Integrate economic initiatives

Gov. John Baldacci’s economic development plan presents solid programs for revitalizing Maine’s economy. However, the true economic potential for each of these initiatives will go unrealized if the programs don’t reinforce and leverage one another. Each dollar spent on one program must strengthen not only that program but others as well.

Creating this synergy within the economic development plan will require thoughtful and creative management. Here are a few examples of how integration might work.

1. Many Maine businesses have products and services that are untapped by tourism demand, yet can be easily sold through Internet-based and other distribution channels. The One-Stop Business Initiative, an economic development plan program designed to make Maine’s entire economic delivery assistance system more efficient and user friendly, must work closely with Maine entrepreneurs and established businesses to help them capture direct and indirect tourism revenue. The One-Stop Business Initiative must also work with the Office of Tourism to enable these businesses to prosper in our huge tourism industry.

2. Maine’s tourism marketing efforts must seamlessly blend with those of the One-Stop Business Initiative and business attraction efforts. The Office of Tourism must actively leverage the fact that tourism introduces and endears our state to business decision-makers – the leaders and entrepreneurs with the influence to relocate businesses to Maine. The availability of one-stop business assistance must be an integral element of the tourism message.

3. The efforts of Maine’s Community College and state university systems must harmonize with the governor’s desire to position Maine as a thriving creative economy. Students must clearly see the employment opportunities afforded by the creative economy in Maine, and our higher education system must allow students to experience these opportunities first-hand – through internships, exposure to adjunct professors active in the creative economy, and business leaders.

4. The Economic Development Bond Package can serve a powerful dual purpose in creating an integrated economic development plan. A portion of the funds targeted to specific bond initiatives, such as biomedical research and development, should be directed to a marketing plan that promotes this funding to relevant businesses in other states (with the hope of persuading them to relocate portions of their businesses to be near Maine research hubs). This advertising will bolster Maine’s identity as an innovation center, and can even be a savvy addition to our tourism marketing plan.

5. Maine’s creative economy initiative should be integrated with business assistance programs. Creative economy entrepreneurs, as well as potential creative economy transplants into the state, must have easy access to a business assistance program that gives them immediate immersion and leverage within the creative economy. This goes beyond networking. This calls for referrals and assistance in financing, training and technical assistance that is specifically designed for creative economy businesses.

How can this integration effort be jump-started?

Gov. Baldacci’s aggressive economic development plan requires an “integration champion” charged with maximizing the effectiveness of specific programs by linking and integrating them with other initiatives. Ideally, this person would sit on the steering committees of each program and would be the impetus for partnership efforts across initiatives. This manager would also champion Maine’s new economic identity by ensuring that all development programs speak with a single, strong voice that trumpets our unique strengths.

It’s about economic growth

In their book, “How to Grow When Markets Don’t,” authors Richard Wise and Adrian Slywotsky argue that economic growth is best achieved by shifting focus away from product innovation and toward demand innovation. Any entity, whether a company or a state economy, can grow by mobilizing assets that reflect their history and expertise and their unique access to sources of demand

What does this mean for Maine?

Each program in the governor’s economic development plan must focus on creating demand for our most unique resources and assets, and not on creating more and more new assets where we have no unique economic advantages. For example, while the governor’s proposed bond initiatives rightly concentrate on a strong core of biomedical research, aquaculture and agriculture development, and university R&D, the funding must also provide for specific marketing programs that create demand for these assets – from within the state, from out-of-state, and from around the world. A “build it and they will come” approach is insufficient. Maine’s innovation achievements must be marketed.

In addition, any economic development programs that provide start-up or ongoing assistance to Maine small businesses must help these companies create demand for their products and services. The root cause of most small business failures is due to their failure to create demand. Demand is created by selling to underserved or new segments of customers, or by providing new ways for customers to learn about, buy and use Maine products.

Demand creates cash flow, which enables further investment, which promotes growth and job creation. Demand creation is the base upon which all economic development must be built.

It’s about the “brand”

The Maine brand – like any other brand – must have an identity that speaks with one voice. Students, businesspeople, tourists, artists, farmers, fishermen – and even businesses from away – must be able to see Maine as a state of opportunity and growth. The best way to communicate our identity to this wide array of audiences is to speak with one voice, and to tightly coordinate the meanings and messages of each element of Gov. Baldacci’s economic development plan.

Maine’s new economy must be more than a sum of its parts – it must be a synergistic, integrated and dynamic network. Without an action plan that integrates and markets economic development efforts, the true potential of Maine’s economy will not be realized.

David Vazdauskas is an independent marketing specialist and management consultant who lives in Newcastle.