The product cycle model and rural economic development in the United States: Testing the case for alternative strategies

The Product Cycle Model is a well-established theory that has demonstrated descriptive power in explaining differences in economic development between nations of differing stages of industrialization and technological capacity. The Product Cycle Model has also been proposed as an approach to explaining at least some of the differences in economic development between rural and urban areas in the United States. This research attempts to test the applicability of the Product Cycle Model to rural counties in the United States, using a mixed methodology approach. Correlations are conducted between population density and the creation of new high-growth businesses in 739 rural counties. A survey is also conducted among these counties, to gain additional information regarding their use of various economic development tools and the success they have experienced. Finally, three counties are identified as divergent cases and are evaluated qualitatively, in an effort to understand why they are more or less successful in generating economic development than are their peers. The research concludes that the Product Cycle Model has some general descriptive/predictive powers among rural counties and that most traditional economic development strategies are less effective than their use may justify. Policy recommendations are offered for rural economic developers based on the results of the research.