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Understanding regional development and eWork

Step 2 runs in parallel with Step 3, developing a regional profile, as each will inform the other and, together, form the basis for carrying out Step 4, SWOT analysis.

It is necessary to consider both how local/regional development and eWork relocation are implemented and how this is likely to affect your region. It will be on this basis, as well as the SWOT analysis undertaken in Step 4, that a relevant and practical set of goals, objectives and strategies can be created.

Understanding local and regional development

Much has been written about how local or regional development takes place, and much practical experience has of course been gained. In recent years, the OECD has proposed a general reorientation of economic and social policy away from ‘top down’ sectoral instruments towards ‘bottom up’ local and regional development strategies, eg measures such as support for entrepreneurship, developing human capital, spreading innovation and building regional institutions and networks of firms. This approach is based upon ‘sustainable development’, ie development with the objective of maximising human welfare and providing a sound economic, social and environmental base for both present and future generations. The OECD (OECD, 1999) suggests six stages:

1. Create/adjust local development structures — the framework and actors and stakeholders necessary to undertake the local development activity are identified and co-opted (cf. Step 1 in this toolkit)

2. Identify/adjust objectives and strategy — the objectives and strategy of the local development activity are agreed (cf. Steps 2 to 6 in this toolkit)

3. Mobilise local people and agencies to deliver projects — prepare and activate actors and identify specific projects (cf. Step 1 and Step 6 in this toolkit)

4. Select and find funding for projects that meet objectives — identify and allocate funding for appropriate projects and implement (cf. Step 6 and Step 7 in this toolkit)

5. Monitor and evaluate outcomes — on-going evaluation of projects being implemented (cf. Step 7 in this toolkit)

6. Feedback into structures and strategies — ensure project results feed back into overall structures and strategies, so that the process can start again building on the progress made (cf. Step 9 and Step 1 in this toolkit).

A similar regional development process has been found effective by the EU LEDA programme based upon the stages of development of local areas that focus on the following steps, each one requiring a different strategy: (Humphreys, 1996)

1. foundation stage of ‘acquiring the know-how’ of local development. Usually 5 or more years. Efforts should focus on a small number of flagship projects and on public awareness-raising (cf. Steps 1 to 4 in this toolkit)

2. second stage ‘using the know-how’. Usually 5th to 10th year. The established core of people, institutions and infrastructure means that projects are initiated spontaneously, evaluation and targeting are improved and there is more innovation, exporting and inter-firm co-operation (cf. Steps 5 to 8 in this toolkit)

3. stage of ‘self-sustaining development’. Continued action should then concentrate on plugging gaps in service provision, improving SME finance and exploring new opportunities (cf. Step 8, Step 9, and Step 1 in this toolkit).

Understanding eWork

The reference part of this toolkit provides a systematic overview of the experience and processes of eWork and the main research trends.

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© 2002, Institute for Employment Studies