T HE
C YLINDER
N ARRATIVE
This is not traditional economic development. This is economic development as a deliberate, collaborative, engineered system— strategy is data-driven, where structure follows strategy, and results are measurable and repeatable.
EKC’s Cylinder Model is not simply a metaphor—it is the operating system’s architectural blueprint for the region.
3.
A Focus on the Enterprise
EnterpriseKC shares the widely held belief that the most effective way to drive regional economic growth is to grow clusters of enterprises . Clusters are simply groups of similar companies in a defined geographic area. Clusters share common markets, technologies, and workforce skill needs, which are often linked by buyer-seller relationships —similar to how a suite of software applications share a common operating system and common infrastructure.
As enterprises grow, regional businesses also grow. Every Cerner, every Koch Industries, every Euronet, every Hallmark creates the need for more accountants, more lawyers, more restaurant workers, more bankers, more healthcare workers – more businesses! By managing these clusters through the Cylinder Kernel, EnterpriseKC can:
• Coordinate targeted workforce strategies based on industry-defined specifications.
• Drive innovation and commercialization through shared infrastructure.
• Facilitate collaboration across clusters and across institutions.
• Optimize resources and policies for maximum ROI.
Each cluster’s development is part of a coordinated and collaborative orchestration, ensuring alignment, interoperability, and compounding impact.
The Power of the Enterprise on Economic Development
Just as an operating system increases productivity and performance across devices, EKC’s operating system for economic development works to increase the economic output of the entire region. Using a data science model inspired by economist Enrico Moretti ( Local Multipliers . American Economic Review , May 2010), EnterpriseKC measures the first order (direct) and second order (indirect) economic impact of enterprises in the region:
• Direct impacts include local employment, payroll, and capital investments.
• Indirect impacts include job creation in supply chains, service sectors, and community infrastructure.
Using Moretti’s model EKC worked with data scientists to create an algorithm that quantifies the economic lift an enterprise has on the regional economy. Inputs to the algorithm include revenue, local employment, total local payroll, average salary, and the ratio of skilled versus unskilled workers at a given enterprise. The output is an estimate of the new local jobs created outside of the enterprise due to the presence of the enterprise in the local economy. In addition, the model projects the spending impact from the enterprise’s local employment base on things like housing, transportation, healthcare, entertainment, clothing, and other items purchased from businesses within the region.
The following chart illustrates the economic impact of two enterprises in the region: Garmin and Honeywell FMT.
EKC_ADM_GEN_0015
Rev.11.11.25
Page 4 of 18
Made with FlippingBook - Online magazine maker