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

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Author Info
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.

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File URL: http://purl.umn.edu/10162
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Publisher Info
Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 36 (2007)
Issue (Month): 1 (April)
Pages:
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Handle: RePEc:ags:arerjl:10162

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Related research
Keywords: amenities; competitiveness; entrepreneurship; product cycle; rural manufacturing; Community/Rural/Urban Development;

References listed on IDEAS
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  1. Gale, H. Frederick & McGranahan, David A. & Teixeira, Ruy & Greenberg, Elizabeth, 1999. "Rural Competitiveness: Results of the 1996 Rural Manufacturing Survey," Agricultural Economics Reports 34077, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  2. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  3. Stephen Roper, 2001. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Regional Studies, Taylor and Francis Journals, vol. 35(3), pages 215-228, May. [Downloadable!] (restricted)
    Other versions:
  4. Michael Fritsch, 1992. "Regional Differences in New Firm Formation: Evidence from West Germany," Regional Studies, Taylor and Francis Journals, vol. 26(3), pages 233-241, January. [Downloadable!] (restricted)
  5. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Papers on Entrepreneurship, Growth and Public Policy 2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  6. Baldwin, John R. & Diverty, Brent & Sabourin, David, 1995. "Technology Use and Industrial Transformation: Empirical Perspectives," Analytical Studies Branch Research Paper Series 1995075e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  7. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May. [Downloadable!]
  8. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 961-975, January. [Downloadable!] (restricted)
  9. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April. [Downloadable!]
  10. Sam Youl Lee & Richard Florida & Zoltan Acs, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 879-891, January. [Downloadable!] (restricted)
    Other versions:
  11. Barkley, David L. & Keith, John E., 1991. "The Locational Determinants Of Western Nonmetro High Tech Manufacturers: An Econometric Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December. [Downloadable!]
  12. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  13. McMahon, Richard G P, 2001. " Deriving an Empirical Development Taxonomy for Manufacturing SMEs Using Data from Australia's Business Longitudinal Survey," Small Business Economics, Springer, vol. 17(3), pages 197-212, November. [Downloadable!] (restricted)
  14. Doeringer, Peter & Evans-Klock, Christine & Terkla, David, 2004. "What attracts high performance factories? Management culture and regional advantage," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 591-618, September. [Downloadable!] (restricted)
  15. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December. [Downloadable!] (restricted)
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