1	Economic Development ED 101/201 Prepared for 2006 Governor’s Rural Development Conference August 16, 2006 Du Bois – Northern Arizona University - Flagstaff Prepared by Lay James Gibson University Distinguished Outreach Professor Director – Economic Development Research Program The University of Arizona Voice : 520-621-7899 / Fax: 520-621-7834 Email: Ljgibson@ag.arizona.edu
2	Economic Development (ED) 101 Prepared by Lay James Gibson University Distinguished Outreach Professor Director – Economic Development Research Program The University of Arizona Voice : 520-621-7899 / Fax: 520-621-7834 Email: Ljgibson@ag.arizona.edu
3	Definition Economic development refers to the process in which governments or community-based (neighborhood) organizations engage to stimulate or maintain business activity and/or employment. The principal goal of economic development is to stimulate employment opportunities in sectors that improve the region or community using existing human, natural, and institutional resources.
4	Development Professionals Know the Difference… Growth and Development or Growth vs. Development
5	Why Do Economic Development? Create Entry Level Jobs Expand Tax Base Create Better Paying Jobs Integrate Minorities into Mainstream
6	Efficient Development Organizations Build Their Programs On Formal Understandings of How Regional Systems Work including: Regional Comparative Advantages Barriers to Growth & Development Strategic Intelligence on Local, National, & Global Trends Economic Social Political Demographic Detailed Knowledge of Industry Requirements
7	Economic Development Programs Help Regions Adjust To Globalization Shifts from Old Economy to New Economy Emerging Knowledge-based Industries
8	And Local ED Organization Track… Development Trends & Population Profiles (Cont.)
9	Development Trends & Population Profiles (Cont.)
10	Development Trends & Population Profiles
11	Economic Development Programs Focus on Attraction of New Firms Retention & Expansion of Existing Firms New Business Development Incubation of Innovations Small Business Formation Research to Better Understand Regions & Industries
12	Attraction of New Firms Site Selection Service Marketing Material Development New Client Service Market Development (Prospecting) Participation in Cluster Related Activities Newsletter Website Development Support Training (EDC, EDI) Trade Shows Involvement in Regional & National Networks, e.g. AAED, IEDC
13	Retention & Expansion of Existing Firms Website Development Newsletter Support Training (EDC, EDI, etc.) Export Assistance Local Employer Visits Involvement in Local Networks, e.g. Chamber Involvement in Regional & Nation Networks, e.g. AAED, IEDC Participation in Cluster Related Activities
14	New Business Development Basics = Business Plans & Record Keeping Advanced Management & Operations Assistance Incubator Operation Tech Transfer
15	Basic Research Including Data Assembly Data Base of Industrial Parks/Areas Business Costs & Climate Information Business Facts/Quality of Life Demographic Information Labor Data
16	Basic Research Including Data Assembly (Cont.) Training Needs Annual Salary Rates Research Products Site Selection Data County Profiles Community Profiles Wage & Labor Data
17	Advanced Research & Modeling Technical & Business Research Assistance Economic Trends Regional Forecasts Regional & Economic Modeling “State-of-the-Region”Analyses Impact Assessments Target Industry Studies Cluster Identification & Description
18	Programs also Address Barriers to Economic Development Infrastructure Lack of Vision, Cohesion, Point of Contact Image Job Training Capabilities Skilled Workforce Available Housing Available Industrial Sites Speculative Buildings Access Interstate Air Rail
19	Effective Development Organizations Build Partnerships Leverage Resources Work with Allies Improve Efficiency by Using Research
20	Development Organizations Build Stronger Regions Which Have Export Oriented Clusters Driven by Engine Industries & Are Supported by Well Developed Foundations Including Responsive Labor Markets Functioning Physical Infrastructure Transportation & Communication Networks Effective Education & Training Capabilities Attractive Quality of Life