“ In times of adversity and disillusionment , economic development professionals can be trailblazers helping communities to take charge of their own prospects for a socially vibrant and economically prosperous future .”
Productivity , put simply , measures the growth in output of goods and services against the growth of inputs , mainly capital and labour . More specifically , productivity drivers are technological advances , improved ways of running businesses and improvements in human capital , namely rising education and skills of the workforce and their competence in managing internal and external relationships and flows of knowledge .
These productivity drivers accord with the broad scope of innovation in enterprises outlined earlier .
INNOVATION AND THE ‘ ECONOMICS OF BELONGING ’ For most people , innovation is not something that affects them . Innovation is seen as a world that belongs to scientists , nerds and celebrity entrepreneurs . This is a blind spot to be addressed if local communities are to own and benefit from innovation .
Economic development professionals must demonstrate that innovation matters to the aspirations and daily lives of ordinary people .
The bridge is making the case for the importance of essential workers and the everyday economy to national prosperity , and demonstrating the impact of innovation on social wellbeing and quality of life .
Attention to the smooth operation of the everyday economy and essential work is crucial , as the pandemic has shown . Essential work includes health and aged care , transport and logistics , food distribution and retail , utilities maintenance , teaching , child care and the like .
The everyday economy describes sectors that are immobile and relatively protected from competition , but that provide the services , production , consumption and social goods that sustain our daily lives . ( Reeves , Tomaney and Williams , 2019 ).
The activities of the everyday economy include lowly paid , but highly necessary , caring and learning functions . These are often not captured in official statistics , but they are central to human connections and social ties that are essential for a sense of belonging , resilience , and engagement in communities . As such , they not only contribute to positive economic outcomes , but impact on social cohesion and wellbeing .
Strengthening the performance of the everyday economy is an innovation strategy because it unlocks the untapped potential of communities . This has been referred to as the ‘ economics of belonging ’, with policies aimed at addressing inequalities and ensuring that no one is left behind . ( Sandbu , 2020 ).
This thinking opens up new horizons for more widespread innovation in communities .
Examples are civic innovation programs that empower ordinary residents to take action on imaginative ideas to improve economic and social conditions in their own neighbourhoods . See the work of the
Centre for Civic Innovation and Burkett ( 2021 ) on Griffith University ’ s Yunus Centre .
Community wealth-building initiatives are another example , such as the work of the UK Centre for Local Economic Strategies . This Centre explicitly seeks to counter disadvantage by redefining economic development strategies to focus on local ownership of assets and wealth that stays in local communities . ( CLES , 2022 ).
ECONOMIC DEVELOPMENT PROFESSIONALS AS CHANGE AGENTS The objective is innovation for all . The innovation insights outlined here provide guidance for economic development professionals on how best to help communities reclaim innovation for a brighter future .
There are a variety of dimensions of innovation ; different innovation management approaches ; and multiple actors and stakeholders , including businesses , researchers , technologists , scientists , entrepreneurs , public policymakers , and community leaders .
The significance of this for economic development action is that it offers multiple different opportunities to design and implement innovation strategies , tailored to the particular needs and circumstances of local communities .
There is potential for all communities , no matter how distressed , to succeed as innovation locations , with high quality businesses and jobs , good living standards
ECONOMIC DEVELOPMENT JOURNAL VOL 15 NO 2 2022 09