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Rhode Island's Flawed Economic Development Strategy

By Rick Nagele
President, Advantage Marketing Information

Transforming Research Into Insight

Advantage Marketing Information
35 Steamboat Avenue - Historic Wickford, RI, USA 02852
(401) 294-6910 | Fax (401) 294-6661
Affiliated Offices: Pasadena, Calif., USA and Niigata City, Japan

Rhode Island's Flawed Economic Development Strategy
As Printed in Providence Business News - January 2008

Rick Nagele, President & Senior Analyst
Advantage Marketing Information

A robust economy is essential to providing Rhode Islanders with a superior quality of life. Similarly, a successful economic development strategy is essential to a robust economy.

In Rhode Island, our economic development strategy is focused on two critical issues. The first, ‘quality of place,’ is about remaining a great place with a unique character. Second, ‘the creative economy,’ is about being the kind of place where creative people want to live and have the tools and networks to succeed.

By all accounts this strategy can be successful. However, an article in a recent issue of the Portland Press Herald (Maine) discussed the city’s focus on the creative economy. That raised the question, how many other places utilize similar strategies?

A quick Google search using ‘creative economy’ and ‘economic development’ resulted in 26,800 hits in 0.23 seconds. Headlines included:

• New York Creative Economy – The Arts and Economic Development in Upstate…

• Commerce, Community & Maine’s economic development…

• The Berkshire creative economy project…

• Advancing Vermont’s creative economy drew 250 participants…

• Mt. Auburn believes the creative economy is a legitimate economic cluster …

• Welcome to the 2007 Conference on the creative economy, an initiative of the Fairfax County Economic Development Authority…

Next Google found 216,000 ‘quality of place’ citations. It seems we’re competing with Northern Ohio, Maine (again), Lincoln (Nebraska), sustainable Pittsburg, etc., etc. etc. It was nice to see that Rhode Island appeared in several top listings.

The point: our strategy is not unique. The same approach with theoretically competitive qualities of place and creativity can be found in many other regions. Competition means that decisions to stay or locate in Rhode Island will not be based on these two criteria alone.

For our strategy to be successful, it will have to be supported by good execution, which means, among other things, cost effective and efficient government; consideration of what works in tax policy, regulatory burdens, and workforce development, not to mention education.

Given our current deficits, some of the highest property taxes in the US, and an educational system referred to recently as ‘factories for failure,’ we are simply not executing well. Other states are soundly beating Rhode Island on these issues.

For our economic development strategy to work we must solve these problems or the economic engine supporting our quality of life will move to other states that have.

Advantage Marketing Information - Main office: 35 Steamboat Avenue - Historic Wickford, RI, USA 02852
Affiliated Offices: Pasadena, Calif., USA and Niigata City, Japan