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Exploring Opportunities for a Stronger Regional Economy

Exploring Opportunities for a Stronger 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?. COMMUTING PATTERNS. COMMUTING PATTERNS.

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Exploring Opportunities for a Stronger Regional Economy

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  1. Exploring Opportunities for a Stronger Regional Economy Module Six

  2. 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?

  3. COMMUTING PATTERNS

  4. COMMUTING PATTERNS

  5. Overview of Module Six • Explore basic concepts of competitive advantage • Provide an overview of tools and data available to detect regional competitive advantage • Examine strategies for building stronger regional economies

  6. BASIC CONCEPTS OF COMPETITIVE ADVANTAGE

  7. Competitive Advantage: Four Factors Business shapes the economic value of a region, but places can help shape, nourish and sustain local enterprises and industry. What determines competitive advantage? • Firm Strategy, Structure and Rivalry • Factor Conditions • Related and Supporting Industries • Demand Conditions

  8. How many competitors? What is the threat of new entry? Local customer base? What do people want? What value chains or clusters exist in our region? How does place influence the quantity, quality and cost of input factors?

  9. DETECTING REGIONAL COMPETITIVE ADVANTAGE

  10. What Are the Keys toEconomic Growth? • People • Place • Businesses • Innovation • Clusters or branding

  11. First Key to EconomicGrowth: People • Who are our workers? • Skill level, education, occupation • Work ethic • Who are our residents? • History and culture • Long time residents, newcomers

  12. People: The Residents • Who are the people that live in this region? • How long have they lived here? • How many generations have lived here? • Where did they originate? • Why did they come? • Why do they like living here? • Social conditions • Cultural factors • Economic prospects

  13. People: The Workforce • Who are our workers? • Basic demographics • Experience • Work ethic • Is our workforce adapting to change? • Technology • Recognizing needs

  14. Second Key to Economic Growth: Place • What amenities does our region offer? • Why would people want to live here? • Why would businesses relocate here?

  15. Place: Industrial Indicators • Current leading employers • New and expanding companies and industries • Research facilities, R & D • Available land and buildings • Existing infrastructure • Access to transportation networks • Tax structure

  16. Place: People & Quality of Life Indicators • Population and labor force • Education • Health care • Recreational opportunities • Shopping • Crime, weather, etc.

  17. Third Key to Economic Growth: Business • What is the portfolio of businesses (small, medium, large)? • What does entrepreneurship look like? • What’s the mix of industrial sectors?

  18. Industries & Occupations: Looking at Your Region’s Data • What types of industries/ businesses currently exist? • What are key occupations? • How have these businesses fared, particularly during the recent economic downturn?

  19. Business Assistance in the Region What type of programs, assistance or incentives are offered to: • Support expanding businesses? • Recruit new businesses? • Foster the growth of entrepreneurs or small, locally-owned businesses?

  20. Identifying Entrepreneurs People with underutilized talent Social Entrepreneurs Small businesses Entrepreneurship Unemployed High growth businesses Youth Innovators Self- Employed

  21. Who Is an Innovator/Entrepreneur? Entrepreneur:one whose goal is to create or capitalize on new economic opportunities through innovation.

  22. Assessing Entrepreneurship Capacity Community surveys Existing programs Community readiness Leadership Networks One-on-one interviews with local entrepreneurs Assess ambitions and needs Identify local/regional constraints

  23. Assessing Entrepreneurship Capacity Inventory of Entrepreneurship: BEA-REIS data Census (non-employer statistics) County Business Patterns Panel Study on Entrepreneurial Dynamics Business owners survey Capacity for New Entrepreneurs: Educational attainment Immigration and diversity Financial resources Business resources

  24. Fourth Key to Economic Growth: Innovation "Innovation . . . the successful introduction of a new thing or method . . . Innovation is the embodiment, combination or synthesis of knowledge in original, relevant, valued new products, processes or services.” Luecke and Katz, 2003

  25. How Nurturing is Your Region? Three Phases of Innovation Conception Implementation Marketing Business Process • Idea Generation • Project Planning • Development • Prototype Dev • Testing • Production • Launch Regional Capacity • Education • Technical • Assistance • R&D centers • Universities • Industrial Parks • Capital Availability • Community Support Source: Tawari, Buse and Herstatt, 2007

  26. Your Region’s Capacity for Innovation • Research & Development (R&D) assets • Regional universities or community colleges • Other resources that foster innovation

  27. Fifth Key to Economic Growth:Clusters or Branding • Cluster –making the whole greater than the sum of the parts • Branding–consolidating the essential characteristics of the individual identity into a brand core

  28. Industry Cluster Analysis • Views firms and industries, as interdependent, not isolated • Identifies value chains • Discovers collections of businesses producing similar outputs

  29. What Can Regional Cluster Analysis Tell Us? Where we have . . . • Gaps • Growing industries/clusters • Declining industries/clusters

  30. Data Needs • Industry sector data: number of establishments (over time), number of employees, payroll, earnings • Potential linkages to determine value chains

  31. You Think There Is a Regional Cluster, So Now What? • Map the cluster • Determine if growing or declining • Evaluate regional capacity • Identify potential leakages & opportunities • Determine potential strengthening strategies

  32. MAPPING THE CLUSTER

  33. Value Chain Cluster Example Wine Winemaking equipment Grape stock State government agencies Fertilizers, Pesticides, Herbicides Barrels Bottles Growers/ Vineyards Wineries/ Processing facilities Caps & Corks Grape harvesting equipment Labels Public Relations & Advertising Irrigation technology Educational, Research & Trade organizations Specialized publications California Agricultural Cluster Food Cluster Tourism Cluster Source: California Department of Food and Agriculture

  34. Cluster Illustration: Bubble Chart Source: EMSI.com

  35. Identify Potential Leakages and Business Opportunities For the cluster, determine the: • Current regional capacity • Industry potential • Future growth of industry • Types of skills needed

  36. Identify Potential Leakages and Opportunities for New Businesses Grapes Labels Advertising Research Wine Fertilizer I Zero inputs available regionally Irrigation System Small % of inputs available regionally Large % of inputs available regionally 100% of inputs available regionally

  37. Let’s look at the data for the Region • Yesterday we looked at data that describes the people and the place. • Today we are going to look at the data that describe the workers and the businesses • Workforce Data • Industry Data

  38. The Workforce • Who are the workers in this region? • Are they blue collar or white collar? • What types of occupations have done well lately? • Do you attract the creative class? • What are the skills or education needs for targeted occupations? • What industries hire particular occupations?

  39. The Creative Class • Should be attracted and retained • Develop, design or create new applications, ideas, relationships, systems or products • Considered “footloose” • Attracted to amenities Florida, 2002

  40. Where is the Creative Class in the US? How "creatively-driven" is your economy compared to the national average? Dark-blue is the least creative and dark-red the most creative areas.

  41. INDUSTRY OVERVIEW

  42. Examining Clusters in Your Region

  43. Cluster Choices • Advanced Materials • Agribusiness, Food Processing & Technology • Apparel & Textiles • Arts, Entertainment, Recreation & Visitor Industries • Biomedical/Biotechnical (Life Sciences) • Business & Financial Services • Chemicals & Chemical Based Products • Communications • Computer & Electronic Product Manufacturing • Computers & Software • Construction Materials • Defense & Security • Education & Knowledge Creation • Electrical Equipment, Appliance & Component Manufacturing • Energy • Energy (Fossil & Renewable) • Fabricated Metal Product Manufacturing • Food Products & Services • Forest & Wood Products • Glass & Ceramics • Health • Information • Information Technology & Telecommunications • Machinery Manufacturing • Manufacturing Super Cluster (6 sub-clusters) • Metals & Machining • Mining • Primary Metal Manufacturing • Printing & Publishing • Transportation & Logistics • Transportation Equipment Manufacturing

  44. GOVERNOR’S CLUSTERS • Tourism, Gaming, and Entertainment • Clean Energy • Health and Medical Services • Aerospace and Defense • Mining, Materials, and Manufacturing • Business IT Ecosystems • Logistics • Agriculture • Intangibles and Financial Enterprises • Water Technology

  45. Example: NV Manufacturing Cluster

  46. NV Manufacturing Cluster

  47. NV Manufacturing Cluster

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