Know Your Region:Regional Economic Development Strategies

for the 21st Century

Webinar | April 29, 2010

http://www.knowyourregion.org

Source: Know Your Region

KYR: Survey Findings

• Clusters not widely embraced – need practical guidance

• Regionalism suffers from lack of concrete tools

• Training has an impact

Source: Know Your Region

KYR: Curriculum Modules

1. Collaborative RED* framework2. Leading the planning effort3. Detecting regional advantage4. Formulate strategies5. Linking WorkDev and EconDev6. Executing your plan

* RED is regional economic developmenthttp://www.knowyourregion.org/training-content

KYR: Webinar Series

1. Regional ED strategies for the 21st Century

2. Taking your CEDS to the next level

3. Pursuing regional innovation and competitiveness

http://www.knowyourregion.org/training-content

KYR: Regional Strategies

• What trends are shaping how we should approach RED?

• How can we move effectively from planning to doing RED?

• What is the role of Economic Development Districts?

Shaping RED: Macro Trends

Shift toward services “Free agent” workforce Demographic changes “The Great Reset”

Shift toward services

Source: Bureau of Labor Statistics, TIP Strategies.

Between May 1999 and May 2009, the U.S. private sector added 6.6 million service jobs and lost 5.4 million production jobs. Services now make up 83% of all private sector jobs.

Source: Texas Workforce Commission, CAPCOG. Data is for March of each year. Not seasonally adjusted.

Technology Transition

“Free agent” workforce

23%

8%

11%

19%

5%

10%

15%

20%

25%

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Nonfarm self -employment

Manufacturing

Share of Total U.S. Employment

Source: Bureau of Economic Analysis. “Free agent” is used by Daniel Pink in his book Free Agent Nation.

Demographic changes

Source: U.S. Census Bureau, TIP Strategies. Figure found in Wired65 report. Figure shows working age population between age 20 and 64. * Kauffman Foundation

Aging Workforce

In 2017, for the first time, there will be more people age 65+ in the U.S. than kids age 5 and under.*

Retiring Boomers

Has the talent shortage been postponed? What changes will result from Boomers staying in the workforce longer?

Growth driving growth 2001-2007

Source: U.S. Census Bureau, ESRI.

Construction makes up 5%-6% of total nonfarm employment in U.S. but accounted for 14% of all new jobs created during 2001-2007.

“The Great Reset” 2008-2009(?)

Source: Brookings, MetroMonitor. “The Great Reset” is a phrase used by Richard Florida to describe the latest U.S. recession.

U.S. nonfarm employment lost 8.4 million jobs between December 2007 and December 2009.

We know all this already…economies are regional anyway.

47,096 population growth (12th) 7.1% Real GDP growth (29th) 29,357 job growth (15th)

Source: Bureau of Economic Analysis. Data are annual averages for 2001-2008. Rank among all U.S. metro areas shown in parentheses.

Austin: A Tale of Two Regions

10.3% avg earn growth (360th) 103% US PCI to 93% US PCI 2.3% PCI growth (355th)

Source: Bureau of Economic Analysis. Data are annual averages for 2001-2008. Rank among all U.S. metro areas shown in parentheses. PCI is per capita income.

Austin: A Tale of Two Regions

Austin: The Human Capital?Population Age 25+ Asian Black Hispanic WhiteNo H.S. Diploma or GED 8% 13% 36% 5%H.S. Diploma or GED 12% 28% 25% 17%Some college, no degree 9% 28% 18% 24%Associate's degree 5% 8% 5% 8%Bachelor's degree 32% 16% 12% 30%Graduate degree 34% 7% 5% 17%

Postsecondary degree 71% 31% 21% 54%

Hispanics have accounted for about 50 percent of Austin-Round Rock MSA’s population growth during the last ten years.

Source: U.S. Census Bureau, CAPCOG.

What is economic development?How do we measure success?

Why should it be regional?

RED/EDD Challenges

• Slow transition to ED 2.0 in a fast changing world

• Buy-in on regional approach with no clear carrot or stick

• Messy metrics

Measures: Jobs/Investment

• Absolutely, but incomplete• Innovation is a long-term bet

without immediate ROI• Job creation is not the goal for

most entrepreneurs• Jobs/investment alone say

little about prosperity

http://pecanstreetproject.org

Source: New York Times

EDD Regional Strategies

• Partnerships—bridging federal, state, and local ED efforts

• Information—becoming an indispensable resource

• Capacity—building regional innovation clusters

Partnerships

• EDDs are uniquely suited to lead silo-breaking initiatives like sustainable communities, regional innovation clusters

• EDDs must encourage change in traditional ED models, but stay relevant by adding value

http://www.maine.gov/spo/specialprojects/qualityofplace/documents/MobilizeMaine%204%2010%2009_one%20page%20handout.pdf

http://www.paldd.org

Staying Relevant: ED1.0 to ED2.0

• Disseminating prospect leads from state to communities

• Providing assistance to EDCs with responses to RFIs

• Identifying the “new” primary export industries

• Making the connection to education/workforce

Information

• Pool money to achieve cost savings on data products

• Take advantage of free data tools available online

• Consider becoming a Census Information Center or State Data Center affiliate

http://www.capcog.org/information-clearinghouse/geomap

http://lehdmap3.did.census.gov

Rome, GA (NWGRC)

Employers in Rome draw 77% of their workers from outside Rome city limits and 45% from outside Floyd County.

http://www.zoomprospector.com

Cumberland County, KY (LCADD)

Capacity

• Identify your region’s unique competitive advantages

• Target innovation clusters and high-impact companies

• Do pilot projects

Asset Mapping

http://www.compete.org

http://www.isc.hbs.edu

South Central OK (ASCOG)

http://www.youreconomy.org

http://www.growfl.com

Communication

http://www.floridasgreatnorthwest.com/DataAssetMaps/AssetMaps.html

Why not move the CEDS online?

http://www.tccompass.org

CEDS: Presentation Matters

http://www.jointventure.org/publicatons/siliconvalleyindex.htmlhttp://www.longislandindex.org

“Good information, presented in a neutral manner, can move policy.”

CEDS Examples

Which would you be more likely to read?

Summary

• ED is becoming more regional but old habits die hard

• Definitions, success measures must adapt and align

• EDDs have an opportunity to provide leadership