Winter 2011 Vol. 5 No. 2 Economic DEVELOPMENT The quarterly journal of Economic Development Australia
Queensland Communities Empowered and Acknowledged
STUDENTS AND BUSINESS BENEFIT FROM AN INTEGRATED APPROACH
SHIRE, BUSINESS GROUPS EMBRACE A SUPER MOORA
ECONOMIC DEVELOPMENT AND LOCAL GOVERNMENT Economic Development
CONTENTS
Chairman’s Report 1
CEO update 5
New MOU sees EDA Victoria increasing benefits to members 6
Casey Teams With Monash University to Further Grow the Local Economy 7
Queensland Communities – Empowered and Acknowledged 8
Shire, business groups embrace a Super Moora 10
Economic Development and Local Government 12
Economic Development Journal How Tertiary Research Institutions w: www.edaustralia.com.au Can Help ED Units to Facilitate The Economic Development Journal is produced quarterly by EDA for use by EDA members. Economic Development 13 It is produced only as an electronic journal and can be printed out. It is distributed four times a year. An Exploration of Enablers, Inhibitors and Measures of Success in SME Editor: Richard Walker eCollaboration. A partnership Graphic Design: Odette Boulton with University of Wollongong EDA Secretariat: Contact Naomi Braham and Sutherland Shire Council. 15 Ph: (03) 8534 5003 Email: [email protected]
By Economic Development Australia Ltd (ABN Students and business benefit from an 18 123 776 394) for the use of EDA members. integrated approach 17
Volume 5 Number 2 | 2 Economic Development
Chairman’s Report
elcome to your EDA Journal Winter edition. WIn this edition, our focus is on working with tertiary research institutions to expand research capabilities of economic development units. We have also included a useful summary of the Federal Budget opportunities; the National Digital Economy Strategy; a national EDA board update; and importantly, EDA practitioner insights from across Australia. Local Employment Coordinators to help kick-start, The Federal Budget was recently announced. implement and support local initiatives which As our nation continues to grapple with significant aim to create or maximise employment, education environmental, social and economic policy and training opportunities in their priority regional challenges, consider the following funding areas. $7.9m will be provided to conduct opportunities for your communities… approximately 40 Jobs and Skills Expos across the priority regional areas to build upon the work of Employment Coordinators.
Business And Economic • TQUAL Grants Program – $40m over four Development years ($3.28m in 10/11, $9.6m in 11/12, $9.6m in 12/13, $9.6m in 13/14 and • Sustainable Australia — Suburban Jobs $9.6m in 14/15) to stimulate growth in the – $100m over four years ($4m in 11/12, tourism industry by making funding available $32.5m in 12/13, $42m in 13/14 and for projects that enhance and renew Australia’s $21.5m in 14/15) to assist State and Local tourism offering. Governments to plan and provide for employment hubs to support local jobs, close to residential • Clean Business Australia – Green Building areas in order to reduce travel times to work Fund – $57m over two years ($25.8m in and services. It will also provide grants to 10/11 and $31.4m in 11/12) for owners companies who fund innovative ways to use the of existing commercial office buildings to reduce their National Broadband Network to reduce travel energy consumption and green house gas emissions. times. The program will focus on the outer suburbs • National Workforce Development Fund – of our major cities that are experiencing pressures $558m over four years to support training from population growth and transport affordability. and workforce development in areas of current • Infrastructure Employment Projects Local and future skills need. Government component – $44.4m in 11/12 ($2m in Victoria) to generate jobs and increase skills by supporting key infrastructure Community Development projects in areas of need in local communities. • Settlement Grants Program (SGP) – • Local Employment Coordinators and Jobs $195m over five years ($36.4m in 10/11, Expos – $45.2m over two years to support $38.7m in 11/12, $39.4m in 12/13, 20 of Australia’s most vulnerable regions until 30 $39.7m in 13/14) to provide funding to help June 2013. This measure also includes $20m for organisations manage programs which support a flexible funding pool to be utilised by each of the newly arrived migrants.
Volume 5 Number 2 | 1 Economic Development
• Saluting their Service Grants – $33.04m COMMUNITY SAFETY over five years ($6.9m in 10/11, $6.5m in 11/12, $6.6m in 12/13, $6.7m in • Safer Suburbs – $4.059m in 10/11, 13/14 and $6.7m in 14/15) to develop $3.78m in 11/12 and $500,000 in 12/13 and implement commemorative initiatives which provides funding for CCTV, lighting, safety and provide support and funding for alarms and other similar capital projects. community organisations. • Proceeds of Crime funding for projects focusing • Diversity and Social Cohesion Program – on crime prevention for seniors (including personal $12.1m over five years ($2.3m in 10/11, and financial security), victims of violent crime, $3.5m in 11/12, $2m in 12/13, $2m youth crime, diversion and prevention programs, capital to fund security infrastructure (including in 13/14 and $2.1m in 14/15) provides CCTV and lighting) and early intervention projects. grants which address issues of cultural, racial and religious intolerance to community-based organisations and information activities such EDUCATION as Harmony Day. • Higher Education Participation and • National Plan to Reduce Violence Partnership Program – $708.4m over four against Women and their Children – years – ($84.85m in 10/11, $145.46m $3.75m over three years for Community in 11/12, $181.08m in 12/13, $187.59m Action Grants. in 13/14 and $194.24m in 14/15) to eligible universities to increase the access and participation • Broadband for Seniors — $10.4m over in higher education of people from a background four years ($2.6m per year till 14/15) of low socio-economic status. for the ongoing maintenance of the 2,000 Broadband Kiosks for Seniors which provide • Regional Education Skills and Jobs Plans – older Australians with free access to the internet $19.1m over two years to develop 34 plans and assist them to gain confidence to use aimed at improving access to and participation computers through free training in their in education, training and employment. local communities.
• Community Heritage Grants – $30m over ENVIRONMENT AND CLIMATE five years ($4.4m in 10/11, $8.4m in CHANGE 11/12, $8.4m in 12/13, $4.4m in 13/14 • Low Carbon Communities program – and $4.4m in 14/15) for a competitive grant $69.8m over four years ($300,000 in process to assist local communities to manage 10/11, $28m in 11/12, $28m in 12/13 and conserve heritage places. and $13.45m in 13/14) for local government and local community initiatives which reduce COMMUNITY INFRASTRUCTURE greenhouse gas emissions, including projects such as installing energy efficient street lighting. • Regional and Local Community Infrastructure Program – $12.6m • Caring for our Country – $430.2m over in Victoria in 11/12 for direct funding three years to 12/13 ($143.4m per year) to Local Government to build and modernise to integrate delivery of the Commonwealth’s community infrastructure. natural resources management activities on six priority areas, including the National Reserve • Regional Development Australia Fund – System, biodiversity and natural icons, coastal $1b over five years from 11/12 to fund environments and critical aquatic habitats, projects that support the infrastructure needs, sustainable farm practices, natural resource and will enhance the economic and community management in northern and remote Australia; development, of Australia’s regions. and community skills, knowledge and engagement.
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• National Water Security Plan for Cities • $3.2m in 14/15) to support the development and Towns – $107.1m in 11/12 ($5m in of seven sustainability plans for regional and coastal Victoria) for six specific urban water management high growth centres by state and local governments. projects and 18 projects, across 17 remote The program includes a grants component that will communities throughout Australia. help build the capacity of local governments to develop sustainability plans. • National Urban Water and Desalination Plan $18.5m in Victoria in 11/12 ($9m) • Preparation of a national Urban Design Protocol and 12/13 ($9.5m) out of a $131.9m that will provide Local Governments, developers, total across Australia for 4 specific urban industry professionals and communities with a tool water management projects in large urban centres for designing, assessing and implementing better to help secure water supplies and reduce reliance design and construction outcomes for our cities. on traditional rainfall-dependent water sources • Support for State, Territory and Local Governments without adding to greenhouse gas emissions. in all major cities to: – complete metropolitan plans that better deliver HEALTH on the COAG criteria, not just in capital cities, but in major cities across Australia, • Aged Care Service Improvement and undertake detailed policy, planning, feasibility Healthy Ageing Grants Fund – $250m over assessment, and/or design to implement four years ($54.1m in 11/12, $61m in components of metropolitan or city plans 12/13, $67m in 13/14 and $68m in 14/15) to deliver on elements such as maximizing to provide a larger, flexible funding pool for the efficiency of land use and transport, initiatives aimed at supporting smaller aged care – facilitate housing affordability and diversity, services and promoting healthy and active ageing. – increase public transport and active travel, climate change mitigation and adaptation, – facilitate social inclusion and economic HOUSING participation • Housing Affordability Fund – $314.55m – identify and protect infrastructure corridors over three years ($56.26m in 10/11, and sites and $147.2m in 11/12 and $111.2m in – improve coordination and governance arrangements within and between governments. 12/13) to lower the cost of building new homes across Australia. The Fund is supporting • Support for the planning, development and projects that improve the supply of new housing, management of cities through establishing an and make housing more affordable for home Urban Policy Forum with key stakeholders and buyers entering the market. independent experts to advise on the National Urban Policy implementation.
PLANNING • Supporting local government to undertake reforms to streamline administration and development • A Sustainable Australia – Livable Cities approvals and implement strategic spatial planning. and Urban Renewal Program – $20m ($10m in both 11/12 and 12/13) to leverage additional resources from state and ROADS AND PUBLIC TRANSPORT territory governments as well as local councils for innovative solutions to poor urban design, high • Managed motorways – $61.4m over 3 levels of car dependency, traffic congestion, a lack years ($20.4m in 11/12, $20.5m in 12/13 of open space and rising carbon emissions and $20.5m in 13/14) to be developed by Infrastructure Australia and involving the retrofitting • Sustainable Australia — sustainable of smart technology to improve traffic flows along regional development ($8.5m in 11/12, congested motorways and outer city roads, $9.4m in 12/13, $8.1m in 13/14 and with $61.4m available to co-fund projects with
Volume 5 Number 2 | 3 Economic Development
those states and territories which sign onto national Government funding to support a three year RRTP transport reforms. national co-ordination role.
• $17.6m to eliminate another 60 dangerous black spots on local roads; National Digital Economy • $6.5m for rest stops and the other Strategy roadside facilities used by truck drivers. You may be aware Minister Stephen Conroy • $207.2m to assist Victoria’s councils recently launched this national strategy. It outlines maintain and upgrade their local roads. eight Digital Economy Goals (households; business and not for profit organisations; education; teleworking; regional Australia; government EDA National Board Update services and smart technology. We would On 7th July this month, your EDA national board encourage you to visit: http://www.nbn.gov.au/ gathered for a face to face board meeting in the-vision/digitaleconomystrategy/ Brisbane. We are grateful to both SGS and LGAQ for
hosting us throughout the day. The agenda covered National Economic Development strategic and operational issues, including our board Conference 2011 – The Digital governance and performance; EDA business plan Economy… review; sub-committee structure; board succession planning; EDA future research opportunities; state Congratulations to EDA-SA state practitioner practitioner networks update; improvements to the network national conference organising committee EDA website; relationship with RMIT University; a and in particular David Penfold for their presentation by Chifley Business School; update on outstanding work in producing a highly relevant, the 2012 National Economic Development Australia topical, ‘hands-on’ and practical conference Asia Pacific Conference and concluded with a late program. We look forward to seeing you in afternoon short site inspection of the Brisbane river Adelaide, SA, from the 4th – 6th October this year. waterfront redevelopment hosted by LGAQ CEO Conference registrations have been strong and Greg Hallam. we urge you to book your place at our premier national EDA conference today! EDA’s Regional and Remote Training Program On behalf of the EDA national board, thank you for your continuing membership, EDA’s Regional and Remote Training Program participation and support. has been recognised by the Department of Regional Australia, Regional Development and Regards Local Government Minister Hon Simon Crean and Steve Chapple his department. EDA has advocated for Federal National Chair, July 2011
Volume 5 Number 2 | 4 Economic Development
CEO Update
National Economic Development Conference 2011
he Adelaide based Conference committee Thas been meeting regularly and produced a comprehensive program involving high quality speakers operating in the digital economy.
In particular David Penfold has been able to select State Practitioner Networks have been active and convince the speakers to participate. For the in most states during the past few months. first time, EDA is using an outside facilitator, Peter Couchman. The conference is followed by a Master NSW – 50 practitioners attended a presentation by Class run by our international speaker, Robert Bell. Professor Ed Blakely on Economic Development and The output of this Class will be a Digital Economy Local Government at Marrickville City Council. Strategy for participants’ organisations. In addition there are visits to two first release sites at Willunga Queensland – The EDA Qld/LGAQ Economic and in the Barossa. Development Conference at Gladstone attracted Minister Crean and was attended by the EDA Chair The emphasis of the conference is to outline the and Professor Blakely. opportunities afforded by access to high speed Victoria – At the end of March, 86 practitioners broadband across Australia. attended the EDA Vic Conference at Wangaratta, ED Awards 2011 entitled Finance, Floods and Fire – Weathering the Change”. In early August, EDA Vic and the Planning Applications for these Awards have opened and close Institute have combined to run a Conference at on August 2nd. There is a new category covering Caroline Springs entitled Economic Development Meets applications in the digital economy. Members are urged Planning – How both Can Help Shape Victoria. not to wait until the last minute to lodge applications. The Victorians have invited applicants for the second Accreditation round of the scholarship program prior to it going national. South Australia – Apart from being active in More than 50 practitioners have achieved their organising the NED Conference , EDA SA has run ACEcD accreditation. There still seems to be a a series of Council showcase seminars at Playford, misunderstanding about the initial process. All that Tea Tree Gully and Unley Councils. is needed when first applying is for members to fill in the Education and Employment Sections. There is no Western Australia – Apart from spending need to put in PD activity. This will be needed at the considerable time trialling and refining the Remote end of the year when reapplying. Area ED Training Program, EDA WA held a successful New Membership Year Capacity Assessment Workshop at Rockingham in May and is planning a seminar on Linking Tourism, At the General meeting in July in Brisbane, members Small Business and Economic Development at the end present approved a Constitutional Change to bring of July. the membership year to commence January 1st each On behalf of the Board, I would like to thank all year. This will simplify administration and fit in with those members who have supported EDA in the the accreditation scheme where apart from fulfilling planning, organising and attending EDA activities. PD requirements, the member must be financial. Membership from July will be pro-rated to bring all Richard Walker members to a common membership year. Chief Executive Officer
Volume 5 Number 2 | 5 Economic Development
New MOU sees EDA Victoria increasing benefits to members By Frances Grigoriou, Chair EDA Victoria
he EDA Victoria chapter and the Victorian TEmployers Chamber of Commerce and Industry (VECCI) have co-signed a Memorandum Of Understanding (MOU) that will see the two peak bodies working together on economic and community development in Victoria.
VECCI is a not for profit Chamber of Commerce. Its mission is to:
• Be Victoria’s most influential business organisation at state and national levels;
• Provide excellent demand driven business services
• Be a future focussed, dynamic and modern
Chamber of Commerce Matthew Gould, Regional Business Manager, VECCI; Frances Grigoriou, Chair EDA Vic, The MOU outlines how EDA and VECCI will work and Wayne Kayler-Thomson, CEO VECCI together on joint policy and advocacy, conferences and events and expanding professional development relations and business development means that opportunities for economic development practitioners an alliance with EDA, which has the practitioners that deliver the strategies as its membership heart, The MOU formalises the current productive is a healthy and practical alliance for sustainable relationship between EDA Victoria and VECCI. planning and delivery of outcomes” Mr Kayler- The agreement is the first of its kind between an EDA chapter and an employer chamber of commerce Thomson says. in Australia. It acknowledges that both organisations Since the MOU was signed, EDA Victoria share similar goals and values and are willing and VECCI have cooperated successfully on staging to commit to a long term relationship for the benefit EDA Victoria’s regional conference in April, of members. in Wangaratta. VECCI’s CEO Mr Wayne Kayler-Thomson, a long The two partners are now collaborating on time member of EDA and pioneer of EDA in its early EDA Victoria’s metropolitan conference on the 4th beginnings over 20 years ago, believes that the and 5th of August in Melton Shire. The conference, MOU is an exciting way forward for Victoria. in partnership with the Planning Institute of Australia “The fact that VECCI have a key role to play will bring together economic development and in economic and community development across planning practitioners to discuss “Economic Victoria through its policy and advocacy role in Development Meets Planning – How both can help infrastructure, regional development, workplace shape Victoria”.
Volume 5 Number 2 | 6 Economic Development
Casey Teams With Monash University to Further Grow the Local Economy
By David Wilkinson, Manager Economic Development, Casey City Council
he City of Casey has teamed with Monash of Council’s intent to place business investment, TUniversity’s Faculty of Business and Economics attraction and development at the forefront of Council in a new partnership that will help boost local job priorities. With the huge growth in population creation and business investment. in the Casey Cardinia growth corridor, initiatives aimed at increasing business competitiveness and Casey’s Economic Development Department delivering more local employment opportunities are relocated to the Monash University Berwick Campus essential and it is hoped that the partnership between in January this year. The move allows both parties to the university and council will help in delivering much work on a range of initiatives to help strengthen the needed local jobs. local economy and create more local jobs. Monash sees the partnership as a first step Other areas of joint working include opportunities in building resources and expertise in the region which could underpin further developments such for research, policy and strategy development, as a Business Accelerator on campus at a later stage. use of the facilities at the university for business The development of a Business Accelerator would meetings, workshops and seminars and an annual also meet the requirements of one of the actions in conference addressing local and regional economic the Council’s new Economic Development Strategy development issues. Finally a feasibility study into 2010-2015. This helps in the delivery of one locating a Business Accelerator on the Berwick of the Councils key priorities, which is to provide Campus is currently being carried out by a final more local jobs for local people. Helping local year student. Student placements into local businesses develop and grow is an important businesses and business organisations are also element of achieving that. likely to provide huge benefits for local businesses Speaking at a reception at Monash University and give students first hand experiences of working Berwick Campus on Thursday 7 April, to celebrate in the business community. the new partnership, City of Casey Mayor Cr Shar Balmes said, ‘This new partnership is a key milestone There is considerable benefit for both parties in Council’s Economic Development Strategy. in establishing closer links and co-location would enable joint projects and a sound research-base ‘It will enable joint projects and provide a sound for the very challenging work required to establish research base for the very challenging work required and support new communities, in particular, to support our growing and new communities. the business community. The precinct in which ‘The location of the Economic Development the Berwick Campus is located is fast developing Department here at Monash is a clear statement into a medical, education and business hub and of Council’s intent to place business investment, the location of the Council’s Economic Development attraction and development at the forefront Department in this area is a clear statement of its priorities.’
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Queensland’s Communities – Empowered and Acknowledged
By Angela Quain, Vice Chair, EDA
he collaborative approach taken by LGAQ and He added “Forty years in public life have taught TEDA was strengthened recently with the launch me that the best ideas come from the ground up.” of the inaugural Queensland Awards for Economic Development Excellence at the LGAQ Economic Crean’s address preceded a lively and engaging Development Conference in Gladstone. panel session with representatives from three levels of government including RDA representatives, The Hon. Simon Crean, Minister for Regional discussing the progress of RDAs. It’s clear there Australia, Regional Development and Local Government is much to be done in raising the profile of this made it his imperative to attend and delivered a new mechanism for local engagement to address key message of localism and empowering local the big ticket items for Queensland’s regions. communities to take control of their own destiny. Crean was very clear in his statement that He spoke about the potential of the State across RDA’s would not be “unpicked” just as Centrelink its diverse regions, the challenges of the two speed and Medicare cannot be undone. economy and, of course, the role of RDA’s in
facilitating a coherent regional voice. There were positive noises being made about He said “The patchwork nature of our economy new investment to strengthen the tripartite calls for a new approach That means the answer lies relationship spruiked by RDAs including with you - because the regions and local government the intention to increase Commonwealth areas are the patches, and we want to draw on your representation at a regional level – with additional input to make the patches work better.” staff to be placed in Brisbane and Gladstone.
Paul Bell, Chair Queensland Local Government Association, Hon Simon Crean, Minister for Regional Development and Local Government, Stephen Chapple National Chair, EDA; and Angela Quain Deputy Chair EDA and Economic Development Policy Adviser LGAQ
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The State’s Regionalisation Strategy was a key topic for discussion, supplemented by case studies of Federal and State investment in New South Wales and Victoria in the ‘Evocities’ and ‘Make It Happen’ regional investment attraction programs.
National Chairman of Economic Development Australia, Stephen Chapple addressed delegates on the professional development opportunities being rolled out for practitioners and touched on a range of proposals under consideration Queensland practitioners enjoying the Dinner by the Commonwealth – new programs which EDA hopes to announce soon. He also praised the strong partnership forged with LGAQ. importance of local council initiatives and strong A total of forty nine speakers entertained and political leadership from council representatives engaged delegates over a three day period to sustained regional economic growth. – attendees delighted by the interactive and “The people and projects recognised here all build contemporary nature of many of the sessions capacity and resilience in their communities,’’ he said. focussing on the job in hand, embracing new horizons and sustainability – building back better for “At a time of increased economic uncertainty, future needs and harnessing new technology and they provide innovative ways to ensure their commercial opportunities. communities thrive.’’
The Hon. Stirling Hinchliffe, Minister for With personal messages sent on to award winners Employment, Skills and Mining talked about resource by Simon Crean, the accolades went to Mackay industry growth and workforce challenges and was Whitsunday Regional Economic Development followed by Professor John Cole who challenged Corporation for Strategic Partnerships and Cairns realistic prospects of the State for achieving economic Regional Council for Economic Environmental Innovation. sustainability in the longer term, given the apparent ‘short term’ focus of many of the measures being Logan City Council Mayor, Pam Parker, was taken to address these current issues. recognised for her passionate advocacy in the field – receiving the Economic Development Champion – Professor Ed Blakely (University of Sydney) has Elected Member award. been in demand internationally given his invaluable experience in economic recovery efforts and the EDA National Chair Stephen Chapple said extreme events affecting not only Australia but New Cr Parker provided strong leadership in advocating Zealand, Japan and parts of America. His keynote quality development that would create jobs for address which focussed on leveraging regional the future. advantages and building resilience preceded his “She not only goes about building an economy, workshop - bursting with activity in which ideas were she builds a community,’’ he said. born and shaped, progressing those themes. Despite the work in hand, the conference and Along with the work progressed, the event was awards showcased that councils are ensuring praised for its networking opportunities, new Queensland is well and truly open for business friendships, mentoring opportunities and professional on every level. learnings achieved. One of the highlights of the event was the inaugural EDA Queensland Awards for Interim EDA Queensland Chair, Angela Quain added: Economic Development Excellence. “All indications show that Queensland is proving Local Government Association of Queensland a fierce competitor for October’s EDA National President Paul Bell said the awards highlighted the Awards in Adelaide – watch this space!”
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Shire, business groups embrace a Super Moora By Simon Millcock & Ling Geh
oora’s quest for economic growth has been Mgiven a boost following a unanimous vote by Shire of Moora chief executive council to act on talk of becoming a ‘super town’. Lynette O’Reilly said there The motion will see the shire seek a memorandum would be further opportunities of understanding (MOU) with the Department of for people to ‘have a say Regional Lands and Development, outlining the process needed to upgrade existing infrastructure to cater for and make a contribution strategic growth over the next ten to 15 years. to the future of Moora’.
Councillors also voted to form a committee of community members, business, councillors and Development Commissions with the State He highlighted the need for cooperation between Government to oversee the process. state and local governments to equip the region with necessary facilities, but pointed out that having In the first of many community consultations, business groups on board with development groups to the shire held two workshops with Moora business canvass potential new industry was a major first step. and community members recently, with guest speakers Simon Millcock and Ling Geh, both Ling Geh, from the City of Belmont’s property and highly experienced in Local Government economic development team, said one of the best economic development. tools in attracting new business investment was well produced glossy publications such as a detailed Simon was instrumental in liaising with the South business profile, local planning scheme Australian government and interstate businesses to and a business newsletter containing local bring industry to the Adelaide Plains region. business success stories. He told of the process of attracting intensive Ms Geh said in order to attract more families livestock, poultry, piggery and horticulture business to populate the City of Belmont, its council made and associated packaging, processing and enhancing parks and public spaces a priority, transporting business to the towns he worked with. and ran an extensive advertising campaign. He said the first step was for the community Shire of Moora chief executive Lynette O’Reilly said members to develop their own confidence in there would be further opportunities for people to ‘have their town. a say and make a contribution to the future of Moora’. “We had to come out of the concept we were “It was clear from the workshops the key factor living in a dry dustbowl and celebrate who we were in the future direction of Moora as a super town as a community.” is developing economic drivers around our existing Simon emphasised the need for all community and emerging industries and to ensure we continue members, groups, organisations, boards and councils to look for new and innovative opportunities,” to be supportive of growth. Ms O’Reilly said.
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EDA Directors Simon Millcock and Ling Geh address participants at MOORA workshop
“Having our businesses and farming communities was also raised, as was the need for more on board will be critical to developing a sustainable communication between these groups and the plan for growth.” broader community.
Workshop participants had the chance to suggest Further collaboration with youth and indigenous steps they believe need to be taken in the process communities was suggested. of promoting growth in the town. The need to prioritise support of existing businesses Suggestions included taking proactive steps as well as attracting new business was another to change the profile of Moora projected, and steps recommendation. to foster pride in the town within its population. Housing issues were also raised, including The importance of regular communication a current shortage of appropriate housing for between shire and business development groups employees of existing business.
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Economic Development and Local Government By Duncan Gilchrist, Economic Development Manager, Marrickville City Council
EDA NSW Practitioners being addressed by Professor Ed Blakely
he “Evening with Professor Edward Blakely” Tjointly presented by EDA NSW and Marrickville Council on Friday 15 July proved to be an overwhelming success. Over fifty practitioners, senior managers and elected officials were treated to a thought provoking introduction to the new forces for local economic development. Dr Blakely provided insights into where economic development will pave the way in five key directions; city rebuilding, carbon re-structuring, innovation funds, new fuels and new start-up Ken Gainger, General Manager, Marrickville City Council, clean energy firms. He also stressed the Richard Walker CEO EDA, Fiona Byrne, Mayor; and Prof Ed Blakely need for new infrastructure for a knowledge intensive economy; community work centres, city based education centres, value of the NBN to small places and outsourcing through computer support centres with this new infrastructure being supported through the use of value capture financing tools. In conclusion Dr Blakely provided a very interesting example of mixed income education based settlements. Rather than take questions guests were invited to sample some of the local Middle Eastern cuisine available in Marrickville, grab Stephanie Kelly, Economic Development Manager, Canada Bay Council; a beverage and exchange ideas with Tom Durick, Asst Regional Director, NSW Dept of Trade, Investment, Ed in a more relaxed atmosphere. Regional Infrastructure & Services, Prof Ed Blakely
Volume 5 Number 2 | 12 Economic Development
How Tertiary Research Institutions Can Help ED Units to Facilitate Economic Development
By Sasha Lennon
Regional Economic Development scientific and technical services, the creative in 21st Century Australia industries and even certain segments of the manufacturing sector. However, contrary to popular Today, the concept of a ‘knowledge economy’ is belief, ‘knowledge’ is not a separate sector of the embedded in most economic development policy economy. Rather, it is embedded in all industries. settings throughout Australia. For many regions, this is underpinned by a desire to transition the economy This notion is supported by the US-based Oregon away from a reliance on once prosperous but since Council for Knowledge and Economic Development declining industries to one which is characterised by which describes a knowledge economy as one ‘knowledge-based industries’. “where the keys to wealth and job creation are the extent to which ideas, innovation and technology are In 21st Century regional Australia, economic embedded in all sectors” (OCKED, 2002). prosperity is not just about a region’s stock of natural resources or its quantity (and quality) of land, labour and capital. More than ever before, regions need to Universities, Research Institutes identify their ‘smarts’ in combining input and talent, and ED Units leveraging economies of scope, discovering new markets, inventing, and increasing productivity. In All levels of education – primary, secondary short, they need to be innovative. and tertiary - contribute to a region’s economic development. But it’s the tertiary education sector A number of research reports link knowledge and that is at frontier of economic development in the new innovation with economic growth. For example, the economy. OECD (1998) concluded that “long-term growth rates in OECD economies depend on maintaining Universities and technical colleges, together with and expanding the knowledge base, while making it other research organisations and think tanks as well more responsive to economic and social needs”. as innovation centres and industry incubators, plus of course the business sector, largely determine a Such findings reflect a general consensus amongst region’s knowledge economy capabilities. international researchers, academics and think tanks that those countries and regions which adapt most Universities and research institutes across Australia readily and exploit the opportunities offered by the are involved in initiating research, patenting knowledge economy will enjoy rising incomes and research, commercialising ideas and generating prosperity while those which lag behind may face ‘spin-off’ companies. relative economic decline. These activities are backed by Federal Government ‘Knowledge-based industries’ include, for example, policy including funding for Co-operative Research financial and legal services, telecommunications, Centres (CRCs), ARC ‘Discovery’ and ‘Linkage’
Volume 5 Number 2 | 13 Economic Development
projects, ongoing research into matters such as Much of the literature discusses how the ‘internal’ population dynamics, regional health and well-being, management and operational measures of ED regional road transport, community infrastructure and Units have been successfully used to: link regional industry trends and issues, as well as the allocation of leadership with the strategic objectives of universities; various competitive national grants. encourage university staff participation in regional engagement activities; and galvanise a partnership Tertiary education institutions and their research approach, promulgated and consciously considered arms or spin-off companies support the knowledge by universities, to regional knowledge economy economy through other ways including: training development efforts. a labour force including scientists, professionals, technicians and entrepreneurs; accessing global The research concludes that universities and knowledge and world’s best practice through the other tertiary research institutions can optimise their research they conduct; and developing the social contributions to economic development by building capital of their community through outreach work a critical mass in a limited number of strategic including public lectures, representation on bodies research areas and ensuring that these activities are like the RDA Committees or semi-autonomous well connected to members of their region’s relevant ED Units, undertaking consultancy projects and industry clusters or value chains. publishing independent critiques on public policy. Importantly, it is the role of the region’s ED Unit, as the lead agency for economic development to Nurturing Institutional play its role (amongst other things) in establishing Relationships and then nurturing collaborative structures between all economic development stakeholders. This While research institutes have a valuable includes the tertiary research organisations which contribution to make to regional prosperity, it is can play such a fundamental role in regional important to remember that promoting economic economic development. development is not the primary role of universities Sasha Lennon (B.Ec., Grad. or think tanks. Their primary roles are to educate Dip. Advanced Economics) is a people, explore new ideas through rigorous, Brisbane-based Director of SGS independent research and to produce new Economics and Planning Pty knowledge. Consequently, efforts to leverage tertiary Ltd. He is a qualified economist research institutions to enhance a region’s growth and an Australian Certified prospects must recognise and respect this. Economic Developer (ACEcD) Best practice literature centres on the integral with EDA. He is currently role of tertiary research institutions like universities undertaking a Master of Journalism within the in regional leadership and regional engagement, Creative Industries Faculty at Queensland University as well as on university contributions to knowledge of Technology. He can be contacted by email at generation and research commercialisation processes. [email protected]
References:
1 Easterly, W. & Levine, E. (2001), “What have we learnt from a decade of empirical research on growth? It’s Not Factor Accumulation: Stylized Facts and Growth Models”, World Bank Economic Review, Vol. 15, No. 1 2 OECD (1998), Technology, Productivity and Job Creation: Best Policy Practice, Paris 3 Oregon Council for Knowledge and Economic Development (December 2002), Renewing Oregon’s Economy: Growing Jobs and Industries through Innovation 4 State Science and Technology Institute, (2006), A Resource Guide for Technology-based Economic Development, viewed 18th October 2007,
Volume 5 Number 2 | 14 Economic Development
An Exploration of Enablers, Inhibitors and Measures of Success in SME eCollaboration A partnership with University of Wollongong and Sutherland Shire Council
By Derril Greenway & Anne Flischer
his research project formed the initial exploratory A significant part of the SSC’s Strategic Plan Tstage of an Australian Research Council (ARC) (Strategic Plan 2007) recognises the need for supported partnership between The University of collaboration amongst small businesses in Wollongong (UoW) and Sutherland Shire Council the Sutherland Shire. A key statement in this (SSC). The initiative is a national research project that plan explains: “Collaboration with other small explores the practicalities of eCollaboration in Small businesses can be critical to ensuring future & Medium Enterprises (SMEs) and will focus on the viability and to improve access to markets” many ways businesses compete and innovate through – this is exactly what you intend to accomplish collaboration, along with how they can benefit and with this research. In response to this need, grow their business through eCollaboration. the council has committed substantial resources to the establishment of mechanisms for Previous research conducted in this area has revealed facilitating collaboration. SSC currently has the significant benefits in innovation and competitiveness, three successful programs running in support stemming from collaboration, for individual businesses, of SME collaboration, two of these are operating communities and local and national economies. in conjunction with the University of Wollongong. Research on how to best encourage and facilitate The three programs are: SSHED, SSHEDX collaboration has however been limited. and SSHEDnet. The primary investigators were involved through The Sutherland Shire has 52,000 active ABNs the Commerce Internship Programme at UOW which and most of these are small businesses. This provides an opportunity for students to integrate study provided SSC and its community of SMEs and apply their university knowledge in an industry with an essential understanding of how we can context. This forms part of ongoing research better facilitate collaboration amongst businesses relationships between academics at UOW and the using electronic means for communication SSC Economic Development Unit. and networking, what the typical barriers and impediments are and how we can overcome them. SSC, through the Economic From this information, we are in a better position Development Unit, provided: to advise our resident businesses.
• letter of support to assist in our application for the linkage Grant from the Australian Research Council Summary of Findings for the purpose of studying e-Collaboration with • The key factors identified that can potentially clusters of firms within the Sutherland Shire enable or inhibit collaboration in general are: • guidance throughout the project for the students and • Focus on Business Outcomes – Businesses • links to the local business community (with essentially consider their profit prospects in a focus on 3 industries in stage 1: IT, Marine, decision making related to collaboration and must AIDN and Tourism industry for stage 2). directly see the benefits to their core business.
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• Limited Intervention – Facilitation of SME collaborative relationships, and also provide businesses collaboration should be limited to providing the with practical information for future opportunities and means for collaboration to occur. Collaboration itself development in collaborative projects must be driven by business members’ objectives.
• Personal Facilitation – Information and Project benefits for the communications technologies (ICT) can enhance Sutherland Shire collaboration but cannot be wholly relied upon. Personal contact is still essential in forming • Activities to Achieve the Management Plan; productive relationships. People & Place indicators
• Trust – Development of trust between stakeholders • Image of Council, as an active agent in develops overtime but is important for ensuring Maintaining and sustaining Our Prosperous mutual ownership and democracy in decision Local Economy making in collaborative projects. • New Jobs in the Next Wave of Business Best • The key factors identified for measuring the success Practice (e-collaboration) of collaboration are: • Business Sustainability
• Qualitative and Quantitative Feedback – Both have • Maintaining and Enhancing Our Local Industry been proven beneficial in monitoring the success and Business Community of eCollaboration within cluster communities. • Skills Development • Membership Participation and Motivation – Patterns of membership can be identified and • Directly Addressing Local Skills Shortages integrated into cluster strategic planning. • Preparing our Local Businesses for the • Resulting Business Opportunities – By identifying Next Wave of Competitive Practice previously successful ventures, clusters can further • Promoting Sutherland Shire as a Modern, promote and improve eCollaboration. World Connected Business Community • Productive Networking – eCollaboration provides • Growing Local Business Engagement in EXPORT the opportunity to gauge the success of professional networking opportunities. Council was pleased to be involved with the UoW on this exciting project. Our partnership with the Overall Conclusions UoW is afterall an extension of our relationship founded on the SSHED-UoW loftus campus. • The research uncovered detailed rich information Council continues its relationship with UoW on the dynamics of SME collaboration that in 2011 with potential projects including: developed the eight key findings above. 1. An Economic Development Model and the • If the enablers and inhibitors are not explicitly 2. Impact of SSHEDnet into regional areas addressed and tailored to the collaborative project, (this will compliment the e-collaboration project). relationships may break down.
• Collaboration, is complex and not all businesses or industry areas are suited for collaboration. Further information: However, commitment to identifying and Sutherland Shire Council’s Economic overcoming the barriers and ensuring success Development Unit is supported with evidence, addresses some P: (02) 9710 0607 of the difficulties involved in collaboration E: [email protected] W: www.sutherlandshire.nsw.gov.au/ The key findings developed through this research aim business to provide a model to evaluate potential and current
Volume 5 Number 2 | 16 Economic Development
Students and business benefit from an integrated approach Frankston’s Student Discount Card Scheme (Splash Card)
By Johnathan Reichwald
Jonathan Reichwald is the City Centre Place Maker at Frankston City Council. His background in commerce and marketing has enabled Council to implement a number of innovative programs with clear outcomes.
E: [email protected] Web: www.splashcard.com.au
Abstract: local business community is arguably amongst the best in Victoria. Frankston’s Student Discount Card Scheme (branded as Splash Card) is an industry leading economic Despite the merit of such programs, the ability development program that delivers local employment, of Local Government to influence key economic encourages local shopping and engages youth. drivers in the ‘here and now’ is a challenge all Economic Development Practitioners face. The program predominantly operates through How many times have you heard business online mediums; web site, email, SMS, Facebook operators plead “but how does that help me?” and Twitter – connecting with youth through the or “that solution is great in the long-term, but avenues that they prefer. it doesn’t help me at the moment”? The methodology behind Splash Card leads the This formed the rationale behind Frankston’s way forward for Councils to engage youth and Student Discount Card Scheme (SDCS). This is alert them to local employment opportunities in a program developed to achieve two fundamental a no-nonsense fashion. economic drivers: local sales and local employment.
The integrated program addresses a number ver the past two years Frankston City Council of issues – mainly in Frankston’s city centre: Ohas implemented an integrated Economic Devel- opment program aimed at supporting local business and students. Frankston’s great juxtaposition: Many local economic development activities focus on To put the program into context, the Frankston strategic imperatives, like planning, development and city centre is the subject of a great juxtaposition investment attraction. Meanwhile, grass roots programs between its hard top shopping centre (Bayside are often geared towards export and manufacturing; Shopping Centre) and the array strip shopping whilst retailers may benefit from precinct marketing that surrounds it. Whilst Bayside Shopping resulting from special charge schemes. Centre prospers (12 million visitors annually), the Frankston City, like most other municipalities, has shopping strips suffer from high vacancy rates and a number of these programs in place. In fact, the high turnover of businesses. As a result, the streets range of business support offerings available to the often have a hard-edged ambience.
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The SDCS was made available only to street businesses that do not benefit from the marketing resources that are afforded to tenants of the shopping centre.
Encouraging students to shop in Frankston
Traditionally, the streets of Frankston are often overlooked by young people as a destination to shop. Many are drawn into the shopping centre, or further afield to other regional shopping centres.
One particular missed opportunity in Frankston’s Student using the Splash Card city centre is its access to a catchment of 15,000 Chisholm Institute of TAFE students. Located just 100 Youth disengagement in Frankston City is about metres east, the campus is disconnected from the city 6% higher than the state figure – the SDCS provides centre by Frankston Railway Station. This creates a platform for students (particularly secondary) a psychological and physical barrier for students to enter the workforce – often in casual positions. to shop in the city centre. It also allows promotion of the trades (many of which have skills shortages) to students who may wish The SDCS provides an added incentive for to undertake the Victorian Certificate of Applied students to explore and shop at businesses on the Learning or are considering leaving school early. streets of Frankston.
How it works: Lack of appropriate marketing tools for small business The SDCS scheme provides discounts and special offers at over 50 street-side businesses in Frankston’s During the program’s inception, Council’s Economic city centre and was made available (free) only to Development Team walked the streets of Frankston, these businesses. Students simply present their card selling the SDCS concept to business operators as a to redeem the offer. It is worth noting that the focus free marketing tool. The team is constantly fielding is on students in their final years of secondary complaints from businesses that there are too few schooling and all tertiary students. affordable marketing mediums – SDCS is new and The program is branded as ‘Splash Card’. A non- free and connects with clients at a deeper level than bureaucratic look and feel to the campaign collateral any traditional marketing methods. is critical in engaging the demographic.- the fundamental element behind the campaign’s success being Customer Relationship Marketing (CRM). Retaining locally educated talent Students are asked to register their Splash Card Another key gap identified has been Frankston online before using it, including contact and study City’s difficulty in retaining a skilled local workforce. details and in turn are invited to participate in Educated locals are drawn to work in inner-city specific social media platforms. Over 1000 students hubs and are unaware of the employment now participate in the campaign through Facebook, opportunities that are available locally. Meanwhile, Twitter and YouTube, subsequently new tools such there was no platform for local businesses to engage as LinkedIn – the social network for professionals the local talent. are being considered.
Volume 5 Number 2 | 18 Economic Development
Jonathan Reichwald is the City Centre Place “Unprecedented numbers of Maker at Frankston City Council, he says students from surrounding areas “Unprecedented numbers of students are now requesting cards – having from surrounding areas are now requesting cards – having students from other areas students from other areas coming coming to Frankston to spend is a fantastic to Frankston to spend is economic outcome.” a fantastic economic outcome.” “Databasing has provided the impetus for CRM and has armed Council with unprecedented knowledge about its student community. To date, been employed by local businesses (with minimal over 2500 students have registered online. promotion). Council is now looking to grow its We know how to contact them, where they study, unique job matching service through increased what they study and if they are in their final year.” promotion to the business community. Most Councils have business newsletters, online Employing locally educated talent increases directories and the like. Through the Economic intellectual capital, professionalism and Development Team’s ongoing dialogue with the entrepreneurship – key ingredients for a business business community, a ‘job matching service’ was community to thrive. Employing locals also has social promoted with businesses providing details about and environmental benefits. job vacancies. Whilst all this is occurring behind the scenes, Jonathan added “When the student information the city centre retailers are benefiting from students gathered reached a critical mass (late 2010), we who are spending money at their business. were able to promote jobs to appropriate students. For example, if an IT firm is looking for a bachelor degree student in their final year, we have the ability to email the job opportunity directly to students that fit Lessons Learned: these criteria.” a) Relationships, Relationships! For local business the scheme provided the Over 100 organisations have been engaged previously missing platform that gives free access through the program. At its most basic level, the to locally educated talent. In the short time that the SDCS has improved relationships with businesses service has been functioning, over 20 students have and educational institutions. Whilst directly providing businesses with sales and employees; students are provided with career pathways at educational institutions (in essence, enhancing their product). Chisholm Institute of TAFE has been so supportive, that they distribute a Splash Card to each of their 15,000 students. Monash University also distributes the cards.
b) Rolling your sleeves up The team walked the streets of Frankston to sign businesses up to provide discounts and special offers. Even though it is a free service, the concept still needs to be sold to traders.
When it comes to the job matching service, do not ask businesses for extensive detail. Other institutions (government and educational) have job matching services that require detail to the nth degree – Student using the Splash Card
Volume 5 Number 2 | 19 Economic Development
a quick email with information about the organisation lost in campaigns that are predominantly and the position they want filled should suffice. online. The Splash Card and accompanying brochure (featuring each participating Do not underestimate the power of ‘traditional’ business and online registration instructions) social media is the backbone of the campaign. The ability In this day and age of tweeting and status updates, for students to hold/read something and one cannot forget the dinosaur of social media – put it in their wallet keeps it front-of-mind. email. All job matching communications are carried All participating businesses have point-of-sale out via email. It is personal, targeted and relevant. and shop front promotional material.
c) Online campaigns still need offline Frankston’s Student Discount Card Scheme promotion (Splash Card) was awarded the 2011 National In the same vein as the previous point – the Local Government Award in the ‘Inspired importance of traditional marketing is often Cities’ category.
Volume 5 Number 2 | 20 rEgistratioN form/tax iNvoicE Economic DEvElopmEnt AustrAliA limitED ABn 18123776394 NatioNal EcoNomic DEvElopmENt NatioNal EcoNomic DEvElopmENt coNfErENcE 2011 coNfErENcE 2011 The DigiTal economy 4-6 october, 2011, stamford plaza 150 North terrace, adelaide, sa The DigiTal economy to rEgistEr: Fax, phone, Email, mail or online at www.edaustralia.com.au/NEDc2011 Email: [email protected] phoNE: (03) 8534 5003 fax: (03) 9530 8911 mAil: level 8, 574 st Kilda rd melbourne 3004 futurE EcoNomic opportuNitiEs for govErNmENt, busiNEss aND Attendees Costs Please indicate number of attendees for each of the below rEgioNal orgaNisatioNs Delegate 1: name nedC 2011 MeMbers rAtes Full conference Day 1 Day 2 Dinner [ ] x conference, ED Awards & Dinner $980 = [ ] [ ] x conference (ED Awards & Dinner not incl) $860 = [ ] 4-6 October, 2011, Stamford Plaza position [ ] x one day rate $525 = [ ] 150 North Terrace, Adelaide, SA Email [ ] x ED Awards & Dinner $130 = [ ] Delegate 2: name nedC 2011 non-MeMbers rAtes [ ] x conference, ED Awards & Dinner $1125 = [ ]
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