Trends in Economic Development, TN Basic Economic Development Course 2013
Road Map to theFutureGlenn McCullough, Jr.www.glennmcculloughjr.comCommunity Development FoundationTupelo / Lee County, Mississippi
INTRODUCTIONS• Case Analysis• “Project Volunteer” Groups‣ 10 groups of 4‣ Discuss Ways to Recruit “Project Volunteer”‣ 5 Minute Presentation
CREATING THE FUTURE• Major Trends To A BrighterFuture‣ Talent Attraction– Successful community is aconcentration of successful people.‣ Regional Projects- Increased horizontal capacity.‣ Commercialization/Venture Capital-Technology transferfrom the lab to the marketplace.‣ Business/Community Partnerships- Risk/Reward Mgt.
TALENT ATTRACTIONTALENT ATTRACTION• Knowledge Base Recruitment.• Labor force is one of the topsite selection criteria.• An educated and talentedworkforce is pivotal tosuccessful economicdevelopment.
TALENT ATTRACTIONTALENT ATTRACTION• Use of social media is a popularmedium‣ i.e. Facebook, Twitter, MySpace, and LinkedIn• Some communities have created awebsite devoted to talentattraction/retention.
REGIONAL ALLIANCE• Cooperation betweencities/communities in order tocreate expanded capacity.• Allows regions to pool assetsin order to compete for largerproject(s).
REGIONAL ALLIANCE• PUL Alliance/Wellspring Project‣ Pontotoc, Union, Lee County inMississippi‣ Multi-County Partnership‣ 1000 Acre Mega Site
REGIONAL ALLIANCE• Tennessee Valley Corridor• Tennessee, Kentucky, Alabama, NorthCarolina, and Virginia.• Multi-State Partnership•Oak Ridge National Labs- Oak Ridge, TN•Enterprise Technology Center- Chattanooga, TN•Med Tech Research Park- Tri Cities, TN
REGIONAL ALLIANCE• Research Triangle Partnership• Duke University, University of NorthCarolina, North Carolina StateUniversity• Multi-Community Partnership• Benefits‣ 157 companies employing nearly 39,000 people‣ Home to IBM‣ Over 130 R&D Facilities
COMMERCIALIZATION/VENTURE CAPITAL• Venture Capital‣ Definition- Startup or growth equity capital or loancapital provided by private investors or specializedfinancial institutions.• Trend that requires injection of capitalinto entrepreneurial ventures within thecommunity.• Venture Capital• Angel Investors‣ High net worth individuals‣ Invest in high growth early staged businesses‣ Invests between $25,000-$2,000,000 of there ownmoney‣ Typically invests in sector that they are familiarwith.
COMMERCIALIZATION/VENTURE CAPITAL• Universities• Local universities offer numerousopportunities for investment.• 3 out of the top ten sources of patentsin TN are universities2007 2008 2009 2010 2011 TOTALUT-Battelle,LLC49 29 31 70 56 235VanderbiltUniveristy13 15 16 16 28 88UT- ResearchFoundation7 9 12 14 15 57http://www.uspto.gov/web/offices/ac/ido/oeip/taf/asgstc/tn_ror.htmIssued Patents from Universities in the state of Tennessee
BUSINESS / COMMUNITYPARTNERSHIPS• Shift in Business Operations‣ Decrease Long Term Debt on Balance Sheets‣ Shift from Debt(Notes Payable) to an Expense(RentExpense).• Used as a risk avoidancemeasure by companies.• Requires the Community to havesome risk exposure and interestin the success of a business.
BUSINESS / COMMUNITYPARTNERSHIPS• MTD• Private investors helped purchase new facility.• General Atomics• Private investor built the initial building and hasnow had seven (7) expansions with this company.•
CASE ANALYSIS• Project Volunteer‣ Each group will be assigned one of thefour trends discussed to use indeveloping a recruitment strategy fortheir community.‣ 5 minute presentation after groupdiscussion.