How innovation can drive industry competitiveness

Innovation can drive the competitiveness of private firms regardless of their size or the sector and markets in which they operate. To illustrate this, in this post, I describe the creation of a Horticulture Innovation Group in Vietnam and how this has helped smallholder farmers diversify and improve their competitiveness. Last year (in 2023), the…

Helping businesses invest in skills development

Because the private sector creates the most employment globally, we need to pay attention to how we can encourage private businesses to invest in skills development. Private business owners must come to see how a more skilled workforce will improve productivity, business competitiveness and profitability. Moving beyond workers as a cost to business A key…

Australia’s new International Development Policy sets a broad scene for private sector development

The new — and highly anticipated — Australian International Development Policy sets the scene for Australia’s future support for private sector development. While there is not a lot of detail on how Australian aid should work with the private sector or support private-sector development, it does contain some essential elements that frame the future of…

Promoting local SME participation in public procurement

Promoting local small- and medium-enterprise (SME) participation in public procurement markets should be crucial in any government’s support for local economic development. I will never forget the experience of working in Glasgow many years ago in housing estates that contained extremely high levels of multigenerational unemployment. I remember meeting men and women who sat idling…

Overcoming the barriers to SME participation in public procurement

Government agencies can take steps to overcome the barriers to small- and medium-enterprise (SME) participation in public procurement to enhance local employment and economic outcomes. Public procurement is an important source of market opportunity for businesses. It has been used to drive industrial development through government demand for industrial innovation and technological change since the 1970s,…

Local investment promotion agencies

Increasing attention is being given to supporting local investment promotion agencies to promote private investment for economic growth and job creation. While a national investment promotion agency, or IPA, builds on a country’s brand in foreign investment markets, a local agency works from the ground up. Local investment promotion agencies connect outside investors to the…

Local government and economic development; a theory of change

How do local governments create change in the local economy? By understanding the theory of change local governments can focus their local economic development interventions. This improves the likelihood of success that will be sustained over time. It is key to understanding local government and economic development better. A theory of change describes how and why…

Creating a virtuous system for local economic growth

Success in local economic development requires an understanding of the local economic system. By creating a virtuous local economic system, we intervene to change different parts of the economy. We work with various local actors to create a virtuous system for local economic growth. This article is a companion to another on a theory of change…

How business environment reforms work; the case of Rwanda

Rwanda offers several important insights into how business environment reforms work and can lead to economic growth and poverty reduction. Often heralded as a positive example of African development, Rwanda is a unique country with many contested issues. This small, landlocked nation can only prosper through better access to regional and international markets and increased…

One-stop shops for investment

A one-stop shop for investment can improve opportunities for private sector development, but not necessarily in the way you might imagine. In general, a one-stop shop is a place or agency that offers a range of products or services under one roof. The term relates to how many stops or points of contact customers need…

Local Economic Development

This article introduces the concept of local economic development. It answers the questions: What is local economic development? Why is local economic development relevant today?  While the history of local economic development extends decades, the actions taken by local organisations and institutions have become even more relevant in the face of increasing levels of global…

Business Advocacy

This article examines the role of business advocacy in business environment reform. This is an important element of private sector development. The article answers the questions: What is business advocacy? How can business advocacy be made more effective?  Importantly, business advocacy is not the same as public-private dialogue. Dialogue is a two-way process in which…

Public Private Dialogue

This article examines the role of public-private dialogue in private sector development. It answers the questions: What is public-private dialogue? Why is it important? How can public-private dialogue be improved? What is public-private dialogue? Public-private dialogue (PPD) is the interaction between government and business for business environment reform purposes. It is an essential element to…

Investment Climate Reform

This article introduces the concept of investment climate reform and its role in private sector development. It answers the questions: What is the investment climate? What is investment climate reform?  The investment climate covers a broad range of locational elements influencing the decisions of private investors.  Beyond the firm: framework conditions for business growth Economists…

Small Business Development

This article introduces the concept of small business and the approach to small business development. It answers the questions: Why are small businesses important? How to support small business development? This topic includes micro, small and medium-sized enterprises. The article introduces important nuances in our understanding of the role small businesses play in the economy and…

New insights on the informal economy

I recently co-authored a Donor Committee for Enterprise Development (DCED) research report (with Will Nielsen) entitled Dealing with Firm Informality. There is a lot of new debate on this topic. For some examples, see this recent World Bank publication on The Long Shadow of Informality: Challenges and Policies, and the International Monetary Fund’s report on The Global…

The SME Test: Assessing the impact of new laws and regulations on SMEs

New laws and regulations quickly accumulate and cause administrative overload for small and medium enterprises (SMEs) because the costs of compliance are often disproportionately higher than for large enterprises. In many countries, the number of laws and regulations adopted each year to which SMEs must comply is increasing dramatically. While this is not a bad…

Addressing informality through local business advocacy

While many business organisations represent formal businesses, it is important for local business advocacy to consider the issues faced in the informal economy. Earlier this year, I was commissioned by the International Labour Office (ILO) in the Asia Pacific Region to write a research report on the impact of government decentralization on the transition to formality.…

Youth Entrepreneurship for the Blue and Green Economies

New opportunities for youth entrepreneurship Young people around the world can play an instrumental role in creating the change required to ignite innovations that lead to sustainable development outcomes. This leads to opportunities for youth entrepreneurship in the blue and green economies. Youth entrepreneurship may contribute to the social, economic, and environmental innovation required to drive…

Are market systems development projects too cool for rules?

This article looks at how market systems development projects can better connect with business environment reforms to improve the ways market work better for the poor. It has been written by Ines Bentchikou from the International Labour Organisation in Geneva and Simon White.  Ines works with The Lab at the ILO, which is a global initiative funded…

Placemaking for local economic development

Placemaking is an important strategy for local economic development Download the PDF Version of this article here. I have a long history of involvement in placemaking, most recently as the former deputy chairperson of Leederville Connect in Western Australia. Of course, and as others have noted, ‘the business and practice of making a successful urban…

Lessons to guide a local economic COVID recovery

In this post I describe a number of lessons we can draw from our COVID-19 response to help guide a local economic recovery. I look at responses that appear have worked and make four suggestions for placed-based responses. We are not past this crisis by any measure. But there are important lessons we can draw to…

Bringing the business environment online

How digitalisation can support business environment reform In this post, I look at how digitalisation can support business environment reform. This includes some useful guidance for policymakers and regulators. The digitalisation of legal and regulatory compliance requirements is a critical strategy for achieving meaningful business environment reforms. In the midst of COVID-19, many businesses have quickly…

Surviving COVID-19: Why place continues to matter

In the midst of the Covid-19 global pandemic sweeping the world, place really does matter. This is a post from my recent newsletter on place-based economic development and job creation. Subscribe here. Over the last few weeks I’ve undertaken assignments in Jakarta, Milan and Delhi, with Covid-19 hot on my heels. As a result, I…

Introducing MyPlaceMatters

MyPlaceMatters: A One-Stop Resource for Place-Based Economic Development I am thrilled to announce the launch of a new website. MyPlaceMatters is a resource for anyone working in local and regional areas to develop the economy, create jobs and improve the quality of life. Where we live, work, invest, and grow affects who we are. It…

Supporting city and local government innovation

City and local government authorities can be more innovative in the way they work, share data and stimulate local innovation. Characteristics of innovative local governments While there is no single pathway to success, there are characteristics that high-performing city and local governments share: First, innovative city and local government authorities make sure that very different…

Making places for innovation; lessons from Mexico City

How local governments can support social and innovation through collaboration. While the national buzz around innovation in Australia appears to have somewhat subsided, there is growing evidence of the role local actors can play in stimulating innovation. Local innovation ecosystems nurture private and public innovation. National policy frameworks are important, but state and local initiatives…

Supporting Public-Private Partnerships for Industry Development

Dealing with the practical problems private firms face when nurturing innovative processes; lessons from Rwanda Industry development and commercial innovation are often presented in idealised terms, focusing on shiny new start-ups and ignoring the struggle of existing firms.  It is challenging to understand the practical problems of private firms face and use this information to…

How local government councillors can support economic development

This post explores the ways local government councillors can support economic development. Local governments play an important role in the local economy. While professional staff can guide and advise councils, elected local councillors make the final decisions. My Place Matters (powered by Publicus) has produced a short guide on how local government councillors can support…

Economic Development in Practice: Are you a planner, a gardener or a searcher?

Successful economic development practice comes from adopting the right approach at the right time. It is important to understand the differing roles that practitioners can play when supporting growth and development. Are you are an economic planner, gardener or searcher? Economic development is a complex, multifaceted process. There is no solver bullet. While it is important…