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 IT County Effectiveness |
 IT Employment |
 IT Services Employment |
 IT Software Effectiveness |
 IT Telecom Effectiveness |
 IT Employment |
 IT Software Employment |
 IT Telecom Employment |
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Roughly 71% of rural IT Services employment in 1999 can be explained by four factors. It was found that higher specialization in IT Services employment in 1990 increased IT Services employment in 1999. There are several possible explanations for this effect. First, this may indicate that established firms remained in the area and grew over this period. Second, existing firms may have been making investments in needed infrastructure, making the area more attractive to new firms. Third, new firms may be locating to areas where they can share resources with existing firms, creating a clustering effect. These resources are shared products and services provided by other industries and institutions.
It was found that higher population densities per square mile increased IT Services employment. This may indicate that urban populations benefit IT Services firms by creating a large customer base. Also, high population densities usually indicate the presence of a large rural town, which often serves as a trade center for the surrounding area - leading to an expanded customer base.
In fact, it was found that being a regional trade center increased IT Services employment. Regional trade centers offer an array of products and services to residents and businesses in nearby counties. IT Services firms may be capitalizing on this expanded customer base, focusing on one-stop shopping. This is especially true for quasi-retail services like computer rental and maintenance. Also, IT firms may provide data, financial, and information processing services to retail firms in the area (i.e. transaction verifications, credit verifications, inventory control).
Lastly, it was found that higher per capita incomes increased IT Services employment. Residents with more disposable income can afford more computers, and hence may make use of the services provided by this sector. Further, many better paying jobs involve the use computer technology. Firms that employ these people usually invest heavily in IT infrastructure, or outsource IT functions to other firms. It is posited that local IT Services firms would provide the majority of these services.
In summary, it appears that IT Services employment grew in areas that were regional trade centers. Existing IT firms, sizable populations, strong retail sales, and high incomes all seem to drive employment in this sector. This seems to indicate that the types of services provided by these firms are most sought after where people shop and conduct business.
In 1999, 55.6% rural IT Software employment can be explained by four factors. It was found that higher numbers of people employed in four-year colleges and universities increased IT Software employment. There are several possible explanations. First, this may indicate that software firms locate to areas with a highly educated and trained labor force. This would include both technology students completing their degrees and professionals working for the university. Second, university employees and students with software experience may be founding new software firms in the area. Third, universities may be outsourcing many programming functions to private firms.
It was found that higher percentages of workers employed in government increased IT Software employment. Again, there are several possible explanations. First, this may indicate that software firms locate to areas with a highly educated and trained labor force. This would include professionals working for various government agencies. Second, government employees with software experience may be founding new software firms in the area. Third, governments may be outsourcing many programming functions to private firms because of budgetary constraints.
It was found that higher specialization in IT Software employment in 1990 increased IT Software employment in 1999. First, this may indicate that established firms remained in the area and grew over this period. Second, existing firms may be making investments in needed infrastructure, making the area more attractive to new firms. Third, new firms may be locating to areas where they can share resources with existing firms, creating a clustering effect. These resources are shared products and services provided by other industries and institutions. Fourth, existing software firms may provide proof that it is possible to operate a successful software company in rural Missouri, thus enticing more firms to locate in the area.
Lastly, it was found that higher levels of natural amenities in the county increased IT Software employment. Software firms serve clients across the globe, communicating via e-mail and the Internet. Therefore, they are not geographically bound to any locality and can locate to areas of natural beauty. Several studies have found that IT firms prefer to locate in areas of high natural amenities with a good quality of life (Cromartie and Nord 1996).
In summary, it appears that IT Software employment grew in areas of natural beauty with a strong university or government presence. Large numbers of university and government employees, existing software firms, and natural amenities seem to drive IT Software employment. This indicates that software firms are more likely to locate in university or government towns that possess beautiful landscapes, and that have an existing software cluster.
Approximately 70% of rural IT Telecommunications employment in 1999 can be explained by five factors. It was found that higher specialization in IT Telecommunications employment in 1990 increased IT Telecommunications employment in 1999. There are several possible explanations. First, this may indicate that established firms remained in the area and grew over this period. Second, existing firms may be making investments in needed infrastructure, making the area more attractive to new firms. Third, new firms may be locating to areas where they can share resources with existing firms, creating a clustering effect. These resources are shared products and services provided by other industries and institutions.
It was found that higher population densities per square mile increased IT Telecommunications employment. This may indicate that urban populations provide a large consumer base, which benefits telecommunications companies. This would mean more customers for telephone, Internet, wireless, and cable services. Further, telecommunications firms may locate their base operations in regional trade centers, in order to better serve large rural areas.
It was found that lower percentages of workers employed in agriculture, forestry or fishing increased IT Telecommunications employment. Natural resource based firms typically do not require telecommunications infrastructure. In essence, there is little industry demand for telecommunications services in areas dependent on natural resource based firms.
It was found that higher percentages of workers employed in manufacturing increased IT Telecommunications employment. In today'acute;acute;s economy, manufacturing firms need to communicate with corporate offices, branch plants, suppliers, and customers - all of which are located across the globe. Telecommunications services are required to connect rural manufacturers to this network. Most of these services may be supplied locally, particularly telephone, wireless, Internet and cable services. Further, the growth of high-technology manufacturing may increase the use of local telecommunications services.
Lastly, it was found that lower percentages of workers employed in government increased IT Telecommunications employment. This may indicate that government provides telecommunications services in-house, where it would normally be provided by the private sector. For example, large government agencies usually maintain their own telephone and Internet networks. The people who maintain these networks are employed by the government, and not by the private IT Telecommunications sector.
In summary, it appears that IT Telecommunications employment grew in populated areas not economically dependent on agriculture or government. Existing IT Telecommunications firms, urban populations, high employment in manufacturing industries, and low employment in natural resource based industries and government seem to drive IT Telecommunications employment. This indicates that telecommunications firms are more likely to locate in populated areas with a strong manufacturing base, where agriculture and government account for a small part of the economy.