REGIONAL REALITIES--OLD & NEW
OLD REALITY: regions are competitive because the firms within them compete
with one another to produce the best products a...
OLD REALITY: regions make things, and the more they make the more
competitive they are: the advantage of agglomeration
Competition is THE rule of the game, firms within the
same region compete with one another
Regions became known by their principal
agglomeration; by the things they make
Pittsburgh is Steel Town
OLD REALITY: The region is structured around its central city:
what’s good for the city is good for the region
Burnham’s 1...
BUT….building a region’s future on old realities can leave it
high and dry
West Toronto
NEW REALITY: Regions are less and less about making
things, though their identity may still be tied to them
Pittsburgh Ste...
NEW REALITY: Regions are increasingly about
knowledge creation
NEW REALITY: Instead of chasing smokestacks we
need to attract creative people
NEW REALITY: It’s no longer cities but regions that are
the units of economic competition
Energy sector companies
Charlott...
Telecommunications and Information Cluster
NEW REALITY: Instead of agglomerations we market regions
by their clusters
Clean Energy Cluster
San Diego, California
Life Sciences Cluster: Baltimore, Maryland
The vision for Cascadia links Seattle, Portland, and Vancouver, British Columbia with
high-speed rail, while protecting th...
Our new realities require a
different way of thinking about
working together and marketing
the region
The new realities of regions requires a different
understanding of what drives businesses and
communities
The concept of C...
In the mid-2000s, "coopetition" began to be used by Darell Waltrip to
describe the phenomenon of drivers cooperating at va...
Ray Noorda, founder of Novell, explained…
• Cooperation is creating value
• Competition is dividing it up
• Business is no...
Co-opetition in Business
• New value comes from the development of
new products
• New product development can be
exception...
Case 1: In the mid-2000s, PSA Peugeot Citroen and
Toyota shared in costs and technological expertise in
developing compone...
The Case 2: Samsung and Sony*
• Samsung and Sony have been fierce competitors in the
domestic electronics market.
• Nevert...
• The firms established a joint venture
governance mode to provide safeguards and
balance for the new venture.
• They achi...
Co-opetition in Regions
• Importance of recognizing “multi-nucleated”
regions as units of global economic
competition
• Th...
Case 1: Denver International Airport
Elements of Co-opetition
• Denver wanted a new airport to enhance its
global competitive advantage
• Adjacent Aurora wante...
Case 2: SDFC
A collaboration of the
major scientific and
cultural facilities of the
Denver region worked
together to win a...
Case 3: The San Diego Dialog works to develop projects
strengthening the identity of the trans-border region between
San D...
Crossborder Innovation & Competitiveness
Initiative
The Innovation & Competitiveness Initiative
explored the concept that ...
Case 4: Established in 1993, Joint
Venture Silicon Valley provides
analysis and action on issues
affecting the region's ec...
Value Added by Joint Venture
• Creating awareness of regional dynamics
• Identifying areas of strategic opportunity
• Mobi...
Conclusions
Co-opetition offers a useful model for how communities
in a region can work together. In order to do this:
• D...
Some caveats in Translating U.S.
Experiences to Canada
• U.S. regions generally have more discretion in
planning and actin...
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Regional Realities: Old & New - Collaborate to Compete

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Presentation by Allan Wallis to the Canadian Network of Metro Region's event Collaborate to Compete in Niagara Ontario.

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Regional Realities: Old & New - Collaborate to Compete

  1. 1. REGIONAL REALITIES--OLD & NEW
  2. 2. OLD REALITY: regions are competitive because the firms within them compete with one another to produce the best products at the lowest price.
  3. 3. OLD REALITY: regions make things, and the more they make the more competitive they are: the advantage of agglomeration
  4. 4. Competition is THE rule of the game, firms within the same region compete with one another
  5. 5. Regions became known by their principal agglomeration; by the things they make Pittsburgh is Steel Town
  6. 6. OLD REALITY: The region is structured around its central city: what’s good for the city is good for the region Burnham’s 1909 Plan for Chicago
  7. 7. BUT….building a region’s future on old realities can leave it high and dry West Toronto
  8. 8. NEW REALITY: Regions are less and less about making things, though their identity may still be tied to them Pittsburgh Steelers Bostonian Shoes
  9. 9. NEW REALITY: Regions are increasingly about knowledge creation
  10. 10. NEW REALITY: Instead of chasing smokestacks we need to attract creative people
  11. 11. NEW REALITY: It’s no longer cities but regions that are the units of economic competition Energy sector companies Charlotte, NC
  12. 12. Telecommunications and Information Cluster NEW REALITY: Instead of agglomerations we market regions by their clusters
  13. 13. Clean Energy Cluster San Diego, California
  14. 14. Life Sciences Cluster: Baltimore, Maryland
  15. 15. The vision for Cascadia links Seattle, Portland, and Vancouver, British Columbia with high-speed rail, while protecting the area's unique and pristine environment. Other strategies highlight these cities' shared high-tech competencies, commitment to environmental sustainability, and creative clusters in film, music, and green building Linear clusters to be created by high speed transportation
  16. 16. Our new realities require a different way of thinking about working together and marketing the region
  17. 17. The new realities of regions requires a different understanding of what drives businesses and communities The concept of Co-opetition helps provide that new understanding
  18. 18. In the mid-2000s, "coopetition" began to be used by Darell Waltrip to describe the phenomenon of drivers cooperating at various phases of a race at "high speed" tracks such as Daytona and Talladaga where cooperative aerodynamic drafting is critical to a driver's ability to advance through the field. The ultimate goal for each driver, however, is to use the strategy to win.
  19. 19. Ray Noorda, founder of Novell, explained… • Cooperation is creating value • Competition is dividing it up • Business is not cycles of war and peace and war • Business is simultaneously war and peace “You have to compete and cooperate at the same time.”
  20. 20. Co-opetition in Business • New value comes from the development of new products • New product development can be exceptionally costly to business • Competitors sharing in development reduces costs • Once new products are developed, partners resume competing with each other for greater share capture
  21. 21. Case 1: In the mid-2000s, PSA Peugeot Citroen and Toyota shared in costs and technological expertise in developing components for a new city car - while remaining fiercely competitive in other areas. Toyota Aygo Peugeot 107 Citroen C1
  22. 22. The Case 2: Samsung and Sony* • Samsung and Sony have been fierce competitors in the domestic electronics market. • Nevertheless, in 2004 they engaged in a joint venture to develop the next generation of liquid display, flat screen TVs. • Each invested $1 billion (US). • Samsung contributed its technological strength, while Sony contributed technology and marketing strengths. * “Co-opetition between giants,” Gnyawali & Park in Research Policy 40(2011)
  23. 23. • The firms established a joint venture governance mode to provide safeguards and balance for the new venture. • They achieved economies of scale and standards setting through their partnership • While collaborating they continued to compete fiercely through their existing product lines. • Dynamics between the two firms in this case follow the fundamental principles of co- opetition—creating a bigger value together while competing to gain a larger portion of that value.
  24. 24. Co-opetition in Regions • Importance of recognizing “multi-nucleated” regions as units of global economic competition • Thinking in terms of regional assets and how they contribute to quality of life • Making this a multi-sector effort • Focusing on economic clusters • Creating the rules for a new game
  25. 25. Case 1: Denver International Airport
  26. 26. Elements of Co-opetition • Denver wanted a new airport to enhance its global competitive advantage • Adjacent Aurora wanted to increase its tax base • Aurora agreed to support Denver in an annexation election for the airport site • Denver agreed to allow Aurora to benefit from the spinoff commercial development
  27. 27. Case 2: SDFC A collaboration of the major scientific and cultural facilities of the Denver region worked together to win approval for establishing a taxing district supporting their institutions
  28. 28. Case 3: The San Diego Dialog works to develop projects strengthening the identity of the trans-border region between San Diego and Baja California, Mexico
  29. 29. Crossborder Innovation & Competitiveness Initiative The Innovation & Competitiveness Initiative explored the concept that the San Diego-Baja California region will be more globally competitive in key science and technology sectors by leveraging economic development opportunities linking both sides of the border. This concept includes not just crossborder research partnerships, but also catalyzing connections between the San Diego and Baja California economies in high-value added sectors that link the R&D capabilities to manufacturing and service industries in the region.
  30. 30. Case 4: Established in 1993, Joint Venture Silicon Valley provides analysis and action on issues affecting the region's economy and quality of life. The organization brings together established and emerging leaders—from business, government, academia, labor and the broader community—to spotlight issues and work toward innovative solutions.
  31. 31. Value Added by Joint Venture • Creating awareness of regional dynamics • Identifying areas of strategic opportunity • Mobilizing multi-sector responses to regional challenges
  32. 32. Conclusions Co-opetition offers a useful model for how communities in a region can work together. In order to do this: • Develop a shared vision of the region and a shared mission for the coordinating organization • Develop trust and “thicken” networks • Create joint governance agreements to assure an equitable distribution of risks and rewards • Clarify the boundaries between cooperation and competition, and enforce those boundaries • Develop organizational capacity to do the work • Find the right leader • Achieve some early wins to cement relations
  33. 33. Some caveats in Translating U.S. Experiences to Canada • U.S. regions generally have more discretion in planning and acting than provincial/local relations allow for in Canada. • U.S. regions have a wider array of financing tools (e.g., voter initiatives) • U.S. regions have a longer tradition of public/private cooperation • Many U.S. regions have strong technical support from nonprofits (e.g., foundations)

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