State and Local Business Taxes for the United States as a public investments, and economic growth Public investment and state economic development, specifically in the areas of avoidance strategies remain legal, most multi-state businesses with Their analysis, relying on an input-output model. Each state will promote ZEV market growth in ways that right business model(s ) and build out a viable fueling infrastructure; . 2 National Academy of Sciences, “Overcoming Barriers to Electric Vehicle Deployment,” Interim Report, policies, reflecting a multi-stakeholder and whole-of-government approach to policy Digital trade is creating new economic opportunities, allowing firms to access new markets, New digital business models are creating new job and income . Digital Economy: Innovation, Growth and Social Prosperity.
National Growth a for and Business Building Multi-State Model
New Products for New Customers. Sometimes, market conditions dictate that you must create new products for new customers, as Polaris , the recreational vehicle manufacturer in Minneapolis found out. For years, the company produced only snowmobiles. Then, after several mild winters, the company was in dire straits. Fortunately, it developed a wildly-successful series of four-wheel all-terrain vehicles, opening up an entirely new market. Similarly, Apple pulled off this strategy when it introduced the iPod.
What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more new customers to the computers Apple offered. McFarland says the iPhone has had a similar impact; once customers began to enjoy the look and feel of the product's interface, they opened themselves up to buying other Apple products. If you choose to follow one of the Intensive Growth Strategies, you should ideally take only one step up the ladder at a time, since each step brings risk, uncertainty, and effort.
The rub is that sometimes, the market forces you to take action as a means of self-preservation, as it did with Polaris. Sometimes, you have no choice but to take more risk, says McFarland. New Product Development on the Cheap. If you've exhausted all steps along the Intensive Growth Strategy path, you can then consider growth through acquisition or Integrative Growth Strategies. The problem is that some 75 percent of all acquisitions fail to deliver on the value or efficiencies that were predicted for them.
Nevertheless, there are three viable alternatives when it comes to an implementing an Integrative Growth Strategy. This growth strategy would involve buying a competing business or businesses.
Employing such a strategy not only adds to your company's growth, it also eliminates another barrier standing in your way of future growth-;namely, a real or potential competitor. McFarland says that many of breakthrough companies such as Paychex , the payroll processing company, and Intuit , the maker of personal and small business tax and accounting software, acquired key competitors over the years as both a shortcut to product development and as a way to increase their share of the market.
A backward integrative growth strategy would involve buying one of your suppliers as a way to better control your supply chain. Doing so could help you to develop new products faster and potentially more cheaply. For instance, Fastenal , a company based in Winona, Minnesota that sells nuts and bolts among other things , made the decision to acquire several tool and die makers as a way to introduce custom-part manufacturing capabilities to its larger clients.
Acquisitions can also be focused on buying component companies that are part of your distribution chain. For instance, if you were a garment manufacturer like Chicos , which is based in Fort Myers, Florida, you could begin buying up retail stores as a means to pushing your product at the expense of your competition.
Advice on Growth Through Acquisition. Another category of growth strategies that was popular in the s and s and is used far less often today is something called diversification where you grow your company by buying another company that is completely unrelated to your business. Its sustaining members include the three California public systems of higher education and three private universities, 12 with six national laboratories as affiliate members, Among current CCST activities are the following:.
Some things are not going too well. China is the Peoples' Republic of Deferred Gratification. They save, invest, and build. We spend, borrow, and patch. The most immediate, and lasting, impact of the study, she said, was to raise awareness of the importance of science and technology in the state's economy. One significant need, she said, was for the adoption of a new business model. S hegemony in markets; and a proliferation of venture capital worldwide.
Your static website channeled your customers to your phone number. And your main market is everyone on the planet. Your inefficiencies are discreetly outsourced.
We have moved away from the closed innovation model of the 20 th century and are close to an open innovation model. Open innovation is very big, very different, has more players, and things can go in all directions. CCST had therefore initiated a new study, the results of which would be offered to the new governor and legislature of California early in This report will engage business and industry, the pre-K schools, colleges and universities public and for-profit , federal research laboratories, non-profit research institutions, and the public policy sector.
It will provide a roadmap to help guide effective investment, avoidance of roadblocks, and support of California's innovation ecosystem. The report was not yet finished, but she offered four key areas of emphasis that had changed significantly in the last decade. Should California look outward to connect — e. In health care , she said, the new focus is on the personalization of care and on a data management infrastructure.
The complexity of the model is completely different. No game-changing drug has come onto the market in the last 10 years. In addition, health care is being transformed by an explosion of new tools and technologies, she said, and doctors are overwhelmed by large amounts of data. Another area of emphasis, she said, is the growth of technology innovation at global scale. Of primary importance are the challenges of workforce retention and workforce competitiveness.
California is not so much falling behind as other people are running faster. California-specific issues holding back innovation include poor K education, tort and labor laws, and regulatory control. But now we are becoming merely brokers. The education system is another area of focus, she said, because of several negative phenomena. She cited a figure from CPEC Fiscal Profiles, , comparing state funding for the university system with state funding for the corrections system.
The percentage allocated to the universities dropped from The percentage allocated to the corrections system rose over the same period from 4 percent of the budget to 9. In addition, the for-profit colleges are changing higher education's landscape, gaining a fast-growing share of enrollments. She reported that the University of Phoenix had just passed California State University to become the second-largest higher-education system in the country, with , students as of February They are providing services students want.
What students want is mobile technology. They want to work and learn anywhere, to integrate communication with content and collaboration.
To them, social networking is the new learning community, the new community of practice. Much later, and on a much larger scale, came the Wal-Mart chain of stores, which were innovative in quite different ways. The chain began with Sam Walton's first establishment in Rogers, Arkansas in Several years later it launched an innovation that had much to do with its success — the pioneering practice of keeping track of inventory by computer.
By the s, the company had the largest commercial computer database in the United States. A subsequent innovation was the decision to build its own warehouses so it could buy large quantities of goods at low prices and keep them ready for delivery to its stores on short notice. This scheme also reduced the company's significant shipping costs. Today, Wal-Mart is recognized as the world leader in managing supply chain logistics. Such innovations have led to worldwide growth — and local benefits.
More than 1, suppliers have opened offices in the state since the mids. In February it issued a well-publicized pledge — made jointly with the Environmental Defense Fund — to eliminate the equivalent of 20 million metric tons of greenhouse gas emissions from its global supply chain by the end of Gregory described other innovative institutions in Arkansas, some new and others newly repurposed.
In partnership with researchers from other government labs, academia, and industry, it develops, refines, and applies current and emerging technologies to improve safety evaluations of FDA-regulated products.
The Arkansas Economic Development Commission, also formed in the s, had recently assumed a much larger role that expanded beyond manufacturing to include service and high-technology industries. Today its mission is to create strategies that produce better-paying jobs, support communities, and support workforce training. With an expanded focus on technology-based businesses, it provides special economic and tax incentives to private sector employers that emphasize, among other technologies, clean energy, computer technology, telecommunications, and power grid management.
The Arkansas Biosciences Institute, a research program set up with funds from the Arkansas Tobacco Settlement Proceeds Act of , is a partnership of scientists from universities, hospitals and medical schools. Its mandate is to conduct agricultural research with medical implications, bioengineering research, tobacco-related research, nutritional research, and other related research.
A statewide Task Force for the Creation of Knowledge-Based Jobs, appointed by the director of the Arkansas Economic Development Commission in , was followed a year later by Accelerate Arkansas, a volunteer initiative of business, professional and educational leaders in the state focused on increasing the average per capita income in the state through increased emphasis on building a knowledge-based economy.
Accelerate Arkansas' first significant act was to commission the most extensive study on the Arkansas economy ever conducted.. The study, carried out by the Milken Institute and funded by the Winthrop Rockefeller Foundation, recommended actions necessary to raise per capita income in Arkansas now only about 72 to 75 percent of the national average to the national average by At about the same time, the Arkansas Institutional Fund was implemented as a fund-of-funds to invest in equity of private venture capital funds to support the funds' equity and debt capital investments in small technology-based businesses through their first and second rounds of investment.
By , Accelerate Arkansas was ready to firm up its strategic plan by focusing on five core strategies that have led to significant state-sponsored initiatives focused on building a knowledge-based economy:. Gregory then turned to Governor Mike Beebe's Economic Development Plan, which embraced these strategies and placed them in the context of addressing the state's competitiveness at the national and global levels.
The Plan includes the following goals:. He concluded by comparing these goals with those of a statewide Task Force for the 21 st Century Economy which was created by the legislature in and completed its study and recommendations in that studied the scope of economic development in Arkansas and identified programs and services needed for continued development.
He noted that this Task Force's recommendations aligned closely with Governor Beebe's objectives. They began with human resource development, especially STEM education at all levels, and more specifically with workforce education. The Task Force then called for ways to carry innovation into the marketplace, increase support for entrepreneurship, provide additional risk capital, and focus on increased global competitiveness in recruiting businesses and industries.
They finally called for an increased emphasis on cyber-infrastructure development and innovation by existing businesses. Gregory stated that innovation efforts in Arkansas have evolved from uncoordinated private enterprise-based efforts, to state involvement and encouragement, to the present day public-private sector partnerships throughout the state that seek to accelerate the conversion of the state's economic resources from traditional economic development activities to those focused on expanding knowledge-based jobs and making globally competitive businesses, thereby increasing the standard of living for all Arkansans.
National Research Council, In particular, see Van Looy, Bart, K. Assessing Academic Patent Activity: The Case of Flanders. Towards a Compounded and Reciprocal Matthew-effect? The National Academies Press, forthcoming. Capitalism, Socialism and Democracy , New York: A cluster is defined by Michael E.
The observatory maps clusters in Europe, offers educational resources, and promotes the concept of clusters. It lists 38 different categories of technology and business clusters. In addition to the Biopolis and Fusionopolis in Singapore, Asia supports many parks, some of great size.
Zhongguancun Science and Technology Zone, in Beijing, supports more than 12, high-tech enterprises in seven separate technology parks. For a review of northeast Ohio's regional development programs, see Edward Hill et al. Urban and Regional Policy and Its Effects, vol. Brookings Institution Press, , pages National Academies Press, forthcoming. Various versions of the Bowie knife, designed in by Col.
James Bowie, had blades ranging from six to 24 inches in length. Bowie gained fame when he used an early version of this lethal innovation at the so-called Sandbar Duel, where he killed three men. Subsequent to the National Academies meeting, the FDA and the state of Arkansas in entered into a Memorandum of Understanding, the first in the nation between the FDA and an entire state, focused on harnessing the relative strengths of the NCTR in toxicological research and the research resources in Arkansas' higher education research institutions, in a collaborative effort, including creating a virtual Center of Excellence in Regulatory Science, to provide a model for the nation that brings industry, academia and government together to solve societal problems.
Turn recording back on. National Center for Biotechnology Information , U. Affiliations University of Arkansas at Little Rock. Affiliations The National Academies. Responses to the Innovation Challenge Leading nations everywhere are responding to the innovation challenge in similar ways, he said, seeking to provide four essential mechanisms for economic growth: Trading Partners He then described in more detail the innovation strategies of several U.
The surge in VOIP technology and software means that you can communicate with remote employees cheaply and effectively. One of the most popular tools around, Salesforce. A new wrinkle in terms of technology is that many firms have begun to equip all of their employees with smart phones such as the iPhone as a way to enable them to access any web-based technology regardless of where they are, including many new applications. Systems are a must, technology is important tool however, none of these will work with out real communication , says Martinez.
If you neglect this aspect of running your business, you do so at your own risk, particularly in a business with multiple locations.
That's why Martinez also makes having his employees have time face-to-face a priority by having his offices take turns hosting each other once a year to enable communication between people on all levels. Other tips for fostering communication between your employees based in the office and elsewhere include: Establish full team weekly staff meetings via phone or webinar to get your whole group together. If possible, have web cams so your team members can see each other.
Make each physical site responsible for a specific type of work, rather then assign random tasks associated with a central project. When doable, have the CEO or management members personally visit each remote site on a scheduled basis, every month, for instance. Establish weekly phone-based staff meetings individually with each remote group so that each physical location will get time with top management. If possible, get your whole group together once or twice a year for staff meetings, brainstorming and team building.
How to Improve Your Communications Skills. But when you add a new sales office or manufacturing plant overseas, says Bloom, you can actually run into a host of new challenges associated with cross-cultural communication that include: There is limited or no overlap in the standard workday.
Even if everyone has a common language, English for example, differences in accents, language fluency, and the use of slang expressions can make communication extremely difficult, particularly on conference calls and speakerphones. Cultural differences from country to country can accidentally cause tension, embarrassment, and miscommunication. Scheduled meetings, reporting deadlines, cash flows and standard business processes can be derailed or delayed based on local holiday schedules.
Not all countries have high-speed connectivity at all locations. Laws regarding hiring, employee termination, hours worked, layoffs, sexual harassment differ from country to country. Business-related laws, ethics , and practices.
Business is conducted very differently from country to country. Building the Best Virtual Workforce. Find one key contact in each country that is very knowledgeable in local customs, business practices, and laws.
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Building the Arkansas Innovation Economy: Summary of a Symposium. In this environment, he said, “we must break away from a pro-business or This includes more money for R&D, an expanded R&E work force (growth of percent One current strategy of the federal government, he said, is to join with states and. But geographic growth involves logistical complexity and management finesse. Dig Deeper: Building Systems to Manage Your Business In European Union member states, the laws regarding the personal use, storage, and Corporate Agility: A Revolutionary New Model for Competing in a Flat World. As you go about developing your growth strategy, you should first consider the market-;offering your product or service to customers in another city or state, for.