Rural America: The New Crucible of Innovation Brian Dabson, Rural Policy Research Institute

1
Rural America The New Crucible of
InnovationBrian Dabson, Rural Policy Research
Institute

• The Federal Reserve Bank of St. Louis
• Conference on
• Innovation in Changing Times
• St. Louis, MO April 23, 2009

2
Crucible

• Arthur Millers play about witchcraft,
  intolerance, hysteria and reputationor
• A container for the fusion of ores and metals to
  make steelor
• A severe test or trial

http//thecrucible.org/
3
Crucible of Innovation

• Corporate and business school viewpoint
• Combination of key factors within a high pressure
  market environment creates a crucible for
  innovation

4
A Rural Crucible?

• Evolving context creates demand for change in
  public policy both positive and negative
• Factors include
• Population shifts migration, natural decrease
• Economic shifts from farming, natural
  resources, manufacturing to services
• Drives for efficiency leads to consolidation to
  overcome diseconomies of scale
• Growing metro political focus devalues rural
  contribution
• Weak public and institutional infrastructure

5
A Rural Crucible?

• Extraordinary time for rural America to make new
  contributions to national prosperity
• Four main areas
• Growing and processing food quantity, quality,
  and sustainability
• Energy independence extractive and renewable
• Realizing economic value of natures services
  stewardship
• Protecting and managing rural experiences
  natural, cultural

6
A Rural Crucible?

• Three powerful strategies
• Regionalism cooperation and collaboration
  across jurisdictions, sectors
• Assets building on unique strengths, triple
  bottom line
• Entrepreneurship conversion of assets into
  economic opportunity

7
A Rural Crucible?

• Public policy aims for rural innovation
• Economic prosperity
• Environmental sustainability
• Social equity

8
Southern Minnesota Regional Competitiveness
Project
9
Regional Flavor Strategies

• Holistic approach to rural development with a
  focus on location, heritage, foods, culture,
  lodging, goods, services, natural assets Holley
  and Woodroofe
• Networks, innovation, collaboration

10
Entrepreneurship Development Systems

• Create a pipeline of entrepreneurs by identifying
  and supporting youth and adult entrepreneurs
• Implement a system of financial and technical
  support for entrepreneurs of all types
• Foster a policy and cultural environment
  supportive of entrepreneurship

• 12 county area straddling West Virginia, Kentucky
  and Ohio
• 5 rural regions in Oregon
• 4 counties in northern New Mexico
• Statewide in Nebraska
• Statewide in North Carolina
• Three Native American reservations in South
  Dakota and Wyoming

11
Transfer of Wealth Capture
53 trillion will transfer from generation to
generation in next 50 years could mean a major
exodus of capital from rural America. Capturing
5 through community foundations will create
sustainable capital base for rural community
development. 20 states have had TOW analyses
rural Nebraska 94 billion
12

• Rural Policy Research Institute
• Brian Dabson
• President CEO
• brian_at_rupri.org
• www.rupri.org