We write often here about economic development, our concern about our languishing economic indicators, and possible strategies for improving our trends lines. In this vein, John Lawrence, a longtime friend of ours and someone who understands the factors that make Memphis and Shelby County successful, will be authoring nine posts for us in the next three weeks about economic growth. He’s written more than 30 posts for us in the past, and we’ve always found him provocative and thoughtful. Most of all, he enjoys having a real conversation, so if you have comments and questions, we hope you will post them.
These days, Mr. Lawrence is Manager of Economic Devleopment Planning for EDGE, and we appreciate him taking time to share his thoughts with us, beginning with this first one:
By John Lawrence
The greater Memphis region should be a global leader in the innovation, production and distribution of high-value goods and services, and a model of broad-based, inclusive growth. To realize this, a team of stakeholders, experts and civic leaders from Memphis and Shelby County would be needed. And, a process to guide economic development planning would be critical.
FedEx Executive Vice President Christine P. Richards, Shelby County Mayor Mark H. Luttrell Jr. and Memphis Mayor AC Wharton Jr. agree and are co-chairing a process to create the Memphis & Shelby County Regional Economic Development Plan.
A model that adapts the discipline of private sector business planning is jumpstarting the process, and results are starting to materialize.
The Goals are Ambitious
Anchored by Memphis & Shelby County, this should be the preeminent U.S. region for multi-modal movement of goods, specializing in solutions for high-value, just-in-time products.
This should be the hub for innovation, production and global export of goods and services.
This should be the home of broad-based economic opportunity, with improved skills and access to jobs and opportunity, throughout the region.
This should be a model of region-wide collaboration, with strong capacity to undertake market analyses, ongoing strategic growth planning, and implementation.
The Opportunity is Timely
Metropolitan Business Planning (MBP) developed by the Brookings Institution and RW Ventures is the concept guiding the process. This is not a one-time planning exercise. MBP demands a continuous cycle of analysis, development, implementation and review in order to position metropolitan regions for participation in the New-Economy.
The New-Economy is knowledge-based, innovation-driven, global and dynamic. Metropolitan regions are driving the global economy. Growth is based on production and adding value, not consumption or intra-regional competition. Sustainable metros are inclusively linking populations to opportunities and aligning across multiple economic market levers.
More than 100 local experts and stakeholders have come together to help:
* Define economic sectors and create concentrated cluster strategies
* Deploy human capital to support workforce needs
* Expand exports and international business
* Increase spatial efficiency to improve infrastructure and the built environment
* Develop infrastructure ideas for innovation and entrepreneurship
* Create effective aligned governance and civic institutions
In addition to the steering committee, market-lever workgroups and the Brookings team, Memphis Fast Forward initiatives (the Growth Alliance and PeopleFirst Partnership) have been engaged. Funding and staffing is being provided by the Economic Development Growth Engine for Memphis and Shelby County (EDGE).
The Need is Real
World-class freight transportation infrastructure exists but logistics alone drives market competitiveness. We have a strong biomedical and surgical devices cluster but overall industrial diversity is declining. Promising workforce development programs are growing because workforce skills are not aligned with industry.
There are respected research institutions and an emerging innovation ecosystem but R&D has weak partner networks and lacks resources. Strategically located sites for development projects exist while geographic expansion outpaces economic growth. We have fantastic international trade infrastructure but expansion opportunities through exporting are not adequately promoted. And, numerous public, private and civic partners exist but initiatives are fragmented and market analysis capacity is limited.
The Memphis & Shelby County Regional Economic Development Plan is providing a researched-based platform to fully understand issues like these, detail strategies to improve market performance and launch implementable economic development initiatives.
Your Help is Needed
Over the next few weeks, Smart City Memphis has agreed to post information about seven emerging strategic themes. More tactical initiatives are being prioritized. As this is a continuous process of transformation, honest dialogue is important for both understanding true market conditions and initiatives of particular community importance.
Please look forward to and provide feedback on the following:
Part Two: Securing the Global Logistics Brand – Wednesday (9/25/13)
Part Three: Diversifying the Economy Beyond Logistics – Friday (9/27/13)
Part Four: Leveraging Assets for International Trade – Tuesday (10/1/13)
Part Five: Building a New Manufacturing Economy Workforce – Thursday (10/3/13)
Part Six: Organizing for Innovative Entrepreneurial Growth – Monday (10/7/13)
Part Seven: Connecting Jobs, Workers, Institutions & Activity Centers – Wednesday (10/9/13)
Part Eight: Tracking the Market to Understand Emerging Opportunities – Monday (10/14/13)
Part Nine: Prioritizing First-Step Initiatives – Wednesday (10/16/13)
Finally, research is leading our economic development plans. How encouraging … and refreshing. This is smart, sustainable strategy.
Is this the same EDGE from this post: http://www.smartcitymemphis.com/2013/09/piloting-smart-incentives-for-a-better-economic-landing/
Frank, this is the same EDGE. EDGE is certainly known for the PILOT program. However, the organization (while only two years old) is building its palette of programs and tools. There are recently launched business loan programs for instance.
Beyond financial incentives for business attraction and expansion, the organization is a logical leader for examining the regional economy. Economic development planning was on their agenda when this opportunity from Brookings came up. The Mayors agreed that allowing the Economic Development Growth Engine for Memphis & Shelby County organize this effort made sense.
For more visit: http://www.growth-engine.org
So when is Memphis gonna pony up it’s share of the EDGE budget?
thought so.
So what entities fund the EDGE budget anon? And in what proportion?
Frank:
As Mr. Lawrence said, it is that EDGE, and over the years, we have been vocal about our concerns about our overreliance and overuse of tax freezes in ways not found in any city that we know of. In fact, we just wrote a two-part series last week about smarter business incentives. We are open about those concerns (which he knows full well about) and we are equally open and honest about our concerns about the lack of any coherent and cohesive economic development plan for this community. Because we have worked with Mr. Lawrence on some crucial (and no particularly popular) issues in the past, we know that his heart is in the right place and that this work on a plan will reflect that.
In other words, we know him and we have found him to be candid and sincere about these issues. We are posting these commentaries by him so you’ll know what he and EDGE are attempting to get done. We’re sure that John knows that many of us who have watched the economy of this city and county tank in the past 10 years are taking a wait and see attitude but we do think that he’s taking a thoughtful approach in looking at all the components that matter.
We may not end up agreeing with everything that is being done, but we do want to encourage a serious conversation about them. We’ve gotten a few emails asking why we are posting these columns by EDGE, but we’d like to think that we’re not so doctrinaire that we aren’t willing to listen and learn more about what Mr. Lawrence is doing in his work on an economic development plan.
Maybe this time, unlike the other limited and failed plans, this one will work. We’re sure willing to give it a chance, because Memphis and Shelby County desperately need to change their trajectory. In addition, we assume that once this plan is complete, EDGE’s strategies and programs will be based on it, and we’re hoping that means that we will be less inclined to reflexively dole out tax waivers for anybody who wants one.
Anonymous: Our attitude is that Memphis already ponies up for the EDGE budget because Memphis taxpayers contribute 65% of all the county’s funding. As we wrote before, we think that these kinds of initiative should be solely funded by county government, or otherwise, Memphians pay twice for something people outside Memphis get by paying once.
Is this plan the same as the Metropolitan Business Plan?
Brad, yes. The model being used is Metropolitan Business Planning and it is through a partnership with the Brookings Institution.
For more on the model and the Metropolitan Policy Program: http://www.brookings.edu/about/projects/state-metro-innovation/mbp
I did some research for the Metropolitan Business Plan the first time around. Its name always seemed a misnomer to me, over promising what its actual deliverable would be. Then, it was a lot of research and lots and lots of process, kind of typical Brookings stuff, to come up with one or two new economic opportunities. Is that still the case?
I’m not saying that the work you’re doing isn’t helpful and informative I’m just wondering if in the end the deliverable is different.
Also, I wouldn’t invest too much in that mayors’ endorsement. It’s all political to them. When I was working on the first attempt, I was struck by how little understanding there is in City Hall of the county building about economic development.
BoB, yes & no.
This is very research based and it does drive you toward prioritizing specific lead initiatives to really business plan. It also helps align resources behind focused programs or policy that influence multiple market levers.
But it is intended to be less a plan and more a cycle of continuous improvement. Research, analyze, find opportunities, define problems, plan interventions, implement, measure, adjust, repeat.
The business plan(s) is the initial deliverable. However, staying in a process of regularly exploring economic development issues is also a need.
We need a mechanism to regularly do these things. Capacity to plan economic development is a theme of an upcoming post.
That’s what I thought. It’s always seemed to me to be a planning process but not really a plan. When I was working on the research at U of M, I said that they call it a business plan, but it’s really white papers on various aspects of the economy and I really don’t know why we need Brookings to do that. That’s why I think the Brookings title is misleading and a misnomer, and we need to be straight up with the public that this isn’t going to produce a real ED plan. I think that after this is done, we still need a real jobs and talent plan because the the Metropolitan Business Plan will end up being a single big idea like it was in the other cities who’ve been part of the program, and some of them have worked and just as many haven’t. Thanks for the link.