Poetry by an Economic Developer

We are pleased to announce that Don Iannone's new poetry book, Stilling the Waters, is now available from Medicine Wheel Publishing Company.

To learn more about the book, please click here to download the book cover and read what reviewers had to say about the book. Click here to download the book's table of contents and a couple poems from the book. Finally, click here to download the book order form.

Contact the author Don Iannone by email at: diannone@ix.netcom.com; or by phone at: 440.449.0753 if you have any questions about the book, purchases, or related matters.

New Skill Set for Economic Developers?

What if economic developers were trained as facilitators grounded in the skills of complexity science? Huh? Why would we do that? Well, click here to download a paper on how complexity science principles can be incorporated into process facilitation.

When Physicists and Economists Meet

I know what you're trying...why would they do that? Click here to find out. I am trying to tease you to think in the direction of complexity science and its relevance to economic development.

The "Econophysics" of Wealth Distribution

What's that? Click here to find out. I think you will find it an interesting read. Not the sort of practical stuff that can help you do the next deal with General Motors, but one to make you think about how new scientific models are needed to understand economic reality.

Aging Workforce an Issue in Korea

Check out this article on Korea's workforce.

Offshoring: View From a Hong Kong Window

I always find it interesting to hear what people in other places have to say about economic development. Frankly, we need to hear what it looks like from somewhere else. Take a seat in Hong Kong and see what kind of an article you might write about offshoring. Click here to see the results.

India Inc. Globally Competitive

Here is a good article on India's competitive gains. A wortwhile read.

Cleveland Looks at Downtown Tax Break

Will tax breaks bring businesses and jobs downtown? Cleveland Mayjor Jane Campbell thinks it's worth a try. More here.

Defining "Economic Development"

How do you define "economic development?"

When in doubt, ask Google. Here is what the search engine turned up for me this morning. I have marked those definitions that appeal to me the most with two asteriks (**).

Personally, I believe it is high time we re-defined our business in light of technology and the global economy. Yes, a reference to employment generation should remain in our future definition, but we need to add some other elements that accurately reflect what we are all about.

Definitions of economic development on the Web:

-Efforts to increase employment opportunities by getting new businesses to relocate in a community or existing businesses to expand. Differs from job development in the sense that it seeks to in-crease the pool of available work rather than soliciting employers to post openings for jobs that already exist. (See also Job Development.)www.cdr.state.tx.us/Researchers/Automated/FieldGuide/glossary.html

– qualitative improvement of the economic subsystem of society that is concerned with the production, consumption and distribution of goods and services to meet human needs. www.cadi.ph/glossary_of_terms.htm

-The improvement of an areaÕs employment, production or industrial well being. The availability of public transit can play an important role in economic development. Employment Transportation Transportation specifically designed to take passengers to and from work or work-related activities. EZ/EC Empowerment Zones/Enterprise Communities: These areas, so designated by the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA), are eligible for preferences and flexibility in many federal grant programs. EZ/ECs are chosen competitively based on community poverty characteristics and local strategic planning processes. www.ctaa.org/ntrc/glossary.asp

-Any effort or undertaking which aids in the growth of the economy. Topic areas:Fundraising and Financial Sustainability, Staff Development and Organizational Capacity www.nonprofitbasics.org/CompleteGlossary.aspx

-The process of raising the level of prosperity and material living in a society through increasing the productivity and efficiency of its economy. In less industrialized regions, this process is believed to be achieved by an increase in industrial production and a relative decline in the importance of agricultural production. www.indiana.edu/~ipe/glossry.html

-The process of improving the quality of human life through increasing per capita income, reducing poverty, and enhancing individual economic opportunities. It is also sometimes defined to include better education, improved health and nutrition, conservation of natural resources, a cleaner environment, and a richer cultural life. www.agtrade.org/defs.cfm

-is any effort or undertaking which aids in the growth of the economy. envision.ca/templates/profile.asp

**-To promote the stabilization, retention or expansion of the economic base and quality employment opportunities. www.lic.wisc.edu/shapingdane/facilitation/definitions.htm

-the process of growth whereby countries raise incomes per capita and become industrialised (also refers to the branch of economics that studies this process) (chapter 19)www.johnwiley.com.au/highered/eco2e/macro/lect-res/glossary.html

**-A rise in real income per person; usually associated with new technology that increases productivity or resources.highered.mcgraw-hill.com/sites/0072452706/student_view0/glossary.html

-"is the sustained, progressive attempt to attain individual and group interests through expanded, intensified and adjusted use of available resources." (Shaffer)agecon.uwyo.edu/EconDev/glossary.htm

**– actions taken to improve the ability of people to more productively use capital and natural and human resources in the production of goods and services. www.whitehall.k12.mi.us/curriculum/socialstudies/glossaryofterms.htm

– Organized efforts to attract new business into an area or to encourage existing business to expand.www.altusgroup.com/electricityglossary/e.asp

Foreign Investment in U.S. Lifts

Net foreign investment in the USA jumped 51% in January to $91.5 billion, the highest level in a year and a half and the second-highest on record, the Treasury Department said. The increase in net foreign investment — purchases of U.S. stocks, bonds and other investments by foreigners minus sales — included gains in purchases by both private investors and foreign central banks.

The news led to a rise in the dollar as the data helped ease percolating concerns investors were souring on U.S. assets in light of the three-year fall in the dollar. The euro weakened 0.4% to $1.3314 dollars per euro, the lowest in a week.

International M&A activity is also up. Could we see more international companies building plants and offices in the U.S.? It is likely, according to the experts.

More here.

Cyber Gaming

Is online gambling headed to your state? Chances have increased that it might be. This is an area that lawmakers on various levels have been fighting, but as tax revenues remain in short supply to meet public service demands, more states are thinking about it. More here.

America West: The Battle Continues

No airline has been spared the color "red" on its balance sheet. America West is still suffering, which makes folks in Phoenix very anxious and many other cities depending highly on the troubled air carrier. More here.

Manufacturing Topography and Cost-Reduction

Here's one to read. Do it today.

"Most companies wait until their costs are demonstrably out of line before they scrutinize their manufacturing topography. But a forward-thinking firm can reduce unit costs by as much as 40 percent of total acquisition costs by asking: How many plants should we have? Where should they be? What should their focus and mission be? Designing an appropriate manufacturing footprint is not an easy process, but the complexity is manageable when a few essential principles are followed." Source: Strategy+Business Magazine.

Know any companies that want to cut their costs by 40%? I'll bet they're making airline reservations for China now. Sorry. I just couldn't resist.

Top Ten Nano-States

Where does your state rank in terms of micro and nanotechnology activity? Recently, Small Times Magazine announced the results of its 4th annual ranking of the top 10 micro and nanotechnology states in the United States.

Thanks to Anita Campbell at Small Business Trends for passing along the tip.

Ohio made the top ten. Just goes to show you that "big old" states can can "small new" things!

ED Happenings in Tampa Bay Area

New companies are moving to the Tampa Bay region, the area's office market continues to grow, and lots of other things are happening. Read more here.

A few links if you want to take a closer look:

http://www.tampabay.org/
http://www.gpstpete.com/
http://www.startecflorida.com/
http://www.polk-county.net/
http://www.cfdc.org/

Northeast Indiana Sets Sights on Regional Marketing

Northeast Indiana economic development leaders are moving in the direction of a regional marketing effort to improve the region's chances of luring new businesses and jobs. Currently, the budget called for is $6 million over 5 years. Since we are working in the Fort Wayne area now, expect another update soon. Read more here.

Who Does Fluor Global Location Consulting Have Relationships With?

I have been doing some research on what the various industry site selection firms are up to. Click here to see which companies Fluor, a well-known site selection company, has worked for. It's a pretty remarkable list.

Site Selection Case Studies to Learn From

Click here to view some informative case studies of business site selection projects, prepared by the well-known business site selction firm, Wadley-Donovan. They are instructive.

Labor Market Volatility

Here is another one by Moran, Stahl, and Boyer, a well-known site selection consulting company, developed a useful framework for assessing labor market changes and volatility. Download it here.

Implications of New Metro Designations on Business Site Selection

Moran, Stahl, and Boyer, a well-known site selection consulting company, prepared an interesting analysis of the implications of new metro area designations on business site selection. It's an interesting piece. Download it here.

Expansion Management Editor Offers Perspective on Incentive Court Ruling

Many people are watching carefully for the fall-out from the U.S. 6th Circuit Court of Appeals' recent ruling that lets stand an earlier court ruling that the $280 million incentive package given to DaimlerChrysler by the State of Ohio was unconstitutional because it unfairly interferes with interstate commerce.

Ohio and the other states impacted by this ruling are quite concerned about how the new rules will impact their ability to compete for deals against states unaffected by the decision.

Expansion Management's Editor Bill King makes some valid points about the flaws in our judicial system that could be easily agreed with, but I tend to think that state and local government should use this ugly situation as an opportunity to rethink how they use public funds to support economic development in the future.

My assessment is that the incentive war chests of most (all) states are nothing more than hodge podges of isolated programs, lacking sufficient guidance from consistent underlying economic competitivesness policies and strategies. Most are also reactive in nature, and despite claims to being performance-based, they are not. In short, these programs have serious problems that need to be fixed.

Can individual states iron out their incentive problems on their own? I don't think so. I believe the states must sit together and commit themselves to the more prudent and accountable use of these programs in the future. And I believe the Federal Government should be invited in on these dialogues since our long-term national economic competitiveness depends upon what happens across the states.

There are many thorny issues to be tackled in the whole incentive arena. A major one has to do with the relationship between business tax policy and economic development incentives. We should not be afraid of tackling the big issues that come into play in this arena. Moreover, we should find solutions that support the improvement of our long-term global economic and business competitiveness. The time has past for states to gauge their competitive position solely in relation to other states. Offshoring and other 'high-impact" global business strategies have moved the focus into the global realm.

These are some starting points. You can expect to hear more on this issue in the near future. As always, I welcome your ideas.

Developing Rural Economies

Business Facilities Magazine published a very good article on rural development that contains some good learning examples for other rural communities.

One point I would add, based our firm's extensive work in rural areas, is approach growth in a balanced manner and make certain that your community is "prepared" to support development with adequate infrastructure, competitive shovel-ready sites, and that local leaders have a clear idea of what type of development they are willing to support and how they are prepared to do that. Take care of the basics first!

Sports Cities

That is the topic of one of the lead stories in Business Facilities Magazine this month. The article talks about some of the successes experienced by Jacksonville, Indianapolis, and others.

While I agree that sports can be a driver for tourism and all components of the local economy, it is very wise to use caution in "jumping into" this long-shot business.

Do you know of a professional sports team willing to pay for its own facilities these days? Trust me. They are few and far between.

This is an expensive economic development strategy for most cities. My advice: beware!

State Incentive Inventory

What are the main incentives offered by state EDOs? Check out the Area Development website for an overview of what they offer. Go here.