Stilling the Waters Is Now Available

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, 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. The price is $12.95 per copy.

Economic developers got a preview of the book at the Economic Development Institute (EDI) in Phoenix earlier this week.

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.

What are Cultural Industries?

What are “cultural industries”? According to UNESCO (United Nations Educational, Scientific and Cultural Organisation), they constitute a sector where the creation, production and marketing of goods and services are combined. Their special nature lies in the intangibility of their cultural content, which is generally protected by copyright.

“Cultural industries” covers film production, the audiovisual sphere, the printed word and also multimedia (a sector that is in full expansion and breaking all production records, even in non-industrialised countries). However, there is still some dispute as to the definition of this sector. Some countries include architecture, the performing arts, and even the plastic arts and cultural tourism. Download the working paper here.

What is Evolutionary Economics?

Economic development is evolving--not because it wants to necessarily, but because it must. Evolutionary economics is reshaping many other fields relient upon economic reasoning. We should be thinking about how it can improve our thinking and action in the ED field in the future.

Evolutionary economics is a relatively new economic methodology that is modeled on biology. It stresses complex interdependencies, competition, growth, and resource constraints.

The first 200 years of economic theory was modeled primarily on physics — economic terminology like "labour force", "equilibrium", "elasticity", and "velocity of money", are no accident. Conventional economic reasoning begins with the definition of scarcity, then assumes the existence of a "rational agent" bent solely on the attainment of one goal — the maximization of her/his welfare as defined by that agent.

All relevant information is assumed to be held in common ("perfect information"), and the scheme of valuation ("preferences" or "tastes") used by the decision-maker is also assumed to be constant and native to the agent ("nonenvy" or "independent preferences"). Given the foregoing stipulations, the determination of the "rational choice" for any agent becomes a straightforward exercise in the differential calculus.

Evolutionary economics derives from a more modern tradition of inquiry, which does not take the characteristics of either the objects of choice or of the decision-maker as fixed.

The Economic Development Institute

Just back from teaching at the Economic Development Institute (EDI) in Phoenix. It was a great session--both inside and outside the classroom.

The side conversations about "the business" are always great...teachers talking among themselves, teachers and students talking, and students talking among themselves.

If you haven't go through EDI, please consider it in the future.

I will post my strategic planning course slides on the Download page of www.don-iannone.com in the near future for your downloading pleasure.

Foreign-Born U.S. Population Trends

Those of you tracking demographicds trends relative to economic development will find this of interest. The nation’s foreign-born population numbered 34.2 million in 2004, accounting for 12 percent of the total U.S. population, according to U.S. Census Bureau data released today. The number of foreign-born is 2.3 percent higher than it was in 2003.

Within the foreign-born population, 53 percent were born in Latin America, 25 percent in Asia, 14 percent in Europe and the remaining 8 percent in other regions of the world, such as Africa and Oceania (Australia, New Zealand and all of the island nations in the Pacific).

Second-generation Americans, natives with one or both parents born in a foreign country, numbered 30.4 million, or 11 percent of the total U.S. population.

More here.

Educational Spending Rankings

Public elementary and secondary education revenues from federal, state and local sources reached $440.3 billion in the United States in 2003, up 4.9 percent from the previous year, the U.S. Census Bureau reported today. Again, the District of Columbia spent the most money per student on this level of education ($13,328) of any state or state equivalent.

These findings from the 2003 Annual Survey of Local Government Finances - School Systems show that following the District of Columbia in per-student expenditures were New Jersey ($12,202), New York ($12,140), Connecticut ($10,372) and Vermont ($10,322). Utah spent the lowest amount ($4,860) of any state or state equivalent. Next to Utah, the lowest averages per pupil were in Arizona ($5,672), Mississippi ($5,816), Idaho ($6,034) and Nevada ($6,084). The national average was $8,019.

State governments contributed the greatest share of public elementary and secondary school funding, $215.6 billion. Local sources followed at $188.0 billion, and the federal government was the third largest contributor at $36.8 billion.

New Mexico"s Information Sector

The US Census Bureau has just received its 2002 Economic Census report on New Mexico's Informationn Sector. The report finds there are 843 businesses in this sector, which employ 15,140 people presently A breakdown of both metropolitan and micropolitan areas is included in the analysis. Download the 55-page report here.

Business Rankings

Every economic developer at one time or another wants to know how businesses in his or her area stack up against businesses elsewhere. Click here for a useful guide to various business rankings. Maybe there is something here that can help you.

Indiana Health Care Industry Profile

In 2005, the Indiana Health Industry Forum released an update to its Critical Mass report, which identifies, defines and categorizes Indiana’s assets in the health sector. To view the details of the economic impact of Indiana's health industry, please click here.

Among the highlights from the report:

-274,000 people are directly employed by the health industry
-In total, more than 578,000 Indiana jobs are directly or indirectly tied to the health industry
-These jobs account for more than $21 billion in wages and $2.5 billion in state taxes paid — just over 20 percent of Indiana’s tax base.
-Ultimately, 18 percent, or $69 billion, of Indiana’s economic output is tied to the health industry.

R&D Activity State by State

Here is a good one, if you're looking for R&D stats. The report is the second of two publications containing results from the 2001 Survey of Industrial Research and Development. The first publication, an InfoBrief (NSF 2003) announcing the availability of survey results, contains analytical information and highlights the expenditures for industrial research and development (R&D) funded from companies' own resources and the decline in sales and employment reported by R&D-performing firms. This report contains, in section A, the full set of statistics produced from the survey including statistics on R&D funding during the calendar year 2001 and on R&D personnel in January 2002.

Incentive Price Tag Reasonable

That's what I said when asked about a software deal in the Indianapolis area. Go here.

More GM Bad News, Maybe Time for a New ED Approach to Big Auto

As many of you know, I have been pushing the idea that local economies nationally and globally may have more to gain by working together than locking horns to compete for deals. The recent wave of bad news hitting GM suggests to me that GM supplier communities nationally, and maybe even globally, should form a "location supplier network" that can help GM gain a new competitive advantage globally, and conserve community resources in the process. Read the article and tell me what you think.

Welcome to Digital Hospital

As the frenzy about biotech and life sciences continues, maybe we should be thinking about the way the Internet will connect us to healthcare services anywhere in the world. Maybe every metro area in America will not need to be a high tech medical tech center. More here to read a great Business Week article on this subject.

When Neuroeconomics Hits Economic Development

Now, here is a wild one to think about. I say it's worth economic developers are writing about it for business executives.

Neuroeconomics, while still regarded skeptically by mainstream economists, could be the next big thing in the field. It promises to put economics on a firmer footing by describing people as they really are, not as some oversimplified mathematical model would have them be. Eventually it could help economists design incentives that gently guide people toward making decisions that are in their long-term best interests in everything from labor negotiations to diets to 401(k) plans. Says Harvard University economist David I. Laibson, another leading researcher: "To understand the real foundations of our behavior and our choices, we need to get inside the black box."

More here.

Sustainable Development Information Resources

If this is something of interest to you, go here to see what this Dept. of Energy website on the subject has to offer.

Local Media Buys in Cincinnati USA, FInally

Branding, as we call it in the business, is tough. Moreover, media tends to be very suspicious of its benefits, and at times it's honesty. In my assessment, this skepticism is well-placed in many cases. The new Cincinnati USA marketing/branding effort has recently received a vote of support from the local media. Interesting read about it here.

Colarado Gets New Call Center

Fort Collins will get a new call center adding 150 new jobs. Here for more.

Arizona's Biotech Future

According to the report commissioned by the state Board of Regents, Arizona is on the right path with successes in research at state universities, genomics institutes and high-tech industry clusters but has to start thinking differently about health care and education. More here.

The Role of the Institutional Sector in Albuquerque

Do governmental and institutional employers play a major role in local economic development? Ask the folks in Albuquerque, New Mexico. Click here to see the area’s list of major employers.

Santa Fe's Economic Development Game Plan

The main goal of Santa Fe's plan is to achieve long term sustainable economic health for our residents.

Our success will be measured by: improved education, creation and retention of good high paying jobs, increased availability of affordable housing, and increased revenue for the region.

This plan emphasizes existing community assets to strengthen and grow local businesses. We will tap the immense creativity of Santa Feans to build the future economy. The rich heritage and culture of the region will continue to be honored and will be reflected in this plan.

The community’s goals for future economic development:

1. Santa Fe will be the leading Arts, Design, and Cultural Industry center of the U.S.

2. Santa Fe will be the Water Conservation and Clean Energy Capital of the U.S.

3. Santa Fe's citizens will be well educated and well trained for high paying jobs.

4. Santa Fe's entrepreneurs will work in a supportive community that encourages and celebrates their success.

5. Santa Fe will celebrate its cultural, historic and business neighborhoods and emphasize respect and collaboration among businesses and residents.

6. Santa Fe will increase affordable housing opportunities for renters and homeowners.

Santa Fe's Cluster-Based Approach to Economic Gardening

Santa Fe, New Mexico is a wonderful community, sitting on a 7,0000-foot high plain. The community has decided upon a cluster-based approach to economic gardening. The community is 49% Hispanic, which is no surprise given its long and deep historic ties with both Spain and Mexico. Click here to learn more about the community's cluster approach.

Headquarters Location Trends

In the market for corporate headquarters? Check out this report. It's a good one.

Self-Employment Trends Among Immigrants

Interesting piece of research by the Chicago Fed on self-employment by immigrants. Many cultural groups have a longstanding tradition of self-employment and entrepreneurship. I like this trend. More cities need to get with helping this trend take hold. Go here.

New American Communities Initiative

The White House has announced a community strengthening initiative. You can read about it by clicking here. EDA will be play a key role in the initiative. The focus will be on "needy" communities.

New OECD FactBook

Get access to it here.