FROM FOREST FLOOR TO INNOVATION HUB
THE UPPER YARRA ' S BLUEPRINT FOR COMMUNITY-LED ECONOMIC TRANSFORMATION
By Anne Blakeway and Julian Guess, Yarra Ranges Council
ABSTRACT When the Victorian Government accelerated the end of commercial native timber harvesting from 2030 to January 2024, eleven regional communities faced an economic cliff edge. Rather than simply managing decline, the Upper Yarra region is reimagining its future through implementing a Local Development Strategy as part of the Forestry Transition Program funded by the Victorian Department of Energy, Environment and Climate Action( DEECA). Through an innovative adaptation of Smart Specialisation Strategy( S3) methodology, partnering with RMIT University and employing a ' Quadruple Helix '( Q4) engagement model, the community has created something remarkable: five thriving Innovation Working Groups that are turning economic disruption into opportunity.
This isn ' t a typical economic development strategy. There are no glossy brochures or top-down mandates. Instead, this community-driven approach is generating tangible projects – from transforming abandoned landfills into solar farms to reimagining heritage buildings as innovation hubs – while building the social capital and collaborative networks that will sustain longterm prosperity.
The Upper Yarra experience offers a replicable blueprint for any region facing substantial socio-economic change, proving that with the right methodology, communities can transform crisis into a catalyst for innovation.
INTRODUCTION: WHEN THE CHAINSAWS FELL SILENT The sound of falling timber has echoed through Victoria ' s mountain forests for over a century. But on January 1, 2024, that changed. What was originally planned as a gradual transition by 2030 came to a halt, leaving eleven regional timber harvesting communities, including the Upper Yarra, to confront a stark reality.
The timber industry was not just an employer- it was woven into community identity. Multigenerational families had worked the forests, local businesses depended on timber workers ' wages, and seasonal harvesting shaped everything from school calendars to pub opening hours. The accelerated closure meant communities had just 8 months to adapt that many had expected to unfold over 7 years.
The psychological impact was profound. Many residents described feeling like the rug had been pulled from under them, with some questioning whether Upper Yarra timber harvesting communities had a viable future at all. Traditional responses might have focused on attracting new industries or accepting gradual decline, but the Local Development Strategy framework explicitly required communities to think differently about economic development.
For many regions, this would have spelled managed decline. Economic consultants would arrive with charts showing inevitable population loss and service reduction. But Yarra Ranges Council choose a different path – one that would transform the Upper Yarra from timber communities to innovation laboratory.
The catalyst was DEECA ' s Local Development Strategy( LDS) grants, designed specifically to support the eleven communities affected by the Forestry Transition Program. With grants of up to $ 500,000 available to help communities plan for their future and create different, sustainable jobs, the Victorian Government provided both the funding framework and the flexibility for communities to chart their own course.
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