Two Ends of the Same Continuum

Cooperation and competition are not two separate things in economic development. They are simply different ends of the same continuum. A good and effective ED organization can both cooperate and compete. Above all, it can take a cooperative approach to competing for opportunities.

Five Essentials for a Good EDO

They are:

1. A compelling purpose.
2. Dedication to acting in line with that purpose.
3. Stewardship by those who lead.
4. Willingness and ability to work with others.
5. Ability to learn, change, and improve.

Chicago Power Connections

Check out this list to identify the people in Chi-Town who can make it happen.

World Bank Study of Global Business Environments

A new study shows that bad regulations are a huge brake on global growth. But reforming or repealing them is easier than you think. Read more here. This is an interesting read.

China's Industrial Growth Continues

The latest measure is nearly 16% growth. Not bad for a country that is trying--supposedly--to pace its growth in the future. Go here to read more.

Phoenix Economic Growth Remains Brisk

Greater Phoenix's economy is expected to roar on in the short term. That is the opinion of a panel of local economists who met to compare notes on where the Phoenix economy is headed. The real issue, as Phoenix area economic developers know, is 'quality' growth. Click here.

Local ED Worldwide

We have been tracking ED trends worldwide. Here is a regular place we look for ideas. Give it a look. Click here.

Native America at the Millennium

It is impossible to weave a concise and meaningful summary of the state of Native America at the new millennium without losing a sense of the cultural richness and diversity that characterizes Indian Country. The experiences, concerns, problems, and successes of tribes and individuals are as varied as the American Indian and Alaska Native peoples themselves.

Download the report here. (Couple years old but very insightful)

Workers and Jobs in Pittsburgh Region

Click here to download an interesting analysis of workers and jobs in the Pittsburgh region. Good one.

Analysis of Latest Income Data

Click here for a summary by the NE-MW Institute of the latest state personal income data. Good metrics data for states.

MBA Programs Suffer Nationwide

A shrinking pool of young adults, a dearth of international students and a tight job market are reducing demand for traditional, two-year master's of business administration programs across the country.

In a national survey conducted by the Graduate Management Admission Council, 78 percent of traditional full-time, two-year programs reported a drop in applications this year. It was the second straight year of decline.

More here.

Business Goes for Bush

Despite common perceptions, business -- especially big business -- has never been monolithically Republican. Executives have been far too pragmatic for that. They have long used campaign giving to buy their way into the offices of both Republicans and Democrats. Until now.

Business interests have decided to choose sides in this presidential election year. And the result will likely be a boon to President Bush and his fellow Republicans.

The shift hasn't been absolute, of course -- nothing in politics is. But everywhere you look, there are signs that corporate America is growing less and less evenhanded, and more and more Republican.

More here. (Free registration required.)

Vocational Education Struggles

Vocational education is suffering in many places, and not just because of lack of students. There are other problems, as a recent LA Times article describes.

In 1987, the earliest year for which the state has data, nearly 27% of California high school students were enrolled in at least one industrial vocational education class. Today, only 15% of students are taking such classes.

Over virtually the same span, membership in the California Industrial Technology Education Assn., which includes trade instructors, has plummeted from 5,000 to 350.

Several factors account for the declining numbers. Until the mid-1980s in many school districts, minority students were often disproportionately shunted toward vocational education classes. Although recent research indicates that such race-based tracking has largely been eliminated, urban districts continue to encounter minority parents reluctant to enroll their children in vocational classes.

A changing economy that includes growing healthcare and technology sectors and declining manufacturing industries has also made some vocational program obsolete.

More pressing, however, is money. Running equipment-dependent vocational programs is expensive, and in the competition for classroom dollars, those programs fade on priority lists.

More here. (Free registration required.)

Jobs and the Economy

The 313,000 jobs created in the last three months are hardly enough even to keep up with population growth, which on its own adds about 150,000 people to the labor supply each month. Though wage growth picked up in July, salaries are still treading water. Average hourly wages of production workers and nonmanagerial service employees are 2.5 percent above what they were a year ago, not quite enough to keep up with inflation.

Consumers have supported the economy almost single-handedly over the last two years, spending the proceeds from tax cuts and borrowing to refurbish their homes and to buy cars and other durable goods.
But the effect of the tax stimulus is waning. As interest rates rise, the resulting costs are reining in mortgage refinancing and other household credit growth. From now on, workers' spending will depend more on wage income.

Against this backdrop, it is perhaps unsurprising that consumers are not feeling great. Last month, the Conference Board's index of consumer confidence - which aims to measure the outlook on jobs and overall economic conditions - fell for the first time since April. According to the International Council of Shopping Centers, sales at stores of the nation's big retailers recorded the slowest growth since June 2003.

More here. (Free registration required.)

Germany Sharpens Biotech Focus

Is Germany a factor in biotech? You bet it is.

The leading German federal states are Bavaria (85 firms), Baden-Württemberg (67 firms), North Rhine-Westphalia (42 firms), and Berlin (26). A three-year analysis shows that “among the five strongest states Baden-Württemberg and Lower Saxony had an increase in the number of enterprises despite the current situation.” The key business areas of the study’s sample companies were, in order of prominence, therapeutics, molecular diagnostics, drug delivery, food (including diagnostics), tissue engineering, bioinformatics, transgenic plants, and fine chemicals.

More here.

Offshoring a Threat to Mexico

As more corporations look to serve the North American market, the competition for corporate manufacturing facilities and their respective jobs has increased. Canada, the United States, and Mexico are all vying to attract new companies and keep existing firms. Increasingly, these countries are seeing an exodus of manufacturing jobs to China and other low-cost labor locations. Even Mexico, which has been a major magnet for manufacturing growth due to its low wages, has now seen companies leaving for the even lower wages in China.

To help stem this exodus, many state, provincial, and local governmental bodies in Canada, Mexico, and the United States have developed incentive programs to lure and keep corporations. And incentives are not limited to the much-publicized giant auto assembly plants — many are available for projects with as few as 50 new jobs. Incentives are proving to be a critical factor when combating the attractiveness of lower-cost labor in Asia.

Is fighting back with incentives enough? My guess is that it is not! More here.

Retiring Baby Boomers

In every state, every industry, a quiet cultural change is slowly but surely reshaping America's work force. The nation's 77 million baby boomers are beginning to bow out of the work force.

How will employers and areas cope with this important challenge? Click here to read an interesting article on this topic. (Look in the August 2004 issue.)

Northern Ireland's ED Strategy

Click here to learn more about Northern Ireland's plan to attract and grow new industry. Interesting ideas.