W I R E D Logansport Cass County Board

Economic Development in Today’s World

Logansport-Cass CountyEconomic Development Foundation

November 16, 2007

Ed MorrisonIndianaWIRED

Purdue Center for Regional Development

1

Rest of the

World

Traded

Businesses

Local Businesses

Purchases and paychecks

Your economy

Another

region

Brain Drain and

Purchases

Sales

3

2

1

2

3

Good Money: Increase the volume of

income into the region with competitive

traded businesses

Neutral Money: Increase the velocity

of money circulating in the region with

local businesses to create more jobs

Bad Money: Reduce income leaks

by reducing outside purchases,

workers who move out, and

students who drop out

Economic Development in an Nutshell

Source: Ed Morrison, David Morganthaler

DependencyDrop Outs

A downward cycle of economic development

accelerates with a deteriorating civic environment

Entrepreneurial

activity

declines

Tax base erodes

Civic amenities and

infrastructure

deteriorate

Higher taxesWell-paid jobs

decline

Quality of life

deteriorates

Skilled labor

supply shrinks

Businesses

shrink or leave,

start-ups do

not arise

Business base

gets weakerDeteriorating Civic

Environment

Skilled people

move out

Brain drain as

young people

drop out and

move out Place develops a

bad reputation

Source: Ed Morrison

A prosperous cycle of economic development

accelerates with civic collaboration

Entrepreneurial

activity

increases

Tax base grows

Civic amenities

and infrastructure

improves

Lower taxes

Well-paid jobs

increase

Quality of life

improves

Skilled labor

supply grows

New firms emerge,

established firms

grow

Build a quality,

connected place

Build brainpower

with 21st century

work skills

Build innovation

and entrepreneur

networks

Collaborative

Civic Environment

Skilled people

move in

Source: Ed Morrison

5

Our grandfather’s economy created a lot of wealth

The S-Curve caught up to our grandfather’s economy

What happened in my

home town

Collapsing costs are undercutting our 1st Curve economies

The Internet exploded

Now we must shift to a path for creating prosperity

Every few hundred years in Western history, there occurs a sharp transformation.

Peter Drucker, The New Realities (1989)

A 2d Curve economy is emerging with wealth created by networks...

2d Curve strategies are based on “linking and leveraging”

First Curve Ideas Second Curve Ideas

Hierarchies Networks

Command and control Link and leverage

Acquire More Align More

Strategic Planning Strategic Doing

Experience Curve Metcalfe Curve

Mass Production Mass Customization

Transactions Relationships









































































































What’s the power of a network?

What’s the value of one fax machine?

What’s the value of ten fax machines?

2d Curve strategies involve linking and leveraging assets in

five “asset networks”:

1.Brainpower2.Innovation3.Quality places4.Branding5.Civic Collaboration

2d Curve Strategies are inter-connectedand collaborative

HealthyBrainpower and

World Class Skills

Entrepreneur and

Innovation Networks

Insightful Stories and Effective

Branding

Infrastructure for Quality,Connected

Places

Civic Collaboration

Innovative Businesses

Healthy, Creative Places

Healthy, CreativePeople

Dynamic Clusters

Second Curve strategieshave a simple proposition...

Regions will prosper on the Second Curve with balanced strategies that...

1. Build world class brainpower

2. Translate brainpower into wealth through innovation and

entrepreneurship networks

3. Create quality, connected places where “hot spots” can develop

4. Create a buzz with a brand

5. Continuously strengthen habits of civic collaboration

This approach integrates different perspectives...

IndianaWIRED is designed to build networksacross a 14 county region

HealthyBrainpower and

World Class Skills

Entrepreneur and

Innovation Networks

Insightful Stories and Effective

Branding

Infrastructure for Quality,Connected

Places

Civic Collaboration

Innovative Businesses

Healthy, Creative Places

Healthy, CreativePeople

Dynamic Clusters

IndianaWIRED

✓ Talent✓ Entrepreneurship✓ Innovation✓ Collaboration

IndianaWIRED

Successful communities will move their thinking from hierarchies to networks

The power of the invisible fence

Civic forums provide the venue to define new opportunities

and practice new civic behaviors

Source: Nead Brand Partners

30

Successful communities will use civic forums to uncover entrepreneurial opportunities

Knowledge Person;

Hub

Boundary Spanner

Knowledge Person;

Hub; Influencer

Peripheral

Person

Information

Broker

Knowledge

Person

Successful communities will understand the power of networks

Peripheral

Boundary Spanner

Hub

They will map their networks

Social Network Mapof the

Southwest Regional Leadership ForumUniversity of Evansville

March 17, 2006

Presented by the Indiana Humaniteis Council

Which region is stronger?

Successful communities

will build civility as a strategic

asset

Successful communities will map their brainpower

Successful communities will develop their innovation networks

Positive

conversations

Negative

conversations

Years

Prosperity

Index

Consequences of different conversations

about economic development

Today

Source: Ed Morrison

Successful communities will guide the stories that create their brand

Creating the new stories: Youngstown and Kalamazoo

Successful communities will embrace metrics

Successful communities will leverage the Inernet

edpro-weblog.net oedc-connect.net

Successful communities will balance open participation with leadership direction

The Civic Space

Source: Ed Morrison

The civic space is fragmented and confusing

Alliance

Mt. Pleasant

AlliancePartnership

County ED

Digital Corridor

Chamber

Chamber

Chamber

County

County

County$

$

$

BusinessInvestors

$

County ED

County ED

WorkforceInvestment

Board

ThinkTec

Low Country

Mfg.

Port

MUSC

Defense Industries

MarineSciences

Other Local and Chamber ED

Activities

Tourism/ CVB

Education Foundation

Environmental Groups

COG

Base Closure

Higher Ed consortium

Low Country Graduate

Center

BenchmarkCollaborative

Charleston

N. Charleston

World Trade Center

State Legislators

The partial civic space for economic development

in Charleston, SC is highly fragmented

The civic space is complex...it appears fragmented if there

are no connections or the connections are

weak

Successful communities will take the “Shanghai perspective”

in all they do

Our View Their View

Find

Launch

FocusLearn

Evaluations

Action Plans

Insights

Initiatives

Develop ideas about what we can do

together

Choose what we will do

Identify and align resources to

specific initiatives

Execute and measure results

Successful communities will learn the discipline of Strategic Doing

Strategy Maps help you organize

strategic issues

Strategic Doing gets you started

Find

Launch

FocusLearn

Evaluations

Action Plans

Insights

Initiatives

Develop ideas about what we can do

together

Choose what we will do

Identify and align resources to

specific initiatives

Execute and measure results

A dynamic regional innovation economy will

have a range of different communities

connected some connected to each other but

all connected to a regional forum

46

Here is a view of the future...





Brainpower

46






Brainpower Innovation

46







Quality, Connected Places

46







BrandingQuality, Connected

Places

46







BrandingQuality, Connected

Places

Collaboration

46


Learn more

IndianaWIREDwww.indiana-wired.net

Purdue Center for Regional [email protected]

http://www.indiana-wired.net


Thank you!

IndianaWIREDwww.indiana-wired.net

