Local input linkages of rural high- technology manufacturers

The local input linkages of high-technology versus low-technology rural manufacturing plants in the western US are examined. Both theory and previous research suggest that such local linkages in rural areas would be lower for high-tech plants. The findings, in general, support that hypothesis. While this difference exists for all types of establishments, the strongest difference is between high- and low-tech branch plants. The establishment characteristics that are the main determinants of local input purchases are: 1. whether the plant was high-tech or low-tech, 2. the level of the plant's local sales, and 3. the length of time at the location. The community characteristics are market proxies for input availabilities, and the results show that nearby larger markets work strongly against the building of local linkages. The influence of the plant and community characteristics varies, depending on whether the operation is a branch or a single unit-headquarters plant.