Download RED case study and emerging themes

RED case study and emerging
themes
WHAT ECONOMIC ACTIONS ARE
YOU INVOLVED IN? WHAT WORKS
AT LOCAL SCALE? WHAT WORKS AT
REGIONAL SCALE?
Case study 1: LM
• Small town municipality on
the edge of the metro
• Stagnant economy with
services challenges
• DBSA partnership
• Agricultural economic base
(60%) with excellent natural
resource base (7 dams, 15
mountain ranges, country
lifestyle, world heritage site)
• Located between 4 thriving
tourism regions
• Opportunity and gap analysis
identified tourism as a quick
win opportunity
The Cape Country Meander
• Eight towns, 4 tourism associations, 2 brands
• All struggling with visitor numbers, length of stay and spend
• Industry quick to identify that umbrella brand and offering
would add value to every town and member
• Launched a collaborative platform and common brand, The
Cape Country Meander at municipal level
• Developed product offerings
Tools
• Growth:
– Branding and marketing:
Municipality and industry
– Infrastructure – soft (TCCM and
MTB team) and hard (Steam
train): Industry and Municipality
• Development:
– Value chain mapping and
enterprise development
programme : Municipality
– Tourism grants conditions:
Municipality
• Inclusion:
– Jobs
– Track development contractors:
Private sector & NGO
– FET training: Local FET college
Regional Scale
• Tourists , Businesses, surrounding municipal put pressure to move
to regional scale
• Recognition that municipal boundary limiting and need to work
across 3 municipalities – regional platform needed
• Political constraints so needed industry leadership
• Regional scale sets strategy and brokers relationships
• Local scale implements tools
Garden
Route
Case study 2: DM
• Large rural district
outside Nelson Mandela
Bay Metro with low
population densities,
arid declining hinterland
and growing coastal
strip
• 9 local municipalities
• DBSA partnership
• Sluggish agri-economy
• Interesting capacity and
opportunities for
innovation
Facilitating innovation
• Strong focus on innovation systems linking industry,
agriculture and HEI to generate growth and jobs. Key
initiatives included:
– Natural Fibre Cluster – linked to innovative beneficiation of plant
and animal fibres (pineapple, agave, wool)
• Pineapple: (ECDC, DM, DEDAT, CSIR and Industry)
• Agave: from low tech community craft applications to hi-tech natural
fibre composite development for motor and aeronautical industry
(ECDC, CSIR, DEDAT and Industry)
– Renewable energy initiative – as major new opportunity for
farmers
• Policy and regulatory guidelines to manage major wind farm
investments so as to mitigation of negative effects: (District)
• Wind training and research facility (BCEDA, DM, CSIR, HEIs)
• RE value chain exploration linked to automotive industry
manufacturing and assembly strengths: (Industry)
• Related industries opportunities – green energy and electric cars: (HEI,
TIA and Industry)
– Eco-system restoration linked to green jobs and community
asset creation: (Municipalities)
Tools
• Growth:
– Investment promotion
– EE: Formalising the
innovation system
• Development:
– Natural Fibre sector
initiative
– Linking SMMEs to new
markets
• Inclusion:
– Community Trusts linked to
Wind farms
– Green jobs
Regional scale
• Extensive exploration of cross boundary
alliances and extending focus of regional
action
– Regional fibre cluster reconstitutes as provincial
fibre cluster
– Energy Initiative becomes joint NMB and Cacadu
Western Eastern Cape Regional Innovation Forum
• Regional strategy, regional networks, local
action
Case study 3: Province
• Competitiveness
drive
• Political
commitment to
green economy
• Dedicated SPV
• Extensive
knowledge
economy
• High levels of
innovation in smart
systems
Green is Smart framework
Finances
Smart enterprise
Capabilities
Smart agri-production
Knowledge & Innovation
Smart eco-systems
Rules and Regulation
Smart mobility
Infrastructure
Smart living & working
Tools
• Growth:
–
–
–
–
Investment promotion
Infrastructure
Business climate
Brand development
• Development:
– Sector development
– Skills training
– Linking entrepreneurs to investors and
markets
• Inclusion:
– Contractor development
– Green works
– Green Procurement
Regional Scale
• Metropolitan Functional Region – focus of
innovation system and investment attraction
• Western Cape – brand, green works, energy
infrastructure
• Western, Northern, Eastern Cape – renewable
energy economy
• Gauteng – green economic sector finance
• Global – investment attraction
Brainstorm
PART 2: EMERGING THEMES
LEADERSHIP
RED leadership
• Vision, strategy, and agenda setting
• Good understanding of the economic system and your role
• Customer orientation that recognises business and investors and
people as customers
• Good communication and people skills
• An able to broker and lead coalitions of actors from different
sectors
• Collaboration and alignment between different tiers of government
and horizontal alignment
• Strong on facilitating and building networks
• The ability to sequence and balance interventions at different scales
GOOD ADMINISTRATION
Administrative systems
• Efficient machinery to support the
collaboration and partnerships
• Excellent stakeholder management
• Good information and knowledge
management
• Responsiveness
• Good communication
• Good M&E and feedback loops
INNOVATION
Innovation system
•
•
•
•
The market place is important
Partnerships with HEI key
R&D important part of innovation process
Innovation doesn’t always entail giant leaps forward.
Rather it is about gradual step-by-step improvements
• Innovation often means changing something that for
the time being at least works
• Innovation requires a system of support to stimulate
and manage flow of knowledge amongst partners
COLLABORATIVE COMPETITION
Working with competitors
• Identify competitors
• Identify gaps in the value chain
• Identify common agendas with competitors
and how you can support each other to secure
the agglomerations needed, expand the value
chain
• Limit areas of competition
NETWORKS AND LINKAGES
Relating Local to Regional to Global
• RED is all about linkages into an economic
system – HEI, R&D, BA, DFIs, Govt
• Linkages up and down: local-regional-nationalregional cluster-global
• Reviewing the local and regional boundaries
on a regular basis is also important and
shifting these as market needs change
INSTITUTIONAL ARRANGEMENTS
Organising for RED
• No single institutional model
• Depends on who is part of the system and where
capacity and leadership reside?
• Focus on what is the platform for engagement
and collaboration?
For example:
– In TWK: Coalition of business. Model used in North
America where economic councils have been created
to create a ‘top table’ for co-ordination purposes.
– In Cacadu: HEI and EDA similar to Europe where RDA
used to lead and coordinate RED activities
– In Western Cape Government has played the role of
supporting the RED process similar to Asia.
UNDERSTANDING ROLES AND
RESPONSIBILITIES
Role of government in supporting RED
• Understand the private sector – who are the key
players, who are the intermediaries?
• Understand how to work with the private sector
• Create a supportive and responsive environment
• Facilitating partnerships and building relationships and
networks
• Act as a catalyst not driver
• Ensure that there is adequate decision making
authority and funding at the right level to work
effectively with the private sector – no empty promises
Role of private sector in support RED
• Understand their role in the regional economy
• Understand the advantages of collaboration
• Drive the economy: Generate economic activity,
income and jobs
• Share market information and research and work
more with HEI
• Invest in innovation and training
• Partnerships and building relationships and
networks
Role of HEI in supporting RED
•
•
•
•
•
•
•
Understand their role in the RED
Supply education and training
Knowledge management
Undertake R&D linked to real businesses
Commercialisation of innovation
Monitoring, reflection and learning partner
Partnerships and building relationships and
networks