mark c. white, ph.d
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Mark C. White, Ph.D. Preparing for a more diverse economy May 23, 2014. Overview. About the Diversity in Appalachia project Key findings What does this mean for your county’s economic development planning? Discussion. About the project. - PowerPoint PPT PresentationTRANSCRIPT
Mark C. White, Ph.D.
Preparing for a more diverse
economy
May 23, 2014
Overview
• About the Diversity in Appalachia project• Key findings• What does this mean for your county’s
economic development planning?• Discussion
About the project
• The Appalachian Regional Commission was motivated by:– Appalachia’s legacy of low
economic diversity– Little guidance for
practitioners seeking more diversified economy
• Research sponsored by– Quantitative research – Case study research– Guides for action
• Lead research organizations:– University of Illinois at
Urbana-Champaign’s Regional Economics Applications Laboratory
– Center for Regional Economic Competitiveness
• Research support from:– RUPRI Center for Rural
Entrepreneurship– EntreWorks Consulting
Key Data Findings: Urban counties tend to be more diverse
Low diversity countiestend to be rural(avg. pop. ~7,700)
High diversity countiestend to be urban(avg. pop. ~425,000)
Key Data Findings, con’t
• Diversity does not always equal prosperity– A generic mix of industries is not enough– Counties with large increases in measured diversity
often suffered significant job losses
• Regional centers can influence effective county diversity– Most counties lose more commuters than they gain– Commuters flow toward diversity– Specializations in regional centers play outsized role
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Diversity’s role in economic development practice
• Diversity is a frequently cited goal, but there are few “diversity-specific” strategies– Need to mitigate risk (from a real or impending crisis), OR– Desire to capture opportunities and better leverage
existing economic development assets
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Successful diversification efforts are broad-based efforts
• Positive diversification results from strategies that implement successful specialization strategies simultaneously– Building an economic base – What brings new money into your community?
• Must diversify more than the employment base– Workforce skills– Sources of income (e.g. retiree attraction strategies)
• Diversification must be more than an industry replacement strategy– Loss can occur in an instant– Replacement occurs over decades
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The regional context shapes efforts to foster economic diversity
• Low diversity counties in Low diversity regions: – Develop new competencies and
specializations
• Low diversity counties in High diversity regions: – Connect to your neighbor’s
competencies and specializations
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Successful places build greater diversity through sound economic development practices
• Possess strong leadership• Establish a process to
pursue a long-term vision • Form effective
partnerships– Regionally– Across silos
• Be data-driven
WHAT DOES THIS MEAN FOR YOUR COUNTY’S ECONOMIC DEVELOPMENT PLANNING?
Planning for a more diverse economy
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How do diversity-related issues affect your county: Assessing Risks
• How exposed is the county to:– A few markets?
• By location (local and regional)
• By markets (customers and suppliers)
– Limited skill sets in the workforce?
– Limited sources of income?
• Understanding risk requires: – Micro-level analysis
(business by business), AND
– Macro-level analysis (county and regional)
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How do diversity-related issues affect your county: Identifying Opportunities
• What does your county make? – Its goods & services
• How does your county produce value for the global marketplace?– Its workforce skills and
competencies– Its technologies
• Why does your county have the economic activity it does?– Its industrial legacies– Its markets
• Where are your county’s connections?– Regionally– Nationally– Internationally
DIVERSITY WEBTOOLPlanning for a more diverse economy
The Diversity Webtool
• The tool helps practitioners be more data-driven in how they think about economic diversity
• The tool provides data, indicators and visualizations to help practitioners:1. Understand basic growth trends,2. Consider their community and region’s economic diversity, and3. Identify other places with similar economic conditions.
• Where to find the tool:– http://economicdiversityinappalachia.creconline.org/
Diversity metrics and data for all U.S. Counties
To learn more about Economic Diversity
• Study results are available here:– http://www.arc.gov/research/researchreportdetails.asp?REPORT_ID=108
• The summary report– http://www.arc.gov/assets/research_reports/EconomicDiversityinAppalachia-StatisticsStrategiesa
ndGuidesforAction.pdf
• Supporting documents– Statistical portrait
• http://www.arc.gov/assets/research_reports/EconomicDiversityinAppalachia-StatisticalPortraitofEconomicDiversityinAppalachia.pdf
– Case study report• http://www.arc.gov/assets/research_reports/EconomicDiversityinAppalachia-CaseStudiesin
EconomicDiversification.pdf
– Guide to using the webtool• http://www.arc.gov/assets/research_reports/EconomicDiversityinAppalachia-PractitionersG
uidetoEconomicDiversityWebTool.pdf
DISCUSSIONPlanning for a more diverse economy
Questions for discussion• Are these issues of concern in your county?
• What can county officials do to advance strategies for strengthening a community’s economic outlook?• Any particularly effective efforts?
• How important were partnerships to these successful economic development efforts?• Public-Private collaboration?• Partnerships with nonprofit or philanthropic groups?
• What advice would you give to other county officials seeking to pursue collaborative economic development strategies?
