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New technology park in southern Indiana
Monday, May 29, 2006 Purdue and Indiana University are planning a new technology park in southern Indiana, across the river from Louisville. This step will strengthen that regional economy. The new facility will strengthen Purdue's presence in this part of the state. Read more. We are starting to see a significant alignment in Indiana among universities, the state government, and the federal government...all to advance an innovation agenda. I'll be traveling to West Lafayette this week to visit with the folks at the Center for Regional Development to work more on how this alignment can take place. (I am working with the Center as Economic Policy Advisor on their WIRED grant.) Next week, Leadership Indiana will be holding its annual summit on The Urgency of Innovation. You can learn more here. You can download the recently released state strategy here. posted by Ed | St. Paul looks at wireless St. Paul has been looking at its options for a citywide wireless network. Read more. You can download their report here. The introduction gives a good overview of municipal wireless issues. posted by Ed | Plugging the brain drain with networks Civic leaders in Pensacola have launched a new entrepreneurship network with an eye to keeping more brainpower around. Read more. Creating stronger civic networks of all types -- young professional networks, angel capitqal networks, entrepreneurship networks -- strengthens the regional economy and creates the sense of excitement and opportunity that keeps smart people around. The best way to address the brain drain challenge is to build more connections within a region. Here's an example of how civic leaders in a Wisconsin county are addressing the issue. They are launching a new group called Synectic Professionals' Interactive Network. Read more. posted by Ed | Building the North Carolina innovation economy The North Carolina Technology Association held a leadership conference on innovation last week. Read more. Jim Roberts, a loyal EDPro Weblog reader, spoke at the event. The article notes: "Jim Roberts, executive director of the Blue Ridge Entrepreneurial Council, has gone about raising early capital in another way – by educating high net worth individuals. 'My job is building a social entrepreneurial network in Asheville and putting an infrastructure in place to allow people to succeed,' he said. "When Roberts arrived in Asheville in 2002, angel investors hadn’t put any money into local start-ups; last year, they invested $4.35 million – 'most of it in $25,000 checks.'" posted by Ed | Research Triangle Region report Research Triangle Regional Partnership released its State of the Research Triangle Region report. Read more. You can donwload a copy of the report from the button in the upper right hand corner of this page. posted by Ed | Abandoning old models of economic development In Northeast Mississippi, two economists got together and agreed on a simple forecast about the future of economic development. Economist #1: "There is not a single formula, but having cheap low-skill labor isn't effective anymore. Now you have to find out what makes a region unique, what works well... What you have to do is encourage innovation and entrepreneurship. It's about finding a niche, and yes, marketing what you have." Economist #2: Economic recruitment methods of 40-50 years ago just don't work anymore. Read more. posted by Ed | Gambling's dark side Casinos represented an old development strategy that is primarily appropriate for rural counties located near metropolitan regions. (The reason has to do with the economic dynamics of gambling. For gambling to be a net positive for a region, you need at least 60% of your patrons from outside the region. That's relatively easy to do with a rural county. It is virtually impossible to do in a large metro region. Gambling works as economic development in Rising Sun, IN, but it is a real moon shot in a place like Cleveland.) At the same time, other factors are often left out of the equation. Gambling carries tremendous hidden social costs. Here's a very good series of articles that explore the social costs of gambling: Hooked on Gambling. The series includes some audio interviews. Read more. posted by Ed | Identifying clusters in eastern Tennessee The Tri-City Economic Development Alliance in eastern Tennessee has completed a new cluster study. The report will help focus the region's marketing strategy. Read more here and here. The region is looking to its airport as a development hub. Read more. posted by Ed | Clean energy cluster in Colorado Civic leaders in northern Colorado are moving ahead with the formation of a new cluster on renewable energy sources. The idea of creating a clean energy cluster has attracted widespread development support from government, business and university leadership. Read more. posted by Ed | The lack of skills Charles Lawton is one my favorite commentators on economic development. Writing from Maine, he provides fresh insights into some of the most difficult challenges we face as EDPros. In recent column, Chuck outlined how a shortage of jobs really represents a shortage of skills. He provides a good analysis of some of the disconnections that we'll have to overcome in order to build high performing regional economies in the future. Read more. posted by Ed | Chicago's leaders learning from others In Chicago, the Economic Development Council is moving ahead with plans to learn how all other regions have leveraged university-based research. They have brought together leaders from Technology regions in Cambridge, England, St. Louis, and San Diego. Read more. Too few civic leaders reach outside their political boundaries to understand how all other regions of address the challenge of innovation. Innovation matters because it can deliver better products and services; new, clean and more efficient production processes; and higher performance business models. But figuring out how accelerate innovation is not easy task. Learning from others is the best place to start. Civic leaders need to go out to learn more about how different regions are competing in today's economy. If they are not, that's a good predictor of a region in decline. posted by Ed | Johnson Controls and inner city economies In Milwaukee, Johnson Controls has been the spearheading an initiative to revitalize the inner city. Learn more about this approach. Now with the support of regional business and civic leaders, the company is moving this model to a regional scale. Read more. posted by Ed | Moving ahead in Evansville Evansville, Indiana is moving ahead with some interesting and ambitious regional development plans. Importantly, the mayor is trying to concentrate technology-led development investment downtown. The plan calls for a downtown building to be developed as a business center and incubator, housing start-up businesses and other economic development agencies. The proposal also creates a group named Innovation Pointe to oversee the downtown technology park and assume the duties of the Evansville Technology Council and the Evansville Small Business Center. Here's some more detailed on what has been going on. Read more. posted by Ed | Business Week: The skinny on ethanol Here is a good article that explains some the facts and myths around ethanol. Read more. posted by Ed | Accelerating Maryland Industrial Partnerships Maryland has nearly doubled the budget for a program that encourages university researchers to engage can collaborative projects with businesses. The program, called Maryland Industrial Partnerships, supports cooperative research projects between business and Maryland's universities. The initiative currently supports 30 research projects with an estimated $10 billion impact on the state's economy. Read more. posted by Ed | Manufacturing's customer connections In Wisconsin, manufacturers are exploring the new business practices they will need to adopt in order to compete in a global economy. Manufactures need to deploy new business models that emphasize the importance of customer connections. As the keynote speaker recent Manufacturing Matters conference notes, "Manufacturing executives must begin to ensure the following questions: how can I create 50 percent more value for every customer I have for every year going forward?" Read more. posted by Ed | The Bay Area Business Confidence Survey There are a variety of ways to keep track of a regional economy. The Bay Area in San Francisco has developed some of the most innovative approaches to measuring their regional economy. The Bay Area Business Confidence Survey the represents a quarterly survey of top executive attitudes. Here's a press release on the latest quarterly report. Read more. posted by Ed | Chicago's innovation awards Chicago is promoting the idea of innovation wards. This is an approach that can be replicated in many different communities across country. In order to meet the challenge of global innovation, we have to change the mindset of our civic leadership. Recognition events represent one way to start. Read more. To learn ore about the golobal challenge we face in innovation, visit the InnovateAmerica web site. Go. posted by Ed | Economy Watch Sunday, May 21, 2006 Here are the articles on the economy I came across last week. Good Reason to Stay Cool Amid New Inflation Scare The growth of growth theory Skills, Jobs, Competitiveness, and Innovation America's rich are getting richer Down To Business: Job 1 For The U.S. Economy: Build A Tech Workforce Vital Signs: Reports Keep the Markets on Edge The US in Peril? Where Is the Small-Biz Revolution? Fact Sheet: The American Competitiveness Initiative: R&D Offshoring: Is It Working? posted by Ed | Incentives Watch Here are the articles on incentives from last week. The Supreme Court struck down a challenge to Ohio's investment tax credit in the case of Cuno v. Daimler-Chrysler. Read more. UPS is expanding its main air huib in Louisville with a $1 billion plan and $31 million in tax incentives. Read more. Ohio and Indiana are competing for a Honda plant, which will likely be located in the Midwest. Read more here, here and here. Gwinett Count, GA has put together a big package for Hewlett Packard. Read more. Cabela's announced its first store in Indiana with $9 million in state incentives. Read more. Despite misfires, Georgia still thinks its Kia plant is a "go". Read more. Facing pressure on incentives, Utah's government is looking to steer more help to in-state firms. Read more. posted by Ed | Quotes of the week Here are some insightful quotes from last week. "Education is a fundamental driver of economic growth." Sean Snaith, the director of the Business Forecasting Center at University of the Pacific in Stockton. “Some states are pursuing strategies that explicitly target certain ‘desirable’ industry clusters. This plan does not propose such a strategy for Indiana as it is not appropriate for government to try to pick ‘winners’ in the game of economic competition.” Accelerating Growth, Indiana’s Strategic Economic Development Plan. "The key to economic success or business and for regions in this global economy is distinctiveness and what's different about your place." Joe Cortright from Portland, Ore.-based firm, Impresa Consulting and author of a new report for Tampa Bay. "We have to change with the times. We cannot continue like we did in the past. I told our workers this was a new age and a new way of doing things." UAW Vice President Nate Gooden in an interview with The Washington Post. "An innovative company which employed 1,700 people 20 years ago may need only 177 people to produce a better product at the same rate today. That doesn't happen by accident -- it happens when companies work smarter." Birgit Klohs, president of the Right Place Inc. in Grand Rapids, MI. posted by Ed | Albany: Enough entrepreneurs? In Albany, New York, civic leaders are exploring whether there are enough entrepreneurs to power the regional economy. Read more. During the course of the discussion, several participants commented on the importance of mentoring in order to train new entrepreneurs in the skills they need to build a business. Economic development professionals often get this calculation wrong. They see the absence of startups in their region, and they think that the real problem is an absence of venture capital. While many regions can benefit from strengthening the networks of informal investors, early-stage capital follows good ideas. It does not create them. The challenge most regions face is the challenge that the Albany region is exploring: How do you build stronger networks to support entrepreneurs and tranfer the skills they need to translate ideas into new businesses? As one participant in the discussion noted, this challenge becomes more difficult as university research accelerates. Earlier stage ideas and newer technologies make the translation more complex. posted by Ed | Creative Tampa Bay! Creative Phoenix? Richard Florida has some very helpful insights, but it's tougher to see how to come up with practical initiatives. Tampa Bay one region that bit down hard on Florida's creative class. Creative TampaBay has been focusing on how to implement Florida's insights. The organization hired a consultant out of Oregon, Joe Cartwright, with strong credentials in economic development. Cartwright outlined the contours of his findings last week. Read more. he is clearly trying to give the leadership some practical frameworks to focus their time and resources. You can download a copy of the presentation from this page. Meanwhile, some civic leaders in Phoenix are also pursuing this track. The conclusions of their study are not as promising. Read more. You can downlaod thier study here. posted by Ed | Maryland's university business partnership initiative The state of Maryland is accelerating its investment into the Maryland Industrial Partnerships program. This initiative leverages university expertise to help Maryland companies innovate and commercialize new technologies. Read more. posted by Ed | Early education and economic growth Education, especially early education plays a critical role in generating future prosperity. A new policy brief from the Brookings Institution, explores how to quantify the impact of early education. Over the last 40 years, the report notes that education accounts for anywhere between 13% and 30% of the total increase in productivity that our economy has generated. The report goes on to explore how investments in early effective preschool education can have dramatic economic growth effects. You can download a copy of the report here. posted by Ed | Purdue connects with Southern Indiana Regional leaders in southern Indiana are aggressively moving forward with their plans to connect programs at Purdue with their economic strategy for southern Indiana and Louisville. Read more. posted by Ed | Tourism as economic development In the past, economic development professionals tended to look down on tourism development. Now, however, the lines separating economic development, community development, tourism development, and workforce development are all blurring. Innovative regional leaders are getting back to basics. Any business that attracts money from outside the region tends to improve prosperity within the region. These traded businesses include tourism. So, for example, tourism is big business in Appalachian Ohio. Read more. posted by Ed | Indiana's Agricultural Economic Development Initiative The winds of change are blowing across Indiana, and one of the major new statewide initiatives involves agriculture. The Department of Agriculture's Agricultural Economic Development Initiative focuses on building agribusinesses through collaboration. Here's an article that reviews what's happening in east central and northeastern Indiana. Read more. posted by Ed | The ideological trap Regional economies get into trouble when their leaders politicize the debate over economic growth. At the national level, food fights break out over the role of a government in the economy. At the local and regional level, regions that move ahead focus on practical collaboration, not ideological politics. Superheated rhetoric has no place in regional economic development. Nevertheless, the state of Maine may be on the verge of falling into this trap. Read more. posted by Ed | In a brainpower economy, education is economic development The San Joaquin Valley in California is confronting a fact that many other regional economies encounter. Low levels of education and performance within the region limit the future trajectory of the economy. As one EDPro notes, "Businesses look at workforce and education levels, and they base their decisions to locate here on those factors." Read more. posted by Ed | Arizona's bioscience push Arizona is continuing its push into the biosciences. The state legislature is currently considering legislation to create the Arizona 21st Century Fund. The fund would provide $150 million for five years to medical, science and engineering programs in Arizona. Read more. You can download a summary of Arizona's bioscience initiatives here. posted by Ed | AT&T expansion of fast internet The new AT&T operates a large service footprint. So, it's significant that its chief executive officer announces that the company will expand satellite-based fast Internet services to US rural markets and expand its investment in Wi-Max wireless connections. Read more. As a recent article in Foreign Affairs points out, "Once a leader in Internet innovation, the United States has fallen far behind Japan and other Asian states in deploying broadband and the latest mobile-phone technology. This lag will cost it dearly. By outdoing the United States, Japan and its neighbors are positioning themselves to be the first states to reap the benefits of the broadband era: economic growth, increased productivity, and a better quality of life." Read more. posted by Ed | Resource: Science and engineering employment in U.S. metros A new study out of Canada provides some interesting data on science and engineering employment in US metropolitan areas. The research paper compares the size of science and engineering employment in Canada to that of the United States. You can read more about the report from this page. You can download the report here. posted by Ed | Brookings: New Jersey losing its competitive edge The Brookings Institution is working on a an assessment of the New Jersey economy for the new governor Jon Corzine. The preliminary report alerts the state's leaders that New Jersey is losing its competitive edge. Read more. You can download the presentation from this page. posted by Ed | New business competition in Georgia A new business competition in Georgia, supported by the Georgia Research Alliance and the Technology Association of Georgia, has launched. The partners have announced the finalists for their new competition. Two features distinguishes competition from others. First, it is focused in a particular technology area. Second, the winner gets a meaningful prize: a combined package of seed money and professional services worth $250,000. By providing in-kind services, the competition accelerates the evolution of business development networks. Read more. Many people focus on the technology clusters that emerge from high growth regions. Equally important, however, are the networks that emerge to accelerate business development. As one scholar looking at Silicon Valley has noted, "The complex organisation involving venture capitalists, law firms, executive search firms, accountants, specialised consultants, and a myriad of other business service professionals (represent a) critical explanatory variable for understanding Silicon Valley’s ability to constantly remain at the technology’s cutting edge." posted by Ed | New nano network in East Tennesse Eastern Tennessee around Oak Ridge has developed the brand, Innovation Valley. Last week, the U.S. Economic Development Administration announced that it was providing $100,000 to support a new network in nanotechnology. The new alliance is focused on encouraging the commercialization of nanotechnology-related research and Oak Ridge National Laboratory and the University of Tennessee. Read more. posted by Ed | Connecticut invests in angel networks The State of Connecticut will invest funds to develop an angel investor program. This initiative is part of a broader Next Generation Competitiveness Strategy. The strategy encourages collaboration among business, government and academia. Read more. Visit the Connecticut Venture Group web site. posted by Ed | New manufacturing business models The Great Lakes states are heavily dependent on manufacturing, and in Wisconsin last week, 600 manufacturing executives gathered to explore new business approaches. They learned about the best practices in lean manufacturing, supply chain management, export development and employee training. Read more. The popular business press often reports an inaccurate picture of what is really happening in our manufacturing economy. Manufacturing is not dying. Old manufacutring business models are. These business models relied heavily on stable production runs and relatively low labor costs. As global connections have increased over the last twenty years, manufacturing companies following static formulas for growth have seen their market shares erode. New business models and manufacturing have continued to emerge. These new business models focus on agility, innovation and connection. Here is an article from California on how manufacturers there are redesigning their business models toward leaner, more networked production. Read more. posted by Ed | President Bush focuses on science and math education President Bush announced two education proposals as part of his Competitiveness Initiative. The president is focusing on the importance of improving science and math education. Read more. Here are some facts compiled by the National Academy of Sciences that underscore the importance of these investments: 1. In a recent international test involving mathematical understanding, U.S. students finished in 27th place among the nations participating. 2. About two-thirds of the students studying chemistry and physics in U.S. high schools are taught by teachers with no major or certificate in the subject. 3. In the case of math taught in grades five through twelve, the fraction is one-half. Many such students are being taught math by graduates in physical education. posted by Ed | Supremes reject challenge to Ohio's tax credit program Monday, May 15, 2006 This morning, the U.S. Supreme Court rejected a challenge to Ohio's investment tax credit program designed to encourage economic development in a case about tax breaks to DaimlerChrysler for a Jeep plant in Toledo (DaimlerChrysler Corp. v. Cuno). The justices unanimously ruled the plaintiffs did not have the legal standing or right to challenge the investment tax credits. You can read the transcript of the oral argument here. The justices did not decide the merits of the argument by the plaintiffs that the tax breaks unconstitutionally interfere with interstate commerce by giving preferential treatment to investment within the state. A North Carolina court rejected a challenge to the incentive package for Dell on similar grounds: The plaintiffs did not have standing to sue. Read more. posted by Ed | Economy Watch Saturday, May 13, 2006 Here are the interesting articles on the economy I came across last week. U.S. economy isn't perceived as strong Gloom at a time of growth Affluence and Its Discontents Should I teach my kids Chinese? Vital Signs: Inflation and Housing Take Center Stage US tops world competitiveness league It Feels Like 1998 All Over Again High-Speed Web Goes Rural Manufacturing Myopia posted by Ed | Incentives Watch Here are the articles on incentives from last week. The big news came when a North Carolina judge threw out the case against the Dell incentive deal. Read more. The next big news came from a proposal from a congressman (from Tennessee) for Tennessee, Georgia and Alabama to work together to land a Toyota deal (to locate in Tennessee). Read more. Bridgestone is moving the headquarters of its aircraft division to North Carolina. The incentive package is $2.7 million for 95 jobs, or about $300,000 per job. Read more. A Dallas newspaper raises some probing questions about tax incentives for corporate headquarters at Pier 1 and RadioShack. Both companies are in trouble. Read more. Governor Bush got bashed on his education reforms, but he did manage to pass a major package of economic incentives. Read more. Alternative fuels are attracting new attention in South Carolina. Read more. Another Bass Pro shop deal is raising questions about incentives. Read more. Here's where Tennessee will be investing its next load of incentive dollars. Read more. Charter reforms are raising incentives questions in Austin. The article contrasts the very public process of zoning changes with the very closed process of incentive investments. Read more. posted by Ed | WIRED kickoff in Kokomo Last week, I attended the Workforce Innovation for Regional Economic Development (WIRED) kickoff in Kokomo, IN. Read more. North Central Indiana is one of thirteen WIRED regions across the country. Emily DeRocco, Assistant Secretary for Employment and Training for the U.S. Department of Labor, explained the process of moving forward with the WIRED. I confess that when I first learned of WIRED late last year, I was skeptical. But as I have come to understand the ambitions of the WIRED initiative, I think it is the most innovative economic development idea to come out of Washington in nearly thirty years. If succcessful, it will rank right up there with SBIRs as a new way to leverage federal funds to accelerate innovation. (Roland Tibbetts of the National Scince Foundation developed SBIRs in the late 1970s. I had the privilege to interview Roland when I was working on Capitol Hill and he was first implementing the idea.) We are moving into a networked economy and away from older industrial structures. Part of the problem with the federal government comes in the legacies of old ideas that never quite fade away. This inflexibility discourages innovative thinking. In the past, this pattern has encouraged local officials to become very good at "funds brokering". We need new approaches to accelerate productive investment. These strategies, broadly defined, will "link and leverage". The federal government has a valuable role to play, but to assume that role, different agencies need to collaborate and partner with local and regional leaders. Equally important, federal officials need to demonstrate an authentic willingness to partner. The WIRED project breaks new ground in acclerating these emerging relationships. Most encouraging, Secretary DeRocco was very open to new models of economic development, based on the work we have been doing with open networks, what I refer to as Open Source Economic Development. posted by Ed | Some useful resources Here are some valuable resources I came across recently. A trade database. There's a bunch a free stuff, and you can order custom reports. Read more. A study of science and engineering employment in the U.S. and Canada includes some detailed data on metro areas in the U.S. Read more. Educational attainment is a critical driver in economic prosperity, and here is a set of historical data. Read more. In Canada, KPMG has released its 2006 Competitive Alternatives Study: A Guide to International Business Costs. The data are available through a web site. Read more. The WIRED project from the Department of Labor's Employment and Training Administration is the real deal. They are focusing on redesigning the relationships among regional, state and federal resources to accelerate innovation. They have compiled a good summary of innovation reports on this page. Duke University has a valuable web site that explores North Carolina in the global economy. Read more. posted by Ed | Get the entrepreneurs on the bus In Louisiana, a mobile classroom provides guidance to potential entrepreneurs interested in starting a business. Read more. posted by Ed | A cluster forming Here's an example of a new cluster forming. In Missouri, the state is focused on the development of plant science or ag-bio. A loosely designed consortium is forming to identify new development opportunities for the state. Read more. posted by Ed | Improving communities by design Vibrant economic regions are sticky to both people and money. In today's economy, talent is mobile. Smart people will come and stay where they experience a unique sense of place. Typically, downtown districts provide opportunities to create that sense of place. In New Mexico, a workshop is focusing on how to build a sense of place in smaller towns. Read more. In addition, here's a good background report from the National Governors Association. Download. Here is a useful report out of Canada that provided me with some useful insights about the idea of "community-based regionalism". Download. Finally, the Mid-America Regional Council in Kansas City has put together a very useful web site on developing quality places. Read more. posted by Ed | Angel fund focusing on women and minorities In Madison, Wisconsin, a new angel fund has closed that focuses on the women and minority-led firms. Read more. posted by Ed | Alternative fuels in South Carolina In Charleston, South Carolina, last week, the ThinkTEC held its annual summit. The focus of the discussion was on new energy sources. ThinkTEC is the technology development arm of the Charleston Metro chamber. Read more. posted by Ed | Challenges facing Atlanta Here's an interesting commentary from a former Georgia congressman on the challenges facing the Atlanta region. Read more. posted by Ed | Changing the conversation Building an innovation economy involves shifting people's mindset toward opportunities. Too often, the civic conversation is focused on what happened yesterday. These conversations rarely lead to new directions. In Oklahoma, a radio program is contributing to shifting the perceptions of people about the state's economy. The program focuses on emerging companies building new sources of wealth by following new business models. Read more. This type of radio show can contribute to changing the conversation. Podcasting is another approach to changing the conversation. Learn more. posted by Ed | Entrepreneurs in smaller communities At Ball State University in Muncie, Indiana, the director of the Center for Entrepreneurship is focusing on assisting part-time MBA students to become entrepreneurs. The initiative will support entrepreneurs in smaller communities. This model will be a good one to track. Read more. posted by Ed | Nurturing Hispanic entrepreneurs The growing Hispanic population in many regions creates a new economic development opportunity. Supporting Hispanic or Latino entrepreneurs can build wealth within a region. Here is an interesting overview article about what is it happening in Tacoma, Washington. Read more. posted by Ed | Commission on the Future of Northeast Mississippi The CREATE foundation in Northeast Mississippi sponsors the Commission on the Future of Northeast Mississippi. Its annual status report provides a good snapshot of the region and the counties within the region. Read more. You can visit the Commission web site and download regional reports from this page. posted by Ed | Cleaning up the Cuyahoga Organizing a clean-up campaign is one of the first steps that community can take to develop a new sense of connection and place. Clean-up campaigns can begin creating the networks you need to transform a community. Clean-up campaigns can lead to promising new networks and new strategies. Here is a good example from my home town. Years ago, the Cuyahoga River was an industrial waste land. While the Cuyahoga will continue to be a center of industry within our region, it is also become a major recreational resource. For the past seventeen years, citizens have come together every year to clean up the banks of the river and draw attention to the importance of the Cuyahoga to our region. Read more. Following other regions like Chattanooga, civic entrepreneurs across Northeast Ohio are moving to design sustainability into our regional economic development DNA. (The actual process is akin to transfection: the introduction of a foreign gene into a host cell.) For a number of years, EcoCity Cleveland has been advancing a new agenda focused on sustainability. Visit the site. Recently, a new web site, the GreenCityBlueLake, launched to provide a new commmunity network for an emerging sustainability economy in Northeast Ohio. Visit the site. A dynamic network of entrepreneurs, Entrepreneurs for Sustainability, operates in the region. Visit their web site. Focusing on sustainability has led to other innovations. At Cleveland State University, a new initiative in High Performance Building is underway. Learn more. In the Cuyahoga Valley, a new vision has emerged of a Valley dedicated to sustainability. Visit the site. This strategy is very similar to new thinking going on in Massachusetts. Read more. The emerging sustainability networks in Northeast Ohio are catching the leading edge of a major shift in business. As this seminar at the University of Virginia Business School illustrates, sustainability is emerging as a growth opportunity. Read more. (Interestingly, all this is happening outside the sight lines of the traditional business community in Cleveland. The leadership of the Greater Cleveland Partnership, dominated by real estate interests, is instead focused on trying to get a gambling resolution on the November ballot. Read more.) posted by Ed | Shifting from recruiting firms to developing talent One of the major challenges facing economic development policy in the years ahead will be shifting our investment from firms to people. As one EDPro noted earlier this week. "We're no longer chasing smokestacks, were chasing talent." (I would make a slight modification. Instead of chasing talent, we should focus our attention on developing talent and attracting talent.) To make the shift, we will need to accelerate our investment in early childhood education. Advances in brain science in late 1990s demonstrated the importance of investing in early child care. Working with former KY governor Martha Layne Collins, I drafted the 1998 Commission on the Future fo the South report that recommended states begin investing in early childhood education as an economic development strategy. (You can download the report from this page.) In our report, we noted that "workforce development begins with a pregnant mother". More recently, two economists at the Federal Reserve Bank in Minnesota have been underscored the importance of early child care as an economic development strategy. Read more. You can learn more about the work of the Federal Reserve Board in Minnesota here. posted by Ed | Pittsburgh's becoming more entrepreneurial The Pittsburgh economy is becoming more entrepreneurial. That is a conclusion of Innovation Works, a Pittsburgh-based organization that provides investment and business support to early-stage technology companies in nine counties. "We saw improved and strong signs of growth in momentum in entrepreneurship in just about every key metric that we track," according to the CEO of Innovation Works. Read more. The most important point: They are tracking metrics. posted by Ed | Iowa's experiment with economic gardening Iowa is launching an interesting experiment in "economic gardening". With a wide-ranging collaboration, 24 students from the state's universities will participate in the advanced study of entrepreneurship. They will network with entrepreneurs, business and community leaders, and others to explore new venture opportunities within the state. Read more. The approach of economic gardening was developed by Chris Gibbons in Littleton, Colorado. The strategy emphasizes the importance of "growing our own". You can learn more about economic gardening from Chris's web site. Read more. Economic gardening is an important variant of a new trend in economic development: Creating wealth through open networks of collaboration, innovation and entrepreneurship. posted by Ed | Managing land use discussions Over the next six months or so, Allegheny County in southwest Pennsylvania will be putting together a land-use plan. It is one of the last of Pennsylvania's 67 counties to develop a comprehensive land-use plan. The announcement caught my eye. The planning team is holding extensive public discussions, and they are focusing on a key question: "What is your favorite place in Allegheny County?" Starting a land-use discussion with this question helps the planning team in this way. By focusing on what the residents of value about the county, a land-use plan -- and a subsequent zoning ordinance -- can be designed to protect those favorite places. In this way, the land use and zoning process becomes a way of preserving what a community deeply values. Read more. posted by Ed | Developing environmentally friendly products The development of environmentally friendly products is another growth area on which some regions are starting to focus. The Merrimack Valley in Massachusetts is moving ahead with a plan to convert a vacant college campus into a research and development center for environmentally friendly products. "We believe green chemistry is the future of manufacturing and that if we get out in front of us, it will give the Merrimack Valley, a competitive advantage and a new growth industry," according to a local EDPro. Read more. You can learn more here. posted by Ed | Don't do this at home If you are an EDPro, be careful about sharing what you think is funny. Read more. posted by Ed | Economy Watch Sunday, May 07, 2006 Here are the articles that caught my eye last week. Dow reaches highest mark in 6 years U.S. Economy: Growth in Service Industries Quicken U.S. Economy: Productivity Fails to Keep Pace With Wage Gains U.S. Economy: Employers Add 138,000 Jobs; Wages Jump The Brain Race Vital Signs: Economy Keeps Up the Heat Mexico Building Incubator Network Oil produces unsettling times posted by Ed | Incentives Watch Here are the articles on incentives I came across last week. Florida passed a legislative package to promote innovation. Read more. Utah is reviewing its incentives to two organizations after charges of conflict of interest have been raised. Read more here and here. Here's an interesting case history on the process of applying for incentives in Kentucky. Read more. Here's a profile of the type of projects that receive incentives in Tennessee. Read more. Austin is starting to debate incentives. Read more. The Mackinac Center raises some interesting issues in discussing Michigan's poloicy toward incentives. Read more. posted by Ed | Don't do this at home Last week, Austin hosted the 15th World Congress on Information Technology. Representatives from 80 countries registered for the event. Read more. As part of the event, EDPros from Lubbock handed out free tote bags with the message: "Lubbock Economic Development Alliance, Home of Texas Tech University" Read more. Well, the folks in Austin just couldn't stand the idea that people from Lubbock would be handing out free tote bags in the Austin Convention Center. (Can you imagine!) So, City Manager Cindy Futrell got on the phone and ordered 2,000 tote bags -- rush order, please -- with Austin's name. She huffed to a local reporter: "The conference is in Austin. People need to remember Austin when they leave, and we are going to make sure of that." Read more. (Hmm. Let me see. The people who came to Austin might get confused and think they were in Lubbock.) It's time for EDPros (including city managers) to start acting differently. In the global economy, it's a fool's game to think that one city can get ahead by pushing another city away. We cannot move forward if we all are acting like crabs in a bucket, pulling each other down. Instead of ordering her own tote bags, the City Manager would have been far better off promoting the idea that Texas is not just Austin. Texas Tech is a fine university, and Austin will make no headway by trying to elbow Lubbock out of the picture. (Indeed, one EDPro reader noted to me that the incident had actually accelerated the press interest in Lubbock.) Instead of ordering tote bags, the city manager should have used that money to invite university and city leaders in Lubbock to come to Austin for an exploration of how the two cities could collaborate. Where are the opportunities between University of Texas and Texas Tech? (Figure the tote bags cost Austin $4 to $5 a piece or about $8,000 to $10,000.) Step back. We are competing in a global economy. In my talks around the country, I remind civic leaders to take the Shanghai Perspective. The folks in Austin might not like the folks in Lubbock, but, guess what? The people in Shanghai -- our competitors -- don't care. (Indeed, they are probably happy that we are occupying our time with inconsequential matters while they build their innovation economy to compete with ours.) Remember: We need to build our innovation economy. To do that, we need to develop hundreds of new collaborations within and across our regions. We cannot afford to lose the Shanghai Perspective. posted by Ed | Winston-Salem wants to go wireless Winston-Salem wants to be the first community in North Carolina to operate a community-wide wireless network. Read more. posted by Ed | Connecting the poor with microfinance For the past 20 years, microfinance has become an increasingly important tool for connecting the poor with mainstream financial institutions. Here's a good article from Business Week that explores the trend. Read more. If you are interested in learning more about microfinance, check out these sites: Microfinance Gateway Microfinance Network Journal of Microfinance Here's a cautionary tale about microfinance. About twenty years, I set up a microfinance organization in Shreveport, LA. One of our first loans went to an earnest young man who wanted to buy a used pick-up truck so that he could get into the lawn care business. Our manager became entranced with the young man's plans. We approved the loan, and three weeks later -- after missing his second and third check in -- we learned that the young man had driven his truck to Florida. The message: microfinance programs work because of the social networks that promote low default rates and low administrative costs. In microfinance, its not about the money, it's about the networks. It cost me a used pick-up truck to learn that lesson. posted by Ed | The global market for labor While the Congress debates immigration reform, the Seattle Times has published a three-part series that provide some insight into the global market for labor. Export of workers comes with economic, social cost Mexicans' U.S. wages fuel dream Dozens live on émigré's largess posted by Ed | Floating ferris wheels In an effort to ridicule and a proposed a wind farm off Nantucket, an area artist is proposing a floating theme park. Read more. You can visit the web site here. This floating theme park is about as good an idea I've seen since an architect proposed the world's largest lava lamp for Soap Lake. You can learn more about the lava lamp project here. posted by Ed | Investing in Connecticut's clusters Connecticut Governor Rell has announced that the state will invest $900,000 to promote key industry clusters. The state's investment will be focused on aerospace component manufacturing, insurance and financial services, software and information technology, metals manufacturing, and bioscience. Read more. posted by Ed | Developing technology entrepreneurs The Kansas Technology Enterprise Corporation has launched a new initiative to deepen its pool of life science entrepreneurs in Kansas. The program will match eight emerging entrepreneurs with successful entrepreneurs from around the country. Read more. Building a high growth business involves integrating a technology platform with a business opportunity. The challenge is not an easy one to navigate, and successful regions have multiple ways for established entrepreneurs to hook up with emerging entrepreneurs. In regions like Kansas City, the pool of established entrepreneurs in the lie sciences is not deep. This initiative is designed to focus tightly to build an experiences leadership core to move the economy forward. This step is important. The business skills needed to build wealth in today's economy are different than the business skills needed to manage the growth of today's wealth (that was created yesterday). posted by Ed | Tech tranfer in Western Washington State Western Washington is another region that is looking to its universities as engines of economic growth. Here is a good review article on how universities can start to trigger regional growth. Read more. posted by Ed | Philly's business plan competitions Business plan competitions are an excellent way to promote innovation and entrepreneurship networks. In Philadelphia, business plan competitions at the area's universities are producing companies with significant potential for growth. Read more. You can review a listing of business plan competitions to learn more. posted by Ed | Don't do this at home Before you announce a new markeitng slogan, run a Google search. New Jersey officals are backpedalling on their new slogan after somebobdy realized that other states had used it in the past. Read more. This slogan came out of a public contest after the former governor ditched the slogan that a consulting firm came up with: "New Jersey: We'll Win You Over." The state paid $250,000 for that one. posted by Ed | Innovating in government Here is a good commentary from the chief technology officer of the Mississippi Department of Transportation. He points out that innovation is limited business. Government entities can also innovate by improving their coordination and creting new value. The results show up in new services, more efficiency, reduced costs and lower pressure to raise taxes. Read more. posted by Ed | Creating a hub in Evansville Southwest Indiana is moving toward a more regional approach to economic development. Led by the Mayor of Evansville and business leaders, the city is moving to become a hub of a region. Read more. Unlike other cities in Indiana, the Evansville technology park is in an established Downtown area. There, the park will accelerate a redevelopment that is already well underway. posted by Ed | Connecting internationally with colleges and universities Colleges and universities provide important pathways for regional economies to link globally. Here's an example. Babson Colleges is partnering with the University of Ulster in Northern Ireland. The University of Ulster wants to learn from Babson how to build an innovation economy. Note that the partnership between Babson and the University of Ulster is very clearly focused on technology entrepreneurship and agribusiness. This focus demonstrates that the people behind this partnership have had some detailed discussions about their joint opportunities. This partnership is not some vague exchange program. Read more. posted by Ed | Making Pittsburgh sticky Perceptions by young people of Pittsburgh are starting to shift. Like many industrial cities, Pittsburgh has been suffering population loss. The only way to reverse as losses to change the dynamics of the regional economy. In particular, Pittsburgh's business and foundation leadership have embraced the idea of building an innovation economy in southwest Pennsylvania. Equally important, Pittsburgh's civic leadership recognizes that the key to their transforamtion is education. Pittsburgh is closely monitoring what happens to the brainpower that is coming out of its colleges and universities. Read more. posted by Ed | Maine looks to the Irish experience Maine is another state that is looking to Ireland is an example of how to build in the innovation economy. Read more. Last June, Leadership Indiana also explored in Ireland as a model for Indiana. You can download a report from leadership Indiana that includes some most important lessons from the Irish experience. Download from this page. posted by Ed | National Venture Capital Association: Accelerate innovation About a week ago, the National Venture Capital Association called on policymakers to promote innovation by expanding the pool of create of mathematicians and scientists in the US. The venture capital group launched a new initiative called the MAGNET, Maximizing America’s Growth for the Nation’s Entrepreneurs and Technologists. Read more. posted by Ed | Entrepreneur-friendly Gwinnett County In a continuing expansion of its program to encourage communities to become "entrepreneur friendly", Georgia has designated Gwinnett County as an entrepreneur friendly community. The designation comes from the Georgia Department of Economic Development. The designation represents a recognition that a community's leaders are committed to improving the climate for entrepreneurs. Read more. One dimension of the county's efforts include an innovation competition. Read more. posted by Ed | Building new foundations in Albany The region around Albany, New York has been pushing to build a new foundation for regional growth. This infrastructure requires heavy investments by the public sector to encourage private sector to make new investments. While a transition is difficult, civic leaders remain determined. Here's a good overview of what's been happening. Read more. posted by Ed | Wichita looks at composites The Greater Wichita Economic Development Coalition is looking at new foundations for economic growth. Specifically, civic leaders are exploring advanced materials and composites as a new opportunity. Access to raw materials and the existence of sophisticated aerospace manufacturing companies provide the basis for the region's optimism. Read more. posted by Ed | |
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