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Midwest auto communities face a serious time lag. They must build the foundations of a 21st century economy with policy tools developed for a 20th century economy. Pouring the existing array of federal programs out on the table is a bit like asking an auto mechanic to repair an electronic ignition system with a pair of rusty pliers.

Federal investments are and will continue to be important to financing the transformation of the Midwest’s auto communities. But money alone is not enough. These communities need innovation – new collaborations and networks that can deliver solutions to their strategic challenges. These solutions, to be transformative, must be replicable, scalable and sustainable.

On March 12, 2010, the Brookings Institution convened four Midwest regions that have been hit hard by downsizing in the domestic auto industry. This session, the “Auto Communities Roundtable”, reviewed different strategies at work in Mid-Michigan, Southeast Michigan, Central Indiana and Northeast Ohio.

The Roundtable participants explored new partnership opportunities among their region, the federal government and national foundations. You can explore the materials prepared for the Roundtable on this page: http://drop.io/autocommunities

Based on my reading of the presentations in this session, Midwest auto communities need innovative investments in five areas of strategic focus:

1. Brainpower and Talent: Transforming antiquated education and workforce development systems to be more innovative, flexible and productive.—

Our current systems produce low rates of literacy, high rates of drop-outs, and weak post-secondary technical skills. We need to develop systems that are more focused on 21st century skills, experiential learning, career pathways, and post-secondary certificates and degrees.

2. Innovation and Entrepreneurship: Building responsive supports for innovative companies and entrepreneurs to develop new products and markets. –

Auto communities need a new generation of economic development supports for existing companies and entrepreneurs. By concentrating on new products and new markets, these firms can reliably grow an economy from the inside out.

3. Quality, Connected Places: Creating quality, connected hubs of mixed-use investment, while managing the shrinkage of their city. –

The physical development of auto communities focuses on stimulating economic growth through regeneration and reuse. This challenge involves balancing abandonment and shrinkage with developing connected concentrations of mixed-use investment.

4. New Narratives and Networks: Promoting new narratives and clusters of innovation anchored by colleges and universities.—

The next economy for auto communities will link and leverage the technologies, production capabilities and assets that emerged from building automobiles and parts. These strengths will be combined in open networks of innovation that support the development of high growth firms.

5. Leadership and Collaboration: Strengthening civic habits of collaboration and new forms of regional governance.—

Midwest auto communities face gaping budget deficits as the cost of public services has outrun the ability of local governments to generate revenue. Innovation in providing government services, not simply cost cutting, points the way ahead.

Last 5 posts by Ed Morrison

• Signing off - February 3rd, 2012
• "The current global development model is unsustainable" - February 1st, 2012
• Market opportunities for developing Chicago's green economy - January 29th, 2012
• Plain Dealer flubs its explanation for firing Tony Grossi - January 27th, 2012
• Linking and leveraging university assets to strengthen regional economies - January 27th, 2012

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