David A. McGranahan

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

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.

The Emergence of Rural Artistic Havens: A First Look

Nearly all applied research on arts activity has examined phenomena in metropolitan areas. Findings from this past research confirm an arts specialization in a limited number of cities. This paper finds a similar pattern in nonmetropolitan areas, where a limited number of counties maintain or develop a distinct specialization in the arts. We document the emergence of these “rural artistic havens” and identify county characteristics associated with the attraction of performing, fine, and applied artists. The implications of these findings for rural development strategies focusing on the arts are discussed.

Nonmetropolitan Outmigration Counties: Some are Poor, Many are Prosperous

Population loss through net outmigration is endemic to many rural areas. Over a third of nonmetro counties lost at least 10 percent of their population through net outmigration over 1988-2008. Some of these counties have had very high poverty rates, substantial loss in manufacturing jobs, and high unemployment. Lack of economic opportunity was likely a major factor in their high outmigration. Most high net outmigration counties, however, are relatively prosperous, with low unemployment rates, low high school dropout rates, and average household incomes. For these counties, low population density and less appealing landscapes distinguish them from other nonmetro counties. Both types of outmigration counties stand out on two measures, indicating that quality-of-life factors inhibit inmigration: a lack of retirees moving in and local manufacturers citing the area’s unattractiveness as a problem in recruiting managers and professionals.