EXECUTIVE SUMMARY
Since 1965, the Economic Development Administration (EDA) has played a pivotal role in catalyzing economic growth and addressing sudden and severe economic dislocations in distressed communities. In the current budget proposal, EDA seeks to build upon its already successful Regional Innovation Clusters approach to economic development to directly address the needs of auto and manufacturing dependent communities as they transition to the 21st century global economy.
EDA's existing focus on Regional Innovation Clusters will be expanded and refined to address the needs of those urban and rural communities suffering from sudden and severe economic dislocation due to the ongoing economic transformation affecting America's service, farming, natural resource-based, and manufacturing industries. EDA's approach will leverage its long experience employing the Regional Innovation Cluster development technique and integrate its planning, research, technical assistance, and infrastructure construction programs to catalyze the renewal and transformation of our economy in the context of increasing globalization.
As a catalyst for our nation's economic development, EDA leads the Federal economic development agenda by promoting globally competitive regions with its planning, technical assistance, and implementation programs that foster innovation, technology transfer and commercialization, and entrepreneurial activity, while innovating government itself to address changing economic conditions proactively.
EDA gives funding priority to investment proposals that support regional economic development collaborations that include state and local governments, the private sector, and nonprofits. EDA favors investments that promote regional clusters fostering innovation, entrepreneurship and growth by connecting regional economies to the worldwide marketplace.
In FY 2011, EDA will continue to fully fund its network of Economic Development Districts and Indian tribes, University Centers, and Research Program. EDA will continue to address Global Climate Change, enhancing this program's proven contribution to the definition, development and growth of the “green economy,” environmental sustainability, and energy efficiency. EDA will allocate the majority of its remaining funds to the Economic Adjustment Assistance program and the Public Works program.
EDA will focus staff resources on outreach and technical assistance to distressed communities. EDA staff will continue to help communities analyze and understand socioeconomic and demographic data from a wide variety of sources in order to develop strategies to increase competitiveness. EDA staff will help communities cultivate relationships with key business, community, academic and local government partners to pursue regional economic development opportunities, foster innovation, support entrepreneurship, and connect with the global marketplace.
EDA will fund investments that exhibit demonstrable, committed, multi-jurisdictional support from leaders across all sectors, including: public (mayors, city councils, county executives, senior state leadership); institutional (institutions of higher learning); non-profit (chambers of commerce, development organizations); and the private sector (leading regional businesses, significant regional industry associations). EDA recognizes the importance of building upon existing strengths and assets in communities and regions to attract private sector investment and achieve sustainable economic prosperity. EDA’s Regional Offices have developed substantive regional investment strategies for FY 2011.
The strategies are rooted in an economic analysis of each EDA administrative region's strengths, weaknesses, opportunities, and threats (SWOT) to develop tangible goals that exploit the region's assets, buttress its weaknesses, and mitigate the threats it faces. In conjunction with Comprehensive Economic Development Strategies (CEDS) developed through a local planning process conducted by EDA-funded Economic Development Districts (EDDs) and Indian Tribes, EDA Regional Offices have identified opportunities that will produce significant economic benefits in distressed communities.
Funding priority will be given to proposals that respond to sudden and severe economic dislocations (e.g., major layoffs and/or plant closures, trade impacts, corporate restructuring, natural disasters), and to proposals that enable Base Realignment and Closure (BRAC) impacted communities to transition from a military to a civilian economy or accommodate mission related growth.
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