ABOUT THIS REPORT
The rules of engagement in economic development are agencies, corporations, nonprofits, and community changing. More and more, economic development success organizations working together to elevate levels of strategies involve people, technology, and growing an education and economic potential, making cities stronger. infrastructure for economic activity built on ideas, We deeply appreciate the public library members of our knowledge, experience, and quality of life. Urban Libraries Council who provided input for the research The Urban Libraries Council commissioned this study to look of this report. We also appreciate the insights of our at how public libraries contribute to the human dimension Advisory Committee that guided this work, the Urban of economic development. In the process, researchers also Institute for helping us to learn more about the businesses uncovered more evidence of the important contributions we are in, and the support and funding from the Bill & public libraries make to strengthening places and Melinda Gates Foundation and Geraldine R. Dodge community quality of life. Foundation.
This report indicates that public libraries today are deeply We hope you will use this information as a tool to re-frame involved with people, technology, and quality of life. Public discussions regarding the public library role in local libraries have tremendous reach geographically and economic development. Our hope is to stimulate a virtually. Within the U.S. there are over 9,000 public libraries dialogue among developers, planning professionals, elected providing services in over 16,000 branch facilities and officials, business and public library leaders to think through the Web. Nearly every one of these locally-funded differently about the value of public libraries as unique and organizations offers collections and programs that support versatile partners in these human resource and community- early literacy, workforce readiness and small businesses. As building arenas. We urge public libraries to extend and such, they are an important and dynamic part of the expand their resources and strategies that can profoundly community’s learning infrastructure which supports local impact local economic development conditions. economic development.
This study finds that the return on investment in public libraries not only benefits individuals, but also strengthens community capacity to address urgent issues related to Martín Gómez, economic development. Public libraries are increasingly President finding their “fit” in the formal and informal network of Urban Libraries Council
ACKNOWLEDGEMENTS
Idea: The Urban Assets Strategy Group, Executive Board, and Martín Advisory Committee: Linda Darragh, Professor, University of Chicago Gómez, President, of the Urban Libraries Council, Evanston, IL School of Business; Katherine Hadley, Director, Minneapolis Public
Research and Publication Copy: Carlos A. Manjarrez, Jessica Cigna, and Library; Barbara Mistick, Director, Carnegie Library of Pittsburgh; Beata Bajaj, The Urban Institute, Metropolitan Housing and Community Heywood Sanders, Professor, University of Texas-San Antonio School of Center, Washington, DC Government
Editing: Danielle Patrick Milam, Sr. VP/Program & Development, Urban Underwriting: The Bill & Melinda Gates Foundation and the Geraldine Libraries Council, Evanston, IL R. Dodge Foundation Making Cities Stronger: PUBLIC LIBRARY CONTRIBUTIONS TO LOCAL ECONOMIC DEVELOPMENT
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...... 2
CHAPTER 1 Linking to Local Economic Development ...... 4 Local economic development practice has broadened to include strategies for building human, social, institutional and physical resources. This change has created an opportunity for public libraries to identify when and where their assets contribute to building a stronger local economy.
CHAPTER 2 Improving Early Literacy and School Readiness ...... 7 Recent research in the areas of child development and economics reveals some of the long- term benefits of investments in early education. Libraries are a key community resource in this arena.
CHAPTER 3 Strategies for Building Workforce Participation ...... 13 Strategic workforce development planning and services are key components of many local economic development strategies. Libraries are uniquely positioned to build the employment information and technology skills of area residents. Copyright © January 2007 The Urban Libraries Council CHAPTER 4 All rights reserved Small Business Support Through Public Libraries ...... 17 Small businesses are strong contributors to local economies. Public libraries provide Printed in the United States of America support services and online resources necessary to succeed in an increasingly ISBN: 1-885251-35-1 competitive small business sector. CHAPTER 5 Public Libraries and the Power of Place ...... 21 The Urban Library facilities have a positive impact on downtowns, commercial areas, and Institute neighborhoods. CHAPTER 6 URBAN LIBRARIES COUNCIL Conclusions About Public Library Contributions ...... 24
APPENDIX ...... 27 Table of Contents Table Making Cities Stronger: EXECUTIVE PUBLIC LIBRARY CONTRIBUTIONS TO LOCAL ECONOMIC DEVELOPMENT SUMMARY
OCAL ECONOMIES TODAY are in rapid transition, combined with the power of new digital collections, moving from bases of manufacturing and service technology, and training, position them to help L industries to information and idea industries. communities make the transition from manufacturing and Accompanying this transformation are a number of radical service economies to high tech and information changes in preferred work skills, business and service economies. models, local-to-global networks, and definitions of what Public libraries build a community’s capacity for make places “attractive.” Given these changes, economic activity and resiliency. Many families and communities are reassessing their assets and development caregivers rely on the library to provide important pre- strategies in light of what is needed to succeed in the new school reading and learning. Many people entering the and next economies. workforce rely on libraries to get them online. Local Strategies for building a strong economic base are being businesses are increasingly tapping into the library’s realigned. Human resource strategies are coming to the online databases to keep themselves competitive and to fore, as jobs created in the new economy require highly find synergistic new business opportunities. Library educated and technologically-skilled workers. Strategies facilities often anchor downtown and commercial to keep a vibrant base of small business, traditionally a developments, and are attractive neighborhood major source of local job creation, intact and competitive amenities. in a very mobile and global entrepreneurial environment These are the essential findings uncovered by researchers are also emerging. Increasingly, physical development from the Urban Institute, as they teamed up with the strategies are moving away from enticing outside firms Urban Libraries Council, an association of large with tax abatements and other incentives, to building on metropolitan public libraries, to investigate the impact of local strengths, mixing-up residential, commercial and public libraries on local economic conditions. Making cultural activities to create vibrant, high quality-of-life cities. Cities Stronger: Public Library Contributions to Local Public libraries are logical partners for local economic Economic Development adds to a growing body of development initiatives that focus on people and quality of research that notes a shift in the role of public libraries – life. Libraries are widely available, highly regarded public from passive, recreational reading and research institutions that provide a broad range of information institutions to active economic development agents. The services and support for diverse constituencies. In this era study was commissioned by the Urban Libraries Council of economic transformation, the business of public libraries (ULC) and funded by the Bill & Melinda Gates Foundation is being recast. Public access to digital information and and Geraldine R. Dodge Foundation. technology is a draw for libraries. Their open structure, Making Cities Stronger
2 This report highlights the specific ways local governments, data. Libraries are the source for new online business agencies, and libraries are working together to achieve databases that reach entrepreneurs around the clock. benefits for individuals, agencies and the community at Researchers find that when libraries work with local and large in four areas: state agencies to provide business development data, workshops and research, market entry costs to prospective Early Literacy services are contributing to long-term small businesses are reduced, existing businesses are economic success. As the strong correlation between strengthened, and new enterprises are created. Libraries investments in early literacy and long-term economic are also in the vanguard, trying new strategies. The success is documented, public libraries are expanding Columbus Public Library (OH) is working with a regional beyond their traditional story time services, engaging in agency to provide business plan development seminars. high-impact strategies with community partners. Many In Brooklyn, the library hosts a business plan competition libraries across the country are leading public awareness with a seed money prize. In Phoenix (AZ), the public library campaigns, reaching new mothers with materials and is part of a statewide network of business, economic resources that promote reading early and often. Extensive development and library professionals who are seeking to community-wide training on early literacy with home and expand and diversify the economic base by promoting professional child care givers is increasing the quality of more synergy among clusters of enterprises. Again, in this child care, and levels of school readiness and success. From arena library resources and training facilities are reducing Providence (RI) to San Luis Obispo (CA), public libraries are operations costs for other local agencies, and broadening reaching young children and families in diverse those agencies’ access to more people needing small neighborhoods. These services are the first link in a chain business assistance. Overall, the community has more of investments needed to build the educated workforce resources to support a strong small business sector. that ensures local competitiveness in the knowledge economy. Public library buildings are catalysts for physical development. Libraries are frequented local destinations. Library employment and career resources are Urban Institute researchers repeatedly found that public preparing workers with new technologies. With an libraries are highly regarded, and are seen as contributing array of public computers, Internet access, and media to stability, safety and quality of life in neighborhoods. products, public libraries are a first point of entry for many They are bolstering downtown and suburban cultural and new technology users. A 2006 survey by Hart Research commercial activity. Among private sector developers of found that 70% of people on the computers in libraries malls, commercial corridors, mixed-use developments and only have access through that source. Now that job joint-use facilities, libraries are gaining recognition for other readiness, search and application information are all online, qualities – their ability to attract tremendous foot traffic, libraries are expanding training opportunities, often in provide long-term tenancy, and complement neighboring collaboration with local workforce agencies, which focus retail and cultural destinations. Library buildings are on using and building technology skills. Ninety-two versatile. They fit in a wide mix of public and private sector percent (92%) of public libraries surveyed for this report developments. provide computer instruction on a monthly basis. Library workforce service models are also as mobile as the shifting The study provides not only a snapshot of ways public economy, as illustrated in Memphis (TN), where the libraries are successfully integrating resources and services JobLINC mobile center that started as an initiative for a with local economic development initiatives in cities coast- single high-need neighborhood has now expanded to-coast, it also provides some thought-starter ideas for services to cover the entire county, with high levels of use broadening those strategies further, urging greater not only by job-seekers but by employers as well. With an investment in data gathering, focused partnerships, and increasing number of local training partnerships, library impact measures. resources and facilities are reducing the operation costs The study concludes that public libraries are positioned to and broadening the outreach of other local workforce fuel not only new, but next economies because of their development agencies, contributing to a stronger roles in building technology skills, entrepreneurial activity, community network for job readiness and worker and vibrant, livable places. The combination of stronger “retooling.” roles in economic development strategies and their Small business resources and programs are lowering prevalence – 16,000 branches in more than 9,000 systems barriers to market entry. One of the biggest traditional – make public libraries stable and powerful tools for cities barriers to small business has been access to current and seeking to build strong and resilient economies. comprehensive business product, supplier, and financing Executive Summary
3 Linking TO LOCAL ECONOMIC DEVELOPMENT CHAPTER 1
PPROACHES TO LOCAL economic development wider range of community organizations to identify when have traditionally focused on tax abatements and where their assets contribute to making cities stronger A and credits, preferential financing rates, and building better local economies. This shift in strategies provision of land and, often, facilities to attract business provides an opportunity for public libraries to identify and boost employment in local markets. However, the specific ways in which library services contribute to new knowledge economy has altered the landscape for broader local economic strategies. many business decisions. Recent studies of location decisions of “high performance firms” reveal that a number of these businesses prefer to locate in areas with higher A TRUSTED PUBLIC PLACE wages, a labor force with plentiful high school graduates, responsive and efficient government, good schools, and a Few community services enjoy the type of public support decent quality of life (Doeringer, Terkla, Klock 2002). that is generally given to public libraries. In a recent national survey conducted by Public Agenda, people were Responding to these shifting factors for economic success, more likely to rate library service as excellent or good than local economic development strategies that once focused the service they receive from their local police department, narrowly on highlighting assets of a given location or public schools or their local media (PA 2006). In a national access to major transportation are giving way to strategies public opinion survey conducted for the American Library that promote quality-of-life environments and strong Association, over 90% of the total respondents said they community capacity for economic growth. Business believe libraries are places of opportunity for education, attraction strategies that once focused narrowly on landing self-help, and offer free access to all (KRS Research large “outside” firms are now identifying ways to nurture Associates 2002). local small businesses, and to build clusters of competitive industries, linked in regional networks, that create new Many demands challenge public library leaders to growth and income. Employment-centered economic continue to provide services in a manner that meets the development strategies that once focused on job creation, high expectations of the public while operating in an even if many were at minimum wage, are now focusing on environment of constrained state and local budgets. developing comprehensive skills to build workforce Despite high regard for pubic libraries as an institution, competitiveness and creating career paths to quality jobs leaders in many public library systems are facing difficult and higher wages. choices because of a decline in public funding. Additionally, rising costs of new materials, such as online As local economic development practice broadens to journals, databases, and operations has forced libraries include strategies for building human, social, institutional, nationwide to cut services, or to find more money by and physical resources for stronger, self-sustaining local dipping into budgets for books, audiovisual materials and economic systems, there is an opportunity for a much programs. Further, many library systems across the country Making Cities Stronger
4 are in desperate need of capital support to upgrade or This study seeks to follow the links between libraries and repair existing buildings or to build entirely new facilities to economic development benefits. It looks at how layers of adequately service communities where the local special program resources and activities in public libraries population has swelled. intersect with specific local economic development strategies already in motion. Return on Investment (ROI) Amidst these competing demands, library leaders across studies alone do not identify the ways in which library the country have also felt increasing pressure to justify the services are benefiting students, job seekers, employers, investment in public libraries given the growing volume of small businesses and entrepreneurs. This study takes a content on the Internet, increased computer ownership in closer look at the layers of targeted programmatic benefits, many American homes, and market competition from and investigates and articulates the ways in which public private book vendors. libraries are addressing the needs of individuals and agencies, within the context of broader formal and informal local economic development networks. MEASURING THE ECONOMIC IMPACTS OF PUBLIC Special programs, which have always been a part of public LIBRARIES library services, have increasingly taken on local community development challenges in the past decade. An increasing number of economic research tools are now Public libraries are now working with local schools to being used to measure the public value of libraries, create a more integrated set of services for children including the cost-benefit impacts and return on (Saunders 2001), coordinating with workforce investment that public libraries generate. These studies development agencies for job and career information consistently identify positive economic impacts made by services (Durrance 1994), and collaborating with local libraries at the national, state and local levels: chambers of commerce to improve business information services for micro and small businesses (Wilson and Train At the national level, Liu (2004) examined the causal 2002). These special program services are broadening the relationship between public libraries, literacy levels, and impact of traditional library information resources by economic productivity measured by gross domestic networking with the efforts of other groups in the product per capita using path analysis. This study found community. that public libraries contribute to long-term economic productivity primarily through literacy programs.