From Ed Morrison's always insightful and expert ED Pro website are his predictions for 2005 - feel free to add yours as comments to this posting.

Predictions for 2005

Predictions are always a tricky business, but they're fun to think about. Here's
what I expect to see in economic development in the coming year.

Awareness of the skills gap will start to sink in:
We
face a basic imbalance in our workforce system. Baby boomers are
retiring, and we are not producing enough skilled workers with post
secondary education. (Too many kids are dropping out of high school,
and too many kids are graduating from high school with weak skills and
no career plans.) So, the skills gap is growing. Here's an example from
Akron. Here's another from Michigan.

More regional partnerships:
An
increasing number of EDPros will recognize that the future lies in
regional alliances. The reason is simple: In a global world, no one can
afford to go it alone. It is only within a region that businesses can
find the brainpower and innovation networks they need to be globally
competitive. We'll continue to see our share of regional initiatives
undercut by silly considerations like old high school football
rivalries, but overall, more EDPros will figure this out.

Growing backlash against incentives:
The
$250 million deal for Dell will raise questions in North Carolina, just
as the $3.2 billion Boeing deal has done in Seattle. (That deal may
have to be reworked if the World Trade Organization intervenes.) The
Ohio federal appellate decision will embolden incentive critics, and
you can expect bi-partisan efforts, like this one, to reduce subsidies to companies.

More focus on incentive accountability and "clawback provisions":
Increasingly,
state and local governments will be negotiating tougher incentive
agreements. In part, the move will be defensive. In an era of tight
government budgets, no political leader will want to appear "soft" on
an incentive deal. At the same time, state legislators will be pressing
for more accountability, like this legislation recently passed in Ohio.

More emphasis on entrepreneurship:
Rural
areas, especially, are gradually learning that entrepreneurship offers
the best pathway to higher prosperity. Business recruitment -- long the
single strategy in many places -- has begun to play itself out. Here's
an article from Georgia that makes the point.

A new focus on innovation:
Manufacturing
is not dead in this country, nor will it be in our lifetimes. But
successful manufacturers will be those who innovate with new product
and process improvements. Prompted by the new report InnovateAmerica
from The Council on Competitiveness, we should begin to understand that
innovation represents our best answer to globalization.

More international partnerships:
The
weak dollar will help us wake up to the opportunities in the global
market. More communities will be following the lead of places like
Hampton Roads, Fairfax County, and Tucson in developing innovative
global partnerships. The regions that will be ahead of the curve on
this trend will see their efforts as building global innovation
networks.

Growing visibility for sustainability:
The
high costs of sprawl will start to bite local and state budgets even
harder. In some regions, water shortages will push sustainability
issues to the front. Finally, a backlash against Big Box retailers --
particularly Wal Mart -- will raise questions about what economic
development really means. At the same time, sustained high oil prices
will lead to new markets in alternative fuels -- biodiesel, ethanol,
wind -- and the growing realization that elements of a hydrogen based
economy are likely to emerge in ten years or so.

More aggressively entrepreneurial colleges and universities:
Across
the landscape of economic development, an increasingly assertive
leadership among our colleges and universities is leading to new roles
in economic development. Soon, we can hope, state legislators and
Congress will wake from their slumber to discover the critical role our
colleges and universities play in our international competitiveness. Learn more.

The emergence of creativity as an economic development driver:
Regular
readers of EDPro News know that I'm no fan of Richard Florida. And this
trend has little to do with his theories of "the creative class".
Rather, this trend emerged in Europe several years before Florida wrote
his book. This ttrend is rooted in the deep connection of creativity to
innovation. This trend also focuses on the emergence of digital media
and the convergence of entertainment and education.

Blurring lines between economic development, workforce development and tourism development:
Profvessionally,
we all grew up at a time when the boundaries separating these fields
were clear. Increasingly, though, we will see professional bridging the
gaps. Communities that foster these conversations will move ahead with
a shared understanding: In this era of global competition, we're all in
the same boat.

New focus on our backyard:
More EDPros will do the math and start pushing ahead with retention and expansion initiatives. Here's an example from Enterprise Florida.
The big leap -- and we might not be ready for it yet -- will come in
realizing that solid "retention and expansion" initiatives are really
innovation initiatives. As Michael Porter points out there's no such
thing as high tech or low tech industries...only high tech or low tech
companies. (In fact, if we're lucky, we'll ditch the term "retention
and expansion" altogether.)

Tighter scrutiny on marketing budgets:
Economic
development money is no longer free, and the recruitment game will come
under tighter scrutiny. Business, media and political leaders will
continue to look for more accountability and metrics. As the economic
development zeitgeist shifts to workforce, innovation and
entrepreneurship, more people will wonder whether marketing budgets
should be so large.