RED case study and emerging

volaryorangeManagement

Nov 6, 2013 (3 years and 9 months ago)

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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

Garden
Route



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

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
I
nnovation 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

Smart living & working

Smart mobility

Smart eco
-
systems

Smart
agri
-
production

Smart enterprise

Infrastructure

Rules and Regulation

Knowledge & Innovation

Capabilities

Finances

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

PART 2: EMERGING THEMES

Brainstorm

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
-
national
-
regional 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