Economic Innovation International, Inc. 

Best Practice Model Selection Standards

 Each of the models to be used as "Best Practices"  will illustrate, positively or negatively, one or more of the following standards:

1.    Scale:    To make a difference, a “best practice” must achieve a scale necessary to impact the mainstream economy, rather than operate as a good pilot effort on the margin.

2.    Market driven:  A “best practice” economic development initiative aims to improve the effectiveness of the market place, rather than simply creating public services.  The goal is to impact thousands of private sector decisions.

3.     Leverage:  A primary means to achieve scale and change the market is to use public dollars, incentives or requirements to leverage vastly greater private investments or actions.

4.     Self-Sustainability:  A “best practice” must demonstrate the ability to endure through political and fiscal changes.  Its governance and financial structures must therefore balance independence with accountability.

5.     Private Ownership:  When private organizations (businesses, unions, universities, etc.) control an economic development initiative, they take it far more seriously than if it is publicly owned and controlled.  The most effective “programs” are often those run by the private sector.

6.     Flexibility/Adaptability:  Markets change.  “Best practices” are those which are structured to allow change as the market place changes (e.g., no legislative micro-management).

7.     Performance Driven:  In exchange for flexibility comes accountability.  Outputs and outcomes, not inputs, must be measured, and management must be held accountable.

8.     Private Management Standards:  “Best practices” succeed, in part, because they are managed by the best.  Good management requires incentive-driven pay on a par with other similar private sector opportunities.

9.     Customer Driven:  “Best practices” carefully identify who their customers are, focus on delivering services that meet the needs of that customer base, offer choices, and distinguish customers from constituencies.

10.   Regionally and Sectorally Focused:  State economies are made up of multiple regional economies and business sectors.  “Best practices” often allow for ownership and implementation at the regional and sectoral levels, so initiatives can be tailored to different regions and industries.