1. Exploring Strategies for Enhancing the Regional Economy Module Six

2. Reflecting on the Previous Session What did you find most useful or valuable? What progress have you made since then? Any questions or clarification needed?

3. Overview of Module Six Identify the economic leaks in the region Explore basic avenues for strengthening clusters Provide an overview of some specific strategies within each avenue Select some potential directions for the region to explore

4. Import Substitution Substituting externally produced goods and services with those that are locally produced, putting regional money to work in the region.

5. The Leaky Bucket The Regional Economy Purchases of Goods or Services out of the Region

6. Plugging the Leaks Regional Demand Regional Supplier Outside Supplier

7. Strengthening Clusters Through Import Substitution Identify: Industries that support the cluster Goods and services being purchased from outside the region Capacity for supplying these inputs regionally Resources needed to help promote the creation, expansion, retention or attraction of businesses to supply inputs

8. Labels Identify Potential Leakages and Opportunities for New Businesses Wine Zero inputs available regionally Small % of inputs available regionally Large % of inputs available regionally 100% of inputs available regionally Grapes Research I Irrigation System Fertilizer Advertising

9. Example: Strengthening the Hospital Sector

10. Growing Your Region’s Cluster Identify: Industries composing the cluster Imports (Leakages) Regional capacity Potential growth opportunities Appropriate response strategies

11. C.A.R.E for the Cluster Cluster Strengthening Creation Attraction Retention Expansion Source: Barta, et al (2010) CARE Model

12. Creation Growing new enterprises locally to fill the gaps of goods and services purchased from outside the region

13. Creation: Providing Regional Support Community Support Entrepreneurs Intellectual Stimulation Access to Capital Education Information Connections & Networks Infrastructure Services & Amenities Source: Based on Reynolds, et. al., Small Business Economics 23: 263–284, 2004.

14. Creation: Sample Strategies Regional training Business coaching Youth entrepreneurship Business incubators

15. Attraction Attraction seeks to reduce leakages by recruiting into the region firms that can supply missing goods or services that support the cluster.

16. Attraction: Targeting Effectively Past: Blindly attracting industry Now: Targeting businesses likely to be successful in the region

17. Attraction: Location Models Analyzes the probability of an industry moving to the region Evaluates the region’s ability to respond to industry needs Selects industries with the highest likelihood of success

18. Attraction: Community Business Matching Model CompatibilityDesirability Community Business Assets NeedsProfile Goals The Ideal The Ideal Source: Cox et al., 2009

19. Attraction: Targeted Regional Economic Development (TRED) TRED is: An economic development strategy A planning process Content including data analysis and interpretation Source: Goetz, Deller, Harris (2009)

20. Attraction: Our Region Past successes Past challenges Potential attraction strategies related to regional clusters

21. Retention & Expansion Supporting existing businesses within a cluster so that they can survive and thrive is another avenue for stopping or preventing cluster leakages.

22. Retention & Expansion: Benefits Lets businesses know they are valued Helps solve local business issues Improves community awareness Connects businesses to community resources Creates connections between community organizations Fosters job retention & growth

23. Retention & Expansion Process Planning Phase Action Phase  Recruit volunteer visitors  Visit local businesses Follow-up  Respond to concerns  Plan for future

24. Retention & Expansion: What has the region done to support: –Retention of cluster-related firms –Expansion of cluster-related firms What are some potential future strategies to support cluster retention and expansion?

25. Business Network Development A formal or informal collaboration among firms that are part of a value chain for the purpose of creating a net benefit for all involved

26. Network Examples Milwaukee Seven Water Council: Transform the workforce system and create high performance talent pipelines within the region The Entrepreneurs Network: Promote job growth and business creation

27. Meta-Business Formation Strategies for generating revenue that support all local business Examples: Local coupons Local credit/debit cards Local currency Business directories Local stock exchange Businesses that support other businesses

28. What’s Next? Consider other potential strategies that could be successful in the region Further examine the regional data

29. Final Reflections  What topics did you find most helpful?  What did you find confusing?  What other data do you need?  Other items you want to mention?

30. Looking Ahead: Module Seven We will:  Examine regional assets  Explore the region’s seven capitals  Take an honest look at potential barriers  Take steps to link assets to your potential regional goals