Regional ED Partnerships: Is There a Theory Behind Them?

Regional economic development partnerships are the rage. Is there a theoretical basis for this flurry of cooperation by communities and counties within the same economic region? According to researcher Julie Cencula Olberding from the University of Kentucky, there is a theoretical foundation. She calls it "the norms-based theory of regional partnerships for economic development." What does that mean? In short, it means that cooperative social norms provide explanation for a good bit of the partnering by local governments and private sector development organizations in sub-state regions across the U.S. In other words, our values are telling us to work together with those facing common problems and opportunities. Not a bad idea.

Cencula-Olberding did empirical research on 244 metro areas and found that 147 of them had at least one regional partnership for economic development. And you thought you had the only one? Check again. Her research provides some support for the claim that "cooperative norms" explain--at least in part--why more partnerships are being formed. Are other factors at work here? I suspect they are, but Cencula-Olberding's research helps us to understand that there is at least a partial theoretical explanation for why EDO's are organizing more regional partnership type organizations.

Julie Cencula Olberding's article "Does Regionalism Beget Regionalism" was published in July-August 2002 issue of Public Administration Review (Vol. 62, No. 4, pg. 480-491.) Here is the PAR's website. (To get the article, you will either need to subscribe to the journal or have access to the electronic version of the journal.)

Are regional partnerships more effective than other organizational approaches to ED in achieving their goals? The study does not really address this question. That is another study for the future. If you talk to practitioners like Rick Weddle (Greater Phoenix), Ronnie Bryant (Pittsburgh region) and a number of other ED executives running regional programs, they will tell you that regional approaches are more effective. They may qualify that statement by saying "if done right."

Regionalism is not only the rage in the U.S., but it is well-embedded in economic development strategy across Europe, Australia and New Zealand and Asia. Actually, the Europeans are ahead of the U.S. in this area.

We will be sharing more about regional ED policies and strategies very shortly. Stay tuned.