North Carolina report illustrates a good point: We can't keep score very well Tuesday, April 01, 2003 A new North Carolina report points to the challenges of developing useful measurements to evaluate the effectiveness of economic development programs. The report, by the University of North Carolina, evaluates the state's marketing system and particularly the relationship between the state department of commerce and the regional marketing alliances that operate throughout the state. Here's an example of what I mean. As reported in the newspaper, the report compares North Carolina, South Carolina, and Virginia. It notes that in 2002, the state created 198 jobs for every 100,000 workers, while Virginia added 308 and South Carolina added 412. As a first cut, this measure makes some sense...but it obviously excludes any consideration of job quality. The economic impact (personal income) generated by North Carolina's jobs may exceed those in South Carolina. We'd rather have jobs splicing genes, instead of sewing jeans. Here's another example. The report compares the percentage of state budgets devoted to retention. But this is an activity measure, not an outcome measure, so it doesn't tell us much. Finally, the report cites composite scorecards. These are too broad to be useful. While these composite measures make good newspaper copy, they carry relatively little practical policy impact. (What does it mean to be falling behind in "economic dynamism"? Do we need to exercise more?) As EDPros, we need to start developing our own scorecards for marketing, retention, innovation, education. The best work currently underway measures innovation activity in an economy. See for example, the Index of Massachusetts Innovation Economy. Chicago Metropolis 2020 has also produced some very good reports that use effective indicators to measure prosperity in a regional economy. Read a summary. 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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