Intro to Eco Devo Flashcards

Question

What questions does a strategic plan answer?

Answer 1

What are the needs & opportunities? What are the development goals required to meet those needs? What resources are available to meet the needs? What strategies / projects will best utilize the resources to meet goals?

Answer 2

``` Pre-Planning / Organizing the process Assess SWOT Form goals / objectives Identify / Evaluate / Prioritize projects Develop plans of action Implement tasks Monitor and evaluate outcomes Retool, Readjust plan ```

Answer 3

Continuous Process or Cycle

Answer 4

Public Private Civic leaders

Answer 5

A shared vision Agreement Unity

Answer 6

It provides Support, Justification & Validation for the strategic plan It ensures community buy-in & ownership Provides mutual benefit from multiple stakeholders to develop goals, strategies and programs

Answer 7

Time & Money

Answer 8

Monitoring tracks performance or outcomes | Evaluation compares outcomes to benchmarks

Answer 9

``` Promote effective implementation of plan Ensure goals are met Minimize delays through early detection of problems Provide feedback for problem solving Make adjustments to projects ```

Answer 10

Before, During and After - Pre-implementation evaluations assess the allocation of resources and determine baseline info - On-going evaluations measures progress against the goals and provides insights to adjustments - Post-implementation evaluations determine project performance (time, cost, benefits)

Answer 11

Organizational efficiency Economic impact Customer satisfaction Return on Investment

Answer 12

Process of comparing project performance and outcomes to pre-established standards

Answer 13

Positioning

Answer 14

``` Product differentiation (developing attributes that are distinct from other communities) Price competitiveness (lower cost of doing business or value proposition) Market focus (targeting a particular industry, region or audience) ```

Answer 15

Strengths (internal factor subject to change; encourage or enhance eco devo) Weaknesses (internal factor subject to change; obstruct or constrain eco devo) Opportunities (external factor; make competitive advantages possible) Threats (external factor; harm the economy)

Answer 16

Industries that: - match the assets or competitive advantages - align with development goals - have investment / growth potential

Answer 17

Sectoral Analysis - considers industry sectors & identifies industries that best fit the community's capacity & goals Cluster Analysis - considers industries related by business activities either vertically (buyers/suppliers) or horizontally (competing businesses/sharing resources)

Answer 18

``` Access to customers / supplier markets Access to transportation systems Access to business / professional services Shovel ready land available Environmental conditions of land Business climate Financial capital costs Community image Incentives Labor force Level of unionization Quality of Life Regulations (environmental, zoning, employment) Gov't attitude toward business Taxes Telecommunications systems Utility capabilities/rates ```

Answer 19

Attract or retain multinational firms to create jobs and stabilize the tax base in the local community.

Answer 20

Function - Promotion | Goal - To elicit a response from the target audience

Answer 21

1) Developing the message | 2) Conveying the message

Answer 22

1) Advertising - print/electronic media 2) Publicity - news releases, press kits, public speeches 3) Promotional Materials - newsletters, trade exhibits, websites 4) Direct Mail - letters, e-mail, brochures 5) Social Media - interaction via computer/mobile device 6) Personal Selling - trade shows, events, fairs

Answer 23

Goal - to create the greatest # of positive impressions in the target audience. 1) Cost - least to most expensive; budget based 2) Presentation - visualization, credibility, explanation 3) Exposure - reaching the right audience

Answer 24

Outlines a strategy to achieve marketing goals Identifies the specific activities & timeline to achieve the goals Identifies financial resources/staff to support the goals Determines evaluation methods for effectiveness Provides justification for funding

Answer 25

Find the most appropriate site for a business from an economic & operational perspective.

Answer 26

1) Business strategy 2) Operating costs 3) Operating requirements 4) Risk factors

Answer 27

Know existing businesses and SWOT Develop/Maintain website with current/relevant info Prioritize sectors for success Build relationships with site selectors

Answer 28

1) Know the opportunity costs/trade-offs in granting incentives vs. investments in infrastructure, education or other needs 2) Determine performance-based criteria/eligibility standards for granting incentives 3) Develop accountability measures, financial recovery procedures and/or clawbacks in case of failure

Answer 29

Help businesses survive economic difficulties Add new jobs associated with expansion Increase competitiveness in wider marketplace

Answer 30

``` Increase local jobs Increase local property values Increase local tax base Enhance community image Maintain economic health ```

Answer 31

The survival and profitability of utility companies depends on the preservation and growth of industries in their service area.

Answer 32

Better understanding of why businesses located in the community Identify community assets available for businesses Determining which businesses have a competitive advantage and which don't

Answer 33

1 - Serves as an early warning system of concerns and problems of individual companies 2 - Keep aware of company dynamics & economic well-being

Answer 34

1. Brevity (45 min - 1 hour) | 2. Confidentiality

Answer 35

``` Company background Business climate Labor / Training needs Marketing & trade Financing needs Regulatory issues Barriers to growth Satisfaction with public services / facilities Prior utilization / satisfaction with local biz assistance programs ```

Answer 36

Provides a progress update on responses to business climate issues and provides assurance to the company that their concerns are being addressed

Answer 37

``` Declining sales / employment Large non-corporate ownership Recent ownership change Lease of property; expiring lease Other facilities produce the same product / service Negative attitude about the community Unbearable regulatory burdens Union contract expirations Expanding sales / employment Facility / Site expansion plans Obsolete or land-locked facility Location in a problem neighborhood Older product lines / technology Contentious labor-management relationships Lack of export / international focus No succession plans Gradual corporate downsizing over time Relocation of corp office Loss of supplier contracts / relationships ```

Answer 38

Local utility companies and educational institutions have existing marketing programs targeting the same businesses a BRE program focuses on. EDCs can partner with utilities and educational entities to market BRE services available.

Answer 39

Industry clusters develop as a result of specialized amenities & support services available in a regional area and not a single municipality. Coordination should be pursued among the regional EDCs to target industry cluster BRE.

Answer 40

``` Operations Mgmt Marketing/Sales/Export Strategies Financial control systems Workforce training/development Strategic planning/Business plan development ```

Answer 41

Targeted companies Participation standards Defined scope of services Defined service provision

Answer 42

1 - Public $$ invested in upgrading skills in a community will largely remain in the community. 2 - Smaller companies don't have in-house training programs and benefit from a better qualified pool of employees. 3 - A well-trained workforce combined with an effective training program can be a competitive advantage that isn't easily duplicated.

Answer 43

``` Marketing Supporting Industry Clusters Creating Site Opportunities Providing Technical Assistance Developing workforce/training programs Finding new markets Assisting with permitting/licensing ```

Answer 44

For regulatory processes/approvals such as zoning, building code compliance, permitting, parking space requirements, etc.

Answer 45

Development that serves the economy, community and environment. It changes the development debate from growth/no growth to "how and where should new development be accommodated"

Answer 46

Combining multiple land uses (commercial, residential, transit) in a single district & even multiple uses in a single building.

Answer 47

Triple bottom line seeks development benefits from: profits qualify of life environment

Answer 48

``` Open-air shopping Entertainment is complimentary to shopping Smaller than typical malls No anchor department store Located in affluent neighborhoods Offer specialty shopping Main-Street ambiance ```

Answer 49

Allows companies to locate where land/office space are cheapest Contributed to increased suburban and greenfield development Contributed to operations moving overseas to access lower wages / highly skilled labor Increased new jobs in computing, IT, IOT, AI, etc.

Answer 50

Increased environmental awareness Increased attention toward building costs (energy savings Increased costs of non-renewable resources Increased local incentives for green building industry Increased awareness that greener workplaces attract talent Lower operating costs

Answer 51

Build to Suit Greenfield Spec Building Redevelopment/Reuse

Answer 52

Customized structure is built The needs of the end user determine the facility design Long-term financing Difficult to find subsequent users for former customized buildings - especially if they have a special design purpose

Answer 53

Facility built prior to securing a tenant Provides marketing tool for tenants needing space Higher financial risks for community Financing is typically not available for spec buildings unless pre-leased No guarantee in finding an end user

Answer 54

Occurs on larger tracts of previously undeveloped land in rural or suburban areas Provides competitively priced land Fosters job creation Examples: industrial parks, tech parks, commercial development at Interstate interchanges

Answer 55

Takes previously developed property to a higher, more productive use Redevelopment = construction (often with demolition) Reuse = renovation / rehab of existing building Encourages infill rather than sprawl Removes slum/blight Makes use of existing infrastructure

Answer 56

New Development = no or new infrastructure; larger land parcels with need for subdivision; topographical or ecological issues (i.e. wetlands) Redevelopment = existing or older infrastructure; small, fragmented land parcels with need for land assembly; contamination (i.e. brownfields)

Answer 57

1. Predevelopment 2. Market / Financial / Political Feasibility 3. Site / Engineering Analysis 4. Financing 5. Contractor negotiations / Public approvals 6. Construction 7. Marketing 8. Building occupancy / management

Answer 58

Possible sites are considered Building sizes / uses are considered Quick project analysis to determine fatal flaws Site control secured if project appears favorable

Answer 59

Market Feasibility - is there sufficient market demand? Financial Feasibility - is there sufficient ROI? Political Feasibility - will it be publicly approved?

Answer 60

Basis for: Identifying business development opportunities Evaluating ideas / limitations Determining if project will satisfy lenders to provide a loan Forming realistic development plan

Answer 61

What products are appropriate for this market? What will tomorrow's customers demand? What is the appropriate timing / phasing for this project? What is the appropriate quantity / mix of uses for this project given the market? Are there financial considerations the market alone won't bear? How can the project be best-positioned in the competitive marketplace?

Answer 62

1. Subject Site Analysis - location and impact to project 2. Economic / Demographic Analysis - regional forecast & impact on project 3. Competitive Supply Analysis - how will this project compare to other competing projects 4. Demand Analysis - pool of customers & needs of market 5. Development Recommendations - for a specific project

Answer 63

If EDC should provide incentives to a project, and if so, how much Level of investment a project is likely to receive Metrics used to evaluate multiple real estate deals against each other

Answer 64

Residual Land Value - what would a developer pay for the land under my project if it was developed as proposed? Discounted Cash Flow - If the project receives income over time & I build it today, what is the present value of this project, taking into account the cost of borrowing money today & the recognition of income for years to come? (the value of a property based on expected future cash flows) Rates of Return - Difference between $$ spent (cash, equity, debt) and $$ received (sales, leases, profits)

Answer 65

When the net income generated from the sale/rent provides the investor with a return = to the associated risks When there is a favorable relationship b/w $$ spent (cash outflows - capital, operating costs) and the revenue generated from the sale/lease income of the property (cash inflows)

Answer 66

Determines if the public will support a project in a reasonable amount of time. Benchmark for support/opposition

Answer 67

Result in a development plan that can be presented to and discussed with local planning agencies.

Answer 68

``` General property characteristics Natural ground conditions/contamination On-site road issues Off-site infrastructure access Utilities Planning, Transportation, Circulation & Development ```

Answer 69

Provides speed to market Ensures site is immediately ready for development Completes preparatory work in advance of development saving time

Answer 70

It determines what gets built, where, when and by whom

Answer 71

1. Magnitude of required capital is usually greater than the assets of the developer/investor 2. Risky nature of real estate investments; they are long-term and relatively illiquid 3. Unique nature of land and buildings - Land is considered a durable asset; buildings are a depreciable asset

Answer 72

Equity or Debt

Answer 73

When multiple sources of financing are 'stacked' in order to put together enough capital or financing to make a deal viable.

Answer 74

Money loaned to be paid back in fixed installments on a fixed schedule. It reduces the amount of equity and increases the variability of return on equity investment (leverage).

Answer 75

Ownership investment in a project with no schedule for paybacks. It bridges the gap b/w debt financing and the total cost of the project. Subordinate to debt financing.

Answer 76

Setting up joint venture or PPP agreement Final permit approval Financial commitments secured including permanent financing and construction loans Setting up construction contracts Negotiating prelease agreements

Answer 77

Zoning Subdivision Site plan review Building permits

Answer 78

``` Environmental remediation Demolition Infrastructure development Building construction / renovation Tenant improvements Preleasing ```

Answer 79

Pre-construction pricing (discount pricing for those who reserve land/space prior to construction) Advertising Promotion Earned Media (project publicity from the media) Broker relations (RE broker policies, procedures and compensation)

Answer 80

Property Management - marketing, leasing, maintenance of the property; tenant relations & services Asset Management - capital improvements, refinancing, sale of property

Answer 81

Contamination - whether perceived or real

Answer 82

Real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant or contaminant

Answer 83

1. Site assessment and reuse options 2. Know about State VCP's 3. Identify other interested parties 4. Remediation or Exclusion? 5. Preliminary Project Feasibility Analysis 6. Negotiate and Structure the deal 7. Purchase/Sell Contaminated Property 8. Cleanup 9. Monitoring

Answer 84

The developer

Answer 85

Minimize costs subject to state approval Win market acceptance Provide for financial support

Answer 86

The development would not happen but-for the use of the development incentive.

Answer 87

1. Type I - projects for which there exists neither current market support nor the likelihood of future market support to justify the costs. No expectation of cost recovers (i.e. low income housing; qualifies 'but-for') 2. Type II - projects for which current market support is inadequate to justify the development, but for which there exists reasonable probability that if developed, the property will generate revenue to repay costs (i.e. rural industrial parks; qualifies 'but-for') 3. Type III - projects for which the pubic sector controls a property that is uniquely valuable to the developer to generate money or meet an eco-devo objective ( i.e. land downtown for convention center; does not qualify 'but-for')

Answer 88

Public Sector

Answer 89

A balance b/w the rights of individual property owners and the overall public interest. The right of police power and the duty of the public to protect the health, safety and general welfare of its citizens

Answer 90

``` Comprehensive plans Zoning ordinances Subdivision regulations Site Plan reviews Building permits Policy initatives ```

Answer 91

When the following conditions are present: - strong need to redevelop a specific property - political will to withstand developmental risks - agency with expertise and resources to develop the property (It's done through an EDC acquiring property and/or conducting pre-development studies on property it owns)

Answer 92

When: - responding to a specific developer initiative - encouraging the private sector to identify and initiate projects - encouraging development by reducing associated risks - focusing redevelopment on an area rather than a specific site

Answer 93

1. Front-End assistance w/o Offsetting Guarantee - land write-down; typically from federal / state grants or tax increments; affordable housing projects 2. Front-End assistance with Guarantee - includes commitment to pay all or part of the financial assistance provided; low interest loans 3. Performance-Oriented assistance with initial explicit denomination - funds are received only to the extent the development generates them; TIF revenue generated by the project 4. Performance-Oriented assistance w/o formal denomination - does not include formal denominations b/w developer and public sector

Answer 94

To fund working capital or purchase fixed assets.

Answer 95

Start-up Growth Maturity Reorganization or Liquidation

Answer 96

The most liquid assets of a company Current assets - Current liabilities on the balance sheet Used to meet current debt obligations

Answer 97

Longer lived assets such as plant, property or equipment

Answer 98

Their cash out-flows are generally more than in-flows (i.e. they spend more than they make initially) Fixed assets are costly and take time to repay They do not have established banking relationships Rely on personal savings, credit or equity Trade credit from suppliers is generally not available Venture capitalists require a higher ROI Commercial lenders impose stricter financing terms

Answer 99

- Many commercial banks don't provide loans for less than $100K - Many commercial banks don't want to lend for more than 10 years - Insurance companies that are longer-term lenders limit commercial/industrial investments to $1M

Answer 100

Not an ideal solution. Short term financing of long-lived fixed assets is costly because debt payment is not amortized over the life of the asset. If the company can't meet it's obligation, bankruptcy is a risk.

Answer 101

Firms with cyclical or seasonal demand need extra cash to finance buildup of inventory when actual cash sales are low.

Answer 102

Small banks are unfamiliar with international banking transactions Large banks provide financing on larger deals with more experienced companies Perception of risk - greater in export trade due to potential exchange rate losses incurred during currency conversion, political instability or shipping accidents Information gaps on credit worthiness of foreign customers

Answer 103

Investment typically made by banks that must be repaid within a specific time period based on a pre-established schedule. Loan is the most common type

Answer 104

Revolving lines of credit | Term loans

Answer 105

Primary - Business' ability to repay Secondary - Value of collateral assets Lenders tend to finance more established busineses that demonstrate a profitable future

Answer 106

Capital investment that does not obligate the repayment of the investment.

Answer 107

Partial ownership of the venture Expected appreciation of the value of their share Payment of a portion of the earnings / dividends

Answer 108

- To bridge the capital gaps in private sector financing - Leverage private lenders and investors to ensure access to capital is extended to credit-worthy entities not considered good risks in the traditional terms - Invest in ventures where the economic / social benefits outweigh the risk of financing - It should NOT provide financing to clients who qualify for conventional financing to meet their project needs

Answer 109

1. Lower cost of borrowing - subsidize difference b/w market and discount rate thus lowering interest rates 2. Lower risk - guarantee a % of loans against default 3. Provide investment programs - establish lending programs to address special needs 4. Package Loans - helps entities obtain financing 5. Direct lending or investing - use own funds to structure loans 6. Technical assistance - help improve financial management skills, marketing strategies and business planning

Answer 110

Direct Lending - EDC acts as lender for gap financing or to leverage private funding (funding sources can be state/fed gov't, bonds, taxes, investments, pension funds) Revolving Loan Funds - repayment of loans made is recycled into future lending; as loans are repaid, the P & I return to a loan pool to be lent to other businesses Microloan Programs - provide short-term, unsecured loans to businesses w/o credit history or collateral to obtain conventional loans. State Financing Programs - development authorities; venture capital funds; R&D via universities Federal Financing Programs - SBA; EDA. HUD; USDA

Answer 111

Job Creation Counter economic decline in urban areas Fill the gap b/w conventional financing and project financing needs Promote leveraging of funds from private sector

Answer 112

Site | Location

Answer 113

Accessibility

Answer 114

They are unique assets in a fixed location & therefore their value is subject to their surroundings.

Answer 115

What is the topography & shape? How does the site ‘read’ from the road? (Visibility) It it easily accessible? For vehicles, pedestrians, truck, rail, mass transit? What is the lot size? Are utilities & public services adequate?

Answer 116

What businesses are doing well in local neighborhoods? What income brackets characterize local neighborhoods? What’s the regional transportation infrastructure system like? What are the commercial traffic patterns like? Private vehicle patterns? Truck or rail patterns? Is there access to mass transit? Where is the nearest commercial airport? Where are suppliers located? How long does it take to travel to them?

Answer 117

The safety & level of blight contribute to the potential success of a property Distressed neighborhoods might be eligible for funding to eliminate blight

Answer 118

It allows the developer time to conduct a feasibility analysis to determine if the project is viable.

Answer 119

Each entrepreneur has specific assets / oppys as well as have huge gaps in capital or management experience. Entrepreneurs think their ideas are the best and generally don't want to be told what to do. Entrepreneurs have different objectives.

Answer 120

Define objectives Define the target audience Structure program to be consistent with community's economic development mission

Answer 121

Technical Assistance - in the form of business counseling, business plan development, accessing capital, workforce development, understanding taxes / implications, financial management, etc.

Answer 122

Provides information, counsel, encouragement, leads, access to resources. Share experiences, ask questions, discuss issues, seek advice, problem solve

Answer 123

1. Start-up companies: new business ventures where innovation drives the start of the business. 2. Second Stage companies: are past start-up but not mature; have more than 1 or 2 employees but not a full-mgmt team. 3. Gazelles / High-Impact companies: small - med - sized companies that experience rapid stage of expansion (20% growth per year for 4 yrs); often in niche markets

Answer 124

1. Debt financing (loans based on ability to repay and collateral; owner doesn't lose any ownership in business) 2. Equity financing (capital infused in the business typically from venture capitalists or angel investors; doesn't require repayment but owner loses a portion of ownership and control of the business)

Answer 125

Number of people employed OR Annual revenues

Answer 126

- Innovation (both in product and process) - Community Ties (hire local residents; less likely to relocate; participate in community events) - Flexibility (adapt quickly to changes) - Limited capital (Half start with less than $20K)

Answer 127

1. Majority of start-ups fail within the first 18 months of operation 2. Only 40% of start-ups survive the first 5 years; only 10% survive 10 years 3. Majority of small firms offer employees lower wages & fewer benefits

Answer 128

1. Create business idea - ensure business idea & process have been thoroughly vetted 2. Formalize business plan - written business plan, financial plan; fully developed product or service; considered working space & equipment requirements 3. Open business - implements the business plan; assistance with managing cash flow, accounting, monitoring progress & managing inventory 4. Expand operations - expansion plans, hire/fire employees, financial support for growth, space requirements

Answer 129

A mechanism to encourage and support new business through affordable space, shared support services, reduced operating costs, access to services & equipment

Answer 130

How money is generated, how it’s spent, how much cash is available Cash flow statement evaluates the 1st year on a monthly basis & the next 2 years annually

Answer 131

A business’s financial status for an entire fiscal year on 1 page. Assets are positive: working capital, cash from sales, accts rec, inventory, fixed assets Liabilities are negative: Loans, mortgages, accts pay

Answer 132

Territory - Know the business progress / decline; market oppys, business sector representation Problems - issues faced by small businesses; success rates History - of business success, industries & locations Business Climate - census of business’s perspective of the climate helps determine what services to provide

Answer 133

It serves as an overall game plan; It’s a financial, development & sales tool; It forces one to think critically how the product/service creates value & how to get customers to buy it & why

Answer 134

1. Why the customer will buy / use your product 2. Why larger companies won’t copy the product / service 3. Show financial returns & needs 4. Entrepreneur’s knowledge, skills, managerial abilities 5. Define entrepreneur’s goals, needs, interests required to commit to the success of the business

Answer 135

``` Cover EXEC Summary Table of Contents Description of business Marketing strategy Placement Profiles of mgmt team Description of staff positions Overall schedule Role of business in the local community ```

Answer 136

1. Balance sheet 2. Income statement 3. Cash flow statement

Answer 137

Estimated sales - 1st year projections Cost & Expense Forecast - estimates Cost of Sales / Manufacturing - contact suppliers to determine a product cost range Selling, General & Administrative Costs

Answer 138

Determines the exact sales level at which sales cover costs; the venture will neither lose nor make money Calculated by: Fixed Costs/Gross Margin x Variable Costs|

Answer 139

The business’s financial position at a specific point in time It includes assets, liabilities, equity

Answer 140

Detailed account of business activity for the 1st year It includes income, expenses, profitability Profit & Loss Statement

Answer 141

Information about the business’s cash receipts (inflows) & cash payments (outflows) It includes sources & uses of cash Reconciles the net cash flow with the cash category on the balance sheet Cash flows highlight the amount & timing when money will be coming into & going out of the business

Answer 142

It contributes to business creation, expansion through new products/services, increased efficiencies & competitiveness. High-tech industries provide high growth potential and 'spill-over' effects into other economic sectors ( R&D, training, high paying jobs, etc)

Answer 143

1. Presence of research institutions 2. Access to capital 3. Support for entrepreneurial development 4. Foreign Direct Investment (FDI) 5. Educated / Talented workforce 6. State / Local commitment 7. Established technology structure 8. Broadband infrastructure 9. Quality of place

Answer 144

- Developing innovative and valuable ideas will create and sustain a strong tech sector - Convert research into commercial activity - Transfer university-developed technology to start-up companies

Answer 145

False | FDI is a chance to broaden the capabilities of a localized industry cluster.

Answer 146

R&D institutions to educate workforce Strong workforce development program Provide opportunities for business development Offer capital resources Provide specialized services Have strong leadership to support tech development Effective regulatory processes

Answer 147

1. They have highly developed technology infrastructure which includes both physical infrastructure (fiber optic networks, incubators, transportation) and knowledge-based infrastructure (innovative people) 2. Quality of Place to attract / retain high quality workforce

Answer 148

Places that provide diversity in education, culture, recreation that support different types of people in various stages of life.

Answer 149

R&D investment Up-front, higher-risk capital needs Tendency to cluster with related companies Collaborate more than other industries Higher level of international investment in production, outsourcing and subject to global prices & pressures Less formal business structure & shorter product life cycles & planning cycles Employees / Contractors work remote or telecommute Shorter company lifecycles

Answer 150

Dilutive sources assume some equity in the firm thus diluting the owner's share of ownership Non-dilutive sources do not require an equity stake in the firm

Answer 151

To appeal to their particular needs and highlight strengths in your area that will address those needs.

Answer 152

Concentrations of interdependent firms related through their industry activities. Clusters represent critical masses of skill, information, relationships, and infrastructure in a given field.

Answer 153

False Clusters include both collaborators and competitors. (Inter-cluster environment fosters innovation and new business ventures - they tend to be self-generating) The presence of a group of competing companies contributes to the formation of new suppliers, the growth of companies in related fields, the formation of specialized training programs, and the emergence of technological centers of excellence in colleges and universities.

Answer 154

Highlights local industrial relationships, commonalities and identifies ways to encourage synergies of clusters

Answer 155

Vertically - buyers / suppliers | Horizontally - similar businesses that compete or that share common resources

Answer 156

Considers clusters by regional transactions & analyzes inputs rec'd in relation to outputs sold. It reveals the extent to which a change in demand affects local output, income and employment. It identifies industries that best fit the community's resources & environment.

Answer 157

The ability of a community or company to provide a good / service more efficiently that distinguishes them from their competitors. i.e. workforce, value, price, etc.

Answer 158

Enhancing those technology sectors showing growth potential & diversification, will help them become a strong base of the economy.

Answer 159

False | Due to regional amenities and support services, clusters typically develop on a regional basis.

Answer 160

It offers a way to aggregate and project the voice of the cluster industries. Helps express mutual interests, create jobs, expand product development, form new joint ventures, enter new markets and expand economic development efforts

Answer 161

RIS supports the innovation ecosystem by providing: 1. business networking to promote idea/resource sharing 2. technology transfer to protect intellectual property while accommodating commercialization 3. workforce development to match job seekers' skills with the needs of the employer

Answer 162

The exchange or sharing of knowledge, skills, processes, or technologies across different organizations

Answer 163

Data & information Know how / Expertise Right to make, use or sell Embedded technology (in machinery or software)

Answer 164

It encompasses a variety of activities from concept development to product manufacture. When a technological innovation is brought to the marketplace.

Answer 165

1. Technology - push (when an inventor develops an idea, product, service NOT in direct response to a market demand. Inventor must also develop the market) 2. Technology - pull (when an inventor attempts to fulfill an unmet need in an existing market. Inventor has an idea now to meet a particular need)

Answer 166

False | Along with a good product, it takes marketing, sales and business management experience.

Answer 167

Establish and foster Networks! | i.e. incubators, research parks, accelorators, virtual tech networks, informal clubs, philanthropic partnerships)

Answer 168

Where: - in close proximity to universities and medical centers Why: - to gain access to resources needed to commercialize their products - to help transfer technology coming from the univ. - access low cost, highly qualified graduate student workforce

Answer 169

1. innovation friendly space 2. access to technical assistance 3. access to financing

Answer 170

It's a specialized real estate development that clusters technology companies together The purpose is to reduce the timeframe of commercialization by providing an environment where technology is readily developed and brought to the marketplace.

Answer 171

Place and People

Answer 172

Building assets both individually and collectively for the community.

Answer 173

The goods and services desired and purchased outside of the neighborhood should be established within the neighborhood.

Answer 174

Bottom-up development Building coalitions and working relationships across many interests within the neighborhood is more productive and successful

Answer 175

Build capacity for continuous positive change at the local level, in the face of changing economic and political environments with dynamic population shifts

Answer 176

Customize improvement projects and maximize resource efficiency so only the areas in need are targeted. At this level, the needs of residents can be determined appropriately and development projects can be more effective.

Answer 177

They are informal organizations that assemble local citizens to solve problems or share common interests and activities. They can mobilize around an issue to provide perspective, build awareness, identify problems, define common interests/goals and initiate change.

Answer 178

Build on the experience of solving problems, employ proven techniques and harness the commitment and energy for ongoing work in community issues.

Answer 179

1. Create awareness & willingness to address the problem 2. Rebuild trust and commitment to common goals 3. Develop a strategy 4. Choose a course of action 5. Mobilize people and resources to implement

Answer 180

Residents assemble to complain and focus on the problem. | They never develop a purpose or move beyond complaining

Answer 181

Make the process inclusive Convey the mission (Why are we here? What are we seeking to accomplish?) Focus on the people Build trust and working relationships Foster positive dialogue and seek common interests Take incremental steps - small successes; gain the reputation of being action-oriented Set benchmarks (What is to be accomplished?)

Answer 182

Human Capital

Answer 183

Champions - an active participant who is passionate about the cause, has respect from the community, extends vitality to the group and can leverage human capital to make the consensus building process work.

Answer 184

Improve the economic well-being and quality of life within NEIGHBORHOODS by applying strategies of economic development to a confined geographic area Improve the business climate, attract private investment, provide jobs, strengthen the tax base and improve physical appearance and infrastructure

Answer 185

1. Strategic location - proximity to central business district 2. Local market demand - concentrated # of potential customers 3. Integration with regional clusters - access to specialized clusters allowing business formation and competition in downstream products/services 4. Available human resources - access to entrepreneurship

Answer 186

Residents Businesses Workers Visitors

Answer 187

When goods/services are purchased outside of the neighborhood, it decreases the total potential income (buying power) of businesses and potentially residents within the neighborhood.

Answer 188

Gap Analysis compares total buying power against total service and retail expenditures. It identifies strengths and weaknesses in the market by estimating the number of shoppers coming to the community to purchase items.

Answer 189

Micromarket, neighborhood block data with expertise in market analysis for low-income neighborhoods Population count Purchasing power Stability

Answer 190

1. Build strong partnerships - b/w community stakeholders 2. Utilize technology - to organize data sets 3. Organize the data - highlight the positive 4. Focus on key stories - real life from actual stakeholders 5. Democratize data - use many platforms to access data

Answer 191

1. Pre-planning 2. Create vision 3. Assessment of neighborhood - SWOT - Asset mapping - Physical condition inventory - Neighborhood economic base analysis 4. Develop goals/strategies 5. Plan dissemination 6. Project identification 7. Action plans 8. Implementation 9. Monitoring, Evaluating, Implementing 10. Retooling, Adjusting, Implementing 11. Publicizing progress and outcomes

Answer 192

Proactive measures to encourage stakeholders to improve their community beyond minimum standards

Answer 193

Community building Place-oriented Business development Workforce development These strategies are most effective when used together

Answer 194

Social event planning | i.e. farmers markets, outdoor concerts, festivals, fairs

Answer 195

Enhancing the quality of the natural as well as the built environment Creating and maintaining a place where existing residents want to stay Providing an environment that is well-cared for

Answer 196

Providing financial and technical support to neighborhood businesses Assist businesses with challenges caused by lack of financial and technical support

Answer 197

``` Creates jobs Increases the tax base Keeps $$ in the neighborhood Improves the image of the neighborhood Encourages residents to socialize/shop local Improves quality of life Attracts shoppers from outside the community Encourages reuse of vacant buildings ```

Answer 198

Sponsoring apprenticeships, school-to-work and job-training programs targeted to local youth or unemployed persons.

Answer 199

Give a community a distinct competitive advantage in providing a well-trained workforce and effective training programs. Successful programs are not easily duplicated by other communities.

Answer 200

1. Privatization - private sector organizations 2. Regionalization - different towns working together 3. Benchmarking - performance evaluation

Answer 201

Assemble land Access state/federal grants Provide public funding & tax incentives Access to and influence on gov't decision makers ``` Examples: Eminent domain Infrastructure improvements Zoning & regulatory powers SIDs TIF Business incentives - tax and non-tax ```

Answer 202

1. Economic influence limited to political jurisdiction 2. Municipal debt limitations 3. Can't earn a profit; can't lend directly to the private sector 4. Turn-over of elected officials

Answer 203

Non-profit - offer specialized eco-devo services Chambers of Commerce Community Development Corporations (CDCs) Community Development Financial Institutions - focus on financing in low-income areas

Answer 204

Long-term shared commitments b/w the public and private sectors designed to pursue common goals related to the social, political and business environment in a community. Involves collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects.

Answer 205

Greater flexibility to conduct eco-devo activities Can use public resources w/o public limitations Funding from both public & private Can undertake greater risks Formed around specific projects Have more autonomy - not part of gov't structure Can become self-supporting through memberships

Answer 206

1. Unincorporated Committee - ad hoc committee to perform planning, policy development, technical advisory & information dispersal functions (they do NOT directly implement the programs they recommend) 2. Incorporated as a non-profit, tax-exempt corp. and has financial and implementation responsibilities as well as policy, advisory and planning functions.

Answer 207

Succession planning | Employee performance evaluations

Answer 208

Conduct that is beyond reproach and in accordance with the standards of a society, institution or organization. Not always written Upholding higher standards of conduct above simply adhering to the rules or laws

Answer 209

Written Code of Conduct Written Policies and procedures for Investigation - define the consequences for violations Involve Staff in reviewing the code Be a role model - practice what your preach Incentivize ethical behavior - reward good behavior

Answer 210

1. Responsibilities conducted to bring respect to the profession 2. Practice with integrity, honesty and adhere to the trust placed in them 3. Stay free of influence, interest or relationship related to clients activities 4. Represent the community 5. Keep all stakeholders informed 6. Maintain confidentiality 7. Share information with the governing body according to protocol 8. Cooperate with peers 9. Conduct activities with equal opportunity 10. Refrain from sexual harrassment 11. Not exploit disaster impacted areas 12. Abide by principles of IEDC Code

Answer 211

Strengthen the local talent pool of workers to match the needs of employers

Answer 212

True | Not easy to duplicate by competing communities

Answer 213

Local business & industry associations Economic development organizations Community colleges Training centers High schools and vocational schools Community and faith-based organizations Industry associations

Answer 214

Vertical - link different levels of gov't, from Federal to state to local Workforce Investment Boards Horizontal - found at the local level, with WIBs partnering with social service agencies, non-profits, colleges and others

Answer 215

Effective collaboration offers a better chance to compete in a global economy to grow, attract and retain talented workforce. 1. Improved problem solving 2. Consistency & alignment 3. Greater resources 4. Greater accountability 5. Potential to institutionalize desired change

Answer 216

Human capital is vitally important to a cluster. Having a pool of talented and skilled labor, as well as specialized training and education are important for a successful cluster. Promotes the competitiveness of industries. Advances the employment of the workers. Solutions for workforce issues can be customized by employers in a cluster.

Answer 217

Employees - increase their job oppys, increase wages, increase job retention and enhance self-esteem Employers - develop a skilled workforce, increase productivity, increase profits, reduce employee turnover and grow the company

Answer 218

Reform WIA (Workforce Investment Act) Provide a framework for a national workforce preparation and employment system to meet the needs of both employers and employees. Give flexibility and encourage collaboration b/w workforce and eco-devo organizations.

Answer 219

1. Package workforce strategies to meet employers' and employees' needs 2. Coordinate or provide financial resources 3. Provide current information 4. Anticipate labor market and economic trends 5. Promote employer participation 6. Connect employers to resources to meet needs 7. Gain public recognition for employers 8. Deliver quick responses for transitioning laid-off workers to new occupations/industries

Answer 220

Workforce programs target individuals; Economic development programs target businesses Different operational contexts and cultures Different funding streams, reporting requirements, performance measures Limited understanding of each other's work Limited capacity to meet objectives

Answer 221

1. Mitigation 2. Preparedness 3. Response 4. Recovery

Answer 222

Steps to reduce risk and vulnerability to disaster impacts. It builds resiliency into the community. i.e. changing building codes, revised zoning, strengthening public infrastructure

Answer 223

Understanding the impacts of a disaster and how education, outreach and training can build the capacity to respond. It includes pre-disaster strategic planning & business continuity training

Answer 224

Responding to the immediate threats caused by the disaster. i.e. saving lives, meeting humanitarian needs, cleanup, damage assessment, resource distribution

Answer 225

1. Triage efforts deal with the most pressing issues. 2. Business re-entry into the economy begins (Initial issues include access to sites, preliminary damage assessment, communication with staff; Ongoing issues include access to capital, repairs, diminished customer base). In this phase the long term health of a business community is saved or lost! 3. Business Recovery Centers set up to provide resources (technical assistance, bank officers) 4. Federal resources start to arrive (HUD, SBA, EDA, USDA); temporary housing goes up; planning begins for reconstruction of damaged infrastructure and buildings

Answer 226

Restoration of a disaster's impact on a community. Development and Implementation of a disaster economic recovery plan.

Answer 227

1. Governor submits written request to President through FEMA 2. Request certifies combined local & state resources are insufficient to respond and recover 3. FEMA reviews for disaster severity and impact 4. FEMA provides report to President 5. President makes a decision

Answer 228

Open up federal assistance programs, resources and funding.

Answer 229

NDRF provides guidance on how LONG-TERM federal disaster recovery assistance will be delivered. How federal agencies will work together. Different from NRF in that NRF is for short-term recovery efforts an NDRF is for long-term recovery efforts.

Answer 230

Mission: Integrate the expertise of the Fed. Gov't to help public and private sectors sustain and/or rebuild businesses and employment; develop economic oppys that result in sustainable and resilient communities after large scale disasters. Purpose: Support State & local programs that address economic consequences of a disaster so communities become self-sustaining quickly

Answer 231

1. Establish workforce development initiatives that create jobs. 2. Assist in economic development plans to build recovery and resilience 3. Establish entrepreneurial and business development initiatives 4. Identify strategies to adapt to changing market conditions (reopening existing business) 5. Pursue initiatives to employ workers 6. Develop mgmt plans to ensure the most effective use of federal funds

Answer 232

Step 1 - Engage the business community & establish economic recovery team Step 2 - Arrange business financing & identify sources of capital & technical assistance available after a disaster Step 3 - Organize the business continuity plan (alternative office location; emerg. contact info; offsite database mgmt) Step 4 - Identify redevelopment priorities w/ key stakeholders Step 5 - Plan for resiliency in workforce (temp housing; retention training; live in close proximity to work during response/recovery)

Answer 233

False A single spokesperson should take the lead - preferably from the lead EDO Speaking with ONE voice helps avoid delays, confusion and disputes

Answer 234

Communication b/w local gov't and businesses Communication b/w EDO, chamber and businesses Public relations and community image Potential conflicts b/w stakeholders

Answer 235

False. The community should still seek an independent economic impact assessment. The study considers both physical & economic damage. The study provides intelligence and supports any request for Congress to appropriate funds. It should be conducted asap after the event.

Answer 236

Cumulative effects are the result of distress from successive natural disasters in a region along with the economic recession.

Answer 237

Working capital to meet payroll Replace damaged inventory / equipment Operational costs Retrain workforce Reorient products or services

Answer 238

Identify sources of gap financing Help secure gap financing for working capital until other sources can be secured Establish a revolving loan fund

Answer 239

Provides a guide to reevaluate economic objectives in light of vulnerabilities to disasters and establish action steps toward long-term recovery

Answer 240

Lack of working capital Being under-insured Damaged inventory / property Limited workforce options Diminished customer base

Answer 241

Serves as a 1-stop shop for local, state, federal resources

Answer 242

New investment and trade broadens markets & increases stability and resiliency New investment brings innovation which strengthens and grows existing industries Increased competition drives growth and employment

Answer 243

The process of foreign capital flowing into a community, usually through a business in one country having a controlling ownership of an entity based in another country.

Answer 244

The sale of goods or services produced in one country to consumers in another country

Answer 245

FDI is focused on attracting large firms. Exports involve intimate knowledge of small to medium firms. FDI programs are targeted outward to foreign firms. Exports require knowledge of local firms prepared to launch into new markets.

Answer 246

Knowledge of foreign business cultures, regulations and trade barriers.

Answer 247

1. Expands the economic base of the community 2. Communities are less impacted by fluctuation of local economies 3. Communities are more resilient 4. See more innovation and business spinoffs

Answer 248

Economic Base Theory assumes that export firms have higher job multipliers and the increase in demand from outside markets will create more jobs in the local non-export sector. FDI and exporting grow the economic base by attracting new investment funds into the local economy and creating new products to sell outside of the local economy. FDI supports growing industries, while developing exports creates new wealth in the community. Both increase or maintain employment, since jobs are retained or expanded with the attraction, retention and growth of new firms or existing firms that export.

Answer 249

Catalytic. For example new investments bring new technology, management, processing making a business more efficient. New spin-off firms will adopt these to become more efficient. Backward technology transfer happens when the foreign firm seeks local suppliers.

Answer 250

1. Create foreign exposure, international ties and potential new markets. 2. Increase innovation and technology transfer. 3. Advances the marketing efforts and creates potential for additional investment.

Answer 251

When a company invests enough that it owns a controlling state in the foreign enterprise.

Answer 252

Horizontally (expansion of business abroad) Vertically (firm adds business functions on either side of the value chain outside of its home country) Conglomerate (investment in unrelated business aboard)

Answer 253

Branch operations (extension of foreign company) Subsidiaries (separate legal entity) (most common) Joint ventures (2 + firms temporarily join for specific purpose) Individual entrepreneurs

Answer 254

Accurate and realistic analysis of cluster developments allows for targeted marketing to foreign markets aligned with those industries. Analysis provides data that overseas investors look for. Foreign firms are more likely to establish firms in clusters with similar firms.

Answer 255

Marketer Ambassador Organizer Technical Assistance

Answer 256

Providing support and assistance after a foreign firm is operational, can strengthen foreign investor relationships by creating a favorable business & operating environment and preventing business failure or relocation.

Answer 257

1. Direct effect - port services & transportation 2. Indirect effect - import/export activity and benefits 3. Induced effect - benefits from increased activity around the port

Answer 258

1. They've invested in before 2. Their competitors have invested in 3. Major customers or suppliers are located 4. Appear in location attractiveness rankings 5. Have positive reports in business / media 6. Have visited on family trips 7. Have family in

Answer 259

Relationships

Answer 260

1. Promotion of FDI by targeting foreign investors 2. Coordination at state / local level to improve and implement FDI strategies 3. One stop shop for resources 4. Source for finding FDI project funding

Answer 261

Increase in trade agreements Trade promotion / facilitation Greater production and consumption of products in lesser developed countries Cheaper transportation / communications costs Innovation and deregulation in financial markets Trade opening in previously closed markets (China, India and the Soviet Union)

Answer 262

Merchandise (goods) - tangible, physical products; majority of global trade Services - consulting; call centers; tourism

Answer 263

1. Access new customers 2. Enter new markets 3. Mitigate risks 4. Moderate seasonal fluctuations 5. Keep up with competition 6. Encourage innovation

Answer 264

By exporting, companies gain access to technology and know-how only available overseas. A firm that overcomes the challenges of exporting, may build its capacity to overcome other challenges and lead to innovation in other business endeavors.

Answer 265

It means a company has the following: - financial security - market-ready product/service - available time, capital, staff resources - commitment from managers - ability to fill orders quickly - awareness of the culture abroad - experience in domestic marketing (market analysis, developing distribution channels, customer service) - are export competitive - meaning the product/service is attractive to the international market

Answer 266

1. Create an international business plan (target market; strategies; action plans) 2. Select Market/Country and Enter that Market (considering risk and control factors) 3. Production (modifications to meet consumer/health/climate/packaging demands) 4. Shipping (consider use of freight forwarding company) 5. Payment (considering various forms and risks)

Answer 267

1. develop international trade policy (eliminate trade barriers; unfair trading practices; make US products more competitive) 2. undertakes export promotion activities (export assistance; market development; financing; insurance; advocacy)

Answer 268

Tariffs intend to protect industries from international competition. Trade Agreements establishes the terms of trade and facilitates trade b/w countries.

Answer 269

Distribution of trade related info Foreign country market research Counseling Business matchmaking services (trade missions & reverse trade missions)

Answer 270

The commercial and political risks of exporting deter private financial institutions from participating in export business ventures w/o gov't guarantees. Private institutions are limited by conventional banking practices; export financing often outpaces maturity limitations.

Answer 271

1) Develop export awareness - programs, assistance, benefits 2) Develop export network - which agencies provide what services 3) Facilitate info exchange - broker b/w sources of assistance and firms requiring them