High Performance Community Strategies building competitive & livable communities Delore Zimmerman Today A brief history of economic development The High Performance Community strategy approach Building communities of aspiration Buildings of the Present Will Have Vanquished to Give Place to Stupendous Structures ___________ HEIGHT OF SIXTY STORIES POSSIBLE Architectural Limitations of This Century Will No Longer Be Recognized As Obstacles CEMETERIES WILL BE CONVERTED INTO PARKS Prospecting Industrial Parks Financing and Incentives Long-Range Planning Economic development is all about incentives. Everything else is rhetoric. Growth-oriented small business Competitive advantage Industry targets, networks, clusters Equity Investment Strategic planning The golden age of entrepreneurship meets the new geography of the Internet. Innovation Workforce development Networking - Clustering Globalization Wealth creation Innovation makes the world go around. The global talent wars hit full stride. lifestyle settlements mobility food Social health Economy Environment production technology consumption & waste energy Network-Centric Global economy work flows to nodes of technology and talent in the global economy trade flows between valueadded regional and global enterprise networks that are equipped with infrastructure financial and human capital flows to where it’s wanted and stays where it’s treated well High-Performance Communities • Places where the private, public and civic sectors are enabled to be fast, flexible, focused, customized, connected, networked and global NETWORKS fast focused customized flexible connected networked global A High Performance Community or Region 1. Is connected via telecom & transport & transit 2. Nourishes entrepreneurs 3. Grows from within focusing on higher-skill, highervalue opportunities 4. Focuses on industry sectors/clusters that build on local competitive advantages 5. Networks vigorously with business and government from outside the region 6. Has a global outlook 7. Mobilizes local leadership & collaborates regionally HPC Operating Principles A community like an individual has a work to do. Communities don’t act, the parts do. Success comes from seizing momentum and aligning actions with trends that work in your favor Prosperity is increasingly determined by the power of connections elsewhere A compelling story commits people to the possibilities Invest in Infrastructure 1. Broadband telecom infrastructure 2. Specialized facilities 3. Transportation facilitating mobility of people and products 4. Water and energy Infrastructure is a Driver of Economic Progress Public Service Interoperability Transactional Innovation Water Connectivity -> telecom Export processing zones Mobility -> transit, transport, shipping Logistics centers Specialized facilities -> R&D labs, tech parks, skills training centers Waste treatment Roads Open space Distribution -> water and energy Multi-modal shipping Advanced services for connectivity, energy, environmental Facilities ………………………………………. Infrasystems Build and cultivate the skills and energies of people, both as entrepreneurs and workers. The growth of a region now depends on the decisions of individual entrepreneurs, investors, creative workers to locate there. To them the world is a vast smorgasbord in which various locales compete for their affections and attention. Quality of life and lifestyle factors can attract new people to an area - but opportunity is the prime ingredient. Joel Kotkin Entrepreneur Community Business Interests & Relationships Business Opportunities & Access Geographical Preferences Quality of Life Preferences Entrepreneurial Capabilities & Resources Quality of Life Resources & Infrastructure Entrepreneur Development Approaches • Fertile soil policy Business environment that facilitates any kind of growth • Small business development Management, technical and financial support Incubation support and facilities Focus on one or more growth-oriented businesses • Business ecosystem Build specialized services, resources and infrastructure for target industry Greenwood, Mississippi Viking Conquers the Kitchen Landscape • Fred & Margaret Carl and small group of friends Built a global brand – superior product quality processes Aligned strategy with cooking and food trends • Boutique downtown --> part of Fred Carl’s dream Restoration of historic buildings Focus on southern hospitality and cuisine Use history & tradition Cotton Capital of the World • Community, state, federal leaders support WE Downshifting Boomers Start Companies % of age group that started company in 2005 35 30 25 20 15 10 5 0 20-34 35-44 45-54 Source: Kauffman Index of Entrepreneurial Activity 55-64 65+ Networks Reinvention of: business models skills workflow planning procurement In a network economy competitiveness and prosperity are increasingly determined by the power of your connections. “Networks are possibility factories.” Kevin Kelly, WIRED FLOWS Metro Economies People Information Trade Technology Capital Rural: Remote & Urbanized Person to Person• Firm to Firm • Network to Network • Commu nity to Commu nity •Flows The Dynamics Rural-Urban Linkages • in theofNetwork Economy Powering Up Networks in Your Region High Performance Action Summits SM “Temporary economic agglomerations” Accelerate your development strategy by showcasing your best technology-based capabilities Engage regional universities and colleges Build connections with outside collaborators, funders and investors in business and government Engage key players in defining a strategy and action plan for building promising trade and technology opportunities Focus on industry clusters that build on local competitive advantages What our community makes and does Current Skills Mix Current Industry Mix Emerging Know-How Emerging Technology Future Forms Future Forms Of Work Of Enterprise What our community could make & do Mobilize the “triple helix” Education Government Business R&D Innovation Education Skills Training Workforce Development Red River Valley – North Dakota & Minnesota • Hands on, purpose-driven leadership • Science & tech “triple helix” working – University, Industry, government – Specialized research, training, facilities • Human capital (Brain Belt) – Quality people – Education is highly valued – Higher ed, k-12 engaged • Dynamic regional business sector – Outward oriented and globally savvy – Demonstration effect of Great Plains -> Microsoft A Short History of Technology: Red River Valley Corridor Food processing Biotech Services Crop & Livestock Science Crop Farming & Animal Husbandry Genomics Digital imaging Agri-business Management & Finance Business solutions software/systems Nanotechnology Machinery & Equipment Electronics Polymers & coatings Wireless technology 1870’s 1950’s 2000 Rural HPCs Requires Extra Steps Establish connections with metro markets/capabilities Build on linkages to traditional rural industries, e.g. M&E Repurpose assets and resources, e.g. agri-energy Create collaborative networks of companies, colleges, universities & government Focus support on outward-oriented, tech-savvy firms FAMILY B A L A N C E High Performance Communities of Aspiration ……………… Resolve Resourcefulness Relationships Terroir Seize opportunity now Not houses finely roofed Nor the stones of walls well built Nor canals nor dockyards make the city But men able to use their opportunity Alcaeus 600 BC Greece “Good things come to those who wait, but only the things left over by those who hustle.” Abraham Lincoln Become a possibility factory! High Throughput – Combinatorial “If you want to have good ideas you must have many ideas.” Linus Pauling Quantum chemist & biochemist Nobel Prize Winner (2 times) “The difficulty lies, not in the new ideas, but in escaping from the old ones.” John Maynard Keynes, The General Theory (1936) Find Opportunities at the Crossroads of Industries For Example Information Technology Precision Agriculture • Instrumentation • Data Services • Application Services Machinery & Equipment Electronics Agriculture Production Mobilize strategic leadership coalitions on multiple fronts Emulate The Success of Others “ The future is already here. It’s just not equally distributed yet.” William Gibson author, coined term cyberspace Make people a priority • People are sophisticated, decision-makers about place today – – – – – – Quality jobs Amenities & aesthetics Recreation and leisure Affordability Safety Quality schools and health care Tell a compelling story that commits people to the possibilities “I’ll believe it when I see it. I’ll see it when I believe it.” www.newgeography.com