Abstract
In some communities in the Province of Ontario, Canada, economic development functions have been outsourced from departments within the city structure to external organizations such as economic development corporations (EDCs). This study takes an in-depth look at the activities of EDCs, with a focus on the rationale for outsourcing, EDCs’ policies and strategies, cooperative efforts, and the challenges EDCs face. The paper is based on extensive interviews with 21 CEOs/presidents of these corporations. The findings indicate that EDCs are typically private–public partnerships that exist at local and regional levels, that this approach is part of a comprehensive strategy to deal with the changing field of economic development and the uncertain global economy.
Similar content being viewed by others
Notes
In some cases (e.g., with the St. Thomas Economic Development Corporation, about 99 % of the funding comes from the municipality. In other instances, the contribution may be 50 %–50 % split between the municipality and businesses.)
References
Alvesson, M., & Skoldberg, K. (2009). Reflexive methodology: New vistas for qualitative research (2nd ed.). Thousand Oaks: Sage.
Arku, G. (2012). Competition and cooperation in economic development: Examining the perception of practitioners in Ontario. Canada: Manuscript, The University of Western Ontario, Department of Geography.
Baxter, J., & Eyles, J. (1997). Evaluating qualitative research in social geography: establishing “rigor” in interview analysis. Transactions of the Institute of British Geographers, 22, 505–525.
Blakely, E. J. (2001). Competitive advantage for the 21st century: can a place-based approach to economic development survive in a cyberspace age? APA Journal, 67(2), 133–141.
Blakely, E. J., & Bradshaw, T. K. (2002). Planning local economic development: Theory and practice (3rd ed.). Thousand Oaks: Sage.
Blakely, E. J., & Leigh, G. N. (2010). Planning local economic development: Theory and practice. Thousand Oaks: Sage.
Bourne, L., Britton, J. N. H. N., & Leslie, D. (2011). The greater Toronto region: The challenges of economic restructuring, social diversity and globalization. In L. S. Bourne, T. Hutton, R. G. Shearmur, & J. Simmons (Eds.), Canadian Urban Regions: trajectories of growth and change (pp. 236–268). Canada: Oxford University Press.
Bradford, N. (2010). Economic ideas and development strategy: The case of London, Ontario. Paper presented at the Canadian Political Science Association Annual Meeting, 2010. Concordia University, Montreal.
Bramwell, A., & Wolfe, D. A. (2008). Universities and regional economic development: the entrepreneurial University of Waterloo. Research Policy, 37, 1175–1187.
Charmaz, K. (2004). Grounded theory. In S. Nagy Hesse-Biber & P. Leavy (Eds.), Approaches to qualitative research. Oxford: Oxford University Press.
Denzin, N., & Lincoln, Y. (Eds.). (2003). Strategies of qualitative inquiry (2nd ed.). Thousand Oaks, CA: Sage Publications.
Donald, B. (2005). The political of local economic development in Canada’s global cities: new deals and a new politics of scale? Space and Polity, 9(3), 261–291.
Gertler, M. S. (1990). Economic development. In R. A. Loreto & T. Price (Eds.), Urban policy issues: Canadian perspectives (pp. 33–57). Toronto: McClelland and Stewart.
Gordon, V. (2009). Perceptions of regional economic development: can win-lose become win-win? Economic Development Quarterly, 23(4), 317–328.
Hay, I. (2005). Qualitative research methods in human geography (2nd ed.). New York: Oxford University Press.
Hesse-Biber, S. N., & Leavy, P. (2004). Approaches to qualitative research: A reader on theory and practice. Oxford: Oxford University Press.
Kitchen, H. M. (1985). The role for local governments in economic development, Ontario economic council discussion paper series. Toronto: Queen’s Printer.
McGuire, M. (2000). Collaborative policy making and administration: the operational demands of local economic development. Economic Development Quarterly, 14(4), 278–291.
Olberding, J. C. (2002). Diving into the “Third Waves” of regional governance and economic development strategies: a study of regional partnerships for U.S. Metropolitan areas. Economic Development Quarterly, 16(3), 251–272.
Ontario (2007) Ministry of the Attorney General—Not-for-Profit Incorporator’s Handbook. Retrieved June 10, 2010, from http://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/nfpinc/.
Ontario Municipal Act, 2001 at www.e-laws.gov.on.ca.
Raco, M. (2000). Assessing community participation in local economic development—lessons for the new urban policy. Political Geography, 19, 573–599.
Reese, L. A. (1992). Explaining the extent of local economic development activity: evidence from Canadian cities. Environment and Planning C: Government and Policy., 10, 105–120.
Reese, L. A., & Sands, G. (2007). Making the least of our differences? Trends in local economic development in Ontario and Michigan, 1990–2005. Canadian Public Administration, 50(1), 79–99.
Rondinelli, D. A. (2001). Making metropolitan areas competitive and sustainable in the new economy. Journal of Urban Technology, 18(1), 1–21.
Rubin, H. J. (1988). Shoot anything that flies: Claim anything that, falls: conversation with economic development practitioners. Economic Development Quarterly, 22, 187–220.
Sands, G., & Reese, L. A. (2008). Cultivating the creative class: and what about Nanaimo. Economic Development Quarterly, 22(1), 8–23.
Tassonyi, A. T. (2005). Local economic development: Theory and the Ontario experience (ITP Paper No. 0511). Toronto: University of Toronto, Rothman School of Management Institute for International Business.
Walks, R. A. (2011). Economic restructuring and trajectories of socio-spatial polarization in the twenty-first century Canadian City. In L. S. Bourne, T. Hutton, R. G. Shearmur, & J. Simmons (Eds.), Canadian Urban Regions: Trajectories of growth and change (pp. 125–159). Canada: Oxford University Press.
Wolfe, D. A., & Creutzberger, T. (2003) Community participation and multilevel governance in economic development policy. Report commissioned by the Panel on the Future Role of Government, Province of Ontario, August.
Wolfe, D. A., & Gertler, M. S. (2001). Globalization and economic restructuring in Ontario: from industrial heartland to learning region? European Planning Studies, 9(5), 575–592.
Wolfson, J., & Friesken, F. (2000). Local response to the global challenge: comparing local economic development policies in a regional context. Journal of Urban Affairs, 22(4), 361–384.
Acknowledgements
This research was conducted with financial support from the Social Sciences and Humanities Research Council of Canada (SSHRC). Special thanks to Catherine Oosterbaan and Margaret Milczrek who provided various assistance throughout this study. Finally, the author wishes to thank all interviewees who participated in the interviews. Your time and perspectives on the topic are greatly appreciated.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Arku, G. Outsourcing Functions to Economic Development Corporations: Exploring the Perceptions of Officials in Ontario, Canada. Public Organiz Rev 13, 49–70 (2013). https://doi.org/10.1007/s11115-012-0193-8
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11115-012-0193-8