Economic Development Strategies Using Applied Research to Identify Opportunities for Creating Local Jobs and Income Mike D. Woods Oklahoma State University James R. Nelson University 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 Local Stores Labor Goods & Services $ $ $ $ $ $ Your Community’s Economy Your Community’s Economy

Export Enhancement Households Basic Industry Local Stores Labor Goods & Services $ $ $ Products $ Your Community $ $ Retail Goods & 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 Local Stores Labor Goods & Services $ $ $ Your Community $ Supplies for Local Businesses Inputs $ $ Family Goods & 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! 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! ( What do local firms need to be more successful? Labor force Dependable sources of inputs Marketing help Infrastructure and community services ???

Export Enhancement Know your economy! ( 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! ( 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 Or Then, at bottom of page, Google search “OSUExtra” for F-918. Targeted Economic Development