REGIONAL ECONOMIES

DIFFERENT PATHWAYS NEED DIFFERENT STRATEGIES

PRESENTATION OVERVIEW

Leadership by local government in preparing local economies to succeed in the future is not optional - it is essential.

But how can we take our approach to regional economic strategy to the next level?

• Engaging with the global operating environment

• Understanding regional position and potential – what matters

• Moving from a land use planning derived approach to a business derived approach to strategy development

• Making the change

THE OPERATING ENVIRONMENT FOR ALL REGIONAL ECONOMIES

A changing global economy and supply

chains constantly requiring new ways

to compete

Rapidly evolving technology reducing the tyranny of

distance but increasing speed of change

Unknown factors that can’t be predicted but

must be anticipated and

managed

Ageing population and more mobile

world shifting demographics, lifestyles and

reshaping communities

On-going tensions between

resource use and

conservation

Weakened central

government control

WHAT DOES THIS MEAN FOR YOUR REGION?

IndustryDiverse, ag/mining/tourism dominated, limited?

ProximityMetro, inner/outer regional, remote?

PopulationLarge or small, rapidly changing or stable?

THREE THINGS THAT DETERMINE PATHWAYS AND OPTIONS

The nature of these 3 factors will shape any regional economy’s internal dynamics, external relationships and future opportunities.

UNDERSTANDING A REGIONS POTENTIAL

External markets: opportunity and risk

Regional leaders and

entrepreneurs

Competitive advantage and capacity for endogenous

growth

Flows of people and

capital

Core opportunity for regional influence on the future• How strong is the

region in these areas?

Core of current strategy development • How does this relate to

industry, proximity and size?

Understand and monitor the markets that regional firms rely on• Compare local firms to their wider

industries to understand competitive position

Key drivers of change• How do local

trends and drivers relate to larger socio-economic shifts

UNDERSTANDING A REGIONS POTENTIAL

External markets: opportunity and risk

Regional leaders and

entrepreneurs

Competitive advantage and capacity for endogenous

growth

Flows of people and

capital

Northern cities – diverse groups of markets and opportunityIndustry hubs – 1-2 key markets and firms will underpin future outcomesRemote – limited firms and no key markets (exc. Govt.)

Northern cities – more leadership capacity but is there alignment and vision?Industry hubs – are leaders ready for a more challenging phase, do we need different skills and capacity?Remote – performance of a small groups of leaders crucial? Capacity?

Northern cities – size, infrastructure, workforce and innovation capacityIndustry hubs – some internal capacity but core comparative advantage proximity to resourceRemote – resources and institutions

Northern cities – complex pictureIndustry hubs – substantial people and capital flows have driven growth, future trends likely to be differentRemote – capital likely to be limited but potentially transformative, transitory population a key challenge

Population projections define the

future

Ambitions and outcomes the community/LG

is seeking

Description of a common range of economic issues

USING THIS KNOWLEDGE BY SHIFTING OUR APPROACH TO LOCAL ECONOMIC STRATEGY

Identify a range of future economic scenarios and

strategic implications

Examine the dynamics of key

variables and identify key

points of influence

Focus on key industry,

location and size factors

Land use planning derivative Business strategy derivative

Opportunity – How will Local Governments with a stronger strategic view of their potential futures benefit their local areas?

Barriers – How will the availability of information, skills and expectations challenge the implementation of this approach? What is the role of researchers/RAI/LG workers?

Emergence - To what extent are some local areas applying part or all of this approach? What has been the experience?

APPLYING THIS APPROACH - QUESTIONS

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jack.archer@regionalaustralia.org.au www.regionalaustralia.org.au