STATE AND LOCAL ECONOMIC DEVELOPMENT WORKSHOP
An Economic and Community Development Workshop
Spring Semester 2010 3 Credits
Thursdays, 6:00 - 8:30 p. m.
Room 184 Humphrey Center
Team Meetings: Mondays, 11:15 a.m. – 12:30 p.m.
(Time may be changed by project teams)
Capstone Workshop Preparation ? PA 5080
1 Credit ? Required
Friday, January 22 and 29, 8 a.m. – 3:30 p.m.
Instructor: Lee Munnich Co-Instructor: Kris Nelson
Office: 280 Humphrey Center Office: 330 Humphrey Center
Phone: (612) 625-7357 Phone: (612) 625-1020
E-mail: firstname.lastname@example.org E-mail: email@example.com
Office Hours: By appointment
Co-Instructor: L. Burke Murphy
Phone: (763) 607-4945
This capstone workshop course is part of a Regional Competitiveness Project being conducted for
the Twin Cities Regional Council of Mayors and the Minnesota Department of Employment and
Economic Development (DEED). Three teams of graduate students will prepare economic
development strategy reports for the Regional Council of Mayors and two teams will prepare
strategy reports for regional clients in Greater Minnesota. Each strategy report will focus on a
regional industry cluster and consist of three parts: 1) a diagnosis of a regional industry cluster, 2)
a vision for the future, and 3) an action plan in accord with that vision.
While this workshop is designed as a capstone workshop to meet Humphrey Institute
requirements, graduate students from the Carlson School of Management are strongly encouraged
to participate in this workshop. The Regional Council of Mayors and DEED are particularly
interested in drawing from the joint business, planning and public policy talents of the two
graduate programs in developing a regional investment strategy for the Twin Cities and linking
that strategy to Greater Minnesota.
The topic for the Spring 2010 capstone workshop course is “Microeconomics of Competitiveness:
Firms, Clusters, and Economic Development.” This workshop is based on a case-study course developed by Professor Michael Porter and a team of his colleagues at the Harvard Business
School. The course explores the determinants of national and regional competitiveness building
from the perspective of firms, clusters, sub-national units, nations, and groups of neighboring countries. It focuses on the sources of national or regional productivity, which are rooted in the strategies and operating practices of locally based firms, the vitality of clusters, and the quality of the business environment in which competition takes place.
The course examines both advanced and developing economies and addresses competitiveness at multiple levels – nations, sub-national units such as states or provinces, particular cluster, and
neighboring countries. The course is concerned not only with government policy, but also with the roles that firms, industry, associations, universities, and other institutions play in competitiveness. In modern competition, each of these institutions has an important and evolving role in economic development. Moreover, the process of creating and sustaining an economic strategy for a nation, state or region is a daunting challenge. The course explores not only theory and policy but also the organizational structures, institutional structures, and change processes required for sustained improvements in competitiveness.
The course is taught using case studies drawn from all major regions of the world. Part of the purpose of the course is to expose students to some of the most successful countries and regions. In addition to cases, there are readings, a series of video lectures by Michael Porter, and videotaped appearances by guests who are national, regional, or business leaders involved in the cases studied.
A Client-Based Workshop
This workshop is designed to provide a learning opportunity for students on the theory and practice of economic and community development as well as a structured process for meeting client-based workshop requirements for Humphrey Institute MURP, MPP and MPA students. The requirements for a client-based team project vary for each of the three programs. If you have any questions about how this workshop applies in your situation, please consult with your academic advisor.
Project Planning Workshop
All Humphrey Institute students in this course are expected to take a one-credit Capstone Preparation Workshop (PA 5080). This workshop will prepare students in this and other workshops for a client-based team project. The workshop will include training and exercises in team building, project design and management, managing client relationships and expectations, research ethics, the IRB survey approval process, and library resources. Carlson students are encouraged but not required to take the Capstone Preparation Workshop.
The class format will be a workshop with case studies, lectures, guest speakers, and a strong emphasis on teamwork and class participation. Team members will be expected to prepare and present an economic and community development strategy in three parts, to give an oral presentation to a guest jury, and to assess their own performance as a team.
? Class participation and presentations
? Weekly team meetings outside of class
? Team contracts – due January 28 ? Team member evaluations (10%)
Strategy report (70%)
? Diagnosis draft (10%) – due March 4 ? Vision draft (10%) – due March 25 ? Action plan draft (10%) – due April 8 ? Final draft (10%) – due April 22 ? Final report (15%) – due May 4 ? Team presentation (15%) – May 6
Reflective paper (15%) – due May 13
The project team will meet at least once during each week outside of class for the purpose of
discussing the project, making plans, and assigning responsibilities. A regular time for these team
meetings has scheduled from 11:15 a.m. to 12:30 p.m. on Mondays. However, teams may
choose a different time for the weekly meeting if they wish.
2010 Workshop Schedule
The workshop schedule is as follows. Topics will be presented through lectures by the co-
instructors and guest instructors, panel discussions with policy leaders and experts, phone
conferences with national experts, and class discussions. Students should read case studies before
class and be prepared to answer case study questions. Students will be given access to case
studies and questions through the Harvard Business School web site. Case studies may be
changed or shifted during course. Key due dates are show in boldface.
JAN 21 Overview of workshop. Discussion of team project and selection of teams.
Expectations for diagnosis. Using the HBS web site. Location quotients and shift
share analysis. Assignment of project teams.
Making Sense of Clusters – Joe Cortright, Impresa (speakerphone presentation)
? Cortright, Making Sense of Clusters
Students should prepare and send questions to client for January 28 meeting
by January 26.
JAN 22/23 Project Planning Workshop [PA 5920(3)]. One-credit workshop. Required for all
spring semester workshop students
JAN 28* Team contract due.
Meeting with clients.
Competitiveness: Overall Framework
? Finland and Nokia (9-702-427)
? Porter, On Competition Chapters 1,6, 7
FEB 4 Client memorandum of agreement and team work plan due.
Industry Competition and Strategy
? Intel Corporation: 1968-1967 (9-797-137)
? Porter, On Competition Chapters 1, 2, 5
Work plan discussion.
FEB 11 Understanding the value chain
Competing Across Locations & Global Strategy for MNCs
? Volvo Trucks (A): Penetrating the U.S. Market (9-702-418)
? On Competition Chapters 2, 3
FEB 18 Clusters and Cluster Development: Advanced Economies
The Diamond Model: Advanced Economies
? The Japanese Facsimile Industry in1990 (9-391-209)
? Can Japan Compete?
Stakeholder analysis and SWOT Analysis
FEB 25 Mapping industry clusters
? The California Wine Cluster (9-799-124)
? The Australian Wine Cluster: Supplementary Information (9-703-492)
? On Competition Chapter 7
MAR 4 Diagnosis draft due.
Economic Strategy: States and Sub-National Regions
? The State of Connecticut: Strategy for Economic Development (9-703-426)
Rural knowledge clusters
? Munnich, Shrock, and Cook. Rural Knowledge Clusters: The Challenge of
Rural Economic Prosperity.
MAR 11* Clients evaluation of diagnosis.
Institutions for Collaboration Economic
? Asociación Colombiana de Plásticos (Acoplásticos) (9-703-437)
? Centre Suisse d’Electronique et de Microtechnique (CSEM) (9-703-438)
? Institutions for Collaboration: Overview (9-703-436)
Knowledge clusters and entrepreneurship
? Munnich and Brush. Knowledge Clusters and Entrepreneurship as Keys to
Regional Economic Development
*** Spring Break ***
MAR 25 Vision draft due
Advanced Topics I
APR 1 Feedback on vision
Advanced Topics II
? St. Louis (9-704- 492)
APR 8 Action plan draft due
Economic Strategies: Cities
? New York City: Bloomberg's Strategy for Economic Development (9-709-427)
Other perspectives on industry clusters.
? Martin and Sunley, “Deconstructing Clusters”
? Rosenfeld, Just Clusters
APR 15* Clients evaluation of draft industry cluster analysis and state strategy.
Strategy: Advanced Economies
? Singapore Economic Strategy: Independence to 1992
APR 22 Final draft report due.
Clusters in Developing Countries
? Building a Cluster: Electronics and Information Technology in Costa Rica (9-
Economic Strategy: Cross-National Regions
? Central America: Strategy for Economic Integration (9-703-425)
APR 29 Final report due May 4.
The Process of Economic Development/Course Summary
Discussion and feedback on final draft.
Overview and feedback on capstone workshop.
MAY 6* Oral presentations to clients and guest jury (1). 6 to 9:30 p.m.
MAY 13* Oral presentations to clients and guest jury (2). Reflective paper due
* Workshop sessions in which project client is asked to participate.
Michael E. Porter. On Competition. Harvard Business School Press, Boston.1998.
Harvard Business School case studies developed by Michael Porter and his colleagues for their
Microeconomics of Competitiveness course (available through HBS web site for course).
Joseph Cortright. Making Sense of Clusters: Regional Competitiveness and Economic
Development. The Brookings Institution, Washington, D.C., March 2006.
Ron Martin, and Sunley, Peter. “Deconstructing Clusters: Chaotic Concept or Policy Panacea?”
Journal of Economomic Geography 3. Oxford University Press. 2003. pp. 4-35.
Lee W. Munnich, Jr., Schrock, Gregory, and Cook, Karen. Rural Knowledge Clusters: The Challenge of Rural Economic Prosperity. Reviews of Economic Development Literature and
Practice: No. 12. Economic Development Administration, Washington, DC, 2002.
Lee W. Munnich, Jr., and Brush, Paul. Knowledge Clusters and Entrepreneurship as Keys to
Regional Economic Development. Hubert H. Humphrey Institute of Public Affairs, University of
Minnesota, Minneapolis, MN. 2005.
Michael E. Porter. Cluster Mapping Project web site. Institute for Strategy and Competiveness,
Harvard Business School, Cambridge, MA. http://data.isc.hbs.edu/isc/index.jsp
Stuart A. Rosenfeld. Just Clusters: Economic development strategies that reach more people and
places. Regional Technology Strategies Inc., Carrbaro, NC, September 2002.
Students are encouraged to identify other readings related to industry clusters and economic