Two weeks ago I was able to attend the 2008 Arkansas State University Agribusiness Conference. The keynote speaker was Dr. Mark Drabenstott who is the Director of the Rural Policy Research Institute, Center for Regional Competitiveness at University of Missouri. He discussed the importance of developing regional strategies for economic development of rural areas.
Key to his topic was the idea that the rural regions in the United States will never be able to compete globally with inexpensive labor and commodities from around the world. He urged the 300 attendees to think beyond what we have been doing and look towards how we can develop our regions for competitive advantage in the future. He really pushed the point that rural America has to begin thinking regionally and identifying strengths to develop a critical mass of activities.
Dr. Drabenstott made five key points toward developing a regional approach:
1. Think regionally
He rightly pointed out that the whole push towards biofuels and bioenergy is making everyone in agribusiness think differently towards forming alliances in new ways. This is an ideal time to look beyond the competition between two rural communities over attracting a new factory, and towards forming proactive alliances across county and state lines.
2. Craft a regional strategy
The second point was that once a group begins to think regionally it is necessary to develop a strong regional business plans that identifies assets, competitive advantages, and areas where improvement is needed. He pointed out that developing this strategy will align public and private investment in a common direction thereby building a strong and comprehensive economic engine.
3. Build sustained regional leadership
Dr. Drabenstott pointed out that without strong leadership and implementation skills, a regional strategy merely becomes another three-ring binder on a shelf. He stressed the importance of building strong leadership structures that can bring together the resources, provide the skills to grow new businesses, and support that new industry.
4. Connect the region with the right innovation and technology
In his talk at Arkansas State University, Dr. Drabenstott, also pointed out the need for connecting each rural region with the right innovation and technology. The goal would be to develop regional niches that take advantage of identity-preservation technologies, logistical advantages, and adding value to the farm-grown product.
5. Grow lots and lots of entrepreneurs
The last point Dr. Drabenstott made was that for an economic development strategy to be successful it will require creating an entirely new culture in rural America; one that helps spawn many new entrepreneurs and companies. The institutions and supporting structures need to be adjusted to make this happen by rethinking how we use plants to capture solar energy and convert the plant-based chemistries into new products. Also there will be a strong need for entrepreneurial coaching and access to capital.
Dr. Drabenstotts' comments were refreshing, especially for a region that ranks very high in agricultural production and yet very low in value-added processing.
Pete Nelson is a principal in BioDimensions, a consultancy dedicated to helping companies producing plant-based products prosper. He can be reached by email at pnelson@biobased.org.