Professional Documents
Culture Documents
Ed Morison
Economic Policy Advisor
Purdue Center for Regional Development
February, 2009
Beginning about 20 years ago, new business models began to emerge based on
networks. In the 1980s, Fortune 500 companies began to build global
manufacturing networks. With improvements in telecommunications and logistics,
supply chain integration emerged as an important strategy. In the 1990s,
companies started connecting with their customers. Customer relations
management emerged a critical strategy. In the mid-1990's, the Internet exploded
with the invention of the Web browser. The interactivity of the Web made pure
network business models, like Google and eBay, possible.
At Purdue University and I-Open, we are developing the models and tools of Open
Source Economic Development to enable economic developers to understand and
accelerate the development of open networks within their regional economies.
(We are also working on a close cousin, Open Source Workforce Development, to
create innovating networks among schools, post-secondary institutions, and
businesses.)
We have identified the five key types of networks that regional economies need to
prosper. We have developed new disciplines of strategic doing to replace the
slower, more expensive practices of strategic planning. (In complex systems like a
regional economy, strategy becomes a matter of following a handful of simple
rules. Strategic doing is a simple, but not easy discipline of following some simple
rules.)
We are also evolving new protocols for making economic development investment
decisions. We are designing new data tools for business cluster and occupational
cluster analysis, so economic developers can understand the deeper systems
driving their economies.
Our overall prosperity within a regional economy depends not only on our
capacity to innovate. We must also be able to move people and resources from
older less competitive business activities to higher growth, higher value
opportunities. Our current workforce development system was not designed to
handle the magnitude of transitions that we currently face. At the same time, our
traditional secondary education system is broken, and we need new models to
leverage our secondary schools to meet the needs of business.
There's a big agenda out there. We are the leaders we have been waiting for.