Recommendations for Supporting Regions to Grow their Economies

Provide capacity building for regions to understand the nature of regional economies

Although general capacity building is discussed in module 10, several states have particularly focused on helping regions to really understand the nature of regional economies. For example, the University of Minnesota and Michael Porter of Harvard University teamed up to provide a training course to staff in Minnesota. This “micro-economics of competitiveness” course included the how, why, and methodology to determine regional economies. California uses a training workshop and guidebook, called the Clusters of Opportunity guidebook, to build regional capacity.

Recognize the unique needs of rural regions

A common misperception exists that sector initiatives are difficult to implement in rural settings due to the lack of concentration in any one sector or a high location quotient for any industry. Rural settings can present unique challenges, but they can and do succeed. States can help rural areas understand the scope of their critical industries, bring partners together despite distance, and find ways to connect workers to jobs. Read more about developing rural sectors in Application of Industry Cluster-Based and Sector-Focused Strategies to Rural Economies.

Recognize multi-state regions

Many true labor market regions cross state lines, as well as county or other geo-political boundaries. In these cases, regional partnerships should include multi-state partners. State leadership should be supportive of these cross-state efforts when and where possible.

Decide whether to choose regions, or allow regions to self-select

When funding and supporting local sector initiatives, some states take a more centralized approach by pre-identifying eligible regions; but most states de-centralize the approach by allowing regional partners to identify regions based on factors and concentrations identified in labor market analyses.

Focus on “coalitions of the willing”

Most states do not require regions to develop sector initiatives, but instead use the state workforce agencies and the Governor to advocate for the sector approach. This builds momentum and gets regional stakeholders on board. As regional “coalitions of the willing” have success and provide evidence that their initiatives are effective, other regions begin to consider and develop sector initiatives.