Knowledge is the premium fuel for economic growth in the 21st century with new ideas and innovations boosting productivity and creating new products. Some analysts estimate that this knowledge-based activity accounts for half of the gross domestic product in Western industrialized countries, however, few rural places have tapped into this economic potential. Many rural places are now asking where to start so they too can tap into their economic potential. Jason Henderson, economist at the Center for the Study of Rural America at the Federal Reserve Bank of Kansas City, examines the issue in "Can Rural America Support a Knowledge Economy?" The article is feature din the third quarter edition of The Economic Review. The author finds that larger rural communities have a higher concentration of high-knowledge occupations because they provide greater opportunities for personal and firm interaction and the sharing of knowledge. Communities with colleges or universities also have high concentrations of knowledge occupations. Rural communities appear to be using a variety of new strategies to strengthen their own knowledge economy, with some tapping institutions of higher education while others are leveraging local amenities to attract knowledge workers. Although new infrastructure may also be crucial to a future knowledge economy in some areas, the author concludes that "fostering innovative, regional, entrepreneurial partnerships of people, businesses, communities and institutions could be the most essentially ingredient to building a rural knowledge economy for the 21st century." The article and past editions of The Economic Review are available on the Bank’s Web site at www.kc.frb.org. ### Return to www.kansascityfed.org
|
||||
|