Med Tech Business Best Practices

Heed the results of a Fall 2004 study by the Boston Consulting Group on what helps medical technology companies innovate best. All these life science and biotech centers around the world trying to promote innovation and commercialization of innovations should read this one.

In a recent benchmarking study of 31 divisions representing 19 medical device, diagnostic, and equipment companies in the United States, Europe, and Japan, the Boston Consulting Group uncovered the best practices for managing research and development (R&D) that are shared by the top medical technology firms.

The companies that performed best across various benchmarking categories, the study found, were those that implemented clear R&D governance, processes, and principles; monitored the right metrics to measure the performance and behaviors that matter; and deployed incentives that truly reward and motivate inventors. These firms all managed their R&D portfolios with experimentation, refinement, precise measurements and controls, and careful decision making based on outcomes—processes that mirror those in the lab. Thus, BCG characterizes these core processes and behaviors as a High Science approach to R&D management.

More here.

East Germany's Investment Successes

In less than a decade, nearly 2,000 foreign companies from over 40 countries have invested in eastern Germany, of which 300 are from the US. American companies including Dow Chemical, AMD, Motorola, Coca-Cola and General Motors; British companies including Rolls Royce, Colortek; French companies including Vivendi and TotalFinaElf; and Japanese companies including Sony and Fujitsu have invested in eastern German. Read more here.

Blogging Expected to Be Big in 2005

Surprise. Surprise. Companies are catching on with the "blogging thing." I could have told them it was a good idea more than two years ago. Oh well, so much for being ahead of your time. More here.

2005 Economic Outlook: Fairly Promising

According to Action Economics, the new year looks promising from an overall economic output, productivity, and even job growth standpoint. Job growth prospects are expected to improve, but may continue to fall short of the most aggressive forecasts being made. Here for more.

Did You Know?

IBM is investing £20 million in a life sciences institute at UK-based Swansea University that will conduct cutting edge research in medical imaging, genetics and information handling for doctors.

Red Hot Locations

Think your area is one?

Check the organization by that name Red Hot Locations, and see what they say.

Click here to find out what the 2005 World Forum for Direct Investment is all about.

Australians Say It In One Line

I am always on the lookout for concise ways to convey the overall purpose or underlying meaning of things in life.

Here is a one-liner that says everything about what Australia is attempting to do through its inward investment efforts:

"We attract productive foreign direct investment into Australia to support sustainable industry growth and development." Source: Invest Australia.

One to Learn From

Check out what Kent, UK is doing to encourage and assist economic development. They get a hat tip from me. Click here to learn more.

Indian Tribes Make Economic Gains in 1990s

American Indian tribes made some economic gains during the 1990s, though tribal gambling operations offered no major edge in boosting incomes, according to a new Harvard study.

The analysis was based on 1990 and 2000 Census numbers. Per-capita income rose about one-third for both gaming and nongaming tribes, though it still remained below $10,000 for both groups.

Although tribes with gambling operations had generally higher incomes and lower unemployment, gaming did not play as significant a factor in economic gains as the Harvard researchers had expected when comparing census data from 1990 and 2000.

Read the source article here. Download the report here.

Northern Ireland Looks to India for ED Partnerships

Here you there. This is an example of what I have been talking about. Northern Ireland is exploring ties with India to develop business and jobs. More here.

Indiana Proposes New ED Structure

It's all about change. Indiana is looking at re-organizing its state ED organization, replacing its Department of Commerce with a new commission, which the Governor and 11 other members would control. Here for more.

Hampton Roads, VA: It's All About Job Mix

Here is an interesting article that discusses the issue of what types of jobs does/should EDOs work to develop and keep.

Acording to the economic development folks in Hampton Roads, VA, the best approach is to develop a "mix" of jobs that meet the various skill levels and aspirations of residents/workers.

I agree. My question is: "Are we skillful enough to really do that?"

State Site Selection Rankings: Buy Your Way to the Top

That is pretty much the message in an editorial piece appearing originally in the Providence, R.I. Journal. The article says that the way to get to the top of Site Selection Magazine's State Rankings List is to "buy your way to the top" by giving away more incentives than other states. Moreover, the article says that there is no research proof that incentives really work.

This is an age-old debate, and one that I have been in and out of for many years. I agree that there is no scientific proof that incentives actually work in a cause-effect sense. But they do work in the dog-it-dog world of business, where firms will extract a pound of flesh in any way they can from their suppliers, their customers, government, and the communities where they do business. That is real, and that means that incentives do make a difference in whether one place or another gets the business investment deal.

Read the article and see what you think. My guess is that you will fall into one of two categories in terms of your reaction: 1) like a lot of other economic developers you will resent the article because it puts you between a rock and a hard place with the businesses who are your customers and they want the freebies; or 2) like a lot of other economic developers you will quietly say a prayer that all places on Earth decide to in unison lay down their incentives in an international disarmament that does away with these nasty two-edged swords.

Global R&D Spending

"China doubled its spending on research and development between 1995 and 2002, calculated as a percentage of GDP, from 0.6% to 1.2% of GDP. Over the same period, Israel increased its spending from 2.74% to 4.72% of GDP, a ratio higher than that of any OECD country. By comparison, overall spending in OECD countries on research and development rose only moderately in proportional terms, to 2.26% of GDP from 2.09% in 1995, but it declined from its peak in 2001 of 2.28% of GDP."

Source: OECD. More here.

One to Think About

"The $40 trillion world economy is dangerously out of balance. America is guilty of excess consumption — whereas the rest of the world suffers from under-consumption."

--Stephen Roach, Morgan Stanley chief economist, November 2004

Corporate Global Citzenship: Implications for Economic Development

This is an issue for economic development! Click here to read a thought-provoking article on corporate global citzenship. It talks about companies' increased commitment to helping advance social development, diversity, environmental protection, and a raft of other objectives on a global basis.

I agree with many of these objectives. Corporations should become more socially responsible and they should become better global citizens, but I think there is more to the equation than meets the eye at first glance. I think there are some very important questions that economic developers should be asking themselves about what corporate global citizenship will mean in the future to U.S. local economic development.

What does it mean to economic development when corporations say they are taking more steps to become "better global citizens?"

Does it mean they will be looking beyond their U.S. business operations and interests? Well, they are already doing that!

Does it mean they will start looking beyond national boundaries when they account for their overall financial performance? Well, they already do that!

Does it mean that they will support the economic development of other areas worldwide over their interests in their homeland. I think that is exactly what they might be saying. So, where does this leave economic development in American communities, regions, and states? I think we are in store for some MAJOR changes in the coming year and beyond in this regard.

In my line of thinking, this is exactly why economic developers need to step up their efforts to build national and global economic partnerships--to ensure that local economies in America stay connected with new opportunities thrown off by the global economy. Click here to read a collection of recently published articles on this subject, including one by me.

What do you think?

Where Does This Leave Quality Jobs?

Here is a provocative quote by Forbes Magazine writer Robin Meredith on the global economy and job pay: "There's no law that says Westerners deserve to be paid ten times more than Asians for the same work, whether the work is white collar or blue collar."

If this is true, where does this leave the campaign to keep and create "quality" jobs in America?

Click here to read more.

Tourism 2005: Cultural Travel

If cultural travel is the thing in 2005, how will your area's tourism industry come out in the race? Click here to read an interesting outlook by Forbes Magazine on the subject.

Simulation and Training Sector

Click here to learn more about how Florida intends to build upon its growing "simulation and training sector" as a future growth industry.

Interesting!

Iowa's Pitch to West Coast Venture Investors

Trying to lure venture capital to your area? Take a note or two from Iowa's new strategy to accomplish this objective. Click here to read more.

Social Capitalists

Fast Company Magazine publishes an annual ranking of social capitalists across America. It is a fascinating list. This is a must read as you think about what your ED organization does. Could it be that some economic developers are social capitalists?

Click here and here to read more.

Broadband Enabling Talent Migration From Silicon Valley

If you are debating whether to "wire" your community with high-speed Internet capabilities, click here to read how broadband is enabling former-Silicon Valley types to move to more affordable and livable places. (Not that the Valley is not a great place, but why pay $3.5 million for a house when you get buy it for $500,000? And why spend 2.5 hours commuting each day instead of 30 minutes?) Telecommuting should be given greater attention in economic development.