SHAMOKIN DAM -- A Harrisburg-based think tank on Thursday outlined the Central Susquehanna Valley's long-term economic outlook.

The message: Area leaders and businesses need to work together to promote regionalism.

"The resources necessary to make large strides are only going to come from the region pooling its resources and political capital," said Stephen Herzenberg, executive director of the Keystone Research Center.

"It's got to be about working together," he said.

The big picture, Mr. Herzenberg says, seems to be that while the Susquehanna Valley is not in free fall -- job growth here has been steady since the late 1980s -- there is plenty of hard work left to be done.

"Rural Pennsylvania is at a crossroads," Mr. Herzenberg told a group of more than 50 leaders and professionals Thursday at a Greater Susquehanna Valley Chamber of Commerce-sponsored luncheon.

"Business as usual and policy as usual won't be sufficient to sustain rural Pennsylvania in the future."

Mr. Herzenberg said rural Pennsylvania, including the Central Susquehanna Valley, will need to take steps to ensure its continued growth and success. He pushed for a move toward regionalism, more investment in area towns, the building of work force training partnerships and implementing of industry cluster strategies.

"We need to think of economic development less in terms of the firm' and more in terms of firms," Mr. Herzenberg said. "You have to look for mini Silicon Valleys."

Snyder County's focus on wood products is one example of an industry cluster. The Susquehanna Valley needs more of that, Mr. Herzenberg said.

The Valley also needs to develop business strategies for its rural regions. It needs to invest in education and skills, strengthen health and retirement security and enact progressive taxation. Mr. Herzenberg said rural Pennsylvanians tend to earns less than those in urban areas, so it makes little sense for rural politicians to promote the kinds of regressive taxes that hurt their constituents.

"Pennsylvania has one of the 10 worst regressive tax structures. The folks at the top are paying a third or less in taxes than the folks at the bottom," he said.

Rural Pennsylvania needs to rely on its people. Smart, creative and energetic employees will lead the way toward a thriving Central Susquehanna Valley, Mr. Herzenberg said.

And while smart and creative doesn't necessarily mean more educated, only 17 percent of people in the Central Susquehanna Valley have college degrees. That number needs to climb, Mr. Herzenberg said.

Mr. Herzenberg said the burst of the housing market bubble may mean there could be some difficult economic times ahead. But he urged against taking the short view.