Sustaining Local Economic
Development Initiatives:
A summary of the Hexagon of
LED
Jörg Meyer-Stamer
[email protected]
Conceptualizing Systemic
Competitiveness at the Local and
Regional Level: The Hexagon
Process Management
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
The First Triangle:
The Target Group
Planning, M+E
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
The target group of local
economic development: firms
Attract suppliers and
complementary firms,
manufacturers of
capital goods,
service providers
Attraction
of new
firms
strengthening
local firms
franchising
supplier development,
outsourcing, spin-off;
support for owner
succession
Promotion
of start-ups
and entrepreneurship
How to apply the first triangle in a
workshop setting
 Conduct a mesocard-based brainstorming on the
business promotion activities that are ongoing
 Ask the participants to organise the observations
around the triangle, particularly looking at the
connecting lines between the corners
 Discuss the result with the participants
– It is likely that the result will show a certain
imbalance in terms of business promotion
activities
– Take this as a point of departure for a
brainstorming on new approaches to business
promotion.
The Second Triangle:
Locational Factors
Planning, M+E
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
Locational advantages
Tangible locational factors
-- geographical location
-- real estate
-- transport and
communication
infrastructure
Relevant for individuals:
-- quality of housing
-- environmental quality
-- schools and HE
-- health facilities
-- social facilities
-- culture and recreation
-- skilled workers
-- energy and environment
-- taxes and levies
-- subsidies
Intangible
locational factors
Relevant for firms:
-- efficiency of
government
-- business climate
-- availability of
related industries
-- supporting
institutions
How to apply the second triangle
in a workshop setting
 Conduct a mesocard exercise based on the question:
What are the factors that make a location attractive
for business?
 Organise the cards according to the three types of
locational factors
– It is quite likely that at least one of the three types
will attract only very few observations

Address the issue of static vs. dynamic competitive
advantage
The first and second triangle
Planning, M+E
Target group
Hard-core
LED
Governance
Sustainability
Locational factors
Policy focus and
synergy
The Third Triangle:
Policy Focus and Synergy
Planning, M+E
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
Focus and Synergy:
The three approaches to local
development
Business
Development
Social
Development
Community
Development
Urban planning
Urban development
Infrastructure
Development
Focus and Synergy, 1:
Separating
Economic
Development:
Profit vs.
solidarity
Quick results
Competitiveness
Sustainability
Consumers
Social Development:
Support for disadvantaged
and marginalised
Beneficiaries
Solidarity
Time horizon
Urban Planning:
Visual
vs.
substance
Long time horizon
Planning
Aesthetic criteria
Focus and Synergy, 2:
Connecting
Focussed,
demand-driven
skills development
Redefine social
problems as
business
opportunities
Leverage infrastructure and
facilities development
Economic
for LED
Development
Apply business
Improving
Stimulate
principles in social
locational quality
entrepreneurship
endeavours
Create a unique
(as early in life
profile
as possible)
Social / community Improve quality
Urban
Development
of living in lowPlanning
income areas
How to apply the third triangle in a
workshop setting
 Ask the participants to name ongoing or planned LED
activities in their location
 Cluster the responses according to the three corner
points.
– Often, the outcome shows lots of social and urban
development projects, but very few proper
economic development activities.
The Fourth Triangle:
Sustainable Development
Planning, M+E
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
The triangle of sustainable
development at the regional level
e.g. processing of locally
available bio-mass
ecological
development
economic
development
e.g. new types of living and
housing (for instance
for retirees)
e.g. regional recycling
economy
e.g. labor-intensive development
of industrial estates and infrastructure
social
development
How to apply the fourth triangle in
a workshop setting
 Use it in a setting where local stakeholders have
experience with LED but find it difficult to come up
with new ideas
 Organize a Mesocard-based brainstorming exercise
around this triangle
– divide the group into four working groups, with
three looking at one connection and the fourth at
the entire triangle.
The third and fourth triangle
Planning, M+E
Target group
Hard-core
LED
Governance
Locational factors
Widening the
perspective
Sustainability
Policy focus and
synergy
The Fifth Triangle:
Governance
Planning, M+E
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
The Triangle of Governance
Civil
society
Local
government
Business
associations
The Sixth Triangle: Diagnostic
Planning, Monitoring & Evaluation
Process management
Governance
Sustainability
Target group
Locational factors
Policy focus and
synergy
The Triangle of Process
Management
Participatory
diagnostic
(e.g. PACA)
Feedback
Reference
Participatory
M+E, Participatory
benchmarking
Motivation +
priorities
Implementation
Participatory
planning
The fifth and sixth triangle
Process management
Target group
Governing the
process of LED
Hard-core
LED
Governance
Locational factors
Widening the
perspective
Sustainability
Policy focus and
synergy
The Hexagon and LED
interventions
Participatory approach
LED = iterative
process
Encourage
independent
business
associations
Public-private
partnership
Effective
governance
Innovation: Addressing
LED from a new angle
Small business promotion
Investment promotion
Start-up promotion
Promotion of BDS
Efficient public
administration
Enabling
environment
Competitive
infrastructure
Skills
Synergy between different
fields of local development
Sustaining a local economic
development effort
Process management
Target group
Effective
co-ordination
Basic
instruments
Governance
Locational factors
Innovative
instruments
Sustainability
Policy focus and
synergy
Thank you for your attention!
Further information available at:
 www.wiram.de/toolkit/
 www.mesopartner.com