Article thumbnail

Can rural America support a knowledge economy?

By Jason Henderson and Bridget Abraham


Knowledge has become the new premium fuel for economic growth in the 21st century. Knowledge fuels new ideas and innovations to boost productivity – and to create new products, new firms, new jobs, and new wealth. Some analysts estimate that knowledge-based activity accounts for half of the gross domestic product in Western industrialized countries. In the United States, knowledge-based industries paced gross domestic product growth from 1991 to 2001, and their importance has accelerated since 1995. ; In rural America, as elsewhere, a variety of factors make knowledge-based growth possible: high-skilled labor, colleges and universities, vibrant business networks, and infrastructure. Some rural communities are already leveraging these assets to transform their economy. Many other rural places, however, have yet to tap this rich economic potential. ; Henderson and Abraham use empirical evidence to identify the factors that are essential to rural knowledge-based activity. They then describe how some rural communities are leveraging these factors to build their own knowledge economy.Rural areas ; Rural development

OAI identifier: oai:RePEc:fip:fedker:y:2004:i:qiii:p:71-96:n:v.89no.3

Suggested articles


  1. (1996). A Quantitative Assessment of HighKnowledge Industries Versus Low-Knowledge Industries,”
  2. (1998). Agglomeration and the Location of Innovative Activity,”
  3. (2002). Can Regional Colleges Make a Difference in Rural America?” Main Street Economist, Center for the Study of Rural America, Federal Reserve Bank of Kansas City.
  4. (1994). Entrepreneurship in Regional and Local Development,”
  5. (1999). GMM Estimation with Cross Sectional Dependence,”
  6. (2002). High-Tech Firm Clustering: Implications for Rural Areas,”
  7. (2002). Lines in the Sand: A Four Corners Regional Perspective,” The New Power of Regions: A Policy Focus for Rural America, Federal Reserve Bank of Kansas City, Center for the Study of Rural America,
  8. (2003). Moving to Nice Weather,” Federal Reserve Bank of Kansas City, Research Working Paper 03-07,
  9. (2001). Organization for Economic Co-operation and Development.
  10. (1992). Shifting Gears: Thriving in the New Economy.
  11. (1996). The Knowledge Economy.
  12. (2001). What Drives Productivity Growth?” Economic Policy Review, Federal Reserve Bank of

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.