Exploring Strategies for Enhancing the Regional Economy
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1 Exploring Strategies for Enhancing the Regional Economy
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 Overview 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
4 The Leaky Bucket The Regional Economy Goods or Services Purchased outside of the Region
5 Plugging the Leaks Regional Supplier Regional Demand Outside Supplier
6 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
7 Identify Potential Leakages and Opportunities for New Businesses Grapes Advertising Wine Research Zero inputs available regionally Small % of inputs available regionally Large % of inputs available regionally 100% of inputs available regionally
8 Looking at Regional Leakages in BioMedical - Biotech
9 Looking at Regional Leakages in IT Telecomm
10 Examining Your Region s Cluster Identify where: Leakages are occurring The regional may already have capacity to respond Potential growth opportunities exist
11 C.A.R.E for the Cluster Attraction Retention Creation Expansion Cluster Strengthening Source: Barta, et al (2010) CARE Model
12 Creation Growing new enterprises locally to fill the gaps of goods and services purchased from outside the region
13 Creation: Sample Strategies Regional training Business coaching Entrepreneur networking Business incubators
14 Creation: Providing Regional Support Access to Capital Intellectual Stimulation Education Community Support New Business & Entrepreneur Development Information Connections & Networks Services & Amenities Infrastructure Source: Based on Reynolds, et. al., Small Business Economics 23: , 2004.
15 Creation: Our Region What has the region done to support or encourage new business or entrepreneur development in the past? What are some potential strategies to consider for the future?
16 Attraction Attraction seeks to reduce leakages by recruiting into the region firms that can supply missing goods or services that support the cluster.
17 Attraction: Targeting Effectively Past: Blindly attracting industry Now: Targeting cluster related businesses that are likely to be successful in the region
18 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
19 Attraction: Community Business Matching Model Community Assets Goals The Ideal Compatibility Desirability Needs Profile Business Source: Cox et al., 2009
20 Attraction: Our Region Past successes Past challenges Potential attraction strategies related to regional clusters
21 Retention & Expansion Supporting existing businesses within a cluster so that they can survive and thrive is another avenue for stopping or preventing cluster leakages.
22 Retention & Expansion Strategies Business Retention and Expansion Study Business Network Development
23 Retention & Expansion Study Lets businesses know they are valued Helps solve regional business issues Connects businesses to regional resources Creates connections among regional organizations Fosters job retention & growth
24 Cluster Retention & Expansion Study Planning Phase Action Phase Recruit volunteer visitors Visit local businesses Follow-up Respond to concerns Plan for future
25 Business Network Development A formal or informal collaboration among firms that are part of a cluster for the purpose of creating a net benefit for all involved
26 Retention & Expansion: Our Region 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?
27 Connecting Competitive Advantage to C.A.R.E. Competitive Advantage C.A.R.E. Strategies Demand Conditions Creation Firm Strategy, Structure, Rivalry Attraction Factor Conditions Retention Related & Supporting Industries Expansion
28 Exploring Competitive Advantage Demand Conditions Factor Conditions Firm Strategy, Structure, and Rivalry Competitive Advantage Elements Related and Supporting Industry Based on Porter s Diamond Theory Porter, M. (1990)
29 Demand Conditions Firm Strategy, Structure, and Rivalry Competitive Advantage Elements Factor Conditions Related and Supporting Industry Demand Conditions What conditions influence demand for goods or services produced in the region?
30 Demand Conditions Firm Strategy, Structure, and Rivalry Competitive Advantage Elements Factor Conditions Related and Supporting Industry Firm Strategy, Rivalry, Composition Region s portfolio of businesses Entrepreneurship activity and support Mix of industries
31 Factor Conditions: Workforce Who are the region s workers? Skilled/unskilled Labor force participation rate Unemployment rate Occupation mix Experience/age
32 Demand Conditions Factor Conditions Related and Firm Strategy, Structure, and Rivalry Competitive Advantage Elements Related and Supporting Industry Supporting Industry Do industries buy and sell from each other regionally? Do any strong value chains exist in the region?
33 What s Next? Consider other potential strategies that could be successful in the region Further examine the regional data
34 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?
35 Looking Ahead 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
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