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Auto parts expansions in Virginia: Are the signs turning?
Thursday, July 31, 2003 In more signs that the autio parts industry is reviving, Governor Warner in Vriginia highlighted a number of auto industry expansions in his state. In the past couple of months, Japanese auto suppliers have started expanding or opening plants in the U.S. Read more. Meanwhile in Maryland, EDPros are quietly hoping that manufacturing is starting to revive . Richard Clinch, director of research at the University of Baltimore's Jacob France Center, said, "I think the worst of the economic downturn is over, barring any unforeseen circumstances." EDPros are anticipating that growth, if it comes, will focus on manufacturing firms with fewer than fifty employees. Read more. posted by Ed | Orlando considers targeting small and mid-sized manufacturers In Orlando, site selection consultant Dennis Donovan is proposing that local EDPros consider increasing incentives to small and mid-sized manufacturers. He suggests a range of ideas, including expanding the scope of tax increment financing, creating an opportunity fund, and providing more low interest loans. Read more. posted by Ed | California's business climate outlook: continued clouds Sometimes bad news sometimes comes in a flood. And sometimes, you shoot yourself in the foot. Now newspapers around the country are picking up the story that California's latest budget eliminates the investment tax credit for manufacturers. In the latest budget to pass the legislature, the state did not extend the credit, which is due to expire in January. The credit amounts to 6% of qualified investments in plant and equipment. Editors in Indiana, Kansas, Missouri, Florida, Alabama and Ohio have chosen to run the Associated Press story. All this is happening while manufacturing is starting to show some signs of reviving. Good timing. Out of state recruiters -- if they were not already planning trips to California -- will be calling their travel agencies. Read the story. Today in our history of innovation... In 1790, the U.S. government issued its first patent to Samuel Hopkins of Vermont for a process for making potash. Potash is used in fertilizer and soap. Congress passed the Patent Act in April, 1790. Only two other patents were granted in the first year: one for a new candle-making process and the other the flour-milling machinery. posted by Ed | Web Watch: Massachusetts site finder Wednesday, July 30, 2003 For Web Weenies, here's an informative press release on how Massachusetts integrated GIS technology into its new web site. Go. You can also visit the web site. posted by Ed | NC cities are increasing incentives Durham, NC is considering significant revisions in its policy that provides cash incentives to companies. This follows a similar move by Charlotte to liberalize its incentives. The first revision relaxes the goals. Companies would still be eligible for cash -- $2,500 per job up to $1 million -- if they meet 85% of their goals. A second revision of the policy authorizes the City to give up to $1 million to companies that pledge to keep more than 100 full-time, permanent jobs downtown for at least five years. Since 1999, Durham has committed $845,000 in incentives to eight companies. The money for the incentives comes from the city's general fund, and the city has no annual budget for the program. Read more. posted by Ed | Toledo residents try limiting sprawl In another approach to managing sprawl, citizens in Toledo are trying to place limits on big box retail development. Elected officals are against the move, fearing that it will send a message that Toledo does not support economic development. The problem with the initiative petition is that it would submit large scale retail development projects to a vote of the people. That's a blunt instrument to deal with a complex problem. It would seem, however, that in Toledo the issue has become politicized. Residents need only 540 signatures to get their proposal on the November ballot. Read more. Today in our history of innovation... In 1898, William Kellogg invented Corn Flakes. Eight years later, Kellogg founded the Battle Creek Toaster Corn Flake Company. posted by Ed | Building telecommunications infrastructure in rural Maryland Tuesday, July 29, 2003 Allegheny County, MD is in the far northwest corner of the state, about a 2.5 hour drive from Washington. Locating business there has been tough due to the lack or reliable telecommunications. The county is solving this problem with a $4.5 million investment intelecommunications infrastructure. The funding is coming mostly from grants. Partners in the sytem include the board of education, library system, economic development, Western Maryland legislative delegation, Western Maryland Economic Development Task Force, Cumberland city officials and Allegany County commissioners. One county commissioner outlines the logic behind the investment: "President Eisenhower started the interstate highway system and we know what that infrastructure has meant to this country and how we were left out. It was 25 years before we ever got connected to it. "The transportation infrastructure of a knowledge-based world has a different transportation infrastructure system called high-speed telecommunications system. This time we are not going to be left behind, to wait 25 years to compete in the new knowledge-based world," Read about the system. Visit the county's information technology web page. posted by Ed | Maryland predicts uptrend for manufacturers Maryland's EDPros are predicting a rebound in manufacturing. The state's Business and Economic Development mailed a survey to 3,400 manufacturers in April and received a 34% response rate. That's remarkably high for a mail survey. Just image, though, if you did this type of interview over the Internet. Instead of waiting for months to get the results -- it's now 3 months after the survey was mailed -- the Internet enables us to get these results in days. That's the area I've been working on...creating engaging Internet interviews to enable EDPros to build on-line communities with their local companies. The days of the mail survey are numbered. Read more about the survey. posted by Ed | Technology parks in rural areas One of the big issues for EDPros in rural areas is how to develop an innovation strategy that ties into technology-based economic development. The Research Triangle Park is exploring one approach with its mini-hub strategy. You can download a report on mini-hubs from the Regional Initiatives page of the Research Triangle Regional Partnership web site. In West Texas, they are developing a hub-and-spoke incubator network. Here's another example. Anderson, Indiana is about an hour's drive northeast of Indianapolis, and it's the site of the state's second certified technology park. Learn more. The city formed a partnership with Anderson University and Purdue University to create its technological business incubator. We see that an important element in a rural innovation strategy is connection with established colleges and universities. And here's an example from Missouri. Southeast Missouri State University is starting down the path of building an innovation center. They have secured support from the state, including $300,000 in cash and some tax incentives. (Missouri has four other innovation center projects associated with University of Missouri sites in Rolla, Columbia, St. Louis and Kansas City.) Read more. posted by Ed | Preserving rural character Sprawl is eating up the open spaces around Milwaukee. Rural communities are finding that, when it comes to preserving open space, there are no easy answers. One town has adopted a limit of fifty new houses per year, but this approach will likely be tested in court. Other strategies, like purchasing development rights, face other problems. This article provides a good overview of the challenge facing rural communities in the face of sprawl. Read more. posted by Ed | Boeing watch It looks like Witchita has reason to celebrate. Boeing's facility there will be getting a major component of the 7E7: the nose and cockpit. In Japan, three major companies will make about 35% of the new airplane. Meanwhile, in Everett, the factory management is upgrading the production line for the 777, a step that also makes room for another production line. Read more. posted by Ed | Tennessee explores reasons companies say, "No" Sometimes, the best insights come from people who turn you down. Tennessee has asked companies that chose not to locate or expand in the state to explain their reasons. Although the report covers only a fraction of the companies and is not "statistically valid", it does provide some helpful guideposts for product improvement. In Tennessee's case, companies chose other locations because of more affordable land, better tax incentives and lower costs for employee training. When you think about it, a lot of economic development is driven by myths: the stories we tell each other. For example, we tell ourselves stories about why one company locates in one place an not another. But we rarely just ask the company. Reports like this one help you figure out if the myths have any facts behind them. As Matt Kisber, the state's top EDPro notes, "A lot of what you see in that study are things that we already suspected, but it helps to give a higher level of credence to them.'' Read more. Today in our history of innovation... In 1914, transcontinental telephone service began. Thomas A. Watson in San Francisco talked to Alexander Graham Bell in New York City and repeated their historic first conversation from 1876. posted by Ed | Web Watch: New site for NM angel investors Monday, July 28, 2003 Angel investors in New Mexico have launched a new web site that includes channels for both entrepreneurs and investors. The site includes a good overview of angel investing. Visit the site. New Mexico Private Investors, the owner of the site, is a tax-exempt membership organization, 501(c)(6), similar to a chamber of commerce. Read more background on the site.Go. posted by Ed | Defining a strategy for Baltimore County Here's a couple of good articles on the economy of Balrtimore County. The first explores the future of manufacturing. The article gives you a link to a report on Maryland manufacturing by the Maryland Advisory Commission on Manufacturing Competitiveness. Go. The second is an interview with the new EDPro that's heading the county's economic development department. The article explores his thinking in developing an approach for Baltimore County. Good quote: "Given limited resources at the local level, as well as at the state level, it is important for economic development to be strategic. You cannot be all things to all people, and you cannot simply pursue jobs for jobs' sake. Economic development must attempt to be smart and to prioritize." Read more. posted by Ed | Report on U.S. metro economies The U.S. Conference of Mayors has released its latest metro economy report. If you are an EDpro in a metro area, you'll want to download the report. You can from this page. In this report you can find: Your metro area's 2002 Gross Metropolitan Product (GMP) and national rank; Your international ranking; Your average annual growth rate from 1992-2002 and national growth ranking; Your metro area's share of Gross State Product (GSP); and Your real GMP and employment growth rates. posted by Ed | Wireless broadband for a rural town in WVA Glenville, WVA is a small dot on the map, but it will soon have wireless broadband. The Center for Appalachian Network Access is building a wireless broadband Internet network in the town, funded with $250,000 from the Benedum Foundation and the Appalachian Regional Commission. One state official outlines the hopes for the project: “It’s a data-driven world. If you can’t plug in, you’re dead. If we can demonstrate that we can do this and make money, we think it will spread like wildfire across West Virginia and Appalachia.” Learn more. posted by Ed | Howard County incubator adds another program Regular readers will know that the Howard County incubator, Neo Tech, provides a good model for building a range of entrepreneurial services. Now they are adding a program called Sustainable Business Excellence. The program provides a "helicopter view" of business development. With it, managers can see how they can develop their company to graduate from the incubator within two years. Read more. To learn more about this incubator, visit the NeoTech web site. Today in our history of innovation... In 1866, the metric system was authorized for the standardization of weights and measures throughout the United States. posted by Ed | In memory of Jim Alton Sunday, July 27, 2003 Seven years ago, Jim Alton and I met. You'd never think of him as a leader with his pony tail and his Harley. But he taught me some deep and profound lessons about what it takes to build a community. Jim's death has hit hard, and I try to make sense of it. Read my memorial to Jim. Here's an article on how Jim died. Go. posted by Ed | Strategies for rural communities Saturday, July 26, 2003 Economic development is toughest for rural communities, but if you look you can find some inspiring examples. In Rugby, ND, city leaders developed a strategic plan in 1998 and then spent the next five years implementing. They didn't get all confsed with a big strategic planning process. They simply developed a plan that included a list of projects -- things that needed doing. Rugby presents a good case of implementing practical initiatives that moves an economy forward. Learn more. Meanwhile in Greene County, NC, leaders have developed ideas for two projects to boost the local economy. The first involves sweet potatoe production; the second involves raising natuiral beef. Learn more. In Minnesota, Minnesota Rural Partners is in the final stages of planning for its August summit on rural entrepreneurship. The summit will highlight places like Brainerd, where an entrepreneurial environment supports small, sophisticated manufacturers. A good quote from the article: "Cooperation is crucial in rural Minnesota. The laws, economics and politics often favor metro businesses. So in the country, entrepreneurs must stick together". Learn more. Today in our history of innovation... In 1969, scientists had a first look at the 46 pounds of rocks that Apollo 11 astronauts brought back from the moon. posted by Ed | The move toward redevelopment strategies Friday, July 25, 2003 Increasingly, EDPros in metro regions are going to be facing the challenges of redevelopment. The reason: Vacant land is getting harder to find. I'm working in Charleston, SC this week, and we face this problem within the region. Growth in the outlying areas creates traffic problems and places severe stress on a fragile coastal environment. Public sentiment is clearly moving toward the idea of "quality" growth. Redevelopment represents an important strategy for this region's future. The strategy ties into concepts of sustainability, but there are more short-term, practical considerations, as well. Traffic problems are growing, and developers are increasingly sensing opportunities for "in-fill" and redevelopment projects. One obstacle: all of the state incentives are geared toward "greenfield" development of commercial and industrial properties. Another problem: redevelopment is inherently more complex and expensive. Not surprisingly, this branch of economic development is more fully developed in the U.K. -- where it goes under the term, regeneration. But we are starting to see this topic emerge. Learn more about this issue from thia article on redevelopment near Baltimore. Go. posted by Ed | Allegheny County's BR&E program Allegheny County, Maryland has launched Maryland Advantage, their business retention and expansion program. The initiative includes four components: a comprehensive training program, a corporate visitation program, database development and issue follow up. Read more. Today in our history of innovation... In 1871, Seth Wheeler of Albany, NY received the first U.S. patent for perforated wrapping paper. The paper was wound into rolls and could easily be torn off at the perforations. Think of Seth the next time you reach for a paper towel. posted by Ed | Background on the Tennessee Venture Forum Thursday, July 24, 2003 Tennessee is promoting its 7th annual Venture Forum that will be helpd in mid-November. You can read more about the Venture Forum from this article. Or, explore Tennessee Technology Development Corporation web site. posted by Ed | Rolling out Energize Indiana Governor O'Bannon continues to promote Energize Indiana throughout the state. His efforts provide a good example of what EDPros need to do to promote new economic development initiatives. The General Assembly approved Energize Indiana in April. The first two years of the program are financed by $92.4 million in tobacco settlement money. The plan includes a series of tax credits: the research and development tax credit targets companies involved in product development; the venture capital tax credit creates incentives for investors in startups; and the business investment tax credit targets capital investments. Learn more about Energize Indiana. This web page is a good example of providing a range of supporting material for an economic development initiative. Read about the governor's latest stop in Ft. Wayne. Go. Today in our history of innovation... In 1950, the first successful rocket launch from Cape Canaveral took place. posted by Ed | Michigan explores venture capital options Wednesday, July 23, 2003 Here's a review of what Michigan is doing to bump up the volume of venture capital in the state. While the state ranks number 2 in the volume of industrial research, it ranks 21 of 37 reporting states in the volume of venture capital investments. The governor wants to close the gap. Read more. (It's a good day to run this story...see below) Today in our history of innovation... In 1903, in Detroit, the Ford Motor Company sold its first automobile. The Ford Model A featured a twin-cylinder internal combustion engine designed and manufactured by a little-known Michigan machinist, Henry Ford. posted by Ed | The future of agriculture in Nebraska Tuesday, July 22, 2003 Nebraska has produced a report on the future of its agriculture industry. It should be interesting to EDPros in rural communities where agriculture dominates the economy. You can read about the report on this page. Or, download a summary from this page. posted by Ed | Mismanaging the incentive game, Part 4 Well, it appears that Cincinnati and Convergys have come to a new agreeement (after, you will recall, Convergys insisted it was not open to negotiation). There's only one problem now. Nobody is quite sure whether the deal will cost $52 million or $67 million (option A) or $63 million or $76 million (option B). But, no matter, the mayor assures us that Convergys is "'99.9 percent' done on a deal." It should all be over by Thursday. That's the day Convergys says it needs a vote. By that time, according to the article, "city officials should have a more detailed accounting of the costs and benefits of both plans". How reassuring. Read more. posted by Ed | California to open trade office in Tahiti Just kidding. But not by much. Anytime you read an article on economic development with the term, "rhetorical flatulence", you know you are on to something. Well, it appears that the California Trade Agency's 12 foreign offices are under fire. Here's the official version. "Technology, Trade and Commerce Agency's twelve overseas offices promote exports and foreign investment by matching California products and services with foreign buyers..." blah, blah blah. You get the idea. Now here's what they are saying in the press: Michael D. White, editor of the CalTrade Report, characterizes the state's trade promotion effort as a "sad, pathetic disaster". Head of the San Diego-based California Trade Network comments: "Although I was once a huge believer in this type of program I have sadly reached the conclusion that the foreign trade offices should be shut down." (With friends like these..) Well, there may be something to the charge that California cares more about politics than trade. Last summer, California passed legislation to establish another trade office...this time in Armenia (no joke). When a reporter contacted companies about what kind of help they had received from the foreign offices, the performance metrics turned downright ugly: And 31 of 58 businesses she was able to contact denied that the state's overseas offices had been of much help. Hmm, let's do the math: 31 divided by 58... (That's not all. Another six firms told her the deals cited by the trade agency never actually occurred.) Now here's the good part. In an e-mail to other state trade development officers, Gregory Davis, Deputy Director of California Technology, Trade & Commerce Agency in the Office of Export Development writes to his colleagues (presumably with a straight face): "Just be sure that the performance measures in place are acceptable to all those who may have an opinion on the effectiveness of these global outposts. Do your best to assure that reporting is completely accurate and that clearly stated goals and work plans are always in place, reviewed and updated regularly." I'm protecting my source on this one. Read more. posted by Ed | Boeing updates Every Tuesday, the Seattle Times is collecting and publishing information on Boeing's 7E7 project. They provide some useful details on the project. Here's the latest installment. Go. posted by Ed | IBM joins the shift of jobs abroad It's not just the manufacturing jobs that are shipping out to foreign countries, information technology services, back room operations and call centers are increasingly finding workers in other nations. Now comes word that IBM is joing in the move to shift white collar workers abroad. Read more. (Free registration required.) Forrester Research, a Cambridge, Mass., consulting firm, projects that nearly one million IT-related jobs will move offshore over the course of the next 15 years. For example, General Electric, IBM, Motorola and Microsoft have all opened research centers in China recently. According to Stephanie Moore, vice president for outsourcing at Forrester Research: "You can get crackerjack Java programmers in India right out of college for $5,000 a year versus $60,000 here. The technology is such, why be in New York City when you can be 9,000 miles away with far less expense?" In a recent survey by the Information Information Technology Association of America, 12% of IT companies and 3% of non-IT companies say they have already opened up overseas operations. Large IT companies were most likely to say they’ve made this move – 22% have already moved work offshore. We shouldn't wring our hands. The message for us is getting clearer: EDPros need to focus on building brainpower, innovation and entrepreneurship in our communities. There's no time to waste. Today in our history of innovation... In 1933, Wiley Post completed the first round-the-world solo flight (15,596 miles) in his single-engine Lockheed aircraft "Winnie Mae," in 7 days. Post invented the first pressurized suit to wear when he flew around the world. He died with his passenger, Oklahoma humorist Will Rogers, August 15, 1935 in a plane crash in Alaska. posted by Ed | What's the future for Maytag? Monday, July 21, 2003 Maytag is getting tagged for moving jobs to Mexico. The chief executive officer says that no more plants will close. But don't count on it. Appliances are on the endangered list for U.S. manufacturing. A good fact from the article: workers in the Mexican industrial plants earn from $2.60 to $3 per hour including benefits. The average wage at Maytag's Galesburg, Ill., plant is around $15 an hour. Since most of refrigerator manufacturing involves relatively high assembly labor we're in trouble. (Look at the number of screws underneath the gasket in your refrigerator door next time you reach for a snack, and you'll see what I mean.) The alternative is to design for automated assembly...something General Electric has been doing in dishwashers for years. But going that route takes capital (lots of it) and courageous managers. (It also takes accounting systems capable of capturing life cycle costs. Lower warranty costs was one of the unaticipated benefits of moving to more automated assembly for GE.) The easy way out is to jump to low cost maquiladora plants. But that's no solution because China's largest appliance manufacturer, Haier, is knocking on our door... And in China, where I am on the board of a joint venture with U.S., Chinese and Japanese investors in Xi'an, we pay about 500 RMB ($60 per month) for low skilled assembly labor. Sooner or later, we're going to see that our only way to compete against these odds is brainpower and innovation. Read more. posted by Ed | Two site selectors comment on Boeing Two site selection consultants not involved in the Boeing "search" offer their comments. Dennis Donovan is well known to most EDPros. Billy Joe Camp put together Alabama's successful bid for Mercedes. Read on. posted by Ed | Toyota teaches teamwork skills to Kentucky teachers In a commonsense approach to a chronic problem, Toyota in Kentucky will be giving Northern Kentucky teachers and administrators a crash course in team work and problem solving. Most EDPros have seen it: There is too often a wide cultural gap between educators and business people. They spend a lot of time talking past one another. It's not surprising when you think about it. Many teachers come from "education" families, and they have little or no direct experience in business. This approach makes sense, and you can look like a hero if you set one of these courses up in your community. First, though, you need to find an enlightened employer like Toyota. Read more. posted by Ed | Indiana's manufacturing strategy Here's a good article from Nadine Jeserich of the Hudson Institute on Indiana's manufacturing strategy. She examines why support for small and mid-sized manufacturers is so critical to the state. She sees the most innovative of these firms as "laboratories" of experimentation. "(R)ather than spinning our wheels trying to attract out-of-state companies, it's time to hold on to the companies we have and develop homegrown ones that can serve as the basis for the vibrant economy of tomorrow." Read more. posted by Ed | Newspaper tries to figure out if there's a brain drain in El Paso T he El Paso Times started a three part series examining the brain drain in that city. The underlying problem appears to be that the city lacks a broad and deep consensus on how the metro area will compete. Instead, economic development policy is a fashion industry in El Paso, with each new mayor coming up with a new direction and set of initiatives. The long term cost: smart people leave. Read part 1. Other articles in the series. Experts disagree on whether there is a brain drain. Efforts at recruiting as a strategy. Efforts at entrepreneurship as a strategy. posted by Ed | Coming job losses in outbound call centers If you've got outbound telemarketing operations in your community, be prepared for job cuts. A new federal rule enables customers to place their numbers off limits. The rule will cut into outbound telemarketing operations. The effective date for the new rule is October 1. Here's an article looking at the consequences for rural Nebraska. It will orient you to the issue. Go. If you are looking for even more depth from the industry perspective, go here. posted by Ed | Mismanaging the incentive game, part 3 The $63 million deal to keep Convergys in downtown Cincinnati would have been the biggest tax incentive package in the city's history. But last week, the mayor postponed a critical meeting when the votes didn't line up. Now, according to the Cincinnati Enquirer, "With City Hall divided, people on both sides have lost track of who's in charge of negotiating for the city." Read how Cincinnati got into this mess. The Enquirer ran a good series of articles on the controversy yesterday. Read more. And here's another revelation...before proposing the package, the City never ran a cost-benefit analysis (one with explicit assumptions, anyway). So, the newspaper decided to do one. One interesting conclusion from their analysis: Ohio would actually collect more income tax revenue from Convergys employees if the company left the state and relocated in Northern Kentucky. All of this work should have been done by the EDPros in Cincinnati before this deal become public. Now, you've got a situation where journalists are doing a better job at regional economic analysis than the "professionals". (And, by the way, where is the State of Ohio on this issue of economic impacts? You'd think they would have done a regional analysis before committing their funds.) The real cost of this mess is long term...lost public confidence. Nobody is driving the bus. Dumb move for a city trying to get its economic development act together. Read more. Today in our history of innovation... In 1969, Apollo XI astronauts Neil Armstrong and Edwin "Buzz" Aldrin blasted off from the moon after 21 and a half hours on the surface. They returned to the command module piloted by Michael Collins. posted by Ed | Helping small retailers deal with Wal Mart Saturday, July 19, 2003 Last week, I was in Caldwell County, KY following up with a community assessment. We got into a brief discussion of what small retailers could do to compete effectively against the local Wal Mart. I referred the participants in our group to the Univeristy of Wisconsin Extension Service. They have compiled a range of useful reports on building local service and retail businesses. You can download these newsletters from this page. In addition, last week, I came across a good article about the essence of competitive advantage for small businesses: staying close to your customers. Read this article. Here's an article offering additional practical advice. A good friend and architect, Kim Mitchell, also suggests these sites: Sprawl Busters and the Institute for Local Self-Reliance. posted by Ed | Dayton group evaluates an eco-industrial park Eco-industrial parks are a relatively new concept, and if you are unfamiliar with it, read on. More popular in Asian than the U.S. right now, eco-industrial parks are part of a broader trend to balance development with environmental concerns. Other components of this trend include Smart Growth to limit sprawl and "restorative development" to restore our natural and man-made environments. An eco-industrial park represents a community of manufacturing and service businesses located together on a common property. Businesses in the park work together to minimize their environmental impacts by combining a series of environmetally friendly tactics to development. These tactics include reducing pollution, managing waste streams, using renewable energy sources in building design, and promoting energy efficiency. Learn more about Dayton. posted by Ed | Web Watch: Bethlehem, PA Here's a well-designed web site designed specifically for tourists. It's clean, fast, and easy to navigate. Use it as a model for tourism development. Visit the site. Here's an artcle on the strategy behind the site. Learn more. posted by Ed | Indiana broadband conference...good approach for other states Indiana helds its first statewide broadband conference, cosponsored by the Department of Commerce and the Indiana Economic Development Council. Download the conference brochure. It's a good model if you are interested (as you should be) in having your state organization co-sponsor a similar conference in your state. You can read about the summit from this page. Today in our history of innovation... In 1935, Oklahoma City installed the first parking meters in its downtown business district. Carl C. Magee of the Oklahoma City Chamber of Commerce traffic committee, solved the parking problems in downtown Oklahoma City by inventing the parking meter. Downtown workers were parking on streets, staying all day, and leaving few spaces for shoppers and visitors to the business district. posted by Ed | Cleveland moves to light its dark fiber Friday, July 18, 2003 Sitting underneath the streets of Cleveland, unused fiber optic cable presents a new economic development opportunity for the city. There's already a base from which to start. According to Yahoo! Life Magazine, Case Western Reserve University is the most wired campus in the country. Now two groups, one public, the other private, are figuring out ways to exploit this resource. Read more. posted by Ed | Spokane explores San Diego model San Diego Connect is a highly successful business development model, and EDPros in Spokane are now exploring whether to adapt it. Learn more about Spokane's efforts. Visit the San Diego Connect site. posted by Ed | Michigan and Florida lead in broadband policies A new report evaluates state-by-state broadband deployment policies. The ranking is based on categories including right-of-way rules that make it easy to lay high-speed lines, creation of e-government and learning services, and incentives for suppliers to expand access. TechNet, a national organization made up of about 200 chief executives and other industry executives, completed the report. TechNet believes pushing broadband deployment is critical, because the United States is falling behind Asian and European countries in broadband, which is vital for economic development. In a good line, Michigan's Governor Jennifer Granholm said: "We're making Michigan a plug-and-play state to attract digital-age businesses." You can download a copy of the report from this page: Go posted by Ed | Starting a cluster organization for small manufacturers There's nothing new about clusters. Economists will tell you that the concept has been around for years. (They call it "agglomeration economies", though.) The hard part has always been figuring out how to strengthen clusters in a pragmatic, focused way. Racine, WI is taking the first steps with its smaller manufacturers. The challenge with all of these efforts is quickly translating challenges into ideas, ideas into initiatives, and initiatives into action. Figure you have about two meetings to trace this pathway. If, on the third meeting, there's no daylight, then you've lost them. About 10% to 15% of your smaller manufacturers are probably doing pretty well (with value added per employee of over $100,000). Most are not (with value added per employee more in the range of $50,000 to $80,000 per employee). The companies on the edge have no time to waste. Read about how they are starting in Racine. posted by Ed | Insights on business recruitment The South's traditional formula for branch plant recruitment won't work as well anymore, according to Michael Adams, the President of the University of Georgia. Adams was formely a top economic development official in Tennessee, so he knows the game. He helped recruit a Nissan plant to Tennessee in the early 1980s. "Just as financial capital was the currency of the 1980s, the capital of the early 21st century is human capital. It's brainpower." Now economic development requires partnerships among business, government and education leaders. "A compartmentalized approach to economic development in the 21st century will quite simply not work. (The state) needs to have representatives from all those sectors at the table." Here's a good article covering Adams' remarks. Read it. Today in our history of innovation... In 1968, founders of the Intel Corporation, inventor of the microchip, filed incorporation papers. In that year, a Hungarian immigrant by the name of Andy Grove co-founded Intel with a collaboration of colleagues with the same interest, to revolutionize the computer world. In 1971, Intel released its first microprocessor , the 4004 designed for a calculator. In 1972 came the more powerful 8008. The introduction of the 8080 in 1974 made possible the first personal computers. posted by Ed | A Japanese auto parts company announces plant in Arkansas Thursday, July 17, 2003 Another Japanese auto parts company has announced a new plant...this time in Arkansas. A 500 employee facility will manufacture radiators. Read more. posted by Ed | Albany's sales pitch Regular readers know I'm impressed with what's going on in Albany. Here's a good article on how they are selling the region at a recent trade show in San Francisco. Having an energetic salesman helps...a lot. Read more.. posted by Ed | Guilford, CT starts to plan EDPro Mark Waterhouse has set forth a plan for Guilford, CT. He's putting forth a lot of good ideas that might be useful for you, especially if you operate in a smaller town. This article gives you a good feel for what is going on there. Read more. Today in our history of innovation... In 1902, Willis Haviland Carrier completed drawings for what came to be recognized as the world's first scientific air conditioning system. posted by Ed | Grading our education system Wednesday, July 16, 2003 The public has a relatively high regard for pos secondary education. But most adults are unaware of reforms in K-12, even after No Child Left Behind. Learn more. posted by Ed | Mismanaging the incentive game, Part 2 Cincinnati's deal to bow to pressure from Convergys is coming under tighter scrutiny. Convergys, a spin-off from Cincinnati Bell, is an industry leader in IT services. The company manages billing and customer support functions for communications companies. The company has threatened to move operations to Northern Kentucky, if it does not get its deal in Cincinnati. Convergys wants the tax breaks to consolidate its headquarters and operations, which are now spread out among three sites downtown and a call center in suburban Norwood. Cincinnati's Mayor Luken negotiated a $63.4 million package that includes $33 million in tax credits. But yesterday, he pulled the package from consideration by the City Council. Not enough votes. The City package supplements additional incentives from the State. In all, Convergys is willing to spend about $115 million on buying and renovating a downtown office building, while the city and state are proposing nearly $208 million on tax breaks and grants to keep the company. A member of Cincinnati's City Council has raised an interesting point: If the City heads down this path, what's to prevent any other company demanding a similar deal from the City? Read more. Playing hardball, the company's lobbyist says that the deal is not open to renegotiation. Convergys is using its expansion plans as bait. In seeking its deal with City Hall, Convergys said it will add 225 jobs downtown in the next three years and try to double its work force there to 2,900 in 15 years. At best, these claims are unreliable. Convergys competes in an industry that is undergoing strong shifts abroad. Outsourcing will cause the IT services business in the U.S. to shrink, not grow. The same day Convergys is pressuring City Hall, an industry report from Asia notes that 10% of the U.S. IT jobs will be shifting overseas by the end of 2004. One of the leading companies in the trend: Convergys. Read more. Today in our history of innovation... In 1945, the first atomic bomb was exploded at Los Alamos, New Mexico. posted by Ed | Milwaukee starts a regional effort to improve Tuesday, July 15, 2003 Following the model of Chicago Metropolis 2020, a small group of leaders in Milwaukee have launched Campaign for a Strong Regional Future. The goal is to improve regional planning on a range of issues, including transportation, housing, education and employment. Read more. Visit the Chicago Metropolis 2020 web site. posted by Ed | South Carolina implements ED reforms South Carolina has enacted legislation to reform its Commerce Department. The major thrust of the reforms improves disclosure of how public funds are used in economic development. Read more. posted by Ed | Finding the way in Northwest Indiana Northwest Indiana is facing some tough choices in economic development, but turning away from manufacturing shouldn't be one of them. Unfortunately, that's how it's being reported in the press. Check out the headline of this article, "Study: State, region focuses too much on manufacturing". Reading deeper, the major challenge facing the region is an inability to collaborate on a common strategy. Read more. Today in our history of innovation... For those of you in the 7E7 hunt, you can impress yoour friends at Boeing with this one: In 1954, Boeing tested the first commercial jet transport airplane built in US -- the Boeing 707 -- in Renton, WA. posted by Ed | Venture capital for life sciences is hard to find in Texas Monday, July 14, 2003 Folks in Texas are worried that not enough venture capital is available to support business development in the life sciences. Texas ranks 5th overall in NIH research, and its institutions generate good science. But where's the business development? The problem may be related to the lifecyle of Texas' life sciences businesses. In Texas there are relatively more start-ups, which are inherently harder to fund. An additional problem relates to the venture capital industry in Texas. They need lead venture investors who feel comfortable with the complexities of the life sciences. Credible lead investors can then bring in a network of co-investors. Read more. posted by Ed | Innovation Philadelphia kicks off the next phase Innovation Philadelphia is moving into the implementation phase of its strategic planning. They have set up a series of working teams to develop action plans in seven areas. Notice how they have put together these teams, in order to make sure different perspectives are represented. They have a "Trust Team" charged with implementation. Read more. Visit the Innovation Phiadelphia web site to download a copy of their strategic plan. posted by Ed | Mismanaging the incentive game, Part 1 Convergys Corporation, a national call center company, is a master of "squeezing the lemon" -- getting tax incentives out of local governments. Now the company is playing Cincinnati and the State of Ohio for a big package, but it might fly apart. Local officials are starting to throw mudballs at each other. Meanwhile, the officials at the Ohio Department of Development are ducking for cover, while over at the Ohio Tax Credit Authority, they're playing hide the ball. Read more. posted by Ed | ASU forges foreign partnerships to help Arizona Here's another example of what I mean by regions developing their own foreign economic policies. Arizona State University is developing partnerships in Latin America and Canada that will help the state's economic development. Read more. posted by Ed | Albany, as seen from the Left Coast The folks in Oregon are starting to notice what is going on in Albany, NY. This article also points to the weaknesses of business journalism. The author uses the "build it, they will come" Field of Dreams metaphor. But he fails to explore in any depth the complex, coordinated nature of Albany's investment strategy. Let's be clear. Economic development is about big bets and large risks. Economic development pushes out the boundaries of a market. Out on the edge, market signals are weak. Economic development forms partnerships to make investments that may not be privately profitable, but they are publicly valuable. The trick is getting the balance right. Some of these investments, like stadiums and schools, should be publicly led and privately supported. Others -- notably venture capital and work skills initiatives -- work better if they are privately led and publicly supported. Doing it right is a complex, subtle job. For some time, I have admired the work of Angelou Economics, and I agree with Angelos Angelou: "Money talks, and Albany was doing the right thing at the right time." Read more. Here's another view from Albany . posted by Ed | North Carolina's cash incentive program Here's an overview of One North Carolina, the state's cash incentive program. EDPro Bill Shore says, "It is without a doubt the single most powerful tool that we have in our arsenal. It has made a difference in getting more companies to consider North Carolina over neighboring states than any other factor." Read more. Today in our history of innovation... In 1868, Alvin J. Fellows of New Haven, Connecticut received the first U.S. patent for a spring tape measure. posted by Ed | Coming to a region near you: foreign economic policies Saturday, July 12, 2003 In the years ahead, we're going to see more U.S. regions crafting their own foreign economic policies. Here's an example. Last week, the Port of Houston Authority struck an alliance with the Panama Canal Authority to coordinate marketing, technology development and business development activities. Containerized cargo flowing through the Panama Canal on the Asia-U.S. Gulf Coast and East Coast route has grown significantly during the past few years. The two authorities want to accelerate this trend by increasing traffic through the Canal. Read more. posted by Ed | Our Fred Astaire award goes to... Allegheny County has launched a Business Expansion Network designed to provide more effective public service to expanding businesses in the county. Eligible companies must employ at least 15 full-time workers, have been in businesses at least five years with stable or growing revenue and be committed to increasing the numbers of employees by at least 10 percent by creating "new, family-sustaining jobs". Politics, not economics may be driving the bus on this one. The county executive is in a tight political campaign. His opponent is crying, "Foul!". Ronnie Bryant, president and chief operating officer of the Pittsburgh Regional Alliance, gets this week's EDPro Fred Astaire Award for dancing around this one. Note how Ronnie deftly switches direction in his prepared statement: "County Executive Roddey's creation of Business Expansion Network is a move in the right direction. This new network ties into two calling programs for existing businesses: One that the Pittsburgh Regional Alliance implemented earlier this year and the other is the statewide Team PA program." (Ronnie and I used to work together in Shreveport, LA. Then he hit the big time.) Learn more. posted by Ed | Research Triangle Regional Partnership expands Despite tough economic times, Research Triangle Regional Partnership continues to expand. EDPros in other communities can use this example to defend their budgets. RTRP's budget for the 2003-2004 fiscal year is up by 9 percent, to $987,328. (This budget total is actually quite modest.) To measure its success, RTRP initiated a three-year marketing plan in 2002 that focuses on Web site hits, the number of inquiries from potential clients and the number of new active economic development projects in the region. Learn more about how RTRP manages its budget. Go. Today in our history of innovation... In 1859, William Goodale in Massachusetts patented the paper bag manufacturing machine, and grocery shopping was never the same. posted by Ed | Hudson Valley launches new marketing effort Friday, July 11, 2003 A Hudson Valley partnership of eight counties launched their regional marketing program this week. This effort is no small potatoes: Central Hudson Gas & Electric Corp. will fund the initiative with $7.5 million from its customer benefit fund. With a five year program, operating costs would be $1.5 million per year. These regional efforts can break down if operating procedures are not clearly outlined about how leads will be handled once they are generated. In this case, the partnership appears to be focusing on a limited list of properties that meet clear criteria. You can read more about the effort and visit their web site. posted by Ed | Development finance reports available If you are involved with development finance, you will want to look at two new reports that detail communinty development financial institutions (CDFI's). The Corporation for Enterprise Development produced the report based on data from 571 institutions. On this page, look at the second item in the news column. Click on the link and it will take you to the page where you can download the reports. Go posted by Ed | Elements of a bargain To compete in a brainpower economy, your community will need new education partnerships among business firms, K-12 and post-secondary education. Here's a model program from Flathead Valley, Montana. Through the Flathead Business and Education Council, business, K-12 and community college leaders struck a bargain...for mutual benefit. In discussions within the Council, educators learned how to better design courses to prepare students for success in their working lives. These skills are not widely understood in our secondary or post-secondary schools. They include such skills as working in groups, analyzing problems, and communicating effectively. The business community contributed by pinpointing travel and tourism, health care, construction, retail and financial services as economic growth areas for the college to target with training programs. In addition, businesses provided opportunities for internships and job shadowing for on-the-job training experiences. Businesses also used the community college's resources to obtain technical training for their own employees. You can follow the outlines of this approach in any community at both the secondary and post-secondary level. Read more. posted by Ed | San Antonio begins to accelerate There's nothing like a Toyota plant to boost your spirits. Leaders in San Antonio got together recently to go over their revised economic development strategy. Among other steps, they have added manufacturing to their list of targeted industries. The Economic Development Foundation now has 88 active relocation or expansion prospects, and at least 10 of them are potential Toyota suppliers. Equally important, University of Texas at San Antonio will soon announce 10 more endowed chairs. You can read more, or download the strategy from this page. posted by Ed | Keep an eye on Marshall University in West Virginia Marshall University in West Virginia is another campus to watch. The university is making a push into biotechnology, and it has launched the Institute for Development of Entrepreneurial Advances (IDEA) The new institute will focus on the commercialization of technology and science developed on the campus and throughout the region. Read more. (Having Robert Byrd as your U.S. senator helps. As staff counsel to the Senate Democratic Policy Committee, I used to work for Senator Byrd on Capitol Hill. He is a master or pork barrel politics. On one occasion, he abruptly interrupted our meeting on national tax policy to make a telephone call of a freshman House member. He spent five minutes twisting the poor fellow's arm over a small bridge project in West Virginia.) Commercialization and technology transfer are critical to the process of business development. As Maryland's innovation indicators recently showed, it's not enough for universities to produce good science. They must also build the complex pathways from lab to market. This is tricky and subtle business. If you are interested in learning more, start with the Association of University Technology Managers. Visit the AUTM web site. A notable quote from Selby Wellman, a Marshall alumnus and former vice president of Cisco Systems: "We are going to organically grow (businesses) in this area as opposed to the more difficult task of recruiting them." posted by Ed | Next, you press 'Send' The governor of Iowa is pushing his state toward a high technology future, but now the dirty little secret is out. The governor does not know how to answer his own e-mail. Read more. In a smart move, though, the governor was out of town "on vacation" when the story broke, and he has been unavailable for comment. (Meanwhile, officials with the state Department of Administrative Services said there are classes available for state employees who want to improve their computer skills.) posted by Ed | Oregon moves to expand venture capital investment Joining several other states, Oregon is taking steps to deepen the pool of venture capital funds in the state. The bill, which the governor has indicated he will sign, attempts to place $100 million from public pension funds into Oregon venture capital firms by Jan. 1, 2008. The firms will then attempt to fund Oregon-based companies. They will look outside the state if they cannot find enough good deals. Read more. Today in our history of innovation... In 1936, the Triborough Bridge linking Manhattan, Bronx & Queens opened. The Triborough Bridge connects Queens, Manhattan, and the Bronx. posted by Ed | Chrysler delays decision on truck plant Thursday, July 10, 2003 Daimler Chrysler has delayed its decision on whether to go ahead with a new truck plant near Savannah. The plant would manufacture Sprinter cargo vans. Nearly all cargo vans go into commercial use, where they are commonly used for cargo transport. The market for cargo vans has slowed with the economy, and Chrysler's mangers are sharpening their pencils to see if the payback is sufficiently high to justify the investment. The company is still trying to determine whether to build the $700 million plant or continue importing trucks from Germany. Although Savannah's EDpros are putting on a brave face, there's reason to worry. Cargo vans represent a small market. Sales of full-size passenger vans and cargo vans combined account for less than 2 percent of all new vehicle sales in the U.S. Ford and GM dominate the market, and Chrylser will have to go against some tough competition to build a market position. Even worse, the market is soft. Total sales of cargo vans fell to 264,846 in 2002, down 20 percent from the five-year high of 318,458 reached in 1999. Read more. posted by Ed | Here's some interesting background on incubators Here's an interesting fact: the first incubator in the U.S. started operation in 1959 in upstate New York -- Batavia, to be precise. Owners of a 850,000 squre foot and abandoned manufacturing plant could not rent it out to a single tenant, so they cut up the space an rented it to a series of small companies. The Batavia Industrial Center continues in operation. This article gives you an overview of some of the recent trends in incubators. It includes the Howard County incubator that I featured in a posting last week. Read more. posted by Ed | Indiana examines broadband access A new report assesses Indiana's broadband access and concludes that the state is coming up short. At the same time, a lot of innovative initiatives are underway: For example, Scottsburg (in southern Indiana near Louisville) started a city-owned utility to provide consistent access. In Bloomington, Digital Underground is installing underground fiber optic conduits throughout the city. The Department of Commerce, Indiana Economic Development Council and Central Indiana Corporate Partnership sponsored the report. You can download it here. On July 16 the Indiana Broadband Conference will explore the implications of the report. Participants hope to define initiatives to get broadband access to 80 percent of Indiana residents by the end of next year. Learn more. Here's an article that discusses various national efforts to bring broadband to rural areas. Go. Today in our history of innovation... Sometimes we forget that innovation is also important in the public sector. In 1892, public officials in Bellefountaine, Ohio cut the ribbon on the first concrete-paved street. In 1933, public officials in Eastchester Township, NY began using the first police radio system. posted by Ed | Creating a sense of place in Central Florida Tuesday, July 08, 2003 Creating a brand for your community is more than a logo or a slogan. It is creating a sense of place. Establishing that sense of place can begin by exploring options for heritage tourism. As states like Iowa are discovering, building a sense of place creates an opportunity to draw tourists, especially to smaller towns. (This is another example of how the lines between economic development and tourism are blurring.) But most important, a sense of place is critical for retaining and attracting bright young minds. Here is a really good article about how some smaller towns in Central Florida are approaching the challenge of branding. Go. posted by Ed | A museum cluster in Harrisburg Now this might be taking this cluster business a step too far. The mayor of Harrisburg, PA is moving ahead with plans to establish a National Museum of the Old West. He's invested $4.8 million in public money (but not from the taxpayers, he carefully adds) for memorabilia. He sends a couple of city employees out West to rent a pick-up and drive stuff back to Harrisburg. He's adding his Wild West museum to the State Capitol Museum, a National Civil War Museum, and the Pennsylvania National Fire Museum to create what the mayor calls "a critical mass". The mayor's strategy raises an interesting question for EDPros to ponder: When does a vision become an hallucination? Read more. posted by Ed | Western Pennsylvania promotes robotics, advanced manufacturing Western Pennsylvania is another area to watch. Some weeks ago, regional leaders announced the formation of the Robotics Foundry, an initiative to promote the region's considerable assets in robotics and advanced manufacturing. Now comes word that the region is heavily recruiting Northrup Grumman to establish a strong presence in the region. Read more. posted by Ed | NASA drawn to Albany In another step to build its technology base, Albany has added a small NASA office to Albany NanoTech. Read more. As regular readers know, I'm impressed with the focused approach Albany is taking to focus technology-based development. Our challenge ahead is to build more globally competitive, regional innovation economies. The Albany region serves as a model for others to follow. Today in our history of innovation... In 1800, Harvard's Dr. Benjamin Waterhouse administered the first successful vaccination in the U.S. using cowpox serum to prevent smallpox. The patient: his five year-old son, Daniel. posted by Ed | Midwest states push venture capital Monday, July 07, 2003 In an effort to boost their economies, a number of Midwest states are pushing venture capital initiatives. There's only one problem. As one venture capitalist comments: ""You get the feeling people are groping in this direction without a whole lot of understanding as to what they're trying to achieve." Read more. Building venture capital networks is a subtle business, and throwing money at the problem is not a good approach. Instead, states should be looking to identify ways to co-invest with established firms. Massachusetts Technology Development Corporation provides a good model to follow. Browse the As MTDC notes, "We require co-investors, including financially sophisticated angel investors. MTDC is rarely the 'financial lead', but it is not unusual for our Corporation to make the first formal commitment." On the federal level, the SBIR program is designed to lead projects to co-investors through a three stage process. Both MTDC and SBIR have been around for longer than 20 years. There is a lot of good experience to guide new initiatives. posted by Ed | Hattiesburg connects the dots between research and manufacturing The Area Development Partnership represents the metro chamber in Hattiesburg, MS, and it is one of the leading economic development organizations in the South. Nearby, the University of Southern Mississippi is a leader in economic development. So, it is noteworthy when they shift their strategy from traditional manufacturing assembly operations to technology-based manufacturing. In particular, the ADP has leveraged research strength in polymers at the University of Southern Mississippi to attract a polymer manufacturing company from California. This deal represents a model of more to come. Read more. (As an aside, I met Angie Dvorak, USM's vice president of research and economic development, when she was working in Ashland, KY, and she is one dynamic professional. She'd be a great speaker at an annual meeting or board retreat.) posted by Ed | Business retention and expansion keeps Boeing in perspective Valerie Manning, President and CEO of the Greater Phoenix Chamber of Commerce, has written a good article on the importance of business retention and expansion. It helps keep projects like Boeing in perspective. Read more. (You can use this article as a model for your own submission to your local press.) (I disagree with her on one point: I'm not sure that it makes sense for Phoenix to bid on the Boeing plant. Aside from the fact that Boeing's probability of moving out of Everett is near zero, Boeing wants a deep water port for the 7E7. Last time I looked, Phoenix was not on the water.) posted by Ed | Technology transitions in Arizona Here's an assessment of technology transitions in Arizona, where "universities...are emerging as the new powers." "Better funding, dynamic leaders and a new consensus about the value of universities as economic engines have changed the game." Read more. posted by Ed | North Carolina's biotech plans are bending to political winds The North Carolina State Senate is planning major new investments in biotech training facilities across the state. But the debate getting more political (who gets what?), and that's a danger signal. Read more. In another sign that there's more talk than action, the North Carolina Biotechnology Center will receive less than it requested. Instead of $10 million, the biotech center will receive $5.9 million, about the same as the year before. Learn more about North Carolina's biotech plans. posted by Ed | Fort Wayne and the lessons of turbulence Fort Wayne, IN has been through some tough times. In 1983, the International Harvester plant closed and sent a shock wave through the community. It's a good story of how economic turbulence -- brought on by globalization -- can catch you off guard. One obeserver described the days when International Harvester employed as many as 10,500 people in the area: "We were comfortable where we were. We were going through economic swings, but there was no compelling need to do anything other than continue to do business as usual." Then WHAM, the big doors shut. "The top lesson we learned was that you never take economic development for granted. You need to have a proactive strategy at all times." Read the background. Today in our history of innovation... In 1936, U.S. Patent Office issued several patents for the Phillips-head screw and screwdriver to its inventor, Henry F. Phillips. posted by Ed | Maryland Innovation Index Saturday, July 05, 2003 Maryland has released its latest innovation index. Tthe report reveals that Maryland and Virginia, despite heavy federal R&D investments, lag in developing new businesses. Federal agencies invested $4.9 billion in Maryland (it ranked No. 1) and $2.2 billion in Virginia (No. 12) for research and development projects. But with 13 each, Virginia and Maryland tied at No. 32 in the nation in the number of companies that spin out of public universities. Read more. posted by Ed | The Innovation Center at Ohio University Ohio University has moved its incubator, the OU Innovation Center, into a new $5.7 million facility. The Center's tenants include technology companies. The lead tenant: a biotech firm that manufactures diagnostic kits. Tenants pay minimum market rents, with the smallest space going for $150 per month. Companies in the incubator benefit from the services provided by the Center. Most important is networking. The Center proves that sophisticated business development can take place beyond metro areas. You do not need a top tier research university, either. Read more. Today in our history of innovation... In 1944, Harry Crosby took the first rocket airplane, MX-324, for its maiden flight, at Harper Dry Lake, Calif. Northrop built the airplane. posted by Ed | Providence releases new ED strategy Thursday, July 03, 2003 Providence has a new economic development strategy. Hoping to sweep away the political past of former mayor Buddy Cianci, the new mayor has launched the Providence Economic Development Partnership. (Cianci's buddies ran the old agency, the Providence Economic Development Corporation, and it was too tough to reform.) Cianci, you may remember, was convicted on corruption charges....Nevertheless, Cianci is revered in Providence, credited with revitalizing the city's economy and image. When I was working as a corporate strategy consultant, I lived in Providence and had the opportunity to view Buddy (everyone called him that) up close. Buddy had a passion for the job but also a dark side. Inside Politics provides a good story to illustrate. Entertainer Harry Connick, Jr tells of his visit to Providence several years ago. While performing on stage, he noticed an older man and two women standing just off stage in the line of his sight. Worried that this man would distract him from his performance, Connick asked his tour manager to get the man to move elsewhere off-stage so as not to be distracting. Several times, the tour manager asked this man to move, but the man with his arms crossed across his chest refused to move. Finally, after a last request, the man whom Connick later found out was Mayor Cianci told the tour manager, "if you ask me to move again, I can get you whacked." Buddy is now in the Big House. And Providence has a strategy that points the city in a new direction. Download the report. posted by Ed | American Airlines cutbacks If American Airlines serves your community, be prepared for some cutbacks. Here are two recent articles from two of American's hub cities: Dallas and St. Louis. In both cities, American will be looking for deeper incentives. All aspects of the airlines operation will be affected, including flight operations, hubs, call centers and maintenance depots. Dallas article and St. Louis article. Today in our history of innovation... In 1952, Dr. Forest Dewey Dodrill at the Harper Hospital in Detroit, undertook the first surgical operation in the U.S. to expose the heart's mitral valve for a prolonged time. posted by Ed | Business plan competition build an entrepreneurial culture Wednesday, July 02, 2003 Business plan competitions are an effective way to build an entrepreneurial culture in your region. If you have a college or university nearby, consider promoting a business plan competition. Here's a good article from the University of Chicago. Go. You can get a good perspective from this McKinsey article. It discusses using business plan competitions to create your own Silicon Valley. Download from this page. posted by Ed | Milken Report links In an earlier post, I noted the release of the Milken Institute annual Best Performing Cities report. I only mentioned the listings for the Top 200 Metros and the Smaller 96 Metros. Here's a listing of complete links. The listing of the Top 200 Metros is available here. The listing of the Smaller 96 Metros is available here. Their report is now available on line. You can download it from this page. Go. Today in our history of innovation... In 1922, a day before his 19th birthday, Ralph W. Samuelson became the first person to ride on water skis. He invented the skis using two boards, eight feet long and nine inches wide, with curved tips. He had boiled the tips in his mother's copper kettle. Using clamps and braces, he curved the tips of the boards and let them set for two days. (His earlier attempts using snow skis and barrel staves failed.) posted by Ed | Impressive incubator in Howard County, MD Here's a good profile of a succesful incubator in Howard County, Maryland. A couple of intersting points: First, a recent National Business Incubation Association survey found that nationally 87% of companies that have participated in an incubation process are still operating successfully five years after graduation. In addition, 84% of incubator graduates stay in their communities. Second, the NeoTech incubator is part of a broader effort to build an entrepreneurship and innovation network in the county. It is not a "stand-alone" project. Read more about their approach, or visit the incubator web site. posted by Ed | Web watch: Tempe, AZ business portal Tuesday, July 01, 2003 Here's a well-designed and organized local government web site for business. It covers a lot of ground by having a tight organization. Look carefully at the organization, and you'll see that the navigation works well for a wide range of business situations and issues. Refer to this site when you are talking to local government officials about how to streamline their operations for businesses on the web. In August or September, Tempe will add more information, including maps of commercial and industrial properties and maps of vacant land in Tempe. Visit the site. If you are really getting into the development of local government e-strategies to support busienss development, visit the Center for Technology in Government. posted by Ed | Cincinnati launches privately-led development group In an effort to revitalize the city's development efforts, Mayor Luken has spearheaded a new development entity and placed it firmly in the hands of the private sector. Luken projects that the private sector will raise $50 million and the City will contribute $100 million to the strategy. The goal is to "do deals". As I see it, the City will be a largely passive investor in deals initiated by the new organization, Cincinnati Center City Development Corporation. Learn more. posted by Ed | Portland, OR tries to get biotech into focus The Oregon Health Science Center is a strong research institution that produces good science. But can it be the anchor for business development? Probably, but some additional pieces need to be put in place, and leaders need to be careful not to oversell. Read how the leaders in Portland are trying find the right perspective from which to draw a future for biotech for their region. Go. posted by Ed | Water shortages and sustainability Water shortages will be an increasing issue that EDPros face. And shortages will happen not just in the desert Southwest, where you expect them, but also throughout the South, in places like Atlanta. In these regions, water will become the cutting edge issue in sustainability. Read how the business community woke up to the issue in New Mexico. Go. Today in our history of innovation... In 1910, the Ward Baking Company in Chicago opened the first completely automatic bread plant in the U.S. The dough was not touched, nor the bread handled until it was placed on the wrapping machine. posted by Ed | |
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