{"id":21597,"date":"2026-09-10T11:39:19","date_gmt":"2026-09-10T09:39:19","guid":{"rendered":"https:\/\/www.stadtmanufaktur.com\/?p=21597"},"modified":"2026-09-10T11:39:52","modified_gmt":"2026-09-10T09:39:52","slug":"from-a-turning-point-to-a-turning-point-of-opportunity-the-new-role-of-economic-development-2","status":"publish","type":"post","link":"https:\/\/www.stadtmanufaktur.com\/en\/magazin\/rethink-economic-development\/","title":{"rendered":"Radical Reset: How Would We Develop Economic Development Today?"},"content":{"rendered":"

The pressure to change is growing\u2014it\u2019s time to ask questions about the future<\/h2><\/div>

The discussion about the future of economic development<\/b> will take place. The only question is who will initiate it. Are economic development agencies waiting for treasurers, politicians, supervisory board members, or shareholders to eventually ask, <\/span>Which services will still be affordable in the future?<\/span> Or ask yourselves this much more interesting question first: <\/span><\/p>\n

If we could start over again today\u2014would we actually set up our economic development program the same way all over again?<\/b><\/p>\n

The financial picture is now clear: According to the Federal Statistical Office<\/a>, Germany\u2019s municipal core and supplementary budgets closed 2025 with a financing deficit of 31.9 billion euros\u2014the highest figure since German reunification. In the 2026 KfW Municipal Panel<\/a>, 44 percent of municipalities rate their financial situation as \u201cpoor\u201d; nine out of ten expect their finances to deteriorate. This does not automatically mean that economic development funding must be cut. It does, however, mean that questions regarding impact, priorities, and the allocation of resources are likely to gain in importance.<\/p>\n<\/div>

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Abstract:<\/strong><\/h3><\/div>

The demands on economic development are increasing, while the financial leeway of many municipalities is shrinking. Before this turns into a debate focused solely on cost-cutting, Frank Balkenhol proposes a thought experiment: What if we were allowed to redesign economic development from scratch today\u2014starting with a blank sheet of paper?<\/b><\/p>\n<\/div><\/div><\/div><\/div>

A blank sheet of paper instead of a red pen<\/h2><\/div>

Imagine for a moment that your economic development agency<\/a> didn\u2019t yet exist. No organizational chart. No job descriptions. No projects that have developed over many years. No event formats that have \u201calways\u201d been held. No responsibilities that have evolved over time. <\/p>\n

All you have in front of you is a blank sheet of paper. On this sheet are, first and foremost, the economic challenges facing your region: businesses and their transformation, investments, skilled workers, land, startups, innovation, digitalization, city centre, internationalization\u2014or perhaps entirely different issues.<\/p>\n<\/div>

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\u201cA blank page has no preexisting commitments\u2014but also no savings goals.\u201d<\/p>\n<\/div><\/div><\/span><\/blockquote>

Frank Balkenhol, expert at Stadtmanufaktur<\/strong><\/span><\/div><\/div><\/div><\/div>

What would this economic development initiative look like? And above all: Would it result in exactly the kind of economic development initiative you have today? A \u201cno\u201d would by no means automatically be a negative assessment of the current organization. Many economic development agencies have grown over the course of years or decades. New responsibilities have been added, projects have become established, expectations have shifted, and new policy goals have been formulated. Just because something was once right doesn’t automatically mean it’s wrong\u2014but it also doesn’t automatically mean it’s still the best answer.<\/b><\/p>\n<\/div>

The wrong question might be: Where can we cut costs?<\/h2><\/div>

When financial leeway becomes tighter, a classic reaction comes to mind: cutting budgets, reviewing operating costs, canceling events, merging projects, or not refilling vacant positions. This may be necessary in individual cases. However, it does not answer a more fundamental question: Are we currently optimizing an organization that we would even build the same way under today\u2019s conditions? <\/p>\n

Maybe that’s why we should reverse the order and not start by asking, “Where can we cut costs?” Instead, we come to realize: <\/b><\/p>\n