Hidden assets handout

Hidden Assets for Economic &
Community Development

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?

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


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

K-12 New Businesses
Workforce Training Small Businesses
Higher Education Growing Businesses
Capacity for Innovation

Partnerships  Strategic Alliances  New Models

Infrastructure
Storytellers
Broadband Social Media
Incubators
Heritage
Social Capital
Folklore

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?
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?
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 Emerging
•  Roads & Interstates •  Sidewalks
•  Rail •  Trails
•  Water •  Bike Lanes
•  Electricity •  Civic Spaces
•  Water & Sewer •  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
Co-Creation

Co-Execution

Sharing
Resources

Sharing
Information

Mutual
Awareness

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

+ + =



+ + =

No Single Big Strategy Many Modest Strategies

Capacity for Innovation
High Job/Pop Growth Ratio
Strong Occupational Clusters Economic Well-Being Second Stage Firms
Arts, Entertainment, Publishing & Broadcasting High Number of Small Establishments 6.6 of% all Establishments
Agriculture & Food Technology High Net Internal Migration 34.5% of all Jobs
Skilled Production Workers Growing Per Capita Income
Managerial, Sales, Marketing, & HR Growing Wages/Salary
Legal and Financial Services, & Real Estate Growing Proprietors Income
Healthcare & Medical Sciences (Practitioners &
Scientist

Strong Industry Clusters
Electrical Equip/Appliance/Component Mfg
Biomedical/Biotechnical (Life Sciences)
Good Broadband Infrastructure
Glass & Ceramics
Consumer Choice
Agribusiness Food Process. & Technology
90% of Homes are Connected
Machinery Mfg
Speed Near Top Third of the State
Transportation Equipment Mfg
Advanced Materials
Apparel & Textiles
Chemicals & Chemical Based Products
Education & Knowledge Creation
Transfer of Wealth Positive Buzz
Potential for over $15 million per year to Arts, High-End Retail, Responsive
invest in civic collaboration Government, Social Awareness,
Desirable Housing



•  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

Contact
Name
Purdue Extension XXXXXX County
Economic & Community Development
Purdue Center for Regional Development
Address
Address
Phone
Email
Website


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