Diversifying and Developing Beyond a Tourist Based Economy Professor Edward J Blakely University of Sydney Planning Research Centre

Blue Mountains

Moving from natural resources and tourism to a new economic base 1. Challenges Fragile Environment Age Structure Government Stricture and Structure Narrow economic options Connectivity Asset Assembly

Economic DiversityAgglomeration of reinforcing firms that collaborate as well as compete for global market share Very diverse industries that have domestic and international exports Population Muti- culturalism High levels of immigration and cultural tolerance with regard to race, national origins and related factors Exceptionally vital and diverse populations that attract jobs and firms Creative/skilled Workforce High number of specialized university educated imaginative people in arts, sciences and management disciplines Workers attractive to global capital and firms Competitive Ingredients

Opportunities for Transformation 2.Assets Quality of Life Visitor Attraction Special Assets-water, nature Incubator capacity Social Capital Community Character

Livable and Accessible Neighborhoods and Strong Civic Image Communities that reflect diverse Lifestyle, economic and social diversity Diverse Housing Types Appropriate Density Environmental stewardship Community character Creative, Competitive and Skilled Workforce Workforce Employers and employees want to come stay and create new opportunities in the community Youth Stay in community In migration of skilled people Creation of new firms Highly engaged Citizenry Resident have a strong sense of pride and engage in maintaining the character of the community Planning a central Issue Citizen engagement in community development The New Dimensions for Competitive Cities

Moving From Tourism  Creativity Centered-not product centered Design based over development based Human Capacity over power and energy Natural Resources as sustainable base Place and critical vs incidental Place creates the economy vs economy designed to fit the economy Agglomeration of clusters vs clusters as base

New Economic Development Theory Ingredients Intellectual capital Human capital Financial capital Recipes New ideas Entrepreneurs Networks Results Productivity Prosperity Cluster vitality

Low cost Knowledge Quantity Quality Stability Speed Capital equipment Flexibility Control Networks Shifting Industries

New Approach Based on Community Capital Interactive—doesn’t occur in a straight line. Group creativity—not dependent on a few. Tacit knowledge—depends on “know-how.” Networks—ideas flow more freely. Competition/collaboration—both are needed.

Generating vs Attracting Skill and Directions inventory Knowledge led. Marshalling and combining assets. Location is still important as the economic venue

Local Assets

Building the Post Tourism Base Lifestyle Dimension. Comparative Advantages Creative Capital Institutional form and base Strategic linkages with other places for markets or assets Nimble

Quality of Life

Live Work

Framework for the Innovation Process

Regional Leadership Makes the Difference in Innovative Regions Build fundamental assets. Connect entrepreneurs to assets. Promote a culture of innovation. Make quality of life an asset.

Human Capital Techno-Infrastructure Nodes &Catalyst

Regional Leadership Makes the Difference in Innovative Regions Talent Technology Capital Supportive Infrastructure Transportation Housing Advanced telecommunications

Cornerstones of Regional Innovation

The Economic Community EconomyCommunity

The Innovation Economy Values Economic Regions Distinctive Quality of Life Vital Centers Choice for Living and Working Speed and Adaptability The Natural Environment

Growing Sectors Publications Communications Higher Education and Conferences Theatre and Arts Rehabilitation Health Research “think tank” Environment as an industry

Innovation Economy Values Economic Regions The shift to a new economy, and the changing nature of work, place a premium on regions as important places. Geography is important to clusters because firms and people gain from being in the same place. Clusters gain their power through the force of face-to-face creative collaboration.

Innovation Economy Values Distinctive Quality of Life The new economy values quality of life more than the old economy, because it values people more than the old economy. Livability and quality concerns are only becoming more important with economic change.

New Realities 1.Technology is a given 2.Globalism is here to stay 3.Knowledge builds wealth 4.There’s no such thing as a smooth ride 5.Competition is relentless 6.Alliances are the way to get things done 7.People are the key to success 8.Place matters

Next Wave May be a Convergence 1990s ConvergenceNext Convergence Internet Revolution HARDWARE SOFTWARE MEDIA NANO BIO INFO ? Revolution

Examples of Convergence

Preparing for the Next Waves: State and Regional Responses Do leaders understand the opportunity? What must we do to ensure it happens here? What are the requirements? How can local people and communities benefit? Can we avoid some of the pitfalls of past waves?

Capacity Resource ConnectivityHigh quality and reliable telecommunications, airports, seaports and efficient cross regional connectivity by public and private transportation systems Frankfurt, Chicago, Denver that are global cities primarily because of their internal and external communication and air transport systems Strategic CapacityAbility to mobilize public and private actors for a common agenda Atlanta, Boston, Washington DC, Pittsburgh, Brussels with able local leadership in public and private sectors Innovation/ entrepreneurshipFirms organizations lead by creative economic and social entrepreneurs with readily available venture capital San Jose Costa Rica, Berkeley Calif, Los Angeles, Stockholm are incubators or highly innovative talent

New Infrastructure Required for Knowledge Based vs Machine Based Community 1. Place Creating and Generating Infrastructure 2. Human Capital Building Infrastructure 3. Tele-mobility Infrastructure 4. Social Capital Infrastructure 5. New Governance Infrastructure

Understanding Brain Pool The region needs to retain year old population

Chart- …..Typology of SLAs in Sydney GMR

FIGURE: HOW INDUSTRY AGGLOMERATION AFFECTS SLA TAXABLE INCOME AND SLA POPULATION  Reduces space for residential services in SLA; and or Reduces attractiveness of SLA as a place of residence  Increases number of industries in SLA; and / or More large employer firms in SLA  May increase number of people living in SLA closer to jobs; and/ or May increase commuting into SLA; Higher out-migration from SLA  Increases number of jobs in SLA; and or Increases average income earned and wealth level in SLA  Hypothesised net impact on SLA taxable income POSITIVE  Hypothesised net impact on resident population NEGATIVE

Typology of SLAs : Strongly and Weakly Performing SLAs LOW INCOME GROWTH HIGH INCOME GROWTH HIGH POPULATION GROWTHTYPE ‘B’ SLAs Modest performing ‘transitional’ SLAs TYPE ‘A’ SLAs Globally exposed strongly performing SLAs LOW POPULATION GROWTHTYPE ‘D’ SLAs Very weak SLAs in ‘Economic free fall’ TYPE C SLAs Weakly performing static SLAs

cont - Typology of SLAs : Strongly and Weakly Performing SLAs LOW INCOME GROWTH Drivers of growth SLAs of this type HIGH POPULATION GROWTH TYPE ‘B’ SLAs  Modest performing ‘transitional SLAs Construction Logistics 1 Port Stephens, 2 Burwood, 3 Ryde, 4 Lake Macquarie, 5 Strathfield, 6 Newcastle - Remainder 7 Blue Mountains, 8 Penrith 9 Parramatta, 10 Campbelltown

cont - Typology of SLAs : Strongly and Weakly Performing SLAs HIGH INCOME GROWTH Drivers of growth SLAs of this type LOW POPULATION GROWTH TYPE ‘C’ SLAs  Weakly performing static SLAs Health & Community Services Tourism Business services 1 Blacktown – North 2 Liverpool, 3 Wollondilly, 4 Sutherland Shire- West, 5 Hawkesbury, 6 Wyong, 7 Camden, 8 Pittwater, 9 Baulkham Hills, 10 Gosford, 11 Cessnock, 12 Sutherland Shire – East

cont - Typology of SLAs : Strongly and Weakly Performing SLAs LOW INCOME GROWTH Drivers of growth SLAs of this type LOW POPULATION GROWTH TYPE ‘D’ SLAs  Very weak SLAs in ‘Economic free fall’ Manufacturing Transport Retail 1 Wollongong 2 Blacktown South East 3 Blacktown 4 South West 5 Holroyd, 6 Rockdale 7 Bankstown, 8 Botany Bay, 9 Fairfield, 10 Canterbury, 11 Auburn, 12 Hurstville, 13 Kogarah, 14 Warringah, 15 Maitland, 16 Marrickville 17 Ashfield

Blue Mountains Opportunities Printing and Publishing Holistic Health Professional Education Visual and Performing Arts Transit Hub Creative Incubator Software Development (health and education) Natural Resource Management

Market Demographics Re-use of existing space for the New Economy Existing Strip Shopping areas Re-examination of roles and hierarchies of centres Role of New populations in creating and sustaining new economic and commercial activities

Building On What We Have Existing building framework—not more building—

Housing for the future

Mobilecommunity---Community owned and operated wireless networks

Software Development Knowledge Space Live-work Space Work-Communi-space

Professional Education

Holistic Health Social Institution Building as critical development component Health Living Centres Non Western Health Schools Adult Continuing Health Learning Health Publishing and Libraries

Small Publishing and Writer Centre

Creative Industry Incubator

Visual and performing Arts Retreat

Natural Resource Management

New Dry Port Transit Hub with Flex-space

Blue Mountain Direction Human and Natural Capacity Magnet Infrastructure Regional Alliances Distinctive Features

Market Positioning Models Maps New Urban Form Bikeways from mean streets

New Institutional Infrastructure --- Government Joint Powers & Public/Private Venture Authorities Local Governments forming regional infrastructure financing authorities to design & develop or redevelop digitalcom and new employment infrastructures Public-Private Venture Corporations to provide both soft and hard infrastructure

Diversity and Sustainability

University as Collaborative Builder  University to University relations  University to key constituents as verifier  University to Civic Leaders as unbiased actor  University to government as honest broker

It takes many different professionals

Process of the Plan Focus Externally *Who and What is the Competition?

Good Healthy Communities  Pedestrian-oriented, mixed use design  Frequent bus service  Preservation of mature shade trees  Renewable energy  Recycled building materials

Local Government Leadership