Industry Profiles
Top 50 Employers.  NOV 2000
Economic Diversification
Target Industries
Target Missouri II Studies. FALL 2000
Predicting IT Employment in Rural Missouri.  NOV 2000
Information Technology in Missouri.  OCT 2000
Information Technology Access
Households Wired for the Information Superhighway
Kansas City and St. Louis Among the Nation´s Most Wired Cities
Missouri´s Public Airports: An Illustrated Guide.  JUL 2000
Transportation and Economic Prosperity.  JAN 2000
Transportation Map
The Energy Crunch:  Nuclear Power Profile  MAY 2001
The Electric Environment of Missouri and California.  FEB 2001
Health Science Biotechnology in Missouri.  DEC 2000
Life Sciences in Missouri: Agri-Chemical Industry.  JUN 2001
Retail Trade in Missouri.  AUG 2000
The Potential Impact to Missouri of China´s Accession to the WTO.  APR 2000
Manufacturing in Missouri: Skills-Mismatch.  SEP 2000
Manufacturing in Missouri: Diversification and Specialization. SEP 2000
Advanced Manufacturing Industry Analysis.  JUL 2001
Manufacturing in Missouri: Diversification and Specialization. SEP 2000
The Economic Impacts of Tourism in Missouri.  MAR 2001
Film Industry Tax Incentives. OCT 2000




Target Missouri 3
Industry Drivers of the Economy

Principal Investigator
David J. Peters
david.peters@ded.mo.gov
  



POLICY BRIEF
tm3-mo-policy.PDF (268KB)

FULL REPORT
tm3-mo.PDF (623KB)


KEY FINDINGS

A common practice in economic development is to craft public policies to support an economy’s “target industries”.  It is assumed by policy makers that public investments in these target industries will create economic growth and wealth for the region.  Although this development approach is supported by a segment of economic theory, oftentimes the methods used to identify target industries are simplistic and politically driven.  When targeted industries are identified using political rather than empirical justifications, development agencies run the risk of investing scare resources into groups of industries that will produce little to no economic benefits.

Target Missouri 3 - TM3 - was developed to assist economic development officials in targeting industries based on sound economic theory and methods.  TM3 provides a well conceptualized and empirically based definition of which industries are drivers of a region’s economy, so that economic development policies and resources can be directed to the most viable parts of the economy.

Missouri’s 82 driver industries have a sizable impact on the state's economy, accounting for 42.8% of total foreign exports, 17.7% of total output, 10.0% of total compensation and 8.3% of total employment.  In addition, these driver industries paid an average annual wage per job of $34,653, which was moderately more that the state average wage per job.

In manufacturing, Missouri had a competitive advantage in greeting card publishing, automatic merchandising machines, lumber and wood products (i.e. sawmill products, hardwood floors, wood containers/pallets, and furniture), ammunition, paper products (i.e. paper bags, paper sanitary products, envelopes, and paper), and lastly in motor vehicles, which was substantially represented (i.e. motor vehicles, boats, motorcycles, aircraft, internal combustion engines, motors and generators, fans, and heating and cooling equipment). 

In the extractive industries, Missouri had a competitive advantage in lead mining, clay cricks, lime and stone quarrying, paving and asphalt products, and cement.

In agriculture and food products, Missouri had a competitive advantage in agricultural production products (i.e. agricultural chemicals, grass seeds, prepared feeds, feed grains, hay, cattle, hogs, and oil crops) and in manufactured food products (i.e. pet foods, malt beverages, pasta products, poultry processing, pickles and sauces, roasted coffee, cheese and condensed milk, and cereals).



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