Presentation by Horace Mitchell

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Image and Enterprise Local Prosperity in
the Global Networked Economy

• Presentation by Horace Mitchell
• programme director
• European Telework Development (ETD)

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The goal a successful local economy
relatively high earnings
good education systems
people with money to spend
strong tax base
demand for services (local and global)
good provision of public services
plentiful work opportunities
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Local prosperity
relatively high earnings
To what extent are attractive, well paid work
opportunities likely to arise locally as opposed
to elsewhere?
plentiful work opportunities
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We are in a global economy . . .
Finland
UK
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. . . at lots of different levels
person
village
other villages and towns
local region
nearby regions
nation-state
other countries
economic region
other economic regions
world economy
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The networked economy is inevitable because of
its compelling characteristics

• Falling price of computers and telecommunications
• Distance not a barrier to communication
• Delivery of intangible products and services at
  near zero marginal cost
• Marketing and support of tangible products at
  near zero marginal cost
• Supporting infrastructure for tangibles delivery
• Reducing the leverage of corporate muscle
• Increasing the leverage of personal and
  community know how and skills

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We need to broaden our understanding of how a
local economy works

• what kinds of new businesses?
• looking where for customers?
• what new kinds of work?
• for employers located where?
• how to enhances communities?
• and develop the skills base?

Teletrade
Telework
Telecooperation
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Tele-activities TTT
Teletrade
The Enterprise
Telework
Telecooperation
Governments etc
Talented Individuals
Other Enterprises
Core applications for success in the emerging
Global Networked Economy
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But . . .

• Tele-activities dont replace local activities
• Tele-activities provide additional opportunities
  that are less dependent on existing local
  prosperity
• Tele-activities may be locally based and driven,
  or may be the tele equivalent of inward
  investment
• Locally based tele-activities (outbound)
  complement and reinforce locally based trading
  and working and build local entrepreneurship
• Inward tele-activities may (like all inward
  investment) prove ephemeral

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Two kinds of work/trade opportunities

• Locally fixed
• Teleworkable/Teletradeable

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Two kinds of opportunities

• Locally fixed work
• Personal presence is essential to the task(eg
  delivery van driver, household repairs), or
• Personal presence is valued by the customer (eg
  social support, high class restaurants, nursing
  care, live theatre . . .)
• Teleworkable/tradeable work
• Everything else, particularly the newgrowth
  opportunities in both old and new markets

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Local availability of work opportunities
High
High
Relativedemandforlocally fixed work
Relativeaffluenceof localeconomies
Low
Low
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Availability of work opportunities
High
High
Localinnovation andentrepreneurship
Local success in initiating, driving and leading
the new global opportunities and markets
Local understanding of the networked economy
Local access to risk funding and strong local
markets
Low
Low
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Availability of work opportunities
High
High
Propensity for enterprises to locate new jobs
locally
Marketeffectivenessof the local workforce
Low
Low
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Leveraging work/trade opportunities
At any given level of World demand forgoods and
services . . . . . . local conditions and
actions determine local share of the opportunities
High
High
Localinnovation
Relativeaffluenceof localeconomies
and
Local marketeffectivenessof workforce
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Availability of work opportunities
A virtuous circle
High
High
Local added value
Localinnovation
Relativeaffluenceof localeconomies
World demand forgoods and services
and
Local marketeffectivenessof workforces
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Availability of work opportunities
A vicious spiral
Localinnovation
Relativeaffluenceof localeconomies
World demand forgoods and services
and
Local marketeffectivenessof workforces
Distant (external)added value
Low
Low
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The message of this model

• Yes, continue to build local institutions,
  skills, entrepreneurship . . . but ensure that
  the process is strongly informed by understanding
  of the wider opportunities provided by the global
  networked economy - not just in the future, but
  today
• Yes, continue to seek inward investment . . . but
  remember that this will be externally based.
  Only businesses and jobs that are locally
  based/globally focused will self repair as the
  world economy and terms of trade evolve.

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Image and Enterprise

• Self-image of a place, person, community
• Projected image of place, person, community

IMAGE

• Propensity to make things happen
• Propensity to initiate
• Propensity to reach out
• Sensitivity and responsiveness to opportunities

ENTERPRISE
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Image

• Anyone can become a prominent person in the
  global networked economy
• Any place can become a prominent place in the
  global networked economy
• All it takes is
• energy
• commitment
• staying power
• know how
• skills
• . . . and it doesnt require large capital!

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The message for local economic developers

• Its easier to become a successful
  enterprise/entrepreneur if you are based in a
  successful place
• A successful place in the networked economy is
  one that projects itself successfully
• The critical resource for becoming a successful
  place in the networked economy is know-how,
  coupled with human energy and skills
• The know-how is in very short supply at least
  some of the know-how has to be bought in
• Human energy and skills are in plentiful supply -
  especially in places in need of regeneration . .
  . But in places most in need, they may need
  motivating

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Messages for local communities

• The networked economy and the networked society
  present us with new opportunities and new choices
• We are creating the future we can decide what
  kind of future it will be for us
• Where there is uncertainty, confidence is king -
  since the world is full of uncertainty,
  confidence commands attention
• You are now choosing whether to be a prominent
  place in the networked economy or a backwater -
  are you choosing deliberately?
• Will your local economy be one of those that
  makes things happen or will you just hope for
  better things?

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Influencing the future availability of work and
trade opportunities

• We can encourage and assist citizens and
  communities to build a beneficial Local
  Information Society
• - but we cannot do it for them, because
  society is about the behaviour of people as well
  as institutions, and because we wont know how
  people will respond until they do!
• We can encourage and assist citizens and
  communities to capitalise on the transition to
  a Global Networked Economy
• - but we cannot stop or slow the transition,
  because it is a global transition and in the
  hands of individuals everywhere - especially
  entrepreneurs

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Questions on the content or interpretation of
this presentation should please be addressed
to Horace Mitchell Programme Director,
European Telework Development Management
Technology Associates Tile Barn House, Woolton
Hill, Newbury RG20 9UZ UK Tel [phone]
Fax [phone] Email 100136.2412_at_compuserv
e.com European Telework Development is an
initiative supported by the European Commission
DGXIII, promoting wider understanding and use of
telework, teletrade and telecooperation methods.
ETD has activities in all EU countries and active
links with related programmes world wide