by Cory Fleming, senior technical specialist/program director, ICMA

Economic development means different things to different people. For some, economic development means job creation. For others, it’s growing the local tax base and for still others, it’s supporting new and growing businesses in the community. But all these components can be incorporated into a larger economic development plan that defines clear strategies for how a local government can grow a more productive economic base.

In a series of online focus groups with ICMA members this summer, ICMA and Esri, creator and developer of GIS mapping and analytics software, explored what tools local governments want for growing their community’s economic base. Nearly 30 project advisers discussed how local governments can best respond to the challenges of growing their local economy. 

Table 1:  Local Government Definitions of Economic Development.

(Based on an informal poll of ICMA project advisers.)

One of the themes that resulted from the group discussions was the need for a more nuanced understanding of how a community’s assets and resources stack up against those of other communities. Better data and data analysis, participants explained, would help determine the economic markets where they have a competitive advantage. An economic development model that could merge national data with relevant local data could be used to help guide their community’s future.  

Other findings from the focus groups included:

Finding 1: Generating Awareness of Available Technology.

Focus group participants expressed concern that they don’t know what, if any, applications for supporting local economic development efforts exist. “I don’t even know what to ask for,“ said one participant.

Finding 2: Producing a Fiscal Impact Analysis.

Project advisers indicated they would like a model or tool to generate a fiscal impact analysis for proposed economic development projects. Participants want to be able to discuss the potential benefits of a project, including information on costs, timeline, and the types of revenues expected, before deciding to invest public dollars in a project.

Finding 3: Tracking Data Over Time.

Participants want to be able to track key data over time. “We’re tracking a great deal of information. We track a whole wide range of indicators and put those up on a public dashboard. We look at trend analyses from quarter to quarter and year to year.”

Finding 4: Developing Predictive Capabilities.

The need for predictive capabilities was a reoccurring theme during the groups' discussions. Said one participant, “It seems to me that we’re all wanting something that allows us to take our data and put it into a model, and have it pop out on the other end to know if the claims are true or if they’re not.” Greater predictive capabilities would help identify gaps and opportunities.

Finding 5: Sharing Data.

Many participants expressed the belief that the needed data may be available but not readily accessible because it isn’t owned by local governments. The need for better cooperation and sharing of data among the different levels of government (federal, state and local) is needed.

Finding 6: Working with Residents.

The participants recognized the need to involve their residents in decisions. “We have a well-informed and educated community. I think once we give them the right tools for viewing the data, they’ll generate insights of their own, and will be more than willing to use them. “

Finding 7: Selecting a Platform.

Participants indicated that a desktop application would be the most useful platform and the easiest for local government staff members to use.

Finding 8: Understanding the story the data is telling us.

Participants expressed the lack of resources and knowledge to interpret, understand, and use such currently available data as Standard Industrial Classification (SIC) data. And participants also highlighted the need to understand and use the data available to tell a better story.

Drawing on these findings, ICMA and Esri will develop and pilot test economic development models in Phase 2 of this project. ICMA project advisers will be asked to participate in an online course to explore how data can support policy and decision making and to determine what types of data that local and other data advisers need for implementing different types of economic development models. After the pilot phase is complete, ICMA and Esri will share the new models with ICMA members.

For more information on this project, contact Cory Fleming at cfleming@icma.org.

Related Resources

HQ2 and Local Government Economic Development. This 2018 blog post looks at different approaches to economic development in relation to Amazon's search for a new headquarters.

Marketing Basics for Successful Business Attraction. In another 2018 blog post, the focus is on how to market your community to attach new businesses.  

The Economic Impact of Parks and Recreation. Another blog post from 2018 looks at the economic development impact of the parks and recreation department.