Anchor institutions and local economic development through procurement : an analysis of strategies to stimulate the growth of local and minority enterprises through supplier linkages

Abstract

Anchor institutions, such as hospitals and universities are increasingly engaging in community and economic development initiatives in their host cities. Annually, these institutions spend millions of dollar on a variety of goods services. If these dollars were redirected to purchasing local and to minority-owned firms, the anchors' purchasing power could have enormous impacts on the local and regional economies. The thesis examines two case studies of anchor institutions, the University of Pennsylvania and University Hospitals, which engaged in community and economic development in their cities. It particularly examines the strategies developed to successfully implement procurement programs that enabled the growth of local and minority-owned firms. The thesis seeks to understand how cities like Springfield, Massachusetts, with high unemployment and poverty rates, could utilize anchor institutions to stimulate local economic development.