the valued relationship between workforce training and economic development a correlation study

The purpose of this study was to determine if workforce development has an impact on changing the economic growth of rural communities in the state of Florida.. This research provides da

THE VALUED RELATIONSHIP BETWEEN WORKFORCE TRAINING AND

ECONOMIC DEVELOPMENT: A CORRELATION STUDY

By Kevin A Cojanu

JOHN DeNIGRIS, Ph.D., Faculty Mentor and Chair JOHNNY MORRIS, Ph.D., Committee Member ADOLFO GORRIARAN, Ph.D., Committee Member

Kurt Linberg, Ph.D., Dean, School of Business & Technology

A Dissertation Presented in Partial Fulfillment

Of the Requirements for the Degree

Doctor of Philosophy

Capella University December 2007

3288820 2008

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by ProQuest Information and Learning Company

The purpose of this study was to determine if workforce development has an impact on changing the economic growth of rural communities in the state of Florida Currently there are no consistent strategies for developing workforce ready individuals in the many rural communities of the United States This research provides data as a point of

correlation for defining how workforce development affects the business opportunities for economic growth in rural communities in Florida This study develops ideas

regarding the impact of workforce development programs based on the two age

categories of “45 and Under” and “Over 45”, as this relates to the advancement of

economic growth of rural communities in the state of Florida Participants for this study were drawn from the members in the National Rural Economic Developers Association (NREDA) A researcher-designed questionnaire was used to determine self-reported viewpoints, divided by the two age categories above, regarding business, community, and workforce issues as related to economic development in rural communities that can be applied to the state of Florida The results indicated that those National Rural Economic Developers Association (NREDA) members who self-identified in the researcher’s survey as “45 and Under” and those who self-identified as “Over 45” recognize that (a) businesses have an influence on the workforce development levels in rural communities

as this impacts economic development, (b) communities, themselves, have an influence

on the workforce development levels in rural communities as this impacts economic development, and (c) community workforce development agencies and educational

have an impact on economic development.

Dedication This dissertation is dedicated to the most important person in my life, Susan Susan’s love, caring, dedication, and just plain old patience of a saint made all of this possible Susan was my rock, my motivation, and my love She provided me with the stamina to be something more than I thought I could be In this dedication, I can only tell her that the deep love we have for each other has helped us to overcome the hardships we faced This has made us stronger together and forged a bond that is unbreakable – I love you Suzy!

Acknowledgments There are many people that need to be part of this acknowledgement First and foremost, my mother, Marlene, who forever pushed me to be all I could be in life, and not because she wanted a doctor in the family My father, Stan, who will not see the

successful completion of this milestone because of his passing in 2005, but I know he is watching with pride I truly need to acknowledge the unwavering support of my in-laws, Joni and Charlie They have supported my every effort and my direction in this world, and Charlie always had a joke or story that put everything into perspective My friend,

my brother in this world, Randy, who was always asking how it was going and presented

me with a sounding board when life got tough In every aspect of life, we meet people that become family whom you love and care for, unconditionally Trisha and Erik, of the Hornitos family, have become just such family I cannot fail to mention Dave and Loree, who left me this year, 2007 I missed their tough love, but their faith helped me through some difficult times My daughter, Megan, who I tried to set an example for in that life is full of challenges, but one must persevere to see success I have great hopes for her future I cannot forget my Aunt Angela in this dedication I believe her love, her

attention, and her example created the desire I had to learn all that I could, no matter what My Little Grandpa, gone these many years, still provides the life lessons I have daily in my life I know he is standing proud looking upon my accomplishment and telling everyone “That’s my Grandson.”

I wish to acknowledge my superior dissertation committee, Drs John DeNigris, Johnny Morris, and Adolfo Gorriaran for all of their guidance, patience, and well-timed encouragement Also, I would like to acknowledge Dr Susan Pettine who was an excellent sounding board when the well ran dry Her profound knowledge and ideas allowed my creativity to flow

Sampling Design: Population and Sample 55

Measures 56 Data Collection Procedures 57 Pilot Testing 58 Data Analysis Procedures 58 Limitations of Methodology 59 Internal Validity 60 External Validity 61 Expected Findings 61 Ethical Issues 62 Conclusion 63 CHAPTER 4: DATA COLLECTION AND ANALYSIS 64 Introduction 64 Review of Research Questions and Hypotheses 64

Review of Data Collection 65

Pilot Study 66

Findings Related to Hypothesis 1 67

Question 1 67

Question 2 69

Question 3 70

Question 4 72

Question 5 74

Overall Discussion of Hypothesis 1 Findings 76

Findings Related to Hypothesis 2 76

Question 1 77

Question 2 78

Question 3 80

Question 4 82

Question 5 84

Overall Discussion of Hypothesis 2 Findings 85

Findings Related to Hypothesis 3 86

Question 1 86

Question 2 88

Question 3 89

Question 4 91

Question 5 93

Overall Discussion of Hypothesis 3 Findings 95

Summary of Data Collection and Analysis 95

CHAPTER 5 RESULTS, CONCLUSIONS, AND RECOMMENDATIONS 98

APPENDIX A: SURVEY QUESTIONS AND INFORMED CONSENT 117

APPENDIX B: SURVEY DATA: HYPOTHESIS #1 126

List of Tables

Table 2 Participant Age Categories as Recorded by the Researcher’s Survey

Table 3 Question 1 Age Categories and Responses 68 Table 4 Question 2 Age Categories and Responses 69 Table 5 Question 3 Age Categories and Responses 71 Table 6 Question 4 Age Categories and Responses 73 Table 7 Question 5 Age Categories and Responses 75 Table 8 Question 1 Age Categories and Responses 77 Table 9 Question 2 Age Categories and Responses 79 Table 10 Question 3 Age Categories and Responses 81 Table 11 Question 4 Age Categories and Responses 82 Table 12 Question 5 Age Categories and Responses 84 Table 13 Question 1 Age Categories and Responses 87 Table 14 Question 2 Age Categories and Responses 88 Table 15 Question 3 Age Categories and Responses 90 Table 16 Question 4 Age Categories and Responses 92 Table 17 Question 5 Age Categories and Responses 94

Introduction to the Problem The state of Florida has put forth the Rural Economic Development Initiative (REDI) to assist rural Florida communities to become more viable economically (Florida Statute 288.0656) Section 2 Article (a) says:

Economic distress" means conditions affecting the fiscal and economic viability

of a rural community, including such factors as low per capita income, low per capita taxable values, high unemployment, high underemployment, low weekly earned wages compared to the state average, low housing values compared to the state average, high percentages of the population receiving public assistance, high poverty levels compared to the state average, and a lack of year-round stable employment opportunities (Florida Statute 288.0656)

In addition Section seven states:

… A rural area of critical economic concern must be a rural community, or a region composed of such, that has been adversely affected by an extraordinary economic event or a natural disaster or that presents a unique economic

development opportunity of regional impact that will create more than 1,000 jobs over a 5-year period (Florida Statute 288.0656)

Workforce development in rural communities of Florida is not treated equally across the state because there are no viable programs that can properly educate or train the existing workforce to advance the viability of the community (Garlich & Tesinsky, 2005) This research study evaluates the impact of an unskilled workforce on business opportunities for economic growth in rural communities in Florida

Ulrich Research (2002) provided research that determined workforce availability

compared to workforce development opportunities in Highlands County Florida were at risk based on the level of training and education within the available workforce

Davenport (2006) suggests that according to corporate executives the United States must increase the education and skills of rural and urban communities in order to remain competitive in retaining jobs Dychtwald, Erickson, and Morrison (2006) cite that fewer degreed people in the workforce significantly influence economic growth of business in urban and rural communities There appears to be fewer and fewer skilled workers to address the needs of corporations in leadership and problems solving to meet the

demands of the global market (Davenport, 2006)

Highlands County Florida is a region of Florida that is designated agricultural Highlands County Florida’s focus is the citrus and cattle industries, which is beginning to fade due to foreign competition (Pfeifer, 2006) The shift away from agriculture is

beginning to have an impact on the population of the Highlands County Florida and there

is a need to develop the existing workforce to become viable for other business and industry to maintain economic development opportunities (Dalton, 2004) Ulrich

Research in September of 2000 indicated that based on the estimated 99,718 adults 18 and over that less then 12% have a college education, 7% have some specific trades training, and 30% have high school diplomas (Ulrich Research, 2000) The range of career opportunities reside in office and clerical, service related positions, and a large mix related to agriculture in numerous forms (Ulrich Research, 2000)

One example of the relationship of workforce training linkages and economic development is in Massachusetts, where roughly 1.1 million workers have not obtained,

or have the means to obtain needed skills to support economic growth (Business West Editorial, 2005) These workers will become an unskilled labor force that will be

recognized as at-risk for low-income output and impact the economic viability of the economic position of the United States (Sperling, 2005) At the current rate, Both China and India will annually graduate five times the number of engineers compared to the United States (Sperling, 2005) In the new global economy, foreign labor is effectively replacing the United States as the premier labor market

Kastsinas and Moeck (2002) compare the ‘have’ and the ‘have–nots’ in the ability to offer technology availability and training to different communities A study by Kastsinas and Moeck (2002) outlined that most rural communities struggle to be

technologically perceptive because of the economic resources available to them Rural colleges face the same issues because of available funding to develop and deliver new workforce training programs Therefore, these communities are behind in developing into economic centers that focus on developing workforce skills at the earliest possible learning levels and or delivering workforce training Kastsinas and Moeck (2003)

expands on this position to promote a review of current funding models for college tuition This review should account for the real cost of tuition including items such as childcare, transportation, and living expenses

Statement of the Problem The lack of a skilled workforce is having an impact on businesses and the

economic development of rural communities in the State of Florida Highlands County Florida is one example that finds the most educated of the available workforce making on the range of $26,000 to $32,000 in 2000 according to the Ulrich Research (2000) study

Additionally, the highest paid positions make up less than 12% of the total population of Highlands County Florida (Ulrich Research, 2000) Some of the conditions can relate to the actual level of skills that are available from high school and college graduates

entering into the workforce In some cases workforce resources do not have the

knowledge to contribute to the business objectives that relate to the growth of local and relocated businesses (Andersson & Karlsson, 2007)

The Academy of Management Review (Tallman, Jenkins, Henry & Pinch, 2004) promotes the definition of Industrial District as a single focused geography to promote the industry of choice This definition identifies that the knowledge sharing for the development of specialized workforces occurs at all levels of business, education, and local government to develop the Industrial District to meet the current and future needs of the specific industry

Markusen (2004) promotes the concept of ’Industrial Targeting’ as a form of industrial districting The concept looks at the methodology of corporations building a strategic plan that ideally looks for the logistical attributes that exist in a community and then begins the process of knowledge sharing with community and education leaders to begin the potential transformation Markusen (2004) warns that this methodology is not always the most effective method of creating economic growth in a community

Markusen’s reasoning resonates around the theory that much of the available

demographics for a community may lack consistency and validity

Patrucco (2003) introduces the concept of agglomeration as the development of loosely connected communities that offer the impression of a solid workforce

development program that could support the needs of one or multiple industries The

benefit to the economic growth is the knowledge and training of the workforce These agglomerations provide effectively for the growth of businesses into three different districts; the actual industry it supports, the technical support services, and the

community services that are provided to the workforce As Patrucco (2003) suggests, the community develops, hence bringing economic growth as a natural progression for supporting the industrial district with a well-trained workforce

Workforce investment planning appears to play a crucial role in the success or failure of economic development To understand how workforce training and

development influences to economic growth it will be necessary to understand the

relationship and its presumed effects

Purpose of the Study The purpose of this study was to determine what degree of impact workforce development has on changing the economic growth of rural communities in the State of Florida Currently there are no consistent strategies for developing workforce ready individuals in the many rural communities of the United States This research provides data as a point of correlation for defining how workforce development affects the

business opportunities for economic growth in rural communities in Florida

Swager (2000) defines economic development as a method of utilizing resources such as land, buildings, and people to provide for underdeveloped regions and countries Sperling (2005) states:

Over the past two decades, the share of workers with at least a high school degree grew by 19 percent; over the next two decades, it will grow by only 4 percent At the same time, high-skilled technical jobs have grown five times faster than the

population since 1980 Unless we expect massive new immigration or increased fertility rates, we will need to increase the pool of highly skilled workers or face a

growing labor shortage (p.137)

Sperling (2005) implies there is a lack of highly skilled workers to support the

potential requirements of businesses in the United States This research study examines how a dwindling skilled workforce could influence business and economic growth The research study also focuses on the levels of education within the workforce and the possible impact on businesses and economic growth of local communities within the United States To provide the necessary workforce for a business and to contribute to economic growth, businesses may need to contribute to the learning outcomes and

potentially work with the community (or country) to develop that potential workforce resource (Preparing for tomorrow through education and workforce development, 2006)

Specifically, economic development is a focus for developing economic growth with no real specific boundaries or limitation Economic development has assumed the role as one of the dominating issues in the world today There is a great deal to be said for acting global and working local when the competition for economic business has no country or continent boundaries, but the maintenance of global business relies solely on available resources within the village, town, city or metropolitan urban center (Koehler & Wurzel, 2003)

Rationale This study adds to the body of knowledge as it relates to the development of workforce skills and its possible impact on the economic development of the

communities they serve Economic development is a global movement driven by local

business and communities as a point of survival for future generations (Holliday, 2006) This study provides information about the role businesses, communities, government, education, and workforce development agencies have in creating programs for

encouraging workforce development to enhance the economic development of a given community and/or region

Research Questions and Hypothesis

A sample survey of the National Rural Economic Developers Association

(NREDA) members was conducted, as they represent the interest of the rural

communities in Florida and the United States This association represents the leadership

of rural communities and can effectively provide knowledge and validity to the research

These research propositions were framed by these research questions:

1) Does business influence the level of workforce development in rural

communities to impact economic development?

2) Do communities influence level of workforce development to impact

economic development?

3) Do community workforce development agencies and educational

systems focused on developing workforce ready individuals’ impact economic development?

Harvard Economist, Ed Glaeser outlines the need for communities, businesses, education, and governments to come together and positively impact the economic growth

of communities big and small (Bowles, 2005)

Significance of Study

In the Southeastern United States the wages per-capita are the lowest in the nation Florida is one of the largest states in the geography and it represents about 35%

of the total workforce in the Southeast The quality of workforce development is

dramatically impacted in rural areas and hit harder with potentially fewer opportunities (Shuptrine, 2006)

The Work Readiness Credential is a voluntary program created by the U.S Department of Commerce to promote a ready workforce Florida is a participant, but does not have a solid base for running the program in urban or rural communities The program does not focus on developing workforce skills in specific areas It will make the resource a better candidate for providing basic job skills (Olson, 2006)

Workforce development is rural communities like Highlands County Florida suffer from a potential lack of direction in developing programs to educate and train the workforce to open opportunities for business development and relocation Some

communities establish themselves as a leader in specific industry clusters The ability to promote a specialization based on workforce skills works to establish the community and draw the interest of businesses in that industry (Romanelli & Khessina, 2005) The challenge to meet any specific industry criteria may relate to the demographics of the community, which provide a workforce that is trained and or trainable with the required business skills In cluster opportunities, communities look to the business seeking to locate to assist in the training process (Jeter, 2004)

This study seeks to create new avenues of opportunity for businesses and

communities to evaluate current workforce development activities and determine if the specifics of the strategy are in the best interest of the workforce being developed and

hence the impact to the economic position of the community Developing and

redeveloping a workforce strategy could keep communities like Highlands County

Florida in the forefront of the business needs of specialized industries solely based on the development of a workforce that is equipped to support any possible requirements

Definition of Terms There are several key terms used in this study that require a clear definition They are as follows:

Workforce Development: Knowledge and skills that relate specifically to the work

delivered in a community Managing strategy to maintain the viability of business based

on the available labor force skills (Voorhees & Harvey, 2005)

Economic development: The combination of specific elements education,

employment opportunities grow, income rises, innovation in business becomes the rule,

and there is a steady increase in productivity (Schweke, 2000)

Economic growth: Utilizing the Endogenous Growth Theory, which measures

growth based on employment numbers and income growth among the workforce, this includes the monitoring of the human capital components for education, training and workforce-ready individuals Additionally, the theory includes the impact of government policy, trade, and local and foreign investment (Ericsson & Irandoust, 2000)

Secondary institutions: Comprehensive high schools that cover Basic English,

Mathematics, Social Studies, Science, and some basic vocational instruction

Post-secondary institution: Higher education focusing on providing specific

vocations by way of degree in a specialized subject matter that can be applied to a job or

career Cleveland (1981) defines the outcome, as students are employable to the

community for which they live

Workforce-capable: Possessing the level of skill to deliver on new processes and

providing current and new services to business and or customers (OECD economic surveys, 2005)

Community leadership: People and organizations, government or public support,

that provides opportunities for success in the communities in which they live Providing strategy to stir new growth starts with the commitment and leadership within the

communities (Walsh, 2006)

Resources: Workforce-capable individuals that are ready, willing, and able to fill

the needs of industry and business in the communities for which they reside These resources are not defined by any gender, race, sexual preference, or ethnic background

Global Economy: The ability to sell products and services globally by allowing

for businesses to create products and services in geographical regions that take advantage

of low-cost resources to create competitive costs of productions and or delivery of

services

Assumptions For the purpose of this study, the following assumptions were made: (a) voluntary participants from the National Rural Economic Developers Association (NREDA)

members were surveyed, (b) this study rigorously focused on the ethical codes and regulations of Human Subjects in Research for the data collected, processed and

analyzed, (c) interview questions produced impartial, and unbiased statements in the design format when it was provided to the NREDA membership, (d) analysis took place

to reduce bias interpretation as patterns began to develop outcomes, and (e) the study was limited to focusing on rural communities in Florida

Limitations This study was limited by these elements: (a) representation in the study only came from the NREDA membership, and (b) the definition of a resource was not based

on gender, race, sexual preference, or ethnic background

Nature of the Study The primary research that was performed focused on the impact of workforce development on the economic growth in rural communities in the state of Florida The process was to focus on determining if there was a correlation between workforce

development and the influence from business, community, and workforce development agencies and economic development as it relates to economic development for rural communities The researcher was looking for common results in the research that outline possible strategies that can be utilized to build stronger workforce development programs

in rural communities These results come as a result of the knowledge and experiences from the membership of the NREDA These economic development professionals provided quantitative data to determine specific areas of concern and successes

Additionally, they provided anecdotal feedback that provided a qualitative review of possible workforce strategies for rural communities Mason (1996) outlines three

specific types of understanding in qualitative research, which each have an individual threat to validity Description threat occurs when partial or an inaccurate collection of data exists As such, supporting material from viable alternative sources can be used to compensate Interpretation threat occurs when a framework of position is forced rather

than allowing interpretation to unfold Mason (1996) explains that interpretation must be openly demonstrated to offset to prevent any threat to validity of the research Theory threat diminishes when different explanations of the phenomena are ignored To meet this objective, the researcher must aggressively pursue data that is independent of the theory

Organization of the Remainder of the Study This research study was organized into five specific chapters Chapter 1 has outlined an introduction of the proposed research study, which includes the background

of the study, the statement of the problem, the purpose of the study, the rationale,

research questions, significance of the study, definition of terms, assumptions, and

limitations, and the nature of the study

Chapter 2 provides a review of the literature on the impact of community,

education, business leadership on the economic development of regions, rural and urban centers There is a perception that economic development is directly related to

participation of outside organizations in creating the right conditions, including

workforce-capable resources Additionally, Chapter 2 provides a review of the literature relating to qualitative research methods The findings of this literature review provide the foundation for the research methodology for this study

Chapter 3 provides a detailed description of the proposed research methodology, criteria, dependent and independent variables, cause and effect relationship maps for all

of the defined variables, and a review of the measurement instrument for testing This chapter also includes the proposed methods of data analysis

Chapter 4 presents the research data and the analysis of the data relating to the research questions

Chapter 5 provides a summary and discussion of the results, conclusions and recommendations, and connects the research results with the literature review

CHAPTER 2: LITERATURE REVIEW

Introduction Maslow's hierarchy (1998) teaches us the importance of understanding our needs and how those needs can be satisfied Denton (1994) notes that diversifying by

understanding what the community has to offer presents a plethora of economic growth opportunities focused on the community Garza and Eller (1998) outlined that

educational systems needed to open themselves to a greater understanding of what impact they have on the economic development of a community Martinez-Carbonell (2000) emphasizes that business supporters view government officials as mechanisms for valued contacts for growth These statements are the basis for the research that will be

conducted on the impact of community, education, and business on the workforce in order to create economic development (Martinez-Carbonell, 2000)

This literature review addresses the following situations: (a) communities

influence the level of workforce development and available job opportunities in the workforce by promoting only the immediate needs of businesses, (b) secondary education systems fail to provide educational standards and skills that are based on preparing the workforce, and (c) business leaders are promoting changes in the level of workforce capabilities There is a perceived need for basic skills, which is not being heard in the educational institutions Adults are entering the workforce with little or no customer service or basic life mathematical skills

Overview The literature review conducts an overview of the influence community,

workforce development agencies, education, and business leadership has on the economic

development of a region or a rural or urban center The analysis in the literature review focuses on the positive and negative influences these independent organizations have on promoting development for the communities, and also focuses on the influences of the workforce-capable resources that will potentially drive the economic direction of the community

Developing economic success is a possibly important component for any

community An important factor that contributes to this success is the level of linkages between training and employment opportunities within communities, and the businesses they ultimately support This communication is not solely the process of interacting The exchange of knowledge and information develops a measure of mutual success for the community and business These mutual-success factors have the best possible impact when collaboration on knowledge is shared effectively between all parties involved The ability of organizations to share information and knowledge to bring about success in the global business environment can be as simple as supplying the mission and objectives for the people in the organization to accomplish Some of these same approaches are

effective in the development of programs within a community The coordination of information and knowledge with community and industry assists in creating a

competitive workforce through workforce training and development programs that

transform the community workforce to be a positive contributor to the local economy by maintaining a steady flow of resources to support the industrial and economic viability of the community It is important that economic development organizations of communities that are in critical need of knowledge sharing across business and industries, as well as knowledge gained by training and development institutions of a community, be fluent in

communication and knowledge sharing The ability to develop economic growth within

a community may depend greatly on the ability of economic development leaders to manage the knowledge shared to present a complete portfolio of available resources the community has to offer to any potential business looking to locate or even expand within the community This portfolio should be designed to present a clear definition of

resources, educational programs, business support, and community viability as in the conditions of the community to support potential development activities

Community Involvement

In every community, rural and urban, there are economic development

opportunity possibilities These communities are subject to developing strategies that government officials create to begin the process of developing and redeveloping the communities to increase the positive impact to the city, town, village, county, or

metropolitan area This impact is measured in the job opportunities that are created Impact is also measured in how areas are developed or revitalized It is important for leadership in these rural or urban centers to provide planning that encompasses a strategy that can be developed for three, five, ten, and even twenty years of development and planning

Moses (1991) expresses the importance of avoiding the pitfalls of economic development strategies Much of the planning process needs to consider the importance

of setting realistic goals that match the community In a number of cases, there is the copycat effect that finds leadership focusing on what other communities have done successfully and attempting to apply the same effort in their community Moses (1991) states that failure to understand the economic base of the community is a critical error in

effort The understanding of the available labor resources is a common mistake

Sometimes the combination of census data with state and federal employment data is not

a viable option for determining what a community has to offer in a labor market for development Some of these numbers are skewed, and when combined, do not offer details in regards to skills and/or true educational advantage for the community

Successes in economic development planning can be viewed in a number of different models and the processes associated to determine the right plan The town of Mentor, Ohio is one such example of collaboration and research to develop a plan to sustain the community in the immediate and long term Having suffered a number of manufacturing plant closures that affected 5,000 people in the workforce, the community leadership developed a strategy that looked to attract a large heavy manufacturing facility

to help the displaced workforce At the onset of the process, community business leaders recommended an alternative method of reviewing that decision In a collaborative effort analysis utilizing the Cambridge Systematics' growth and risk indicators database, it was indicated that a focus on small homegrown businesses showed greater promise to address the workforce displacement that had occurred This evidence provided for a change in strategy with a focus on small local businesses This resulted in 4,000 new positions over the first few years of the strategy being implemented (Moses, 1991)

Cambridge Systematics is a private company that specializes in the review of businesses and industries’ growth patterns The types of establishments included in the review are branch, headquarters, and single locations based on size and vitality As a company for hire, Cambridge Systematics provides solutions that build economic

development planning that makes effective use of the core infrastructure components that exist in a region, city, town, or metropolitan setting (About us, n.d.)

In the mid-1990’s, Shore (1995) began research that started to raise the level of information as it related to the urban centers, or downtown areas of large cities and their degradation Economic development was focused on areas that were suburban or rural based on expansion possibilities Downtown areas were ignored as unusable This belief

in the early 1990’s that downtown areas were unusable did not take into account the numbers of people living in the downtown areas The workforce-capable resources were becoming stagnant and losing their worthiness to the community (downtown areas) Shore’s efforts began the process of outlining the critical benefits of downtown living and the city dwellers that could contribute to the workforce-capable resources to revitalize these communities The Ford Foundation established the Local Initiatives Support

Corporation (LISC) with the sole purpose of revitalizing communities through

communities by providing financing for rebuilding and for workforce development programs for the city The LISC created opportunities to address specific needs in the community and provide skills for the forgotten workforce

Talen (2002) promotes the transect approach to development The transect model

is described as an analytical approach to putting things in the right places As an

example, in an urban center there are opportunities to promote the use of existing

structures to support new business opportunities, whereas in a rural community, there is a need to focus land use that takes into consideration the ecology of the region and not affect possible agri-businesses that currently exist One of the key factors in the

development process is the use of designed transect zones for rural and urban

development As an example, the transect approach divides urban centers as: urban that is primarily residential and significantly void of businesses; general-urban that has a mix of residential and business interaction; urban center which is a more dense area

sub-of multi-residential buildings and businesses; and urban core that has the densest sub-of community population with business and multi-residential buildings and contains the cultural and entertainment core of the urban community

Gomez and Muntaner (2005) offer research that discusses the community health and the importance of re-development of depressed areas such as East Baltimore In the research, the indications are that the failure of communities to maintain social

involvement through regular community leadership such as associations’ results in a failure to maintain a level of pride in how a community looks, and the sense that it is a desirable place to be Gomez and Muntaner (2005) cite the works of Woolcock and Narayan (2000) and North (1990) which outline the importance of these communities to force its role with the local and state governments to become a decision-maker in how redevelopment is handled This political control offers the community the position to control its destiny in creating redevelopment and economic growth for its urban

community

Porter (1998) adheres to the revitalization model of economic development in urban city cores The author’s claim is this has become a cyclical effort Ultimately, this resulted in a failure in the long term to maintain a successful environment for economic growth Some of the conditions outlined focus on the simple services that draw growth to

a city core, such as security, opportunity, and money to sustain the progress In an effort

to support, yet refute Porter, Amirkhanian and Habiby (2003) promote that these are

necessary services, but a collaborative effort from government, community, and

businesses can and will create an effective revitalization of a failing city core Nunn (2001) disputes Porter's position by emphasizing the overall advantages of an inner city

He promotes the facts of logistical access, trainable workforce, and government support for revitalization

Fredericksen and London (2000) caution that revitalization efforts in certain regions and inner city locations present serious risks based on the social and ethnic make-

up of these areas Ultimately, what you find are low income and poorly educated social and ethnic groups If a revitalization plan does not review the community dynamics, the ultimate result will be failure

Jeter (2001) outlined the process that the Tupelo, Mississippi Community

Development Foundation (CDF) used as it entered into a $1.6 billion dollar investment in

to the Future Focus campaign for the development of economic and quality of life

opportunities After completing the study, the CDF established a series of proposed directives to resolve area workforce development issues, technology initiative, and the retention of current businesses, and attracting new business Additionally, there would be

a focus on providing leadership and organization development including quality of life issues

Lofton (2006) provided a follow up to the initiatives for Tupelo, Mississippi Community Development Foundation (CDF) which provided significant results The CDF found itself in the number two metropolitan areas of the 19 designated areas in Mississippi Much of the success was due to the level of communication and

involvement of the Tupelo community In addition to communication, the CDF involved

any and all business and educational and workforce development organizations to share

in the work, but also to share in the rewards of success

Stafford (2000) outlines that in most cases communities and governments are very willing to reduce environmental conditions for the opportunity to gain an edge for

businesses of medium to large-size to move into any urban or rural community It is clearly represented that there is no noteworthy restrictions for businesses or corporations

to move into a region and begin the process of developing an effective enterprise

During the Clinton administration there was a concerted effort to bring about a National Information infrastructure that focused on increasing information access by every American citizen President Clinton on February 8, 1996 signed the

Telecommunications Act of 1996 This Act was an overhaul of the Communications Act

of 1934 This action promoted open competition across all elements of the of the

telecommunications industry (Beachboard & McClure, 1997)

Hausman (1997) indicates that the telecommunication conditions created greater opportunities for everyone from urban to rural communities to obtain cost-effective services based on competition of local providers These efforts also created growth opportunity for rural communities that did not previously receive the modernized

telecommunication services In a twist of fate, these communities were defined as

growth areas for smaller telecommunication companies to enter into relationships with rural communities and expand the possibilities of those communities with a technology infrastructure These relationships resulted in relationships expanding to other technical companies allowing for a network to become established, and these networks viewed the small rural communities as growth opportunities at a low cost (Gillette, 1997)

Denton (1994) acknowledges the importance of communities recognizing the risks and potential opportunities for economic growth The Virginia Peninsula was a rural community that was rich in government military contracts for technology

production What presented a problem to the community was the ongoing ebb and flow

of very lucrative contracts Denton (1994) presented material that the region received a

$700 Million military contract one week and the next week businesses that supported the Navy were forced to lay-off 2200 workers due to reduced spending for naval technology Most of these positions were non-transferable across the industries in the industry cluster The community provided a visionary approach creating economic diversity Creating the Virginia Peninsula Economic Development Council (VPEDC), it developed a report called the "Peninsula Focus 2000." The report outlined the assets and characteristics that the region offered It outlined the critical characteristics of the type of businesses that would benefit from the community The key characteristics identified focused on

technology-based manufacturing and development firms as the center of its economic diversification In the next phase of the VPEDC initiative, it targeted the desired industry clusters for developing economic diversification The "Peninsula Focus 2000" references the engagement of the local workforce training organizations to support and assist in developing the skills training plan that would continually make the community workforce ready for all opportunities

Kemp (2000) warns that in some cases the planning occurs with government and business participation with little or no involvement from community organizations that represent the social and ethnic viewpoints of the community to be revitalized In reality, the planning process often promotes the gentrification of an urban core

Scott (2005) outlines the endless possibilities of economic growth from

developing an industry cluster The industry cluster model has the ability of developing multiple tiers of services and businesses to support a singular industry The aspects of developing a community, or region, into an industry cluster depends greatly on the ability

to assess current assets such as land for development, existing structures, workforce, logistical applications (transportation), utility foundations (power, water etc.), technology availability, workforce development, and educational institutions (Allen & Taylor, 2005) What is important for these regions and/or communities is the ability to present a constructive view as to how they measure up to the needs of industries they may be able

to support as an industry cluster community

There are a number of examples where industry evaluated the region and based on specific regional and federal government concessions developed the industry cluster by providing all of the critical components to ensure the businesses’ efforts would not result

in failure This undertaking would be a collaboration to develop land use criteria, utility infrastructure, logistical supply-chains, transportation, and workforce education

Ultimately, the cluster industries would share in the responsibility to build vitality based

on core needs (Howard, 2005)

Rozycki (2006) cited a plan by the New York State Thruway Authority,

Department of Transportation, and Metro-North Railroad to open a possible industry cluster growth opportunity by creating rail service that would link the combined outer suburb communities and urban centers to significant land use to develop industry clusters

at any point in the rail map The estimated $11.5 to $14.5 billion dollar project has come under fire from a number of impact agencies such as Inter-Metropolitan Planning

Organization, and additional concerns reported by Environmental Protection, which believes consideration for the environment, needs to be defined before the project can be initiated

Gillette (2004) outlines the success of George County, Mississippi, which had been working with community leaders to develop a “mega site” to build economic

development opportunities Surrounding counties had been able to develop “mega sites” due to rail export services The Greater Mississippi Economic Development Foundation negotiated with the Mississippi Export Rail a spur that would provide access to a 1,200-acre site that would allow George County to compete for industry clusters along with other counties already benefiting from the same rail services that link to the other clusters

as well as to Mississippi ports

Technology infrastructure is a critical component of the overall infrastructure within a region or community or as defined by Brynjolffson and Hitt (2000) The

authors' state “General-purpose technologies are substantially larger than would be predicted by simply multiplying the quantity of capital investment devoted to them by a

normal rate of return Instead, such technologies are economically beneficial mostly because they facilitate complementary innovations” (p.31)

Clearly, the importance of technology infrastructure includes the impact of

supporting the expected needs of industry in order for the regions or community to become a player in soliciting economic growth opportunities

China has incorporated a number of initiatives aimed at become a monopoly in providing economic development opportunities by providing technology zones that are in conjunction with its economic zones claims Smart and Hsu (2004) China has set these

economic and technology zones to encourage foreign investment into the country The zones are equipped with the entire latest technology infrastructure and are capable of offering quick adjustments

The Economic Development Board of Singapore (2000) established a set of operating criteria that focused on supporting all possible industries by creating the best possible information technology (IT) infrastructure in the country The undertaking was

to establish within the country regions of support These regions of support were adept at providing the technology needs for subject industries because they were clustered to support the specific criteria of that industry In conjunction with technology specific requirements, they would outline a complete economic development plan that includes specific workforce skills and appropriate manufacturing real estate requirements This detailed philosophy is developed to grow the economic development of the country by design

It is common that technology can sometimes be a scary object with people who do not have any technical background, according to Lauderman (2004) who promotes the services of the Georgia Tech Community Innovations Services Group He indicates that organizations attempting to grow economic development programs need to consider starting with small phases Entering into technology slowly can and will lead to steady growth with the development of local talent and commitment from those who have

something to offer in this growth opportunity As an example, Lauderman (2004)

presented the case study of the Carroll Tomorrow, an economic development group in Carrollton County, Georgia Carroll Tomorrow started with a small GIS (global

information system) program that outlined available land use opportunities in the county

After great success in developing this small technology program, the organization

connected with leaders in the community that have extensive technical backgrounds These leaders have become part of the organization, which is now developing a complete economic development strategy and the technical infrastructure to support and maintain the economic growth of Carrollton County

Black (1990) promotes the visionary strategy of South Carolina in positioning the state for economic development in the long-term The focus of the economic

development program was to collaborate with other state agencies to have a better

understanding of the available resources across the state The development of a database

to manage and describe what the state had to offer potential industries was a key point in the process Such planning tools were available to the economic development agencies to develop and outline proposals to bring business to the state The infrastructure provided mobility infrastructure (roadways), infrastructure banking (low interest loans), and utility infrastructure bonds for building and utilities, and block grants for communities to

determine infrastructure needs All of these opportunities for development were housed

in a technical database that was accessible from all over the state to benefit economic growth

Patrucco (2003) introduces the concept of agglomeration as the development of loosely connected communities that offer the impression of a solid community available

to support the needs of one or multiple industries The benefit to the economic growth of this community is the knowledge that is shared at all levels of government, community, education, and workforce development agencies These agglomerations provide

effectively for the growth of communities into three different districts; the actual industry