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Economy Watch
Saturday, November 29, 2003 Here's the best economics writing from the past week. Economic recovery gathers speed, Fed reports Manufacturing jobs vanish as Illinois' economy evolves Western economy expanding, says Fed report Economists:World growth gaining pace Fresh signs of solid U.S. economy ABC/Money consumer confidence bolts to 14-month high Economists predict strong growth posted by Ed | Boeing update The Boeing deal has split the site selectors into two camps. The first group sees the site selection process as a way to extract concessions from Washington State. (A stratagem that worked.) The second group believes that the process is legitimate, and that Boeing will likely locate production where costs are lower. (In my view, the first group has it right: Boeing has excess production facilities in Everett, an established labor pool, stable supplier relationships, and a huge concession package from the State. The labor content in the final 7E7 is likely to be relatively small, since final assembly will be from component parts. Labor cost differentials will not matter much. Nor will other business costs, which comprise a small fraction of total costs. Boeing is trying to become the Dell Computers of commercial aircraft. With the 7E7, it is developing a new low-cost, process manufacturing model. This challenge is already formidable. Successful implementation of "Six Sigma" will matter more to Boeing than relative business climates. Further, the design headquarters for the plane will be in Washington. Say what you will about "virtual" corporations and CAD/CAM: face-to-face collaboration between design engineers and and production engineers on the shop floor still matters. Speed also favors Everett. This project carries enough risk as it is. Why should Boeing increase the project risk with a greenfield assembly operation?) Read more. Meanwhile, Boeing officials continue to roll out details of how the 7E7 will be built. Read more. posted by Ed | New boost for nanotechnology Last week marked the passage of the Nanotechnology Research and Development Act. The final language authorizes nearly $3.7 billion for research and development programs coordinated among several federal agencies. Learn more. Download a copy of the legislation. Go. posted by Ed | Texas goes fishing in California Add San Antonio and Texas to the list of recruiters trying to find gold in the California hills. Read more. The intractable problems of California's business climate has led San Jose to focus its efforts on entrepreneurial growth companies. EDPros in San Jose concede that once companies reach a certain scale, they will likely move their operations elsewhere. posted by Ed | A new era for the global auto industry The global auto industry has entered a new phase. Volkswagen has announced that it will test the market for its upscale Polo model in Australia. The car is produced from its Chinese joint venture in Shanghai. This step marks the first time Chinese made automobiles have targeted upscale markets in developed countries. Shanghai Volkswagen's first made-for-export Polo sedan rolled off the assembly line yesterday. But it will not alone for long. Honda is planning to export Accords from China to Europe and Asia soon. Read more. posted by Ed | Fairbanks finds a niche Now here's a niche. Fairbanks has a small, but growing business in cold weather testing. Automakers send cars to Fairbanks to test how they perform at 40 below. EDPros in Fairbanks think that the city's amentiities can keep it ahead of competitors in Northern Canada and Siberia. Read more. posted by Ed | Wisconsin's legislation to encourage start-ups Business and legislative leaders in Wisconsin are trying to solve a problem. Wisconsin ranks 4th nationally in the number of patents issued, but ranks 47th in the number of start-up companies. Changing the viewpoint of investors to encourage more early stage financing is not an easy task, though. Read more. Today in our history of innovation... In 1961, the first U.S. satellite carrying an animal was launched by Mercury-Atlas 5 from Cape Canaveral. The passenger was Enos, a five-year-old chimpanzee, on a 2-orbit ride for 3 hours and 20 minutes. The test was the prelude to John Glenn's orbital space flight. posted by Ed | Tennessee Valley Technology Corridor Friday, November 28, 2003 The Tennessee Valley Technology Corridor links technology assets in parts of four states: Alabama, Tennessee, Kentucky and Virginia. With strong congressional sponsorship, the region has been pulling down some significant funding. The latest initative is a $500,000 grant to develop a high-tech workforce. The initative will coordinate and focus the collective capabilities of 18 community colleges and seven technology centers in the region. Learn more. The Corridor is a good model of congressional coordination across state lines. Learn more about the Corridor. Go. posted by Ed | Three interesting "brainpower" initiatives Here are three interesting initiatives that I recently came across. The first teaches 'soft skills' to job seekers. A consortium of businesses have come together to promote entry level skills, such as interview skills, time management, and work ethics. Learn more. The second teaches business skills to young people. A group of business people came together to create an initiative to provide early career exploration opportunities, the development of personal values, decision making skills, and entrepreneurship skills. Learn more. The third involves a $25 million center in New York State to confront the growing shortage of automobile technicians. Again, employers are promoting this initiative. Learn more. Today in our history of innovation... In 1895, James Frank Duryea won the first American Automobile Race in Chicago, sponsored by the Chicago Times-Herald. In 1948, the Polaroid Land Camera first went on sale at a Boston department store for $89.. posted by Ed | Cut successful manufacturing initiatives? Go figure. Wednesday, November 26, 2003 According to the respected Michigan Manufacturing Technology Center, Congress is moving to cut the main federal program serving America's small manufacturers by 63 percent. For the last 15 years, a federal government initiative, the Manufacturing Extension Partnership (MEP) Program, has operated as a partnership among federal, state and local organizations and institutions, including the private sector, to help small manufacturers improve their performance. Although the federal government provides funding for the program, the money is not used to subsidize small firms. Firms are expected to pay the incremental costs of direct services. Congress will provide only $39.6 million for MEP this year. Last year, Congress funded MEP at $106.6 million. According to MMTC, the cuts will effectively gut the program. Read more. posted by Ed | Resource: Innovative practices for employing inner city workers WorkforceAdvantage.org identifies the most innovative practices for boosting employment opportunities for entry-level and low-skill workers in the inner cities. The site offers case examples, Keys to Success, company files, and additional resources to help EDPros find model initiatives to develop inner city workforces. The Initiative for a Competitive Inner City and Jobs for the Future launched the site. Visit the site. posted by Ed | Web Watch: Wisconsin business plan competition In an effort to build a more entrepreneurial culture in Wisconsin, the governor has launched a statewide business plan competition. The initiative, produced by the Wisconsin Technology Council, is designed to speed ideas to the marketplace. Visit the site. Go. posted by Ed | Sarasota County's economic development strategy Here's a good article that provides us an overview of Sarasota's economic development strategy. Go. You can learn more about the process going on in Sarasota County by visiting their project web site. Go. posted by Ed | Dallas-Ft. Worth forms regional life sciences partnership A coalition of groups, led by the Greater Dallas Chamber and the Fort Worth Chamber have formed the BioMetroplex Alliance to promote life sciences in the region. According to a press release on the Alliance, the region has more than 100 biomedical technology companies and 1,158 medical research, development and testing laboratories. Read more. Visit the web site. Go. posted by Ed | Branding on a national scale Here's an interesting article about how one branding consultant is developing a business around national branding. A couple of interesting observations: "Changing the image of a country is no easier than changing the image of a company or an individual. While branding may be able to help a country improve its communication with the world, it won't work if the country sends out lies or hype." Branding is something that can take 10 or 20 years to achieve...as a result, advertising is not a solution. Read more. posted by Ed | Our science and engineering workforce A new report from the National Science Board alerts us to a disturbing trend...our increasing dependence on foreign workers for science and engineering talent. The report resulted from a three-year study into long-term national workforce trends in science and engineering. The report recommends steps we can take to increase the flow of U.S. born scientists and engineers. Read more. You can download the report from this page. Go. posted by Ed | Taxation v. investment Tuesday, November 25, 2003 Increasingly, states and localities will be facing this choice: raise taxes to invest in essential public investments (like education) or forgo tax increases in the hope that lower taxes will spur private investment. Governor Warner in Virginia has joined the issue in his state with a new tax proposal. Read more. posted by Ed | The Florida biotech deal: the morning after Newspapers in Florida are waking up to a commnly known fact: biomedical research jobs do not pay all that well. Here's a quote on the $569 million deal: "But for the near future, Scripps' windfall of taxpayer money guarantees only 545 jobs by its seventh year of operation. And most of them will be filled with people like Webb -- modestly paid research or administrative assistants who will earn salaries that hover around the county's current average of $37,000." Read more. posted by Ed | Albany steps closer to a chip plant Albany is woprking hard to land the next big chip plant, and they may not have to wait all that long. The semiconductor industry is picking up. AMD has announced plans for a new plant (although no word on where, yet), and Governor Pataki recently received the semiconductor industry's highest award recently. The action has now shifted to the last stages of project approval for the Luther Forest Technology Campus. Learn more here and here. posted by Ed | Hmm, maybe we shouldn't do this... Indiana's governor has terminated a four year contract with a company based in India to perform IT work for the state's unemployment agency. The contract involves upgrading the computers that process unemployment claims. Governor Kernan said the agency's request for competitive proposals had been designed to restrictively. It "virtually knocked Indiana companies out of the running." Read more. posted by Ed | New study on sprawl Monday, November 24, 2003 Here's a new report on the economic impacts of sprawl. The study, The Jobs are Back in Town: Urban Smart Growth and Construction Employment, examines how growth-management policies affect construction jobs. The report provides evidence that smart growth can create more employment opportunities than sprawl for workers who build residential and commercial buildings and transportation infrastructure. Download the report. Go. posted by Ed | Toledo mayor and his competitors Here's an interesting story from Toledo. It demonstrates the understandable tendency of political leaders to fragment the economic development process. Read more. posted by Ed | Incentives for struggling companies The experience of Indianapolis and United Airlines demonstrates the hazards of providing incentives for financially struggling companies. United was supposed to hire 7,500 employees for a maintenance facility. Now the operation is closed, and the city is stuck marketing a specialized building. Kansas City is hoping not to repeat the mistake with their recent deal to maintain American Airlines' maintenance facility. Read more. But New Orleans takes the cake. They are providing incentives to a company recently delisted from the American Stock Exchange. Buffalo has been burned by the same company. The firm is leaving after less than a year in a new headquarters building that carried about $600,000 in local tax incentives. Read more. posted by Ed | Economy Watch Sunday, November 23, 2003 Here's the best economics writing I've found in the past week. U.S. data underestimates new jobless claims NPR Poll: Economy Seems to Help Bush The tech economy prepares for takeoff Greenspan says trade deficits have not harmed U.S. economy so far U.S. Says Broad Americas Pact Still Possible by 2005 Economists See Solid, if Not Spectacular, U.S. Growth Into 2004 posted by Ed | Anatomy of a plant closure? We often hear about plant closures when the are announced. Rarely do we see the process unfold in the press. Here is an excellent article on the decision Electrolux is facing on whether to close its refrigerator manufacturing facility in Michigan. It will give you a sense of the dynamics that companies are facing on some manufacturing that has a relatively high labor content. Refrigerators involve a lot of relatively low skilled assembly work. That's why they are so vulnerable to migration to Mexico. Read more. Contrast the manufacturing economics for Plantronics, a manufacturer of headsets. Labor accounts for only 1.5% of the company's revenues. So the company does not see an advantage of shifting production from Mexico to lower cost China. Read more. posted by Ed | Got a spec building? Try eBay Saturday, November 22, 2003 A small school district in Kansas had a problem: How to get rid of a obsolete middle school building? Some bright light came up with the idea of selling the building on eBay, and it worked. Read more. posted by Ed | Northeast Ohio launches 2 entrepreneurship initiatives Last week saw business and education leaders in Northeast Ohio launch two new initiatives to improve support to entrepreneurs. The first involves a partnership between our university, Case Western Reserve, and Nortech, the regional technology council. The new regional initiative will, among other things, concentrate resources into assisting entrepreneurs in the region. Read more. In another effort, Ashland University, located about 60 miles southwest of Cleveland, inaugurated the Burton D. Morgan Center for Entrepreneurial Studies. Read more. posted by Ed | Immigrant entrepreneurs reaching higher Foreign born entrepreneurs are changing the face of the Seattle economy. Typically, we think of immigrant entrepreneurs starting in small, local businesses, such as restaurants, hotels, or convenience stores. These local businesses typically do not have a major impact on propserity in a regional economy. Now, more foreign-born entrepreneurs are starting growth-oriented businesses. These businesses can add significant numbers of jobs, as well as higher incomes. A good quote explains part of the story: "As an immigrant, you have a high tolerance for dealing with uncertainty. If you leave your country, your home and familiar surroundings, you know how to deal with uncertainty." Read more. posted by Ed | Minnesota's statewide retention initiative The Minnesota Chamber of Commerce is launching a statewide business retention initiative, called Grow Minnesota. The project involves a colaition of about thirty local chambers and a budget of $300,000. Grow Minnesota! a private sector led effort of CEO's visiting with CEO's about the health of their companies in Minnesota. Grow Minnesota! will act as an early warning system to identify issues that may slow private sector job growth or encourage expansion in another state or overseas. Read more. posted by Ed | Linking rural communities It's an old concept: rural communities coming together to build their economies. But in a modern context, the same rural impulse to help each other provides a path to higher levels of prosperity. In Kansas, four counties are coming together to encourage more entrepreneurship. Read more about the Quad Counties Entrepise program posted by Ed | Smaller, more flexible agribusiness systems One of the promising economic development strategies for rural areas and regions involves building smaller, more flexible and sustainable agribusiness systems. Once a fringe business model for the health conscious, organic produce is aggregating into a large market opportunity. Here's an example of a business in Vermont that fits this profile. Read more. The U.S. has the largest market in organic foods, but the economic development strategy is not as well defined as it is in the U.K. Learn more by visiting the Soil Association. In a recent report, the Soil Association, which certifies organic foods in the U.K. estimated that the size of the U.S. market for organic foods was $9.5 billion. posted by Ed | Oregon report on industrial lands The anecdotal evidence pointed to a shortage of industrial land in Oregon. These are the types of issues that -- left unaddressed -- feed negative thinking about a community, region or state. After a while, they can blow up into popular myth. To his credit, the governor appointed a task force to investigate and develop both facts and policy. Their report is a good example of clear thinking and brevity. Read more about it. posted by Ed | Defining the boundaries of a regional brand Now we get down to the tough part. Defining a regional brand is easier said than done. The first challenge is overcoming the resistance to collaborate. But even that is not enough. You need to build a consensus on what makes sense. In Oklahoma City, the chamber used commuting patterns to alter people's perceptions of the region. (You can download the data for your own commuting pattern study here.) Regions are defined as much by personal affinities and networks as by statistics. Here's an example of the struggle from the Triad region in North Carolina. Read more. posted by Ed | Resources: Understanding seed and venture capital The National Assocaition of Seed and Venture Capital publishes a free newsletter that provides you with a good summary of seed and venture capital activity around the country. You can sign up from the NASV main page. Go. posted by Ed | West Virginia's technology corridor Friday, November 21, 2003 EDPros at Marshall University in West Virginia have been trying to get the I-64 High Technology Corridor off the ground for some time. They may be getting some traction. This week, two key economic development groups appear ready to support the collaboration required to launch the project. The researchers at Marcshall University maintain that the region has a number of assets to support technology-based development, but there is no regional framework to connect these assets and coordinate their development. Learn more. posted by Ed | Nashville's biotech development The Cool Springs Life Sciences Center, located in Williamson County outside Nashville, is a major component of that region's biotech development plan. After a slow start, the project is moving again. Vanderbilt recently signed a lease for 8,000 square feet in a first phase building. Read more about the details. Go. posted by Ed | Wi Fi in rural Missouri Nevada, Missouri has got a new approach to the Internet. When the cable copany and the telephone company could not provide faster Internet speeds, they turned to Wi Fi. Read more. Keep up to date with rural wireless policy and options. Go. posted by Ed | More news on Boeing Thursday, November 20, 2003 Here's the latest on Boeing. The design team for the 7E7 will be located in Everett, WA. Learn more. Boeing announced a network of 7E7 parts suppliers that includes plants in Canada, Australia, Japan and Italy, as well as Boeing facilities in Washington state, Oklahoma and Kansas. Read more. Kansas has offered Boeing $500 million in bonding authority, but the company said the incentive had no impact on their decision to build the forward fuselage of the plan in Kansas. Read more. posted by Ed | High tech report released Cyberstates 2003, an annual survey of high technology industry, hit the streets yesterday. You can read the press release here. The report costs $195. If you live in a big state, you can also read a report on your state from this page. posted by Ed | Regional ties in the Triad The three chambers that represent the Triad region in North Carolina -- Winston-Salem, High Point, and Greensboro -- have agreed to work together on a unified economic development mission and strategy. Another sign of the growing importance of regional economic development. Read more. posted by Ed | More on San Jose's new strategy Wednesday, November 19, 2003 In case you missed it, San Jose has released a ne economic development strategy. It's making iut's way through council, and the mayor wants to narrow the scope. Here is a summary. Go. posted by Ed | Louisville's base in call centers Louisville has over three dozen call centers, and the industry seems quite at home there. Here's an article that explores why Louisville is an attractive location. Read more. posted by Ed | The tough game of recruitment Tuesday, November 18, 2003 Industrial recruitment is a tough game, and it is getting tougher. EDPro Beth Neu from Roanoke, VA sent me this article that provides a good overview of the recruitment game. It discusses Savannah's recent loss of the Chrysler truck plant, the new Toyota plant in San Antonio, and the pending Boeing deal. Read more. posted by Ed | South Carolina waits for its cluster study Monday, November 17, 2003 South Carolina is waiting for a report that Michael Porter, the Harvard professor and promoter of clusters, will be releasing next month. Read more. posted by Ed | Economy Watch Here is the best writing on the economy I found last week: The Recovery Figures Larger Study: Older workers lead job recovery Manufacturing is strengthening A former treasury secretary says economic policy needs an overhaul GE: Its Orders Show Economy Is Rebounding Report: Economy surges but wages fall posted by Ed | Resources: Measuring the impact of the arts Saturday, November 15, 2003 Some EDPros are focused on developing the arts as an economic development strategy. Arts organizations are often sitting at the same table trying to make the case that arts organizations have a significant economic impact. Now there is a simple, on-line calculator that can help. Go. posted by Ed | North Carolina's program to train biotech workers North Carolina has launched a $64 million program to prepare a biotech workforce. Most of this money will end up in Raleigh, the center of the state's biotech industry. That leaves some of the rural areas of the state trying to figure out their biotech strategy. Read more. posted by Ed | The challenge of technology transfer Increasingly, EDPros are turning to brainpower and innovation as strategies for building higher levels of prosperity in their economy. This approach brings new challenges. One is understanding the purpose and function of technology transfer. How do you connect universities to the market? It's a complex question. Here's a good article from Idaho that explores the issue. Learn more. posted by Ed | Wichita launches funding effort Witchita is a community that has long suffered through fragmentation in its economic development efforts. Perhaps they have turned to a new chapter. Yesterday, the business leadership announced that they were half way to their goal of raising $2.5 million over five years. The funds will be used to finance their economic development strategy. The public sector has pledged another $2.5 million. That makes the total campaign $5 milllion over five years. Read more. posted by Ed | Rochester and missed oppportunities Rochester is a rare mid-sized city with strong companies: Kodak, Xerox, and Bausch & Lomb among them. While it was a hot bed of industrial innovation years ago, businesses have not responded well to globalization. The problem is not new...its roots can be traced to the first wave of globalization that started in the 1970's. Here's a good profile that appeared in the Toronto Star this weekend. Go. posted by Ed | Talk of regional cooperation grows More an more communities are realizing that regional cooperation makes sens in a global economy. Think of it as putting the shower curtain on the inside of the bathtub. Common sense. Here are some examples in articles that appeared in the past week from Washington State, Cincinnati and Massachusetts. posted by Ed | South Carolina urged to shift recruitment focus South Carolina's economic development leadership wants the state's business leaders to support a shift in focus on recruiting to smaller, growth-oriented businesses. The strategy shift is an express departure from the branch plant recruitment that has dominated the Southern states approach to economic development for the past fifty years. Learn more. posted by Ed | Retail "leapfrogging" The forces behind sprawl are complex and varied, but the business practices that accelerate the spread of development are easier to identify. One such practice is "leapfrogging", in which big box retailers, like Wal Mart, leave old stores vacant and build larger boxes in greener pastures. Read more about it. posted by Ed | Winston-Salem region's new strategy roadmap The folks in Northwest North Carolina have a new economic development strategy that encourages regionalism and a focus on building businesses based on design. Based on the response they delivered to their consultant, they seem quite happy with it. Read more. posted by Ed | San Jose focuses on start-ups San Jose is focusing its economic strategy on start-ups. According to EDPro Paul Krutko, the city's economic development director: "We are interested in growing companies from their birth to where they are world-class companies. We want to capture them in an early phase -- the growth phase of 10 to 100 employees. We want that to happen here." Read more. Today in our history of innovation... In 1896, the first long-distance transmission of hydroelectricity from the Niagara Falls Power Company flowed to Buffalo, N.Y., 26 miles away. posted by Ed | Rochester to benchmark innovation Thursday, November 13, 2003 EDPros in Rochester have turned to the Council on Competitiveness in Washington, DC to assist them in establishing benchmarks on innovation for the region. The idea is to compare Rochester's "capacity to innovate" with other regions. The survey will focus on three main areas: regional economic assets; innovation networks; and regional economic beliefs and attitudes. Read more. posted by Ed | Georgia's new aerospace center Georgia has launched the Middle Georgia Aerospace Innovation Center. The center is part of the state's "centers of innovation" initiative to bring technology-led economic development to the state's mid-sized cities. Researchers from Georgia Tech, Mercer University, and Macon State College will work with industry partners and the Warner Robins Air Logistics Center to develop new technologies to extend the life cycle of aircraft. Read more. posted by Ed | New regional effort starting in Portland, OR Add Portland, OR to the list of places where a regional appraoch to economic development is starting to take hold. A new regional group is staudying how to accelerate growth in key clusters: silicon (semiconductors and photovoltaics); micro to nano technologies; cyber-security; and transportation equipment. Read more. posted by Ed | NY uses funds to attract researchers New York State Office of Science Technology and Academic Research (NYSTAR) is providing $7.5 million for New York colleges and universities to attract star researchers. This effort is another example of how we are seeing incentives shift from places (infrastructure) and companies (tax breaks) to people. Learn more. posted by Ed | Whirlpool invests in U.S. plants Amid the stories of U.S. manufacturing decline, the example of Whirlpool stands out. The company has invested heavily to keep its U.S. manufacturing facilities competitive. Seven facilities in Indiana, Ohio, Mississippi and Tennessee will expand. At the same time, Whirlpool is shifting some production from Fort Smith, Arkansas to Mexico. Read more. posted by Ed | South Carolina breaks ground on auto research campus Clemson University has stgarted construction on a new auto research campus, supported by BMW. The campus consists of a 250-acre Clemson campus and an adjacent 150-acre property that will be privately developed. Eventually, the campus is expected to include unique research and testing facilities, such as an automotive electronics systems lab, crash-worthiness lab, fuels lab with an emphasis in hydrogen-based research, and a full-scale wind tunnel. EDPros in South Carolina hope to make Greenville a hub for automotive research. Both IBM and Microsoft have indicated that they will participate int he park. Read more. posted by Ed | 2003 Development Report Card for the States The Corporation for Enterprise Development has released its 2003 Development Report Card for the States. The Report Card appears on a dynamic web site, so you can do comparisons between states. You can also download the data on 68 measures. Go. Today in our history of innovation... In 1927, the Holland Tunnel opened for traffic as the first twin tube subaqueous vehicular tunnel in the U.S. posted by Ed | Pennsylvania's telecomm map Tuesday, November 11, 2003 Governor Rendell unveiled an interactive map of the state's telecommunication's infrastructure. The map shows rural and urban areas of Pennsylvania where schools, hospitals, and businesses are at a competitive disadvantage because they are not wired to compete in the regional and global economy. The main purpose of the map is to encourage collaboration to improve broadband access in the state. Read more. Today in our history of innovation,,, In 1851, Alvan Clark of Cambridge, Mass. patented a telescope design. posted by Ed | A smoldering opposition to incentives Monday, November 10, 2003 Boeing is shopping around for a new location for the 7E7. And Washington State has delivered a fat package of incentives. In the process, the company has damaged its reputation with some Washington residents. Read more. Meanwhile in Texas, the Texas Attorney General is trying to keep documents related to the Boeing deal confidential. A taxpayer has sued to try to get details on the incentive package that the state is offering Boeing. Read more. All of these incentives are part of a $30 billion to $50 billion annual game the states are playing to recruit businesses. Much of it does not make sense. Take the case of the vacant United Airlines maintenance facility in Indianapolis. After $320 million in investments, the state is left holding the bag. Read more. posted by Ed | Economy Watch Here's the best economics stories from last week. Global Economic Growth Will Continue, Predicts Europe's Top Banker Group of 10 Central Bankers `More Convinced' About Global Economic Growth Survey Shows Economy on Track for Sustained Job Growth Sustainable Job Growth Looks Increasingly Plausible WTO expects world trade to rise by a disappointing 3 percent in 2003 Purchasing Managers Report Shows Economy Gaining posted by Ed | In a brainpower economy...well, brainpower matters Sunday, November 09, 2003 We live in a world in which brainpower -- and the networks that translate brainpower into business through innovation and entrepreneurship -- are the only remaining competitive advantages. Here's an interesting article (first part of two) that The Washington Post ran today comparing Seattle and Cleveland. Go. Today in our history of innovation... In 1842, the Patent Office issued first U.S. patent for design. The patent covered typefaces and borders designed by George Bruce of New York City. This new form of patent was authorized by Act of Congress on August 29, 1842. posted by Ed | Confronting growth issues Saturday, November 08, 2003 Communities all over the country are confronting growth issues. Not so much the level of growth, as its pattern. How do you develop quality growth? How do you develop growth patterns that are sustainable -- financially and environmentally -- over time? Here are two examples that caught my eye in the past week-- in Durango, CO and Santa Monica, CA. Durango is an old mining town of about 14,000 people. Recent city council meetings have turned ugly over growth issues. Last week, the council narrowly turned down a proposal for a "new urbanist" development of 800 homes, designed to reduce sprawl. Read more. A local nonprofit, Operation Health Communities, came up with an alternative to explore white hot issues. It organized a study circle and began a more enlightened discussion of options facing the town. Read more. Visit the Operation Health Communities web page. Go. Santa Monica is taking a different approach. The city council has organized a task force on sustainability. The key to this strategy: You have to be careful to involve the right people from the start. These calculations are seldom easy. As one commentator notes, that business and residents must be on the task force. "They’re going to fight and scream all the way unless they’re involved from the beginning.” Read more. posted by Ed | Denver launches new regional ED organization Denver has replaced its Metro Denver Network with the Metro Denver Economic Development Corporation. The purposes of the new organization is to connect government and business leaders, raise as much as $15 million over five years, and focus on regionalism, not competition among cities and counties in the metro region. Read more. posted by Ed | San Jose's new economic development strategy San Jose has released a new economic development strategy. You can download the draft from this page. Go. The document stops short of detailed implementation plans, but it does a very good job in outlining how the city will translate its vision into action. It outlines fifteen strategic initiatives and a range of tactics for each initiative. Read more. Today in our history of innovation... In 1910, the Patent Office issued the first U.S. patent for an "electric insect destroyer" to William H. Frost of Spokane, Washington. The invention used a number of electrically energized parallel wires. A flying insect passing between them completes the circuit by bridging the wires with its body and electrocutes itself. . posted by Ed | Downtown loan program Friday, November 07, 2003 For EDPros looking to revitalize their downtown business district, you might take a look at Fond du Lac, WI. The Downtown Fond du Lac Partnership has launched a $1.7 million low cost loan program to assist businesses in their downtown district. Loans at below prome are available for interior or exterior remodeling, parking lots, signage and upper-level housing. They may also be used to buy existing buildings in the district. Learn more. (The article includes contact information.) posted by Ed | Arkansas to study higher education/economic development link Governor Huckaby has appointed a new group to explore the link between higher education and economic dervelopment. He wants some specific legislative proposals within six months. This move reflects a growing trend among states to link the two together. The governor wants to focus on three areas: quality, affordability, and accountability. Read more. Today in our history of innovation... In 1940, at approximately 11:00 am, the first Tacoma Narrows suspension bridge collapsed due to wind-induced vibrations. Situated on the Tacoma Narrows in Puget Sound, near the city of Tacoma, Washington, the bridge had only been open for traffic a few months. posted by Ed | Feds aid Connecticut manufacturers Thursday, November 06, 2003 The Economic Developpment Administration has awarded $600,000 to the Connecticut Economic Resource Center for assistance to that state's manufacturers. The funds will be used to help smaller manufacturers develop more innovative production processes and improve technology transfer and commercialization. Learn more. posted by Ed | Women's role in technology development New research from Indiana University demonstrates that women are taking more active roles in all phases of technology development from research to commercialization. For example, between 1966 and 2000, the percentage of science and engineering doctoral degrees awarded nationally to women increased dramatically, from 8 percent to 36.2 percent. Read more. posted by Ed | State biotech plans Here's an article from USA Today on the plans state are following to develop their bitoech industries. The basic point: biotech is an inherently risky, expensive and long term strategy. Go. Today in our history of innovation... In 1923, Col. Jacob Schick received a patent for the first electric shaver. Schick later established his own company, The Schick Dry Shaver Co, Inc. in Stamford, Conn. posted by Ed | Pennsylvania, Maryland, New Jersey make technolgy-based investments Wednesday, November 05, 2003 Pennsylvania's Governor Rendell in announced $9.8 million in state investments for technology projects. The state is making the funds available through the Ben Franklin Technology Development Authority. Read more here and here. In Maryland, EDPros have been focused on accelerating business development from univeristies and government labs. This week, they announced a new for-profit venture, seeded with $1 million in state funds. The initial capital will total $2 million, and promoters plan for the fund to grow between $6 milllion and $8 million. Learn more. In New Jersey, the state has announced a $10 millon life sciences fund. It will make equity investments in early-stage biotech and life-sciences companies. Read more. posted by Ed | Rural wireless broadband in North Carolina Wireless braodband Internet may be a solution to underserved rural communities. That's why the announcement of a new initiative in the Southeast is significant. America Connect, a company based in Raleigh, is spearheading this project with support from the North Carolina Rural Internet Access Authority. Learn more about the project. Go. Learn more about America Connect. Go. Learn more about the North Carolina Rural Internet Access AuthorityGo. posted by Ed | West Virginia's venture capital tax credit West Virginia has a new tax credit program designed to accelerate business development from universities. Under the program, investors in "technology advancement centers" can get a dollar-for-dollar credit on their state taxes for their investment. AEP has been awarded the first tax credits under the program. AEP has made a $1 million investment in a center designed to help Marshall University turn research into business. Read more. posted by Ed | Ohio and Iowa show how hard it it is to invest in technology-based ED Ohio voters turned down the governor's proposal to for authority to issue $500 million in bond funds over the next ten years as part of his Third Frontier initiative. Read more. Meanwhile, in Iowa, the $500 million, 7 year Iowa Values Fund is getting off to a slow start. The fund, financed by sales and use taxes, could end up with only 20% of the original target. Read more. posted by Ed | State rankings on workforce development tools Expansion Management magazine has ranked the top states in workforce training. The leading states are South Carolina, Georgia, North Carlina, Oklahoma, and Virginia. Read more. posted by Ed | Atlanta targets Asian air cargo Tuesday, November 04, 2003 As part of its strategy to build Atlanta as a logistics hub, EDPros at the metro Atlanta chamber are trying to divert Asian air traffic from New York to Atlanta. They have targeted Hong Kong and Singapore Airlines as their initial targets. Learn more. posted by Ed | Toledo leaders peer into the future A group in Toledo is working together to fashion a vision for the city and the region. The group is diverse and informal. It's a good example of what is happening around the country. Established business organizations are no longer alone in setting the agenda for economic development. More informal groups are also identifying priorities. In some cities (Greensboro, Cincinnai, for example), young professional groups are gaining ground. In others, like Cleveland, the emerging informal leadership networks are more varied. Read more about Toledo. Go. posted by Ed | Indiana's initiatives to support university-industry research During the past four years, Indiana has begun implementing 21st Century Research and Technology Fund, an initiative to support joint research by universities and business. South Bend is moving forward on a certified technology park, based on this state support. This article explains the Indiana initiatives to encourage university/business research in more detail. Learn more. posted by Ed | Report: The new wave of outsourcing Here's an important report on the new wave of outsourcing that is sweeping the U.S. economy. According to researchers at Berkeley, the jobs most vulnerable to the new wave of outsourcing include medical transcriptions services, stock market research for financial firms, customer service (inbound) call centers, legal online database research, payroll and other “back office” activities. Read more. posted by Ed | Detail on Florida's biotech deal Here's a good summary of the details of the incentive package for Scripps. Florida's Governor Bush signed the legislation into law yesterday. Under its deal with the state, Scripps agrees not relocate to another facility outside Florida or California for 12 years. Scripps receives funding based on milestones for yearly employment targets. Read more. posted by Ed | Recruitment 101 Here's an interesting article from a Roanoke paper that explains how the recruitment works in that region. Consider passing it on to some of your volunteers, who may not understand the process all that well. Go. Today in our history of innovation... In 1879, James Jacob Ritty invented the first cash register. He intended to combat stealing by bartenders in the Pony House Restaurant, his saloon located in Dayton, Ohio. . posted by Ed | Economy Watch Monday, November 03, 2003 Here's the best economics writing from the past week: As economy gains, outsourcing surges The Coming Week: All Eyes on the Economy Suddenly, economy shows real verve US economy rockets ahead at best pace since 1984 Indicators Are Positive Consumer confidence rises in October Durable-good orders rebound; sign of better times for economy posted by Ed | Expert provides perspective on incentives Recently, Angelos Angelou provided some useful perspective on incentives to EDPros in New Mexico. He told them that most communities need to find a better balance between recruitment and business development. He's right. Read more. Today in our history of innovation... In 1952, Clarence Birdseye marketed the first frozen peas in Chester, N.Y. posted by Ed | Casinos have been no savior to Louisiana Saturday, November 01, 2003 Supporters of casinos in Louisiana pushed the idea that gaming is economic development. Well, it's not, really. (I reached this conclusion after doing some detailed work in Shreveport.) And if Texas ever gets around to approving gaming, Louisiana's industry will be cooked. Here's a good review. Read more. posted by Ed | Resources: Rural entrepreneurship If you are an EDPro from a rural area, you need to know about the Center for Rural Entrepreneurship. Visit their Eship Library for some good background materials. And be sure to subscribe to their newsletter. Visit their site. Go. posted by Ed | Resources: Heritage tourism Heritage tourism is an important economic development strategy for rural communities. It combines historic preservation with the real benefits of tourist development. Learn more from the National Trust for Historic Preservation Go. Visit the National Trust Rural Heritage site. Go. Here's an example on a big scale. The Silos & Smokestacks National Heritage Area covers 37 counties in Northeast Iowa. It is one of 23 federally designated heritage areas. The area focuses on telling the story of the contributions that northeast Iowa has made to our agricultural history. Visit the web site. Go. Several states support active heritage tourism programs. Here's an example from North Carolina. Go. Today in our history of innovation... In 1957, the world's longest suspension bridge, the Mackinac Straits Bridge between Michigan's upper and lower peninsulas, opened at five miles long. I've been fascinated by this bridge since I was a child. My grandmother grew up on Mackinac (pronounced Mackinaw) Island, and my grandfather worked on the docks. Here's more on the history of the bridge. Go. posted by Ed | |
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