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 & Statistics
Clemson University
The Global Economy
The Knowledge Economy
The High-Tech Economy
The New Economy
Changes in Technology
Changes in Production Practices
Changes in Location of Economic Activity
Changes 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
New Economy
Oligopolistic Product Markets
Large-Scale Manufacturing
Rapidly Expanding Service Sector
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.
Metro
South
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
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
17.0
20.6
22.7
22.1
Government
State & Local
Source: BEA, REIS.
Table 3. Industries with the Largest Wage and Salary
Employment Growth and Declines, 2002-2012
Industry
Employment
Change
(000)
Percent
Change
A. Growing Industries
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 (cont.)
Industry
B. Declining Industries
Agricultural products
Cut and sew apparel manufacturing
Aerospace product and parts manufacturing
Semiconductor and other electronic
component manufacturing
Computer and peripheral equipment
manufacturing
Fabric mills
Navigational, measuring, electromedical,
and control instruments manufacturing
Private households
Textile and fabric finishing and fabric coating
mills
Pulp, paper and paperboard mills
Source: Berman, 2004
Employment
Change
(000)
Percent
Change
-323.6
-204.7
-82.6
-79.4
-1.8
-12.2
-1.9
-1.6
-67.7
-3.1
-67.0
-55.0
-6.9
-1.3
-54.3
-.7
-42.3
-6.9
-41.8
-2.8
Table 4. Average Wages in Expanding and
Contracting Industries, 2002-2003
Expanding
Industries
Contracting
Industries
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%
Difference
South Atlantic
Table 4. Average Wages in Expanding and
Contracting Industries, 2002-2003 (cont.)
Expanding
Industries
Contracting
Industries
$29,035
$37,371
-22%
Tennessee
31.844
36,881
-14%
Alabama
28,584
36,577
-22%
Mississippi
26,764
30,638
-13%
Difference
East South Central
Kentucky
Table 4. Average Wages in Expanding and
Contracting Industries, 2002-2003 (cont.)
Expanding
Industries
Contracting
Industries
Difference
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%
$35,410
$44,570
-21%
United States
Source: Economic Policy Institute, 2004.
Table 5. Employment Distribution and Change by Occupation,
South and U.S., 1999-2002
Shares (1999)
Occupation
Officials and Managers
U. S.
% Change 1999-2002
South
U. S.
South
10.5%
10.0%
1.7%
2.1%
15.7
13.1
5.3
5.6
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
8.0
8.9
-6.8
-4.7
13.9
16.0
-10.7
-12.7
7.9
8.7
-3.2
-2.1
11.3
11.1
6.0
4.9
100.0
100.0
-1.1
-1.5
Professionals
Technicians
Craft Workers
Operatives
Laborers
Service Workers
Total
Source: The U.S. Equal Employment Opportunity Commission.
Table 6. Occupations with Largest Job Decline,
United States, 2002-2012
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
2
Moderate-term on-the-job training
9. Postal service mail sorters,
processors, and processing
machine operators
2
Short-term on-the-job training
10. Loan interviewers and clients
2
Short-term on-the-job training
Occupation
Source: Hecker, 2004
Table 6. Occupations with Largest Job Decline,
United States, 2002-2012 (cont.)
Occupation
Quartile Rank By 2002
Median Income
Typical Source of
Education or Training
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
3
Moderate-term on-the-job training
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
3
Short-term on-the-job training
18. Travel agents
3
Postsecondary vocational award
19. Brokerage clerks
2
Moderate-term on-the-job training
20. Eligibility interviewers, government
programs
2
Moderate-term on-the-job training
Source: Hecker, 2004
Table 7. Occupations with Largest Job Growth,
United States, 2002-2012
Occupation
Quartile Rank
By 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
4
Short-term on-the-job training
6. Cashiers, except gaming
4
Short-term on-the-job training
7. Janitors, and cleaners, except maids
and housekeeping cleaners
4
Short-term on-the-job training
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
3
Short-term on-the-job training
10. Nursing aids, orderlies, and attendants
Source: Hecker, 2004
Table 7. Occupations with Largest Job Growth,
United States, 2002-2012 (cont).
Occupation
Quartile Rank
by 2002
Median Earnings
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
1
Moderate-term on-the-job training
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
3
Short-term on-the-job training
Source: Hecker, 2004
Typical Source of
Education
Or Training
Table 8. Fastest Growing Occupations,
United States, 2002-2012
Occupation
Quartile Rank by
2002 Median
Income
Typical Source of
Education or Training
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
5. Home health aides
3
4
Moderate-term on-the-job training
Short-term on-the-job training
6. Medical records and health information
technicians
3
Associate degree
7. Physical therapist aides
3
Short-term on-the-job training
8. Computer software engineers, applications
1
Bachelor’s degree
9. Computer software engineers, systems
software
1
Bachelor’s degree
2
Associate degree
10.
Physical therapist assistants
Source: Hecker, 2004
Table 8. Fastest Growing Occupations,
United States, 2002-2012 (cont.)
Occupation
Quartile Rank by
2002 Median
Income
Typical Source of
Education or Training
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
15. Dental hygienists
16. Occupational therapist aides
2
1
3
Moderate-term on-the-job training
Associate degree
Short-term on-the-job training
17. Dental assistants
3
Moderate-term on-the-job training
18. Personal and home care aides
4
19. Self-enrichment education teachers
2
Short-term on-the-job training
Work experience in a related
occupation
20.
Computer systems analysts
Source: Hecker, 2004
1
Bachelor’s degree
Table 9. Elements of Regional Systems of
Innovation (Acs, 2002).
A. Inter-firm relationships
1. Network economies
2. Clusters
3. Supplier chains as source of innovation
4. Cooperation and trust
B. The knowledge infrastructure
1. University research
2. Focus new product R&D
3. External sources of knowledge
4. Local R&D spillovers
C. Community and the public
sector
1. Emphasis on regional level
2. Public-private partnerships
3. Community, cooperation and trust
Table 9. Elements of Regional Systems of
Innovation (Acs, 2002). (cont.)
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
infrastructure
1. Global orientation
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 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
Table 10. Examples of Innovation Measures Used in
Previous Research on Innovative Activity or Capacity
(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
Table 10. Examples of Innovation Measures Used in
Previous Research on Innovative Activity or Capacity
(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
E. Competitiveness of Local Economy
 Export Activity
 Manufacturing Employment Growth Rate
 Importance of Regional Economy to U.S. 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
State
Massachusetts
California
Colorado
Maryland
Virginia
Washington
New Jersey
Minnesota
Utah
Connecticut
Rhode Island
New Hampshire
Delaware
Rank
(2004)
1
2
3
4
5
6
7
8
9
10
11
12
13
State
Rank
(2004)
New Mexico
New York
Pennsylvania
Arizona
Georgia
Oregon
North Carolina
Illinois
Vermont
Texas
Ohio
Michigan
14
15
16
17
18
19
20
21
22
23
24
25
National State Technology & Science Index
Overall Index, 2004 (cont.)
State
Kansas
Wisconsin
Nebraska
Indiana
Idaho
Missouri
Florida
Maine
Tennessee
Oklahoma
Alabama
Iowa
Montana
Rank
(2004)
26
27
28
29
30
31
32
33
34
35
36
37
38
Source: DeVol and Kuepp (2004).
State
Hawaii
Alaska
Wyoming
Louisiana
Nevada
South Carolina
North Dakota
West Virginia
South Dakota
Kentucky
Arkansas
Mississippi
Rank
(2004)
39
40
41
42
43
44
45
46
47
48
49
50
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)
Table 11. Selected Measures of Metropolitan
Innovative Environment (cont.)
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)
Table 11. Selected Measures of Metropolitan
Innovative Environment (cont.)
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 CMSA
Austin, TX MSA
Raleigh, Durham, Chapel Hill, NC
CMSA
Baton Rouge, LA MSA
2. High (12)
Dallas-Fort Worth-Arlington, TX CMSA
Houston-Galveston-Brazoria, TX CMSA
Huntsville, AL MSA
Melbourne-Titusville-Palm Bay, FL MSA
Orlando, FL MSA
Pensacola, FL MSA
Richmond-Petersburg, VA MSA
San Antonio, TX MSA
Sarasota-Bradenton, FL MSA
Tampa-St. Petersbusrg-Clearwater, FL
MSA
Tulsa, OK MSA
West Palm Beach-Boca Raton, FL MSA
Table 12. Metropolitan Areas in Regional
Innovation Systems Cluster Groupings (cont.)
3. College Towns (5)
Athens, GA MSA
Bryan-College Station, TX MSA
Charlottesville, VA MSA
Gainesville, FL MSA
Tallahassee, FL MSA
4. Medium (20)
Augusta-Aiken, GA-SC MSA
Birmingham, AL MSA
Charleston-North Charleston, SC MSA
Charlotte-Gastonia-Rock Hill, NC-SC MSA
Cincinnati-Hamilton, OH-KY-IN MSA
Columbia, SC MSA
Greensboro--Winston-Salem–High Point,
NC MSA
Greenville-Spartanburg-Anderson, SC MSA
Jackson, MS MSA
Jacksonville, FL MSA
Knoxville, TN MSA
Lexington, KY-IN MSA
Memphis, TN-AR-MS MSA
Nashville, TN MSA
New Orleans, LA MSA
Norfolk-Virginia Beach-Newport News,
VA-NC MSA
Oklahoma City, OK MSA
Roanoke, VA MSA
Wilmington, NC MSA
Table 12. Metropolitan Areas in Regional Innovation
Systems Cluster Groupings (cont.)
5. Below Average (47)
Abilene, TX MSA
Albany, GA MSA
Alexandria, LA MSA
Amarillo, TX MSA
Ashville, NC MSA
Auburn-Opelika, AL MSA
Beaumont-Port Arthur, TX MSA
Biloxi-Gulfport-Pascagoula, MS MSA
Chattanooga, TN-GA MSA
Clarksville-Hopkinsville, TN-KY MSA
Columbus, GA MSA
Corpus Christi, TX MSA
Decatur, AL MSA
Dothan, AL MSA
Enid, OK MSA
Evansville-Henderson, IN-KY MSA
Fayetteville, NC MSA
Fayetteville-Springdale-Rogers, AR MSA
Florence, SC MSA
Fort Smith, AR-OK MSA
Fort Walton Beach, FL MSA
Goldsboro, NC MSA
Greenville, NC MSA
Hattiesburg, MS MSA
Hickory-Morganton-Lenoir, NC MSA
Jackson, TN MSA
Jacksonville, NC MSA
Jonesboro, AR MSA
Killeen-Temple, TX MSA
Lafayette, LA MSA
Lake Charles, LA MSA
Lakeland-Winter Haven, FL MSA
Lawton, OK MSA
Little Rock-North Little Rock, AR MSA
Long View-Marshall, TX MSA
Lubbock, TX MSA
Lynchburg, VA MSA
Table 12. Metropolitan Areas in Regional Innovation
Systems Cluster Groupings (cont.)
5. Below Average (47) (cont.)
Macon, GA MSA
Mobile, AL MSA
Monroe, LA MSA
Montgomery, AL MSA
Myrtle Beach, SC MSA
Odessa-Midland, TX MSA
Owensboro, KY MSA
Panama City, FL MSA
Pine Bluff, AR MSA
Rocky Mount, NC MSA
San Angelo, TX MSA
Savannah, GA MSA
Sherman-Denison, TX MSA
Shreveport-Bossier City, LA MSA
Sumter, SC MSA
Tuscaloosa, AL MSA
Tyler, TX MSA
Victoria, TX MSA
Waco, TX MSA
Wichita 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
ARD:
Academic R&D
ETEC:
Employment in Tech. Prof.
.58
.20
.24
.14
.08
.07
482.34
47.59
1357.06
86.79
51.52
2.57
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
11.40
7.46
4.53
6.60
5.10
3.25
9.55
8.73
9.14
6.75
5.56
4.76
3.75
3.17
1.20
3.40
1.49
1.89
4. Agglomeration Economics
HTEMP:
HTEST:
High Tech Employment
High Tech Establishments
5. Competitiveness
EXPORT:
Export Rank (1-4)
Table 14. Changes in Aggregate Economic Activity
by Cluster Groupings, 1990-2000
Change in
Personal
Income
(%)
Change in
Earnings by
Place of Work
(%)
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
Cluster Grouping
Change in
Earnings by
Place of Residence
(%)
A. Metro Counties
Outliers (32)a
a
Number of metro or nonmetro counties in the cluster grouping.
Table 14. Changes in Aggregate Economic Activity
by Cluster Groupings, 1990-2000 (cont.)
Cluster Grouping
Change in
Employment
(%)
Change in
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
17.87
a Number
of metro or nonmetro counties in the cluster grouping.
Table 14. Changes in Aggregate Economic Activity
by Cluster Groupings, 1990-2000 (cont.)
Cluster Grouping
Change in
Personal
Income
(%)
Change in
Earnings by
Place of Work
(%)
Change in
Earnings by
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
Table 14. Changes in Aggregate Economic Activity
by Cluster Groupings, 1990-2000 (cont.)
Cluster Grouping
Change in
Employment
(%)
Change in
Population
(%)
B. Monmetro Counties
Outliers (31)
32.74
23.00
High (40)
31.27
22.01
College Towns (24)
25.29
22.22
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
Cluster Grouping
Change in Earnings
Per Worker by
Place of Work
(%)
Change in Earnings
Per Employed Resident
by Place of Residence
(%)
A. Metro Counties
Outliers (32)a
High (58)
College Towns (13)
Medium (113)
Below Average (106)
Low (33)
a
51.89
40.25
39.10
42.34
37.10
31.13
Number of metro or nonmetro counties in the cluster grouping
96.20
69.04
62.29
54.02
47.60
40.62
Table 15. Changes in Per Capita Economic Activity
by Cluster Groupings, 1990-2000 (cont.)
Cluster Grouping
Change in
Per Capita
Personal Income
(%)
Change in
Share of Population
in Poverty
(%)
A. Metro Counties
Outliers (32)a
High (58)
College Towns (13)
Medium (113)
Below Average (106)
Low (33)
58.20
51.29
45.88
53.26
53.74
47.09
a Number of metro or nonmetro counties in the cluster grouping.
-9.81
-5.43
-17.01
-12.07
-11.41
-12.91
Table 15. Changes in Per Capita Economic Activity
by Cluster Groupings, 1990-2000 (cont.)
Cluster Grouping
Change in Earnings
Per Worker by
Place of Work
(%)
Change in Earnings
Per Employed Resident
by Place of Residence
(%)
B. Monmetro Counties
Outliers (31)
37.16
60.97
High (40)
31.88
53.04
College Towns (24)
36.47
49.98
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
Table 15. Changes in Per Capita Economic Activity
by Cluster Groupings, 1990-2000 (cont.)
Cluster Grouping
Change in
Per Capita
Personal Income
(%)
Change in
Share of Population
in Poverty
(%)
B. Monmetro Counties
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
Table 16. Regression Results for Change in Nonmetro County Population
and Employment, 1990-2000
Population Equation
Variable
Coefficient
t-value
Coefficient
t-value
-.430
.003
.006
.016
.042
-.038
-.011
.030
-.000
-3.66
1.16
1.66
1.72
3.57
-3.46
-1.16
5.22
-.74
-90.097
-.98
.184
.000
.060
.046
.018
-.000
.030
.232
2.55
.04
1.55
1.41
.44
-.01
.87
Intercept
College Grad
Pupil/Teacher
Rec. Infrastructure
Amenity Rank (1-7)
Govt. Expenditure
High-Tech Emp
Tech. Occupation
Manufacturing. Emp.
POP 1990 (000,000)
Emp 1990 (000, 000)
MSA Pop Change
MSA Emp Change
MSA Pop Density
Outlier
High
College Town
Low
Very Low
R2
-.292
.003
.006
.021
.029
-.047
-.006
.018
-.06E-3
-13.340
F
13.74
6.00
State Fixed Effects
Yes
Yes
N
584
584
.127
.000
.069
.088
.049
-.006
.009
.409
-3.66
1.48
2.34
3.46
3.86
-6.43
-.97
4.76
-2.01
-1.51
Employment Equation
2.37
-.52
2.79
4.12
1.76
-.39
.41
Table 17. Regression Results for Change in Nonmetro County Earnings,
1990-2000
Earnings by Place of Work
Variable
Earnings by Place of Residence
Coefficient
t-value
Coefficient
t-value
Intercept
College Grad
Pupil/Teacher
Rec. Infrastructure
Amenity Rank (1-7)
Govt. Expenditure
High-Tech Emp
Tech. Occupation
Manufacturing. Emp
Earnings, 1990
MSA Earnings Change
MSA Pop Density
Outlier
High
College Town
Low
Very Low
R2
-.55
.003
.022
.018
.061
-.026
-.000
.031
-.24E-3
-7.46E-8
.158
-.000
.007
.058
.085
-.027
.052
.272
-3.85
.69
4.45
1.39
3.73
-1.67
-.04
3.80
-3.57
-1.19
2.96
-.55
.12
1.26
1.45
-.86
1.10
-.482
.005
.018
.027
.046
-.026
-.009
.027
-.16E-3
-5.15E-8
.204
-.000
.020
.076
.110
-.025
.039
.395
-4.59
1.53
4.75
2.81
3.86
-2.28
-.90
4.74
-3.28
-1.04
5.16
-.25
.48
2.28
2.58
-1.10
1.16
F
7.42
12.95
State Fixed Effects
Yes
Yes
N
584
584
Table 18. Regression Results for Changes in Nonmetro County Earnings
Per Worker, 1990-2000
Earnings by Place of Work
Variable
Intercept
College Grad
Pupil/Teacher
Rec. Infrastructure
Amenity Rank (1-7)
Govt. Expenditure
High-Tech Emp
Tech. Occupation
Manufacturing. Emp
Earnings, 1990
MSA Earnings Change
MSA Pop Density
Outlier
High
College Town
Low
Very Low
R2
F
State Fixed Effects
N
Coefficient
t-value
.016
.001
.015
-.003
.018
.014
.009
-.003
-.21E-3
-.010
.082
-.000
-.010
.022
.070
-.015
.027
.302
8.57
Yes
584
.10
.53
4.77
-.38
1.77
1.46
1.08
-.56
-5.04
-7.05
.84
-.27
-.27
.77
1.91
-.74
.91
Earnings by Place of Residence
Coefficient
t-value
-.042
.005
.013
.021
.021
-.014
-.003
.019
-.15E-3
-.014
.163
.000
.039
.074
.105
-.006
.015
.529
22.29
Yes
584
-.41
1.94
3.90
2.44
1.95
-1.44
-.30
3.70
-3.58
-12.64
3.94
.44
1.06
2.52
2.80
-.31
.50
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
Innovation Policies for Non-RIS Regions
(Rosenfeld, 2002 and Tödtling, 2004)
(Continued)
New Firms
• Promote entrepreneurship and new
firm development
•
Attract cluster-related firms
Innovation Policies for Non-RIS Regions
(Rosenfeld, 2002 and Tödtling, 2004)
(Continued)
Knowledge and Innovation
• Develop cluster-specific technology
centers
•
Attract branches of national research
organizations
• Build up and attract new labor skills
Innovation Policies for Non-RIS Regions
(Rosenfeld, 2002 and Tödtling, 2004)
(Continued)
Networks
• Link firms to local and external
knowledge providers
•
Technology transfer programs