An overview of a future focused approach to understanding regional economies and developing influential local economic development strategies.

1. REGIONAL ECONOMIES
DIFFERENT PATHWAYS NEED DIFFERENT
STRATEGIES

2. PRESENTATION OVERVIEW
Leadership by local government in preparing local economies to succeed in the
future is not optional - it is essential.
But how can we take our approach to regional economic strategy to the next
level?
• Engaging with the global operating environment
• Understanding regional position and potential – what matters
• Moving from a land use planning derived approach to a business derived approach to
strategy development
• Making the change

3. THE OPERATING ENVIRONMENT FOR ALL REGIONAL
ECONOMIES
A changing global
economy and supply
chains constantly
requiring new ways to
compete
Rapidly evolving technology
reducing the tyranny of distance
but increasing speed of change
Ageing population and
more mobile world
Unknown factors
that can’t be
predicted but must
be anticipated and
managed
shifting
demographics,
lifestyles and
reshaping
communities
On-going
tensions
between
resource use
and
conservation
Weakened
central
government
control

4. WHAT DOES THIS MEAN FOR YOUR REGION?

5. THREE THINGS THAT DETERMINE PATHWAYS AND
OPTIONS
Industry
Diverse,
ag/mining/tourism
dominated, limited?
Proximity
Metro, inner/outer
regional, remote?
Population
Large or small,
rapidly changing or
stable?
The nature of these
3 factors will shape
any regional
economy’s internal
dynamics, external
relationships and
future
opportunities.

7. UNDERSTANDING A REGIONS POTENTIAL
External markets:
opportunity and risk
Understand and monitor the markets
that regional firms rely on
• Compare local firms to their wider
industries to understand
competitive position
Regional
leaders and
entrepreneur
s
Competitive advantage and
capacity for endogenous
growth
Flows of
people and
capital
Core opportunity for
regional influence on
the future
• How strong is the
region in these
areas?
Core of current strategy
development
• How does this relate to
industry, proximity and
size?
Key drivers of change
• How do local
trends and drivers
relate to larger
socio-economic
shifts

8. UNDERSTANDING A REGIONS POTENTIAL
External markets:
opportunity and risk
Regional
leaders and
entrepreneur
s
Competitive advantage and
capacity for endogenous
growth
Northern cities – complex picture
Industry hubs – substantial people and capital
flows have driven growth, future trends likely to
be different
Remote – capital likely to be limited but
potentially transformative, transitory
population a key challenge
Flows of
people and
capital
Northern cities – diverse groups of markets
and opportunity
Industry hubs – 1-2 key markets and firms
will underpin future outcomes
Remote – limited firms and no key markets
(exc. Govt.)
Northern cities – more leadership capacity
but is there alignment and vision?
Industry hubs – are leaders ready for a more
challenging phase, do we need different
skills and capacity?
Remote – performance of a small groups of
leaders crucial? Capacity?
Northern cities – size, infrastructure,
workforce and innovation capacity
Industry hubs – some internal capacity but
core comparative advantage proximity to
resource
Remote – resources and institutions

9. USING THIS KNOWLEDGE BY SHIFTING OUR APPROACH TO
LOCAL ECONOMIC STRATEGY
Population
projections
define the
future
Ambitions and
outcomes the
community/LG
is seeking
Description of a
common range of
economic issues
Identify a range of future
economic scenarios and
strategic implications
Examine the
dynamics of key
variables and
identify key
points of
influence
Focus on key
industry,
location and
size factors
Land use planning derivative Business strategy derivative

10. APPLYING THIS APPROACH - QUESTIONS
Opportunity – How will Local Governments with a stronger strategic view of their
potential futures benefit their local areas?
Barriers – How will the availability of information, skills and expectations
challenge the implementation of this approach? What is the role of
researchers/RAI/LG workers?
Emergence - To what extent are some local areas applying part or all of this
approach? What has been the experience?

11. jack.archer@regionalaustralia.org.au
www.regionalaustralia.org.au
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