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Kuliah 4
Paradigma Baru
Pembangunan Daerah
Prof. Lincolin Arsyad, PhD
Faculty of Economics & Business
Universitas Gadjah Mada
1. Endogenous Development Approach
2. Components of Local Economic
Development (Leigh & Blakely, 2013)
3. Virtuous Circle of Local Economic
Development (Stimson et al., 2009)
Pendekatan pembangunan
yang bersifat endogenous
berkembang pada awalnya di Eropa, Amerika
Utara, dan Jepang pada pertengahan 1970-an
pendekatan pembangunan berbasis lokal
(endogenous development approach)
upaya untuk menciptakan model
pertumbuhan ekonomi berbasiskan komunitas
(community-based economic growth)
lebih bersifat bottom-up
Pengertian
Endogenous Development
1. Massey (1984): suatu pendekatan pembangunan
kewilayahan (territorial approach) dalam proses
pertumbuhan ekonomi dan perubahan struktural
yang dimotori oleh komunitas lokal dan
memanfaatkan potensi-potensi lokal dalam
pembangunan untuk memperbaiki tingkat
kehidupan penduduk lokal.
2. ITP (2007): strategi pembangunan yang terutama
sekali didasarkan - tetapi tidak sepenuhnya - pada
sumberdaya lokal, pengetahuan lokal, budaya dan
kepemimpinan lokal, dengan keterbukaan untuk
memadukan pengetahuan tradisional dan yang
berasal dari luar.
Karakteristik Utama
Endogenous Development
Ray (1997):
1. penekanan pada pendekatan wilayah bukan sektoral
2. kegiatan ekonomi dan pembangunan lainnya
diarahkan untuk memaksimumkan manfaat bagi
daerah lokal melalui pemanfaatan sumberdaya lokal,
fisikal maupun manusianya
3. pembangunan dikontekstualkan melalui pemusatan
perhatian terhadap kebutuhan, kapasitas, dan
perspektif masyarakat lokal, yang berarti bahwa suatu
wilayah seyogyanya mengembangkan kapasitasnya
untuk melakukan pembangunan sosio-ekonomi yang
khas wilayah tersebut.
Mühlighaus & Walty (2001):
1. Optimalisasi endogenous potentials (identifikasi
potensi-potensi lokal: peluang, SDA, SDM,
kemampuan sosial, modal sosial, dsb)
2. Peningkatan ekonomi regional (otonomi ekonomi
daerah)
3. Sustainable development (aspek ekonomi, ekologis,
dan sosial yang setara)
4. Partisipasi (local participation)
5. Pengembangan identitas regional (prideness)
Components of Local Economic
Development (Leigh & Blakely, 2013)
Component Old Concept New Concept
Locality
Physical location (near
natural resources,
transportation, markets)
enhances economic
options
A quality of environment and
strong community capacity
multiply natural advantages for
economic growth
Business and
Economic Base
Export base industries and
firms create jobs and
stimulate increased local
business
Cluster of competitive
industries linked in a regional
network of all types of firms
create new growth and income
Employment
Resources
More firms create more
jobs, even if many are
minimum wage
Comprehensive skill
development and technological
innovation lead to quality jobs
and higher wages
Community
Resources
Single-purpose
organizations can
enhance economic
opportunities in the
communities
Collaborative partnerships of
many community groups are
needed to establish a broad
foundation for competitive
industries
7
A ‘Virtuous Circle’ untuk
Pembangunan Regional (Stimson et al.,
2009)
3 Pilar Pembangunan
Regional Endogen (RED)
(Stimson et al., 2009)
1. Kepemimpinan (leadership)
2. Kelembagaan (institutions)
3. Resource Endowment and Market
Fit (REM)
Regional Competitiveness
Performance Cube (RCPC)
Kerangka Model Baru bagi
Pembangunan Regional Endogen
(Stimson et al., 2009)
Arti Penting Kepemimpinan
Stimson et al. (2002) :
kepemimpinan untuk pembangunan ekonomi regional
tidak didasarkan pada hubungan hirarkhis, tetapi lebih
pada hubungan kolaboratif antara pelaku-pelaku
kelembagaan yang mencakup sektor publik, privat, dan
masyarakat dan didasarkan pada rasa saling percaya
(mutual trust) dan kerjasama (cooperation).
Jadi, kepemimpinan berkaitan dengan:
Pembagian kekuasaan (shared power)
Keluwesan (flexibility)
Entrepreneurialisme
Komponen Kunci Kepemimpinan
Regional yang Efektif
1. Kolaborasi: pernyataan tentang visi dan
implementasi proses untuk barang kolektif – dan
untuk semua komunitas – dari suatu daerah.
2. Saling percaya (trust): hal esensial bagi kolaborasi
yang efektif. Pemimpin dengan para pengikutnya
harus memiliki rasa saling percaya untuk berbagi
risiko dalam tindakan kolektif. Jika tidak ada rasa
saling percaya, pandangan dari para pemimpin
akan sulit sulit diterima.
3. Pembagian kekuasaan (shared power): ditandai
oleh power distance yang rendah dan desentralisasi
kekuasaan.
4. Keluwesan (flexibility): sangat diperlukan untuk
inovasi dan berpikir kreatif.
5. Entrepreneurialisme: kepemimpinan komunitas
menunjukkan karakteristik entrepreneurial,
percaya akan perubahan, dan menginisiasi untuk
meng-energize- daerah untuk menghadapi
tantangan persaingan dan menyesuaikan diri
dengan lingkungan yang dibutuhkan untuk
perubahan tersebut, dan hal ini membutuhkan
kapasitas dan kemauan untuk menghadapi
perilaku yang berisiko.
Resource Endowments
dan Kesesuaian Pasar
1. Ukuran/luas daerah
2. SDA, seperti: iklim, tanah, topografis, dan materials.
3. Lokasi dan aset lingkungan
4. Sejarah basis ekonomi, struktur industri, dan
diversitas.
5. Entrepreneurship
6. Modal untuk investasi
7. Posisi kompetitif
8. Penduduk dan modal insani
9. Teknologi dan infrastruktur lainnya
10. Akses ke pasar; ekonomi aglomerasi, dst.
Institusi
• Institusi mempercepat akumulasi modal (Vazquez-Barquero,
2002), karena:
1. Menurunkan biaya transformasi dan produksi
2. Meningkatkan trust antar aktor ekonomi dan sosial
3. Memperbaiki kapasitas entrepreneurial
4. Meningkatkan mekanisme pembelajaran (learning) dan
relasional
5. Memperkuat networks dan kerjasama antar para aktor
• Berdasarkan studi TFPG dan kinerja ekonomi Asia Timur dan Asia
Tenggara, Rodrik (1998) menemukan:
1. Perbedaan kualitas lembaga pemerintah merupakan salah
satu penyebab variasi kinerja ekonomi antar daerah.
2. Kualitas institusi pemerintah merupakan hal penting bagi
pertumbuhan.
lanjutan institusi…
• Faktor kunci berkaitan dengan tata kelola (Rodrik, 1998):
1. Kualitas birokrasi, khususnya otonomi dari tekanan politik,
keahlian dan efisiensi dalam pengadaan jasa pemerintah,
dan moda rekrutmen dan pelatihan yang bagus;
2. Peraturan perundang-undangan, khususnya institusi politik
yang baik, peradilan yang kuat, dan suksesi kekuatan politik
yang tertata baik;
3. risk of expropriation, particularly relating to the possibility
of confiscation and forced nationalization;
4. repudiation of contracts by government, including
postponement, scaling down due to budget cuts, and
changes in government priorities.
Kerangka Kelembagaan yang
Membentuk Outcome Kebijakan
1. Lingkungan institusi politik
2. Sifat eksekutif pemerintah
3. Ketidakpastian dan pergantian kepemimpinan
4. Kendala eksternal terhadap pilihan-pilihan kebijakan
lokal
5. Kolaborasi antara-kelembagaan dan interaksi jejaring
6. Rasa saling percaya sebagai alat tata kelola
7. Desentralisasi kelembagaan
8. Budaya organisasi
9. Budaya tata kelola (governance)
Entrepreneurship dalam
Pembangunan Regional
1. Entrepreneurship in leadership-driven regional economic
development is different from the concept as applied in the
private sector where the motivation for entrepreneurial
discovery and innovation is deeper than the direct profit
motive. Sometimes this form of leadership is referred to as
civic leadership and involves private and public
entrepreneurs.
2. Traditionally entrepreneurs are motivated by the promise of
‘pure profits’, the private or public entrepreneur in the
regional development process is differently motivated.
3. Entrepreneurship in regional economic development is
not directly, at least, a response to the lure for pure profits
but rather to the lure of maintenance and sustainability of
one’s family and business and position:
 leadership-led development are often motivated by what
we call here ‘love of region’ that stems from longer term,
often intergenerational ties to their place through legacy
effects related to their family and/or their business
history.
 motivated by responsibility to their region and the
improvement of the social or community milieu it is
personal benefit of their family and business that is
often at the core of their motivation to help implement
change that will enhance economic sustainability of
their region.
Karakteristik Kepemimpinan
Entrepreneurial yang Mendorong
Pembangunan Ekonomi Regional
1. It believes in change and initiative to
‘energize’ it to meet competitive challenges
and to keep progressing. In short, leadership
needs to exhibit discovery, opportunistic and
innovative behavior.
2. It possesses insights to enable it to identify
opportunities and pursue innovative ideas to
improve or adapt a region’s environment to
meet the needed challenges facing it through
‘new combinations’ or innovation in
institutional arrangements
Tindakan Entrepreneurial
1. Using new methods to create location-specific
advantages for producing goods/services or other
urban activities to shift the economic base of the city.
Examples include technopoles, agglomeration
economies, and so on.
2. Introduction of new types of urban place or space for
producing, servicing, working, consuming, living, and
so on. Examples can include gateways, intelligent
cities, multicultural cities, creative cities, and so on.
3. Refiguring or redefining the urban hierarchy and/or
altering the position of a given city within it.
Examples include the development of a regional
gateway, hubs, and so on.
Tindakan…
4. Finding new sources of supply to enhance
competitive advantage. Examples include attracting
inward investment or reskilling the work force.
Therefore, the focus on this factor will be on the
tendency shown by the community to undertake
entrepreneurial local initiatives.
5. Opening new markets, whether by place-marketing
specific cities in new areas and/or modifying the
spatial division of consumption through enhancing
the quality of life for residents, commuters or visitors.
6. Finding new sources of supply to enhance
competitive advantages. Examples include changing
the cultural mix of the cities, finding new sources of
funding, or re-skilling the workforce.
Karakteristik Entrepreneurship
dalam konteks
Pembangunan Ekonomi
1. Metoda-metoda baru,
2. Industri baru,
3. Institusi baru,
4. Metoda-metoda pembiayaan/pendanaan
baru,
5. Penyediaan infrastruktur fisik dan
kelembagaan yang baru dan berbeda,
6. Pemain-pemain baru.
Variabel-variabel untuk
Model Operasional RED
• Regional economic development and growth over time is
represented as follows:
RED = f [(RE, M) mediated by (I, L, E)]
RED = endogenous growth in region, measured as:
– the aggregate regional differential shift component
value in a shift–share analysis using employment or
revenue/income as the metric
– an employment-based location quotient measuring
change over time (but this might not explicitly capture
just the effect of endogenous factors)
RE = resource endowments:
1. area size of the region
2. climate
3. Topography
4. agglomeration of industry key sectors (measured by Location
Quotients for employment in industry sectors)
5. population size and rate of growth/decline
6. education levels (a derived index of human capital) and literacy
7. per capita income, income distribution, and income distribution
change over time
8. housing ownership
9. investment in industrial and commercial construction, benchmarked
to
10. the region’s national share vis-à-vis its national share of population
11. infrastructure investment (per capita), such as on roads, schools,
hospitals, and so on
12. industrial structure and change in industrial structure (measured by
an industrial diversity index)
13. regional organizational slack
M = market fit:
1. basic economic activity in major industry sectors (measured
by Location Quotients for employment in industry sectors)
2. airline connections with other regions/cities
3. road freight in/out movements
4. volume and value of exports in core competitive locally
produced commodities and services.
L = leadership:
1. the degree of change/stability in local political leadership
2. expert assessment of leadership quality
3. corporate headquarters located in the region
4. density of business and community organizations per
10,000 population
E = entrepreneurship:
1. churn rate or business start-up rate
2. number of small firms as a proportion of all firms
3. venture capital activity
4. corporate venturing activity
5. patents issued per 10,000 workers
6. Location Quotient of employment in ‘symbolic analyst’
occupations.
We would argue that RED is positively related to RE, M, L, I and E,
but that there are likely to be lead and lag effects in the short to
intermediate run, and perhaps cyclical effects in the longer run.
Thus,
REDt = REt–1 + Mt–1 + (It–1 to It–10/10) + Lt–2 + Et–2 + e
I = institutions:
1. institutional thickness (corporate and community organizations
per 10,000 population)
2. layers of government/government fragmentation
3. formal institutions of governance, measured by number of
public agencies per 10,000 population
4. number of headquarters of major corporations (for example
Fortune 1000 firms)
5. value foundation capitalization per 10,000 population
6. government fragmentation
7. level of regional organizations (number and budget level)
8. index of social capital
Terima Kasih

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KULIAH-04-PARADIGMA BARU PEMB.pptx

  • 1. Kuliah 4 Paradigma Baru Pembangunan Daerah Prof. Lincolin Arsyad, PhD Faculty of Economics & Business Universitas Gadjah Mada
  • 2. 1. Endogenous Development Approach 2. Components of Local Economic Development (Leigh & Blakely, 2013) 3. Virtuous Circle of Local Economic Development (Stimson et al., 2009)
  • 3. Pendekatan pembangunan yang bersifat endogenous berkembang pada awalnya di Eropa, Amerika Utara, dan Jepang pada pertengahan 1970-an pendekatan pembangunan berbasis lokal (endogenous development approach) upaya untuk menciptakan model pertumbuhan ekonomi berbasiskan komunitas (community-based economic growth) lebih bersifat bottom-up
  • 4. Pengertian Endogenous Development 1. Massey (1984): suatu pendekatan pembangunan kewilayahan (territorial approach) dalam proses pertumbuhan ekonomi dan perubahan struktural yang dimotori oleh komunitas lokal dan memanfaatkan potensi-potensi lokal dalam pembangunan untuk memperbaiki tingkat kehidupan penduduk lokal. 2. ITP (2007): strategi pembangunan yang terutama sekali didasarkan - tetapi tidak sepenuhnya - pada sumberdaya lokal, pengetahuan lokal, budaya dan kepemimpinan lokal, dengan keterbukaan untuk memadukan pengetahuan tradisional dan yang berasal dari luar.
  • 5. Karakteristik Utama Endogenous Development Ray (1997): 1. penekanan pada pendekatan wilayah bukan sektoral 2. kegiatan ekonomi dan pembangunan lainnya diarahkan untuk memaksimumkan manfaat bagi daerah lokal melalui pemanfaatan sumberdaya lokal, fisikal maupun manusianya 3. pembangunan dikontekstualkan melalui pemusatan perhatian terhadap kebutuhan, kapasitas, dan perspektif masyarakat lokal, yang berarti bahwa suatu wilayah seyogyanya mengembangkan kapasitasnya untuk melakukan pembangunan sosio-ekonomi yang khas wilayah tersebut.
  • 6. Mühlighaus & Walty (2001): 1. Optimalisasi endogenous potentials (identifikasi potensi-potensi lokal: peluang, SDA, SDM, kemampuan sosial, modal sosial, dsb) 2. Peningkatan ekonomi regional (otonomi ekonomi daerah) 3. Sustainable development (aspek ekonomi, ekologis, dan sosial yang setara) 4. Partisipasi (local participation) 5. Pengembangan identitas regional (prideness)
  • 7. Components of Local Economic Development (Leigh & Blakely, 2013) Component Old Concept New Concept Locality Physical location (near natural resources, transportation, markets) enhances economic options A quality of environment and strong community capacity multiply natural advantages for economic growth Business and Economic Base Export base industries and firms create jobs and stimulate increased local business Cluster of competitive industries linked in a regional network of all types of firms create new growth and income Employment Resources More firms create more jobs, even if many are minimum wage Comprehensive skill development and technological innovation lead to quality jobs and higher wages Community Resources Single-purpose organizations can enhance economic opportunities in the communities Collaborative partnerships of many community groups are needed to establish a broad foundation for competitive industries 7
  • 8. A ‘Virtuous Circle’ untuk Pembangunan Regional (Stimson et al., 2009)
  • 9. 3 Pilar Pembangunan Regional Endogen (RED) (Stimson et al., 2009) 1. Kepemimpinan (leadership) 2. Kelembagaan (institutions) 3. Resource Endowment and Market Fit (REM)
  • 11. Kerangka Model Baru bagi Pembangunan Regional Endogen (Stimson et al., 2009)
  • 12. Arti Penting Kepemimpinan Stimson et al. (2002) : kepemimpinan untuk pembangunan ekonomi regional tidak didasarkan pada hubungan hirarkhis, tetapi lebih pada hubungan kolaboratif antara pelaku-pelaku kelembagaan yang mencakup sektor publik, privat, dan masyarakat dan didasarkan pada rasa saling percaya (mutual trust) dan kerjasama (cooperation). Jadi, kepemimpinan berkaitan dengan: Pembagian kekuasaan (shared power) Keluwesan (flexibility) Entrepreneurialisme
  • 13. Komponen Kunci Kepemimpinan Regional yang Efektif 1. Kolaborasi: pernyataan tentang visi dan implementasi proses untuk barang kolektif – dan untuk semua komunitas – dari suatu daerah. 2. Saling percaya (trust): hal esensial bagi kolaborasi yang efektif. Pemimpin dengan para pengikutnya harus memiliki rasa saling percaya untuk berbagi risiko dalam tindakan kolektif. Jika tidak ada rasa saling percaya, pandangan dari para pemimpin akan sulit sulit diterima.
  • 14. 3. Pembagian kekuasaan (shared power): ditandai oleh power distance yang rendah dan desentralisasi kekuasaan. 4. Keluwesan (flexibility): sangat diperlukan untuk inovasi dan berpikir kreatif. 5. Entrepreneurialisme: kepemimpinan komunitas menunjukkan karakteristik entrepreneurial, percaya akan perubahan, dan menginisiasi untuk meng-energize- daerah untuk menghadapi tantangan persaingan dan menyesuaikan diri dengan lingkungan yang dibutuhkan untuk perubahan tersebut, dan hal ini membutuhkan kapasitas dan kemauan untuk menghadapi perilaku yang berisiko.
  • 15. Resource Endowments dan Kesesuaian Pasar 1. Ukuran/luas daerah 2. SDA, seperti: iklim, tanah, topografis, dan materials. 3. Lokasi dan aset lingkungan 4. Sejarah basis ekonomi, struktur industri, dan diversitas. 5. Entrepreneurship 6. Modal untuk investasi 7. Posisi kompetitif 8. Penduduk dan modal insani 9. Teknologi dan infrastruktur lainnya 10. Akses ke pasar; ekonomi aglomerasi, dst.
  • 16. Institusi • Institusi mempercepat akumulasi modal (Vazquez-Barquero, 2002), karena: 1. Menurunkan biaya transformasi dan produksi 2. Meningkatkan trust antar aktor ekonomi dan sosial 3. Memperbaiki kapasitas entrepreneurial 4. Meningkatkan mekanisme pembelajaran (learning) dan relasional 5. Memperkuat networks dan kerjasama antar para aktor • Berdasarkan studi TFPG dan kinerja ekonomi Asia Timur dan Asia Tenggara, Rodrik (1998) menemukan: 1. Perbedaan kualitas lembaga pemerintah merupakan salah satu penyebab variasi kinerja ekonomi antar daerah. 2. Kualitas institusi pemerintah merupakan hal penting bagi pertumbuhan.
  • 17. lanjutan institusi… • Faktor kunci berkaitan dengan tata kelola (Rodrik, 1998): 1. Kualitas birokrasi, khususnya otonomi dari tekanan politik, keahlian dan efisiensi dalam pengadaan jasa pemerintah, dan moda rekrutmen dan pelatihan yang bagus; 2. Peraturan perundang-undangan, khususnya institusi politik yang baik, peradilan yang kuat, dan suksesi kekuatan politik yang tertata baik; 3. risk of expropriation, particularly relating to the possibility of confiscation and forced nationalization; 4. repudiation of contracts by government, including postponement, scaling down due to budget cuts, and changes in government priorities.
  • 18. Kerangka Kelembagaan yang Membentuk Outcome Kebijakan 1. Lingkungan institusi politik 2. Sifat eksekutif pemerintah 3. Ketidakpastian dan pergantian kepemimpinan 4. Kendala eksternal terhadap pilihan-pilihan kebijakan lokal 5. Kolaborasi antara-kelembagaan dan interaksi jejaring 6. Rasa saling percaya sebagai alat tata kelola 7. Desentralisasi kelembagaan 8. Budaya organisasi 9. Budaya tata kelola (governance)
  • 19. Entrepreneurship dalam Pembangunan Regional 1. Entrepreneurship in leadership-driven regional economic development is different from the concept as applied in the private sector where the motivation for entrepreneurial discovery and innovation is deeper than the direct profit motive. Sometimes this form of leadership is referred to as civic leadership and involves private and public entrepreneurs. 2. Traditionally entrepreneurs are motivated by the promise of ‘pure profits’, the private or public entrepreneur in the regional development process is differently motivated.
  • 20. 3. Entrepreneurship in regional economic development is not directly, at least, a response to the lure for pure profits but rather to the lure of maintenance and sustainability of one’s family and business and position:  leadership-led development are often motivated by what we call here ‘love of region’ that stems from longer term, often intergenerational ties to their place through legacy effects related to their family and/or their business history.  motivated by responsibility to their region and the improvement of the social or community milieu it is personal benefit of their family and business that is often at the core of their motivation to help implement change that will enhance economic sustainability of their region.
  • 21. Karakteristik Kepemimpinan Entrepreneurial yang Mendorong Pembangunan Ekonomi Regional 1. It believes in change and initiative to ‘energize’ it to meet competitive challenges and to keep progressing. In short, leadership needs to exhibit discovery, opportunistic and innovative behavior. 2. It possesses insights to enable it to identify opportunities and pursue innovative ideas to improve or adapt a region’s environment to meet the needed challenges facing it through ‘new combinations’ or innovation in institutional arrangements
  • 22. Tindakan Entrepreneurial 1. Using new methods to create location-specific advantages for producing goods/services or other urban activities to shift the economic base of the city. Examples include technopoles, agglomeration economies, and so on. 2. Introduction of new types of urban place or space for producing, servicing, working, consuming, living, and so on. Examples can include gateways, intelligent cities, multicultural cities, creative cities, and so on. 3. Refiguring or redefining the urban hierarchy and/or altering the position of a given city within it. Examples include the development of a regional gateway, hubs, and so on.
  • 23. Tindakan… 4. Finding new sources of supply to enhance competitive advantage. Examples include attracting inward investment or reskilling the work force. Therefore, the focus on this factor will be on the tendency shown by the community to undertake entrepreneurial local initiatives. 5. Opening new markets, whether by place-marketing specific cities in new areas and/or modifying the spatial division of consumption through enhancing the quality of life for residents, commuters or visitors. 6. Finding new sources of supply to enhance competitive advantages. Examples include changing the cultural mix of the cities, finding new sources of funding, or re-skilling the workforce.
  • 24. Karakteristik Entrepreneurship dalam konteks Pembangunan Ekonomi 1. Metoda-metoda baru, 2. Industri baru, 3. Institusi baru, 4. Metoda-metoda pembiayaan/pendanaan baru, 5. Penyediaan infrastruktur fisik dan kelembagaan yang baru dan berbeda, 6. Pemain-pemain baru.
  • 25. Variabel-variabel untuk Model Operasional RED • Regional economic development and growth over time is represented as follows: RED = f [(RE, M) mediated by (I, L, E)] RED = endogenous growth in region, measured as: – the aggregate regional differential shift component value in a shift–share analysis using employment or revenue/income as the metric – an employment-based location quotient measuring change over time (but this might not explicitly capture just the effect of endogenous factors)
  • 26. RE = resource endowments: 1. area size of the region 2. climate 3. Topography 4. agglomeration of industry key sectors (measured by Location Quotients for employment in industry sectors) 5. population size and rate of growth/decline 6. education levels (a derived index of human capital) and literacy 7. per capita income, income distribution, and income distribution change over time 8. housing ownership 9. investment in industrial and commercial construction, benchmarked to 10. the region’s national share vis-à-vis its national share of population 11. infrastructure investment (per capita), such as on roads, schools, hospitals, and so on 12. industrial structure and change in industrial structure (measured by an industrial diversity index) 13. regional organizational slack
  • 27. M = market fit: 1. basic economic activity in major industry sectors (measured by Location Quotients for employment in industry sectors) 2. airline connections with other regions/cities 3. road freight in/out movements 4. volume and value of exports in core competitive locally produced commodities and services. L = leadership: 1. the degree of change/stability in local political leadership 2. expert assessment of leadership quality 3. corporate headquarters located in the region 4. density of business and community organizations per 10,000 population
  • 28. E = entrepreneurship: 1. churn rate or business start-up rate 2. number of small firms as a proportion of all firms 3. venture capital activity 4. corporate venturing activity 5. patents issued per 10,000 workers 6. Location Quotient of employment in ‘symbolic analyst’ occupations. We would argue that RED is positively related to RE, M, L, I and E, but that there are likely to be lead and lag effects in the short to intermediate run, and perhaps cyclical effects in the longer run. Thus, REDt = REt–1 + Mt–1 + (It–1 to It–10/10) + Lt–2 + Et–2 + e
  • 29. I = institutions: 1. institutional thickness (corporate and community organizations per 10,000 population) 2. layers of government/government fragmentation 3. formal institutions of governance, measured by number of public agencies per 10,000 population 4. number of headquarters of major corporations (for example Fortune 1000 firms) 5. value foundation capitalization per 10,000 population 6. government fragmentation 7. level of regional organizations (number and budget level) 8. index of social capital