38
“Hidden” Assets for Economic and Community Development January 16, 2014 – Tell City, IN Scott Hutcheson, Ph.D. Purdue Extension Purdue Center for Regional Development
“Hidden” Assets for Economic and Community Development
January 16, 2014 – Tell City, IN
Scott Hutcheson, Ph.D.Purdue ExtensionPurdue Center for Regional Development
Goals for Tonight
• Learn about our community’s “hidden” economic and community development assets
• Understand how other communities are developing asset-based economic growth strategies
• Consider how you could better leverage your unique assets in Perry County
Our Grandparents Built the Indiana Economy on Our Assets
• Rich soils• Waterways: Lake
Michigan and the Ohio River
• Crossroads of America
What were our community’s greatest economic assets 100 years ago?
Our Grandchildren Will Inherit an Economy Based on a New Set of Assets
• The Talent of Our People• Our Most Vibrant Industries• Our Capacity for Innovation• Our Fastest Growing Companies• Our Unique Story• Our Special Places
Our Grandchildren Will Inherit an Economy Based on a New Set of Assets
• The Talent of Our People• Our Most Vibrant Industries• Our Capacity for Innovation• Our Fastest Growing Companies• Our Unique Story• Our Special Places
The Talent of Our People: Occupational Clusters
• 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
Occupational Cluster: Ideas in Action
Bring together Information Technology professionals to foster new ideas for high tech start-ups
The Talent of Our People
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.
Occupations Perry Indiana
Agribusiness, Food Technology 3.36 1.27
Skilled Production Workers 1.45 1.25
Engineering and Related Sciences 1.00 0.93
2012 Data
Occupational Clusters: Questions to Consider
• 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?
Vibrant Industries: Industry Clusters
Industry Clusters can be nurtured and supported
– Articulated– Activated– Accelerated– Accessing
Industry Clusters: Ideas in Action
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
Industry Clusters: Our Community’s Most Vibrant Industries
Cluster Perry Indiana
Forest & Wood Products (12) 4.53 2.65
Agribusiness Food Processing & Technology (10)
1.70 1.19
Advanced Materials (9) 1.63 2.41
Life Sciences (17) 1.19 1.17
Number of Establishments (data for 2012)
Industry Clusters: Questions to Consider
• 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?
Our Capacity for Innovation
• 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.
Innovation Index: Ideas in Action
Think of a high ratio of “small firms” as an asset and launch a business growth program
Our Capacity for Innovation
Perry
Our Capacity for Innovation
Innovation Index: Questions to Consider
• 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?
Our Fastest Growing Companies: Second-Stage Firms
• 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
What Do Second-Stage Businesses Need?
• 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 right
Second-Stage Firms: Ideas in Action
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
Second Stage Firms in Our Community
Establishments Jobs
Size of Firm Indiana Perry Indiana Perry
Self-Employed 29% 33.3% 3.7% 5.7%
Stage 1 (1-9) 59.3% 57.3% 23.2% 31.4%
Stage 2 (10-99) 10.5% 8.4% 35.2% 34.4%
Stage 3 (100-499) .1% 1% 22.5% 28.5%
Stage 4 (500+) 0.1% 0% 15.5% 0%
Second-Stage Firms:Questions to Consider
• What insights do we gain by considering the role of second-stage companies in our local economy?
• What do we currently offer our second-stage firms?– Companies to Watch– Participation in the Indiana Business Growth
Network
Our Unique Story
• Every community has a unique 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 hearing about us.
• We have the power to shape these stories.
Lots of Ways to Create Stories…
New Narratives: Ideas in Action
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
Our Stories: What’s the Buzz
Our Stories: What’s the Buzz
Our Stories: What’s the Buzz
Our Special Places: Infrastructure
Traditional• Roads & Interstates• Rail• Water• Electricity• Water & Sewer
Emerging• Public Spaces• Sidewalks• Trails• Bike Lanes• Third Places• Broadband• WiFi
Public Spaces: Creating Economic, Social, and Environmental Value
Public space is all around us, a vital part of everyday urban life: the streets we pass through on the way to school or work, the places where children play, or where we encounter nature and wildlife; the local parks in which we enjoy sports, walk the dog and sit at lunchtime; or simply somewhere quiet to get away for a moment from the bustle of a busy daily life. In other words, public space is our open-air living room, our outdoor leisure centre.
The Value of Public Spaces: How High Quality Parks & Public Spaces Create Economic, Social, & Environmental Value, Bartlett School of Planning, University College London.
Public Spaces: Ideas in Action
Three Oaks, MI• Renovated dilapidated downtown
theatre to show classic films – Opened in 1996 with a showing of Citizen Kane.
• Opened art gallery in the lobby• Now a ‘fine arts” theatre• Averages over 1,000 customers
per week• Community now hosts film festivals
Public Spaces
116.4
Public Spaces
94.4
The Real Power Is in…
Combining Assets in New and Innovative Ways – Linking and Leveraging
Small Successes Add Up
No Single Big ANYTHING
Many Modest SOMETHINGS
More Information
• 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/• National Maple Syrup Festival – http://www.nationalmaplesyrupfestival.com• Purdue Guitar Summer Camp - http://metalsound.tech.purdue.edu/default.aspx• Ball State Community Assets - http://asset.cberdata.org/
