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Four stages of the adaptive cycle highlighting the four possible policy leverage points identified on a rural community's adaptive change cycle (Holling and Gunderson (2002, p. 34, Figure 2.2–1)). Notes: Seeds of Innovation (A) – Averting the 'back loop' (B) – Slowing down or reversing the 'front loop' (C) – Expediting the 'back loop'; Cultivation of creativity – Expediting the 'back loop'; Colonization of ideas – Expediting the 'back loop'; Laying fallow – Resource outflow.  

Four stages of the adaptive cycle highlighting the four possible policy leverage points identified on a rural community's adaptive change cycle (Holling and Gunderson (2002, p. 34, Figure 2.2–1)). Notes: Seeds of Innovation (A) – Averting the 'back loop' (B) – Slowing down or reversing the 'front loop' (C) – Expediting the 'back loop'; Cultivation of creativity – Expediting the 'back loop'; Colonization of ideas – Expediting the 'back loop'; Laying fallow – Resource outflow.  

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Globally, rural regions are searching for innovative growth opportunities to reinvigorate their economies. This paper examines the redevelopment of rural communities through an ecological lens – based on the notion of continuous cycles of adaptive change within complex systems as first identified within Holling’s concept of panarchy. Panarchy sugge...

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... alignment of the concept to economy systems -with periods of steady predictable growth, marked by sudden and unpre- dictable shifts (or corrections) -is the motivation for it use in this instance. However, for simplicity, it should be noted that this work uses a single adaptive change cycle (Figure 1) to introduce the panarchy model as a new framework for examining rural economic development strategies. From the point of view of regional or rural economic development policy, the sphere of influence of policy-makers could be characterized by an adaptive change cycle that is bounded by both time and space. ...
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... adaptive change cycle is composed of four stages: release, reorganization, exploitation and conserva- tion, shown in Figure 1 (Holling 2001;Holling & Gunderson 2002;Simmie & Martin 2010;Benson & Garmestani 2011). In the release stage of the adaptive change cycle (Figure 1, lower right) or the creative destruction stage, opportunities exist for rapid change in the system and novel recombination of components. ...
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... adaptive change cycle is composed of four stages: release, reorganization, exploitation and conserva- tion, shown in Figure 1 (Holling 2001;Holling & Gunderson 2002;Simmie & Martin 2010;Benson & Garmestani 2011). In the release stage of the adaptive change cycle (Figure 1, lower right) or the creative destruction stage, opportunities exist for rapid change in the system and novel recombination of components. With an ecological system, this would suggest that dominant 2 P. Slight et al. ...
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... and potential in the system are also low; in an ecosystem setting, this would be reflected by resources and species in the system become unorganized (Holling & Gunderson 2002). In the reorganization stage (Figure 1, upper left), the resources are used in new ways as innovations and experi- ments are tested. Within ecosystems, new species begin to recolonize the area and capture available resources (Holling & Gunderson 2002). ...
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... the exploitation stage of the adaptive change cycle (Figure 1, lower left), the resources begin to accu- mulate. The accumulation of biomass ( Beier et al. 2009) within an ecosystem or the development of new, stable business sectors in a regional economy would be parallel examples. ...
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... the conservation stage of the cycle (Figure 1, upper right), an increase in system rigidity can occur. Competition increases, and fewer species dominate the ecosystem -those that have competed successfully and have acquired a larger share of the available resources ( Beier et al. 2009). ...
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... adaptive change cycle, thus, has two key 'loops' to understand (Figure 1). The 'back loop' of the adaptive change cycle, from release to reorganization, is typically characterized by radical innovation -large unpredictable changes in the adaptive change cycle that are more risky with uncertain outcomes. ...
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... most important aspect in a rural community's change cycle to predict is a trajectory toward economic decline. Similar to Holling's (2001) model for ecosystems this same scenario takes place in the release stage of the 'back loop' of the cycle (Figure 1, lower right). Just prior to release stage, the authors noted a pattern of increased rigidity amongst businesses in rural communities due to conditions such as stagnant product development or reduced competitiveness. ...
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... affecting businesses include economic recessions, growth and technological advancements of distant business competitors and unexpected closures of major employers (Simmie & Martin 2010). An archetypical community in the release stage ( Figure 1, lower right) has decreasing connectedness, low resiliency and low potential -similar to ecosystem char- acteristics at this stage (Holling & Gunderson 2002). At this stage, the community is experiencing business clo- sures, a retiring workforce and/or a workforce migrating in search of new employment opportunities. ...
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... the community enters into the reorganization stage of the 'back loop', the rural community is ripe for innovation ( Figure 1, upper left). At this point, the creative reorgani- zation of community resources can occur. ...
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... archetypical rural community in the reorganization stage ( Figure 1, upper left) has higher resiliency and potential for change but reduced connectedness as the supply chains of existing businesses begin to dismantle and seek to reorganize. This is consistent with the sugges- tion of Simmie and Martin (2010) that the potential of a reorganizing community is high as alternative futures open up for the community. ...
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... reorganization of the ecological community opens up new niches for exploitation by opportunistic species (Figure 1, lower right). The same could apply to a human community, where the reorganization presents the opportunity for the development and exploitation of new business niches and available 'resources'. ...
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... archetypical community in the exploitation stage (Figure 1, lower right) is characterized by increasing con- nectedness as new networks develop between businesses and resiliency and the diversity of new businesses grows. ...
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... the community gradually redevelops, its networks and businesses enter into the conservation stage of the adaptive change cycle (Figure 1, upper right). Similar to the arrival of species with lower reproductive rates and longer life- spans (MacArthur & Wilson 1967;Ashton 2009), the authors observe that a community in the conservation stage is characterized by fewer business sectors dominat- ing the area, each with a more typical lifespan and faced with the need to more effectively compete for limited resources. ...
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... archetypical community in the conservation stage (Figure 1, upper right) will be characterized by rigidity and declining resiliency (Holling & Gunderson 2002;Simmie & Martin 2010). The rigidity of the rural community increases as supply chains and other aspects of the busi- ness networks such as markets and the internal manage- ment structures within the businesses themselves, become more defined. ...
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... instruments could be used to slow down or reverse the 'front loop' of the cycle by pulling the community back from the conservation to the exploitation stage or speed up the 'back loop' of the cycle by pushing the community forward from the release to the reorganization stage (1). Slowing down or reversing the 'front loop', or speeding up the 'back loop', position the community at a point of higher resiliency within its cycle, thus decreasing its vul- nerability to disturbance (Figure 1, lower and upper left). ...
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... main leverage points and one minor leverage point, defined by the authors, were positioned at specific locations along the adaptive change cycle for policy- makers and community leaders to consider: seeds of inno- vation; cultivation of creativity; colonization of ideas and laying fallow. Their locations along the cycle are noted in Figure 1, and they are discussed individually further. The development of these points was also informed by two additional sources of empirical data: (1) key informant interviews conducted with economic development officials from government departments and community develop- ment agencies in Atlantic Canada and (2) content analyses of current published economic development strategies/ policies in each of the various provinces of Atlantic Canada. ...
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... first leverage point on the adaptive change cycle falls just prior to a community entering the conservation stage on the cycle. At this point (labelled seeds of innovation, Figure 1A-C), policy-makers are aware business sectors dominating the economic activity in a community. The authors hypothesize that young businesses launched in earlier stages have closed by this point; those that have successfully competed for resources now define the area. ...
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... early will help diminish obstacles that could stall or prevent the community from progressing forward. As such, the recommendation is for policy dri- vers linked to the seeds of innovation leverage point to be applied at the midpoint of the 'front loop' of the adaptive change cycle and continue to the end of the conservation stage ( Figure 1C). This will allow plenty of time for targeted community policies to develop in preparation for the release stage. ...
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... seed bank, can provide components for renewal in a faster, smaller scale, e.g. a particular stand impacted by fire ( Holling et al. 2002b). In a community, this remember feature (Figure 1) could comprise supportive provincial policies that support new business ventures at the munici- pal level ( Holling et al. 2002b) or an excess of supply of a particular natural resource due to the closure or down- sizing of a downstream user. For example, a supportive community renewable energy policy at the provincial level could help increase market opportunities for renewable energy entrepreneurs at the smaller municipal level. ...
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... unchecked this collapse leads the community into a stage that in ecological terms would trigger the 'release' stage and the related processes referred to earlier. However, if the conditions preceding a collapse can be recognized and, thereby, the collapse anticipated, policy- makers and community leaders may be able put back- ward pressure on the cycle, pulling it back from conser- vation towards exploitation ( Figure 1B). This could be accomplished by supporting new product development within existing industries -intended to place them in niche markets globally and help them retain their compe- titiveness -as opposed to simply subsidizing a failing industry in its current form. ...
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... finding new niche markets for existing single indus- tries remains difficult, policy-makers and community lea- ders may still be able to help a community bypass the release stage and go straight into the reorganization stage ( Figure 1A). They can implement policies that support a reduced dependency of the region's supply chains and industry networks (i.e. its small-and medium-sized suppli- ers) on these single industries (Box 2). ...
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... leverage point exists just as a community begins to collapse in the release stage of the adaptive change cycle (Figure 1). This point, cultivation of creativity, will ideally create an amenable environment for businesses to test new ideas, develop novel products and experiment in new markets. ...
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... that survive these early tests could be instru- mental in moving the community in a new direction eco- nomically. As such, to support this 'amenable environment', policies must be applied at the start of the release stage and be sustained through to the middle of the 'back loop' (Figure 1). If one applies the panarchy lens then, to be successful, a policy intervention must occur early on, before the collapse is complete. ...
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... as a community can remember how to succeed in seeds of innovation, a community's failure can also spread, negatively influencing other communities in a region. Referred to as revolt in the panarchy model (Holling et al. 2002b), it is suggested that policy-makers must be cautious of this feature at the cultivation of creativity leverage point (Figure 1). In an ecosystem, the revolt feature takes place when a disturbance such as a forest fire or pest infestation in a small patch of forest eventually affects the entire stand ( Holling et al. 2002b). ...
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... third major leverage point exists between the middle of the 'back loop' and the end of the reorganization stage (Figure 1). This colonization of ideas leverage point is where one should target economic instruments that help move emerging businesses from the reorganization stage into the exploitation stage. ...
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... noted the importance of creativity from within as one mechanism for moving the community in a positive to be able to manage any economic downturns. As a small province, economic development officials and residents alike from Prince Edward Island recognize that the Island will always be reliant in part on its traditional, seasonal industries (PEI Official 1, 2, 3). Tourism, fishing and farming are seasonal industries and are expected to drive the economic success in the province now and into the future (PEI Official 2). ...
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... fourth minor leverage point exists at the end of the reorganization stage: laying fallow (Figure 1). In ecosys- tems, it is common for some resources to be lost from the system entirely between disturbance and recolonization such as during soil erosion (Holling & Gunderson 2002). ...

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... For example, Salvia and Quaranta (2015) consistently assess the state of social, economic, and natural capital for each adaptive phase in the analysis of agricultural systems (i.e., durum wheat, sheep, and goat farming) in the Basilicata region of southern Italy. Slight et al. (2016) likewise consistently describe the expected state of businesses, the workforce, infrastructure, and the population of a theoretical rural community as it passes through the phases of the adaptive cycle. Mhango and Dick (2011) also consistently assess the state of the political regime, food security, and GDP in Malawi across all the studied time periods. ...
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