How economic development organizations are thriving amid rapid change

Today, every industry and geography is being disrupted by innovation. Entirely new industries are being born, while others are fading into history. Just as we are getting used to the way things are, breakthroughs in artificial intelligence and quantum computing are changing the global economy overnight.

In this hyper-disruptive world, communities need to innovate to maintain or improve their economic competitiveness. This does not mean adding buzzwords to websites or announcing new target industries. That is talking about innovation, not being innovative.

Economic development organizations must innovate to ensure they fit into the current economic landscape and maximize their impact.

What does an innovative economic development organization look like?

First, the board and staff must be filled with true innovators with experience in industry, academia, and entrepreneurship. Their expertise is critical to modernizing the organization and ensuring alignment with today’s economy. I have seen this principle in action and believe it is fundamental to building effective ESD today.

Second, innovative EDOs are constantly experimenting with radically new approaches and technologies. For example, leading EDOs are using AI tools today to improve communication and research, freeing up critical resources for other roles. Some experiments will succeed and yield significant results, while others will fail. To foster innovation, EDO leaders must cultivate a culture that tolerates “fail fast” and rewards attempts at innovation, not just success.

Top EDOs set ambitious impact goals each year and are held accountable for their performance. This practice is critical to generating innovation where little previously existed. Setting high goals and holding leaders accountable eliminates internal complacency and fosters a culture of innovation. After all, necessity is the mother of invention.

As Ben Franklin wisely observed, “When you’re done changing, you’re done.” To help communities thrive in this ever-changing landscape, EDOs must become the innovators they seek to attract. By adopting this mindset, we can ensure that innovation is not just a buzzword, but a driver of economic growth and prosperity.

John Moore is a principal at Momentum Strategies, an Upstate consulting firm specializing in helping communities and their economic development organizations build thriving, impactful innovation ecosystems.