5 Lessons from Indiana’s Decade of Regional Development

An approach to catalyzing economic prosperity and building community hope reached a ten-year milestone this summer. Over the past decade, Indiana has pioneered a highly effective approach to regional economic development through its Regional Cities Initiative (RCI) and the Regional Economic Acceleration and Development Initiative (READI).

This program, envisioned by then-President of the Indiana Economic Development Corporation, Eric Doden, was designed to combat population stagnation and a shortage of skilled workers. Instead of relying only on business incentives, it focused on enhancing "quality of place," making communities more attractive to people who choose where to live based on livability. 

The Fourth Economy team has the privilege of supporting the development of the Regional Cities Initiative through our analysis and report “Benchmarking U.S. Regional Cities: A Study Guide for Transformation” and joining the team when they won an IEDC Award of Excellence in 2017. 

This blog post explores the evolution and impact of these programs, distilling five key lessons for other communities.

A Decade of Transformation: From Regional Cities to READI

Launched in 2015, under Governor Mike Pence’s administration, the Indiana Regional Cities Initiative (RCI) was the state's initial large-scale, regional quality-of-place investment, directly addressing population stagnation. With $126 million, RCI funded strategic development projects in three selected regions, leading to over 420 projects and catalyzing significant public and private investment.

Building on RCI's success, Governor Eric Holcomb established the Regional Economic Acceleration and Development Initiative (READI) in 2021.  READI expanded RCI’s vision with an initial $500 million, reaching all 92 Indiana counties across 17 regions. READI 2.0, approved in 2023, committed an additional $500 million, bringing the total state investment to $1 billion. This state funding was further augmented by a $250 million grant from the Lilly Endowment Inc., showcasing a sophisticated multi-source funding approach.

How READI and RCI Transformed Indiana Communities

These programs have yielded significant impacts. The RCI program alone turned a $126 million state investment into an estimated $1.6 billion in economic impact. It has created approximately 1,000 jobs per year in funded regions, added roughly $37 million in annual GDP growth, and attracted around 8,000 new residents.

The READI program amplified this impact byawarding $487 million to 353 projects resulting in a total of $12.6 billion investment—an extraordinary 26:1 leverage ratio. The next phase, READI 2.0, aims for a minimum goal of a 4:1 match and expects to generate at least $3 billion in total investment, using state funding to catalyze additional local public, private, and philanthropic capital.

Projects span diverse categories, reflecting a comprehensive ecosystem for talent attraction:

• Workforce Housing: Developments like The District in Princeton (144 units) and Karges Lofts in Evansville (150 units) provide critical housing.

• Quality of Life and Place: Investments include Woodmere Dog Park, Tolson Center for Community Excellence in Elkhart, Centerpoint Energy Square in Evansville, and revitalized urban centers like Hotel Elkhart and Ash Skyline Tower in Fort Wayne.

• Infrastructure and Connectivity: Projects include multi-use trails like the Marquette Greenway, brownfield remediation, and utility improvements.

• Talent Development and Innovation: Support for nursing program expansion (e.g., USI Nursing Expansion) and tech commercialization centers, fostering growth in high-wage sectors like biomedical and national security/defense.

The RCI and READI investments created new community assets, but they also did something more. They gave community leaders the confidence that they could once again work together to invest in a vision and projects that will transform their communities for generations to come. They also gave community members hope that they could improve their community. 

5 Regional Development Lessons Your Community Can Apply

Indiana's journey with RCI and READI offers valuable insights for regions worldwide striving for sustainable growth.

1. Embrace Regional Collaboration to Build Shared Vision

A foundational element of the approach is fostering collaboration and building trust among counties, cities, and towns. Both RCI and READI gave regions the flexibility to self-organize and develop shared visions, bringing together diverse stakeholders to build consensus and prioritize collective action. This cooperative framework helps communities pool resources, address shared challenges, and leverage assets that individual municipalities and private investors couldn’t achieve alone. At its core, this approach recognizes that economies operate at a regional level. 

2. Invest in Quality of Place to Attract Talent

Indiana understood that attracting and retaining talent requires creating vibrant, desirable places to live. That’s why these programs invested heavily in quality-of-life amenities like recreational facilities, cultural venues, revitalized downtowns, and community spaces. By supporting places where people can live, work, and play, the state directly addresses the evolving needs of a mobile workforce, positioning its communities as powerful magnets for talent.

3. Leverage Public, Private, and Philanthropic Capital

Indiana's programs are catalysts for much larger investments. RCI turned $126 million into $1.6 billion, while READI 1.0 achieved an extraordinary 26:1 return, leveraging $487 million into $12.6 billion. This is made possible by requiring significant matching funds from local public, private, and philanthropic partners (READI 2.0 aims for a minimum 4:1 match). This model not only ensures broad financial commitment and shared ownership, but also fosters long-term sustainability, accountability, and the capacity for future collaboration.

4. Use Data to Drive Strategic Planning and Impact

Both programs emphasize data-driven planning and measurable outcomes. Regions developed strategic plans based on local needs and tracked key indicators like population growth, job quality, employment, and GDP. A multi-year evaluation of READI, conducted by Purdue and Indiana University, exemplifies this commitment to rigorous analysis. This approach helps ensure investments are well-targeted, allowing for continuous improvement and efficient use of public funds.

5. Align Investments with Talent Retention Goals

Every initiative, from housing to parks and education, was designed with one goal in mind: attracting and retaining skilled workers. Community members were invited to submit their ideas, and projects were chosen based on their potential to enhance the region’s appeal for both current and future residents. This consistent focus ensures diverse investments contribute to a unified strategic objective: improving quality of place. It shows how a clear vision can guide a portfolio of investments toward population and workforce growth.

A Replicable Model for Sustainable Regional Growth

Indiana's Regional Cities and READI programs show the power of strategic, collaborative, and place-based economic development. Over the past decade, these initiatives have leveraged billions in investment and transformed communities–just look at the renewed vibrancy in places like Ft. Wayne or South Bend. By embracing regionalism, prioritizing quality of place, leveraging financial resources, relying on data, and focusing on talent, Indiana offers a model that other communities can learn from to forge their own better future.

I would love to hear from you about how your community collaborates, what is working, and what you think could be improved. Please reach out to me at [email protected] if you want to share notes.