« And the patent wars continue | Main | Declining US brand? »
September 13, 2007
Building on local intangible assets
One of the themes of this blog has been local economic development using local intangible assets. Economic development practice is slowly moving away from the idea of trying to attract big factories or call centers or research parks to looking more at local strengths and build on those assets. An example I gave earlier was of Winslow Arizona cashing in a brief mention in a classic rock song. Here are a few more stories about towns building on local assets, in very different ways.
The first is the story of Fayetteville Arkansas -- Green Valley In Wal-Mart's Back Yard - washingtonpost.com:
A wave of start-ups developing the technology to help suppliers prove their green credentials has swept into this sleepy college town, half an hour from the company's headquarters in Bentonville. [Entrepreneur Daniel] Sanker is looking at ways to improve fuel efficiency in shipping. Others are developing agricultural-based alternatives to petroleum or studying how electronics can function at higher temperatures, thereby cutting energy use. The University of Arkansas has established the Applied Sustainability Center at the campus here using a $1.5 million grant from Wal-Mart.
It may seem an unlikely place for a green revolution, far from such traditional environmental strongholds as Portland and Seattle, but local officials hope Fayetteville will become to sustainability what Detroit is to the automotive industry and the Silicon Valley is to technology. In fact, they've coined their own term for the vision: Green Valley.
The key is Wal-Mart's new commitment to buy green, which will provide a ready market for green entrepreneurs. Those entrepreneurs want to be near their client - and Fayetteville is cashing in on that desire.
The second story is about Evart, Kentucky -- ATVA Riding -- Harlan County, Evarts, KY:
Do you know how to turn an old coal mine into a GOLD mine?
A very enthusiastic group of local politicians, community leaders and volunteers are planning on doing just that with thousands of acres in Harlan County, Kentucky.
The group of visionaries formed the KY Mountain Trails Development Coalition to develop and manage the trails with thousands of hours of volunteer help from a local ATV club—the Harlan County Ridge Runners— and the Kentucky Mountain Crawlers, a 4x4 club.
Currently, the coalition has agreements signed to allow riding on 7,000 acres, which currently includes an estimated 150 miles of trails.
Another 30,000 acres is close to being incorporated, with additional acreage under consideration. And this is all in Harlan County.
The result is a mini-boom with two RV parks and a set of cabins, a new restaurant and pizza parlor, an expansion of the grocery store, and ATV repair and rental shop (according to the magazine Rural Matters.) That may not sound like much. But for a community of 1100 people with a poverty rate over 20%, this is a big deal.
It is also a great example of how a community can take a negative (old coal mine trails) and turn it in to a positive (tourism), building on local intangibles.
Then there is this story - One Midwest City Picks Condos Over Industry - WSJ.com:
For decades, Waukegan has suffered economically and environmentally. There's been an exodus of manufacturing and industrial jobs from the area, and its lakefront has been contaminated by toxic chemicals. Now the city wants to transform its decaying lakefront, which stretches for about four miles, into a waterside haven of parks, upscale condos and retail stores. But city officials see two longtime employers as blots on their pristine vision: a hulking National Gypsum Co. wallboard plant and a Lafarge SA cement distribution center.
I have mixed feelings about this. Revamping waterfronts is a great way to create better amenities - a key intangible. Just blocks from where I sit, the Anacostia River waterfront in Washington DC is undergoing a major transformation.
But we still need heavy industry - especially if it is doing well in global competition. The history of urban renewal is full of misguided plans to teardown in hopes of creating something more attractive. Too many communities apply a cookie-cutter approach to development (more high prices stores and condos) without looking at how to support those shops (and whether those shops are really what the community needs). I don't know the entire story of Waukegan - the Journal article mentions that its plan was development in conjunction with the Urban Land Institute, who is generally pretty sophisticated on these issues. I don't know if a creative solution is possible here - heavy industry and waterfront dining don't unusually mix that well. But the case does raise the trade offs inherent in such plans and should cause at least some contemplation.
Posted by Ken Jarboe at September 13, 2007 8:07 AM
Trackback Pings
TrackBack URL for this entry:
http://www.athenaalliance.org/mt/mt-tb.cgi/1550