presentacion stimson 13-3

8/3/2019 Presentacion STIMSON 13-3

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Ch ang in g App r oach es t o Reg ion a l

Econ om ic Deve lopm en t :Focus ing on En do g eno u s Fact or s

Rober t J St im sonI m m ed ia te Past P residen t o f RSAI

an dUQ Soc ia l Research Cent re , I ns t i t u t e for Soc ia l Sc ience Research

The Un ivers i t y o f Queens landBr isbane ,Aus t ra l ia

Rog er R St ou ghPres ident o f RSAI

an dSchoo l o f Pub l ic po l i cy

Georg e Mason Un iv ers i t yFa i r fax , VA, US

Finan cia l Deve lopm ent and Reg ion a l Econ om ies RSAI - BCRA

13 -1 4 March , 2008Buenos Ai res , Argen t in a


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Th is add r ess p r ov ides.

A n o ver v i e w o f t h e e vo lu t i o n o f t h e o r et i cal e co n o m icdeve lopm en t and po l i cy and p lann ing pa rad igm s as

app roaches to t he s tudy and p r act i ce o f r eg iona l econom icg r o w t h a n d d ev e lo p m e n t .

An em ph asis i s on th e p rocesses o f endogen ous reg ion a lg r o w t h a n d d eve lop m e n t a n d h o w t h o se f act o r s af f e ct i n ge n d o ge n o u s d e velo p m e n t m ig h t b e m o d eled .

A su m m a r y r e ce n t l y w o r k b y t h e au t h o r s t o d eve lo p a n e wf r a m e w o r k t o co n ce p t u a l ize a n d m o d el e n d o g en o u s r e g ion a le co n o m ic g r o w t h a n d d eve lop m e n t .

A d iscu ssio n o f a n ew p lan n in g s t r a t e g y f r a m e w o r k f o rr e g ion a l eco n o m ic d eve lop m e n t t h a t i s f i r m l y e m b e d d ed i nth e p r in c ip les o f endogenous reg iona l g row th andd e velo p m e n t t h a t i s p r o p o se d b ySt i m so n , St o u g h a n d Ro b er t s ( 2 0 0 6 ) Region a l Econom ic Deve lopm ent : Ana lys i s and Plann in g St r a tegy , Spr inger


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Reg iona l econom ic deve lopm en t as ap r o d u c t a n d a p r o cess

I t i s t h e p r oduc t o f reg iona l econom ic deve lopm en t :

m e as u re d i n j o b s, w e al t h , i n v e stm e n t , st a n d a rd o f l i v i n g , a n dw o r k i n g co n d it i o n s - w i t h w h i ch p e op l e l iv i n g , w o r k i n g an d i n v est i n gi n r e g io n s t e n d t o b e m o st co n c ern e d

gene ra l l y , inc reases o r im prov em en t s in t hese m easu r es a re equa ted

w i t h e co n o m i c g r o w t h a n d d e v el o pm e n t .

I t i s t h e process o f r eg iona l econom ic dev e lopm en t :

f o r e x a m p le , i n d u s t r y s u p p o r t , in f r a st r u c tu re , la b o r f o r c e or h u m a nca p i t a l d ev e lop m e n t , a n d m a rk e t d e v elo p m e n t

w i th w h i ch r e g ion a l s ci e n t i st s a n d r e g io n a l e co n o m ic d ev e lop m e n tp l a n n ers a n d p ra c t i t i o n e r s t e n d t o b e m o st c on c ern e d .


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Som e de f i n i t i ons o f r eg iona l econom ic

d e v e l o p me n t

Blakelys (1994) has definition:. a p rocess i n w h i ch l oca l govern m en ts o r com m un i t y basedo rgan i za t i ons a re engaged to st im u la te o r m a in ta inb u s in e ss act i v i t y a n d / o r e m p l o y m e n t . Th e p r i n c ip a l g o al o fl oca l econom ic deve lopm en t i s t o s t im u la te em p loym en to p p o r t u n i t i e s i n se ct o r s t h a t i m p ro v e t h e c om m u n i t y , u si n g

e x i st i n g h u m a n , n a t u r a l an d i n s t i t u t i o n al r e so u rc es (p . x v ) .

Maleckis (1991) definition:. a com b ina t i on o f qu a l it a t i ve and quan t i t a t i ve f ea tu r es o f a

re g i o n s eco n o m y , w h i ch t h e q u a l i t a t i v e o r s t r u ct u ra l [ a re ]

t h e m ost m ean ing fu lThe qua l it a t i ve a t t r i bu t es i nc lude thety pes o f j obsno t on l y t h e i r num berand l ong - t e rm ands t ru ctu ra l charac te r i s t i cs , such as t h e ab i l i t y t o b r i ng abou tn e w e co n o m i c a ct i v i t y a n d t h e c ap a ci t y t o m a x i m i ze t h eb e n ef i t s w h i ch re m a in s w i t h i n t h e re g io n ( p . 7 ) .


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Econom ic developm en t t hu s has bo t h aq u an t i t a t i v e an d a q u al i t a t i ve d im en si on

I t i s q u a n t i t a t i v e w i th r espect t o t h e m easu r ed benef i t si t c r eates t h r ou gh :

i n c reasing w ea l th and income leve ls t h e ava i lab i l i t y o f goods and serv i ces

im p ro v i n g f i n a n cia l se cu r i t y and so -on .

I t i s a lso qua l i t a t i ve i n :

cre a t i n g g r e ate r s oci a l/ f i n a n cia l eq u i t y ach iev ing sus ta inab le deve lopm en t cre a t i n g a s p re ad i n t h e r a n g e o f e m p lo y m e n t

g a in i n g im p r o v e m e n t s i n t h e q u a l i t y o f l i f e i n a r eg i o n .


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Reg iona l econom ic deve lopm en t as a m a t r i x

o f qua l i t a t i ve , quan t i t a t i ve , p r ocess andp r od u ct o u t com es

REGIONAL ECONOMIC

DEVELOPMENT MATRIX

Regional Economic Process

Policy

PlanningAnalysis

Strategy

Resource application etc.

Regional Economic Product

Employment

WealthInvestment

Infrastructure

Quality of life etc.

Qualitat

ive

Inputs/O

utput

Quan

tita

tiv

e

In

pu

ts/O

utp

ut


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St i m so n , St o u g h a n d Ro b er t s ( 2 0 0 6 ) , Regiona l Econ om ic Deve lopm ent : Ana ly s is and Plann ing

S t ra tegy ( Sp r i n g e r ) , g i v e t h i s d e f in i t i o n of r e g io n a leconom i c dev e lopm en t

Re g io n a l eco n o m i c d e v el o p m e n t i s t h e a p p li ca t i o n o feconom ic p r ocesses and r esour ces ava i lab le to a r eg ion t ha t

resu l t i n t he susta inab le developm en t o f , and desi red econom ico u t c o m e s f o r a r e g io n a n d t h a t m e et t h e v a l u e s a n dexpecta t i ons o f bus iness , o f r esiden ts and o f v i s it o r s .

W hi le th i s def in i t i on i s f a r f r om pe r fect , i t does re f l ect ash i f t i n e co n o m i c p r o d u ct a n d p r o ce ss t h i n k i n g .

A balance bet w een t he qua l i t a t i ve and quan t i t a t i ve goal s o feconom ic deve lopm en t p r esen ts a cha l l enge t o t r ad i t i ona lneoclass ical econom ist s and to t h e em erg ing b r eed o feconom ist s w ho recogn i ze tha t r eg ional econom ic deve lopm en tcan occur on a m or e sus t a inab le bas is .

Th is i s no t t o sugges t t ha t neoc lassical th eory id eas shou ld b ed i sm issedfa r f r om i t .Ra the r , t h ey need to evo l ve to accom m oda te t h ose chang ingva lues t ha t socie t y h o lds on expec ted ga ins f rom econom icdeve lopmen t .


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Evo lv in g pa r ad igm s fo r econom ic po l i cy and

r eg iona l developm en t p l ann ing st r a t egy

Po l i cy f o r econom ic deve lopm en t and reg iona l p lann ings t ra t egy has unde rgone a se r i es o f evo lu t i ona ry s tages du r i ngt h e p e r i o d si n ce W o r l d W a r I I , d r i v e n b y d i f f ere n t p a ra d i g m s o fe co n o m i c t h o u g h t .

Those parad igm s have shaped th e w ay reg ions and l oca lco m m u n i t i e s a n d p e op l e t h i n k a b ou t , a n d p l an f o r , t h e f u t u re .

But.

m u c h t h i n k i n g o n r e g io n a l eco n o m i c d e v el o p m e n t s t i l l r e m a in sem bedded i n t h e pa rad igm s o f t he 197 0s , because o f aninhe ren t re luc tance o f m any reg ions and l oca l com m un i t i es t o

p ro - act i ve l y em br ace change .


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Chan g ing f ocus f o r econom ic deve lopm en t

po l icy and p l ann ing s t r a t egy

Focus of Econom ic Policy

Keynsian thought

Postwar - mid 1970s

M onetarism thought

M id 1970s 1990sRationalist thoughtlate 1980s 199 0s

1960 1970 1980 1990 2000

Public

Economic

DevelopmentAgencies

Regulatory

Economic

Development,

M ixed economic

Development

Sustainable

development

Initiatives to

improve

environmental

and overall

quality of lifeto attract highly

skilled workers

and firms

Focus on

Value-adding

strategies.

Incorporating

workforce and

technology

change

Initiatives to

reduce social

disparities by

incorporating

disadvantaged

groups into the

mainstream

economy

Focus of Econom ic Planning Strategy

Com parative Advantage Com petitive Ad vantage

Collaborative Advantage

Master Planning Infrastructure oriented

Goals and

Objectives

Planning

Multi sector

Integrated

Strategic

Planning

Integrated

Strategic

Planning

Structure

PlanningStrategic

Planning

Sustainability


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The paper d i scusses a nu m ber o f im po r t an t

i ssues t ha t a r e ev i den t i n t he con t ex t o ft hose evo lu t i ons i n pa r ad igm s

Fi r s t , t her e is a d iscussion o f neo-c lass ica l econom ic th eory asth e bas is o f reg iona l deve lopm en t t heo ry .

Second , t he r e i s a d iscuss ion o f t he evo lu t ion o f econom icpo l i cy f r om Keynes ian t hough t and t he assoc iat ed ma s t e rp lann ing p a ra d ig m s t o mo n e t a r i s m an d econom ic ra t i ona l i smand t he assoc iat ed goa l s and ob j ect i ves an d s t ra t eg i c p lann ingp a ra d i g ms .

Th i r d , t he re i s a d i scuss ion o f t he sh i f t ove r t im e f rom a focuson co m p a ra t i v e a d v a n t a g e t o co m p e t i t i v e a d v a n t a g e an d m o r ere ce n t l y t o t h e n o t i o n o f co l l abo ra t i ve advan t age.

Four t h , t he r e i s a d iscuss ion o f t he p r ocesses o f g loba l i za t ion

and t he em ergence o f conce rn f o r ach iev ing sus ta inab ledeve lopmen t , and t he focus on reg ion a l sel f -h e lp i n t h e p u rs u i to f en d o g e n o u s g ro w t h .

And f i f t h , t he re i s a d i scuss ion o f t he evo lu t i on o f t he newg r o w t h t h e or y .


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So m e im p l i cat i o n s t o d r aw f r o m t h atd iscuss ion

A t o n e t i m e re g io n s w e re p ro t e ct e d f r o m o u t s i d e co m p e t i t i o n ,a n d t o s o m e ex t e n t t h e ir e co n o m i es w e re ab l e t o b e

m a n i p u la t e d b y n a t i o n al g o v ern m e n t s.

Bu t t ha t i s no l onge r t he case as t h e econom ic ra t i ona l ismp u rs u e d b y m a n y n a t i o n al g o v ern m e n t s le f t m a n y re g i on s t ofend fo r t hem selves.

Reg ions st i l l con t i nue to l ook t o h ighe r l eve l s o f gove rn m en t f o rsuppo r t and r esou r ces t o p rov ide econom ic d i rec t i on andi n v est m e n t t o s t i m u l at e e co n o m i c d e v el o p m e n t .

H ow e v er , u n f o r t u n a t e l y , m a n y re g i o n s f a i l t o u n d e rst a n d t h a tg loba l izat i on has l ef t such gov e rnm en ts l a rge l y devo id o f

pow ers t o app l y econom ic and po l i cy m echan ism s t o enhanceth e com pe t i t i veness o f reg ion econom ies.


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Thu s, as st a t ed by St im son , St ough andRo b er t s ( 2 0 0 6 ) .

. t oday i t i s m o r e and m or e up t o r eg ions t o dev elopand us e t he i r ow n d ev ices t o com pe te i n t e r na t i ona ll y i no r de r t o su r v i v e .

That i s , a r e l iance on endog enou s p ro cesses i s t yp ica l l y

espoused in r eg iona l econom ic deve lopm en t po l i cy .

To do so r eg ions need f i r s t t o unde r s tand w ha t t hefacto r s a r e t ha t se t t he dy nam ics of t he em er g ing neweconom ic age o f t h e 21st c en t u r y .


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So, w h a t can w e con clud e so fa r ?.

It is evident that there have emerged a number of keythemes as to what constitutes: r e g ion a l g r o w t h a n d d e velo p m e n t ; an d reg iona l com pe t i t i veness .

Not surprisingly there are differences of views amongregional economic development scholars, and some of those

differences relate to the relative focus given to: t h e ro les o f exogenous fo rces on t he one hand , and t h e ro les o f endogenous pr ocesses and fac to r s on th e

o t h e r h a n d .

But there does now seem to be an almost universalrealization of what Garlick, Taylor and Plumber (2006) referto as the i nst i t u t i ona l em beddedness ofendogenous processes and factors in regional development.


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Cont.

Of cour se ex ogenous f a ct o r s d o re m a in i m p o r t a n t t o a r e g io n se co n o m i c p e r f o rm a n ce an d h o w i t d e v e lo p s o v e r t i m e .

B u t . inc reas ing im por t ance i s be ing p laced on endogenous fo rcesas de te rm inan ts o f a r eg ion s com pe t i t i veness.

How eve r , reg iona l econom ic deve lopm en t p o l i cy i n i t i a t i ves now

t e n d t o b e mo r e o r i e n t e d t o w a rd s m e asu re s t h a t : enhance loca l capac i ty an d capab i l i t y f o r a c i t y o r r e g i o n t o d e v e lo p ;

an d

ass is t reg ions t o cope w i th rap id change in an inc reasing lyco m p e t i t i v e g l ob a l e n v i r o n m e n t .

W h i l e e n d og e n o u s g ro w t h t h e o ry m a k e s m e n t i o n o f l eadersh ip ,en t rep reneu rs h i p , and i n st i t u t i ona l f act o r s , l i t t l e system a t i cana lys is has occur r ed to t ho r oug h ly concep tu a l i ze o r , evenm ore , m easu re th e i r ro l es as endogenous fact o rs i n t hedeve lopm en t p rocess .


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A n ew m o d el o f en d o g e n o u s r e g io n a l

eco n o m i c g r o w t h an d d ev elo p m en t

In a recent series of papers Stimson, Robson, Stoughand Salazar (2003), and Stimson, Stough and Salazar(2003; 2005) have develop a new model framework ofendogenous regional growth and development.

That framework explicitly incorporates:

leadership

entrepreneurship

institutional factorsas i n t e r v en i ng v a r i ab l es that are hypothesized to havea catalytic impact on the regional growth anddevelopment process.


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Strong proactive

leadership

Good use and

tapping of

potentialsSustainable

development

Resourceendowments

Marketconditions

M echanisms for

using and tapping

V ision for future

development

Strategy, plans

processes

Fac ilitate institutiona l

change to enhance regional

capacity and cap ability

Effective institutions and

regional infrastructure

A v i r t u o u s ci r cl e f o r su st a i n ab l e

d e v e l o p me n t ( St im son , Stou gh and Sa laza r , 200 5 )


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A v i r t uou s ci r c le f o r Sus ta inab le Reg iona l

Deve lopmen t

The ci r cl e i s m a in t a i ned by e f fect i v e l eadersh ip as it i s used tochange and ad j us t i n s t i t u t i ons i n o r de r t o adap t t he st r uc t u r e ,

p rocesses and in f r ast r uc tu re o f a reg iona l econom y in a w ayapp r op r i a t e and n eeded t o : m eet and an t i ci pa te chang ing c i r cum stances

f a ci l it a t e t h e o p t i m a l u se o f i t s r e sou r ce en d o w m e n ts

a ss is t i n d u s t r i e s t o t a p t h e i r f u l l m a r ke t p o te n t i a l .

St r ong leadersh ip m eans a reg ion w i l l : b e p r o a ct i ve i n i n i t i a t i n g r e g i o n a l econ o m i c d eve l o p m e n t s t r a te g y t o

m o n i t o r r e g i o n al p e r f o r m a n ce

set a v i s io n f o r i t s f u t u r e d e ve l op m e n t

i m p l em e n t p r o ce sses an d p l a n s t h a t w i l l f ac il i t a t e i n st i t u t i o n a l ch a n g e .

That , i n t u rn , w i l l enh ance th e capaci t y an d capab i l i t y o f t he reg ion t o :

pos i t i ve l y ad jus t t o chang ing c i r cum stances a t t a i n a g o o d f it w i t h m a r ke t con d i t i o n s

h a r n e ss i t s r e so u r ce en d o w m e n ts

i n o r d er t o m a in t a i n a n d im p r o v e it s com pe t i t i v e pe r f o r m ance a n d t oach ieve susta inab le deve lopm ent as a l earn ing reg ion .


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A m o d el f or e n d o g en o u s r e g i on a l g r o w t h a n dd e v e l o p m e n t

Stimson, Stough and Salazar (2003; 2005) propose anew model framework.

Operationally, that model may be represented as:

RED = f [RE,M .. m ed iat ed by . . ( L, I , E)]


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A n ew m o del f r am ew o r k f o r t h e r eg io n aleconom ic developm en t p r ocess

Quasi-IndependentVariables Intervening Variables Dependent Variable(s)

The dynamic interrelationships that act to createthe catalysis for regional development

(I) Institutions(E) Entrepreneurship(L) Leadership

Resource Endowmentsand

Market Conditions

(RE,M)

OUTCOMEA Region that is:

CompetitiveEntrepreneurial

Sustainable

(RED)

Measure and evaluation change over

time.

Benchmark performance (e.g. Regionalshift component in shift-share analysis)

Direct EffectsIndirect Effects


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A m o d el f or e n d o g en o u s r e g i on a l g r o w t h a n ddeve lopm en t , con t .

The ou t com e o f t he r eg iona l econom ic deve lopm en t p rocess

(RED) i s t he deg ree to w h i ch a reg ion has ach ieved com pe t i t i veper f o r m ance , d isp lays en t rep r eneur sh ip , and has ach ievedsus ta inab le deve lopm en t .

Those ou tcom e sta t es a re de f i ned as t he dependen t va r i ab le (s )i n t h e m o d el .

An ou t com e st a te i s concep t ua l i zed as be ing depen den t on a seto f quas i - i ndependen t va r i ab les re la t i ng t o a ci t y o r r eg ion sr e so u r ce en d o w m en t s an d i t s f i t w i t h m a r k et c on d i t i on sw h ich , f o r conven ience is sepa ra t ed in t o i t s tw o com ponen t s( n a m e l y REan d M)

Th a t i s m e d ia t e d t h ro u g h t h e i n t e ra ct i o n b e t w e en l ea d ers h i p( L) a n d i n st i t u t i o n s ( I ) t o f aci l i t a te o r supp resse n t re p re n e u rs h i p ( E) .


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A m o d el f or e n d o g en o u s r e g i on a l g r o w t h a n ddeve lopm en t , con t .

The new m ode l f r am ew or k p r oposed i nco r po r a tes bo thd i rect and in d i rect e f fect s i n t he i n t e ract i ons be tw eenRE,M ( t h e quas i - i ndependen t va r iab le) an d L, I an d E( t h e in te r v en ing or m ed ia t i ng v a r i ab les) .

A lso , t h e i n t e r act i ons be tw een t he i n t e r v en ing o rm ed ia t i ng v a r i ab les L, I an d Em ay be bo th d i r ect andind i rec t .


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The dependen t va r i ab le: m easu r ing

en d o g en o u s g r o w t h

Ap p r o a ch b y St i m so n , St o u g h a n d Sa la za r ( 2 0 0 5 )t o m e asu r e t h e RED va r i ab le pe r f o r m ance acro sst he reg i ons o f a st a te o r a na t i on as t he dependen tva r i ab le i n t h e m o d el .

A si m p l e su r roga t e m easu r e o f en d o g en o u s g r o w t hi s p rop osed .

Th e r eg iona l sh i f t o r d i f f e ren t i al sh i f t com ponen td er i v e d f r o m a sh i f t sha r e ana l ysi s o f r eg iona l

em p lo y m en t ch a n g e o v er t im e by su m m i n g t h ereg i ona l o r d i f f e ren t i al em p l oy m en t sh i f t acros s a l li ndu st r y sect o r s st andar d i zed by t he si ze o f t h ereg ion a l labo r f o r ce .


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Po t en t i al ind ependen t and i n t er v en ing

var iab les

Quas i ind ependen t v ar iab les :

RE= r e so u r ce e n d ow m e n t s

M = m a r k et f i t

I n t er v e n i n g ( o r m e di at i n g ) v a r ia bl es:

L = leadersh ip

E= en t r ep r eneu r s h ip

I = i n s t i t u t i o n s


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RE= r e so u r ce en d o w m en t s

a rea si ze o f th e reg ion

c l im a te

t o p o g ra p h y

a g g lo m e ra t i o n o f in d u s t r y k e ysec to rs ( m easu r ed by Loca t ionQu o t i e n t s f o r e m p lo y m e n t i n

indus t ry sec to rs )

popu la t i on s i ze and ra t e o fg r ow t h / d ecl in e

educat ion leve ls ( a de r i vedin d e x o f h u m a n ca p i t a l ) a n d

l i t e racy

pe r cap i t a i ncom e, i ncom ed i st r i b u t i o n , a n d i n co m ed i st r i b u t i o n c h an g e o v er t im e

h o u s in g o w n e rs h ip

i n v e stm e n t i n i n d u s t r i a l a n dco m m e rci a l co n s t r u c t i o n ,b e n ch m a rk e d t o t h e r e g io n sna t iona l sha re vis-a-visi t sna t ion a l sha re o f popu la t i on

i n f r a st r u c t u r e i n v est m e n t ( p ercap i t a ) , such as on r oads ,schoo ls , hosp i t a ls , e tc

i n d u s t r i a l s t r u c tu r e a n d c h an g ein i n d u s t r i a l st r u c tu re( m e as u re d b y a n i n d u st r i a ld i v e r si t y i n d e x )

reg iona l o r gan iza t iona l s lack


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M = m ar k e t f i t

basi c econom ic act i v i t y i n m a jo r i n dus t r y sect o rs ( m easu red byLoca t i on Quo t i en ts f o r em p loym en t i n i ndus t r y secto r s )

a ir l i n e co n n e ct i o n s w i t h o t h e r r e g i o n s/ ci t i e s

r o ad f r ei gh t i n / o u t m o vem en t s

vo lum e and v a lue o f expo r t s i n key p r oduc ts and se rv i ces


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L = leadersh ip

t h e deg ree o f change / s tab i l i t y i n l oca l po l it i ca l l eade rsh ip

expe r t assessm en t o f l eadersh ip qu a l it y

co rp o ra t e h e ad q u a t e rs l o ca t e d in t h e reg i o n

densi t y o f bu s iness and com m un i t y o rgan i za t i ons pe r 10 ,000popu la t i on


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I = i n s t i t u t i o n s

i n st i t u t i o n al t h i ck n e ss ( co rp o ra t e a n d c o m m u n i t y o rg a n i za t i o n sp e r 1 0 , 0 0 0 p o p u l a t i o n )

l ay e r s o f go v er n m en t / g o v er n m e n t f r ag m e n t at i o n

f o rm a l in s t i t u t i o n s o f g o v e rn a n ce , m e asu re d b y n u m b e r o fpub l i c agenc ies pe r 1 0 ,000 popu la t i on

n u m b e r o f h e a d qu a r t e r s o f m a j o r c o rp o ra t i o n s (e .g . Fo r t u n e1 0 0 0 f i r m s)

va lue founda t i on cap i t a l i za t i on pe r 1 0 ,000 popu la t i on

g o v er n m en t f r a g m e n t a t i o n

l e vel o f reg iona l o rg an i za t i ons (n um ber and budge t l eve l )

i ndex o f socia l cap i t a l


29/37

E= en t r ep r eneu r sh ip

ch u r n r a t e o r b u s i n ess st a r t - u p r a t e

ven t u r e cap i t a l act i v i t y

co rp o ra t e v e n t u r i n g a ct i v i t y

p a t e n t s i ssu e d p er 1 0 ,0 0 0 w o rk e rs

Loca t i on Quo t i en t o f em p loym en t i n sym bo l i c ana l yst occupa t ions


30/37

The m odel

St i m so n , St o u g h a n d Sa la za r ( 2 0 0 5 ) a r g u e t h a t RED i spos it i ve l y re lat ed to RE, M, L, I, and E

Bu t :

t he re a re l ike l y t o be lead and lag ef fect s i n t he sho r t t o

in t e rm ed iat e run , and pe rh aps cyc li ca l ef fect s in t he l ongerr u n .

Thus

REDt = REt - 1 + Mt -1 + ( It - 1 t o It -1 0/ 1 0 ) + Lt - 2 + Et -2 + e


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To w a r d s a n e w p a r ad i g m f o r e n d o g en o u sr e g io n a l g r o w t h an d d e v el op m en t p l an n i n g

s t r a t egy

Tr ad i t i ona l m ode ls o f r eg iona l econom ic g r ow th anddeve lopm en t and t r ad i t i ona l m odes o f r eg iona l ana lys is

r em a in im po r t an t and us efu l as m eans o f add r essingreg iona l econom ic change .

Bu t t h e em er g en ce of t h e n ew g r o w t h t h eo r y an d t h e

em phas is now be ing p laced on th e im po r t ance o fendogenous p rocesses i n r eg iona l g r ow t h t h e i nc reas ing concern s ove r sus ta inab i l i t y i n r eg iona l

d e v el o p m e n t s t r a t e g y p l a n n i n g

r e q u ir e d a n e w f r a m ew o r k f o r a p p r o ach i n g r e g i on a leconom ic dev elopm en t p l ann ing st r a tegy f o r m u la t i on .

Tha t h as r esu l t ed i n t h e em er gence o f new i n t eg r a tedapproaches t o reg iona l developm en t p o l i cy and p lann in gs t r a tegy .


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To w a r d s a n e w p a r ad i g m f o r e n d o g en o u s

r e g io n a l g r o w t h an d d e v el op m en t p l an n i n gst r a t egy , con t .

I n a r g u i n g t h e n e ed f o r a n em er g i n g p a r ad i g m o freg iona l econom ic deve lopm en t p lann in g , and t o assi streg ions to u nder t ake th e p rocesses invo lved in r eg iona leconom ic dev elopm en t s t r a t egy , i t i s im po r t an t :

t o i d en t i f y t h e k e y e l em e n t s f o r r e g io n a l eco n o m i c

d e v el o p m e n t s t r a t e g y b u i l d i n g an d i m p l em e n t a t i o n

p lace t hose in a p rocess t ha t p u l l s toge t her r esour ces ,in f r ast ru ct u r e , socia l cap i t a l , and t echn o logy

t o f aci l i t a t e t h e econom ic dev elopm en t o f a r eg ion i n ady nam ic and g l oba l l y com pe t i t i v e env i r onm en t .


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Pr ocess fo r a con t em por a ry app r oach

t o r eg iona l econom ic developm en t

Analyse and Appraise Regional

Economic Performance and

Competitiveness using Benchmarks

Establish a Strategic Platform for

Regional Change and Development

Develop and Implement Strategies to Enhance

Industry Cluster Formation and Growth

Building on Regional Core Competencies and

Appraisal of Regional Risk to Create a

Competitive Region

Monitor Regional Performance

and

Competitiveness and Review

Strategy using Benchmarks


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Tha t app r oach suggest s t ha t t he i n t en t o f

r eg iona l econom ic developm en t st r a t egym i g h t b e t o .

Es tab l i sh a p la t f o rm fo r change to gu ide the deve lopm en t o f areg ion and to f aci l i t a te i t s com pe t i t i veness i n a g loba le n v i r o n m e n t i n t h e p u rs u i t o f a su s t a in a b l e f u t u re .

Mob i l ize key acto r s o r f aci l i t a to r s and agen ts o f change ,th rou gh pa r t ne rsh ip app roaches encom pass ing s t r a teg i ca l l i ances and par t ne rsh ips be tw een bus iness , m a rk e ts ,g o v er n m e n t an d co m m u n i t y .


35/37

Th e f r a m ew o r k p r o p o ses t h e f o l l ow i n g .

I den t i f y , desc r ibe , ana lyze and eva lua t e : core competencies

resource endowments infrastructure competitiveness market intelligence, regional riskt h ro u g h t h e co m b in a t i o n o f q u a l it a t i v e a n d q u an t i t a t i v e m e th o d sencomp assed in :

industry cluster analysis (ICA) multi sector analysis (MSA) (see Roberts and Stimson, 1998).

I d e n t i f y a n d e v a lu a te e co n o m ic p os si b i l i t i e s f o r t h e f u t u re l e ad in g t o t h esta t e m e n t o f st r a te g i c i n t e n t .

Ev a lu ate a l t e rn a t i v e d e v e lo pm e n t f u t u re s o r s ce n ar i o s t h r o u g h t h ep a r t i c ip a t i o n o f s t a k e h o ld e r s w i t h i n t h e r e g ion a n d e x te rn a l t o i t t oencom pass th e assessm en ts o f k ey decis ion -m ake rs con t r o l l i ng cap i ta l ,t r a d e a n d o th e r f l o w s t o t h e r e g io n .


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Cont.

I m p l em e n t a t i o n p l a n s an d m e ch a n i sm s n ee d t o b e d e v el o p edand pu t i n p lace by app rop r i a t e agenc ies i n t he reg ion .

Prog r ess m ade tow ards ach iev ing t he des ired deve lopm en tf u t u r e n e ed s t o b e m o n it o r e d . Th a t :

r e q u i r e s a g re em e n t o n i n d i c ato r s an d b e n ch m a rk s a g ain st w h i ch t om e as u re an d e v a lu ate r e g io n a l p er f o r m a n ce o v er t im e i n o rd e r t o

assess th e deg ree o f success o f t he s t r a tegy and p rog ress tow ardsa ch ie v em e n t o f t h e s t r a te g i c in t e n t

i n vo lves bu i l d ing enhanced reg iona l i n f ras t r uc tu r e sys tem s a longw i t h s t r e n g t h e n in g ex i s t i n g a n d b u i l d i n g n ew p a r t n e r sh ip s,ne tw ork s and a ll i ances.

I n t h e co n t e m p o ra ry e ra o f t h e g l o b al e co n o m y , i n cre a si n g l yth e pu rsu i t o f r eg iona l econom ic deve lopm en t a l so needs totak e p lace w i th in t he con t ex t o f p r i nc ip les f o r ach iev ing asus ta inab le f u t u r e .


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St eps i nvo l ved in im p lem en t i ng t he new

f r a m ew o r k f o r r eg i on a l eco n o m i cd ev e lo p m en t p l an n i n g st r a t e g y

12 ACTION PLAN

5 year rolling Plan

Annual Plan

Financial Plan

ACTION PLAN

5 year rolling Plan

Annual Plan

Financial Plan

Establishing

a Platform

for Change

Establishing

a Platform

for Change

Economic

Audit

Analysis

Economic

Audit

Analysis

Economic

Possibilities

Index

Economic

Possibilities

Index

Set (new)

Strategic

Directions

Set (new)

Strategic

Directions

External

Analyses

External

Analyses

STRATEGY

Strategic Intent

Strategic Directions

Strategic Architecture

Economic Drivers

STRATEGY

Strategic Intent

Strategic Directions

Strategic Architecture

Economic Drivers

Indicators &

Benchmarks

Indicators &

Benchmarks

Redefine

Directions

Redefine

Directions

Develop and

Test Alternative

EconomicFutures

Develop and

Test Alternative

Economic

Futures

INDUSTRY

CLUSTERANALYSIS

(ICA)

MULTI

SECTORAL

ANALYSIS

(MSA)

INDUSTRY

CLUSTER

ANALYSIS

(ICA)

MULTI

SECTORAL

ANALYSIS

(MSA)

Agents of Change

BusinessBusiness

MarketsMarkets

GovernmentGovernment

CommunityCommunity

TechnologyTechnologyRegional

InformationSystem

Regional

Information

System

1

3

42 65

10

9

8

7

11

13

14

Review and

Re-engineer

Strategy

Review and

Re-engineer

Strategy

presentacion stimson 13-3

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