Hidden assets handout
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Hidden assets handout Hidden assets handout Document Transcript

  • Hidden Assets for Economic &Community Development Date, Location Presenter’s Name, Title •  Learn about our community’s “hidden” economic and community development assets •  Understand how other communities are building asset-based economic growth strategies •  Consider how our community can better leverage our own assets •  Rich soils •  Waterways: Lake Michigan and the Ohio River •  Crossroads of America What were our community’s greatest economic assets 100 years ago?Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 1
  • Hidden Assets for Economic &Community Development •  Talent & Brainpower •  Innovation & Entrepreneurship •  New Narratives •  Quality, Connected Places •  New Ways to Collaborate K-12 New Businesses Workforce Training Small Businesses Higher Education Growing Businesses Capacity for Innovation Partnerships  Strategic Alliances  New Models Infrastructure Storytellers Broadband Social Media Incubators Heritage Social Capital Folklore 1.  The Talent of Our People 2.  Our Capacity for Innovation 3.  Our Fastest Growing Companies 4.  Our Most Vibrant Industries 5.  Our Skills for Telling New Stories 6.  Our Ability to Move Information & Ideas 7.  Our Capacity to Invest in New CollaborationsPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 2
  • Hidden Assets for Economic &Community Development •  An “Occupational Cluster” is a group of related occupations •  The Purdue Center for Regional Development has defined 21 basic Occupational Clusters •  Many communities have a higher concentration than average of one or more clusters •  Occupational Clusters can be part of an economic development strategy Bring together Information Technology professionals to foster new ideas for high tech start-ups LQ = Location Quotient. The US LQ for each cluster is set at 1.00. Anything above that means there is a greater concentration than the overall US. For example, an LQ of 1.80 means that a cluster had 80% more jobs than the US.Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 3
  • Hidden Assets for Economic &Community Development •  Did a look at Occupational Clusters give us any new insights? •  What explanation might there be for our occupational strengths? •  Do we need to find out more about our Occupational Cluster assets? •  Capacity for Innovation can provide valuable insights •  Innovation is defined as the new products, services, processes, and business models that get translated into business growth •  The Purdue Center for Regional Development has created an Innovation Index •  The index is a simple way to look at lots of different factors related to innovation.Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 4
  • Hidden Assets for Economic &Community Development Think of “economic churn” as an asset and launch a neighborhood-based entrepreneurship program BoonePurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 5
  • Hidden Assets for Economic &Community Development •  Did a look at Innovation Index give us any new insights? •  Which of the index factors that showed good capacity did you find most interesting? •  Do we need to find out more about our innovation assets? •  Most economic growth comes from 2nd-Stage firms –  Privately-held firms –  10-99 employees –  $750K-10 million in annual revenue –  Dealing with growth issues instead of survival issues –  Intend and capacity to keep growing •  Help in re-articulating and realigning with their Core Business Strategy •  Market Intelligence to answer important questions •  Leadership & management team development to makes sure people are slotted rightPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 6
  • Hidden Assets for Economic &Community Development Littleton, Colorado •  Littleton, CO developed and began to execute the strategy in 1989 •  Focused on “wealth” creation not “job” creation •  Eliminated all incentives and tax breaks for business recruitment •  Since 1989, more than doubled the number of jobs from 15,000 to 35,000 •  Sales tax revenue tripled from $6.8 million to $19.6 million Establishments Jobs Size of Firm Indy MSA Boone Indy MSA Boone Self-Employed 35.6 37.9 6.2 9 Stage 1 (1-9) 55.4 55.1 28.5 39.3 Stage 2 (10-99) 8.4 6.6 35.0 34.5 Stage 3 (100-499) 0.5 0.4 15.3 17.3 Stage 4 (500+) 0.06 0.0 15.1 0.0 •  What insights do we gain by considering the role of second-stage in our local economy? •  What do we currently offer our second-stage firms? –  Companies to Watch –  Participation in the Indiana Business Growth NetworkPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 7
  • Hidden Assets for Economic &Community Development Industry Clusters can be nurtured and supported –  Articulated –  Activated –  Accelerated –  Accessing Appalachian Ohio’s Salsa Cluster •  20-plus boutique salsa businesses in the region •  $700,000 annual sales among new businesses •  Trains over 200 existing and emerging entrepreneurs annually •  350 gallons and 445 lbs of fresh and preserved foods delivered to the region’s food pantries each year Cluster Boone Indy MSA Electrical Equip, Appliance & Component Mfg 3.92 .95 Biomedical/Biotechnical (Life Sciences) 2.70 2.33 Glass & Ceramics 2.47 1.44 Agribusiness, Food Processing & Technology 2.00 .55 Machinery Mfg 1.92 1.27 Transportation Equipment Mfg 1.54 1.42 Advanced Materials 1.31 1.20 Apparel & Textiles 1.23 1.10 Chemicals & Chemical Based Products 1.17 1.17 Education & Knowledge Creation 1.13 1.02 Number of EstablishmentsPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 8
  • Hidden Assets for Economic &Community Development Products that generate, distribute and use electrical power. Electric Lighting Equipment Manufacturing establishments produce electric lamp bulbs, lighting fixtures, and parts. Household Appliance Manufacturing establishments make both small and major electrical appliances and parts. Electrical Equipment Manufacturing establishments make goods, such as electric motors, generators, transformers, and switchgear apparatus. 0ther Electrical Equipment and Component Manufacturing establishments make devices for storing electrical power (e.g., batteries), for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches). •  Did a look at Industry Clusters give us any new insights? •  What explanation might there be for our industry strengths? •  Do we need to find out more about our Industry Cluster assets? •  Every community has a “narrative” or a story that is being created. •  We need to pay attention to the story we are telling ourselves and the one those outside our community are telling about us. •  We have the power to shape these narratives.Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 9
  • Hidden Assets for Economic &Community Development L.A.’s Sunset Strip •  The Sunset Strip in LA was in decline •  The ownership of the famed “Roxy” nightclub began using Twitter •  Others followed, a new story emerged, and the neighborhood has been transformed Just finished first night of full ensemble in Lebanon, Indiana. A week and a half of all days left. First show June 21 in Indianapolis Lebanon, Indiana probably needs this sign... Im at Starbucks in Lebanon…YEAH! Aiden chilling in a tree in Lebanon, Indiana rest stop so smiley Looking at a house in Zionsville today... hope its as solid as my realtor states!! Congrats 2 the hard working constituents of District1. Zionsville Town Council passed a resolution 2 remove the 865/Cooper Rd interchange!Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 10
  • Hidden Assets for Economic &Community Development Traditional Emerging •  Roads & Interstates •  Sidewalks •  Rail •  Trails •  Water •  Bike Lanes •  Electricity •  Civic Spaces •  Water & Sewer •  Third Places •  Broadband •  WiFi •  Broadband availability contributes positively to population growth. •  The more broadband providers in a given market the greater the population and employment growth. •  Businesses with high-speed Internet connections report having median annual revenues $300,000 more than businesses without broadband. •  Broadband availability contributes positively to employment growth especially in the following sectors: –  Management of companies & enterprises –  Utilities –  Professional, scientific, and technical services Wall Street West •  Northeastern Pennsylvania as a hub for to data backup services to New York City’s financial institutions •  Fiber optic infrastructure from NYC to the region •  Coordinated economic development strategyPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 11
  • Hidden Assets for Economic &Community Development •  Number of broadband providers is higher than the national average –  Nearly 80% of the county population can choose from 3 or more providers compared to 31% of the US population •  Average speed of connection ranks 32nd among Indiana’s 92 counties •  90% of homes have broadband Civic Infrastructure •  Cooperation •  Collaboration •  Innovation Civic Infrastructure Continuum Co-Creation Co-Execution Sharing Resources Sharing Information Mutual Awareness Acknowledgment Exploration Cooperation Collaboration Innovation You have to walk before you run Adapted from Collaboration Continuum from ACT for YouthPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 12
  • Hidden Assets for Economic &Community Development •  Every community needs civic entrepreneurs. •  Even civic entrepreneurial ventures need “seed” capital. •  Every community has the capacity to invest in civic entrepreneurship and new collaborations. “Civic entrepreneurs help communities collaborate to develop and organize their economic assets and to build productive, resilient relationships across the public, private, and civil sectors. They forge the ties that bind economy and community for their mutual benefit.” - Center for Community Economic Development, University of Wisconsin •  Millionaires and the Millennium report found that between 1998-2052 $41 trillion in wealth will transfer from one US generation to another. •  In 2005 the Indiana Grantmakers Alliance commissioned a study on the transfer of wealth in Indiana. The study was updated in 2010. The Smiths have lived in rural Boone County their entire lives and have been tremendous stewards of the community. They have three grown children one of whom lives in nearby Indianapolis and the others on the West Coast. When they pass on their wealth, unless they have made other arrangements, it will leave Boone County forever. •  2010 net worth of all Boone County households is estimated to be $4.15 billion. •  Over the next 10 years (2010-2020), an estimated $1.7 billion will be available to transfer between generations in Boone County households. $6.24 billion over the next 50 years •  If just 5% of that amount were to be captured by local non-profit organizations, such as community foundations, for the betterment of Boone County communities, those organizations would realize $85 million. This same 5% capture over 50 years is an estimated $312 million. •  Using a conservative 5% annual rate of return on the endowment amount could ultimately yield $4.25 million each year at the end of 10 years to support community economic development and other charitable investments. After 50 years, approximately $15.6 million would be generated each year. While never touching the principle.Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 13
  • Hidden Assets for Economic &Community Development Some communities have launched information campaigns and enlisted the participation of financial planners to share this opportunity with their clients. Combining Assets in New and Innovative Ways – Linking and Leveraging Medora, Indiana + + =Purdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 14
  • Hidden Assets for Economic &Community Development + + = No Single Big Strategy Many Modest Strategies Capacity for Innovation High Job/Pop Growth Ratio Strong Occupational Clusters Economic Well-Being Second Stage Firms Arts, Entertainment, Publishing & Broadcasting High Number of Small Establishments 6.6 of% all Establishments Agriculture & Food Technology High Net Internal Migration 34.5% of all Jobs Skilled Production Workers Growing Per Capita Income Managerial, Sales, Marketing, & HR Growing Wages/Salary Legal and Financial Services, & Real Estate Growing Proprietors Income Healthcare & Medical Sciences (Practitioners & Scientist Strong Industry Clusters Electrical Equip/Appliance/Component Mfg Biomedical/Biotechnical (Life Sciences) Good Broadband Infrastructure Glass & Ceramics Consumer Choice Agribusiness Food Process. & Technology 90% of Homes are Connected Machinery Mfg Speed Near Top Third of the State Transportation Equipment Mfg Advanced Materials Apparel & Textiles Chemicals & Chemical Based Products Education & Knowledge Creation Transfer of Wealth Positive Buzz Potential for over $15 million per year to Arts, High-End Retail, Responsive invest in civic collaboration Government, Social Awareness, Desirable HousingPurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 15
  • Hidden Assets for Economic &Community Development •  Occupational Clusters - http://www.statsamerica.org/innovation/data.html •  Innovation Index - http://www.statsamerica.org/innovation/data.html •  Second Stage Firms - http://www.youreconomy.org/ •  Economic Gardening - http://www.littletongov.org/bia/economicgardening/ •  Industry Clusters - http://www.statsamerica.org/innovation/data.html •  ACEnet (Salsa Cluster) - http://www.acenetworks.org/ •  Twitter Search - http://twitter.com/#!/search-advanced •  Broadband Data - http://www.broadband.gov/ •  Transfer of Wealth in Indiana - http://www.waynecountyfoundation.org/documents/ IndianaTransferofWealthUpdate.pdf •  National Maple Syrup Festival – http://www.nationalmaplesyrupfestival.com •  Purdue Guitar Summer Camp - http://metalsound.tech.purdue.edu/default.aspx Contact Name Purdue Extension XXXXXX County Economic & Community Development Purdue Center for Regional Development Address Address Phone Email WebsitePurdue Extension, Economic & Community DevelopmentPurdue Center for Regional Development 16