Education and Research

An Overview of a Humboldt County Industry Cluster

Brett Benson, Intern to Professor Steven Hackett

August 2002

Sources:

California Employment Development Department

US Census Bureau

Elements of the Education and Research Industry Cluster:

SIC Code 8221: (COLLEGES AND UNIVERSITIES)

SIC Code 8222: (JUNIOR COLLEGES)

SIC Code 8249: (VOCATIONAL SCHOOLS, NEC)

SIC Code 8299: (SCHOOLS & EDUCATIONAL SERVICES, NEC)

SIC Code 8711: (ENGINEERING SERVICES)

SIC Code 8712: (ARCHITECTURAL SERVICES)

SIC Code 8732: (COMMERCIAL NONPHYSICAL RESEARCH)

SIC Code 8734: (TESTING LABORATORIES)

SIC Code 8713: (SURVEYING SERVICES)

SIC Code 8731: (COMMERCIAL PHYSICAL RESEARCH)

SIC Code 8733: (NONCOMMERCIAL RESEARCH ORGANIZATIONS)

Industry Cluster Overview:

The growth of our local Education and Research industry plays a critical role in our county’s economic identity. This industry cluster is dominated by Humboldt State University and the College of the Redwoods. Colleges and universities can assist local communities by providing high-quality jobs, by providing relatively objective analysis of environmental and social conditions, through technology transfer, and by contributing graduates to the local labor force. Colleges and universities serve as a meeting ground for industry, government, and community to come together.

The Education and Research has not seen much growth in the last five years. Earnings for the industry have been slowly growing as well. Both total employment and average earnings hit a 10-year high in 2000 with employment at 2,511, and average earnings were $31,131. Both total self-employment and self-employment as a percentage of the industry have first risen and then fallen between 1997 and 1999. Completion of the fiber optic line connecting us to Bay area and the world is crucial to the development of this industry.

The other major component of education and research is specialized research such as engineering, survey work, and laboratory testing. This group of industry sectors has been slowly declining with a 10 year low in total employment in the year 2000, of 295 people.

The power of each industry can be looked at in terms of benefits to local people. This industry in particular has potential to serve us by allowing us to develop the types of industries that will help maintain the cultural and environmental integrity of our small town atmosphere. Furthermore, our community benefits from better living conditions facilitated by university and/or local business cooperatives, not just from the pure employment and income they generate.

As our economy transitions away from resource extractive activities, more modern industries such as information and technology will be employing more and more people. The education and research industry cluster will also provide a cluster-support function by providing a skilled workforce for these more technically demanding jobs.

Examples of Products and Services

Wildlife management analysis

Workforce training

Engineering services

Laboratory testing

Key Issues

·Development of fiber optic infrastructure

·College and university commitment to providing skills for local industry

·Spinning off research activities into new local business enterprises

Future Potential Opportunities

· Having both economic and sustainability goals work together

·Better communication between government, business, and community

·Increase in specialized marketable skills

·Increased knowledge of local economy

Industry Needs

·Stable budgets

·Better linkages with local communities and their needs

·Attraction of students with adequate preparation

·More opportunities for individuals and small businesses to get involved

·More community outreach programs