County Economic Development in a Global Context

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County Economic Development in a Global Context

• Jonathan Q. Morgan, Ph.D.
• NCACC Annual Conference
• August 22, 2008 Concord, NC

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Session Overview

• Explore how globalization and the new economy
  affect county economic development
• Examine what businesses need to compete in a
  global context
• Consider how counties can respond and better
  promote private investment

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The New Economy

• Globalization of economic activity
• Shift from manufacturing to service industries
• Increased role of knowledge, innovation,
  technology
• The importance of education and skills
• Quality of place and community

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Globalization

• Goods, people, knowledge, ideas, and capital move
  more freely across borders
• Off-shoring of operations to lower cost locations
  abroad
• World economies are more interconnected

5
New Economy Knowledge Economy

• Transition from an economy in which we make stuff
  to one in which we need to know stuff
• Knowledge workers lead the way
• Innovation and technology fuel growth

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U.S. Job Growth 2000-2010
Source U.S. Bureau of Labor Statistics
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The Education Payoff
Unemployment Rate in 2003
Median Earnings in 2003
Doctoral
Professional
Masters
Bachelors
Associate
Some college
H.S diploma
Some H.S.
Source U.S. Bureau of Labor Statistics
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A regions performance in the knowledge economy
can rise no higher than the sum of the knowledge
of its people.

• 2001 Report on the Future of the South

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In order to compete successfully in the age of
talent, regions must make quality-of-place a
central element of their economic development
efforts.

• Richard Florida

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The Role of Community in a Global Environment

• Whats the connection to the new economy?
• The ties that bind
• Creating sticky places

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What matters to companies?

• Sites and Buildings
• Access to Suppliers and Markets
• Workforce/Labor
• Financial Capital
• Regulatory Environment
• Transportation and Utilities
• State and Local Incentives
• Taxes
• Quality of Life

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What matters mostSite selection factors

• Highway accessibility 96.9
• Labor costs 92.3
• Energy availability and costs 89.0
• Availability of skilled labor 88.7
• Occupancy or construction costs 88.2
• Available land 85.4
• Corporate tax rate 83.8
• State and local incentives 83.4
• Environmental regulations 83.2
• Tax exemptions 82.8
• Source Area Development, 22nd Annual Corporate
  Survey, 2007.

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What matters mostQuality of life factors

• Low crime rate 74.0
• Ratings of public schools 62.6
• Housing availability 62.1
• Housing costs 58.8
• Health facilities 57.4
• Climate 51.6
• Cultural opportunities 48.7
• Colleges and universities 47.3
• Recreational opportunities 43.4
• Source Area Development, 22nd Annual Corporate
  Survey, 2007.

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Foundations of Economic Competitiveness

• Regional economic base
• Human capital
• Financial capital
• Physical infrastructure
• Social and civic infrastructure

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Challenges of Globalization the New Economy

• Greater uncertainty
• Increased competition
• Economic transition
• Education and skills gap
• Differentiating your community

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Opportunities with Globalization the New Economy

• Industry cluster-based development
• Specialization
• Focus on quality and adding value
• Workforce development
• Science and math education
• Technical skills
• Soft skills

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Opportunities with Globalization the New Economy

• New markets abroad for North Carolina goods and
  services
• Assist firms with exporting
• Strengthen local ties (networks) in order to
  compete globally

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Contact Information

• Dr. Jonathan Morgan
• Assistant Professor
• UNC School of Government
• CB 3330
• Chapel Hill, NC 27599
• 919-843-0972
• morgan_at_sog.unc.edu