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accesstocapital,localinformationsystems, <br />suppliesoflocallyproducedrawmaterials, <br />andeducationalsystems.Asaresult,manyof <br />theSBIrecommendationsseektostrengthen <br />TheSBITaskForceusedHarvardEconomist <br />thesecorefactors. <br />MichaelPorter?s?DiamondofCompetitive <br />Advantage?asitsmodelforbusinessandjob <br />This addresses the <br />development.4 Afteryearsofresearch,Porter <br />number and make-up of knowledgeable and <br />foundthatfourfundamentalconditionsmust <br />demanding local customers. <br />berobustforindustriestogrow <br />andgeneratequalityjobs.Eachofthefour <br />Porter?sresearchfoundthatthemost <br />elementstheothersandweakness <br />successfulindustriesgrowwhere <br />inanyoneofthemcanundermineanentire <br />knowledgeablelocalcustomersexistwhoput <br />industryoreconomy. <br />pressureonlocaltocontinuallyimprove <br />theirproductsandservices.Forexample,the <br />Porterfoundthatinthemostsuccessful <br />organicandnaturalfoodsindustryinLane <br />efforts,governmentplaysanimportantrole <br />Countygrew,inpart,duetothenumberof <br />bycreating,supporting,orstrengtheningeach <br />localconsumerswhowantedhealthyfood. <br />ofthefourconditionsthatarevitaltoprivate <br />Threekeyelementsdeterminetheimpact <br />sectorsuccess.TheSBITaskForcetherefore <br />oflocaldemand:thenatureofcustomer <br />focusedontheroleofboththeprivateand <br />needs;thetiming,size,andmakeupofearly <br />publicsectorsinsustainablebusinessand <br />demand;andthewaybusinessestranslate <br />jobdevelopment.Thefourelementsare <br />localcustomerpreferencesintoexternal <br />describedbelow. <br />markets.Governmentprocurementcan <br />playamajorroleinbuildingdemandfor <br />These are the basic <br />products,especiallyearlyinthedevelopment <br />inputs necessary for any industry to successfully <br />andmarketdiffusionstages.Theappendix <br />grow and compete. <br />ofthereportincludesasummaryofhowthe <br />purchasingpoliciesoftheCityofPortlandand <br />Factorconditionsincludetheskills, <br />KingCounty,Washingtonhavehelpeddrive <br />knowledge,andcostsoflocallabor; <br />themarketforsustainablegoodsandservices. <br />availabilityofkeyrawmaterials;thelocal <br />climate;availabilityofcapital;theconditions <br />Aconsistentthemeheardfrompractitioners <br />oflocalinfrastructure(communications, <br />throughouttheSBIwastheneedtoeducate <br />transportation,healthcaresystems);and <br />localconsumerstobuilddemandforlocally <br />proximitytomajormarkets.Factorconditions <br />producedandsold,sustainablepracticesand <br />canbeinherited,suchasourarea?sabundance <br />products.Anotherthemewastheneedforthe <br />ofgoodagriculturalland,andcreatedthrough <br />CityofEugeneandotherlocalgovernments <br />investments,suchaswhengovernmentbuilds <br />tohelpstimulateearlydemandforsustainable <br />roadsandfundseducation. <br />productsandservicesthroughitspurchasing <br />decisions.EugeneCitygovernmentspent <br />Someofthemostcommonthemesheard <br />overseventeenmilliondollarsonpurchases <br />duringtheSBIDiscoveryPhasewerethe <br />inFY2006,withthemajoritybeingspent <br />needtoimprovetheskillsandknowledge <br />inthelocalareaorthe <br />oflocalbusinessmanagersandworkers, <br /> <br />