Extensions Vital Role in Open-Source Economic Development

Galaxy III Celebrating the Extension System: Strengths, Diversity, &

Unique Qualities September 17, 2008 Indianapolis, Indiana

Scott Hutcheson, Assistant Program LeaderEconomic & Community Development

Purdue Extension

Economic Development 101

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Our Grandfathers Economy

Wealth was built at a rate the world had never before experienced

First Curve Wealth driven by vertical business models

The S Curve Caught Up with Our Grandfathers Economy

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

The First and Second Curves

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

We live in an Open-Source World

We live in an Open-Source World

From Hierarchies to Networks

The 2nd Curve is Our Grandchildrens Economy

Second Curve Wealth driven by network business models

The job of our generation is to manage the transition between our grandfathers economy and our

grandchildrens economy.

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Open Source Economic Development

Linking and Leveraging

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Open Source Economic Development

No Single Strategy Many Strategies

OSED Strategies Are Asset-Based

2nd Curve strategies involve linking and leveraging assets in five asset networks:

Brainpower Innovation Quality places Community Stories Civic Collaboration

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Success in the 2nd CurveCommunities will prosper in the Second Curve with balanced strategies that...

Build world class brainpower Translate brainpower into wealth through

innovation and entrepreneurship networks Create quality, connected places where hot

spots can develop Create new stories about the community Continuously strengthen habits of civic

collaboration

Integration of Perspectives

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

Building Word-Class Brainpower Early Childhood Pre-K K-12 Technical programs Community college Universities Workforce Development Lifelong Learning

Brainpower

The average community knows more about its solid waste system than it knows about its brainpower system.

Mapping Brainpower Flow

Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

What is Extensions Role in the Brainpower Game?

Be seen as an Extension of the university the entire university

Bring STEM/SET resources to the community

Bring stakeholders together to map the flow of brainpower

Innovation & Entrepreneurship

Introduction of new products & processes each year

Only 15% of businesses are typically innovators usually have high growth trajectory

When 50% of business are innovators you have an entrepreneurship/innovation culture

Innovation is Not Just High Tech

A BBQ restaurant starts bottling and selling sauce

A dry cleaners develops a new greenprocess and licenses the new process

A beauty shop develops a new way to train stylists and goes nationwide

http://www.acenetworks.org/upload_files/file/Regional%20Flavor%20June.pdf

A Tale of Two Entrepreneurs Cities

A Tale of Two EntrepreneursA Tale of Two Entrepreneursand Two Citiesand Two Cities

Founded in Washington (State) in 1971 Initial investment - less than $8,000 2006 sales were $7.8 billion Created 145,800 jobs This is their founder

A Tale of Two EntrepreneursA Tale of Two Entrepreneursand Two Citiesand Two Cities

Founded in Washington (State) in 1971 Initial investment - less than $8,000 2006 sales were $7.8 billion Created 145,800 jobs This is their founder This is their logo

A Tale of Two EntrepreneursA Tale of Two Entrepreneursand Two Citiesand Two Cities

Founded in Washington (State) in 1971 Initial investment - less than $8,000 2006 sales were $7.8 billion Created 145,800 jobs This is their founder This is their logo

A Tale of Two EntrepreneursA Tale of Two Entrepreneursand Two Citiesand Two Cities

Founded in Indiana in 1985 Initial investment - less than $2,000 2006 sales were $1 billion Created 14,743 jobs This is their founder

A Tale of Two EntrepreneursA Tale of Two Entrepreneursand Two Citiesand Two Cities

Founded in Indiana in 1985 Initial investment - less than $2,000 2006 sales were $1 billion Created 14,743 jobs This is their founder This is their logo

A Big Difference Between A Big Difference Between Starbucks and Papa JohnStarbucks and Papa Johnss

A Big Difference Between A Big Difference Between Starbucks and Papa JohnStarbucks and Papa Johnss

The Billion $ QuestionThe Billion $ QuestionWhat makes a community sticky when it comes to its entrepreneurs?

WeWere finally beginning to learn re finally beginning to learn about Entrepreneursabout Entrepreneurs

Think of Innovation and Think of Innovation and Entrepreneurship as a HorseraceEntrepreneurship as a Horserace

Innovation & Entrepreneurship: A Horse Race

The Horse The Innovation

Innovation & Entrepreneurship : A Horse Race

The Horse The Innovation The Jockey The Entrepreneur

Entrepreneurship

The Horse The Innovation The Jockey The Entrepreneur The Track The Community

Community Support Systems for Community Support Systems for Innovation & EntrepreneurshipInnovation & Entrepreneurship

Taking Care of Taking Care of the Trackthe Track

The Innovation and Entrepreneurship-Supportive

Community Supportive policy environment History, culture, institutional memory Attitudes about failure Collaborative support organizations Celebrate innovations andentrepreneurs An information-rich environment

WhoWhos Job Is it to Tend s Job Is it to Tend to the Track?to the Track?

Chamber? LEDO? Elected Officials? Banks? Schools/University? Extension?

Economic Gardening

http://www.littletongov.org/bia/economicgardening/

Economic Gardening 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 Sales tax revenue tripled from $6.8 million

to $19.6 million

Economic Gardening

Information Infrastructure Connections

Entrepreneurship Business Information Network (eBIN)

Inspired by the Economic Gardening Model Partnership of

Purdue Krannert Business & Economic Library Purdue Extension Small Business Development Centers

http://pcrd.typepad.com/ecd/2007/08/coming-soon-to-.html

Help entrepreneurs answer questions like: What other products or services are out there that are

similar to mine? Who are my potential customers and how do I reach

them? What are my potential customers like? What are the latest trends in my industry? What legislative issues could effect my business?

Marketing Lists Business & Company Resource Center - US and International

company database with profiles, financials, rankings, company history, industry overview, and related associations.

Reference USA - US company database that includes subsidiaries and divisions. Provides brief profiles and contact information with very powerful search capabilities for generating lists of potential customers or competitors.

Industry Trends Bizminer - Contains market analysis and financial analysis for 100s

of industries. Excellent source of information for small business planning with 3 yrs of data for developing projections and financial targets.

MarketResearch.com (Academic) - Demographic and market-specific research information.

Frost Market Reports - Manufacturing and technology-related market research information. Coverage is international in scope.

eBin Data Resources

Customer Profiles Choices III - Survey of consumer buying and media habits.

Significant flexibility to determine potential target markets and advertising opportunities.

MediaMark Reporter - This database provides profiles of American consumers - who they are, what they buy, what they think, and how to reach them.

Journal Articles and Business News Business Source Premier - Business magazine and journal article

databases; significant full-text with deep historic back file. Also contains company profiles, SWOT analysis, industry profiles and market research briefs.

Factiva - General news, magazines, business news, international publications and US newspapers content. Also contains public company profile/financial information.

Regional Business News - Regional (US & International) business magazines.

eBin Data Resources

Legislative Lexis Nexis Academic - US laws, regulations

and court cases at the national and state level. Also contains significant news/newspaper content as well as company information.

RIA Checkpoint - Tax laws, rulings, and regulations.

Agribusiness Agricola - Agricultural database of journal