Defining & Measuring Economic Development

Maryann Feldman University of North

Carolina

June 14, 2014

Principles of the Approach

Data Intensive Using third-party data sources, minimizes burden to service recipients or client firms

Evidence-Based Economic Development Information in real time

Progress in building capacity

Increase understandLocal industrial activity

Gaps

Changes in capacity

Challenges for Measurement

No Pure Treatment Effects

Selection effects

Complexity

Ecosystems

Emerging industries

Time Lags in Realizing Benefits

The Perils of Success

UnderlyingLogic Model

Inputs are Investments & Programs - Activities

Capacity OutcomesCommunity Capacity Firm and Industry Capacity Entrepreneurial Capacity Innovative Capacity

Realized Outcome Prosperity High Quality of Life

Methodology

40 projects (2010 – 2011)

Identify Technology NAICS ~ 25 %

Identify Policy Intervention

Identify Geography Reality versus writing the proposal

Analyze Client Lists to settle technology & geography

Analyzed 14 Digital 3rd Party Metrics

Beyond Jobs

Social Networks

Dealmakers

Private Investments

Mergers and Acquisitions

Public Offerings

Venture Capital Investment

New Firm Entry

Value Chain Augmentation

Regional Industry Vitality

Skills and Job Availability

Cluster Identity

SBIR Awards

New Federal Spending

Patents Trademarks

Measurable Increases in Capacity

Social Capital: Dealmakers

Labor Force Analytics

Supply Jobs posted Wage rates Skills

Sought Days job

open

Demand Job seekers Skills

available Degrees/

Training/Certification

Value Chain Augmentation

Regional Identity: 2010

Regional Identity: 2010 & 2014

Change ConversationData intensive Evidence Based Economic Development

Rather than ex post evaluation – these metrics will help

Better project planning Fast pivots

Innovation and Entrepreneurship is a Means to an End

Not an end in itself

Better understanding your service area and the impact of your project helps you adjust programing to achieve results

Thank you