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Ambient Returns: Creative Capital's Contribution to Local Manufacturing Competitiveness

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  • Wojan, Timothy R.
  • McGranahan, David A.

Abstract

This paper addresses the possibility that competitive rural manufacturing is increasingly driven by quality-of-life factors required to attract highly skilled and creative workers. Recent findings that highly creative workers are drawn to amenity-rich rural areas provide the empirical leverage for testing anecdotal claims that these areas tend to contain small manufacturing bases that are more reliant on innovation. This contrasts with the cost advantage rationale of traditional rural manufacturing, an advantage that is eroding with increased globalization. The analysis provides the first empirical evidence that the start of entrepreneurial manufacturing plants and the adoption of advanced technologies and management practices are strongly associated with the local employment share in highly creative occupations.

Suggested Citation

  • Wojan, Timothy R. & McGranahan, David A., 2007. "Ambient Returns: Creative Capital's Contribution to Local Manufacturing Competitiveness," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-16, April.
    • Handle: RePEc:ags:arerjl:10162
    DOI: 10.22004/ag.econ.10162
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    2. Xu, Wan & Lambert, Dayton M., 2011. "Business Establishment Growth in the Appalachian Region, 2000-2007: An Application of Smooth Transition Spatial Process Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(3), pages 1-16, August.
    3. Lambert, Dayton M. & Brown, Jason P. & Florax, Raymond J.G.M., 2010. "A two-step estimator for a spatial lag model of counts: Theory, small sample performance and an application," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 241-252, July.
    4. Hatcher, William & Oyer, Matt & Gallardo, Roberto, 2011. "The Creative Class and Economic Development as Practiced in the Rural U.S. South: An Exploratory Survey of Economic Development Professionals," The Review of Regional Studies, Southern Regional Science Association, vol. 41(2,3), pages 139-159, Fall, Win.
    5. Roberto Antonietti & Gildo Soggia, 2015. "La formula dell?export per le province italiane: classe creativa + specializzazione manifatturiera," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(1), pages 125-143.
    6. Roberto Antonietti, 2011. "From creativity to innovativeness: micro evidence from Italy," Openloc Working Papers 1117, Public policies and local development.
    7. Timothy R Wojan & Bonnie Nichols, 2018. "Design, innovation, and rural creative places: Are the arts the cherry on top, or the secret sauce?," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-23, February.
    8. Roberto Antonietti, 2015. "Does Local Creative Employment Affect Firm Innovativeness? Microeconometric Evidence from Italy," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(3), pages 5-29.
    9. Alden Porter & Amitrajeet A. Batabyal, 2016. "Physical capital mobility, the educational and quality aspects of creative capital, and output production," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(4), pages 167-175, November.
    10. David A. McGranahan & Timothy R. Wojan & Dayton M. Lambert, 2011. "The rural growth trifecta: outdoor amenities, creative class and entrepreneurial context -super-§," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 529-557, May.
    11. Jason P. Brown & Dayton M. Lambert & Raymond J. G. M. Florax, 2013. "The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006," Economic Geography, Taylor & Francis Journals, vol. 89(3), pages 203-226, July.
    12. Ann Marie Fiore & Linda S. Niehm & Jessica L. Hurst & Jihyeong Son & Amrut Sadachar & Daniel W. Russell & David Swenson & Christopher Seeger, 2015. "Will They Stay or Will They Go? Community Features Important in Migration Decisions of Recent University Graduates," Economic Development Quarterly, , vol. 29(1), pages 23-37, February.

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