The strength of a single local economy depends on the economic strength of surrounding areas. Economic strategies can achieve economies of scale by being directed to regional areas. A clearer understanding of supplier-producer relationships can assist government in its efforts to boost the economic base and productivity levels of a region. How an economic development strategy is managed or implemented can be as important as the substance of what is done. To be successful, an economic development effort must first define who the customer is, and then meet the needs of those it is designed to serve.
Partnerships are an effective tool toward developing a set of priorities for economic development.
Economic development agencies need to work closely with other partners, such as businesses, nonprofits, and community organizations, to develop a path toward the future. An economic development organization should collect information about its performance so it can assess the impact of its work and evaluate the strengths and weaknesses of its services. Measurement is a prerequisite for accountability. Learning organizations continually work to improve performance by constantly bringing in new information from outside sources and developing learning tools through data that is collected internally, and by redirecting efforts on the basis of this information, whether it is related to the performance of the organization or to new trends in the economy. Investing in Human Capital and International Trade , Darrin Rosha, Sam Schuth and Kristin Watkins, Hubert H. Humphrey Institute of Public Affairs, University of Minnesota, March 1992.