exploring strategies for enhancing the regional economy
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Exploring Strategies for Enhancing the Regional Economy. Module Six. Reflecting on the Previous Session. What did you find most useful or valuable? What progress have you made since then? Any questions or clarification needed?. Overview of Module Six. - PowerPoint PPT PresentationTRANSCRIPT
Exploring Strategies for Enhancing the Regional Economy
Module Six
Reflecting on the Previous Session
• What did you find most useful or valuable?• What progress have you made since then?• Any questions or clarification needed?
Overview of Module Six
• Identify the economic leaks in the region• Explore basic avenues for strengthening
clusters• Provide an overview of some specific
strategies within each avenue• Select some potential directions for the
region to explore
Import Substitution
Substituting externally produced goods and
services with those that are locally produced,
putting regional money to work in the region.
The Leaky Bucket
The Regional Economy
Purchases of Goods or Services out of the Region
Plugging the Leaks
Regional Demand
Regional Supplier
Outside Supplier
Strengthening Clusters Through Import Substitution
Identify:• Industries that support the cluster• Goods and services being purchased
from outside the region• Capacity for supplying these inputs
regionally• Resources needed to help promote the
creation, expansion, retention or attraction of businesses to supply inputs
Labels
Identify Potential Leakages and Opportunities for New Businesses
Wine
Zero inputs available regionally Small % of inputs available regionallyLarge % of inputs available regionally100% of inputs available regionally
Grapes
Research
IIrrigation
System
Fertilizer
Advertising
Example: Strengthening the Hospital Sector
Growing Your Region’s Cluster
Identify:• Industries composing the cluster• Imports (Leakages)• Regional capacity• Potential growth opportunities• Appropriate response strategies
C.A.R.E for the Cluster
ClusterStrengthening
Creation
Attraction Retention
Expansion
Source: Barta, et al (2010) CARE Model
Creation
Growing new enterprises locally to fill the gaps of goods and services purchased from outside the region
Creation: Providing Regional Support
Community Support Entrepreneurs
Intellectual Stimulation
Access to Capital
Education
Information
Connections & Networks Infrastructure
Services & Amenities
Source: Based on Reynolds, et. al., Small Business Economics 23: 263–284, 2004.
Creation: Sample Strategies
• Regional training
• Business coaching
• Youth entrepreneurship
• Business incubators
Attraction
Attraction seeks to reduce leakages by recruiting into the region firms that can supply missing goods or services that support the cluster.
Attraction: Targeting Effectively
• Past: Blindly attracting industry
• Now: Targeting businesses likely to be successful in the region
Attraction: Location Models
• Analyzes the probability of an industry moving to the region
• Evaluates the region’s ability to respond to industry needs
• Selects industries with the highest likelihood of success
Attraction:Community Business Matching Model
Compatibility Desirability
Community
Business
Assets
Needs Profile
Goals
The Ideal
Source: Cox et al., 2009
Attraction: Targeted Regional Economic Development (TRED)
TRED is:• An economic development strategy• A planning process• Content including data analysis and
interpretation
Source: Goetz, Deller, Harris (2009)
Attraction: Our Region
• Past successes
• Past challenges
• Potential attraction strategies related to regional clusters
Retention & Expansion
Supporting existing businesses within a cluster so that they can survive and thrive is another avenue for stopping or preventing cluster leakages.
Retention & Expansion: Benefits
• Lets businesses know they are valued• Helps solve local business issues• Improves community awareness• Connects businesses to community resources• Creates connections between community
organizations• Fosters job retention & growth
Retention & Expansion Process
• Planning Phase• Action Phase
Recruit volunteer visitors Visit local businesses
• Follow-up Respond to concerns Plan for future
Retention & Expansion:
• What has the region done to support:– Retention of cluster-related firms – Expansion of cluster-related firms
• What are some potential future strategies to support cluster retention and expansion?
Business Network Development
A formal or informal collaboration amongfirms that are part of a value chain
for the purpose of creating a net benefit for all involved
Network Examples
Milwaukee Seven Water Council:Transform the workforce system and create high performance talent pipelines within the region
The Entrepreneurs Network:Promote job growth and business creation
Meta-Business Formation
Strategies for generating revenue that support all local business
Examples:• Local coupons• Local credit/debit cards• Local currency • Business directories• Local stock exchange• Businesses that support other businesses
What’s Next?
• Consider other potential strategies that could be successful in the region
• Further examine the regional data
Final Reflections
What topics did you find most helpful?
What did you find confusing?
What other data do you need?
Other items you want to mention?
Looking Ahead: Module Seven
We will: Examine regional assets Explore the region’s seven
capitals Take an honest look at potential
barriers Take steps to link assets to
your potential regional goals