A regional approach: Q&A with Chris Murphy, 1st Source Bank.

• Position: Interview

Michiana Advantage sat down with the chairman and CEO roof South Bend-based 1st Source Bank, Christopher J. (Chris) Murphy III, to talk about his perspectives on regional economic development in Michiana.

Michiana Advantage: "We know you're a big proponent of regional economic development initiatives. Why do you think regionalism is important in today's economic environment?"

Murphy: "I've been involved in regionalism for a long time and served as chair for the Regional Approach for Progress. It was originally established as means to bring leaders of business and industry together with municipal and elected officials to develop regional solutions to issues facing Elkhart, LaPorte, Marshall and St. Joseph counties. This has now extended to Kosciusko County and there are also discussions with groups in southwestern Michigan.

"The reason it is so important to be focused regionally is that regional economies are the building blocks of U.S. competitiveness. You cannot compete as a city or a town, or even get on anybody's radar screen, unless you are looked at as a region. The region is what gives you enough diversity of assets and resources to be competitive. Business cluster development occurs within regions and then across regions. If you look at the ability to produce high-value products and services, it depends upon the creation and strengthening of regional clusters of industries that become hubs of innovation in an economy.

Michiana Advantage: "So what is the objective of the Regional Approach for Progress?"

Murphy: "The objective of developing a region is to enhance productivity and spur innovation by bringing together technology, information, specialized talent, competing companies, academic institutions and other organizations. It's their close proximity to each other, and the accompanying tight linkage that exist among them that yield better market insights, more refined research agendas, and ultimately the development of products and services. This in turn attracts larger pools of specialized talent for faster deployment of new knowledge.

"Examples are all around us. Why was the RV industry concentrated in Elkhart? Why did it continue to grow there and why was it so successful...