RU R A L D E V E LO PM E N T I N S T I T U T E K N OW L E D G E B R I E F FA L L 2016

KNOWLEDGE BRIEF

Asset-Based Rural Development Part III:
Identifying Assets for the Knowledge Economy

INTRODUCTION
Knowledge-based economies are “directly based
on the production, distribution and use of knowledge
and information”.1 Knowledge is an increasingly
important driver of economic growth and
productivity.2 This transformation is linked with
the arrival of information and communications
technology (ICT), but the knowledge economy can
appear in any sector.3 The marker of a knowledgebased industry is the innovative use of information
and technology in the production of goods and
services, ranging from microchips to food products
and everything in between. Indicators for measuring
the knowledge economy in a community or region
include: the number of patents applied for locally,
research and development expenditures, new
business start-ups in knowledge-based sectors, or
more qualitative indicators related to the local area.4
The knowledge economy is a key sector in British
Columbia. Across the province, clusters such as
engineering, ICT, and clean tech are growing rapidly.5
The high-tech sector alone accounted for 6.5% of the
province’s economic output in 2013 and is growing
by 2.2% per year.6 4.4% of the provincial workforce
works in high-tech jobs – more than mining, oil
and gas, and forestry combined.7 As many of

the initiatives in the Knowledge-Based Economy
examples table demonstrate, these sectors are not
exclusive to urban centres, but hold opportunities
for rural communities as well.

ASSETS TO SUPPORT THE RURAL
KNOWLEDGE ECONOMY
What role can the knowledge economy play in rural
areas? As many rural communities face declining
primary industries, the knowledge economy
can offer opportunities to create new business
and attract investment.⁸ However, it must be
adapted to fit the unique assets and character
of rural communities. Much of the literature on
the knowledge economy is heavily focused on
urban settings and has not adequately explored
its applicability to rural communities.⁹ However,
outside the literature there are numerous examples
of rural communities that have harnessed the
knowledge economy to spur economic and social
renewal (see ABRD Resource Table: KnowledgeBased Economy on pages 4-7).
The first step in fostering the rural knowledge
economy is to identify and promote the local
amenities, or assets, that are typically required
by this sector. Using an asset-based approach,
communities can determine what key assets are

1.888.953.1133

www.cbrdi.ca

KNOWLEDGE BRIEF

A S S E T- B A S E D RU R A L D E V E LO PM E N T PA R T I I I

2

present to support knowledge-based businesses
and workers, and what assets need to be built up.
Essential to most knowledge-based businesses is
high-speed internet access, which is often a barrier
for more remote communities lacking broadband
infrastructure.10 Other physical infrastructure can
support entrepreneurial activity in knowledgebased sectors, such as underutilized space where
business incubators, co-working spaces, or ICT
hubs can be set up. These facilities can also help
improve public internet access, support distance
education, increase computer literacy, and enable
local entrepreneurs to engage in electronic
commerce or advertise local businesses to a global
audience. Perhaps one of the most critical sets
of knowledge economy assets is the amenities
that can attract knowledge-based workers. With a
strong tendency to work virtually or telecommute,
knowledge workers often have a great deal of
flexibility in where they live.11 Many knowledge
workers are very deliberate about the communities
they choose to live in, seeking out amenities like
diversity and openness, arts and culture activities,
and opportunities for outdoor recreation.12
Communities in the Columbia Basin-Boundary
region are extremely well-positioned in a number
of these amenities, such as recreation opportunities
and relatively high internet connectivity.13 These
amenities are invaluable assets that must be
promoted in strategies to attract and retain
residents employed in the knowledge economy
(see ABRD Knowledge Brief Part I : What is AssetBased Rural Development?).

Rural Development In s t i t u t e K N OW L E D G E B R I E F Fa ll 2 0 1 6

EXAMPLES OF THE
RURAL KNOWLEDGE ECONOMY
There are a number of examples of how rural
communities and regions have engaged in
the knowledge economy (see ABRD Resource
Table: Knowledge-Based Economy on page
4-7). These show how the knowledge economy is
often initiated through collaborative approaches
that bring together a wide range of community
stakeholders. This regional collaboration has been
called a “quadruple helix” model of rural innovation,
where four stakeholder groups from higher
education, government, industry, and non-profits
work together to create new synergies that foster
the knowledge economy.14 Each of the examples
listed shows different approaches to this kind of
collaboration.

REFERENCES & RESOURCES
1.

Organization for Economic Cooperation and
Development, “The Knowledge-Based Economy,”
(OECD, Paris, 1996): p. 6.

2.

OECD, 1996.

3.

Ian Brinkley, “Defining the Knowledge Economy:
Knowledge Economy Programme Report,” (The Work
Foundation, 2006).

4.

David A. McGranahan, Timothy R. Wojan, and Dayton
M. Lambert, “The Rural Growth Trifecta: Outdoor
Amenities, Creative Class and Entrepreneurial
Context,” Journal of Economic Geography 11 (2011):
529-557.

5.

KPMG, “British Columbia Technology Report Card:
2014 Edition,” (KPMG LLP, 2014).

6.

Dan Schrier and Lillian Hallin, “Profile of the British
Columbia High Technology Sector: 2014 Edition,”
(British Columbia Statistics Agency, 2015).

7.

“Profile of the British Columbia High Technology
Sector," 2015.

8.

McGranahan, Wojan, and Lambert, 2011.

9.

McGranahan, Wojan, and Lambert, 2011.

10. S. Jacobs and Marlien Herselman, “An ICT-Hub Model
for Rural Communities,” International Journal of
Education and Development Using Information and
Communication Technology 1, no. 3 (2005): 57-93.
11. Brinkley, 2006.
12. McGranahan, Wojan, and Lambert, 2011.
13. Columbia Basin Rural Development Institute, “2015
State of the Basin Snapshot Report,” (Selkirk College,
2015).
14. Jari Kolehmainen, Joe Irvine, Linda Stewart, Zoltan
Karácsonyi, Tünde Szabó, Juha Alarinta, and Anders
Norberg, “Quadruple Helix, Innovation and the
Knowledge-Based Development: Lessons from
Remote, Rural and Less-Favoured Regions,” Journal of
the Knowledge Economy 7, no. 1 (2015): 23-42.

KNOWLEDGE BRIEF

I D E N T I F Y I N G A S S E T S F O R T H E K N O W L E D G E E CO N OMY

Ru ral D e v e l op m e n t I n stitu te K N O W L E D G E B R I E F Fall 2 0 16

3

KNOWLEDGE BRIEF

A S S E T- B A S E D RU R A L D E V E LO PM E N T PA R T I I I

4

Initiative

Sector(s)
Involved

Type

Description

Appalshop

Non-profit,
industry

Community-based
film production and
music studio with
community radio

Appalshop is a community-based arts organization in
Appalachia that has created community video projects
and has an active role in promoting region-wide dialogue
on innovation and creative economic development. The
organization has helped create a digital marketing venture
company called Mountain Tech Media.

AVAPCO LLC

Industry

High-tech
manufacturer

The community of Thomaston has lost jobs from the closure
of local mills. In 2011, a high-tech R&D facility opened in the
community that is developing nanocellulose – a bio-based
plastic replacement made from agricultural waste using an
experimental chemical process.

BitSource

Industry

Community tech
company

A web-based start-up that opened in a rural Appalachian
mining town to help provide new job opportunities to
former coal miners. Local initiatives like BitSource seek not to
be the “silver bullet” for the community, but instead “be part
of the silver buckshot” of many new economic opportunities.

Electric vehicle
charging stations
in Kootenays

Public,
industry

Regional infrastructure A plan that is currently underway in a number of
communities in the Kootenay Region to install electric
plan

Fiberstar LLC

Industry

High-tech
manufacturer

Fiberstar uses citrus waste from an orange-producing
rural county in South Florida to produce an innovative
and healthy food additive using novel bio-technology.
The company diverts waste from local orange juice
manufacturers while creating high-paying jobs in an
economically deprived county.

Ikageng
Information
Technology
Centre

Public, nonprofit

Community technology

Local community centre that created an ICT hub for local
residents to access internet, receive training and education,
and for entrepreneur incubation and support.

Knauf Insulation

Industry

vehicle charging stations. A number of communities have
installed charging stations to enable electric vehicle use by
tourists and local residents. Major logic of siting stations is
economic co-benefits, such as retail and dining, that can
occur when drivers spend 4+ hours in a community while
their vehicle is charging.

resource/ Information
& Communications
Technology business hub

Rural Development I n s t i t u t e K N OW L E D G E B R I E F Fa ll 2 0 1 6

High-tech
manufacturer

An innovative insulation manufacturer that uses recycled
glass and environmentally friendly corn-based binder that
dramatically reduces the environmental impact of the
product while improving energy efficiency. The company
chose Chambers County, AL for its operation, a county
formerly reliant on the textile industry which previously had
Alabama’s highest unemployment rate at 22%. The county
now has 5% unemployment and is seeing new residents
move in and new business growth.

Location

Impacts

Reference

Whitesburg,
Kentucky,
USA

Documentation of Appalachian culture, lifestyle,
and regional challenges; business development

Appalshop (no date). Appalshop: Making media
in the mountains since 1969. Retrieved from
https://www.appalshop.org/; Stolberg, G. S.
(August 17, 2016). “Beyond coal: Imagining
Appalachia’s future”. New York Times. Retrieved
from www.nytimes.com

Thomaston,
Georgia, USA

Job creation; attraction of highly skilled workforce;
partnership with local college

AMCREF Community Capital (2015, June
16th). AVAPCO, Thomaston, GA [Video file].
Retrieved from https://www.youtube.com/
watch?v=3qQi7mh04sE

Pikeville,
Kentucky,
USA

Creation of 10 jobs for laid-off coal miners, training
in programming and web design skills

Stolberg, G. S. (August 17, 2016). “Beyond coal:
Imagining Appalachia’s future”. New York Times.
Retrieved from www.nytimes.com

Kootenay
Region, BC

Offering renewable energy amenities possibly
desired by knowledge workers; generation of
economic co-benefits to host communities

The Ecocentric: Kootenay Co-op Radio
(Producer). (2016, July 19th). Electric cars in the
Kootenays, Farming and climate change, 100%
renewable [Audio podcast]. Retrieved from
http://itunes.apple.com

Clewiston,
Florida, USA

Job creation; diversion of waste from local
industry; training in high-skilled new job fields

AMCREF Community Capital (2015, June
17th). Fiberstar, Clewiston, FL [Video file].
Retrieved from https://www.youtube.com/
watch?v=7BNfBt4dEqY

Itsoseng,
South Africa

Improvement of community computer literacy, job Jacobs, S., & Herselman, M. (2005). An ICT-Hub
model for rural communities. International Journal
creation, offering internet access

KNOWLEDGE BRIEF

I D E N T I F Y I N G A S S E T S F O R T H E K N O W L E D G E E CO N OMY

of Education and Development Using Information
and Communication Technology, 1(3), 57-93.

Lanett,
Alabama,
USA

Creation of 220 jobs at high salaries; attraction of
new residents and workers to the community; new
training and skills development; waste reduction
and reduced contamination

AMCREF Community Capital (2016, June
20th). Knauf Insulation, Lanett, AL [Video file].
Retrieved from https://www.youtube.com/
watch?v=L0J-UbKWFZA

Ru ral De v e l op m e n t I n stitu te K N O W L E D G E B R I E F Fall 2 0 16

5

KNOWLEDGE BRIEF

A S S E T- B A S E D RU R A L D E V E LO PM E N T PA R T I I I

6

Initiative

Sector(s)
Involved

Northern e-Biz
Centre

Type

Description

Non-profit,
public

Community
technology resource/
e-business hub

Network of high-speed internet service centres in three
Northern Manitoba communities (Thompson, Churchill,
and Norway House) that provide computer and internet
training as well as offer e-business and e-commerce
training and consultation.

Recleim LLC

Industry

High-tech
manufacturer

Recleim is a high-tech recycling facility that deconstructs
home appliances using experimental technology. The
company operates in a previously abandoned industrial
site in Graniteville, SC, a community devastated by a
deadly chlorine leak which led to the closure of the local
textile mill.

Rural broadband
in Skibereen,
Ireland

Public,
industry

Community
broadband initiative

A rural community in Ireland gained funding to launch
broadband internet service as part of nationwide
broadband initiative. The initiative supported the
creation of a number of new e-businesses, such as a
heritage-based tourism company operated mostly
online.

South
Ostrobothnia
Research &
Innovation
Programme

Higher
education,
Public,
industry,
Non-profit

Innovative tech-based
research partnership

This rural region in Western Finland partnered with
national universities to form a number of local institutes
specializing in rural development research and
continuing education. Building on the success of such
institutes, the region formed a research and innovation
program that eventually led to the creation of a regional
university, the Seinäjoki University of Applied Sciences,
which attracted highly-skilled professionals to the
area while providing local youth higher education
opportunities within the region.

Technology
& Knowledge
Transfer Centre,
University of
Debrecen

Higher
education,
Public,
industry,
Non-profit

Innovative tech-based
research partnership

This region is one of the most economically
underdeveloped areas in Hungary, with unemployment
over 11%. However, the University of Debrecen, based
in the region, has played a key role in community
development by sponsoring a Technology and
Knowledge Transfer
Centre that has supported innovative business
development in sectors
like food production.

Yaruwu
Technology
Group

Industry

Community tech
company

Community-based tech hub and online training centre
serving a remote Aboriginal region of Australia through
its TelePod training centre. The TelePod’s opening has
helped youth to stay in the community by offering
distance education courses and reducing the need to
leave for university.

Rural Development I n s t i t u t e K N OW L E D G E B R I E F Fa ll 2 0 1 6

Location

Impacts

Reference
Cook, M., Johnston, T., & Larway, M. (2004).
Manitoba Research Alliance on community
economic development in the new economy:
Information technology summary report.
Northern e-Biz Centre & North Central
Development. Thompson, Manitoba.

Northern
Manitoba

Research on regional internet access and needs;
improvement of access to internet and online
business opportunities

Graniteville,
South
Carolina, USA

Job creation and rehire of previous mill employees; AMCREF Community Capital (2015, June
training in high-tech manufacturing; reuse of
12th). Recleim, Graniteville, SC [Video file].
existing community assets
Retrieved from https://www.youtube.com/
watch?v=0KBHabmhCKI

Skibereen,
West Cork
County,
Ireland

Improvement of community internet access;
new business creation

RTÉ Radio (Producer). (2016, August 1st). Today
with Sean O’Rourke: A success story on rural
broadband [Audio podcast]. Retrieved from
http://itunes.apple.com

South
Ostrobothnia
Region,
Finland

Improvement of local higher education
opportunities; attraction of high-skilled workforce;
research and infrastructure investment

Kolehmainen, J., Irvine, J., Stewart, L., Karácsonyi,
Z., Szabó, T., Alarinta, J., & Norberg, A. (2015).
Quadruple helix, innovation and the knowledgebased development: Lessons from remote,
rural and less-favoured regions. Journal of The
Knowledge Economy, 7(1), 23-42.

North Great
Plain Region,
Hungary

Business support and development; knowledge
generation and diffusion

Kolehmainen, J., Irvine, J., Stewart, L., Karácsonyi,
Z., Szabó, T., Alarinta, J., & Norberg, A. (2015).
Quadruple helix, innovation and the knowledgebased development: Lessons from remote,
rural and less-favoured regions. Journal Of The
Knowledge Economy, 7(1), 23-42.

West
Kimberley
District,
Australia

Improvement of community internet access;
distance education facilities

Three Star Enterprises (2016, February 10th)
Establishing rural tech hubs in remote communities
[Video file]. Retrieved from https://www.
youtube.com/watch?v=qBuXV2jD5kk

KNOWLEDGE BRIEF

I D E N T I F Y I N G A S S E T S F O R T H E K N O W L E D G E E CO N OMY

Ru ral De v e l op m e n t I n stitu te K N O W L E D G E B R I E F Fall 2 0 16

7

A S S E T- B A S E D RU R A L D E V E LO PM E N T PA R T I I I : I D E N T I F Y I N G A S S E T S F O R T H E K N O W L E D G E E CO N O MY

The Columbia Basin Rural Development Institute, at Selkirk College, is a regional research centre with a
mandate to support informed decision-making by Columbia Basin-Boundary communities through the
provision of information, applied research and related outreach and extension support.

www.cbrdi.ca

1.888.953.1133