Washington, DC:  In October 2009, the US Economic Development Administration reported the results of a research project entitled, "Crossing the Next Regional Frontier: Information and Analytics Linking Regional Competitiveness to Investment in a Knowledge-Based Economy".  The EDA commissioned this research project to put tools into the hands of local civic leaders and economic development practitioners so that they can more effectively compete in a global context where knowledge and innovation are vital to competitive advantage. The result of the research is a set of practical analytical tools that regional leaders can use to assess their workforce, human capital and capacity to innovate within their region. Click here for a downloadable copy of the report.

The project is the first of its breadth and depth. But this report does more than provide tools to evaluate "where we are." The project also has a strategic component. It presents a framework for regional leaders to collaborate to achieve mutual regional development goals. Using the results of the analytical tools, the framework helps guide the discussions of regional leaders in selecting sound strategies and in identifying the united efforts required to achieve common goals. 

Globalization has profoundly changed how the most successful local leaders and economic development practitioners think about economic development...

• Scale has changed, shifting from a local to a regional development policy level:

Metropolitan and rural areas alike now act regionally to compete globally. Individual localities collaborate as regions to gain the size or clout to compete. This may mean overcoming a history of localized competition and even distrust. Successful local leaders reach beyond their parochial interests to link assets and competitive advantages throughout their broader region. Indeed, many of today's best economic opportunities emerge only at the scale of the broader region.

• Economic development success is nolonger achieved primarily through traditional industrial recruitment

In a global economy, trying to compete based on cost alone will have limited success. Rather than emphasizing incentives, subsudues and low-cost, low-skill labour, the new race is won by regions with the capacity to innovate and with the brainpower - education and skills - needed to create and sustain a competitive advantage over the long run. Successful regions build on thier own unique qualities and advantages.

Local leaders and economic development practitioners who adapt to the new economic world will (1) adopt a whole new approach to economic development; (2) effectively use an improved set of tools to craft a regional strategy; and (3) set sound investment priorities that put a practical regional strategy into action quickly.

A basic premise of this report is that data, tools and analysis are essential, but not enough. Regional development requires public and private leaders who collaborate, who share a strategic vision and who build enduring partnerships to achieve that vision. To be truely useful, analytical tools should facilitate a dialogue. The tools should be integrated into the process of building trust among regional leaders.

In regional collaboration, the process is the product.  This process may not be smooth at first, but with time, energy and dedication, a thriving community of economic development leaders will emerge. Leaders must have the knowledge, tools, and desire to adjust their region's direction to meet the challenges of the future.

There are certain tools which may be especially helpful to practitioners who do not have the luxury of a sizeable staff of economic development analysts, planners and other professionals. The four tools are...

1. Industry Clusters are regional groups of businesses that are linked in the production process and may have similar needs for technology, infrastructure, support services and a shared pool of labor. This analysis shows how the regional economy is working and where the critical linkages are to maintain or build that economy.
2. Occupation Clusters are grouped according to similar knowledge and skill requirements. The occupation clusters are indispensible to link regional industries with workforce requirements, available human capital, education and training needs, and new directions.
3. An Innovation Index presents an overall picture of a region's capacity to innovate and transform its economy. Like the industry and occupation cluster tools, this index helps assess a region's competitive advantages and weaknesses, and gauges how adept the region may be in exploiting new and emerging industries.
4. A Regional Strategy and Investment Framework that uses the information gained from these three analytical tools to guide regional leaders toward a common regional vision, strategy and action. The process of developing a regional strategy will likely require several group discussions with a coach action as a catalyst and guide. Using a tool for prioritizing public investment, the coach would also guide leaders through the discipline of prioritizing investments that best align with the region's development strategy.