Hartford Business Journal

10 HARTFORDBUSINESS.COM | FEBRUARY 5, 2024 Daniel O'Keefe, commissioner-designate of the state Department of Economic and Community Development, at his downtown Hartford office. HBJ PHOTO | STEVE LASCHEVER Upward Trajectory New DECD chief O'Keefe: Post-pandemic trends offer CT major growth opportunities Part of the answer could come from an agency consolidation plan O'Keefe and others are working to engineer. It would involve DECD absorbing CTNext, a quasi-public economic development agency created in 2016 to invest in and boost innovative startups capable of growing jobs. A request to fold CTNext's functions into DECD and form an Office of Inno- vation will go before state lawmakers in the coming session, O'Keefe said, noting that he sees continued growth opportunities for the life sciences industry in New Haven, fintechs in Stamford and insurtechs in Hartford. Before public employment, O'Keefe spent seven years at the helm of Apax Digital, a New York- based growth equity arm of global investment firm Apax. Before that, he was a general partner at TCV, a California-based technology investment firm. His interest in politics and policy is apparent in his new Hartford corner office within DECD's down- town Hartford headquarters, at 450 Columbus Blvd. O'Keefe's office decor includes framed photographs of the 49-year-old former business exec- utive posing with some of the top U.S. Democratic politicians of recent decades, including President Joe Biden, former Presidents Barack Obama and Bill Clinton, as well as former U.S. Sen. and Secretary of State Hillary Rodham Clinton. O'Keefe said he's been an enthu- siastic supporter of Democratic candidates for president, and has volunteered as a fundraiser for national campaigns since the late 1990s. Changing economic dynamic O'Keefe doesn't foresee a near- term reversal of a post-pandemic shift to remote work. It's a trend on which the state should capitalize. "I have a thesis that the pandemic rewrote certain rules in a way that benefits a state like Connecticut," he said. DANIEL O'KEEFE Commissioner-designate Department of Economic and Community Development Education: MBA, Harvard Business School; bachelor's degree, business economics, Brown University Age: 49 CT had 7th-fastest growing economy in 2022 Revised Bureau of Economic Analysis data showed Connecticut had among the fastest-growing economies in the U.S. in 2022. Here are the top-growing states from that year. STATE GDP growth Florida ......................................4.6% Idaho .........................................4.2% Tennessee ..............................3.9% Nevada .....................................3.4% Arizona .....................................3.2% Indiana ......................................3.1% Connecticut ...........................2.9% Source: U.S. Bureau of Economic Analysis By Michael Puffer mpuffer@hartfordbusiness.com D aniel O'Keefe, the former tech investment executive recently appointed acting commissioner of the state Depart- ment of Economic and Community Development, said recent popu- lation and economic gains have Connecticut poised for future growth. In O'Keefe's eyes, this upward trajectory has been fostered, at least in part, by the post-pandemic shift to remote work, which has given employees more latitude on where to live. That's grown the appeal of Connecti- cut's small cities and suburbs, he said. But, with Connecticut's projected budget surpluses shrinking, the state must capitalize on these tailwinds with existing programs and resources, O'Keefe said. In other words, don't expect any major new economic development programs with large price tags in the near future. For now, O'Keefe said, his role will be that of a steady hand on the wheel, confidently advocating for the state and its businesses while overseeing existing programs and incentives. "Priority one is just continuing the good work that is already ongoing," O'Keefe said in a recent interview with the Hartford Business Journal. "I think I am benefiting from a series of programs and a series of leaders that have set us up for success. And so, I think the first priority is, 'do no harm.'" O'Keefe was referencing Gov. Ned Lamont's first two DECD commissioners, David Lehman and Alexandra Daum, who spear- headed major changes to the state's economic development toolbox. That included creation of the $100 million CT Communities Challenge grant program, which invests in tran- sit-oriented development and other housing projects; and JobsCT, a rebate program that offers tax breaks to companies that reach certain job-creation targets. Innovation focus Lamont tapped O'Keefe for the commissioner role in December, after his predecessor, Daum, accepted a job managing a portion of Yale University's real estate portfolio. O'Keefe still needs confirma- tion by the General Assembly, which is expected to take up his appointment early in the upcoming legislative session. O'Keefe started with DECD in July, when he was appointed to the newly created role of chief innovation officer. He came to state service following his retirement from the private sector earlier in 2023. The DECD job offer stemmed from a lunch meeting with Lamont, arranged by a mutual friend. O'Keefe said he was considering a role at the federal level, but the governor convinced him to stay local, arguing it's where he could make a bigger difference. As the state's first-ever chief inno- vation officer, O'Keefe's job was to serve as an advocate for the innova- tion economy, focusing on economic growth, workforce development and job creation. For now, O'Keefe is keeping the chief innovation officer title, but he's looking for someone to fill that role.

• Cover