Economic development in a slowing economy

So, the economy is slowing down. What do you do?

Here is an example of a county that appears to be running to old, traditional answers.  In an economic slowdown, of course, companies pull back and slow their capital investment plans. So, by definition, the recruitment game gets harder.

Nevertheless, one county in Florida is accelerating plans to increase recruitment. Read more.  There is not much original thinking here.

Here are some alternatives to consider:

• Invest in Stage Two companies: These are the companies that employ between 10 and 99 people and they account for most of the job growth in the economy.  You can learn more about Stage Two companies from the website recently launched by the Lowe Foundation: Your Economy. (This website is continuing to  evolve, and some of the tabs are not working yet.)
• Build entrepreneurial networks: The long-term vibrancy of a county or regional economy will depend on collaborative networks that support entrepreneurs and growing companies.  Economic gardening, developed by Chris Gibbons in Littleton Colorado provides a powerful set of tools  for building these networks. ( You can  learn more about economic gardening from the website that Chris and I launched recently here.)
• Strengthen career pathways: over the long term, companies will need brain power and lots of it. In some companies two thirds of the skilled employees will be retiring over the next 10 years. Companies will locate where they can work with educational partners.  The critical opportunity: middle skill jobs.
• Create incentives for education past high school. The Kalamazoo Promise has shown that a community can become a strong attraction to business investment by investing in education.

Heading out on a new path is never easy.  One of the most difficult challenges that economic development professionals (EDPros)  face comes in changing the expectations of local elected leaders. The old recruitment game, while still important, plays a less significant role in an economy driven by brainpower and innovation.

 Instead, new strategies are emerging around networks and collaboration. Here's an example. This week a meeting, sponsored by Cornell University, explores new strategies in rural communities around sustainability. Learn more.

The profession of economic development is moving quickly with new models. EDPros who fall back to much on traditional approaches risk missing out on the newer generation of strategies.