Regional Innovation Policy Essay Example | Topics and Well Written Essays - 2000 words

Regional Innovation Policy - Essay Example Any regional initiative must evolve from a partnership of business, governments, non-profits and education/training institutions. In the Cleveland area, a partnership in North-eastern Ohio undertook a project to identify industry "clusters" within the region that were competitive in the global economy. The project, the Northeast Ohio Regional Economic Development Strategies Initiative, is a partnership of the Akron Regional Development Board or ARDB, Cleveland Tomorrow (a committee of the CEO's of the region's largest companies), and the Greater Cleveland Growth Association or GCGA (the Chamber of Commerce for the City of Cleveland). NOREDSI's goal was to promote industrial clusters in the region, so as to become more globally competitive. This initiative sought to generate a bottom-up, private sector program in which interrelated private firms within an identifiable "cluster" could work together to identify and resolve common needs and concerns. This research identified six industry clusters (metalworking, plastic products and chemicals, motor vehicles and equipment, insurance, biomedical products, and instruments & controls) that were relatively competitive or had competitive advantages in the region. In a series of cluster forums with these industries, private sector participants identified six main issues as barriers to retaining regional competitive advantages. They were: workforce/education; technology/R&D; entrepreneurship; regulatory/tax policies; quality of life; and, infrastructure. Unfortunately for the Cleveland area, the need for human capital development appears to be especially great if its major industries are not to wither. If a region is attempting to be globally competitive, a well-trained workforce is essential to increasing the levels of productivity. One of the public sector's most vital economic development initiatives, first, is to reach consensus with regional industries on the skill sets needed by firms and, then, to adopt policies ensuring that students can attain them in all districts throughout the region. Another very important area is constituted by the services that state and local governments provide to businesses directly. These include promoting entrepreneurial skills and technological upgrading, providing an advanced physical infrastructure, and helping businesses through tax and regulatory relief. Finally, state governments should develop and encourage taxing policies, which benefit regions. The most commonly used example of tax policy designed to enhance the economic development benefits to a region is Minnesota's shared tax base. Put simply, economic benefits (e.g., taxes) generated by a firm's location in a city in the region accrue to all cities in the region. The regional level may be important for firms attempting to achieve global competitiveness. The question arises as to what strategies local communities can commence, and what policies local or state governments can initiate, in order to raise the innovativeness and competitiveness of regional firms. Regional innovation policy and its relationship with the regio