regional economies - local strategies
DESCRIPTION
An overview of a future focused approach to understanding regional economies and developing influential local economic development strategies.TRANSCRIPT
REGIONAL ECONOMIES
DIFFERENT PATHWAYS NEED DIFFERENT STRATEGIES
PRESENTATION OVERVIEW
Leadership by local government in preparing local economies to succeed in the future is not optional - it is essential.
But how can we take our approach to regional economic strategy to the next level?
• Engaging with the global operating environment
• Understanding regional position and potential – what matters
• Moving from a land use planning derived approach to a business derived approach to strategy development
• Making the change
THE OPERATING ENVIRONMENT FOR ALL REGIONAL ECONOMIES
A changing global economy and supply
chains constantly requiring new ways
to compete
Rapidly evolving technology reducing the tyranny of
distance but increasing speed of change
Unknown factors that can’t be predicted but
must be anticipated and
managed
Ageing population and more mobile
world shifting demographics, lifestyles and
reshaping communities
On-going tensions between
resource use and
conservation
Weakened central
government control
WHAT DOES THIS MEAN FOR YOUR REGION?
IndustryDiverse, ag/mining/tourism dominated, limited?
ProximityMetro, inner/outer regional, remote?
PopulationLarge or small, rapidly changing or stable?
THREE THINGS THAT DETERMINE PATHWAYS AND OPTIONS
The nature of these 3 factors will shape any regional economy’s internal dynamics, external relationships and future opportunities.
UNDERSTANDING A REGIONS POTENTIAL
External markets: opportunity and risk
Regional leaders and
entrepreneurs
Competitive advantage and capacity for endogenous
growth
Flows of people and
capital
Core opportunity for regional influence on the future• How strong is the
region in these areas?
Core of current strategy development • How does this relate to
industry, proximity and size?
Understand and monitor the markets that regional firms rely on• Compare local firms to their wider
industries to understand competitive position
Key drivers of change• How do local
trends and drivers relate to larger socio-economic shifts
UNDERSTANDING A REGIONS POTENTIAL
External markets: opportunity and risk
Regional leaders and
entrepreneurs
Competitive advantage and capacity for endogenous
growth
Flows of people and
capital
Northern cities – diverse groups of markets and opportunityIndustry hubs – 1-2 key markets and firms will underpin future outcomesRemote – limited firms and no key markets (exc. Govt.)
Northern cities – more leadership capacity but is there alignment and vision?Industry hubs – are leaders ready for a more challenging phase, do we need different skills and capacity?Remote – performance of a small groups of leaders crucial? Capacity?
Northern cities – size, infrastructure, workforce and innovation capacityIndustry hubs – some internal capacity but core comparative advantage proximity to resourceRemote – resources and institutions
Northern cities – complex pictureIndustry hubs – substantial people and capital flows have driven growth, future trends likely to be differentRemote – capital likely to be limited but potentially transformative, transitory population a key challenge
Population projections define the
future
Ambitions and outcomes the community/LG
is seeking
Description of a common range of economic issues
USING THIS KNOWLEDGE BY SHIFTING OUR APPROACH TO LOCAL ECONOMIC STRATEGY
Identify a range of future economic scenarios and
strategic implications
Examine the dynamics of key
variables and identify key
points of influence
Focus on key industry,
location and size factors
Land use planning derivative Business strategy derivative
Opportunity – How will Local Governments with a stronger strategic view of their potential futures benefit their local areas?
Barriers – How will the availability of information, skills and expectations challenge the implementation of this approach? What is the role of researchers/RAI/LG workers?
Emergence - To what extent are some local areas applying part or all of this approach? What has been the experience?
APPLYING THIS APPROACH - QUESTIONS
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[email protected] www.regionalaustralia.org.au