Diversification is one way in which businesses or regions can expand or develop and increase their economic strength and capacity. In an institutional sense diversification looks to the opportunities of interdependency and the possibilities arising from collaboration. A lack of diversity can lead to vulnerability and reduced resilience to shocks.
Identifying regional opportunities for diversification is a key economic development strategy and is a priority action now more than ever before. Emerging technology, data optimisation and automation are all driving industries not previously envisioned. Regions are often well placed with large green field sites, potential for independent energy, and a propensity for innovation to embrace diversification.
Regions can enable diversification by identifying, promoting and providing opportunities to participate in emerging product markets; working to ensure appropriate infrastructure and freight logistics; tapping into supporting practices that will encourage businesses to strengthen their capabilities and expand or shift to new activities through information dissemination and communication (for example accessing new networks and funding).
This action agenda is looking to draw out case studies of businesses or regions that have created successful diversification.