Technology Advances
Economic Development

By Zanetta Doyle, Digest Editor

Technology has impacted the world dramatically to the point where one can do everything from home including shopping and paying bills. Technology and the capabilities provided through the Internet have also played a role in economic development, offering services and providing data to local businesses and governments.

Technologies such as Geographic Information Systems (GIS) and Global Positioning Systems (GPS), allow regional development organizations to assist in economic development activities in the communities they serve. According to NADO’s 2002 Regional Development Organization Survey, 76 percent of regional development organizations use GIS/GPS. Approximately 60 percent use GIS/GPS technology for economic development, transportation and land use planning.

In addition, a study by the Pew Internet and American Life project says an estimated 68 million Americans have used government Web sites and 60 percent of those who use government Web sites say the process has improved government interaction. Regional organizations are also planning and implementing e-government projects and initiatives to expand local governmental services.

Many regional development organizations use the Internet to obtain needed information quickly and efficiently, thus accelerating the economic development planning process.

Technology Impacts Economic Development

The Lower Savannah Council of Governments (LSCOG) in Aiken, South Carolina, an EDA-funded district, embarked on the Regional Economic Geographic Information System (REGIS) project four years ago to assist economic developers within the six-county region to access Geographic Information Systems (GIS), maps and data through the Internet, as well as provide them with the training needed to customize maps. “One of the biggest advantages of this technology is that anyone can access our server through the Internet, and obtain information that they need,” said Eric Thompson, Executive Director of the Lower Savannah COG.

Economic developers often turn to the Lower Savannah COG for maps and other information that will help to bring business and industry to the area, which in turn provide jobs to citizens of the region. This unique system gives economic developers access to digital maps through a satellite hook-up. The first phase of the project equipped each of the six economic development agencies with a PC workstation, a CD writer, a DirecPC satellite receiver and entry-level GIS software. GIS training was also provided. The second phase involved a wireless microwave connection between LSCOG and a local Internet service provider, which exceeded the speed of a typical T-1 line, and allowed for the high bandwidth Internet access needed to process maps. A custom map server and the server software ArcIMS, which they obtained from Environmental System Research Institute (ESRI) allows LSCOG to process requests for maps and spatial data.

Sixty percent of the project was funded with a grant from the Economic Development Administration (EDA). The LSCOG provided an additional $40,000.

“Initially, our target was to provide information to economic developers, but now local government officials as well as engineers have been able to get information because of the Internet accessibility,” said Jennifer Dole, Director of Planning for the Lower Savannah COG.

“The Internet is fast becoming the lifeblood to rural areas that don’t have access to information,” said Thompson. “The cliché of being the wave of the future is no longer applicable because it is actually the wave of right now, as all commerce and business opportunities can be achieved right from your desktop.”

Mapping Through InfoMentum

In 1995, The Appalachian Council of Governments (ACOG), in Greenville, South Carolina, an EDA-funded district, partnered with county governments, public and private utilities, and the Appalachian Regional Commission to address the technical, financial and political challenges of providing a standardized set of research tools to all economic developers in the region. As a result, InfoMentum, a program that provides a decision support system to aid regional marketing, industrial recruitment and economic development in upstate South Carolina was developed.

InfoMentum, a 2002 NADO Innovation Award winner, provides a suite of services including a customized Geographic Information System (GIS) application providing access to multiple layers of data and maps; the Fact Finder Database; and research and technical assistance. InfoMentum is integrated into the economic development activities of six upstate South Carolina counties, major utilities, and numerous businesses.

Direction for this program comes from a public/private board representing county governments, private sector entities and the Appalachian Council of Governments. Funding is provided by the counties, private sector investors, and contracts. ACOG provides staff for technical support, database design/maintenance, training, administration and marketing.

The economic impact of InfoMentum has been significant, as it has helped create over 48,000 new jobs in manufacturing and distribution between 1995 and 2000, and total capital investment increased over 260 percent since the development and implementation of InfoMentum. “We are really excited about this technology, as it gives its users a unique opportunity to attract industry and create jobs in upstate South Carolina,” said Bob Strother, Executive Director of ACOG.

“InfoMentum is an important tool that economic developers can use to do their jobs better,” said Carol Andersen, Information Services Director of ACOG. As for the future of this technology, ACOG is currently planning to expand the program by creating an interactive mapping application for the Internet to provide decision support tools for economic development. It would serve as an extension of services already provided through InfoMentum.

“The Internet will continue to play a huge role for rural communities, because it puts rural areas on an even keel with urban areas. It allows economic developers to quickly exchange information which will hopefully create new economic opportunities,” commented Andersen.

For more information contact:

Eric Thompson or Jennifer Dole of the Lower Savannah COG at 803/649-7981 or email ethompson@lscog.org or jdole@lscog.org.

Bob Strother or Carol Andersen of the Appalachian Council of Governments at 864/242-9733 or email strother@scacog.org or Andersen@scacog.org.

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