The findings from the research align closely with insights shared during expert presentations and discussions at the recent National Economic Development Conference . They emphasise that economic development initiatives are shaped by distinct local , and at times , sub-regional or regional characteristics , as well as by the entities implementing them . The research underscores a key theme prevalent in all of EDA ' s professional development content : the scope and scale of economic development efforts are influenced by both a community ' s history and its vision for the future . Ultimately , economic development work is as complex and unique as the communities it serves .
Based upon the report , we now have a first-cut estimate of the significant return on investment that economic development delivers , generating nearly four times the value of every dollar spent .
With a multiplier of $ 1 investment into $ 4 of impact , there is a compelling case for greater investment in business attraction , industry development and workforce development .
The report suggests that for every input of around $ 110,000 in strategic economic activities , at least one new job is supported .
The data emerging from this report will support economic development teams to advocate more effectively when proposing initiatives and negotiating funding agreements .
Economic development professionals can now confidently present a compelling case for investment in economic development , with a fourfold return to the community . Likewise , there is an equivalent opportunity cost of not investing in economic development .
The report states that economic development professionals in each level of government directly support the creation of jobs . Each year across Australia ;
• The local government sector creates over 13,700 jobs by supporting local businesses to grow and build local and regional integrated supply chains .
• Economic development professionals in state and territory governments create over 35,000 jobs by working with local governments to enable policy and practice environments that support business attraction and regional investment .
• The federal government sector creates just over 80,000 jobs by driving a fiscal environment and monetary policy which leads to investment attraction and enables local and state governments to respond to the needs of their communities .
It is important to note that these impacts can be further compounded by complementary investment that unlocks private capital and further local economic growth .
The research presents other insights which prove that economic development :
• Increases business confidence to create investment in existing and new businesses .
• Increases business capacity and capability to respond to opportunities for expansion , growth and technological change .
• Expands local and regional supply chains to take advantage of a place ’ s natural strengths , advantages and workforce .
• Builds local and regional economies of scale which develop efficient production and attract further domestic and international investment .
This study emphasised the importance of all levels of government in economic development , both in terms of their ability to influence macro-economic variables which impact on business investment and also in terms of funding economic development activities ( directly or through grants ).
This project is the first phase in EDA ’ s efforts to better understand the impact of Australia ' s economic development sector . It has highlighted that evaluating activities within a theory of change framework is a challenge for economic development professionals . It also emphasises the complexities in determining the suitability of activities for specific contexts and ensuring they are implemented to achieve measurable , meaningful impacts .
EDA will use these insights to further build tools and data sets to improve baseline assessment , target setting and analysis of the outcomes on longer term impacts of economic development activities . EDA acknowledges the need to develop additional metrics to effectively capture the contributions of economic development activities to sustainable , equitable , and place-based economic growth .
This preliminary data illustrates clearly that the most impactful work is placebased . It also shows that Australian economic development professionals are the leading agents in ensuring that growth is sustainable , equitable , and localised .
Thank you to the team at the Institute for Regional Futures for their excellent work on this project . Thank you also to the many EDA members who participated in interviews and consultation .
This report underscores EDA ’ s commitment to demonstrating that economic development is not solely about growth or financial activity ; it is about transformation . It is about people and places .
ABOUT THE AUTHOR
JACQUELINE BRINKMAN Jacqueline Brinkman is an economic development specialist and CEO of Economic Development Australia ( EDA ), the national peak body for economic development .
Jacqueline ’ s leadership of
EDA commenced in 2017 and since that time , EDA ’ s membership has more than tripled and revenue has increased exponentially . Jacqueline was responsible for the development and launch of the highly successful National Economic Development Education and Training Program in 2020 . This program has proven to be a step change in career development for Australian Economic Development profession . Jacqueline is also leading a range of research and advocacy projects with the aim to raise awareness of the impact of the Australian economic development sector .
Through a career spanning 20 + years , Jacqueline is recognised as one of Australia ’ s most experienced industry cluster managers , and has facilitated industry development and investment across a range of sectors . Her advocacy and lobbying has resulted in legislative change at a Local , State and Federal Government level .
Jacqueline has held Chief Executive roles across a range of sectors in QLD and NSW , is an award-winning copy writer and an experienced company director having Board positions on a range of Government bodies and NFP organisations . Jacqueline is a graduate of the Australian Institute of Company Directors ( AICD ).
ECONOMIC DEVELOPMENT JOURNAL VOL 17 NO 3 2024 07