Rural Economic Development Update(Focus on Broadband)

Brian WhitacreAssociate Professor & Extension EconomistOSU Ag Econ5-19-2014

Agenda

1. Online Sources of information for:• Broadband availability• Broadband adoption

2. Recent research on broadband & the rural economy

3. E-commerce workshops: current (and future)

1. Online Data Sources for Broadband

• Broadband Availability– National Broadband Map (

www.broadbandmap.gov)

Type in an address and see what type of

broadband is available

- Data updated every 6 months- Currently as of June 2013

National Broadband Map• Explore how your county / community ranks in

terms of broadband availability!Access to Wired BB Technology

National Broadband Map

• Or, select “Explore the Maps” to zoom in on an area around you

Select Technology TypeDSL Cable

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

National Broadband Map• Can also look at speeds available, or number

of broadband providers (select at bottom)

> 3 MBPS > 10 MBPS

National Broadband Map• GIS data also available

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%

FCC Adoption Data

• Household Broadband Adoption

Data is also available at the Census Tract level

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

2. Research Update

2. Research Update

Household Broadband Adoption Rates by Metro/NM Status, 2003 and 2010

The Metro / Non-metro “Digital Divide”

2. Research Update

2. Research UpdateFactors 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

• High # Providers (>6) • Low # Providers (<3)• Low Download Speed

(<3-6mbps)

2010

• High Download Speed (>10 mbps)

• Low Download Speed (<3-6mbps)

2011

2. Research UpdateBroadband and the Rural Economy

Income Grew Faster Unemployment Grew Slower

We compared rural counties that had high levels of broadband adoption (60+%) with otherwise similar rural counties that did not…

2. Research UpdateBroadband and the Rural Economy

Lost More Firms Lost More Jobs

We also compared rural counties that had low levels of broadband adoption (<40%) with otherwise similar rural counties that did not…

2. Research UpdateWhat 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

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

3. Current OSU E-commerce WorkshopsWorkshop Length Computers

Needed?Avg # of Attendees

Workshops / Attendees to Date

Small Business Websites•Planning out your website •Website Building 101• Actually building a site using templates

3 hours Yes 10-15 18 / 310

PayPal 101• Implementing PayPal•Actually installing PayPal on an example site •Other PayPal tips & tricks

3 hours Yes 10-15 15 / 170

Ins and Outs of Online Storefronts• Getting started selling online•Primer for Amazon / Yahoo / eBay / etsy stores•Pros and cons of each option

3 hours Yes 10-20 10 / 120

Search Engine Optimization• 5 proven techniques for SEO•Pay-per-click advertising•Social media basics, including Facebook ads•Installing and using Google Analytics

3 hours Yes 10-15 20 / 250

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??