“Hidden” Assets for Economic and Community Development

1. “Hidden” Assets for Economic and Community Development January 27, 2014 – Vincennes, IN Scott Hutcheson, Ph.D. Purdue Extension Purdue Center for Regional Development

2. Goals for Tonight • Learn about our community’s “hidden” economic and community development assets • Understand how other communities are developing asset-based economic growth strategies • Consider how you could better leverage your unique assets in Knox County

3. Our Grandparents Built the Indiana Economy on Our Assets • Rich soils • Waterways: Lake Michigan and the Ohio River • Crossroads of America What were our community’s greatest economic assets 100 years ago?

4. Our Grandchildren Will Inherit an Economy Based on a New Set of Assets • The Talent of Our People • Our Most Vibrant Industries • Our Capacity for Innovation • Our Fastest Growing Companies • Our Unique Story • Our Special Places

5. Our Grandchildren Will Inherit an Economy Based on a New Set of Assets • The Talent of Our People • Our Most Vibrant Industries • Our Capacity for Innovation • Our Fastest Growing Companies • Our Unique Story • Our Special Places

6. The Talent of Our People: Occupational Clusters • An “Occupational Cluster” is a group of related occupations • The Purdue Center for Regional Development has defined 21 basic Occupational Clusters • Many communities have a higher concentration than average of one or more clusters • Occupational Clusters can be part of an economic development strategy

7. Occupational Cluster: Ideas in Action Bring together Information Technology professionals to foster new ideas for high tech start-ups

8. The Talent of Our People LQ = Location Quotient. The US LQ for each cluster is set at 1.00. Anything above that means there is a greater concentration than the overall US. For example, an LQ of 1.80 means that a cluster had 80% more jobs than the US. 2012 Data

9. IT Firms vs. Workers 9 Firms

10. IT Firms vs. Workers 154 Workers

11. Occupational Clusters: Questions to Consider • Did a look at Occupational Clusters give us any new insights? • What explanation might there be for our occupational strengths? • Do we need to find out more about our Occupational Cluster assets?

12. Vibrant Industries: Industry Clusters Industry Clusters can be nurtured and supported • Articulated • Activated • Accelerated • Accessing

13. Industry Clusters: Ideas in Action Appalachian Ohio’s Salsa Cluster • 20-plus boutique salsa businesses in the region • $700,000 annual sales among new businesses • Trains over 200 existing and emerging entrepreneurs annually • 350 gallons and 445 lbs of fresh and preserved foods delivered to the region’s food pantries each year

14. Industry Clusters: Our Community’s Most Vibrant Industries Number of Establishments (data for 2012)

15. Industry Clusters: Questions to Consider • Did a look at Industry Clusters give us any new insights? • What explanation might there be for our industry strengths? • Do we need to find out more about our Industry Cluster assets?

16. Our Capacity for Innovation • Capacity for Innovation can provide valuable insights • Innovation is defined as the new products, services, processes, and business models that get translated into business growth • The Purdue Center for Regional Development has created an Innovation Index • The index is a simple way to look at lots of different factors related to innovation.

17. Innovation Index: Ideas in Action Think of a high ratio of “small firms” as an asset and launch a business growth program

18. Our Capacity for Innovation Knox

19. Our Capacity for Innovation

20. Innovation Index: Questions to Consider • Did a look at Innovation Index give us any new insights? • Which of the index factors that showed good capacity did you find most interesting? • Do we need to find out more about our innovation assets?

21. Our Fastest Growing Companies: Second-Stage Firms • Most economic growth comes from 2nd-Stage firms • Privately-held firms • 10-99 employees • $750K-10 million in annual revenue • Dealing with growth issues instead of survival issues • Intend and capacity to keep growing

22. What Do Second-Stage Businesses Need? • Help in re-articulating and realigning with their Core Business Strategy • Market Intelligence to answer important questions • Leadership & management team development to makes sure people are slotted right

23. Second-Stage Firms: Ideas in Action Littleton, Colorado • Littleton, CO developed and began to execute the strategy in 1989 • Focused on “wealth” creation not “job” creation • Eliminated all incentives and tax breaks for business recruitment • Since 1989, more than doubled the number of jobs from 15,000 to 35,000 • Sales tax revenue tripled from $6.8 million to $19.6 million

24. Second Stage Firms in Our Community

25. Second-Stage Firms:Questions to Consider • What insights do we gain by considering the role of second-stage companies in our local economy? • What do we currently offer our second-stage firms? • Companies to Watch • Participation in the Indiana Business Growth Network

26. Our Unique Story • Every community has a unique story that is being created. • We need to pay attention to the story we are telling ourselves and the one those outside our community are hearing about us. • We have the power to shape these stories.

27. Lots of Ways to Create Stories…

28. New Narratives: Ideas in Action L.A.’s Sunset Strip • The Sunset Strip in LA was in decline • The ownership of the famed “Roxy” nightclub began using Twitter • Others followed, a new story emerged, and the neighborhood has been transformed

29. Our Stories: What’s the Buzz

30. Our Stories: What’s the Buzz

31. Our Stories: What’s the Buzz

32. Our Special Places: Infrastructure Traditional Emerging Public Spaces Sidewalks Trails Bike Lanes Third Places Broadband WiFi • Roads & Interstates • Rail • Water • Electricity • Water & Sewer

33. Public Spaces: Creating Economic, Social, and Environmental Value Public space is all around us, a vital part of everyday urban life: the streets we pass through on the way to school or work, the places where children play, or where we encounter nature and wildlife; the local parks in which we enjoy sports, walk the dog and sit at lunchtime; or simply somewhere quiet to get away for a moment from the bustle of a busy daily life. In other words, public space is our open-air living room, our outdoor leisure centre. The Value of Public Spaces: How High Quality Parks & Public Spaces Create Economic, Social, & Environmental Value, Bartlett School of Planning, University College London.

34. Public Spaces: Ideas in Action Three Oaks, MI • Renovated dilapidated downtown theatre to show classic films – Opened in 1996 with a showing of Citizen Kane. • Opened art gallery in the lobby • Now a ‘fine arts” theatre • Averages over 1,000 customers per week • Community now hosts film festivals

35. Public Spaces 112

36. Public Spaces 96.9

37. The Real Power Is in… Combining Assets in New and Innovative Ways – Linking and Leveraging

38. Small Successes Add Up No Single Big ANYTHING Many Modest SOMETHINGS

39. Contact Scott Hutcheson, Ph.D. 765-479-7704 (mobile) hutcheson@purdue.edu

40. More Information • Occupational Clusters - http://www.statsamerica.org/innovation/data.html • Innovation Index - http://www.statsamerica.org/innovation/data.html • Second Stage Firms - http://www.youreconomy.org/ • Economic Gardening - http://www.littletongov.org/bia/economicgardening/ • Industry Clusters - http://www.statsamerica.org/innovation/data.html • ACEnet (Salsa Cluster) - http://www.acenetworks.org/ • Twitter Search - http://twitter.com/#!/search-advanced • Ball State Community Assets - http://asset.cberdata.org/