Rural Networks in the United States: Lessons from Three Experiments

Abstract

A number of states and countries have begun to encourage formation of flexible manufacturing networks among small manufacturing and other firms to respond effectively to local economic crises or to enable smaller firms to compete more effectively in the global economy. A variety of strategic approaches have been employed, including funding organizations with a mandate to organize and support networks, and offering challenge grants to groups of firms to interest them in experimenting with a new organizational approach. This article examines several experiments with network stimulation among rural manufacturing firms in Minnesota, Oregon, and Washington, including results from surveys and other evaluation studies. No clearly superior strategic approach to network stimulation emerges from this review, but preliminary evaluation results suggest that the most productive approach may involve combining the capacity-building, soft network strategy with efforts to build collaborative manufacturing structures aimed at concrete, bottom-line business results.