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Comprehensive Study of Regionalism: Tools for Comparison and Evaluation

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Comprehensive Study of Regionalism: Tools for Comparison and Evaluation Reports Upjohn Research home page 1-1-2008 Comprehensive Study of Regionalism: Tools for Comparison and Evaluation George A. Erickcek W.E. Upjohn Institute for Employment Research, [email protected] Jason M. Preuss W.E. Upjohn Institute for Employment Research Brad R. Watts W.E. Upjohn Institute for Employment Research Kevin O'Brien Cleveland State University Claudette Robey Cleveland State University See next page for additional authors Follow this and additional works at: https://research.upjohn.org/reports Citation Erickcek, George, Jason Preuss, Brad Watts, Kevin O'Brien, et al. 2008. "Comprehensive Study of Regionalism: Tools for Comparison and Evaluation." Report prepared for the Economic Development Administration. https://research.upjohn.org/reports/20 This title is brought to you by the Upjohn Institute. For more information, please contact [email protected]. Authors George A. Erickcek, Jason M. Preuss, Brad R. Watts, Kevin O'Brien, Claudette Robey, Daila Shimek, Jim Robey, and Jacob Duritsky This report is available at Upjohn Research: https://research.upjohn.org/reports/20 Comprehensive Study of Regionalism: Tools for Comparison and Evaluation An initiative supported by the Economic Development Administration George Erickcek Jason Preuss Brad Watts W.E. Upjohn Institute for Employment Research Kevin O’Brien Claudette Robey Daila Shimek Cleveland State University Jim Robey Jacob Duritsky TeamNEO May 2008 Table of Contents Executive Summary 1 Introduction 3 Project Overview 5 Defining Regionalism 7 Existing Literature and Research on Regionalism 9 Development of a Decision Model 15 Identifying Key Community Leadership and Partnership Assets for Success: Economic Development 23 Case Studies 25 Lessons Learned 27 Summary 31 References 33 Appendices A. BEA Regions Summary Map and BEA Region Definitions (Region name followed by component counties) 37 B. NAICS definitions used in the model 65 C. Regional Dynamics (REDYN) Economic and Demographic Model 71 D. Outline of On-line Survey of EDA Staff 73 E. Narrative Reports of the EDA Site Visits 75 Executive Summary This report and the accompanying computer package pro- workforce participation instead of a healthy vide economic development decision makers a tool with job market. which to evaluate and compare potential economic devel- Z v = a standardized measure of the percentage of opment projects and efforts. Moreover, the report and ac- the industry’s workforce who are engineers companying computer package can also serve as part of a and scientists (a measure of the innovation comprehensive training and informational program for lo- potential of the industry). cal economic organizations on the importance of regional- ism in economic development. The analysis is based on a The success of any economic development project also regional approach to economic development that is depends upon local leadership. Through the use of case grounded both in academic research in the field of regional studies we identified the key local leadership and commit- development theory and in the tacit knowledge of eco- ment factors that are associated with successful economic nomic development practitioners in the field. The quantita- development projects but not readily measurable by exist- tive model generates a project score that is based on eight ing quantitative measures. The key local factors follow: regional and industry factors. The quantitative economic model can be summarized by the following equation: 1. The region’s leading economic development organiza- Project Score . = Zc + Zw + Zo + Z f + Z p + Zu + Ze + Zv tion has a stable and professional staff. The components of the score are as follows: 2. The project is a part of an existing regional economic development plan that is based on the region’s strengths Z c = the standardized regional employment multi- and potential. plier for the project industry. An employment multiplier is the ratio of the total number of 3. The project has strong leadership involvement and finan- jobs created in the region by a new economic cial commitment by at least one private company. development project divided by the number of jobs created only by the project itself. It is 4. There is a regional approach that is supported by local a measure of the project industry’s economic government units. connection to the region; therefore, an indus- try that has a concentrated supply base in the 5. The EDA-funded project is part of a greater plan for region will generate a larger employment development. multiplier. Z w = the standardized regional industry wage multi- 6. The project has strong support from the region’s major plier for the project industry. This is a meas- economic-development organizations which have devel- ure of the potential of the industry to generate oped a strong regional reputation. additional income and wealth for the region. Z o = the standardized share of less-skilled occupa- 7. There is strong financial support, both public and pri- tions in the project industry. This is a measure vate. of the industry’s capability to generate em- ployment opportunities accessible to those of 8. The initial groundwork is already in place. All of the the region’s workers who may face educa- regional stakeholders, public and private, are repre- tional barriers. sented, and all necessary regulatory and property- Z f = a standardized measure of the national fore- ownership issues resolved. cast for growth for the project industry. Z p = a standardized measure of the regional fore- No model can provide a definite “yea” or “nay” as to cast for growth for the project industry. This whether a project should be supported. However, by com- is a measure of the expected competitiveness bining a structured approach to evaluating potentially suc- of the region for that industry. cessful economic development projects with a checklist of Z u = a standardized measure of the project’s key local leadership and commitment factors, this model county unemployment rate, which is a meas- should provide decision makers with a better understanding ure of the availability of employment oppor- of the project’s strengths and weaknesses. In addition, this tunities. decision-making tool is designed to be accessible to local Z e = the standardized employment rate for the re- economic developers and project administrators alike. gion. This is an additional measure of eco- nomic need that monitors the level of labor force attachment of the county’s residents. It also helps account for regions that may have a low unemployment rate as a result of limited 2 Introduction In the current environment of limited economic develop- Still, regional growth depends on national and international ment funds for the advancement and transformation of eco- factors as well. For example, a region whose major indus- nomically distressed regions, it is clear that funds should be tries face sluggish national or international markets will allocated prudently. This requires a comprehensive partner- struggle regardless of the strengths of its local factors. ship between local economic developers and state and fed- Therefore, an effective economic growth model must take eral administrators. The partnership works best when all into account both national and regional factors. partners are on the same page in their understanding of the factors necessary for economic development to succeed in Finally, successful economic development efforts also de- fostering regional economic change and at the same time to pend upon strong regional leadership. Seldom does an eco- provide economic opportunities for the region’s residents. nomic development project go exactly according to plan. Therefore, it is crucial for the project’s leadership to have A regional project that can harness, cultivate, and enhance the trust, connectedness, and resources necessary for the these factors and that fits in well with the region’s existing flexibility to respond quickly and effectively to unexpected economic structure will face a greater likelihood of suc- challenges and opportunities. cess. Moreover, the more successful projects will likely do one of two things: they will either The formula for regional economic success seems to be ever-changing; however, almost all regional economic de- 1) build on the region’s current economic structure by velopment experts agree that regionalism is a prudent strat- closing existing gaps in supplier linkages in one or egy to use to improve the economic development functions more of its industrial clusters, or of cities, counties, and states. A comprehensive regional strategy would encourage innovation, nurture and support 2) leverage one or more of the region’s underutilized the region’s industrial clusters, and promote workforce resources. development. 3 4 Project Overview The purpose of this project is to support the development ment representatives and other EDA staff were first con- of an evaluative tool that can be used to assess the competi- tacted through an electronic survey instrument; a select tiveness of applications for Economic Development Ad- number of willing participants later took part in one-on-one ministration (EDA) public works investments, as well as to phone interviews. This process both provided an under- assist regional stakeholders in the development of their standing of the elements of successful projects identified applications for EDA assistance. Of course, substantial by those directly involved with the process and assisted the guidelines and application requirements
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