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<br />. <br /> <br />. <br /> <br />. <br /> <br />Economic Development Strategies in a New Economy <br /> <br />Times have changed, and with them so has the underlying economic <br />structure in which we all live. This new economy requires smart thinking by <br />our leadership facilitated by new ways of solving problems and collaborations <br />with sometimes unexpected partners. In the new economy, the ticket to <br />faster and broader income growth is innovation. This economy puts a <br />premium on what the Nobel laureate in economics Douglas North calls <br />"adaptive efficiency," which refers to the ability of institutions to innovate, <br />continuously learn, and productively change, As markets fragment, <br />technology accelerates, and competition comes from unexpccted places, <br />learning, creativity, and adaptation have become the principal sources of <br />competitive advantage in many industries. Enabling constant innovation <br />needs to become the goal of all organizations committed to prospering, <br />Similarly, the goal for metropolitan areas must be to fostcr innovation and <br />adaptation - in infrastructure, in institutions both public and private, and on <br />the part of individuals, <br /> <br />These efforts need to be proactive and designed for the long term, <br />Government, civic, and business leaders need to challenge all economic <br />sectors and institutions, including their own institutions of government, to <br />become cultures of innovation. The consequences for any community that <br />does not respond to this challenge are low productivity, stagnant living <br />standards, and reduced opportunity for its citizens. <br /> <br />Innovation and change mean uncertainty and disruption, But it is becoming <br />increasingly ciear that dynamism is critical to growth. (You can't have <br />upward mobility if no one is on the move.) The more churning in a <br />community in terms of new business start-ups and existing business <br />changes, the faster the community's rate of economic growth, In fact, of all <br />of the indicators in this report, churn is the most strongly correlated with <br /> <br />Strategic Plan for Economic Development Page 5 of 25 <br />Final Draft - Readv for Release Subject to Council Approval and Adoption <br />