Ted Levine Speaks on ED Careers

Here are some valuable thoughts that Ted Levine, a leading marketing stalwart in the ED field and the founder of Development Counsellors International, shared with me about ED careers. Having known Ted for many years, I respect his views. Ted is on my top ten list of "All Time Influencers in the ED Field."

Don,

Here are my thoughts on economic development careers:

DCI has in the past 44 years worked with over 400 economic developers; most have been capable and conscientious, but only perhaps a dozen I would rate as "great."

In trying to consider differences between "Great" Developers and "Good" Developers I came up with five key differentiators:

1) Understands that politics is part of the game and indulges in it with relish;

2) Persists with prospects long after most others have given up;

3) Understands that existing business, not new business, is the basis for most local prosperity;

4) Realizes that private business people constitute a more powerful sales force than professional developers; and

5) Never misses an opportunity to keep up to date on meaningful business trends anywhere in the world.

Hope this helps.

-- Ted

Companies Will Do More R&D Offshore

More R&D is headed offshore. Take a look at these facts.

Scattering the Seeds of Invention: The Globalisation of Research and Development is a new paper from the Economist Intelligence Unit on trends and challenges in the globalization of research and development (R&D).

In a global survey of 104 senior executives conducted for the report, 70 per cent reported that their companies (a mix of large and small to medium sized enterprises) already employ R&D staff overseas. A total of 52 per cent of companies plan to increase their overseas investment in R&D in the next three years, while a further 38 per cent will maintain current spending levels over the same period.

39 per cent of business leaders identify China as the top destination for future overseas R&D spending, followed by the USA (29 per cent), India (28 per cent), the UK (24 per cent) and Germany (19 per cent). New Zealand was chosen by four per cent of respondents, equaling Australia, Austria, Ireland, Israel, Norway, Poland and Slovakia.

Some of the main benefits of globalised R&D as identified in the paper include:

-The ability to exploit pools of skilled labour. 70 per cent of those surveyed cited this as a very important or critical benefit of conducting R&D globally.

-The opportunity to reduce R&D costs. According to the survey, companies weigh cost benefits in a range of areas, including lower-cost labour, cheaper land and office rental, and favourable tax regimes. Even so, cost considerations are still of lesser importance than the search for skills or expanding markets.

Key drivers for the globalisation of R&D identified in the paper include:

- The size of the local market, which was an important factor for 76 per cent of those surveyed.
Local R&D expertise in the respondent's industry (critically or very important for 65 per cent of respondents).

- Availability of R&D scientists with appropriate skills (critically or very important for 61 per cent of respondents).

Key challenges for the globalisation of R&D include:

- Protection of intellectual property (IP) - 38 per cent of executives cited protection of IP as a critically important challenge, a higher proportion than for any other issue. Countries where IP protection is strong have a significant advantage in attracting R&D investment.

- Compressing time to commercialise innovation (24 per cent).

- Enabling effective collaboration between international R&D teams (21 per cent).

- Aligning global research activity with business strategy (20 per cent).

- Attracting the best R&D talent (20 per cent).

The report is available from the Economist Intelligence Unit website.

ED 101

All of us must be reminded of the "basics" of our changing profession. This online report, produced by EDA, does a nice job of just that.

Key Links:

Defining Economic Development
Economic Development Theories
Economic Development vs. Economic Growth
Definitions That Address Equity and Sustainability
Why Is Economic Development Important
What Do Economic Developers Do?

EDA Releases Regional Forums Report

Looking for information about what other regions are doing to sustain and spark economic development? Check out this new report by EDA. Download the report here.

OECD World Forum on Key Indicators

In today's rapidly changing, increasingly interdependent world, productive debate and decisions require comprehensive, trustworthy and comprehensible information.

And while there are numerous national efforts to develop and sustain both specialised and comprehensive indicator systems, there exists no co-ordinated world-wide effort to study the development and implications of these large-scale systems of public information for developed countries.

It is for this reason that the OECD, as one of the world’s leaders in the area of developing indicators for policy-making, is organising this World Forum. The purpose is to promote research- and information-sharing among countries, allowing them to compare strategies intended to measure and assess the overall “position” and “progress” of a certain political entity (country, region, etc.) vis-à-vis other similar entities.

The Forum will be more policy-oriented, rather than technical in nature, as indicator systems are about establishing an agreed set of figures for everyone to use to assess the position and progress of their country.

For a detailed overview of the Forum.
For the draft programme of the Forum.
For more information on Indicators work see the OECD's Knowledge Base on National and International Experiences.

More here.

Philippine's Launches New ED Plan

The National Economic and Development Authority (NEDA) recently unveiled the government’s “roadmap” to reduce poverty in the country to below 20 percent by 2009.

According to NEDA chief and Socioeconomic Planning Secretary Romulo Neri, the Medium-Term Philippine Development Plan (MTPDP) takes off from the ten-point agenda of President Arroyo by assessing the current macroeconomic situation and identifying the so-called fighting targets, which include a 7 to 8-percent domestic growth by 2009 and 2010, a 28-percent investment to gross domestic product ratio, and a balanced budget by 2010. Neri added that the plan targets a $50-billion plus exports by 2007 as well as 1.7-million annual job creation by 2009.

“With the successful implementation of this plan, we are also likely to achieve the country’s commitments to the millennium development goals of the United Nations,” said Neri during the MTPDP’s soft launching attended by media. The chief economist noted that the plan stresses vigorous support for some three million micro, small and medium enterprises and agribusiness, as they are the most efficient generators of jobs in terms of jobs to investment ratio.

The NEDA chief added that a key strategy for job generation is the development of two million new lands for agribusiness which is expected to generate two million new jobs and enhance the productivity and incomes of Filipino farmers who comprise a large portion of the country’s poor.

The NEDA chief noted that while the agriculture sector has exceeded production targets, the sector remains uncompetitive due to the high cost of inputs such as fertilizer, chemicals and seeds, large post-harvest losses, and the disruption of extension services due to devolution. Neri said that under the plan, the government will move to make food plentiful for the people at reasonable prices.

“Institutional and regulatory reforms will reduce the price of inputs such as fertilizers, pesticides and seeds. Logistics support to raise distribution efficiency and shorten the supply chain will reduce transport costs and marketing margins,” declared Neri.

The soft launch of the MTPDP came shortly after the draft was presented to President Arroyo and her Cabinet where NEDA was instructed to ensure that the draft would reflect various agency priorities. President Arroyo earlier stressed that the MTPDP follows a “bottom-up,” rather than a top-down approach since the plan’s strategies are based on her consultations and experience during here 3 1/2 years of stint as head of state.

More here.

Idaho Falls: ED is More Than Just Jobs

Here are a few clips from a recent article that I speaks squarely to what ED is all about:

"Too often, people are looking at the short term, as if job creation is the be-all and end-all," said Tim Solomon, executive director of the Regional Development Alliance. "You have to build economic foundations."

"It's about companies adding value, bringing money in and making people more wealthy," he said. "You have to ask, "Can the community be more profitable and the company more profitable simultaneously?"'

Years ago, Solomon wrote a master's thesis on economic development. But when asked for a precise definition of economic development, Solomon said it was in the eye of the beholder.

"There is no common definition of economic development in the world," he said.The success of any economic development effort can be measured by two yardsticks -- a rise in per-capita income and a corresponding decrease in poverty.

More here.

Pennsylvania Invests in Its Tech Initiatives

The Pennsylvania Department of Community and Economic Development announced more than $13.6 million in funding from the Ben Franklin Technology Development Authority, including $2.5 million for the Pittsburgh Digital Greenhouse and $750,000 for the Idea Foundry.

The Greenhouse, based in Hazelwood, was awarded the money through the BFTDA University Grant Program and the University Investment Grant Program for the Electronic Design Technology Development Program. The program will focus on providing a cost-effective mechanism for greenhouse members to collaborate on advanced technology development. Through this collaboration, member firms and universities will identify precompetitive technology challenges and jointly support a set of advanced technology projects to accelerate the creation of new product concepts.

The Digital Greenhouse is a public-private consortium that includes the state and local companies and universities. It works to foster the technology industry in southwestern Pennsylvania.

The Idea Foundry is an Oakland-based nonprofit that is an initiative of private foundations, government, economic development entities and venture capitalists that works to collectively stimulate innovation, new company creation. The foundry was awarded $750,000 from the BFTDA Technology Company Investment Fund for the utilization of the Transformation Fellowship Program, which provides up to $100,000 per company and is used for commercialization resources to advance an idea.

More here.

Utility Supports Economic Development

Pacific Gas and Electric Company recently announced the granting of $294,475 to 58 local governments and community-based organizations for local economic development projects throughout northern and central California. This marks the third year of funding for the company's Economic Development Grant Program, which is supported through PG&E's shareholder-funded charitable contributions program.

More here.

Biopharmaceuticals Big in Texas

National biopharmaceutical companies were responsible for creating more than 12,000 jobs in Texas in 2003, according to a new report from the Santa Monica, Calif.-based Milken Institute, an independent economic think tank.

The report, released on Tuesday, focuses on the economic impact of the biopharmaceutical industry and includes such indicators as job creation, economic output and taxes paid on a national and state-by-state basis.

The report found that 2.8 jobs are created for every new biopharmaceutical position in Texas. And with 12,311 high-skilled, high-tech jobs created by biopharmaceutical companies in Texas in 2003, the report is projecting that companies will directly create an additional 13,110 jobs in the state by 2014.

By 2014, nearly 59,376 jobs will be created indirectly from those new biopharmaceutical industry positions, the study predicts.

More here.

American Jobs Creation Act

Here are a few clips from a recent editorial in the St. Petersburg Times regarding the American Jobs Creation Act. Take heed.

"Here is one way to know that Congress has passed a really bad bill - it gives the bill a title that is contrary to its purpose. So when lawmakers passed the "American Jobs Creation Act" the other day, a more accurate name would have been "Corporate Tax Giveaway Act."

At a cost of $140-billion, the corporate tax bill gives breaks to a long list of business giants. Home Depot gets to suspend a duty on ceiling fans imported from China, saving $44-million. NASCAR can accelerate depreciation of its grandstands, for a windfall of $101-million. General Electric will reap billions, and other multinational companies can avoid 85 percent of their income tax obligation on foreign profits. (Some companies, including Hewlett-Packard, admit they will use the money for purposes other than job creation.)"

More here.

New Orleans ED Leaders Head to NY City

In an effort to promote the New Orleans region as a place to do business, a contingent of business and political leaders will travel to New York next week to meet with corporate relocation executives and business journalists.

Louisiana Lt. Gov. Mitch Landrieu, New Orleans Mayor Ray Nagin, St. Tammany Parish President Kevin Davis and Louisiana Economic Development Secretary Mike Olivier are among those scheduled to participate in the trip, which was organized by Greater New Orleans Inc., a fledgling regional organization formed last year by leaders of the New Orleans Regional Chamber of Commerce and its MetroVision economic development arm.

The officials are scheduled to meet with reporters and editors from The New York Times, The Wall Street Journal, The Economist, Newsweek, and Forbes, as well as site selection consultants who advise corporations on where to locate or expand operations.

More here.

How Marietta, Ohio is Recovering from the Floods

The Marietta area was severely impacted by the recent floods caused by the tempestuous hurricanes of September. Click here to see how the area is rallying in response to the flooding that took its toll on this feisty Ohio River town.

Maine Job Quality Lag

A new study finds that a quarter of the jobs in Maine do not pay enough for a family of four's basic needs in housing, transport, education and food. About half of the jobs here provide no pensions or sick leave.

The findings echo recent evidence of the lower quality of service-industry jobs, compared to the manufacturing positions they replaced. One in 12 Mainers now holds more than one job, compared to the national average of one in 20, the report said.

"The very high percentage of working families (below poverty level) is really alarming -- it's bigger than we imagined," said Lisa Pohlmann, associate director of the Maine Center for Economic Policy and co-author of the report.

More here.

Immigration in Britain

Britain's immigrants used to come from its former colonies. Now they come from all over the world—especially Africa.

For much of the 20th century, immigrants into Britain followed, in reverse, the paths trodden by imperial administrators. Ex-colonies in Ireland, the West Indies and the Indian subcontinent supplied the largest groups of settlers. But history and proximity matter less these days. Since 1999, countries outside the Commonwealth and the European Union have been larger net exporters of people to Britain than the other two sources combined.

The 1991 census recorded fewer than half as many black Africans as Afro-Caribbeans in Britain. In 2001, the numbers were 485,000 and 566,000. Since then, the balance has tipped. Four out of the past five quarterly Labour Force Surveys estimate the black African population as equal to or greater than the Afro-Caribbean population, and the most recent survey puts them well ahead at 618,000. The oldest ethnic minority group to arrive in Britain in any numbers has been overtaken by the newest.

Immigration and asylum are part of the reason: last year, African settlers outnumbered West Indians by almost ten to one. But the way the groups behave in Britain also explains the speed of change. Many newly arrived black Africans have large families, while West Indian households are as small as those of whites. That helps to explain why, in 2001, 55% of black Africans in Britain were under the age of 30, compared to just 37% of Afro-Caribbeans.

More here.

Tips for Economic Development Websites

Here is some general business Web advice that is also applicable to economic development. As they say, read and heed:

Ten Things to Do to Lose Online Customers

10. Shower consumers' screens with as many pop-ups and banners as you can. As consumers surf the Web, make sure you are in their face as much as possible.

9. Invade consumers' privacy. Collect as much personal information about them as possible. Even if the information has no relevancy to the product or service they are about to purchase. For example, if you are pitching the latest weight loss product make sure you collect consumers' Social Security numbers.

8. Don't worry about sending ads that feature products and services that are of specific interest to the consumer. Sooner or later one will grab his or her attention.

7. Play hard to get. Make it tricky to respond to your ad. And when users do register on your website, make them spend a lot of time providing you with more information than necessary.

6. Breaking up is hard to do. Make sure you have the latest sypware so that it is difficult to unsubscribe or exit from your website.

5. Ignore their preferences for hearing from you. You decide how you will communicate with them and when. Dinnertime is perfect for a telephone sales pitch.

4. Challenge them to locate your online privacy policy. Who reads it anyway?

3. If they have a problem with your product or service, that's too bad. Don't tie up your phone lines and customer reps with disappointed customers.

2. Make as much money from your customer information as possible. Share customer data with anyone who wants it. But be careful about how you describe your sharing practices in your privacy policy. The FTC is a bit sensitive about companies that clearly state in their privacy policy that they don't share when they really do.

And, the Number One way to lose a customer:

1. Customers don't have a right to privacy. If they complain, tell them to get over it!

More here.

Blogs Catching on in Business

Once the domain of the disgruntled and demented, Web logs are being embraced by business executives. More here.

Green Communities Fund

Here is a smart growth resource you should know about.

Green Communities is a five-year, $550 million fund to build more than 8,500 homes across the country that provide significant health, economic and environmental benefits to low-income families and communities.

This effort is a partnership of The Enterprise Foundation and the Natural Resources Defense Council (NRDC), along with the American Institute of Architects, the American Planning Association and leading corporate, financial and philanthropic organizations. Over time, Green Communities will transform the way Americans think about, locate, design and build affordable homes.

For more information visit the resource link below. Resource: http://www.enterprisefoundation.org/resources/green/index.asp

Hospitals' Economic Impact Assessed in Pennsylvania

Pennsylvania's hospitals annuallycontribute nearly $56 billion to the state's economy, according to a newreport released today by The Hospital & Healthsystem Association ofPennsylvania (HAP). Beyond Health Care - Pennsylvania Hospitals: Key Assets tothe State's Economy shows the positive effects Pennsylvania's hospitals haveon entire communities.

The report updates a 2003 HAP study and presents newdata from HAP and other sources. "Hospitals are cornerstones of their communities, providing quality careto all who come through their doors," said HAP President and CEO Carolyn F.Scanlan. "Pennsylvania's hospitals are also economic catalysts, providing aconstant source of stable, well-paying jobs; stimulating multiple businessopportunities in other fields; serving as buyers of local goods and services;and contributing to the tax base at the state and local levels.

"Pennsylvania's hospitals are home to technological innovations andmedical breakthroughs, and they are safe havens for Pennsylvania's poorest andmost vulnerable citizens."

Among the report's findings, Pennsylvania's hospitals annually:

-- Provide a total contribution of nearly $56 billion to the state's economy.
-- $23.4 billion in direct total spending.
-- $32.3 billion in secondary spending.
-- Support the employment of almost 523,000 Pennsylvanians.
-- Nearly 262,000 in direct employment.
-- Nearly 261,000 in secondary employment.
-- Generate total labor income of nearly $20.4 billion.

More here.

Penn State Study Underscores Large Business Importance in Pennsylvania

Big firms are fundamental building blocks of the Pennsylvania economy. In the 19th century, the state stood apart from its neighbors with its huge steel mills, mines, an industrial factories. In the 20th century, its large firms in material processing, producer goods, and commercial industries defined the magnitude of the state’s
wealth. At the dawn of the 21st century, big firms and their establishments remain a critical structural component of the state’s economy.

The analysis further shows that large plants in Pennsylvania substantially influence local economies by not only providing a significant share of all jobs, but by paying higher average wages and exhibiting higher levels of productivity compared with smaller establishments. Employees working in big establishments (>250
employees and >500 employees) receive high relative wages. The pattern of high wages associated with large plants is surprisingly consistent across industrial states, including Pennsylvania, from the early 1960s through the recession of 1982. These premiums have continued to increase over time and on average represent a 15 percent difference in wages compared with other smaller establishments. Productivity differences between big and small establishments also are evident at the national level.

More here.

Maine Rates Legislator's Economic Votes

Click here to see the voting record of Maine's legislators on key economic development issues affecting the state. This is an interesting idea for others to consider.

Washington Alliance for a Competitive Economy Report

I ran across a very interesting 2004 report on how Washington State plans to increase its economic competitiveness. It's called the Washington Alliance for a Competitive Economy report. Here is the vision statement from the report:

"Washington must be a state where business can operate cost-effectively, and a state that does not shirk its responsibility to invest adequately in infrastructure and education. It must be a place that preserves environmental quality and minimizes costly and unnecessary regulatory burdens that block capital investment. It must also be a place that cultivates cutting-edge R&D, nurtures the emergence of dynamic knowledge industries, and sustains existing technology firms while recognizing the importance and unrealized potential of agricultural, natural resources and manufacturing industries."

Download the report here.

What's It Like to Work in ED

Check out this section of the UNC, Chapel Hill's website that discusses several examples of people working in the economic development field.

We need to see more of this. Educators and ED associations should give more attention to how education furthers professionalism in the field and give examples of people's careers in the field.

Nice job!

Go here.

New National Urban Entrepreneurship Initiative Launched

The National Urban League, White House National Economic Council, the Ewing Marion Kauffman Foundation and the Business Roundtable for the launch of a new national partnership that will work to encourage the growth, support and financing of minority businesses nationwide with the goal of making a positive economic impact, particularly in historically neglected, or economically underserved urban areas.

The Urban Entrepreneur Partnership will establish one-stop economic empowerment centers for business training, counseling, financing, and procurement opportunities to minority and urban business owners, drawing on the resources and expertise of local business leaders, foundations and government. Five pilot cities have been named for the initial effort: Atlanta, Cincinnati, Cleveland, Jacksonville, and Kansas City.

Here to read more.

Ottawa's Entrepreneurial History

Entrepreneurship evolves in regions over time. For some insight into how entrepreneurship has grown over the past 150 years in Ottawa, Canada, check out this recent article. Read it here.

Japanese Venture Funds Growing

While lagging many countries, Japan's venture funds are showing signs of growth. Click here to read more about this development.