1. Extension’s Vital Role in Open-
Source Economic Development
Galaxy III
Celebrating the Extension System: Strengths, Diversity, &
Unique Qualities
September 17, 2008 – Indianapolis, Indiana
Scott Hutcheson, Assistant Program Leader
Economic & Community Development
Purdue Extension

2. Economic Development 101
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

3. Our Grandfather’s Economy
First Curve – Wealth
driven by vertical business
models
Wealth was built at a rate the world had
never before experienced

4. The S Curve Caught Up with
Our Grandfather’s Economy
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

5. The First and Second Curves
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

6. We live in an Open-Source World

7. We live in an Open-Source World

8. From Hierarchies to Networks

9. The 2nd Curve is Our
Grandchildren’s Economy
Second Curve – Wealth
driven by network business
models

10. The job of our generation is to manage the transition
between our grandfather’s economy and our
grandchildren’s economy.
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

11. Open Source
Economic Development
Linking and
Leveraging
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

12. Open Source
Economic Development
No Single Strategy Many Strategies

13. OSED Strategies Are
Asset-Based
2nd Curve strategies involve linking and
leveraging assets in five “asset
networks:”
– Brainpower
– Innovation
– Quality places
– Community Stories
– Civic Collaboration
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

14. Success in the 2nd Curve
Communities will prosper in the Second Curve
with balanced strategies that...
– Build world class brainpower
– Translate brainpower into wealth through
innovation and entrepreneurship networks
– Create quality, connected places where “hot
spots” can develop
– Create new stories about the community
– Continuously strengthen habits of civic
collaboration

15. Integration of Perspectives
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

16. Building Word-Class Brainpower
• Early Childhood
• Pre-K
• K-12
• Technical programs
• Community college • Brainpower
• Universities
• Workforce Development
• Lifelong Learning

17. The average community knows more about its solid waste
system than it knows about its brainpower system.

18. Mapping Brainpower Flow
Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.

19. What is Extension’s Role in the
Brainpower Game?
• Be seen as an Extension of the
university – the entire university
• Bring STEM/SET resources to the
community
• Bring stakeholders together to map the
flow of brainpower

20. Innovation &
Entrepreneurship
• Introduction of new products &
processes each year
• Only 15% of businesses are typically
innovators – usually have high growth
trajectory
• When 50% of business are
innovators you have an
entrepreneurship/innovation culture

21. Innovation is Not Just “High
Tech”
• A BBQ restaurant starts bottling and selling
sauce
• A dry cleaners develops a new “green”
process and licenses the new process
• A beauty shop develops a new way to train
stylists and goes nationwide
http://www.acenetworks.org/upload_files/file/Regional%20Flavor%20June.pdf

22. A Tale of Two…
• Entrepreneurs
• Cities

23. A Tale of Two Entrepreneurs…
and Two Cities
• Founded in Washington (State) in 1971
• Initial investment - less than $8,000
• 2006 sales were $7.8 billion
• Created 145,800 jobs
• This is their founder

24. A Tale of Two Entrepreneurs…
and Two Cities
• Founded in Washington (State) in 1971
• Initial investment - less than $8,000
• 2006 sales were $7.8 billion
• Created 145,800 jobs
• This is their founder
• This is their logo

25. A Tale of Two Entrepreneurs…
and Two Cities
• Founded in Washington (State) in 1971
• Initial investment - less than $8,000
• 2006 sales were $7.8 billion
• Created 145,800 jobs
• This is their founder
• This is their logo

26. A Tale of Two Entrepreneurs…
and Two Cities
• Founded in Indiana in 1985
• Initial investment - less than $2,000
• 2006 sales were $1 billion
• Created 14,743 jobs
• This is their founder

27. A Tale of Two Entrepreneurs…
and Two Cities
• Founded in Indiana in 1985
• Initial investment - less than $2,000
• 2006 sales were $1 billion
• Created 14,743 jobs
• This is their founder
• This is their logo

28. A Big Difference Between
Starbucks and Papa John’s

29. A Big Difference Between
Starbucks and Papa John’s