concepts and approaches to regional and local economic development Arl820s/arl821s: advanced regional and local economic development

outline Objectives Regional economic development strategy: concepts and tools Smart growth economic development strategy: components, principles and steps Project management, monitoring and evaluation Discussions, debate, review and in-class exercise

Objectives To examine major concepts entailed in a regional economic development strategy (theme I) To analyse tools for regional and local economic development (theme II) To examine the elements entailed in a smart growth economic development strategy (theme III) To apply techniques in project management, monitoring and evaluation to regional and local economic development (theme IV) To engage students and assess their understanding through interactive discussions

Theme i Concepts: regional economic development strategy

introduction Economic development refers to “the sustained, focused actions of policy makers and communities to support and improve living standards, and increase the economic health of a specific region”. Comprises economic growth, infrastructure, transportation, sector development, environmentalism, urban planning, education, health, social inclusion etc. Depends on partnerships: government, private sector, non-profits, communities etc. Is context-specific

Developing a regional economic development strategy Where are we now? Where do we want to be? How do we get there? How do we measure, evaluate and communicate our results?

Strategy development in policy governance context What does economic development mean to us? Current context and vision for the future Separation of organization’s ends from means Focus on strategic thinking to guide stakeholder consultations, information gathering, scanning, creating a vision and developing goals Policy governance premised on: strategic thinking (board) and strategy implementation (CEO)

Engaging: who should be involved? Stakeholders National, regional and local authorities Financiers Citizens, civil society and NGOs Others

Importance of stakeholder engagement Unique perspectives and knowledge Access to resources

Approaches to stakeholder engagement Surveys Open houses Round tables Workshops Discussion groups

Resources for stakeholder engagement Consultants Professional groups

What resources are available? Financial support Staff Information and data Background documents Consultants

Information gathering: understanding your operating environment Where do you stand? Economic context Business and industry sectors Global influences Human capital Key assets Environmental scan

Analysis: from data to wisdom SWOT Force field analysis

vision Choose your priorities Balance geographical perspectives Allocate resources based on priorities Consider different perspectives among stakeholders to get the big picture Articulate your vision

Format: presenting your strategic thinking Design an attractive cover Introduce the regional/local economic development authority and its strategy Summarise your strategy development process Discuss your regional analysis Discuss possible future scenarios Consider stakeholders’ strategies and priorities Describe your vision for the future of the region List and explain your ends Explain the next steps Place credits and contact information on the back cover

Action: rolling out your strategy Approving the strategy Sharing the strategy Ongoing strategic thinking

Action: from strategy to implementation Operational plans Monitoring implementation

Theme i: discussion questions What is economic development? Define its components and the players necessary for its success. Discuss four main questions (or factors) to consider in developing a regional economic development strategy. Assess the main elements involved in developing a regional economic development strategy within a policy governance context. Who are the main stakeholders involved in formulating a regional economic development strategy? What is the importance of stakeholder involvement in the strategy formulation process? Discuss the approaches and resources entailed in stakeholder engagement for a regional economic development strategy. What are the main elements involved in information gathering and analysis for a regional economic development strategy? Assess the visioning process in the formulation of a regional economic development strategy. What are the major elements which comprise the format for a regional economic development strategy? Discuss the main action-oriented components which define the final stages in the formulation of a regional economic development strategy.

Theme ii Tools for regional and local economic development

Economic development analysis in the internet age: tools Industry cluster analysis Regional innovation index Occupational cluster analysis Guidelines for regional organisation and investment decisions

Industrial cluster analysis Comprises: Sequence of steps for identifying and locating clusters Identification of strengths and weaknesses Benefits Comparative and growth trends Reveals emerging industries and mix of clusters Rethinks business expansion strategies Reveals industries with similar workforce needs and growth potentials Improves business connections Creates regional identities and improves marketing effectiveness

Regional innovation index Measures “how well a regional economy translates knowledge and innovation capacity into prosperity”. Benefits Assesses comparative trends in innovation capacity and results Tests regional scenarios Shows a region’s individual innovation index components Articulates the importance of new development

regional innovation index (cont’d) Different dimensions of innovation Comprises: Inputs (economic dynamics, state level indicators etc.) Outputs (employment in high-technology firms, greater work output, creation of patents etc.)

Occupational cluster analysis This analysis “offers insights into the knowledge, skills and abilities of the regional workforce that go beyond the relatively simple measure of educational attainment, such as highest degree earned”. Benefits Examines a region’s knowledge-based workforce in-depth Offers new economic insights based on industry and occupational cluster data Situates local workforce and educational attainment in broader regional context Bridges gap between workforce and economic development Assesses a region’s competitive position in the knowledge economy Evaluates alignment between occupational and industrial cluster strengths

Guidelines for regional organisation and investment decisions Offers platform to build regional collaborative strategy and make strategic investment decisions Benefits Creates common development position for regional leaders Takes advantage of important factors for regional success Enhances regional strategy process Promotes consensus-building on investment decisions

guidelines for regional organisation and investment decisions (Cont’d) The process of making public economic development investments by successful regions addresses three questions: The who (building a leadership team which can think and act together) The what (building a shared strategic framework) Brainpower, innovation and entrepreneurship networks, quality and connected places, branding experiences, civic collaboration The how (focusing public investment in the region’s economic future)

Why focus on regions and innovation? Regional development A knowledge-based innovation driven economy Data-driven strategies

Theme ii: discussion questions What is industry cluster analysis? Discuss the benefits of this tool in regional economic development. Define regional innovation analysis. Identify its components and explain the importance of this tool in economic development. What is occupational cluster analysis? How useful is this tool in regional economic development? Examine guidelines for regional organisation and investment decisions. How do these aid in regional economic development? What are the three main questions addressed in the process of making public economic development investments by successful regions? Why should we focus on regions and innovation when analysing issues of economic development?

Theme III Smart growth economic development strategy

Smart growth economic development strategy: introduction “A strategy that builds upon existing assets, takes incremental actions to strengthen communities, and builds long-term value to attract a range of investments”. Economic decline and lack of diversification Resource depletion, globalisation, change in consumer preferences etc.

Smart growth economic development strategy: core components Supporting businesses Supporting workers Supporting quality of life

Supporting businesses Contributions to economic development: Creating jobs Encouraging entrepreneurship Enhancing fiscal sustainability Improving quality of life Focus: understanding businesses, jobs and entrepreneurship

Supporting workers Contributions to economic development: Growth of local businesses Attraction of new businesses Reduced outmigration Improved quality of life Reduced pollution Focus: marketable skills and education, matching skills with needs of businesses

Supporting quality of life Factors which account for quality of life: Thriving central business district Green and open spaces Variety of transport choices Artistic, cultural and community resources Medical, technical and academic institutions Aesthetic improvements Identifying key locations for development and redevelopment

Preparing a Smart growth economic development strategy: key principles Distinguish between “growth” and “investment” Be tactical and strategic Be focused Start where there is already momentum Find the right partners for specific goals Communicate and coordinate

Preparing a Smart growth economic development strategy: major steps Select a focus area Define the context Set goals Identify existing assets and barriers Select the right tools

setting goals in a smart growth economic development strategy: Supporting businesses Retain existing businesses Attract new businesses Promote entrepreneurship Encourage business growth in in-fill locations

setting goals in a smart growth economic development strategy: Supporting workers Improve access to local employment opportunities Increase access to advanced education, workforce development and employment opportunities Improve quality of education

setting goals in a smart growth economic development strategy: supporting quality of life Promote a vibrant downtown or commercial district Attract stores and services for daily needs Encourage a wide range of affordable housing types Increase access to open, green and recreational spaces Preserve natural spaces

setting goals in a smart growth economic development strategy: supporting quality of life (cont’d) Improve walking and biking facilities Maintain character and distinctive community assets Allow a mix of land uses in appropriate locations Ensure compatibility of adjacent land uses Prepare for climate change

Policy tools for a smart growth economic development strategy Land use policy Partnership building Business development and entrepreneurship Workforce development and employment Health and environment Brownfield and infill redevelopment Transportation Infrastructure financing

Theme III: discussion questions What is a smart growth economic development strategy? Discuss the core components associated with a smart growth economic development strategy. Assess the key principles entailed in a smart growth economic development strategy. Identify the major steps in preparing a smart growth economic development strategy. Discuss the main components associated with goal setting in a smart economic development strategy. Outline the primary policy tools for a smart growth economic development strategy.

Theme IV Project management, monitoring and evaluation

Projects and their significance to a resource-based development “Economic development is improving the material lives of people through creating better opportunities and hence better incomes”. Emerges from growth and productivity of agriculture, industry and service sectors “Social development deals with improving health service, education quality and housing as well as preserving cultural heritages of people”. Spurred by economic development

Projects and their significance to a resource-based development: concepts Policy: guiding framework defining direction Goals: targeted broad attainments Objectives: breakdown of goals Planning: forward thinking about what has to be done Plan: careful sequence of activities Programmes: breakdown of plans, comprising more than one project

Role of projects in development Policy Plan Programmes Project

Sequential components of a project identification process Identification of problem areas Analysis of existing situations Definition of objectives Identification of project Identification of opportunity areas

Project conception Policy guidelines and development objectives of government Examining prevailing situations Studies conducted to determine development possibilities of an area or region Identified community needs Deficiency in goods and services Existence of underutilised or unutilised resources Occurrence of disasters like floods or droughts Conserving over-exploited natural resources Availability of funds from certain areas of investment Needs to complement ongoing projects Backward and forward linkages Research findings

Project development Vital steps: data collection, definition of project objectives, design of operational plans, identification of team members, feasibility study Project realisation: implementation plan, monitoring and evaluation Project completion

Elements in project management Strategy Structure Systems Staff Skills Style/culture Stakeholders

The project environment: features creating complexity Organisational complexity Employees, functional units, size of project organisation Resource complexity Volume of resources, time, processes Technical complexity Level of innovation Overall complexity Organisational, resource and technical complexities

The project environment: factors to focus on Time Human resource management Technological changes

Examples of project objectives Developing irrigation infrastructure and facilities for 30000 hectares of crop land Expanding diary processing and marketing infrastructure to handle two million litres of milk per day Improving traffic management in a region Planting about 60,000 hectares of wood in an area reserved for forest development

Monitoring and evaluation Basis: a planning process which ultimately births a plan Prerequisite: plan implementation Essential questions Is plan implementation underway? What is the level of plan implementation in any given time period? Is there a deviation from the plan implementation? What are the desired effects from the plan? Are the actual effects the same as the desired ones? What are the long term effects in wake of the full implementation of a plan?

monitoring Data collection Measurement and recording of implementation progress Assessment of plan compliance

evaluation Ongoing Terminal Ex-post

A minimum monitoring system Measuring achievement of objectives Monitoring major assumptions during plan implementation Monitoring the use of resources, time, personnel, funding etc. Performance efficiency in plan implementation

A minimum monitoring system: attributes of indicators Relevance Limitness Economy Simplicity

Sequential steps in developing monitoring and evaluation system Identify key factors Identify users of information Determine information sources Establish data collection/analysis methods Identify who will do what, when and where Determine overall organisation Decide how findings and recommendations should be communicated to users

Criteria for developing and applying monitoring and evaluation system Decision or accountability-based approach Monitoring and evaluation directed to identified information users and their needs Communicating findings Conducting “extended” monitoring and evaluation

Theme IV: discussion questions Distinguish between economic and social development. Define the following terms: policy, goals, objectives, planning, plan and programmes. What is a project? Define its attributes and role in the development process. Examine the sequential components involved in a project identification process. Discuss the primary elements in project conception, development and management. Examine the major features associated with creating project complexity. Identify the factors to focus on in a project environment. Discuss the fundamental questions and main elements associated with project monitoring and evaluation. Examine the elements and attributes of indicators associated with a minimum monitoring system. Discuss the sequential steps and criteria for developing/applying a monitoring and evaluation system.

Open debate/discussion The successful formulation of a regional economic development strategy depends primarily on the processes, rather than the tools adopted.

Review: theme I Sub-theme Details Economic development: definition “The sustained, focused actions of policy makers and communities to support and improve living standards, and increase the economic health of a specific region”. Developing a regional economic development strategy Where are we now? Where do we want to be? How do we get there? How do we measure, evaluate and communicate our results? Policy governance What does economic development mean to us? Separation of organization’s ends from means Strategic thinking (board) and strategy implementation (CEO) Who to engage Stakeholders, government, business sector, citizens, NGOs, and others Importance: unique perspectives and knowledge, access to resources Approaches: surveys, open houses, round tables, workshops, discussion groups Resources Consultants and professional groups Financial support, staff, information and data, background documents, consultants Information Where do you stand? Economic context, business and industry sectors, global influences, human capital, key assets, environmental scan Analysis SWOT, force field analysis Vision Choose you priorities, articulate your vision Format Design an attractive cover; introduce the REN and its strategy Summarise your strategy development process; discuss your regional analysis Discuss possible future scenarios; consider stakeholders’ strategies and priorities Describe your vision for the future of the region; list and explain your ends Explain the next steps; place credits and contact information on the back cover Action Approving the strategy, sharing the strategy, ongoing strategic thinking Operational plans, monitoring implementation

Review: theme II Sub-theme Definition Benefits Industry cluster analysis Sequence of steps for identifying and locating clusters Identification of strengths and weaknesses Comparative and growth trends Reveals emerging industries and mix of clusters Rethinks business expansion strategies Reveals industries with similar workforce needs and growth potentials Improves business connections Creates regional identities and improves marketing effectiveness Regional innovation index Measures “how well a regional economy translates knowledge and innovation capacity into prosperity”. Has different dimensions; comprises inputs and outputs Assesses comparative trends in innovation capacity and results Tests regional scenarios Shows a region’s individual innovation index components Articulates the importance of new development Occupational cluster analysis This analysis “offers insights into the knowledge, skills and abilities of the regional workforce that go beyond the relatively simple measure of educational attainment, such as highest degree earned”. Examines a region’s knowledge-based workforce in-depth Offers new economic insights based on industry and occupational cluster data Situates local workforce and educational attainment in broader regional context Bridges gap between workforce and economic development Assesses a region’s competitive position in the knowledge economy Evaluates alignment between occupational and industrial cluster strengths Guidelines for regional organisation and investment decisions Offers platform to build regional collaborative strategy and make strategic investment decisions Addresses three questions: who, what and how Create common development position for regional leaders Take advantage of important factors for regional success Enhance regional strategy process Promote consensus-building on investment decisions

Review: theme III Sub-theme Details Smart growth economic development strategy: Definition “A strategy that builds upon existing assets, takes incremental actions to strengthen communities, and builds long-term value to attract a range of investments”. Smart growth economic development strategy: core components Supporting businesses Supporting workers Supporting quality of life Preparing a Smart growth economic development strategy: key principles Distinguish between “growth” and “investment” Be tactical and strategic Be focused Start where there is already momentum Find the right partners for specific goals Communicate and coordinate Preparing a Smart growth economic development strategy: major steps Select a focus area Define the context Set goals Identify existing assets and barriers Select the right tools Setting goals in a smart growth economic development strategy Policy tools for a smart growth economic development strategy Land use policy Partnership building Business development and entrepreneurship Workforce development and employment Health and environment Brownfield and infill redevelopment Transportation Infrastructure financing

Review: theme IV Sub-theme Details Project concepts Policy, goals, objectives, planning, plan, programmes Sequential steps in project identification process Analysis of existing situations; identification of problem and opportunity areas; definition of objectives; identification of project Project conception Policy guidelines; examining prevailing situations; conducting studies; identified community needs; deficiency in goods and services; existence of underutilised or unutilised resources; occurrence of disasters ; conserving over-exploited natural resources; availability of funds from certain areas of investment; needs to complement ongoing projects; backward and forward linkages; research findings Project development Vital steps: data collection, definition of project objectives, design of operational plans, identification of team members, feasibility study Project realisation: implementation plan, monitoring and evaluation Project completion Elements in project management Strategy, structure, systems, staff, skills, style/culture, stakeholders The project environment: features creating complexity Organisational, resource, technical and overall complexity The project environment: factors to focus on Time, human resource management; and technological changes Monitoring and evaluation: basis and prerequisite Basis: a planning process which ultimately births a plan Prerequisite: plan implementation Monitoring and evaluation: sequential steps Identify key factors; identify users of information; determine information sources; establish data collection/analysis methods; identify who will do what, when and where; determine overall organisation; decide how findings and recommendations should be communicated to users Monitoring and evaluation: criteria Decision or accountability-based approach; monitoring and evaluation directed to identified information users and their needs; communicating findings; conducting “extended” monitoring and evaluation

In-class exercise Questions handed out by lecturer

Plan for next week Lecture Focus Regional and Local Economic Development (RLED): A historical perspective Comparative advantages of regions and nations; competitive versus comparative advantages RLED in developing and developed countries: commonalities and differences Group Presentations Review for Test 1

references Board of Directors of Nova Scotia’s Regional Economic Networks (2014). Guide to developing a regional economic development strategy. Office of Sustainable Communities: US Environmental Protection Agency (2016). Framework for creating a smart growth economic development strategy. Washington D.C.. US Economic Development Administration(n. d.). A practitioner’s guide to economic development tools for regional competitiveness in a knowledge-based economy. Research conducted by Center for Regional Development (Purdue University), Indiana Business Research Center (Indiana University), Center for Regional Competitiveness (University of Missouri), Strategic Development Group Inc. and Economic Modeling Specialists Inc. Woldemichael, A.T. (2016). Regional development planning: an overriding pathway to inclusive growth and development. Addis Ababa: Rehobot Printers Plc.