A research report submitted to the Wits Business School, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Innovation Studies.
March 2015 / The purpose of the research is to identify interventions required for Local Economic Development Agencies (LEDAs) to achieve their role in supporting local innovation.
This study uses a qualitative research methodology of inquiry and analysis of LEDAs. The methodology is based on a process in which themes are developed from categories that emerge from the analysis of data collected through techniques such as unstructured discussions with most of the Industrial Development Corporation (IDC) grant-funded LEDAs’ management and administrative personnel; parent-municipalities’ management; political leadership (mayors and councillors); observations, documented case studies on the five (5) LEDAs under study (ILembe, ASPIRE, UMhlosinga, Mandela Bay, and Lejweleputswa); and other LEDAs within the South African context, and those in other developing and developed countries. Given that the IDC has to date funded almost thirty (30) LEDAs throughout the nine provinces of South Africa, the five (5) LEDAs sampled, have been purposively selected.
This study addresses the challenges that LEDAs face if they are to be successful. These challenges involve striking the right balance between operational freedom or agility and the need for effective policy and strategy leadership and supervision from the public bodies involved. There are also critical communication challenges that have to be addressed. Despite widespread acceptance within government of the need to pursue active economic development policies, it is not immediately apparent to citizens or media commentators that this is a natural arena for local government activity, and there is limited appreciation of what is appropriate local development activity or investment.
From the study, it is evident that, since local economies respond best to integrated approaches that combine physical, social, economic, and environmental interventions, and these are activities where responsibility is usually widely dispersed amongst a range of bodies and authorities, it is critical that there is effective leadership both within the LEDAs and within the wider range of bodies to achieve co-
ordination. Leadership overcomes institutional rigidities and gaps in mandates by fostering an integrated vision and collaborative organisations. At the same time, the possible absence of leadership in local government, in the business community of a locality, and in the LEDAs themselves, would make an integrated approach and public confidence very difficult to achieve and sustain.
Drawing on the results of the study on the five (5) IDC-funded LEDAs, it is evident that there is overwhelming confidence in the LEDA model across local municipalities within the South African landscape. This is also pertinent in most developing countries, as is also the case in Organisation for Economic Co-operation and Development (OECD) countries. Through analysing the findings of the study, it has emerged that research consistently proves that historically, numerous developed and developing countries have opted to use the LEDA models as a preferred vehicle to implement local economic development at local and district municipality levels. However, for all LEDAs, there is a primary need to first define what value the LEDA will add, with clear goals and roles to its locality, before it is established.
Furthermore, the analysis does not focus only on the LEDA in isolation, but focuses on the coherence and efficiency of how all the relevant institutions and formations in a locality work together in a ‘local innovation system’ (LIS). There is a tendency in the economic development arena to expect that a LEDA should succeed ‘on its own’ rather than by working within a local innovation system (LIS). This study has observed that, for LEDAs to be effective, they should operate within the well designed and co-ordinated local innovation system. This implies that the system of organisations for local governments must be well managed and integrated. This requirement must not be placed on LEDAs alone, but on all the relevant institutions and formations within a particular LEDA’s locality.
It can be concluded from the findings mentioned in Chapter 4 that there is a ‘golden-thread’ that is characteristic of the five (5) LEDAs discussed in the study. This ‘golden-thread’ serves as a recommendation for LEDAs to adopt for them to be successful in achieving their mandates.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/20936 |
| Date | 25 August 2016 |
| Creators | Nene, Ornet James |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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