The Interaction Engine Part 1: The Foundation of Growth - Chapter 1: The Science of Connection

A World Built on Networks

To develop a more holistic framework for economic growth, we, as economic and community developers, need to shift our thinking—toward thinking like economic ecologists.

The seeds of this book were planted for me the summer of 2020 while reading The Hidden Life of Trees: What They Feel, How They Communicate – Discoveries from a Secret World by Peter Wohlleben, a gift from my mother-in-law. In this fascinating work, Wohlleben reveals the extraordinary hidden networks beneath forests, showing how trees are not isolated entities but deeply connected members of a community. Using their roots and fungal networks, they share nutrients, warn each other of threats, and even "nurture" younger or ailing trees, ensuring the survival of the ecosystem as a whole. What struck me most deeply was the realization that our understanding of the world is limited by how much time we dedicate to truly observing it. Trees, for instance, don’t operate on a human timeline. They live at a pace that might seem slow to us, but if we take the time to look more closely, we begin to see two crucial things:

1. Networks and the laws that guide them are everywhere, often operating in ways we don't immediately recognize.
2. Our perception that human life, our pace, and our way of being are the only ones that matter is profoundly narrow. We tend to dismiss other forms of life as “less intelligent” because they don’t mimic our own kind of intelligence—an intelligence that has led us to explore our planet and our tiny corner of the universe at large. But in that dismissal, we miss out on so much we could learn from the organisms we often deem inferior.

What makes us truly special is not our ability to dominate nature or invent technology—it’s our capacity for empathy, learning, and making connections. If we embrace this, we can begin to see and build something far more sustainable and interconnected.

Imagine starting with a single human cell. Inside, an intricate network of organelles communicates through chemical signals and electrical impulses to sustain life. The mitochondria generate energy, the nucleus stores genetic instructions, and the endoplasmic reticulum processes proteins. These components are interdependent, and their coordination ensures the cell’s survival.

Scale up, and trillions of cells form the human body, linked by complex systems such as the circulatory system, which distributes oxygen and nutrients, and the nervous system, which enables rapid communication. Each system functions as part of a greater organism, whose health depends on the strength and adaptability of these networks.

But humans are not isolated. We’ve created networks of our own, such as businesses, which act like living organisms in many ways. Businesses take in resources, process them into products or services, and exchange value with their environments. Like cells in a body, they are interconnected within industries and supply chains, relying on networks to grow and survive.

Now step further back. These businesses exist within larger ecosystems—cities and economic regions—where networks take on even greater complexity. Geoffrey West, in his book Scale, describes how cities operate like superorganisms, thriving on dense, diverse networks that enable them to become more efficient and innovative as they grow. Cities exhibit “superlinear scaling,” where each additional connection amplifies their potential. These urban jungles are not just metaphors—they are dynamic ecosystems, much like forests, with layers of interdependence.

What binds these scales together, from cells to human systems to the vast ecosystems of cities, is the universal principle of networks. Networks form the foundation of life, growth, and achievement. They distribute resources, facilitate communication, and create opportunities for resilience and innovation. Without networks, no organism, business, or city could thrive. As we consider the future of economic development, the lesson is clear: understanding and designing networks intentionally is the key to creating systems that are sustainable, adaptive, and inclusive.

The key question, then, is this: What can we learn from the science of networks to better design systems for economic development?

A Networked Life: The Legacy of Lenore Simpson

At the time of writing this, I’m reflecting on the profound loss of one of the most influential figures in my life, Lenore Simpson. Lenore was more than a mentor—she was family. To my mom, she was a second mother, someone whose guidance shaped her career with sharp insights, a steady hand, and an unshakable belief in the power of connection. To me, she was an anchor, a source of wisdom and inspiration who profoundly influenced the way I see the world. She didn’t just teach me about business; she taught me about people—their complexities, their potential, and the importance of truly seeing them.

Lenore’s 95 years were nothing short of remarkable. Her life was a tapestry of accomplishments, humor, and an unyielding kindness that left an indelible mark on everyone who crossed her path. Yet even a life so full and impactful feels too brief for someone whose influence felt timeless, as if she carried with her a wisdom that existed beyond the constraints of time itself.

When I shared news of her passing on social media, I was overwhelmed by the sheer outpouring of responses. Messages poured in by the hundreds, each carrying a story, a memory, or a reflection of what Lenore meant to them. Former clients, colleagues, friends, and family members described her as someone who made people feel deeply seen. Lenore had a way of remembering the details that mattered. She could ask about your children by name, recall the goals you had once confided to her, or pick up on a story you’d told in passing, even years before. It wasn’t a performance; it was who she was. She paid attention in a way that made people feel valued, like their lives and their stories were worth remembering.

Lenore’s leadership in the business community of Windsor-Essex, Ontario made her an architect of a network that radiated care, trust, and opportunity. Her legacy wasn’t marked by grandiose gestures or proclamations. Instead, it was built in the countless small, deliberate acts that made others feel important, capable, and deeply understood. Every interaction with Lenore carried a sense of significance, no matter if you met her once, or saw her every day – You remembered her, and she remembered you.

This ability to connect on such a meaningful level was the cornerstone of Lenore’s life and work. It wasn’t simply about forming relationships; it was about nurturing them, tending to them, and ensuring they grew strong. Her legacy endures because of the countless ways she made those around her feel empowered and supported, creating a ripple effect that will be felt for generations.

?A Business Built on Purpose

Lenore’s professional legacy is inseparable from the business she built, Lenore Simpson Personnel, a so-called “temp” agency that became a pillar of opportunity in Windsor. Her billboards were a familiar sight, but what made her business indispensable wasn’t its visibility—it was Lenore herself. Employers turned to her not just to fill a role but because they trusted her to understand the nuances of their businesses. She had a unique ability to discern the cultural fit, the skills, and the intangible qualities that would turn a placement into a lasting success. Over time, her placements frequently grew into full-time roles and, for many, lifelong careers.

For job seekers, Lenore offered more than employment; she provided clarity and the confidence that comes from knowing someone genuinely believes in your potential. She had an extraordinary gift for seeing what people could become, even when they doubted themselves. Lenore’s ability to turn uncertainty into action was transformative.

She once shared a story about a young woman who came to her office feeling stuck. After working a series of short-term roles, she believed her résumé offered little of value and wasn’t sure what direction to take. Lenore sat down with her, listened carefully, and helped her see her strengths. She placed her in a role that aligned with her experience and passions, offering her the chance to rebuild her confidence. That woman went on to become a leader in her field, and she often credited Lenore with giving her the courage to take the first step.

Stories like these were the foundation of Lenore’s work. Her approach was never transactional—it was deeply personal. She understood that placing someone in the right role was more than matching a résumé to a job description; it was about opening doors and giving someone the opportunity to change their life.

The Heart of Her Business

What set Lenore apart was her ability to build relationships that truly mattered. Every conversation, every placement, every interaction was an opportunity to deepen her network and create lasting connections. She remembered more than names—she remembered the lives behind them: their families, their challenges, their ambitions. Over the years, she wove a web of trust and support that extended far beyond Windsor’s professional sphere.

Her office was more than a place of business—it was where lives intersected, and opportunities took root. Employers came to her because they knew she would find the right person for the job. Job seekers came because they trusted her to guide them forward. Both left with more than they expected.

Lenore’s intuitive understanding of people was complemented by her meticulous work ethic. She arrived at every meeting fully prepared, armed with detailed notes and a deep understanding of her clients and candidates. For Lenore, every placement was a partnership, and her thoroughness earned her the respect and trust of Windsor’s business community.

She excelled in environments where she was often the only woman in the room. Her confidence and charm were disarming, and her professionalism ensured she was always taken seriously. In spaces where women weren’t always welcomed as equals, Lenore turned the barriers she encountered into stepping stones, paving the way for herself and for others who followed.

Lenore’s impact wasn’t confined to her business success; it was reflected in the countless lives she touched, the relationships she nurtured, and the trust she built. She understood that success wasn’t measured by transactions, but by the legacy left in the lives of others—a legacy of connection, growth, and opportunity.

Reflections on Legacy

Lenore’s legacy is immense, not just because of what she accomplished, but because of how she made people feel. Her clients became lifelong friends. Her placements became cornerstones of businesses. Her advice shaped careers and gave people the courage to pursue more.

Even now, her impact ripples outward. The Lenore Simpson Memorial Scholarship, established at the University of Windsor, is one of the many ways her legacy endures. The scholarship, designed to support women in business, reflects Lenore’s belief in the power of entrepreneurship and her lifelong commitment to helping others succeed.

Beyond the formal recognitions, her legacy lives on in the stories people continue to share. It’s in the way someone talks about how she remembered their kids’ names or how she gave them advice at just the right time. It’s in the way she made people feel capable and seen, no matter their background or circumstances.

Her business may have been about connecting employers and employees, but her life’s work was about creating networks of trust, resilience, and opportunity. Lenore understood what so many of us strive to learn: that success is not measured in individual achievements, but in the lives we touch and the systems we leave behind to sustain others. Lenore was someone who saw what I could become long before I did. She encouraged me to take every step of my journey, no matter how unconventional, and use it to build something unique. She had a way of reframing the parts of my past I thought were unrelated, showing me how they were the very experiences that set me apart. Lenore’s voice still echoes in my mind whenever I question my approach—her belief that my work, my perspective, and my way of doing things had value beyond measure. She made me see that what felt like detours were, in fact, part of the path.

What Lenore gave me went far beyond advice; it was permission to be myself. As recently as last year, she was still actively reading updates LinkedIn and stayed current on the local business community in our region. It wasn't unusual for me to post a blog or an opinion in the morning and by noon get an email from Lenore, giving me her wholly unsugar-coated feedback. She encouraged me to lean into my individuality and use it as a strength, even when it meant doing things differently than others in the field. She showed me that growth isn’t about fitting into a mold—it’s about reshaping it to fit who you are. Lenore’s guidance was never prescriptive; it was empowering. She didn’t tell me what to do—she reminded me that I already had the tools to figure it out. That belief, that unwavering faith she had in me, continues to guide me in my work and my life. To say she left a mark on me feels like an understatement. Lenore shaped the very way I approach what I do and who I strive to be.

A Legacy of Connection

Lenore’s life and work demonstrated the transformative power of networks. Her ability to build ecosystems of trust and opportunity left a profound and enduring impact on Windsor’s professional community. The careers she shaped and the connections she fostered became integral to the growth and success of countless individuals and organizations.

Her placements created pivotal opportunities that reshaped lives and opened doors that might otherwise have remained closed. The ripple effects of her influence continue to strengthen the community, with many attributing their success to Lenore’s insight, guidance, and unwavering belief in their potential.

Lenore showed that networks are lifelines. They are the pathways through which trust, opportunity, and resilience flow, strengthening individuals and communities alike. Her legacy is a testament to the power of intentional connections and the enduring value they create, ensuring her impact will be felt for generations to come.

Businesses as Living Organisms in an Economic Ecosystem

It’s essential to recognize at this point in the book that businesses themselves are living organisms, deeply embedded within a broader economic ecosystem. Just as organisms in nature interact with their environment to survive and thrive, businesses engage with their surroundings—consuming resources, adapting to changes, and contributing to the networks they inhabit. Like cells in a body or species in an ecosystem, businesses grow, evolve, and sometimes fail, but their success is never in isolation. It depends on their ability to connect, adapt, and sustain themselves within a larger interdependent system.

Lenore Simpson Personnel is a vivid example of this concept in action. Lenore’s business wasn’t simply a standalone entity—it was a vital node in Windsor’s professional network. By following the same principles that govern successful systems in nature, she created an organism that not only survived but thrived. Connectivity, optimization, diversity, redundancy, feedback, and scalability weren’t just buzzwords—they were the core principles that allowed her business to function as a living, evolving part of the community.

Lenore’s success is a testament to the universality of these principles. Whether we’re discussing a single business, a network of businesses, or an individual within that network, the same science applies. Successful systems—be they biological, organizational, or economic—operate with efficiency, adaptability, and resilience because they follow the same natural rules.

For example, Lenore’s ability to foster deep connections mirrors the interconnectedness of a healthy ecosystem. Her network was built on trust, with resources (in this case, talent and opportunity) flowing through her as a central node. This connectivity created mutual benefits for employers and job seekers, much like the mycelium networks in a forest facilitate the exchange of nutrients between trees.

Similarly, her business exemplified optimization, ensuring that resources were directed where they would have the greatest impact. Lenore’s knack for identifying the right fit between employers and employees mirrored the efficiency of river systems, which distribute water to nourish even the most distant parts of an ecosystem. By aligning resources with needs, she ensured that her network functioned smoothly and sustainably.

Diversity played a critical role as well. Just as ecosystems are stronger and more resilient when composed of varied species, Lenore’s business thrived by bringing together people from all walks of life. Her ability to integrate diverse perspectives, skills, and experiences into Windsor’s professional community enhanced its resilience and adaptability, strengthening the network as a whole.

Feedback was another pillar of Lenore’s success. She listened carefully to her clients and job seekers, adapting her approach based on their evolving needs. In nature, feedback loops allow systems to self-regulate, ensuring balance and growth. In Lenore’s business, this principle ensured that she stayed relevant and effective, constantly improving her services and strengthening her relationships.

Finally, her business demonstrated scalability. Lenore started with a small, local operation, but her principles allowed her network to grow without losing the trust and personal connection that defined her work. Much like successful ecosystems and organisms, which expand in size and complexity while retaining their essential functions, Lenore’s business scaled in ways that amplified its impact while preserving its integrity.

The science behind Lenore’s success highlights an important truth: it doesn’t matter what kind of organism we examine—whether it’s a tree in a forest, a business in an economy, or an individual in a professional network. Thriving systems are governed by the same principles. Connectivity, optimization, diversity, redundancy, feedback, and scalability aren’t just characteristics of nature; they are universal rules that define the efficiency and resilience of any networked entity.

Lenore’s story illustrates how these principles apply not just to businesses but to individuals as well. A successful professional, like a successful business, thrives by connecting with others, responding to feedback, and adapting to change. By understanding and applying these natural principles, any organization—or person—can become a vital, thriving part of a larger ecosystem.

This is where the science comes in. Lenore didn’t need to study the natural world to intuitively apply its rules, but the same principles that made her business work so seamlessly are the same principles that sustain life. Recognizing businesses as living organisms within an economic ecosystem allows us to see their interdependence and the universal laws that drive their success. In doing so, we gain not only a better understanding of how to innovate but also a roadmap for creating systems that can thrive, adapt, and endure.

The Business Lifecycle: Survival and Evolution in Ecosystems

Geoffrey West’s Scale offers a groundbreaking perspective on businesses, viewing them as living organisms that metabolize energy to sustain themselves and grow. From the moment a company makes its first sale, it becomes "alive," consuming resources—represented by sales—to fuel its operations. Like organisms, businesses face constraints imposed by their metabolic rates, and their survival depends on how efficiently they manage these resources. West’s work highlights the fascinating lifecycle of businesses, particularly those that enter the stock market, where rapid growth often comes at the cost of longevity.

However, West’s insights are not the only ones that illuminate this relationship between businesses and ecosystems. James F. Moore’s concept of the "business ecosystem," introduced in his seminal 1993 Harvard Business Review article, “Predators and Prey: A New Ecology of Competition,” expands on this idea. Moore argues that businesses function as organisms within a dynamic economic community, interacting, co-evolving, and competing with one another to adapt and thrive. In this framework, companies are not isolated entities but integral components of a broader system, requiring symbiotic relationships with customers, suppliers, and even competitors. Much like species in a natural ecosystem, their survival depends on how effectively they collaborate and adapt to changing environments.

West’s metabolic analogy aligns with Moore’s idea of co-evolution. Smaller businesses, like small- and medium-sized enterprises (SMEs), act as the steady, resilient species in the ecosystem, with slower metabolic rates allowing for gradual adaptation and sustained lifespans. They provide stability and balance, functioning much like keystone species in nature. Conversely, larger, fast-moving companies—especially those publicly traded—behave like high-metabolism organisms, consuming resources at a rapid pace to fuel innovation and growth. While their bursts of energy drive substantial impacts, their intense resource consumption often shortens their lifespans, with many lasting only 50 years before being acquired, evolving, or collapsing.

The concept of organizational life cycles further strengthens this analogy. Similar to biological organisms, businesses progress through stages of birth, growth, maturity, and decline. Understanding these phases enables businesses to anticipate challenges and adapt strategies, ensuring longevity and resilience. For example, younger organizations may require rapid adaptation to establish themselves, while mature businesses need to innovate continuously to avoid stagnation and decline. These life cycles echo the patterns observed in nature, where species evolve and adapt to survive environmental pressures.

The diversity within business ecosystems also plays a crucial role, as Moore and other researchers emphasize. Just as biodiversity enhances the stability and resilience of natural ecosystems, a diverse network of businesses contributes to a healthier economy. Organizations with varied perspectives, skills, and approaches foster innovation and adaptability, enabling the entire system to respond to disruptions and seize opportunities. This principle aligns with Lenore Simpson’s approach at her company, where fostering diversity within her professional network strengthened not only the individual businesses she served but also Windsor’s broader economic fabric.

Feedback loops are another principle that connects these frameworks. In biological ecosystems, feedback ensures balance and self-regulation, allowing systems to respond to changing conditions. Similarly, businesses that actively listen to their customers, partners, and markets can adapt more effectively, maintaining relevance and competitive advantage. Lenore’s success as a central node in her professional network exemplifies this principle—her attentiveness to feedback kept her business adaptable and positioned her as a trusted resource within her community.

Finally, the concept of scalability ties these ideas together. In both natural and economic ecosystems, successful organisms and businesses grow by scaling their operations while retaining their core strengths. West’s work reveals how businesses that metabolize resources too quickly can falter under the strain of growth, while Moore’s research highlights the importance of intentional, balanced expansion within a network. Lenore Simpson Personnel serves as an example of how careful, deliberate growth can amplify impact while preserving the values and trust that form the foundation of success.

Taken together, these frameworks offer a compelling view of businesses as living participants in an economic ecosystem. Whether considering West’s metabolic principles, Moore’s co-evolutionary model, or the broader concepts of organizational life cycles and feedback, the science reveals universal truths. Thriving businesses—like thriving organisms—achieve success by aligning with the principles of connectivity, diversity, optimization, redundancy, feedback, and scalability. They create value not by existing in isolation but by embracing their interdependence within the broader system.

This understanding allows us to view businesses not as static entities but as dynamic, evolving participants in an interconnected world. Whether they are small, steady SMEs or fast-moving, high-impact enterprises, their survival and success depend on how effectively they adapt to and contribute to their environment. By applying these principles, we can design organizations and economic systems that are not only innovative and resilient but also sustainable over the long term.

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The Roles Businesses Play in the Ecosystem

In an ecosystem, every organism contributes to the balance and functionality of the whole. Keystone species shape environments for others, decomposers recycle resources, and pollinators enable reproduction and growth. Businesses, too, play distinct roles within the economic ecosystem, each contributing in unique ways to its overall health and resilience.

Small- and Medium-Sized Enterprises (SMEs)

SMEs are the backbone of economic ecosystems, comparable to foundational species in nature. These businesses are deeply rooted in their communities, providing stability through jobs, goods, and services that sustain daily life. Their adaptability and steady presence offer resilience during economic shocks, much like plants and smaller organisms anchor natural systems. SMEs don’t always dominate headlines, but their influence is profound—they are the steady pulse that keeps economies alive, ensuring that larger, more volatile players have a stable base to grow upon.

Innovation-Driven Enterprises (IDEs)

Innovation-Driven Enterprises function like apex predators or fast-evolving species, driving change and pushing boundaries. These companies often emerge from moments of disruption, introducing groundbreaking technologies or business models that redefine industries. Their rapid growth propels broader ecosystem evolution, sparking innovation that ripples across networks. However, just as apex predators depend on a stable environment to thrive, IDEs rely on the foundation provided by SMEs and supporting businesses. Without that base, their rapid metabolism can destabilize the ecosystem, much like overhunting or overgrowth can disrupt natural systems.

The transition of companies to the public markets through IPOs highlights this dynamic. IPOs mark the moment a company becomes “alive” in a new way, entering the broader economic ecosystem with intensified energy consumption. These companies face immense pressures to deliver growth, much like high-metabolism organisms burning through resources to sustain themselves. On average, their lifespans are limited—many publicly traded companies survive only about 50 years before they are acquired, collapse, or evolve into entirely new forms. Their impact during these years, however, can be transformative, catalyzing advancements that reshape industries and spark broader economic growth.

Supporting Businesses and Institutions

Just as ecosystems depend on decomposers, fungi, and pollinators to sustain balance, economies rely on a web of supporting businesses and institutions. These include logistics providers, financial services, and professional firms that connect, sustain, and amplify the efforts of both SMEs and IDEs. Often operating behind the scenes, these players enable the broader system to function by providing the infrastructure, expertise, and resources that other businesses depend on. Their contributions may go unnoticed, but without them, the economic ecosystem would collapse.

The Interplay of Roles

The health of the economic ecosystem depends on the interplay between these roles. SMEs provide stability, IDEs drive innovation, and supporting businesses keep the system functioning efficiently. Development organizations ensure that the network remains balanced and adaptable, stepping in to address weaknesses or foster collaboration. Together, these elements create a dynamic, interdependent system capable of evolving and thriving over time.

This perspective lays the foundation for the next chapter: "Why Networks Matter in Economic Development." By understanding the principles that govern ecosystems—connectivity, optimization, diversity, feedback, redundancy, and scalability—we can better design strategies that strengthen these networks. Economic and community development organizations are uniquely positioned to apply these principles, creating environments where businesses of all types can not only survive but contribute to the shared prosperity of the entire system.

Our Practitioner’s Bias: Cultivating the Entire Ecosystem

As economic and community development practitioners, we often find ourselves narrowly focused, with priorities dictated by funding structures and mandates. Governments and agencies frequently emphasize attracting high-growth Innovation-Driven Enterprises (IDEs), as their measurable impacts—jobs created, taxes generated, and investments secured—are easy to quantify and celebrate. IDEs play a crucial role as apex species in the economic ecosystem, driving innovation and industry transformation. But this singular focus often leaves critical blind spots.

By overlooking Small- and Medium-Sized Enterprises (SMEs), we risk undermining the foundational networks that sustain economic ecosystems. SMEs, like keystone species in a forest, provide stability and resilience. Their consistent contributions—whether through employment, local economic support, or steady growth—anchor the system and create the conditions for broader success. Ignoring the role of supporting businesses, those responsible for logistics, finance, and infrastructure, further destabilizes the economic fabric. These entities act as decomposers and pollinators in the system, facilitating the movement of resources, ensuring sustainability, and allowing growth to flourish.

Our narrow focus isn’t entirely self-imposed; it’s often a funding issue. Economic development organizations are typically resourced to pursue measurable wins, such as attracting IDEs or securing large investments. Rarely are we funded to take a holistic view of the ecosystem or to build the relationships and infrastructure that enable all parts of the system to thrive. This funding gap limits our ability to act as the mycelium of the economic ecosystem—the unseen network that connects, supports, and sustains every organism within it. A Special Note to Policy Makers: Supporting the Ecosystem as a Whole

To the policy makers reading this, the critical role you play in shaping economic ecosystems cannot be overstated. The policies you craft and the funding structures you oversee directly influence how economic and community development organizations prioritize their efforts. While the focus on Innovation-Driven Enterprises (IDEs) is vital and often yields measurable benefits, it is equally essential to recognize that a thriving economic ecosystem depends on the health of all its components, not just its apex species.

Here’s how you can help:

1. Provide Flexible Funding for Holistic Approaches Current funding structures often incentivize a narrow focus on high-growth IDEs because their impacts are easy to measure. However, this creates gaps in support for Small- and Medium-Sized Enterprises (SMEs) and the essential supporting businesses that act as the system’s connective tissue. Flexible funding models that prioritize ecosystem-wide health can enable practitioners to address these gaps, ensuring that resources flow where they are most needed.
2. Recognize the Value of SMEs and Supporting Businesses SMEs are the keystone species of the economic ecosystem, providing stability, resilience, and consistent contributions to communities. Supporting businesses—logistics providers, financial institutions, workforce development programs—are the decomposers and pollinators, facilitating resource flow and adaptability. Explicitly including these groups in economic development mandates ensures that the foundational networks of the economy remain robust.
3. Incentivize Collaboration Across the Ecosystem Encourage policies that foster collaboration between IDEs, SMEs, supporting businesses, and development organizations. For example, programs that reward partnerships or shared resource models between large-scale innovators and local SMEs can create a virtuous cycle of growth, innovation, and stability.
4. Invest in Network-Building Infrastructure Much like the mycelium in a forest, economic development organizations thrive when they have the tools and support to connect disparate parts of the system. Investments in digital platforms, collaborative spaces, and resource-sharing initiatives enable these organizations to act as the unseen but essential connectors of the ecosystem.
5. Adopt Metrics that Reflect Ecosystem Health Traditional success metrics like jobs created and investments secured are important but incomplete. Broader metrics that assess ecosystem health—such as SME growth, resource flow efficiency, and network strength—paint a clearer picture of long-term economic resilience. These metrics can guide funding decisions and policy priorities to ensure balanced, sustainable growth.

As policy makers, your role is to create the conditions where economic ecosystems can thrive. By broadening your focus to include all participants in the ecosystem, you can help build systems that are not only innovative and high-impact but also sustainable and resilient. This balanced approach ensures that the benefits of growth are felt widely, fostering a thriving, interconnected economy that serves communities for generations to come.

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Mycelium: The Invisible Foundation of Healthy Ecosystems

If there’s one thing that has always fascinated me, it’s mycelium. I’ve mentioned them a few times already, so I figured I should probably do a deep dive here. My apologies if it’s tangential, but my hopes are you will geek out as hard as I do about this. These incredible underground fungal networks connect the roots of trees in a forest, enabling them to exchange nutrients, water, and even information. Scientists often refer to mycelium as the "Wood Wide Web," and it’s a fitting name for a system that acts as nature’s communication and resource-distribution network.

Here’s where my inner science nerd comes out: mycelium networks are not just incredible—they are the largest organisms on the planet. One in Oregon spans over 3.5 miles and is thousands of years old. Imagine something so ancient and massive, quietly sustaining life aboveground while stretching its invisible tendrils across an entire forest. Are you with me? I cannot be the only one that thinks that is ridiculously cool.

Without mycelium, research has observed the ways forests begin to unravel. Trees disconnected from these networks grow weaker, their ability to exchange resources diminished. They become more vulnerable to disease and environmental stress. A fragmented forest is an unstable forest, and without the mycelium to bind it together, the entire ecosystem risks collapse.

This is a perfect metaphor for economic development. Economic and community development organizations are the mycelium of the economic ecosystem, facilitating connections that businesses depend on to thrive. Without strong networks, businesses operate in isolation, unable to share resources, respond to change, or support one another. The health of the entire system suffers.

The Power of Networks: Building Adaptive Economic Systems

Strong networks are the lifeblood of economic ecosystems, enabling connectivity, collaboration, and resilience. For economic and community development practitioners, our work is to create systems where businesses of all types—IDEs, SMEs, and supporting institutions—interact dynamically, reinforcing each other’s strengths.

Natural ecosystems provide a guide for how this works:

• IDEs drive innovation, bringing new technologies and products to market, but their growth depends on stable supply chains and services provided by SMEs.
• SMEs benefit from the innovation and expanded markets IDEs create, using these opportunities to grow and strengthen local economies.
• Supporting institutions, such as workforce development programs and financial services, act as the pollinators and decomposers, connecting and sustaining the system by ensuring resources and talent flow where they’re needed.

By fostering these connections, economic development practitioners ensure that the system becomes adaptive and resilient, capable of evolving in response to challenges and opportunities alike.

Moving Forward: An Ecological Mindset

To embrace an ecological mindset is to rethink how we approach economic development. Instead of prioritizing isolated wins, we focus on the health of the entire system. Our role isn’t to act as apex species but to be the unseen infrastructure that enables collaboration, distributes resources, and strengthens relationships. I asked this question earlier in this chapter, and now I think we’re ready to answer it. What Can We Learn from the Science of Networks to Better Design Systems for Economic Development?

The science of networks offers profound insights into designing systems for economic development by revealing universal principles that govern the resilience, adaptability, and efficiency of interconnected systems. Whether we look at neural pathways in the brain, mycelium in forests, or urban infrastructures, the same principles apply: connectivity, optimization, diversity, feedback, redundancy, and scalability. These principles are the foundation of thriving systems, and they provide a roadmap for creating economic ecosystems that are robust and inclusive.

1. Connectivity: Building Interdependence

Networks thrive on connections. In economic development, this means fostering robust relationships between businesses, institutions, and communities. Connectivity ensures that resources, talent, and opportunities flow efficiently across the system. For example, linking Innovation-Driven Enterprises (IDEs) with Small- and Medium-Sized Enterprises (SMEs) creates mutual benefits: IDEs gain reliable suppliers and niche expertise, while SMEs access new markets and innovation. Strong connections amplify collective resilience and drive shared growth.

2. Optimization: Allocating Resources Effectively

The science of networks demonstrates that successful systems optimize resource flow to minimize waste and maximize impact. In economic ecosystems, this involves aligning resources—such as capital, talent, and infrastructure—with areas of greatest need or opportunity. Programs that bridge gaps in workforce skills or improve access to funding for underserved businesses mirror the efficiency of natural systems, like river networks delivering water to sustain life.

3. Diversity: Enhancing Resilience

Diverse networks are stronger and more adaptive. In ecosystems, biodiversity ensures balance and the ability to recover from shocks. Similarly, diverse economic systems—featuring a mix of IDEs, SMEs, and supporting institutions—are better equipped to withstand disruptions and seize opportunities. Prioritizing diversity in industries, perspectives, and participants fosters innovation and long-term sustainability.

4. Feedback: Learning and Adapting

Feedback loops are essential for growth and resilience. Just as ecosystems self-regulate based on environmental inputs, economic systems thrive when feedback informs decision-making. Listening to businesses, communities, and stakeholders allows economic development practitioners to adapt strategies to meet real needs. For instance, workforce development programs that continuously assess employer demands and adjust training initiatives demonstrate the power of responsive systems.

5. Redundancy: Building Resilience Against Shocks

Networks with built-in redundancies are more resilient. In nature, mycelium creates multiple pathways for resource flow, ensuring continuity even if part of the network is disrupted. Similarly, economic ecosystems benefit from diversified supply chains, alternative funding sources, and robust support systems that provide backup during crises. Redundancy prevents single points of failure and ensures stability during uncertainty.

6. Scalability: Expanding Without Losing Integrity

Successful networks scale in ways that retain their core functionality. In economic development, this means designing systems that grow while preserving their values and connections. For example, local clusters of businesses can scale into regional hubs without losing their local ties, ensuring that growth benefits the entire community. Policies that prioritize equitable resource distribution and foster collaboration across scales help ensure sustainable expansion.

Applying the Science of Networks to Economic Development

The science of networks shifts our perspective from focusing on isolated successes to designing systems that thrive as a whole. It shows us that economies are not mechanical systems but dynamic ecosystems, where the health of the network determines the health of its parts.

To better design systems for economic development, we must think like ecologists, prioritizing connectivity, balance, and adaptability. Economic development organizations can act as the "mycelium" of their ecosystems, fostering relationships, enabling collaboration, and ensuring resources flow where they are needed most. Policy makers can support this by funding initiatives that strengthen networks rather than just chasing isolated metrics like job creation or investment secured.

In essence, the science of networks teaches us to embrace complexity, to design for interdependence, and to measure success not by singular achievements but by the resilience and adaptability of the entire system. This perspective isn’t just a strategy—it’s a paradigm shift, one that has the potential to create thriving, equitable economies that stand the test of time.

This requires asking new questions that we will answer in the chapters to come:

• How can we overcome funding limitations to invest in holistic, long-term strategies?
• How can we become the mycelium of our economic ecosystems, ensuring that every part of the system is connected and supported?
• How do we design interventions that strengthen not just individual businesses but the networks that sustain them?

Networks: The Foundation of Economic Development

These questions lead us to the next chapter: Why Networks Matter in Economic Development. By applying the principles observed in natural ecosystems—connectivity, optimization, diversity, feedback, redundancy, and scalability—we can design economic systems and programs that are not only thriving but enduring.

Just as mycelium sustains forests by connecting every tree, our role as practitioners of Economic and Community Development is to ensure that networks remain healthy and functional. The work requires intentionality, collaboration, and a commitment to fostering shared growth and resilience. In the chapters to come, we’ll explore how networks amplify opportunity, drive innovation, and create resilient economic systems capable of meeting the challenges of the future.

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