop is relatively quiet with good wifi. 

You call yourself a “pracademic.” Why do you think it is important to bridge academic expertise and practical experience?

Academic research is too often concerned with issues disconnected from the daily decisions that practitioners have to make. They are not wrong or trivial, but they are often issues only for policy makers at higher levels. Practitioners, on the other hand, are often making decisions based on precedent or instinct and not always guided by evidence. Academics also tend to write for other academics and that technical language does not translate to a broad audience. At Fourth Economy, we always try to bring rigorous analysis to the practical problems clients are facing and deliver it in digestible, accessible formats. 

You have been with Fourth Economy since its founding 15 years ago. How has the field of economic development consulting evolved over that time, and what do you see as the next frontier for the coming decade?

1.0 The Startup Years (2010 to 2015, 0 to 5 employees)

When we launched there were still a lot of what we called “traditional” economic development firms that focused on how to recruit and attract firms that were relocating. We focused on innovation, entrepreneurship and growing your own economy. Initially most of our work was built from the founders’ networks, centered in Pennsylvania, Delaware, and Washington DC. We built what I would call a small, boutique firm doing innovative and creative work.

2.0 The Growth Years (2015-2020, 5 to 10 employees)

As we grew, more firms and more clients began to take that more expansive view of economic development. Both out of necessity, as well as our own curiosity, we expanded into new domains and issues, as well as new geographies. We always had a willingness to try new things, but we began to build more depth in more domains. Work was coming in, but we could never hire fast enough to keep up with natural turnover. 

3.0 The Steer Years (2021-2025)

The acquisition by Steer provided us with the resources to grow our staff. It also marked a significant shift in focus. As we hired more people from around the country, our staff embraced economic development from an inclusive and equitable perspective. This internal change was reinforced by the COVID-19 pandemic and the national conversation about racial justice following the murder of George Floyd. We began thinking more deeply and working more diligently on how the economy, culture, and health are intertwined. As many communities faced these challenges, we found a more open and receptive audience in economic development, which as a field had always held social service issues at arm’s length.

4.0 The Future Years (2025 - ?)

We were founded in 2010 during the Great Recession. Now that the COVID-19 crisis has passed, communities are struggling with the long-term effects it has wrought in terms of remote and hybrid work arrangements and shifting priorities among workers. The emergence of AI and Autonomous Vehicles, along with a volatile political climate and rising global tensions, has increased the uncertainty about what the future holds. At its core, our job every day is to help communities address the unpredictability of the future and make a plan to move forward. So that is what we will do. 

What do you hope to accomplish with Fourth Economy this year? 

I have had a big focus on building our networks and base of business in California. In October we finish our work with LA Metro to assess their Business Interruption Fund (our first solo California project). I am also looking for opportunities to align our work in affordable housing and economic development with Steer’s work in transit and transportation so that we can help communities provide affordable housing that is accessible to services, jobs, and amenities.  

You recently relocated from Pittsburgh to San Diego, California. How have you been taking advantage of Southern California’s spectacular weather?

Since our move to San Diego, we are getting plenty of outdoor time with bike rides along the coast and frequent visits to the beaches. In the summer, there are free concerts at Fletcher Cove and we have met a group that takes a bike ride to the concert then dinner afterward. We have explored a range of local hiking trails around southern California, kayaked La Jolla Cove, and have a trip planned to Joshua Tree this fall.