Plenary talk by Michael Shuman shuman@igc.org <www.smallmart.org> Guest blogged by Brady Beecham Lois vs. Tina. Who are these girls? (Please see Nils Klikenberg's explanation of LOIS & TINA in the comments section below.) Why are they hiring so many people? I arrived a bit late to the talk, so didn't hear the translations of the acronyms, but it seems to me that Lois is a local girl while Tina is definitely from the next town ... or perhaps they are local and foreign businesses. While it may be more likely the latter than the former is the topic of discussion, allow me some creative license at the end of the day and let's personify. So what is the difference between dating somebody local and dating out of town? To start off, local Lois is more likely to settle in town, because it's harder to leave town if your farms, friends and family are there or if you have a sentimental spot in your heart for seeing the acorns drop there in the autumn. Local girls may also be more susceptible to community shame and local politics, for better or worse. On the other hand, out-of-town Tina, who's never lived there in the first place, finds that leaving isn't so tough if things in town get tough, and may not particularly care what your parents or the neighbors think. Lois will shop at the local grocery, go to the local movie theater and generally spend locally, while Tina will probably earn locally and spend somewhere else. In economic terms, Lois is better at economic multiplication. Lois understands what the town culture is like and is willing to live smaller and more uniquely local. For economies, this translates into local relevant development which is tailored to local needs, fosters local people and creativity and can be cool. The problem is that it's still enticing to date outside. The local girls don't seem as sophisticated, well-educated or global. Despite that criticism, it seems that most people still date local, particularly in rural areas and on campuses. And as with local girls, local companies often innovate and succeed even better than companies from outside. They also compete well when set head-to-head with Tina in almost every sector of the economy, even though Lois has loss 3-4% over Tina in the last decade, particularly in the retail sector. Is that because Lois can't compete, or just because Tina gets money from the government and investors and laws aren't applied to them as strictly. Or, back to the metaphor, because Tina has a bigger allowance, a hot car and no curfew? But Lois still has some things going for her. For one thing, there is a preference for locals partly because it's easier to see Lois, while Tina, even though she has a cool car, still has to drive a long way to see you, which gets harder for her as the cost of each aliquot of gas grows. At this point the metaphor weakens considerably, so if you've followed me to here, try this list for ways that universities and others can support locals: 1. Plug the leaks between local capacity and production 2. Foster entrepreneurship which will stay local 3. Business alliances with local businesses, delivery and cooperatives 4. Issue stock in local businesses 5. Think buying local first 6. Public policy reform (big box impact study, procurement preferences, securities and incentives law) In summary, choosing local is choosing wisely!