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A glimpse at a new world of work




                                   
New Infrastructure Required for Knowledge
       Based vs Machine Based Community




1.   Place Creating and Generating Infrastructure
2.   Human Capital Building Infrastructure
3.   Tele-mobility Infrastructure
4.   Social Capital Infrastructure
5.   New Governance Infrastructure
New Economic Development
                   Four Factor Theory
                  Human      Image
                                                                               Creative
                                              Firms                          Institutions
                                  Market Access
                                                               Magnet
                                                           Infrastructure
    Deep Resource Pool
                                                      Knowledge Generation


                                                          Socio-economic
                Regional                                      Equity


                                                          Sustainability
           Strong Connectivity

internal                         Global   Environmental
                                                                           Venue Quality
                                           Distinction
Theory to Implementation

   Ingredients              Recipes            Results

• Intellectual capital    • New ideas       • Productivity
  • Human capital        • Entrepreneurs     • Prosperity
 • Financial capital       • Networks      • Cluster vitality
Global Producer Services
 Dominate Economies




    The fastest growing industry clusters were
    Information and Communications Services,
          Health and Business Services
                                           Return Home
Shifting Industries
Low cost               Knowledge
    Quantity               Quality
    Stability              Speed
   Capital equipment      Flexibility
   Control                Networks
Innovation is a Social Process


 Interactive—doesn’t occur in a straight line.

 Group creativity—not dependent on a few.

 Tacit knowledge—depends on “know-how.”

 Networks—ideas flow more freely.

 Competition/collaboration—both are needed.
Cornerstones of Regional
       Innovation
Creating Your Demographics

                    Universities attract
                    international students
                  Bounty for job creators
                    Re-examination of
                   roles and hierarchies of
                           centres
                       Role of New
                    populations in creating
                      and sustaining new
                        economic and
                     commercial activities
Innovation is Place Based


 Most innovative work occurs in face-to-face exchange
  within teams.

 Geographic clustering is a powerful mechanism for
  sharing personal knowledge.

 The creative heart and soul of the economy will continue
  to be tied to place.

 Location is still important.
Group Think is good think
The Innovation Process


 It’s not the ingredients but the recipe.

 What matters most is the ability of entrepreneurs to
  connect regional assets and leverage them through the
  innovation process to achieve competitive results.
Framework for the Innovation
        Process
New Magnet Capacity Building Designed On Local Economic Development

Magnet as the collaboration among small firms. Different nodes of collaboration to
                form Sustainable industry cluster in Wollongong
                                                                          International Markets
    Small Creative firms
                                                         Global firms
     (Content creators)
                               Problem solving,
                                                       (Market Control)

                                Product supply
                               experiments of
     Social network of
                               new technology,       Distribution channels
     creative workers,
                                  Payment
                             New Local economic
                                                  Blue Steel as Brand power
     Steel Fabricators,     Development Structures
                                                      Market information
     Software workers




                                     Domestic Markets




                                                                                      16
 © 2009 Namji Jung
Financing the New Knowledge Precincts
                                  Knowledge Space


                                   Live-work Space


                                 Work-Communi-space
Regional Leadership Makes the
  Difference in Innovative Regions


 Build fundamental assets.

 Connect entrepreneurs to assets.

 Promote a culture of innovation.

 Make quality of life an innovation asset.
Regional Leadership Makes the
  Difference in Innovative Regions


 Talent

 Technology

 Capital

 Supportive Infrastructure
     Transportation
     Housing
     Advanced telecommunications
New Magnets for Regional Development
          Human       Image


                                  Magnet
                              Infrastructure
 Deep Resource Pool




                              Sustainability
Examples of Convergence




                          New Generation Local Small Firms
                                                   Blue Steel
                                              University
Capacity Resource of City
Connectivity                   High quality and reliable         Frankfurt, Chicago, Denver
                               telecommunications, airports,     that are global cities primarily
                               seaports and efficient cross      because of their internal and
                               regional connectivity by public   external communication and
                               and private transportation        air transport systems
                               systems




Strategic Capacity             Ability to mobilize public and    Atlanta, Boston, Washington
                               private actors for a common       DC, Pittsburgh, Brussels with
                               agenda                            able local leadership in public
                                                                 and private sectors

Innovation/ entrepreneurship   Firms organizations lead by       San Jose Costa Rica,
                               creative economic and social      Berkeley Calif, Los Angeles,
                               entrepreneurs with readily        Stockholm are incubators or
                               available venture capital         highly innovative talent
Magnet Infrastructure
Connectivity                 High quality and reliable       Frankfurt, Chicago, Denver
                             telecommunications, airports,   that are global cities primarily
                             seaports and efficient cross    because of their internal and
                             regional connectivity by        external communication and
                             public and private              air transport systems
                             transportation systems




Strategic Capacity           Ability to mobilize public and Atlanta, Boston, Washington
                             private actors for a common DC, Pittsburgh, Brussels with
                             agenda                         able local leadership in public
                                                            and private sectors

Innovation/ entrepreneurship Firms organizations lead by     San Jose Costa Rica,
                             creative economic and social    Berkeley Calif, Los Angeles,
                             entrepreneurs with readily      Stockholm are incubators or
                             available venture capital       highly innovative talent
Understanding Brain Pool




  The region needs to retain 20 - 34 year old population
Re-Inventors


 Using Resources



 Generating Wealth



 Producing Beauty



 Securing the Future
New Magnet Incubator
Market Positioning



                  Maps


Models




     Bikeways from mean
           streets


         New Urban Form
Re-positioning Economy
Education as a new and major industry




                                    
World Best Information Technology
Hallmarks of a New Economy
• Creativity Centered-not product centered
• Design based over development based
• Human Capacity over power and energy
• Place and critical vs incidental
• Place creates the economy vs economy
  designed to fit the economy
• Agglomeration of clusters vs clusters as base
Global Competition for Work



                  Regional average pay
                 peaked in 2000 and has
                 declined by 6% between
                  2000-2003. Increasing
                 number of part time and
                       casual jobs




                                     Return Home
Future Proof Neighborhoods
High quality both physically
and socially is a necessary
part of the investment
package for infill
developments which means
local government and
developers must be
partners in providing
management during and
post project to insure
success over the long term
of these projects.



  High quality management is just as
     important as quality buildings
• RESEARCH FUNDS (Fed, Fdn)
• TRAINING AND DEVELOPMENT
• PUBLICATIONS AND WEB SITE
• FOUNDATION PROGRAM
  SUPPORT
• GROUP ASSISTANCE FEES
Mobilecommunity---Community of
          networks
New Roles and rule s for
   Master Builders
New Uses for Old
Worksharing
Community=All Ages and economic classes
Rebuilding the Old
Vodka Force
Home of Past as Museum of
         Future
Financial Tools $$
Economic Impact Analysis with Value Capture Approach
                                An economic feasibility study of the
                                project and its effect on the
                                municipality’s tax base;

                               A detailed list of estimated project
                                costs;

                                A description of the methods of
                                financing all estimated projects costs
                                and a cash flow statement;

                               A map showing existing uses and
                                conditions of property in the district;

                                Proposed changes to any zoning
                                instrument, master plan or other
                                planning instrument; and

                               A list of estimated non‐project costs
Local Economic Development
       Finance System
     Not for profit Organizations (NPO)
Community Development Corporations (CDC)
     Community Finance Intermediaries
   Foundation Investment Groups (PRIs)
    Investment Funds and Organizations
      Faith Based Organizations (FBO)
    Community Development Financial
              Institutions (CDFI)
Retooling Government:
Public-Private Economic
Development Partnership


                                             Private
                           Government        Sector
                            Resources      Investment



                          Effective Laws    Economic
                             & Policies    Research &
                                             Expertise
The future is here

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Edward Blakely - The slow speed economy

  • 1. A glimpse at a new world of work 
  • 2.
  • 3.
  • 4. New Infrastructure Required for Knowledge Based vs Machine Based Community 1. Place Creating and Generating Infrastructure 2. Human Capital Building Infrastructure 3. Tele-mobility Infrastructure 4. Social Capital Infrastructure 5. New Governance Infrastructure
  • 5. New Economic Development Four Factor Theory Human Image Creative Firms Institutions Market Access Magnet Infrastructure Deep Resource Pool Knowledge Generation Socio-economic Regional Equity Sustainability Strong Connectivity internal Global Environmental Venue Quality Distinction
  • 6. Theory to Implementation Ingredients Recipes Results • Intellectual capital • New ideas • Productivity • Human capital • Entrepreneurs • Prosperity • Financial capital • Networks • Cluster vitality
  • 7. Global Producer Services Dominate Economies The fastest growing industry clusters were Information and Communications Services, Health and Business Services Return Home
  • 8. Shifting Industries Low cost Knowledge Quantity Quality Stability Speed Capital equipment Flexibility Control Networks
  • 9. Innovation is a Social Process  Interactive—doesn’t occur in a straight line.  Group creativity—not dependent on a few.  Tacit knowledge—depends on “know-how.”  Networks—ideas flow more freely.  Competition/collaboration—both are needed.
  • 11. Creating Your Demographics  Universities attract international students  Bounty for job creators  Re-examination of roles and hierarchies of centres  Role of New populations in creating and sustaining new economic and commercial activities
  • 12. Innovation is Place Based  Most innovative work occurs in face-to-face exchange within teams.  Geographic clustering is a powerful mechanism for sharing personal knowledge.  The creative heart and soul of the economy will continue to be tied to place.  Location is still important.
  • 13. Group Think is good think
  • 14. The Innovation Process  It’s not the ingredients but the recipe.  What matters most is the ability of entrepreneurs to connect regional assets and leverage them through the innovation process to achieve competitive results.
  • 15. Framework for the Innovation Process
  • 16. New Magnet Capacity Building Designed On Local Economic Development Magnet as the collaboration among small firms. Different nodes of collaboration to form Sustainable industry cluster in Wollongong International Markets Small Creative firms Global firms (Content creators) Problem solving, (Market Control) Product supply experiments of Social network of new technology, Distribution channels creative workers, Payment New Local economic Blue Steel as Brand power Steel Fabricators, Development Structures Market information Software workers Domestic Markets 16 © 2009 Namji Jung
  • 17. Financing the New Knowledge Precincts Knowledge Space Live-work Space Work-Communi-space
  • 18. Regional Leadership Makes the Difference in Innovative Regions  Build fundamental assets.  Connect entrepreneurs to assets.  Promote a culture of innovation.  Make quality of life an innovation asset.
  • 19. Regional Leadership Makes the Difference in Innovative Regions  Talent  Technology  Capital  Supportive Infrastructure Transportation Housing Advanced telecommunications
  • 20. New Magnets for Regional Development Human Image Magnet Infrastructure Deep Resource Pool Sustainability
  • 21. Examples of Convergence New Generation Local Small Firms Blue Steel University
  • 22. Capacity Resource of City Connectivity High quality and reliable Frankfurt, Chicago, Denver telecommunications, airports, that are global cities primarily seaports and efficient cross because of their internal and regional connectivity by public external communication and and private transportation air transport systems systems Strategic Capacity Ability to mobilize public and Atlanta, Boston, Washington private actors for a common DC, Pittsburgh, Brussels with agenda able local leadership in public and private sectors Innovation/ entrepreneurship Firms organizations lead by San Jose Costa Rica, creative economic and social Berkeley Calif, Los Angeles, entrepreneurs with readily Stockholm are incubators or available venture capital highly innovative talent
  • 23.
  • 24.
  • 26.
  • 27. Connectivity High quality and reliable Frankfurt, Chicago, Denver telecommunications, airports, that are global cities primarily seaports and efficient cross because of their internal and regional connectivity by external communication and public and private air transport systems transportation systems Strategic Capacity Ability to mobilize public and Atlanta, Boston, Washington private actors for a common DC, Pittsburgh, Brussels with agenda able local leadership in public and private sectors Innovation/ entrepreneurship Firms organizations lead by San Jose Costa Rica, creative economic and social Berkeley Calif, Los Angeles, entrepreneurs with readily Stockholm are incubators or available venture capital highly innovative talent
  • 28. Understanding Brain Pool The region needs to retain 20 - 34 year old population
  • 29. Re-Inventors  Using Resources  Generating Wealth  Producing Beauty  Securing the Future
  • 31. Market Positioning Maps Models Bikeways from mean streets New Urban Form
  • 33. Education as a new and major industry 
  • 35. Hallmarks of a New Economy • Creativity Centered-not product centered • Design based over development based • Human Capacity over power and energy • Place and critical vs incidental • Place creates the economy vs economy designed to fit the economy • Agglomeration of clusters vs clusters as base
  • 36.
  • 37. Global Competition for Work Regional average pay peaked in 2000 and has declined by 6% between 2000-2003. Increasing number of part time and casual jobs Return Home
  • 39. High quality both physically and socially is a necessary part of the investment package for infill developments which means local government and developers must be partners in providing management during and post project to insure success over the long term of these projects. High quality management is just as important as quality buildings
  • 40.
  • 41. • RESEARCH FUNDS (Fed, Fdn) • TRAINING AND DEVELOPMENT • PUBLICATIONS AND WEB SITE • FOUNDATION PROGRAM SUPPORT • GROUP ASSISTANCE FEES
  • 43. New Roles and rule s for Master Builders
  • 46.
  • 47.
  • 48.
  • 49.
  • 50. Community=All Ages and economic classes
  • 53. Home of Past as Museum of Future
  • 54.
  • 55.
  • 56.
  • 57. Financial Tools $$ Economic Impact Analysis with Value Capture Approach  An economic feasibility study of the project and its effect on the municipality’s tax base;  A detailed list of estimated project costs;  A description of the methods of financing all estimated projects costs and a cash flow statement;  A map showing existing uses and conditions of property in the district;  Proposed changes to any zoning instrument, master plan or other planning instrument; and  A list of estimated non‐project costs
  • 58. Local Economic Development Finance System Not for profit Organizations (NPO) Community Development Corporations (CDC) Community Finance Intermediaries Foundation Investment Groups (PRIs) Investment Funds and Organizations Faith Based Organizations (FBO) Community Development Financial Institutions (CDFI)
  • 59. Retooling Government: Public-Private Economic Development Partnership Private Government Sector Resources Investment Effective Laws Economic & Policies Research & Expertise
  • 60.