Louisiana losing its brainpower Sunday, October 27, 2002 More and more communities and states are figuring it out: brainpower matters and "brain drains" can really hurt. Louisiana, for example, ranks 11th in producing science and engineering undergraduates, but 46th in employing them. A recent article about the loss of brainpower in the state highlights the problem. Go The article also highlights some of the challenges facing Louisiana. But, like most reports out of Louisiana, this article avoids the core issue facing the state. More than most states, politics in Louisiana suffer from corruption. Until the leadership starts to implement a credible strategy against corruption, the brain drain will continue, as people with technical expertise, entrepreneurial and managerial skills leave the state. This conclusion is not surprising. There is overwhelming statistical evidence that economies with higher corruption levels have lower economic performance. (For example, see this report prepared by the World Bank.) Corruption translates into a lack of transparency: public officials act for private gain, not public benefit. This lack of transparency creates the same type business climate that plagues many low-performing emerging economies. (See this article for a small example of Louisiana corruption. Bad Bet on the Bayou provides an excellent recounting of how gambling came to Louisiana. Read more.) At the same time, the state's relatively closed business and political system discourages innovation. For example, the LSU system suffers from overly bureaucratic and outdated technology transfer rules. In sum, Louisiana's problems are deep seated and not likely to be resolved. The article includes an interesting graphic of R&D in the thirteen Southern states. Download the graphic. posted by Ed Morrison |		This work is licensed under a Creative Commons License. links Some Background on EDPro Weblog The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it. One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information. So, spread the word...Share the knowledge. Tell a friend about EDPro Weblog. If you are using a news reader, here is the link to syndicate this site: Here's the link if you are a bloglines subscriber: Speaking and workshops on Open Source Economic Development As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking. Background on Ed Morrison Download some background information on me here.

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