Table of Contents

  • The OECD Programme on Local Economic and Employment Development (LEED) has advised governments and communities since 1982 on how to adapt to global trends and tackle complex problems in a fast-changing world. It combines expertise from America, Australasia and Europe into pragmatic task forces that provide rapid responses and targeted advice on specific issues. It draws on a comparative analysis of experience from some 50 countries around the world in fostering economic growth, employment and inclusion.

  • I’m delighted the UK Government is supporting publication by the OECD Programme on Local Economic and Employment Development (LEED) of this groundbreaking global review of economic development companies and agencies. I’m also grateful to the development companies and agencies around the world who’ve made it possible, through their financial support and providing case studies and observations from practice.

  • The search for the best organisational arrangements to promote local economic development has been a significant task for municipal governments and their partners for several decades now. This book examines the contribution that has been made by agencies, companies, and corporate boards which have proved to be a consistent choice of local government leaders for pursuing local economic strategies.

  • Following a clear introduction to what local development is and why it is significant, this chapter outlines the importance of effective organisational arrangements for the planning and delivery of local economic development, and of the particular role that development agencies can play. Through a review of the literature the case is made that, despite their proven success and growing prevalence, understanding and appreciation of these flexible, innovative and pragmatic tools for local development are less than what they should be. The chapter concludes suggesting that by drawing on a core evidence base of case studies of 16 agencies in 13 local economies to answer a number of key questions the publication will review how development agencies have contributed as leaders in the local development system.

  • This chapter uses an overview of the historical evolution of development agencies and a short profile of each of the 16 development agencies (DAs) which form the core evidence base of this book to introduce how these development organisations compare and why they vary. One consequence of the mix of different factors in the establishment of development agencies is some very basic differences in the purpose, role, structure, scale, shape, size, and resourcing of the agencies. At the same time, while many development agencies are “comprehensive”, engaging directly with a wide range of interventions in labour markets, property markets, external investment markets, and with enterprise and innovation drivers, many are more focused, concentrating more on one or two of these activities. Having identified and explained this diversity, the chapter distinguishes five predominant development agency types: development and revitalisation agencies; productivity and economic growth agencies; integrated economic agencies; internationalisation agencies; and visioning and partnership agencies. It concludes that this diversity is evidence of the flexibility of DAs and the different needs of local development systems. The fact that the mandate of each can be tailoured to contribute optimum value to the local development agenda makes them a powerful potential tool for local leaders.

  • Given their unique characteristics, development agencies can offer much to local leaders. This chapter links the theoretical discussion of how and where development agencies add value to local development systems to practical examples of the impact of these organisations on the ground in a variety of operating environments. First, the functions of development agencies are divided into eight categories, which range from branding and international promotion to human capital development and social or green initiatives. Then, key performance indicators are used from agencies in each of the five typologies identified in Chapter 2 to demonstrate the depth and breadth of the practical contribution development agencies can make to the local development process.

  • This chapter assesses when and how a development agency should be set up and how it should be reviewed and encouraged to evolve. It is in the nature of development agencies that they deal with dynamic contexts and constantly changing activities. They must therefore be highly adaptive organisations. Successful agencies continuously evolve and adapt and do not remain rigid, so mechanisms for shaping how they evolve and adapt are essential. Through its discussion, this chapter provides answers to other important issues such as which tasks a development agency should undertake, how to review performance, when to enlarge or contract an agency’s roles and activities, how best to deal with process and timing as well as what can go wrong.

  • This chapter describes how development agencies can lead, shape and facilitate the effective operation of the local development system and are in turn led, shaped and facilitated by it. It defines these systems as networks of public, business and nongovernmental sector partners which can work collaboratively within defined areas to create better conditions for economic growth, social cohesion and employment generation. Evidence from the 16 development agency case studies is used to show that local development systems are tightly or loosely organised, precisely orchestrated to deliver a local development strategy, or rather imprecisely oriented. The chapter proceeds with a discussion of how to build a seamless and co-ordinated system giving particular attention to key work streams, key players, features of success and the role of development agencies within it.

  • This chapter addresses what development agencies actually do and the tools they use. A summary of core activities of development agencies is presented and the argument is developed that while what these agencies do is obviously essential, how it is done is equally important. It is established how these activities are done by categorising the roles that a development agency might play in a local development system. It is underlined that without a thorough consideration of both what activities are undertaken and how they are undertaken, the contribution of development agencies to sustainable local development may be misunderstood. The chapter begins with an overview of some of the approaches used to categorise development agency roles, and concludes by detailing the roles played by development agencies in the formulation of local development strategy.

  • Operational features of development agencies are fundamental to their success. This chapter identifies key trends and choices that support organisational effectiveness. Because development agencies are usually not organisations that are statutorily mandated, there are many choices about how they are internally structured, what tools they use, and how they operate. This chapter seeks to illuminate some of these choices giving reference to the 16 development agency case study evidence base. Some of the key issues illustrated in particular include: development agency boards and leadership; organisational structures; financial strategies; resource and asset management; accountabilities; performance review and best-practice sharing.

  • The final chapter in this book makes the case that although development agencies of all kinds have become a global phenomenon, there has been limited international exchange on how and why such organisations work. It explains that though the codification and sharing of practice is inherently difficult, the purpose of this book is to attempt to bridge part of that gap and promote understanding within a shared framework and the learning of precise lessons across borders. To conclude, a series of development agency strengths and constraints are defined and illustrated which inform the OECD LEED Programme’s ten principles for development agencies.