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All Journal The Asian Journal of Technology Management (AJTM) The South East Asian Journal of Management
Bartjan W Pennink
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Decision Sciences, Operations Research & Management

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From Family Based to Industrial Based Production: Local Economic Development Initiatives and the HELIX Model Pennink, Bartjan W
The Asian Journal of Technology Management (AJTM) Vol 5, No 2 (2012)
Publisher : School of Business and Management Institut Teknologi Bandung

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Abstract

To build a strong local economy, good practice tells us that each community should undertake a collaborative, strategically planned process to understand and then act upon its own strengths, weaknesses, opportunities and threats. From this perspective we start with the local communities but how is this related to the perspective from the Helix model in which three actors are explicitly introduced: the Government, the Industry and the Universities? The purpose of local economic development (LED) is to build up the economic capacity of a local area to improve its economic future and the quality of life for all. To support  the Local Economic Development in remote areas,   a program  has been developed based on the LED frame work of the world bank. This approach and  the experiences over  the past years with this program are  described in the first part.  In the second part of the paper, We analyse work done with that program with the help of the social capital concept and the triple helix model.  In all cases it is important to pay attention to who is taken the initiative after the first move (and it is not always the governance as actor) and for the triple helix we suggest  that the concepts of (national) Government, Industry and University need a translation to Local Governance Agency, Cooperation or other ways of cooperation of local communities and Local Universities. Although a push from outside might help  a local region in development the endogenous factors are  also needed. Keywords: Triple Helix model, Local Economic Development, Local Actors, Double Triangle within the Helix Model
Including capabilities of local actors in regional economic development: Empirical results of local seaweed industries in Sulawesi Vredegoor, Mark T. J.; Pennink, Bartjan W
The South East Asian Journal of Management Vol. 7, No. 2
Publisher : UI Scholars Hub

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Stimson, et al. (2009) developed one of the most relevant and well known model for Regional Economic Development. This model covers the most important factors related to economic development question. However, this model excludes the social components of development. Local community should be included in terms of the development of a region. This paper introduced to the Stimson model “Skills” and “Knowledge” at the individual level for local actors indicating the capabilities at the individual level and introduced “Human Coordination” for the capabilities at the collective level. In our empirical research we looked at the Indonesian seaweed market with a specific focus on the region of Baubau. This region was chosen because there are hardly any economic developments. Furthermore this study focuses on the poorer community who are trying to improve their situation by the cultivation of Seaweed. Eighteen local informants was interviewed besides additional interviews of informants from educational and governmental institutions in the cities of Jakarta, Bandung and Yogyakarta. The informants selected had a direct or indirect relationship with the region of Baubau. With the support of the empirical data from this region we can confirm that it is worthwhile to include the local community in the model for regional economic development. The newly added variables: at the individual level; Skills and Knowledge and at the level of the collective: Human Coordination was supported by the empirical material. It is an indication that including the new variables can give regional economic an extra dimension. In this way we think that it becomes more explicit that “endogenous” means that the people, or variables closely related to them, should be more explicitly included in models trying to capture Regional Economic Development or rephrased as Local Economic Development.
Co-Authors Vredegoor, Mark T. J.