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Diversifying and Developing Beyond a Tourist Based Economy

Diversifying and Developing Beyond a Tourist Based Economy. Professor Edward J Blakely University of Sydney Planning Research Centre. Blue Mountains. Moving from natural resources and tourism to a new economic base. Challenges Fragile Environment Age Structure

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Diversifying and Developing Beyond a Tourist Based Economy

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  1. Diversifying and Developing Beyond a Tourist Based Economy • Professor Edward J Blakely • University of Sydney • Planning Research Centre

  2. Blue Mountains

  3. Moving from natural resources and tourism to a new economic base • Challenges • Fragile Environment • Age Structure • Government Stricture and Structure • Narrow economic options • Connectivity • Asset Assembly

  4. Competitive Ingredients

  5. Opportunities for Transformation • 2.Assets • Quality of Life • Visitor Attraction • Special Assets-water, nature • Incubator capacity • Social Capital • Community Character

  6. The New Dimensions for Competitive Cities

  7. Moving From Tourism • Creativity Centered-not product centered • Design based over development based • Human Capacity over power and energy • Natural Resources as sustainable base • Place and critical vs incidental • Place creates the economy vs economy designed to fit the economy • Agglomeration of clusters vs clusters as base

  8. Ingredients Recipes Results • Intellectual capital • Human capital • Financial capital • New ideas • Entrepreneurs • Networks • Productivity • Prosperity • Cluster vitality New Economic Development Theory

  9. Shifting Industries Low cost Knowledge Quantity Quality Stability Speed Capital equipment Flexibility Control Networks

  10. New Approach Based on Community Capital • Interactive—doesn’t occur in a straight line. • Group creativity—not dependent on a few. • Tacit knowledge—depends on “know-how.” • Networks—ideas flow more freely. • Competition/collaboration—both are needed.

  11. Generating vs Attracting • Skill and Directions inventory • Knowledge led. • Marshalling and combining assets. • Location is still important as the economic venue

  12. Local Assets

  13. Building the Post Tourism Base • Lifestyle Dimension. • Comparative Advantages • Creative Capital • Institutional form and base • Strategic linkages with other places for markets or assets • Nimble

  14. Quality of Life

  15. Live Work

  16. Framework for the Innovation Process

  17. Regional Leadership Makes the Difference in Innovative Regions • Build fundamental assets. • Connect entrepreneurs to assets. • Promote a culture of innovation. • Make quality of life an asset.

  18. Human Capital Techno-Infrastructure Nodes &Catalyst

  19. Regional Leadership Makes the Difference in Innovative Regions • Talent • Technology • Capital • Supportive Infrastructure Transportation Housing Advanced telecommunications

  20. Cornerstones of Regional Innovation

  21. Economy Community The Economic Community

  22. The Innovation Economy Values • Economic Regions • Distinctive Quality of Life • Vital Centers • Choice for Living and Working • Speed and Adaptability • The Natural Environment

  23. Growing Sectors • Publications • Communications • Higher Education and Conferences • Theatre and Arts • Rehabilitation • Health • Research “think tank” • Environment as an industry

  24. Innovation Economy Values Economic Regions • The shift to a new economy, and the changing nature of work, place a premium on regions as important places. • Geography is important to clusters because firms and people gain from being in the same place. • Clusters gain their power through the force of face-to-face creative collaboration.

  25. Innovation Economy Values Distinctive Quality of Life • The new economy values quality of life more than the old economy, because it values people more than the old economy. • Livability and quality concerns are only becoming more important with economic change.

  26. New Realities 1. Technology is a given 2. Globalism is here to stay 3. Knowledge builds wealth 4. There’s no such thing as a smooth ride 5. Competition is relentless 6. Alliances are the way to get things done 7. People are the key to success 8. Place matters

  27. Next Wave May be a Convergence 1990s Convergence Next Convergence INFO HARDWARE ?Revolution InternetRevolution SOFTWARE BIO MEDIA NANO

  28. Examples of Convergence

  29. Preparing for the Next Waves: State and Regional Responses • Do leaders understand the opportunity? • What must we do to ensure it happens here? • What are the requirements? • How can local people and communities benefit? • Can we avoid some of the pitfalls of past waves?

  30. Capacity Resource

  31. New Infrastructure Required for Knowledge Based vs Machine Based Community • Place Creating and Generating Infrastructure • Human Capital Building Infrastructure • Tele-mobility Infrastructure • Social Capital Infrastructure • New Governance Infrastructure

  32. Understanding Brain Pool The region needs to retain 20 - 34 year old population

  33. Strong and Weak Performing SLAs 1.12 1.1 Sydney Remainder Sydney Inner 1.08 1.06 Hunter's Hill Penrith Mosman Taxable income location quotient (1991 to 2001) 1.04 Paramatta South Sydney Lane Cove 1.02 1 Fair Field Baulkham Hills 0.98 Camden Cessnock Black Town SE 0.96 0.034 0.044 0.054 0.064 0.074 Specialisation index, 1991 Chart- …..Typology of SLAs in Sydney GMR

  34. FIGURE: HOW INDUSTRY AGGLOMERATION AFFECTS SLA TAXABLE INCOME AND SLA POPULATION •  • Increases number of industries in SLA; and / or • More large employer firms inSLA •  • Reduces space for residential services in SLA; and or • Reduces attractiveness of SLA as a place ofresidence •  • Increases number of jobs in SLA; and or • Increases average income earned and wealth level in SLA •  • May increase number of people living in SLA closer to jobs; and/ or • May increase commuting into SLA; • Higher out-migration from SLA  Hypothesised net impact on SLA taxable income POSITIVE  Hypothesised net impact on resident population NEGATIVE

  35. Typology of SLAs : Strongly and Weakly Performing SLAs

  36. cont - Typology of SLAs : Strongly and Weakly Performing SLAs

  37. cont - Typology of SLAs : Strongly and Weakly Performing SLAs

  38. cont - Typology of SLAs : Strongly and Weakly Performing SLAs

  39. Blue Mountains Opportunities • Printing and Publishing • Holistic Health • Professional Education • Visual and Performing Arts • Transit Hub • Creative Incubator • Software Development (health and education) • Natural Resource Management

  40. Market Demographics • Re-use of existing space for the New Economy • Existing Strip Shopping areas • Re-examination of roles and hierarchies of centres • Role of New populations in creating and sustaining new economic and commercial activities

  41. Building On What We Have • Existing building framework—not more building—

  42. Housing for the future

  43. Mobilecommunity---Community owned and operated wireless networks

  44. Software Development Knowledge Space Live-work Space Work-Communi-space

  45. Professional Education

  46. Holistic Health • Social Institution Building as critical development component • Health Living Centres • Non Western Health Schools • Adult Continuing Health Learning • Health Publishing and Libraries

  47. Small Publishing and Writer Centre

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