Economic Development Strategies

Using Applied Research to Identify

Opportunities for Creating Local

Jobs and Income

Mike D. WoodsOklahoma State University

James R. NelsonUniversity of Idaho

May 2004

Identify opportunities for developing your local economy with C.A.R.E.

Creation

Attraction

Retention

Expansion

Targeted Economic

Development

Households

Basic Industry

LocalStores

Labo

rGoods & Services

Goods & Services

$

$

$

$ $

$

Your Community

’sEconomy

Export Enhancement

Households

Basic Industry

LocalStores

Labo

r

Goods & Services

Goods & Services

$

$

$

ProductsProducts

$

Your Community

$ $Retail Goods Retail Goods & Services& Services

Export Enhancement is expanding the volume of goods and services

your region sells to the rest of the world.

Import Substitution

Import Substitution is replacing items

purchased outside the

region with local production

Households

Basic Industry

LocalStores

Labo

r

Goods & Services

Goods & Services

$

$

$ Your Community

$ Supplies forSupplies forLocal BusinessesLocal Businesses

InputsInputs

$$

Family GoodsFamily Goods& Services& Services

Targeted Economic Development

Know your community!• What’s important?

•Total employment•Total employee compensation•Direct compensation per employee•Employment growth

Southern Rural Development Center

Targeted Economic Development

Know your community!

http://quickfacts.census.gov/

Southern Rural Development Center

Targeted Economic Development

Know your community assets!•Citizen support for development•Local media support for development•Access to financial resources•Availability of energy resources•Infrastructure and community services•Labor force•Transportation systems•Housing, health services, schools …

Targeted Economic Development

Know your economy!•Players (private and public)?

•Movers and shakers?

•Strengths and weaknesses that are discussed?

•Strengths and weaknesses that are not discussed?

•Grudges, feuds, other “minefields”?

Support for Local Employers

Know your economy! (http://quickfacts.census.gov/)

• What do local firms need to be more successful?•Labor force•Dependable sources of inputs•Marketing help•Infrastructure and community services•???

Export EnhancementKnow your economy!

(http://quickfacts.census.gov/)•Major employers (firms, non-profits, agencies and industry sectors)?

•What are the products they market? •Are their products further processed after leaving the local area?•Could some of the value-added be done locally?•Do other firms (out-of-area) market the products

of local employers?•Could local firms do some of the marketing being done by out-of-area firms?

Import Substitution

Know your economy! (http://quickfacts.census.gov/)

•Major employers (firms, non-profits, agencies and industry sectors)?

•What are inputs?•Where do they get their inputs? •Could some inputs be produced locally?

Roles for Extension relative to Identifying local economic

development opportunities –•Source of information

•Access point for information

•Group facilitation for decision making and planning

•Develop community communication linkages

__________________________________________________________

* Lists should be for a functioning economy (county or multicounty region??)** “Ground-truth” lists with brainstorming and local

legwork.

Roles for Extension (cont.)Generate lists* for import substitution and export enhancement opportunities

•Build lists with

•brainstorming and local legwork

•IMPLAN tables of exporting and importing sectors**

Remember to use C.A.R.E. Creation Attraction Retention Expansion

Targeted Economic Development

OSU Extension Fact Sheet # F-918http://osuextra.okstate.edu/pdfs/F-918web.pdf

Or

Then, at bottom of page, Google search “OSUExtra” for F-918.

Targeted Economic Development

http://osuextra.okstate.edu/