Entrepreneurs and Their Communities

RRDC REGIONAL RURAL

DEVELOPMENT CENTERS

Co-Sponsored by

Selected Web-Based Tools and Databases for Economic Development

(emphasizing the new economy and a regional framework)

Sam Cordes, Co-DirectorIndraneel Kumar, Regional Planner: GIS and Spatial

AnalysisPurdue Center for Regional Development (PCRD)

Housekeeping Details

• Please enter your name/email address

into the chat box

• Session will be recorded

• Feel free to type questions/comments at

any time

• Evaluation @

http://tinyurl.com/ETC062011

Background and Philosophy

The problem of path dependency

It’s not your Grandfather’s economy

It’s not your Grandfather’s geography

The new economy

Innovation-based: private and public

New strategies for the new economy

The responsibility and role of higher

education, including Extension

Overall Purpose of PCRD Work

Develop tools and databases that:

Helps stakeholders understand the new economy

Easily generates information at the regional level

Easily creates benchmarks

Stimulates local thinking and conversations

Leads to effective economic development policies and strategies

Make these tools and databases readily available

throughout the nation, with special sensitivity to

under-resourced areas

Today’s Featured Tools and Databases

(not just from PCRD)

• Industry clusters

• Occupational clusters

• Innovation Index

• Leading Edge Practices (LEEP) in regional

development

• Your Economy (YE) business census

• Broadband data

Industry Clusters

Local and regional concentrations of related firms

that:

Buy and sell from each other

Use similar technologies

Share a labor pool

Share supply chains

Include supporting services and specialized infrastructure

Include both high and low-value added employment

Produce for export outside the region

Drive the creation of wealth in a region

Clusters and Sub-Clusters Studied in this Project

1 Advanced Materials 7 Chemicals and Chemical-

based Products

2 Agribusiness, Food Processing

and Technology

8 Defense and Security

3 Apparel and Textiles 9 Education and Knowledge

Creation

4 Arts, Entertainment,

Recreation and Visitor

Industries

10 Energy (Fossil and

Renewable)

5 Biomedical/Biotechnical (Life

Sciences)

11 Forest and Wood Products

6 Business and Financial

Services

12 Glass and Ceramics

17 Industry Clusters

Industry Clusters

Clusters and Sub-Clusters Studied in this Project

13 Information Technology and

Telecommunications

16 Mining

14 Transportation and Logistics 17 Printing and Publishing

15 Manufacturing Supercluster

• Primary Metals

• Fabricated Metal Products

• Machinery

• Computer and Electronic

Products

• Electrical Equipment,

Appliance and Components

• Transportation Equipment

Industry Clusters: Database Overview

• ―Home‖ tab, click

―View Industry

Clusters‖

• Select ―Industry

Clusters‖

• Select ―Overview‖

• Select Geography,

e.g., IN, White

County

• Select Year, e.g.,

2009

• Click ―Get Data‖http://www.statsamerica.org/innovation/anydata/

Industry Clusters: Custom Regions (Table only)

• From ―select geography‖, click

―Go to Custom Regions‖

• Select Cluster, e.g., ―Advanced

Materials‖

• Select counties, e.g.,

―Tippecanoe & White‖

• Select Year, e.g., ―2009‖

• Click ―Get Data‖

• Regions can be prepared for up

to 255 counties

Industry Clusters: Maps

• Maps tab, ―Maps from the 2007 report‖

• Five series: Rurality, Establishments, Employment, and LQ for

U.S. Counties (plus special maps for Indiana)

• High Resolution PDF and low resolution images are available for

web-viewing and reports

Distribution of Industry Cluster Concentration by

U.S. County, 2004 Location Quotient “Hot Spots”

Occupation Clusters

• Groups of occupations sharing similar knowledge, skills and other characteristics such as, formal education levels, wage levels and availability of benefits.

• Occupation clusters are concentrated

across industries and geographic

locations according to regional

specializations

• Due to shared characteristics, it may

be easier for workers to move

between levels in the same cluster

(―career ladders‖)

Defining Occupation Clusters

• Based on 5 ―job zones‖ requiring different levels of specialized knowledge and training

• We assigned all occupations (in job zones 3-5) to 15 clusters, on the basis of similar knowledge requirements

Job Zone

1 Occupations that need little or no preparation Cashier, waitperson

2 Occupations that need some preparation Retail Salesperson, Teller

3 Occupations that need medium preparation Electrician, Legal Secretary

4 Occupations that need considerable preparation Accountant, Teacher

5 Occupations that need extensive preparation Surgeon, Physicist

Types of Occupations Examples

O*Net Job Zones

15 Occupation Clusters• Agribusiness and Food Technology

• Arts, Entertainment, Publishing and Broadcasting

• Building, Landscape and Construction Design

• Engineering and Related Sciences

• Health Care and Medical Science (aggregate + 3 sub-groups)

– Health Care and Medical Science (Medical Practitioners and Scientists)

– Health Care and Medical Science (Medical Technicians)

– Health Care and Medical Science (Therapy, Counseling, Nursing and

Rehabilitation )

• Information Technology

• Legal and Financial Services, and Real Estate

• Managerial, Sales, Marketing and HR

• Mathematics, Statistics, Data and Accounting

• Natural Sciences and Environmental Management

• Personal Services

• Postsecondary Education and Knowledge Creation

• Primary/Secondary and Vocational Education, Remediation & Social Services

• Public Safety and Domestic Security

• Skilled Production Workers: Technicians, Operators, Trades, Installers & Repairers

Occupation Clusters: Database Overview

• From the ―Home‖

tab, click ―View

Occupation

Clusters‖

• Select ―Occupation

Clusters‖

• Select ―Overview‖

• Select Geography,

say IN, Tippecanoe

County

• Select Year, e.g.,

2009

• Click ―Get Data‖

http://www.statsamerica.org/innovation/anydata/

Occupation Clusters: Custom Regions (Tables/Map)

• ―Custom Region‖

mode is same as

the ―industry

clusters‖

• Combined regional

data- Tippecanoe &

Carroll counties

Occupation Clusters: Maps

• Maps tab, ―Maps from the 2009 report‖

• Four series: Regional, Employment, LQ, and Innovation Index Maps

• High resolution PDFs and low resolution images are available for web-

viewing

Interpreting Occupation Cluster Data

• Examine location quotients (LQs) for each occupation

cluster and for major occupations within the clusters

• Calculate location quotients over time for each cluster

– Bubble charts show the relative strength and direction

of change for each cluster in a region

• Drill down to see what kinds of occupations and

knowledge levels predominate in a county or region

• Assess match of occupation cluster concentrations with

industry cluster concentrations in the region

A New Index of Innovation

for County and Regional Analysis

Why was this needed?

• Innovation is an increasingly important driver of

economic growth, and we need a good way to

measure it

• Prior index approaches were not useful for most

local regions

Prior Indices of Innovation

• Previous indices of innovation have focused on

states or countries

Kauffman Foundation

Innovation Index

(2007)

• But innovation varies

greatly within states

& countries

Defining Innovation

• Innovation puts ideas into action

– new or improved goods and services

– also new technologies and processes

– innovation can be incremental or radical

– helps firm move from lower value-added

production to higher value-added

production

• Innovation increases productivity,

compensation and profits

Measuring Innovation

The Innovation Index

Five categories, multiple components for each

• Input—human capital (30%)

• Input—economic dynamics (30%)

• Input—state context (not county-level)

• Output—productivity and employment (30%)

• Output—economic well-being (10%)

The Innovation Index: Maps

24

Web tool provides drill-down access to

Innovation Index components

25

Helps a region

identify the

stronger &

weaker

aspects of its

innovation

economy

http://www.statsamerica.org/innovation/innovation_index/region-

select.html/

Innovation Index: Database Overview

• Home tab, Click ―View

Innovation Index‖

• Select Geography, e.g.,

IN, Monroe County

• Select IN, State Total

• Click ―View Index‖

• U.S. is always 100

Innovation Index: Five Components

• Click ―View

Component

Graphics & Data‖

• This compares a

county to a state

and to the U.S.

Innovation Index: Component Details

• Click ―Human

Capital‖

• Click the indicator

bar-chart to see the

table

Innovation Index:

Comparing Geographies Side-by-Side

• Select Tippecanoe

• Select IN, Marion

• Select IN, State

Total

• Tippecanoe,

Marion, and IN

comparisons

• U.S. is default and

always 100

Full Reports on Industry Clusters,

Occupation Clusters and Innovation Index

Reports tab: download reports on industry and occupation clusters

LEEP is on our website

and can be

downloaded here

A searchable Excel

database representing

approximately 1,400

regional organizations.

LEEP includes:

a brief description of the

organization,

the counties they serve,

and contact information.

Leading Edge Practices

http://www.pcrd.purdue.edu/What_We_Do/LEEP

Your Economy (YE) Database

http://www.youreconomy.org/

One Application is to Focus on Size of Firms

• Grown past the start-up stage

• Not grown to maturity

• Very high potential for further growth

• 10-100 employees

• $750,000 to $ 50 million in annual receipts

• Created/maintained 35% of jobs in USA (2008)

Source: http://www.edwardlowe.org/secondStage/

For Example, 2nd Stage Firms Have

Focusing on State Level Composition

• Go to

http://youreconomy.org/

• ―Composition‖ tab

• Click on ―IN‖ on the map

• Check-out establishments

and jobs by year,

ownership, and stage

• ―Composition‖ tab

• Select Marion (IN)

• Check-out establishments

and jobs by year,

ownership, and stage

Focusing on County Level Composition

• ―Growth‖ tab

• Click IN on map

• Select Tippecanoe (IN)

• Click on Years to choose your

time frame

• Check-out changes (# and %)

in establishments and jobs by

ownership and stage

Focusing on Change in Composition, i.e.,

Growth by Firm Size

41 winning companies in the 2010 project:

Increased employment by 78% (940 employees) from 2006-2009

Increased revenues by 92% ($ 200 million) from 2006-2009

http://companiestowatch.org/index.ctw?aff=indiana

Mapping Broadband: A New Resource

http://www.broadband.gov/maps/availability.htm

Mapping Broadband: A New Resource

Data and maps are available that measure

• % and # of Housing Units with/without 4 Mbps

broadband

• Investment gaps

• Select ―# of

Housing Units

without access to 4

Mbps broadband‖

• Select IN, ―All‖

• Click ―View‖

Mapping Broadband: Housing Units

without Access in Indiana by County

Final Comments, Data Limitations, Etc.

Questions (?)

Sam Cordes

Associate Vice Provost for Engagement

Co-Director, Center for Regional Development

smcordes@purdue.edu

Purdue Center for Regional Development

Burton D. Morgan Center for Entrepreneurship

1201 West State Street

West Lafayette, IN 47907

877-882-7273

http://www.pcrd.purdue.edu/

For further information, contact:

Thank you for a great season!

• Recordings are all available at

http://www.extension.org/

• Up Next: Summer Break! Enjoy and see

you in September.

• Evaluation @

http://tinyurl.com/ETC062011