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

2. 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

3. 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

4. Theme i
Concepts: regional economic development strategy

5. 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

6. 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?

7. 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)

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

9. Importance of stakeholder engagement
Unique perspectives and knowledge
Access to resources

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

11. Resources for stakeholder engagement
Consultants
Professional groups

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

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

14. Analysis: from data to wisdom
SWOT
Force field analysis

15. 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

16. 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

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

18. Action: from strategy to implementation
Operational plans
Monitoring implementation

19. 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.

20. Theme ii
Tools for regional and local economic development

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

22. 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

23. 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

24. 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.)

25. 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

26. 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

27. 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)

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

29. 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?

30. Theme III
Smart growth economic development strategy

31. 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.

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

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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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

43. 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.

44. Theme IV
Project management, monitoring and evaluation

45. 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

46. 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

47. Role of projects in development
Policy
Plan
Programmes
Project

48. 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

49. 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

50. 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

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

52. 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

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

54. Examples of project objectives
Developing irrigation infrastructure and facilities for 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

55. 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?

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

57. evaluation
Ongoing
Terminal
Ex-post

58. 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

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

60. 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

61. 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

62. 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.

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

64. 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

65. 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

66. 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

67. 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

68. In-class exercise
Questions handed out by lecturer

69. 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

70. 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.