PCRD

Incentives to Encourage Collaboration

A small group of cities and towns in Northeast Ohio is trying to figure out strategies to share revenues. In this way, they hope to curb the destructive competition among cities and towns within the region. You can learn more about this initiative from its web site.

Now, the State of Ohio is exploring ways to encourage this type of collaboration. Read more.
Indiana should be interested interested in following this approach.

We can start by looking at the WIRED initiative (Workforce Innovation in Regional Economic Development) and the Regional Innovation Grants (pre-WIRED grants) that the Department of Labor has been making. The Department of Labor has been stimulating regional collaboration by placing positive incentives in front of regions.

You can learn more about what is going on in the WIRED regions from the WIRED Nation web site.
In the years ahead, state policy-makers will be redesigning economic development incentives to encourage these collaborations. But we can expect local incentives to come under more scrutiny, as well. We will see new types of local economic development incentives.

Here's an example. Recently, I worked with Cuyahoga County (Cleveland) to develop a local innovation zone incentive initiative. The initiative is designed to encourage local collaborations. It begins with a concept of "anchor partners", which must include at least one college or university. You can learn more from the project web site.

The Collaboration Continuum

"Collaboration" is a term bandied about a great deal in regional development work - municipalities, institutions, organizations all trying to figure out if or how they should work together. Most of the time, it seems, there is little understanding, much less agreement, about what collaboration means. Defining these terms is a great idea when working with multiple interests trying to figure out if and how to work together in a regional context.

Over the years I've seen several collaboration continuum tools that are helpful. I recently ran across one that I think is a great communications tool. The continuum begins with Networking and ends with Integrating. It also plots how turf and trust play into the relationship. For example, when trust is low and turf issues are high, the best to hope for is probably some information sharing (Networking). When Turf issues are low and trust is high, that is when greater levels of collaboration can occur.

This little model is available in an animated PowerPoint file here. It comes from a youth development organization, ACT for Youth, out of New York but I think it applies to all areas of regional development work.

Three Counties Collaborate to Help Area Manufacturers Compete

Manufacturers in Benton, Fountain, and Warren Counties (Indiana) are having a bit of a problem. It's tough to find skilled workers. As a result, they are missing opportunities for more business and this three-county region is missing a chance for economic growth. The Wabash Valley Workforce Consortium (WVWC) stepped to task and came up with an innovative solution. WVWC is organized by the Warren County Local Economic Development Organization. To solve this problem, WVWC pulled together a strategic partnership that includes the Indiana Office of Community and Rural Affairs, WIRED, Ivy Tech Community College, and the Manufacturing Skills Standards Council.

For the first time in this region, the Manufacturing Skills Standards Council (MSSC) certificate program will be available to the area's workforce. This certificate is seen as the "gold standard" among manufacturers. Worker's with these credential come ready to work in a high-performance manufacturing environment. Companies that hire MSSC-certified workers are much better positioned to compete and people with this certification are able to take on higher-skilled, higher-paid positions. In essence, everybody wins.

John Engler, President of the National Association of Manufacturers and former Governor of Michigan has this to say about the MSSC certification:

“This is a breakthrough with great implications for the future of manufacturing in the United States.  Introduction of this certification program underscores growing recognition that America must do a better job of training and educating our workforce to remain competitive in the global economy. MSSC’s federally recognized skill standards remain the most authoritative and comprehensive definition of the skills and knowledge sought by the nation’s leading manufacturers.”

For more information about this innovative partnership contact Warren County Economic Development Director Carol Clark via email.

Great Ideas for Local Governement Leaders

Many local officials recognize that their community does not exist in an small economic bubble and but rather is tied to a much larger regional economy. The challenge comes in figuring out how to work across city, county, and sometimes state lines to collaboratively address economic and quality-of-life challenges (and to take advantage of economic opportunities). The Alliance for Regional Stewardship and the National League of Cities have a very practical report called Guide to Successful Local Government Collaboration in America's Regions (download here). It has lots of examples of success stories and tools for local and regional leaders.

The guide provides sets of tools that are categorized as (1) Easier Options and (2) Harder Options. Here are examples of what you will find in each:

Easier Options

• Informal Cooperation
• Interlocal Service Contracts
• Joint Powers Agreements
• Extraterritorial Powers
• Councils of Governments
• Federally Encouraged Single-Purpose Regional Bodies
• State Planning and Development Districts
• Contracting
• Regional Purchasing Agreements

Harder Options

• Local Special Districts
• Transfer of Functions
• Annexation
• Special Districts and Authorities
• Metro Multipurpose Districts
• Reformed Urban County
• Regional Asset Districts
• Merger/Consolidation