1. Tools in regional and local economic development
Arl820s/arl821s: advanced regional and local economic development

2. outline Research and development Value chain and value chain analysis
Environmental resource management
Instruments for project design and management

3. Objective
To examine four major tools entailed in regional and local economic development

4. introduction
Four core enabling instruments for economic growth and development:
Research and development
Value chain
Environmental resources and their conservation
Design and management of project implementation

5. Research and development
“Creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society and the use of this stock of knowledge to devise new applications” (OECD).
Overarching attribute: research and development is a source of innovation which betters socio-economic conditions.

6. Research and development: areas of application
Science and technology
New products, processes and services
Process layout
Human capabilities
Knowledge in social and cultural spheres
Engineering assembly line process

7. Research and development: Levels
Public research and development
Business research and development

8. Public research and development: functional roles
Policy formulation and implementation
Creating infrastructure and human capacity
Conducting and coordinating applied research
Improving overall research environment
Promoting cross-disciplinary research
Mobilising local and external resources

9. Business/industrial research and development: functional roles
Systems and plant layout design
Productivity improvement and quality control system
Technological improvement and adaptation
Market-driven research
Process design and improvement
Capacity building
Total quality management

10. Public and Business/industrial research and development: basic operating conditions
Allocation of sufficient resources
Intellectual property rights
Infrastructure development
Policy coherence
Human technical capacity development
Well-developed ICT system

11. Research and development: types
Basic or pure research
“Systematic scientific and objective investigation to create new knowledge or explain why things in given realities occur”.
Applied research
“Practical aspect of investigation in which new knowledge and innovations are discovered and transformed into use”.
Technological innovation, product value analysis, modifying/upgrading existing technologies, new prototype testing methods, ICT expansion, service and system innovation

12. Research and development in a national socio-economic context
Strong relationship between research & development and growth/development
Dominance by developed countries
Research and development as a response to socio-economic context

13. Promotion/application of Research and development: guiding policies
Spatial focus
Coordination and functional linkages
Capacity building
Emphasis by higher institutions of learning
Protection of intellectual property rights
Competition policy
Technology transfer
Joint venture and equity ownership
Resource availability and affordability
Improvement in educational system

14. Stages of technology development by innovation effort
Technology improvement and monitoring
Stage 3
Stage 2
Significant adaptation
Stage 1
Basic production

15. Value chain and value chain analysis
“Value chain is a collection of serialized activities, including delivery to the market, carried out in the process of converting inputs into final use products and services and delivering to the market”.
“Value chain analysis is the process of understanding how business entities generate values and costs by examining contributing activities in the chain”.

16. Value chain: factors determining efficiency, effectiveness and competitiveness
Value chain analysis
Process engineering
Materials management

17. Value chain: primary activities
Input acquisition process
Operations
Marketing and distribution procedures logistics
Accessing market
After-sales services

18. Value chain: complementary activities
Management
Personnel administration
Research & development and system development
Input acquisition

19. Procedures in value chain analysis
Identifying and classifying activities
Assigning costs to each distinct activity
Examining the value chain

20. Elements in value chain analysis
Mission of the business
Type and relative significance of activities
Relative significance of activities: backward suppliers, forward customers

21. Support activities and costs in value chain analysis
Research and development, technology and systems development
Personnel management
Overall management

22. Global value chain analysis
Links to different strategies
Globalisation: outsourcing, innovation
Benign side
Plant layout: physical facilities, storage areas, work areas, individuals working
Materials handling: minimised cost, operation and wastage; effective use of workspace

23. Regional value chain analysis
Values created by diverse role players: agricultural, industrial and service sectors
Agriculture: inputs, efficiency, backward and forward linkages, regional specialisation and comparative advantages

24. Environmental resource management
Forests
Wildlife
Rangeland
Fishes
Natural tourist attractions
Other unique natural features

25. Additional causes of resource destruction
Failing policies
Deforestation
Soil erosion or degradation
Water pollution
Overgrazing
Poverty
Resource over-exploitation
Outmigration
Low productivity

26. Remedial measures for conserving environmental resources
Reforestation
Creating/protecting wildlife habitats
Raising availability of renewable resources
Balancing environment and economic goals
Meeting urban and rural demands
Creating a system of resource management and conservation
Raising rural productivity
Creating growth opportunities

27. Instruments for design and management of project implementation under a regional plan
Flow chart
Critical path method/schedule
Gantt Chart

28. Flow chart
“A presentation of the breakdown of a complex process into an interconnected sequence of decisions and actions”.
Steps:
Identifying major processes and activity areas
Developing a sequence of successive activities and decision points
Checking for logic and consistency
Breaking down process into sub-processes and identifying decision points

29. Critical path method/schedule
“A network system applied in planning and managing the implementation of projects under a regional plan”.
Steps:
Identify and list project activities
Provide time estimate for each activity
Draw project network
Determine start and end of project implementation
Identify critical path and establish duration

30. Gantt chart Network technique developed by Henry L. Gantt (1917)
Elements:
Establishes minimum implementation timeline
Represents activities by bars
Position of bar on horizontal time scale depicts activity start and finish
Horizontal scale represents time; vertical scale depicts activity
Establishing milestones

31. Gantt chart (cont’d) Steps:
Draw a critical path method/schedule network
Construct chart by listing activities and setting time requirement
Establish and record needed resources
Adjust time requirement

32. discussion questions
Identify four core enabling instruments for economic growth and development.
What is research and development (R & D)? Assess the areas of application, levels and functional roles associated with R & D.
Examine the two main types of R & D. Evaluate the national context and guiding principles entailed in R & D.
Discuss the four stages of technology development by innovation effort.
What is value chain and value chain analysis? Identify the factors, activities, procedures and elements associated with value chain analysis.
Discuss the causes of environmental resource destruction and some remedial measures for conserving these resources.
Outline and examine the three main instruments for designing and managing projects under a regional plan.

33. Review Sub-theme Elements Research and development: definition
“Creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society and the use of this stock of knowledge to devise new applications”
Research and development: areas of application
Science and technology; new products, processes and services; process layout; human capabilities; knowledge in social and cultural spheres; engineering assembly line process
Research and development: levels and types
Levels: public research and development; business research and development
Types: pure and applied research
Research and development: guiding policies
Spatial focus; coordination and functional linkages; capacity building; emphasis by higher institutions of learning; protection of intellectual property rights; competition policy; technology transfer; joint venture and equity ownership; resource availability and affordability; improvement in educational system
Stages of technology by innovation effort
Basic production, significant adaptation, technology improvement and monitoring, innovation
Value chain and value chain analysis
“Value chain is a collection of serialized activities, including delivery to the market, carried out in the process of converting inputs into final use products and services and delivering to the market”
“Value chain analysis is the process of understanding how business entities generate values and costs by examining contributing activities in the chain”
Value chain: factors, primary and complementary activities, procedures and elements
Factors: value chain analysis, process engineering, materials management
Primary activities: input acquisition process, operations, marketing and distribution procedures logistics, accessing market, after-sales services
Complementary activities: management, personnel administration, research & development and system development, input acquisition
Procedures: identifying and classifying activities; assigning costs to each distinct activity; examining the value chain
Elements: mission of the business; type and relative significance of activities; relative significance of activities
Environmental resource management
Forests ; wildlife; rangeland; fishes; natural tourist attractions; other unique natural features
Instruments for project design/management
Flow chart: “A presentation of the breakdown of a complex process into an interconnected sequence of decisions and actions”
Critical path method/schedule: “A network system applied in planning and managing the implementation of projects under a regional plan”
Gantt Chart: developed by Henry L. Gantt (1917); establishes minimum implementation timeline; represents activities by bars

34. reference
Woldemichael, A.T. (2016). Regional development planning: an overriding pathway to inclusive growth and development. Addis Ababa: Rehobot Printers Plc.