the recession, the stimulus, and the “livable communities” agenda: creating a livable...

The Recession, The Stimulus, and the “Livable Communities”

Agenda: Creating a Livable Countryside Collaboration

Presented to the Boundary Crossing ConferenceCentral Michigan University

August 6, 2009

Charles W. FluhartyVice President for Policy Programs

Rural Policy Research InstituteUniversity of Missouri

Four Considerations

The Current Rural Policy Context

The Global Recession, ARRA, and the Livable Communities Agenda: Rural Impacts

Why Regional Collaboration Matters: The Role for Regional Universities

Several RUPRI-CRC Examples

• Realigning, and better integrating, agriculture and rural economic development

• Moving from sectoral, through multi-sectoral, to regional considerations

• Addressing the asymmetry between top-down and bottom-up “workings”

• Building local evaluative frameworks which actually influence central government action

• Valuing participatory process concerns as well as cost effectiveness considerations

The New Rural Policy Framework: An Emergent Global Consensus

Policies and budgets are ultimately about visions and values.

So several questions should frame our approach to this issue:

• What are the principal policy goals of rural initiatives and programs?

• Who are the constituencies of each, and how are they benefited by public investments?

• Why have these programs historically been undervalued and under-resourced?

“If you do the same things,

over and

over,

you’ll probably getthe same outcomes!”

“The social and economic institutions of the open country are not keeping pace with the development of the nation as a whole . . . ”

—President Teddy Roosevelt’s Country Life Commission

Critical Components in the Current U.S. Rural Policy Context• Federalism and Regional / State / Local Policy

Dynamics

• Rural / Urban Constituency Convergence

• New Governance, Innovation and Entrepreneurship Development Systems

• Landscape, Culture, Heritage and Arts as Asset-Based Development Drivers

• Defining and Driving a New Rural Vision

• Global Rural Futures

U.S. Moving Toward “Regional Rural Innovation

Systems”• Moving from attraction strategies to

entrepreneurship

• Identifying and encouraging “functional economic regions”

• Asset-based development

• Higher education institutions anchoring and/or supporting new regional compacts

• New rural governance

• New regional intermediaries

• Place-based policies are WTO-compatible, non-trade distorting.

• This approach is consistent with the fact that national competitiveness is increasingly determined by regional actions.

• Enables a rethinking of core missions and a leadership renaissance across all governments.

• Improves potential to retain existing funding baseline for Ag Committees, and continuing Ag Committee responsibility for rural development.

The Promise of a Regional Rural Innovation Policy

Four Key QuestionsFour Key Questions

1.1. Why is regional competitiveness the new Why is regional competitiveness the new framework for economic development?framework for economic development?

2.2. What must regions do to compete?What must regions do to compete?

3.3. How to connect innovation with regional How to connect innovation with regional development?development?

4.4. What policy initiatives are needed?What policy initiatives are needed?

Globalization makes regions Globalization makes regions the athletes in the global the athletes in the global

economic race.economic race.

The impact of globalization is greater for regions than for nations.

The impact of globalization The impact of globalization is greater for regions than is greater for regions than

for nations.for nations.

6.2% range

The impact of globalization The impact of globalization is greater for regions than is greater for regions than

for nations.for nations.

17 % range

Globalization has changed Globalization has changed the field of play in this race.the field of play in this race.

Innovation now matters more than simply being a low-cost place.

17

Innovation is now a powerful economic Innovation is now a powerful economic driver.driver.

National Entrepreneurship Index and GDP Growth

Total Entrepreneurship Activity Index (2003)

Average GDP Growth (2004 to 2006)

U.S.

Russia

India

Source: Global Entrepreneurship Monitor, 2003 and International Monetary Fund

China Venezuela

European countries

Hong Kong

Japan

Source: Drabenstott & Henderson, 2006

To prosper, rural To prosper, rural regions must:regions must:

1. Craft a regional strategystrategy.

2. Build robust regional governancegovernance.

3. Deliberately pursue innovationinnovation.

4. Grow a lot of entrepreneursentrepreneurs.

A New System for A New System for Regional DevelopmentRegional Development

Strategy

Entrepreneurship

Governance

Innovation

RegionalRegionalProsperityProsperity

UniversitiesUniversities

• Innovation scattered across Innovation scattered across separate research centers.separate research centers.

• Economic benefits flow to Economic benefits flow to unknown locations.unknown locations.

• Competitive needs of Competitive needs of regions not understood.regions not understood.

RegionsRegions

• Competitive advantage Competitive advantage poorly understood.poorly understood.

• Do not know which Do not know which innovations can help.innovations can help.

• Competitive Competitive advantages poorly advantages poorly understoodunderstood

• Do not know which Do not know which innovations might helpinnovations might help

RegionsRegions

• Innovation scattered across Innovation scattered across separate research centersseparate research centers

• Economic benefits flow to Economic benefits flow to unknown locationsunknown locations

• Competitive needs of Competitive needs of regions not understoodregions not understood


The ProblemThe Problem

Universities need regions…Universities need regions… Regions need Universities…Regions need Universities…

But there is no 21But there is no 21stst Century bridge connecting the two. Century bridge connecting the two.

• Competitive Competitive advantages advantages poorly poorly understoodunderstood

• Do not know Do not know which which innovations innovations would helpwould help

RegionsRegions

• Innovation Innovation centers pooled to centers pooled to create synergiescreate synergies

• Competitive Competitive needs of regions needs of regions still not still not understoodunderstood

• Economic Economic benefits flow to benefits flow to hometownhometown


Intellectual PropertyIntellectual Property&&

Technology transferTechnology transfer

Research ParksResearch Parks

Interdisciplinary Interdisciplinary Research CentersResearch Centers

HometownHometown

The Current ApproachThe Current Approach

• Better understand Better understand competitive competitive advantagesadvantages

• Gain access to Gain access to innovations that innovations that leverage leverage competitive competitive advantagesadvantages

RegionsRegions

• Engaged in helping Engaged in helping regions diagnose regions diagnose competitive competitive advantageadvantage

• Research informed Research informed by competitive by competitive needs of regionsneeds of regions

UniversitiesUniversities New New InstitutionaInstitutiona

l l MechanismMechanism

ss

Innovation BridgeInnovation Bridge

Four Key Questions

1.Why is regional competitiveness the new framework for economic development?

2.What must regions do to compete?

3.How to connect innovation with regional development?

4.What policy initiatives are needed?

Innovation & Regional Development

Policy Issues for the Future

1. It is not enough to have a “research engine.” We must build “bridges” that connect innovation with regions, the new athletes in the global economic race.



• 2. These “bridges” represent a frontier in all OECD countries.



3. Policy must focus on creating an effective “incentives” for new institutional mechanisms at universities.



4. Building this “market” will take three steps:

Increasing the capacity of regions to define competitiveness strategy— ”the ask.”

Cataloging & filtering innovation in a “development friendly” way— ”the bid.”

Providing incentives for researchers and regions to come together— ”the market maker.”

2121stst century regional century regional innovationinnovation

Link research to regional strategies.

Which research strands will most advantage which regions?

Today, there is no bridge between innovation and regional strategy.

How to create this intermediary?

Universities & Economic Development:Standard Model

OfficeOfficeOfOf

TechnologyTechnology

Startups

?

UniversityResearch Clusters

The lesson of Netscape.The lesson of Netscape.

OfficeOfficeofof


Startups

?

UniversityResearch Centers Startups HometownResearch

Park

Universities & Economic Development:Research Park Model

OfficeOfficeofof


UniversityResearch Centers

Universities & Economic DevelopmentThe Regional Competitiveness ModelThe Regional Competitiveness Model

Regional Regional

EngagementEngagement

A trio of CRC regional strategy projects throughout the nation.

•Western AL—Eastern MS (37 counties, 1st generation WIRED)

•Southern MN Regional Competitiveness Project (38 counties)

•RiverLands Economic Advantage Project (14 counties in IA, IL, WI)

• 37 counties/1.027 million people

• Largely rural region with an emerging manufacturing base ringed by several automotive assemblers

• US Economic Development Agency (EDA), first-generation WIRED grant region

• Funded by EDA and led by 1 non-profit institution and 8 community colleges

Western Alabama, Eastern Mississippi (WAEM) Project

• 14 counties/460,676 people

• Largely rural region, deep industrial and farming roots, with an emerging business services sector in Dubuque, IA

• Eight partners led by a regional utility, one university, and partial funding from EDA

RiverLands Economic Advantage Partnership Project

• 38 counties/988,000 people

• Ag-intensive, strong manufacturing base region, with world-renowned medical research facilities.

• Self-funded project led by 16 partners from the private sector, led by a financial institution, two philanthropies, and others.

Southern MinnesotaRegional Competitiveness Project

8/5/09

What were theproject goals?

1. Strategy. Compete in the global economy with critical mass based on what the Region does best.2. Partnership. Strengthen the way the Region thinks and acts as one region.3. Investment priorities. Identify public investments critical to being a world-class competitor.4. Increase innovation capacity. Enhance the Region’s capacity to innovate, grow entrepreneurs, and create wealth.

Southern Minnesota Regional Competitiveness Project

Strategy Summit

May 2009

Project Partner Team Formed

Summer 2008

Analysis

Southern Minnesota Regional Competitiveness ProjectPartnership

10 Local Roundtables520 + Leaders

Sep./Oct. 2008

3 Regional Roundtables

300 LeadersNovember 2008

Assemble regional data sets & First look

at specializations

In-depth look at “bests”:Structural AnalysisCluster AnalysisRoundtable FindingsInnovation Analysis

Impact analysis

Futures Summit250 Leaders

March 2009

What does the regional economy specialize in now?

Structural Analysis What clusters give the Region a competitive edge?

Cluster Analysis What distinct assets could fuel new growth?

Roundtable Synthesis

How to identify the best strategic opportunities

Three approaches to

“best.”

Principal Finding:

The Southern Minnesota Region has a remarkable collection of economic assets, yet incomes are eroding compared with the rest of the state and many parts of the nation. The Region has significant competitive strength in a handful of exciting new areas of opportunity that hold great promise in lifting incomes and creating wealth. To seize these competitive advantages, however, it must fortify its approach to development, commit to a new set of public and private investment priorities, and execute a new game plan focused on its best economic opportunities.

Project Findings

Five Critical FunctionsSet investment priorities for public funds.Champion public policies critical to your future—speak with one voice.Foster the best possible conditions for economic synergies to ignite—constantly “connecting the dots.”Coordinate Game Plan actions—advocating for the “forest” of region-wide good.Track progress against milestones and change course when necessary.

What the Southern MN Opportunity

Roundtable Must Do

The Southern MinnesotaEconomic Game Plan The goal is to win. Winning is about boosting economic well-being, creating high-quality places, and retaining youth and talent. 16 action steps over the next 24 months organized around four Forums:Innovation

Bioscience

Renewable energy

Bioscience

“What lies before us and what lies behind us are

small matters compared to what lies within us.”

—RALPH WALDO EMERSON

This presentation is available on the Internet at:

http://tr.im/cmu30Charles W. Fluharty

Vice President for Policy ProgramsRural Policy Research Institute

University of Missouri

http://tr.im/vBWj

the recession, the stimulus, and the “livable communities” agenda: creating a livable...

Documents