Presentation by Prof. Edward J. Blakely, University of Sydney, Australia at the OECD LEED conference on "Demographic transition and ageing society - Implications for local labour markets" (Lodz, Poland), 21/-22 March 2013.
New Infrastructure Required for Knowledge Based vs Machine Based Community1. Place Creating and Generating Infrastructure2. Human Capital Building Infrastructure3. Tele-mobility Infrastructure4. Social Capital Infrastructure5. New Governance Infrastructure
New Economic Development Four Factor Theory Human Image Creative Firms Institutions Market Access Magnet Infrastructure Deep Resource Pool Knowledge Generation Socio-economic Regional Equity Sustainability Strong Connectivityinternal Global Environmental Venue Quality Distinction
Theory to Implementation Ingredients Recipes Results• Intellectual capital • New ideas • Productivity • Human capital • Entrepreneurs • Prosperity • Financial capital • Networks • Cluster vitality
Global Producer Services Dominate Economies The fastest growing industry clusters were Information and Communications Services, Health and Business Services Return Home
Shifting IndustriesLow cost Knowledge Quantity Quality Stability Speed Capital equipment Flexibility Control Networks
Innovation is a Social Process 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.
Creating Your Demographics Universities attract international students Bounty for job creators Re-examination of roles and hierarchies of centres Role of New populations in creating and sustaining new economic and commercial activities
Innovation is Place Based Most innovative work occurs in face-to-face exchange within teams. Geographic clustering is a powerful mechanism for sharing personal knowledge. The creative heart and soul of the economy will continue to be tied to place. Location is still important.
The Innovation Process It’s not the ingredients but the recipe. What matters most is the ability of entrepreneurs to connect regional assets and leverage them through the innovation process to achieve competitive results.
Financing the New Knowledge Precincts Knowledge Space Live-work Space Work-Communi-space
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 innovation asset.
Regional Leadership Makes the Difference in Innovative Regions Talent Technology Capital Supportive Infrastructure Transportation Housing Advanced telecommunications
New Magnets for Regional Development Human Image Magnet Infrastructure Deep Resource Pool Sustainability
Examples of Convergence New Generation Local Small Firms Blue Steel University
Capacity Resource of CityConnectivity High quality and reliable Frankfurt, Chicago, Denver telecommunications, airports, that are global cities primarily seaports and efficient cross because of their internal and regional connectivity by public external communication and and private transportation air transport systems systemsStrategic Capacity Ability to mobilize public and Atlanta, Boston, Washington private actors for a common DC, Pittsburgh, Brussels with agenda able local leadership in public and private sectorsInnovation/ entrepreneurship Firms organizations lead by San Jose Costa Rica, creative economic and social Berkeley Calif, Los Angeles, entrepreneurs with readily Stockholm are incubators or available venture capital highly innovative talent
Connectivity High quality and reliable Frankfurt, Chicago, Denver telecommunications, airports, that are global cities primarily seaports and efficient cross because of their internal and regional connectivity by external communication and public and private air transport systems transportation systemsStrategic Capacity Ability to mobilize public and Atlanta, Boston, Washington private actors for a common DC, Pittsburgh, Brussels with agenda able local leadership in public and private sectorsInnovation/ entrepreneurship Firms organizations lead by San Jose Costa Rica, creative economic and social Berkeley Calif, Los Angeles, entrepreneurs with readily Stockholm are incubators or available venture capital highly innovative talent
Understanding Brain Pool The region needs to retain 20 - 34 year old population
Re-Inventors Using Resources Generating Wealth Producing Beauty Securing the Future
Hallmarks of a New Economy• Creativity Centered-not product centered• Design based over development based• Human Capacity over power and energy• Place and critical vs incidental• Place creates the economy vs economy designed to fit the economy• Agglomeration of clusters vs clusters as base
Global Competition for Work Regional average pay peaked in 2000 and has declined by 6% between 2000-2003. Increasing number of part time and casual jobs Return Home
High quality both physicallyand socially is a necessarypart of the investmentpackage for infilldevelopments which meanslocal government anddevelopers must bepartners in providingmanagement during andpost project to insuresuccess over the long termof these projects. High quality management is just as important as quality buildings
• RESEARCH FUNDS (Fed, Fdn)• TRAINING AND DEVELOPMENT• PUBLICATIONS AND WEB SITE• FOUNDATION PROGRAM SUPPORT• GROUP ASSISTANCE FEES
Financial Tools $$Economic Impact Analysis with Value Capture Approach An economic feasibility study of the project and its effect on the municipality’s tax base; A detailed list of estimated project costs; A description of the methods of financing all estimated projects costs and a cash flow statement; A map showing existing uses and conditions of property in the district; Proposed changes to any zoning instrument, master plan or other planning instrument; and A list of estimated non‐project costs
Local Economic Development Finance System Not for profit Organizations (NPO)Community Development Corporations (CDC) Community Finance Intermediaries Foundation Investment Groups (PRIs) Investment Funds and Organizations Faith Based Organizations (FBO) Community Development Financial Institutions (CDFI)
Retooling Government:Public-Private EconomicDevelopment Partnership Private Government Sector Resources Investment Effective Laws Economic & Policies Research & Expertise