PRACE NAUKOWE Uniwersytetu Ekonomicznego we Wrocławiu RESEARCH PAPERS of Wrocław University of Economics Nr 394 Local and Regional Economy in Theory and Practice edited by Elżbieta Sobczak Beata Bal-Domańska Andrzej Raszkowski Publishing House of Wrocław University of Economics Wrocław 2015 Copy-editing: Marcin Orszulak Layout: Barbara Łopusiewicz Proof-reading: Magdalena Kot Typesetting: Agata Wiszniowska Cover design: Beata Dębska Information on submitting and reviewing papers is available on the Publishing House’s website www.pracenaukowe.ue.wroc.pl www.wydawnictwo.ue.wroc.pl The publication is distributed under the Creative Commons Attribution 3.0 Attribution-NonCommercial-NoDerivs CC BY-NC-ND © Copyright by Wrocław University of Economics Wrocław 2015 ISSN 1899-3192 e-ISSN 2392-0041 ISBN 978-83-7695-512-4 The original version: printed Publication may be ordered in Publishing House tel./fax 71 36-80-602; e-mail: econbook@ue.wroc.pl www.ksiegarnia.ue.wroc.pl Printing: TOTEM Contents Preface .............................................................................................................. Dariusz Głuszczuk: Regional e-Platform of Proinnovative Online Loans – A model approach ....................................................................................... Lech Jańczuk: The perennial inancial forecasting as a tool for predicting performance-based budgeting ..................................................................... Małgorzata Karczewska: The gross expenditures on R&D and the economic growth level in the EU countries ................................................................ Bożena Kuchmacz: Man as a source of local social capital ............................ Alina Kulczyk-Dynowska: The spatial and inancial aspects of a protected area as exempliied by the Roztocze National Park.................................... Liliia Lavriv: Strategic approaches to the management of regional development in Ukraine: Current state and conceptual areas of improvement ....... Joanna Ligenzowska: The impact of innovation on the development of the Małopolska Region ..................................................................................... Magdalena Łyszkiewicz: The regional differentiation of inancial autonomy of Polish communes .................................................................................... Grygorii Monastyrskyi, Yaroslav Fedenchuk: Modernization of regional policy of Ukraine in European integration conditions ................................ Artur Lipieta, Barbara Pawełek: Comparative analysis of Polish NUTS 2 level regions in terms of their use of EU grants in 2007–2013 .................. Dariusz Perło: Clusters and smart specializations........................................... Dorota Perło: The soft model of the regional labor market situation of the youth ........................................................................................................... Katarzyna Peter-Bombik, Agnieszka Szczudlińska-Kanoś: Young people on the labor market as a challenge for social policy in selected Polish voivodeships ............................................................................................... Jan Polski: Gordian knots of the regional development in Eastern Poland..... Andrzej Raszkowski: The strategy of local development as a component of creative human capital development process ............................................. Elżbieta Sobczak: Specialization and competitiveness of workforce changes in the sectors grouped according to R&D activities intensity in European Union countries .......................................................................................... Jacek Sołtys: Typology of low developed non-metropolitan sub-regions in the European Union .................................................................................... Edward Stawasz: Determinants of knowledge transfer processes in a region 9 11 18 27 36 45 54 64 72 81 91 100 109 118 127 135 144 153 166 6 Contents Andrzej Sztando: Workshops as a method of social consultations in the process of local strategic planning .............................................................. 175 Maciej Turała: Equalization of territorial units’ incomes – A case study of Poland .................................................................................................... 187 Alla Vasina: Development of infrastructure as an important factor of regions’ economy structuring ................................................................................... 196 Streszczenia Dariusz Głuszczuk: Regionalna e-Platforma Proinnowacyjnych Pożyczek Internetowych – ujęcie modelowe .............................................................. Lech Jańczuk: Wieloletnie planowanie inansowe jako narzędzie predykcji budżetu zadaniowego.................................................................................. Małgorzata Karczewska: Nakłady na badania i rozwój a poziom rozwoju gospodarczego w Unii Europejskiej ........................................................... Bożena Kuchmacz: Człowiek jako źródło lokalnego kapitału społecznego ... Alina Kulczyk-Dynowska: Przestrzenne i inansowe aspekty funkcjonowania obszaru chronionego na przykładzie Roztoczańskiego Parku Narodowego ........................................................................................ Liliia Lavriv: Podejścia strategiczne w zarządzaniu rozwojem regionalnym na Ukrainie: Stan obecny i koncepcja doskonalenia .................................. Joanna Ligenzowska: Wpływ innowacji na rozwój regionu Małopolski ....... Magdalena Łyszkiewicz: Regionalne zróżnicowanie samodzielności inansowej polskich gmin ................................................................................... Grygorii Monastyrskyi, Yaroslav Fedenchuk: Modernizacja polityki regionalnej Ukrainy w warunkach integracji europejskiej ............................ Artur Lipieta, Barbara Pawełek: Analiza porównawcza polskich regionów szczebla NUTS 2 ze względu na wykorzystanie funduszy unijnych w latach 2007–2013 .................................................................................... Dariusz Perło: Klastry a inteligentne specjalizacje ......................................... Dorota Perło: Model miękki sytuacji osób młodych na regionalnym rynku pracy ....................................................................................................... Katarzyna Peter-Bombik, Agnieszka Szczudlińska-Kanoś: Młodzi ludzie na rynku pracy jako wyzwanie dla polityki społecznej wybranych polskich województw ................................................................................. Jan Polski: Węzły gordyjskie rozwoju regionalnego w Polsce Wschodniej ... Andrzej Raszkowski: Strategia rozwoju lokalnego jako element procesu kształtowania kreatywnego kapitału ludzkiego .......................................... Elżbieta Sobczak: Specjalizacja i konkurencyjność zmian zatrudnienia w sektorach wyodrębnionych według intensywności nakładów na B+R w państwach Unii Europejskiej .................................................................. 11 18 27 36 45 54 64 72 81 91 100 109 118 127 135 144 Contents Jacek Sołtys: Typologia nisko rozwiniętych niemetropolitalnych podregionów Unii Europejskiej ................................................................................ Edward Stawasz: Determinanty procesów transferu wiedzy w regionie ........ Andrzej Sztando: Warsztaty jako metoda konsultacji społecznych w procesie lokalnego planowania strategicznego.................................................... Maciej Turała: Równoważenie dochodów jednostek terytorialnych – studium przypadku Polski .......................................................................... Alla Vasina: Rozwój infrastruktury jako ważny czynnik strukturyzacji gospodarek regionalnych ............................................................................ 7 153 166 175 187 196 PRACE NAUKOWE UNIWERSYTETU EKONOMICZNEGO WE WROCŁAWIU RESEARCH PAPERS OF WROCŁAW UNIVERSITY OF ECONOMICS nr 394 • 2015 Local and Regional Economy in Theory and Practice ISSN 1899-3192 e-ISSN 2392-0041 Andrzej Raszkowski Wrocław University of Economics e-mail: andrzej.raszkowski@ue.wroc.pl THE STRATEGY OF LOCAL DEVELOPMENT AS A COMPONENT OF CREATIVE HUMAN CAPITAL DEVELOPMENT PROCESS STRATEGIA ROZWOJU LOKALNEGO JAKO ELEMENT PROCESU KSZTAŁTOWANIA KREATYWNEGO KAPITAŁU LUDZKIEGO DOI: 10.15611/pn.2015.394.15 Summary: The presented study discusses problems related to a local development strategy in terms of creative human capital development. The analysis and critical review of the subject literature, supported by experience in economic and local government practice, were used in the course of conducted research. The core of the study consists in tabular presentation of local development strategy exemplary components in the areas where creative human capital is developed. The paper elaborates on a diagnosis of socioeconomic situation, SWOT/ TWOS analysis, sector structural analysis, PEST analysis, the tree of municipal problems, the analysis of key trends occurring in the environment, mission and vision, development scenarios, the tree of strategic goals, the concept of municipality promotion, the measures for strategic goals implementation, as well as monitoring and evaluating processes. Within the framework of the key conclusions, it can be stated that the strategy of local development constitutes both a useful tool and an element of creative human capital strengthening and developing in a municipality. Keywords: creative human capital, local development strategy, municipality, creativity, social consensus, local development. Streszczenie: W niniejszym opracowaniu poruszone zostały zagadnienia związane ze strategią rozwoju lokalnego w odniesieniu do kształtowania kreatywnego kapitału ludzkiego. Wykorzystaną metodą badań naukowych była analiza i krytyka literatury przedmiotu, wsparta doświadczeniem w zakresie działań na rzecz praktyki gospodarczej i samorządowej. Rdzeń opracowania stanowi tabelaryczne zestawienie przykładowych elementów strategii rozwoju lokalnego, w obszarze których kształtowany jest kreatywny kapitał ludzki. Wyszczególniono diagnozę sytuacji społeczno-ekonomicznej, analizę SWOT/TOWS, analizę strukturalną sektora, analizę PEST, drzewa problemów gminy, analizę kluczowych trendów w otoczeniu, określenie misji i wizji, projekcję scenariuszy rozwojowych, drzewo celów strategicznych, koncepcję promocji gminy, mierniki realizacji celów strategicznych, proces monitoringu Andrzej Raszkowski 136 i ewaluacji. W ramach ogólnych wniosków można przyjąć, że strategia rozwoju lokalnego może stanowić użyteczne narzędzie, element wzmacniania i kształtowania kreatywnego kapitału ludzkiego w gminie. Słowa kluczowe: kreatywny kapitał ludzki, strategia rozwoju lokalnego, gmina, kreatywność, konsensus społeczny, rozwój lokalny. Human creativity is the ultimate economic resource Richard Florida 1. Introduction Local development represents a complex process occurring in a specific and developed space and is made up of numerous factors and determinants. A local development strategy stands for one of the types of strategic studies, dedicated mainly to territorial government units. Nowadays, when the competition between local government units is highly intensified, the role played by such a strategy is absolutely crucial. Such unit development, in the years to come, depends on its strategy substantive value, identified development goals and their implementation efficiency. For the purposes of the hereby study, a certain simplification was accepted, i.e. a local development strategy is understood as a development strategy adopted for a given municipality. Among the selected determinants responsible for the increasing importance of creativity and creative human capital the following can be listed: • the dissemination of 3T concept (technology, talent, tolerance) [Florida et al. 2011], according to which creativity, as opposed to classical production factors, represents an unlimited resource, which is subject to ongoing improvement and renewal. Each human being is observed in this perspective as a potentially creative entity. It is assumed that in the end human knowledge, skills or aspirations are responsible for making a particular place attractive and also construct its cultural, market, social and political potential [Anholt 2007]; • the growing role of culture based creativity which results, to an increasing extent, in generating economic and social values [European Commission 2009], and thus stimulating socioeconomic development. It is determined by manifesting creativity through human sensitivity influenced by, e.g. imagination, intuition or memories. In this particular context creativity becomes the privileged expression of existence, undertaken activities, values, ethics, ingenuity or constructiveness; • the promotion and support (e.g. motivation systems, training cycles, extended delegation of entitlements) for creative approaches and attitudes upgrades the quality of human capital which is of particular importance in the context of local government units’ functioning (municipalities, districts, regions). Creativity can support processes stimulating new ideas, paths of development based on an original, abundant in innovation way of thinking; it represents a peculiar The strategy of local development as a component… 137 unifying agent connecting the world of science, business and art, which results in socioeconomic development and opens it to new horizons constituting a reaction to changes occurring in the surrounding reality. Creative individuals, artists, researchers and scientists frequently co-create products and services featuring innovation, uniqueness, original design or consumer oriented solutions. They enrich products and services by incorporating a distinctive emotional aspect which allows making them more competitive in the times characterized by departing from the classical promotion of functional advantages to the benefit of meeting human dreams, aspirations or needs, resulting from a desire to become distinguished in a particular social group and to feel a very special addressee of a market offer [Raszkowski 2014a]. The objective of the hereby study is to present selected, favorable aspects of local development strategy impacts on the process of creative human capital development. Moreover, the division of strategies into particular, exemplary elements included in its creation and implementation phase has also been provided. 2. Theoretical aspects of local development and creative human capital Human capital, frequently observed as one of the crucial development factors, is capable of transferring creativity into a different existential level at which it is transformed into creative capital [Oort, Raspe 2007]. Science, art and public activity can be listed among the most popular areas associated with creativity. In this understanding, creativity is recognized as approaching problems in a non-standard, experimental, original, unconventional way, capable of identifying new trends, offering certain, seemingly unavailable, solutions and imposing a different perspective for viewing particular situations and therefore a flexible one. The fundamental difference between the classically conceived human capital and the creative one should be expressed in the level of innovation, talent and the openness of mind to new solutions implemented by local communities. In a municipality creative human capital is manifested by solving local problems in a productive and non-standard way, by promoting and supporting pro-innovative attitudes, an ability to observe the surrounding world and to implement external solutions which result in municipal development. Local development e.g. can be approached as the process of transformations occurring in a particular social and territorial system characterized by the specific spatial, economic and cultural characteristics as well as the local needs’ preferences and the hierarchy of values. Nowadays local or regional development should be based on taking advantage of new forms of economic activity resulting from the creative processes. It is determined by meeting the following premises [Karlsson, Johansson 2006]: • environment conducive for new experiences, experiments; • universal composition of existing knowledge and competencies; Andrzej Raszkowski 138 diversified and relatively easily accessible sources of science, business and culture financing; • opportunities for spontaneous and informal interpersonal contacts between local space users and representatives of other units in order to trigger the ingrained creativity; • decentralized, rather than centralized, approach to social and economic environment; • the belief that meeting developmental needs requires extending both resources and action capacity at the disposal; • local organizations presenting a flexible approach to developmental problems and non-standard solutions. One of the major premises underlying creative human capital significance in the process of local development is an assumption that talented and creative personalities who use their knowledge, skills, ingenuity and competencies are decisive in developing competitive advantages of local space. In the discussed context a local development strategy plays the role of a signpost of development and simultaneously constitutes a useful tool for enhancing creativity in local communities. • 3. The shaping and development of creative human capital Table 1 presents selected elements and stages of the development and implementation of a local development strategy, including the characteristics of accompanying processes, which have an impact on creative human capital development in a municipality. One can assume that the presented strategy stages constitute a standard list, whereas their number and substantive depth can change depending which Table 1. The shaping and development of creative human capital in particular phases of local development strategy creation and implementation Exemplary stages of local development strategy creation and implementation 1 The diagnosis of socioeconomic situation Factors, processes exerting impact on creative capital 2 The complex diagnosis of socioeconomic situation in a municipality represents a fundamental and practically indispensable component of all local development strategies. It analyzes the current situation, refers to the past and to the future. At this stage, creativity and productive approach can be mainly manifested by the individuals responsible for document development. This most often refers to external experts and local government representatives in a municipality. Studies are based on the desk research method, even though they can be supported by survey studies. At this point, both adequate analysis and recommendations based on the obtained data require creativity. The strategy of local development as a component… 1 SWOT/TOWS analysis 139 2 The discussed analysis represents one of the most popular tools applied in strategic management as the component of the majority of strategies referring not only to local government units. The analysis potential, in the context of creative human capital development, is quite significant. This particular tool is most often used along with multistage strategic workshops in the course of which the representatives of all social groups in a municipality are offered an opportunity to express their opinions, doubts and creative ideas. This instigates a substantive, frequently emotional, discussion stimulating the creative potential presented by meeting participants. Sector structural analysis The presented analysis, developed by M. Porter, was initially applied (Porter’s five forces analysis) in diagnosing business competitive environment in an economic sector and market segment. Currently it can be effectively used in the process of local government units’ strategy development. The potential for enhancing social creativity is, in this case, based on analyzing the rivalry power of particular municipalities in a region (district, voivodeship), threats resulting from new launches (e.g. other municipalities take over our functions), threats resulting from substitutes (e.g. other municipalities offer alternative forms of spending free time), bargaining power of suppliers (e.g. potential investors), bargaining power of customers (e.g. addressees of public services). The analysis of all the above-mentioned determinants requires both extensive creativity and flexible approach. PEST analysis The analysis is mainly used to examine an organization macro-environment, including a municipality. It represents an interesting and substantively enriching component of a local development strategy. Municipal environment is analyzed in a political, economic, social and technological perspective. Creativity, to a similar extent as in the case of sector structural analysis, is manifested by an adequate selection of factors presenting the highest impact power, or can exert an extensive impact in the future. This is essentially an expert type of method based on knowledge, therefore creative and innovative approach of strategy authors decide about its efficiency and accuracy. Problem trees A problem tree represents a subsequent, apart from SWOT analysis, supportive tool aimed at diagnosing the crucial developmental problems which, in this case, refer to a territorial unit. The tool itself originates from Project Cycle Management methodology, well known from e.g. the process of applying for co-financing projects from the European Union means. A problem tree is used to analyze difficulties, bottlenecks in municipal development and major obstacles which have to be overcome. If the key problem is identified, the reasons and results it generates are analyzed. The construction of municipal problem trees results in obtaining favorable conditions for stimulating creativity since it is developed based on in-depth strategic workshops and a moderated discussion. Moreover, it often identifies important problems the existence of which is not noticed on a daily basis. Andrzej Raszkowski 140 Table 1, cd. 1 The analysis of key trends and tendencies in the environment 2 The process of key trends analysis and tendencies present in the environment represents a crucial component of local development strategy for at least two reasons. On the one hand, an accurate diagnosis of trends allows for the identification of effective strategic goals as an adequate response to changes in an immediate and more distant environment of a municipality and on the other, the above-mentioned diagnosis requires creative attitudes, anticipating the approaching processes, as well as an adequate knowledge level and experience. The discussed factors correlate directly with the development of creative human capital. The definition of mission and Defining both mission and vision of a municipality represents vision one of the most important creative areas in a local development strategy. Creative human capital is, in this case, a desirable element which exerts impact on the quality of a study. Nowadays it is the visionaries and creative personalities who are searched for, since they are capable of having a complex and modern perspective on an entity development by applying a broader cognitive horizon. These components of a study, and especially the vision of development, are crucial for making the most efficient usage of developmental opportunities emerging in a municipality. Therefore, a vision can be understood as a picture of the future we wish to create and influence. It represents the fundamental aspiration which should constitute a common ground for all the members of a local community. The projection of Developmental scenarios, similarly to mission and vision, constitute developmental scenarios a good area for the development of creative capital. They usually result from brainstorming in which strategy authors are involved as well as all interested local entities. The classical division into developmental scenarios refers to the future of a municipality in a positive, neutral and negative perspective. Such an approach deprives us from the possibility of analyzing the intermediary stages and the overlapping processes. Constructing scenarios based on a functional, typical system (e.g. a municipality specializing in business, tourism, modern farming, creative human capital, etc.) represents a more creative, innovative and productive approach. Strategic, operational goals, The goals included in a local development strategy constitute its activities core part and represent, in a sense, a reaction to and a consequence of the carried out diagnosis, conclusions resulting from SWOT analysis, other studies covering a given municipality environment, a problem tree, selected mission and vision, developmental scenarios and all kinds of problems discussed during strategic workshops. In an optimal situation all problematic issues should be reflected in a tree of goals (at the level of strategic, operational goals and planned activities). The improvement of local community life quality is accepted as the leading strategic, horizontal goal in the majority of municipalities. In this case life quality is understood as the combination of material aspects of living (e.g. salary, availability of social and technical infrastructure facilities), as well as the components referring to experiencing the general satisfaction with The strategy of local development as a component… 1 141 2 the living situation (e.g. feeling the prestige resulting from the place of residence, health condition, possibilities for satisfying professional and private aspirations, positive human relations). The concept of municipality promotion (e.g. promotional motto, corporate identity, brand creation strategy) The strategic part referring to a municipality promotion can constitute an element of local development strategy (separate section) or be included in a separate study (e.g. the strategy of municipality promotion). The main task of promotional strategy, having assumed certain simplification, is the dynamization of socioeconomic municipal development, among others, by establishing its strong brand, image, local identity strengthening, activation of local environment with particular emphasis on business sector, by highlighting the unique advantages or the improvement of the overall competitive position. In the case of a promotional offer the areas of creative human capital development are manifested quite strongly. It refers to involvement in preparing some promotional motto, to corporate identity implementation in local government structures or to following the strategy aimed at brand development. Measures of strategic goals implementation The selection of suitable monitoring indicators depends on adopted strategic and operational goals. Taking advantage of just individual indicators may turn out insufficient to observe ongoing transformations or trends and thus complexity, permanency as well as longer time horizon are recommended due to the occurrence of some developmental effects with a certain delay. The selection of indicators does not have to assume any significant creative involvement (standard lists of indicators have already been established and can be taken advantage of); however, there is an opportunity for adopting a non-standard approach and the way of thinking in terms of enriching the existing set of indicators to make it better adjusted to control the implementation of strategic objectives. The process of monitoring and evaluation The process of strategy monitoring (based on the selected monitoring indicators) allows for controlling its effectiveness, efficiency and advantages resulting from its assumptions realization and also facilitates proper evaluation of the followed developmental directions. The discussed processes are of an ongoing nature and thus require continuous involvement on the part of local community (usually a given municipality employee or experts responsible for the strategy development). Such a situation imposes, in a way, certain intellectual tension and paying attention to details enhancing creative capital development. Based on effective monitoring and evaluation current activities are carried out and the earlier adopted goals are tailored and updated according to the existing situation. Within the framework of these processes sometimes the discussed document assumptions become redefined or local development strategy is updated. Source: author’s compilation based on Anholt [2010], Blair, Carroll [2009], Cohen, Eimicke, Heikkila [2008], Flew [2012], Florida [2005; 2012], Leigh, Kotler et al. [1999], Blakely [2013], Olmstead [2002], Porter [1998], Stimson, Stough, Roberts, [2006], Raszkowski [2012, 2014b], Ward [1998], Willauer [2005]. 142 Andrzej Raszkowski entity they refer to (e.g. municipality size, dominating functions of development, historical determinants, location, current development level, etc.). Among the strategy components which have not been listed the following can be included: the convergence of strategy assumptions with external and internal strategic studies, an identification-integration-action formula, the selection and structure of financing sources to carry out goals and projects included in the study. At this point, it should be emphasized that creative capital is co-created by all the users of local space and thus by the representatives of business and science, experts, local government representatives, NGO activists and remaining community members. Each strategic study, including a local development strategy, is used in the case of its successive implementation as well as adopted goals monitoring. With reference to some of the existing studies, one can come across a situation that they are analyzed and evaluated in detail only at the level of their development and approval by adequate local government bodies. In a longer time perspective, set goals are not carried out consistently and in a complex way, they are also not subject to periodical evaluation. In such cases proper remedial actions have to be implemented. 4. Final remarks To sum up, one can conclude that a strategy of local development can constitute an interesting tool for the strengthening of municipal creative human capital. The above-mentioned assumption may turn out helpful for public managers, business practitioners and research workers dealing with local and regional development problems. In the course of the subsequent process, devoted to strategy development and monitoring, local developmental capital can be subject to simultaneous strengthening. Taking advantage of this opportunity is, however, determined by undertaking certain particular activities. If local community is not involved or interested in a developed strategy, it is not possible to influence resulting creative attitudes on its basis. The already mentioned attention and interest of local community can be relatively easily enhanced by means of presenting exemplary packages of strategic goals and solutions which are of particular importance for local residents. Another important component consists in the establishment of social consensus and in working out mutual consent for carried out developmental directions. Furthermore, local development strategy should represent an easily accessible document for the community it refers to, as well as be written in a clear and substantively concise style. 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