Page 20 - FDI Alliance International Magazine | September 2018 1

BRE IS THE HOTTEST TREND IN

ECONOMIC DEVELOPMENT.

WHY HAS IT TAKEN SO LONG ?

ROBERT

TUNIS

of industry clusters that define a region’s economy. ed and grown organically. A good part of these rap-
Existing companies have already developed deep idly growing companies have outgrown their orga-
networks in the community and contribute to the nizational capabilities and are desperately in need of
community’s economy in endless ways that cannot help to put together their management, marketing
all be easily measured. and planning. Both individual counselling or an or-
ganized ‘lecture series’ often in conjunction with a
As a result any economic development organiza- university or community college are invaluable.
tion worth its salt has developed a BRE strategy and
probably has a BRE division and manager. BRE is -Talent Attraction: This is the key area where we
doubtless more complex than business attraction are witnessing some major innovation. Talent and
Most of us who have been in the ‘business’ for a and harder to implement (as a former BRE Manager workforce is consistently rated as #1 or #2 (or
few years realize that economic development is I am allowed to make his statement without chal- both) in most firms’ decisions to locate and remain
at its heart a somewhat conservative profession. lenge, by the way). On one hand, business attrac- in community. Success in the ‘war on talent’ is vital
Major trends seem to take years to develop. One tion is usually organized around well defined projects in a community’s economic success. Handling tal-
of the more profound recent changes has been that have clear metrics. It centers on the ‘deal’ and ent attraction takes many forms. Some economic
the growing prominence of Business Retention and has developed sophisticated economic models to development agencies organize missions to take
Expansion (BRE) as a core element of most economic measure job creation, investment and tax genera- their companies out of state to market themselves at
development strategies. Some of the most creative tion. Once the deal is closed it becomes a political national job fairs and industry conferences. A num-
recent initiatives in economic development have success with accolades generously distributed. BRE ber of progressive communities have job boards dis-
taken place in Business Retention and Expansion on the other hand is more diffuse, long term and played prominently on their economic development
area. Even this change, however has taken over a harder to measure. At its heart BRE comes down to websites linking directly to local companies’ oppor-
decade or longer to develop. Why has BRE gained developing deep, long term and hard to measure tunities. Smart communities develop relationships
such prominence and why has it taken so long? relationships with the existing business community. with HR Directors at their major firms. It is important
It is often difficult to measure the direct contribution to work closely with existing workforce development
Since its inception and to this day, economic devel- of the local economic development organization in organizations which can create synergies through
opment has been largely synonymous with business any company’s decision to remain and or expand in their own networks. Regional universities and edu-
attraction. The recent fever over Amazon 2 has shown a community. Nevertheless, an economic develop- cational institutions are also great partners to help
that business attraction is not going anywhere as a ment organization’s BRE strategy is crucial to devel- lure back graduates and alumni through their career
core economic development strategy. Over the past oping the region’s economy. services divisions.
10-20 years however, it has become clear that keep-
ing a region’s existing companies (along with their Here is where many communities have concentrated - Intelligence and Networking: Regular liaison
technology and talent) is as important if not more in organizing their BRE programs: and frequent visits with local firms can help set up a
important than attracting business from outside. ‘early warning’ system, in order to forestall imminent
Most job creation (up to 80 percent) can be traced - Business Counselling: This is especially effective corporate departures. Firms appreciate meeting lo-
to existing firms. Existing firms become the anchors in communities where numerous startups have sprout- cal political leadership and airing any concerns that

20 FDI ALLIANCE | SEPTEMBER ISSUE 2018