New Tools for Regional Development: Open Source Economic Development & Strategic Doing

New Tools for Regional Development:Open Source Economic Development &

Strategic Doing

PCRD Conference: Regional Innovation During Boom & Bust

South Bend, IndianaJune 26, 2009

Scott HutchesonPurdue Center for Regional Development

Purdue Extension

Our Grandfather’s Economy

Wealth was built at a rate the world had never before experienced

First Curve – Wealth driven by vertical business models

The S Curve Caught Up with Our Grandfather’s Economy

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

The First and Second Curves

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Movies in the 1st & 2nd Curves

MGM 56 Companies

Telecommunications in the 2nd Curve

From Hierarchies to Networks

Economic Development in the 2nd Curve

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Our job is to manage the transition between our

grandfather’s economy and our grandchildren’s economy

An “Open-Source” Approach

2nd Curve economic development strategies involve linking and leveraging assets in five “asset networks:”

– Talent & Brainpower– Entrepreneurship & Innovation– Quality Connected Places– Branding & Storytelling– Regional Civic Leadership

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Integration of Perspectives

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Success in the 2nd Curve

In the 2nd Curve, prosperous communities will be the ones with strategies that…• Build world-class brainpower• Translate brainpower into wealth through innovation

and entrepreneurship networks• Create quality, connected places where “hot spots”

can develop• Create a buzz with a new set of stories• Continuously strengthen habits of civic collaboration

Talent & Brainpower during the Recession

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Align, Link, and Leveraging Talent & Brainpower Assets

Workforce DevelopmentEconomic Development

UniversitiesCommunity College

IndustrySocial Services

SBDC

Innovation & Entrepreneurship

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

A Culture of Innovation

• An innovative business is one that launches new products or services each year (15% of businesses are typically innovators)

• Innovative businesses usually have high growth trajectory

• When 50% of business are innovators you have an innovation culture

Innovation Isn’t Always High Tech

• A BBQ restaurant starts bottling and selling sauce

• A dry cleaners develops a new “green” process and licenses the new process

• A beauty shop develops a new way to train stylists and goes nationwide

http://www.acenetworks.org/upload_files/file/Regional%20Flavor%20June.pdf

Quality Connected Places

Infrastructure that allows people and ideas to move freely and cluster easily

– Vibrant public spaces and third places– Accessible broadband– Multi-mode transportation– Innovation hubs

Branding & Storytelling

Tell Positive Stories & Create a Brand with a Buzz (internally & externally)

Linking & Leveraging Assets Requires Civic Collaboration

• No single person, organization, or institution has all the answers

• No one is in charge• Mass participation

AND strong leadership is needed

Civic Network Continuum

Turf

Trust

TIME

SharingResources

Sharing Information

MutualAwareness

Co‐Execution

Co‐Creation

Acknowledging Exploring Cooperating Collaborating Innovating

You have to walk before you run

Adapted from Collaboration Continuum from ACT for Youth

We need to move our thinking from events and “programs” to processes….

Communities are moving toward civic process that focus on Strategic Doing

Strategic Doing Helps Build Networks

Strategic Doing1. What could we be doing together?

– Exploring our assets to find new opportunities2. What should we do together?

– Focusing on one opportunity at a time and defining, as clearly as possible, the “strategic outcomes” we want.

3. What will we do together?– Launching new initiatives by aligning our resources with “link

and leverage” strategies.4. What are we learning together?

– Learning what works by executing and measuring what happens

Civic Networks…

• Spot opportunities quickly

• Mobilize assets strategically

• Use resources effectively

• Learn efficiently

What Does Success Look Like?

No Single Big Strategy Many Modest Strategies

ContactScott Hutcheson

Assistant Program Leader, Economic & Community DevelopmentPurdue University

Purdue Extension & Purdue Center for Regional Development

Burton D. Morgan Center for Entrepreneurship1207 W. State Street, Room 227

765-494-7273 (office)765-494-3200 (fax)

765-479-7704 (mobile)[email protected]

http://pcrd.typepad.com/ecd (blog)http://www.twitter.com/jshutch64 (Twitter)