describing a collaborative regional economic development framework

8/8/2019 Describing a Collaborative Regional Economic Development Framework

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Describing a Collaborative

Regional Economic

Development Framework


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Module 1

Describing a CollaborativeRegional EconomicDevelopment Framework

Leading the Planning Effort

Detecting Regional Advantage

Formulating Strategies

Executing Your Plan

Module Objectives*Defining EconomicDevelopment

*Making the casefor regional planning

*Defining principlesfor regional planning

*Identifying & overcomingobstacles


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Objectives

I. Define and understand key aspects of economic

development

II. Make the case for conducting a regional strategy

in a globally competitive environment

III. Define principles for collaborative regional

economic development planning framework

IV. Identify mechanisms for overcoming obstacles tothe collaborative regional economic development

planningframework


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I.

Definition of EconomicDevelopment


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Defining Economic Development

Group Discussion

How do you define economic

development?

Why do you do economic development?

What is economic development success?

Whose behavior are we trying to influence? What would happen anyway?


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Conflicting Philosophies?

Economic development aims to accomplish sometimescontradictory goals

Create jobs

Create wealth

How we accomplish economic development involvesconflicting approaches that

Exploit our existing economic strengths

Create new economic strengths

Economic development that actually accomplishes

change must primarily engage The corporate, government, and academic leaders

Grassroots citizens and community organizations


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II.

Make the Case for Conducting aRegional Strategy in a Globally

Competitive Environment


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10 Mega-Trends

in the Global Economy!"Service has become (and will remain) the dominant

competitive differentiator in much of the economy

#"Knowledge-intensive activities have the highest value and

demand increasing knowledge, skills, and abilities$"Work is polarizing in which wages tend to reflect

knowledge, skills, and abilities

%"Outsourcing divides value-chain functions into moreproductive, interdependent activities

&"The workforce is aging and increasingly replacement talentmust come from elsewhere


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'"Job growth occurs as firms find (or re-find) economic value inthe marketplace

("Industrial transitions are happening more quickly as product lifecycles shorten

)"Reduced transportation and telecommunication costs contributeto the increased importance of logistics in meeting the

shortening timeframes allowed to move goods and information

*"Regions and communities are becoming more specialized and

connected to other non-contiguous places!+"Places are more frequently connecting to places with

complementary specializations

10 Mega-Trends

in the Global Economy (cont.)


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10 Mega-Trends for

Economic Developers!"Leaders continue to emphasize job creation as the ultimate goalfor economic development

#"Many public sector leaders still understand economicdevelopment strategies in the three waveswhich focus on

companies rather than industries$"Private leadership is changing due to

Loss of corporate headquarters and priorities of branch plants

Focus on the global value-chain

Difficulty in engaging entrepreneurial leaders

%"Traditional economic development doesnt work well with fewerlarge opportunities

&"Economic development wins frequentlyresult from large public investments


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'"Businesses increasingly incorporating incentives in their businesslocation calculus

("Public investors are becoming more concerned about theeffectiveness/transparency of public investments

)"Economic developers require new skills Focus less on making sales and more on conducting market

intelligence

Facilitate linkages among a fragmented network of participants

Focus on the community or region product comprehensively

*"Economic developers are realizing that workforce talent can bean important competitive differentiator

!+"Economic development is undergoing agenerational shift that will likelytransform the profession

10 Mega-trends for

Economic Developers (cont.)


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Implications from these trends

Regionalism matters!

Flexibility matters

Context matters

Process matters (planning is not an event) Success requires capacity, buy-in, and

legitimacy

Mindsets must be aligned to new realities ofwhat works in economic development


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Implications from these trends

Continuous search for the next economicopportunity and understanding the state ofcurrent industries

Need comprehensive view of developmentthat links economic development withworkforce development and education

Consider collaborative and sustainablesystems for implementing economicdevelopment


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Lessons from economic and economic

development trends

Successful places have

Leaders that recognize the new realities of how economicdevelopment works

Regional ties that help to create a larger number ofopportunities

A recognition that opportunities arise within a globaleconomic context for which leaders can be prepared

An understanding of their current industry strengths and

weaknesses Flexibility and adaptability that will allow improved

response to opportunities


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Lessons from economic and economic

development trends (cont.) Successful places have

Buy-in and legitimacy for that preparation

The capacity to respond (in terms of appropriate assetsand skilled professionals to facilitate) well before

opportunities present themselves A comprehensive view of development that links

economic development with community, workforce,and education

A mechanism for continuously searching for the next

economic opportunities

A way to evaluate whether past efforts have made asubstantial impact on the economic well-being of thecitizenry


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Rationale for Collaborative Regional

Economic Development Planning Framework

Every place needs to implement a planning

process that provides a mechanism for

continuously assessing opportunities in light of

economic change and leadership priorities and

decisions

In such a complex and ever-changing

environment, every place must consider systemsthat foster collaboration and sustainability IN

A REGIONAL CONTEXT


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III.

Define Principles for

Collaborative RegionalEconomic Development

Planning Framework


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Core Principles for the Collaborative Regional


Vision

Collaboration

Regionalism

Opportunistic

Iterative

Holistic

Fact-Based

Continuous Improvement

Prioritization

Communication


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Core Principle:

Builds on a ClearVision Definition

Clear description (image) of a preferred future state

with regional prosperity clearly defined

Significantly different from the current state Identifies impactful intervention

Why this is important

Inertia may lead to a less than optimal future state

Multiple options for a preferred future state

Many interventions have little impact or wrong impact


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Imagine Tucson as an example

Core Principle:Builds on a clearvision


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Core Principle:Collaborates Across Silos

Definition Process of working together with many public and

private stakeholders

Working with stakeholders in different but non-

contiguous places that are linked to yours

Multi-disciplinary (across policy domains)


Realize that the kinds of collaboration depend on

economic conditions and competitive advantages

Challenges faced involve economic and non-economic factors

No silver bullet


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Core Principle EXAMPLE:

Collaborates Across Silos

Futures 4 Kids

Alliance for Quality Education


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Core Principle:Engages Regional Participation

Definition

Geographic boundaries of the planning area

Different types of regions

Relationship with place and region


Context of economic trends focus on the competitive

position of the region within a global context

Planning too small may have very little impact on thefuture state


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Vision East 41 counties in eastern North Carolina

Focus on military, tourism, agriculture, advancedmanufacturing, and entrepreneurship

Texoma Regional Consortium 13 counties in northern Texas and southern Oklahoma

Focus on advanced manufacturing, and entrepreneurship

Montanas Agro-Energy Plan 32 counties and six Indian Reservations

Focus on bio-products and renewable energy developmentas tool for rural entrepreneurship

Core Principle EXAMPLE:Engages Regional Participation


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Core Principle:Exploits Unforeseen Opportunities

Definition

Requirement to continuously adjust to local conditions

and external factors

Need for flexibility in response


Current situation will not match any one vision of how

the world works

Possibility of unforeseen opportunities


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Core Principle EXAMPLE:Exploits Unforeseen Opportunities

NC Center for Engineering Technology

Science Foundation Arizona


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Core Principle:Makes Iterative Changes

Definition

Experimental efforts to try new strategies and tactics

Experiential in learning from ones own lessons aswell as those of others


The complexity of variables require trying multiple

approaches to influencing behavior


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Core Principle EXAMPLE:Makes Iterative Changes

Innovation

Frontier Arizona Pacific Mountain

Washington


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Core Principle:Embraces a Holistic Response

Definition

Systemic approach to fostering development

Multiple policy domains (e.g., workforce, community,

education, etc.) interact


Recognition that economic development is influenced

by a broad array of investments

Behaviors of businesses and/or talent increasinglyrespond to non-economic stimuli


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Core Principle EXAMPLE:Embraces a Holistic Response

Pittsburgh The College City brand

- Helping talented students

consider their college choices

www.campusvisit.com- Helping college bound visitors findtheir way

Experience Pittsburgh- Helping college students becomeconnected to the city

Building Bridges- Helping Pittsburgh college students

find jobs


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Core Principle:Relies on Facts

Definition Historically, economic development was driven by relationships,

opinions, perceptions, and emotional considerations

Increasingly, multiple decision makers involved and logic (e.g.,

cost considerations or market pressures) shape investmentdecisions

Places have learned more about how businesses make investmentdecisions based on behavioral patterns

Internal and external factors influence those behaviors

Why this is important Know what is

Know what others are doing

Know how to respond or compete


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Hotels & transportatservices

41,605

Basic health servic42,938

Plastics produc2,068

Farming*1,614

Concrete, brick buildinproducts2,115

Wood building products 2,5

Appliance

3,692

Textiles & appar

3,948

Business servic41,445

Financial services & insuran25,814

Arts and med17,789

Constructio11,329

$0

$10,000

$20,000

$30,000

$40,000

$50,000

0.00 0.50 1.00 1.50 2.00 2.50 3.00

Average Wage (20

Concentration(LQ

2004)

Average Wage = $24,641

Green=ExistingBlue=Emerging

Orange=Potential


Relies on facts

Source: US Bureau of Labor Statistics

2.5K

7.5K

15K

Net NewEmployment

*Employment in Maury Countydeclined by 539 betweenJune 2001 and June 2006

0 20

Miles

Net Employment Change in theNashville Economic Market

(June 2001 to June 2006)

35

75

35

82

70

75

82

70

Ardmore

Sherman

DALLAS

OKLAHOMA CITY

Ada

Commuting Patternsin the Texoma Region

(US Census Bureau, 2000)

4,000 Commuters

2,000 Commuters

500 Commuters

< 500 Commuters

0 30Miles

El Paso Workforce Dev Board Area Value

Chain Clusters

Concentration (LQ 2004)


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Core Principle:Improves Continuously

Definition

Benchmark to and borrow from best practices

Evaluates how well the plan and actions are workingtoward improving the baseline


Competition for limited resources

Improve productivity


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Improves continuously Maine Economic Growth Council Measures

of Growth

Joint Venture SiliconValley


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Core Principle:Sets Priorities

Definition

Economic development strategies must involve

making hard choices about where resources will be

invested


Limited resources

Increasing efficiency of impacts


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Core Principle EXAMPLE:Sets Priorities

Future Forward (western NC)

10 strategies related to

Improving connectivity (transportation and

communications) Improving the areas workforce (through education and

training)

Fostering innovation and entrepreneurship

Preparing for targeted market opportunities (e.g.,

appropriate sites for growth sectors)

Creating improved amenities for recreation and to appeal

to relocating knowledge workers


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Core Principle EXAMPLE:Sets Priorities (cont.)

LancasterProspers (Lancaster, PA)

7 actions related to

Fostering regional cooperation

Improving the areas understanding of its economy

Supporting research and entrepreneurship

Developing its urban centers as centers of activity

Creating industry centers of excellence, including

support for related talent development


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Core Principle:

Communicates with Stakeholders

Provide opportunities for input

Ensure transparency

Validate input and decisions

Tell people about the priorities and key actions

Celebrate the success


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Communicates with Stakeholders

Many methods

Traditional written

Video

Web

Blogs

Speakers bureaus

Economic summits

Media


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IV.

Identify Mechanisms for

Overcoming Key Obstacles tothe Collaborative Regional

Economic Development

Planning Framework


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Common Obstacles to the Collaborative Regional


Inertia Resistance to change

Fear of failure

Politics Taxing structure

Leadership structure

Culture Parochialism about problems

Culture of independence and self-sufficiency

The wrong focus (limiting, narrow, or inadequate) Developing real estate

Assisting business enterprises

Obtaining return on investment


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Overcoming obstacles to the collaborativeRED planning approach

Inertia

Define a clear, compelling call to action

Politics

Define an undeniable mutual benefit from action Culture

Appeal to the creed of independence and parochialism thatto help yourself, you must join with your neighbor

Wrong focus

Provide a convincing case that prosperity is not alwayscaptured in the traditional ways of thinking about economicdevelopment


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Review, Questions and

Discussions


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Collaboration for Regional Engagement

and Action to Transform an Economy

Executing

Your

Plan

Design your implementation plan

Leverage your resources

Monitor your progress

Promote your success

Describe your future

Define your actions

Focus your energy

Formulating Strategies


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Articulated differences in economic development

perspectives

Identified mega-trends affecting economic

development efforts

Developed a rationale for collaborative regional

economic development

Established key principles for collaborative regional

economic development

Collaborative Regional Economic Development

Planning Framework: Overview Wrap-Up

describing a collaborative regional economic development framework

Documents