Regional Innovation Systems

REGIONAL INNOVATION SYSTEMS AS THE KEY TO GLOBAL

COMPETITIVENESS: IMPLICATIONS FOR RURAL AREAS AND WORKERS

by

David Barkley and Mark S. Henry, Professors

and

Santosh Nair, Research Associate

Department of Applied Economics & StatisticsClemson University

The Global EconomyThe Knowledge EconomyThe High-Tech Economy

The New Economy

Changes in TechnologyChanges in Production Practices

Changes in Location of Economic ActivityChanges in the Demand for Labor

Regional Innovation Systems

Research Triangle Park, (NC)

International Center for Automotive Research (SC)

Scripps Institute East Coast Facility (FL)

Translational Genomics Research Institute (AZ)

Oregon Nanotechnology & Microtechnologies Institute

Stowers Institute for Medical Research (MO/KN)

Table 1. Summary Characteristics of the “Old” and “New” Economies

Old Economy

Oligopolistic Product Markets

New Economy

Rapidly Expanding Service SectorLarge-Scale Manufacturing Intense International Competition

Standardized Products Small-Batch Production Runs

Assembly Line Production Just-In-Time Inventory Replacement

Vertically Integrated Firms Product Specialization

Long Product Life Cycles Robotics

Separability of Activities Computer-Integrated manufacturing

Information and Communication Technologies

Vertically Disintegrated Firms

Table 2. Employment Change by Industry, Metro Vs. Nonmetro, 1990-2000

Percentage Change in Employment

U. S. South

Metro Nonmetro Metro Nonmetro

Total

20.0%

17.6% 28.3% 17.1%

Farm 1.4 -3.5 -.2 -1.0

Construction 29.1 35.8 37.3 33.0

Manufacturing -4.3 2.8 .4 -5.5

Trans. & Pub. Utilities 27.0 18.3 38.1 19.4

Wholesale Trade 12.9 12.6 22.6 11.5

Retail Trade 18.6 20.8 26.7 21.9

Fin., Ins., and R. E. 22.0 34.9 32.3 31.7

Services 37.6 33.2 49.1 41.6

Government 6.9 13.5 10.9 15.7

Federal Civilian -11.6 -1.7 -9.1 5.0

Military -23.7 -23.6 -15.4 -20.4

State & Local 17.0 20.6 22.7 22.1

Source: BEA, REIS.

Industry

A. Growing Industries

Employment

Change

(000)

Percent

Change

Retail trade 2,082.0 1.3

Employment services 1,763.5 4.4

State and local government education 1,730.0 1.6

Food services and drinking places 1,337.3 1.5

Offices of health practitioners 1,228.9 3.3

Construction 1,013.7 1.4

Educational services 759.2 2.6

Ambulatory health care services except offices of health practitioners

669.8 3.9

State and local general government, n.e.c. 669.7 .9

Wholesale trade 638.2 1.1

Source: Berman, 2004

Table 3. Industries with the Largest Wage and Salary Employment Growth and Declines, 2002-2012

Industry

B. Declining Industries

Employment Change (000)

Percent Change

Agricultural products -323.6 -1.8

Cut and sew apparel manufacturing -204.7 -12.2

Aerospace product and parts manufacturing -82.6 -1.9

Semiconductor and other electronic component manufacturing

-79.4 -1.6

Computer and peripheral equipment manufacturing

-67.7 -3.1

Fabric mills -67.0 -6.9

Navigational, measuring, electromedical, and control instruments manufacturing

-55.0 -1.3

Private households -54.3 -.7

Textile and fabric finishing and fabric coating mills

-42.3 -6.9

Pulp, paper and paperboard mills -41.8 -2.8

Table 3. Industries with the Largest Wage and Salary

Employment Growth and Declines, 2002-2012 (cont.)

Source: Berman, 2004

Table 4. Average Wages in Expanding and Contracting Industries, 2002-2003

Expanding Industries

Contracting Industries Difference

South Atlantic

Delaware $28,407 $49,609 -43%

Maryland 32,535 48,008 -32%

Dist. Of Columbia 42,413 62,721 -32%

Virginia 29,375 46,323 -37%

West Virginia 22,805 33,832 -33%

North Carolina 33,926 38,041 -11%

South Carolina 31,012 36,986 -16%

Georgia 34,418 44,481 -23%

Florida 29,979 35,352 -15%



East South Central

Kentucky

$29,035

$37,371

-22%

Tennessee 31.844 36,881 -14%

Alabama 28,584 36,577 -22%

Mississippi 26,764 30,638 -13%

Table 4. Average Wages in Expanding and Contracting Industries, 2002-2003 (cont.)



West South Central

Arkansas 27,256 31,869 -14%

Louisiana 26,408 39,550 -33%

Oklahoma 25,259 35,917 -30%

Texas 31,663 48,751 -35%

United States $35,410 $44,570 -21%

Source: Economic Policy Institute, 2004.

Table 4. Average Wages in Expanding and Contracting Industries, 2002-2003 (cont.)

Table 5. Employment Distribution and Change by Occupation, South and U.S., 1999-2002

Shares (1999) % Change 1999-2002

Occupation U. S. South U. S. South

Officials and Managers

10.5%

10.0% 1.7% 2.1%

Professionals 15.7 13.1 5.3 5.6

Technicians 6.1 5.6 -.9 2.8

Sales Workers 12.2 13.0 -.8 -4.0

Office and Clerical Workers

14.4 13.6 -2.7 .1

Craft Workers 8.0 8.9 -6.8 -4.7

Operatives 13.9 16.0 -10.7 -12.7

Laborers 7.9 8.7 -3.2 -2.1

Service Workers 11.3 11.1 6.0 4.9

Total 100.0 100.0 -1.1 -1.5

Source: The U.S. Equal Employment Opportunity Commission.

Table 6. Occupations with Largest Job Decline, United States, 2002-2012

Occupation

Quartile Rank by 2002 Median

Income

Typical Source of Education or Training

1. Farmers and ranchers 3 Long-term on-the-job training

2. Sewing machine operators 4 Moderate-term on-the-job training

3. Word processors and typists 3 Moderate-term on-the-job training

4. Stock clerks and order fillers 4 Short-term on-the-job training

5. Secretaries, except legal, medical, and executive

3 Moderate-term on-the-job training

6. Electrical and electronic equipment

3 Short-term on-the-job training

7. Computer operators 2 Moderate-term on-the-job training

8. Telephone operators

9. Postal service mail sorters, processors, and processing machine operators

10. Loan interviewers and clients

2

2

2

Moderate-term on-the-job training

Short-term on-the-job training


Source: Hecker, 2004

Table 6. Occupations with Largest Job Decline, United States, 2002-2012 (cont.)

OccupationQuartile Rank By 2002

Median Income


11. Data entry keyers 3 Moderate-term on-the-job raining

12. Telemarketers 4 Short-term on-the-job training

13. Textile knitting and weaving machine setters, operators, and lenders

3 Long-term on-the-job training

14. Textile winding, twisting, and drawing out machine setters, operators, and lenders


15. Team assemblers 3 Moderate-term on-the-job training

16. Order clerks 3 Short-term on-the-job training

17. Door-to-door sales workers, news and and street vendors, and retail workers


18. Travel agents 3 Postsecondary vocational award

19. Brokerage clerks 2 Moderate-term on-the-job training

20. Eligibility interviewers, government programs



Table 7. Occupations with Largest Job Growth,

United States, 2002-2012

Occupation

Quartile RankBy 2002

Median Earnings

Typical Source Of Education Or Training

1. Registered nurses 1 Associate degree

2. Postsecondary teachers 1 Doctoral degree

3. Retail salespersons 4 Short-term on-the-job training

4. Customer service representatives 3 Moderate-term on-the-job training

5. Combined tool preparation and serving workers, including fast food


6. Cashiers, except gaming 4 Short-term on-the-job training

7. Janitors, and cleaners, except maids and housekeeping cleaners


8. General and operations managers 1 Bachelor’s or higher degree, plus work experience

9. Waiters and waitresses 4 Short-term on-the-job training

10. Nursing aids, orderlies, and attendants 3 Short-term on-the-job training


Table 7. Occupations with Largest Job Growth,

United States, 2002-2012 (cont).

Occupation

Quartile Rankby 2002

Median Earnings

Typical Source of Education Or Training

11. Truck drivers, heavy and tractor-trailer 2 Moderate-term on-the-job training

12. Receptionists and Information clerks 3 Short-term on-the-job training

13. Security Guards 4 Short-term on-the-job training

14. Office clerks, general 3 Short-term on-the-job training

15. Teacher assistants 4 Short-term on-the-job training

16. Sales representatives, wholesale and manufacturing, except technical and

scientific products


17. Home health aides 4 Short-term on-the-job training

18. Personal and home care aides 4 Short-term on-the-job training

19. Truck drivers, light or delivery services 3 Short-term on-the-job training

20. Landscaping and groundskeeping workers



Table 8. Fastest Growing Occupations, United States, 2002-2012


OccupationQuartile Rank by

2002 Median Income


1. Medical assistants 3 Moderate-term on-the-job training

2. Network systems and data communications analysts

1 Bachelor’s degree

3. Physician assistants 1 Bachelor’s degree

4. Social and human service assistants 3 Moderate-term on-the-job training

5. Home health aides 4 Short-term on-the-job training

6. Medical records and health information technicians

7. Physical therapist aides

8. Computer software engineers, applications 9. Computer software engineers, systems software

3

3

1

1

Associate degree


Bachelor’s degree

Bachelor’s degree

10. Physical therapist assistants 2 Associate degree

Table 8. Fastest Growing Occupations, United States, 2002-2012 (cont.)


OccupationQuartile Rank by

2002 Median Income


11. Fitness trainers and aerobics instructors 3 Postsecondary vocational award

12. Database administrators

1 Bachelor’s degree

13. Veterinary technologists and technicians 3 Associate degree

14. Hazardous materials removal workers 2 Moderate-term on-the-job training

15. Dental hygienists 1 Associate degree

16. Occupational therapist aides

17. Dental assistants

18. Personal and home care aides 19. Self-enrichment education teachers

3

3

4

2


Moderate-term on-the-job training


Work experience in a related occupation

20. Computer systems analysts 1 Bachelor’s degree

Table 9. Elements of Regional Systems of Innovation (Acs, 2002).

A. Inter-firm relationships 1. Network economies2. Clusters3. Supplier chains as source of innovation4. Cooperation and trust

B. The knowledge infrastructure 1. University research2. Focus new product R&D3. External sources of knowledge4. Local R&D spillovers

C. Community and the public 1. Emphasis on regional level sector 2. Public-private partnerships

3. Community, cooperation and trust

D. Internal organization of the firm 1. Organic organization 2. Continuous innovation 3. Matrix organizations

E. Institutions of the financial sector 1. Venture capital 2. Informal financial sector

F. Physical and communication 1. Global orientationinfrastructure 2. Electronic data exchange

G. Firm strategy, structure and rivalry 1. Easy to start new firms 2. Inexpensive access to

knowledge 3. Entrepreneurship is crucial

Table 9. Elements of Regional Systems of Innovation (Acs, 2002). (cont.)

Table 10. Examples of Innovation Measures Used in Previous Research on Innovative Activity or Capacity

A. Innovative Activity or Capacity

Patents

Academic R & D Expenditures

Industrial R & D Expenditures

Federal R & D Expenditures

Innovation Counts

Small Business Innovation Research (SBIR) Grants

Undergraduate/Graduate Degrees in Science and Engineering

Professional Employment in High Tech Industries


(Cont.)

B. Human Capital or Labor Quality

High School Graduates as % of Population

College Graduates as % of Population

Technical School Graduates as % of Population

Working Age Population

Managerial, Professional, and Technical Employment

Online Population

Computer Availability and Use in Schools


(Cont.)

C. Entrepreneurial Environment

Venture Capital Investments

Initial Public Offerings

New Publicly Traded Companies

Employment in “Gazelle” Firms

New Business Start-Ups

Job Churning (product of business start-ups and business failures)

Small Business Employment

Employment/Establishments in Business Services

Diversity of Population

Table 10. Continued

D. Agglomeration Economies

Employment/Establishments in High Technology Industries

Inc. 500 Companies

Population Density

Density of Establishments

Export Activity

Manufacturing Employment Growth Rate

Importance of Regional Economy to U.S. Economy

E. Competitiveness of Local Economy

Sources: Huovari (2001), Hill (1998), Catalytix (2003), Porter (2001), SGBP (2001, 2002), Atkinson and Gottlieb (2001), Gardiner (2003), Markusen (2001), Acs (2002), Florida (2002).

National State Technology & Science Index Overall Index, 2004

Rank Rank State (2004) State (2004)

Massachusetts 1 New Mexico 14California 2 New York 15Colorado 3 Pennsylvania 16Maryland 4 Arizona 17Virginia 5 Georgia 18Washington 6 Oregon 19New Jersey 7 North Carolina 20Minnesota 8 Illinois 21Utah 9 Vermont 22Connecticut 10 Texas 23Rhode Island 11 Ohio 24New Hampshire 12 Michigan 25Delaware 13

National State Technology & Science Index Overall Index, 2004 (cont.)

Rank Rank State (2004) State (2004)

Kansas 26 Hawaii 39Wisconsin 27 Alaska 40Nebraska 28 Wyoming 41Indiana 29 Louisiana 42Idaho 30 Nevada 43Missouri 31 South Carolina 44Florida 32 North Dakota 45Maine 33 West Virginia 46Tennessee 34 South Dakota 47Oklahoma 35 Kentucky 48Alabama 36 Arkansas 49Iowa 37 Mississippi 50Montana 38

Source: DeVol and Kuepp (2004).

Table 11. Selected Measures of Metropolitan Innovative Environment

A. Innovative Activity

PATENT: Number of patents issued per 1000 population (USPTO, 1990-99)

ARD: Academic R&D expenditures per 1000 population (NSF, 1998-2000)

SED: Doctorates awarded in science and engineering per 1000 population (NSF, 1998-2000)

GSS Graduate science and engineering students per 1000 population (NS, 1998-2000)

ETEC: Percentage of employment in technical professions – computer science; engineering except civil; natural, physical, and social science (BLS, 2000)

Table 11. Selected Measures of Metropolitan Innovative Environment (cont.)

B. Labor Force Quality

PHSG: Percentage of adult population (25+) that are high school graduates (CBP, 2000)

PCG: Percentage of adult population (25+) that are college graduates (CBP, 2000)

PWP: Percentage of population (age 16-64) that are employed (Census, 2000)


C. Entrepreneurial Environment

PCEST: Percentage change in number of establishments (CBP, 1990-2000)

PEL2O: Percentage of establishments with fewer than 20 employees (BLS, 2000)

INC500: Number of Inc 500 companies per 100,000 population (www.inc500.com, 2000)

VCAP: Venture capital investments ($) per capita (Price Waterhouse Coopers, 2000)

EMB: Percentage of employment in managerial and business professions (BLS, 2000)

http://www.inc500.com/


D. Agglomeration Economics

HTEMP: Percentage of employment in high-technology industries (CBP, 2000)

HTEST: Percentage of establishments in high technology industries (CBP, 2000)

ITEMP: Percentage of employment in information technology industries (CBP, 2000)

ITEST: Percentage of establishments in information technology industries (CBP, 2000)

E. Competitiveness in Global Economy

EXPORTS: Exports as a percent of gross metropolitan product, metro areas ranked in quantiles (DOC, 1999)

Table 12. Metropolitan Areas in Regional Innovation Systems Cluster Groupings

1. Outliers (4)

Atlanta, GA CMSAAustin, TX MSARaleigh, Durham, Chapel Hill, NC

CMSABaton Rouge, LA MSA

2. High (12)

Dallas-Fort Worth-Arlington, TX CMSAHouston-Galveston-Brazoria, TX CMSAHuntsville, AL MSAMelbourne-Titusville-Palm Bay, FL MSAOrlando, FL MSAPensacola, FL MSARichmond-Petersburg, VA MSASan Antonio, TX MSASarasota-Bradenton, FL MSATampa-St. Petersbusrg-Clearwater, FL

MSATulsa, OK MSAWest Palm Beach-Boca Raton, FL MSA

Table 12. Metropolitan Areas in Regional Innovation Systems Cluster Groupings (cont.)

3. College Towns (5)

Athens, GA MSABryan-College Station, TX MSACharlottesville, VA MSAGainesville, FL MSATallahassee, FL MSA

4. Medium (20)

Augusta-Aiken, GA-SC MSABirmingham, AL MSACharleston-North Charleston, SC MSACharlotte-Gastonia-Rock Hill, NC-SC MSACincinnati-Hamilton, OH-KY-IN MSAColumbia, SC MSAGreensboro--Winston-Salem–High Point,

NC MSAGreenville-Spartanburg-Anderson, SC MSAJackson, MS MSAJacksonville, FL MSAKnoxville, TN MSALexington, KY-IN MSAMemphis, TN-AR-MS MSANashville, TN MSANew Orleans, LA MSANorfolk-Virginia Beach-Newport News,

VA-NC MSA Oklahoma City, OK MSA

Roanoke, VA MSAWilmington, NC MSA


5. Below Average (47)

Abilene, TX MSAAlbany, GA MSAAlexandria, LA MSAAmarillo, TX MSAAshville, NC MSAAuburn-Opelika, AL MSABeaumont-Port Arthur, TX MSABiloxi-Gulfport-Pascagoula, MS MSAChattanooga, TN-GA MSAClarksville-Hopkinsville, TN-KY MSAColumbus, GA MSACorpus Christi, TX MSADecatur, AL MSADothan, AL MSAEnid, OK MSAEvansville-Henderson, IN-KY MSAFayetteville, NC MSAFayetteville-Springdale-Rogers, AR MSAFlorence, SC MSA

Fort Smith, AR-OK MSAFort Walton Beach, FL MSAGoldsboro, NC MSAGreenville, NC MSAHattiesburg, MS MSAHickory-Morganton-Lenoir, NC MSAJackson, TN MSAJacksonville, NC MSAJonesboro, AR MSAKilleen-Temple, TX MSALafayette, LA MSALake Charles, LA MSALakeland-Winter Haven, FL MSALawton, OK MSALittle Rock-North Little Rock, AR MSALong View-Marshall, TX MSALubbock, TX MSALynchburg, VA MSA


5. Below Average (47) (cont.)

Macon, GA MSAMobile, AL MSAMonroe, LA MSAMontgomery, AL MSAMyrtle Beach, SC MSAOdessa-Midland, TX MSAOwensboro, KY MSAPanama City, FL MSAPine Bluff, AR MSARocky Mount, NC MSASan Angelo, TX MSASavannah, GA MSASherman-Denison, TX MSAShreveport-Bossier City, LA MSASumter, SC MSATuscaloosa, AL MSATyler, TX MSAVictoria, TX MSAWaco, TX MSAWichita Falls, TX MSA

6. Low (18)

Anniston, AL MSA Brownsville-Harlingen-San Benito, TX MSA Danville, VA MSA Daytona Beach, FL MSA El Paso, TX MSA Florence, AL MSA Fort Myers-Cape Coral, FL MSA Fort Pierce-Port St. Lucie, FL MSA Gadsden, AL MSA Houma, LA MSA Huntington-Ashland, WY-KY-OH MSA Johnson City-Kingsport-Bristol, TN-VA MSA Laredo, TX MSA McAllen-Edinburg-Mission, TX MSA Naples, FL MSA Ocala, FL MSA Punta Gorda, FL MSA Texarkana, TX-Texarkana, AR MSA

Map 1: Persistent Poverty and RIS Counties, Southeastern United States, 2000

COUNTIES

Poverty

Persistent Poverty Counties

Metro Counties

RIS Counties

Other Non Metro Counties

Map 2: Persistent Poverty and RIS (Including Medium) Counties, Southeastern United States, 2000

Counties

Poverty

Persistent Poverty Counties

Metro Counties

RIS Metro Counties

Other Non-Metro Counties

Table 13. Mean Values for Indicators of Innovation by Cluster Grouping

Indicators Outliers High College Towns Medium Average Low

1. Innovative Activity

PATENT: Patents issued .58 .20 .24 .14 .08 .07

ARD: Academic R&D 482.34 47.59 1357.06 86.79 51.52 2.57

ETEC: Employment in Tech. Prof. 7.25 4.02 3.29 2.86 1.65 1.03

2. Labor Force Quality

PHSG: High School Graduates 84.03 82.09 83.88 81.09 78.48 71.96

PCG: College Graduates 33.13 25.38 37.32 24.47 19.23 16.10

PWP: Working Population 69.28 62.42 64.82 65.66 63.29 54.40

3. Entrepreneurial Environment

PCEST: Change in Establishments 39.65 22.41 19.90 22.54 13.95 33.19

PEL20: Establishments < 20 emp. (%) 84.33 85.86 86.00 84.06 85.08 87.71

INC500: Inc. 500 Companies (%) 8.25 0.25 0.00 1.45 0.05 0.00

VCAP: Venture Capital ($) 386.71 281.53 122.62 44.13 7.57 0.00

73EMP: Business Services Emp. (%) 9.67 11.16 5.92 7.72 5.51 5.52

73EST: Business Services Estab. (%) 7.81 7.26 5.83 5.88 4.44 4.63

EMB: Emp. In Mng. And Bus. Prof. (%) 12.67 7.33 7.48 7.06 5.49 4.39

4. Agglomeration Economics

HTEMP: High Tech Employment 11.40 7.46 4.53 6.60 5.10 3.25

HTEST: High Tech Establishments 9.55 8.73 9.14 6.75 5.56 4.76

5. Competitiveness

EXPORT: Export Rank (1-4) 3.75 3.17 1.20 3.40 1.49 1.89

Table 14. Changes in Aggregate Economic Activity by Cluster Groupings, 1990-2000

Change in Change in Change in Personal Earnings by Earnings by Cluster Grouping Income Place of Work Place of Residence (%) (%) (%)

A. Metro Counties

Outliers (32)a 128.27 149.24 130.82

High (58) 96.26 99.92 98.87

College Towns (13) 91.23 98.74 90.93

Medium (113) 84.86 93.16 81.20

Below Average (106) 76.63 73.80 73.65

Low (33) 73.53 63.84 65.44

a Number of metro or nonmetro counties in the cluster grouping.

Table 14. Changes in Aggregate Economic Activity by Cluster Groupings, 1990-2000 (cont.)

Change in Change in Cluster Grouping Employment Population (%) (%)

A. Metro Counties

Outliers (32)a

62.26 44.27

High (58) 42.20 28.25

College Towns (13) 42.61 31.74

Medium (113) 34.51 20.27

Below Average (106) 26.88 14.69

Low (33) 24.27 17.87a Number of metro or nonmetro counties in the cluster grouping.


Change in Change in Change in Personal Earnings by Earnings by Cluster Grouping Income Place of Work Place of Residence (%) (%) (%)

B. Monmetro Counties

Outliers (31) 87.28 81.02 89.38

High (40) 78.54 73.43 80.05

College Towns (24) 79.69 70.61 76.45

Medium (136) 72.84 71.88 66.89

Below Average (315) 60.05 52.99 53.77

Low (42) 68.31 61.73 61.65

Rural LMAs (349) 65.16 59.85 59.29


Change in Change in Cluster Grouping Employment Population (%) (%)


Outliers (31) 32.74 23.00

High (40) 31.27 22.01


Medium (136) 21.33 12.25

Below Average (315) 15.89 7.06

Low (42) 19.55 12.83

Rural LMAs (349) 17.88 10.39

Table 15. Changes in Per Capita Economic Activity by Cluster Groupings, 1990-2000

Change in Earnings Change in Earnings

Per Worker by Per Employed Resident

Cluster Grouping Place of Work by Place of Residence

(%) (%)

A. Metro Counties

Outliers (32)a 51.89 96.20

High (58) 40.25 69.04


Medium (113) 42.34 54.02

Below Average (106) 37.10 47.60

Low (33) 31.13 40.62

a Number of metro or nonmetro counties in the cluster grouping

Table 15. Changes in Per Capita Economic Activity by Cluster Groupings, 1990-2000 (cont.)

Change in Change in

Per Capita Share of Population

Cluster Grouping Personal Income in Poverty

(%) (%)

A. Metro Counties

Outliers (32)a 58.20 -9.81

High (58) 51.29 -5.43

College Towns (13) 45.88 -17.01

Medium (113) 53.26 -12.07

Below Average (106) 53.74 -11.41

Low (33) 47.09 -12.91

a Number of metro or nonmetro counties in the cluster grouping.


Outliers (31) 37.16 60.97

High (40) 31.88 53.04


Medium (136) 39.87 41.86

Below Average (315) 31.90 30.71

Low (42) 34.92 37.41

Rural LMAs (349) 35.63 35.79


Change in Earnings Change in Earnings Per Worker by Per Employed Resident Cluster Grouping Place of Work by Place of Residence (%) (%)


Outliers (31) 52.55 -13.70

High (40) 44.10 -8.05

College Towns (24) 47.29 -14.37

Medium (136) 53.32 -16.40

Below Average (315) 48.77 -12.19

Low (42) 49.97 -7.52

Rural LMAs (349) 49.96 -13.97


Change in Change in Per Capita Share of Population Cluster Grouping Personal Income in Poverty (%) (%)

Table 16. Regression Results for Change in Nonmetro County Population and Employment, 1990-2000

Intercept -.292 -3.66 -.430 -3.66College Grad .003 1.48 .003 1.16Pupil/Teacher .006 2.34 .006 1.66Rec. Infrastructure .021 3.46 .016 1.72Amenity Rank (1-7) .029 3.86 .042 3.57Govt. Expenditure -.047 -6.43 -.038 -3.46High-Tech Emp -.006 -.97 -.011 -1.16Tech. Occupation .018 4.76 .030 5.22Manufacturing. Emp. -.06E-3 -2.01 -.000 -.74POP 1990 (000,000) -13.340 -1.51Emp 1990 (000, 000) -90.097 -.98MSA Pop Change .127 2.37MSA Emp Change .184 2.55MSA Pop Density .000 -.52 .000 .04Outlier .069 2.79 .060 1.55High .088 4.12 .046 1.41College Town .049 1.76 .018 .44Low -.006 -.39 -.000 -.01Very Low .009 .41 .030 .87R2 .409 .232

F 13.74 6.00

State Fixed Effects Yes Yes

N 584 584

Variable Coefficient t-value Coefficient t-value

Population Equation Employment Equation

Table 17. Regression Results for Change in Nonmetro County Earnings, 1990-2000

Intercept -.55 -3.85 -.482 -4.59College Grad .003 .69 .005 1.53Pupil/Teacher .022 4.45 .018 4.75Rec. Infrastructure .018 1.39 .027 2.81Amenity Rank (1-7) .061 3.73 .046 3.86Govt. Expenditure -.026 -1.67 -.026 -2.28High-Tech Emp -.000 -.04 -.009 -.90Tech. Occupation .031 3.80 .027 4.74Manufacturing. Emp -.24E-3 -3.57 -.16E-3 -3.28Earnings, 1990 -7.46E-8 -1.19 -5.15E-8 -1.04MSA Earnings Change .158 2.96 .204 5.16MSA Pop Density -.000 -.55 -.000 -.25Outlier .007 .12 .020 .48High .058 1.26 .076 2.28College Town .085 1.45 .110 2.58Low -.027 -.86 -.025 -1.10Very Low .052 1.10 .039 1.16R2 .272 .395

F 7.42 12.95


N 584 584


Earnings by Place of Work Earnings by Place of Residence

Table 18. Regression Results for Changes in Nonmetro County Earnings Per Worker, 1990-2000

Intercept .016 .10 -.042 -.41College Grad .001 .53 .005 1.94Pupil/Teacher .015 4.77 .013 3.90Rec. Infrastructure -.003 -.38 .021 2.44Amenity Rank (1-7) .018 1.77 .021 1.95Govt. Expenditure .014 1.46 -.014 -1.44High-Tech Emp .009 1.08 -.003 -.30Tech. Occupation -.003 -.56 .019 3.70Manufacturing. Emp -.21E-3 -5.04 -.15E-3 -3.58Earnings, 1990 -.010 -7.05 -.014 -12.64MSA Earnings Change .082 .84 .163 3.94MSA Pop Density -.000 -.27 .000 .44Outlier -.010 -.27 .039 1.06High .022 .77 .074 2.52College Town .070 1.91 .105 2.80Low -.015 -.74 -.006 -.31Very Low .027 .91 .015 .50R2 .302 .529

F 8.57 22.29


N 584 584


Earnings by Place of Work Earnings by Place of Residence

Innovation Policies for Non-RIS Regions(Rosenfeld, 2002 and Tödtling, 2004)

Industry Clusters

• Support clusters in new industries related to existing industrial base

• Strengthen emerging/potential clusters in the region


(Continued)

New Firms

• Promote entrepreneurship and new firm development

• Attract cluster-related firms


(Continued)

Knowledge and Innovation

• Develop cluster-specific technology centers

• Attract branches of national research organizations

• Build up and attract new labor skills


(Continued)

Networks

• Link firms to local and external knowledge providers

• Technology transfer programs