Sustaining Local Economic Sustaining Local Economic Development Initiatives:Development Initiatives:A summary of the Hexagon of A summary of the Hexagon of LEDLED

Jörg Meyer-Stamerjms@mesopartner.com

Process Management

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

Conceptualizing Systemic Conceptualizing Systemic Competitiveness at the Local and Competitiveness at the Local and Regional Level: The Hexagon Regional Level: The Hexagon

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The First Triangle:The First Triangle:The Target GroupThe Target Group

The target group of local The target group of local economic development: firmseconomic development: firms

streng-thening

local firms

Attractionof newfirms

Promotionof start-upsand entre-

preneurship

supplier development,outsourcing, spin-off;

support for ownersuccession

Attract suppliers andcomplementary firms,manufacturers ofcapital goods,service providers

franchising

How to apply the first triangle in a How to apply the first triangle in a workshop settingworkshop setting

Conduct a mesocard-based brainstorming on the business promotion activities that are ongoing

Ask the participants to organise the observations around the triangle, particularly looking at the connecting lines between the corners

Discuss the result with the participants – It is likely that the result will show a certain

imbalance in terms of business promotion activities

– Take this as a point of departure for a brainstorming on new approaches to business promotion.

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The Second Triangle:The Second Triangle:Locational FactorsLocational Factors

Intangible locational factors

Tangible locational factors

Relevant for individuals:-- quality of housing-- environmental quality-- schools and HE-- health facilities-- social facilities-- culture and recreation

Relevant for firms:-- efficiency of government-- business climate-- availability of related industries-- supporting institutions

-- geographical location-- real estate-- transport and communication infrastructure

-- skilled workers-- energy and environment-- taxes and levies-- subsidies

Locational advantagesLocational advantages

How to apply the second triangle How to apply the second triangle in a workshop settingin a workshop setting

Conduct a mesocard exercise based on the question: What are the factors that make a location attractive for business?

Organise the cards according to the three types of locational factors– It is quite likely that at least one of the three types

will attract only very few observations

Address the issue of static vs. dynamic competitive advantage

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The first and second triangleThe first and second triangle

Hard-coreLED

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The Third Triangle:The Third Triangle:Policy Focus and SynergyPolicy Focus and Synergy

Focus and Synergy:Focus and Synergy:The three approaches to local The three approaches to local developmentdevelopment

Business Development

Urban planning Urban development

InfrastructureDevelopment

Social DevelopmentCommunity

Development

Focus and Synergy, 1:Focus and Synergy, 1:SeparatingSeparating

Economic Development:Quick results

CompetitivenessSustainabilityConsumers

Urban Planning:Long time horizon

PlanningAesthetic criteria

Social Development: Support for disadvantaged

and marginalisedBeneficiaries

Solidarity

Time horizon

Visualvs.

substance

Profit vs.solidarity

Focus and Synergy, 2:Focus and Synergy, 2:ConnectingConnecting

EconomicDevelopment

Urban Planning

Social / communityDevelopment

Improvinglocational qualityCreate a unique

profile

Apply businessprinciples in social

endeavours

Improve qualityof living in low-income areas

Redefine socialproblems as

business opportunities

Focussed,demand-driven

skills deve-lopment

Stimulateentrepreneurship

(as early in lifeas possible)

Leverage infra-structure and

facilities developmentfor LED

How to apply the third triangle in a How to apply the third triangle in a workshop settingworkshop setting

Ask the participants to name ongoing or planned LED activities in their location

Cluster the responses according to the three corner points. – Often, the outcome shows lots of social and urban

development projects, but very few proper economic development activities.

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The Fourth Triangle:The Fourth Triangle:Sustainable DevelopmentSustainable Development

The triangle of sustainable The triangle of sustainable development at the regional leveldevelopment at the regional level

economicdevelop-

ment

ecologicaldevelop-

ment

socialdevelop-

ment

e.g. new types of living andhousing (for instance

for retirees)

e.g. processing of locallyavailable bio-mass

e.g. regional recyclingeconomy

e.g. labor-intensive developmentof industrial estates and infrastructure

How to apply the fourth triangle in How to apply the fourth triangle in a workshop settinga workshop setting

Use it in a setting where local stakeholders have experience with LED but find it difficult to come up with new ideas

Organize a Mesocard-based brainstorming exercise around this triangle – divide the group into four working groups, with

three looking at one connection and the fourth at the entire triangle.

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The third and fourth triangleThe third and fourth triangle

Hard-coreLED

Widening theperspective

The Fifth Triangle:The Fifth Triangle:GovernanceGovernance

Planning, M+E

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

Local government

Businessassociations

The Triangle of GovernanceThe Triangle of Governance

Civilsociety

Process management

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The Sixth Triangle: DiagnosticThe Sixth Triangle: DiagnosticPlanning, Monitoring & EvaluationPlanning, Monitoring & Evaluation

Participatorydiagnostic(e.g. PACA)

Participatoryplanning

ParticipatoryM+E, Participatory

benchmarking

Implementation

Motivation +priorities

FeedbackReference

The Triangle of Process The Triangle of Process ManagementManagement

Process management

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

The fifth and sixth triangleThe fifth and sixth triangle

Hard-coreLED

Widening theperspective

Governing theprocess of LED

The Hexagon and LED The Hexagon and LED interventionsinterventions

Small business promotion Investment promotion

Start-up promotion Promotion of BDS

Efficient publicadministrationEnablingenvironmentCompetitiveinfrastructureSkills

Synergy between differentfields of local development

Innovation: AddressingLED from a new angle

Encourageindependent

businessassociations

Public-privatepartnership

Effective governance

Participatory approachLED = iterativeprocess

Process management

Governance

Sustainability Policy focus and synergy

Locational factors

Target group

Sustaining a local economic Sustaining a local economic development effortdevelopment effort

Basic instruments

Innovativeinstruments

Effectiveco-ordination

Thank you for your attention!Thank you for your attention!

Further information available at: www.wiram.de/toolkit/ www.mesopartner.com