Economic development is one of those vital things that is responsible for growth, leading to new job opportunities and an improved quality of life, which includes easier access to opportunities created by economic growth for current as well as future residents. Each region’s economic development team works primarily to attract and retain jobs in their specific regions and grow the existing industry sectors.
The partnership also prioritises aligning the region with a vision for growth that leads to an increase in participation in the local economy. Even though the work of developers is often overlooked, building as well as sustaining the regional economy is a vital element when it comes to a successful community. Here is why economic development is important to a region’s economy.
1. Industry Diversification
A very important part of economic development is to diversify the economy which helps decrease a region’s vulnerability to one particular industry. Although tourism plays a crucial role when it comes to creating jobs in the region, economic development aims to grow industries outside of tourism, such as:
- Aviation
- Advanced manufacturing
- Aerospace and defence
- Biotechnology and pharmaceuticals
- Autonomous vehicles
- Gaming
- Business services
- Financial technology
- Entertainment technology
- Medical technology
- Innovative technology
- Life sciences and healthcare
- Logistics and distribution
2. More Job Opportunities
Economic developers are known to offer vital assistance and information to businesses that create jobs. Focusing on connecting existing and new-to-market companies with the required partners and resources for expansion has proved to be useful.
3. Business Expansion and Retention
The majority of the jobs in many region’s economies are created by the current businesses that are looking to expand their operations. The team of partnership economic development are responsible for executing several business expansion and retention visits to local businesses just in the previous year to help with their operational requirements. Regional growth plans in Queensland play a big role in the development.
4. An Increase in Tax Revenue
The presence of more companies in most regions leads to increased tax revenue for community projects as well as local infrastructure. Economic development can also assist major job creation initiatives.
5. Economy Fortification
Economy development plays a major role in helping safeguard the local economy from downturns by attracting and then expanding the major employers of the region. As an example, when the COVID-19 pandemic had a negative impact on the global leisure as well as the hospitality industry, the majority of technology companies shifted their focus to clients in the region’s simulation, modelling, and training sectors.
6. Better Quality of Life
Improved infrastructure and more jobs enhance the region’s economy and lift the standard of living for the residents. Place quality holds more importance than ever when it comes to attracting a bigger talent pool in times of increased remote workers. Furthermore, inclusive economic development work aims to support the quality of life in the community through initiatives like supporting affordable housing, upskilling opportunities, entrepreneurship and innovation for the local workforce. Such initiatives assist in offering access and capabilities to the current workforce to make use of new high-wage job opportunities that are created by economic development efforts.
Wrapping Up
The role of economic development when regional development cannot be underestimated. The reasons mentioned in this article just highlight how crucial economic development is for each region.
