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Economy Watch
Saturday, February 28, 2004 Here's the best economics stories I came across in the past week: Vital Signs for the Week of Mar. 1 US economy reports weak on surface, strong beneath Consumer confidence slumps on job fears Brisk business spending fuels U.S. economy Greenspan: the right medicine? Greenspan-US jobs to lag until productivity slows Economy grew at a robust pace to end 2003 posted by Ed | New Mexico launches new tax incentives In an effort to boost state incomes, Governor Richardson in New Mexico has signed legislation creating new tax incentives for employers who generate high income jobs. Companies will receive a tax credit equal to 10 percent of wages and benefits of each qualifying job — up to a maximum of $12,000 per employee — created in the next five years. Learn more. posted by Ed | Richard Florida under the microscope Richard Florida has some interesting theories about "The Creative Class". The problem is that the evidence does not support them, according to a recent detailed critique by the Manhattan Institute. One example: Detroit does not make the grade as one of Florida's most creative cities. But the National Commission on Entrepreneurship found that Detroit incubates about 50 percent more fast-growing companies than the average of all major cities, with a particular strength in nurturing high-growth manufacturing businesses. Read the article. posted by Ed | Syracuse and the knowledge economy Friday, February 27, 2004 Central Upstate New York has issue a new report from Batelle and Richard Florida. The recommendations: "optimize" key industry clusters, leverage academic institutions, grow small and mid-sized technology companies, focus on the entrepreneur, attract and retain talent, and execute on a super regional level. Sound advice, and it only cost $500,000. Read more. Better yet, download the report from this page, and save yourself some big bucks. Go. posted by Ed | Anatomy of a deal: Luring AirTran Improving air service is often a major economic development priority for mid-sized cities. Here's a good article outlining how Wichita and Sarasota-Bradenton used incentives to lure Air Tran into their markets. Read more. posted by Ed | Cleveland area mayors unite on plan Mayors in Cuyahoga County want to create a common economic development authority that would invest in job growth. The Cuyahoga County Mayors and City Managers Association unanimously approved the concept Thursday as a regional way to boost the Cleveland area's economy. The efforts of the economic development authority would most likely focus on Cleveland and inner-ring suburbs. As one inner ring mayor pointed out: "We know well that if the core city rots, then we all suffer". The mayors would also collaborate on business growth by signing "no poaching" pacts, under which cities agree not to lure businesses from each other. Read more. The Cleveland area has been spreading out -- consuming land -- without growing. The consequence: the area is building too much infrastructure. The regional authority would be one tool that the leaders could use to slow the sprawl. posted by Ed | St. Louis looking closely at the brain drain/brain gain issue In the late 1990's, alarmed by reports of a brain drain, St. Louis leaders began looking more closely at the issue. The publication of Richard Florida's book, The Creative Class, amplified their concerns. Florida's theory states that high growth companies will locate where there are deep pools of young, creative workers. To draw this type of person, a city must offer a high quality of life after work, through amenities that young singles want most, such as a vibrant downtown, a dynamic nightlife and a gay-friendly culture. Now some of the evidence in St. Louis suggests a more complex, subtle picture. As Joel Kotkin, author of one report on St. Louis, comments, "There's an element of truth to (Florida's theory), but it's overblown." Read more. posted by Ed | Clemson's ICAR project South Carolina is making the anchor investments needed to establish a hub in automotive education, research, design and technology. The plans have received important endorsement from some big players: BMW, Michelin, Microsoft and IBM. Clemson is developing the International Center for Automotive Research (ICAR) on a 400-acre site in Greenville. The project broke ground last November. Read more. posted by Ed | Maine's Pine Tree Zones Not much evidence supports the fact that enterprise zones work. That does not prevent political leaders from relying on them to "direct" economic development. In Maine, Gov. John Baldacci is identifying four additional Pine Tree Zones, which the state is targeting for tax incentives to spur economic development. The Pine Tree Zones are designed to draw businesses to economically distressed areas of the state to create jobs and help Maine to compete against other states for business expansions. Maine now has eight zones. Baldacci proposed the Pine Tree Zone program early last year. It offers incentives such as business equipment tax reimbursements, reimbursement of payroll taxes, refunds of corporate and insurance premium taxes and sales tax exemptions on construction materials. Eligible businesses include firms engaged in manufacturing and financial services, and in the seven state-targeted technology sectors: biotechnology, aquaculture and marine technology, composite materials technology, environmental technology, advanced technologies for forestry and agriculture, information technology and precision manufacturing technology. Read more. posted by Ed | Trying to land Virgin Airlines Thursday, February 26, 2004 Boston and San Francisco are trying to attract Virgin Atlantic airlines. According to The New York Times: "On a recent visit to San Francisco, the Virgin team was attended by drag queens, a Judy Garland impersonator and a tall, blond surfer dressed in Virgin-red trunks...Boston has tried to cultivate a sassier image. It sent live lobsters with a Virgin luggage tag to executives, organised a team of youngsters to serenade them with an old Boston Song 'Dirty water', with tweaked lyrics, such as 'I love our new location Oh, Boston you're Virgin's home (oh yeah)'". Read more (free registration required). posted by Ed | More ratings stuff Ratings are a way to sell magazines, advertising, consulting services or policy positions. Whatever the reason, ratings are overplayed. Here's the latest from Inc. magazine: the top 25 large, medium and small metros as places to do business. Go. posted by Ed | Memphis forms regional logistics council Following the lead of Atlanta, Memphis is now forming a Regional Logistics Council to focus on the competitiveness of its logistics businesses. The Council will divide its work into five areas: policy and legislative, strategic planning and research, work force development, marketing and strategic alliances. Read more. Metro Atlanta Chamber has also formed a Logistics Council to nurture these businesses. Learn more about what Atlanta is doing. Go. posted by Ed | North Carolina's incentive strategy Hit hard by manufacturing job losses, North Carolina is pursuing a policy of aggressive incentives to attract outside investment. It's a short run strategy with long term consequences. Incentives rarely, if ever, overcome basic cost and productivity factors driving a business. At the same time, incentives reduce funds available for other. more valuable investments. Here's an overview of North Carolina's strategy. Read more. posted by Ed | California's economic transformation Like the rest of the country, California is losing manufacturing jobs at an alarming rate. Part of the problem, though, is self-inflicted, according to a new study. According to one of the report's sponsors, "Doing business in California is more difficult and more expensive than in neighboring states. California is drifting down the path of becoming a region of smaller storefront companies. Many of the large or mature companies are taking all or a portion of their operation out of town. We are losing high-pay manufacturing jobs and replacing them with lower paying or minimum wage jobs." Read more. Here's more background on the report. You can download the executive summary from this page. Go. posted by Ed | Re-using manufacturing buildings: the Carrier facility EDPros facing manufacturing job losses run into another problem: What do you do with the manufacturing facilities left behind? Carrier is closing down its air conditioning manufacturing facility in Syracuse, and no one is quite sure what will happen next. If you face the same problem, you can learn more from the Carrier situation. Go. posted by Ed | Wisconsin's Bureau of Entrepreneurship Wednesday, February 25, 2004 Last fall, Wisconsin established a six-employee Bureau of Entrepreneurship, part of the Commerce Department's Division of Business Development. This week, the state Department of Commerce named a person to head the bureau. The new organization is designed to help emerging companies find the resources they need to expand. For EDPros in state government, this office might teach us how to make state government programs more responsive to smaller companies. One possible hitch: the bureau has no separate funding. Read more. posted by Ed | Research Triangle tops Business 2.0 list According to the March issue of Business 2.0, Raleigh-Durham No. 1 among 61 U.S. metropolitan areas with populations of at least 1 million when it comes to creating jobs for "knowledge workers".Read more. posted by Ed | Top "pet healthy" cities In case you were wondering, here are the top 50 "pet healthiest" cities. These places rank high because they "exemplify superior care, services and legislation for pets' health and well-being". (EDPro Weblog keeps you informed of the many complex, shifting dimensions of economic development. Remember, you read it here first.) Read the list. posted by Ed | Resource: Nanotechnology map For EDPros interested in technology-led economic development, here's is an interesting map of nanotechnology companies, both globally and within the United States. Go. posted by Ed | Scottsdale moves into biotech Scottsdale, AZ has started its move into biotech with a 100,000 SF facility. Read more. Scottsdale's investment is part of a larger statewide strategy to build a bioscience base in the state. You can learn more by reading the background reports funded by the Flinn Foundation. Go. posted by Ed | Resource: Report on rural development policies Tuesday, February 24, 2004 A new report, Reversing Rural America's Economic Decline: The Case for a National Balanced Growth Strategy, argues that rural America is being left behind as other regions of the country prosper. Rural regions can rebound if rural development policies are brought into the information age. Read more. posted by Ed | Web Watch: Target Nova Scotia Here's the most powerful web-based GIS system I have come across: Target Nova Scotia. The interface is simple, clear and easy to use. Here are some of the most intereting features. The starting point for "Where is Nova Scotia?" is four slide show that starts with a globe and progressively moves you downward. The assembly of demographic information starts with a choice: either begin with a category of information (say, education) or begin with a map. In short, the site gives you simple, flexible ways to access information. Visit the site. posted by Ed | Syracuse needs connections Monday, February 23, 2004 Matters are getting dire in Syracuse. At least that is the word delivered by some consultants in a recent (very expensive) report. One interesting finding: Businesses in the region have not developed the "connectivity" necessary to support the growth of robust industry clusters and related employment. Read more. posted by Ed | North Carolina perspective on Boeing deal If you have not read enough on Boeing, here's a view of the 7E7 deal from North Carolina. The article is based on files released by the North Carolina Department of Commerce. Go. In these files, we learn, among other things that Boeing CEO Harry Stonecipher can't type worth a nickel. He sent the following e-mail to Governor Easley: "PLEASE EXCUSE THE ALL CAPS MESSAGE. I AM LAZY AND INCOMPENTANT WHEN IT COMES TO TYPING." posted by Ed | Retention initiative: Share best practices Here's another good idea. West Michigan Works, an economic development organization composed of businesses and community leaders, is working to encourage leading companies to share their best practices. They are focused on established approaches to improcing productivity: lean manufacturing, product quality, and participative management. Learn more. Learn more about West Michigan Works. Go. Visit their web site. posted by Ed | Anatomy of a deal: Ohio's uranium enrichment plant Kentucky lost out to Ohio on the recent $1.5 billion uranium enrichment plant. Ohio's incentive package came to $250,000 a job for 500 jobs. Learn more. posted by Ed | Economy Watch Here's some of the the economics articles I've been reading Jobs: Where did they go? Offshoring: Advances that come with a price Gaffes by Bush Economic Team Worry Conservatives Vital Signs for the Week of Feb. 23 Germany, Britain and France seek new push to rival U.S. economic power Economic Report of the President: Download Page posted by Ed | Creative class economic development Saturday, February 21, 2004 Count Ft. Worth as another city moving to the "creative class" strategy of economic development. Florida has boiled it all down to his three T's: talent, technology and tolerance. Read more. Based on these factors, Florida has produced a new report indicating that the U.S. is falling behind Europe now. Read more. posted by Ed | Oakland highlight four emerging trends Four emerging economic trends are illustrated well in Oakland, CA. The first trend: a shift away from attraction and toward retention. The second trend: a shift away from helping individual firms to figuring out how to help groups of firms. The third trend: a shift away from financial incentives and toward higher quality service as a key value proposition. The fourth trend: a shift away from attracting businesses and toward attracting smart people. Learn more. posted by Ed | Web Watch: Oswego County Here's a good example of a new web site for a smaller community, Oswego County in upstate New York. The site provides an easy-to-navigate format while offering a comprehensive listing of available commercial property is a clear, simple format. The site provides accessible demographic information about Oswego County. The site also provides community links and a printable map. It provides you with a good organiztion to follow. Visit the site. Go. posted by Ed | A partner initiative to the Main Street program Here's a good idea. Pennsylvania has enacted legislation -- The Elm Street Program -- to revitalize mixed-use and residential neighborhoods within a half mile of central business districts. The new program complements the similar Main Street program for downtowns and commercial districts in small and mid-sized towns. The initiative provides financing for such investments as new lighting, sidewalks and facade improvements for mixed-use and residential neighborhoods located close to central business districts. The goal is strategic. Create mixed use environments attractive to young adults. As Secretary of Community and Economic Development Dennis Yablonsky noted: "This program is important because we have a brain drain situation in our state. We've lost more 25- to 40-year-olds in Pennsylvania than any other state in the union over the last 10 years. Part of the solution is, of course, more economic and job opportunities for them, but in addition, this generation in interested in an integrated live, work and play environment." Read more, and download information. posted by Ed | Roanoke adds investment funds Two new investment funds will finance business start-ups and expansions in the Roanoke, Virginia region. The funds -- toalling $55 million -- are led by Virginia Tech University and a local health system, Carilion Health System. Learn more about the structure and operation of these funds. Go. posted by Ed | Resource: Economic development impact of wind power Thursday, February 19, 2004 Here's a report that assesses the economic development impact of wind power in rural communities. Download the report. Go. Here's a report that discusses the guidelines for measuring these impacts. Go. posted by Ed | NEO Foundations support economic development Wednesday, February 18, 2004 In an unprecedented move, a group of foundartions in Northeast Ohio have pooled their resources to promote large scale economic development transformation. Twenty-eight foundations have assembled a fund of $22 million. Learn more. posted by Ed | Focus on the brains Most deep thinkers in economic development have ambivalent attitudes toward Richard Florida. On the one hand, he has broaden the debate about economic development. On the other hand, his data are shaky and his conclusions too facile. The world is simply more complex than he allows. Here's an example of where his analysis gets off target. In a recent study reported in the press, Florida and a colleague report that Europe is gaining on the U.S. True enough. There are important lessons the European Union can teach us about regional innovation. But then he goes on to conclude, apparently, that Sweden and Finland pose greater threats to America's economic leadership than China or India. Read more. I don't think so. Finland's economy is about the size of Kentucky. posted by Ed | Building the foundations in Iowa Iowea is moving ahead with the Iowa Values Fund, an aggressive effort to build the foundation for technology-led economic development. The current weak spot in the plan is financing. The governor is now pushing the legislature to provide a more stable funding base. Read more. At the same time, the Iowa strategy does not address the issues of rural development well. Inevitably, most of the funds from the Iowa Values Fund will held to urban areas. The state needs a companion rural development strategy. Part of that strategy can be built by rural communities through regional collaboration. But that requires moving beyond some old mind sets. Read more. posted by Ed | The role of the arts in economic development As EDPros start thinking more about how you build "smart places for smart people", we are confronting the convergence of economic development and the arts. This March, Cleveland voters will be facing the choice of whether to support the arts with a property tax levy. In Toledo, leaders are contemplating something similar. The debate has led to articles that give EDPRos some good perspective on this issue. from Cleveland and from Toledo. posted by Ed | North Caolina's bid for Boeing Tuesday, February 17, 2004 Facing criticism that he is not doing enough in economic development, Governor Easley released hundreds of pages yesterday detailing North Carolina's Boeing bid. Read about the details. Go. posted by Ed | Avoiding a bidding war Here's a story you don't see every day. Greensboro and High Point have submitted proposals for the same Citibank service center. It's no small deal: 1,000 jobs potentially. Greensboro's proposal includes $1.2 million in incentives. and High Point provides $670,000. Both cities, however, are avoiding a bidding war over the potential tax revenues. Read more. Avoiding senseless bidding wars is an outgrowth of a more regional view of economic development. As one participant notes: "One of the communities is going to win the tax base, but everybody is going to win the jobs. That is certainly going to benefit the region." posted by Ed | Albany's nanotech plans Albany is moving forward aggressively on a nanotechnogy development plan, and this article gives you an overview. In January, Governor Pataki proposed the country's first nanotechnology college, University of Albany's College of Nanoscale Sciences and Engineering. Albany NanoTech represents 500,000 square feet in three buildings dedicated to research and development. Construction will be completed later this year. Saratoga Economic Development Corporation has proposed the Luther Forest Technology Campus, a 1,350 acres site to create an industrial park for four computer chip fabrication plants. Read more. posted by Ed | Economy Watch Sunday, February 15, 2004 Here's Econ 101 for the week: The unemployment rate is only the beginning of the problem Migration of U.S. jobs hurting economy in short run, experts say Vital Signs for the Week of Feb. 16 US Economy Good But Serious Risks Ahead, says Central Bank Chief Fed chairman warns that budget deficits could imperil economy's health U.S. economy poised for vigorous growth-Greenspan Bush report declares economic recovery is taking hold Inventing The "Clinton Recession" posted by Ed | Tourism strategies for rural communities Saturday, February 14, 2004 Tourism development can provide the leading edge for econoic development in many rural communities. Here's a helpful article from Maine that explains. Read more. Good quote: ""If you don't find a way to attract and retain human resources, you're dead. So how do you do that? You become the best place to live." posted by Ed | Pass this link on to higher education leaders If you know of a leader in higher education, pass this report on. It details design principles for success in educating scientists and engineers. Send on this link that provides the background. Go. posted by Ed | Impacts of global trade: 2 This morning's New York Times carries a good article on outsourcing. Two quotes stand out. Nandan Nilekani, chief executive of Infosys Technologies, an Indian outsourcing company: "Everything you can send down a wire is up for grabs." Craig R. Barrett, chief executive of Intel: "The structure of the world has changed. The U.S. no longer has a lock on high-tech, white-collar jobs." Read more (free registration required). At the same time, The Economist carries an article on changes among manufacturers in India (subscription site). A quote: "An increasing number of India's old-economy firms have quietly restructured. Spurred on by the threat of foreign competition, they have discovered how to make internationally competitive goods by shedding labour, designing new products and improving management. They are cashing in on the same low labour costs and technology-astute employees that have helped India in software and outsourcing. In the process, this has given Indian firms the confidence to search out markets in developed economies and even to buy operations abroad." posted by Ed | Biotech campus in Indianapolis Indianapolis is moving ahead with a biotech campus. The two anchorts in the campus incllude a $65 million laboratory facility built by Clarian Health Partners and Indiana University's $30 million Information Sciences building. Read more about it. posted by Ed | Impacts of global trade Friday, February 13, 2004 Kenneth Louie, an associate professor of economics at Penn State, has given us a good explanation of the benefits of international trade. In sum, in a globally connected world, we gain more from exports than we lose from imports. The problem is that the gains from exports are "hidden" while the losses from imports -- downsizings and plant sutdowns -- are often quite visible. (For example, this week Travelocity announced that it is is closing down a customer service center in Virginia and shipping these jobs to India. Learn more.) Get a quick economics lesson on international trade and economic deevelopment. Go. Meanwhile, in Minnesota, economists are trying to estimate the impact of the new wave of outsourcing on the state economy. It's a tough question, one that has no easy answers. It is hard to separate job losses attributable to outsourcing from losses that are occurring because of the retrenchment of technology sectors and the general economic slowdown. Learn more. At the same time, we are not the only ones trying to gauge our exposure. This week, Edinburgh City Council in Scotland announced the formation of a new study team to evaluate the risks of outsourcing to India on the city's financial services sector. Learn more. posted by Ed | Anatomy of a deal: Louisiana's Project U Louisiana is trying to attract a midwest manufacturer to a location in south Lousiana. The company, a producer of heavy durable goods, has from 1,000 to 1,200 employees and a payroll of $42 million. Here are the details of Louisiana's package. Learn more. posted by Ed | Kentucky tax credits for venture investments Kentucky provides tax credits to investment funds in order to encourage venrture capital activity. Here's an article that explains the program. Go. posted by Ed | Web Watch: Louisiana forest products Wednesday, February 11, 2004 Louisiana has launched a new site for its forest products businesses. The state claims that it is the "most sophisticated forest products web site" in the country. One of the interesting dimensions of the site is the Request for Proposal (RFP) tool. The feature is designed to facilitate buying and selling. The state hopes that this feature will be particularly valuable for smaller rural companies. Read more. Visit the site. Go. posted by Ed | North Carolina makes a bold plan for biotech North Carolina's has released a plan that sets a bold goal: 100,000 bitoech jobs in the state in 20 years (by 2023). North Carolina starts with some impressive momentum. The state is home to more than 150 biotechnology companies, employing 18,500 and generating $3 billion in sales. Operating costs are up to 30% lower in Noorth Carolina than in competitive locations like Massachusetts and California. And the Golden LEAF Foundation, which distributes some of the money the state receives from the national tobacco settlement, has committed $64.5 million to build a statewide training network in biomanufacturing, starting with two universities and some community colleges. You can review the executive summary of the plan, prepared by the North Carolina Biotechnolgy Center. Go. posted by Ed | Anatomy of a deal: Controversy is still simmering over Boeing Critics of the Boeing deal in Washington are filing suit against the state government. They allege that the state has not released all the details of the recent deal to keep Boeing's 7E7 project in Washington. Read more. Meanwhile, it turns out that many of the tax breaks targeted to Boeing can also be claimed by other aerospace companies, even though they are not workin gon the 7E7. Learn more. posted by Ed | Southwest California launches new brand Southwest California Economic Alliance (covering southwest Riverside County) has launched a new brand. This is a good case of three smaller communities -- Lake Elsinore, Murrieta and Temecula -- putting a stake in the ground and defining a clear identity. Learn more. Visit the web site. Go. This approach to branding makes sense for smaller communities. Another good example: Bay Area Houston (formerly Clear Lake Area Economic Development Foundation). bay Area Houston represents nine smaler communities around Houston. Visit the site. posted by Ed | Nanotechnology overview Tuesday, February 10, 2004 Here's a good article on nanotechnology from the perspective of New Jersey's economic development. It gives you a quick overview of the challenges ahead for this emerging technology. Read more. I've just finished a good book on nanotechnology, The Next Big Thing is Really Small. You can also keep up with developments in the field at Small Times. posted by Ed | Mississippi's governor has got it right Mississippi's new governor Haley Barbour wants the state legislature to restore $100 million in cuts from higher education. Alabama's governor Bob Riley agrees with the strategy. Riley points out that a new economic development model is emerging, a model that builds economic strategies around higher education. According to Riley, “So many of our sister Southern states have taken a new economic model. They’re using the areas of higher education as the catalyst to move their states forward...If you look at these states that have the most aggressive, the most innovative economic models, it’s the ones who use higher education as a core component.” ” Barbour underscores the point: “Our businesses have three choices: They can innovate, they can immigrate or they can evaporate — and that’s just the plain cold hard facts. If we don’t help our businesses innovate and become more productive so that they can stay competitive, then they’re not going to be here. “Our universities are economic gold mines, and, hopefully, we’re about to learn how to mine them better.” Read more. posted by Ed | Savannah lands alternative energy center The National Science Foundation has given the Georgia Institute of Technology three years of seed funding totaling $600,000 to establish a new center in Savannah. The center, called InfinitEnergy, is a public-private partnership between state and local groups that is designed to stimulate innovation and economic development in the field of alternative energy. Read more. posted by Ed | Seattle's music industry On the night of the Grammys, Seattle's mayor released a report indicating that the city's music industry generates 8,700 jobs. Read more. We can trace the connection of music to economic development to Austin, where informal economic histories make the connection between the emergence of Austin's music scene and its high tech economy. (Austin is still pushing this connection. See "Austin's Economic Future: The Intersection of Innovation, Creativity, and Quality of Life".) You can download a copy of the Seattle report from this page. Go. posted by Ed | Anatomy of a deal: Citicorp in Greensboro Greensboro and Guilford County, NC are considering extending $2.3 milion in incentives to Citicorp Credit Services. Under the deal, Citicorp would agree to keep 700 employees already based in Guilford County and add up to 1,000 more jobs by December, 2007. (That's $1,400 in incentives for every job retained or created.) Learn more. posted by Ed | Pittsburgh ranked as America's 'greenest' city "Green buildings" are designed to be environmentally friendly. To establish a standard for green buildings, the U.S. Green Building Council (USGBC) developed the Leadership in Environmental and Energy Design (LEED) green building rating system. LEED is a national standard to assess building environmental performance. The nation's first building was certified under LEED in 2000. In 2003, five percent of new commercial and high-rise construction was registered with LEED, a total of 139 billion square feet of space. New York, Oregon and Maryland offer tax credits for new construction that meets LEED standards. Learn more. posted by Ed | Iowa Values Fund gains traction Despite an uncertan funding mechanism, the Iowa Values Fund is gaining some momentum. The Fund is financed by sales tax receipts, and the economy has slowed the financing. So, a group of legislators are proposing that the Fund be financed with tax exempt bonds. Read more. Hidden in the middle of this story is a red flag, though. Iowa (like other states) will be facing a shortage of skilled workers as the Baby Boom generation retires. According to the story, Iowa will be short 567,000 skilled workers by the year 2010. Sooner or later, we'll start to figure this out. The major constraint we all face in building a high income economy is skilled labor. posted by Ed | Northeast Ohio moves closer to a broader regional effort We're in the middle on this one. The Center for Regional Economic Issues, where I now work, has been engaged on a number of fronts to build a stronger regional collaboration in Northeast Ohio. Most recently, we participated in a team that conducted a public opinion poll on regional attitudes toward economic development. Read more. Next up: Foundations in the region will be holding a summit next week to explore how they can foster stronger regional cooperation. posted by Ed | Portland, OR's bioscience bet If you are in teh bioscience game, you'll want to read the perspective from Portland, OR. Portland has a lot of skeptics that the investment will pay off. And Joe Cortwright, author of a 2002 Brookings study on biotech is unpersuaded. He says, bluntly, "Nearly every metro area has similar hopes and dreams. It's just too late, I think, (for Oregon) to pursue this...If you're a brilliant young life scientist who wants to be an entrepreneur, you'll go where there is a lot of venture capital and a pool of people who've done this before." Read more. posted by Ed | Economy Watch Sunday, February 08, 2004 Here's are the most interesting economics articles I came across last week. Sluggish Job Growth May Threaten Recovery Bush Says U.S. Economy in 'Lasting Expansion' All Together Now U.S., Australia sign free-trade pact The New Face of the Silicon Age: How India became the capital of the computing revolution George Bush's budget: An election-year farce posted by Ed | Web Watch: Northwest Entrepreneurs Network Here's a good site for supporting entrepreneurs. It is clean, professional and easy to use. More important, it outlines a range of events that the Network uses to build connections. These events include breakfast meetings, seminars, an early stage investment forum, Entrepreneur University, Acclerate (a program to sharpen your business proposal, if you are not ready for "prime time"), and an executive roundtable. The list of sponsors underscores that the organization delivers value. Visit the site. posted by Ed | Economic development on Mississippi's coast The Sun Herald has been running a series of good articles on economic development in South Mississippi. The series gives you insights into the economic development game, and the series can provide useful perspective to other EDPros (an your volunteers) on how the game works. The development game The one that got away: The Boeing project In Jackson County, a win is good, but the long term may be even better In Harrison County, the cost of playing the development game posted by Ed | Report: NYC corporate retention deals lose jobs According to a citizen research group, New York City's costly retention corporate retention policy doesn't work. Analyzing 13 of the biggest (and formerly secret) deals, the report finds that the agreements actually allow firms to lay off up to 20 percent of their workers before triggering any real penalties. Download a copy of the report. Go. posted by Ed | St. Louis looks at airport-driven development John Kasarda, director of the Kenan Institute of Private Enterprise at the University of North Carolina, believes that airports increasingly are becoming magnets for commercial development. Airports in the 21st century, he says, have become what interstate highways were in the 20th century and railroads were in the 19th century. So it is no surprise that EDPros in St. Louis are paying attention to business development opportunities around Lambert Field. Read more. posted by Ed | Resource: Competitive Communities weblog If you are interested in the connection between physical development and economic development, read Competitive Communities weblog. Architect Kim Mitchell, my brother Hunter Morrison, and I are exploring what it takes to build a competitive community. Kim, Hunter and I are working to define what communities need to do to build quality, connected places. How do you build smart places for smart people? Our work investigates the intersection of physical planning and economic development. Kim Mitchell is principal in the architectural firm Morgan, Hill, Sutton & Mitchell in Shreveport, LA. Hunter is the former director of physical planning for Cleveland. He is now director of the Center for Urban and Regional Studies at Youngstown State University and senior fellow at the Kent State University's Urban Design Center of Northeast Ohio. We started working together when we were developing the master plan for Shreveport's Historic Music District. Kim's most recent post explores retailing in Santa Fe. posted by Ed | Mississippi, Alabama regional partnership Saturday, February 07, 2004 Sixteen counties in eastern Mississippi and western Alabama sit in the middle of an automotive corridor, but they have not generated much in the way of investment. The idea of collaboration between the two states emerged last June, and Mississippi's new governor, Haley Barbour, supports the idea. Governor Barbour's has a good quote to remember: "The velocity of change is increasing in the world. We have to help business innovate and become more productive, or they aren't going to be here." Here's the latest in the discussions. Go. posted by Ed | Phoenix completes benchmarking The Greater Phoenix Economic Council has completed a benchmarking report on 10 industry "sub-clusters". The study looked at Greater Phoenix’s relative strengths and weaknesses within the aerospace, high technology/software, life sciences and business services industries and compared the region against competitive regions such as Los Angeles, Dallas, Denver and Raleigh. Overall, Phoenix fared well. Relative strengths and weaknesses varied by industry, but there were some frequently repeated themes regarding cost and quality factors. Common strengths about the Greater Phoenix area included a quality business environment, the presence of a major international airport, and the competitive costs of real estate and labor. The primary weakness appeared in higher level work skills. IBM Global Location Services completed the report for $120,000. Read more. posted by Ed | South Indiana looks at broadband development South Indiana just completed a broadband report that concludes the region has options for developing more broadband capacity. This report could serve as a model for other rural regions looking into their broadband options. Read more. posted by Ed | Triad region detects more activity The Triad region of North Carolina -- Winston-Salem, High Point, Greensboro -- is seeing more prospect activity. According to one EDPro: "This is the highest client load right now in the three years I've been working here." Read more. posted by Ed | Massachusetts needs to "connect the dots" in research Friday, February 06, 2004 A new report lays out a strategy for Massachusetts to attract more federal research funds. The report makes the argument that Massachusetts is falling behind leading edge states like California, New York, and North Carolina. The report outlines a strategy for Massachusetts that includes developing collaborative research partnerships, investing in the research capabilities of the University of Massachusetts, and making available matching funds to help attract federal research grants. Read more. posted by Ed | Web Watch: Capital Access Arkansas The University of Arkansas at Little Rock’s Institute for Economic Advancement has created a new Web-based service to provide small businesses and nonprofits information on local banks, lenders and finance programs. The Web site works as a small business funding source guide. It lists commercial bank and venture capital lenders, community economic development lenders, loan descriptions, a financial glossary, business incentives and information on legislation. It offers links for small businesses and entrepreneurs and includes a financial calculator. Visit the site. Go. posted by Ed | Georgia, Manitoba sign letter of intent Thursday, February 05, 2004 Here's another case where states are starting to engage in their own foreign economic policies. (This trend is another indication that regions are increasingly important in the global economy.) Governor Sonny Perdue and the Premier of the Province of Manitoba Gary Doer today signed a Letter of Intent on cooperation in innovation, economic development and entrepreneurship between Georgia and Manitoba. Read the letter of intent. posted by Ed | Creative farming Wednesday, February 04, 2004 EDPros in rural communities will like this story. It comes from Vermont, where the dairy industry has been under a relentless price/cost squeeze. Two farms are responding. One is moving into organix milk production. As second has switched from cows to goats. Read more. The article is interesting because the author connects the dots between agriculture and "the creative economy". Creativity is not limited to "the creative class" of young people. Creativity is a deeper concept that ties closely with business innovation. To learn more about value added agriculture, visit these sites: Site 1. Site 2. Site 3. posted by Ed | Fort Wayne's new regional focus Yesterday, Fort Wayne's mayor announced a new economic strategy with two important features. First, he's focusing on his region: Northeast Indiana. He is tying the city's efforts to the regional focus of the Northeast Indiana Corporate Council. Second, the mayor has targeted the importance of upgrading the skills of the existing workforce with a "Learn to Earn" initiative. This emphasis makes sense: 80% of the workforce for the year 2010 is already in the workforce. Read more. In March, 2003, the Northeast Indiana Regional Corporate Council unveiled its analysis of economic development issues facing the community and called for a $20 million fund to be created that supports economic and entrepreneurial development. Download the report and a progress report. posted by Ed | Massachusetts Innovation Report Tuesday, February 03, 2004 A new report from Massachusetts outlines how federal funding provides fuel to the state's innovation economy. Download a copy of the report. Go. posted by Ed | Resources: Georgia's mid-sized city technology initiatives Georgia has launched an innivative set of iniatives to promite economic development among its mid-sized cities. They include a branding program -- Greater Georgia-- that focuses the interests of these cities in a common marketing strategy. Learn more from the project web site. Go. posted by Ed | Kansas Economic Growth Act gains some early momentum A proposal in Kansas is starting to gain some momentum. The Kansas Economic Growth Act focuses on two initiatives: one in entrepreneurship and one in biosciences. The plan strikes a tough balance between focus and inclusion, urban and rural. To be economically sensible, any state initiative needs to be focused on investment, and these investments tend to be geographically concentrated. At the same time, to pass the legislature, the program must address the needs of rural legislators. The proposal signals another step away from traditional recruitment as a primary focus of economic development. As one of the legislation's sposnors noted: "We've been saying all along that the economic strategy of robbing thy neighbor to try to recruit jobs to our state is no longer a satisfactory strategy. This initiative is clearly about trying to grow our own." EDPros should pay particular attention to how the legislation foccuses on entrepreneurship and develops funding streams to support the proposed initiatives. Read more about The Kansas Growth Act. Go. You can download background materials from this page. posted by Ed | Economy Watch Sunday, February 01, 2004 Here's the best economics writing I found last week: Though economy cools a bit, recovery still under way Economy slows to 4% growth in the U.S. Economy still shows signs of recovery The Fed sees a stronger economy in the numbers, but the markets aren't convinced It's the economy Potter: Global economy making greater demands posted by Ed | Anatomy of a deal: American Airlines in Kansas City It's a good idea to have a "clawback" provision in a performance-based incentive deal. This feature allows you to recover incentives if the company does not meet certain performance targets. But when communities extend incentives to financially weak companies, you can open yourself to new risks. In the case of American Airlines in Kansas City, the company negotiated a parachute so that it could jump out of the clawback provision. The company does not have to repay incentives in Kansas City if, beginning in 2006, its operating losses during any four-quarter period exceed $750 million and its fleet declines by 5 percent because of adverse conditions in the aviation market. This escape clause opens Kansas City to major downside risks. Read more. posted by Ed | Hattiesburg adjusting to the new realities...L.A. notices Last July, I posted an article on how Hattiesburg, MS was adjusting to the new realities of global manufacturing. (See Hattiesburg connects the dots between research and manufacturing posted on July 7, 2003. I was referring tothis article on Hattieburg's work with Hybrid Plastics Inc., a pioneering company in nano-composites.) And in my 2003 wrap-up, I noted that Hattiesburg made my list of leading communities. Read the Leading EDPro stories of 2003 . This week, The Los Angeles Times takes note. In an editorial titled, "Save State's High-Tech Edge", the editors point to Hattiesburg's strategy of investing in technology-based manufacturing as a major competitive challenge to California. Indeed, Hattiesburg is a challenge to California. But the bigger challenge to all of us comes from emerging innov ating regions across the globe. Here is another commentary that puts the issue in a global context. Read the LA Times editorial. posted by Ed | Confronting zoning in coastal South Carolina Rural areas often face the future with no tools to manage the pattern of growth within their borders. The result: haphazard growth patterns, sprawl, strip development, visual clutter...all adding up to a loss of rural character. That's the challenge facing Georgetown County in South Carolina, just north of Charleston. Last week the Economic Development Commission held a day long session on zoning. John Scarborough, and EDPro from Berkeley County (outside Charleston), explained how his county adopted countywide zoning. Read more. Good quote about zoning: "It's not so much telling you what you can do with your property, but protecting you from what could be done on adjacent property." Last week, I was up in Maine talking to the Economic Development Council of Maine. The same problem of zoning is creating development challenges in Southern Maine, near Kittery. posted by Ed | Quality growth in Thomasville, GA Small towns face a real challenge of maintaining their character while not turing their back on economic grwoth. The concept of "quality growth" is starting to gain some traction as a way to express this balance. (We used this concept in the Chraleston, SC regional report. Read more.) Here's an example, on a smaller scale from Thomasville, GA. The Georgia Department of Community Affairs organized the Thomasville Quality Growth Resource Team, thirty-two experts skilled in areas such as growth management, urban design, housing and historic preservation. You can download the report from the town's web site. Go. posted by Ed | Resource: International Computer Driving License Twenty-six community colleges in Northern California have formed a collaboration to improve computer literacy skills. The Bay Area Information Technology Consortium is building their program around skill assessments. The Consortium is adopting the International Computer Driving License (ICDL) to meet its goal of bringing 10,000 students up to an industry defined standard by 2005. The ICDL is a recognized program that certifies people based on industry standards of competence. Learn more about what is happening in California. Go. Learn more about the International Computer Driving License. Go. posted by Ed | Western Michigan model for technology commercialization You do not have to be big to try a bold idea. Grand Valley State University in Grand Rapids has launched the West Michigan Science and Technology Initiative, an initiative to commercialize ideas for new medicines and medical devices. There are a couple of interesting dimensions to this program. First, the initiative is not relying exclusively on a local research base. Instead, managers are negotiating technology transfer arrangements with national corporations and research institutions that will make technology available to local firms. Second, the financing is shared. The city of Grand Rapids and GVSU fund the $200,000 annual operating budget for the program.Read more. posted by Ed | Resource: FastTrac You can expand the entrepreneurship training available in your community by introducing FastTrac, a curriculum developed by the Kauffman Foundation. Here's an example from Florida. Read more. You can also learn more from the FastTrac web site. Go. posted by Ed | |
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