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[In]Sight User Guide - Regional Australia Institute

1. The RAI is confident that these processes have produced an accurate set of indicators and theme scores for each LGA and region If a user identifies possible errors or inaccuracies please contact the RAI office on 02 6260 3733 or info regionalaustralia org au and we will review the issue immediately Data Revisions 16 1 2015 Since the release of the updated Insight data in late November 201 4 a number of revisions have been made to the published data These revisions address a number issues arising out of the update of the web tool including e display of large currency values e display of missing data values as zeros e inclusion of additional data and improvements to providing estimates at boundary levels where data is not available directly also drove changes to indicator scores and overall theme rankings and e Anumber of minor data processing errors were identified and corrected Adjustments to reporting of some data to improve consistency with publicly available statistics particularly those provided by the Australian Bureau of Statistics have been applied Specific changes in this release include Economic Fundamentals Correction to display error of large data values in business turnover and non residential building approvals previously displaying as n a InlSight User Guide January 15 PAGE 29 FA REGIONAL AUSTRALIA aes ssi In Sight 2014 User Guide Labour Market Efficiency Wage Labour cos
2. Theme 5 Infrastructure and Essential Services ssssssssessssssssssssssssssssssssssesessssseeesssssssssssseeees 12 Th me Institutional Foundations eere tons eoe eror roni oae soo teta anseres brine rt ee eb tanaan 14 Theme 7 Innovations senex ex eerie Red E MEN eU ERE ER A EE T suseusateenttuaceuexedd 16 Theme 8 Technological Recidiness een neninenenineninenenenenesinen n enin en ener Ex ERES eX UR EROR ERR EREN ERE ERE KEEN ERES 17 Theme 9 Demography sisssssisevesvssvssvsussivrisiviverivivivivivesivirssivivesivirisivivesivirisivivesivivisivivesivirisi vesi ivis vs k 18 Theme TO Natural Resources ertet rer treno rte edere a tuere von ee ede eei i erede d 19 Notes on Data Collection and Indicator Calculations ssssssssssssssssssssssssssssssssssesssssesssssessssssseseees 20 Hachman Index of Economic Diversification s cccescsescteseceseteveceteresereseseseresenesetesesesenesetenedexedenenesedenens 20 Calculating Distance Scores in In Sight eese ttt tn ntn tntntntut 20 Websites Used to Source Presence of Major Organisation eee eene ente tntntnne 20 Assessment Methodology for Local Economic Development Support eee 22 Websites Used to Source Revenue Information Financial Burden of Local Government 23 Time Series Differences tetro ptor eb ei EYE HE eR et van en VES eL epe tal in to PEE EE Reged unge 23 A Caution on Small Ared Dated ate aotem duties totem f
3. and regions are then ranked in descending order A higher average score translates into a higher ranking No weightings have been applied in the formation of the In Sight indices This simple approach to indexation is preferred by the RAI to more complex methods such as principle components analysis The benefit is that it enables the relationship between indicator data and the theme ranking to be understood by users This is important for In Sight where all of the data and rankings at the indicator level are made available to users Additional notes on index rankings e Regions with the same measurement for an indicator are given the same ranking e Three regions Tasmania RDA Northern Territory RDA and Mid West Gascoyne RDA have not been given rankings as sub regions for these areas are included and ranked in the region index for example Mid West RDC and Gascoyne RDC are included in the rankings and together comprise the same area as Mid West Gascoyne RDA and e Locations with more than 25 per cent of indicator value missing have not been allocated a theme rank In Sight User Guide January 15 PAGE 27 REGIONAL DIE AUSTRAUA In Sight 2014 User Guide aes ssi Ranking System Limitations For many indicators there is a simple competitiveness relationship where more or less is clearly a more competitive position For example having a greater percentage of the working age population participating in the economy or more min
4. information on why it is good to invest in the LGA 3 Business links links are provided to further useful information 4 Business content more information is provided than simply links to other websites substantive to business interest 5 Quality of Business content see above is the page substantial Pro Business Policy 6 Business grants 7 Business advisory program the LGA has programs that offers one on one advice on starting a business InlSight User Guide January 15 PAGE 22 REGIONAL fA h AUSTRALIA In Sight 2014 User Guide as ssi 8 Business classes workshops seminars run by the LGA 9 Business awards and 10 Other business support programs Websites Used to Source Revenue Information Financial Burden of Local Government Victorian data from the Department of Transport Planning and Local Infrastructure website 201 2 13 http www dpcd vic gov au localgovernment find your local council alpine New South Wales data from the Office of Local Government document titled Comparative Information on NSW Local Government Measuring Local Government Performance 201 2 13 http www dlg nsw gov au dlg dlghome dlg Documentslndex asp sectionid 1 amp docum enttype 6 amp mi 3 amp ml 2 All other data from annual reports or financial reports published on LGA websites Time Series Differences Data for small areas is produced irregularly in Australia and much of In Sight is reliant on the ABS Census
5. in the economy In Sight 2014 provides a diverse measure of Natural Resources competitiveness reflecting the diverse resources available across regional Australia The theme includes six measures Table 10 indicating the workforce associated with mineral timber agriculture aquatic and agricultural resources and two measures identifying the proximity of the region to the coast and nature reserves which can provide foundations for tourism Highly ranked regions in this theme are those with a diversity of natural resource opportunities Table 10 Competitiveness Indicators for Natural Resources Theme See Calculating Distance Scores in In Sight page 27 for more information In Sight User Guide January 15 PAGE 19 REGIONAL C AUSTRALIA 7 CH INSTITUTE In Sight 2014 User Guide Notes on Data Collection and Indicator Calculations In Sight provides access to the most up to date nationally consistent data on LGAs and regions This section provides some notes on data and indicator calculations that underpin indicators across many of the ten themes Hachman Index of Economic Diversification The Hachman index has been used to calculate the economic diversification indicator in the Business Sophistication theme It accounts for disparity between the economic structure of a region and that of a reference economy The Hachman index shows how diverse a given region s economic structure is relative to that of the Australian eco
6. 4 EASY In Sight User Guide January 15 PAGE 6 FA REGIONAL AUSTRALIA CHEM INSTITUTE In Sight 2014 User Guide In Sight Themes and Indicators A description of each theme and its associated indicators is provided on the following pages along with details on the sources of data used in In Sight Theme 1 Economic Fundamentals The economic fundamentals of an LGA or region include measures of the size and relative activity level in the economy Solid economic fundamentals support local businesses and workers and indicate a region successfully translating economic potential into activity and growth In Sight measures the economic fundamentals of each LGA and region on a per person basis This approach allows more populated LGAs and regions to be compared to less populated areas A larger stock of industrial and commercial buildings means an area can produce a relatively larger amount of private sector activity Higher wages more hours worked and larger business turnover per person indicates a region is more effectively translating its workforce and other assets into economic activity Strong investment in residential and other buildings indicates confidence in the future and growing capacity in the economy This theme has been expanded and refined for In Sight 2014 with the addition of the three new measures number of hours worked and two measures of the current asset base of an area value of commercial and industri
7. CD ii Rodriguez Pose A 2013 Do institutions matter for regional development in Regional Studies InlSight User Guide January 15 PAGE 31
8. VY REGIONAL AUSTRALIA ET INSTITUTE Your guide to understanding d P SP ed ahs Tur P ie PO C In Sight Australia s regional competitiveness index 2 53 Blackall Street PO Box B96 02 6260 3733 FOR THE GOOD OF AUSTRALIA Barlon ACT 2600 Canberra AC h260 reaionalaustralia elge mele REGIONAL AUSTRALIA E HwS pe In Sight 2014 User Guide Table of Contents About in Sig Miesies eene ccovaccsescusccsacersystexesscsesacdsessvevsveacucasuucstsetascaesetsavsurssesersaesncstesstes RE EET REUREERI TIS RENTRER VIE 4 Changes for In Sight 2OVA M 5 Using lin Sight scssstsssissstesstssssnsasasatesatasasasasasasesnsasnsasn esnsasasasadasndasnsasnsasadasndasnsasadasnsasndasnsasadasnsasn asndasadassdessdesszesese 6 Using Bn XenntEucieuugu m 6 In Sight Themes and IhdiedTOFrs ccccesacesezecadecedssesevacesesssedeceteseiscedesaduasiecsdenodcbedessdeieducedetedsuedasudecescdedsiedevesaders 7 Theme 1 Economic Fundamentals wssicissssssesssssssesssssssessscsstesecsassesssosssesusssscessseseccsssssssesesnsessiscsssiesecessteseieans 7 Theme 2 Labour Market Efflclency useenntntnnnininentnini tioni ninth iR IR ENIM ERIT EXER EN EE EREN TENEO 8 Theme 3 Business SOPHISTICCHION rananssunanscanana nuna ene reete ne eee eee vene aee ee voee ES RENE e RRS 9 Theme 4 Human Capital eene rere e rene rene NE reen t er EEA 10
9. ailable at the national level Table 6 Competitiveness Indicators for Institutional Foundations Theme InlSight User Guide January 15 PAGE 15 REGIONAL 4 AUSTRALIA aes wsiiute Australia s regions need to be at the forefront of cutting edge products and processes in order to retain their competitive advantage In Sight 201 4 measures two aspects of Innovation the potential capacity for Innovation and the extent to which this capacity is translated into products and processes Table 7 Capacity is measured through the number of research organisations managers research and development R amp D expenditure and human resources in science and technology Relative levels of innovation are assessed by the number of patents and businesses start ups Number of patents and business start ups are new indicators that have been added to the Innovation theme in 2014 Table 7 Competitiveness Indicators for Innovation Theme In Sight User Guide January 15 PAGE 16 SX REGIONAL X AUSTRALIA INSTITUTE Technological Readiness is an important facilitator of internal regional growth The physical location of a person or a product is increasingly less important in the Australian and international business environment Communication technologies are now essential to efficient commercial practices and productivity They are transforming the way industries operate propelling Australia s prev
10. al buildings Building Approvals in the previous index has been deconstructed into residential and non residential which provides more insight into an area s economic profile The Economic Fundamentals theme includes three perspectives on each LGA and region the stock of productive assets business and labour activity and levels of recent investment Table 1 InlSight User Guide January 15 PAGE 7 REGIONAL HEN ow INSTITUTE Cat Table 1 Competitiveness Indicators for Economic Fundamentals Theme Labour Market Efficiency measures how well a region engages its people within the economy Efficiency suggests a strong matching of workforce size and skills to the needs of local firms Maintaining efficiency over time suggests an adaptability of workforce size and skills to changing needs In Sight measures Labour Market Efficiency through two measures of current employment rates three measures of the utilisation of the potential workforce and a measure of skilled labour Table 2 Employment rates indicate the current level of demand relative to supply of workers in the region Unemployment may also reflect a mismatch between the local labour force and firm needs The level of utilisation of the potential workforce indicates whether a region has longer term structural challenges in achieving Labour Market Efficiency The presence of long term unemployment lower participation rates and or high welfare dependence suggests
11. ap for use alongside reporting of the results This puts over 97 000 pieces of information on the Australian economy at the fingertips of every Australian This makes In Sight an essential tool for assessing our capacity to build new prosperity and a better quality of life across our diverse nation InlSight User Guide January 15 PAGE 4 REGIONAL AUSTRALIA aes ssi In Sight 2014 User Guide Changes for In Sight 2014 In Sight 2014 is the second iteration of Australia s regional competitiveness index In early 2014 the RAI sought feedback and suggestions from stakeholders about ways to enhance In Sight The feedback received included suggestions on ways to improve the methodology suggestions on alternative indicators and requests for new website functionality In Sight 2014 includes an expanded and revised indicator set updated data and refined methodology Key changes include e A suite of nationally consistent indicators on the quality and performance of regional and local institutions e New indicators measuring the economic fundamentals of each region to provide a more nuanced view of the state of each local and regional economy e An updated method for calculating the distance for residence and businesses to key infrastructure and essential services and natural resources e New measures for technological readiness including quality of access to broadband mobile internet and mobile phone coverage in eac
12. ative capacity and focus of local government towards business and economic development Local government is amongst Australia s most important regional development institutions as it is present in every local area is locally run and has formal powers to facilitate or constrain local economic development However formal institutions outside of local government are also important to competitiveness in regional Australia To identify an area s Institutional Foundations beyond local government In Sight measures the presence of other major organisations and the relative size of the public sector workforce These factors expand the formal institutional presence in a region and deepen external institutional connections The presence of people with the qualifications and experience to support institutional performance as well as the engagement of local people in voluntary activity is also included This provides an estimation of both the foundations for informal institutions It also indicates whether formal institutions are likely to be supported by local people with the capacity and commitment to make them successful InlSight User Guide January 15 PAGE 14 u AUSTRALIA gt INSTITUTE InlSight 2014 User Guide In Sight measures these different facets of institutional competitiveness through eight indicators Table 6 The institutions theme has been completely revised and updated in 2014 with the inclusion of a range of data not previously av
13. data The most recent Census occurred in 2011 and many indicators are not able to be updated until the next Census in 2016 As a result some data in themes is more recent than others For example in Labour Market Efficiency unemployment estimates are for June 2014 while other measures such as youth unemployment can only be provided on the basis of the most recent census data Users are encouraged to identify the time series for different data and look to local knowledge to assess how factors may have changed since the last Census A Caution on Small Area Data The RAI s aim with In Sight has been to present the best available nationally consistent information we have about competitiveness in regional Australia Regional Australia includes a wide diversity of regions from densely populated regional cities to our many small rural and remote Heartland communities Some small area data in In Sight particularly population related indicators carries a higher risk of error i e that the measure does not accurately reflect the true situation than data on more populated areas Things can also change more rapidly in small areas as smaller numbers of people or the arrival of a new business or investment will have a much greater impact on the overall competitiveness situation for the community InlSight User Guide January 15 PAGE 23 REGIONAL fA h AUSTRALIA In Sight 2014 User Guide CHE INSTITUTE Some users have suggested tha
14. eral reserves clearly improves competitiveness However for some In Sight indicators there are also potential challenges involved in having a very high or low score These indicators include e Economic diversification does not take into account the benefits of specialisation and limitations to growth that may flow from having firms spread across many sectors e Dominance of large employers does not take into account the limitations for a region s economy that may result from having no large employers that bring a diversity of jobs more management positions and greater capacity for growth and innovation e Population turnover does not take into account the challenges that may arise in very stable communities where no new people join the population bringing new skills energy and networks e Youth and senior dependency does not account for the possible social costs of having communities where there are few or no older or younger people e Population density does not take into account the costs of congestion that can arise in very densely populated areas e Timber resources uses an employment measure which does not take into account whether this employment is based on sustainable use of forest resources and e Fishing and aquaculture uses an employment measure which does not take into account whether this employment is based on sustainable use of aquatic resources The RAI has not adjusted rankings in these indicators to reflect the
15. h LGA and region e New indicators on patents and business start ups in innovation e Anew theme on demography to provide new information on population dynamics in each area e Updated data on unemployment school performance welfare dependency research organisations and income from own businesses e Data for eight new regions will be added to align with state regions in Western Australia the Northern Territory and Tasmania that do not align to the national Regional Development Australia RDA framework and e Anew robustness and ranking process to reduce the impact of outliers and other data anomalies on In Sight on the interpretation of results InlSight User Guide January 15 PAGE 5 K REGIONAL Ee In Sight 2014 User Guide Using In Sight In Sight has a diverse range of applications and its results can be used in a number of ways by all Australians In Sight can be accessed at www regionalaustralia org au insight From the In Sight home page users can Access basic information on In Sight including fact sheets this user guide and key findings e Explore all of the In Sight data using the interactive online map and e Download the RAI s summary analysis for each theme and other analysis reports Using the Online Interactive Map The online tool is user friendly and interactive The first screen screen shot below shows how to access data in In Sight in four easy steps IN SIGHT
16. ide 23 Spatial Beuridaries in Il SiGbatsss sssccssasssucssesssusesassoususesseusudasoususepsoutetansonsudasuoutatanvastusasbautstesvassvsesvactvtenvacaans 25 Calculating In SighitdRahkings socer emnes deu d T dE 26 IMA SEXTON Methodology sessesscccsseseccabecsvacsvecesccsvoussacohtanecesvacuccsvucsssccacosdarsdensvesuesseaesvecssacoraassecstisoncshen 26 Outlier Adjustment in the Theme RankingS ssssssssssssessssssssssesssssesssssssssssesssssssssssssesessseseeees 27 Ranking System Limitations ssessscsssesssesecesssesesesesesedessdesesessiesedessdesasessiesdessdasasessiasadessiesssesaiessdessdesssenaiess 28 Data Review and Checking Processes ssisisssisirssrsisssicirsorsinseresnsoruinseissnsorsivseisinisivivsoioinsoivivseisinsoisivssisinssis si 29 Dua Revisions 16 1 2015 caches ect anasto ana a denn dim denen 29 F rther Update re 30 MIC 31 InlSight User Guide January 15 PAGE 2 K REGIONAL AUSTRALIA gt INSTITUTE InlSight 2014 User Guide In Sight User Guide January 15 PAGE 3 REGIONAL AUSTRALIA INSTITUTE In Sight 2014 User Guide About In Sight Australia s regional areas are developing at different paces Each has different potential for positive growth and change In Sight Australia s regional competitiveness index enables Australians to access the information they need on region
17. iously isolated regional economies into national and global markets A region s Technological Readiness or its ability to rapidly absorb and make use of new technologies is now a vital determinant of competitiveness Three key interdependent components of Technological Readiness are reflected in the measures chosen for this theme Table 8 Relative availability of technology infrastructure indicates the opportunity for technology linked growth in regions Technology take up at a household level reflects relative engagement with technology in the population Finally the presence of a technology workforce in the region provides a measure of the capacity for technology based innovation Table 8 Competitiveness Indicators for Technological Readiness Theme In Sight User Guide January 15 PAGE 17 REGIONAL HEN 2o INSTITUTE C The inclusion of the Demography theme in In Sight 2014 recognises the importance of people and population to a region s competitiveness Demography is difficult to change through regional development History wider demographic trends such as an ageing population and national trends shape a region s competitive position Demography is something that each region must work with to succeed Each region has its own demographic profile For instance large populations attract a diverse range of businesses which find it convenient to be located near other relevant businesses forming agglomeration econo
18. longer term efficiencies issues in a region In Sight User Guide January 15 PAGE 8 REGIONAL 4 AUSTRALIA CINSTITUTE Skills are also important and most regions will need a mixture of skilled and unskilled labour A lack of skilled labour will limit the sophistication of local firms and the adaptability of the economy to changing needs Table 2 Competitiveness Indicators for Labour Market Efficiency Theme Firms provide a majority of jobs for most communities and ensure local resources and the potential of a region can be translated into economic success A region with a more diverse business community profitable small businesses and good local access to financial expertise and facilitators of exports imports and wholesale trade is best positioned to compete in Australia s economy Table 3 In Sight User Guide January 15 PAGE 9 REGIONAL HEN ow INSTITUTE Cam Table 3 Competitiveness Indicators for the Business Sophistication Theme The skills health and education of a workforce are fundamental to a region s competitiveness Strong Human Capital allows communities and the individuals within these communities to be more productive and more able to respond to shifts in the economy Human Capital is measured using nine indicators in In Sight 2014 Table 4 Five indicators measure basic educational outcomes in a local area or region from early childhood through to adulthood Basic educa
19. mies However population change growth loss or turnover affects employment or lifestyle opportunities A stable population supports the formation of social capital Measures in this theme describe the size change composition and distribution of each LGA and a region s population Table 9 Competitiveness Indicators for Demography Theme In Sight User Guide January 15 PAGE 18 REGIONAL LA AUSTRALIA as nse Much of economic activity in regional Australia is directly linked to local natural resources Access to Natural Resources can create economic opportunities through offering inputs to production such as access to water or good quality soil and can be used to generate production outputs such as minerals or extractives or as a foundation for services such as tourism and recreation The nature of a region s physical endowments in terms of both the access to natural resources and the physical attributes of the region are hugely influential in many regions current economies and future opportunities Natural Resources are a component of a region s competitiveness that is relatively difficult or impossible for regions to meaningfully influence As a result less competitive regions have limited scope for improving their competitiveness over time through development efforts The challenge for regions is in translating their competitiveness into economic opportunities through the way in which local resources are used
20. ngstone Mareeba and Noosa in Queensland and revised data for Cairns Rockhampton Sunshine Coast and Tablelands as a result of de amalgamations in Queensland In some cases where data cannot be disaggregated these LGAs are allocated the result from the amalgamated LGA e The inclusion of data for West Daly and revised data for Victoria Daly resulting from the creation of the West Daly LGA in the Northern Australia e The inclusion of data for Greater Geraldton following the merger of Geraldton Greenough and Mullewa LGAs in Western Australia e Roebourne in Western Australia has been renamed Karratha in 201 4 Boundaries have not changed In Sight 2014 provides data and rankings for 60 regions including 52 RDA regions that are aligned to State regional development boundaries and eight State and Territory regions that sit within the national RDA structure see www rda gov au for more information Data and rankings have been included for eight new regions in 2014 e Data and rankings for Mid West and Gascoyne regions in Western Australia consistent with the State Regional Development Commission Structure together these regions comprise the Mid West Gascoyne RDA region e Data and rankings for the three Tasmanian regions North Tasmania North West and Tasmania South together these regions comprise the Tasmania RDA region and e Data and rankings for the three Northern Territory regions Northern Region Northern Territo
21. nomy Values closer to one would mean that the region s economic structure is very diverse Values closer to zero would mean that the region does not have a diverse industrial structure as compared to the nation Calculating Distance Scores in In Sight For a number of indicators In Sight relies on distance measures Distance measures in In Sight are derived using Geospatial Information Systems GIS software The GIS software contains digital spatial boundaries for very small geographic areas including ABS derived Statistical Areas Level 1 and Mesh Blocks population quantities for those areas and location data for geographical positions of interest such as roads ports airports etc Distance scores in In Sight are calculated by measuring the distance from the centres of the small geographic areas to the nearest geographic location of interest then weighting these distances by the population The data is then aggregated to LGA and regional boundaries giving a population weighted score to indicate the proximity of the area s population to the particular feature of interest Websites Used to Source Presence of Major Organisation Hospitals Sources Victorian info from Department of Health Victoria http www health vic gov au hospitals pubwebs htm Private hospital information http www health vic gov au privatehospitals index htm NSW information from the Health Engine website http healthengine com au find Public Hospi
22. of Agriculture Fisheries and Forestry http www daff gld gov au about us contact us offices Government of Western Australia Department of Agriculture and Food https www agric wa gov au office locations Inland Fisheries Service http www ifs tas gov au about us contact us Forestry Tasmania http www forestrytas com au contact InlSight User Guide January 15 PAGE 21 REGIONAL CL AUSTRALIA s lt INSTITUTE In Sight 2014 User Guide Northern Territory Government Department of Primary Industry and Fisheries DPIF http www nt gov au d Primary Industry index cfm header Key 20Contacts Post school Educational Institutions university or TAFE TAFE https www tafensw edu au http www vic gov au education tafe training tafe training courses html http tafegld edu au http www tafesa edu au http www central wa edu au Pages default aspx http www tastafe tas edu au http www cdu edu au cdu vet Universities All universities as list at http www australianuniversities com au list Assessment Methodology for Local Economic Development Support The assessment of the availability of business information and pro business policies was made using a score of 0 0 5 or 1for each of the following data set elements giving a total score of 0 10 Business Accessibility 1 Business Page the LGA has a business economic development investment page 2 Statistics Investment Prospectus
23. on s competitive position Each LGA and Region will have a mix of both competitive strengths and challenges that will shape its competitive position Indexation Methodology Indexation in In Sight involves the indicators in each theme being transformed to provide a composite index score for each LGA and separately for each region Indexation is necessary as there are no common units or scales across the indicators within the themes Indicator data may be represented in dollars persons incidence rates or other forms of quantity and volume depending on the competitiveness factor measurement used An indexation approach enables these different measures to be combined into an overall assessment of competitive position for each theme Several methods of transforming indicators to enable indexation are available In Sight uses the common min max method of rescaling which is based on the following formula x min x max x min x This transforms the indicator data x into scores with a range from zero to one i e the most competitive region receives a score of 1 and the least a score of O This approach does not change the relative position of indicators in the distribution and it is straightforward and transparent It is noted though that this transformation rewards higher values A very good result on a few indicators is more advantageous to a region s ranking than a larger number of average scores InlSigh
24. rs Formal institutions such as local government or a major organisation such as a university and informal institutions such as local industry or community networks are important for development as both can work to mobilise resources within and beyond a region Measuring the status and impact of institutional factors in In Sight remains challenging as what constitutes an effective mix of institutions will differ between areas It will also change over time as conditions in a region change Work on institutions has also noted that more institutions are not always better While some places can be challenged by institutions that are too small or too few to facilitate growth other places have a plethora of institutional actors that conflict or crowd each other out and undermine the successful mobilisation of local resources Given these theoretical and practical challenges the In Sight Institutional Foundations theme does not seek to provide a comprehensive assessment of institutional status or performance in regional Australia Rather In Sight provides a consistent and objective assessment of whether the foundations exist for strong and successful local institutions in each part of regional Australia Regions with stronger Institutional Foundations as measured in In Sight are more competitive as they are better positioned to develop and maintain an effective mix of institutions over time The theme includes measurements identifying the rel
25. ry Big Rivers Region and Northern Territory Central Australia Region together these regions comprise the Northern Territory RDA region These spatial boundaries make In Sight usable for the widest range of applications in regional development across Australia In Sight User Guide January 15 PAGE 25 REGIONAL AUSTRALIA aes ssi In Sight 2014 User Guide Calculating In Sight Rankings In Sight has been developed as a series of independent indices rather than one index with a single rank for each region In Sight includes 20 separate indices comprised of e AnLGA index for each of the ten themes which compares the performance of all LGAs to each other and e A Region index for each of the ten themes which compares the performance of all Region s to each other LGAs are ranked from 1 to 564 and regions are ranked from 1 to 60 Rankings are applied at the theme level and also for each indicator The ranking approach is used to clearly demonstrate the relative position for each region across each of the themes and indicators This ensures that users can identify the relative position of a region as well as the status of each measure No overall index of competitiveness combining the ten themes is included This approach reflects both the difficulty in meaningfully aggregating relative performance across such a wide range of themes This approach also encourages users to concentrate on the nuance of each regi
26. s to make better informed decisions for regional communities In Sight is a competitiveness index Competitiveness refers to the combination of institutions policies and factors that determine the level of productivity of a country or region In Sight builds on significant international experience in the development of competitiveness indices The design of In Sight reflects the experience and approach of the World Economic Forum s Global Competitiveness Report methodology the European Union s Regional Competitiveness Index and Centre for International Competitiveness in the UK The In Sight framework however is unique to Australia s economic situation In Sight is also one of the finest grained and comprehensive assessments ever undertaken for the Australian economy The ten themes and 68 indicators used in In Sight focus on the economic drivers that determine longer term competitiveness All of the main areas in which governments influence a regions economic outcomes are assessed by In Sight Competitiveness is assessed at both the Local Government Area LGA level and also at a regional level and includes both regional and metropolitan Australia As a result In Sight provides 624 individual regional profiles covering the whole of Australia at both the local and regional scales In Sight also goes further than most indices as the Regional Australia Institute RAI makes all of the data available through the online interactive m
27. se possible costs that may counter the primary competitive benefit being measured by In Sight In most cases the relative impact of these costs compared to wider competitive benefits flowing from the factors cannot be measured As a result the ideal level at which a region is most competitive cannot be identified to enable adjustment of the ranking approach Users of In Sight and particularly those LGAs and regions with very high scores and ranks in these indicators are encouraged to consider the relative costs and benefits of these factors in the economy as part of a more detailed analysis InlSight User Guide January 15 PAGE 28 FA REGIONAL _ AUSTRALIA INSTITUTE In Sight 2014 User Guide Data Review and Checking Processes In Sight has been subject to a thorough review and checking process to ensure the data and indices are correct and consistent with the methodology The indicator and theme data review process in 2014 included e preparation and review of descriptive statistics for each indicator to examine data distribution missing values and outliers e preparation of correlations to check the consistency and relevance of indicators within each theme e all derived data is compared against similar information available from the Australian Bureau of Statistics ABS and e systematic internal review of all calculations to ensure accurate transformation of data and calculation of theme scores and rankings
28. t User Guide January 15 PAGE 26 REGIONAL AUSTRALIA ae ssi In Sight 2014 User Guide Outlier Adjustment in the Theme Rankings Given the tendency for the min max normalisation approach to favour very high values the Tukey method has been used to reduce the influence of positively ranked outliers on the theme rankings in In Sight This method identifies outliers within indicators as values beyond an upper or lower fence value Outliers in the data set were identified using the following formula If higher values lead to higher rankings for an indicator Upper fence indicator mean 3 x indicator interquartile range Outlier any indictor value gt lower fence If lower values lead to higher rankings for an indicator Lower Fence indicator mean 3 x Indicator interquartile range Outlier any indictor value lt lower fence An adjusted normalised score is then calculated by excluding the outlier values Outlier values are given the maximum value of 1 in the adjusted score This adjusted score is then used for the purposes of theme ranking The effect of this adjustment is to increase the spread of values in the adjusted normalised score without impacting on the relative distribution of non outliers This prevents an outlier in one indicator from unreasonably influencing the location s position within the theme ranks Based on the average of the normalised scores for each indicator in the theme LGAs
29. t given these challenges the RAI should exclude data for the smallest areas from In Sight However the RAI believes that this approach risks mirroring the pattern of excluding or ignoring these areas in most mainstream analysis of the Australian economy On balance the RAI believes that it is better to make information available even if it has limitations than to exclude areas from this index In most cases In Sight relies on data from national agencies particularly the ABS This means that we use the best and most reliable data available across the index Nevertheless accurate measurement for sparsely populated areas is challenging even for our national statistical agencies Data for areas with only a few hundred people or less should be used with some caution The RAI recommends that users of data on small area seek to confirm the current situation and recent trends in small communities by engaging directly with local institutions in the area InlSight User Guide January 15 PAGE 24 REGIONAL AUSTRALIA ae ssi In Sight 2014 User Guide Spatial Boundaries in In Sight In Sight provides data based on the primary administrative boundaries used by Australia s three levels of government In Sight provides data for each of the 564 LGAs in Australia In Sight 2014 is based on LGA boundaries as of September 2014 The most significant changes from 2013 include e The inclusion of data for Douglas Livi
30. tal NSW amp http healthengine com au find Private Hospital Australia Queensland information from the Health Engine website http healthengine com au find Public Hospital QLD http healthengine com au find Private Hospital QLD InlSight User Guide January 15 PAGE 20 REGIONAL C AUSTRALIA s CH INSTITUTE InlSight 2014 User Guide WA information from the Health Engine website http healthengine com au find Private Hospital Australia http healthengine com au find Public Hospital WA South Australia information from the NHPA My Hospitals website http www myhospitals gov au private hospitals amp from SA Health Tasmania info from the NHPA MyHospitals website http www myhospitals gov cu browse tas tasmania name asc NT info from the NHPA MyHospitals website http www myhospitals gov cu browse nt ACT info from the NHPA MyHospitals website http www myhospitals gov au browse act canberra Some data are from the MyHospitals website run by the National Health Performance Authority http www myhospitals gov au Major Publicly Funded Facility CSIRO http www csiro au PIRSA http www pir sa gov au Department of Environment and Primary Industries DEPI work locations http www depi vic gov au data assets pdf file 0005 183128 DEPI Work Locations pdf NSW Department of Primary Industries http www dpi nsw gov au aboutus about office Queensland Government Department
31. tion is the foundation for competitive Human Capital Two indicators measure the availability of technical and university qualifications in a region Having a large proportion of the workforce with a technical or university qualification is essential to competitiveness Two key constraints on Human Capital are also included Poor health or low levels of English proficiency undermine the competitiveness of the workforce Improving health in the community and English proficiency provides a pathway for building a more competitive economy over time In Sight User Guide January 15 PAGE 10 K REGIONAL SS ZU In Sight 2014 User Guide Table 4 Competitiveness Indicators for the Human Capital Theme InlSight User Guide January 15 PAGE 11 FA REGIONAL X AUSTRALIA INSTITUTE Infrastructure and Essential Services facilitate economic activity A region that is well connected to external markets and has good access to essential services best enables businesses to compete in the wider economy and the facilitation of new investment Three key interdependent components of Infrastructure and Essential Services transport education and health are reflected in the measures included in In Sight 2014 Tables 5a b amp c Transport infrastructure roads rail airports and ports are critical to the efficient delivery of goods and services and support a region s competitiveness in economic markets b
32. ts value and rankings display error corrected for 55 Regions Business Sophistication e No revisions Human Capital e Correction to display of access to tertiary and technical further education indicator data e No change to indicator or theme rankings Infrastructure amp Essential Services e Access to allied health services Ranking revisions no data change e Access to GP services data and ranking revisions formula correction e Theme scores formula correction Institutional Foundations e Revised presence of major organisations indicator data for several de amalgamated LGAs in Queensland Innovation e Inclusion of additional data points for Research and Development Managers e minor resultant changes to indicator and theme rankings Technological Readiness e No revisions Demography e No revisions Natural Resources e Re calculation of theme scores and rankings arising from the exclusion of unreliable water resources indicator data Further updates The RAI is working to access additional data sources to improve the ability of regions to get a snapshot of how they compare in terms of competitiveness nationally Users are encouraged to revisit Insight regularly to access further In Sight developments InlSight User Guide January 15 PAGE 30 K REGIONAL SRE In Sight 2014 User Guide End Notes OECD 2012 Promoting Growth in All Regions Paris OECD OECD 2009 How Regions Grow Paris OE
33. y reducing freight costs Educational infrastructure is a vital component in the development of a region s population In Sight contains measures of access to primary secondary technical and further education and tertiary education indicative of a region s ability to develop a skilled and productive workforce Health infrastructure access to medical facilities allied health and GP services supports the ability of a community to support a healthy workforce Table 5 Competitiveness Indicators for Infrastructure amp Essential Services Theme In Sight User Guide January 15 PAGE 12 REGIONAL 4 AUSTRALIA es suut In Sight User Guide January 15 PAGE 13 REGIONAL AN AUSTRAUA In Sight 2014 User Guide aes sss Theme 6 Institutional Foundations Regions that are able to mobilise local resources are more likely to be successful than those who submit to the influence of external forces The Organisation for Economic Co operation and Development OECD and others have identified that institutions are crucial to this mobilisation of resources in any regioni Institutions are important because they facilitate negotiation dialogue and collaboration among key actors in a region Institutions also enable a region to exert external influence by engaging on behalf of the region with higher levels of government and other external actors important to a region s economy such as major corporations or potential investo

[In]Sight User Guide - Regional Australia Institute

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