A presentation on WIRED the Board of Logansport Cass County Economic Development Foundation.

1. Economic Development in
Today’s World
Logansport-Cass County
Economic Development Foundation
November 16, 2007
Ed Morrison
IndianaWIRED
Purdue Center for Regional Development

2. Economic Development in an Nutshell
Good Money: Increase the volume of
1 income into the region with competitive
traded businesses Rest of the
Neutral Money: Increase the velocity World
2
of money circulating in the region with
local businesses to create more jobs
1
3 Bad Money: Reduce income leaks Sales
by reducing outside purchases,
workers who move out, and
students who drop out Traded
Another
Businesses
region
2
Purchases and paychecks
Brain Drain and
Purchases
Local Businesses 3
Your eco Drop Outs
nomy Dependency
Source: Ed Morrison,
David Morganthaler

3. A downward cycle of economic development
accelerates with a deteriorating civic environment
Business base Deteriorating Civic
gets weaker Entrepreneurial Environment
activity
declines
Businesses
shrink or leave,
start-ups do Higher taxes
not arise Well-paid jobs
decline Tax base erodes
Skilled labor
supply shrinks Skilled people
move out
Civic amenities and
infrastructure
deteriorate
Brain drain as Quality of life
young people deteriorates
drop out and
move out Place develops a
bad reputation
Source: Ed Morrison

4. A prosperous cycle of economic development
accelerates with civic collaboration
Build innovation Collaborative
and entrepreneur Civic Environment
networks Entrepreneurial
activity
increases
New firms emerge,
established firms
grow Well-paid jobs
increase
Lower taxes
Tax base grows
Skilled labor
supply grows
Skilled people
move in
Civic amenities
and infrastructure
improves
Quality of life
Build brainpower improves
with 21st century
work skills Build a quality,
connected place
Source: Ed Morrison

5. Our grandfather’s economy
created a lot of wealth
5

6. The S-Curve caught up to our
grandfather’s economy

7. What
happened in my
home town

8. Collapsing costs are undercutting
our 1st Curve economies

9. The Internet exploded

10. Now we must shift to a path for creating prosperity
Every few hundred years in Western history,
there occurs a sharp transformation.
Peter Drucker, The New Realities
(1989)

11. A 2d Curve economy is emerging with wealth
created by networks...

12. 2d Curve strategies are based on “linking and
leveraging”

15. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

16. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

17. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

18. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

19. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

20. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

21. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

22. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

23. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

24. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

25. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

26. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

27. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

28. First Curve Ideas Second Curve Ideas
Hierarchies Networks
Command and control Link and leverage
Acquire More Align More
Strategic Planning Strategic Doing
Experience Curve Metcalfe Curve
Mass Production Mass Customization
Transactions Relationships

30. What’s the power of a network?
What’s the value of one fax machine?
What’s the value of ten fax machines?

31. 2d Curve strategies
involve linking and
leveraging assets in
five
“asset networks”:
1.Brainpower
2.Innovation
3.Quality places
4.Branding
5.Civic Collaboration

32. 2d Curve Strategies are inter-connected
and collaborative

33. Second Curve strategies
have a simple proposition...
Regions will prosper on the Second
Innovative Businesses
Curve with balanced strategies that...
1. Build world class brainpower
Healthy Entrepreneur
Brainpower and and
World Class
Skills
Innovation
Networks 2. Translate brainpower into wealth
Healthy, through innovation and
Creative Civic
People Collaboration
Dynamic
Clusters entrepreneurship networks
Infrastructure
for Quality,
Connected
Insightful Stories
and Effective
3. Create quality, connected places
Places Branding
where “hot spots” can develop
4. Create a buzz with a brand
Healthy, Creative Places
5. Continuously strengthen habits of
civic collaboration

34. This approach integrates different perspectives...

35. IndianaWIRED is designed to build networks
across a 14 county region
✓ Talent
Innovative Businesses ✓ Entrepreneurship
Indiana
Healthy
Brainpower and
World Class
Entrepreneur
and
Innovation
✓ Innovation
✓ Collaboration
Skills Networks
Healthy,
Creative
People
WIRED Civic
Collaboration
Dynamic
Clusters
Infrastructure
for Quality, Insightful Stories
Connected and Effective
Places Branding
Healthy, Creative Places

36. Indiana
WIRED

37. Successful communities will move their
thinking from hierarchies to networks

38. The power of the invisible fence

39. Successful communities will use civic forums to
uncover entrepreneurial opportunities
Civic forums provide the venue to define new opportunities
and practice new civic behaviors
Source: Nead Brand Partners
30

40. Successful communities will understand the power
of networks
Knowledge Person;
Hub
Boundary Spanner
Information
Broker
Knowledge
Person
Knowledge Person;
Hub; Influencer
Peripheral
Person

41. They will map their networks
Hub
Boundary Spanner
Peripheral

42. Social Network Map
of the
Southwest Regional Leadership Forum
University of Evansville
March 17, 2006
Presented by the Indiana Humaniteis Council
Which region is stronger?

43. Successful
communities
will build civility
as a strategic
asset

44. Successful communities will map their brainpower

45. Successful communities will develop
their innovation networks

46. Successful communities will guide the stories that
create their brand
Consequences of different conversations
about economic development
Positive
Prosperity conversations
Index
Negative
conversations
Years
Today
Source: Ed Morrison

47. Creating the new stories:
Youngstown and Kalamazoo

48. Successful communities will embrace metrics

49. Successful communities will leverage the Inernet
edpro-weblog.net oedc-connect.net

50. Successful communities will balance open participation
with leadership direction

51. The civic space is The civic space is fragmented and confusing
complex...it appears The Civic Space
fragmented if there
are no connections or
the connections are
weak Source: Ed Morrison
The partial civic space for economic development
in Charleston, SC is highly fragmented
Benchmark Environmental
Collaborative Groups
Marine
Sciences Business
Investors
MUSC COG
Chamber
Chamber
Think
Tec World $
Defense Trade
Industries Center County
Chamber
Alliance
State Partnership
Legislators Digital $
Port County
Corridor
$
Low Country
Graduate Alliance $ County
Center
Workforce
Investment
Board Tourism/
CVB
Higher Ed County County
consortium Low ED ED
Country
Mfg.
Education
Foundation County
Charleston
ED
Other
Mt.
Local and Chamber ED
Pleasant
N. Activities
Base
Charleston Closure

52. Successful communities will take
the “Shanghai perspective”
in all they do
Our View Their View

53. Successful communities will learn the discipline
of Strategic Doing
Develop ideas about
what we can do
together
Find
Evaluations Insights
Execute and Choose
measure Learn Focus what we
results will do
Action Plans Initiatives
Launch
Identify and align
resources to
specific initiatives

54. Strategy Maps help
you organize
strategic issues
Strategic Doing gets
you started
Develop ideas about
what we can do
together
Find
Evaluations Insights
Execute and Choose
measure Learn Focus what we
results will do
Action Plans Initiatives
Launch
Identify and align
resources to
specific initiatives

55. Here is a view of the future...
A dynamic regional innovation economy will
have a range of different communities
connected some connected to each other but
all connected to a regional forum
46

56. Here is a view of the future...
A dynamic regional innovation economy will
have a range of different communities
connected some connected to each other but
all connected to a regional forum
Brainpower
46

57. Here is a view of the future...
A dynamic regional innovation economy will
have a range of different communities
connected some connected to each other but
all connected to a regional forum
Brainpower Innovation
46

58. Here is a view of the future...
A dynamic regional innovation economy will
have a range of different communities
connected some connected to each other but
all connected to a regional forum
Brainpower Innovation
Quality, Connected
Places
46

59. Here is a view of the future...
A dynamic regional innovation economy will
have a range of different communities
connected some connected to each other but
all connected to a regional forum
Brainpower Innovation
Quality, Connected
Branding
Places
46

60. Here is a view of the future...
A dynamic regional innovation economy will
have a range of different communities
connected some connected to each other but
all connected to a regional forum
Brainpower Innovation
Collaboration
Quality, Connected
Branding
Places
46

61. Learn more
IndianaWIRED
www.indiana-wired.net
Purdue Center for Regional Development
edmorrison@purdue.edu

62. Thank you!
IndianaWIRED
www.indiana-wired.net