Rural Economic Development Update (Focus on Broadband)

1. Rural Economic Development Update(Focus on Broadband) Brian Whitacre Associate Professor & Extension Economist OSU Ag Econ 5-19-2014

2. Agenda • Online Sources of information for: • Broadband availability • Broadband adoption • Recent research on broadband & the rural economy • E-commerce workshops: current (and future)

3. 1. Online Data Sources for Broadband • Broadband Availability • National Broadband Map (www.broadbandmap.gov) - Data updated every 6 months - Currently as of June 2013 Type in an address and see what type of broadband is available

4. National Broadband Map • Explore how your county / community ranks in terms of broadband availability! Access to Wired BB Technology

5. National Broadband Map • Or, select “Explore the Maps” to zoom in on an area around you Select Technology Type DSL Cable

6. National Broadband Map • Also includes Mobile Wireless Coverage… • Is this realistic? You tell me…

7. National Broadband Map • Can also look at speeds available, or number of broadband providers (select at bottom) > 3 MBPS > 10 MBPS

8. National Broadband Map • GIS data also available

9. 1. Online Data Sources for Broadband • Broadband Adoption • Federal Communication Commission Data • http://transition.fcc.gov/wcb/iatd/comp.html County & Tract-level data (about halfway down page) Categorical Adoption Data: 0-20% 20-40% 40-60% 60-80% 80-100%

10. FCC Adoption Data • Household Broadband Adoption Data is also available at the Census Tract level

11. 2. Research Update • 100+ page report: • Quantifying the “Digital Divide” • What impedes broadband adoption in rural areas • Broadband’s contribution to economic health in rural areas

12. 2. Research Update

13. 2. Research Update The Metro / Non-metro “Digital Divide” Household Broadband Adoption Rates by Metro/NM Status, 2003 and 2010

14. 2. Research Update

15. 2. Research Update Factors Impacting Rural Broadband Adoption What is Driving Broadband Adoption at the COUNTY Level? + Impact: education, income, population, (though not in non-core counties); high concentrations of jobs in real estate / information - Impact: share of non-farm proprietors, race / ethnic categories (only in non-core) Availability Measures Impacting Adoption 2011 2010 • High # Providers (>6) • Low # Providers (<3) • Low Download Speed (<3-6mbps) • High Download Speed (>10 mbps) • Low Download Speed (<3-6mbps)

16. 2. Research Update Broadband and the Rural Economy We compared rural counties that had high levels of broadband adoption (60+%) with otherwise similar rural counties that did not… Income Grew Faster Unemployment Grew Slower

17. 2. Research Update Broadband and the Rural Economy We also compared rural counties that had low levels of broadband adoption (<40%) with otherwise similar rural counties that did not… Lost More Firms Lost More Jobs

18. 2. Research Update What about rural counties that saw increased broadband adoption between 2008 and 2011? • Increases in broadband adoption had a positive impact on changes in median household income and total employment (analysis limited to non-metro counties) • Particularly impressive – focuses on only recent adoption and over a short period of time • No impacts on economic health indicators when using change in residential providers rather than broadband adoption

19. 3. E-commerce Workshops • Extension program focused on small businesses trying to build their web presence • Partner with Rural Enterprises, Inc (REI) • Often team up with local chambers / banks / technology centers • Started in 2007, has progressed yearly… • Won AAEA Extension award in 2013

20. 3. Current OSU E-commerce Workshops

21. Future OSU E-commerce Workshops(?) • These HAVE NOT been developed yet… feedback on additional topics appreciated! • Websites for the small screen (i.e. smartphones) • Selling directly on Facebook • Others??