Using data and spatial analysis to support

Economic Gardening as a grassroots economic development tool in regional

Australia

Dr Kim Houghton Director Strategic Economic Solutions

Steve Harvey Director Bugseye

Adaptation and innovation

NSW Innovation Council, Regional Innovation Strategy

Engaging and energising entrepreneurs

• Many horses, lots of water, few drinkers • Picky customers, want instant results • Experiential learners • Building adaptive capacity • Practical help

– Getting to markets – Increasing sales and adding value – Accessing ‘knowledge intensive business services’

• Culture of innovation and investment

Economic Gardening • Designed by Chris Gibbons, Littleton

Colorado • Develop local entrepreneurs

– Create a nurturing environment – People with roots in the community

• Support innovation to keep exports from becoming a commodity

• Public sector’s role: – Invest in community, not companies

• Information (GIS, database research, web marketing)

• Infrastructure (renewal, capital works) • Connections (R&D, networks)

© Chris Gibbons, used with permission

Sample Uses of GIS in Economic Gardening

© Chris Gibbons, used with permission

Customer locations Demographic data: High income families with children under 15

Drive times

Expenditure mapping

Competitor locations

Australian applications

• Illawarra, Bega Valley, John Grant • Crucial information (market research)

component hampered by lack of data – Reliance instead on workshops, strategy

advice and ebusiness • Great Australian data – much underused

– Household Expenditure Survey – Australian Business Register

An Australian example The search for expansion opportunities for the pharmacy

industry in NSW

The Questions

•Where do we start looking?

•What locations will drive sales?

•Where are our best customers?

•Where’s the competition?

Highest spend profiles across NSW

• Estimated spend on pharmacy product lines by LGA. • No State or National averages. • Modelling delivers and reflects local area spend characteristics select demographic elements and current-day value.

Drill down for LGA assessment

Look for families (high net value customers) to refine search

Look for regional existing activity hotspots indicating likely density of demand

Mine for deeper data at suburb level and seek out the competition hotspots

Look for passing trade patterns

Get to the coal face and an area of interest

Taking it a level deeper Street hierarchy and trade catchment

Taking it a level deeper A bird’s eye view of competition

Conclusion

• Practical help, easily applied • Value for business (informed decisions for

SMEs) • Culture of adaptation and innovation

– Higher value products and services – Defined markets

• Practitioner insight into what’s possible and practical

Thank You

Steve @bugseye.com.au O2-9953-2152

kim@economicsolutions.com.au O2-6262-6234