Define Your Region Define Your Region

Regionalism and Regionalism and Community Success Community Success

League of Wisconsin Municipalities Wisconsin Dells, WI Stretching your resources Dave Ivan Michigan State University Strategically leveraging your resources

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Breakout session Agenda Acknowledgements • What is a region? • Ed Morrison, Purdue University • What is currently working – you share • Steve Deller, University of Wisconsin • Why that’s not enough • Norm Walzer, Northern Illinois University • Economic realities/waves of ED development • Southern Rural Development Center • Leadership and regional success • Interactive activity • Examples from other successful rural regions • Moving forward

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Define your region Define your region

Think about your community What brings together the and its current opportunities region you envisioned? and challenges. What does the region that your community exists in look like?

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1 What works regionally? Define your region • Regional public safety efforts • Regional infrastructure investments – Transportation, water, broadband • Regional education systems What challenges divide the – K-12, Local Community Colleges region you envisioned? • Others?

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Low-hanging fruit Did You Know?

Challenge: https://www.youtube.com/watch?v=TwtS6Jy3ll8 thinking deeper and more strategically is hard!

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It is not the strongest of the species that survives Video Thoughts? nor the most intelligent but the ones most responsive to change

-- Charles Darwin

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2 The Rules Have Changed Global Competition Every other region in the world is now competing with us for prosperity in a new economy world.

• Post-WWII dominance – They have flexible infrastructure, a more flexible decision- making framework, and better partnership between • Growth is increasingly government and business. – They do not have our legacy costs (pensions, health insurance, occurring elsewhere. etc.). • Is America declining? – They do not care about us. • or World Catching Up? We have to change the way we think, act, and do business at every level in the public, private and nonprofit sectors in • New competitors order to compete. • New opportunities

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Mega-Trends: Global Economy

. Expanded importance of . Specialization of regions creative and knowledge and communities We have to recognize economies . Expanded growth of . Outsourcing that divides entrepreneurs and the self- that it’s a changing “value-chain” functions into employed world with changing more productive, . Connections between interdependent activities places having economic trends complementary specializations or resources

Three Waves of Economic Development Component First Wave Second Wave Third Wave First Wave Goal Industrial Recruiting: Cost Competition: Retain Regional Competitiveness: Enhance Attract outside and expand existing regional resources to promote Component First Wave businesses businesses regional collaboration and clusters Goal Industrial Recruiting: Attract Strategies Provision of financial • Reduction of taxes • Entrepreneurship incentives • Deregulation • Regional collaboration outside businesses • Industry consolidation and • Identification and development of Building of industrial cost cutting (i.e., lean regional clusters and import Provision of financial incentives parks manufacturing) substitution activities Strategies

Keys to Offer government • Develop training programs • Build on unique regional assets Success funds for subsidies and • Strengthen the health of (such as human capital, amenities, Building of industrial parks tax breaks existing firms creative economy; innovation) • Provide social and physical • Focus on leadership development Offer government funds for Develop an industrial resources • Develop/maintain quality Keys to Success infrastructure environment subsidies and tax breaks • Bridge economic and community development Develop an industrial

Source: Blakely & Ted Bradshaw (2002); Drabenstott (2006); Hembd (2008) infrastructure 18

3 Second Wave Third Wave

Component Second Wave Component Third Wave Goal Cost Competition: Retain and Goal Regional Competitiveness: Enhance expand existing businesses regional resources to promote regional collaboration and clusters Strategies • Reduction of taxes Strategies • Entrepreneurship • Deregulation • Regional collaboration •Industry consolidation and cost •Identification and development of cutting (i.e., lean manufacturing) regional clusters and import substitution activities •Develop training programs Keys to Success Keys to Success •Build on unique regional assets (such as •Strengthen the health of existing human capital, amenities, creative firms economy; innovation) • •Provide social and physical 19 Focus on leadership development 20 resources •Develop/maintain quality environment •Bridge economic and community

Regional Economic Development Regional Economic Development Economic growth occurs Economic growth springs whenever people take resources from better recipes, not just and rearrange them in ways from more cooking. that are more valuable

Paul Romer Paul Romer Nobel Prize in Economics Nobel Prize in Economics

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We are at the end of an era where wealth has A new economic curve is forming where been created by old economy strategies wealth is created by new strategies

Our Grandchildren’s Economy Prosperity Prosperity

We are here Our Grandfather’s Economy Our Grandfather’s Economy Time Time

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4 Our job is to find pathways from one Our Grandfather’s economy to the other functioned with clear boundaries

Regional Food Counties Systems K-12 Schools

Regional Energy Cities/Towns Regional Planning Systems Workforce Organizations Agencies Tourism Clusters Economic Development Innovation Hubs Chamber Organizations

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Despite realities of our Our regions are covered with invisible grandchildren’s economy, regions are fences that no longer work, but not responding differently continue to constrain us

Counties K-12 Schools

Cities/Towns Regional Planning Workforce Organizations Agencies

Economic Development Chamber Organizations

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Often we struggle to Regional Scales Defined define our region…so Planning what is a region? Area State • Geographical area of similar characteristics . Similar within Nation . Different between (different from other places)

• Place of interest to people, with a unique identity and meaning Working Region of 30 Neighbors 30

5 What Makes Sense Once defined, successful regions and

• Sometimes neighboring their leaders are moving away from counties do not have our grandfathers economy by: anything in common;

• Do not let state (or county) • Focusing on lines define regions; opportunities, not problems; • Do not be afraid to go beyond county lines to • Committing themselves identify towns or major to “closing triangles;” cities for rural/metro interests;

• Find areas that share

interests and goals; 31 32

New leadership approaches are Regional Success required for success Grandfather’s Economy Grandchildren’s Economy Fargo, North Dakota Region • Among the lowest unemployment rates in nation (2.8%); Hierarchies Networks • Strategically connecting NDSU & MN State @ Moorhead to identify Command/Control Link & Leverage areas of excellence; • Conducting cluster analysis to Vertically Integrate Horizontally Connect connect industry with research;

Transactions Relationships Sparta, North Carolina Region • Developed training certification Protect Boundaries Strengthen cores program for advanced materials cluster with community college; • Changing culture among residents relative to education & training.

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Successful regional leaders are Why a Regional Networks? transitioning to our grandchildren’s economy by strengthening networks They Promote the Three Cs: . Conversation: Helps promote discussions among public & private sector leaders and local residents; builds regional awareness; focuses on consensus building; focuses on the future . Connection: Regionalism is a contact sport that requires personal interactions at every stage of the game . Capacity: Helps leverage key assets; it weaves the system of support needed to create and attract businesses

A global map of internet connections 35 Source: Council on Competitiveness (2010)

6 Developing a regional economic development Think regionally for 5 minutes Plan of Action 1. Turn to your seat neighbor(s); Three major components of regional economic development plans: 2. In 3 minutes, talk about your community – its • Encourage regional critical mass – act assets and challenges regionally to compete globally 3. Explore how your communities could partner • Prioritize investments in public goods on a future initiative to enhance vitality and services to unlock a region’s 4. Share your results economic potential • Spur innovation to transform a region’s economy

37 Source: Mark Drabenstott (2010)

The three “Cs” uncover networks Strategic Doing

• Creating “safe space” for complex thinking; • What can we do together • Uncovering assets and networks with regular forums; • What should we do together • Linking assets to define new opportunities; • What will do to together

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Leveraging Regional Assets Regional Network Success

Purdue’s Center for Regional Development (PCRD) Juneau County, WI • Tools to help regions ID competitive • Entrepreneurship advantages (thru cluster & innovation & Innovation Club indexes) • Provides new • PCRD facilitating “civic regional networks & networks” to link assets support systems not bounded by town boundaries.

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7 Building Regional Systems The three “Cs” foster collaboration

Prosperity • In a changing environment, every place must consider systems that builds Productivity on these networks to foster collaboration, encourage Innovation innovation, and promote sustainability. Collaboration Know Y 43 44

Greater collaboration fosters learning, Strategic regional alliances innovation and prosperity • Corvallis, Oregon “Prosperity That Fits”

• North Carolina’s “Research Triangle North”

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Successful regionalism requires It starts with focusing on opportunities a new type of leader • Vision East (www.ncnortheast.com) Grandfather’s Leadership What we need today – 41 counties in eastern North Carolina – Focus on military, tourism, agriculture, advanced manufacturing and entrepreneurship Centralized Distributed & Shared • Texoma Regional Consortium Single Leader Many Leaders (www.workforcesolutionstexoma.com/html/news.html) – 13 counties in northern Texas and southern Command & Control Link & Leverage Oklahoma Lead from the front Lead from front & rear – Focus on advanced manufacturing and entrepreneurship

• Montana’s Agro-Energy Plan (dli.mt.gov/wired/wired.asp) – 32 counties and six Indian Reservations – Focus on renewable energy development as tool for 47 rural entrepreneurship 48

8 New Partnerships Emerge Leveraging Regional Assets

Peoria, Illinois Greater Milwaukee Water Cluster • Next Innovation Center • Recognize strategic position of water-related industries • 50,000 square feet • Connect with leading academic researchers worldwide • Key partners include CAT, • Considering water/energy nexus Bradley University, Medical Facility, City of Peoria

Moscow, Idaho •Palouse Knowledge Corridor •Joint WSU/UID student innovation competition

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Leveraging Regional Partnerships Successful Regional Leadership

Key Lessons Columbus, Indiana • Regional initiative to advance Create a “home” for institutional partnership…work individuals by at least one level in win/win their education, training, job placement, and income. Reinvent “regional governance”…make • Working with 34 High School decisions as a region, not just independent counselors on regional cluster jurisdictions opportunities. • Regional Advanced Align efforts of government, private sector, Manufacturing Center for universities and other institutions for more rapid Excellence to serve 10 county regional economic development network; Encourage bottom-up, community based planning and policy development 51 52

Successful Regions Have…

• Leaders that recognize the new realities of economic development “If your actions inspire others to dream more, learn more, and become more, • Leaders that build relationships that you are a leader.” bond the region together • Leaders that possess a global view John Quincy Adams • An understanding of current strengths and weaknesses • Flexibility and adaptability

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9 Contact Info

Dave Ivan Michigan State University Extension Phone: 517-432-7602 Email: [email protected]

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