SMALL IS THE NEXT BIG!2014.segra.com.au/downloads/presentations/Day 2/Spotlight/Spotlig… · OECD...

INNOVATIVE SMALL TOWNS

SMALL IS THE NEXT BIG!

Dan Pink “A Whole New Mind” 2006

INFORMATION OVERLOAD

60 Seconds

New Business Context

• 20th Century:

Predicable Knowns

• 21st Century:

Interconnected

Unpredictable

Unknowns

“Wicked Problems”

“The illiterate of the 21st Century

will not be those who cannot read and write,

but those who cannot learn, unlearn and relearn.”

Alvin Toffler (Author ‘Future Shock’)

How Do We Deliver “Good” Regional Growth?

“Protect our lifestyle and provide jobs for the kids”

Small Town Inspiration

1. The Evolution of Australian Towns Report 136. Bureau of Infrastructure, Transport and Regional Economics BITRE 2014

2. Building Australia’s Innovation System Business Council of Australia 2014

3. Regional Solutions Framework 2014

The Evolution of Australian Towns Report 136 Bureau of Infrastructure, Transport and Regional Economics BITRE 2014


The Good News:

“Your town is not going

to die!”

The Critical 21st Century Question

Do you live in your town

…because of its Lifestyle?

The Critical 21st Century Question

OR…

Is your town

…a Life Sentence?

3 Powerful Forces of Change

1. Technology

2. Economics

3. Transportation


“Connectivity has shifted scale from town to region.”


The disruptive power of the private vehicle


85%

15%

DISRUPTIVE CHANGE

Private transportation has saved small towns from complete decimation…and created the strong regional lifestyle brand we have today

“the householder rather than industry gained importance as a key decision maker in shaping settlement patterns.”



Most towns were

established by 1911

85%

urbanised

65%

20%

15%


65%

20%

15%

Most towns were

established by 1911

85%

urbanised

But 1 in 3 Experience

regional lifestyle

• Coastal Drift • Centralisation

“Towns remain important economic and social units, but now operate as part of a larger regional

markets.

Today, towns are interconnected, as people and business conduct their activities at a distance and

across traditional regions.”


“Forest – Farm – Town – City”

Grow Your Region | Keep Your Lifestyle

“The natural order of things.”

Place has been uncoupled from industry and this has encouraged

the virtuous cycle of centralisation


“the virtuous circle of growth”


“positive feedback loops that favour large centres.”

“The centralising of activity makes investing in larger centres more attractive because of a perceived

lower risk, while small towns have difficulty attracting investment.”


Vicious Circle of Decline Vs Virtuous Circle of Growth


“…the fate of individual towns is dependent on their unique circumstances and relations

with their neighbours.”

“A spatial awareness of activity is vital. Understanding where a town fits into its region both economically and socially is

increasingly important.”

“There is much to be gained from collaboration within a town.”


“…the interests of individuals, industry and regions are not always the same.”

“…while industry generates the country’s wealth, the relationship between industry and

towns is weakening.”


“It cannot be assumed that assistance targeted at a region or industry will

necessarily help the people within them.”

“Government responses need to be tailored to the specific circumstances of a region.”


Top Tips for Small Towns Three Things Towns need to do:

1. Begin with understanding their individual circumstance by making an objective assessment of their position within their larger region

2. understand their relationship with industry and its connection to local employment

3. make themselves relevant and competitive in a time of increasing separation of work and residence.


Develop, maintain ,expand New infrastructure

The Regional H5

“ creating the Habitat for Regional Growth”

Micro the Next Big Thing!

Top 16 OECD Countries

90% of Business <10 People

By 2020 majority of US workforce will be independent entrepreneurs

54% of 18-34 year olds want to start their own business

Daniel Pink 2014

“To Sell is Human”

Nurturing OZ Entrepreneurs

65% Australian 18-35 year olds wanted to run their own business

(58% feel financial implications biggest hurdle)

Only 55% feel inspired by their education

40% feel education hasn’t given them required skills for their current job

Think Education Report September 2014

Australian Business

2.1 million Businesses 61.2 % Non-employing Micro-Business 23.9 % Employing Micro-Business (1-4 employees)

85.1% Micro-Business 10.8% Small Business (5-19 employees) 3.8% Medium Business (20-99 employees) 0.3% Large Business (100+ employees)

ABS June 2011

Source: Crossroads: An action plan to develop a vibrant tech startup ecosystem in Australia | April 2014

OECD Science, Technology and Industry Scoreboard 2013

“new businesses have consistently been net job creators whilst existing business have been net job destroyers.”

3 million jobs created each year in US economy by new firms 1 million jobs destroyed each year by existing firms

Source: Crossroads: An action plan to develop a vibrant tech startup ecosystem in Australia | April 2014

1 new technology job = 5 additional jobs in other sectors Multiplier is 3 X larger than extractive industries or manufacturing 4% of companies with highest growth = 70% of new jobs

The Transition of Local Micro

“...from sheds to studios”

Our agricultural economy towns need to nurture and support the entrepreneurs

of the new economy

Aging & Spending

Working age people/ 65 1970 - 7.5 2010 - 5.0 2050 - 2.7

Action Plan for Encouraging Prosperity – BCA 2013

Population Quality of Life

Growth & Quality of Life

Regional Australia

1. New Business

2. New Economy

3. New Families

“We need new business in the new economy driven by new

families”

INNOVATION

“The application of knowledge and technology to create additional

value.”

Building Australia’s Innovation System BCA 2014

INNOVATIVE GROWTH

“ Innovation is essential to achieve the next wave of growth and investment in the context of

significant global forces of change.”


INNOVATIVE GROWTH

“ Our strong premise now is that innovation can no longer be

viewed as an adjunct to economic policy and growth. It is critical.”


PROVEN GROWTH GENERATOR

From 1995 - 2005 approx. two-thirds of Australia’s productivity growth was driven by innovation.


NETWORKS CREATE WEALTH

“Innovation systems are about networks of individuals and

organisations that act and interact within a broader environment.”


NETWORKS CREATE WEALTH

“Innovation does not happen in a vacuum. That is why collaboration

is a critical component of the Australian innovation system.”


PEOPLE = PROFITS

“In an increasingly globally connected world, our human

capital will underpin our ability to differentiate ourselves from others

and to value add.”


CREATIVE CATALYST INFRASTRUCTURE

“Government needs to ensure that our education and training

systems provide citizens with the capabilities to think creatively, to innovate and to apply their skills

productively.”


The Innovation Engine of Ideation

“All the parts of your Innovation Engine are inexorably connected and deeply influence one another.”

Tina Seelig “Innovation Engine” 2014


Inner Core Outer Core

INNOVATION INFUSION

INNOVATION INFUSION

CULTURE

TURNING WICKED PROBLEMS INTO WICKED SOLUTIONS

Problems • Lack of funding

• Lack of community support

• Burden of recurring costs

• Increases social problems

• Outcomes don’t match vision

• Too complex to predict outcomes

• Symbol of lost opportunity

Solutions • De-risk Project

• Use Engaging process

• Integrate Private Investment

• Ensure Place Connections

• Create clear Project briefs

• Focus on core values

• Start with good process

4 Fast Action Questions for Innovative Small Towns

1. PURPOSE:

What is the role of your town within the region?

2. PROCESS:

How can you make the right things happen? 3. PRODUCT:

How can you help people invest in your town’s lifestyle?

4. PLACE:

Is your town a good place to start a business and raise a family?

THANK YOU

SMALL IS THE NEXT BIG!2014.segra.com.au/downloads/presentations/Day 2/Spotlight/Spotlig… · OECD...

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