hidden assets handout

Hidden Assets for Economic & Community Development

Purdue Extension, Economic & Community Development Purdue Center for Regional Development 1

Date, Location Presenter’s Name, Title

•  Learn about our community’s “hidden” economic and community development assets

•  Understand how other communities are building asset-based economic growth strategies

•  Consider how our community can better leverage our own assets

•  Rich soils •  Waterways: Lake

Michigan and the Ohio River

•  Crossroads of America

What were our community’s greatest economic assets 100 years ago?



•  Talent & Brainpower •  Innovation & Entrepreneurship •  New Narratives •  Quality, Connected Places •  New Ways to Collaborate

New Businesses Small Businesses Growing Businesses

K-12 Workforce Training Higher Education Capacity for Innovation

Storytellers Social Media Heritage Folklore

Infrastructure Broadband Incubators Social Capital

Partnerships Strategic Alliances New Models

1.  The Talent of Our People 2.  Our Capacity for Innovation 3.  Our Fastest Growing Companies 4.  Our Most Vibrant Industries 5.  Our Skills for Telling New Stories 6.  Our Ability to Move Information &

Ideas 7.  Our Capacity to Invest in New

Collaborations



•  An “Occupational Cluster” is a group of related occupations

•  The Purdue Center for Regional Development has defined 21 basic Occupational Clusters

•  Many communities have a higher concentration than average of one or more clusters

•  Occupational Clusters can be part of an economic development strategy

Bring together Information Technology professionals to foster new ideas for high tech start-ups

LQ = Location Quotient. The US LQ for each cluster is set at 1.00. Anything above that means there is a greater concentration than the overall US. For example, an LQ of 1.80 means that a cluster had 80% more jobs than the US.



•  Did a look at Occupational Clusters give us any new insights?

•  What explanation might there be for our occupational strengths?

•  Do we need to find out more about our Occupational Cluster assets?

•  Capacity for Innovation can provide valuable insights

•  Innovation is defined as the new products, services, processes, and business models that get translated into business growth

•  The Purdue Center for Regional Development has created an Innovation Index

•  The index is a simple way to look at lots of different factors related to innovation.



Think of “economic churn” as an asset and launch a neighborhood-based entrepreneurship program

Boone



•  Did a look at Innovation Index give us any new insights?

•  Which of the index factors that showed good capacity did you find most interesting?

•  Do we need to find out more about our innovation assets?

•  Most economic growth comes from 2nd-Stage firms –  Privately-held firms –  10-99 employees –  $750K-10 million in annual revenue –  Dealing with growth issues instead of

survival issues –  Intend and capacity to keep growing

•  Help in re-articulating and realigning with their Core Business Strategy

•  Market Intelligence to answer important questions

•  Leadership & management team development to makes sure people are slotted right



Littleton, Colorado •  Littleton, CO developed and began to

execute the strategy in 1989 •  Focused on “wealth” creation not “job”

creation •  Eliminated all incentives and tax breaks

for business recruitment •  Since 1989, more than doubled the

number of jobs from 15,000 to 35,000 •  Sales tax revenue tripled from $6.8

million to $19.6 million

Establishments Jobs Size of Firm Indy MSA Boone Indy MSA Boone

Self-Employed 35.6 37.9 6.2 9 Stage 1 (1-9) 55.4 55.1 28.5 39.3 Stage 2 (10-99) 8.4 6.6 35.0 34.5 Stage 3 (100-499) 0.5 0.4 15.3 17.3 Stage 4 (500+) 0.06 0.0 15.1 0.0

•  What insights do we gain by considering the role of second-stage in our local economy?

•  What do we currently offer our second-stage firms? – Companies to Watch – Participation in the Indiana Business

Growth Network



Industry Clusters can be nurtured and supported

–  Articulated –  Activated –  Accelerated –  Accessing

Appalachian Ohio’s Salsa Cluster •  20-plus boutique salsa businesses in the region •  $700,000 annual sales among new businesses •  Trains over 200 existing and emerging entrepreneurs

annually •  350 gallons and 445 lbs of fresh and preserved foods

delivered to the region’s food pantries each year

Cluster Boone Indy MSA Electrical Equip, Appliance & Component Mfg 3.92 .95 Biomedical/Biotechnical (Life Sciences) 2.70 2.33 Glass & Ceramics 2.47 1.44 Agribusiness, Food Processing & Technology 2.00 .55 Machinery Mfg 1.92 1.27 Transportation Equipment Mfg 1.54 1.42 Advanced Materials 1.31 1.20 Apparel & Textiles 1.23 1.10 Chemicals & Chemical Based Products 1.17 1.17 Education & Knowledge Creation 1.13 1.02

Number of Establishments



Products that generate, distribute and use electrical power.

Electric Lighting Equipment Manufacturing establishments produce electric lamp bulbs, lighting fixtures, and parts.

Household Appliance Manufacturing establishments make both small and major electrical appliances and parts. Electrical Equipment Manufacturing establishments make goods, such as electric motors, generators, transformers, and switchgear apparatus. 0ther Electrical Equipment and

Component Manufacturing establishments make devices for storing electrical power (e.g., batteries), for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches).

•  Did a look at Industry Clusters give us any new insights?

•  What explanation might there be for our industry strengths?

•  Do we need to find out more about our Industry Cluster assets?

•  Every community has a “narrative” or a story that is being created.

•  We need to pay attention to the story we are telling ourselves and the one those outside our community are telling about us.

•  We have the power to shape these narratives.



L.A.’s Sunset Strip •  The Sunset Strip in LA

was in decline •  The ownership of the

famed “Roxy” nightclub began using Twitter

•  Others followed, a new story emerged, and the neighborhood has been transformed

Just finished first night of full ensemble in Lebanon, Indiana. A week and a half of all days left. First show June 21 in Indianapolis

Lebanon, Indiana probably needs this sign...

I'm at Starbucks in Lebanon…YEAH!

Aiden chilling in a tree in Lebanon, Indiana rest stop so smiley

Looking at a house in Zionsville today... hope it's as solid as my realtor states!!

Congrats 2 the hard working constituents of District1. Zionsville Town Council passed a resolution 2 remove the 865/Cooper Rd interchange!



Traditional •  Roads & Interstates •  Rail •  Water •  Electricity •  Water & Sewer

Emerging •  Sidewalks •  Trails •  Bike Lanes •  Civic Spaces •  Third Places •  Broadband •  WiFi

•  Broadband availability contributes positively to population growth.

•  The more broadband providers in a given market the greater the population and employment growth.

•  Businesses with high-speed Internet connections report having median annual revenues $300,000 more than businesses without broadband.

•  Broadband availability contributes positively to employment growth especially in the following sectors: –  Management of companies & enterprises –  Utilities –  Professional, scientific, and technical services

Wall Street West •  Northeastern Pennsylvania as a hub for to

data backup services to New York City’s financial institutions

•  Fiber optic infrastructure from NYC to the region

•  Coordinated economic development strategy



•  Number of broadband providers is higher than the national average –  Nearly 80% of the county population can choose from 3 or

more providers compared to 31% of the US population

•  Average speed of connection ranks 32nd among Indiana’s 92 counties

•  90% of homes have broadband

Civic Infrastructure •  Cooperation •  Collaboration •  Innovation

Civic Infrastructure Continuum

Sharing Resources

Sharing Information

Mutual Awareness

Co-Execution

Co-Creation

Acknowledgment Exploration Cooperation Collaboration Innovation

You have to walk before you run Adapted from Collaboration Continuum from ACT for Youth



•  Every community needs civic entrepreneurs. •  Even civic entrepreneurial ventures need “seed”

capital. •  Every community has the capacity to invest in civic

entrepreneurship and new collaborations.

“Civic entrepreneurs help communities collaborate to develop and organize their economic assets and to build productive, resilient relationships across the public,

private, and civil sectors. They forge the ties that bind economy and community for their mutual benefit.”

- Center for Community Economic Development, University of Wisconsin

•  Millionaires and the Millennium report found that between 1998-2052 $41 trillion in wealth will transfer from one US generation to another.

•  In 2005 the Indiana Grantmakers Alliance commissioned a study on the transfer of wealth in Indiana. The study was updated in 2010.

The Smiths have lived in rural Boone County their entire lives and have been tremendous stewards of the community. They have three grown children one of whom lives in nearby Indianapolis and the others on the West Coast. When they pass on their wealth, unless they have made other arrangements, it will leave Boone County forever.

•  2010 net worth of all Boone County households is estimated to be $4.15 billion.

•  Over the next 10 years (2010-2020), an estimated $1.7 billion will be available to transfer between generations in Boone County households. $6.24 billion over the next 50 years

•  If just 5% of that amount were to be captured by local non-profit organizations, such as community foundations, for the betterment of Boone County communities, those organizations would realize $85 million. This same 5% capture over 50 years is an estimated $312 million.

•  Using a conservative 5% annual rate of return on the endowment amount could ultimately yield $4.25 million each year at the end of 10 years to support community economic development and other charitable investments. After 50 years, approximately $15.6 million would be generated each year. While never touching the principle.



Some communities have launched information campaigns and enlisted the participation of financial planners to share this opportunity with their clients.

Combining Assets in New and Innovative Ways – Linking and Leveraging

Medora, Indiana

+ + =



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No Single Big Strategy Many Modest Strategies

Strong Occupational Clusters Arts, Entertainment, Publishing & Broadcasting

Agriculture & Food Technology Skilled Production Workers

Managerial, Sales, Marketing, & HR Legal and Financial Services, & Real Estate

Healthcare & Medical Sciences (Practitioners & Scientist

Capacity for Innovation High Job/Pop Growth Ratio

Economic Well-Being High Number of Small Establishments

High Net Internal Migration Growing Per Capita Income

Growing Wages/Salary Growing Proprietors Income

Second Stage Firms 6.6 of% all Establishments

34.5% of all Jobs

Strong Industry Clusters Electrical Equip/Appliance/Component Mfg

Biomedical/Biotechnical (Life Sciences) Glass & Ceramics

Agribusiness Food Process. & Technology Machinery Mfg

Transportation Equipment Mfg Advanced Materials Apparel & Textiles

Chemicals & Chemical Based Products Education & Knowledge Creation

Positive Buzz Arts, High-End Retail, Responsive Government, Social Awareness,

Desirable Housing

Good Broadband Infrastructure Consumer Choice

90% of Homes are Connected Speed Near Top Third of the State

Transfer of Wealth Potential for over $15 million per year to

invest in civic collaboration



•  Occupational Clusters - http://www.statsamerica.org/innovation/data.html •  Innovation Index - http://www.statsamerica.org/innovation/data.html •  Second Stage Firms - http://www.youreconomy.org/ •  Economic Gardening - http://www.littletongov.org/bia/economicgardening/ •  Industry Clusters - http://www.statsamerica.org/innovation/data.html •  ACEnet (Salsa Cluster) - http://www.acenetworks.org/ •  Twitter Search - http://twitter.com/#!/search-advanced •  Broadband Data - http://www.broadband.gov/ •  Transfer of Wealth in Indiana - http://www.waynecountyfoundation.org/documents/ IndianaTransferofWealthUpdate.pdf

•  National Maple Syrup Festival – http://www.nationalmaplesyrupfestival.com •  Purdue Guitar Summer Camp - http://metalsound.tech.purdue.edu/default.aspx

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Purdue Extension XXXXXX County Economic & Community Development

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