Diversifying and Developing Beyond a Tourist Based

Economy

Professor Edward J Blakely University of Sydney

Planning Research Centre

Blue Mountains

Moving from natural resources and tourism to a new economic base

1. Challenges

• Fragile Environment

• Age Structure

• Government Stricture and Structure

• Narrow economic options

• Connectivity

• Asset Assembly

Economic Diversity Agglomeration of reinforcing firms that collaborate as well as compete for global market share

Very diverse industries that have domestic and international exports

Population Muti-culturalism

High levels of immigration and cultural tolerance with regard to race, national origins and related factors

Exceptionally vital and diverse populations that attract jobs and firms

Creative/skilled Workforce

High number of specialized university educated imaginative people in arts, sciences and management disciplines

Workers attractive to global capital and firms

Competitive Ingredients

Opportunities for Transformation 2.Assets Quality of Life Visitor Attraction Special Assets-water, nature Incubator capacity Social Capital Community Character

Livable and Accessible

Neighborhoods and Strong Civic Image

Communities that reflect diverse Lifestyle, economic and social diversity

Diverse Housing Types

Appropriate Density Environmental

stewardship Community

character

Creative, Competitive and Skilled Workforce Workforce

Employers and employees want to come stay and create new opportunities in the community

Youth Stay in community

In migration of skilled people

Creation of new firms

Highly engaged Citizenry

Resident have a strong sense of pride and engage in maintaining the character of the community

Planning a central Issue

Citizen engagement in community development

The New Dimensions for Competitive Cities

Moving From Tourism

Creativity Centered-not product centered Design based over development based Human Capacity over power and energy Natural Resources as sustainable base Place and critical vs incidental Place creates the economy vs economy designed to

fit the economy Agglomeration of clusters vs clusters as base

New Economic Development Theory

Ingredients

• Intellectual capital

• Human capital

• Financial capital

Recipes

• New ideas

• Entrepreneurs

• Networks

Results

• Productivity

• Prosperity

• Cluster vitality

Low cost Knowledge

Quantity Quality

Stability Speed

Capital equipment Flexibility

Control Networks

Shifting Industries

New Approach Based on Community Capital Interactive—doesn’t occur in a straight line. Group creativity—not dependent on a few. Tacit knowledge—depends on “know-how.” Networks—ideas flow more freely. Competition/collaboration—both are needed.

Generating vs Attracting Skill and Directions inventory Knowledge led. Marshalling and combining assets. Location is still important as the economic

venue

Local Assets

Building the Post Tourism Base Lifestyle Dimension. Comparative Advantages Creative Capital Institutional form and base Strategic linkages with other places for

markets or assets Nimble

Quality of Life

Live Work

Framework for the Innovation Process

Regional Leadership Makes the Difference in Innovative Regions Build fundamental assets. Connect entrepreneurs to assets. Promote a culture of innovation. Make quality of life an asset.

Human Capital Techno-Infrastructure Nodes &Catalyst

Regional Leadership Makes the Difference in Innovative Regions Talent Technology Capital Supportive Infrastructure

Transportation

Housing

Advanced telecommunications

Cornerstones of Regional Innovation

The Economic Community

Economy Community

The Innovation Economy Values

Economic Regions Distinctive Quality of Life Vital Centers Choice for Living and Working Speed and Adaptability The Natural Environment

Growing Sectors

Publications Communications Higher Education and Conferences Theatre and Arts Rehabilitation Health Research “think tank” Environment as an industry

Innovation Economy Values Economic Regions

The shift to a new economy, and the changing nature of work, place a premium on regions as important places.

Geography is important to clusters because firms and people gain from being in the same place.

Clusters gain their power through the force of face-to-face creative collaboration.

Innovation Economy Values Distinctive Quality of Life The new economy values quality of life more

than the old economy, because it values people more than the old economy.

Livability and quality concerns are only becoming more important with economic change.

New Realities

1. Technology is a given

2. Globalism is here to stay

3. Knowledge builds wealth

4. There’s no such thing as a smooth ride

5. Competition is relentless

6. Alliances are the way to get things done

7. People are the key to success

8. Place matters

Next Wave May be a Convergence1990s Convergence Next Convergence

InternetRevolution

HARDWARE

SOFTWARE

MEDIA

NANO

BIO

INFO

?Revolution

Examples of Convergence

Preparing for the Next Waves: State and Regional Responses Do leaders understand the opportunity? What must we do to ensure it happens

here? What are the requirements? How can local people and communities

benefit? Can we avoid some of the pitfalls of past

waves?

Capacity Resource Connectivity High quality and reliable

telecommunications, airports, seaports and efficient cross regional connectivity by public and private transportation systems

Frankfurt, Chicago, Denver that are global cities primarily because of their internal and external communication and air transport systems

Strategic Capacity Ability to mobilize public and private actors for a common agenda

Atlanta, Boston, Washington DC, Pittsburgh, Brussels with able local leadership in public and private sectors

Innovation/ entrepreneurship Firms organizations lead by creative economic and social entrepreneurs with readily available venture capital

San Jose Costa Rica, Berkeley Calif, Los Angeles, Stockholm are incubators or highly innovative talent

New Infrastructure Required for Knowledge Based vs Machine Based Community1. Place Creating and Generating

Infrastructure

2. Human Capital Building Infrastructure

3. Tele-mobility Infrastructure

4. Social Capital Infrastructure

5. New Governance Infrastructure

Understanding Brain Pool

The region needs to retain 20 - 34 year old population

Chart- …..Typology of SLAs in Sydney GMR

Strong and Weak Performing SLAs

Sydney Remainder

0.96

0.981

1.021.04

1.06

1.081.1

1.12

0.034 0.044 0.054 0.064 0.074

Specialisation index, 1991

Hunter's Hill

South Sydney

Penrith

Sydney Inner

Cessnock

Lane Cove

Black Town SE

Taxable income locationquotient (1991 to 2001) Paramatta

Fair FieldCamden

Baulkham Hills

Mosman

FIGURE: HOW INDUSTRY AGGLOMERATION AFFECTS SLA TAXABLE INCOME AND SLA POPULATION

•Reduces space for residential services in SLA; and or•Reduces attractiveness of SLA as a place of residence

•Increases number of industries in SLA; and / or•More large employer firms in SLA

•May increase number of people living in SLA closer to jobs; and/ or•May increase commuting into SLA; •Higher out-migration from SLA

•Increases number of jobs in SLA; and or•Increases average income earned and wealth level in SLA

Hypothesised net impact on SLA

taxable incomePOSITIVE

Hypothesised net impact on resident

populationNEGATIVE

Typology of SLAs : Strongly and Weakly Performing SLAs

LOW INCOME GROWTH

HIGH INCOME GROWTH

HIGH POPULATION GROWTH TYPE ‘B’ SLAs

Modest performing ‘transitional’ SLAs

TYPE ‘A’ SLAsGlobally exposed strongly performing SLAs

LOW POPULATION GROWTH TYPE ‘D’ SLAsVery weak SLAs in ‘Economic free fall’

TYPE C SLAsWeakly performing static SLAs

cont - Typology of SLAs : Strongly and Weakly Performing SLAs

LOW INCOME GROWTH

Drivers of growth

SLAs of this type

HIGH POPULATION GROWTH

TYPE ‘B’ SLAsModest performing ‘transitional SLAs

ConstructionLogistics

1 Port Stephens, 2 Burwood, 3 Ryde, 4 Lake Macquarie, 5 Strathfield, 6 Newcastle -

Remainder7 Blue Mountains, 8 Penrith9 Parramatta,10 Campbelltown

cont - Typology of SLAs : Strongly and Weakly Performing SLAs

HIGH INCOME GROWTH

Drivers of growth

SLAs of this type

LOW POPULATION GROWTH

TYPE ‘C’ SLAsWeakly performing static SLAs

Health & Community ServicesTourismBusiness services

1 Blacktown – North

2 Liverpool, 3 Wollondilly,4 Sutherland

Shire- West,5 Hawkesbury, 6 Wyong,7 Camden, 8 Pittwater, 9 Baulkham Hills,10 Gosford, 11 Cessnock, 12 Sutherland

Shire – East

cont - Typology of SLAs : Strongly and Weakly Performing SLAs

LOW INCOME GROWTH

Drivers of growth

SLAs of this type

LOW POPULATION GROWTH

TYPE ‘D’ SLAsVery weak SLAs in ‘Economic free fall’

ManufacturingTransportRetail

1 Wollongong 2 Blacktown South East3 Blacktown 4 South West5 Holroyd, 6 Rockdale7 Bankstown, 8 Botany Bay,9 Fairfield,10 Canterbury, 11 Auburn, 12 Hurstville,13 Kogarah, 14 Warringah, 15 Maitland, 16 Marrickville17 Ashfield

Blue Mountains Opportunities Printing and Publishing Holistic Health Professional Education Visual and Performing Arts Transit Hub Creative Incubator Software Development (health and

education) Natural Resource Management

Market Demographics

•Re-use of existing space for the New Economy

•Existing Strip Shopping areas

•Re-examination of roles and hierarchies of centres

•Role of New populations in creating and sustaining new economic and commercial activities

Building On What We Have

Existing building framework—not more building—

Housing for the future

Mobilecommunity---Community owned and operated wireless networks

Software Development

Knowledge Space

Live-work Space

Work-Communi-space

Professional Education

Holistic Health

Social Institution Building as critical development component

Health Living Centres Non Western Health

Schools Adult Continuing Health

Learning Health Publishing and

Libraries

Small Publishing and Writer Centre

Creative Industry Incubator

Visual and performing Arts Retreat

Natural Resource Management

New Dry Port Transit Hub with Flex-space

Blue Mountain Direction

Human and Natural Capacity

Magnet Infrastructure

Regional Alliances

Distinctive Features

Market Positioning

Models

Maps

New Urban Form

Bikeways from mean streets

New Institutional Infrastructure --- Government Joint Powers & Public/Private Venture Authorities Local Governments forming

regional infrastructure financing authorities to design & develop or redevelop digitalcom and new employment infrastructures

Public-Private Venture Corporations to provide both soft and hard infrastructure

Diversity and Sustainability

University as Collaborative Builder

University to University relations

University to key constituents as verifier

University to Civic Leaders as unbiased actor

University to government as honest broker

It takes many different professionals

Process of the Plan

Focus Externally *Who and What is the Competition?

Good Healthy Communities

Pedestrian-oriented, mixed use design

Frequent bus service

Preservation of mature shade trees

Renewable energy

Recycled building materials

Local Government Leadership