Economic Development The New Themes & Benchmarks Eric Rinehart, Economic Development Solutions, inc. E-D-Solutions.com IDC-ISU#1

n Vision: - High Quality Jobs - Stable Tax Base n Context: - Global Economy - Regional Markets n Goals/Results: - Business Competitiveness - Community Excellence Adapted from "Emerging Principles in Economic Development: A Benchmarking Tool", June '95. n Scope: - Public Facilities Capacity - Community Betterment - Business Vitality - Marketplace Capability n Organization: - Regional Collaboration - Partnerships n Process: - Comprehensive Strategy - Customer Orientation - Measurement and Evaluation - Learning Development Benchmarks

Traditional Values & Visions Our Goals Our Goals Jobs: high quality jobs that provide high pay Prosperity: an increasing number of jobs in the new technology areas Our Goals Our Goals Stability: stable income base that provides for a stable tax base Equity: opportunity for all to participate in economic endeavors

The “Global” Economy Key Drivers Driving Forces Behind Economy Key Drivers Driving Forces Behind Economy Competitive Advantage New Economy Competitive Advantage New Economy Theme #1

New Economy Advantages Resourced-Based >> Basic Advantage: Resourced-Based >> Natural Resource; Merchant Oriented Industrial-Based >> Comparative Advantage: Industrial-Based >> Capital Intensive; Service Industry Innovation-Based >> Competitive Advantage: Innovation-Based >> Information; Technology Oriented

Key Drivers Supply: S ources of advantage are more mobile (capital, labor, technology) Demand: global demand, changing income distribution Production: changing occupational mix; flexible partnerships; increased productivity Adjustment: customers drive products, entrepreneurs drive producing ventures; new ventures are driving employment

Economic Systems Market Potential  Structure  Regional Economy  Input Supply  Cumulative Adjustment One schematic Theme #2

The ‘Regional’ Market Market Potential Demand is based on the Market Potential of the region -- not political boundaries: 10-15% of Sales International Economy 10-15% of Sales International Economy 30% of Sales in Midwest Economy 30% of Sales in Midwest Economy % of SalesMetropolitan Economy % of SalesMetropolitan Economy

Competitive Inputs Human Capital Human Capital Suppliers Suppliers Productive Capital Productive Capital Organization Organization Supply Industries are fueled by the Supply of competitive factor inputs to production:

Economic Adjustments Investment Investment Sales Sales Productivity Productivity Innovation Innovation  Firms adjust to the supply and demand: Multipliers Multipliers Accelerators Accelerators ‘Cumulative Affects’  Resulting in ‘Cumulative Affects’

Industrial Structure Agglomeration And a tendency towards Agglomeration [clusters and linkages] in production location Industry Clusters Industry Clusters Central ‘Places’ Central ‘Places’ Industry clusters arise from agglomeration; & will lead to improved Regional Performance Multipliers Multipliers Accelerators Accelerators

Strategic Management #1: What We Do: Strategic Scope of Efforts #2: How We Do It: New Performance Benchmarks Theme #3

l Public Capacity n Governance/Taxes n Regulation n Infrastructure n Social Utilities l Market Capability n Market Structure n Financial Access n Human Capital n Competitive Resources Development Foundations: Strategies in the 20 th Century

Development Functions: Strategies in the 21 st Century l Community Vitality n Growth Management n Area Redevelopment n Employment Services n Organization Capacity l Enterprise Vitality n Capital Investment n Trade Promotion n Production Operations n Entrepreneurial Starts

in the Scope of interests Developers must focus both on supply chain management; -- the public and the institutional economic foundations customer relationship management; -- the needs of the business sector and the community

in Organization Regional Collaboration, just as industry views markets, - beyond political boundaries - so too must practitioners Partnerships: the development process continues to become more complex, necessitating work through organizations

in Work Processes Flexibility and adaptability Market-oriented Consumer-friendly Reinvented with technology Innovative Performance driven

in Accountability l Public Expectation n improvements in lives n return on investment l Organization’s n effectiveness of effort n best resource allocation n service to customers l Manager's n efficiency of approach n quality of services n quantity of services l Oversight Authorities’ n GPRA: process n SEA: elements